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A Political Solution – Who needs what Kind of Solution?

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Shivanthi Ranasinghe

The Tamil National Alliance (TNA) got a nasty shock at the recently concluded general elections. Meera Sirinivasan for The Hindu warns in the article titled “The Centrality of Devolution in Development” that to interpret this result “as a shift away from long-pending political demands is at best reductive and at worst dangerous”.

As Sri Lanka is yet again at a juncture where a new constitution is being contemplated, a reality check on Sirinivasan’s warning is timely. It is important to understand the validity of the demand as well as its feasibility. After all, this demand for self determination has been dominating Sri Lankan politics and international relations for a very long time. 

Despite the passage of time, persistence and international pressure, this “historic” demand is still far from its goal. Sirinivasan argues that it is a legitimate and democratic right to be able to “actively shape their political and economic destinies” and a necessity as “a vital check against a ‘majoritarian’ state deriving power and legitimacy from its core ethno-nationalist base.” 

The first question that must be clarified is: who is it that is being referred to as “their”? 

 

Who are “They”?

Throughout her argument, Sirinivasan interchanges “their” to refer to both the Tamil community and the Tamils living in the North and East. However, Tamils in Sri Lanka are not confined to only these two areas of the Island. In fact, over 52 percent of Tamils live outside these two areas. Furthermore, the North and East there are not only Tamils in the North and East, but also Sinhalese and Muslims live there. 

In the East, the three communities live in roughly equal proportions. The rising Muslim population however may overtake the other two communities before long. It is true that at present the Sinhala and Muslim presence in the North is marginal. However, that absence was artificially created by the LTTE. 

The domestic mechanism to investigate the causes for the three decade war against terrorism, the Lessons Learnt and Reconciliation Commission (LLRC) finds that the ethnic cleansing of the Sinhala families living in Jaffna began as far back as 1977. By mid 1980s, the LTTE were evicting the Sinhalese in earnest. “By 1987, there were no Sinhala residents left in Jaffna.” According to the census department, in 1981, there were 5,684 Sinhala families living in the Jaffna district. These families have told the Commission that they wish to return to the North, where they were born and bred. 

On October 30, 1990 the entire Muslim population, numbering around 72,000 persons, were expelled from Jaffna within two hours. In 2002, LTTE strategist Anton Balasingham apologized for it, calling it a “political blunder” and invited the Muslims to return. However, the fact remains that the reason for the LTTE to expel the Muslims in the first place was the Muslims’ objection over the creation of a Tamil homeland. 

Therefore, as Attorney-at-Law and author Dharshan Weerasekera reasons, there cannot be any further devolution until the evicted Sinhalese are resettled in their former homes in the Northern Province as they too have a right to enjoy the benefits of such devolution. Without taking this foremost step, the very demand for self determination for Tamils is nullified because the fundamental principle of law states that “one cannot benefit from one’s own wrong.”

To ignore this fundamental principle “would in effect be validating ethnic cleansing as a tactic for gaining ‘self determination’, which would be an absolute travesty of justice, not to mention morality,” points out Weerasekera. 

Therefore, the reference to “their” cannot be exclusive to the Tamils, but must also include the Sinhalese and Muslims as well. This however still leaves the question as to the Tamils who can claim ownership to this political solution – will it entitle all Sri Lankan Tamils or only the Tamils in the North and East?

 

For whose Benefit is the Demand for a Political Solution?

The TNA represents only the Northern and Eastern provinces. Their sole focus is winning self determination for Tamils. Yet, they received a very poor mandate from their own voters. Their abysmal election results have been attributed to neglecting the economy. Yet, even in the political front, the TNA has failed by,

1. Miscarrying the proposed constitution

2. Allowing Provincial Councils to become defunct

 

1. Miscarrying the Proposed Constitution

 

Despite international support, TNA failed to implement the much touted political solution. This was due to the passive resistance by other minority parties, including the Tamil parties outside the North and East. 

It is noteworthy that the Good Governance Government (GGG) from January 2015-November 2019 was a coalition of minorities and some other parties. Furthermore, GGG had the most unusual setup where both main political parties cohabited in the Government. The legitimate Opposition, with 55 MPs representing eight provinces, was ostracized. Instead, the TNA with only 16 seats within the aforementioned two provinces was appointed as the official Opposition. Equally contentious was the obvious partnership the TNA had with the Government. 

With a two-third majority in Parliament on its side, the TNA had the best working environment to push their most desired solution. TNA indeed took up the opportunity. They designed a system that would pump Central Government’s powers into the Provincial Councils (PCs), making the Central Government a dependent of the PCs.

These plans were not scuttled by the Sinhala Buddhists. It was the Muslim politicians and their Tamil counterpart outside the North and East who quietly rejected this effort. Not only would they have not benefited from this arrangement, it would have adversely affected them.

Without an overriding central control, the province’s ethnic ratio would become the domineering factor. In very simple terms, the province will be ruled by the majority of that area and the minority communities within will have very little say. The Central Government will be without the powers to redress any wrongs or injustices or assure equity. The national politicians will not have a say in matters concerning their respective communities.

As political analyst CA Chandreprema observes, for minority parties outside North and East to agree to this solution would be political hara-kiri. Even Mr Ranil Wickremesinghe did not want to claim ownership of this proposal, notes Chandreprema. This will certainly not be the “vital check against a ‘majoritarian’ state,” that Sirinivasan seeks in a political solution.

Even for the Tamils in the North and East to benefit, the two provinces need to be merged, explains Chandreprema. Without such a merger, the Tamils in the East will come under the Muslims’ dominance. They will never agree to such a situation. However, a merger between provinces cannot and should not take place without a referendum from the two provinces. It is highly doubtful that the Muslims and Sinhalese will agree to a situation where they will come under the Tamil domination.

Therefore, this is a solution that looks great on paper to those who sees the Central Government as a Sinhala-Buddhist “majoritarianism” and hence a bully; and the Tamils in North and East as the underdog and ignores all other stakeholders. In reality, this will hurt the minorities more than the majority for it is only in the North and East that the Sinhalese are without a greater presence. Thus, this will effectively divide the country with the North and East under Tamil dominance (if the two provinces are merged) and the rest under the Sinhala dominance. Hence, this will not see the light of the day unless this is forced through against the peoples’ will. That of course would be most undemocratic.

 

2. Allowing Provincial Councils

to fall defunct

 

PCs were formed at the behest of the Rajiv Gandhi regime as a foundation for Tamils to exercise self governance. The rest of the country was forced to accept this system that they neither asked for nor needed. This was bitterly opposed by the nationalists for they feared this as a step towards separatism. However, India was firm and the then Sri Lankan Government under President JR Jayewardena conceded. Except for the land and police powers, the PCs are currently empowered with all the other legislative powers as per the Constitution.

It is most unfortunate that the Chief Minister of the temporarily merged North-East province Annamalai Varadaraja Perumal acted in a manner that heightened the nationalists’ fears. He moved a motion in the Council on March 01, 1990 to unilaterally declare the merged provinces as “Independent Eelam”. The then president R Premadasa was thus forced to quickly dissolve the PC and take it under Colombo’s administration.

However, after the East was freed from the terrorists, the Eastern PC was formed on May 10, 2008. Election for the Northern PC (NPC) was held on September 21, 2013. Yet, quite petulantly the TNA dominated PCs refused to use the opportunity and prove their case that they are capable of governing themselves. 

Instead, NPC Chief Minister CV Wigneswaran for five continuous years returned the funds and projects from the Central Government claiming that these are not “theirs”. Instead of making use of the powers already at hand, TNA continued to demand greater autonomy. Ironically, those provinces that once opposed the system are now working smoothly with the Central Government.

By 2018, the terms of all nine PCs had expired. The previous government in which the TNA played a prominent role hung on to a technicality to postpone elections. To date, the TNA had not protested over this outcome even though the PCs were formed specifically to give them autonomy.

 

It is not a surprise that the TNA’s vote base is steadily and rapidly declining. Living the life of elitists the TNA had quite sadistically allowed their own electorate to suffer by not utilizing the powers granted by the PCs. As a result, the people in these areas suffer enormously from unaddressed and accumulating economic and social woes.

 

Conclusion

The TNA is being disingenuous. Their proposed constitution is not democratically possible. Despite the drama, they presented a proposal that is unacceptable to all stakeholders – including the Tamils in the North and East (unless the two provinces can be merged).

They also failed to protect the PCs. This was handed over to North and East Tamil politicians on a platter at India’s insistence. This intervention cost India heavily. Yet, during its five year term, neither of these two TNA dominated PCs looked after the people, nor allowed the Central Government to do so. People are held hostage to prove a political point – not unlike the TNA’s erstwhile boss, the LTTE.

It is obvious that the TNA is not serious about a political solution. This call for autonomy for Tamils is just a political slogan that gives them a reason for their political existence.

The most important component in this debate however should not be about the politicians’ rhetoric. It is the people, their worries and hopes that matters the most.

During a recent visit to the Northern peninsula, this writer made a number of interesting observations. These observations and the exchange of ideas with the people include,

1. Many of the educated, elderly people live in empty and neglected homes. Their children are living overseas, where the economic prospects are better;

2. Despite the end of terrorism, considerable extent of land remains abandoned. The owners are overseas and do not wish to return home leaving their present comfortable lives;

3. Those in the most vulnerable segments continue to be marginalized by a rigid caste-based system. Without basics such as housing or essentials as drinking water, the poor are trapped in poverty;

4. As a political solution, people want an income that will give them the freedom to live with dignity and independence. Thus they wish for more investments in the North in the form of factories and industries. This will allow people to find jobs without leaving their hometown or their families behind;

5. The war is seen as a matter of the distant past and not something relevant to the present.

Sirinivasan argues that economic development sans a political solution “will prove futile unless citizens have the political agency to inform the process.” However, it is evident that without a robust economy where the benefits flow to all levels of society, a political solution – whatever it might be – will be without owners.

 

(ranasingheshivanthi@gmail.com)



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Post-War Reconciliation Process: Human Rights violation

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By Dr. S.W. Premaratne
Attorney-at-Law

At each session of the United Nations Human Rights Council (UNHRC), in Geneva, at which the Post-War Reconciliation Process in Sri Lanka was considered, special attention was drawn to the issue of alleged violation of human rights, and humanitarian law, during the last stage of the war, and also the need for taking remedial steps for improving the human rights situation in Sri Lanka. In this article, attention of the reader is drawn to the inconsistency, and contradictory nature of the policy, adopted by successive governments, in Sri Lanka, in response to the role played by the United Nations, and the adverse effect of the failure on the part of the Sri Lankan government to be guided by a consistent and diplomatically pragmatic policy.

Joint Statement of the UNSG and the President of Sri Lanka in 2009

Immediately after the conclusion of the war, in May 2009, the United Nations Secretary General (UNSG), Ban Ki-moon, paid a visit to Sri Lanka and, after a discussion with President Mahinda Rajapaksa, a joint statement was issued on May 23, 2009. According to the Joint Statement, Sri Lanka agreed to attend to the immediate needs of the people, affected by the war, and to initiate a reconciliation process, with the objective of achieving durable peace and economic development, for the benefit of all sections of the Sri Lankan population. The President also gave an assurance, to the UNSG, to attend to the matters that need the most urgent attention, such as the re-settlement of Internationally Displaced Persons (IDP), reconstruction of damaged infrastructure, rehabilitation and reintegration of former child soldiers, and ex-combatants, to civilian life. Of course, the Mahinda Rajapaksa government did not hesitate to attend to most of the above-mentioned immediate needs of the war-affected people, in the North-East.

In the joint statement of the UNSG and the President of Sri Lanka, the most significant part was the expression of the Sri Lankan government’s commitment to the promotion and protection of human rights, in keeping with the international human rights standards, and Sri Lanka’s international obligations. It is also very significant that the UNSG underlined the importance of an accountability process for addressing the violations of international humanitarian and human rights law. According to the joint statement, the President agreed to the need for establishing a mechanism for holding an independent investigation into the allegations of serious violations of human rights, and humanitarian law, both by the LTTE and the Sri Lankan armed forces, committed during the last stage of the war. In expression of Sri Lanka’s strong commitment to fulfill the obligations, in respect of promoting human rights, the Sri Lankan government made a proposal, entitled “assistance to Sri Lanka in the promotion and protection of human rights,” to the UNHRC, on May 27, 2009.

The Sri Lankan government, thereafter, proceeded to appoint the Lessons Learnt and Reconciliation Commission. The LLRC has made a comprehensive analysis of the causes of the conflict and the remedial steps that should be taken by the government for restoration of durable peace and reconciliation. Regarding the issue of violation of human rights, the following recommendations were made by the LLRC:

(i) Launching a full investigation into incidents of disappearance of persons, after surrender to official custody, and, where necessary, instituting prosecutions. According to the LLRC recommendations, instituting prosecutions against the offenders is an imperative, also for the purpose of clearing the good name of the Sri Lankan Army “who have, by and large, conducted themselves in an exemplary manner, in the surrender process”.

(ii) To investigate the specific instances, referred to in the Report, and any reported cases of deliberate attacks on civilians. If the investigations disclose the commission of any offences, appropriate legal action should be taken to prosecute/punish the offenders.

(iii) Regarding the controversial “Channel 4 Video” the LLRC recommended an independent investigation to find out the truth, or otherwise, of the video footage. If such investigation reveals the commission of any offences, it is necessary to prosecute such offenders.

(iv) The Commission also recommended the investigation of alleged disappearances and provide material to the Attorney General to institute criminal proceedings.

(v) The LLRC also brought the attention of the government to instances of persons being detained in custody for a long period of time, under the Prevention of Terrorism Act.

Although the government, led by President Mahinda Rajapaksa, initially indicated its willingness to fulfil the commitments undertaken, with respect to the violation of human rights, and humanitarian law, by the Sri Lankan armed forces and the LTTE, on the occasion of issuing the joint statement with the Secretary General, it became clear, subsequently, that the political leaders in power, led by President Rajapaksa, did not have the political will to act. They were guided by the mindset that by defeating the LTTE, who were generally recognized, at that stage, as a terrorist movement, the Sri Lankan armed forces had been able to unite the country and restore peace after making innumerable sacrifices and, therefore, there was no need for a reconciliation process.

The sponsors of the Resolution 19/2, adopted before the UNHRC, in Geneva, in 2012, required the Sri Lankan government to implement the recommendations of the LLRC. The need for holding an investigation into the allegations of serious violations of human rights, and humanitarian law, during the last stage of the Eelam War IV, was emphasised in the UNHRC Resolutions, adopted in 2012, and the subsequent resolutions, adopted in 2013 and 2014.

Regarding the involvement of the international community, as members of the United Nations and the UNHRC, in a reconciliation process, the attitude of the Mahinda Rajapaksa government was that Sri Lanka being a sovereign state, the other countries, or even the UN, had no right to interfere with or make any recommendations, regarding the settlement of domestic issues of Sri Lanka. The representatives of the Sri Lankan government, who participated in the UNHRC sessions, argued that the officials of the UN and the UNHRC, interfering in the domestic issues of Sri Lanka, amounts to violation of sovereignty of this country. Therefore, such interventions are illegal and as such Sri Lanka was not bound to implement these recommendations of the UNHRC. Regarding the allegation of serious violations of human rights, the response of the Sri Lankan government was that Eelam War IV was a humanitarian operation, conducted strictly in adherence to human rights law, and humanitarian law, and in the course of the military operations, violations of human rights were committed, only by the LTTE.

Regime change in 2015

A change of attitude, towards the involvement of the international community, could be observed during the Yahapalana administration, led by President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe (2015-2019).

The representatives of the Sri Lankan government, at the UNHRC sessions, in Geneva, co-sponsored the Resolution 30/1, which required the Sri Lankan government to hold a credible investigation, by a hybrid tribunal, consisting of both local and foreign judges, to investigate alleged violation of human rights, and humanitarian law, by the members of the armed forces, and the LTTE, during the last stage of the war.

It can be stated that the Sri Lankan government, at that stage, adopted a pragmatic approach by co-sponsoring the resolution. At that stage, the Sri Lankan government felt the state of insolation from the international community, including India, that supported the sponsors of the Resolution against Sri Lanka. The Yahapalana government perceived serious negative consequences if the Sri Lankan government continued to oppose the UNHRC resolutions.

The Yahapalana government also took several constructive steps that contributed towards the creation of a conducive environment for meaningful reconciliation. Foreign Minister of Sri Lanka, Mangala Munasinghe, who participated in the UNHRC sessions, during which the Resolution 30/1 was co-sponsored, informed the UNHRC that the government would initiate a domestic mechanism, after consulting all parties who have a stake in an effective reconciliation process. The Yahapalana government was able to establish domestic mechanisms, such as the Office of Missing Persons (OMP), and the Office for Reparations. These institutions were able to function effectively, at the initial stage. Signing of the International Convention, on the protection of all persons from enforced disappearance, on May 25, 2016, and drafting a Bill for the repeal of the Prevention of Terrorism Act, are some of the progressive steps taken by the Yahapalana government.

Recapture of Political Power by Rajapaksa brothers

The Presidential election, held in November, 2019 and the General elections, in August 2020, brought back to power same political leaders who ruled the country, prior to 2015. This change of government resulted in the reversal of the Sri Lankan government’s policy towards involvement of the UN in the reconciliation process in Sri Lanka. The government, led by the Rajapaksa brothers, opposed the Resolutions brought before the UNHRC, in Geneva, against Sri Lanka and adopted the same confrontationist approach towards the UN’s involvement in the reconciliation process. Co-sponsoring the Resolution 30/1 and co-operating with the UNHRC, by the Yahapalana government, was projected to the Sri Lanka electorate, during the election propaganda campaigns, as an unpardonable betrayal of the armed forces, and the Sri Lankan nation, by the Yahapalana government.

46th Sessions

The Resolution, titled “Promoting reconciliation, accountability and human rights,” was adopted by the UNHRC, in Geneva, on March 23, 2021, during the 46th Sessions. By this resolution, a mandate was given to the High Commissioner for Human Rights for initiating a fresh inquiry, outside Sri Lanka, regarding the accountability issues. In this resolution, there is a provision according to which the Office of the High Commissioner for Human Rights is authorized to take on the role of collecting evidence to be used in such prosecutions in the future.

Foreign Minister Prof. G.L. Peiris, making a statement to Parliament of Sri Lanka, subsequent to the adoption of the Resolution before the UNHRC, stated that by the adoption of this resolution, the UN sought to interfere in matters essentially within the domestic jurisdiction of Sri Lanka. He further stated that there was no moral right to interfere into affairs of a sovereign country in this manner. The Minister said that “Sri Lanka categorically rejects this unprecedented proposal in the Resolution”.

48th, 49th and 50th Sessions of the UNHRC

In the reports submitted by the UN High Commissioner for Human Rights, Michelle Bachelot, at the 48th, 49th and 50th Sessions of the UNHRC, she brought the attention of the Sri Lankan government to the concerns of the UNHRC, regarding inadequate progress in the human rights situation, and also the inadequate action taken regarding the investigation of alleged human rights violations, during the last stage of the war.

Her reports also dealt with the various aspects of human rights violations that occurred in Sri Lanka, under the Rajapaksa administration. She made special reference to the increasing militarization of the civil functions of the government, intimidation and harassment of human rights defenders, and journalists, and members of civil rights organizations, which criticized government policies, and detention of individuals, for long periods of time, without trial, under the Prevention of Terrorism Act.

In the report submitted at the 49th sessions, the High Commissioner stated that the OHCHR had already established a “Sri Lanka Accountability Project” and even allocated funds for it. In the report submitted at the 50th Sessions also she referred to this “Accountability Project” outside Sri Lanka, which may have serious consequences a far as Sri Lanka’s relations with leading democratic countries are concerned, especially at a time Sri Lanka is grappling with a veryserious economic crises.

Anti-government protests in Sri Lanka

Only a few hours after President Ranil Wickremesinghe assuming duties of his office, the armed commandos of the Police and troops of the security forces were used to disperse the peaceful, unarmed protesters from the Presidential Secretariat area of the Galle Face, in the early hours of 22nd July. Attention of the international community has been drawn to the undemocratic step of imposing a State of Emergency, and initiating an operation for arresting the protesters who played a leading role in the protest campaign. A message from the US and the Sri Lanka core-group of the UNHRC stated: “The Human Rights Council Sri Lanka Core-Group is dismayed at the violation which took place at Galle Face. We call for full respect for human rights and rule of law”.

Even prior to this unlawful act of attacking the protesters, on July 22, the Special Rapporteur on Freedom of Peaceful Assembly, in his report to the UNHRC, at the 50th Session, held in June 2022, had already warned that Sri Lanka police frequently appear to respond to protests by arresting their participants, in violation of the right to freedom of peaceful assembly”.

Conclusion

The fact that the core-group, and their supporting members of the UNHRC, are determined to go ahead with a project, outside Sri Lanka, for investigating the allegations of serious violations of human rights, and humanitarian law, during the last stage of the war, and continued vigilance of the democratic members of the UNHRC, regarding the deteriorating human rights situation in Sri Lanka, after the conclusion of the war, has caused irreparable injury to Sri Lanka’s friendly relations with these countries. There is no doubt that the Sri Lankan government is now concerned about the highly damaging consequences of the failure to adopt a consistent and diplomatically pragmatic policy in respect of the role assumed by the UN to ensure that Sri Lanka would initiate and proceed with a credible and transparent reconciliation process after the conclusion of the war.

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Why record export earnings may not be good news

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By Gomi Senadhira

The press release by the Central Bank on the external sector performance ,in June 2022, perhaps was the first piece of good news we had received for a long time. According to the press release, “Earnings from merchandise exports, in June 2022, increased by 23.9 percent over the corresponding month, in 2021, recording US dollars 1,248 million, which is the highest ever monthly export earnings recorded. An increase in earnings of both industrial and agricultural exports contributed to this favourable outcome, …. Cumulative export earnings, from January to June 2022, also increased by 14.3 percent, over the same period in the last year, amounting to US dollars 6,514 million.” So, most of us would think we have enough dollars to cover our essential imports. But, apparently, that is not the case.

Earlier, the Central Bank Governor, Dr. Nandalal Weerasinghe, had said that exporters only converted about 20% of their export earnings into Sri Lankan Rupees and the rest was not brought back to Sri Lanka. That amounts to the US $800 million a month! The Governor had also said “… At least 40% of the total export earnings should be added to the formal financial system of the country. So exporters have a responsibility, at a very difficult time like this, to bring back their foreign exchange, through the banking system, and if that happens, then we can resolve the fuel crisis comfortably.”

(Diesel shipment that arrived in Colombo, on 16 July, still not paid for want of dollars – The Island July 30th) It appears as if the Governor is pleading with the exporters to bring back at least 40% of their export earnings. More notably, from Dr Weerasinghe’s statement, it is clear that the exporter had only converted 20% of their export earnings to rupees during the last five months. Did they convert their export earnings to rupees during the last year, or in the previous years? For how long has this been going on? When the Central Bank says “… exporters have a responsibility, at a very difficult time like this, to bring back their foreign exchange, through the banking system,” does that mean the foreign exchange earned, with the exports, is brought through the hawala network, or other similar arrangements?

Exporters deserve credit for the great service they provide and should be rewarded, appropriately. But not disproportionately. The export earnings are not earned by the exporters alone. These earnings are earned by all those who contribute to manufacturing the export products. All of them should be getting their fair share of the export proceeds. If not, there is something terribly wrong with the system. Is this normal in international trade?

During the last few years, some of the studies by Indian scholars, including Utsa Patnaik and Shashi Tharoor, have placed in the public domain some of the less known facts on the effects of the British colonial rule on India. They explain how the British seized India, “… one of the richest countries in the world – accounting for 27% of global GDP in 1700 – and, over 200 years of colonial rule, reduced it to one of the world’s poorest,” and how during the period British Raj siphoned out $45 trillion from India.

How was this done? Patnaik explains, “In the colonial era, most of India’s sizeable foreign exchange earnings went straight to London—severely hampering the country’s ability to import machinery and technology in order to embark on a modernisation path, similar to what Japan did in the 1870s. …, a third of India’s budgetary revenues was … set aside as ‘expenditure abroad’. The secretary of state (SoS) for India, based in London, invited foreign importers to deposit with him the payment (in gold and sterling) for their net imports from India, which disappeared into the SoS’s account in the Bank of England. Against these Indian earnings he issued bills… to an equivalent rupee value—which was paid out of the budget, from the part called ‘expenditure abroad’.” Patnaik underlines that this was “something you’d never find in any independent country,”

But it appears something very similar is happening in Sri Lanka, many years after the independence! If the exporters do not “bring back their foreign exchange ,through the banking system,” or only bring back 20% of it, then how do they pay for goods and services obtained locally? The local value addition for most of our exports is 70% to 80% or higher! The only major exception is cut and polished diamonds. Tea exporters buy tea with rupees. Some of the imported inputs, like fertiliser, or diesel, are sourced locally! The garment industry had moved up the value chain during the last 40 years and provide many value-added services, like designing, locally.

How do the exporters pay for all these goods and services, if they keep more than 60% of their export earnings outside the country? Do they get it through “hawala” or similar arrangements? During the British Raj, payments to local producers were done with the taxes collected by the Raj. In present-day Sri Lanka, how does one manage to raise a large amount of cash to operate such a system?

If a sizeable chunk of Sri Lanka’s foreign exchange earnings goes straight to banks in London, New York, Zurich, or elsewhere, severely hampering the country’s ability to import essential items, doesn’t that mean, Sri Lanka’s wealth is getting siphoned out through our exports? And there is not much of a difference between what happened during the colonial period and the post independent Sri Lanka!

So, June’s record export earnings also mean nearly US$ billion was siphoned off during the month! A new record for the month of June! And that means Patnaik was wrong when she said this was not “something you’d never find in any independent country”

That is not good news.

(The writer is a specialist on trade and development issues and can be contacted at senadhiragomi@gmail.com)

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Improving trend needs to be sustained on multiple fronts

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by Jehan Perera

The government appears to have secured political stability in the short term.  So far President Ranil Wickremesinghe’s efforts to restore stability appear to be working. Political stability is necessary for decisions to be made and kept.  It is a necessary element for international support to come in.  One of the IMF’s conditions to provide the country with the multi-billion-dollar loan it seeks is political stability that would ensure that commitments that are made will be kept.  The protest movement has not mobilised public demonstrations on the very large scale of the past after the appearance of Ranil Wickremesinghe in leadership positions, initially as prime minister and subsequently as president. This would be seen as an achievement by the government.  The present governmental line that protests should be within the law is difficult, and also frightening, to challenge when a state of emergency is in force.

The government has shown its ability to wield the emergency law with deterrent effect. Under the state of emergency that President Wickremesinghe declared on July 18, the period that a person may be detained before being brought before a magistrate has been increased from 24 to 72 hours. The authorities have been granted additional powers of search and arrest, and the military has been empowered to detain people for up to a day without disclosing their detention. The state of emergency also gives the president and the police broad powers to ban public gatherings, allows the police or military to order anyone to leave any public place or face arrest, and makes it an offense to cause “disaffection” or to spread “rumours.” However, in a sign that Sri Lanka’s system of checks and balances is still working, the Colombo Chief Magistrate’s Court has rejected a request by the police to ban a public protest planned by political parties and multiple organisations on September 9.

Human Rights watch has pointed out that “these provisions are vague, overly broad, and disproportionate in violation of the rights to freedom of expression, peaceful assembly, association, and movement.”  The midnight strike on the protestors who had camped for over three months at the main protest site at Galle Face would make any reasonable person think twice before getting into physical confrontation with the government.  The social media coverage of events that night showed men in black uniform and wearing masks, attacking the unarmed protestors.  As these men did not wear identification badges, there is a question whether they were part of the official security forces or drawn from other groups that work with them.  This response brought discredit to the perpetrators and disturbed both Sri Lankan people and the international community that have the welfare of Sri Lanka at heart.

The government has also used the full power of the draconian law to ensure that the leadership of the protest movement is neutralised. Several of them have been arrested, some of them given bail, others remanded, which would send a chilling message to the others.  The government has also shown its willingness to offer high positions to those who are prepared to join it.  This has led to a situation where two trade union leaders active in the protest movement have been treated very differently.  One has been offered a high post while the other has been put into prison, although he has now been given bail.  In a signal that he is sensitive to public pressure and human rights concerns, President Wickremesinghe had spoken to leader of the Ceylon Teachers Union, Joseph Stalin, after he was remanded and reportedly said he admires the members of the protest movement who talk of a system change.

ECONOMIC STABILISATION

Apart from the appearance of political stability there is also the appearance of economic stabilisation.  The shortages of cooking gas, petrol and diesel, and the 13-hour power cuts were among the main catalysts of the protest movement.  It was during the period of long power cuts, when staying at home became unbearable, that neigbourhood groups began to converge in urban centres to hold candlelight protests.  However, at this time the supply of gas, petrol and diesel has improved significantly and the kilomere-long lines in front of fuel stations are much less common.  Credit has gone to the QR code system put in place that gives to each vehicle a weekly quota.

The challenge for the government is to ensure that the economic situation continues to be stable without experiencing the acute shortages of key items that causes distress to the general population.  The QR code system can only work if there is petrol and diesel to be distributed.  The current imports of cooking gas, petrol and diesel appear to have been made possible by a World Bank loan which was re-purposed to the purchase of essential items.  However, these funds will dry up soon.  The question is what will happen after that.  There is apprehension that the country will fall once again into a situation of severe shortage.  The government needs to take the people into its confidence regarding the future.  The government also needs to be trusted if it is to be believed.

The World Bank has given an indication that they are still to be convinced regarding the provision of further assistance to Sri Lanka.  Earlier this month, the World Bank issued a statement “expressing deep concern about the dire economic situation and its impact on the people of Sri Lanka yesterday said it does not plan to offer new financing to Sri Lanka until an adequate macroeconomic policy framework is in place.  Issuing a statement, the World Bank Group said it is repurposing resources under existing loans in its portfolio to help alleviate severe shortages of essential items such as medicines, cooking gas, fertiliser, meals for school children and cash transfers for poor and vulnerable households.  To date, the World Bank has disbursed about US$160 million of these funds to meet urgent needs.”  This is extremely concerning as the World Bank is closely connected to the IMF on which Sri Lanka is pinning its hopes for a big loan.

POLITICAL STABILITY

The issue of political stability is highlighted by the government as being necessary to obtain international assistance and also as a justification for quelling the protest movement through emergency laws.  There is explicit blame being apportioned to the protest movement for creating instability in the polity that is deterring the influx of foreign assistance and investments.  However, the fuller picture needs to be seen.  The IMF as much as the World Bank, and indeed other potential sources of donor support, want their resources to be used for the intended purpose and not be squandered or siphoned away corrupt practices and in sustaining loss-making state institutions.

The hoped-for IMF-supported programme to provide assistance to Sri Lanka is being developed to restore macroeconomic stability and debt sustainability, while protecting the poor and vulnerable, safeguarding financial stability, and stepping up structural reforms to address corruption vulnerabilities and unlock the country’s growth potential. IMF mission team to Sri Lanka last month specifically mentioned the need to reduce corruption stating that “Other challenges that need addressing include containing rising levels of inflation, addressing the severe balance of payments pressures, reducing corruption vulnerabilities and embarking on growth-enhancing reforms.”

Both the international funding agencies and the protest movement are on the same page when it comes to opposing corrupt practices.  The main slogans of the protest movement during their heyday was the ouster of the then president, prime minister and cabinet of ministers, and indeed the entire parliament, on account of the corruption that they believed was responsible for having denuded the country of its foreign exchange reserves. This was not simply the replacement of one set of corrupt leaders by another. There are disturbing signs that some of those accused of corruption are once again on the ascendant.

The underlying demand of the protest movement was and continues to be the very “systems change” that the president has said he admires in his reported discussion with remanded trade union leader Joseph Stalin. Civil disobedience to obtain a government that is transparent and law abiding, that does not steal the wealth of the country, is a noble goal, no less sacred than the civil disobedience struggles engaged in by Mahatma Gandhi in India and Martin Luther King in the United States.  The ingredients for a rebound of the protest movement continue to be in place and hopefully the evidence of a systems change will become more convincing.

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