Thursday 21 July 2022

Economic meltdown: Prez takes refuge overseas, ‘advisors’ face legal action

SPECIAL REPORT : Part 427

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Gotabaya Rajapaksa meets Narendra Modi in late Nov 2019 during his first and only state visit after winning the 2019 presidential election with an overwhlming majority

The US denied visa to Narendra Modi in 2005 over his alleged role in murderous rampage in Gujarat three years earlier during his tenure as the Chief Minister of the important Indian state. The US declared Modi would never be issued a visa. The US gradually changed its position as Modi, over the years emerged as the new power. Having won the parliamentary election in May of 2014, Narendra Modi visited Washington in Sept 2014, where he met then US president Barack Obama. The visit received public attention as this was the Indian leader’s first since the US denied him a diplomatic visa to the US for his alleged complicity in 2002 Godhra riots in 2005. Since becoming the Premier, Modi has visited the US seven times. The US response to Modi’s accountability reflects the Superpower’s thinking. Their political, security and economic interests supersedes any other issue. That applies to all major powers. India and China no exceptions.

By Shamindra Ferdinando

India has firmly denied having played any role in facilitating the hasty forced departure, or travel, of 73-year-old former President Gotabaya Rajapaksa from Sri Lanka.

The Indian High Commission said so in a statement issued on July 15 in the wake of Gotabaya Rajapaksa arriving in Singapore, his second stop after initially taking refuge in the Maldives. Based on remarks made by the Spokesperson, Ministry of External Affairs in New Delhi on the previous day, the Indian HC denied coming to the rescue of Gotabaya Rajapaksa.

It would be pertinent to mention that at the time of the forced departure from Sri Lanka, with violent mobs pursuing him, Gotabaya Rajapaksa remained the President and resigned only after reaching Singapore. Therefore, India’s denial that it didn’t have any role in facilitating the departure or travel of former President Gotabaya Rajapaksa from Sri Lanka is questionable. Did New Delhi turn down Colombo’s request to facilitate then President Gotabaya Rajapaksa’s departure? If Sri Lanka didn’t ask India to make way for President Gotabaya Rajapaksa and his wife, Iyoma, what made the Indian External Affairs Ministry to categorically deny facilitating the first family’s departure? Perhaps, both capitals should set the record straight.

Still licking its wounds from the aftermath of the forced Indo-Lanka Accord of July 1987 and the disastrous intervention by the Indian Peace Keeping Force here, perhaps for New Delhi it’s a case of the proverbial once bitten twice shy with Pol Pots here who are generating hysteria in the name of Sri Lankan people’s welfare .

Having comfortably won the last presidential election in Nov 2019, Gotabaya Rajapaksa undertook only one state visit before his unceremonious departure from the country. That state visit was to New Delhi, where Gotabaya Rajapaksa met the top Indian leadership. The media quoted Indian President Ram Nath Kovind as having told President Gotabaya Rajapaksa the first official foreign tour marked a new chapter in the historic relationship between the two countries.

The two-day visit took place in the last week of November 2019, soon after the President thwarted shameless Swiss Embassy mission here to derail his presidency. In spite of heavy Western pressure, President Gotabaya Rajapaksa stood his ground and overcame the well-planned diplomatic plot. An effort to evacuate a Swiss Embassy local employee on a trumped up claim of her having been a victim of abduction and molestation by government security personnel was made while the President was in New Delhi.

Swiss authorities ended up with egg on their face as unsubstantiated allegations were proved false. Actually that had been the first major challenge faced by Gotabaya Rajapaksa just days after he won the presidency with an overwhelming majority.

The stage managed incident by the Swiss Embassy here should have been a forewarning to the government of what was in store for them from the West for crushing the terrorist LTTE in the battlefield against their wishes.

A special banquet was held at the Rashtrapati Bhavan in New Delhi in honour of President Gotabaya Rajapaksa on the evening of Nov 29, 2019. Indian President Ram Nath Kovind, President Gotabaya Rajapaksa, MPs and Ministers of the Indian Government and members of the Sri Lankan delegation had been among the guests.

Indian Prime Minister Narendra Modi presented a photograph to President Gotabaya Rajapaksa when they met in Hyderabad. The photograph was of President Gotabaya Rajapaksa, during his military training in India. Former Indian Commander and current Minister V.K. Singh and Nigerian President are among those in the picture.

India’s decision not to get involved in the evacuation of President Gotabaya Rajapaksa despite being the preeminent regional power is understandable. That decision should be examined against the backdrop of the US turning down President Gotabaya Rajapaksa and that of his wife’s request for visas. Quad members, the US and India wouldn’t contribute to a situation that may undermine their relationship with those responsible for the overthrowing of the Rajapaksa administration.

The corporate mafia controlled Western media right across has also been in the vanguard of painting Gotabaya as an outright villain, especially telling the world what a luxury lifestyle he led while the people suffered immeasurably, showing the opulence of the presidential palace. In actual fact Gotabaya Rajapaksa hardly ever used any of the official facilities, including massive security contingents, unlike his predecessors, whose motorcades of over a dozen vehicles, even included an ambulance. He actually lived in his modest private home at Pangiriwatte, Mirihana, till a massive violent mob tried to storm it on March 31. In fact it was Daham, the son of previous President Maithripala Sirisena who partied at the Presidential palace with his friends after he was banned by his father from visiting night clubs following a violent incident in one such club during the early days of Sirisena’s presidency.

Both the US and India are concerned about the growing public movement in the wake of the overthrowing of President Gotabaya Rajapaksa. The status of Japan and Australia (two other Quad members) relations/role in Sri Lanka are somewhat different from that of India and the US. However, that grouping appeared to be of the view that saving the first family wouldn’t under any circumstances be helpful to their strategy meant to contain the Chinese influence here.

The bottom line is major powers cannot be expected to undertake a missions at the expense of their own vile interests. It would be a grave mistake on the part of the previous Sri Lankan leadership to believe India’s ‘Neighbourhood First’ policy as well as the SAGAR (Security and Growth for All in the Region) meant to rescue political leaders.

The US certainly encouraged the public protest campaign against the Rajapaksas. Lawmaker Wimal Weerawansa declared in Parliament how US Ambassador Julie Chung intervened on behalf of protesters when the then government planned to forcibly remove them. But, external interventions wouldn’t have succeeded if not for President Gotabaya Rajapaksa’s stubbornness coupled with unforeseen external factors ruined the economy by adamantly sticking to ill-advised foolish decisions till it was too late, especially the decision to do away with some vital taxes and not reversing it when it was obvious to everyone that Sri Lanka could ill afford it while especially battling a pandemic.

Ill-fated decisions

President Gotabaya Rajapaksa’s administration contributed to his downfall. There is no point in denying the fact a spate of wrong decisions, some taken by the then President’s economic advisors as alleged by members of Parliament as well as Governor of the Central Bank Dr. Nandalal Weerasinghe and members of the Monetary Board Dr. Ranee Jayamaha and Sanjiva Jayawardena, PC, and disclosures made by Secretary to the Treasury Mahinda Siriwardana before the Committee on Public Enterprises (COPE) and the Committee on Public Finance (COPF).

Ali Sabry, PC, in an interview with Swarnavahni declared that the Secretary to the Treasury, Governor of the Central Bank, and senior economic advisors to the President, misled the Cabinet of Ministers as regards the economic situation. The President heads the Cabinet.

Sabry explained how the Secretary to the Treasury, Governor of the Central Bank, and senior economic advisors to the President frequently assured that the situation was well under control in spite of difficulties. According to Sabry, that team expressed confidence that issues at hand could be successfully dealt with.

Possibly they were right if a solid friend like China, who helped us immensely in the past as during the height of the war and thereafter had not distanced from us at the worst possible time. That may have been caused by Finance Minister and Rajapaksa sibling Basil, a dual citizen of US and Sri Lanka sailing Lankan ship of state increasingly towards the West like through the highly questionable Yugadanavi deal hastily and secretly concluded at midnight, with much of the government in the dark.

Sabry said so in a live interview, the first since his return from Washington, where he led the government delegation at talks with the International Monetary Fund (IMF) and the World Bank.

By the time, the Cabinet-of-Ministers realized the gravity of the situation in August 2021, it was too late.

When the Central Bank floated the rupee in March this year even without bothering to inform the Cabinet-of-Ministers of its decision, irreparable damage had already been caused. No one has challenged Sabry so far over his controversial declarations.

Sabry alleged that those who managed the national economy prevented the country seeking IMF’s intervention well over a year back. Had President Gotabaya Rajapaksa and the Cabinet-of-Ministers received proper advice, Sri Lanka would not have been in the current predicament, lawmaker Sabry asserted.

Sabry is one former Minister the whole country can be proud of for having no parochial baggage, with his sole aim being to serve the country with honour to the best of his ability.

Prof. W.A.D. Lakshman (Dec 2019-Sept 2021) and Ajith Nivard Cabraal (Sept 2021-March 2022) served as Governors of CBSL, S.R. Attygalle was the Secretary, Ministry of Finance (Nov 2019-April 2022) whereas another veteran Central Banker Dr. P. B. Jayasundera functioned as Secretary to the President (Nov 2019-Dec 2021). Jayasundera showed his metal as the Treasury Secretary at the height of the war, by essentially keeping the economy humming with hardly any assistance from outside other than from China with various project funding. Because of sensitivities in South India, New Delhi essentially played a hands-off role.

COPE and COPF proceedings confirmed Sabry’s claims. Therefore, there cannot be any ambiguity over the circumstances leading to the massive explosion of public anger at the then President Gotabaya Rajapaksa’s private residence at Pangiriwatta, Mirihana, on the night of March 31. The disclosure of the abolition of a spate of taxes, including PAYE (Pay as You Earn) should be fully investigated and the culprits named. Unfortunately, even on fateful March 31, hours before large crowds converged near the President’s private residence, the President believed the situation was well under control.

Discussions with state media heads including print, electronic, President’s Media Division as well as the Information Department at the President’s private residence didn’t result in tangible action. By then Presidential Spokesperson Kingsley Ratnayake has taken two weeks leave and was overseas while the then Director General of Presidential Media Sudeva Hettiarachchi attended the meeting.

Essentially, President Gotabaya Rajapaksa felt that the issues could be addressed, though disruption of fuel, gas and electricity supply caused unprecedented pressure. Obviously no one dared to stress the need for immediate remedial measures. Sudeva Hettiarachchi resigned on July 04 in the wake of the protesters vowing to storm the President’s House. He returned to Swarnawahini where he covered the overthrowing of the Gotabaya Rajapaksa administration. Veteran Sirasa personality Kingsley Ratnayake and Sudeva Hettiarachchi received their appointments in late April 2021 at a time the economic situation was turning for the worse.

Instead of addressing the issues at hand, the government played politics. Basil Rajapaksa was brought in July 2021 to Parliament on the National List and made the Finance Minister. A few months later, State Finance Minister Ajith Nivard Cabraal quit his National List seat in parliament to succeed Prof. W.D. Lakshman as the Governor of the Central Bank. The Pohottuwa party then brought back Jayantha Ketagoda into Parliament to fill the vacancy created by Cabraal’s resignation. Ketagoda earlier resigned his National List seat to pave the way for Basil Rajapaksa to re-enter Parliament. Basil Rajapaksa gave the leadership to the operation that allowed finalization of Yugadanavi deal in Sept 2021. The role played by the disgraced M.M.C. Ferdinando in his capacity as the CEB Chairman highlighted how those elected by the people conducted affairs of the state.

The utterly controversial Yugadanavi deal has caused irreparable damage to the SLPP’s relationship with its constituents. President Rajapaksa quite wrongly believed the crisis could be addressed by reshuffling the Cabinet of Ministers and perhaps major calamity could have been averted if he prevented the then Prime Minister Mahinda Rajapaksa from bringing in several thousands of supporters to Temple Trees for his ostensible farewell.

The May 09 Temple Trees ‘operation’ escalated the situation. The collapse of Gotabaya Rajapaksa’s presidency exactly two months later underscored the failure on the part of those in authority to address the threat on the economic front at an early phase of the crisis.

Dr. Nandalal didn’t mince his words before the COPE when he named Dr. PBJ as the one who prevented the country reaching a consensus with the IMF in early 2020. The central banker explained the responsibility of various persons to varying degrees, including the then Finance Minister Mahinda Rajapaksa for the economic meltdown.

The Supreme Court has been moved against those who caused the financial meltdown. The Bar Association of Sri Lanka is among the petitioners. Let us wait for the developments on the legal front.

The Pohottuwa party didn’t take notice of what was going on. The aging and beleaguered Pohottuwa leadership should be ashamed of its failure at least to address accountability issues in spite of fully exploiting the Geneva challenge at the presidential and parliamentary polls.

Why did the US decline to issue visas to the then President and his wife? Did the US now want to include Gotabaya Rajapaksa in its list of those categorized as human rights violators? The US has already categorized Field Marshal Sarath Fonseka and General Shavendra Silva, Chief of Defence Staff and the first General Officer Commanding (GOC) of the celebrated 58 Division

Udaya Perera’s dilemma

The humiliation suffered by President Gotabaya Rajapaksa, should be examined taking into consideration Maj. Gen. Udaya Perera’s plight in the hands of the Americans. The government didn’t really take notice of the incident at the BIA. In early Dec last year, the US categorized Maj. Gen. Udaya Perera, formerly Sri Lanka’s Deputy High Commissioner in Malaysia (2009-2011) as a war crimes suspect.

The US denied the wartime Director of Operations permission to enter the US though he had a five-year multiple entry visas issued in August 2019. The retired General received the US abrupt about turn as he along with his wife and his teenage son proceeded to the immigration counter to board the Colombo-Singapore SIA flight.

Maj. Gen. Perera has successfully followed top military courses in NDU (National Defence University in 2004) and USAWC (United States Army War College in 2012) and is a frequent traveller.

Having cleared the Perera family, the Singaporean Airline staff at BIA told him that they had received an alert from US authorities.

From Singapore, they were to fly to Los Angeles. Maj. Gen. Perera stayed back while his wife and son went ahead with the planned visit. The General and his wife were to see their first granddaughter born in California.

Having retired in 2017, Perera has received a multiple entry visa two years later. The Maj. Gen. had previously even attended his daughter’s wedding there in Sept. 2019.

The US made its move several weeks after inducting former Army Commander General Mahesh Senanayake into the United States Army Command and General Staff College (CGSC) International Hall of Fame at Fort Leavenworth. An alumnus of CGSC, Senanayake, who contested the 2019 presidential election has been conferred this honour in recognition of his “outstanding military leadership for the nation and commitment to preserving global peace. “

 About a week after blocking Maj. Gen. Perera, the US included two other Sri Lankan military personnel in a list of officials prohibited to enter the US under Section 7031(c) of the Department of State, Foreign Operations, and Related Programmes Appropriation Act, 2021. The following is the relevant section of the US embassy statement:

• Chandana Hettiarachchi, a Sri Lankan naval intelligence officer, for his involvement in gross violations of human rights, namely, the flagrant denial of the right to liberty of at least eight “Trincomalee 11″ victims, from 2008 to 2009. Sunil Ratnayake, a former Staff Sergeant in the Sri Lanka Army, for his involvement in gross violations of human rights, namely the extrajudicial killings of at least eight Tamil villagers in December 2000. The designation of these two Sri Lankan individuals is not the only action we are taking in support of accountability for gross violations of human rights in Sri Lanka.”

However, the US Embassy statement that dealt with the inclusion of two personnel conveniently refrained from making any reference to Maj. Gen. Udaya Perera.

Actually, separate parliamentary select committees should be appointed to investigate (i) events leading to the ruination of economy with a view to identify them and (ii) Sri Lanka’s response to the Geneva challenge. The circumstances that led Gotabaya Rajapaksa, who survived an LTTE suicide attack in early Dec 2006, to flee the country underscored the need for a deeper examination of Sri Lanka’s economy.