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Editorial

Dollars and conscience

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Friday 5th August 2022

Sri Lanka’s struggle to shore up its crumbling economy continues, and there are no signs of promised foreign assistance materialising anytime soon. The Cabinet has just retained the services of some foreign firms for external debt restructuring, which is one of the main conditions for the IMF bailout package. When the country finally decided to ask for IMF help, after months of dilly-dallying, which took a heavy toll on its foreign reserves, it expected some bridge loans to tide it over until the finalisation of IMF assistance. But it has been left to fend for itself; only India has extended some tangible help, which has stood it in good stead. At this rate, the IMF is likely to take a month of Sundays to deliver promised assistance, and the economic situation here is sure to take a turn for the worse, further aggravating social unrest, which inhibits economic recovery.

Governor of the Central Bank of Sri Lanka (CBSL) Dr. Nandalal Weerasinghe has expressed displeasure at the manner in which local exporters are handling their dollar earnings. Taking part in a recent Hiru TV discussion, he said Sri Lanka’s export proceeds amounted to about one billion dollars a month, but only 20% of them were converted to rupees, and exporters claimed that loan repayments and raw material imports, etc., accounted for 80% of their foreign earnings. Disputing their much-publicised claim, Dr. Weerasinghe said that according to the CBSL data, those percentages were not realistic, and about 50% of export proceeds should be brought into the country through the banking system and converted to rupees. If the exporters did so, the country would have enough dollars for fuel imports, he added.

Everyone knows that most Sri Lankan exporters park a sizeable chunk of their foreign earnings overseas while the country is desperate for forex. The question is how to ensure that the country benefits from its export proceeds the way it should. Many economic analysts have been asking this question during the past several years, but there has been no satisfactory answer, much less meaningful action to prevent forex rackets. Jayampathy Molligoda, in his article, ‘Why is the Singapore dollar strong and the SL rupee weak?’ published in this newspaper on Wednesday (03), discussed some vital issues pertaining to export earnings. Pointing out that the private sector had benefited from low interest rates, and the float of the rupee, he asked whether the country was getting export proceeds in keeping with the applicable regulations and, if not, whether the CBSL strictly enforced penalties for noncompliance.

As for the government’s efforts to boost the forex inflow by removing impediments thereto, the so-called moral suasion alone will not do. There are some exporters who really feel for the country and play a straight bat, as it were, but sadly they are only a microscopic minority. The need for tough laws to curb forex rackets cannot be overemphasised. Some loopholes in the Exchange Control (FE) Act have enabled unscrupulous exporters to leave most of their dollars overseas while the Sri Lankan economy is screaming, and they have to be closed as a national priority.

Leniency breeds irregularities in the world of business. This is what has happened since 2017, according to the Opposition, which says the original FE Act, which was designed to prevent questionable forex outflows, was replaced with a new one in 2017 under the Yahapalana government purportedly to liberalise the flow of foreign exchange. The move was obviously aimed at helping the UNP cronies, some of whom had fallen foul of the law. The new Act, according to the Opposition, did away with provision for the mandatory confiscation of assets of the forex law violators; under the previous Act, such violations were criminal offences.

The FE Act, which is said to have benefited forex racketeers, has to be changed and remedial action taken to regulate export proceeds, which are a sine qua non for resolving the current economic crisis. Ironically, the aforesaid questionable changes to the FE laws were introduced when Ranil Wickremesinghe was the Prime Minister in the Yahapalana government. Its ill-effects are being felt under his presidency!

Now that it has been revealed that the exporters’ skulduggery costs the country a huge chunk of export proceeds, and has stood in the way of efforts being made to raise dollars for fuel imports, etc., the government has to do everything in its power to strengthen the foreign exchange laws. Fairness demands that the wealthy exporters who benefit from a host of concessions and the rupee depreciation, make a significant contribution to the ongoing efforts to revive the economy and ameliorate the suffering of fellow citizens. Exporters themselves will gain hugely from the availability of dollars for imports, especially fuel, which is essential for economic recovery and socio-political stability.



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Editorial

Waiting for Godot?

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Wednesday 23rd April, 2025

A four-member committee has been appointed to study the report of the Presidential Commission of Inquiry (PCoI) that probed the Easter Sunday terrorist bombings (2019). It comprises a Senior Deputy Inspector General (Chairman), the DIG of the CID, Director of the CID and the Director of the Terrorism Investigation Division. It is reported to have set up several subcommittees. Based on new evidence that may emerge, fresh investigations will be launched, the Police Media Spokesman has said.

Thus, the NPP government, too, has chosen to kick the can down the road, so to speak. All signs are that the committee and its subcommittees will take a month of Sundays to study the PCoI report, and fresh investigations to get underway on the basis of their findings and observations could go on until the cows come home.

What impact will the PCoI report have on the police investigations that have been going on into the Easter Sunday carnage for years? If the police have not already drawn on the PCoI findings and observations in probing the terror attacks, their investigations are likely to be delayed further until the conclusion of the perusal of the document.

One may recall that in August 2021, the Catholic Church demanded credible answers, within one month, to questions regarding the Easter Sunday tragedy. Its ultimatum, given in a 20-page letter, prompted the Gotabaya Rajapaksa government to have the then IGP C. D. Wickramaratne issue a special statement explaining why the probe into the Easter Sunday terror attacks had been delayed. He found fault with those who had handled the police investigations previously.

Wickramaratne’s statement, which shed light on the sorry state of affairs in the CID and other investigative branches of the police, warrants the attention of those who seek justice for the Easter Sunday carnage victims expeditiously. Wickramaratne said the police probes into the terror attacks had been riddled with flaws. Investigators had been in an inordinate hurry to make the bombings out to be the work of a handful of extremists with links to ISIS, and no serious attempt had been made to get to the bottom of the carnage, he said, claiming that they had also taken great pains to prove that all those involved in the terror attacks had been either killed or arrested. Some police officers handling investigations had acted irresponsibly, said Wickramaratne, noting that certain ego-driven investigators had tried to conclude the probes fast, and claim the credit for that; their approach had adversely impacted the criminal investigations.

The PCoI report had been referred to the Attorney General for necessary action, Wickramaratne noted, claiming that the previous investigations had been characterised by a total lack of coordination among the investigation teams, who worked in water-tight compartments. That fact had become evident from the way some incidents had been probed before the Easter Sunday bombings, IGP Wickramaratne said, pointing out that their interconnectedness had gone unnoticed.

Some other factors IGP Wickramaratne adduced to explain the delays in the police investigations in question were the process of ascertaining information from the countries where some suspects were living, and the gathering of evidence pertaining to telephone conversations from 24 June 2014 and analysing them to determine when the dissemination of extremist ideas began in this country and how extremism developed. Among those who aided and abetted the perpetrators of the Easter Sunday attacks were some educated persons and professionals, and given their calibre and social standing, investigations had to be carried out thoroughly if they were to be successfully prosecuted, Wickramaratne said, claiming that it had taken four years to bring those responsible for the bomb attack on the Dalada Maligawa in 1998 to justice, and investigations into the suicide bomb attacks on a religious ceremony held by a mosque at Akuressa in 2009 had taken seven years. The police had been able to carry out those investigations free from pressure, he said.

Cabinet Spokesman Dr. Nalinda Jayatissa has gone on record as saying that the task of disclosing the masterminds behind the Easter Sunday terror attacks should be left to the CID and the judiciary. The government, which promised to name the terror masterminds itself, has made another about-turn! With the investigative process marked by delaying tactics, inaction and deflection, it may not be unreasonable to say that at this rate, justice for the victims of Easter Sunday carnage may be galactic years away.

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Editorial

Endless probes and conspiracies

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Tuesday 22nd April, 2025

The sixth anniversary of the Easter Sunday carnage has passed, yet the government has failed to fulfil its pledge to make an earth-shattering revelation about the masterminds behind it. Instead, President Anura Kumara Dissanayake has handed over to the CID all volumes of the final report of the Presidential Commission of Inquiry (PCoI) that probed the 2019 terror attacks.

The PCoI has not recommended that its complete report be handed over to the CID. It has requested the President to send ‘a complete set of the report to the Attorney General to consider institution of criminal proceedings against persons alleged to have committed the said offences’.

Interestingly, the PCoI report the President has sent to the CID contains some key findings that run counter to the government’s contention that there was a political conspiracy behind the carnage. The report says in Chapter 32: “The original plan of Zahran was to attack the Kandy Perahera. But it was advanced due to the recovery of explosives from Wanathawilluwa and international factors. IS was losing ground in Syria and Iraq and called on its faithful to launch attacks. He was also concerned that the law enforcement authorities may apprehend him soon” (p. 467).

There is a vital document that President Dissanayake should hand over to the CID. It is the report of the Imam Committee, which probed the allegations made in a Channel 4 programme, ‘Sri Lanka’s Easter Sunday bombings – Dispatches’, telecast on 5 Sept., 2023. That presidential committee comprising former Judge of the Supreme Court S. I. Imam (Chairman), former Commander of the Sri Lanka Air Force Air Chief Marshal Jayalath Weerakkody and President’s Counsel Harsha A. J. Soza, has debunked a much-publicised claim by a person named Azad Moulana that there was a link between Sri Lanka’s military intelligence and Zahran’s terror group.

Some critical aspects of the Easter Sunday terror attacks have not been investigated thoroughly. One may recall that three months after the tragedy, Archbishop of Colombo Cardinal Malcolm Ranjith, reportedly said, at St. Sebastian’s Church, Katuwapitiya, that the terror attacks had been part of an ‘international conspiracy’. Media reports also said he had lashed out at President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe for lacking the courage to resist the foreign conspiracy to destabilise Sri Lanka. As we pointed out yesterday, he is one of the key witnesses who said in their testimonies before the PCoI that probed the Easter Sunday carnage that there had been a foreign hand/conspiracy behind the terror attacks.

Meanwhile, in a leaked audio clip of what is described as a telephone conversation between Deputy Minister Rajan Ramanayake and SSP Shani Abeysekera, during the Yahapalana government, about the Easter Sunday terror attacks, the latter is heard telling the former something in Sinhala to the effect that Mohamed Ibrahim, a wealthy businessman who was a JVP’s National List nominee for the 2015 general election, cannot be so stupid as not to have known what his two sons, who carried out suicide bomb attacks on 21 April 2019, had been doing. If this audio recording is not fake, the CID should go by Abeysekera’s contention, and interrogate Ibrahim again as part of their efforts to identify the terror masterminds. One may recall that when Ishara Sewwandi, a female accomplice of the gunman who killed underworld leader Ganemulle Sanjeewa in a courtroom at Hulftsdorp, went into hiding, the police arrested and grilled her mother and brother. The question is whether the NPP will allow its former National List candidate to be interrogated.

The government and the CID must peruse all reports on the Easter Sunday terror attacks thoroughly, keep an open mind and follow evidence wherever it leads if the integrity of the ongoing probe is not to be undermined. Politically motivated timeframes must not be imposed on criminal investigations.

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Editorial

Easter Sunday carnage probe: More questions than answers

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Monday 21st April, 2025

The sixth anniversary of the Easter Sunday terror attacks, which claimed about 270 lives and left more than 500 persons injured, falls today. Those who have lost their near and dear ones in the tragedy are still crying out for justice. There have been four Presidents and three governments since the savage terror attacks, yet the search for the masterminds behind them is still ongoing.

A few weeks ago, the incumbent NPP government had the public believe that it would reveal something earth-shattering about the terror masterminds soon, but it is now humming a different tune. President Anura Kumara Dissanayake has reportedly handed over the report of the Presidential Commission of Inquiry (PCoI) that probed the Easter Sunday terror attacks to the CID. We thought the CID had received it much earlier!

There have been more questions than answers regarding the Easter Sunday terror attacks, with a host of claims, counterclaims, about-turns, conspiracy theories, and above all, partisan politics complicating both the investigative process and the quest for justice.

There are two main schools of thought in respect of the Easter Sunday carnage. One insists that the National Thowheed Jamaath (NTJ), which carried out the bombings, was used by some politicians and intelligence bigwigs loyal to them to achieve a political goal whereas the other claims that the NTJ led by Zahran Hashim unleashed terror at the behest of the ISIS. The proponents of the first school of thought have been influenced by a call made by a Parliamentary Select Committee (PSC) that probed the Easter Sunday carnage, in 2019, for further investigations to ascertain whether there had been an attempt ‘to create and instil fear and uncertainty in the country in the lead-up to the presidential election to be held later in the year’. Their opponents have offered a different narrative.

On 19 May 2021, the then Minister of Public Security Sarath Weerasekra told Parliament that the US Federal Bureau of Investigation had confirmed that Moulavi Mohamed Ibrahim Mohamad Naufer was the mastermind behind the Easter Sunday attacks. He said so in response to a statement made by Attorney General Dappula De Livera the previous day that there had been ‘a grand conspiracy’ behind the terror attacks.

Maithripala Sirisena, who was the President at the time of the Easter Sunday bombings in 2019, has said that he conveyed some vital information about the tragedy to the government. He has refused to reveal it to the public, and the government has chosen to remain silent on his claim. BBS General Secretary Ven. Galagoda Aththe Gnanasara Thera has said he knows who the Easter Sunday terror mastermind is, but he will divulge that information only to the President and the Defence Secretary. When Dr. Nalinda Jayatissa, who was a member of the PSC that probed the Eastern Sunday carnage in 2019, was in the Opposition, he told BBC that according to ‘investigative evidence’ he was privy to, India had been behind the terror attacks. He is now the Cabinet Spokesman. It will be interesting to know the other government leaders’ position on his allegation. Curiously, the CID has not recorded a statement from him on his very serious claim.

Meanwhile, the aforesaid PCoI report contains a Chapter on evidence given by eleven prominent persons, who categorically stated they believed that there had been a foreign hand or conspiracy behind the Easter Sunday carnage. Those witnesses are Cardinal Malcolm Ranjith, former President Sirisena, former Minister Rauff Hakeem, former Minister Rishad Bathiudeen, former Governor Azath Salley, SJB MP Mujibur Rahman, former SIS Director SDIG Nilantha Jayawardena, former STF Commandant M. R. Latiff, former Chief of Defence Staff Ravindra Wijegunaratne, former SDIG CID Ravi Seneviratne and former CID Director SSP Shani Abeysekera. Claiming that their statements were mere ipse dixits (assertions made but not proven), the PCoI report has said that no such foreign link was found (p. 472). The Commission should have dug deeper before arriving at such a conclusion. It has, however, recommended that certain identified parties be further investigated. This has not been done. Some of the aforementioned witnesses have since made public statements that contradict their testimonies before the PCoI, and they owe the public an explanation.

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