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Probes and probity

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Saturday 9th October, 2021

The Opposition may have expected the government to defend Thirukumar Nadesan and his wife Nirupama Rajapaksa openly over the Pandora Papers revelations and get into a bigger political mess in the process. But the latter chose to act intelligently, for once. It ordered a probe—not out of any genuine desire to ascertain the truth and institute legal action against anyone but in what appears to be a bid to deflect criticism.

An otherwise lethargic Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has swung into action. Asked by this newspaper what action it would take in respect of the Pandora Papers allegations against Nirupama and her husband, the CIABOC said it could act only if a complaint was lodged. In fact, it is not in a position to initiate an inquiry or an investigation of its own volition thanks to the draconian 20th Amendment, which stripped it of some vital powers. No one had made a complaint by that time. Curiously, a presidential order galvanised the CIABOC into action. It summoned Nadesan and recorded a statement yesterday.

Interestingly, President Gotabaya Rajapaksa is a member of the ruling family, which its political rivals are all out to implicate in the questionable offshore financial transactions of Nadesan. He has also asked the CIABOC to submit a report to him within one month!

It would have been much better if the CIABOC had been able to probe the Pandora Papers disclosure on its own. All Executive Presidents have not cared to rise above partisan politics and act impartially, and therefore presidential directives are not devoid of politics.

Not all shell company owners are engaged in criminal activities; but most of them are responsible for tax evasion, which needs to be investigated separately. Most of those involved in offshore financial transactions have caused huge losses to their home countries by parking their money overseas illegally. The International Consortium of Investigative Journalists (ICIJ), which carried out the Pandora Papers investigation, has said the losses at issue range from USD 5.6 trillion to USD 32 trillion. The International Monetary Fund is of the view that the losses that tax havens cause to many countries around the world could be as high as USD 600 billion a year. The existence of the offshore world aggravates global poverty and inequalities because it deprives the developing nations of some of their tax revenue, as we pointed out in a previous comment. Therefore, besides the ongoing CIABOC probe, there must be a multi-agency investigation into the ICIJ revelations about Sri Lankans, like the one India has ordered.

Offshore transactions are extremely complex processes, and if the CIABOC is capable of conducting a thorough probe into the allegations against Nadesan and submit a report thereon to the President within one month, there is no reason why it should take years to finish other probes that do not involve such complex operations.

If the CIABOC is to carry out its duties and functions free from political influence, it should be made independent of the Executive President as well. It may be recalled that all political parties, represented in Parliament, sank their differences and deprived the national anti-graft commission of the power to inquire into allegations of bribery or corruption sua sponte, in 1994. This power was restored by the 19th Amendment to the Constitution (2015), which made it ‘lawful for the Commission … to inquire into, or investigate an allegation of bribery or corruption, whether on its own motion or on a written complaint made to it.’ There were flaws in the 19th Amendment that had to be rectified, but the salutary provisions like the aforesaid one should have been retained. The 20th Amendment, which was crafted to strengthen the executive presidency, stripped the CIABOC of that power again. Otherwise, there would have been no need for the President to order the CIABOC to initiate an investigation into the ICIJ findings anent Sri Lanka, and, above all, the probe would have been more acceptable to the public.



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Tobacco and alcohol claim 22,000 lives annually

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Health and Mass Media Secretary Dr Anil Jasinghe speaking to NPP MP Samanmali Gunasinghe during the sectoral oversight committee meeting

NATA to be given more powers

The Parliamentary Sectoral Oversight Committee on Health, Mass Media and Women’s Empowerment has agreed in principle to ban single-stick sales of cigarettes and increase taxes on tobacco products, according to parliamentary sources.

The decision was reached during an institutional review of the National Authority on Tobacco and Alcohol (NATA) held recently in Parliament. The meeting was chaired by MP Dr. Nihal Abeysinghe.

During the review, NATA officials informed the committee that approximately 22,000 deaths occurred annually in Sri Lanka due to tobacco and alcohol consumption. They said the country suffered an economic loss of between Rs. 225 billion and Rs. 240 billion each year due to the consumption of tobacco products and alcohol.

Officials told the committee that steps were underway to amend the National Authority on Tobacco and Alcohol Act to grant it more powers.

Noting that 104 countries had already banned the sale of loose cigarettes, the underscored the need for Sri Lanka to adopt a similar policy. When loose cigarettes were sold, mandatory health warnings on cigarette packets were not visible to consumers, the NATA officials said.

The committee was also briefed on the importance of imposing taxes on cigarettes after determining their retail prices, as part of broader measures aimed at reducing tobacco consumption.

Commenting on the matter, Dr. Abeysinghe said the committee was prepared to extend its full support for the proposed amendments to the Act, as well as for other programmes and initiatives undertaken by the National Authority on Tobacco and Alcohol.

Deputy Chair of the Committees Hemali Weerasekara, committee members MPs Dayasiri Jayasekara, Muneer Mulaffer, Samanmali Gunasinghe, Prof Sena Nanayakkara, Dr S. Sri Bhavanandarajah, Dr Ramanathan Archchuna and with the permission of the Chair, MPs Dr. Janaka Senarathna and Dr Pathmanathan Sathiyalingam were present at the committee meeting.

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Development Officers hunger strike drags on for fourth day

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Development officers on hunger strike demanding absorption into the teacher service, outside the Presidential Secretariat at Colombo.

The hunger strike launched by a group of Development Officers demanding their absorption into the teacher service entered its fourth day yesterday (29) outside the Presidential Secretariat Colombo.The protesters, members of the Ceylon School Development Officers’ Union (CSDOU), began their satyagraha on January 26.

One of the four officers participating in the fast-unto-death fell seriously ill on the fourth day and was rushed to hospital for treatment, while the remaining three continued the hunger strike. Earlier, Dr. Chamal Sanjeewa, President of the Doctors’ Trade Union Alliance for Medical and Civil Rights, visited the protest site to examine the health of the protesters and oversaw the administration of saline to those suffering from dehydration.

CSDOU Secretary Viraj Manaranga criticised authorities for refusing to listen to the protestors.

“Not a single official from the relevant authorities has come forward to hear our grievances, which is a matter of serious concern,” he said, accusing the government of negligence and “stepmotherly treatment” of the issue.

The Ceylon Teachers’ Union (CTU) echoed the need for legal and procedural adherence, noting that there are currently 40,000 teacher vacancies nationwide. The union stressed that a significant number of development officers and graduates remain outside the teaching service, despite provisions in the teacher service constitution allowing for their appointments, which fall under the powers of Provincial Councils.

National People’s Power (NPP) MP Chandana Sooriyarachchi said graduate development officers are required to sit a compulsory competitive examination. Former Education Minister Akila Viraj Kariyawasam, who oversaw appointments under the Good Governance administration, also stated that direct appointments are legally not feasible. He added that school development officers were absorbed into the teacher service in 2018 through competitive exams and stressed that appointments must follow established procedures, warning that strikes would not alter this process.

The hunger strike continues to draw attention to the demands of the Development Officers as they urge the government to take immediate steps to address their grievances.

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IMF urges Lanka to diversify trade amidst global tariff risks

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Srinivasan

Sri Lanka and other small Asian economies must accelerate trade diversification or face heightened vulnerability to global tariff disputes and shifting supply chains, warned Krishna Srinivasan, Director of the Asia and Pacific Department at the International Monetary Fund (IMF).

Speaking in Colombo on the evolving global trade landscape, Srinivasan highlighted Asia’s growing exposure, particularly in the wake of tariff tensions between the United States and China. “Asia benefited a lot from trade integration, benefited a lot from openness to trade,” he said. “So much so that when tariffs were imposed by the US, Asia was subject to the highest level of tariffs.”

He cautioned that the region that gained most from open markets is now at risk of bearing the brunt of protectionist measures. For countries like Sri Lanka, he said, the message is clear: diversify or be exposed.

Srinivasan also noted that South Asia remains the least integrated sub-region in the continent. “Having greater integration with your partners within the sub-region will take you a long way,” he said. For small economies, he added, building deeper trade ties with neighbours and broadening export and production bases is essential for resilience.

Meanwhile, Sri Lanka has received a strong vote of confidence from the IMF following a high-level meeting between President Anura Kumara Dissanayake and the delegation at the Presidential Secretariat.

The visiting IMF representatives, who arrived on January 22 to assess the damage caused by Cyclone Ditwah, spent a week touring the island, engaging with affected communities and observing the impact firsthand. In a briefing, the delegation praised the government’s swift relief efforts, infrastructure restoration, and commitment to rebuilding lives, noting widespread appreciation among citizens for the administration’s handling of the crisis.

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