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From Villain to Unsung Hero



One winter morning in 1998, as a part of the SIA crew while planning a departure from Kimpo (Gimpo) International Airport Seoul South Korea, in our Airbus A 340 aircraft, we realised that it had snowed all night and the runway surface was ‘contaminated’ with melting snow (Slush). We had been told time and time again by the performance experts that a depth of snow, slush or standing water more than 3mm (1/8th of an inch), the proverbial SriLankan Baas’s ‘Noola’, on more than 25% of the Runway, it is considered to be contaminated. The Kimpo Airport Authorities hadn’t cleaned the runway surface like in most other airports.

A contaminated runway poses a whole host of problems for pilots attempting to take-off. Because of the natural resistance of the water, snow or both on the runway in varying degrees and depths, the acceleration to the take-off speed becomes slow as the wheels have to displace the contaminants using up a greater amount of runway length than on an uncontaminated (dry) runway. This leaves less runway length available for the aircraft to stop, if for some unforeseen reason the pilots need to abandon the take-off. Then stopping becomes a problem as the tyres may skid or aquaplane, making the wheel brakes ineffective with a good chance of over running the runway length available.

In this day and age, to reduce the thermal and mechanical stresses to the jet aircraft engines it was recommended by the manufacturer that pilots use a reduced thrust setting on uncontaminated (dry) runways, for take-off.  Therefore, it was mandated that on a contaminated runway, full thrust is used to enable the aircraft to accelerate quicker to the speed (V1) at which the Captain will have to decide whether he will stop or go. Every type of aircraft is tested in snow, slush or standing water, the spray patterns studied and a set of lower V1 speeds for slush operations are available for different take-off weights in graphs or in tabulated form for quick reference.  At V1 speed, if the Captain decides to continue the take-off it becomes a ‘non-event’. However, if he decides to stop for any reason, it becomes regimented and exiting as he has got to announce to the First Officer that he is discontinuing the take-off, apply brakes, close the engine Throttles, keep the aircraft straight on the centre line (that may not be visible), deploy spoilers and Reverse Thrust bringing the aircraft to a stop and cancelling Reverse and spoilers at the appropriate time. The non-flying pilot notes the air speed at which the Captain rejected and announces to the Control Tower that they have abandoned the take-off and then monitors the deceleration, providing a back up to the Captain’s actions. These are standard Operating Procedures (SOP’S) evolve through the years. Noting the speed at which they rejected the take-off is necessary when it comes to brake cooling time after rejecting a take-off. The brakes in the old days became white hot with its use at high speed. With the use of Carbon brakes and integral cooling fans the problem is resolved to a large extent. 

In the present day in all the modern airliners braking is done automatically using ‘Auto Brakes’ with anti- skid devices operating and this exercise (Rejected Take off) is practiced in the Simulator every six months as a team exercise under the supervision of a Flight Instructor. As a further consideration, the manufacturer Boeing’s analysis of all the past rejected take-off accidents have also shown that if the Captain was two seconds too slow in rejecting the take-off at the decision speed of V1, the aircraft will exit the runway at the other end at 60kt! So, their recommendation was to be ‘go minded’ at V1 and not attempt to stop. The reader will agree that a lot of things happening and judgemental considerations going through the Captain’s mind simultaneously while on the take-off run.(what if)

Usually on take-off on an uncontaminated runway it was a legal requirement to be at a height of 35 feet over the end of the runway. On a contaminated runway the aircraft is allowed to clear the end at 15 feet to accommodate the loss of performance. In addition to all this, in jet aircraft, it is recommended to have the continuous ignition ‘on’ to ensure that the engines do not flameout (fail) due to slush ingestion by the engine intakes. Fortunately, it wasn’t snowing that day in Kimpo and therefore did not pose a problem with ice on the wings which would have created another problem for us as the wings are meant to be clean on take-off. These Standard Operating Procedures (SOPs) are all contained in the Flight Manual of any particular type of aircraft and expected to be read and understood by its Crew.

That morning the take-off at Kimpo went off like clockwork. As everything appeared to be normal there was no need to abandon the take-off and after getting airborne, we had to concentrate on other important things like a sharp turn left before reaching the DMZ (De Militarised Zone) and avoiding overflying the South Korean President’s Palace which was a known prohibited area. They would fire two tracer shells. If no action was taken to change course and avoid, they will attempt to shoot you out of the skies, passengers or no passengers!

All in all, tackling a contaminated runway in modern times became a ‘piece of cake’ if one knew what to do. These procedures were not promulgated overnight. They were the result of ‘blood sweat and tears’ through the years. The story below is a good example.

In 1949 there was an accidental overrun of the runway of a Trans Canada Airlines (TCA) aircraft in Vancouver, Canada. The Investigators declared that the probable cause was the presence of slush (melting snow) on the runway preventing acceleration to the required speed for take-off. This observation was intimated to many airlines including British European Airlines (BEA) authorities who had not taken any cognizance and duly filed the letter without advising their operating crews of such possibilities.

Nine years later, on 6th Feb 1958, Capt James Thain and Capt Kenneth Rayment were operating a BEA charter flight from Belgrade Yugoslavia to London with the Manchester United Football Team and some well-known sports writers as their passengers. Both pilots were good friends and had served in the RAF together during WWII. Usually there would have been a regular First officer but since both captains had common interests like poultry farming, they had requested to operate together. The young Manchester United team known as ‘Busby Babes’ were well on their way to be European Cup Champions. Since the Airspeed Ambassador ‘Elizabethan’ aircraft did not have sufficient range to fly direct to London, they needed to do a Technical (refuelling) stop in Munich, Germany. The flight was uneventful till they reached Munich.

The Runway was contaminated with melting snow in Munich. Light snow was falling on the wings. Due to the fact that anti-ice heaters were used on the descent into Munich Airport, Capt. Thain decided not to get the wings cleaned. It was a judgment call.

After refuelling the crew attempted to take-off twice, but had to discontinue due to an engine malfunction. Then they taxied back to the ramp for a consultation with the Ground Engineer, after which the two captains decided to open power slowly to fix the engine problem which was known to occur in Munich which was over 1700 feet above mean sea level. On the third attempt the power was opened slowly and that involved a longer take off run which took the aircraft to a more contaminated unused part of the runway which actually made the aircraft lose speed from 117 knots to 105 knots and never accelerated to flying speed. Capt Thain was looking inside the cockpit and carefully ‘nursing’ the engines and monitoring the speed while Captain Rayment was handling the controls. When he looked outside the runway end was closing in quickly and it was too late. He opened throttles to the maximum. The wheels never left the ground because it didn’t have flying speed. The aircraft over ran and crashed through a fence, hit a tree and a house and burst into flames. The crash killed 23 out of the 44 passengers and crew on board, critically injuring Capt Kenneth Rayment, He passed away a few days later, leaving Capt Thain to carry the blame alone. With that, destroying the chances of Manchester United being European champions.

The German Accident investigator Capt. Hans J Reichel and his team arrived from Brunswick, West Germany, ill-equipped, about six hours later. By this time the weather had worsened and it was night time. He had to borrow lighting equipment from the BBC photo crew present at the site, He had been a pilot both in the Luftwaffe and Lufthansa the German Airline. The first thing he did was to check for wing ice and found a six-hour build-up of snow and declared that there was ice on the wings before take-off. No proper measurements of the depth of the slush were done on the runway at Munich. A parallel UK investigation was also launched. The formal accident inquiry commenced on 29th Apri’58 and was protracted and didn’t consider the effect of slush at all. The ‘Brits’ virtually fell in line with their German counterparts. The Final Accident Report came out on 9th March 1959, (More than a year after the crash), blaming the ice build-up on the wings and Capt Thain’s failure to de-ice.

It saidL:

“Apart from the ice, we couldn’t find any other reason which could have contributed to the air crash “

Capt Thain’s licence was suspended and he reverted to full time poultry farming while relentlessly working with the British Air Line Pilots Association (BALPA) to obtain more research data on the effects of slush on Take-off performance.

In 1961 Capt. Thain was fired from his job of BEA for allowing Capt Rayment to sit in the Left hand seat while he as designated Captain on the roster sat on the Right hand seat. The Captain on the roster should have sat on the Left hand seat and thus it was purported that he had violated the existing BEA Flight Crew Standing Orders which in itself a relatively minor matter. Looking back, it probably was just an excuse to shed him as this WWII veteran and BEA Captain ended up being an embarrassment to the Airline. There was no doubt about his ‘unquestionable ability’ up to that time of the accident.  In the eyes of the general public and Football fans he was considered a villain.

If the German Accident Investigators blamed the Slush on the Runway for the overrun then the Munich Airport Authorities would have to take the rap for not cleaning the runway surface. It was rather obvious that like in most accidents it is convenient and emotionally satisfying to blame an individual and not the system that gave rise to the unsafe situation. Capt. Thain did not give up trying to clear his name. He was determined to find out the real cause of the accident. He appealed.

Seven months after the crash in September 1958 the FAA started conducting practical tests on the impact of slush on aircraft acceleration for take-off. Although there was new scientific evidence available, the Germans were not keen on reopening the case and Capt. Thain was languishing in guilt. Capt. Thain kept the pressure on. Eventually in 1967 Prime Minister Harold Wilson mentioned publicly, that Capt. Thain was a “victim of injustices.” Soon after (1968) the British were also conducting experiments with slush on the runway at Royal Aircraft Establishment (RAE) in Bedford in shallow ponds of standing water, using Canberra, Viscount and Ambassador Aircraft. The significant adverse effects of slush on the Runway were confirmed.

Finally, Capt. Thain’s persistence paid off and his plight was mentioned in Parliament and the British Authorities agreed to review the investigation and found that the German investigation was incomplete. The Investigators had not interviewed many witnesses including the Air Traffic Controllers and those who reached the wreck first and could have given evidence to say that there was no ice on the wings immediately before the crash. It seemed that witnesses had been selectively interviewed to fit the ‘probable cause’.

Eleven long years after the crash in March 1969 Capt. James Thain was finally exonerated, but died soon afterwards of a heart attack at a relatively young age of 54, due to trauma and stress. This prompted one of the ‘wags’ in the BALPA to declare that “If the crash doesn’t kill you, the inquiry will” 

Capt. James Thain with his determination to find the real culprit of the Munich accident made taking off in slush safer for airline pilots, by triggering off research on both sides of the Atlantic that evolved into SOP’s which allowed us to take off safely from Kimpo that wintry morning.

In his own words, to his daughter, “The difference between the possible and impossible is merely a measure of man’s determination”

To me, Capt. James Thain was an unsung hero whose great determination to prove his innocence made flying safer for the future air travellers.



Singarasa Case should guide GoSL’s Geneva policy



BY Dharshan Weerasekera

In 2005, the Sri Lankan Supreme Court ruled in the seminal case Singarasa v. Attorney General (SC/SPLA/182/99) that the U.N. Human Rights Commission (the predecessor of today’s U.N. Human Rights Council) did not have jurisdiction, within Sri Lanka, to make recommendations on behalf of the petitioner. In doing so, the court decided that Sri Lanka’s accession to the optional protocol to the International Covenant on Civil and Political Rights (ICCPR) in 1997 had been done in a manner contrary to the Constitution, and hence illegal.

This case has invaluable lessons to teach in regard to the present government’s ‘Geneva Policy.’ By ‘Geneva Policy,’ I mean the government’s stance to the UNHRC’s follow-up resolutions to Sri Lanka’s unilateral withdrawal, in March 2020, from the co-sponsorship of Resolution 30/1 of October 2015. In response, the Council adopted Resolution Resolution than 30/1. Among other things, it establishes an evidence-gathering mechanism to collect evidence of war crimes and other crimes against Sri Lankans.

Meanwhile, in September 2022, the High Commissioner released a report on Sri Lanka’s progress in implementing the recommendations of Resolution 46/1. The government has officially rejected both, Resolution 46/1 and the High Commissioner’s report, on grounds that they were done without Sri Lanka’s consent and, therefore, contrary to the founding principles of the Council. (See A/HRC/51/G/1, paras 1.1, 1.2). However, the Foreign Ministry, in its response, lists various things that the government is doing to comply with Resolution 46/1.

I argue that the government, continuing to comply with the Resolution while, at the same time, rejecting it in principle, without first obtaining a definitive interpretation of the relevant legal position, from an international forum, or even the Sri Lankan Supreme Court, creates a dangerous precedent. Given the fact that state practice is one of the sources of customary international law, the government’s conduct has the potential to do irreparable harm to the long-term interests of the country.

Unfortunately, there is little, or no, discussion of these issues in local newspapers, and academic journals, and it is in the public interest to start one. In this article, I shall discuss: i) the facts and reasoning of the Singarasa judgment, ii) the High Commissioner’s report and the government’s reply, iii) assess of the government’s position, and draw the relevant conclusions.

The Singarasa case

In 1991, the High Court of Colombo convicted Singarasa of five charges, under the Prevention of Terrorism Act. The charges dealt with alleged attempts by Singarasa, and others, to attack the Army camps,in Jaffna and its suburbs. Singarasa appealed against the conviction to the Court of Appeal and then the Supreme Court. He also complained to the U.N. Human Rights Commission. The HRC could entertain petitions under the Optional Protocol to ICCPR. Sri Lanka had ratified the ICCPR, in 1980, and acceded to the protocol, in 1997. The HRC said that, Sri Lanka was under obligation to release Singarasa.

The main issue, in this case, is whether Sri Lanka’s accession to the ICCPR, and the related protocol, gives a right to an international body to intervene in the domestic sphere to determine Singarasa’s fate. The court answers ‘no,’ because of the following reasons. The court starts with the premise that the authority for the President to enter into international agreements comes from Article 33(f) of the Constitution. Article 33(f) states: “To do all such acts as, not being inconsistent with the provisions of the Constitution…he is required or authorized to do.” It follows that the President cannot agree to anything inconsistent with the Constitution.

The court then assesses the signing of the ICCPR, in 1980, and the subsequent accession to the optional protocol, in 1997, separately. The court points out that the ICCPR requires that the respective signatories adopt domestic legislation to implement the provisions of the covenant. This does not conflict with our Constitution and hence is lawful.

However, when acceding to the optional protocol, the government had issued a declaration that envisioned that the rights of Sri Lankan citizens could be adjudicated in tribunals, and forums, outside this country. The court points out that the institutions, through which Sri Lankans can vindicate their rights, within this country, are exhaustively set out in Article 105 of the Constitution, and the HRC is not one of them. Therefore, the court deems the accession to the optional protocol illegal. The court states:

“Where the President enters into a treaty or accedes to a covenant the content of which is inconsistent with the provisions of the Constitution or written law it would be a transgression of the limitation in Article 33 (f) and ultra vires—such acts of the President would not bind the Republic qua State.” (p. 11)

The High Commissioner’s report and the Government’s reply

The most disturbing aspect of the High Commissioner’s report is its description of the progress made by the impugned evidence-gathering mechanism. It states: “OHCHR continues to develop the information and evidence repository using an e-discovery platform….OHCHR commenced identifying material held by other actors and engaging with information providers. To date, the databases of two organisations have been migrated into the repository, and negotiations with other information providers are ongoing.” ((A/HRC/51/5, 4th October 2022, para 54.)

The report also details what the OHCHR plans to do with this information. It says: “To develop possible strategies for future accountability processes, the project team started mapping potential accountability process at international level, including through consultations with relevant stakeholders, in particular national authorities, victims and civil society organisations.” (para 56.)

In sum, it is clear that a vast operation is underway, not just to collect evidence against Sri Lanka but to set the groundwork to help prosecute Sri Lankans before various national and international forums. To the best of my knowledge, the founding statutes of the UNHRC, as well as the OHCHR, do not give enforcement capabilities to these institutions to prosecute or assist in the prosecution of people for violations of human rights and other offences.

Their respective mandates to protect and promote human rights are to be carried out with the consent of all nations concerned and in a spirit of “cooperation and constructive international dialogue.” Therefore, through the impugned mechanism the OHCHR has now arguably expanded its mandate to include an enforcement component, seemingly without any debate or discussion of the matter before the Council.

To turn to the government’s response, in the introductory paragraphs of the said document, the government rejects both resolution 46/1 as well as the High Commissioner’s report on grounds that they violate the UN’s founding principles. However, for much of the remainder of the report (which runs to 16 pages) the government enumerates the various things it has been doing to implement various provisions of the resolutions. For instance, the government discusses the work being done under the Office on Missing Persons, Office for Reparations, and so on.

On the OMP, the report states inter alia: “The OMP conducted panels of inquiries as part of the verification process. More than 89% of persons (1207 of 1370 applicants invited for inquiries) met with members of the panel and their testimonials were recorded.” (A/HRC/51/G/1, 9th September 2022, para 46)

Meanwhile, on the Office for Reparations, the report says, “The office processed 5964 claims for payment, by the end of 2021, and paid a sum of Rs. 399.8 million in settlement, out of the allocated sum of Rs. 800 million….Upto the end of 2022, the OR received Rs. 226 million to pay compensation and 2097 claims were settled utilizing Rs. 153 million.” (para 56)

In sum, even though the government has nominally rejected resolution 46/1 and by extension resolution 30/1 as well, the government is expending great energy, including enormous sums of money, to comply with various provisions of those resolutions.

Assessment of the policy

The Singarasa case establishes that the President, when conducting foreign policy, is exercising the power conferred under Article 33 (f) of the Constitution. One cannot suppose that it is consistent with the Constitution to comply with the provisions of a resolution that the Government itself considers to be in violation of the founding principles of the UNHRC.

Admittedly, a resolution of the UNHRC does not rise to the level of a treaty or covenant. However, there should now be a serious debate in this country about whether the reasoning above should apply to such resolutions which continue to target Sri Lanka on the world stage.

Furthermore, if, as I have suggested, the OHCHR has expanded its mandate by exploiting the provisions of Resolution 46/1 to acquire capabilities that were never envisioned in the relevant founding statutes, permitting such conduct to continue has the potential to set precedents in customary international law, with grave consequences for Sri Lanka, as well as other nations.

Therefore, Sri Lankan citizens are entitled to know the legal basis for the government’s continued compliance with provisions of Resolution 46/1, while nominally rejecting the Resolution. The only institution that can provide a legal opinion binding on the government is the Supreme Court. The President has the capacity, under Article 129 of the Constitution, to request an advisory opinion of the Supreme Court on any matter of public importance.

In these circumstances, it is incumbent on the government to seek an advisory opinion as to whether it is lawful for the government to continue complying with provisions of Resolution 46/1 unless and until the UNHRC clarifies its position in regard to the impugned mechanism.


It is in the interest of all Sri Lankans to keep a close eye on what the government is presently doing in Geneva. There is a famous legal maxim that says, “The laws assist the vigilant, not the sleepy.” Ultimately, it is the Sri Lankan people who will pay the price for any mistakes or missteps that successive governments make in regard to their “Geneva Policy.’

(The writer is an Attorney-at-Law)

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Human Papillomavirus vaccine: one that can prevent a cancer



This article has been written as a fervent plea to the parents of little girls of the eligible age group. Please make sure that your precious daughters get this vaccine. It will be an investment for their happiness in the future.

By Dr B. J. C. Perera

All vaccines by definition are substances that are used to stimulate immunity against a particular infectious disease or a specific causative organism. Such vaccines are used to prevent the occurrence of the said diseases in humans and animals. Several vaccines have been introduced to combat such infectious diseases over the last few decades. In some countries, the use of some of these vaccines has led to the elimination of dreaded diseases like Diphtheria, Tetanus, Whooping Cough or Pertussis, Polio, Measles, German Measles or Rubella, just to name a few.

Sri Lanka has a very efficient and inherently equitable system that looks after the Expanded Programme of Immunisation (EPI) for children and young people. In general, we have been extremely successful in this programme and can boast of over 90 per cent coverage for the vaccination of all children. We have successfully eliminated polio, the last case being confirmed as far back as 1993, and we are free of diphtheria, tetanus, measles and German measles or rubella. The success of the EPI is due to many factors that include government commitment, the unstinted dedication of parents, the promotion of the programme through all media channels and the dedicated work of all grades of healthcare personnel. The very high literacy rate of the populace of our country enables all information regarding vaccination to be most conveniently conveyed to the population. Sri Lanka has been hailed as a country that has achieved so much in this field, but with so few resources. It has been cited as a model to the entire Asian region as well as even the world.

In addition to their undoubted effectiveness in protecting against infective microorganisms, some of these vaccines have other bonus effects. At least two of the vaccines in use today have telling effects in preventing certain cancers. One is the Hepatitis B vaccine. It provides protection against liver cancer. The other is the more recent Human Papillomavirus vaccine (HPV vaccine) which protects females against cancer of the neck of the womb, which is also referred to as the cervix of the womb. That disease is generally referred to as Cervical Cancer.

The Human Papillomavirus (HPV) is sexually transmitted and most people become infected sometime during their lifetime. In the majority, it is soon after becoming sexually active. Most infections are asymptomatic and usually clear up spontaneously, accounting for remission in 90% within two years. Only 10% of persistent HPV infections with certain genotypes of HPV can persist and progress to changes in the cervix. If infection from cancer-causing HPV types persists over 10-15 years, women can go on to develop precancerous lesions that, if left untreated, develop into cervical cancer. This process takes an average of 20-30 years from infection to the development of cervical cancer.

In 1995, Dr Anne Szarewski, a renowned researcher from the United Kingdom, led a team who outlined the role of human papillomavirus in uterine cervical cancer detection and screening. Then the researchers began work on an HPV vaccine. Szarewski was also a chief investigator, principal investigator and author of key HPV vaccine trials and publications, who helped to develop the bivalent HPV vaccine. The word bivalent is used to indicate that it contains two strains of HPV. HPV infections are very common, often with minimal symptoms, but high-risk HPV strains can go on to cause other medical conditions, particularly cervical cancer.

In 2006, the first vaccine for Human Papillomavirus (HPV) to be used globally was approved. HPV vaccination has now gone on to become a key part of the effort to eliminate cervical cancer. According to the available research results, HPV vaccination could reduce the lifetime risk of cervical cancer by 35–80%; the rather wide range being due to several studies with different methods. The vaccine was initially promptly snapped up in the West, especially in the Scandinavian countries. In Sweden, the coverage of the vaccine is over 80 per cent. However, according to the data put out by the World Health Organization (WHO) in November 2022, the human papillomavirus vaccine against cervical cancer has been introduced in just 41 per cent of low-income countries, even though they represent much of the disease burden, compared to 83% of high-income countries. We have a set of 10-year data on the benefits of the vaccine and in certain Western countries, a significant drop in the morbidity and mortality rates of cervical cancer is already evident.

In Sri Lanka, the National Vaccine Summit in January 2015 recommended the usage of the HPV vaccine and the government introduced it in 2017 for girls within the age range of 10 to 13 years. That age group was decided on the premise that to get the best results, we need to introduce the vaccine before sexual activity starts. The vaccine was to be administered to the selected age groups in the schools free of charge and in the fee-levying private sector. To date, the vaccine is not available through the Immunisation Clinics of the Provinces and the MOH Clinics.

NOW HERE IS THE REAL CRUX OF THE MATTER. For a variety of reasons, the coverage of the HPV vaccine in the entire cohort of eligible girls in Sri Lanka is somewhere between 30 and 40 per cent. This is woefully inadequate coverage to get the best possible results, especially when looked upon in the light of over 90 per cent coverage of the other vaccines in the National Expanded Programme of Immunisation. Cervical cancer ranks among the five commonest cancers in women in Sri Lanka. HPV vaccine is just one of two vaccines that can prevent cancers. All children have had the Hepatitis B vaccine which protects against liver cancer, as it is given through the National Programme of Immunisation. But, and this is a BIG BUT, the only other vaccine, the HPV vaccine that can prevent cervical cancer, shows a rather low uptake.

We do need to escalate the uptake rate of the HPV vaccine to at least around 80 per cent to get reasonable benefits in the reduction of the morbidity and mortality that is currently seen in cervical cancer. I think we have to admit that due to very many reasons, the message has not gone through to the general population in the country. When inquiries are made from the mothers of eligible girls, the vast majority of them are not even aware of the existence of this vaccine and more importantly, the future beneficial potential of this endeavour. The age group selected is a rather tricky cohort. They get upset at the drop of a hat. The last thing they want is an injection. They will run away, as fast as possible, to avoid it. Some are so frightened that it is not uncommon to see them faint even at the sight of the syringe and the needle. One way of getting the cooperation of these little girls is to allow either the mother or the father to be present to hold her hand most reassuringly when the vaccine is administered. An additional initiative would be to make it widely available through the Immunisation Clinics for it to be administered to all those who have missed it when it was given in the school. This is particularly important as the vaccine is quite expensive when administered in the private sector.

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Latest position on debt restructuring process



By Jayampathy Molligoda

According to the announcement made by the Managing Director of the IMF Kristalina Georgieva, the IMF Executive board meeting will be held on 20 March to consider and hopefully approve the EFF arrangement for Sri Lanka. In the meantime, the Ministry of Finance and the Central Bank in consultation with IMF have finalised the latest position of Sri Lanka’s Public Debt as at end 2022 just prior to commencement of debt restructuring negotiations with creditors. Having perused the document uploaded to the Ministry of Finance (MOF website) recently, which is a comprehensive summary of debt stock as at end 2022, I have tabulated the summary of the main facts and figures (See Table). As can be seen, the total public debt stock has skyrocketed to US $ 83.6 billion, which includes total foreign debt of US$ 45.6 billion and the local debt of 38 billion in US $ equivalent. The total debt as a % of GDP as stated in the above MOF doc is 128%. The public debt is expected be reduced to 100% of GDP in order to ensure debt sustainability in line with IMF supported program parameters coupled with ‘comparability of treatment principle’ whilst ensuring equitable burden sharing for all restructured debt.

However, I have my doubts about GDP computation here. As per the MOF doc page 1, the Nominal GDP was stated as Rs. 23.7 trillion for the year 2022. The $ exchange rate used for conversion as Rs.363.10 clearly indicating that it is the year end figure, they have taken the year end Exchange rate of Rs 363.10 per US$. It is pertinent to ask the question as to why ‘year- end exchange rate’ figure to convert our annual GDP in rupee to US dollars? It should have been the ‘average exchange rate’ as in the past so many years computed by CBSL. As a result, the GDP (in US$ terms) works out to US$ 65.2 billion only. That’s why the total public debt stock of US$ 83.6 billion works out to 128% of GDP – my initial query is; why did they take year-end figure of Rs363.10 instead of taking the average exchange rate?

Besides, the real critical issue is how to reduce the debt stock to a level of 100% of GDP in the context of declining GDP (- 7.8% in 2022) and on the other hand, our debt stock is on the rise. More importantly, if we take the total ‘multilateral debt’ out, then the foreign debt is US $ 34 billion only, which includes ISBs and bilateral loans. Assuming a higher ‘haircut’ of 33% for foreign debt is agreed upon, it works out to 11 billion thus reducing the total public debt to 73 billion only.

In this regard, The President in his latest open letter dated 14 March ‘23 to Sri Lanka’s official Bilateral creditors has clearly indicated that there will be equitable treatment of burden sharing in respect of all creditors (except IMF/WB/ADB) Quote; ” ..we reiterate our commitment to a comparable treatment of all our external creditors with a view to ensuring all round equitable burden sharing for all restructured debt. To that end, we will not conclude debt treatment agreements with any official bilateral creditor or any commercial creditors or any group of such creditors on terms more favourable than those agreed. …To this end we also confirm that we have not and we will not make any side agreements with any creditor aimed at reducing the debt treatment impact on that creditor.”

In the circumstances, my own view is we are reluctantly compelled to restructure local debt i.e.; TBs and, it is inevitable that the local debt of USD equivalent of 38 billion would also need to be taken into consideration for debt restructuring – otherwise there is no way of reducing the total public debt stock to the level that is required as per IMF conditions. This would create a serious issue for our ‘finance system stability’ and all our commercial banks will be in trouble. Further the deposit holders including pension funds are badly affected. The temperature of social unrest is brought closer to the boiling point.

As stated in the global research article by Jonathan Manz recently, former Chief Economist and Senior Vice President of the World Bank, and Nobel Prize winner, Joseph Stiglitz, has slammed the IMF for unleashing riots on nations the IMF is dealing with; he has pointed out that the riots are written into the IMF plan to force nations to agree with the average 111 conditions laid down by the IMF and they destroy a country’s democracy and independence. He has been a critique of IMF causing great damage to countries through the economic policies it has prescribed countries to follow in order to qualify for IMF loans. However, neither Stiglitz nor any other eminent economist has yet to come out with a practical and alternative policy framework to overcome the most serious economic and financial crisis faced in the 75 years of Sri Lanka’s independence.

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