How Shangri-La made Akuregoda Defence Complex a reality

  SPECIAL REPORT : Part 381

Published

  2021/08/18

Front view of Akuregoda Defence Complex

By Shamindra Ferdinando

Wartime Defence Secretary Gotabaya Rajapaksa, who made a new Defence Complex a reality, visited the sprawling building in his capacity as the President, Defence Minister and the Commander-in-Chief of the Armed Forces on the morning of August 3. It was Gotabaya Rajapaksa’s maiden visit to the Army Headquarters, located within the partially completed Defence Complex.

In addition to the Army Headquarters, the Defence Ministry, too, has been moved to the Defence Complex whereas the work on the Navy and Air Force Headquarters are underway. The reportage of President Gotabaya Rajapaksa’s visit didn’t take into consideration how such a massive project came into fruition.

The war-winning Mahinda Rajapaksa government laid the foundation for the building project on May 11, 2011, two years after the eradication of the Liberation Tigers of Tamil Eelam (LTTE) as a military threat that was tearing apart the nation for nearly 30 years. The high profile project, on a 77 acre land, at Akuregoda, Pelawatta, was meant to bring the Army, Navy, and the Air Force headquarters, and the Defence Ministry, to one location.

The project is the largest single building venture undertaken by the government after the successful conclusion of the war, in May 2009, and Mahinda Rajapaksa’s a landslide victory at 2010 presidential, beating war-winning Army Commander the then General Sarath Fonseka.

President Mahinda Rajapaksa’s defeat at the 2015 presidential election, and the still raging Covid-19 epidemic, caused considerable delay. It would be pertinent to mention that the 19th Amendment enacted by now estranged Maithripala Sirisena and Ranil Wickremesinghe in 2015 deprived the former’s successor from holding the defence portfolio. Having won the presidency in 2019, Gotabaya Rajapaksa brought in the 20thA in Oct, 2020 at the expense of the 19thA to eliminate legal impediments preventing him from taking over the Defence portfolio.

President Gotabaya Rajapaksa’s visit to Akuregoda would have definitely taken place much earlier, under a very different environment, if not for the eruption of the Covid-19 pandemic, just a few months after his victory at the Nov 2019 election. The worst post-World War II crisis that had caused devastating losses to national economies, the world over, and delivered a staggering blow to Sri Lanka, heavily dependent on tourism, garment exports and remittances by its expatriate workers. President Gotabaya Rajapaksa hadn’t minced his words when he publicly acknowledged the catastrophe caused by the plunging of the national income and the daunting challenge in debt repayment amounting to as much as USD 4 bn annually.

The decision to shift the tri-forces headquarters and the Defence Ministry (The Defence Ministry situated within the Army Headquarters premises) caused a media furor with the Opposition alleging a massive rip-off. The then Defence Secretary Gotabaya Rajapaksa reiterated his commitment to the project. If not for the change of government in 2015, the Akuregoda Defence Complex would have been completed during Mahinda Rajapaksa’s third term. Had that happened, Gotabaya Rajapaksa wouldn’t have emerged as the then Opposition presidential candidate at the 2019 poll. The disastrous yahapalana administration and the overall deterioration of those political parties, represented in Parliament, and the 19thA that barred Mahinda Rajapaksa from contesting the presidential election, beyond his two terms, created an environment conducive for Gotabaya Rajapaksa’s emergence as the newly registered SLPP’s candidate.

On his arrival at the new Army headquarters, President Gotabaya Rajapaksa was welcomed by General Shavendra Silva, who is also the Chief of Defence Staff. Thanks to the incumbent President’s predecessor, Maithripala Sirisena, the then Maj. Gen Shavendra Silva was promoted to the rank of Lt. Gen and appointed the Commander of the Army on Aug 18, 2019, just three months before the presidential poll. The appointment was made in spite of strong opposition of the UNP leadership and US criticism.

President Gotabaya Rajapaksa promoted the Army Commander to the rank of a Four-Star General on Dec 20, 2020.

The Army moved into new headquarters on Nov 8, 2019, about its a week ahead of the presidential election, in the wake of President Sirisena declaring it open before he went out of office, though work on the rest of the defence complex was far from over.

Shangri-La move

During the presidential election campaign, SLPP candidate Gotabaya Rajapaksa strongly defended his decision to vacate the Army headquarters during Mahinda Rajapaksa presidency to pave the way for the Shangri-La-Hotel in Colombo. Shangri-La was among the hotels targeted by the Easter Sunday bombers – the only location targeted by two of them, including mastermind Zahran.

President Gotabaya Rajapaksa is on record as having said that vacation of the site had been in accordance with first executive President J.R. Jayewardene’s decision to move key government buildings away from the city.

Gotabaya Rajapaksa said that a despicable attempt was being made to blame him for the Army Headquarters land transaction. “I have been accused of selling the Army Headquarters land to the Chinese.”

Rajapaksa explained that Taj Samdura, too, had been built on a section of the Army headquarters land, previously used to accommodate officers’ quarters and the Army rugger grounds. Although President Jayewardene had wanted the Army headquarters shifted, successive governments couldn’t do that due to the war and lack of funds, he said.

The Rajapaksa administration brought the war to a successful conclusion in May 2009. President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe declared open Shangri-La Colombo on Nov 16, 2017. Hong Kong-based Shangri-La Asia invited Gotabaya Rajapaksa for dinner the following day after the opening of its Colombo hotel. Shangri-La Chairperson, Kuok Hui Kwong, the daughter of Robert Kuok Khoon Ean, was there to welcome Gotabaya Rajapaksa, who had cleared the way for the post-war mega tourism investment project. Among those who had been invited were former President Mahinda Rajapaksa, former External Affairs Minister Prof. G.L. Peiris, former Presidential Secretary Lalith Weeratunga and President’s Counsel Gamini Marapana, PC.

The Cabinet granted approval for the high profile Shangri-La project in Oct 2010 and the ground-breaking ceremony was held in late Feb 2012.

Rajapaksa said that the Shangri-La proprietor, a Chinese, ran a big operation based in Hong Kong, Malaysia and Singapore. Another parcel of land was given to the mega ITC hotel project also during the previous Rajapaksa administration.

Following the change of government in January 2015, the remaining section of the Army headquarters land, too, was handed over to Shangri-La.

Gotabaya Rajapaksa emphasised that the relocation of the headquarters of the Army, Navy, and Air Force, as well as the Defence Ministry, had been part of JRJ’s overall plan. The change of government, in January 2015, had caused a serious delay in completing the project and it was proceeding at a snail’s pace, Rajapaksa said. Even Parliament was shifted to Kotte in accordance with the JRJ plan, Gotabaya Rajapaksa said, explaining his move to relocate all security forces’ headquarters and Defence Ministry into one complex at Akuregoda.

Acknowledging that the Army headquarters had been there at Galle Face for six decades, Rajapaksa asserted that the Colombo headquarters wasn’t tactically positioned.

Rajapaksa blamed the inordinate delay in the completion of the Akuregoda complex on the Treasury taking hold of specific funds allocated for the project.

New Defence Complex

Army Chief Gen. Shavendra Silva welcomes President Gotabaya Rajapaksa

Major Gen. Udaya Nanayakkara had been the first Director, Project Management Unit, with overall command of approximately 5,000 tri-forces personnel assigned to carry it out. The Shangri-La transaction provided the wherewithal to implement the Akuregoda project though the change of government caused a setback. Nanayakkara, who had served as the Military Spokesman, during Eelam War IV, oversaw the military deployment, whereas private contractors handled specialised work such as piling, AC, fire protection and fire detection et al. The then MLO (Military Liaison Officer) at the Defence Ministry Maj. Gen Palitha Fernando had laid the foundation for the project and the work was going on smoothly when the yahapalana administration withheld funds. Political intervention delayed the project and by Sep 2015, Nanayakkara was replaced by Maj Gen Mahinda Ambanpola, of Engineer Service.

In spite of President Sirisena holding the Defence portfolio, he couldn’t prevent the top UNP leadership from interfering in the Akuregoda project. However, the Shangri-La project had the backing of A.J.M. Muzammil, the then UNP Mayor and one of the close confidants of UNP leader Ranil Wickremesinghe. Muzammil was among those present at the ground breaking ceremony held on Feb 24th, 2012 with the participation of Minister Basil Rajapaksa.

Having identified the invaluable land, where the Army Headquarters and Defence Ministry were situated, for its project, Shangri-La made its move. Those who had been aware of Shangri-La’s plans were hesitant and certainly not confident of their success. They felt fearful of Defence Secretary Rajapaksa’s reaction.

But, following swift negotiations, they finalised the agreement on Dec 28, 2010. Lt. Gen. Jagath Jayasuriya was the then Commander of the Army, with his predecessor General Fonseka in government custody after having been arrested within two weeks after the conclusion of the 2010 January 26 Presidential poll.

Addressing the annual Viyathmaga Convention at Golden Rose Hotel, Boralesgamuwa, on March 4, 2017, Gotabaya Rajapaksa, perhaps for the first time publicly discussed his role in the Shangri-La project. Declaring that Sri Lanka suffered for want of what he called a workable formula to achieve post-war development objectives, the war veteran stressed the pivotal importance of swift and bold decision-making.

Gotabaya Rajapaksa explained how the government had acted swiftly, and decisively, to attract foreign investment though some such efforts were not successful. There couldn’t be a better example than the government finalising an agreement with Shangri-La Hotels, he said.

Declaring that the bureaucratic red tape shouldn’t in any way be allowed to undermine investments, Rajapaksa recalled Chairman/CEO of Shangri-La Hotels and Resorts, Robert Kuok Khoon Ean, wanting the Army headquarters land for his Colombo project. In fact, the hotels chain, at the time, had proposed to build hotels in Colombo, Hambantota and Batticaloa, and was one of the key investors wanting to exploit Sri Lanka’s success in defeating terrorism.

“Khoon-Ean’s request for the Army headquarters land caused a serious problem for me. It was a serious challenge. How could I shift the headquarters of the war-winning Army? The Army had been there for six decades. It had been the nerve centre of the war effort for 30 years,” said Rajapaksa.

Rajapaksa went on to explain how he exploited a decision taken by the first executive president J.R. Jayewardene to shift the Army headquarters to Battaramulla, many years back. “Within two weeks, in consultation with the Secretary to the Finance Ministry, Dr. P.B. Jayasundera, and the Board of Investment, measures were taken to finalize the transaction. The project was launched to shift the Army, Navy and Air Force headquarters to Akuregoda, Pelawatte, in accordance with JRJ’s plan.”

The Hong Kong-based group announced the purchase of 10 acres of state land, in January 2011. Shangri-La Asia Limited announced plans to invest over USD 400 mn on the 30-storeyed star class hotel with 661 rooms.

The hotel is the second property in Sri Lanka for the leading Asian hospitality group, joining Shangri-La’s Hambantota Resort & Spa, which opened in June 2016.

Rajapaksa said that the top Shangri-La executive had referred to the finalisation of their Colombo agreement to highlight the friendly way the then administration handled the investment. Shangri-La had no qualms about recommending Sri Lanka as a place for investment, Rajapaksa said.

The writer explained the move to shift the Army headquarters and the Defence Ministry from Colombo in a lead story headlined ‘Shangri-La to push MoD, Army Hq. out of Colombo city: Army Hospital expected to be converted into a museum’ (The Island, January 4, 2011).

In the wake of the January 2015 change of government, the new leadership caused chaos with the suspension of the China-funded Port City Project, a little distance away from the Shangri-La project. Many an eyebrow was raised when the then Finance Minister Ravi Karunanayake declared, in March, 2015, that funds wouldn’t be made available to the Akuregoda Defence Complex project until the exact cost estimation of the project could be clarified.

Media quoted Karunanayake as having said “Presently, this project seems like a bottomless pit and we need to know the depth of what we are getting into. From the current state of finances, allocated for this project, it seems as if they are building a complex that’s even bigger than the Pentagon!”

The insinuating declaration was made despite them having committed the blatant first Treasury bond scam in Feb 2015 that shook the Sirisena-Wickremesinghe administration.

In June 2016, Cabinet spokesperson, Dr. Rajitha Senaratne announced the suspension of the Akuregoda project. Citing financial irregularities and mismanagement of funds, Dr. Senaratne alleged that all Cabinet papers on the project had been prepared according to the whims and fancies of Gotabaya Rajapaksa.

The suspension order was made public a few months after the second far bigger Treasury bond scam, in 2016 March. As sharp differences emerged between President Sirisena and the UNP, the former threw his weight behind the Akuregoda project. President Maithripala Sirisena on Sept 5, 2017, inspected the Akuregoda Defence Complex, as well as the Lotus Tower, under construction.

Within weeks after President Rajapaksa’s defeat, the new administration made its move against the Akuregoda project.

The following is The Island front page story, dated January 19, 2015: “Finance Minister Ravi Karunanayake, in the third week of January, said that Rs 13.2 billion, in an account maintained at the Taprobane branch of the Bank of Ceylon had been transferred to Consolidated Fund of the Treasury. The matter was being investigated as the account belonged to the Ministry of Defence, he added.

The Finance Minister stressed that the MoD had no right to maintain such an account in violation of regulations and therefore the opening of the account was being investigated. The Minister alleged that several illegal transactions, including one involving Samurdhi, had come to light. He estimated the Samurdhi transaction (now under investigation) at Rs. 4 billion.

Responding to the allegation, former Defence Secretary Gotabaya Rajapaksa said that the funds received from the Shangri-La transaction had been deposited there and the funds utilised for the construction of Akuregoda Defence Complex.

The former Defence Secretary said that the chief accountant of the Defence Ministry could explain the matter. Insisting that the particular account hadn’t been in his name, Rajapaksa said that a detailed response would be issued shortly (Ravi K orders Rs 13.2 b in MoD account transferred to Treasury, with strapline, Funds were meant for Defence Complex – Gotabaya).

The writer obtained the above statements from Karunanayake and Rajapaksa in the wake of the former’s statement that the Akuregoda Defence Complex was even bigger than the US Defence Headquarters Pentagon.

Yahapalana

role in Shangri-La expansion

In spite of strongly objecting to almost all projects launched by the previous government, the Sirisena-Wickremesinghe administration pledged their commitment to them. Yahapalana support extended to Shangri-La is a case in point. Having secured 10 acres from the previous Rajapaksa administration, Shangri-La purchased an additional three and a half acres, also on a 99-year lease, recently.

However, The Sunday Times reportage of the second Shangri-La land deal prompted President Maithripala Sirisena to direct Cabinet spokesman, Dayasiri Jayasekera, to clarify the transaction. In other words, President Sirisena contradicted Development Strategies and International Trade Minister Malik Samarawickrema for alleging that the President gave three and a half acres, situated between the newly opened Shangri-La Hotel and Beira Lake.

Jayasekera explained the circumstances under which Shangri-La, through its Singapore based subsidiary Perennial Real Estate Holdings acquired three and a half acres adjoining its latest hotel, situated on 10 acres, abutting the Galle Face promenade, in Colombo.

On the day before the opening of Shangri-La by President Sirisena and PM Wickremesinghe, Jayasekera explained how the government had re-negotiated with the Shangri-La Group what he called a much better deal than the one struck by the previous administration.

Jayasekera confirmed that the lease was for a period of 99 years. The government leased three and a half acres of land at a rate of Rs. 13.1 mn per perch whereas the previous administration agreed to Rs 6.5 mn per perch. According to Jayasekera the previous government had leased 10 acres at a rate of Rs 9.5 mn (with taxes) per perch.

The bottom line is in spite of opposition, the UNP backed controversial projects. The UNP’s opposition to the Shangri-La project, in a way similar to the campaign carried out against the Chinese investment in the Hambantota port. The UNP in 2017 handed over the Hambantota port on a 99-year-lease to China.

Roadmap for India relations, growing Chinese influence and Quad politics

 SPECIAL REPORT : Part 380

Published

  2021/08/11

January 2009 Gujarat: The then Tourism Minister of Mahinda Rajapaksa administration Milinda Moragoda with the Chief Minister of Gujarat Narendra Modi. Moragoda was there to address the annual "Vibrant Gujarat" Investor Forum.

By Shamindra Ferdinando

Naming former lawmaker Milinda Moragoda as Sri Lanka’s High Commissioner in New Delhi had been one of the most controversial decisions taken by President Gotabaya Rajapaksa at the onset of his administration.

The appointment was made in spite of strong objections, even by some of those who had backed Gotabaya Rajapaksa’s candidature at the 2019 presidential election. President Gotabaya Rajapaksa went to the extent of issuing a statement vowing to go ahead with appointments made following careful consideration. However, Moragoda couldn’t take up his new assignment due to the raging Covid-19 epidemic in India. Although the Covid-19 situation remains critical, Moragoda is planning to move to New Delhi soon.

Ahead of taking up his post in Delhi in the coming weeks, Moragoda released a document titled, ‘Integrated Country Strategy for Sri Lanka Diplomatic Missions in India’ that dealt with the 2021-2023 period.

Deputy High Commissioner in New Delhi Niluka Kadurugamuwa, in his introduction to what can be called a road map, asserted that this could provide the required agenda though ideally it should be further fine-tuned and developed in the implementing phase. Sri Lanka needs a long term strategy. Sri Lanka cannot pursue an agenda to suit a particular envoy/government though differences in political approach are understandable.

A meticulous planner, Moragoda having thanked the Deputy HC and members of the Country Team as well as the group of experts who provided invaluable advice and inputs in preparation of the roadmap declared he accepted full responsibility for any omissions or oversights.

Having first entered Parliament through the UNP National List in late 2000, Moragoda successfully contested the 2001 and 2004 general elections on the UNP ticket though in 2007 he switched his allegiance under controversial circumstances to the then President Mahinda Rajapaksa. Moragoda, who had been a key government negotiator in talks with the LTTE during Ranil Wickremesinghe’s tenure as the Premier in 2001-2003 was among those UNPers who received ministerial portfolios after they switched sides in 2007. Moragoda played quite an impressive role during his tenure as the Justice Minister. The writer had an opportunity to cover the rehabilitation process undertaken under Moragoda’s guidance. Perhaps, the involvement of the All Ceylon Hindu Congress in the rehabilitation of LTTE cadres is definitely a high point for the then Minister.

Moragoda remained with the Rajapaksas and was President Gotabaya Rajapaksa’s first choice as the country’s top envoy in New Delhi. Throughout his political career, and post-parliament period, Moragoda pursued a strategy that was alien to many MPs/ex-MPs with the formation of Pathfinder Foundation being a singular achievement. Formation of Pathfinder Foundation (PF) that dealt in foreign relations among a range of other issues with the focus on developing relations and Quad countries, namely the US, Japan, Australia and Japan and US ally South Korea. In the wake of receiving diplomatic assignment, Moragoda gave up the chairmanship of PF to top ex-career diplomat Bernard Goonetilleke, who had been with the outfit for some time.

But what the writer likes to highlight is the recognition of PF by China as one of its top 10 partners here during Mahinda Rajapaksa’s tenure as the President. The recognition was made at a ceremony to mark the Chinese New Year and Sri Lanka’s National Day held at the BMICH. Among those present were President Mahinda Rajapaksa (current Prime Minister), Prime Minister D.M Jayaratne (passed away in Nov 2019), Minister of Health Maithripala Sirisena (former President, SLFP leader, and currently SLPP MP), Minister of External Affairs G.L Peiris (SLPP Chairman and Education Minister), Secretary to the President Dr. P.B. Jayasundera and President Gotabaya Rajapaksa’s Senior Advisor Lalith Weeratunga. The then Chinese Ambassador Wu Jianghao who presented the top 10 partner’s award to Moragoda, Founder of Pathfinder Foundation, is now Assistant Minister of Foreign Affairs.

In his thank you note therein addressed to President Gotabaya Rajapaksa, Moragoda declared the two countries were bound by circumstances of geography, economics, culture, history, and just as importantly, democratic values. Against this backdrop, the former lawmaker asserted any setbacks to Indo-Lanka relationship, however intractable they may appear to be at any given point in time, could only be temporary. Perhaps the proposed road map should be discussed taking into consideration what Moragoda stated in the section headlined ‘Mission Strategic Framework.’ Let me reproduce that vital part verbatim: “In recent years, the Indo-Sri Lanka bilateral relationship has been increasingly dominated by a transactional approach. This is a consequence of the changes in the geo-political equilibrium in the region that have resulted in a growing trust deficit.”

But the Milinda Moragoda saga is not complete, we believe, without going into his background. He is the grandson of late legendary first Sri Lankan Governor of the country’s Central Bank N. U. Jayawardena, but left it under a cloud. The literally self-made, NU then went onto build a financial empire, but that too caved-in in the late’ 80s amidst a public spat with then Governor of the Central Bank Dr. H.N.S Karunatillake.

Indo-Lanka relations and Quad

Sri Lanka cannot even discuss Indo-Lanka relations without taking into consideration the US-led Quad (Quadrilateral Security Dialogue) the very purpose in its formation has been to gang up against Beijing. The Quad comprising the NATO leader the US, Japan, Australia and India, meant to counter the rapidly growing Chinese military, political and economic power and is also wary about Sri Lanka’s strategic relationship with China. The passage of the Colombo Port City Economic Commission Bill in May this year certainly dismayed Quad. The outgoing US Ambassador Alaina B. Teplitz in April and in July this year sought to subvert the high profile Colombo Port City project. Of course, the CHEC Port City promptly set the record straight. Unfortunately, the government and the Foreign Ministry remained conveniently silent though issues raised by Ambassador Teplitz shouldn’t go unanswered. It would be pertinent to mention that the US statement definitely had the backing of other Quad members, Japan, Australia and India. South Korea though not being part of Quad certainly stands with the US-led grouping.

HC Moragoda’s roadmap that dealt with Indo-Lanka relations cannot be discussed leaving Quad out. In fact, Indo-Lanka relations, regardless of Sri Lanka’s position on bilateral matters, are essentially part of Sri Lanka’s response to Quad concerns relating to China. The forthcoming Malabar exercises off the coast of Guam in the Indo-Pacific are taking place ahead of the much-awaited Quad summit in the US in which Australian, Japanese and Indian leaders are scheduled to meet the US President Joe Biden in October.

Sri Lanka should pay attention to the evolving situation. If decision-makers bother to peruse Chapter 6: ‘An Indocentric Practitioner of Realpolitik’ in ‘Makers of India’s Foreign Policy’ authored by the late Indian Foreign Secretary J.N.Dixit , it wouldn’t be too difficult to understand the complexity of the situation.

The Moragoda roadmap made reference to the loss of about 1,300 Indian soldiers here. The reference is quite questionable and inappropriate. Let me reproduce the relevant section verbatim below: “The intervention in the conflict in Sri Lanka where India lost about 1300 soldiers (emphasis is mine), India’s commitment of billions of dollars as development assistance and grant assistance to Sri Lanka, the Indo-Sri Lanka Free Trade Agreement, cooperation extended through training of Sri Lankan military personnel, undergraduate and postgraduate scholarships to Sri Lankan students, as well as Joint Statements issued on the occasions of state visits of the leaders of the two countries, are but a few examples that amply demonstrate the breadth and depth of the strategic partnership enjoyed by the two countries (emphasis is mine).

It would certainly be a mistake on Sri Lanka’s part to recognise India’s uninvited intervention here as a benevolent example of the strategic partnership between the two countries. Actually, the Indian intervention should have been correctly assessed taking into consideration the late Dixit’s assessment as regards the then Indian Premier, the late Indira Gandhi’s decision vis a vis Sri Lanka.

In his memoirs, Dixit stated: “The two foreign policy decisions on which she could be faulted are: her ambiguous response to the Russian intrusion into Afghanistan and her giving active support to Sri Lankan Tamil militants. Whatever the criticisms about these decisions, it cannot be denied that she took them on the basis of her assessment about India’s national interests. Her logic was that she could not openly alienate the former Soviet Union when India was so dependent on that country for defence supplies and technologies. Similarly, she could not afford the emergence of Tamil separatism in India by refusing to support the aspirations of Sri Lankan Tamils. These aspirations were legitimate in the context of nearly 50 years of Sinhalese discrimination against Sri Lankan Tamils.

In both cases, her decisions were relevant at the point of time they were taken. History will judge her as a political leader who safeguarded Indian national interests with determination and farsightedness.”

Dixit also justified the Indian intervention on the basis of what he described as ‘Sri Lankan government’s evolving security connections with the US, Pakistan and Israel.’

Indian stand in Geneva

Can one envisage the normalisation of Indo-Lanka ties as long as war-winning Sri Lanka remained on the United Nations Human Rights Council (UNHRC) agenda? Can we ever forget Sri Lankan armed forces and political leadership are being hounded for bringing the devastating near three-decades long war to an end whereas those responsible for terrorism here sit in judgment? Sri Lanka needs to set the record straight. India can never absolve itself of the responsibility for causing terrorism here.

The world should acknowledge Sri Lanka would never have to fight a conventional military challenge on its soil if not for the Indian sponsorship of terrorism. Obviously, India wants everyone to conveniently forget its past military misadventure here (July 1987-March 1990) as it seeks a bigger role in the world stage as a US ally. India joined the US project against China long before the formation of Quad in 2007. Whether New Delhi’s policy towards Sri Lanka would be influenced by the overall Quad strategy in Indo-Pacific, Sri Lanka should be wary of India exploiting Geneva as a platform to pursue its objectives here. Clearly Quad countries, as well as South Korea home to nearly 30,000 US military personnel might be swayed to take a common stand in Geneva. Those countries either vote for Geneva resolutions moved by interested parties against Sri Lanka or abstained. Having caused terrorism here in the’ 80s to pave the way for the deployment of the Indian Army in 1987 with catastrophic consequences, India urged Sri Lanka in Geneva March 2021 to address Tamil aspirations. India said that Sri Lanka should take necessary steps through the process of reconciliation and full implementation of the 13th Amendment (shoved down our throat by Delhi) to the Constitution of Sri Lanka. Why should the 13th Amendment to Sri Lanka’s Constitution or the new Constitution making process be an issue at the Geneva-based UNHRC?

The March 2021 Geneva session paved the way for a fresh international investigation into Sri Lanka’s accountability issue. Those who had openly and tacitly backed fresh investigation remained conveniently silent on now-disclosed diplomatic cables from the British High Commission in Colombo (January-May 2009) which contradicted unsubstantiated war crimes accusations directed at Sri Lanka.

It would also be pertinent to mention that Quad countries the Japan and Australia, have to share the expenditure incurred by the US military deployment. South Korea, too, pays for the US military. The US-India relations are now at an extremely high status with the latter being part of the Western powers’ overall thinking. Therefore, Sri Lanka cannot, under any circumstances, ignore the fact its close relationship with China may cause apprehensions among Quad members, particularly India. Such a situation cannot be addressed by improving bilateral relations between Sri Lanka and India. That is the undeniable truth. Against the backdrop of unbearable devastation caused by the raging Covid-19 epidemic, Sri Lanka is easy prey for foreign powers. The epidemic has weakened the country to such an extent that repayment of debt of USD 01 billion International Sovereign Bond Issue received media attention. Have you ever heard of such a fund transfer receiving media attention? Bloomberg quoted State Minister Ajith Nivard Cabraal as having said Sri Lanka has transferred funds to repay the $1 billion bond by Tuesday (July 27) deadline.

Roadmap: Seven primary objectives

As mentioned, the objectives of the Sri Lankan High Commission are (1) Elevate the existing close bilateral relationship to a strategic level through increased interactions at political level (2) Bolster foreign investments as well as earnings from exports. Achieve significant export growth and increase foreign exchange earnings, with the ultimate objective of increasing productivity, employment generation and international competitiveness to uplift the living standards of the people in Sri Lanka, with a view to achieving the macro-economic targets set out for the period 2020- 2025, in the Government Policy framework document, ‘Vistas of Prosperity and Splendour’ (3) Expand collaboration in the fields of strategic cooperation, defence and Indian Ocean security between Sri Lanka and India (4) Further enhance cooperation between Sri Lanka and India, particularly in the fields of culture, education and science and technology, to promote Sri Lanka’s interests (5) Project a more positive image of Sri Lanka in India through public diplomacy initiatives, with a view to reaching out to the people of India and strengthening people-to-people contacts (6) Enhance connectivity between Sri Lanka and India and finally (7) Promote Sri Lanka’s interests in protecting its ocean resources.

Perhaps one of the most important issues (objective number 7) is taking tangible measures to stop ongoing large scale organised poaching in Sri Lankan waters by the Indian fishing fleet. In spite of talks with the Central government, relevant state governments and other stakeholders, poaching continues unabated much to the dismay of local fishermen. India had the wherewithal to comfortably curb the Indian fishing fleet from crossing the Indo-Lanka maritime boundary though New Delhi would never do so for obvious reasons. During the conflict (1980s-2009) terrorists exploited Indian poaching to move men and lethal material between South India and Sri Lanka. The poaching issue can be successfully dealt with only if India is genuinely interested in denying access to her fishermen, who literally invade Sri Lankan waters in thousands of boats to plunder our fish resources. Indo-Lanka relations should be examined against such bilateral issues as well as India being part of Quad ranged against emerging Superpower China. The bottom line Indo-Lanka relations cannot be decided bilaterally. The 99-year-lease of Hambantota port to China, flagship Chinese venture Colombo Port City project, Chinese managed terminal in the Colombo Port and a plethora of other agreements are all part of not only Indo-Lanka relations but relations with other Quad countries as well. Quad nations, the US and Japan recently conducted naval exercises off Trincomalee with the Sri Lanka Navy. The exercise marked a new phase of their strategy as Sri Lanka struggled to maintain a balance and is now forced to walk a diplomatic tightrope.

Celebrating 50 years of Lanka-Singapore diplomatic ties with fugitive Mahendran harboured there

 SPECIAL REPORT : Part 379

Published

  2021/08/4

Foreign Minister Dinesh Gunawardena attends a ceremony at the Foreign Ministry on July 27, 2021 to mark the 50th anniversary of the establishment of diplomatic ties with Singapore. Singaporean FM Dr Vivian Balakrishnan joined the event virtually. Sri Lanka issued two stamps to mark the occasion.

By Shamindra Ferdinando

UNP leader and yahapalana Prime Minister Ranil Wickremesinghe was a political devil and the earlier administration in which he served as PM, akin to a mismatched wedding, former President Maithripala Sirisena told the Presidential Commission of Inquiry (PCoI) investigating the Easter Sunday attacks.

SLFP leader Sirisena told the PCoI that disputes arose between him and Wickremesinghe within the first week of establishing the yahapalana government.

“Within the first week Wickremesinghe wanted to appoint Arjuna Mahendran as the Governor of the Central Bank. I wasn’t happy because Mahendran was a citizen of Singapore. However, Wickremesinghe insisted that Singaporean of Sri Lankan origin Mahendran was the ideal person and since I also did not want to create a conflict, within a week of coming to power, I let it happen,” Sirisena said.

The ex-President said that their relationship further deteriorated after he appointed the Presidential Commission of Inquiry, in January 2017, to investigate the Central Bank Treasury Bond Scams. Mahendran sought refuge in Singapore about a year after the appointment of the PCoI. The Commission comprised Supreme Court Justice K.T. Chitrasiri, the late SC Justice P S Jayawardena and retired Deputy Auditor General V. Kandasamy. Sumathipala Udugamsuriya functioned as its Secretary.

President Sirisena couldn’t convince Singapore to hand over Mahendran to Sri Lanka though he repeatedly vowed to get him.

Mahendran was indicted in June 2019 for causing losses to the government. The Treasury bond scams, the October 2015 Geneva betrayal, in between the two scams and the Easter Sunday carnage, sealed the fate of yahapalana partners, the UNP and the SLFP.

The Joint Opposition/Sri Lanka Podujana Peramuna in the run-up to the 2019 presidential and 2020 parliamentary elections, vowed to bring back Mahendran. Recalling how the LTTE financier, living in Malaysia had been brought back in 2009, some JO/SLPP spokespersons vowed to bring back Mahendran.

In spite of a change of government, in Nov 2019, the government hadn’t been able to secure Mahendran’s arrest. Singapore continues to ignore Sri Lanka’s request to hand over Mahendran. It would be pertinent to mention the previous yahapalana administration entered into Free Trade Agreement with Singapore in January 2018. The agreement followed just six rounds of talks beginning July 2016.

Singapore has indicated that handing over of Mahendran is very much unlikely. The Colombo High Court Trial-at-Bar last month ordered the Treasury bond scam case to proceed in spite of the absence of Mahendran and Ajahan Gardiya Punchihewa. Both are abroad. The bench comprised High Court Judges Damith Thotawatte, Manjula Tilakaratne and Mohamed Irshadeen.

This directive was given when the case in respect of the misappropriation of Treasury bonds worth Rs 36 bn at the Central Bank bond auction on March 29, 2016 was taken up in court. It was the far larger second Treasury bond scam perpetrated by Mahendran with the connivance of the then government, the first being the Feb 27, 2015 scam. Altogether, the Attorney General has moved court against 10 persons, including Mahendran for misappropriation of Rs 688 mn in the Treasury bond issue held on Feb 27, 2015. The suspects included Mahendran’s affluent son-in-law Arjun Aloysius, who actually carried out the scams though his firm PTL.

We have grave suspicions about the squeaky clean image that Singapore has been putting out to the world, especially after how it picked up a Supreme Court Judge from here after he went into quiet retirement soon after then President Chandrika Kumaratunga went around the country accusing him of helping an LTTE man to escape justice here. (VINCENDIRAJAN FLED THE COUNTRY NO SOONER HE WAS GIVEN BAIL). And presto that tainted SC Judge was appointed to a respected arbitration panel there. So we cannot believe that a country like Singapore, whose intelligence gathering is second to none didn’t know about our judge’s background or was he picked because of his sordid background?

 

Stamp launch

Let me reproduce a statement headlined ‘Joint stamp launches in Sri Lanka and Singapore to commemorate 50 years of diplomatic ties’ issued by the Foreign Ministry on July 27, 2021. The following is the text of the statement verbatim: “A joint stamp release ceremony was held at the Foreign Ministry, Sri Lanka, on 27 July to mark the 50th anniversary of the establishment of diplomatic ties with Singapore which took place on the same day in 1970. This milestone event was held with the participation of the Foreign Minister Dinesh Gunawardena and Minister for Foreign Affairs of Singapore Dr. Vivian Balakrishnan, joining virtually.

The two stamps ceremonially unveiled at the event, were especially designed for the occasion to depict the theme “Marine Conservation”, and showcase the restoration of Coral Ecosystem in Sri Lanka, and Mangroves in Singapore and reflects the shared interest and commitment of both countries in protecting the marine environment.

Speaking at the occasion, Foreign Minister Dinesh Gunawardena highlighted the long standing friendly relations between the two countries, nurtured by deep rooted linkages at community and societal levels. He recalled his meeting with Minister Balakrishnan when both were holding different portfolios and the discussions held on tackling challenges posed by climate change across the globe. Minister Gunawardena said further that the unveiling of commemorative postage stamps to mark the 50th anniversary of diplomatic ties, undoubtedly shows the great warmth and friendship that exist between the two countries.

The Minister of Foreign Affairs of Singapore Dr. Vivian Balakrishnan, in his remarks, spoke on the warm and long-standing nature of Singapore-Sri Lanka relations. He noted the close and meaningful cooperation between our two countries, including during this COVID-19 period.

The event was attended by the former Sri Lanka High Commissioners who served in Singapore, Chitranganee Wagiswara, Nimal Weerarathna, Ferial Ashraff and Consul of Singapore in Sri Lanka Dr. Jayantha Dharmadasa, Singaporean business community in Sri Lanka, Secretary of the Ministry of Mass Media, Officials of the Foreign Ministry and the Department of Posts.

Meanwhile, in Singapore, a ceremony was held at the Shangri La a few hours prior to the Colombo event where High Commissioner of Sri Lanka to Singapore Sashikala Premawardhane and Non-Resident High Commissioner of Singapore Chandra Das unveiled the two stamps in the presence of Director-General of the South Asia and Sub-Saharan Africa Directorate of the Ministry of Foreign Affairs of Singapore Gilbert Oh. Deputy Director of Postal & Consumer Policy, Infocomm Media Development Authority of Singapore (IMDA) Ruth Wong, and Vice President Philately & Stamps Peggy Teo together with several other officials of MFA, IMDB, SingPost and the High Commission of Sri Lanka.

The Foreign Ministry extends its appreciation and congratulations to the Government of Singapore, Ministry of Foreign Affairs of Singapore, Infocomm Media Development Authority of Singapore, SingPost, and the Department of Post of Sri Lanka and to the High Commission of Sri Lanka in Singapore for the successful issuance of the commemorative stamps marking 50 years of friendship between Sri Lanka and Singapore.”

 

A Singaporean of Sri Lankan origin

Even if Mahendran attended the event at Shangri La, Singapore, the public shouldn’t be surprised. Whatever, the government spokespersons say, Singaporean Mahendran obviously received assurance that he would enjoy the protection of Singapore, regardless of Sri Lanka’s push to bring the fugitive to justice. Examination of Sri Lanka’s pathetic failure to get hold of Mahendran should be examined against the backdrop of celebration of 50 years of diplomatic ties.

Why does Singapore continue to protect Mahendran? Did the incumbent regime here make a genuine effort to get Mahendran back to Colombo? What is the responsibility of Sri Lanka Parliament as regards the failure on the part of the government to convince Singapore to hand over Mahendran? UNP leader Ranil Wickremesinghe, who orchestrated Mahendran’s appointment as the Governor of the CBSL, immediately after the 2015 presidential election, is now back in parliament as the UNP’s solitary National List MP of that party. Have we heard any government lawmaker demanding an explanation from Wickremesinghe over accountability on his part regarding the Treasury bond scams and Mahendran taking refuge in Singapore? The CBSL was under Wickremesinghe at the time Mahendran perpetrated the Treasury bond scams, the court hadn’t been moved against him. The main Opposition Samagi Jana Balavegaya (SJB) is not in a position to attack Wickremesinghe over the Treasury bond scam as it consists of former UNP lawmakers who backed the UNP leader’s stand on bond scams.

The JO/SLPP and the SJB have conveniently forgotten the Treasury bond scams. The then President Sirisena, who paved the way for the much bigger second Treasury bond scam in March 2016 by dissolving Parliament in late June 2015 to save the UNP government reeling under the first scam. By the time, Sirisena received the PCoI report in late Dec 2017 or soon thereafter Mahendran was away. Mahendran couldn’t have left the country without the top UNP leadership’s knowledge. Wickremesinghe knew Mahendran was leaving. In fact, President Sirisena and Wickremesinghe hadn’t been able to agree on many contentious issues, including the Free Trade Agreement with Singapore though the President finally gave in.

The incumbent government owes the country an explanation why Mahendran couldn’t be extradited in spite of making representations to Singapore. In early Dec 2020, the then Attorney General Dappula de Livera submitted a note of clarification to Singapore as regards the request to Mahendran.

The Attorney General tendered the extradition request to the Defence Ministry and the Foreign Affairs Ministry in 2019 for necessary authentication and transmission to the Singaporean government after the Permanent High Court at Bar issued an arrest warrant on Mahendran.

Singapore’s Ministry of Foreign Affairs subsequently informed that the Singapore Government would consider the extradition request once the necessary supporting information and documents were received.

In September 2019, the Ministry of Foreign Affairs forwarded the extradition request on Arjuna Mahendran, to the Sri Lankan High Commission in Singapore. The extradition request was then forwarded to the Government of Singapore for necessary action.

However, Singapore has declined to hand over Mahendran. Singapore is believed to have questioned the basis of the ongoing investigation into the Treasury bond scams. Speaker Lakshman Yapa Abeywardena should hold the debate on the much delayed Treasury bond scams in Parliament without further delay. The failure on the part of Parliament to debate the PCoI report on the Treasury bond scams cannot be justified or tolerated under any circumstances. Those political parties represented in Parliament should be ashamed for their failure to debate the report for well over three years.

How can we forget the fact that Wickremesinghe made a desperate bid to extend Mahendran’s term in spite of accusations relating to the 2015 and 2016 Treasury bond scams? Under heavy pressure to replace Mahendran, Wickremesinghe pushed for Charitha Ratwatte’s appointment as Governor.

In spite of issuance of Interpol red notice on Mahendran, in relation to the ongoing investigation into Treasury bond scams, he remains safe in Singapore, the number one destination for Sri Lankan lawmakers and even Presidents to seek medical treatment. President Sirisena was in Singapore when the Easter Sunday suicide bombers mounted near simultaneous attacks in Colombo, Negombo and Batticaloa. Sirisena claimed that he was in Singapore for a medical checkup when he received a message from Colombo about the carnage.

 

Chronology of events

Jan. 8, 2015:

Presidential election

Jan.9, 2015:

Maithripala Sirisena sworn in as President (now SLPP lawmaker, representing Polonnaruwa district)

Jan.9, 2015:

Ranil Wickremesinghe sworn in as Prime Minister (now solitary UNP MP in Parliament)

Jan.23, 2015:

Then Finance Minister Ravi K recommended Arjuna Mahendan as Governor, CBSL (No longer in Parliament)

Jan. 26, 2015:

President Sirisena appointed Singaporean Mahendran as Governor, CBSL (privileged life in Singapore)

Feb. 26, 2015:

Mahendran met ministers, Ravi K, Kabir H (now SJM lawmaker) and UNP Chairman Malik S (not engaged in active politics now) at CBSL, allegedly to discuss a massive fund requirement of Rs 18 bn (All three politicians were present when President Sirisena lambasted the UNP over treasury bond scams on Dec 16, 2018 at the Presidential Secretariat in the presence of PM Wickremesinghe and Mrs. Wickremesinghe.)

Feb 27, 2015:

First bond scam perpetrated. Within hours, those who mattered knew how PTL had carried out the operation in connivance with Mahendran.PTL is a fully owned subsidiary of Perpetual Capital (Pvt.) Limited, owned by Geoffrey Joseph Aloysius and Arjun Joseph Aloysius. The Central Bank was under the purview of Premier Wickremesinghe, though previously it functioned under the Finance Ministry.

President Sirisena directed his party to lodge a complaint with the CIABOC. The high profile institution, handling of that particular inquiry, should be examined for obvious reasons.

March 10, 2015:

Wickremesinghe, following consultations with Sirisena, appointed a three-member committee to probe the issuance of treasury bonds. The committee comprised those considered UNP loyalists i.e. Attorneys-at-law Gamini Pitipana, Mahesh Kalugampitiya and Chandimal Mendis.

May 21, 2015:

The Joint Opposition requested Speaker Chamal R to call a special debate on the bond scam.

May 22, 2015:

Special Sub Committee of CoPE appointed to probe the Feb 27, 2015 issuance of treasury bonds. The 13-member Sub Committee had its inaugural meeting on the same day under the chairmanship of Dew Gunasekera.

May 26, 2015:

Probe commenced with Treasury Secretary Dr. R.H.S. Samaratunga and Director General, Department of Treasury M.S.D. Ranasiri was questioned (Later it was revealed Samaratunga took part in a discussion when Ravi K issued controversial directives to state bank officials pertaining to issuance of treasury bonds).

June 18, 23, 2015:

CoPE questioned Mahendran. The Singaporean was the last to appear before the committee.

June 25, 2015:

Wickremesinghe alleged CoPE denied him an opportunity to appear before the watchdog. (In terms of the Standing Orders, ministers cannot be summoned before COPE.)

June 26, 2015:

Sirisena dissolved Parliament to thwart CoPE presenting its report on Treasury bond scam. General election set for Aug. 17, 2015. The dissolution prevented Dew Gunasekera from presenting his report on the first Treasury bond scam. In a related action, UNP Deputy Justice Minister Sujeewa Senasinghe moved court to bar Gunasekera from releasing his report to the media.

June 28, 2015:

The writer in an exclusive story based on Dew Gunasekera’s suppressed report headlined ‘COPE inquiry finds Mahendran had intervened in bond issue’ in the June 28 edition of The Sunday Island dealt with Mahendran’s clear complicity in the first scam.

July 3, 2015:

Dew Gunasekera declared that Sirisena could take tangible action on what he called ‘dossier of evidence’ produced by his committee. Gunasekera asserted that Sirisena could call for a copy of the 447-page report from the Secretary General of parliament W.B.D. Dissanayake. President Sirisena chose not to do anything.

Aug. 17, 2015:

Parliamentary polls.

Nov. 27, 2016:

COPE reconstituted with JVP MP Sunil Handunetti as its Chairman.

March 29, 2016:

The second far bigger bond scam perpetrated. The Central Bank was still under Premier Wickremesinghe.

June 29, 2016: Sirisena visited the CBSL much to the discomfort of Wickremesinghe and Mahendran. Recently, President Sirisena revealed how Wickremesinghe tried to discourage him from visiting CBSL.

July 2, 2016:

Renowned economist Dr. Indrajith Coomaraswamy succeed Mahendran as Governor of CBSL after Wickremesinghe made an abortive bid, with the support of Karunanayake, to secure Sirisena’s approval for Charitha Ratwatte to be appointed to the post.

January 27, 2017:

Sirisena appoints P-CoI consisting of Supreme Court Judges Kankanithanthri T. Chitrasiri and Prasanna Sujeewa Jayawardena and former Senior Deputy Auditor General Kandasamy Velupillai to probe bond scams.

Aug. 2, 2017:

Karunanayake was humiliated at PCoI over the lease of a fifth-floor super luxury condominium apartment at the Monarch Residencies that was allegedly paid for by Arjun Aloysius.

Aug. 10, 2017:

Foreign Minister Karunanayake resigned in the wake of shocking revelations at the PCoI. Karunanayake received the foreign ministry portfolio on May 25, 2017. Karunanayake switched portfolios with Mangala Samaraweera.

Nov 16, 2017:

Evidence at the Bond Commission revealed how Arjun Aloysius had been in touch with some members of the COPE during its hearings. Aloysius had spoken a total of 227 times to Sujeewa Senasinghe, 18 times to Dayasiri Jayasekara, 176 times to Harshana Rajakaruna and 73 times to Hector Appuhamy during the period commencing January 2015.

Nov 20, 2017:

Wickremesinghe received kid glove treatment at PCoI with AG Jayantha Jayasuriya (now Chief Justice) specially assigned to question him. But Wickremesinghe’s affidavits received by PCoI in response to questions sent to him by it and the AG’s department and PM’s responses to AG Jayasuriya established the UNP’s leader’s complicity and failure to thwart the scams beyond doubt.

Dec 30, 2017:

PCoI report handed over to Sirisena.

Jan. 4, 2018:

Sirisena, in a special statement to the nation regarding the P-CoI report mounted a devastating attack on the UNP over Treasury bond scams in the run-up to the Feb. 10 local government polls.

Feb 04, 2018:

Arjun Aloysius and Chief Executive Officer of PTL Kasun Palisena arrested. Subsequently, they were granted bail.

Feb. 10, 2018:

UNP and SLFP suffered debilitating setbacks at the long delayed local government polls. Their sidekick JVP too suffered heavy defeat.

March 28, 2018:

Sirisena removed the Central Bank and the Securities and Exchange Commission from Wickremesinghe’s purview 1,125 days after the first bond scam and 727 days after the second bond scam.

April 04, 2018:

Wickremesinghe comfortably defeats a No-Confidence Motion (NCM) moved by the Joint Opposition and the SLFP against him by a majority of 46 votes.