Deafening silence of vociferous diplomatic community

SPECIAL REPORT : Part 374

Published

   2021/06/30

German Ambassador Jorn Rohde accompanied by both local and foreign journalists at the Mannar mass graves site

 

By Shamindra Ferdinando

Sri Lanka is ‘blessed’ with a very vocal section of the diplomatic community. Those who represent this grouping work overtime on domestic issues. During the conflict, they did their best to throw a lifeline to the Liberation Tigers of Tamil Eelam (LTTE) when it was literally gasping for its last breath. They stepped up their efforts in the post-war period.

Sri Lanka lacked a workable strategy to deal with growing external interventions. This grouping worked through some political parties, a section of the civil society groups, and the media. They intervened in a spate of issues, ranging from the disappearance of NGO activist Kathiravel Thayapararajah, in Sept 2009, to safety and security of one-time Director of the Criminal Investigation Department (CID) Shani Abeysekera.

The grouping backed any issue that facilitated its overall strategy to tarnish the country for defeating the world’s most ruthless terrorist outfit by their own reckoning. The grouping never forgave the Rajapaksas for bringing the war against the LTTE to a successful conclusion, in May 2009. The UN has been deeply involved in the high profile politically-motivated operation. There cannot be a better example than UN Resident Coordinator Hanaa Singer’s intervention in the simmering issue of cremation of Muslim victims of the raging Covid-19 epidemic.

Singer, in a letter dated Nov 12, 2020, addressed to Prime Minister Mahinda Rajapaksa, pressed the government to end the cremation of all Covid-19 victims. The controversial letter, also copied to Foreign Minister Dinesh Gunawardena, Justice Minister Ali Sabry, PC, and Health Minister Pavithradevi Wanniarachchi, challenged the disposal through cremation the bodies of those who died of the Covid-19 infection. Singer backed UN intervention on the basis of a plethora of requests from the Muslim community, as well as others.

Singer faulted Sri Lanka for what she called a discriminatory policy adopted as regards disposal of bodies.

A section of the media received the Colombo-based UN head’s letter hours after it was delivered to Offices of the Prime Minister and Foreign, Justice and Health ministers. Who released Singer’s letter? Did the UN Resident Coordinator’s Office make the letter available to the media? Or did the PM’s Office, or did the ministers, Gunawardena, Sabry or Wanniarachchi release it? Who benefitted from the public getting to know the UN intervention in purely a domestic matter? The story received significant international media coverage. Interested parties felt the issue could be quite useful at the March 2021 sessions at the Geneva-based United Nations Human Rights Council (UNHRC) sessions to further hammer the country.

The UN Resident Coordinator’s push to end mandatory cremation here received the backing of three members of the Sri Lanka Core Group at Geneva. The Sri Lanka Core Group comprises the UK, Canada, Germany, North Macedonia, Malawi and Montenegro. Can one imagine a justifiable reason for North Macedonia, Malawi and Montenegro to be part of the Sri Lanka Core Group except to serve as lackeys of the West? The UK, Canada and Germany backed the moves to end mandatory cremation. They exploited the issue to the hilt. Those who cannot stomach Sri Lanka’s triumph over terrorism always sought to isolate the country’s wartime leadership. But, they didn’t have an issue with the war-winning Army Chief General Sarath Fonseka as he had succumbed to political maneuvering that paved the way for the Sinha Regiment veteran to challenge President Mahinda Rajapaksa at the January 2010 presidential election, the first major national poll, after the near three-decade old war ended. Fonseka lost by a staggering 1.8mn votes.

So, it’s no wonder that one of the first things that the Iraqi rebellion did after the Western-led invasion of that country was to blow up the whole UN compound in Baghdad for the sordid role the world body played in building up a bogus case against Iraq of there being weapons of mass destruction in that country, on which the US-led invasion there took place.

 

Core Group worried over Easter

Sunday suspect

 At the behest of diplomatic missions in Colombo, the UK, at the ongoing 47th Geneva sessions, on June 22, 2021, on behalf of Sri Lanka Core Group raised the following issues. The grouping (1)stressed former CID Director Shani Abeysekera’s safety and security (2) plight of human rights lawyer Hejaaz Hizbullah (3)continuing restrictions on memorialization (4) declared support for the Bar Association of Sri Lanka as regards the need for an independent and impartial investigation into recent deaths in police custody.

Let me, first of all, appreciate the Sri Lanka Core Group taking a tough stand on deaths in police custody. The government should be embarrassed over continuing deaths in police custody. The Human Rights Commission of Sri Lanka and the Bar Association of Sri Lanka issued strong statements demanding an end to extra judicial killings. The police should be held accountable for such killings and Parliament cannot absolve itself of the responsibility for police ‘executions’. The SLPP government owes an explanation why tangible measures haven’t been taken to end police killings.

The Sri Lanka Core Group statement conveniently refrained from mentioning that Attorney-at-Law Hejaaz Hizbullah had been held under the Prevention of Terrorism Act (PTA) in connection with the 2019 Easter Sunday attacks which claimed the lives of 270 men, women and children and caused injuries to 500 other totally innocent folks. Among the dead and the wounded were several dozens of foreigners. The Sri Lanka Core Group also refrained from making any reference to the LTTE when it raised objections to continuing restrictions on memorialization.

The Core Group leader, the UK, and Canada, are home to substantial numbers of Sri Lankan terrorists. One-time British High Commission employee LTTE theoretician Anton Balasingham received British citizenship and lived there, in style, until his death in Dec 2006. Adele Balasingham, who once encouraged young girls to join the LTTE terrorists and publicly tied cyanide capsules round the necks of those girls, lives in the UK while the British HC preaches post-war national reconciliation to us.

The much-touted Canadian stand on the accountability issue in Sri Lanka is nothing but a joke now. The discovery of 600 or more remains of children at the Marieval Indian Residential School, which operated from 1899 to 1997, in the province of Saskatchewan, and last month’s, discovery of some 215 remains, at a similar school in British Columbia, exposed what fake do-gooders they are in a land they plundered from its natives. China raised the issue at the ongoing Geneva sessions. The media exposed the murder of indigenous children in the wake of Canada recognizing genocide in Sri Lanka. Actually, Geneva should call for a comprehensive investigation into Canadian murder of hundreds of native children they had forcefully taken from their families, under a much publicised project to ‘civilise natives’, while Canada is still trying to hoodwink the world with concerns over alleged continuing  human rights abuses in some selected countries, like China and Sri Lanka.

Canadian PM has made a foolish bid to divert attention by requesting Pope Francis to come to Canada to apologise for church-run boarding schools where hundreds of unmarked graves have been found.

It would be pertinent to mention what Jiang Duan, Minister of the Chinese mission to the United Nations in Geneva said about Canada violating human rights of its indigenous people. Duan urged the UNHRC to keep following the human rights issues in the North American country. That statement had been made by China on behalf of a group of countries. The writer is glad that Sri Lanka had been among that group. Canada, home to thousands of ex-Sri Lankan terrorists and their families, continue to harass Sri Lanka at every opportunity, for political reasons. The recent passage of Bill 104 in Canada that recognized genocide in Sri Lanka, exposed Canadian strategy meant to appease Tamil Canadians of Sri Lankan origin with an eye on their huge vote bank.

 Quoting reports, the top Chinese diplomat said over 150,000 indigenous children had been forcibly taken away from their parents and sent to boarding schools during 19th and 20th centuries.

“They were subjected to malnutrition, and many fell victims to abuse and rape. At least 4,000 children died of disease, neglect, accidents or abuse while at schools,” Jiang said, calling for a thorough and impartial investigation into all cases where crimes were committed against the indigenous people, especially children, so as to bring those responsible to justice, and offer full remedy to victims.

“We are also deeply concerned over the illegal killings of civilians by Canadian overseas military servicemen and systemic racial discrimination, xenophobia, Islamophobia within Canada,” Duan noted, adding that Canada has also repeatedly exploited human rights issue as a tool to promote its political agenda.

 

Oxford AstraZeneca vaccine in short supply

As the writer earlier stressed, a section of the Colombo-based diplomatic community, in a way functions as a partisan and unashamed political grouping. An influential section of the civil society and the media cooperate with the grouping resulting in various issues being taken up. They aggressively addressed Sri Lanka’s policy of cremating bodies of all Covid-19 victims. Those who had accepted and appreciated external interventions on behalf of the Muslim community must have been quite surprised over their silence against the backdrop of nearly 580,000 people so far deprived of AstraZeneca/Covishield booster shot.

Sri Lanka shouldn’t have expected their intervention if they followed diplomatic norms in other matters. But, having fought for the Muslims’ right to bury their Covid-19 dead and expressed concerns over an Easter Sunday terror suspect and defended attempts to politicize war dead, the UN and its partners shouldn’t have remained silent over Sri Lanka being deprived of Oxford AstraZeneca required for the second dose.

Shouldn’t UN Resident Coordinator Singer have at least taken up the matter with New York as nearly 600,000 Sri Lankans faced an increased threat from the deadly Delta variant? Those missions eternally concerned for the wellbeing of Sri Lanka did nothing to facilitate sufficient stock of Oxford AstraZeneca vaccines.

Swiss project

 Civil society groups, too, remained silent in spite of reports of Western powers hoarding vaccines while smaller economies struggled to cope up with the situation. Those who expressed concern over the safety and security of interdicted SSP Abeysekera as well as the wellbeing of Hejaaz Hizbullah, remained quiet about nearly 600,000 deprived of AstraZeneca second dose.

People haven’t forgotten how a high profile Swiss operation meant to embarrass President Gotabaya Rajapaksa went awry in Nov-Dec 2019 in the immediate aftermath of the last presidential election. The Swiss Embassy, in Colombo, went to the extent of trying to evacuate its local employee Garnier Banister Francis, formerly Siriyalatha Perera, and her family, after a swift police investigation exposed the Swiss plot. They had been so hard pressed to prevent the exposure of the blatant lie, a ridiculous attempt was made to drive Francis holed up in the diplomatic mission straight to the Bandaranaike International Airport (BIA) and evacuate her and family in an air ambulance that was kept on standby there. President Gotabaya Rajapaksa personally intervened to thwart the Swiss plot. If they succeeded, the so-called case of Swiss Embassy employee abducted and molested by government agents would have been mentioned in the Sri Lanka Core Group statement issued on June 22 as a gospel truth.

The Swiss intervened with Prime Minister Mahinda Rajapaksa close on the heels of Francis claiming her being abducted near the Embassy. Interested parties staged the embassy drama in the immediate aftermath of Inspector Nishantha Silva of the CID and his family securing political asylum in Switzerland. The fugitive CID officer, too, would have received space in the Core Group’s statement if the Swiss operation succeeded. 

Sarah Newey, GLOBAL HEALTH SECURITY CORRESPONDENT, in a May 12, 2021 report in The Telegraph, titled ‘UK could share 20 pc of doses worldwide and still vaccinate all adults in July, analysis suggests’ discussed the issue at hand against the backdrop of the release of a report by Unicef and Airfinity. A section of the international media dealt with the crisis caused by wealthy ‘hoarding’ vaccine supplies.

Newey reported that the UK could donate 20 percent of its available coronavirus vaccines and remain on track to vaccinate all adults by the end of July, analysis suggested, amidst rising frustrations that wealthy countries hoarded jabs.

 Based on the then supply forecasts, a decision to share a fifth of doses with poorer nations from June would push back Britain’s vaccination timeline by just 10 days, according to analysis by Unicef and the life sciences research facility Airfinity.

 The widespread calls to UK Health Secretary Matt Hancock to resign over the last weekend in the wake of The Sun publishing pictures of Hancock and a colleague, non- executive, director, Department of Health Gina Coladangelo kissing, possibly indicated that he had been too busy to think of sharing a surplus of vaccines.

The Health Secretary was finally forced to quit following The Sun revelation of Hancock and Gina Coladangelo, both married with three children, kissing inside the Department of Health on 6 May.

 

A bungling administration

 The SLPP government, too, should accept responsibility for the crisis caused by its shortfall of AstraZeneca second jab. The Government Medical Officers Association (GMOA), while demanding an orderly inoculation project, took advantage of its position to ensure a second jab for family members, friends and associates. The secret inoculation project carried out by GMOA members at Galle revealed the mismanagement of the whole operation. The police, too, inoculated outsiders, including journalists who sought the intervention of high ranking Cabinet ministers. The government could have avoided the crisis over AstraZeneca second jab if half of the 1,264,000 jabs received from Serum Institute were used as the first jab. Instead, those at the helm of the vaccination drive inoculated as many as 925,242 persons (first jab during late January-early April 2021). The bungling SLPP government never explained why well over half of available AstraZeneca jabs had been used in the first round and the unpardonable nearly one and half month delay in using Sinopharm.  In spite of China delivering 600,000 jabs on March 30, the government didn’t use them. State Minister Dr. Nalaka Godahewa is on record as having said that the delay in using Sinopharm caused many deaths and aggravated the situation. Actually, the Samagi Jana Balavegaya (SJB) should have moved a no-faith motion against the government over Dr. Godahewa’s admission. But SJB too played politics at every turn. With some of its members earlier proclaiming that Lankans would be used as guinea pigs to test Chinese vaccines. Unfortunately, the pathetic main Opposition didn’t even bother to respond to the State Minister’s shocking admission.

 Recently, the British Parliament was told how the British High Commission in Colombo based its wartime assessment on Sri Lanka on a range of sources, including media and civil society. Let me reproduce a question raised by Lord Naseby and response provided by Lord Goldsmith to underscore the way the BHC, Colombo, gathered information. Lord Naseby on April 21, 2021 asked Her Majesty’s government what sources were used to ascertain the situation in Sri Lanka during the civil war in that country between January 1 and May 18, 2009.

Lord Goldsmith responded on April 29, 2021. The following is the response verbatim: “The UK government’s assessment of the situation in Sri Lanka during the civil war was informed by a broad range of internal and open source reporting, including from our High Commission in Colombo, international organizations, civil society and media.”

It would be interesting to know whether any Colombo based international organizations, civil society and media informed the BHC, Colombo of the AstraZeneca crisis at least after Sri Lanka detected the deadly Delta variant. Even if BHC had alerted the disgraced Health Secretary Hancock, he was probably too busy with Gina Coladangelo even to consider Sri Lanka’s requirement.

How can we forget the way Western embassies played politics with the recovery of skeletal remains from what was called the largest mass grave in Mannar? They blindly blamed the Sri Lankan military. Acting on assertions made by Colombo-based diplomatic missions, the United Nations High Commissioner for Human Rights Michelle Bachelet at the March 2019 sessions faulted the Sri Lankan military over the Mannar mass graves. Geneva was in such a hurry it didn’t even wait for a report from a carbon dating laboratory in the US that subsequently revealed skeletal remains dated back to around 500 years during the European colonial era (1499 to 1719 period.)

The samples were sent to the laboratory after concerns were raised to ascertain if the skeletal remains were of those who were killed during the war between government troops and Tigers which ended in May 2009.

Following the US lab report, Western embassies, one-time LTTE mouthpiece the Tamil National Alliance, the civil society and the media quietly dropped the Mannar issue. Thanks to a US lab report, Mannar mass graves no longer figure in statements issued by the UK-led Sri Lanka Core Group.

Significance of CPC-HIPG MoU

 SPECIAL REPORT : Part 373

Published

  2021/06/23

Dec 09, 2017: A jubilant PM Wickremesinghe at the formal handing over of HIP to China. The UNP leader holds a cheque written in favour of the Sri Lanka Ports Authority.

 

By Shamindra Ferdinando

The Ceylon Petroleum Corporation (CPC), on behalf of Sri Lanka, recently entered into an unprecedented Memorandum of Understanding (MoU) with the Hambantota International Port Group (HIPG) to expand its storage and bulk distribution facilities.

Why did CPC need a MoU with HIPG to go ahead with the project?

The signing of the MoU took place on June 8 at the Energy Ministry with Johnson Liu, CEO of HIPG, and Sumith Wijesinghe, Chairman, CPC, representing the two parties. Energy Minister Udaya Gammanpila was present at the signing ceremony. The MoU dealt with the agreement signed between the CPC and the strategic public-private partnership, involving Sri Lanka and China Merchants Port Holdings (CMPort).

The CPC issued just a picture of the event on the day after the signing of the MoU. According to a statement, comprising nine lines, among those present at the signing, in addition to Minister Gammanpila, were Energy Secretary K.D.R. Olga, Additional Secretary, Chaminda Hettiarachchi, and Managing Director of CPC, Buddhika Madihewa.

Tyron Devotta, on behalf of Public Relations firm, Media 360, handling HIPG, issued a comprehensive statement, on June 14, as regards the MoU finalized on June 8. Veteran journalist and columnist, Devotta, quoted, CEO Johnson Liu as having told the June 8 gathering at the Energy Ministry: “The vision of HIPG is to develop the Hambantota International Port (HIP) to become an energy hub for South Asia. Whilst HIPG has put the infrastructure in place to realize that goal, we are also aware that we cannot achieve it without the participation of all the players in the equation. To this end, we recognize the importance of Ceylon Petroleum Corporation as a vital cog in the machinery. The Hambantota Port is encouraged by this move, by the corporation, and as much as it will support the smooth and efficient supply of fuel to the customer, it will also strengthen the position of this Sri Lankan port on the global maritime map.”

The overall project is also subject to the approval of the Sri Lanka Ports Authority (SLPA) in view of its stake in the Hambantota Port project.

The CPC intends to establish a separate state-of-the-art storage terminal and other required facilities on a 50 acre Mahaweli Authority land, for both domestic and export purposes, connected to the HIP, via a pipeline.

Why did the media receive a separate statement that dealt with the issue at hand, lucidly? Devotta explained why Sri Lanka required far larger storage facilities to ensure energy security. Let me quote

Media 360 release verbatim: “The existing storage facility of CPC/CPSTL is sufficient to store refined petroleum product requirements of the entire country for a period of only one month, a capacity below the requirements of ensuring the energy security of the country. CPC currently imports refined petroleum products to cater to, approximately, 70% of the country’s demand, via the Colombo port, and suburbs. The CPC has identified the need to increase its fuel storage capacity to cater to at least three months’ of the country’s demand.”

 

Energy sector neglected

Successive governments neglected the energy sector, though all recognized the pivotal importance of ensuring energy security. Even after the successful conclusion of the war, in May 2009, the political leadership lacked the vision to take tangible measures to expand storage and bulk distribution facilities, as well as to set up a new refinery.

Over 12 years after the eradication of the Liberation Tigers of Tamil Eelam (LTTE), measures are being taken to develop HIP as a strategic energy centre but, unfortunately, the port is no longer in Sri Lanka’s hands due to the short-sighted policies of the previous yahapalana regime. The statement issued by Media 360 signified the change in the Hambantota scenario brought on during the previous Sirisena-Wickremesinghe administration. The bottom line is that Sri Lanka energy sector projects et al are subject to HIPG approval. That is the reality.

Having invested USD 974 mn in the HIP, as mentioned in the HIPG website, CMPort owns a strong 85 percent of the shares in it, whereas the SLPA’s stake is 15 per cent. CMPort received HIP’s commanding control in 2017 on a 99-year lease granted by the Government of Sri Lanka (GOSL) to develop, manage and operate the port area. The Sirisena-Wickremesinghe government signed the Hambantota port deal in late July 2017.

The then Ports and Shipping Minister Mahinda Samarasinghe, a confidant of President Maithripala Sirisena, signed the agreement, on behalf of Sri Lanka, after Arjuna Ranatunga gave up the portfolios in opposition to the transaction. Ranatunga, who unsuccessfully contested the last general election on the UNP ticket, told the writer recently he couldn’t have accepted the agreement as it was not fair by Sri Lanka. Samarasinghe now represents the SLPP parliamentary group having entered Parliament from the Kalutara District. At that time, Samarasinghe signed the agreement, he was a National List MP courtesy President Sirisena. The President, in his capacity as the SLFP leader, accommodated Samarasinghe on the National List after he failed to retain his seat.

Ranatunga explained how interested parties brazenly manipulated the whole process to the advantage of those seeking control of the HIP. The recently finalized CPC-HIPG MoU underscored that 99-year lease to HIP actually meant the strategic asset cannot be regained in the gainful life time of any Lankan living now. That is the undeniable unpalatable truth. A government that had secured a five-year mandate at the 2015 general election ended up losing an incomparable strategic asset.

Lawmaker Vasudeva Nanayakkara, during the Sirisena-Wickremesinghe administration, made an abortive bid to halt the handing over of the Hambantota port by way of court action. The Supreme Court, however, dismissed Nanayakkara’s action. Today, Nanayakkara and the SLFP that facilitated the Hambantota transaction are represented in President Gotabaya Rajapaksa’s cabinet.

In the wake of the 2015 change of government, the UNP-led administration adopted an extremely hostile stand Vis-a-Vis China. Having accepted US leadership as well as US-India-Japan-Australia security-political and economic partnership, the Sirisena-Wickremesinghe government engaged in a dangerous game much to the discomfort of the public. But, China managed to outmaneuver forces ranged against it and manipulated rapid developments in post-election period. The finalization of agreement in late July 2017 on HIP is nothing but a strategic achievement for Chinese diplomacy. The then Joint Opposition (JO) now recognized as the Sri Lanka Podujana Peramuna (SLPP) had no option but to keep quiet for obvious reasons. It would be pertinent to mention that following the 2015 defeat, Mahinda Rajapaksa, accompanied by former External Affairs Minister Prof. G.L. Peiris, visited Beijing amidst severe criticism of China-Sri Lanka relationship under the previous Rajapaksa government.

CPC-HIPG MoU

The signing of the MoU between the CPC and HIPG didn’t attract the media attention it deserved. The MoU came into being between Minister Gammanpila’s declaration on June 6 on the proposed new refinery at Sapugaskanda to be built at a cost of USD 3 bn (Rs 6,000 bn) on BOT (Build, Operate and Transfer) basis and his announcement of upward revision of fuel prices on Jun 11. The fuel price hike triggered a political turmoil, with SLPP General Secretary Sagara Kariyawasam, MP, of course, with SLPP founder Basil Rajapaksa’s blessings, demanded Minister Gammanpila’s resignation.

Former Attorney General’s Department employee, Attorney-at-Law Kariyawasam received the backing of the vast majority of the SLPP parliamentary group as he took on a small group of government lawmakers, who declared their support for Gammanpila. The battle caused a dicey situation with some speculating a division among the Rajapaksas as regards not only political strategy but future direction of the party as well. The country is in such economic dire straits with the lockdown alone costing billions to the exchequer daily, the ruling coalition cannot, under any circumstances, pave the way for internal squabbles to cause further deterioration. SLPP General Secretary Kariyawasam found fault with the Energy Minister for the substantial price hike. But, can the Pivithuru Hela Urumaya (PHU) leader be held responsible for waste, corruption, irregularities and negligence over a period of time that resulted in the CPC being in debt to the tune of Rs 652 bn to the Bank of Ceylon and the People’s Bank. Both Minister Gammanpila and the Presidential Media Division (PMD) warned that CPC’s loans amounting to Rs 652 bn and the Ceylon Electricity Board’s Rs 85 bn debt could undermine the banking sector and reminded the crisis the country was in.

Unchecked corruption has weakened the national economy to such a degree over the years, the incumbent government is now facing a massive cash flow crisis as it has literally nothing to fall back on.

Unfortunately, corruption continues, unabatedly. Examination of proceedings of the parliamentary watchdog committee reveal corruption is on the march with the support of those constitutionally empowered to address the issue. Debilitated by corruption, successive governments have pursued a despicable strategy in selling national assets. Trade Minister Bandula Gunawardena shamelessly justified the strategy in Parliament on June 8. What Minister Gunawardena basically said was to sell off whatever assets to bridge the budget deficit. Gunawardena owed the electorate an explanation as to how the country would cope once all assets are disposed of, regardless of the consequences.

The previous yahapalana administration reached consensus with Indian investments on four major projects, namely Mattala airport, East Container Terminal (ECT) of the Colombo port, remaining oil tanks at the Trincomalee oil tank farm, and an LNG power plant in Sampur. The collapse of the UNP-SLFP partnership disrupted Indo-Lanka projects. But, the SLPP, having had discussions with India early this year, decided to go ahead with the ECT project, though strong opposition within compelled the government to drop the idea. The SLPP has accused the Weerawansa-Gammanpila-Vasudeva led alliance of sabotaging the ECT project.

 

Cocktail of political and financial turmoil

Growing Chinese influence by way of investments et al here should be examined in the context of India-US relationship and the ‘Quad Alliance’, comprising US-India-Japan-Australia ganging up to confront real or imagined threats from fast growing China.

The question is whether India is looking for an unnecessary internecine conflict with China thereby unwittingly doing the bidding of the West. All indications are this is Asia’s century with China being the new world number one and India a close second. As we have said before, if these two clash, the traditional West would only be watching with glee the killing of two birds with one stone.

It would be suicidal for Sri Lanka to get entangled or even to wish for any kind of conflict between India and China, both being nuclear armed powers.

Delhi should also keep in mind that it was not China that lit separatist fires right across India into the late 80s and many of those Indian separatist groups had their rear bases in the traditional West.

These big talkers who now lectures at every opportunity about rules based order, followed no rules when they plundered much of the world often committing genocide to grab other people’s lands and unashamedly enslaved millions of black people in particular.

So why is India, having been a victim of such grave humiliation and plunder, now wants to kiss and forgive the same oppressors?

Imagine if there was no China, the West would have ganged up to prevent India from becoming a superpower

It is granted we shouldn’t ignore India’s current and future security concerns. But as long as the Chinese are for mutual economic benefit why can’t India even enter into lucrative trilateral partnerships here.

However given the built up paranoia in New Delhi, India is unlikely to give up its hold on key sectors. The Indian High Commission reacted decisively and swiftly when Energy Minister Gammanpila declared in Colombo on Feb 17, 2021 that the Trincomalee oil tank farm would come under Sri Lanka’s purview. The declaration was made in the presence of Prime Minister Mahinda Rajapaksa at an event to pay compensation for people affected by development projects undertaken by his Ministry. Minister Gammanpila said that he had been able to conclude talks the previous Sunday with the Indian High Commissioner Gopal Bagley (Gammanpila didn’t mention the HC’s name) regarding the taking over of the Trincomalee oil tank farm. He claimed that the High Commissioner accepted his government proposals in that regard though they weren’t compatible with India’s agreement with the Sirisena-Wickremesinghe administration.

Gammanpila expressed confidence in working with the Lanka IOC to develop Trincomalee facilities.

Responding to a media query on joint development of the Upper Oil Tank Farms in Trincomalee (Gammanpila didn’t make any reference to Upper Oil Tank Farms in Trincomalee), the Spokesperson of the Indian High Commission said: “India and Sri Lanka have identified energy partnership as one of the priority dimensions of their cooperation. India is committed to working together with Sri Lanka for the Island’s energy security. In this context, consultation and discussions have been undertaken to promote mutually beneficial cooperation for development and operation of the Upper Oil Tank Farms in Trincomalee. We look forward to continuing our productive engagement with Sri Lanka in this regard”.

Indian HC Bagley visited Lanka IOC’s Trincomalee oil terminal on March 14, 2021. Bagley, in his first visit there, also inspected a grease plant under construction. Once it started production, it would be able to meet Sri Lanka’s entire demand for grease. Perhaps what is significant is Bagley’s inspection of both Upper and Lower Tank farms in Trincomalee. A statement issued by Lanka IOC said that during the visit to the Upper Tank Farm, the High Commissioner was briefed in detail about the current status and the possibilities regarding its usage and development. The visit was made during HC Bagley’s tour of the Northern and Eastern Provinces

In the wake of the 2019 change of government, the incumbent government sounded the possibility of reviewing the agreement on the HIP. China swiftly ruled out that possibility. Sri Lanka (both the government and the Opposition responsible for the present financial crisis, seems to be wholly inadequate to meet the challenges. Decline in the financial and political situation has been further escalated by the raging global pandemic

Covid-19 has paved the way for predatory moves by interested parties.

The US declaration that Sri Lanka wouldn’t be considered for MCC (Millennium Challenge Corporation) Compact and apparent collapse of SOFA (Status of Forces Agreement), also with the US, do not mean end of those endeavours. Sri Lanka entered into ACSA (Access and Cross Servicing Agreement) in August 2017 with the US though MCC and SOFA failed, perhaps a temporary setback for Washington.

State of national economy, scandalous SUV order and fuel price hikes

 SPECIAL REPORT : Part 372

Published

  2021/06/16

A smiling PM Mahinda Rajapaksa takes SLPP membership from SLPP Chairman Prof. G.L. Peiris in late 2018 at the former’s Wijerama Mawatha residence while Sagara Kariyawasam, General Secretary of the Party, now embroiled in simmering controversy, looks on.

 

Trade Minister says Prez does not bring money from Mirihana or PM from Medamulana

 

By Shamindra Ferdinando

What is the current state of the economy? How can the public determine the state of the economy? Let me briefly refer to recent statements made, both in and outside Parliament, by members of the ruling Sri Lanka Podujana Peramuna (SLPP) on the state of the economy. The issue, at hand, is whether the incumbent government is competent to cope up with the situation.

Trade Minister Bandula Gunawardane (SLPP/Colombo District), Energy Minister Attorney-at-Law Udaya Gammanpila (PHU/Colombo), Urban Development and State Minister of Coast Conservation, Waste Disposal and Community Cleanliness Dr. Nalaka Godahewa (SLPP/Gampaha District) lucidly explained ground realities. They painted an extremely bleak picture. Perhaps, they haven’t done so intentionally, to place the government in a difficult situation. However, their assessment certainly underscores the responsibility on the part of the government to review its strategies, without further delay.

Twelve years after the conclusion of the war against terrorism, the national economy is in tatters. The deterioration of the economy cannot be entirely blamed on the rampaging global pandemic, Covid-19.

Political parties may seek to take cover behind the pandemic, conveniently forgetting how waste, corruption, irregularities and negligence withered the economy. Obviously, the pandemic has accelerated the decay and the government is in an unprecedented crisis. Vast majority of people are struggling to make ends meet against the rapidly worsening situation.

Those responsible (both UNP and SLFP members of Parliament in the 2015-2019 yahapalana administration cannot absolve themselves of the responsibility) for Treasury bond scams, perpetrated in Feb 2015 and March 2016, are now advising the SLPP on how to manage the economy. Interestingly, the SLFP is a constituent of the ruling SLPP, whereas those who stood with the Treasury bond thieves, now represent the Samagi Jana Balavegaya. There is never a dull day in utterly corrupt Sri Lankan politics.

 

‘Government unable to bear continuing losses’

Lawmaker Gammanpila made two damning statements as regards the state of the economy – at the Energy Ministry, on June 3, and at another briefing, at the same venue, on June 11. Unfortunately, the former Jathika Hela Urumaya (JHU) heavyweight’s critical comments didn’t receive sufficient media attention.

Addressing the media, on June 3, at his Ministry, Minister Gammanpila admitted that heavily debt ridden and cash-strapped government and the Ceylon Petroleum Corporation (CPC) weren’t in a position to procure USD 3 bn loan (USD 3,000 mn) required for a new oil refinery at Sapugaskanda. Therefore the funding required for what Minister Gammanpila described as the country’s largest single project to be carried out following competitive bidding had to be external investment (read outside the government).

Declaring that the proposed refinery project will be the biggest ever industrial venture undertaken, Minister Gammanpila declared that all major previous undertakings had been carried out, sans competitive biddings. The declaration was made after he admitted that altogether the Hambantota port (USD 1,350), Norochcholai coal-fired plant (USD 900mn), the Mattala airport, and the Colombo-Katunayake highway, cost USD 2,916, whereas the proposed Sapugaskanda refinery project is estimated to cost a staggering USD 3,000mn. PHU leader Gammanpila’s admission there hadn’t been competitive bidding, in respect of previous major projects, is nothing but an indictment of the previous Rajapaksa administration, or the system in place.

Minister Gammanpila’s declaration that the Ceylon Petroleum Corporation Act (No. 28 of 1961) would have to be amended to pave the way for USD 3 bn investment, triggered accusations the government was planning to privatize the state venture. The lawmaker described the proposed Sapugaskanda project as a BOT (Build, Operate and Transfer) basis enterprise with it reverting to Sri Lankan ownership once the investor recoups his investment.

The ministerial claim that the government refrained from increasing fuel prices for 21 months is a grim reminder the public cannot expect the truth from politicians. Or did they keep quiet expecting a miracle rescue like their earlier faith in Dhammika Peniya (syrup) and the hocus-pocus of pouring contents of some earthenware containers into a river to tackle the pandemic?

At the June 11 briefing, Minister Gammanpila commented on the imminent fuel price increase, in addition to the proposed Sapugaskanda project. Gammanpila explained that the government’s inability to bear further losses against the backdrop of the pandemic driven collapse of the tourism sector, halt in foreign investment, sharp drop in foreign remittances, hence the hiking of the fuel prices with the world market price of crude topping USD 70 per barrel. The Minister declared that it would be quite a challenge to procure the required fuel, amidst the foreign exchange crisis.

Responding to strong JVP criticism of the Sapugaskanda project, Minister Gammanpila pointed out that the USD 3 bn estimate was based on a pre-feasibility report, prepared before him being appointed the Energy Minister. The forthright politician declared that once they finalized feasibility study a better understanding of the project could be had.

The bottom line is that the country lacked wherewithal to undertake a major infrastructure project.

 

Total collapse of revenue sources professed

State Minister Dr. Godahewa, during an inspection tour, on June 09, of Sarakkuwa and Dungalpitiya areas badly affected by the sinking of the fire-ravaged X-Press Pearl container carrier, didn’t mince his words when he explained the state of the national economy. Dr. Godahewa, who had served the private sector quite efficiently, before turning to party politics, explained the pathetic state of the national economy. What he said was simply frightening. Assuring the SLPP’s commitment to provide relief to those who had been affected, Dr. Godahewa declared that one fourth of state revenue had been spent on ongoing efforts to bring the Covid-19 epidemic under control. Dr. Godahewa asserted that the government faced the prospect of total collapse of state revenue. The State Minister’s assertion cannot be taken lightly.

Making reference to Rs. 5,000 relief allowance paid to selected groups of people, on four occasions, the former Chairman of the Securities and Exchange Commission estimated that so far the government spent over Rs 250 billion for Covid-19 control/relief work.

Trade Minister Gunawardane, too, bitterly complained about the state of the economy in Parliament. His June 8 speech, in the relatively empty Parliament, underscored the pathetic situation. The government seemed quite helpless and in a deepening dilemma over the absence of wherewithal to meet daunting challenges. In his own way, Minister Gunawardane admitted that public finance was in quite a distressing position. The COPE (Committee on Public Enterprises), COPA (Committee of Public Accounts) and COPF (Committee on Public Finance) should take tangible remedial measures to redirect Sri Lanka’s from its disastrous path.

In spite of making quite horrendous revelations about waste, corruption, irregularities and negligence, the parliamentary watchdog committees haven’t been able to bring runaway corruption under control. Those who had been exposed at COPE proceedings continue in their nefarious activities with impunity. The national carrier, SriLankan Airlines is a case in point. In last week’s column, titled ‘How public sector corruption withers national economy: RJ’s insight,’ the writer dealt with the late Rajeewa Jayaweera’s damning reportage of the national carrier. RJ left SriLankan Airlines, in 2005, not in 1995, as inadvertently mentioned. RJ’s brother, Sanjeewa Jayaweera (SJ) brought the error to the writer’s notice. But, what really interested me was SJ’s observation that the report of the Presidential Commission of Inquiry (PCoI) on SriLankan Airlines, Mihin Air et al prepared following 12 months of sittings during yahapalana rule hasn’t been released, nor any action initiated against the wrongdoers.

RJ’s 41 articles on the national carrier revealed how those who managed the SriLankan Airlines and political authority defied laws of the land and continue to do so. The accumulated losses suffered by the national airline now stand at a staggering Rs. 326 bn with the two-state banks – BOC and People’s Bank – continuing to bear the losses.

Minister Gunawardane explained the country’s economic woes, bluntly. Acknowledging that the national economy was in dire straits and if budget shortfall couldn’t be met, through domestic and foreign loans, there was no option but to sell-off assets. Having compared how a government and a family struggled to manage shortfall income, the former reputed economics tuition master recommended selling of national assets. The SLPP certainly owed an explanation whether Minister Gunawardane articulated its position.

Minister Gunawardane told the stark truth to the House that neither Prime Minister Mahinda Rajapaksa, who was also the Finance Minister, nor President Gotabaya Rajapaksa would bring money from Medamulana or Mirihana to solve the unprecedented financial woes facing the country. Emphasizing the responsibility of Parliament, in respect of public finance, Minister Gunawardena emphasized 225 members of Parliament (regardless of political parties they represented) were responsible for taxpayers’ money.

 

Sharp hike in fuel price amidst Covid time bonanza

Minister Gammanpila’s Friday announcement, on fuel price hike, came as quite a surprise. That move flabbergasted the public, as much as the shameless decision to procure 228 Toyota Land Cruisers did in late May. Of the 399 vehicles ordered, 225 were for members of Parliament, made up of SLPP 145, SJB 54, TNA 10, JJB 3 (JVP contested under the JJB banner), AITC 2, EPDP 2, UNP 1, SLFP 1 and OPPP, TMVP, MNA, TMTK, ACMC, NC and SLMC one each. Among the beneficiaries is the sole UNP National List member though yet to take oaths as an MP. Obviously super luxury Toyota Land Cruisers are ordered for 225 members of Parliament. If so, the government should reveal the lucky recipients of the three remaining SVUs. Such luxury vehicles for lawmakers, at a time the country is experiencing severe economic difficulties, cannot be justified under any circumstances. Now JVP leader Anura Kumara Dissanayake has questioned the rationale in ordering SUVs for 225 members, the JVP should ask the Secretary General of Parliament Dhammika Dasanayake whether the three JVPers, in Parliament, were included in the list of those destined to receive brand new vehicles. Did the Finance Ministry submit a Cabinet paper that dealt with 399 vehicles, including those intended for MPs without seeking their approval? The JJB parliamentary group comprised Anura Kumara Dissanayake, Vijitha Herath and Dr. Harini Amarasuriya.

The contentious issue at hand is whether the Finance Ministry placed an order for SVUs for MPs without asking the consent of all members of Parliament, representing 15 recognized political parties?

Media Minister and co-Cabinet spokesperson Keheliya Rambukwella is on record as having said that though the Prime Minister’s Office announced the cancellation of the 399 vehicle order, against the backdrop of financial difficulties caused by the Covid-19 pandemic, the government may not be able to do so because Letters of Credit had already been opened. Amidst the growing public anger over the squandering of public funds to acquire luxury vehicles for MPs, Minister Rambukwella, on June 11, declared that the Finance Ministry, and other parties to the Rs 3.7 bn transaction, following successful negotiations, has cancelled the vehicles for lawmakers.

It would be pertinent to mention that the Prime Minister’s Office on May 20 indicated the impending fuel price hike. A statement issued by the Prime Minister’s Office said that the government was seriously concerned about the rising price of crude oil in the world market from 2020 and an upward revision was imminent.

However, what really stunned the public was General Secretary of the SLPP Attorney-at-Law Sagara Kariyawasam questioning the fuel price hike. National List MP Kariyawasam asked whether the unexpected increase was meant to undermine the SLPP administration. The MP faulted Energy Minister Gammanpila for the situation.

Hiru presenter Chamuditha Samarawickrema last Sunday (13) ridiculed lawmaker Kariyawasam’s declaration. Samarawickrema, who had been recently embroiled in a controversy over make-up artist Chandimal Jayasinghe and Public Security Minister, retired Rear Admiral Sarath Weerasekera, having functions at the Shangri-La hotel, on May 30 and May 28, respectively urged MP Kariyawasam not to stage dramas.

The Hiru anchor questioned Kariyawasam’s accusation that Minister Gammanpila did so to cause trouble for the government.

The government obviously is in deep trouble. It should explain why such expensive SUVs were ordered for lawmakers, in May, against the backdrop of the rapid deterioration of the nation’s financial position. The country got to know of the despicable decision to place an order for SVUs only after the Prime Minister’s Office through a public announcement claimed to have cancelled in the fourth week of May.

 

CPC saves USD 300 mn

COPE, PAC and COPF proceedings, since the last general election, revealed waste, corruption, irregularities and negligence. Inquiries that had dealt with public sector enterprises over the past two decades, exposed public-private sector partnerships in utterly wasteful and corrupt practices. So much so that today’s financial crisis cannot be examined without taking into consideration extremely poor management of state enterprises, and public and private sector cooperation, at the high level, to rob the country. Two such glaring examples are the Treasury bond scams, perpetrated in 2015 and 2016, by the Yahapalana administration, and the massive sugar tax scam, carried out by the SLPP. The JVP is on record as having alleged that the sugar tax scam is far worse than even the Treasury bond scams. The high profile sugar scam couldn’t have been executed without the issuance of gazette bearing No 2197/12 dated Oct 13, 2020 by the Finance Ministry. That resulted in the immediate replacement of Rs 50 duty on a kilo of imported sugar with a mere 25 cents. In spite of COPF Chairman lawmaker Anura Priyadarshana Yapa’s declaration, on January 05, 2021 that the consumers didn’t benefit at all from duty reduction the government has conveniently forgotten the matter. The SLPP should be ashamed of its role in such corrupt practices.

Perusal of proceedings of COPE, COPA and COPF underscored those in political authority as well as officials who ruined the national economy. As the writer mentioned before, the ruination of SriLankan Airlines is just one example. Both the SLFP and the UNP ruined the national carrier in style is certainly nothing to be surprised about. They dealt with all state sector enterprises in a similar way. The way procedures have been manipulated to rob the country is another story. Proceedings in respect of procurement of coal required by Norochcholai revealed unprecedented corruption. But, absolutely nothing has been done. No action whatsoever has been taken against corrupt elements, though shocking revelations have been made in Parliament.

Would you believe the statements issued by the Prime Minister’s Office and Energy Minister Gammanpila, as regards the status of crude oil prices, were contradictory? However, the Communication Department of Parliament recently revealed that the CPC saved USD 300 mn in 2020 due to the drop in crude oil prices in the world market as well as some other factors. This came to light during COPE proceedings, thanks to a query raised by SJB member S.M. Marikkar.