Letter from Tamil politicos to Modi on 13A today

A letter by seven political parties representing the Tamil-speaking people in the North and the East (N-E), to Indian Prime Minister Narendra Modi, requesting that the Indian Government urge the Government of Sri Lanka (GoSL) to fully implement the 13th Amendment (13A) to the Constitution, will most likely be sent today (11).

“The letter, signed by seven of the Tamil political parties, will most likely be sent to Modi today (11). Our main requests are that the 13th Amendment to the Constitution be fully implemented, and that the Provincial Council (PC) Elections be held,” Thamil Makkal Thesiya Kuttani (TMTK) Leader and Parliamentarian C.V. Wigneswaran told The Morning yesterday (10).

The letter, as seen by The Morning, notes that: “Since Sri Lanka gained independence in 1948, the Tamil-speaking people have been demanding meaningful power sharing from all the successive governments that came to power. The political leadership of the Tamil-speaking people wanted a solution in accordance with internationally accepted principles recognising their legitimate aspirations. Although many attempts were made to find a solution internally as well as with the assistance of the international community, the Tamil-speaking people’s national question remains unresolved to date. We remain committed to a political solution based on a federal structure that recognises our legitimate aspirations.

“The Tamil-speaking people have always been the majority in the North and East. The Indian Government offered its good offices in 1983, which was accepted by the GoSL and consequently the Indo-Lanka Accord was signed on 29 July 1987. Thereafter, the 13th Amendment to the Constitution was introduced, establishing a PC system that envisaged the devolution of powers to the provinces. But the Amendment was introduced into a unitary Constitution making the exercise one of decentralisation instead of devolution. It is against this backdrop that every effort made thereafter moved in the direction of surpassing the 13th Amendment to the Constitution towards a federal structure.”

In addition to the 13th Amendment to the Constitution, the letter has also highlighted that the 16th Amendment to the Constitution, pertaining to language rights, be implemented in “word and spirit”. Commenting on alleged land grabbing taking place in the North and East, the letter requested that “all attempts to systematically change the demographic pattern of the North and the East, acting contrary to the provisions and spirit of the Bandaranaike-Chelvanayakam Pact (1957), the Dudley-Chelvanayakam Pact (1965), and the Indo-Lanka Accord (1987) should stop forthwith”.

“All activities and attempts by the Archaeology Department, the Mahaweli Authority, the Forest Department, the Wildlife Conservation Department, the Tourist Board, and the Defence Ministry to destroy and pervert evidences that confirm the historical habitation of the North and the East as the traditional homelands of the Tamils must immediately cease. The Archaeology Department must recognise the antiquity of the Tamils from pre-Buddhistic times, accept that it was the Tamils who received Buddhism (Tamil Buddhists) into Sri Lanka, and act accordingly instead of perverting history and prevaricating on history. Tamil villages in the border areas between the Northern and Eastern Provinces are altered by either attaching them to Sinhala areas or bringing Sinhala villages into Tamil areas, thereby altering the ethnic composition to make Tamils minorities in their own areas. This will prevent Tamil people from obtaining political representation in the local government, PCs, and the Parliament. Such pernicious practices must be discontinued,” the letter mentions.

The party leaders have also requested that Sri Lankan Tamil people of Indian origin be given full citizenship, and that the Prevention of Terrorism (Temporary Provisions) Act No. 48 of 1979 (PTA) be immediately repealed. They have further requested that the “proportional representation (PR)” electoral system be implemented in the country and that the newly appointed “One Country, One Law” Presidential Task Force (PTF) be dissolved.

The letter has been signed by Wigneswaran, Tamil National Alliance (TNA) Leader and MP R. Sampanthan, Illankai Tamil Arasu Kachchi (ITAK) Leader Mavai Senathirajah, Tamil Eelam Liberation Organisation (TELO) Leader A. Adaikalanathan, Democratic People’s Liberation Front (DPLF) President Dharmalingam Sithadthan, Eelam People’s Revolutionary Liberation Front (EPRLF) President K. Premachandran, and Tamil National Party (TNP) Leader N. Srikantha.

The discussions relating to the aforementioned letter initially involved the Tamil Progressive Alliance (TPA) (representing mostly Tamils of Indian origin in the upcountry areas), the All Ceylon Makkal Congress (ACMC), and the Sri Lanka Muslim Congress (SLMC). However, Wigneswaran said that these three parties had decided not to sign the letter as the “problems of the Tamils from the North and the East are different to those of the upcountry Tamils and the Tamil speaking Muslims”.

He claimed that whilst the TPA had feared that the Sinhala-speaking population in the upcountry areas may get “upset” over the letter’s push for federalism, the two parties representing the Muslim population had been concerned over discussions to merge the North and the East which could potentially affect their electoral representation.

Speaking to The Morning yesterday, TPA Leader and MP Mano Ganesan said that whilst the TPA still extends their support to the other parties representing the Tamil-speaking people, and joins the call for the implementation of the 13th Amendment to the Constitution and holding the PC Elections, the TPA has “other concerns”. “The discussion process began with the idea of requesting the Indian Government to assist in the GoSL implementing the 13th Amendment to the Constitution and the conduct of the PC Elections. However, other elements were brought into the drafted letter which was initially supposed to be only one-and-a-half pages long (the final letter stands at eight pages). The TPA and the parties representing the Muslim population are compiling a separate letter,” he added.

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Gazette issued extending terms of Local Government Institutions

A Gazette notification has been issued extending the tenures of Municipal Councils, Urban Councils and Pradeshiya Sabhas until March 19, 2023.

The Gazette has been issued today (10) by the Minister of Public Services, Provincial Councils & Local Government Janaka Bandara Thennakoon exercising the powers vested in him by the Municipal Council Ordinance, Urban Council Ordinance and Pradeshiya Sabha Act.

Accordingly, the term of each member of all 24 Municipal Councils, 41 Urban Council and 275 Pradeshiya Sabhas have been extended until March 19, 2023.

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Chinese envoy wants defence cooperation with Sri Lanka to keep region stable, prosperous

Both Sri Lanka and China should do more in defence cooperation that would serve the stability and prosperity of the Indian Ocean region, Chinese Ambassador to Sri Lanka Qi Zhenhong said on Sunday (09) following an official visit by China’s foreign minister.

Zhenhong’s statement came soon after Chinese State Councilor and Foreign Minister Wang Yi left the island nation after a two-day visit that saw the signing of four memoranda of understanding between the two countries, excluding any defence pact.

“Defence progression and exchanges is a very important part in bilateral relations,” Zhenhong told a group of journalists late on Sunday.

“I think we (China and Sri Lanka) should and could do more in this field.”

“I believe cooperation in this field, we not only serve the common interests of China and Sri Lanka on sovereignty, security, and stability, but also you will have this region to keep stability and prosperity (sp).”

The statement is likely to make the regional power India nervous along with the United States which has been monitoring China’s activities in the Indian Ocean under Beijing’s One Belt One Road initiative, defence analysts say.

Already India has raised concerns over China’s increasing presence in its backyard of Sri Lanka.

Sri Lanka has already handed over the 1.4 billion US dollar Chinese funded and built Hambantota port in the deep south of the island as a part of a debt-to-equity deal in 2018. China is eying a 15,000-acre investment zone around the port.

China has also reclaimed a 269-acre land next to Sri Lanka’s main Colombo port where a state-owned Chinese firm is building the Port City. It has already invested 1.5 billion US dollars in the project.

India accounts for over 70 percent of the transhipment at the Colombo port where China also has a terminal on a 25-year lease basis. To counterbalance Chinese presence, President Gotabaya Rajapaksa’s administration has given a majority stake at the West Container Terminal (WCT) to India’s Adani group, a privately owned firm, for a 850 million dollar investment.

Sri Lanka is in the process of canceling power system installation projects in three islands off Sri Lanka’s northern city of Jaffna within 50 km from South Indian coast, which prompted China to say the move was due to “security concern of a third party”.

Defence analysts say Beijing’s activities in the South China Sea have been cited by countries that are raising concerns over increasing Chinese presence in Sri Lanka.

Officials from the current ruling Sri Lanka Podujana Peremuna (SLPP) have told the EconomyNext in the past that indirect backing of India and the United States helped oust the previous government of then President Mahinda Rajapaksa in 2015 after Sri Lanka gave permission to Chinese nuclear submarines to enter Colombo port premises in October 2014.

Officially both India and the US have denied their involvement in toppling Rajapaksa’s previous government.

China has said all its projects in Sri Lanka are commercial in nature and has denied any military involvement.

FNO calls for full and thorough probe into Trinco Oil Tank Farm deal with India

The Federation of National Organisations has asked President Gotabaya Rajapaksa to put an immediate halt to the ongoing process of entering into an agreement with India, purportedly to develop the Trincomalee Oil Tank Farm. It has called for a thorough investigation into the questionable deal.

A letter signed by FNO Convener Dr. Gunadasa Amarasekera addressed to the President says the then government of Ceylon took possession of 99 tanks at the farm paying Sterling Pounds 250,000 to the British Navy in 1964. That government did so, taking the national interests into serious consideration. The so-called agreement process contained serious technical flaws. Agreements made without following due process are null and void before the law. Therefore, the President should immediately stop this process and make a full revision of it. Any decision taken otherwise owing to the pressures of public protests or court decisions will pave the way for serious repercussions which would be detrimental to the image and sustenance of the government and Indo-Sri Lanka relations.

The FNO says that the government instead should pay attention to make a policy decision to ensure energy security of the country by retaining its hold on bunkering.

Informed public opinion in this country today is that the process of handing over 99 tanks to the LIOC is questionable. People do not trust this agreement and there will be public protests, the letter has said.

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Crisis-hit Sri Lanka asks China to restructure its debt

The president of crisis-hit Sri Lanka has asked China to restructure its debt repayments as part of efforts to help the South Asian country navigate its worsening financial situation.

Gotabaya Rajapaksa made the request during a meeting with Chinese foreign minister Wang Yi on Sunday.

In the last decade China has lent Sri Lanka over $5bn (£3.7bn) for projects including roads, an airport and ports.

But critics say the money was used for unnecessary schemes with low returns.

“The president pointed out that it would be a great relief to the country if attention could be paid on restructuring the debt repayments as a solution to the economic crisis that has arisen in the face of the Covid-19 pandemic,” Mr Rajapaksa’s office said.

The statement also said China was asked to provide “concessional” terms for its exports to Sri Lanka, which amounted to around $3.5bn last year, without providing further details.

Mr Rajapaksa also offered to allow Chinese tourists to return to Sri Lanka provided they adhere to strict coronavirus regulations.

Before the pandemic, China was one of Sri Lanka’s main sources of tourists. And it imports more goods from China than from any other country.

In recent months, Sri Lanka has been experiencing a severe debt and foreign exchange crisis, which has been made worse by the loss of tourist income during the pandemic.

China is Sri Lanka’s fourth biggest lender, behind international financial markets, the Asian Development Bank and Japan.

The country has received billions of dollars of soft loans from China but the island nation has been engulfed in a foreign exchange crisis which some analysts have said has pushed it to the verge of default.

Sri Lanka has to repay about $4.5bn in debt this year starting with a $500m international sovereign bond, which matures on 18 January.

The country’s central bank has repeatedly assured investors that all of its debt repayments will be met and said funds for this month’s bond repayment has already been allocated.

Sri Lanka is a key part of China’s Belt and Road Initiative, a long-term plan to fund and build infrastructure linking China to the rest of the world.

However, some countries, including the US, have labelled the project a “debt trap” for smaller and poorer nations.

Beijing has always rejected those accusations, and in response has accused some in the West of promoting this narrative to tarnish its image.

Is China luring poorer countries into debt?

Last month a Sri Lankan government minister said the country planned to settle a debt for past oil imports from Iran by paying it off in tea.

It plans to send $5m worth of tea to Iran each month to clear a $251m debt.

In September, Sri Lanka declared an economic emergency, after a steep fall in the value of its currency, the rupee, caused a spike in food prices.

Authorities said they would take control of the supply of basic food items, including rice and sugar, and set prices in an attempt to control rising inflation.

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HRCSL asks IGP to inform about PTA arrests within 48 hours

The Human Rights Commission of Sri Lanka (HRCSL) has written to Inspector General of Police (IGP) C.D. Wickramaratne last week, requesting that the Police inform the HRCSL about an individual who is arrested or detained under the Prevention of Terrorism Act (PTA) within 48 hours to the HRCSL.

In the letter addressed to IGP Wickramaratne, HRCSL Chairperson Supreme Court Judge (Retd.) Justice Rohini Perera Marasinghe had pointed out that this request is made within the powers mandated to the HRCSL under Section 28 of the HRCSL Act No. 28 of 1996 (duty to inform Commission of arrest and power of Commission to inspect to obtain information).

She had further pointed out a number of steps that the Police must take with regard to those who are arrested under the PTA, including informing the HRCSL of their release or transfer. She had claimed that this information was not duly received by the HRCSL, and had requested IGP Wickramaratne to inform police officers of this requirement.

Moreover, the HRCSL has requested that a monthly list of those who are arrested under the PTA, released or transferred be sent to the HRCSL from all police stations, for better monitoring by the Commission.

On 29 December, Marasinghe, along with the other commissioners, met the heads of the Criminal Investigation Department (CID), Terrorism Investigation Division (TID), and the Police Legal Division, where detainees currently being held under the PTA had been discussed.

Calls to repeal the PTA grew last year, both locally and internationally, with UN High Commissioner for Human Rights Michelle Bachelet emphasising the need for its repeal in her oral update about Sri Lanka earlier last year.

The European Parliament, earlier last year, called on the Government of Sri Lanka to repeal the PTA and the European Commission to consider the temporary withdrawal of the Generalised Scheme of Preferences Plus (GSP+) trade concession from Sri Lanka if it is not done. The GSP+ Monitoring Mission for the Third Cycle visited Sri Lanka during the months of September and October, meeting civil society members, politicians, and other stakeholders about a number of issues including the PTA.

The Morning reported at the time that the Ministry of Justice, in its discussions with the European Union (EU) delegation, had assured them that necessary amendments will be made to the PTA within the next six months. The 24th Session of the EU-Sri Lanka Joint Commission in the first quarter of 2022 will witness the review of all aspects of bilateral co-operation.

Last year, President Gotabaya Rajapaksa also appointed a three-member Advisory Board under Section 13 of the PTA, to make recommendations on actions to be taken on detainees and remand prisoners held under the PTA.

The first draft of the renewed PTA report was presented to President Rajapaksa on 15 November by Committee Chairman and Defence Secretary Gen. (Retd.) Kamal Gunaratne.

Ten Tamils who were arrested by the Sri Lanka Police on 18 May under the provisions of the PTA were released on bail on 8 December by the Valaichchenai District Magistrate’s Court. According to the Journalists for Democracy in Sri Lanka (JDS), the party had been arrested for lighting a flame of remembrance for war victims at Kiran beach in Kalkudah, Batticaloa. It was reported that these individuals were held under the PTA for a period of seven months.

Will the SLFP remain or leave the government?

Nobody will make the decision for the Sri Lanka Freedom Party (SLFP) to leave the Government, and it will be a decision taken after discussions between the SLFP and the President himself, says the Deputy Chairman of the SLFP, Mahinda Amaraweera.

Speaking to media on Monday (10), SLPP and SLFP members expressed opinions on whether or not the Government would lose its 2/3rd majority as a result of its own factions criticizing the Government.

Citing the reports of the former President himself criticizing the Government, the State Minister of Transport, Dilum Amunugama stated that it is not an issue for the Government, and the assistance of the SLFP is not necessary for a party that was able to elect the President and the Prime Minister.

Speaking further, the State Minister reminded that the SLPP is a party that rules with an additional one seat at the Parliament and that they do not need a 2/3rds majority to govern.

“Mark my word, just because they are part of the 2/3rds majority we cannot be patient every time, they will finally leave us,” he added, speaking to media.

Meanwhile, the Deputy Chairman of the Sri Lanka Freedom Party (SLFP), Mahinda Amaraweera stated that the SLFP is not owned by anyone, and is a party that assisted in forming the Government,

“It was the President who we supported and formed a Government which obtained 2/3rds majority with our assistance,”

Furthermore, the SLFP Deputy Chairman stated that the party came and joined with the Government based on the request by President Gotabaya Rajapaksa.

“We don’t let anyone make a decision about us on joining or leaving the Government, it will be a decision that we will make,” he added.

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Chinese Ambassador asks SL Govt why talks halted on FTA

As Sri Lanka is facing an economic crisis mainly due to the Covid-19 pandemic, China has expressed its desire to resume the stalled Free Trade Agreement with Sri Lanka in order to boost exports, China’s Ambassador to Sri Lanka Qi Zhenhong said yesterday.

He said that visiting State Councillor and Foreign Minister Wang Yi held positive discussions with the Sri Lankan government leaders on the FTA.

“During the State Councillor’s visit this time, he himself and leaders of Sri Lanka’s government had a very good discussion on the Free Trade Agreement (FTA) as well as Comprehensive Economic and Technical Framework Corporation,” the ambassador told a group of newspaper editors last evening.

He also questioned why the Sri Lankan government halted talks with the Chinese government on the FTA. “Already we had six rounds. I would like to ask the Sri Lankan government why the talks were halted. I don’t know why,”the ambassador said.

Since 2017, during the last regime, ministerial level discussions were held on the possible FTA between two nations but halted reportedly due to some conditions in the proposed FTA. Ambassador Qi Zhenhong also said if Sri Lanka is able to have this FTA, it can export products to a market of 1.4 billion population in China.

The ambassador also said that when State Counsellor Wang Yi had discussions with the Sri Lankan leaders, he explained that “we should encourage exports and professionals to study the FTA discussions very soon.” “Wang said any questions or concerns on the FTA from the Sri Lanka side can be raised.we are open for that,”adding to that the ambassador said that “if one particular item is not good enough for Sri Lanka, you can ask more and we will do the study, as we have a flexible policy.”

SL and China ink RMB800 Mn agreement on economic & technical cooperation

The Governments of Sri Lanka and China signed several agreements today (09), including an Agreement on Economic and Technical Cooperation, which is an 800 million Yuan project financing facility.

Treasury Secretary SR. Attygalle signed from the Sri Lankan side and China International Development Cooperation Vice Chairman Zhang Maoyu represented China.

In addition, several more agreements were signed as well:

Letter of Exchange on the Project of Subsidized Housing for Low Income Category in Colombo
Handover Certificate of the Technical Cooperation Project for BMICH
Handover Certificate of the Technical Cooperation Project for the Kidney Disease Mobile Screening Ambulance Vehicles.
These developments come in the backdrop China’s State Councillor and Foreign Minister Wang Yi being present in the country on a two day official visit.

Lanka has no room for manoeuver says Pathfinder Foundation

The Colombo-based Pathfinder Foundations issued a statement on Sunday saying that Sri Lanka’s economic crisis is so severe that it has no room for maneuver and that it should go for debt restructuring and begin talks with the IMF.

Here is the statement in full:

The Government has spoken of both Rupee and Dollar shortages. The severity of these problems is reflected in the following startling data points.

On the lack of Rupees (or fiscal space) for the government, interest payments alone account for over 70% of revenue. This is possibly the highest in the world. In addition, salaries and pensions account for over 90% of revenue. So, interest and salaries/pensions together amount to over 160% of revenue. It is hardly surprising, therefore that the Central Bank’s net credit to government (money printing) amounts to Rs. 1.1 trillion as at November 2021. This vast amount of money printing inevitably fuels inflation; exerts pressure on the balance of payments by boosting imports; and undermines exchange rate stability.

As for the Dollar illiquidity, net foreign assets of the Central Bank recorded a deficit of $1.6 billion as at the end of November 2021. The net foreign assets of the total banking system amounted to a deficit of US$ 4.1 billion. This explains vividly the cause of the large scale scarring of the economy that is arising from the massive shortage of dollars. Turning this around will require radical action, including a debt restructuring and decisive measures to attract foreign inflows.

The consequences of these twin problems have already been severe. Inflation, particularly food inflation, has been rising sharply. There have been shortages in food items, including milk food; fuel; gas; and medicines. There is also a rampant black market in foreign exchange. Businesses have collapsed and livelihoods have been lost.

The Pathfinder Foundation in its previous articles has urged that immediate priority be given to: (1) restructuring external debt; (2) negotiating an arrangement with the IMF; and (3) mobilizing bridging finance to meet the external financing gap in the next six months.

A debt re-structuring will provide breathing space to stabilize the economy. An IMF arrangement can catalyze much needed foreign exchange both directly from multilateral institutions and some bilateral donors; and indirectly by increasing confidence among investors and creditors. The bridging finance is necessary to fund essential imports and meet immediate obligations until the negotiations on the debt re-structuring and the IMF programme are completed.

The package of relief from India that is now expected is an encouraging beginning in terms of a bridging arrangement. However, it will only buy a couple of months’ time. This positive initiative needs to be supplemented by negotiating support from other friendly countries, including Japan, to obtain bridging finance that would be required during the time it takes to negotiate a debt restructuring and an IMF programme (about six months).

Action on all three fronts identified above needs to be initiated immediately to stem the ever deepening crisis and support sustainable recovery.

This is A Pathfinder Perspective issued by the Pathfinder Foundation can view on https://pathfinderfoundation.org/ Readers’ comments via email to pm@pathfinderfoundation.org are welcome.