Shall immediately halt militarisation if I become president – PCR

The leader of 43rd Brigade, Patali Champika Ranawaka, MP, says he will immediately halt militarisation in Sri Lanka if he becomes the head of state.

However, he says he has no regrets about supporting the Mahinda Rajapaksa presidency in 2005. In his opinion, it was the need of the hour to defeat terrorism.

The Samagi Jana Balawegaya parliamentarian made these remarks while speaking with Saroj Pathirana for ‘Sandeshaya by Saroj’ YouTube channel.

Ranawaka, who held cabinet portfolios during Mahinda Rajapaksa and Maithripala Sirisena tenures, says the island nation doesn’t need a 300,000 strong army personnel as the country is no longer at war.

Urging all concerned to “forget” wounds of the decades long civil war, he says it is practically impossible in Sri Lanka to punish anybody for war crimes.

However, the ’43rd Brigade’ would support the abolition of the executive presidency, says Patali Champika Ranawaka, only if the previous election system re-introduced.

Posted in Uncategorized

Outlook for Sri Lanka in the “Unlocking Year” 2022 By Valsan Vethody

2022 would be the “Unlocking Year”. If so, there will be no more fear and anxiety; the masks would disappear; cosmetics and business suits would once again be out on display; work-from-home-battalions would go back to the usual hustle and bustle and to the intimidating presence of their bosses in offices; webinars and zoom meetings sans live presence would cease; more and more pompous grumblings about jet-lag would resonate in clubs and board-rooms; MBA brains would get overstressed; ‘ambitious-graphs’ for operational targets of corporates would peak; bank accounts in tax havens will swell; computers at the income tax and enforcement departments will overwork; and the Central bank officials will break their heads to deal with the complexities of an overheated economy showing high consumer demand, supply chain disruptions, excessive money supply, asset bubbles, inflationary pressure, low interest rate, reduced purchasing power that affects savings and investment, foreign exchange volatility, widening income inequality, malnutrition and a surge in the BPL numbers.

This sort of an economic concoction, in which all sorts of positive as well as negative socio-political-economic elements would certainly be a challenge for policymakers to get the macroeconomic fundamentals aligned with democratic realities of the polity, especially, in the context of high expectations from citizens and businesses, who hope their leaders can pilot them out of the Covid-19 induced socio-politico-economic muddle.

These challenges and expectations would be an enticing topic of debate for the so-called ‘aandolan-jeevis’, trade union leaders and political and economic pundits, in the media and on the political platforms that might even impact the future electoral outcomes. This also would have its own international ramifications as the world continues to remain economically multipolar, with its own complexities of competitive economic whims and fancies. These ramifications would be even more intense in the middle-income economies with high economic aspirations, especially if the macro-economic fundamentals of their domestic economies are not strong enough and if they are dependent on external resources to fulfil the economic aspirations of their citizens. Moreover, it becomes progressively worse along with the periodical auctioning of the non-existent resources by politicians in the name of an egalitarian democracy.

These economies are typically those that become easily vulnerable to the geo-strategic susceptibilities that are increasingly becoming polarised into a bipolarity between the USA and China. This bipolarity is the outcome of a decade-long lingering dispute between these two nations over the traditional global economic governance structure, which has been by and large under the dictation of the Western-led, neo-liberal multilateral institutions based on Western values such as strict governance conditionalities, fundamental rights and religious freedoms. This, according to many Third World nations, is designed to interfere in the internal affairs of a nation and therefore imperialistic. China challenged this with its monetary fund – the Global Stability Mechanism – modelled after their governance model based on tech-authoritarianism combined with state-led capitalism and most importantly without any governance conditionalities. China’s political stability, unilateral quick-decision-making mechanism and stronger economic power not only further complemented this model but also harmonised the consolidation of their dominance over the global financial system with their long-term foreign policy interest, while the US has been stumbling with its arbitrary and heedless military-power based foreign policy.

However, the positive development of this geostrategic dimension is the launch of the ‘Global Gateway’ strategy by the EU with an ambitious 300 billion Euros of investments between 2021 and 2027 in various socio-economic sectors across the world with the intention of countering the Chinese global investments and attaining ‘strategic autonomy’ for EU.

When it comes to South Asia, the region which is a vital intersection of maritime trade, connecting the Indian Ocean to the Pacific in the East and the Mediterranean in the West, the geo-strategic bi-polarity becomes a chaotic-tri-polarity. The third polar being dominated by India, the regional superpower, which wields regional superiority over the other two powers due to its geographic and economic dimension, technological capacity, geo-strategic location, cultural identity and most importantly its military power.

Nevertheless, China’s ‘pervasive economic investments’ in the key strategic sectors in South Asia, such as infrastructure, high-tech, information technology, data management, green economy and artificial intelligence, and their assertive border disputes have created a sense of ‘neo-security-threat-perception’ in India, which has not only led to Indo-China face-to-face military stand-off and arms race both in conventional and cyberspace, but also to both India’s as well as China’s discrete meddling in the internal decision-making processes of some of the South Asian nations. In this context, it should be noted that the cornerstone of India’s foreign policy in the South Asian region has always been this so-called ‘security-threat-perception’.

Sri Lanka, with its unique geo-strategic position in the centre of the Indian Ocean, is the worst affected in this regard, as the global geostrategic stakeholders today view Sri Lanka primarily through the prism of Indo-Sino-American geo-strategic competition. Therefore, going forward, Sri Lanka will need to navigate cold-blooded power competition between Beijing, Washington, and New Delhi as much as it did during the Cold War as well as during the thirty years of civil turbulence.

Sri Lanka has the experience as well as plenty of institutional memory with the dynamics of great power competition. Moreover, Sri Lanka has a proud history of safeguarding its sovereignty and integrity even during the most difficult period of its political history.

Therefore, Sri Lanka’s most difficult task lies not at the geo-strategic level, but at the national level, where it must adapt to highly professional governance skills to manage a mix of economic, health, foreign exchange, environmental, and internal socio-political stability challenges. Most importantly, to get the macro-economic fundamentals at the internationally accepted levels.

However, the Sri Lankan diplomatic dispensation has to be mindful that any sort of outreach to China to address Covid-19 economic distress would perpetuate the inaccurate perception that Sri Lanka is prone to advancing Beijing’s geostrategic ambitions.

These post-pandemic challenges are nothing unique to Sri Lanka alone, but also applicable to most other (Covid-19) pandemic hit countries.

(Valsan Vethody is the Consul General of Sri Lanka in Mumbai, India)

Posted in Uncategorized

Sri Lankan minister fumes after Tamil MPs write to India

A Sri Lankan government minister criticised a letter that Tamil parliamentarians addressed to Indian Prime Minister Narendra Modi this week, denouncing their call to New Delhi for assistance.

“They should have conveyed their concerns to our President instead of the Indian Prime Minister because we are a sovereign country and not a part of the Indian Union,” said Sri Lanka’s energy minister Udaya Gammanpila.

Gammanpila, himself a staunch Sinhala nationalist and leader of the extremist Pivithuru Hela Urumaya party, went on to add that “if our Tamil brothers have any issues with regard to implementation of the 13th Amendment they should have talked to our elected government, instead of outsiders”.

The nationalist leader has repeatedly rejected the 13th Amendment, which calls for limited devolution of powers to the Tamil North-East, and call for it to be abolished.

The letter was handed over by politicians from the Tamil National Alliance to the Indian High Commission earlier this week.

It calls on India to ensure that Sri Lanka abides by its commitments under the 13th Amendment and devolve power to the Tamil provinces as a starting point “towards a federal structure”.

Posted in Uncategorized

Trust placed in President Rajapaksa hasn’t diminished – Maha Sangha

The results of patient and well-planned decisions are now becoming a reality, the Maha Sangha has said, pointing out that it is the responsibility of all parties to unite to achieve the aspirations of people by placing trust in President Gotabaya Rajapaksa as a visionary and pragmatic leader.

These remarks were made by the Maha Sangha during the 12th meeting of the Buddhist Advisory Council held at the Presidential Secretariat, yesterday (January 21).

The Maha Sangha expressed their views at the Buddhist Advisory Council, appreciating the President’s leadership in protecting the people from the COVID-19 pandemic and rebuilding the country in the face of challenges and economic hardships.

The Maha Sangha pointed out that the trust placed in President Gotabaya Rajapaksa as the only leader who was able to save the country, the nation and the heritage that was deteriorating has not been diminished and that the people should be made aware of the steps taken by the Head of State during the last two years to protect the Kuragala Sacred Area, the Muhudu Maha Vihara and other temples in the North and East.

They also highlighted that it should be the responsibility of the Buddhist Advisory Council to provide factual information regarding the issues faced by the people of the country and to assist the President in finding solutions.

The President said he expects the guidance of the Maha Sangha to adopt laws and on national dialogues. He also stated that as the Sinhala-Buddhist heritage, which was on the verge of extinction, was preserved despite the COVID-19 obstacles, steps will be taken to develop those historic sites while continuing the task to fulfil the aspirations of the majority of the people.

The Maha Sangha, the members of the Buddhist Advisory Council, State Minister Vidura Wickremanayake, Secretary to the President Gamini Senarath, Principal Advisor to President Lalith Weeratunga, Secretaries to Ministries and Government Officials also attended the said meeting.

Tamil Nadu to provide financial assistance to owners of fishing boats in SL’s custody

Tamil Nadu Chief Minister M K Stalin announced a compensation of INR 5 lakh each to the owners of mechanised boats and INR 1.5 lakh each to the owners of country boats that are presently in the custody of Sri Lankan authorities, the Deccan Herald reports.

At least 128 mechanised boats and 17 country boats are in the custody of Sri Lankans at present. The Chief Minister’s office made the announcement on Friday evening.

Stalin also announced a package of INR 5.66 crore compensation for the 105 fishing boats and equipment that were damaged during the Northeast monsoon that lashed the state.

Fishermen association leader S. Bharathi said that the state government’s announcement is a major support to the beleaguered fishermen of the state who are being allegedly hunted down by the Sri Lankan Navy and police on trivial charges.

In 2021, five fishermen lost their lives during an attack by Sri Lankan authorities, including Naval personnel.

Sixty-eight fishermen were arrested and 15 were released from prison recently. The remaining 55 fishermen are still languishing in Sri Lankan jails.

The Union Ministry of External Affairs has already entered a diplomatic discussion with the Sri Lankan authorities on the arrest of Indian fishermen and the complaints being lodged by the fishermen of Rameswaram, Mandapam, and other areas of Tamil Nadu who were facing tough times in the sea near the Katchatheevu island as well as the International Marine Boundary Line (IMBL).

Krishnaswami Rajendran, who is the owner of a fishing boat at Rameswaram, while speaking to IANS said, “The Sri Lankan Navy is creating problems with our fishermen and it is high time that the government of India takes stringent action against the perpetrators who are attacking Indian fishermen from Tamil Nadu regularly.

“There has to be an end to this. The real situation in the sea is really tough and we are being attacked regularly for no fault of ours.”

Posted in Uncategorized

Sri Lanka national inflation hits 14-pct in December 2021 after money printing

Sri Lanka’s nation-wide inflation measured by the National Consume Price Index accelerated to 14 percent in December 2021 up from 11.1 percent, after record money printing to maintain low interest rates amid a surging budget deficit and downward pressure on the rupee.

The National Consumer Price Index hit double digits for the first time in November since it started to be compiled from 2014 and the December figure is the record high under the measurement.

The NCPI grew 3.7 percent in December to 161.0 points.

Food prices jumped 6.3 percent in the month while non-food prices rose 1.3 percent.

The food sub-index was up 21.5 percent in the 12-months to December 2021, while non-foods also rose 7.6 percent in the months.

Food prices have been on the rise since August 2019 as the central bank began inflationary policy buying back bonds from old deficits to inject liquidity as part of ‘output gap targeting’.

Generally food prices rise in December and January every year due to seasonal demand but in 2021 the rise had been unusually high amid supply shortage due to heavy rains and a fertilizer ban which hit farmers.

From February 2020, record volumes of money was injected through central bank profits transfers, outright deficit finance and Covid-refinance.

Later ceiling prices were placed on bonds auctions, and hundreds of billions of rupees of securities were bought into the central bank balance sheets to general liquidity and balance as the auctions failed.

Sri Lanka authorities have a repertoire of excuses to print money and keep rates down and delay rate hikes until currency crises have been triggered. The central bank raised the key policy rates on Thursday (20) by 50 basis points for the second time in five months. However, analysts say the tightening should have been done much earlier to curb inflation.

Sri Lanka inflation is going up as the Federal Reserve also follows loose policy and fuel and export prices of goods also go up.

However the money printing central bank was set up in 1950 under US advice supposedly to follow ‘independent monetary policy’ and break up the Sterling Area currency boards, according to critics.

Sri Lanka keeps inflation indices down by suppressing market pricing of energy, uses that also as an excuse not to allow rates to go up and then later claims, ‘administered prices’ pushed up inflation.

There have been calls to change the monetary law to block the ability of the Monetary Board create inflation and currency depreciation with discretionary independence.

Want to film or take professional pics at Port City? Make a payment to bank of China

Port City Colombo, which recently opened its public gallery to visitors, yesterday said that it had been forced to introduce payment methods for those willing to shoot professional pictures and videos on the Port City premises due to a rising number of requests from social media users and companies who wished to make an income from filming on the premises, the Daily Mirror learns.

A payment sheet introduced by Port City Colombo was highly shared on social media yesterday, which stated that if people wished to take professional pictures and videos for personal use, a payment ranging between Rs.30,000 to Rs.50,000 would have to be made.

According to the payment sheet for ‘personal’, if the shoot involved 2 to 5 people for one to three hours, a sum of Rs.30,000 would be charged and if there were 6 to 10 people, for the same duration of time then the sum would be Rs.50,000.
If there were more than 10 people involved in the project for the same period of time, then the payment was listed as ‘variable’.
For commercial purposes, if there are less than 10 people involved in the photo or video shoot for the same duration of time, a sum of Rs.100,000 would be charged. And if there are more than 10 people for the same time period, the sum charged was listed as ‘variable’.

Head of PR at CHEC Port City Colombo Pvt. Limited, Kassapa Senarath confirmed to Daily Mirror the authenticity of the payment schedule and said this however did not apply to those who wished to take selfies, pose for pics or video at the public viewing area when they visit the gallery.

He said when the public gallery of the Port City Colombo initially opened its doors recently, there were many social media users, musicians and even companies who visited the premises bringing in professional camera equipment to shoot for their products and videos. Some social media users had also come under the pretext of it being a promotion for the newly opened Port City premises.
However Kassapa clarified that this was a hindrance to the workers on site as the Port City was still a construction site and the safety of the people had to be maintained while all health guidelines also had to be strictly followed.

“Some people even came with heavy equipment which is why we then decided that if anyone needs to use the premises for their professional work and earn an income, then a fee will be charged. It is not done to earn any profit but done to maintain the protocols and health guidelines as the Port City is still a construction site. It is a general pricing structure,” Kassapa said.

The payment chart shared on social media received flak from the public and some even criticized as to why the payment had to be made to the Bank of China.

Kassapa said this was because the Port City maintained an account with the local branch of the Bank of China.

Posted in Uncategorized

Taking forward the India ties, one more time?

It was a virtual meeting of ‘un-equals’ or ‘non-equals’, but that also brought out the brother/sister relations between the two, where diplomatic protocol had not much of a place. Between them, Sri Lanka’s Finance Minister (FM) Basil Rajapaksa and India’s External Affairs Minister (EAM) S Jaishankar have sought to remove the cobwebs in bilateral relations to a desired level.

The choice of the FM on the one side and the EAM on the other side showed their respective priorities. For Sri Lanka, the economy, finances and forex is of immediate concern. For India, strategic security, this one centred on Sri Lanka, is a near-eternal cause for concern.

In the last round, when FM Basil went to Delhi a few weeks back, India presented a unique pair for the interaction. His counterpart Nirmala Sitharaman joined EAM Jaishankar in one of the two interactions between the Finance Ministers. This time for the virtual meeting, Sri Lanka did not seem to have suggested to upgrade their own team by including Foreign Minister G L Peiris. Or, so it seems.

India has a unique 2+2 discussion format involving their Foreign and Defence Ministers, in the case of the US first and Russia too in the recent past. Given mutual interests, concerns and expectations, a uniquely-suited 3+3 format would suit India and Sri Lanka even better, where respective Defence, Foreign and Finance Ministers huddle together for an annual, if not bi-annual or quarterly, exchange of ideas so as to facilitate early decision-making on either side.

Maybe, the respective Defence Minister’s place can be taken by the National Security Advisor (NSA), or it can be made a grand foursome group from either side. In Sri Lanka, most definitely, there would then be a protocol issue when it comes to identifying the team leader, but these are issues that governments by now should have been matured enough to resolve internally – if such a decision is taken.

For sure, such a scheme should be unlike the ad hoc arrangement that the Mahinda Rajapaksa regime put in place at the height of the ethnic war more than a decade back. This should be a more formal, institutionalised arrangement, whose life and term is not coterminous with either elected government leadership in power in the two capitals.

Tall on promises, but… the taste of the pudding is but then in the eating. Independent of the party or leadership in power in Colombo, India has always found Sri Lanka being tall on promises but short on implementation. Rather, a stark unwillingness has been seen all along, as if the government of the day did not at all intend sticking to the commitment.

New Delhi has always been left with the feeling that the Colombo leadership of the day was looking either for an economic succour of the current kind – which of course is the worst in a series – or political support as at UNHRC, or just moral support to face off electoral rivals nearer home, as in the case of former UNP Prime Minister Ranil Wickremesinghe. Whether promising a fair deal to the Tamils or unilaterally declaring to throw out China from the proposed Colombo Port City (CPC) project, if elected to power (whether or not sought by India in public or private), Ranil was very, very tall on promises. When it came to implementation, they did precisely what the Rajapaklsas did, but with greater elan and sophistication.

Either way, for India, the results were the same, not that New Delhi wanted China firmly out of CPC even before the first sod of land has been turned on. Ranil made it look like but his party and the breakaway SJB since have both declared that they are all for CPC, but were only opposed to the incumbent Gota Rajapaksa presidency’s legal scheme for the management of the Port City.

It was the same when it came to Ranil’s anticipated slow down on the China-funded Hambantota Port project. His decision to hand over Sri Lankan territory to China, purportedly on a 99-year-lease even when the rival Rajapaksas ‘stoutly’ (?) opposed the conversion of their construction-cum-concession contract into the new arrangement exposed the UNP for what it was worth.

The real debt and debt-trap are here, which the Rajapaksas did not possibly expect to be caught resolving when they took all those big-loans, especially from China with its usurious ways of money-lending. Possibly, they had hoped that the Opposition would continue to be in power for two or three terms, going by past national records and electoral history. That did not happen and they are now back in power, earlier than expected and earlier than they too may have wanted, barring as a check against personal harassment of their clan members by the previous regime.

Ranil’s charge of a debt-trap created by the Rajapaksas while in power before him was the cause was such conversion, as he wanted the world to believe, he poked a hole in his own argument by going back to China for more big-ticket loans for projects like highways construction that could well have waited. What is good for Ranil is equally so in the case of the SJB. This has left India with little option in dealing with Sri Lanka. Favourably, the Sri Lankans could call their stubbornness, ‘national consensus’.

Seeds of mistrust

While referring to the previous week’s $ 900-m package, EAM Jaishankar had tweeted about hopes of progress in the $ 1.5-b aid sought by Sri Lanka, which he had discussed with FM Basil on Saturday, 15 January. The tweet quoted FM Basil as mentioning various manufacturing sector heads as possible areas for Indian investments.

It is here the ECT-like hiccups and change-of-minds could occur, recur. Sri Lanka need not fool itself that India was mighty pleased with the offer of WCT in Colombo Port in the place of ECT, citing labour protests. New Delhi has seen enough of the world and even more of Colombo to be fooled. It is this kind of Colombo’s conduct that sows seeds of mistrust even in the average Indian mind.

In the past, Sri Lanka has only given cause for the mistrust to grow with each passing instance, each passing economic agreement or political understanding. The post-war shifting of political goal-post on a political settlement to the ethnic war was the irking element that caused New Delhi to side with the US at Geneva, circa 2012. Or, so it seems.

Against this, Jaishankar’s tweet has said that India would help find aid-partners for Sri Lanka. Clearly, it is other than China, and obviously aimed at discouraging Sri Lanka from going the China way, the Hambantota way, all over again. The assumption is that Colombo is agreeable to the idea, though throughout the Rajpaaksas’ administrative career, they have kept out the West and the IMF, whom they consider as an ‘American stooge’.

This will be an interesting phase to watch for all Sri Lankans. So would be the coming weeks, the run-up to the Geneva session of the UNHRC, where Sri Lanka would again be put over the coals. India to an extent can influence global decision, yes, but if and only if Sri Lanka ensures that the Tamils get their due (after the TNA had hardened their stand on 13-Plus, using a letter to Indian Prime Minister Narendra Modi as a ploy).

India should also be satisfied to convince the ‘international community’ (West) that their collective strategic concerns over China are a thing of the past. This is independent of Chinese Ambassador Qi Zhenghong’s Jaffna escapades, followed by his Foreign Minister Wang Yi’s Colombo visit, which have raised more questions about Sri Lankan collaboration than China’s intentions and provocations.

That Indian High Commissioner Gopal Boglay thought it necessary to rush to New Delhi on what could be described as an unscheduled visit, only to fast-track the $ 900-m deal and also put the subsequent $ 1.5-b arrangement in place, should be proof of India’s concern in rushing to Sri Lanka’s help as a good neighbour and relation. A lot will now depend on how far Colombo goes to discourage anti-India elements purportedly opposed to the Trinco oil tanks farms deal -– if it came anywhere close to the efforts it put in neutralising anti-lease protests in the case of Hambantota. Or, will it be akin to the way the government used street-protests to stall CEPA as far back 2008, or the ECT deal more recently, is the million dollar question.

As Sri Lankan High Commissioner Milinda Moragoda even recently told a New Delhi media interviewer, the two nations had to move away from this ‘transactional phase’ to be able to look at the bigger picture. That is where the hitch may still be. Colombo’s problems with New Delhi vide collaborated projects may only be procedural, alleged delays in particular. That’s not the case with India’s concerns about Sri Lanka. There is an anticipated air of uncertainty and insincerity from the very start – and at the instance of, or to please a ‘third party’ – of course, China, in this post-Cold War era!

Sri Lanka’s fresh equidistant policy vis-à-vis India and China

The dollar-starved Sri Lankan government is buoyed that it has been receiving financial assistance from India and China, which are vying for the dominance of the South Asian part of the Indo-Pacific region.

In recent weeks, regular announcements that the country has received currency swaps and credit lines from both these countries indicate, on the one hand, a temporary equilibrium or truce in the Indo-China power rivalry over Sri Lanka and, on the other, a foreign policy course correction by the Gotabaya Rajapaksa government.

It was not for nothing that President Rajapaksa in his policy statement on Tuesday included a short paragraph with a geopolitical undertone. It said: “We are a free sovereign nation. We have no need to intervene in conflicts among powerful nations. While we respect our neighbours, we wish to pursue a policy of friendship with all States.”

Such a declaration of neutrality was also found in the President’s inauguration speech in November 2019. But in practice there had been an apparent tilt towards Beijing in the government’s policy, much to the chagrin of New Delhi until the pandemic and the fast depleting foreign currency reserves brought upon the realization that it would be in Sri Lanka’s interest to always maintain foreign policy neutrality vis-à-vis the regional power conflict between India and China.

The apparent course correction is bringing in some early returns, with India and China coming forward to help Sri Lanka to tide over what could be its worst economic crisis in its 74-year post-independence existence. However, to think that such assistance is not conditions-attached is political naivety. Beijing’s assistance, especially in the afterglow of its foreign minister’s visit to Sri Lanka and similar help from New Delhi after Sri Lanka’s finance minister’s political angioplasty in the artery to the heart of India give the impression that the two Asian powers have decided to put up with Sri Lanka’s fresh equidistant policy assurance.

In the horn of Africa, strategically placed port nation of Djibouti has gone to the extreme with its equidistant foreign policy. The country of one million people with a US$ 3billion GDP, which is equivalent to China’s GDP for two hours, has allowed China’s People’s Liberation Army to set up its first overseas military base—and that, too, just 10 kilometres away from a US military base. The country also houses French, German, British, Italian, Spanish Saudi Arabian military facilities. Russia and India are also seeking a military presence in the country that overlooks one of the world’s busiest sea lanes — the Bab al Mandeb chokepoint that connects Red Sea with the Gulf of Aden.

Sri Lanka need not and, we hope, will not go to the extent of emulating Djibouti to swell its foreign reserves. The country’s equidistant big-power policy should remain demilitarised without ambiguity. This is a difficult task for the government, given the big powers’ ability to turn their demilitarised presence into militarised presence if the need arises. Greece, for instance, despite being a Nato member, is compelled to permit visits by China’s naval vessels to its ports developed with Chinese financial assistance.

Unlike the Cold War conflict which saw rival powers not only severing diplomatic ties but also economic ties, the present day subterranean cold war, which is also referred to as hybrid warfare, allows trade relations between hostile powers to flourish even as military hostilities escalate amid mutual suspicion, sabotage of rival nation’s geostrategic projects and influence buying with neighbours.

A textbook case of this hybrid warfare is Sino-India relations. While the COVID pandemic was raging across the world in mid-2020 and India was struggling to cope with it, Chinese troops crossed the Line of Actual Control and captured 1000 square kilometers in eastern Ladakh. About 20 Indian soldiers died in the unexpected attack. In the northern most Indian state of Sikkim, a tense situation arose following Chinese military incursions in January and May last year. While Beijng was testing India’s resolve to take on China militarily, the two countries are also focused on undermining each other’s geostrategic footholds in neighbouring nations. This was while trade between India and China reached a record $125 billion in 2021.
Perhaps with the exception of Pakistan, every South Asian nation has caught up in the Sino-India hybrid war. Take for instance, the case of the Maldives.

China’s foreign minister Wang Yi, ahead of his recent visit to Colombo, was in the Maldives, a country which under President Ibrahim Solih, has embraced an India-first policy to amend relations that remained strained during the presidency of pro-China Abdulla Yameen. But of late, President Solih has been seen adopting an equidistant foreign policy vis-à-vis China and India. Last year, the capital, Male, also saw a series of public protests against India’s alleged military presence in the archipelago. The government said the protests were the handiwork of Yameen supporters, who deliberately misinterpreted the positioning of a few emergency-response Indian helicopters in a Maldivian atoll as unsolicited Indian military presence. However, in small countries like Sri Lanka, the Maldives and Nepal, it is strongly suspected that rival big powers play a behind-the-scenes role in instigating public protests and getting involved in regime change ops.

Writing for the Indo-Pacific Defence Forum magazine, Sarosh Bana, executive editor of Business India, says India must continue to counter China’s attempts to buy influence with its neighbours.

In addition to offering neighbours economic and military alternatives to China’s One-Belt-One-Road enticements, India should look to the Quad, he said, adding that together, the Quad nations – India, the United States, Japan and Australia — could create an infrastructure fund that provides financially sustainable alternatives to China’s debt-trap projects for India’s neighbours.

But China rejects allegations that it is setting debt traps for developing nations with predatory loans often extended to financially unsustainable infrastructure projects with the intention of taking over the facilities after defaults on repayments.

China also vehemently rejects recent reports that it is planning to take over the Entebbe airport after the Ugandan government had defaulted repayments of the loan it obtained from China’s Exim Bank. But the Wall Street Journal which first published the story and Ugandan opposition figures say the terms of the takeover are in the fine print of the US$200 million agreement, which was not revealed to the public by the Ugandan government.

Whether the allegations are credible or not, loan-obtaining small countries should be mindful that there is always a hidden price attached even in free aid, for there is no free lunch in international politics. Whether this price is worth paying for is a matter to be prudently assessed by policy makers and advisers.

Sri Lanka should be prudent enough to balance its short-term and long-term national interest with the national interest of those big powers which seek to increase their strategic foothold in Sri Lanka by offering assistance Sri Lanka desperately needs.

The Begging Bowl Sri Lanka’s Dependency Syndrome

The sheer dearth of dollars to pay off debts, buy oil and the poor performance in the export sector together with slackness in the traditional exports like tea, rubber and coconut are contributing to aggravate the economic crisis and monetary management

As a country and a nation, we are becoming the scum of Asia, not its miracle as some bellowed from roof-tops and election platforms sometime back, as well as a country at loggerheads with itself with an array of problems and issues still at bay in need of effective solutions that are urgent. The debt-ridden wound has certainly festered through the decades of the post-independence Sri Lanka and appears to get worse as our foreign reserves dwindle, exports crumble, imports in high demand and national assets sacrificed to distant dreams, the success of which time only can tell after generations would have passed through economic insecurity and social unrest with nationhood in disarray and sovereignty at a terribly risky edge.

We are against the wall as far as the national economy is concerned. There is an acute disagreement among the theories and opinions expressed regarding the most effective way out of a mess that is the sheer result of contentious politics and pitifully sad economic planning by the so-called pundits who are vociferously coming into defending their much short-sighted positions and viewpoints. Some claim that we on our own can man this moment and contain the crisis while others ardently plead for currency swaps, assistance from neighbouring countries or take refuge in a desperate appeal to the IMF. The top-notch from the BOC expresses great concern and anxiety over the adverse effects that the country would have inevitably to face, if recourse is had to assistance from the IMF taking into consideration the conditions that have to be submitted to. Among them a few disturbing elements have been mentioned: the risk of having to pay 20% more for oil purchases, having to privatize the BOC, freeze public salaries and prune the public service, diversify the government pension scheme, privatize all SOEs and many more adverse demands. Defence is placed on the fact of foreign reserves being on the increase to over US $ 3 billion which will assist in tackling this year’s debt servicing. Many seem to have put to the oblivion the bitter truth that the same foreign reserves had plummeted from US $ 8 billion two years ago to just US $ 1 billion in December 2021. We are stuck with having to contend with an annual import bill of US $ 18 billion while exports stagger around only US $ 11 billion. This is an incredibly paradoxical situation.

The recent fertilizer crisis upset the apple cart for our poor farmers who daily began to revolt and take to the streets to bemoan their predicament with their cultivation efforts threatened by the sudden change of fertilizer policy. They even threatened to halt cultivation. Rice and vegetables were in great want and the prices began sky-rocketing. It is a shame that with such rich soil in the country, this once granary of the East along the silk-route is being put under pressure to import these food items from neighbouring countries. It is a disgrace to our forefathers and valiant ancestors of old who bequeathed to us this rich rice-culture. The question is seriously posed as to who is responsible for this mafia that is inducing hunger in the country. Who are the king-pins behind this catastrophe who have cashed in their commissions in millions at the expense of bringing untold suffering and anxiety to the farmers who have to toil so hard to get a fair price for their produce? If as is assured that foreign reserves have arisen why is the release of dollars not possible. There are unfortunate reports of so many containers lying stuck in the harbour with medicines and food-stuffs waiting to be released. Apparently, the lack of dollars is causing delay in this matter. Complaints are umpteen that there are some ministers who are utterly incompetent, inefficient and making wrong decisions that is causing lot of harm in the smooth running of the government. There is a popular cry that they be relieved of their responsibilities and competent men appointed for their seats instead. There is as the President recently and sadly observed a lack of confidence in the way things are being run by the government. The pandemic debacle is no panacea excuse for the downturn in many of the spheres of national life like international trade, agriculture and dwindling of exports. The sudden change of policy that overturned the fertilizer issue which some expert remarked had been done with ill advice as well, without a phasing out of this change, had been the root cause of crisis in the rice and vegetable shortage that soared its price to a sky-rocketing level ill affordable to the general public. The mishandling of the gas question created havoc in the kitchens. Some had even switched on to kerosene which also began to be in short supply as the queues demonstrated and worse with some taking recourse in firewood particularly in the interior and distant villages. The sad spectacle of long lines of utterly desperate crowds queuing up for gas and kerosene as well as the frantic chase to the marketing centres for food-stuffs ignited in many, loud cries of criticism, frustration, sheer anger, displeasure and despair.

Whether the country succeed in creating a programme of its own without recourse to foreign aid to tide over the financial crisis at hand is the million-dollar question anxiously raised by many a knowledgeable economist. On the other hand, the state of national politics is in utter confusion with many politicians calling on all parties, whatever their hue, to come together to find a way out of the present morass. All pledges on which the last elections, presidential and parliamentary were fought have not yielded tangible results that affect particularly the rural population. The cries of the farmer, the small-business holder and the daily wage earner are being heard loud and clear in the ears of the government. Unfortunately, difficult and unpleasant decisions may have to be taken but not at the cost of hurting people’s basic needs for food and health care. There seems to be a multi-faceted mafia intruding into the field of drugs and medicines as well in addition to the inability to clear the cargo containers that lie stagnant in the harbour. It is paradoxical indeed that the parliament has been prorogued while burning issues are affecting the country with the concurrent sense of insecurity, hopelessness and anxiety crippling the general public. Excuses and apologies are not the way out to respond to these clamors of the people. The national situation is really bad and viable means taken to tide over the mounting plethora of crisis are be sought with a compelling sense of urgency. This is the hour to act swiftly lest the whole country caves into misery, inflation and bankruptcy.
The story of the national debt that kept on accumulating in all directions with the need to run to international funding agencies such as the IMF and World Bank has now taken the country to another disastrous and highly questionable road of dealing with national assets like the harbours, cities, airports and oil tanks. The sheer dearth of dollars to pay off debts, buy oil and the poor performance in the export sector together with slackness in the traditional exports like tea, rubber and coconut are contributing to aggravate the economic crisis and monetary management. Urgent steps have to be taken to consolidate the tourist, apparel and textile industries. State expenditure has to be cut down to a minimum. It is imperative that many unnecessary functions have to be cancelled. Austerity must be shown in the life of those in government with humble readiness to make sacrifices on behalf of the people thanks to whom they are in seats of power. Bribery and corruption, waste and embecillment of funds have no place in a decently managed economy. The root cause of the present serious crisis has to be placed squarely with a government that is not handling national issues in a proper manner. Those at the helm seem inadequately prepared to come up with viable solutions. Alternatives seem very meagre and not forthcoming. The government is clearly bereft of alternatives. Blaming the opposition for criticizing the government and not offering any alternative implicitly shows that those in power are bereft of solutions and are completely lost in the situation which they as a government are morally obliged to face and take head on as quickly as possible without further delay.

Honest and sincere statesmen-like politicians do not pursue power at any cost, including the duping and the drugging of the masses making thereby elections the opium of the people, whilst hiding the truth about matters that are still highly controversial and contentious. Instead, using their people-given authority to rule in justice and fairness they must seriously have short and long-term plans for the economic stability, national integration and ethnic harmony, taking good care never to exploit religion, race, ethnicity and language to their own selfish and introverted advantage, ensuring equal treatment to all and in particular see to the immense sufferings and hardships of those who are poor and indigent. Then only can we see an about-turn of the country towards a better and permanently prosperous era. Bad politics and inefficient administration can never ensure stability in the economy. It is time that we empower ourselves to jettison the begging bowl and enter a culture of self-sufficiency and self-respect as a nation. The Taprobane must stay stable and strong: this island-paradise gracing the vast Indian ocean.