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Sri Lanka admits buying weapons from North Korea through ‘Black Market’ despite sanctions

Posted on February 1, 2022 | by Branita | Leave a Comment

Sri Lanka’s finance minister Basil Rajapaksa revealed how his government illegally purchased weapons from North Korea during the height of the armed conflict, using money sourced from the “black market”.

Rajapaksa, who holds US citizenship, told The Sunday Divayina this week that during the peak of Sri Lanka’s military offensive, he and other Sri Lankan officials would personally visit the ‘Pettah’ Business District in Colombo to speak with traders and obtain dollars in the black market.

The money would then be used to purchase arms from North Korea, he continued.

The revelation has sparked an outcry from around the world, following years of denials from Sri Lankan officials over any such purchases.

North Korea has been subjected to several United Nations-backed sanctions which ban the trade of several arms and military equipment. Not only is the Sri Lankan finance minister openly admitting that his government may have breached United Nations sanctions, but Rajapaksa himself is now potentially open to prosecution.

Sri Lanka has been accused of breaching sanctions on North Korea by purchasing weapons in the past.

In May 2009, when Sri Lanka’s military was heavily engaged in an offensive that saw hospitals bombed and tens of thousands of Tamils killed, a leaked US embassy cable said Sri Lanka was negotiating an arms deal with Pyongyang. Rajapaksa’s elder brother Mahinda Rajapaksa was Sri Lanka’s president at the time, whilst his other brother Gotabaya was defence secretary. Both have been accused of war crimes. Gotabaya has since become Sri Lanka’s president, whilst Mahinda now sits as prime minister.

The cable cited intelligence reports as noting Sri Lanka was looking to purchase “RPG-7 Rocket Propelled Grenade Launchers (RPGs) and Multiple Rocket Launchers (MRLs) from North Korea’s primary weapons trading firm”.

The army had used Czechoslovakian-built RM 70 MBRLs during its military offensive – a weapon capable of firing 40 rockets packed with 256 kg of explosives in just 30 seconds – to devastating effect during the armed conflict. In February 2008, at the height of the killings. Slovakia reportedly sent 10,000 rockets to Sri Lanka amidst criticism that the sale had broken European Union regulations. Unconfirmed sources speculated that Sri Lanka paid just $180 per rocket.

A Sri Lankan military parade showcases MBRLs purchased from abroad and deployed to deadly effect.

“Some of these proposed arms imports appear to violate UNSCR 1718,” the cable continued.

It made clear that Sri Lanka had previously been accused of breaching other UN Security Council sanctions through seeking to purchase weapons from Iran, and Colombo had been “demarched” by the US government.

“As part of our ongoing dialogue on nonproliferation, we would like once again to express our concern over Sri Lanka’s potential procurement of lethal military equipment from Iran and North Korea,” it continued.

“We also want to remind the GOSL of possible sanctions under the Iran, North Korea, and Syria Nonproliferation Act (INKSNA). The INKSNA requires regular reports to Congress identifying individuals and entities who have transferred to or acquired from Iran, North Korea, or Syria certain items related to weapons of mass destruction, ballistic or cruise missiles or advanced conventional weapons.”

At the time, Sri Lanka strenuously denied it had made any purchases.

Sri Lanka’s UN ambassador, Palitha Kahona, told Turtle Bay in 2011, “at the time, the government issued a denial, a total denial to these allegations”. “I think the position remains the same,” he concluded.

A 2017 UN Panel of Experts report on North Korea however said that the “Democratic People’s Republic of Korea is flouting sanctions through trade in prohibited goods, with evasion techniques that are increasing in scale, scope and sophistication”.

It went on to detail how two North Korean diplomats “travelled together to Sri Lanka three times (between 2014 and 2016) to discuss shipbuilding projects”.

“Described as boat-building experts, they reportedly met with the State Minister of Defence of Sri Lanka on 5 November 2015 to discuss building naval patrol vessels at a Sri Lankan shipyard prior to sale to its navy,” the report continued.

Though the UN experts wrote to the Sri Lankan government, it noted that at the time of publication “the Panel has yet to receive a reply from Sri Lanka”.

Rajapaksa’s latest remarks are the first time that a senior government official has confirmed the reports of purchases from Pyongyang. One of the starkest aspects of Rajapaksa’s interview though, was how the finance minister had now opened himself up for prosecution from US authorities.

Just last year, a US-citizen pled guilty in court to helping North Korea evade US sanctions through the use of cryptocurrency. He is to be sentenced later this month and faces a lengthy jail term. In 2020, the US government also charged 28 North Korean and five Chinese individuals with facilitating more than US$2.5 billion in illegal payments for North Korea’s nuclear weapons program.

The US has already placed travel bans on several Sri Lankan soldiers over war crimes, but dual-citizen Rajapaksa may have made himself liable to prosecution.

And whilst the minister did not elaborate on which weapons were purchased or when, his remarks have led to questions over the legality of such trades and how any arms would have been used.

“This is the tip of the iceberg,” said Jan Jananayagam, director of Together Against Genocide (TAG).

“We have long believed that Sri Lanka’s genocide of Tamils was accomplished using, among others, weapons purchased from sanctioned parties including North Korea and Iran. Some of these unlawfully acquired weapons, such as cluster munitions and chemical weapons were unspeakably brutal toward the Tamil civilian population who were their targets.”

In recent years, states around the world have come under pressure over military assistance and the supply of weaponry to Sri Lanka, given the island’s chequered human rights record.

“Never forget that an estimated one in five of the civilians in the so-called ‘No Fire Zones’ (where these weapons were used) were children at or under the age of twelve,” added Jananayagam.

Sri Lanka has refused to hold anyone to account for crimes committed during the time and consistently pushed back against efforts for an international investigative and accountability mechanism. Rajapaksa’s latest remarks however shed more light on the international support that Sri Lanka sought at the time, possibly breaking UN sanctions whilst doing so.

“I look forward to justice for these and other mass atrocity crimes,” Jananayagam concluded.

Sri Lankan families go hungry as cost of food skyrockets

Posted on February 1, 2022 | by Branita | Leave a Comment

Dinner time has become Susila Irangani’s least favourite time of the day. Nowadays, the 62-year-old never knows whether she will be able to put food on the table for her two daughters.

The price of essential foodstuffs – from dhal to eggs – have doubled in her village of Dummalasuriya in Sri Lanka’s northwestern province over the last year alone.

“We used to have three meals a day but now we are having to skip dinner because of the little income that we have. This is all because of the increase in prices of essential goods,” said Ms Irangani.

“The cost of living is such that we cannot even think of having a balanced meal.”

The housewife says her family can no longer afford to purchase meat or vegetables when they do eat and that the extortionate price of kerosene has sent her husband into the nearby forests to collect firewood.

“How can a family like us survive with the soaring prices of essential items?” asks Ms Irangani. “Does the government want us to starve and die?”

Impoverished Sri Lankans say they cannot purchase enough food to eat, as the country endures the worst economic crisis in its history, which was compounded by a disastrous decision to switch to organic farming last year.

Colombo in May announced that it was banning the use of all chemical fertilisers, pesticides and herbicides in a shock move that was praised by environmentalists.

The Sri Lankan government said it would encourage more sustainable farming practices and would also reduce cases of kidney diseases among farmers, which it blamed on exposure to the chemicals.

But, the sudden switch resulted in one-third of Sri Lanka’s agricultural land being left dormant as farmers said they would be unable to suddenly cultivate land using organic fertilisers alone.

The policy was scrapped in November after farmers took to the streets in protest but its impact will be felt long into 2022.

Jeevika Weerahewa, a senior lecturer at the University of Peradeniya, predicts that the short-lived ban will reduce this year’s paddy harvest by an unprecedented 50 per cent.

“I wouldn’t consider it a bad move in principle but it should not have happened in such an abrupt manner, the government was too quick to go ahead with a switch to organic fertilisers,” said Ms Weerahewa. “In addition to the rice crop, the maize harvest was reduced and its prices went up and the cost of other goods, including chicken and eggs also rose. We anticipate that the food insecurity situation in the country will get worse over the next few months.”

When a harvest fails in a country it is usually the job of its government to purchase extra food stocks from abroad. But, that hasn’t been possible in Sri Lanka.

Colombo owes £21 billion to lenders over the next five years. This includes repayment of over £5 billion of high-interest loans to Beijing, as well as to international financial markets and the Asian Development Bank, after borrowing beyond its means to fund exorbitant infrastructure projects.

Already Sri Lanka has been forced to lease the use of its new deep water port, Hambantota, to China in lieu of previous payments.

This week, Dr Wijeydasa Rajapakshe, a prominent Sri Lankan MP, accused China of economic invasion, debt diplomacy and sowing corruption in the country.

“It is a total disaster. The country has never faced the kind of food poverty as it does now and I think the finger of responsibility rests almost entirely on the government,” said Charu Lata Hogg, Associate Fellow in the Asia Program at Chatham House.

“There were also enough examples out there from the many African countries who have over borrowed from China and Sri Lanka could have learnt from this.”

Sri Lanka has imposed a blanket ban on imports since March 2020 to protect its foreign currency reserves which have dwindled to around a mere £1 billion.

Rather than stabilise the market this has instead caused chronic shortages of foodstuffs and hoarding by shopkeepers, many of whom have been subject to raids by the police.

A further decision to print over £470 million of new currency in 18 months has contributed to soaring inflation rates, currently the second highest in Asia.

The price of rice is predicted to skyrocket to Rs300 (£1.10) over the upcoming months. One kilogram was sold at around Rs120 (£0.40) in December, 2020.

One resident of the city of Kandy, who wished to remain anonymous for fear of their safety, said shortages had already become so severe that they could only purchase rice three times a week.

“The transition from chemical to organic fertilisers should take a lot of time, at least a decade. The present food crisis is mainly due to the government’s ill thought out decisions,” they added.

Approximately 75 per cent of Sri Lankans are dependent on agriculture for their livelihoods. This drop in yields has also caused a direct loss in earnings while food prices are simultaneously at their highest.

Over 500,000 of Sri Lanka’s 22 million citizens have been pushed into poverty since 2020 and the Covid-19 pandemic has further reduced earnings. Border closures have caused an estimated £10.5 billion loss in tourism revenue over the last two years.

“It has been the perfect storm of events and living has become totally unaffordable for many lower and middle class people who can no longer afford to feed their families,” said Ms Lata Hogg, “We are now looking at a severe humanitarian crisis.”

Mr Rajapaksa has admitted that his government is “not delivering” and this week, despite the grave financial situation, he agreed to pay £150 million compensation to the country’s farmers over a loss of earnings during the chemical fertiliser ban.

A proposed bailout is unlikely to include China. Thousands of protesters recently took to the streets of Colombo in an unprecedented protest against Mr Rajapaksa and some raised anti-China slogans, echoing recent rallies in Nepal and the Maldives, two other South Asian countries in significant debt to Beijing.

Relief could instead come from India and last week, Mr Rajapaksa made a surprise announcement that the Sri Lankan military would return land seized from Tamils during the civil war.

The announcement is likely to be warmly received in India as the country has a significant and politically influential Tamil minority.

Last month, the Sri Lankan government announced that it would pay off a $251m (£188m) Iranian oil debt by sending the country millions of dollars worth of tea every month.

The country will ship $5m of leaves to the country every month to settle the debt, in what is believed to be the first example of the beverage being used to settle a bill between governments.

Will centralizing Modi support Lankan Tamils’ demand for federalism?

Posted on January 31, 2022 | by Branita | Leave a Comment

The Sri Lankan Tamil parties have sent a letter to the Indian Prime Minister Narendra Modi seeking his help to establish a Federal Constitution in Sri Lanka in place of the present Unitary one on the plea that the minority Tamils are not able to realize their aspirations under a centralized, Unitary set up.

It is learnt that they have done this despite advice that they should seek an achievable goal, that is the full implementation of the 13th Amendment of the present constitution because it flows from the India-Sri Lanka Accord of July 1987.

Despite intense debates in which the parties of the Indian Origin Tamils from the Up country and the Western Province maintained that the majority Sinhala community would never envisage a federal setup because it equates federalism with separatism, the 11 Sri Lankan Tamil parties representing the Northern and Eastern provinces, adamantly stuck to the stand that they would not deviate from their long-standing demand for a federal structure.

India’s Limitations

But the question that the Sri Lankan Tamil parties failed to ask themselves is whether the Indian Prime Minister can push for federalism in Sri Lanka when India itself is not federal State in the way the United States is. India has been slowly but surely centralizing governance since independence in 1947. And the process has intensified under Modi’s watch. Therefore, the pertinent question is: Can Modi support demand for federalism in Sri Lanka?

Eating into the States’ Share

The Central Indian government has been encroaching on the States’ rights even in regard to subjects assigned to the States by the Constitution. The financial dependence of the States on the Centre arising from asymmetric taxation rights, enables the Centre to dictate to the States. National policies on various subjects are made without systematically consulting the States. Formal and informal institutions set up for consultations are in disuse.

The Communist Party leader, D.Raja, points out in an article in Indian Express that the Planning Commission, a non-political body of experts that drew up policies in consultation with the States and the Union government, has been scrapped. The Inter-State Council has met only once in the last seven years. And the National Development Council has not met at all.

The tenure of the 15th Finance Commission (meant to divide the levies collected by the Centre between the Centre and the States) was mired in controversy and many states expressed apprehensions about the evolving pattern of financial devolution, Raja says. The All India General Sales Tax (GST) has taken away much of the financial autonomy of the States. The country’s federal indirect tax regime has become unitary.

Recently, parliament legislated on agriculture, an item in the State list, to enact the three contentious farm laws, which led to a year-long agitation by farmers in Punjab and a few other North Indian States. Students in Tamil Nadu have committed suicide over the discriminatory nature of the national examination (NEET) conducted for admission to medical colleges, when “education” is a devolved State subject. The right of States to determine the standards required for entry into professional colleges has been violated and sacrificed at the altar of national uniformity. The principle of uniformity does not recognize differences in the educational levels prevailing in States in a diverse country like India. Recently, the Centre arrogated to itself the power to withdraw from the States, officers belonging to the All India Administrative Services, thus severely handicapping the States.

Until the Supreme Court put an end to it, the Centre could sack a State government on trumped up charges under Art.356. Recently, the Centre reduced Jammu and Kashmir State to the level of a Centrally administered “Union Territory” citing terrorist threats. New States are carved out of existing States without consulting the affected States. The States have no control over the Central armed forces deployed in their territories. In the border States, the jurisdictions of these Central forces are determined solely by the Centre. The discriminatory policy on citizenship is affecting Muslim and Sri Lankan Tamil refugees.

Constitution is Unitary

All this has been made possible by the Unitary character of the Indian constitution. The Constitution was drafted between 1946 and 1949, when India was in turmoil. The country was violently partitioned into a mainly Hindu India and a Muslim Pakistan. There were hundreds of theoretically independent Princely States which needed to be integrated with India. Therefore, the primary concern of the makers of the Constitution was controlling separatism by making the Centre strong if not omnipotent. The Constitution did recognize India’s diversity but it also provided for a Centre with over-riding powers.

During the Constituent Assembly debates, the first Prime Minister, Jawaharlal Nehru, cautioned that “it would be injurious to the interests of the country to provide for a weak central authority which would be incapable of ensuring peace, of coordinating vital matters of common concern and of speaking effectively for the whole country in the international sphere.” Other prominent members of the Assembly also demanded a stronger Union government necessary for India’s survival and political stability, given its vast diversity in religion, language, caste and ethnicity.

The Constitution gives the Union parliament discretion to reconstruct the boundaries of the States. The Union list of subjects contains more subjects than the State list. In case of a deadlock between the Union and the States over subjects in the Concurrent List, the Union law prevails. The Union parliament can also legislate on any State subject under extraordinary circumstances.

The Union Government has power to appoint State Governors and dissolve State governments by proclaiming President’s Rule if it deems fit. Institutions of governance like a single system of courts, all-India public services and integrated audit machinery and election machinery help the Centre exercise power over the States.

When States Can Assert Themselves

However, even as the Indian Constitution is biased in favor of the Union government, States have room to assert their interests under certain political conditions. When the liberal Jawaharlal Nehru was Prime Minister and the Congress was the dominant party, the States enjoyed autonomy because he believed in consultation and consensus and the Congress leaders in the States were men of stature. But when his daughter, the imperious Indira Gandhi, was PM, she brooked no opposition. She held the States on a tight leash, even sacking State governments which did not toe her line.

However, when weak coalition governments ruled India from New Delhi, the States were assertive, especially when they were ruled by opposition parties or regional parties.

Currently, the States are under the thumb of the Centre because the Centre is ruled by the Bharatiya Janata Party (BJP) which not only believes in Centralization and uniformity, but also has a brute majority in parliament to enforce its will.

The government in New Delhi is flexing its muscles by using the Centrally-controlled investigative agencies to rein in State leaders who are either from the opposition parties or are from the regional parties. The BJP is also using State Governors appointed by it, to act, not as constitutional figureheads as they are meant to act, but as an arm of the Centre in the latter’s schemes against the States. In Tamil Nadu, Governor R.N.Ravi, who has an intelligence background, started communicating with State government officials bypassing the State Chief Minister, against well-established norms.

This being the case in India, the Sri Lankan Tamil parties’ bid to get the Indian Prime Minister to press Colombo to replace the present Unitary constitution by a Federal one is doomed to fail. The move can only serve one purpose: winning elections. The Tamil voter is still wedded to the demand for Federalism despite dismal failure to get it in 74 years of struggle, both peaceful and armed, and with and without foreign help.

Black Market Dollars no different to Central Bank Dollars- Min. Basil Rajapakse

Posted on January 31, 2022 | by Branita | Leave a Comment

Sri Lankan Finance Minister, Basil Rajapakse, speaking to a Sunday Newspaper this week, noted that he cared less about the method in which dollars came into the country, as long as they flowed in.

Commenting specifically about the ‘Undial’ informal black-market system currently being widely used in Sri Lanka to transfer dollars, he noted that while this was disadvantageous to the Central Bank and the government, it benefitted the country.

When questioned about the fact that only official dollar-inflows from sectors such as tourism and exports would be counted as Foreign Reserves, the Minister noted that the reserves were important only for “Rating Agencies” and there was no difference between the dollars that came in through these official channels and those that didn’t.

China assures Sri Lanka firm support in fight against pandemic

Posted on January 31, 2022 | by Branita | Leave a Comment

Li Zhanshu, Chairman of the Standing Committee of the National People’s Congress of China gave the assurance in a message to Speaker Mahinda Yapa Abeywardena.

“Learning about your infection with COVID-19, I would like to extend my sincere sympathy to you and wish you a speedy recovery. After the outbreak of the COVID-19 pandemic, China and Sri Lanka have been helping each other and overcoming difficulties together, and the traditional friendship is further deepened,” he said.

Li Zhanshu said that China will continue to firmly support Sri Lanka in its fight against the pandemic.

The Chinese official said he looks forward to working the Sri Lankan Speaker to enhance the friendly exchanges between the legislatures of the two countries, and to promote the continuous development of the strategic cooperative partnership between China and Sri Lanka, feathering sincere mutual assistance and enduring friendship.

Egg attack on Anura politically motivated: JVP

Posted on January 31, 2022 | by Branita | Leave a Comment

Claiming that the egg-throwing attack targeting JVP leader Anura Kumara Dissanayake was a politically motivated and organized attack, JVP MP Vijitha Herath said today that a private security firm was behind the attack.

He told a news conference that a group led by the security firm involved in a similar attack at a protest march organized by the JVP in Colombo Fort recently.

He said it was clear that the attack was politically motivated.

MP Herath also said two complaints were made with regard to the incident and that the two suspects had revealed that they were paid Rs. 5,000 to carry out the attack.

The JVP Parliamentarian said those who resorted to such a spiteful action, not to do such things and urged them to confront with policies.

TPA wants PTA out

Posted on January 31, 2022 | by Branita | Leave a Comment

Parliamentarian Mano Ganesan on Friday said, his party, the Tamil Progressive Alliance (TPA), is of the view that instead of bringing amendments, the government should promptly take measures to repeal the Prevention of Terrorism Act (PTA).

He said the current government had been forced to introduce amendments to the PTA as they had failed to do away with it effectively to date.

The MP added that the time provided to the Government to remove the PTA altogether has now lapsed, and he alleged that they are now attempting to amend it as they have no other alternative. However, he stated that failure to dispense with the PTA totally should not be placed entirely at the feet of the SLPP, and mentioned that previous regimes should also be held accountable for it.

India wanted to develop Trinco oil tanks for security reasons

Posted on January 31, 2022 | by Branita | Leave a Comment

Energy minister Udaya Gammanpila claims India wanted to develop the Trincomalee oil tank farm for security, not commercial, reasons.

Speaking to the Indian news channel Wion, he revealed as to why it took more than two decades for India and Sri Lanka to finalise the deal.

“Well, India wanted to have all 99 tanks in their control and then sublease to Sri Lankan entities who want to use these tanks. So when I became the minister, I realised that India’s interest is not commercial but it’s a security concern.”

“This oil tank farm has 100 tanks with a capacity of 10,000 metric tons each, 8 million barrels of oil can be stored in this oil tank farm. If an enemy of India takes control of these tanks, the enemy can attack India without any uninterrupted break because of the unlimited fuel supply on their ships, planes and submarines.”

“So, this is India’s worry that they don’t want to develop this,” he said.

“This is my own assessment — If they (India) could bomb and destroy this, their problem is over. I realised this and I agreed with them that we will not allow a third party to involve in the development of these tanks without the Indian consent. That’s what they exactly wanted,” he said.

Gammanpila said that they had to change the proposals to include India’s concerns.

“So, I changed the frame, and our counter-proposal was accepted by India. It was a tough negotiation. We had 22 rounds of negotiations during the period of 16 months.”

“There were heated exchanges and somehow, in the end, we have reached a consensus and the entire oil tank farm will now be used for the first time since the Second World War,” the minister said.

No strings attached to Sino-Lanka ties – Lankan envoy in China

Posted on January 31, 2022 | by Branita | Leave a Comment

Sri Lanka’s Ambassador to China Dr. Palitha Kohona in an interview with the Sunday Observer explains where the ‘strong and warm’ bi-lateral relations between Sri Lanka and China are heading in the future, on the eve of 65th anniversary of establishing Sino-Lanka diplomatic relations.

Dr. Kohona said Sri Lanka’s territorial integrity has not been a bargaining chip on the table for Chinese development assistance.

Q: This year marks 65 years of diplomatic relations between Sri Lanka and China and the 70th anniversary of signing the China – Ceylon Rubber-Rice Pact. What is unique and important about our relations with China?

A: I would not use the expression unique, when describing the relationship with China. I would say the relationship is extremely strong. And it has been built upon a solid foundation.

Sri Lanka’s relationship with China goes back 2000 years. In the distant past many traders voyagers, bhikkhus came to Sri Lanka from China, and Sri Lankan bhikkhus, bhikkunis, princesses and traders voyaged to China by sea. Famous voyager Admiral Zheng He visited Sri Lanka thrice. He left a stone pillar in Galle, commemorating his visit. The Chinese bhikkhu Fa-hsien came to Sri Lanka much earlier and lived in Anuradhapura for two years. The copious notes of his experiences in Sri Lanka, help us to gain an understanding of the society at the time.

Sri Lanka was one of the first countries to recognise the new People’s Republic in 1950. Diplomatic relations between the two countries were established in February 1957. In 1952, we breached an embargo imposed on China, by Western countries and agreed to sell rubber to China in exchange for rice. We were not a member of the United Nations at the time, like China.

When we were struggling desperately against a terrorist group, China came to our aid in a big way. It could be even said that Sri Lanka may not have been able to defeat the terrorist threat in 2009 if not for the assistance provided by China. The assistance was mainly in the form of military hardware.

Later when we were desperately trying to fast-track our post-war economic development, our traditional friends were not ready to offer the kind of help we needed. The Chinese funding assisted us to complete many major infrastructure projects including highways, airports and sea ports.

More recently when the pandemic affected us and was threatening to spin out of control, China provided us with 27 million doses of Sinopharm vaccine. Three million were given as a gift. It is not an exaggeration to say that Sri Lanka has managed to control the pandemic to this extent largely because of the Chinese vaccine. Over 72 percent of the Sri Lankans are now vaccinated.

We have to remember that China is the second biggest economy in the world after the US. It›s estimated by the World Bank that China will become the biggest economy by 2028. It is also the biggest source of Foreign Direct Investment (FDI) in the world today. Close to US $ 150 billion flows out of China by way of FDI every year. Similarly, China is also the biggest magnet for FDI in the world, having surpassed the US last year.

China was also the biggest source of tourists prior to the pandemic. Over 169 million Chinese travel to other countries every year. In a political sense and an economic sense, China is going to be a very important player in our region and the Government of Sri Lanka recognises this. The leaders of the two countries have been in communication with each other on the phone recently. We have had the visits of Defence Minister Wei Fenghe last year and Foreign Minister Wang Yi early this month.

Q: Where do Sri Lanka, a relatively small nation, stand in China’s trajectory of diplomacy – are we as important for them as they are for us?

A: The challenge for our diplomacy is to make Sri Lanka important for China. It is a huge country. It is now a modern country with enormous resources. We need to make every opportunity to highlight Sri Lanka in the Chinese media. That is the reason why over the past few months the Sri Lanka’s mission in China had been conducting a vigorous campaign to raise awareness on Sri Lanka. We encouraged film producers to feature Sri Lanka. I have been on television promoting our country. I have visited 14 provinces meeting the Governors, Deputy Governors and Mayors to make Sri Lanka more prominent.

Q: Is Sri Lanka a favoured destination for Chinese tourists?

A: I discovered after coming to China that awareness on Sri Lanka among Chinese citizens is very limited. While Thailand has received 26 million Chinese tourists in 2019, Singapore 4.5 million and Australia 2.5 million, Sri Lanka received 265,000 tourists in 2018.

Q: What are the bi-lateral investment and tourism sector projections for 2022?

A: We have been talking to many Chinese companies on investment prospects of the Colombo Port City and the industrial processing zone near Hambantota harbour on manufacturing, assembling and even transshipment projects. There is a degree of interest. Our location in the Indian ocean is the main attraction, but we need to work at it more.

Awareness is being made on higher education levels of our people, favourable tax structures, welcoming investment climate and the Government which is committed to bringing in many foreign direct investments.

As a result of our vigorous campaigning, enthusiasm to visit Sri Lanka has risen. The Chinese, at the moment, are suffering from a pent up urge to travel, after two years of pandemic restrictions. Our goal is to make Sri Lank high on their agenda, as a destination for travelling. We have requested the Chinese government that Sri Lanka be designated as a preferred destination once the travel restrictions are relaxed.

We have spoken to some top Chinese travel groups such as Caissa, China International Travel Services and Shanghai Travel Bureau. These have a client base running into millions. They have promised us that they are capable of sending more than a million tourists per year to Sri Lanka.

Q: Is that our target?

A: Our target is much more. If Thailand can get much more, we should too. But this will be the immediate aim. We need to train more Chinese language proficient guides. The average Chinese does not care about English. We need guides who are familiar with historical sites. The Chinese are different from European tourists who like to relax on a beach. The Chinese want to learn about the places they travel to. We need to cater to that. The hospitality trade must focus more on Chinese tourists.

Q: The observers say Sri Lanka had been impressive in their balancing act between India and China, in addressing post pandemic economic challenges?

A: I would not call it a balancing act. India is an old friend which had been with us for thousands of years. Our ancestors arrived from India. Our religion and our culture came largely from India. Working effectively with India is essential. We need to be sensitive about India’s needs, and concerns. It has come to our aid when we needed assistance.

As I explained earlier, we have a very long relationship with China. We turned to them during the battle against terrorism and later for post war development and now when facing a deadly pandemic. China has readily come to our assistance. I don’t think this should be characterised as a balancing act. Friendships have their own rewards; bi-lateral relations should not be based on self interest alone.

Q: Any new major development projects envisaged jointly with China?

A: A number of highrise building projects in Colombo, mainly for residential purposes, is in the offing. They are not development projects. The investors are ready to begin the projects within the next two years. But approvals from Colombo are yet to be finalised. A major Chinese steel company is also keen on starting a plant in Hambantota.

A number of Chinese private companies has expressed desire to get involved in renewable energy programs of the Government. If these projects were implemented earlier, we would not have power cuts today. The whole is heading towards renewable energy at a breakneck pace, and I think we should take a cue from them. By 2030, 70 percent of our energy needs will come from renewable energy. By 2060 we will be carbon neutral. Sri Lanka has made that commitment. We need to head that direction.

Q: There is talk of a 100 acre Port City being planned in Galle. Is this funded by the Chinese?

A: The details of this project are not known yet. It is still at the planning stage. It is not a port city per se. It is a port to house cruise liners. I haven’t seen the name of any Chinese company associated with it at this stage.

Q: China has been a lifeline for the Government which is trying to overcome a US $ crisis triggered by the Covid-19 pandemic. But critics say the Chinese loans will be of no use since we can use the credit to buy only Chinese products. Your comments?

A: No country offers credit in a manner to boost the economy of a third party. This is the reality of the current world. It applies across the board. This is almost a naive comment.

Q: China is an emerging ‘world super power’, embroiled in a battle for supremacy with other super powers. Thus, aren’t we unnecessarily putting our country in jeopardy by getting too close to China?

A: China is the second biggest economy in the world. It is the largest source of foreign direct investment in the world. It is the biggest consumer market in the world. Every country, including the developed countries in the West, wants to access the Chinese market.

The biggest destination of Chinese FDI is the US and the Europe. Has anyone criticised the US for accepting Chinese FDI? No. Similarly China is the biggest recipient of foreign FDIs. China is the biggest market for German, French and Italian goods. And also 51 percent of agricultural imports to China are from the USA. This is the reality. The First World countries are falling over each other to access the Chinese market.

these critics don›t have the best interest of the country in mind. They also criticise the Belt and Road initiative. The money invested under this initiative has dramatically revived economies of many countries in the region. Many African Countries and South East Asian countries such as Vietnam and Laos have started to progress as a result of Chinese FDI .

Of course, we need to be conscious that our independence, sovereignty and territorial integrity are not on the table as bargaining chips during our negotiations with the Chinese or any other Government. Over 21,000 young men and women sacrificed lives to protect our territorial integrity in the face of a terrorist threat. A larger number was maimed for life.

Q: What is being done to minimise the trade imbalance between Sri Lanka and China?

A: There is a very big trade imbalance between China and Sri Lanka. China exports something like US $ 4 billion worth of goods to Sri Lanka. We have just managed to export US $ 232 million worth of goods to China. The Mission is encouraging the Export Development Board (EDB) to take a more proactive role in exploiting the Chinese market: the biggest consumer market in the world.

We can export almost anything to China – vegetables, coconut products, tea, gem and jewellery and handicrafts. Chinese love Sri Lankan gemstones. Two weeks ago our Mission hosted a major exhibition of Sri Lankan sapphires. Sadly all those sapphires belonged to a Chinese company.

Sarath Fonseka doubts country will develop even if they form a govt

Posted on January 31, 2022 | by Branita | Leave a Comment

Field Marshal Sarath Fonseka says he does not believe that the country will develop just because the ‘Samagi Jana Balawegaya’ comes to power.

“This country will not develop because we form a government. On the other side there are economic experts. We also have great people,” he said addressing an event.

Referring to the ruling party and the main opposition, the SJB parliamentarian said there are experts on both sides, however this country is not developing.

“Why is it not developing? Because of corruption and misuse. There is no accountability, no responsibility.”

He said that therefore no matter what economic expert comes they will only balance things out. “If the country has no production, the country will not go up on one side. On the other side its corruption.”

He said that if their party is to truly be different to the others, they have to understand this fact and work on that line. “If the party leader was here, I would give this message in the same way.”

“I told him (party leader) in Badulla that you should never even mention the name of Ranasinghe Premadasa ever again. Because there is no point in that now,” he emphasized.

“We definitely need to make our journey. Our leaders need to become better.”