Was it part of continuing destabilisation project here?

 SPECIAL REPORT : Part 422

Published

  2022/06/8

The detained Aeroflot Airbus A 330-300 at the BIA

The Aeroflot affair:

Justice Ministry yesterday interdicted the court official while recommending to Chief Justice Jayantha Jayasuriya that action should be taken against the lawyer concern. The BASL is yet to comment on the issue at hand

By Shamindra Ferdinando

Aeroflot flight SU 289 was preparing to take off from the Bandaranaike International Airport (BIA), on June 02, when a fiscal officer, from the Commercial High Court of the Western Province, walked in around 12.15 pm, soon after the end of day’s proceedings. The official was accompanied by Attorney-at-Law Aruna de Silva, who appeared for the plaintiff, along with Avindra Rodrigo, PC. They were instructed by F.J. & G. de Saram, the leading law firm from the colonial times.

The fiscal officer delivered a copy of the order issued by High Court judge S.M.H.S.P. Sethunge. The recipient of the court order was Acting Head of Air Navigational Services N.C. Abeywardena. The BIA was ordered to detain the aircraft, pending a case filed by Ireland-based Celestial Aviation Trading 10 Ltd., against the Russian state-owned Public Joint Stock Company Aeroflot. According to Justice Minister Wijeyadasa Rajapaksa the fiscal officer and lawyer Aruna de Silva had no right to threaten Mr. Abeywardena, with contempt of Court proceedings, if he allowed the Aeroflot flight to take off as there was no court order against him.

Justice Minister Rajapakse, being a veteran lawyer and a former President of the Bar Association of Sri Lanka, did not entirely spare the High Court Judge responsible for the exparte order. He said judges should be more mindful when issuing such exparte orders.

At the time the court officer delivered the warning, 191 passengers and 13 crew of the Airbus A 330-300 were on board. They were asked to get off the plane. The Aeroflot drama transpired in the Commercial High Court of the Western Province on June 03. The airline’s regional manager, for India and Sri Lanka, Sergey Evgenievich, was present in court.

On the following day, Russia summoned Sri Lanka’s Ambassador in Moscow, Prof. Janitha Abeywickrena Liyanage, to the Foreign Ministry, where Sri Lanka’s action was condemned. Russia demanded Sri Lanka to resolve the issue at hand, soon, to avoid having a negative impact on the traditionally friendly bilateral relations. What Moscow said was that there would be serious repercussions.

Viyathmaga activist Liyanage received appointment as Sri Lanka’s Ambassador in Moscow last October. Married to Prof. Sudantha Liyanage, she served as Vice Chancellor of the Gampaha Wickramarachchi University of Indigenous Medicine, prior to her taking up Sri Lanka’s top diplomatic post in Russia.

There hadn’t been a previous instance of a Sri Lankan Ambassador in Moscow being summoned to their Foreign Ministry. The Aeroflot affair has caused irreparable damage to Sri Lanka-Russia ties at a time Colombo needs retain its perennial friends among the international community.

Perhaps the crux of the issue, at hand, is there hadn’t been an enjoining order issued in respect of the second defendant Acting Head of Air Navigational Services N.C. Abeywardena. After having heard submissions by both parties, the court reiterated, on June 03, that there hadn’t been an enjoining order issued in respect of the second defendant. The public Joint Stock Company Aeroflot is the first defendant.

The court was told how Aeroflot flight was detained in spite of an assurance given by Sri Lanka to Russia that Aeroflot could operate to and from Colombo without an issue. The Counsel for the first defendant raised the issue while highlighting the embarrassment caused to Russia.

On behalf of the government, the Foreign Ministry issued the following statement on June 04: The Ministry of Foreign Affairs wishes to state the following with reference to the Aeroflot passenger aircraft flight SU-289 which is currently at the Bandaranaike International Airport (BIA).

On 2 June 2022, the Commercial High Court of the Western Province issued an Enjoining Order on the Aeroflot flight restraining it from taking off from Bandaranaike International Airport. The case relates to a commercial dispute between the Plaintiff, Celestial Aviation Trading 10 Limited, an Irish Company, against the first Defendant the Public Joint Stock Company Aeroflot and the second Defendant, Mr. N. C Abeywardene/Acting Head of Air Navigation/Airport and Aviation Services of Sri Lanka (AASL), Katunayake.

The matter is still pending final determination of the Court. This matter is also under consultation through normal diplomatic channels.”

Obviously, the Foreign Ministry hasn’t perused the Court proceedings or at least inquired from relevant parties before issuing the media statement. Had the Foreign Ministry done so, the shocking manipulation of the Court proceedings to pressure the Acting Head of Air Navigation would have come to their notice. The question is whether some of our officials are just playing dumb having been part of a foreign conspiracy to embarrass Russia and to exacerbate the dire situation in the country, already beset with a myriad of problems.

The Chief Justice, the Justice Ministry and the Bar Association of Sri Lanka (BASL) should also inquire into the highly contentious issue.

Angry reactions

Close on the heels of Russia’s angry reaction, SLPP lawmaker Rear Admiral Sarath Weerasekera took up the issue at hand with President Gotabaya Rajapaksa. In a two-page letter, the former Public Security Minister pointed out that the fiscal officer’s action against the backdrop of High Court judge Sethunge’s declaration that he didn’t issue an enjoining order in respect of the government or the Airport and Aviation Services Ltd.

The Colombo District MP questioned the detention of the Aeroflot flight in spite of Sri Lanka’s written assurance to Russia that Aeroflot was free to operate to and from the BIA without hindrance. The former Navy Chief of Staff warned that Sri Lanka shouldn’t be surprised if Russia felt that the government guaranteed Aeroflot freedom to operate to and from the BIA to lure them.

Lawmaker Weerasekera challenged Prime Minister Ranil Wickremsinghe’s assertion that the issue was a matter between two private parties. How could that be when all know Aeroflot operated flights to the BIA on written assurance given by the government?

Rear Admiral Weerasekera reminded the President of the support provided by Russia during the war against the LTTE and the constant backing Sri Lanka received at the Geneva-based United Nations Human Rights Council (UNHRC). The war veteran said that even after the war, China and Russia always stood by Sri Lanka as Western powers pursued Sri Lanka on the human rights front as they were smarting over the defeating of the LTTE. The MP declared that unless remedial measures were taken the country would have to face the consequences.

Lawmaker Weerasekera told the writer that there should be a wider investigation to ascertain whether utterly disruptive and manipulative action taken against Aeroflot was meant to cause a rift between Sri Lanka and Russia in line with the overall destabilization plan here mounted by the West. Weerasekera pointed out how disruption of Aeroflot flights could deprive Sri Lanka of much needed foreign currency and Russia being a key market for our tea that, too, would be in jeopardy. Sri Lanka’s economy couldn’t take any more shocks, MP Weerasekera said, emphasizing the responsibility on the part of President Gotabaya Rajapaksa to reverse the destabilization project.

Amidst heavy pressure, Sri Lanka, on Monday (06) lifted the alleged restriction imposed on the Aeroflot flight. But, the matter should not end there. The government should investigate the Aeroflot affair. Many believe it was certainly not isolated but part of a well-orchestrated campaign.

Sri Lankan Airlines suspended flights to Moscow, on March 26 citing ‘operational restrictions that are outside of the airline’s control.’

“The restrictions are in the form of international financial and aircraft insurance limits which have been imposed on Russia due to the ongoing Russia-Ukraine war, and directly impact SriLankan Airlines’ flight operations to Russia,” the airline said in a statement.

The airline maintained two weekly flights between Colombo and Moscow before the cessation of operations.

In spite of continuing sanctions, Aeroflot, on April 08, resumed regular flights to Colombo. Until the June 02 incident, flights arrived here three times a week, on Wednesday, Friday and Saturday, while the flights back to Moscow were operated on Thursday, Saturday and Sunday. Aeroflot suspended all flights on April 08 following US and EU sanctions.

Wimal issues warning

Federation of National Organisation, comprising the Patriotic National Movement (Dr. Wasantha Bandara), Patriotic National Front (Attorney-at-Law Nuwan Bellanthudawa), People’s Responsibility Centre (Wasantha Alwis) and People’s Voice for Justice and Sovereignty (Attorney-at-Law Madhaumali Alwis), in a joint letter, dated June 04, has sought President Gotabaya Rajapaksa’s intervention.

The grouping has explained how various interested parties exploited the country and pursued strategies, detrimental to the Sri Lankan State. Dr. Wasantha Bandara told the writer the government seemed to have lost its bearings and was quite incapable of looking after Sri Lanka’s interests. Dr. Bandara said that the Aeroflot issue should be examined against the backdrop of Sri Lanka having entered into a controversial agreement with US-based New Fortress Energy last September. “Don’t forget the government finalized that deal at midnight. Our legal challenge failed to convince the Supreme Court.”

National Freedom Front (NFF) leader Wimal Weerawansa, who challenged the US energy deal in Court along with Vasudeva Nanayakkara and Udaya Gammanpila in spite them being members of the Cabinet at that time on Sunday (05) questioned the culpability of the executive, the legislature and the judiciary over the Aeroflot affair. The outspoken politician didn’t mince his words when he asserted the executive, then legislature and the judiciary were working together to transform the economic and political crisis to a human tragedy. MP Weerawansa declared that the government has allowed the situation to develop and those in authority were yet to take tangible measures to stabilize the economy.

At the onset of the briefing, MP Weerawansa said that the government was busy jeopardizing Sri Lanka’s relations with Russia after having antagonized China, two of Sri Lanka’s closest friends. The Aeroflot dispute is perhaps the worst during 65 years of diplomatic relations.

President of Sri Lankan Business and Professionals Society in Russian Federation, Jagath Chandrawansa, in a letter to President Gotabaya Rajapaksa, alleged that a deliberate attempt was being made to cause a rift with Russia. Chandrawansa alleged that the operation was meant to cause economic deterioration.

Chandrawansa, too, drew the President’s attention to the fiscal officers’ super-fast action and the government’s pathetic failure to thwart the clandestine project. Chandrawansa told the writer that Sri Lanka should be ashamed of the way the Aeroflot flight was handled after having requested the Russian national carrier to fly here.

Lawmaker Vasudeva Nanayakkara didn’t hesitate to speculate the possibility of the US being behind the Aeroflot affair. Declaring the incident at the BIA a conspiracy, the veteran politician alleged that the US wanted to deprive Sri Lanka an opportunity to procure crude oil from Russia at a much lower cost.

MEP Leader and Chief Government Whip Dinesh Gunawardena, too, declared that the Aeroflot issue should be addressed quickly. The Minister warned that remedial measures should be taken before the incident caused serious damage to bilateral relations and to the country’s economy through loss of vital tourist arrivals from Russia.

Former General Secretary of the Communist Party Dew Gunasekera has demanded an explanation from Premier Wickremesinghe over his alleged bid to downplay the incident. Gunasekera asserted that Sri Lanka was experiencing an extraordinary threat. The incident involving the Aeroflot flight underscored our vulnerability.

Russian backing for war effort

Russia and Ukraine were among the few countries that readily threw their weight behind Sri Lanka’s war effort. Sri Lanka acquired Soviet era Mi24 helicopter gunships from Ukraine and Mi-35 Hind copters from Russia. Mi-24 arrived in Sri Lanka in the first week of Nov 1995. Russian military personnel flew three gunships acquired on a wet lease from Colombo to Hingurakgoda air base. The Russians carried out actual combat operations beginning Nov 17, 1995. The Russians carried out missions along with the Air Force till February 1996. However, the Russians provided the required flying training till 2000. The Hingurakgoda headquartered famed No 09 squadron played a critical role in the overall war against the LTTE.

Sri Lanka sought superior helicopter capable of providing close air support against the backdrop of losing two Avros in April 1995 and one Pucara ground attack aircraft in July 1995. The LTTE changed the military environment with the introduction of heat-seeking missiles. Sri Lanka responded by deploying Mi-24s and subsequently Mi-35 capable of operating against missile attacks. As ground troops required close air support, the then government delayed ‘Operation Riviresa’ until the arrival of helicopter gunships. The deployment of Soviet gunships paved the way for the successful conclusion of ‘Operation Riviresa’ that brought the Jaffna peninsula under control by early 1996.

The celebrated No 09 attack helicopter squadron flew 222 combat missions during ‘Operation Jayasikurui’ conducted through May 1997 to Dec 1998. In addition to the three Mi 24 deployed in Nov 1995 and sent back to Ukraine for overhaul three years later, Sri Lanka during 1996-2001 period inducted 23 Mi 35 Hinds.

The No 09 attack squadron played a pivotal role during the successful Eelam War IV (Aug 2006 to May 2009). The LTTE never managed to neutralize the formidable No 09 attack squadron that quite clearly damaged their fighting capability.

In response to The Island queries, former Foreign Minister Rohitha Bogollagama said that he was quite perplexed at the way the government handled the issue, particularly the absence of an immediate initiative by the Ministry of Foreign Affairs to redress the colossal damage that has been caused to the bilateral relationship that existed at its best terms between the two friendly countries.

Bogollagama issued the following statement: “Russia has remained a steadfast friend of Sri Lanka during the post-independence era and shadowing us against many a hurdles we confronted during the time of countering terrorism in Sri Lanka.

In the post period of defeating terrorism, Russia helped us to navigate through the International pressure and the accusations that were directed at us, by certain influential members of the UN body. Our regular visits and the reciprocity that was extended by Russia at the Heads of State and the Foreign Ministers level on a throughout basis was a clear manifestation of the closeness between our two countries.

Having said that the Aeroflot services had resumed to Sri Lanka at the behest of Sri Lankan Authorities giving an explicit assurance that their Aircraft shall not be detained or seized in Sri Lanka. On this undertaking, Aeroflot has commenced their services bringing us the much needed tourists and the foreign exchange.

The very enjoining order been vacated on the 6th of June itself clearly demonstrates the very point that if the Court intervention was sought immediately and efficaciously on 3rd of June itself, the protracted delay and the embarrassment caused could have been well mitigated. It would have definitely given a message with clarity that we stand well by Moscow, though there are procedures one may entail like that of the Judicial Process.

Furthermore, we have not witnessed a direct engagement at the highest echelon of power as a mitigatory step for the blow that shattered our friendship

I am rather disappointed that the authorities have failed to look at the overall impact of the repercussions associated in the Aeroflot now withdrawing their services to Sri Lanka over this incident, thus denying our country the much needed tourists arrivals and a global connectivity that Russia was maintaining.

It must be noted that Russia, China, India and Japan commands both Universal influence and connectivity, being four giants in Asia.

As an Asian Country, when the West is turning against Russia we could have easily enhanced our traditional relationship, which opportunity was completely lost, due to the mishandling of a trivial private litigation.

I stand to disagree with Prime Minister Ranil Wickremesinghe stating that the Aeroflot case is not an issue between the two Countries, but a private legal issue. But unfortunately the fact that it is a state Aircraft of the Russian Government visiting Sri Lanka, at the explicit undertaking given by the Governmental Authorities in Sri Lanka has not been addressed and taken into account by the Hon Prime Minister in making this statement.

It is time, Sri Lanka assured our highest consideration and regret over this particular incident, by the Prime Minister to the Foreign Minister of Russia Sergey Lavrov, as a prudent means to restore the devastated bi-lateral Relations.

Thereby it is time to mature as a Country, to put “Sri Lanka First” and advance to become part of the Global Diplomacy as practiced by many countries, though small in size but mighty, in terms of one’s philosophy.”

Developing economic crisis:Truth unravelled before COPE

SPECIAL REPORT : Part 421

Published

  2022/06/1

(From Left): Chief Financial Officer, Finance Ministry B.K.R. Balasooriya, Finance Secretary K.M. Mahinda Siriwardana, CBSL Governor Dr. Nandalal Weerasinghe and Deputy CBSL Governor T.M.J.Y.P. Fernando

By Shamindra Ferdinando

A COPE (Committee on Public Enterprises) meeting on May 25, chaired by Prof. Charitha Herath (SLPP National List), revealed the devastating truth about the utterly irresponsible public finance management that led to the ruination of the national economy.

A two-page press release in Sinhala issued by Janakantha Silva, Director Legislative Services and Acting Director of Communications, on the same day, disclosed how the incumbent dispensation caused the unprecedented meltdown.

But, the releasing of video footage of the entire meeting by the Parliament helped the public to clearly understand how the Finance Ministry, the Central Bank of Sri Lanka (CBSL), the Monetary Board, the then Presidential Secretary Dr. P.B. Jayasundera, the Cabinet of Ministers and the Parliament contributed to the debilitating economic-political and social crisis. The COPE meeting should attract Attorney General Sanjay Rajaratnam’s immediate attention. The Bar Association of Sri Lanka (BASL), too, cannot turn a blind eye to the shocking exposure of a seriously flawed public finance system and nothing but a negligent and incompetent Parliament.

During the proceedings, top Samagi Jana Balavegaya (SJB) member of the parliamentary watchdog committee, Dr. Harsha de Silva declared the appointment of ‘RW’ as the Finance Minister in addition to being the PM. When the former UNPer’s COPE colleagues raised eyebrows, Dr. de Silva quickly said: “Sorry. Mr. Ranil Wickremesinghe.’ A smiling Prof. Herath reminded that PM Wickremesinghe was Dr. de Silva’s former boss. The SJB’s economic guru de Silva functioned as State Minister for National Policies and Economic Affairs.

The then yahapalana premier held the Cabinet portfolios of those subjects. At the time the Treasury bond scams that had been blamed on Wickremesinghe and Company were perpetrated in Feb 2015 and March 2016, the CBSL functioned under the purview of Wickremesinghe’s ministry. So in actual fact Dr. Harsha de Silva, having been part of that yahapalana team that messed things up at the time in style, is in no position to take a ‘holier than thou stand’ now.

Similarly Champika Ranawaka, too, is under many a cloud. When he was the Power and Energy Minister, his bosom pal, then Chairman of the CEB, figured in the notorious Panama papers. So whose money had the then CEB Chairman Anura Wijepala banked in hidden accounts offshore?

Among those who had been at the meeting, summoned by the COPE, were Director General, Internal Audit, Finance Ministry Mrs. Deepika Colombage, Chief Financial Officer, Finance Ministry B.K.R. Balasooriya, Finance Secretary K.M. Mahinda Siriwardana, CBSL Governor Dr. Nandalal Weerasinghe, Deputy CBSL Governor T.M.J.Y.P. Fernando, Director General, Finance Ministry Hemal Kasthuriarachchi, Assistant Governor, CBSL Ananda Jayalath, Director, International Operations Department, CBSL Dr (Ms) D.S.T. Wanaguru, Monetary Board member Sanjiva Jayawardena, PC, Monetary Board member Dr. Ranee Jayamaha, Assistant Governor, K.M. A.N. Daulagala (Secretary to the Monetary Board), Assistant Governor, CBSL K.G.P. Sirikumara, Director, Economic Research, CBSL P.K.G. Harischandra, Director, Human Resources, CBSL A.M. Gunatilake, Director, Payment and Settlement Department, CBSL M.R. Wijewardena, Director, Legal and Compliance Department, CBSL Dr. (Mrs) A.A.I.N. Wickramasinghe , Director, Domestic Operations Department, CBSL Dr. R.A.A. Perera, Additional Director, Facilities Management Department, CBSL S.K.P. Vitharana, Additional Director, International Operations Department, CBSL S. Obeysekara, Chief Accountant, CBSL Mrs D.S.L. Sirimanne, Director, Department of Foreign Exchange Mrs. D.R. Karunaratne and Director, Department of non-bank financial institutions R.M.C.H.K. Jayasinghe.

Of them, only Governor Dr. Weerasinghe, Treasury Secretary Siriwardana and Monetary Board members Jayawardena and Jayamaha responded to the queries raised by the COPE. On behalf of the parliamentary watchdog, its Chairman Prof. Herath, Eran Wickremaratne (SJB), Rear Admiral (retd.) Sarath Weerasekera (SLPP), Rauff Hakeem (SLMC), Madura Vithana (SLPP), Jagath Pushpakumara (SLPP) and Premnath C. Dolawatta (SLPP) raised questions and also commented on the issues at hand. But, the day certainly belonged to SJB lawmakers, Patali Champika Ranawaka, who is also the leader of ’43 Brigade’ and Dr. Harsha de Silva.

At the onset of the proceedings, Prof. Herath, while underscoring the sensitive nature of the impending discussions, declared the 2018 and 2019 Auditor General’s reports on the CBSL were to be examined with the focus on the current status of the apex operation.

SJB MPs on the offensive

After Dr. Weerasinghe and Mahinda Siriwardana made their initial statements and responded to queries raised by Prof. Herath, lawmaker Ranawaka questioned the accountability on the part of the CBSL as well as the Monetary Board for the current crisis. The former minister Ranawaka emphasized that senior officials of both institutions couldn’t, under any circumstances, absolve themselves of the responsibility for bankrupting the country. The Colombo District MP didn’t mince his words when he declared that the top management officers of the CBSL were a handsomely remunerated lot whose culpability in the whole sorry state of affairs couldn’t be ignored.

Pointing out that the government has officially accepted Sri Lanka’s bankrupt status, MP Ranawaka compared how the financial meltdown finally led to street violence, including death of a lawmaker whereas senior CBSL and Monetary Board members who oversaw the ruination of the national economy seemed not to have attracted public attention.

The former JHU heavyweight Ranawaka posed several pertinent questions to those who had been summoned before the COPE regarding the role and conduct of the Secretary to the Treasury, CBSL and the Finance Ministry. Dr. de Silva, too, raised contentious issues at hand relating to the crisis, particularly how the SLPP handled the economy during the March/April 2020 to March 2022 period when CBSL Governor Ajith Nivard Cabraal suddenly resigned after having floated the Rupee. The much delayed decision to float the Rupee caused a catastrophe as it then immediately nosedived against the dollar and other major currencies.

Their relentless probing questions exposed an ugly truth. The shocking exposure of the then Prime Minister Mahinda Rajapaksa who handled the finance portfolio, the then Presidential Secretary Dr. P.B. Jayasundera, himself a former top Central Banker and ex-Treasury Secretary, Governors of the Central Bank Prof. W.D. Lakshman and Ajith Nivard Cabraal, Monetary Board member and Treasury Secretary S.R. Attygalle, the entire Cabinet-of-Ministers chaired by President Gotabaya Rajapaksa and the Parliament to varying degrees has sent shock waves through the political establishment.

COPE proceedings revealed how those who had been responsible for public wellbeing, both at ministerial and official level, simply allowed the situation to deteriorate to such an extent today the government lacked the wherewithal to meet basic requirements. They were most probably waiting for India and China, in rivalry, come to their rescue. The Indian help came but it was too late as the situation had snowballed in next to no time. As to why China dragged its feet might be due more to Rajapaksa sibling and duel citizen Basil increasingly sailing the Lankan ship towards the West, forgetting the fact that we achieved so much in the past thanks to China, including its unquestioning support to us in our fight to defeat LTTE terrorists.

Lawmakers Ranawaka and Dr. Silva pressed the Finance Secretary Siriwardana, Governor Weerasinghe and Monetary Board members on (1) massive tax cut implemented soon after the last presidential election in Nov 2019, contrary to the advice given by the IMF (2) the IMF’s refusal to grant RFI (Rapid Financing instrument) to Sri Lanka in March/April 2020 and (3) printing money (4) colossal losses suffered by the CBSL due to its refusal to float the Rupee.

Officials’ answers flabbergasted COPE. The Finance Ministry, CBSL and the Monetary Board had been mercilessly dominated by the SLPP and did nothing to change the extremely dangerous path the country was taking. The SLPP was hell-bent on continuing with its reckless strategy at whatever consequences.

Conduct of Monetary Board

The Monetary Board consists of five persons – two ex-officio members, Governor, Secretary to the Finance Ministry, and three nominated members. At the time of the issue at hand Prof. W.D. Lakshman and S.R. Attygalle had served on the Monetary Board and the latter as the Secretary to the Finance Ministry as well. The Monetary Board’s appointed members were President’s Counsel Sanjiva Jayawardena, Dr. Ranee Jayamaha (retired Central Bank Deputy Governor) and successful businessman Samantha Kumarasinghe, who put Sri Lanka on the world cosmetic manufacturing map through his Nature’s Secret line of products, which earned the ire of some multinational leaders in the field because of its resounding overnight success.

Dr. de Silva flayed the government over the appointment of Samantha Kumarasinghe, claiming he didn’t know the basics in economics. But SJB economic pundit was apparently not aware that Kumarasinghe has a MBA from the prestigious Harvard Business School like the late A.S. Jayawardena, who, with his Harvard MBA, went on to serve successfully as the country’s Central Bank Governor and Treasury Secretary during some of the most testing times for this country, especially during the Asian financial crisis of 1996 and the terrorist bombing of the Central Bank in 2001.

According to a statement, dated July 15, 2020, issued by the CBSL, Sanjeeva Jayawardena has been appointed with effect from Feb 26, 2020 and Dr Ranee Jayamaha and Samantha Kumarasinghe with effect from June 29,.2020. President Gotabaya Rajapaksa appointed them under section 8(2)(c) of the Monetary Law Act with the approval of the Constitutional Council.

MP de Silva questioned the suitability of Kumarasinghe on the basis of an article he published in the Lankadeepa in which the SJB heavyweight claimed the Monetary Board member expressed views very much contrary to basic economy theories.

Let me reproduce a CBSL statement issued on July 15, 2020 on Kumaasinghe’s appointment. The Island believes it would be fair by the former Monetary Board member.

The text of the CBSL statement: “Samantha Kumarasinghe currently serves as Chairman and Managing Director of several companies in Sri Lanka, Bangladesh and Vietnam that operate in industrial sectors across cosmetics, textile chemicals, household cleaning products, organic food and biological fertilisers.

He currently serves as a member of the Presidential Task Force for Economic Revival and Poverty Eradication (2020), President of Lanka Industry Forum for Empowerment (LIFE) (2018 to date) and Chairman of Cosmetics Sector Advisory Committee at the Ministry of Industries (2016 to date). He has also served in the capacities of member of Presidential Industrialisation Commission (from 2018 to 2019), a board member of the Insurance Board of Sri Lanka (2012 to 2014), a committee member of the Implementation of the Integrated Curriculum, Subjects and Review of Academic Activities Process of the Ministry of Education (2013) and as Commissioner of the Presidential Taxation Commission (2009 to 2010).

Kumarasinghe studied at Royal College, Colombo. He is a chemistry graduate of the University of Peradeniya and an alumnus of the Harvard Business School, USA. He started his entrepreneurial career in 1993 with just 12 employees and was adjudged ‘Entrepreneur of the Year’ in 2008. He was awarded a Presidential National Honours Award in 2019 for his valuable contribution to the country.”

Dr. Jayamaha strongly defended her conduct as a member of the Monetary Board and that of President’s Counsel Jayawardena. Commenting on calamitous decisions to fix the Rupee at 203 and refusal to engage the IMF, Dr. Jayamahaha alleged that Governor Lakshman, Finance Secretary Attygalle and nominated member Kumarasinghe pursued an agenda of their own. Dr. Jayamaha alleged that the Governor’s group always had the majority and therefore, they couldn’t have opposed. Dr. de Silva rejected Dr. Jayamaha’s stand.

The lawmaker insisted that all members of the Monetary Board were equally responsible for the current predicament. The MP suggested that Dr. Jayamaha and President’s Counsel Jayawardena should have gone public to deter the Governor and his colleagues.

SJ hits back

Sanjeeva Jayawardena quite clearly explained how he and Dr. Jayamaha took a common stand on touchy matters. Apropos Sri Lanka’s RFI request and related issues, Jayawardena revealed, beginning early 2020, they on nine different occasions, recommended/suggested engagement with the IMF. Jayawardena also explained their efforts to establish what he called an external debt monitoring mechanism. The President’s Counsel explained how Governor Cabraal acted, contrary too decision taken in respect of floating the Rupee at a proper forum. Jayawardena and Jayamaha have also warned against excessive money printing. Dr. de Silva asked for the minutes of the relevant meetings. The lawmaker reiterated that members of the Monetary Board bear equal responsibility for the current crisis.

One of the most controversial issues was the massive tax cut to the tune of Rs 600 bn implemented by the current dispensation. Treasury Secretary Mahinda Siriwardana asserted that the decision on the tax cut should have been reversed in the wake of the Covid-19 eruption. Dr. de Silva pushed Siriwardana on the issue at hand. The former UNPer asked Finance Secretary Mahinda Siriwardana to reveal the person who decided to implement the tax cut regardless of specific IMF advice at a time the lending agency called for debt restructuring in the wake of Colombo seeking RFI? The lawmaker also wanted the Finance Secretary to confirm whether the Finance Ministry conducted a survey before the controversial decision was made? Lawmaker de Silva asked who dropped the IMF recommendations to the dustbin. Finance Secretary side-stepped the issue in spite of lawmaker Ranawaka attacked the CBSL and the Finance Ministry on the same issue. The Finance Secretary struggled to cope up with the situation whereas Dr. Weerasinghe revealed how the tax cut was ordered. According to Dr. Weerasinghe, there hadn’t been any consultations at any level before they were informed of the disputed decision.

Earlier, Dr. Weerasinghe, in response to probing questions, acknowledged the circumstances Dr. PB Jayasundera decided not to engage the IMF regardless of the precarious economic outlook. Lawmaker Ranawaka repeatedly said that the crisis that had engulfed the country is far worse than the Treasury bond scams, 2019 Easter Sunday massacre or alleged war crimes.

Appearing before the COPE, as well as the Committee on Public Finance (COPF), headed by Anura Priyadarshana Yapa (SLPP) Dr. Weerasinghe last week acknowledged how the Finance Ministry misled the Parliament over the years. There hadn’t been a previous instance of a CBSL Chief going public with the truth. Dr. Weerasinghe told COPE how the Parliament allocated unavailable funds to various ministries on the basis of false estimates. That had been the norm as politicians and officials cooperated in a despicable way to deceive the public.

Dr. Weerasinghe also blamed such irresponsible practices for the current crisis. Perhaps, Dr. Weerasinghe should be especially commended for reminding the COPE of the responsibility of the Parliament in ensuring suitable appointments are made. The CBSL Chief dared to be forthright in his appearances before parliamentary watchdog committees thereby set up new standards in Sri Lanka’s utterly corrupt public services. However, the CBSL Chief, too, cannot exonerate himself of the responsibility for overall irresponsible conduct of the institution, as pointed out by Dr. de Silva in respect of the Monetary Board.

How Lanka ended up receiving humanitarian assistance from an Indian state

 SPECIAL REPORT : Part 420

Published

  2022/05/25

UNP Chairman Vajira Abeywardena and PM’s Chief of Staff Sagala Ratnayake join CWC leader Senthil Thondaman and FM Prof. G.L. Peiris at a brief ceremony at the Colombo harbour where Indian HC Baglay handed over humanitarian assistance from Tamil Nadu (pic courtesy Indian HC)

By Shamindra Ferdinando

The May 09 ‘operation’, whose father is yet unknown, meant to save Mahinda Rajapaksa’s premiership, has tarnished the Sri Lanka Podujana Peramuna (SLPP), the police as well as the armed forces.

The controversial Temple Trees project not only caused irreparable damage to the ruling coalition, it paved the way for UNP leader Ranil Wickremesinghe to regain the premiership for the sixth time, incredibly with just one seat in the 225-member Parliament.

With Wickremesinghe at the helm of the government parliamentary group, the UNP has begun playing an active role in the administration, though the party didn’t have any members in Parliament, other than its leader. However, Wickremesinghe has brought a selected group of UNPers into the administration while causing a division in the main Opposition Samagi Jana Balavegaya (SJB) by winning over two of its vociferous members, namely Harin Fernando and Manusha Nanayakkara.

Having repeatedly accused President Gotabaya Rajapaksa of direct complicity in the 2019 Easter Sunday massacre, both received ministerial portfolios from the President. Wickremsinghe is in the process of consolidating his position.

There cannot be a better example to highlight Wickremesinghe’s strategy meant to resurrect his party than involving two former ministers Vajira Abeywardena, incumbent Chairman of the party, and Sagala Ratnayake, in the delegation that received urgently needed food assistance from India.

Sri Lanka delegation received the assistance, standing next to Tan Binh 99, the Panama registered general cargo ship, at the Colombo harbour.

The following is the text of the statement issued by Eldos Mathew Punnoose, Head – Press, Information and Development Cooperation, as regards the handing over of humanitarian assistance at the Colombo harbour: “High Commissioner Gopal Baglay handed over a large consignment of humanitarian assistance worth more than SLR 2 billion from the people of India to Foreign Minister Prof. G.L Peiris, in Colombo, on 22 May 2022. The handing over function was attended by Minister for Ports and Shipping, Nimal Siripala de Silva, Former Minister Vajira Abeywardena, Sagala Ratnayaka, Chief of Staff of the Prime Minister, Senthil Thondaman, Leader of the Ceylon Workers Congress, Food Commissioner Mrs. J. Krishnamurthy, among senior officials, and others.

The consignment consists of 9,000 MT of rice, 50 MT of milk powder and more than 25 MT of drugs and other medical supplies. It was flagged off from Chennai port by Chief Minister of Tamil Nadu Thiru M.K Stalin on 18 May 2022. This is also the first consignment under a larger USD 16 million commitment of 40,000 MT of rice, 500 MT of milk powder and medicines by the state Government of Tamil Nadu.

Handed over materials shall be distributed among vulnerable and needy sections in various parts of Sri Lanka including Northern, Eastern, Central and Western Provinces by Government of Sri Lanka in the coming days.

More humanitarian consignments and other forms of assistance from India shall follow. Multi-pronged endeavour by both the Government and the people of India underlines the importance attached to Sri Lanka and reflects their concerns for the well-being of its people. Support extended to Sri Lanka ranges from economic assistance worth around USD 3.5 billion, supply of vaccines, testing kits, close to 1000 MT of liquid oxygen to combat COVID-19, immediate response by the Indian Navy and Coast Guard to mitigate marine disasters, etc.”

Sri Lanka’s utterly irresponsible political leadership has achieved the unthinkable. The country has been reduced to such a pathetic state, it has ended up receiving food assistance from the state government of Tamil Nadu. Sri Lanka should be ashamed of having to receive food assistance from an Indian state, 13 years after having proudly defeated the Liberation Tigers of Tamil Eelam (LTTE) considered impossible by many a pundit and against the wishes of the haughty West. Can that be the root of the unprecedented problems? Perhaps one day the truth will unravel through the work of an outfit, like WikiLeaks, on how Hawala or Undial underground cash transfer systems so successfully dried up foreign exchange flows into the country, leaving it unable to find even a few million dollars to clear an urgently needed shipment of cooking gas or lifesaving drugs. However much the deep state is entrenched in Western democracies with the open help of their ‘independent’ media controlled by the military-industrial complex, there are still plenty of people with clear consciences who want to do justice to the world.

R.K. Radhakrishnan, writing to India’s national magazine Frontline described the Tamil Nadu gesture as ‘a province in a developing country extending its assistance to another country.’ That line is sufficient to comprehend Sri Lanka’s plight. In spite of initial disagreement between Tamil Nadu and the Central Government of India regarding the humanitarian assistance offered by TN Chief Minister M.K. Stalin, they reached consensus on the matter. Four days before the despicable Temple Trees project, borne out of frustration caused by the government’s inability to end the sieges at Temple Trees and the Presidential Secretariat by so- called peaceful protesters, triggered mayhem in Sri Lanka. They were anything but peaceful by the way they tried to storm President Gotabaya Rajapaksa’s private residence at Pengiriwatte, Mirihana, in late March.

Then Premier Mahinda Rajapaksa, struggling to save his premiership, wrote to CM Stalin: “I wish to thank you and the Tamil Nadu government on behalf of the people of Sri Lanka, for viewing the country’s crisis from a humanitarian standpoint, rather than a problem concerning another country.”

Six days later Mahinda Rajapaksa was compelled to quit the premiership. The war-winning President and his family were compelled to take refuge at the strategic Eastern Naval Command after having abandoned Temple Trees, Kollupitiya, the nerve centre of the disastrous May 09 project, fearing a fate similar to that which met Libya’s Gadhafi, where, too, the truth was turned on its head.

An elder brother’s lament

Chamal Rajapaksa, 80, possibly serving his last term as a lawmaker, recently faulted younger brother and twice President Mahinda Rajapaksa for continuing in politics even after completing two presidential terms. The elder Rajapaksa attributed the current crisis to Mahinda Rajapaksa’s continuation in active politics. Chamal Rajapaksa said that politicians should be prepared to give up power. Otherwise, they have to be prepared to face situations like this if they were greedy for power. The one time Speaker was commenting on his brother’s dilemma in the wake of him losing the premiership. Chamal Rajapaksa said: “Ranil Wickremesinghe is very lucky. In 2015, Wickremesinghe was able to secure premiership in spite of not enjoying a parliamentary majority. Now, the UNP leader secured the premiership without another MP in Parliament. Wickremesinghe is lucky and the country too is fortunate that we have him to take up the mantle of leadership despite all his shortcomings of the past, when all other politicians are playing their petty tricks to grab power while the country was literally going up in flames.

But, can Chamal Rajapaksa absolve himself of his share of responsibility for the crisis that forced President Gotabaya Rajapaksa to leave his brothers, Chamal and Basil as well as nephews, Namal and Shashendra, out of the Cabinet of Ministers. President Rajapaksa, himself is under pressure to do away with the 20th Amendment to the Constitution that gave him dictatorial powers. The abolition of the 20th Amendment enacted in Oct 2020 is part of the overall agreement sought by some of those who accepted ministerial portfolios in the current dispensation. Both PM Wickremesinghe and Justice Minister Dr. Wijeyadasa Rajapakse, PC, will push hard for the abolition of the 20th Amendment.

Before commenting further on ongoing moves to introduce the 21st Amendment at the expense of the 20A, it would be pertinent to examine Chamal Rajapaksa’s role as the Speaker (April 22, 2010-June 26, 2015) especially against the backdrop of his criticism of Mahinda Rajapaksa’s conduct. Chamal Rajapaksa, who has represented the Hambantota electoral district since 1989, continuously has declared that his brother Mahinda should have called it a day after completing two presidential terms (2005-2010 and 2010-2015).

Having said so, lawmaker Chamal Rajapaksa owed an explanation as regards his role in the enactment of the 18 A to the Constitution at the expense of the 19 A. During Chamal Rajapaksa’s tenure as the Speaker, the Parliament passed the controversial 18th Amendment Bill on Sept. 8, 2010, with 161 MPs voting for and 17 against the Bill. The following are some of its key points:

(a) The President can seek re-election any number of times (earlier it was limited to two;

(b) The ten-member Constitutional Council replaced with a five-member Parliamentary Council;

(c) Independent commissions are brought under the authority of the President; and,

(d) The 18th Amendment enabled the President to attend Parliament once in three months and entitles him to all the privileges, immunities and powers of an MP other than the entitlement to vote. In short, it is all about arming the President with absolute power.

The 18th Amendment was meant to empower Mahinda Rajapaksa. Chamal Rajapaksa, in his capacity as the Speaker, oversaw the operation. The impeachment of Shirani Bandaranayake, the 43rd Chief Justice of Sri Lanka, and her removal by President Mahinda Rajapaksa in January 2013 should be examined against the backdrop of enactment of the 18th Amendment. Chamal Rajapaksa served as the Speaker at the time Justice Bandaranaike was removed. She was accused of several charges, including financial impropriety and interfering in legal cases, all of which she categorically denied. But her husband was found guilty by courts over his shady dealings.

Speaker Chamal Rajapaksa ensured the implementation of the then UPFA government’s strategy. Having served as a minister till April this year and played a critical role in the manipulation of Parliament, it wouldn’t be fair to find fault with Mahinda Rajapaksa solely for being power hungry.

Chamal Rajapaksa also made reference to Wickremesinghe receiving the premiership in 2015 following the presidential election, in spite of not having at least a simple majority in Parliament. Chamal Rajapaksa appeared to have conveniently forgotten that he continued as the Speaker even after Wickremesinghe was appointed PM after having unceremoniously discarded the late D.M. Jayaratne. The UPFA leadership didn’t even bother to ask Jayaratne before reaching consensus with President Maithripala Sirisena and UNP leader Wickremesinghe over the premiership following Mahinda Rajapaksa’s shock defeat at the January 2015 Presidential election held ahead of schedule on the advice of an astrologer. Central Bank Governor Arjuna Mahendran perpetrated Treasury bond scams in Feb 2015 and March 2016 in connivance with then Premier Wickremesinghe-led government.

The UNP-led government also betrayed the war-winning Sri Lanka military at the Geneva based United Nations Human Rights Council (UNHRC).

Chamal Rajapaksa absolutely had no issue in continuing as the Speaker until June 26, 2015 when President Maithripala Sirisena dissolved Parliament to save the UNP. The dissolution of the House was meant to prevent the Committee on Public Enterprises (COPE) from submitting its report on the first Treasury bond scam to the House. Now again Chamal Rajapaksa has accepted Ranil Wickremesinghe as the Premier. Maithripala Sirisena, who sacked Wickremesinghe in late Oct 2018 and then offered him the premiership back within two months following judicial intervention and the primary beneficiary of Oct 2018 constitutional coup Mahinda Rajapaksa, are also in the same parliamentary group now headed by Wickremesinghe.

Proposed transfer of executive powers

The Bar Association of Sri Lanka (BASL) is pushing for the abolition of the Executive Presidency. The BASL wants Premier Wickremesinghe to demonstrate as early as possible his ability to establish a consensus among the political parties in Parliament and endeavour to build a representative Government of National Unity to implement a Common Minimum Programme (CMP) in the public interest.

The BASL insists on a clear timeline to introduce critical constitutional amendments proposed by the outfit, including the introduction of the 21st Amendment to the Constitution and the abolition of the Executive Presidency.

The National Joint Committee (NJC) is concerned about the BASL’s strategy. The nationalist outfit believes the SJB and the BASL are working on a similar agenda to do away with the Executive Presidency without changing the current electoral system or repealing the 13th Amendment.

If the ongoing joint high profile project to introduce 21 A to the Constitution succeeds, the UNP leader will receive powers at the expense of the Executive Presidency. Having received an overwhelming mandate at the last presidential election in Nov 2019, Gotabaya Rajapaksa stands to lose executive powers to Wickremesinghe who accepted the challenging task of rebuilding the devastated national economy.

Those who launched the ‘Gogotahome’ campaign remained skeptical about the SLPP’s commitment to introduce the 21 A. They believe the architects of the 20 A would do whatever possible to sabotage efforts to do away with the executive presidency. They believe the SLPP founder Basil Rajapkasa, who still wields power over the party apparatus reeling under accusations pertaining to unprovoked attacks on the public demanding the resignation of President Gotabaya Rajapaksa and Prime Minister Mahinda Rajapaksa.