SLC, cryptocurrency and repealing of time-tested law

 SPECIAL REPORT : Part 485

Published

  2023/08/30

A smiling President Wickremesinghe listens to Pakistan’s great fast bowler of yesteryear Wasim Akram at the LPL 2023 final played at the R. Premadasa Stadium under lights. SLC Chief Shammi Silva sits extreme left. Minister Harin Fernando sits next to Silva. Extreme right is Sagala Ratnayake. Well informed sources say utterly corrupt elements seeking to take control of the SLC are believed to be involved in a campaign to discredit the current administration. (Pic courtesy PMD)

By Shamindra Ferdinando

Justice Minister Dr. Wijeyadasa Rajapakse, PC, declared in Parliament that the winners of LPL (Lanka Premier League) 2023 B-Love Kandy had been sponsored by an enterprise that was banned in the country.

The statement was made in Parliament on 24th August. The one-time President of the Bar Association found fault with SLC (Sri Lanka Cricket) for involving B-Love Network banned here over promoting cryptocurrency.

Unfortunately, by the time the Justice Minister made the declaration President Ranil Wickremesinghe had attended the final of the LPL 2023 at the R. Premadasa Stadium on Sunday (20 Aug.). The President was accompanied by Tourism and Lands Minister Harin Fernando and Senior Advisor on National Security Sagala Ratnayake.

Among those present were senior SLC officials, including President of the Board Shammi Silva, under investigation by the National Audit Office (NAO) over extravagant spending of over Rs 67 million by the SLC for its officials, family members and friends to watch the T20 World Cup tournament played in Australia (Oct. 09-Nov. 13, 2022) and a spate of other allegations.

In the absence of Wanindu Hasaranga, Angelo Mathews led B-Love Kandy to victory over Dambulla Aura, led by Kusal Mendis.

Dr. Rajapakse told The Island that he firmly stood by what he said in Parliament regarding the LPL being a gambling den. All those who had been involved in gambling/betting, as well as promoting cryptocurrency, but accommodated in LPL, were named in Parliament, and it would be the responsibility of the powers that be to take tangible measures against the SLC, the one-time Chairman of the Committee on Public Enterprises (COPE) stressed.

“I was also invited to witness the final but didn’t attend for obvious reasons,” Minister Rajapakse said, adding that “the LPL 2023 should be thoroughly investigated, particularly against the backdrop of the NAO investigation.” The Minister recalled the SLC fared very badly before the parliamentary watchdog committee over a period of time.

However, to be fair by the sponsor, it would be pertinent to mention that Kamal Faridi, the CEO of B-Love Kandy, in an exclusive interview with Ada Derana, posted on 24 July, 2023, quite clearly referred to their role in promoting cryptocurrency.

When asked to describe the B-Love network, Faridi declared: “B-Love Network is a community of people who hold crypto coins. They are one of the main sponsors of the Kandy team and are passionate about sports and cricket.”

Faridi said that they secured the franchise of the Kandy team for a period of 10 years. The top spokesperson is on record as having said that they bought the most expensive team in the LPL without negotiations. Financier Omar Khan is the owner of B-Love Kandy, formerly Kandy Falcons, Kandy Warriors and Kandy Tuskers. B-Love Kandy is coached by legendary Pakistan cricketer Javed Miandad whereas other big names included Wasim Akram.

The Justice Minister said that the SLC owed an explanation. Sports Minister Roshan Ranasinghe couldn’t absolve himself of responsibility by simply declaring that he was not consulted by the SLC. The Minister should inquire into this matter without further delay. The Central Bank and the Monetary Board, too, should look into the issues at hand as a bankrupt country couldn’t continue to flout laws of the land.

It must be noted that the Central Bank daylight robberies that were staged as far back as 2015/16 have yet to be resolved and one of the chief architects of that robbery continues to be shielded by Singapore, even though he is a top fugitive here, but those at the highest echelons of the present regime continue to run to that city state at the drop of a hat for “consultations”. Mind you the same city state also tried to dump all its garbage here during that notorious Yahapalana regime. And there wasn’t a hum from our NGO quislings.

The disclosure of the SLC’s alliance with such enterprises would definitely attract the attention of the International Cricket Council (ICC), the Justice Minister stressed, pointing out that in terms of the recently passed Anti-Corruption law the SLC matter could be dealt with.

Lawmaker Rajapakse made a devastating attack on the SLC during the debate on NAO’s draft report on the 2022 tour of Australia. Interestingly, in spite of a prohibition order obtained from the Colombo District Court by SLC against SJB lawmaker Hesha Withana discussing the issue, the Opposition MP, however, flayed the cricket administration, using his parliamentary privilege. The Ratnapura District MP repeated allegations, based on the NAO report, regardless of the court directive, but the position taken by the Justice Minister astonished all. Such accusations couldn’t have been at a worse time for the SLC, under heavy fire over waste, corruption, irregularities and mismanagement at a time the country is experiencing severe economic difficulties.

A major controversy erupted during the opening ceremony of the LPL 2023 tournament when versatile singer Umara Sinhawansha distorted the national anthem. How much was Ms. Sinhawansha paid by SLC for her rendition of the national anthem? That, too, would come up for discussion once the LPL 2023 is subjected to a state audit.

However, the Justice Minister’s allegations are even far more damaging than the NAO report revelations as the former come under the purview of the Anti-Corruption Act.

Repealing of a time-tested Act

Who wanted to repeal Exchange Control Act No 24 of 1953? Did repealing that time-tested Act contribute to the collapse of the national economy in 2022? Dr. Wijeyadasa Rajapakse’s repeated accusations regarding the repealing of the 1953 Exchange Control Act should be thoroughly investigated as the President’s Counsel, too, had been a member of the Yahapalana government that enacted Foreign Exchange Act No 12 of 2017 at the expense of the 1953 law. The Justice Minister, in an interview with Hiru, a week ago, claimed that taking advantage of the law exporters have parked as much as USD 100 bn abroad while the country continued to struggle to meet its basic commitments.

It would be pertinent to discuss the circumstances under which the Yahapalana administration enacted the Foreign Exchange Act No 12 of 2017. In May 2017, the then President Maithripala Sirisena and Premier Ranil Wickremesinghe agreed on a mini-Cabinet reshuffle in the wake of two Treasury bond scams perpetrated in February 2015 and March 2016. Nine Cabinet Ministers and one State Minister were re-allocated fresh ministerial portfolios on the morning of 22 May, 2017. The most important and far- reaching decision in the reshuffle was the key exchange of portfolios between Finance Minister Ravi Karunanayake and Foreign Affairs Minister Mangala Samaraweera. Karunanayake received Foreign Affairs while Samaraweera got the Finance portfolio. In addition to Finance, Mangala Samaraweera received the Media Ministry. Within four months, Karunanayake resigned over corruption charges in respect of the bond scams.

It was the late Mangala Samaraweera who served as the Finance Minister when the Yahapalana government enacted the now controversial Finance Act of 2017 on 25 July, 2017. Of the 225-member Parliament, 94 voted for the Bill presented by Premier Ranil Wickremesinghe, whereas 18 voted against. A staggering 113 MPs skipped the vote. Among those who voted for the Bill were current members of the SJB. The SJB was formed by a breakaway faction of the UNP, in early 2020. Kabir Hashim and Dr. Harsha de Silva, members of the SJB economic team, were among those who voted for the Bill. Karu Jayasuriya, in his capacity as the Speaker, endorsed the Act.

In addition to safeguarding those who parked money overseas, the new law facilitated money laundering operations. In the 1953 Act section 23 regularized the foreign exchange transfers. That particular section dealt with those who sent money overseas but didn’t receive goods in terms of that transaction. But, the 2017 law conveniently omitted that. The writer intends to submit a RTI query to Parliament seeking the list of MPs who voted for the 2017 Foreign Exchange Act.

The UNP and SJB owed an explanation regarding the allegations made by Justice Minister Rajapakse. Dr. Rajapakse, too, should explain why he waited so long to raise his voice against the 2017 Exchange Control Act. The then Premier Wickremesinghe who presented that damaging Bill is the President now. The UNP leader also holds several other portfolios, including Finance and Defence. At the time the new law was brought in, Dr. Indrajith Coomaraswamy served as the Governor of the Central Bank, though the government didn’t consult him as regards the new law.

Several months ago, rebel SLPP lawmakers, Vasudeva Nanayakkara, Wimal Weerawansa and Udaya Gammanpila raised the grave injustice caused to the country by the highly questionable Act passed in 2017. Dr. Rajapakse, too, discussed this matter, both in and outside Parliament, several months ago. But, so far, the government hasn’t responded to the accusations pertaining to the 2017 Foreign Exchange Act. In responding to The Island query, Dr. Rajapakse said that he offered assistance to the relevant authorities to amend the law but didn’t receive the anticipated response. The bottom line is that the Parliament enacted an Act at the expense of overall national security and stability.

Shocking revelation at PSC

The Parliamentary Select Committee, assigned to investigate the 2019 Easter Sunday carnage, raised the Foreign Exchange Control Act of 2017, with the Central Bank, on 26 July, 2019. The CBSL team comprised the Governor of the Central Bank, Indrajit Coomaraswamy, Director of Financial Intelligence Unit, D.M. Rupasinghe, and Director of the Department of Supervision of Non-Bank Financial Institutions R.R. Jayaratne. Rupasinghe testified in-camera on a request made by Dr. Coomaraswamy. Dr. Coomaraswamy succeeded disgraced Singaporean, Arjuna Mahendran, in early July, 2016.

The CBSL set the record straight in response to then Power, Energy and Business Development Minister Ravi Karunanayake’s challenge. PSC member Karunanayake strongly countered CBSL condemnation of the Foreign Exchange Act of 2017. Commenting on funds received by the Batticaloa Campus Limited and the Heera Foundation from Saudi Arabia on seven and 15 occasions, respectively, the CBSL stressed that the new Act weakened the CBSL regulatory role, vis-a-vis illegal transactions. Those institutions were under investigations as regards the 2019 Easter Sunday attacks due to their links with the National Thowheed Jamaat (NTJ), blamed for those devastating attacks.

The PSC proceedings showed how politicians caused irreparable damage through unilateral actions. Ravi Karunanayake, who had been again brought back to the Cabinet, after the failed constitutional coup, in late 2018, clashed with the Central Bank over the enactment of the new law. The CBSL took an unwavering stand that the new law impeded its regulatory powers thereby facilitating illegal transactions.

Ravi Karunanayake (RK): Where does it say such transactions cannot be inquired into in terms of the new Act?

CBSL: In accordance with 2017 Exchange Control Act, Section 30, action cannot be taken.

RK: You prepared that Act. Why are you pretending as if you don’t know anything about it? CBSL amended it several times and sent it back.

Director of the Department of Supervision of Non-Bank Financial Institutions R.R. Jayaratne could have faced a ministerial onslaught if not for Dr. Coomaraswamy’s swift intervention. Had Dr. Coomaraswamy opted to remain silent, Jayaratne, probably would have had to suffer in silence unable to talk back to a powerful Minister

Dr. Coomaraswamy: No Sir. The Act actually was not drafted by us.

RK: Why not?

Dr. Coomaraswamy: No Sir. It was done outside. We were actually very upset about it. We were not included. That was drafted without the CBSL being involved. We were asked to comment on it

JVP MP Dr. Nalinda Jayatissa: If the Batticaloa Campus last received money in 2017, Hizbullah was aware of the new Act being drafted.

CBSL: Yes.

Nalinda Jayatissa: It could have happened.

CBSL: Present Act does not at least interpret what it meant by wrong. Unauthorized money transactions were taking place all over the country. Foreign currencies are kept illegally. Transactions do not come into the official banking system, not even one USD.

The exchange between Ravi Karunanayake and the CBSL erupted when lawmaker Ashu Marasinghe sought a clarification as regards the difference in the current and the previous Exchange Control Acts. The then Chairman of the Public Finance Committee M.A. Sumanthiran remained silent during the exchange between Ravi Karunanayake and the CBSL.

The circumstances of the Exchange Control Act that had been introduced was disputed by no less a person than the CBSL Governor. It would be pertinent to recall the advice given by Dr. Coomaraswamy to the electorate late 2018. Dr. Coomaraswamy issued the advice before President Maithripala Sirisena dissolved Parliament at midnight on 09 Nov., 2018, following the sacking of Premier Ranil Wickremesinghe.

Dr. Coomaraswamy’s statement, made before the Presidential Commission of Inquiry (PCol) on irregularities at SriLankan Airlines, SriLankan Catering and Mihin Lanka is relevant as Sri Lanka struggles to navigate difficulties. Dr. Coomaraswamy told the PCol that the country was facing a non-virtuous cycle of debt and it was a very fragile situation which could even lead to a debt crisis. “Of course my colleagues in the Debt Department have plans and capability to manage it. But it’s the duty of every citizen to act responsibly as regards the government policy,” he told the PCol. Dr. Coomaraswamy emphasized that people should elect MPs who were prudent enough to handle fiscal and monetary matters of the country. “I am not referring to any government, but it’s been the case ever since independence.”

In spite of knowing that the Exchange Control Act of 2017 is seriously flawed, political parties have done nothing so far to bring forth remedial measures, especially by those now wielding power. Perhaps the Committee on Public Finance should inquire into this. The Parliament should be ashamed of its failure to address this issue.

Lapses on the part of Parliament

The pathetic failure on the part of Parliament to deal with gold smuggling MP Ali Sabry Raheem (Puttalam District MP representing the Muslim National Alliance), for over five months, underscored the crisis the country is experiencing. Many an eyebrow was raised when the disgraced MP Raheem attended a meeting, chaired by President Ranil Wickremesinghe at the Presidential Secretariat,where ways and means of strengthening the gem and jewellery industry was discussed. Raheem was there as a member of the Sectoral Monitoring Committee on Environment, Natural Resources and Sustainable Development.

The Parliament owed an explanation why it couldn’t take action against the offending MP. The All Ceylon Makkal Congress (ACMC) that fielded Raheem on the MNA ticket, too, should be held responsible. The first time entrant, who was fined much less than any other offender after being caught with 3.3 kgs of gold and 91 smartphones valued at Rs. 74 mn and Rs. 4.2 mn, respectively, in late March this year, caused quite a stir when he voted in Parliament immediately after the disgraceful incident.

The President’s Office obviously failed in its basic responsibilities by inviting the culprit for a meeting with the President. But, the President’s appearance at the LPL final stressed that the ongoing controversy over massive financial irregularities didn’t matter at all. The question that must be popping up in the heads of most Lankans is are we being governed by baby faced bandits. Political party system continues to emphasize that regardless of whatever transgression, alleged wrongdoers can continue with impunity. There cannot be a better example to prove the shoddy way Parliament addressed issues of utmost importance than the gold smuggling’s MP’s affair.

The recent call by the Leader of the House Susil Premjayantha to summon MP Raheem before the parliamentary ethics committee, over five months after the incident at the BIA, must be nothing but another bid to side-step the issue.

Does SF’s unexpected move portend confrontation?

  SPECIAL REPORT : Part 484

Published

  2023/08/23

Sarath Fonseka

During a violent protest campaign to oust President Gotabaya Rajapaksa last year, Field Marshal Sarath Fonseka threw his weight behind the project. Fonseka was the only parliamentarian allowed to address large crowds as they gathered near the President’s House on the morning of 09 July, 2022. The Field Marshal didn’t mince his words when he urged the military not to crack down on violent public protests, obviously staged by outside forces with financial and other resources, to oust the then government. Overwhelmed by the massive gathering, the Army quietly abandoned the President’s House, paving the way for Ranil Wickremesinghe’s succession, on whose orders the military then swiftly cleared the President’s House, Presidential Secretariat and other government buildings. Now Sarath Fonseka wants to take on the Wickremesinghe-Rajapaksa government. The People’s Revolution is meant to inspire a countrywide protest campaign. But the task seems difficult in the absence of an environment conducive for such a project without the clandestine backing of outside elements.

By Shamindra Ferdinando

Field Marshal Sarath Fonseka, MP, recently declared his intention to chart a new political course amidst continuing turmoil in the Opposition. The war-winning Army Chief, 72, on 11 August, launched a campaign of his own, at the expense of the main Opposition Samagi Jana Balawegaya (SJB), as further differences emerged in the breakaway UNP faction. How could Gampaha District SJB lawmaker Fonseka, the current Chairman of the party, initiate a protest campaign, dubbed ‘People’s Revolution,’ targeting waste, corruption, irregularities and mismanagement?

The Sinha Regiment veteran declared that the national economy couldn’t be restored, under any circumstances, unless the utterly corrupt governance system was done away with.

The protest, held outside Viharamahadevi Park, drew a mixed crowd. The deployment of a sizable police contingent, backed by anti-riot squads and water cannons, was meant as a warning sign not to test the government’s will. The writer quite comfortably felt that the protesting group didn’t have the intention of blocking the road, or marching on any government building. Some displayed placards demanding proper implementation of the ‘Aswesuma’ social security scheme, leave EPF and ETF out of the debt-restructuring process, and media freedom.

The former Yahapalana minister Fonseka seemed alone in that crowd in the absence of any other known face. The SJB Chairman appeared to have lost faith in his own party, struggling to counter President Ranil Wickremesinghe. Regardless of his own party being reduced to just one National List slot (Wajira Abeywardena) at the last parliamentary election, Wickremesinghe has managed to consolidate his position in Parliament.

MP Fonseka’s move should be examined taking into consideration the presidential election due next year. Would parliamentarian Fonseka consider himself as a candidate at the next presidential election? Having served as Regional Development, as well as Minister of Wildlife and Sustainable Development, during the Yahapalana administration (January 2015-November 2019), is he really interested in another go at the presidency. Or will it be used as a bargaining chip to join the increasingly confident possible UNP-SLPP future government. Remember the old adage there are no permanent friends or permanent enemies in politics. Garadihewa, as his name denotes, is from a true warrior stock, and, with a sixth sense in battle, he no doubt proved his mettle by leading the fight to defeat the world’s most ruthless terror outfit against the advice of all pundits, and carried out the war even after the Tigers nearly killed him in his own den with a suicide bomber, who inflicted life threatening injuries on him.

In our humble opinion, may be Fonseka should have quit when he was far ahead with an almost unblemished record as a General. Now this once true lion, having jumped headlong into the political cesspit, is no longer fighting brave tigers, but many more two legged hyenas, jackals and whatnot.

Similarly, see what has happened to our erstwhile cunning comrades in the JVP, FSP and their trade union cabal. Remember they were ready to lay down their lives for the country, but are now more like kittens as if on cue from Uncle Sam, despite New Delhi and Washington clearly running roughshod over us. Even Comrade Kumar Gunaratnam seems to be enjoying the best of both worlds in Australia and Sri Lanka. We should not also forget the NGO quislings, who clearly know on which side their bread is buttered.

The protest at Viharamahadevi Park gravely underscored the war veteran’s dissatisfaction at the way the SJB is addressing the burning issues. The brief but fiery speech delivered there meant that he didn’t have faith in the top management of the party. It would be pertinent to mention that in the run-up to the last presidential election, in 2019, Fonseka, on numerous occasions, declared that he was prepared to contest that election if Ranil Wickremesinghe was not in the race. Then Speaker Karu Jayasuriya, too, indicated his desire and was chosen by a group of academics as the best challenger to SLPP candidate Gotabaya Rajapaksa. But MP Fonseka’s overtures were ignored. Maybe Fonseka felt he could contest the presidential poll.

Gardihewa Sarath Chandralal Fonseka contested the January 2010 presidential election as the common candidate. Having spearheaded the Army-led all-out offensive to defeat Tiger terrorism, during a three-year-long campaign, backed by the Navy and Air Force, Fonseka declared his intention to contest the first national level election, after Sri Lanka’s triumph over the LTTE, in May 2009. Fonseka had the backing of a US-led coalition that consisted of the UNP, TNA, JVP and the SLMC. There hadn’t been a previous instance of the UNP and JVP forming a political alliance. In their haste to bring the Rajapaksa presidency to an end, they quite conveniently forgot that their partner, the TNA, served the separatist LTTE agenda until the very end. They disregarded how the TNA recognized the LTTE as the sole representative of the Tamil speaking people in 2001 and set the stage for the final showdown, eight years later.

But, Sri Lanka’s greatest ever Army Commander couldn’t deprive Mahinda Rajapaksa of a second consecutive term. Rajapaksa polled 1.8 mn votes more than Fonseka, though the latter comfortably secured all the predominantly Tamil speaking districts, including Digamadulla, thanks to the TNA’s support. The SLMC also played a crucial role in the East on his behalf.

The then General Fonseka’s performance in the Northern and Eastern electoral districts proved beyond any doubt that unsubstantiated war crimes accusations, propagated by interested parties, didn’t hold water.

SJB’s woes

MP Fonseka seems to have distanced himself from the SJB, struggling to cope up with defections and its failure to reach consensus on a common strategy. The elevation of Ranil Wickremesinghe as the President, in July last year, to complete the remainder of Gotabaya Rajapaksa’s five-year term, has undermined not only the SJB but the SLPP that elected him.

Wickremesinghe lured SJB MPs Manusha Nanayakkara (Galle district) and Harin Fernando (National List) to accept Cabinet portfolios in May 2022. They switched sides immediately after Wickremesinghe accepted the premiership from President Gotabaya Rajapaksa. In spite of their treachery, the government couldn’t entice other members of the SJB parliamentary group. Nanayakkara and Fernando, having repeatedly accused Gotabaya Rajapaksa of being the direct beneficiary of the April 2019 Easter Sunday carnage, joined his government without qualms. In the wake of Gotabaya Rajapaksa being forced to flee the country, due to a well-organized violent campaign to oust him, with massive protests, while law enforcers merely stood by idly, in July 2020, Nanayakkara and Fernando joined Wickremesinghe’s Cabinet.

MP Fonseka has declared his intention to contemplate a different path in the wake of two more elected on the SJB ticket, namely Kumara Welgama (Kalutara district) and Patali Champila Ranawaka (Colombo district) seeking to chart their own courses. Welgama and Ranawaka launched the Nawa Lanka Nidahas Pakshaya and the United Republican Front in 2020 and May this year, respectively.

The SJB won 54 seats, including seven National List slots, at the parliamentary election. Even before the SJB settled down, as the main Opposition party, one of its NL members, first time entrant to Parliament, Diana Gamage, switched her allegiance to the SLPP. Diana Gamage didn’t even bother to hide her contempt for the top SJB leadership when she declared her support to the controversial 20th Amendment to the Constitution, enacted in late October 2020. She simply dismissed the SJB’s decision to vote against that Amendment, meant to further strengthen the executive, as irrelevant. Further deterioration of the SJB parliamentary group can be disastrous as Wickremesinghe steps up pressure on the breakaway faction, ahead of the presidential election.

Fonseka switched allegiance to Sajith Premadasa immediately after the UNP split that followed SP’s heavy defeat at the presidential election. Fonseka contested the last general election on the SJB ticket, amidst simmering controversy over the circumstances under which the then Election Commission allowed the Ape Jathika Peramuna to be named as Samagi Jana Balawegaya in 2020. Diana Gamage’s husband, Senaka de Silva formerly of the Army, had been a one-time influential member of General Fonseka’s staff when he contested the 2010 presidential poll. The cashiered junior Army officer had been the leader of Ape Jathika Peramuna at the time the breakaway UNP faction, under Sajith Premadasa’s leadership, negotiated for the taking over of that party. In the wake of MP Diana Gamage voting for the 20th Amendment, a major issue erupted after the SJB demanded an explanation from her as to why she voted for Gotabaya Rajapaksa’s amendment, regardless of the party decision to move against it. Diana Gamage threatened to take back the party. The bone of contention is whether Diana Gamage could have taken things for granted just because her husband gave up his party for the benefit of Sajith Premadasa’s group.

SP declares his prez candidature

In May this year, the SJB hurriedly named its leader, Sajith Premadasa, as its presidential candidate. The party announced the decision on May 16, following a meeting of its decision-making Working Committee. The announcement was made in the wake of speculation that President Wickremesinghe contemplated introducing a simple amendment to pave the way for presidential election. Declaring that there was no one they could have faith in, except party leader Sajith Premadasa, former UNP MP Sujeewa Senasinghe proposed their leader as the presidential candidate. One-time State Minister and SJB Gampaha District MP Harshana Rajakaruna made a joint proposal in this regard that received the unanimous approval of the Working Committee. A one-page statement, issued by the SJB soon after the meeting, said that MPs S.M. Marikkar and Chamindra Wijesiri, Rehan Jaywickrema and President’s Counsel Upul Jayasuriya and several others appreciated the Working Committee decision.

Did the SJB at least unofficially consult other political parties, which contested under its symbol at the last parliamentary poll, before the announcement on the 2024 presidential candidate was made? The SJB cannot afford to ignore efforts made by the SLMC and the Tamil Progressive Alliance (TPA) to pave the way for a consensus between the SJB and President Wickremesinghe. The SLMC and three political parties, represented in the TPA, contested the last general election on the SJB ticket, therefore the main Opposition party should be mindful of the interests of its constituents. Its failure to address the concerns of partners, as well as individual members, can be quite catastrophic ahead of the next presidential election.

President Wickremesinghe stands to gain by the SJB’s shoddy approach to the next presidential election, followed by parliamentary polls. Undeterred by being reduced to just one seat in the 225-member Parliament, the UNP leader seemed quite convinced of his chances at the next presidential election with the backing of a section of the SLPP parliamentary group. A debilitating SLPP split is now almost certain with Power and Energy Minister Kanchana Wijesekera openly declaring his support for the UNP leader. The Matara district parliamentarian is on record as having said that the majority of the SLPP parliamentary group supported President Wickremesinghe’s candidature. Lawmaker Wijesekera has repeatedly declared that though the UNP and the SLPP currently carried out meetings separately, a tie-up between the SLPP and President Wickremesinghe is inevitable.

If Wijesekera is proved right, the main contenders at the next presidential election would be UNP leader Ranil Wickremesinghe and the former UNP Deputy Leader Sajith Premadasa. If that happened, the electors would face the challenging task of choosing one as essentially the two leaders’ economic strategies won’t clash. Would Wickremesinghe’s current policies be acceptable to the SLPP? Perhaps the UNP leader is not looking at a formal agreement with the SLPP but a consensus with a sizable breakaway group ready for its chances with the UNP leader. Whatever the bombastic declarations made by Wickremesinghe’s depleted group, the UNP hadn’t been able to engineer crossovers from the SJB as intended. Over a year after receiving the presidency, Wickremesinghe hadn’t been able to win over a single SJB MP. Manusha Nanayakkara and Harin Fernando switched allegiance to the government at a time Gotabaya Rajapaksa served as the President. Facts are stubborn. In fact, the President totally depends on the SLPP for his survival in Parliament. Their relations are in deepening crisis due to the inordinate delay on the part of the President to accommodate SLPP nominees in his Cabinet. That particular SLPP request has been on the backburner for over 11 months. That is the truth.

With the JVP-led Jathika Jana Balawegaya (JJB) certain to field a candidate of its own, the rebel SLPP group (Prof. G.L. Peiris-DA [Dallas Alahapperuma] led 12-member group) plus Uttara Lanka Sabhagaya, too, would be compelled to contest, thereby causing further setback to the Opposition effort. The decision-makers will have to examine two key issues: (1) can there be an understanding among the GL Peiris-DA led group and Uttara Lanka Sabhagaya? And (2) is there a likelihood of an alliance involving the SJB, SLPP rebels, including Uththara Lanka Sabhagaya?

Tough times

Having lost badly to Mahinda Rajapaksa at the 2010 presidential election, Fonseka sought to contest the general election on the UNP ticket on his terms. Wickremesinghe however swiftly rejected Fonseka’s move. That prompted Fonseka to contest the election, under the JVP-led Democratic National Alliance (DNA) ticket. It was nothing but an odd marriage of convenience. The DNA managed to secure seven seats. The DNA parliamentary group consisted of Sarath Fonseka, Arjuna Ranatunga (no longer in active politics), Tiran Alles (National List/the incumbent Public Security Minister) and four JVPers, including incumbent leader Anura Kumara Dissanayake. The subsequent arrest of Fonseka and denial of his parliamentary seat under questionable circumstances prompted the war hero to form the Democratic Party aka DP. That party suffered a catastrophic setback in its debut at the 2015 general election with its leader Sarath Fonseka failing to get elected from Colombo. The DP couldn’t poll 30,000 votes countrywide. Fonseka’s party couldn’t at least secure a National List seat and was relegated to history. However, Yahapalana Premier Ranil Wickremesinghe rescued the former Army Chief by accommodating him on his National List. Fonseka was brought into Parliament on the UNP National List, in early 2016, and accommodated in the Cabinet of Ministers, though Wickremesinghe simply ignored calls to appoint him the Law and Order Minister.

Could Fonseka have averted the 2019 Easter Sunday attack if he was tasked with the Law and Order Ministry? At the time of the Easter Sunday suicide attacks, Ranjith Madduma Bandara served as the Law and Order Minister. Fonseka suffered due to his running disputes with the then President Maithripala Sirisena who strongly opposed giving that particular portfolio to the wartime Army Chief under any circumstances. They failed to iron out differences though Sarath Fonseka was granted the Field Marshal’s rank during Sirisena’s tenure as the President. Sirisena owed a public apology for his failure to award the same to Admiral Wasantha Karannagoda and Air Marshal Roshan Goonatilleke.

The 2019 presidential poll campaign saw UNP candidate Sajith Premadasa declaring Fonseka as the Defence Minister, if he ended up victorious.

Foreign policy quagmire

 SPECIAL REPORT : Part 483

Published

  2023/08/16

Chinese scientific survey and research vessel HAI YANG 24 HAO at the Colombo harbour

During the question-and-answer session, Dr. Dushni Weerakoon questioned the sustainability of Sri Lanka’s non-aligned foreign policy, as it weakened the country’s position in trade negotiations. The expert assertion was certainly not restricted to trade negotiations. Having signed ACSA (Access and Cross Servicing-Agreement) with the US, in August 2017, it would be ridiculous to still talk of non-aligned policy. The fact remains the US also sought o finalize SOFA (Status of Forces Agreement) in addition to MCC (Millennium Challenge Corporation) Compact. Sri Lanka first signed ACSA in early 2007 during President Mahinda Rajapaksa’s first term. In the wake of ACSA, the US provided crucial intelligence that helped the Navy to hunt down floating LTTE arsenals on the high seas and accelerate their collapse.

By Shamindra Ferdinando

A scientific survey and research vessel, manned by the Chinese Navy, arrived at the Colombo port on 10 August. HAI YANG 24 HAO was here for a replenishment assignment. Commanded by Commander Jin Xin, the 129 m long vessel, crewed by 138 officers and men, departed Colombo on 12 August. The visit didn’t create controversy the way when Chinese surveillance vessel Yuan Wang 5 visited Hambantota in August last year close on the heels of President Gotabaya Rajapaksa’s ouster.

HAI YANG 24 HAO was the first Chinese Navy vessel here since President Ranil Wickremesinghe’s two-day visit to New Delhi, the first since Parliament elected him in July last year to complete the remainder of Gotabaya Rajapaksa’s five-year term won at the November 2019 presidential election. The next presidential poll is a year away.

The growing Indian concerns over what they call Chinese ‘activity’ here is a huge challenge that has to be dealt with at the highest level. But bankrupt Sri Lanka dependent on the new Extended Fund Facility (EFF) secured with the support of India and the US faced the daunting task of convincing India that Colombo’s relationship with China didn’t pose any threat to their interests. As regards Chinese naval visits, the US, too, has expressed concerns on behalf of its Quad partner. Quad consists of the US, Australia, Japan and India.

Lakshman Kadirgamar Institute of International Relations and Strategic Studies recently launched ‘LKI Foreign Policy Forum’ , a fresh initiative for a free and frank discussion on foreign policy matters, as well as related issues. The inaugural session at the LKI Lighthouse Auditorium, on 09 August, featured former Foreign Secretary H. M. G. S. Palihakkara, Executive Director Institute of Policy Studies, Director International Relations, KDU Dr. Harinda Vidanage, Executive Director Policy Studies Dr. Dushni Weerakoon and Executive Director, National Peace Council Dr. Jehan Perera. None of them need any introduction. They dealt with the topic ‘the changing global dynamics: implications for Sri Lanka.’ The Chinese vessel arrived in Colombo the following day.

The launch of ‘LKI Foreign Policy Forum coincided with the 18th death anniversary of former Foreign Minister Lakshman Kadirgamar, which fell on 12 August 2023. The LTTE assassinated Kadirgamar at his Buller’s Road residence. LK was 73 years old at the time he was felled by a sniper. How an LTTE sniper fired several gunshots at LK from the window of a bathroom located on the top floor of a house on Buller’s Lane is still a mystery. The person who resided in that house, the late Lakshman Thalayasingham, denied any knowledge of LTTE operatives being there when the law enforcement authorities rushed in soon after the assassination. Those responsible for LK’s security never explained how the surrounding houses of the man, high on the LTTE’s hit list, were never properly checked.

Ravinatha Aryasinha, career diplomat recently appointed Executive Director of LKI, moderated the inaugural programme which attracted a section of the Colombo-based diplomatic community. At the onset of the discussion, the one-time Foreign Secretary, who served as Sri Lanka’s Ambassador to Washington (Dec. 2020-Sept. 2021) before retirement, briefly explained the current global and regional status, taking into consideration the ongoing war in Ukraine where Russia is battling US-backed forces. The UK and Germany, among other NATO allies, have thrown their full weight behind American-led efforts to bring the Russians to their knees, using the Ukrainian forces as the battering ram.

Russian Ambassador in Colombo Levan S. Dzhagaryan, who took up the post here four months after President Gotabaya Rajapaksa’s ouster, was seated on the front row of the audience.

The conflict in Ukraine has sharply divided the world, with Japan campaigning against Russia. Japan has taken up the issue at hand with Sri Lanka, though it knows Colombo is not in a position to take sides. Japanese Foreign Minister Hayashi Yoshimasa who was here in the last week of July, took up Russian actions with Foreign Minister Ali Sabry, PC, on 29 July. Their discussions also covered the situation in East Africa.

Pushing Sri Lanka to back their ‘Free and Open Indo-Pacific’ (FOIP), Yoshimasa, towards the end of his discussion with Sabry, emphasized the importance of what is called the Black Sea Grain Initiative (BSGI) meant to facilitate grain exports from Ukraine, through the Black Sea, to various parts of the world.

Yoshimasa blamed Russian termination of the initiative, alleging that move ran counter to the international community’s efforts in addressing food insecurity.

Contrary to Western expectations and that of Japan and Australia, India has quite clearly indicated that it wouldn’t back resolutions moved against Russia at the UN. Sri Lanka abstained at the UN vote on Russia. China and Pakistan, too, abstained. But the Wickremesinghe-Rajapaksa government is under heavy pressure to back the Western position. Foreign media reports suggest that the US forced Pakistan to remove their PM Imran Khan over the latter’s refusal to condemn Russia.. Therefore, MP Wimal Weerawansa’s accusations, regarding US and Indian involvement in the change of government here, last year, shouldn’t be dismissed as mere rhetoric.

The writer is of the view that whatever the domestic politics here, and external pressure, Sri Lanka shouldn’t back a UN resolution against Russia. Perhaps LKI, in consultation with all relevant parties, should thoroughly examine this issue, also taking into consideration Asia’s position, in general, and advise the government, accordingly, as an independent think tank, especially against unfair moves by India to smother our independence and sovereignty that we have jealously guarded throughout history, without being a threat to it.

We wonder how those who are still blindly pursuing an Eelam dream and have done every possible thing to wreck this country in the pursuit of that, now feel with India clearly calling the shots everywhere.

Indo-Lanka relations

From left: Dr. Dushni Weerakoon, Dr. Harinda Vidanage, Ambassador Ravinatha Aryasinha, Dr. Jehan Perera and Ambassador H.M.G.S. Palihakkara

During the brief question and answer session, civil society activist Dr. Paikiasothy Saravanamuttu, the Executive Director of the Centre for Policy Alternatives (CPA), called for closer alignment with India. The former board member of the LKI explained why bankrupt Sri Lanka should align herself with India as it struggled to navigate through the developing crisis. Reference was also made to continuing Indian and Chinese roles here and how flagship Chinese project, the Port City, could attract Indian investments. The academic reminded what could have happened if not for India’s swift intervention to meet Sri Lanka’s basic needs, in 2022. Against the backdrop of continuing economic-political-social crisis in Sri Lanka, the Modi administration, seeking a third consecutive term, has paid considerable attention to the developments here. Obviously, their primary objective is to enhance India’s influence here and outdo the Chinese who secured the Hambantota Port on a 99-year lease, and also sustained the flagship Port City project.

The entry of Chinese oil giant Sinopec recently to the Sri Lanka market underscored how they sustained their operations, regardless of the change of government in July 2022. In fact, China appeared to have subtly exploited the crisis, and the political setup here, to secure the best possible terms for their entry as the third player in the retail oil market. Until their entry, the CPC and Lanka IOC shared the market, with the latter gradually expanding its influence at Trincomalee where the strategically located British built oil tank farm is situated. Similarly, the Chinese consolidated the strategic Hambantota Port with subsequent investments.

Sri Lanka needs to take both Chinese and Indian investments here into consideration as the Asian giants sought to further enhance and consolidate their position here. During Gotabaya Rajapaksa’s tenure as the President, the then CEB Chairman M.M.C. Ferdinando caused quite a controversy when he explained how President Gotabaya intervened on behalf of the Adani Group. The declaration, though subsequently denied, cannot be simply dismissed as the close relationship between controversial tycoon Gautam Adani and Indian Premier Narendra Modi, now seeking a third consecutive term, is well established. Gautam Adani had an opportunity to meet President Wickremesinghe during the latter’s two-day July visit to New Delhi where an assurance was given that Adani renewable power projects at Mannar and Pooneryn would be completed in January 2025.

During Wickremesinghe’s visit, an agreement was reached on cooperation on further renewable energy projects and development of Trincomalee as an energy hub. A permit clearing the joint venture between the Ceylon Electricity Board and India’s NTPC for a solar park in the eastern town of Sampur, in the Trincomalee district, too, was also issued in line with overall understanding.

Since the end of the war in May 2009 India has gradually stepped up interest in Sri Lanka. India wants Sri Lanka to fully implement the 13th Amendment to its Constitution. New Delhi has the US backing for the project that some concerned here say would lead to a federal state.

In the wake of Narendra Modi’s election, as Premier, in May 2014, India steadily increased investments here during his two terms and further expansion is likely in his third term. Indian parliamentary elections are scheduled for May 2024.

Following President Wickremesinghe’s visit to New Delhi where he had one-on-one with Premier Modi, the two countries announced an agreement on development of ports and logistics infrastructure in Colombo, Kankesthurai (KKS) and Trincomalee and launch ferry services between Nagapattinam in India and KKS, Rameswaram and Talaimannar and other mutually agreed places, welcoming resumption of flights between Chennai and Palaly, agreed to explore the possibility of expanding air connectivity to Colombo (BIA or Ratmalana) as well as Trincomalee and Batticaloa, development of infrastructure at Palaly.

In addition, enhanced cooperation on the development of the renewable energy sector here, establishment of a high capacity power grid interconnection between India and Sri Lanka to enable bidirectional electricity trade between Sri Lanka and other regional countries, including the BBIN countries, implementation of understanding reached on Sampur Solar power project and LNG infrastructure, development of Trincomalee oil tank farms in line with overall project focused on the eastern port city. As part of this project launch construction of a multi-product petroleum pipeline from South India to Sri Lanka, exploration and production of hydrocarbons in Sri Lanka’s offshore basins with an aim to develop Sri Lanka’s upstream petroleum sector, divestment of state owned enterprises (Indian investments in those selected sectors), fresh discussion on Economic and Technology Cooperation Agreement (ETCA), designation of INR as currency for trade settlements between the two countries and the agreement to operationalise UPI based digital payments, use of India’s Digital Public Infrastructure to meet Sri Lanka’s requirements and, finally, establishment of land connectivity between the two countries.

Let me reproduce the relevant section as released in a joint communique, titled ‘Promoting Connectivity,

Catalyzing Prosperity: India-Sri Lanka Economic Partnership Vision’ issued following talks between Premier Modi and President Wickremesinghe. “To establish land connectivity between Sri Lanka and India for developing land access to the ports of Trincomalee and Colombo, propelling economic growth and prosperity in both Sri Lanka and India, and further consolidating millennia old relationship between the two countries. A feasibility study for such connectivity will be conducted at an early date.”

Those agreements have consolidated Indo-Lanka relationship, regardless of serious concerns in some sections that Sri Lanka’s independence is at stake. The powers that be must realize that Sri Lanka shouldn’t promote a particular relationship at its own expense as well as other powers interested in developing further ties.

There cannot be a better example than the cancellation of tenders awarded to China to execute hybrid renewable energy systems in Delft, Nagadeepa and Analativu, off the Jaffna coast. Having awarded the tenders in January 2021, the Gotabaya Rajapaksa government cancelled those following Indian protests.

India never knew of those projects funded by the ADB until the CEB made the announcement in January 2021.

The Chinese project was going to be carried out with an ADB loan. India offered alternative arrangements to implement the same. In spite of the Rajapaksas making a desperate effort to save the Chinese project, India finally compelled the cancellation of the project about a year after the awarding of tenders. When Sri Lanka pointed out that the ADB funded project couldn’t be cancelled unilaterally, New Delhi is believed to have intervened with the ADB.

However, Premier Modi’s criticism of the late Premier Indira Gandhi over handing over of Katchatheevu to Sri Lanka in 1974 is a grim reminder how fresh issues could be raised ahead of elections. India parliamentary polls are scueduled for next year.

Accountability issues and origins of

terrorism here

Now that there is no question about post-war Indo-Sri Lanka relationship, it would be pertinent to ask how Sri Lanka addressed accountability issues in line with overall measures meant for reconciliation. Of the four panelists, Dr. Jehan Perera emphasized the responsibility on the part of all concerned to ensure those responsible for human rights violations at all levels be dealt with regardless of their standing in society. The peace icon who had been engaged in the peace process over a period of time stressed that the country couldn’t move forward unless accountability issues were addressed, based on the 2015 Geneva Resolution, co-sponsored by the then Yahapalana government. While pressing Sri Lanka on accountability issues, Dr. Perera ironically and with no shame went out of his way to praise the human rights record of US-led powers, regardless of death and destruction caused all over the world in the name of democracy. The civil society activist also didn’t comment on the origins of terrorism here. Obviously, Dr. Perera forgot he was at the LK commemoration and the fact that the much respected leader was killed by an organization, established by India.

Those demanding accountability on the part of Sri Lanka should explain how they proposed to deal with India for (1) launching a terrorist campaign in the early ’80s. In addition to the losses caused to the Sri Lanka military, fighting among rival northern groups claimed the lives of hundreds if not thousands (2) killings blamed on the Indian military during its deployment here, July 1987-March 1990 period (3) killing carried out by Tamil National Alliance, formed by India, in the wake of Sri Lanka’s request for complete withdrawal of its military and (4) Indian trained PLOTE raid on the Maldives in November 1988, if succeeded, could have caused regional instability.

They should also explain in what way the Tamil National Alliance (TNA), now represented in Parliament, could be dealt with. Having recognized the LTTE as the sole representative of the Tamil speaking people in 2001, Trincomalee District MP R. Sampanthan’s outfit under any circumstances couldn’t absolve itself of the complicity for the catastrophic devastation caused by the LTTE, especially to innocent people everywhere. The Wickremesinghe-Rajapaksa government must realize that post-war reconciliation couldn’t be achieved through the South Africa-type Truth and Reconciliation Commission (TRC) examining the Eelam War IV (Aug. 2006-May 2009).

The TNA collaborated with the LTTE to the hilt until the very end. Their relationship was built on 2004 ‘agreement’ that helped the TNA to secure 21 seats in the Northern and Eastern districts at the 2004 general election with the LTTE stuffing ballot boxes on their behalf. The blatant LTTE partnership with the TNA attracted the attention of the European Union Election Observation Mission. The EU mission, in its report, pointed out how the TNA won the lion’s share of the seats in the then temporarily merged North and East with direct LTTE support. Except The Island no other print media and electronic media bothered to report this. The Election Department did nothing.

The Parliament, too, conveniently turned a blind eye to the issue. In the following year, the LTTE set the stage for the final war by ordering the Tamil electorate to boycott the presidential poll. The TNA issued the ‘directive’ on behalf of the LTTE. Again, the Election Department and Parliament did nothing. How could a political party, represented in Parliament, ask the entire northern population to boycott the national election to facilitate the terrorist strategy?

Five years later, the same TNA backed war-winning Army Commander, retired General Sarath Fonseka, after having accused him and his Army of genocide, when he emerged as the common candidate at the presidential election. Fonseka lost badly by over 1.8 mn votes though he handsomely won all electorates in the Northern and Eastern provinces where his Army, over a period of three years, eradicated the LTTE completely.

LKI can certainly examine the entire gamut of issues, including the circumstances leading to the 2015 Geneva Resolution, co-sponsored by the Yahapalana administration. Sri Lanka backed the US led move, regardless of serious concerns expressed by the then Sri Lanka’s Permanent Representative in Geneva, Ambassador Ravinatha Aryasinha, the incumbent Executive Director of LKI. The Island covered the Geneva issue extensively hence no need to repeat how the then government acted recklessly in that regard and the subsequent declaration made by TNA heavyweight M.A. Sumanthiran in Washington (2016) pertaining to a tripartite agreement involving the US, GoSL and TNA on hybrid war crimes mechanism.

A thorough examination of events and developments is necessary as accountability issues are used to influence the leadership on post-war reconciliation. Sri Lanka struggling with a mountain of debt, both local and foreign, seems to be easy prey for those interested parties.