Sri Lankan families go hungry as cost of food skyrockets

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.

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Will centralizing Modi support Lankan Tamils’ demand for federalism?

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.

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

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

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.

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Egg attack on Anura politically motivated: JVP

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.

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TPA wants PTA out

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

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.

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

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

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.”

Govt.-people trust deficit widens; SLPP’s coalition partners prepare papers to offer solution to crisis

When a country reels from a severe crisis, its people rely on their Government to come together, present a unified front and lay out clear strategies on how it intends to overcome it. Most of all, the people expect their Government to be honest with them regarding the seriousness of the crisis.

In Sri Lanka, where the country has been beset by a multitude of crises, none of these things is happening. The Government has been plagued by disunity and open confrontation between various coalition partners. Its leaders express views that are completely opposite of each other and consequently, the people are none the wiser as to what’s going on.

The fact that a majority of the people have lost trust in the Government has been plain for some months and Government leaders have only themselves to blame. Their messaging has often been convoluted at the best of times. There have also been occasions where some Ministers and MPs have peddled complete falsehoods.

The results are reflected in the way that the people have been reluctant to accept the Government’s claims over various issues in recent months. Motorists have rushed to filling stations to fill up their tanks over rumours of fuel shortages, ignoring numerous assurances from the Government that there is no such shortage. Many people continue to be wary about using LP gas cylinders despite claims that the cylinders now being issued to the market are safe. Even the widespread hesitancy among the public to obtain a third COVID vaccine dose as a “booster” can partly be blamed on the trust deficit between the Government and the people. The Government has been unable to counter a wide array of misinformation being peddled on social media by various anti-vaxxer elements because most of the people are prepared to believe online falsehoods and rumours spread by word-of-mouth than statements made by Government politicians and officials.

One need not look further than the previous Yahapalana Government regarding how much self-inflicted damage can be caused by different people expressing differing viewpoints. During the Yahapalana years, one Minister would make a statement only for the then Co-Cabinet Spokesperson Rajitha Senaratne to say something that completely contradicted it. The then minister Senaratne also had a penchant for going off script during post-Cabinet media briefings, leaving journalists confused as to whether he was expressing Government policy or his personal opinion.

The Sri Lanka Podujana Peramuna (SLPP)-led Government has fared little better. The stormy relationship between the SLPP and its coalition partners has only worsened as the country’s economic crisis went from bad to worse. Some, on the other hand, do argue that it is a good thing that there are internal breaks on a Government that is being run by a family.

Coalition partners have been frustrated at the way the SLPP has given them the cold shoulder since the Government came to power. A meeting of the alliance — comprising the SLPP and its coalition partners and officially known as the Sri Lanka Nidahas Podujana Sandanaya (SLNPS) — has not been convened since the 2020 Parliamentary elections. The Sri Lanka Freedom Party (SLFP), in particular, has publicly accused the SLPP of reneging on the agreement the party signed with it in the run up to the Parliamentary elections. Opposition from coalition partners was one of the primary reasons that the Government was forced to backtrack on the tripartite agreement with India and Japan to develop the East Container Terminal (ECT) of Colombo Port. The same parties have also strongly come out against the proposed agreement on selling Government owned shares of the Yugadanavi power plant to US based New Fortress Energy.

Immediate solutions

Many of these same coalition parties are now planning to present a document containing a set of proposals detailing “immediate solutions” to the various pressing issues currently faced by the country. Some of these parties met last week for initial discussions on the issue. Leaders of these parties are due to meet again next week to finalise the document, at which point the parties will make it public by holding a news conference. Those involved in the discussions include Ministers Wimal Weerawansa, Vasudewa Nanayakkara and Udaya Gammanpila and MPs Athuraliye Rathana Thera, Weerasumana Weerasinghe and Gevindu Kumaratunga.

Though the crisis has reached critical levels, neither the Government nor the Opposition is discussing the situation in-depth, claimed DEW Gunasekara, the Communist Party’s former General Secretary, who, along with current General Secretary Dr. G. Weerasinghe, is also involved in the formulation of the document. “This crisis came about due to the Government’s wrong economic strategy and the COVID-19 pandemic. The Government claims it is only due to the COVID pandemic that the economy has crashed while the Samagi Jana Balawegaya (SJB) and the United National Party (UNP) insist that it is due to Government’s inefficiency. The Janatha Vimukthi Peramuna (JVP) cites corruption as the main issue. Yet, we have observed that no one is doing an in-depth analysis of the country’s debt crisis,” the veteran politician told the Sunday Times.

The matter has not been seriously discussed in Parliament while the President’s recent speech during his Statement of Government Policy also did not address the issue, Mr Gunasekara remarked. “This is wrong. The people have to be kept informed. Otherwise, they don’t know.”

The former Government Minister wondered why the Central Bank did not raise the alarm earlier over the way the country’s foreign reserves plunged from USD 7.1 billion when Gotabaya Rajapaksa took over as President to just USD 1.5 billion late last year.

In recent weeks, some prominent members of the Government have increasingly spoken out in favour of seeking a bailout from the International Monetary Fund (IMF) to prevent Sri Lanka from plunging into bankruptcy. Parties such as those of Mr Gunasekara, however, have staunchly opposed the neo-liberal policies of the pro-West IMF for many years and they are not about to back down now: “You can go to the IMF, but will that solve the crisis?”

As pressure mounts on the Government to explain to the people how it is going to solve the multiple crises and how soon, a beleaguered President was seen taking part in a religious programme organised by Sri Lanka Army on Thursday

The current situation all over the world was a “crisis of neoliberalism” and it was up to all parties to engage in a serious discussion on the best way to come out of it, he opined.

The Government continues to flood the market with rupees in desperation but has not been able to find dollars. The economy is sinking at an alarming rate. With around 70% of the country’s workforce informally employed, the concern is that if the situation continues to deteriorate, those depending on the informal economy will no longer be able to earn enough to support themselves and their families. This could drive people to revolt. No political leadership has been given to address the crisis, according to Mr Gunasekara. “You need to be honest with the people. When the country was facing an economic crisis, Dudley Senanayake admitted to the extent of the crisis and people tightened their belts. Parliament is the main forum where we can educate the public about the situation. When I was young, we would go there and listen to the speeches of the MPs to educate ourselves on matters such as the economy. Where are those speeches now?” the Communist Party stalwart asked.

Indeed, today’s Parliament has been reduced to little more than MPs hurling crude insults at each other. Many rarely stick to the topic that they are supposed to talk about. Some don’t say a word about the subject of the debate they are supposed to be speaking of. They clearly make no effort to learn about the subjects either, a fact reflected in the numbers of books borrowed by MPs last year. A House of 225 MPs borrowed just 330 books from Parliament’s extensive library reserved exclusively for MPs. Of these, 122 were fiction books while only 11 books on economics were borrowed — perhaps this is a reflection of what Mr Gunasekara says. Most MPs don’t really analyse the economic situation in-depth because they do not understand the extent of the crisis. Parliament has not been able to provide the educational qualifications of MPs even when asked. Little wonder then that the people constantly complain how they are sick of all 225 of their representatives in the House.

Mr Gunasekara claims he warned President Gotabaya Rajapaksa during the height of the COVID pandemic that he needed to do more to educate both the MPs and in turn the public about the country’s economic crisis. “He (the President) convened a meeting of Government party leaders to discuss the pandemic at which point, I told him that our health sector was more than capable of controlling the pandemic but appealed to him to organise a workshop to educate the MPs on the economic situation and also to keep the people informed. I told him then that if he did that, at least half the people who voted for him would stand by him. He merely smiled.”

SLFP’s proposals

While other coalition partners are trying to finalise a list of immediate solutions to the prevailing crisis, the SLFP is formulating its own set of proposals with the aid of a group of university lecturers and professionals that are working with the party. The document will include the party’s solutions to the major crises affecting the country, SLFP MP and Environment Minister Mahinda Amaraweera said. “The other coalition partners have not approached us so far over formulating such a document but we are also open to it. If they wish, we can all work from the document we are currently formulating on the matter.”

Formulating such proposals is one thing. Whether any of them are practical is another matter altogether. Moreover, it remains to be seen whether the SLPP will accept them.

For all the tensions between the SLPP and the SLFP, the latter remains a member of the Government. The question of whether the SLFP will leave the Government has hung in the air over the past several weeks due to the war of words that has been taking place between the two parties. The party has faced pressure from frustrated supporters to quit the Government and go its own way. Yet, when the SLFP’s Central Committee met last week, the subject of leaving the Government did not even come up for discussion.

While MPs of the two parties continue to take shots at each other, the SLFP seems to have resolved that leaving the Government at this juncture will be of no advantage to them. Instead, the party is moving ahead with discussions with smaller political parties with the aim of forming a broader alliance to contest elections separately from the SLPP. Opposition parties have always insisted that the SLFP was never serious about leaving the Government and it was simply a media circus designed to divert people’s attention from more pressing issues.

The Government coalition parties aren’t the only ones attempting to come up with “solutions” to the country’s problems. The SJB yesterday (29) unveiled its Samagi Govijana Prakashanaya (Farmers’ Proclamation) at a ceremony held in the vicinity of the historic Parakrama Samudraya in Polonnaruwa. The proclamation will detail the solutions the party proposes to help farmers recover from the tragedy that has befallen them due to the Government’s self-inflicted fertiliser crisis, said Kurunegala District MP Nalin Bandara, who is also National Organiser of the Samagi Govijana Balawegaya.

The proclamation will contain 17 main points. This includes a demand made by farmers and farmers’ organisations that the Government provide compensation up to Rs. 100,000 per acre for agricultural lands that suffered damage owing to the fertiliser crisis. The Cabinet this week approved a proposal to allocate Rs. 40 billion to provide compensation for farmers who have suffered losses to their crops owing to the fertiliser issue. In essence, taxpayers have been forced to pay for the Government’s ill-conceived overnight ban on agrochemicals, but as farmers point out, even Rs. 40 billion in taxpayer funds will not be enough to compensate them. Yet, the Government officially refuses to acknowledge its failure on the issue, preferring to blame officials, Opposition parties, the media and farmers themselves for the catastrophe.

Darker days are ahead

As farmers brace for street protests demanding more compensation for their losses, the country’s energy sector is also facing a herculean task due to the foreign exchange crisis. The Government is struggling to find foreign exchange needed for fuel imports. The country’s power grid has been hit by shortages over the past several weeks owing to lack of diesel and furnace oil for thermal power plants, which now supply the bulk of electricity, especially during peak demand times.

The Ceylon Electricity Board (CEB) has been mulling power cuts lasting up to 90 minutes due to the energy shortfall and has been seeking approval from power sector regulator Public Utilities Commission of Sri Lanka (PUCSL). After reviewing the situation on Thursday (27), the PUCSL ruled that power cuts were unnecessary till January 31. The regulator is due to review the situation tomorrow.

Even those within the Government advocate 90-minute power cuts now to stave off what they say will be cuts lasting up to three hours or more in a few weeks if the fuel situation does not improve. Energy Minister Udaya Gammanpila is the most notable among them. Addressing a media briefing on Thursday, he offered “advice” to the CEB to go for 90-minute power cuts now, warning that the Board might be compelled to impose three-hour power cuts in a few weeks if the situation could not be managed. The minister has been at odds with his Cabinet colleague, Power Minister Gamini Lokuge over the power crisis ever since the Ceylon Petroleum Corporation (CPC) under Mr. Gammanpila refused to provide fuel to the CEB under Mr. Lokuge until the latter paid for fuel supplies in dollars.

The Energy Minister’s comments are in line with the Ceylon Electricity Board Engineers’ Union (CEBEU), which has warned that the situation has reached a tipping point. Trade union action by the powerful union helped trigger changes to the topmost posts of the CEB this week, with Dr. D.C.R. Abeysekera appointed as the CEB’s new General Manager, putting an end to what the CEBEU has called the “illegal” appointment of Dr. Susantha Perera as Acting GM. CEB Chairman M.M.C. Ferdinando, who the union had called on earlier to resign due to his decision to appoint Dr Perera as Acting GM, also submitted his letter of resignation to President Gotabaya Rajapaksa this week. The chairman is to step down effective from February 1.

Yet, changes in personnel will not help alleviate the country’s power crisis, CEBEU President Saumya Kumarawadu said. “It is up to the Government to offer solutions to the crisis. There is no doubt, however, that we will be forced to go for extended power cuts if hydropower generation continues to fall,” he added.

With rain being so scarce in the catchment areas, the situation is not expected to improve anytime soon. Kumarawadu blamed the Yahapalana Government for the current mess, citing former President Maithripala Sirisena’s abrupt decision to cancel the 500 MegaWatt Sampur coal power plant. “That plant was due to be commissioned in 2020. Another 250 MegaWatt power plant was due to be commissioned at Kerawalapitiya last year but that wasn’t built either. The failure by the previous Government to build more power plants has led us to this situation.”

The CEBEU has also been criticised by some Government politicians, including Power Minister Lokuge. It has been noted that it is the CEBEU that has been announcing power cut schedules over the past few weeks instead of the Board itself — a highly questionable practice where a trade union seems to be making decisions independent of the CEB’s administration. The union is also facing accusations that it is part of the “mafia” that exists in the energy sector, with its members actively trying to sabotage renewable energy projects in favour of coal.

The CEBEU President, however, brushed these allegations aside. He claimed the union was compelled to make its own announcements regarding power cut schedules after the previous administration refused to publish power cut schedules that engineers had drafted. “Wouldn’t it be better to carry out power cuts to designated areas according to a pre-announced schedule rather than impose unscheduled power cuts to certain areas to try and balance the system? That’s why we announced the schedules when the administration refused.”

As things stand now, the Rajapaksa Government has set a target of increasing the country’s renewable energy mix to 70% by 2030. Mr. Kumarawadu would not be drawn into the practicality of the plans. “Our job as engineers is to come up with a Least Cost Long Term Power Generation Plan in line with Government policy. We are doing that. It is up to the Government to find the resources and the funds to implement that policy.”

Meanwhile, some Opposition politicians, energy experts and even some CEB officials are claiming that if the situation does not improve by March and the rains do not come, it could lead to a situation where the CEB would be forced to announce power supply times to the public. Accordingly, power might only be available for limited hours of the day. This nightmare scenario, if it does happen, will result in further retardation of an economy already in recession.