News
Dodgy Politics of ‘Viyathuns’
“The Island” on Saturday (8 August) has carried a report, captioned “A sizable Viyathmaga group enters Parliament”. The content of this report should be assessed against the slogan – electing “educated” people to the Parliament, gaining currency in the recent past mainly due to the deterioration in parliamentary standards and decorum.
Under British colonialism, in 1910, it was claimed that in the Legislative Council “the low country Sinhalese, the Kandyans and Tamil peasantry are represented in the Legislative Council by native members, selected from the educated classes of these races.” But, in actual practice, British Government Agents, of the Western and Central Provinces, were nominated as the “real representatives” of the peasantry, under the pretext that the “best part of their lives has been spent in Ceylon”. Under McCullum reforms, in 1910, an “Educated Ceylonese Constituency “was declared possessing stipulated professional, income or educational qualifications for voters not registered in the European and Burgher electorates.
Have we not elected “educated” people to the legislature – to the State Council and, thereafter, to the Parliament – since we gained adult suffrage in 1931, the year we began the real electoral process? Nobody can deny that since 1931, to date, we have elected QCs, PCs, a host of lawyers of different kinds, doctors, chartered accountants, engineers, academics, including a few vice-chancellors, and other professionals, to represent the people. Many of those had held very important portfolios. Similarly, many of those were responsible for our ongoing economic, political, socio-cultural problems and disasters, as well as the blunders made in the international arena. Elaboration is not needed that it was the “educated” representatives who were behind the divisive politics, on communal lines, in Sri Lanka. One of the most eminent Vellala Mathematicians, who disliked Ivor Jennings being appointed as the Vice-Chancellor of the University of Ceylon, who later became an MP, was in the forefront of preventing the depressed castes of Jaffna entering the Maviddapuram Kovil, the in mid-sixties.
Is appointing more “Viyathuns” to the Parliament the solution to our economic, political and socio-cultural problems? Before answering this question one must have a clear definition of the Sinhala term “Viyatha” and its plural “Viyathun”. Here we do not intend to give its many-faceted meanings, found in classical Sinhala literature, because it is a very cumbersome exercise. There are many references to “Viyathun” and “Viyath Sabha” in classical Sinhala literature. One such reference is “Viyath Na” or “Viyath Nayaka”, signifying the Teacher of the King. This term was unashamedly used by one of our Viyathuns as one of his recent election slogans! A grave error made by many in the present context is to use the term “Viyathun” to describe professionals and technocrats, which is absolutely wrong. Another misconception is using the term “Viyathun” to denote our so-called intellectuals. Chairman Mao, in his writings, had defined clearly the class characteristics of intellectuals.
Soon after the November Presidential Elections, writing to a Sinhala weekly, I have stated that one of the biggest challenges of the new President is striking a balance between the technocrats and the seasoned politicians, headed by MR, working at grass-root level; in other words establishing a close relationship between the technocrats, who are clad in three-piece suits, and the seasoned politicians who wear cloth and banyan. The success of the future governance will depend, basically, on the success of this close affinity.
We should not forget that in the recently concluded General Elections, the Viyathuns reaped the harvests in the fields asweddumised by the grass-root level politicians, who toiled day and night, for many years, who worked against all tremendous odds, braving stormy weather and physical harm. We identify these two groups as sowers (ploughmen) and reapers. The reapers also had the benefit of the “wave” which we have observed in the 1956, 1970 and 1977 General Elections. According to popular lore, in 1977, fielding even a “polpittha” was enough to win a parliamentary seat. Riding on the waves is an easy task, rather than clearing wayside roadblocks and obstacles. The sowers were equipped with unparalleled organising ability.
Viyathuns may have produced results in their chosen fields and careers. It is not a guarantee they will succeed and stand out in a different field, under different circumstances. Only in business you convert challenges into opportunities. In politics, challenges take one to the brink of disaster.
During the recently concluded Parliamentary elections, we observed “Viyathuns” resorting to the same ugly tactics, used by seasoned politicians, when they entered the “manape” fray. We heard self-centered, egoistic slogans and saw third-grade celluloid-hero type videos. We also witnessed open conflicts, and even use of strong arm tactics, by the sowers and reapers. It was evident that to win, any “Viyatha” had to come down to the level of a grass-root level politician. Financially, materially and in terms of the number of “catchers’ around them, they were not poor. They matched or, in most cases, overwhelmed their senior cousins in advertising. It was rumoured that some obtained millions for their election campaigns. As true “Viyathuns” they should disclose their funding sources, setting an example, inculcating a new political culture.
Making loud noises, without any substance, at public gatherings, like “beating a palm frond with gravel” (“thal aththata boralu gahanawa”) is not a quality of a “Viyatha’. We saw many “Viyathuns” occupying the centre stage and later decamping, accepting high posts and becoming ideologues of the opposing camp. So, we have to be very careful when we deal with “Viyathuns” who are very liberal in their thinking, who do not have any sound political ideology, euro-centric in art and cultural values like any other politician in opposing camps, and who do not provide space to art and culture in their political agendas.
SENA THORADENIYA
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Unions resist tripartite EPF management plan
… warn of dire consequences
A group of trade unions and civil society groups has requested President Anura Kumara Dissanayake to abandon his government’s controversial plan for the proposed tripartite management of the EPF.
The group has told the President: “We strongly object to the government’s plan to transfer the EPF to a tripartite board—jointly promoted by the Employers’ Federation of Ceylon (EFC), International Monetary Fund (IMF) and the International Labour Organisation (ILO)—and to increase the investments of those funds within private equity and debt markets.
“While the EFC and the government jointly project this plan as a ‘modern governance framework’, it poses a serious threat to the EPF’s financial stability, fiduciary conduct, and returns to workers’ life savings, with severe consequences for broader macroeconomic stability. Rather than replacing the corruption existing in the public sector, this tripartite framework paves the way for a corporate takeover of the EPF. Through this, the fund is exposed to unlawful business practices such as insider trading using internal information of EPF investments, conflicts of interest and corporate bailouts of unstable private companies.
“Sri Lanka’s corporate sector has a tremendously negative track record, which you alluded to during your victorious election campaign in 2024. This was recently unravelled by the multi-billion-dollar illicit capital flight through trade misinvoicing, which your administration is now actively working to curb in the imports sector.
“The recent banking sector fraud exceeds Rs. 13 billion; widespread corporate tax evasion destabilised the fiscal position (Sri Lanka Auditor General’s Department Annual Reports) and consequently inflated the tax burden on the general public. The EFC has found it convenient to remain silent about these crimes, possibly assuming that their silence would preserve their social standing. Considering this inherent corruption within Sri Lanka’s corporate sector and its disregard to the living standards of the general public, there is no realistic basis to integrate corporate interests to actively manage the EPF. The corporate sector of Sri Lanka has not developed sufficiently on technical and ethical grounds to safely entrust the largest retirement savings pool in the country. The EPF is a captive fund that has no mechanism for the owners to divest if the management is corrupt. This further increases the possibility of corporate fraud when the management of the fund is jointly held with the corporate sector.
“Furthermore, during the recent public discussion with trade unions, Deputy Minister of Finance Dr. Anila Jayantha pointed out that the domestic debt restructuring (DDR) would inflict a loss of Rs. 600 billion to the EPF. Our independent calculations—formally submitted as an affidavit to the Supreme Court approved by the Federation of University Teachers’ Associations in 2024—reveal that nominal loss alone is Rs. 634.4 billion. When factoring in foreclosed reinvestment returns, the true loss skyrockets to Rs. 1,711 billion, wiping out 48% of the fund’s projected gross income for the 2023 – 2028 period. Under the pretext of safeguarding the banking system, this colossal robbery preserved high yields on government bonds held by commercial banks and high-net-worth individuals, subsequently reaping them astronomical profits. Now, the exact same plunder is rearing its head again disguised as a tripartite committee.”
“The main arguments supporting our resistance and viable alternatives for optimising EPF management directly under the Central Bank of Sri Lanka (CBSL), are outlined below.
“Objections to the government’s tripartite proposal:
1. The “International best practice and conflict of interest fallacies”
The government holds that tripartite management of pension funds is the “international best practice” and that there is a “conflict of interest” in CBSL managing the EPF. They are key pillars justifying government’s tripartite proposal.
These two positions are shockingly misleading given that four of the five largest pension funds in the world, in Norway, Japan, the U.S., and Singapore, are managed directly by state bodies or central banks. Therefore, ‘international best practice’ in pension fund management is the exact opposite of what the government and the IMF are proposing. We hence reject these baseless positions.
2. Corporate captivity and bailouts
It is clear that the EFC is desperately pushing for this proposal at a time of global uncertainty, to cushion the effects of the crisis and maximise gains. Under corporate influence within the proposed tripartite board, the private conglomerates can use the multi-trillion-rupee EPF to continue their unstable commercial operations without having to risk their own capital or savings to do so. This will severely erode the financial stability of the EPF and its returns.
3. Risk of front running
“Because the EPF is a colossal fund, its investment decisions can alter asset prices. This creates immense monetary value for the information generated by its investment decisions. Corporate representatives on the proposed tripartite board will be perfectly positioned to use this information to trade ahead of the EPF (front-running), buying assets cheaply and dumping them onto the EPF at inflated prices for guaranteed corporate gain, resulting in a reduction of returns to the EPF.
4. Unavoidable loopholes
“Presence of a separate group of investment analysts, trade union representatives and government officials within the proposed tripartite structure cannot prevent pre-market corporate access to EPF’s investment decisions. Investment proposals made by the analysts has to be first approved by the proposed tripartite committee, making it impossible to prevent corporate access to insider information on EPF investments.”
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