Connect with us

Midweek Review

Colombo Port City: Who can be entrusted with safeguarding Sri Lanka’s interests?



By Shamindra Ferdinando


SLPP National List lawmaker Gevindu Cumaratunga, on Sunday (25) raised three issues in respect of the controversial Bill, titled ‘Colombo Port City Economic Commission’, that had been challenged in the Supreme Court.

Addressing the media at the Sri Sambuddhajayanthi Mandiraya, lawmaker Cumaratunga expressed concerns over (I) the composition of the proposed Economic Commission (EC) with the focus on the President being the sole authority in deciding its members, (ii) authority over the newly reclaimed land, adjacent to the Galle Face Green, and finally (iii) automatic approval granted to those making applications for projects through the EC.

Cumaratunga called the briefing in the wake of Friday’s (23) conclusion of hearing of petitions filed by those opposed to the project on the basis the Bill, as whole, is inconsistent with many provisions of the Constitution. There were also several intervenient petitions defending the Bill. These petitions were heard before a five-judge-bench comprising Chief Justice Jayantha Jayasuriya, PC, Justice Buwaneka Aluwihare, Justice Priyantha Jayawardena, Justice Murdhu Fernando, and Justice Janak de Silva.

 Cumaratunga, in addition to being an SLPP lawmaker, also expressed views on the Bill in his capacity as the Chairman of the nationalist civil society pressure group Yuthukama. Yuthukama is represented in the current Parliament by two lawmakers – Cumaratunga and Anupa Pium Pasqual who entered Parliament from the Kalutara district.

At the commencement of the briefing, the MP appealed to the media to ensure priority to the Port City issue though they could raise any other matter pertaining to simmering controversy over the Easter Sunday carnage, the Covid-19 rampage, and the developments since the Presidential Political Victimisation Commission handed over its report to President Gotabaya Rajapaksa on Dec 8, 2020. 

Having compared the proposed Bill, with two concept papers submitted during the previous UNP-led administration, and the current, on Sept 09, 2019 and June 16, 2020, respectively, lawmaker Cumaratunga questioned the failure on the part of those who prepared the Bill, at issue, to take into consideration the salient points therein.

The arch nationalist emphasized the responsibility on the part of the SLPP government to take remedial measures on its own, in respect of the Bill, regardless of the position taken by the Supreme Court. With the country crossroads, in the wake of implementation of the mega project, the government couldn’t, under any circumstances, shirk its responsibility to introduce the required changes, he argued.

The Supreme Court is scheduled to convey its ruling to President Gotabaya Rajapaksa and Speaker Mahinda Yapa Abeywardena.

Out of the 145-member SLPP parliamentary group, lawmaker Cumaratunga is the second to express concerns over the Bill. Having fired a broadside at the Bill, Colombo District SLPP lawmaker Dr. Wijeyadasa Rajapakse, PC, represented Ven. Muruththettuwe Ananda Nayaka Thera, Chief Incumbent of the Sri Abhayarama Purana Viharaya and President of the Public Service United Nurses’ Union, Sri Abhayarama, Narahenpita, and Nagashenage Dasun Yasas Sri Nagashena, of 90/12, Gramasanwardana Road, Polwatta, Pannipitiya.

Former President of the Bar Association of Sri Lanka, Dr. Rajapakse’s written submissions in respect of the case filed against the Secretary General of Parliament, Dhammika Disanayake, and Attorney General Dappula de Livera, PC, depicted a far more serious picture than lawmaker Cumaratunga’s criticism.

Having found fault with the incumbent administration for placing the responsibility of naming the EC on the President, MP Cumaratunga stressed that the appointing process should be subjected to parliamentary supervision. The lawmaker pointed out the concept papers presented by the previous government and the present, under the leadership of Prime Minister Mahinda Rajapaksa, underscored the need for the EC to consist of Sri Lankans. Referring to the concept paper presented on June 16, 2020, Cumaratunga said that it proposed the appointment of 10 members, including the Chairman of the EC. The Yuthukama Chief asserted that the issue at hand could be resolved by ensuring the majority of appointments to the EC, depending on the number, be placed under parliamentary supervision whereas the President/the minister in charge of the Port City, too, could make appointments. However, all should be Sri Lankans whereas required foreign experts could be hired for suitable positions, including that of the Director General.

MP Cumaratunga questioned the rationale in giving the sole authority, as regards appointments, to the President, or the minister in charge, in case the government brought the Port City under a particular Ministry.

Cumaratunga pointed out that the Office of the President shouldn’t be the sole decision-making authority, as elections were held every five years. Referring to statements as regards the Greater Colombo Economic Commission (GCEC) law, introduced by late President J.R. Jayewardene, in 1978, lawmaker Cumaratunga said that over the years there were many amendments to the Constitution. The government member expressed the view that the Bill, at issue, couldn’t be discussed taking into consideration JRJ’s law. The Constitution, the lawmaker emphasized, had undergone far reaching changes with the enactment of the 17th (Oct. 2, 2001) 18th (Sept. 10, 2010) 19th (April 28, 2015) and 20th Amendments (Oct 22, 2020) Amendments. Therefore, the incumbent government couldn’t go back on those Amendments, the MP said, pointing out that the two concept papers submitted in terms of the 19th and 20th Amendments envisaged the EC being subjected to the supervision of the Constitutional Council and the Parliamentary Council, respectively.

The 20th Amendment did away with the 10-member CC thereby passing the responsibility to the five-member Parliamentary Council. MP Cumaratunga explained that in terms of those concept papers mentioned, the officials who should be appointed to the EC. They included Governor, Central Bank, Secretary to the Treasury et al.


Parliament shirks its responsibilities

 Before discussing concerns in respect of the Bill, at issue, raised by nearly 20 petitioners, including lawmaker Rajapakse, it would be pertinent to take up the failure on the part of those responsible to ensure financial stability. The country is experiencing severe difficulties for want of financial discipline, at every level, with the Parliament yet to take tangible remedial measures. The revelations made by House parliamentary watchdog committees, the Committee on Public Enterprises (COPE) and the Committee on Public Accounts (COPA), as well as the Public Finance Committee (PFC), since the last general election, painted a bleak picture. The situation is so bad, a guarantee that the EC would comprise only Sri Lankan nationals holding responsible positions does not promise a clean administration. It would be pertinent to mention that Sri Lankans, being at the helm of the EC wouldn’t necessarily guarantee safety, security, political stability and uppermost the country’s interest without oversight.

JVP leader Anura Kumara Dissanayake’s hard hitting speech in Parliament, last Friday (23), painted a grim picture of the national economy. The JVPer didn’t mince his words when he named those allegedly responsible for massive waste, corruption and irregularities during successive governments.

Dissanayake pointed out how wrongdoers continued to enjoy political power, regardless of their public exposure. Lawmaker Dissanayake’s fiery speech highlighted Sri Lanka’s overall failure to tackle corruption, now, possibly, even threatening the very survival of the country. The JVP leader cited the Treasury bond scams, perpetrated in Feb 2015 and March 2016, as well as the massive sugar tax scam executed by the present lot. Reference was also made to the payment of a staggering USD 6.5 mn in 2014 to US national Imaad Shah Zuberi, 50, of Indian and Pakistani origins, to lobby the US Government to save Sri Lanka from human rights scrutiny by Washington. The then Rajapaksa government wired a total of USD 6.5 mn to a venture capitalist and political fundraiser who was sentenced recently to 12 years in a federal prison in the US on charges of embezzlement.

According to the US Department of Justice, Sri Lanka hired Zuberi of Arcadia, California, in 2014, to improve the country’s image in the United States, in the wake of investigations undertaken by the Geneva-based United Nations Human Rights Council. Of course, in this instance the then government would have turned to a questionable lobbyist out of sheer desperation, like a drowning man clutching at a straw, as the powerful West piqued by the ignominious defeat of the LTTE at the hands of our security forces, which they had always claimed were incapable of defeating it, was and still is out to punish us for defying their mantra. 

Zuberi had promised to make substantial expenditures on lobbying efforts, legal expenses, and media buys, which prompted Sri Lanka to agree to pay Zuberi a total of USD 8.5 million over the course of six months, in 2014. But actual payments amounted to USD 6.5 mn.

Examination of recent statements, issued by the Communication Department of the Parliament, pertaining to proceedings at the COPE, COPA and PFC, chaired by Prof. Charitha Ratwatte, Prof. Tissa Vitharana and Anura Priyadarshana Yapa, respectively, revealed the absence of proper scrutiny at any level in all sectors. Let me briefly discuss the shocking disclosure of the happenings at the Football Federation of Sri Lanka at the recently concluded COPE proceedings. The watchdog committee questioned a range of irregularities during the tenure of Attorney-at-Law Manilal Fernando as its President. And, finally, he was forced to quit because of those controversial dealings. The COPE queried how a sum of Euro 40,400 (approximately Rs 6 mn) received from the Italian Football Players’ Association to construct a football ground in his home town, Kalutara, ended up in Fernando’s private account. Prof. Herath’s committee also questioned the misappropriation of a sum of USD 60,000 (nearly Rs 6 million) provided by the Asian Football Federation to conduct competitions, a sum of Rs.10 mn given by a private company to construct 20 houses for tsunami victims and a sum of USD 200,000 donated by the Asian Football Federation.

 It also transpired, during the COPE proceedings, that the current President of the Federation, Anura de Silva, has submitted an affidavit to the court claiming that financial irregularities hadn’t taken place in spite of the Financial Crimes Investigation Division (FCID) moving the courts. The committee pointed out the seriousness in submitting such an affidavit.

 In addition, it is reported that Anura de Silva now wants to quit from the post of President of the Sri Lanka Football Federation to make way for Manilal’s son to climb to that post!

 Prof. Herath directed both Manilal Fernando and Anura de Silva to appear before COPE on May 06. COPE also dealt with controversial circumstances under which elections to the Football Federation of Sri Lanka was conducted with the Chairman of the Elections Committee as well as two other members given Rs 750,000 and Rs 600,000 each, respectively. The crisis at the Football Federation of Sri Lanka should be examined against the backdrop of the disgraceful conduct of the Sri Lanka Cricket (SLC) administrations.

Over the past couple of decades, under the watch of successive governments, the financial discipline has deteriorated to such an extent that the national economy is in deepening turmoil. Therefore, the Port City undertaking is a vast challenge that requires the highest consideration and, under any circumstances, the public shouldn’t be duped by the promise that Sri Lankan nationals, holding responsible positions at the helm of the EC, would ensure the best interests of the country.


Wijeyadasa isolated

 Contrary to lawmaker Wijeyadasa Rajapakse’s high profile stand as regards the Port City project, the SLPP constituents endorsed it. The National Freedom Front (NFF) parliamentary group threw its weight behind the Port City project. Pivithuru Hela Urumaya (PHU), too, defended the project while those appointed on the SLPP National List, except Yuthukama leader Cumaratunga, refrained from causing any friction. However, Wijeyadasa Rajapakse, who had represented both the SLFP and the UNP cabinets since his entry into parliamentary politics, pursued his agenda.

 Let me verbatim the section headlined ‘Threat to the National Security’ in Dr. Rajapakse’s written submissions to the SC: “The zone has been exempted from the Customs Ordinance. The Customs is debarred from exercising its powers within the Zone and the people in the Zone. There may be importation of prohibited substances, such as drugs, weapons, etc. The South jetty of the Colombo Port is situated, adjoining the said Zone, and it is controlled by the company belonging to the Chinese government.

As the proposed Commission is formed, in the event of any violation or disregard of International Charters and Treaties including, UN Charter, UN Charter for Human Rights, International Covenant on Civil and Political Rights, War Crimes, Crimes against Humanity within the said zone, the Sri Lankan State is responsible, not the purported commission.

There is a turmoil situation prevailing in the region, as well as in the World, due to the power struggle between China on one side and India, the USA, Europe, Japan on the other side. This kind of unprecedented facilitation to China would undoubtedly expose the whole country and the whole nation to danger. When presenting Bills of this nature, it is necessary to take geo-political factors into consideration.

In the course of argument, it was submitted that the government of Sri Lanka could not be able either to resist and control the import of any prohibited substance, including weapons of mass destruction, such as nuclear, atomic, multi-barrel, etc., as the operation of the Customs Ordinance is excluded. On 21st April, a ship loaded with Uranium, meant to be used for nuclear, which belongs to China, docked at the Hambantota Port by misleading the Authorities. The Government was able to direct it to leave the Port because that power of the government was preserved in the Agreement. But the present Bill does not contain any such safeguard.

One must not forget that the Colombo South Jetty is adjoining the zone. Therefore, it cannot be ruled out that the Chinese government will not resort to such devastation, compelling the other super powers to destroy the economy of the country and to expose national security to danger.

The total consideration of the Bill, as a whole is inconsistent to the rudimental principles of our Constitution and it shall be ruled out ab initio.”

 Former Ports and Shipping Minister Arjuna Ranatunga, in a recent interview with the writer over the phone, pointed out how Sri Lanka lost the strategic Hambantota port, to China, in 2017, and was now about to suffer a similar fate as regards the Port City project. Ranatunga recalled how the Sirisena-Wickremesinghe administration went ahead with the Hambantota project in spite of him giving up the Ports and Shipping portfolio. The country would one day pay a very heavy price for irresponsible actions of politicians and officials, the outspoken defeated UNP candidate, at the 2020 August general election, told the writer.



Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Midweek Review

Growing foreign dependency and India’s USD 4 bn lifeline



Baglay on an inspection tour of the State Printing Corporation

By Shamindra Ferdinando

The Japanese embassy and UNICEF (United Nations Children’s Fund, previously known as United Nations International Children’s Emergency Fund), on 16 March, 2023, issued a joint statement that dealt with the impact the developing political-economic-social crisis is having on the poor in Sri Lanka.

The statement focused on the suffering of the children and measures taken by UNICEF, in consultation with the Governments of Japan and Sri Lanka, to provide relief to the needy.

However, what really captured public attention was the declaration made by the Japanese Ambassador, in Colombo, Mizukoshi Hideak, that with the latest contribution, amounting to USD 1.8 mn, the total Japanese financial assistance, provided through UNICEF alone, exceeded USD 3.8 mn, since the beginning of last year. That is definitely a significant package provided through a single UN agency, particularly against the backdrop of the unceremonious cancellation of the Japan- funded Light Rail Transit (LRT) project, in late Sept., 2020, by the Gotabaya Rajapaksa Government.

The directive, in this regard, was issued on 21 Sept., 2020, by Dr. P. B. Jayasundera, in his capacity as Secretary to the President, to the then Transport Secretary, Monti Ranatunga. That move ruined Sri Lanka’s relations with Japan.

Whoever advised the then President Gotabaya Rajapaksa to terminate the project, without consulting Japan, as head of the Cabinet-of-Ministers, he couldn’t absolve himself of the responsibility for the ruination of vital relationship with Tokyo. Had it not been the case, Japan, most probably, would have delivered a substantial assistance to Sri Lanka, at the onset of the ongoing unprecedented crisis.

Sri Lanka made a failed bid to secure as much as USD 3.5 bn loan from Japan, during the tenure of Sanjiv Gunasekara as Sri Lanka’s Ambassador in Tokyo. Gunasekara, a close associate of President Gotabaya Rajapaksa, resigned in the wake of the 09 May, 2022, violence, that gave a turbo boost to the campaign against his government.

Unlike Japan, India provided direct aid in various forms to Sri Lanka, struggling to cope up with what became an insurmountable crisis to overcome on our own. India has repeatedly declared that the continuing assistance is in line with Premier Narendra Modi’s much touted ‘Neighbourhood First’ policy. Sri Lanka received concessional credit facility, amounting to USD 1 bn, in March last year. In addition to that, by the second week of March this year, Sri Lanka received other lines of credit, worth over USD 3 bn. Therefore, the total Indian assistance is worth over USD 4 bn, a staggering amount as Sri Lanka’s debt before the Japanese and Indian interventions stood at over USD 53 bn. Indian intervention cannot be compared, under any circumstances, with assistance provided by any other country.

The Indian assistance is of immense importance as the International Monetary Fund (IMF), after much deliberation, promised USD 2.9 bn over a period of four years. The delay on the part of China to provide an assurance as regards debt-restructuring support, hindered the finalization of the tripartite agreement involving Sri Lanka, creditors and IMF. Finally, China gave that assurance, in writing, early this month.

Indrajit Coomaraswamy

The situation was so precarious, Sri Lanka couldn’t have even provided the free text books that have been given, annually, to the student population ,from the time of the JRJ regime. Those who had been at the helm of political power, over the past three decades, to varying degrees, ruined the economy, and, by 2021/2022, Sri Lanka was unable to provide even the basic requirements, like cooking gas, kerosene, petrol, etc., as even remittances from our expatriate workers, which in the past amounted to about seven billion dollars per year, dropped drastically due to the illegal underground banking system, hawala/undiyal, hijacking much of it from the normal banks. The government didn’t have the means to provide school text books for the 2023 academic year. In consultation with India, of the USD 1 bn concessional credit facility, over USD 10 mn was utilized by the State Printing Corporation, and private importers, to procure printing paper and other material from India. India met 45% (four mn students) of the total requirement. Indian High Commissioner Gopal Baglay visited the SPC, on 09 March, 2023, to dispatch a consignment of textbooks to schools. Education Minister Dr. Susil Premjayantha joined Baglay. The Indian High Commission statement, issued two days later,, was aptly titled ‘India’s support for text books investment in Sri Lanka’s future.’

The government and the Opposition should be ashamed of their failure to provide for the children’s need.

Perhaps, a Parliamentary Select Committee (PSC) should be appointed to examine the circumstances leading to Sri Lanka’s bankruptcy status. Decades of utterly irresponsible management of the economy, coupled with an explosive mixture of causes – waste, corruption and irregularities – caused the current crisis.

Political parties, represented in Parliament, are responsible for the continuing crisis, to varying degrees.

Controversy over ISBs

The Island discussed some of the issues at hand in last week’s midweek piece, headlined ‘All praise for Lanka’s saviours!

What Dr. Coomaraswamy didn’t say was that as the CB Governor, he was also directly responsible for the Yahapalana government borrowing a record USD 12.5 bn from the international bond market, at high interest rates, from private lenders, primarily in the West. So what did that government achieve with such huge borrowings? All that the Yahapalana regime achieved, with all that money, we cannot see, except to lay the foundation for the current debt crisis?

Our comment on the basis of recent claims that the Governor of the Central Bank, Dr. Coomaraswamy (2016-2019), only told one side of the truth, attracted responses from several parties, including the Central Bank.

Consequently, the writer discussed the borrowing of USD 12.5 bn, and related matters, and was told the following: First, it is important to point out that the Governor, Central Bank, has no authority to approve or undertake any borrowing on behalf of the government. The borrowing limit, in any given year, is set by Parliament. Therefore, the government cannot borrow beyond the limit set by Parliament. In addition, all external borrowing has to be approved by the Finance Minister, and the Cabinet of Ministers. The Governor and the CBSL only have an advisory role. On ISBs, they have marketing and issuance as additional responsibilities once the Cabinet approved the transaction.

It is also important to recognize that ISBs are only one channel for external commercial borrowings. Others include short-term SWAPs, foreign term loans/syndicated loans and external flows into government rupee securities. The article dealt with only one instrument, having ignored the switching that was undertaken during 2015-19 to increase the maturity and reduce the cost of foreign borrowing.

As regards the USD 10 bn increase in ISBs outstanding during 2015-19, USD 5 bn of this increase can be attributed to switching away from shorter term (one year or less) and more expensive SWAPs and highly volatile foreign portfolio investment (hot money) in Government rupee securities to longer term (5 and 10 years) and less costly ISBs. SWAPs were reduced from approximately USD 2.5 bn to USD 500 mn.

Volatile and foreign investment in government rupee securities was reduced from USD 3.5 bn to USD 600 mn. In addition, during the course of 2019, a second ISB of USD 2 bn was issued to create a stronger buffer of external reserves to address the inevitable increase in uncertainty going into elections due shortly thereafter. (The money required for 2019 had been raised through an ISB, issued in March 2019.)

So about USD 7 bn of the USD 10 bn increase in the stock of ISBs outstanding, during 2015-19 may be attributed to increasing the stability and reducing the cost of the ISBs outstanding by switching instruments and raising the buffer provided by external reserves prior to a period of uncertainty, associated with elections.

The remaining increase of USD 3 bn may be partly attributed to the fact that borrowing incurred earlier had not resulted in a sufficient increase and/or saving of foreign exchange. Hence money had to be borrowed to repay debt incurred earlier. In fact, Verite Research found that 89 percent of external debt, repaid during 2015-19, could be accounted for by liabilities incurred prior to 2015.

The adverse debt dynamics were recognized and the Medium Term Debt Management Strategy was published in April 2019 to chart the way to sustainability. In addition, the Active Liability Management Act (2018) was introduced to expand the tools available to the CBSL for managing external debt sustainably. The CBSL, as the economic adviser to the Government, also advocated that there should be a primary surplus in the budget and that non-debt creating inflows (such as exports, remittances, tourism proceeds, FDI, inflows into the CSE and government securities) should be increased to enhance the capacity to service debt while supporting the level of imports necessary to achieve the growth potential of the economy.

They also pointed out that only one of the ISBs, issued during 2015-19, has been settled to date. This amounted to USD 500mn. They expressed the view that it is not possible to sustain the argument that servicing ISBs, incurred during 2015-19 ,led to the standstill in debt repayments in April 2023.

Treasury bond scams and tax cuts

The US embassy released this picture of
Ambassador Chung at an event in
Colombo where the second shipment of
36,000 metric tons of Triple Super
Phosphate (TSP) was handed over to Sri
Lanka. It brings the total of USAID-supported
TSP and urea fertiliser to more than
45,000MT, over the last year.

Sweeping tax concessions to the rich and reduction of VAT, that had been introduced by President Gotabaya Rajapaksa’s government to encourage business in 2019/2020, escalated the financial crisis, leading to the declaration of the state of bankruptcy, two years later. No one in the Gotabaya Rajapaksa’s cabinet dared to challenge such far reaching tax concessions and VAT reduction.

How the loss of as much as Rs 600 bn in revenue, as alleged by the Opposition ,due to tax concessions and reduction of VAT, contributed to the current crisis, should be examined, also taking into consideration (1) Treasury bond scams perpetrated in Feb, 2015 and March 2016 at a time the CBSL has been under the then Prime Minister Ranil Wickremesinghe, in his capacity as Minister of Policy Planning and Economic Affairs (2) Enactment of new Foreign Exchange Act in 2017 in the wake of Treasury bond scams. Critics say the repealing of time-tested exchange control law that has been in place for decades paved the way for exporters to ‘park’ export proceeds overseas. Of the 225 MPs, 94 voted for the new law whereas 18 voted against. In spite of Justice Minister, Dr. Wijeyadasa Rajapakse, PC, taking up this issue, both in and outside Parliament, remedial measures hasn’t been taken, to date. The Finance Ministry owed an explanation as to how it intended to compel the exporters to bring back export proceeds (3) Continuing public-private sector partnership in corrupt practices, particularly mis-invoicing (under invoicing and over invoicing of imports/exports) (4) Pivithuru Hela Urumaya leader Udaya Gammanpila, MP, has moved the Supreme Court against the Central Bank Bill. The Attorney-at-Law alleged that the new law violated Article 3 and 4 of the Constitution hence needing the approval of the people at a referendum. In addition to Gammanpila, Dr. Gunadasa Amarasekera and Jathika Nidahas Peramuna leader Wimal Weerawansa, too, moved the Supreme Court in terms of the Article 121 against the Bill titled ‘Central Bank of Sri Lanka.’ Former JVP MP Wasantha Samarasinghe, on behalf of the Jathika Jana Balavegaya (JJB), too, moved the Supreme Court in this regard.

A warning from Hanke

The country is in a bind. In spite of the execution of the agreement with the IMF later this month, the situation remains dicey. The absence of economic recovery plan continues to cause further instability.

Therefore, the government and the Opposition should seek a consensus on a national action plan, even if Local Government polls cannot be conducted in late April, regardless of the Supreme Court intervention.

Steve Hanke, Professor of Applied Economics, at Johns Hopkins University, in the USA, recently issued a dire warning to Sri Lanka. Appearing on CNBC’s ‘Squawk Box Asia,’ Prof. Hanke declared Sri Lanka needs institutional reforms in order to achieve long-term debt sustainability.

Referring to Sri Lanka and what was described as emerging markets (Argentina and Montenegro), where he played a key role in establishing new currency regime, former economic advisor to US President Ronald Reagan warned “Unless you change the institutions and the rules of the game, governing these countries, they’re always going to remain in the same … situation that they’ve been in for a long time.”

Prof. Hanke added: “In fact, most of the personalities, involved in Sri Lanka ,at the high level, are exactly the same as they’ve been for years. So nothing has changed.”

In other words, those who have ruined Sri Lanka are spearheading the economic recovery process. The American is spot on. Sri Lanka is in a pathetic situation. Those who had systematically brought Sri Lanka to its knees, by pursuing ill-fated policies, emerged as its saviours. That is the bitter truth. The role of the executive, legislature, and judiciary, needs to be examined. Those who have moved the Supreme Court against the Bill, titled ‘Central Bank of Sri Lanka,’ have quite conveniently forgotten how the Yahapalana government, and Central Bank, twice perpetrated Treasury bond scams. What would have Prof. Hanke said if CNBC raised Treasury bonds scams during ‘Squawk Box Asia.’

If not for Deepa Seneviratne, the then head of Public Debt Department, Governor Arjuna Mahendran’s role couldn’t have been proved. Former Auditor General Gamini Wijesinghe said so at an event organized by the Colombo Municipal Council years ago.

Sri Lanka cannot forget Prof. Hanke’s remark in the CNBC programme. “You have to remember that we have a country that since 1965 has had 16 IMF programmes and they’ve all failed. You get temporary relief in anticipation of a bailout. But in the long run … none of these IMF programmes work.”

It would be pertinent to briefly examine how interested parties brazenly protected perpetrators of the Treasury bond scams.

Having named Mahendran as the Governor, regardless of the opposition from President Maithripala Sirisena, those planning to commit the first daylight robbery of the Central Bank moved Deepa Seneviratne to the Public Debt Department as its head, in spite of her not having had any previous experience in the particular division. It seems they had obviously felt comfortable in having a lady officer there they thought they could manipulate her to suit their need. But Seneviratne turned tables on the bond thieves by putting up a note to register her strong opposition to Mahendran’s move. She should have been rewarded for her fearless stand with at least a national honour if not an international one, even from bodies like the UN, the Transparency International, Amnesty International, etc. But it seems that even these international busy bodies have their own political angles.

It would be of pivotal importance to keep in mind that President Sirisena appointed a Commission of Inquiry (CoI) in January 2017, about 10 months after the second robbery, and two years after the first.

The Commission comprised Justice K.T. Chitrasiri, the late Justice P S Jayawardena and retired Deputy Auditor General V. Kandasamy. Sumathipala Udugamsuriya functioned as its Secretary. CoI issued a devastating report that implicated Perpetual Treasuries Limited (PTL) in the Treasury bond scams.

President Sirisena went to the extent of dissolving Parliament, in June 2015, to prevent the Committee on Public Enterprises (COPE) tabling its report on the first bond scam. SLFP leader Sirisena owes an explanation. Justice Chitrasiri’s CoI didn’t inquire into that aspect. Sri Lanka’s response to waste, corruption, irregularities and mismanagement is baffling. Let me end this piece reminding how the Bar Association of Sri Lanka (BASL) secured a substantial sponsorship from Perpetual Treasuries Limited (PTL) deeply mired in a bond scam, in 2016, for the Law Asia Conference during the tenure of its then President Geoffrey Alagaratnam, PC. The BASL never explained why it obtained PTL sponsorship even after the exposure of Treasury bond scams. That partnership also escaped the CoI. The rest is history.

Knowing what is now happening to the US economy with a string of bank failures and unprecedented bailouts, especially due to hoodoo economics it introduced in recent decades, like repeated quantitative easing (blindly printing trillions of dollars leading many to say the dollar is now only good as toilet paper) that has been practiced to ensure its world hegemony, the whole world might be hit with bank failures and even by a depression worse than the one that befell with the stock market crash of 1929. Already the contagion has spread to Europe with some leading banks there also requiring help.

Washington’s debt now stands at USD 31 trillion and climbing, but our own debt burden is still under USD 55 billion. So if we can get our exporters, who have stashed export earnings abroad, to bring them back, the picture here will not be as scary as it is made out to be. Even Minister Wijeyadasa Rajapakse has said that our export proceeds that have been parked overseas is in the region of USD 55 billion.

Soonwe will start receiving the IMF bailout, but our economic whiz kids have not done anything to plug the massive foreign exchange leak that has been freely draining foreign currency from the country, since the nineties, by way of private foreign exchange dealers who have been allowed to sell foreign exchange to any Tom, Dick and Harry, including drug dealers, to take their sales proceeds out of the country!

We would also like to ask the relevant authorities what they have done to recover monies stashed abroad by Lankans illegally that were exposed in great detail by the likes of Panama Papers and Pandora Papers.

Continue Reading

Midweek Review

A Miscellany of Thought



N. A. de S. Amaratunga (2022)

A Review by G. H. Peiris

I cannot claim to have the scholarly competence to place under critical scrutiny all items in this collection of writings authored by Professor N. A. de S. Amaratunga, and published in The Island from time to time since the early years of the present century. Accordingly, this ‘review’ is no more than an attempt to convey to a wide readership my gratitude for what I have learnt from Professor Amaratunga’s insights on a series of metaphysical and secular issues that have figured prominently during the recent past in the arena of debate and discussion among our intellectual elite, my appreciation of his rational perceptions and his subtle banter in responding to bizarre elements in our public affairs.

As a brief introduction to the author I should state that Professor Amaratunga’s career record is featured by several decades of distinguished and dedicated service to the University of Peradeniya in teaching, research and clinical work. Acquiring advanced skills in the field of ‘Maxillofacial Surgery’, he has provided physical and psychological relief of life-long impact to thousands of patients. He is also credited to have trained several of his junior colleagues in the Faculty of Dental Science, had has served as its Dean. The offer he received from the Peradeniya University of the Prestigious Award of the ‘Degree of Doctor of Science’ is testimony to his eminence in Sri Lanka’s community of scholars and professionals.

What probably enhances Professor Amaratunga’s status among the intellectual elite of Sri Lanka is the fact that his talents, interests, and concerns have not been confined to professional expertise. He has authored several creative writings in Sinhala which the cognoscenti place at par with the best works of that genre. More relevant than all else to the present ‘commentary’ is his capacity for elucidating the essence of certain complex metaphysical issues – especially those of Buddhist philosophy ‒ with the same clarity of thought seen in his contributions to media forums on current affairs.

In his ‘Introduction’ to the volume Professor Amaratunga makes a categorical statement regarding the paradigmatic guidelines of his ‘thoughts’. They are rendered below in abridged form as follows:

(a) The distinctive elements of our island civilisation are derived from Theravada Buddhism and the Sinhala language.

(b) The leadership of Sri Lanka’s mainstream politics since the termination of British rule in the mid-20th century has continued to be impaired by a cultural duality – on one side of the divide, the ‘alienated’ whose behavioural values and norms bear the imprint of subservience to values prescribed by the ‘West’, and, on the other side, those who treasure our civilisational heritage and understand the needs and aspirations of the majority of our people.

(c) His standpoint is that of an ardent ‘nationalist’, in the sense that he is unequivocally committed to safeguarding and promoting Sri Lanka’s national interests.

On literature, Professor Amaratunga adds that he is inclined towards the need for ‘social relevance’ of the fine arts, and believes that the paradigm of ars gratia artis (‘art for art’s sake’) is inappropriate for Sri Lanka, especially in creative writing.

The ‘miscellany’ of this volume is structured to constitute four ‘Sections’ – titled as: 1. ‘Literature and Culture’; 2. ‘Religion’; 3. ‘Economy’; and 4. ‘Health’. The first two of these ‘Sections’, consist respectively of 25 and 19 essays of unequal length. In these ‘Sections’ the reader could pick out from different points of the temporal sequence in which they are arranged items that constitute a mutually cohesive group from the viewpoint of content. For example, in the first ‘Section’, there are six such items, each serving as a contribution to an ongoing media debate, but when considered as a group would be seen as an invaluable enrichment of understanding on a significant feature of the educational system of the country – such as, say, the impact of the nation-wide ‘Fifth-standard Scholarship Examination’ or ‘The general decline of standards in higher education’. Likewise, in the total of 18 articles in ‘Section’ 2, thirteen items could be considered as a mutually cohesive group of thoughts that illuminates certain vitally significant aspect of Buddha Dhamma and Buddhism as practiced in Sri Lanka.

The forgoing observations do not detract from the intrinsic value of the short contributions referred to. Indeed, in my amateur assessment, in Section 1, the items titled ‘Quality of University Education’, ‘Purpose of the Novel and its Appraisal’, and the twin items titled ‘Darwinian Evolution vs. Intelligent Design’; and in Section 2, ‘Truth in Buddhism and Realism in Literature’, and ‘Mind, Matter and Nirvana in Mahayana and Theravada Buddhism’, are examples of the author’s extraordinary depth of understanding and his skill of disseminating that knowledge in a lucid form.

It is in the 3rd Section of the volume titled ‘Politics’ that the real ‘miscellany’ of Thought is found, consisting of 78 items, and accounting for well over half the total page-length of the volume. Since they have been presented in a chronological order ‒ with the first item published in 2001, and the last in 2021‒ the list of items, at first glance, looks like a total mess which, indeed, is how our politics look. But a closer scrutiny show that all items in this list could be placed in one or another of 6 ‘Sub-Sections’ titled as ‘Ethnic Relations’, ‘Foreign Affairs’, ‘Electoral Politics’, ‘Development Plans and Projects’, and ‘Constitutional Issues’, with the chronology of the list providing the vicissitudinous background of each contribution which Professor Amaratunga has made, and each discussion or debate in which he has participated.

Once again I should emphasise that foregoing observation does not imply that the ‘Thoughts’ in this section, read individually, are either uninteresting or irrelevant to our present concerns. On the contrary they offer ideal readings both as reminders of the volatile scenarios we have passed though during the past two decades as well as the unshakable faith our politicians appear to have on the widespread dementia among the voter-population and on their own ability to hoodwink the electorate. Professor Amaratunga’s thoughts could re-kindle fading memories, especially on repeated failures to fulfil campaign pledges, the large-scale losses due to financial malpractices, the allegations of ‘war-crimes’ and of ‘violation of human rights’ in the counter-attack by the major powers of the North Atlantic alliance in retaliation to Sri Lanka’s close relations with the People’s Republic of China, the ingredients of success in the US-sponsored ‘regime change’ effort culminating in the establishment in 2015 of a puppet government in Colombo, the betrayal of our national interests by our own self-seeking representatives at the protracted Geneva inquisitions, the constitutional fiasco of August 2018, the euphoric Gotabhaya victory about a year thereafter, and then, the stunning exposure by the pandemic of the fundamental weakness of our dependent economy.

In the 4th Section of the volume titled ‘Health’, most of the items are devoted to diverse experiences witnessed globally and in Sri Lanka during the Covid-19 pandemic, but in an unconventional manner in the sense that they emphasise significant aspects that have not received adequate attention in the analytical writings on the pandemic. In my view the most significant issue highlighted in this section is the need for Sri Lanka to adopt development strategies towards self-reliance, especially in the availability of medicinal drugs and on food-security. Implicit in several items of this section is a forewarning of the risks entailed in the pursuit of development policies that enhance Sri Lanka’s macroeconomic dependence on the major global and regional powers.

Many items in this miscellany of thoughts contain a prominent element of dissent and disagreement with other participants in the media debates and discussion for which The Island has served as a major forum. But that dissent has all along been featured by a laudable sense of “civilised intelligence”. As a professional whose skills have an intense demand, his interests and concerns have not remained confined to his professional expertise – a feature often seen among other ‘specialists’ including those of the university community.

This volume is, first of all, a demonstration of intense and well-informed concern on a wide range of issues of vital importance to Sri Lanka. Had that quality been more widespread it is unlikely that those earning six-figure incomes would threaten collective action to bring the economy to a standstill to express their dissatisfaction on a relatively marginal erosion of monthly emoluments at a time of unprecedented national crisis, attempting to conceal their avarice with a façade of safeguarding democracy, or eliminating public corruption, or on grounds of their capacity to earn higher incomes outside Sri Lanka.

Yet another exemplary feature I discern in this ‘Miscellany of Thoughts’ is that its contents are not angry knee-jerk reactions when provoked by thoughts different to his own. Professor Amaratunga’s dissent is entirely free of the crude clashes often seen in the so-called social media. Nor are his thoughts based on a hurried consumption of internet ‘short-eats’. In his thoughts that extend beyond brief corrective interjections of ‘common sense’, what we see is an extraordinary depth of knowledge acquired through serious reading and a thorough understanding of the issues on which he had focused.

Continue Reading

Midweek Review

Loneliness of the Bottom Half



By Lynn Ockersz

There you crouch by your hearth,

Seeing your fires sputtering out;

Your hopes of a bubbly pot of rice,

Ending in inflationary smoke spirals,

Leaving you with the painful thought,

That your dignity as mother and wife,

Is gravely harmed and beyond repair,

For, a turn of events not of your making,

Has reduced you and yours to penury,

So much for that Trickle-down Theory,

That Pundits say will end your misery,

But they tell you not to stop dreaming,

Because soon you will be bailed out,

Of your State of longsuffering;

Thanks to Princely tips from ancient Italy.

Continue Reading