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Editorial

A budget replete with optimism

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Tuesday 18th February, 2025

President Anura Kumara Dissanayake, in his capacity as the Minister of Finance, Economic Stabilisation and National Policies, yesterday presented his government’s maiden budget in Parliament. He said the goal of Budget 2025 was to fulfil the aspirations of the people who had voted the NPP into power, hoping for sustainable growth and development.

The NPP government’s efforts to present an election-oriented budget have partially succeeded and borne mixed results. However painful the IMF bailout conditions may be, they have made the new administration remain focused on the need to achieve economic recovery and act with some restraint, ensuring that, inter alia, its revenue will amount to at least 15% of GDP, and the primary account will have a surplus. The Economic Transformation Act (ETA) has also become a kind of straitjacket on the government. With the local government polls approaching, what the NPP administration would have done to garner favour with the public, if not for the IMF programme and the ETA constraints, is anybody’s guess. President Dissanayake has said his government intends to amend the ETA. If it is planning to lower the bar for itself, such politically-motivated action will entail adverse economic consequences.

There is no gainsaying that workers deserve better salaries. However, one wonders whether the NPP government, just like its predecessors, is labouring under the misconception that it can grant relief to the public by increasing the state sector salaries. In the late 1980s, the JVP coined a pithy slogan—kolombata kiri, gamata kekiri (‘milk for Colombo and melon for the village’)—to highlight the glaring urban bias in the allocation of state resources. Today, it looks like a case of kiri for state employees and kekiri for their private sector counterparts, who have to bear the burden of maintaining the ever-burgeoning public sector by paying high taxes. President Dissanayake lamented in Parliament that the state employees’ real income had decreased. The same holds true for the non-state workers, and other members of the public as well, but they have been left fending for themselves.

Among the budget highlights flaunted by the government is what it calls the highest-ever fund allocations for the health and education sectors. The government has undertaken to allocate Rs. 604 billion for health. The cost of social welfare (Aswesuma) will be Rs. 232.5 billion. Capital expenditure will amount to 4% of GDP. Such spending will benefit the public, but much more needs to be done to mitigate the economic hardships they are facing.

Bridging a 6.7% budget deficit will be a gargantuan task. President Dissanayake is hopeful that a 5% economic growth will be attainable in 2025. He says growth will be facilitated by a strong export sector, where the government expects the exports of goods and services to reach an all-time high of close to USD 19 billion in the current year; this growth in non-debt creating inflows along with robust economic growth and a primary account surplus of 2.3 percent of GDP will ensure that Sri Lanka will be well placed to make debt service payments from 2028 onwards.

President Dissanayake has said he expects the relaxation of restrictions on vehicle imports to deliver a bulk of the country’s revenue gains for 2025. It is fervently hoped that he is not being as optimistic as the proverbial poor man who ordered oysters for dinner hoping to settle the bill with pearls he expected to find on his plate. Some economic analysts have argued that there is the possibility of extremely high taxes, which are sure to drive automobile prices up, causing a drop in the sales of imported vehicles and preventing the government from achieving its revenue targets. How does the NPP administration propose to handle such an eventuality?



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Editorial

The battle of sinners

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Tuesday 18th March, 2025

Sri Lanka has been described as a country like no other. This description is not far-fetched. The government of Sri Lanka has tabled in Parliament an old presidential commission report that serves as a self-indictment, and the Police Department is still looking for its ‘head’. The Court of Appeal has rejected IGP Deshabandu Tennakoon’s petition seeking an interim injunction against an arrest order. The Batalanda Commission report, tabled by the JVP-led NPP government in Parliament contains some damning observations about the JVP’s reign of terror in the 1980s!

Allegations of torture and judicial executions could not have resurfaced at a worse time for the UNP and its leader Ranil Wickremesinghe. The much-delayed local government elections are on the horizon. The UNP has sought to pooh-pooh the Batalanda Commission report. Its supporters and other detractors of the JVP would have the public believe that the report is not worth the paper it is written on. They are busy trying to remind the public of the JVP’s terror campaign in the late 1980s. The Frontline Socialist Party (FSP), which is demanding justice for the Batalanda victims and legal action against the perpetrators of torture, is doing its darndest to conceal the fact that its leaders were actively involved in the JVP’s terror campaign during the 1987-89 period.

The JVP finds itself in the same predicament as the proverbial tippler, who dived headfirst into a poorly-lit swimming pool at night only to realise halfway through the plunge that it had been emptied. Let it be repeated that the Batalanda Commission report refers to the JVP’s crimes as well, and therefore it can be argued that the JVP has admitted to its past crimes, albeit unwittingly, by tabling that document in Parliament. Some of the current JVP and FSP stalwarts were in the JVP’s military wing, which committed heinous crimes during the 1987-89 period, in the name of their macabre cause, which the JVP has now forsaken as evident from the incumbent government’s policy programme. These characters will have to be prosecuted if a proper probe based on the findings of the Batalanda Commission gets underway.

The Batalanda Commission report says, inter alia: “As a result of terrorist activities of the JVP, hundreds of politicians, political activists, police officers and civilians were murdered. Terrorist activities affected the normal functioning of state organisations and in certain instances essential services were crippled thus causing immense hardships to the public. Hence, the situation was in fact extraordinary. It nearly led to a state of anarchy.” The Commission goes on to say, “It is noted with regret that the then government in fact resorted to extrajudicial methods to curb the spate of terrorism perpetuated by the JVP. The terrorism of the JVP was met with state terrorism.” One cannot but agree with the Batalanda Commission on this point. Both the UNP and the JVP must be held accountable for the savage crimes that shook the country in the late 1980s.

The Batalanda commission report has also shed light on the JVP’s political promiscuity and its readiness to sacrifice its socialist ideology at the altar of expediency. It says: “By the time the 1977 General Elections were declared, the peripheral organizers of the JVP were active, and in fact went to the extent of directly supporting the United National Party, which had been during that period classified as a right-wing capitalist force.” Thus, the JVP was instrumental in creating the monster that preyed on its leaders and cadres several years later. In 2015, it honeymooned with the UNP again, and in 2018, it saved the UNP-led government of Prime Minister Wickremesinghe, whom it is now demonising.

In the early 1990s, complaints abounded about the Batalanda torture chamber, and they should have been probed and the culprits brought to justice immediately after the 1994 regime change. But the SLFP-led People’s Alliance government and President Chandrika Bandaranaike Kumaratunga did not go all out to do so. Instead, Kumaratunga appointed the Batalanda Commission, whose report is full of flaws and lacks clarity. This may have been the main reason why the Kumaratunga government stopped short of initiating an investigation based on it.

Past crimes, however, have their own way of catching up with their perpetrators. The unfolding political drama, based on a 25-year-old presidential commission report, is a case in point. One can only hope that all those responsible for terror and excesses committed in the name of counterterror operations in the late 1980s will be made to pay for their crimes.

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Editorial

Doomed youth, killers and bogus messiahs

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Monday 17th March, 2025

Leader of the House and Minister Bimal Ratnayake, tabling the Batalanda Commission report in Parliament on Friday, mourned for the thousands of youth killed during the second JVP uprising in the late 1980s. Media reports have said that on listening to Ratnayake, Speaker Dr. Jagath Wickremaratne became choked with emotion and could hardly speak. It is only natural for anyone to be overwhelmed by such a moving narrative. Ratnayake’s speech reminded us of Wilfred Owen’s ‘Anthem for Doomed Youth’. Although this poetic elegy is about the horrors of World War I, it has relevance to other conflicts characterised by brutality and senselessness, especially the ones Sri Lanka has experienced. The first stanza of the poem comes to mind:

What passing-bells for these who die as cattle
Only the monstrous anger of the guns.
Only the stuttering rifles’ rapid rattle
Can patter out their hasty orisons.

The JVP drove tens of thousands of youth to suicide in an abortive bid to capture state power and implement its socialist agenda. It also sought to scuttle the Indo-Lanka Accord, the 13th Amendment, the Provincial Councils and defeat what it called Indian expansionism. The JVP claimed to be using violence as a means to an end, but in reality its savage terror became the means and the end both and eventually proved to be its undoing.

Today, the JVP is ensconced in power, having secured the coveted Executive Presidency and obtained a supermajority in Parliament. But its current agenda is antithetical to its much-avowed goal, which it led thousands of youth to lay down their lives for, in 1971 and during the 1987-89 period. What this glaring contradiction signifies is that the JVP has deep-sixed what those youth strove for. They died in vain. Were they taken for a ride?

The JVP, as the main constituent of the ruling NPP, has embraced the very economic policies it once condemned as neo-imperialist, accepted the 13th Amendment and devolution it went all out to sabotage albeit in vain, mended fences with India, which it likened to an octopus with tentacles spread all over Sri Lanka, opted for a honeymoon with the US, and above all, chose to follow the IMF dictates. It is also enjoying numerous benefits accruing from the Executive Presidency, which it would condemn as a source of evil.

It takes two to tango. The extrajudicial executions at issue must be condemned unreservedly, but they would not have taken place if the JVP had not taken up arms and incited the youth to violence. So, the blame for the savage killings in the late 1980s should be apportioned equally to the UNP and the JVP, which also killed countless dissenters and even traders who sold Indian goods including Bombay onions, which had to be renamed ‘Lanka loku lunu’ to save lives. Besides, it strove to sabotage elections and destroy the economy, seized thousands of firearms and committed many armed robberies in the name of its supposedly socialist cause.

The incumbent NPP government, especially the JVP, which is trying to make itself out to be a paragon of virtue and victim of the UNP’s violence, has done the right thing by tabling the Batalanda Commission report in Parliament. However, a discussion on a spree of counterterror which led to grave violations of human rights cannot be held in isolation of its cause––terror. Therefore, there is a pressing need to probe the JVP’s reign of terror and its heinous crimes as well. That will help make the narrative about the extrajudicial killings in the late 1980s complete. The Batalanda Commission report also sheds light on the JVP’s terrorism. This fact is sure to be highlighted when a parliamentary debate on the report gets underway. The JVP is opening a can or worms.

Meanwhile, the leaders of the Frontline Socialist Party, an offshoot of the JVP, have taken moral high ground, calling upon the government to take action fast in keeping with the recommendations of the Batalanda Commission report. These holier-than-thou characters were also in the JVP when it perpetrated barbaric violence in the late 1980s. They cannot therefore be considered less culpable than the leaders of the UNP and the JVP, where the 1987-89 bloodbath is concerned.

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Editorial

The gravy train

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The ongoing Committee Stage of the Budget 2025 debate due to end on March 25 has elicited some, if we may call it that, salacious information of the spending habits of functionaries of the previous regime. While the public was not unaware of the fact that the political hierarchies of successive governments in office lavished tax rupees on themselves, a trend that unfortunately kept growing from regime to regime post-Independence, there was no focus of how badly the situation had deteriorated until some telling figures were presented to parliament during the current budget debate when the spotlight was shone, among others, on the former speaker, Mahinda Yapa Abeywardene.

The first volley was fired when some figures on food costs at the speaker’s official residence was revealed. This indicated that Rs. 2.6 million had been spent on food at the speaker’s official residence in 2023 and Rs. 3.2 million on this account the following year. In a strong rebuttal that out stablemate, The Island, headlined “Ex-Speaker lambastes NPP Leader of the House”, Abeywardene denied that he had spent government funds for his personal meals saying that official expenditure incurred entertaining foreign diplomats and visitors had been lumped together to give the people the impression that he was eating off the tax exchequer. The former speaker’s statement might have struck a responsive chord in the public mind had it not been well known that many of his family members had been recruited to his personal and parliament staff following his assumption of office. Some had accompanied him on visits abroad.

Further figures were thereafter presented on the transport expenses of the former speaker, his deputy and the deputy chairman of committees. Leader of the House Bimal Rathnayake revealed that between Jan. 1, 2024 and Sept. 24, 2024, Abeywardene had used six vehicles with a fuel cost of Rs. 33.34 million over a period of nine months. The former deputy speaker had used six vehicles incurring a fuel cost of Rs. 13.5 million and the former deputy chairman of committees four vehicles burning fuel costing Rs. 7.2 million. There is no doubt that ex facie such expenditure is excessive and cannot be defended on any grounds. But also, as the former speaker has said, he is entitled by virtue of the office he holds to his own vehicle and two escort vehicles “as Prime Minister Harini Amarasuriya has found out for herself.” Abeywardene has further claimed that the expenses revealed were “statistically impossible” and invited investigative journalists using the Right to Information Act to find out what was spent on his account not only in 2023 and 2024 but also from 2020 when he assumed office as speaker.

Quite apart from the former speaker, the government seized the opportunity of flaunting details of public funds spent on the foreign travel of former presidents with Mahinda Rajapaksa spending some Rs. 3.6 billion between 2010 and 2014; Maithripala Sirisena Rs. 384 million between 2015 and 2019; Gotabaya Rajapaksa Rs. 126 million between 2019 and 2022 and Ranil Wickremesinghe who among other overseas visits attended the funerals of Queen Elizabeth and the Japanese Emperor as well as King Charles’ coronation spending Rs. 533 million. In contrast, incumbent Anura Kumara Dissanayake had spent just Rs. 1.8 million on three foreign trips since he assumed office in Sept. 2024, two of his air tickets being paid by the hosts. Government has also said that Dissanayake had returned unspent per diem allowances paid to him. In that context older readers may remember that Mrs. Bandaranaike as prime minister flew economy class to the consternation of host waiting to welcome her at the foot of the business class exit.

Apart from these there have been revelation of the of the big bucks paid to politicians whose homes and offices were destroyed by mobs at the tail-end of the aragalaya. It has been pointed out that sums running to over Rs. 1.2 billion had been paid to 43 MPs ranging from a relatively modest half million rupees to over Rs. 90 million. Other politicians too, at local government level, have been compensated. This appears to have been done in a hush hush manner with details, including the names of the beneficiaries and what was paid to them emerging only earlier this year. It has been pointed out that the maximum compensation payable to people who have lost their homes in natural disasters is Rs. 1.5 million. After the 1983 riots, the government set up a body called Rehabilitation of Industrial Property Authority (REPIA) to compensate riot victims but payments were relatively low. Over and above that, the media is repleted with stories of the vast amounts spent on former resident Mahinda Rajapaksa’s Colombo residence.

Such to-ing and fro-ing is inevitably the nature of politics. So the former speaker cannot be faulted for taking a side swipe at the current regime by saying that while it presents itself today as a guardian of public funds, the history of the JVP demonstrates that it was responsible for destroying billions of rupees worth of public property during its two insurrections in 1971 and 1988-89. While all this is true, there appears to be a serious effort by the current dispensation to curtail unconscionable benefits enjoyed by politicians. Already MPs must pay realistically for what they eat at the once highly subsidized parliament restaurant and it has been promised that their pensions after a mere five years service are on the way out. Privileges accorded to former presidents too are being trimmed. All to the good.

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