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Editorial

Pensions, perks and privileges

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Last week’s parliamentary proceedings proved combative with both the government and the emasculated opposition hurling allegations at each other triggering much heat in the chamber. Observers must therefore be excused for wondering whether arrangements now being made to conduct the long postponed local government elections followed by provincial council polls have enervated political players months after last year’s presidential and parliamentary elections. The NPP/JVP cannot be happy about its performance at recent cooperative elections and opposition parties must be anxious to demonstrate they are not total write-offs as last year’s polls suggested.

Subjects over which angry words were exchanged ranged between luxury Colombo residences being provided to former presidents at taxpayer expense and other privileges enjoyed by government functionaries paid for by the exchequer. The news also broke last week that, on a decision of the House Committee, the elected representatives of the people will no longer be fed sumptuous heavily subsidized meals in the parliament restaurant. Prices will be cost reflective, no less than the president has said. It was reported that MPs will henceforth have to pay Rs. 2,000 for breakfast, lunch and afternoon tea at the parliament restaurant against Rs. 450 in the past.

We need hardly labour the fact that there is deep seated public resentment about ministers and parliamentarians being pampered at public expense. Former prime minister, Sir. John Kotelawela, once famously said “handa athey thiyanakan bedaganilla” (as long as the spoon is in your hand, serve yourself!). The ruling elite has been doing just that over the years. The present regime has earned brownie points, probably translating to votes, for its determination to end or at least trim this state of affairs hopefully for all time.

President Anura Kumara Dissanayake, appearing on a television talk show a few nights ago, repeated the promise that pensions for parliamentarians will be abolished although there is no word yet about when this would be done. The KT Chitrasiri report of a committee headed by a retired Supreme Court judge on perks and privileges conferred on politicians, past and present, is in but has not yet been published. But it is known or widely believed that the first steps are being taken regarding the Colombo mansions provided to former presidents is a result of these recommendations.

The present scheme of pensions to parliamentarians is an abomination. A minimum five years of parliamentary service entitles the beneficiary to a lifetime’s pension which will continue to be paid to a surviving spouse, also for life. These pensions are non-contributory. This is quite in contrast to what prevails where government servants are concerned. A public servant must work for 30 years to qualify for a full pension. While both public servants and MPs enjoy non-contributory pensions, government employees must contribute to what is called the Widows and Orphans Pension Scheme (W&OPS) for their families to benefit from their pensions after their death. MPs enjoy that without payment. Also there is no minimum retirement age for parliamentarians unlike in the public service. MPs continue in office until they are defeated or decide not to seek re-election without loss of pension benefits.

While there is no reason to disbelieve the president’s assurance that MPs pensions would be abolished, the question is when? A very large number of pensionable parliamentarians were defeated or decided not to run at the last election as they saw their chances of re-election either as slim or non-existent. We are told that those who became entitled to parliamentary pensions following the last election are already being paid. Where public servants are concerned, it is always not that easy for pension payments to begin soon after retirement. They have to wait for months and years sometimes to be paid as papers from various offices, schools and departments where they served in different parts of the country must be collated to begin such payments. This difficulty will not arise where parliamentarians are concerned. Nevertheless withdrawing privileges, especially from long time beneficiaries, is not as easy as granting them.

Last week’s parliamentary proceedings as well as press reports revealed that three former presidents, Chandrika Kumaratunga, Mahinda Rajapaksa and Maithripala Sirisena enjoy state-owned residences in Colombo. Gotabaya Rajapaksa and Hema Premadasa have given up such homes they once occupied – Mrs. Premdasa for many years after the assassination of her husband. Mind-boggling government valuations running into millions per month of these perks have been bruited around by the president and others in the ruling hierarchy. CBK is already on record saying she’s spent a fortune, raised by selling her own property, refurbishing and maintaining her official residence. This seems not to be the case where MR is concerned; at least he has not claimed to have done so.

MR’s mouthpieces are on record saying he would go if he’s asked to go. This neither appears to have been done nor has he been asked to pay the true value of the property he occupies. Rajapaksa is entitled to a third of his pension – about Rs. 30,000 – if he is not provided suitable accommodation by the state. While acolytes say there are plenty of people to provide MR with a home if he needs one, the cabinet spokesman says “don’t wait to be asked, just go.” All this, of course, is useless talk. Ministers did occupy state owned mansions over the years. So also did (and do) many state officials. Are valuations placed on state-owned residences they occupy and are they asked to pay commensurate rent?

The present ministers don’t occupy state-owned residences unlike their predecessors where some even built swimming pools for themselves and one installed a lift for his elderly mother. The prime minister, we know, lives in her own home and not at Temple Trees. The president too does not live in government owned premises. Duty free vehicles for MPs, also a past abomination, will be no more. We remember a JVP MP of the past bringing her own buth packet to parliament. But we have not heard of anybody refusing a parliamentary pension he/she was entitled to and wonder whether a single individual has drawn not one but two parliamentary pensions in the past!



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Editorial

Cushioning tariff shock

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Thursday 10th April, 2025

President Anura Kumara Dissanayake’s letter to US President Donald Trump over the US tariff hikes has received much publicity. The NPP government is reportedly sanguine about a positive response from Washington to its request for lower tariff on Sri Lanka’s exports, especially apparels. Hope is said to spring eternal, and there is nothing wrong with being optimistic, but it behoves Sri Lanka to prepare for the worst-case scenario. President Trump’s mind is so elusive that it is not possible to predict his moves, much less guess what he expects the smaller economies to do if they are to qualify for US tariff reductions, if any. He is eyeing mineral resources in Ukraine in return for US military aid to that war-torn nation. Sri Lanka has no such resources to offer. Is the Trump administration trying to pressure it into going out of its way to help further Washington’s geostrategic interests in this part of the world?

China has retaliated by increasing tariffs on imports from the US thereby aggravating global economic uncertainty. Washington says its tariff increases are reciprocal, and therefore the countries affected by them may think they can gain relief by reducing duties on US exports. But the question is whether such action will help the US rectify its massive trade imbalance significantly. The demand for American exports will not increase substantially even if countries like Sri Lanka lower duties thereon, for factors such as cost and quality basically drive demand. Imports from the West, especially input materials, are not in high demand in the developing world because of the availability of cost-effective alternatives.

So, the Trump administration is likely to insist that apparel producing nations like Sri Lanka import commodities such as cotton fabric from the US so as to give a fillip to the American industries. This is what US Ambassador Julie Chung told former Minister Mano Ganeshan at a recent meeting, according to a report we published on 27 March. Such a move is bound to increase the cost of Sri Lankan apparels because US products are very expensive and will adversely affect the competitiveness of Sri Lanka’s apparels in the global market.

President Trump is hopeful that ‘jobs and factories will come roaring back’ because of the tariff hikes at issue, but he does not seem to have factored in the high cost of production in the US and increases in the prices of imports due to high tariff hikes. Tech analysts have pointed out that Apple iPhone prices would soar if they were to be made in the US, and even if the existing supply chains are maintained, their prices will increase substantially. The same may hold true for other commodities, whose prices remain low in the US at present owing to cheap labour and lax environmental laws in the other countries where they are produced.

The countries hit by the US tariff increases have adopted different strategies to cushion the blow from the drastic US action, which has led to a global stock market rout, and sparked protests in the US itself. India is seeking to strike more trade deals with other nations, according to Indian Finance Minister Nirmala Sitharaman, who says such measures have become necessary in view of prevailing global uncertainty. Sri Lanka can learn from how India is trying to mitigate the impact of the US tariff hikes.

Prof. C. A. Saliya, a senior banker turned academic, has pointed out in his latest column, Out of the Box, in this newspaper that if the emerging economies get their act together, they may be able to turn disruptions caused by the isolationist, protectionist, and coercive US trade practices into an opportunity to diversify their exports and trade relations, invest in technology and undertake structural reforms to ensure their economic resilience.

Meanwhile, the formulation of Sri Lanka’s strategy to navigate the new US tariff regime should arise from a tripartite effort if it is to be effective. The government, industrialists and workers should be represented in discussions on the issue. It is high time trade unions shifted their focus from their demand-oriented activism to the pressing need to play a crucial role in protecting the domestic industrial sector. The government should do everything in its power to help industrialists keep costs manageable, ensuring the competitiveness of their products in the global market, and the captains of industry must carry out their export operations in a transparent manner without resorting to sordid practices such as parking most of their export proceeds overseas.

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Editorial

Lies, damned lies, and political claims

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Wednesday 9th April, 2025

Hardly a day passes in Sri Lanka without the government and the Opposition locking horns and trading allegations of deception, lying and corruption. Deputy Minister of Vocational Education Nalin Hewage, who is at the forefront of the government’s propaganda campaign against the ruling NPP’s political rivals, has caused quite a stir by making a false claim about Sri Lanka’s economic recovery process.

Politicians as well as their mistruths, half-truths and blatant lies are rarely, if ever, out of the news in this country. Politics is generally thought to be a web of deceit, intrigue and lies due to manipulation, horse dealing, dishonesty, power struggles, scandals, corruption and other negative factors it is often associated with.

It may not be fair to paint all politicians with the same brush and label them as liars; there are honourable men and women in politics. However, the general perception is that only the politicians following Machiavelli, who has argued that rulers sometimes have to resort to deception and lying, achieve success in Sri Lanka. This view is not without some merit if our experience with politicians’ claims is anything to go by.

Most Opposition politicians who were lucky enough to survive last year’s Maroon Wave, which swept the NPP to power with a steamroller majority, are lying through their teeth. Denying allegations of corruption against them, they make themselves out to be paragons of virtue, but they won’t account for their wealth. It has now been revealed that the SLPP politicians who lost some of their properties due to mob violence in 2022 falsified the estimates of their losses and obtained compensation far exceeding the actual damages. They also have the audacity to make absurd claims and insult the intelligence of the public. Prior to the 2019 presidential election, the SLPP propagandists claimed that a huge cobra had emerged from the Kelani Ganga and it was a miracle signalling the rise of their candidate to the presidency. When the first Treasury bond scam was committed in early 2015, most UNP parliamentary group members, some of whom are in the SJB at present, told blatant lies in a bid to cover it up.

Deputy Minister Hewage has come under a social media piranha attack, as it were, over his claim at a recent NPP local government election rally in Galle that when the NPP took over the reins of government, last year, Sri Lanka’s foreign reserves had plummeted to USD 20 million, and under the incumbent government they had increased to USD 6.1 billion. Interestingly, disappointed that his claim had not elicited a rapturous applause, Hewage faulted his audience!

Hewage is not alone in claiming that it is the incumbent government that put the economy back on an even keel. Almost all NPP leaders make that claim at political rallies. Besides, they have sought to grab the credit for the completion of some projects previous governments launched, such as the restoration of the Elephant Pass salt factory and the construction of a cold storage facility in Dambulla. What takes the cake is the NPP’s claim that the country has gained nothing since Independence.

It will be interesting to see the NPP’s reaction to Hewage’s claim, which continues to draw heavy criticism on social media. The CID is conducting a probe into SLPP National Organiser and MP Namal Rajapaksa’s law exam results. Going by the absurd claims made by the ruling party politicians, it looks as if the NPP government had to order an investigation into the educational qualifications of some of its own parliamentary group members, especially those who claim to be economic experts.

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Editorial

Who will guard the guards?

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Tuesday 8th April, 2025

The Opposition has been protesting against what it describes as a veiled threat issued by President Anura Kumara Dissanayake, at a recent NPP Local Government (LG) election rally. The United Republican Front led by former Minister Champika Ranawaka has complained to the Election Commission (EC) that President Dissanayake has made a statement, implying that his government will make financial allocations expeditiously only to the local councils the NPP will win in the upcoming LG polls, and others will find it difficult to obtain state funds.

One can argue that it is not legally possible for a government to deprive the local councils controlled by the Opposition of funds, but threats of fund cuts or restrictions, made by the President himself, could demoralise the people who intend to vote for parties other than the NPP in next month’s LG polls. Political power takes precedence over the law, ethics and morals, in this country, and therefore anything is possible.

In politics, words can be as impactful as actions, shaping public opinion and influencing decisions. One may recall that in 2015, the then President Maithripala Sirisena, as the SLFP leader, queered the pitch for his bete noire, former President Mahinda Rajapaksa, who was contesting that year’s general election as the prime ministerial candidate of the SLFP-led UPFA. In the run-up to that crucial election, Sirisena said in a television interview something to the effect that Rajapaksa would not be appointed Prime Minister even if the UPFA won enough seats to form a government. His statement had a devastating impact on the morale of UPFA supporters who wanted to make Rajapaksa Prime Minister. The rest is history. Besides, former Minister S. B. Dissanayake was sentenced to prison for contempt of the Supreme Court over a derogatory remark he made, at a public rally in 2003, about the judiciary and its rulings.

Meanwhile, there are numerous questionable practices pertaining to Sri Lankan elections. Political leaders in power, such as the President, the Prime Minister and Ministers, conduct election campaigns at a substantial cost to the state coffers, as we have argued over the past so many years. When the Presidents and other government leaders stump for their parties, across the country, the public has to bear the cost of their travel, security, etc. The Presidents and Prime Ministers even travelled in the Air Force helicopters for campaign purposes. The state-owned media outfits are misused as propaganda organs of the party in power although they belong to the people who hold diverse political views. A large number of meetings of state officials are held on some pretext or another, ahead of elections, to give a boost to the ruling party’s campaign. These practices are not only unethical but also tantamount to violations of the election laws, as they place the ruling party at an advantage at the expense of its rivals in elections. All Presidents, namely J. R. Jayewardene, R. Premadasa, D. B. Wijetunga, Chandrika Bandaranaike Kumaratunga, Mahinda Rajapaksa, Maithripala Sirisena, Gotabaya Rajapaksa and Ranil Wickremesinghe unflinchingly used state resources for election campaigns. The public expected a radical departure from the past when they voted the JVP-led NPP into office last year. But what is unfolding on the political front does not offer much hope.

As for presidential statements, it was while speaking at a temple ceremony in the South in 1989 that the then President Premadasa announced his decision to ask India to withdraw the IPKF (Indian Peacekeeping Force) from Sri Lanka. Thus, the Executive Presidents’ statements should not be taken lightly, no matter where they are made.

How can a level playing field be ensured in the upcoming LG polls when the incumbent President himself goes around, issuing a veiled threat that the local councils will face fund cuts or restrictions unless they are controlled by his party––the NPP? It has been revealed in Parliament that at the height of a rice shortage, a few months ago, the NPP government did not supply some popular varieties of rice to the cooperative societies won by its rivals. Such action amounts to collective punishment meted out to the public for defeating the NPP in elections. So, the presidential threat in question, albeit veiled, cannot be dismissed as mere platform rhetoric. The JVP has demonstrated that it is capable of far worse things than fund cuts. The EC therefore must act on the complaints the Opposition has lodged in respect of the presidential statement if it is to arrest the erosion of public trust and confidence in the electoral process. That is also the only way the EC can prevent the public from thinking less of it.

As for President Dissanayake’s statement at issue and the EC’s alleged lukewarm response thereto, Juvenal’s famous question comes to mind: Quis custodiet ipsos custodes? — Who will guard the guards themselves?

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