Midweek Review
Significance of CPC-HIPG MoU
Dec 09, 2017: A jubilant PM Wickremesinghe at the formal handing over of HIP to China. The UNP leader holds a cheque written in favour of the Sri Lanka Ports Authority.
By Shamindra Ferdinando
The Ceylon Petroleum Corporation (CPC), on behalf of Sri Lanka, recently entered into an unprecedented Memorandum of Understanding (MoU) with the Hambantota International Port Group (HIPG) to expand its storage and bulk distribution facilities.
Why did CPC need a MoU with HIPG to go ahead with the project?
The signing of the MoU took place on June 8 at the Energy Ministry with Johnson Liu, CEO of HIPG, and Sumith Wijesinghe, Chairman, CPC, representing the two parties. Energy Minister Udaya Gammanpila was present at the signing ceremony. The MoU dealt with the agreement signed between the CPC and the strategic public-private partnership, involving Sri Lanka and China Merchants Port Holdings (CMPort).
The CPC issued just a picture of the event on the day after the signing of the MoU. According to a statement, comprising nine lines, among those present at the signing, in addition to Minister Gammanpila, were Energy Secretary K.D.R. Olga, Additional Secretary, Chaminda Hettiarachchi, and Managing Director of CPC, Buddhika Madihewa.
Tyron Devotta, on behalf of Public Relations firm, Media 360, handling HIPG, issued a comprehensive statement, on June 14, as regards the MoU finalized on June 8. Veteran journalist and columnist, Devotta, quoted, CEO Johnson Liu as having told the June 8 gathering at the Energy Ministry: “The vision of HIPG is to develop the Hambantota International Port (HIP) to become an energy hub for South Asia. Whilst HIPG has put the infrastructure in place to realize that goal, we are also aware that we cannot achieve it without the participation of all the players in the equation. To this end, we recognize the importance of Ceylon Petroleum Corporation as a vital cog in the machinery. The Hambantota Port is encouraged by this move, by the corporation, and as much as it will support the smooth and efficient supply of fuel to the customer, it will also strengthen the position of this Sri Lankan port on the global maritime map.”
The overall project is also subject to the approval of the Sri Lanka Ports Authority (SLPA) in view of its stake in the Hambantota Port project.
The CPC intends to establish a separate state-of-the-art storage terminal and other required facilities on a 50 acre Mahaweli Authority land, for both domestic and export purposes, connected to the HIP, via a pipeline.
Why did the media receive a separate statement that dealt with the issue at hand, lucidly? Devotta explained why Sri Lanka required far larger storage facilities to ensure energy security. Let me quote
Media 360 release verbatim: “The existing storage facility of CPC/CPSTL is sufficient to store refined petroleum product requirements of the entire country for a period of only one month, a capacity below the requirements of ensuring the energy security of the country. CPC currently imports refined petroleum products to cater to, approximately, 70% of the country’s demand, via the Colombo port, and suburbs. The CPC has identified the need to increase its fuel storage capacity to cater to at least three months’ of the country’s demand.”
Energy sector neglected
Successive governments neglected the energy sector, though all recognized the pivotal importance of ensuring energy security. Even after the successful conclusion of the war, in May 2009, the political leadership lacked the vision to take tangible measures to expand storage and bulk distribution facilities, as well as to set up a new refinery.
Over 12 years after the eradication of the Liberation Tigers of Tamil Eelam (LTTE), measures are being taken to develop HIP as a strategic energy centre but, unfortunately, the port is no longer in Sri Lanka’s hands due to the short-sighted policies of the previous yahapalana regime. The statement issued by Media 360 signified the change in the Hambantota scenario brought on during the previous Sirisena-Wickremesinghe administration. The bottom line is that Sri Lanka energy sector projects et al are subject to HIPG approval. That is the reality.
Having invested USD 974 mn in the HIP, as mentioned in the HIPG website, CMPort owns a strong 85 percent of the shares in it, whereas the SLPA’s stake is 15 per cent. CMPort received HIP’s commanding control in 2017 on a 99-year lease granted by the Government of Sri Lanka (GOSL) to develop, manage and operate the port area. The Sirisena-Wickremesinghe government signed the Hambantota port deal in late July 2017.
The then Ports and Shipping Minister Mahinda Samarasinghe, a confidant of President Maithripala Sirisena, signed the agreement, on behalf of Sri Lanka, after Arjuna Ranatunga gave up the portfolios in opposition to the transaction. Ranatunga, who unsuccessfully contested the last general election on the UNP ticket, told the writer recently he couldn’t have accepted the agreement as it was not fair by Sri Lanka. Samarasinghe now represents the SLPP parliamentary group having entered Parliament from the Kalutara District. At that time, Samarasinghe signed the agreement, he was a National List MP courtesy President Sirisena. The President, in his capacity as the SLFP leader, accommodated Samarasinghe on the National List after he failed to retain his seat.
Ranatunga explained how interested parties brazenly manipulated the whole process to the advantage of those seeking control of the HIP. The recently finalized CPC-HIPG MoU underscored that 99-year lease to HIP actually meant the strategic asset cannot be regained in the gainful life time of any Lankan living now. That is the undeniable unpalatable truth. A government that had secured a five-year mandate at the 2015 general election ended up losing an incomparable strategic asset.
Lawmaker Vasudeva Nanayakkara, during the Sirisena-Wickremesinghe administration, made an abortive bid to halt the handing over of the Hambantota port by way of court action. The Supreme Court, however, dismissed Nanayakkara’s action. Today, Nanayakkara and the SLFP that facilitated the Hambantota transaction are represented in President Gotabaya Rajapaksa’s cabinet.
In the wake of the 2015 change of government, the UNP-led administration adopted an extremely hostile stand Vis-a-Vis China. Having accepted US leadership as well as US-India-Japan-Australia security-political and economic partnership, the Sirisena-Wickremesinghe government engaged in a dangerous game much to the discomfort of the public. But, China managed to outmaneuver forces ranged against it and manipulated rapid developments in post-election period. The finalization of agreement in late July 2017 on HIP is nothing but a strategic achievement for Chinese diplomacy. The then Joint Opposition (JO) now recognized as the Sri Lanka Podujana Peramuna (SLPP) had no option but to keep quiet for obvious reasons. It would be pertinent to mention that following the 2015 defeat, Mahinda Rajapaksa, accompanied by former External Affairs Minister Prof. G.L. Peiris, visited Beijing amidst severe criticism of China-Sri Lanka relationship under the previous Rajapaksa government.
CPC-HIPG MoU
The signing of the MoU between the CPC and HIPG didn’t attract the media attention it deserved. The MoU came into being between Minister Gammanpila’s declaration on June 6 on the proposed new refinery at Sapugaskanda to be built at a cost of USD 3 bn (Rs 6,000 bn) on BOT (Build, Operate and Transfer) basis and his announcement of upward revision of fuel prices on Jun 11. The fuel price hike triggered a political turmoil, with SLPP General Secretary Sagara Kariyawasam, MP, of course, with SLPP founder Basil Rajapaksa’s blessings, demanded Minister Gammanpila’s resignation.
Former Attorney General’s Department employee, Attorney-at-Law Kariyawasam received the backing of the vast majority of the SLPP parliamentary group as he took on a small group of government lawmakers, who declared their support for Gammanpila. The battle caused a dicey situation with some speculating a division among the Rajapaksas as regards not only political strategy but future direction of the party as well. The country is in such economic dire straits with the lockdown alone costing billions to the exchequer daily, the ruling coalition cannot, under any circumstances, pave the way for internal squabbles to cause further deterioration. SLPP General Secretary Kariyawasam found fault with the Energy Minister for the substantial price hike. But, can the Pivithuru Hela Urumaya (PHU) leader be held responsible for waste, corruption, irregularities and negligence over a period of time that resulted in the CPC being in debt to the tune of Rs 652 bn to the Bank of Ceylon and the People’s Bank. Both Minister Gammanpila and the Presidential Media Division (PMD) warned that CPC’s loans amounting to Rs 652 bn and the Ceylon Electricity Board’s Rs 85 bn debt could undermine the banking sector and reminded the crisis the country was in.
Unchecked corruption has weakened the national economy to such a degree over the years, the incumbent government is now facing a massive cash flow crisis as it has literally nothing to fall back on.
Unfortunately, corruption continues, unabatedly. Examination of proceedings of the parliamentary watchdog committee reveal corruption is on the march with the support of those constitutionally empowered to address the issue. Debilitated by corruption, successive governments have pursued a despicable strategy in selling national assets. Trade Minister Bandula Gunawardena shamelessly justified the strategy in Parliament on June 8. What Minister Gunawardena basically said was to sell off whatever assets to bridge the budget deficit. Gunawardena owed the electorate an explanation as to how the country would cope once all assets are disposed of, regardless of the consequences.
The previous yahapalana administration reached consensus with Indian investments on four major projects, namely Mattala airport, East Container Terminal (ECT) of the Colombo port, remaining oil tanks at the Trincomalee oil tank farm, and an LNG power plant in Sampur. The collapse of the UNP-SLFP partnership disrupted Indo-Lanka projects. But, the SLPP, having had discussions with India early this year, decided to go ahead with the ECT project, though strong opposition within compelled the government to drop the idea. The SLPP has accused the Weerawansa-Gammanpila-Vasudeva led alliance of sabotaging the ECT project.
Cocktail of political and financial turmoil
Growing Chinese influence by way of investments et al here should be examined in the context of India-US relationship and the ‘Quad Alliance’, comprising US-India-Japan-Australia ganging up to confront real or imagined threats from fast growing China.
The question is whether India is looking for an unnecessary internecine conflict with China thereby unwittingly doing the bidding of the West. All indications are this is Asia’s century with China being the new world number one and India a close second. As we have said before, if these two clash, the traditional West would only be watching with glee the killing of two birds with one stone.
It would be suicidal for Sri Lanka to get entangled or even to wish for any kind of conflict between India and China, both being nuclear armed powers.
Delhi should also keep in mind that it was not China that lit separatist fires right across India into the late 80s and many of those Indian separatist groups had their rear bases in the traditional West.
These big talkers who now lectures at every opportunity about rules based order, followed no rules when they plundered much of the world often committing genocide to grab other people’s lands and unashamedly enslaved millions of black people in particular.
So why is India, having been a victim of such grave humiliation and plunder, now wants to kiss and forgive the same oppressors?
Imagine if there was no China, the West would have ganged up to prevent India from becoming a superpower
It is granted we shouldn’t ignore India’s current and future security concerns. But as long as the Chinese are for mutual economic benefit why can’t India even enter into lucrative trilateral partnerships here.
However given the built up paranoia in New Delhi, India is unlikely to give up its hold on key sectors. The Indian High Commission reacted decisively and swiftly when Energy Minister Gammanpila declared in Colombo on Feb 17, 2021 that the Trincomalee oil tank farm would come under Sri Lanka’s purview. The declaration was made in the presence of Prime Minister Mahinda Rajapaksa at an event to pay compensation for people affected by development projects undertaken by his Ministry. Minister Gammanpila said that he had been able to conclude talks the previous Sunday with the Indian High Commissioner Gopal Bagley (Gammanpila didn’t mention the HC’s name) regarding the taking over of the Trincomalee oil tank farm. He claimed that the High Commissioner accepted his government proposals in that regard though they weren’t compatible with India’s agreement with the Sirisena-Wickremesinghe administration.
Gammanpila expressed confidence in working with the Lanka IOC to develop Trincomalee facilities.
Responding to a media query on joint development of the Upper Oil Tank Farms in Trincomalee (Gammanpila didn’t make any reference to Upper Oil Tank Farms in Trincomalee), the Spokesperson of the Indian High Commission said: “India and Sri Lanka have identified energy partnership as one of the priority dimensions of their cooperation. India is committed to working together with Sri Lanka for the Island’s energy security. In this context, consultation and discussions have been undertaken to promote mutually beneficial cooperation for development and operation of the Upper Oil Tank Farms in Trincomalee. We look forward to continuing our productive engagement with Sri Lanka in this regard”.
Indian HC Bagley visited Lanka IOC’s Trincomalee oil terminal on March 14, 2021. Bagley, in his first visit there, also inspected a grease plant under construction. Once it started production, it would be able to meet Sri Lanka’s entire demand for grease. Perhaps what is significant is Bagley’s inspection of both Upper and Lower Tank farms in Trincomalee. A statement issued by Lanka IOC said that during the visit to the Upper Tank Farm, the High Commissioner was briefed in detail about the current status and the possibilities regarding its usage and development. The visit was made during HC Bagley’s tour of the Northern and Eastern Provinces
In the wake of the 2019 change of government, the incumbent government sounded the possibility of reviewing the agreement on the HIP. China swiftly ruled out that possibility. Sri Lanka (both the government and the Opposition responsible for the present financial crisis, seems to be wholly inadequate to meet the challenges. Decline in the financial and political situation has been further escalated by the raging global pandemic
Covid-19 has paved the way for predatory moves by interested parties.
The US declaration that Sri Lanka wouldn’t be considered for MCC (Millennium Challenge Corporation) Compact and apparent collapse of SOFA (Status of Forces Agreement), also with the US, do not mean end of those endeavours. Sri Lanka entered into ACSA (Access and Cross Servicing Agreement) in August 2017 with the US though MCC and SOFA failed, perhaps a temporary setback for Washington.
Midweek Review
AKD in dilemma over anti-terror laws he used to condemn
President Dissanayake’s government promptly utilized the PTA – the first since the presidential election – to deal with those who had been suspected of allegedly planning to mount an attack on Israelis in the Arugam Bay area. The government couldn’t have ignored the alleged threat, especially against the backdrop of the warning issued by the US Embassy here, of what it called a serious risk. In line with the statement, dated Oct. 23, the Embassy imposed travel restrictions on mission personnel as well, while strongly urging US passport holders to avoid the area.
By Shamindra Ferdinando
The Prevention of Terrorism Act (PTA/No 48 of 1979)) that had been introduced in 1979 as a temporary measure by President JRJ in response to emerging threats from separatist terrorists and made into a permanent law in 1982 (No 10 of 1982) attracted considerable public attention over the past few weeks in the wake of the police making arrests under this draconian law.
The issue at hand should be freshly examined against the backdrop of the Janatha Vimukthi Peremauna (JVP), the dominant partner in the newly elected National People’s Power (NPP), having been at the receiving end of that piece of controversial legislation in the ’80s, particularly during their second violent uprising (1987-1990 period).
The JVP constantly demanded the repealing of the PTA at a time the party never dreamt of an opportunity to win a national election under any circumstances. In fact, the abolition of the PTA had been one of the JVP’s main demands throughout the war/insurgency and thereafter. However, now that the JVP-led NPP having had convincingly won the presidential (Sept. 21) and general (Nov. 14) elections and is in the process of consolidating its power, the powers that be have no option but to revisit its previous highly critical stand on the controversial Act.
Can President Anura Kumara Dissanayake, who is also the Commander-in-Chief of the armed forces, in addition to being the Defence Minister, as well as head of the National Security Council (NSC), do without the PTA.
Can the PTA be abolished and whatever existing/future security threats be dealt with other relevant laws, or replaced with a new law acceptable to all political parties represented in Parliament. But, that does not mean that concerns of those outside Parliament should be discarded without proper examination.
President Dissanayake’s government promptly utilized the PTA – the first since the presidential election – to deal with those who had been suspected of allegedly planning to mount an attack on Israelis in the Arugam Bay area. The government couldn’t have ignored the alleged threat, especially against the backdrop of the warning issued by the US Embassy here, of what it called a serious risk. In line with the statement, dated Oct. 23, the Embassy imposed travel restrictions on mission personnel as well, while strongly urging US passport holders to avoid the area.
The government had no option but to invoke the PTA again to deal with those who sought to humiliate the administration over the Mahaveer Naal events conducted in the Northern and Eastern provinces in memory of LTTE leader Velupillai Prabhakaran’s birthday.
Responding to the Mahaveer Naal events, Public Security and Parliamentary Affairs Minister Ananda Wijepala, first time entrant to Parliamen, accused Opposition activists of exploiting the situation to undermine the government. Wijepala, who had served as Anura Kumara Dissanayake’s private secretary when he served as a lawmaker, alleged that the involvement of the New Democratic Front (NDF) in the conspiracy, while shortly, thereafter, law enforcement authorities arrested the administrative secretary of the SLPP, Renuka Perera, for allegedly disseminating false information with regard to Mahaveer Naal.
It would be pertinent to mention that not all those who were apprehended for disseminating such false information been taken in under the PTA.
The issue is whether the government needs a draconian law, like the PTA, to deal with persons circulating videos of LTTE events during the conflict and after.
Apprehending people for circulating videos of such events seemed ridiculous when the Illankai Thamil Arasu Kadchi (ITAK), having recognized the LTTE as the sole representative of the Tamil-speaking people, received an audience with no less a person than President Dissanayake. The meeting between President Dissanayake and the ITAK delegation took place at the Presidential Secretariat amidst the continuing furore over people being arrested for circulating Mahaveer Naal content. Some of the ITAK members recently had paid tribute to the LTTE publicly while the government struggled to deal with bad press over Mahaveer Naal events.
The writer is of the view that commemoration of LTTE cadres should be permitted, regardless of their status. In fact, such events underscored the futility of the LTTE macabre cause. Mahaveer Naal automatically reminds the country of the atrocities that had been perpetrated by the LTTE over the years until their very end on the Vanni east front.
Let me remind those shedding crocodile tears for terrorists of the cold blooded killing of academic Rajani Thiranagama in Jaffna in late Sept 1989 during the deployment of the IPKF. Dr. Thiranagama was shot dead on Sept. 21 while cycling home from the Jaffna University, where she was Head of the Anatomy Department.
Yahapalana
bid to repeal PTA
While in the Opposition, Ranil Wickremesinghe relentlessly campaigned against the PTA. Wickremesinghe had an opportunity to explore the possibility of doing away with the PTA after he facilitated Maithripala Sirisena’s victory at the 2015 presidential election. Wickremesinghe’s broken promise due to delaying of the required action, should be discussed, taking into consideration Western governments’ unbending interest in abolition of the PTA. They felt that in the aftermath of the LTTE’s eradication, Sri Lanka didn’t require such a law.
Since the successful conclusion of the war in May 2009, the Western governments had been putting pressure on war-winning President Mahinda Rajapaksa to abolish the PTA. The JVP, too, backed the Western call to do away with emergency regulations and the PTA. However, President Rajapaksa resisted relentless Western pressures but the Yahapalana government initiated a high profile project to do away with the PTA over a year after the 2015 January presidential election.
Instead of doing away with the PTA as demanded by various interested parties, Wickremesinghe sought to replace the existing law with what he called the Counter Terrorism Act (CTA).
The committee that had been tasked with drafting the policy and legal framework of the proposed law was headed by Sagala Ratnayake, Minister of Law and Order and Southern Development. Obviously Wickremesinghe couldn’t have done away with the PTA without taking adequate provisions to counter terrorism. Wickremesinghe subjected the whole process to the scrutiny of Western governments. Among those invited for discussions on the CTA and an Amendment to the Code of Criminal Procedure Act on Dec. 16, 2016, were Justice Minister Wijeyadasa Rajapakse, Minister Sagala Ratnayake, British High Commissioner James Dauris, French Ambassador Jean-Marin Schus, EU Ambassador Tung-Lai Margue and several other foreign envoys.
However, the Yahapalana government couldn’t go ahead with the project. Wickremesinghe couldn’t muster the required support for his move as the Yahapalana parliamentary group gradually fell apart. By late 2017, the relationship in the coalition between the UNP and Maithripala Sirisena’s SLFP had deteriorated to such an extent, agreement on such a significant piece of proposed legislation seemed very much unlikely. Their decision to go it alone at Local Government elections in early February 2018 sealed the fate of the Yahapalana alliance, and the much touted bid to introduce CTA in place of the PTA, fizzled out.
The Sirisena-Wickremesinghe alliance had been in turmoil since Wickremesinghe’s nominee for the post of Governor Central Bank, Singaporean Arjuna Mahendran, perpetrated the massive Treasury bond scams in Feb. 2015 and March 2016. The humiliating defeat suffered by both the UNP and the SLFP at the Local Government polls effectively ended their partnership while the CTA was put on the back burner. The government had been in such a desperate situation, the top leadership simply could not deal with the CTA and the matter was quickly forgotten.
Having neglected national security to their heart’s content, the UNP leadership relaunched the CTA project in the wake of the 2019 Easter Sunday carnage. The UNP saw an opportunity to pressure political parties represented in Parliament, as well as other interested parties, over the proposed CTA. However, Wickremesinghe’s move hadn’t received much anticipated support as those who opposed the PTA alleged that the new law never really changed the powers granted to law enforcement authorities.
In spite of the Easter Sunday attacks, the opposition to the PTA, and the proposed CTA, remained unyielding. Political parties, civil society and Western governments haven’t been able to reach consensus on anti-terrorism law legislation though all post-war administrations discussed the issues at hand at length.
President Gotabaya Rajapaksa, too, made an effort to amend the PTA. In late January 2022, President Rajapaksa’s Cabinet approved a spate of amendments to the PTA. But, the proposed amendments failed to secure the backing of those concerned about anti-terrorism law. The introduction of amendments meant that President Rajapaksa had absolutely no interest in at least examining Wickremesinghe’s brainchild CTA.
The civil society, legal scholars and other interested parties simply rejected the amendments on the basis the government failed to address their long standing concerns. The Rajapaksa administration in Dec. 2019 withdrew Wickremesinghe’s proposed Counter terrorism Bill to pave the way for a new initiative that was launched in June 2021. Obviously, it hadn’t been a priority for the Rajapaksa administration though under Foreign Minister Prof. G. L. Peiris’s leadership a Cabinet subcommittee deliberated a report prepared by Defence Secretary Gen. Kamal Gunaratne. That bid, too, failed and during Wickremesinghe’s presidency (July 2022-Sept 2024) nothing really happened with regard to the PTA.
New challenges
The European Union has linked the repeal of the PTA with its continuing relationship with Sri Lanka. The EU, in Oct. 2021 during Gotabaya Rajapaksa’s presidencyk told Sri Lanka that the country must amend the PTA that gave law enforcement authorities sweeping powers to arrest and hold suspects, without trial, if it wanted to retain the lucrative GSP-plus trade status with the 27-member economic bloc.
President Dissanayake now faced the daunting task of addressing the concerns of the EU and various other members of the Western world with regard to anti-terrorism laws here.
Dissanayake’s administration cannot ignore the renewed calls for the abolition of the PTA or the introduction of suitable amendments. However, the government cannot weaken Sri Lanka’s defences against terrorism though the LTTE rump is unlikely to pose a conventional military threat. But, the 2019 Easter Sunday carnage proved responsibility on the part of the government to ensure the armed forces, the police and intelligence services had legal safeguards when dealing with terrorism.
*One of the major shortcomings in the amendments proposed by President Gotabaya Rajapaksa, according to civil society groups, is the failure on the part of the amended Bill to address problems with the admissibility of statements and confessions under the PTA. They have repeatedly pointed out provisions of the PTA waived the application of the Evidence Ordinance and there were no safeguards to be followed in recording confessions and statements from suspects.
*Another issue of concern is that the period of 72 hours after arrest and before production before a magistrate had not been amended. They have declared this is a loophole in the PTA that facilitated the torture of those arrested under the PTA while in custody.
*They are also concerned about the absence of sufficient judicial oversight during investigations conducted in terms of the PTA.
*As the definition of the acts which came within the offence of terrorism is of a broad and vague nature, those in authority tend to abuse the PTA. The amendments that had been approved by Gotabaya Rajapaksa’s Cabinet in January 2022 hadn’t addressed concerns expressed by interested parties.
The above were some of the concerns raised by those demanding abolition of the PTA/suitable amendments to the law. Anti-terrorism laws in force in all countries regardless of their status always attract public criticism and can be described as a source of intense debate. Critics say that anti-terrorim laws violate even the basic freedoms enjoyed by the people.
Neighbouring India employs a spate of laws meant to deal with terrorism. Amendments have been introduced over the years and like here these laws have been abused though stakeholders accept the need for tough anti-terrorism laws to meet security challenges. India has gone to the extent of neutralizing those living overseas in case New Delhi felt they posed a threat. The ongoing controversy involving India and Canada over the alleged hit ordered by New Delhi in Vancouver is a case in point.
Sri Lanka, under any circumstances, cannot afford to do away with the PTA altogether. However, the government, in consultation with political parties represented in Parliament, should take tangible measures to ensure law enforcement didn’t deliberately abuse PTA for political or private purposes. There is no point in denying the fact that the PTA had been grossly abused over the years by all governments. Perpetrators hadn’t been properly dealt with thereby creating an environment for such abuses. However, the PTA had provided invaluable support for law enforcement operations as successive governments battled Northern and Southern terrorists.
During the war against the LTTE, the PTA had been a critical part of the government arsenal. Interrogation of suspects had been part of the overall security strategy meant to thwart attacks as law enforcement authorities battled LTTE terrorists assigned for covert operations in the South and especially suicide bombings.
Terrorist infiltration couldn’t have been averted without continuous operations, based on available information. The government had no option but to discourage people from the Northern and Eastern provinces from taking up residence in Colombo and its suburbs, as well as other predominantly Sinhala areas, as part of the overall measures to neutralize the threats on soft targets.
The LTTE targeted public transport in a bid to mount pressure on the government as it was retreating on the battlefield.
In spite of allegations of its misuse and abuse, the PTA had been quite useful in combating Southern and Northern terrorism. That is the undeniable truth. Whatever its shortcomings, the PTA cannot be done away with unless the government introduces a new anti-terrorism law that meets security requirements, in a challenging environment.
Though the West impose pressure on countries like Sri Lanka to undo such laws, they themselves have introduced even much harsher laws like the Homeland Security Act 2002 passed by the USA, primarily in reaction to the 9/11 attacks there, in the previous year, by Muslim terrorists, that claimed few thousand lives and somewhat similar draconian laws were introduced in England after the bomb attacks in London soon afterwards. But there is hardly a whimper from our Foreign Ministry that generally plays deaf and dumb like our diplomats about such unfair demands from us by the West.
Midweek Review
Hour of the Ethical Minority
By Lynn Ockersz
The theorists waxing eloquent,
In the raucous House by the Lake,
Are seeing their brute majority,
As bodying forth the majority will,
Or the ‘sovereignty of the people’,
And there is some merit in this,
But this is also the hour,
Of the unbending ethical minority,
Who wouldn’t be steamrolled,
Into bartering their consciences,
On being Whipped into saying ‘Yes’.
Midweek Review
US funding for Colombo port project involving Adani group and JKH in the balance
In response to US indictment, Adani has declared that his conglomerate is committed to “world-class regulatory compliance.” The international media quoted one of the world’s richest as having said: “This is not the first time we have faced such challenges. What I can tell you is that every attack makes us stronger. And every obstacle becomes a stepping stone for a more resilient Adani Group.”
Adani said so at an awards ceremony in Jaipur.
By Shamindra Ferdinando
Dr. Ganeshan Wignarajah, in his capacity as an advisor to the Sri Lankan President, and member of the Geopolitical Cartographer board, as mentioned in the latest Indo-Pacific Defence Forum, dealt with the ongoing economic-political-social crisis here.
Dr. Wignarajah, who had served as the Executive Director of the Lakshman Kadirgamar Institute (LKI) during the Yahapalana administration, quite confidently asserted (i) economic mismanagement (ii) Chinese loans and (iii) Covid-19 and other external shocks caused the unprecedented crisis.
The quarterly, published by the Commander of the U.S. Indo-Pacific Command, is meant to promote their overall political-military and social strategy in the Indo-Pacific region.
The Sri Lankan-born academic, in his article titled ‘Partners for Progress: Sri Lanka works with India, U.S. to bolster economy, stability,’ examined the developing situation here against the backdrop of, what he called, Chinese debt trap diplomacy. China has strongly refuted such accusations over the years. We haven’t forgotten the verbal battle between Yahapalana Finance Minister Ravi Karunanayake and the then Chinese Ambassador Yi Xianliang over the former’s disparaging remarks on interest rates on loans provided by China. This was in late 2016, several months after the second mega Treasury bonds scam, perpetrated by the Premier Ranil Wickremesinghe-led government.
Dr. Wignarajah conveniently refrained from making reference to over USD 10,000 million in new International Sovereign Bonds that had been taken between 2015 and 2019, following the change of government. Former President Mahinda Rajapaksa is on record as having declared procurement of USD 10,000 million, by the Yahapalana leaders, broke the back of the Sri Lankan economy. Instead, the academic cleverly hid the Yahapalana borrowings. Dr. Wignarajah declared (in verbatim): “Sri Lanka’s default demonstrates the risk of imprudent foreign borrowing, with relying on sovereign bonds with high interest rates to finance development projects or high-interest, low return Chinese loans.’’
As the article had been formulated before the presidential election that was held on Sept. 21, 2024, the professorial fellow in economics and trade at Gateway House, Mumbai, missed an opportunity to examine post-national poll developments.
The unexpected emergence of the National People’s Power (NPP), as the dominant political power, at the expense of the Sri Lanka Podujana Peramuna (SLPP) and the United National Party (UNP), according to some, may change the dynamics of Sri Lanka’s relations with the US-led grouping that includes India. However, others assert that bankrupt Sri Lanka has no other option but to continue with the IMF agenda and an agreement on economic partnership, signed in July 2023, by Premier Narendra Modi and the then President Ranil Wickremesinghe.
Wickremesinghe, who suffered a humiliating defeat in the presidential poll on September 21, and then at the parliamentary elections on Nov. 14, 2024, emphasized the responsibility on the part of his successor Anura Kumara Dissanayake to fully implement, what he called, the ‘Vision document’ with India.
The Press Trust of India (PTI) quoted Wickremesinghe as having said so on the sidelines of an event he attended at the Sri Sathya Sai Vidya Vihar school recently.
The SLPP-led Parliament that elected Wickremesinghe as the President in July 2022 to complete the remainder of President Gotabaya Rajapaksa’s five-year term, owed the country an explanation whether the former received the approval of the Cabinet to finalize the so-called ‘vision document.’ The latest Indo-Lanka agreement dealt with strengthening maritime, air and energy ties, as well as land connectivity between the two countries. There hadn’t been a proper discourse, at any level, regarding the ‘Vision document,’ though various interested parties promoted the controversial ‘Vision document’ in the run-up to the presidential election.
On behalf of India, Pathfinder Foundation requested the leading candidates at the presidential election, namely Ranil Wickremesinghe, Sajith Premadasa and Anura Kumara Dissanayake, to go ahead with the ‘vision document.’
It would be pertinent to mention that Dr. Wignarajah has ceased to be an advisor to the Sri Lankan President in the wake of Wickremesinghe’s defeat. The advisor had been also involved with Pathfinder Foundation as a senior visiting fellow at the Foundation.
He has had the audacity to even deal in cavalier fashion with India’s intervention in 2022 to save Sri Lanka with reference to the Adani Group’s investments here as well as longstanding US projects, such as the Millennium Challenge Corporation that was rejected by President Gotabaya Rajapaksa’s government.
Essentially, the expert addressed the issues at hand from the point of view of the US-India response to the Sri Lanka crisis.
New developments
The killing of Canada-based Sikh separatist leader Hardeep Singh Nijjar outside his Vancouver temple in June 2023 has caused an unprecedented diplomatic row between New Delhi and Ottawa. The killing that Canada had blamed on India without whatsoever hesitation led to tit-for-tat expulsion of diplomatic staff. Among those who had been expelled were the top most Indian and Canadian intelligence officials based in the respective capitals.
But what really upset New Delhi was the US and the UK throwing their collective weight behind Canadian accusations, thereby undermining the Modi government’s international standing. Perhaps, the harm that had been caused to the relations between Canada and India can never be restored.
International news agencies in Oct, 2024 quoted the spokesperson of the UK’s Foreign Commonwealth and Development Office (FCDO) as having said: “We are in contact with our Canadian partners about the serious developments outlined in the independent investigations in Canada. The UK has full confidence in Canada’s judicial system. Respect for sovereignty and the rule of law is essential.”
“The Government of India’s cooperation with Canada’s legal process is the right next step,” the official added.
On top of the simmering diplomatic row with Ottawa, the US has filed charges against an Indian government employee over his alleged involvement in a failed plot to kill an American citizen of Indian origin. The Federal Bureau of Investigation has identified a New York-based targeted person as a prominent advocate for Sikh separatism.
The US Attorney’s Office for New York declared in Oct, 2024 that it filed “murder-for-hire and money laundering charges” against Vikash Yadav.
Another suspect in the case, Nikhil Gupta, was extradited to the US earlier, in 2024, to face charges, while Yadav remains at large. There hadn’t been such high profile previous cases involving Indian government agents conducting clandestine operations in the West.
Canadian and US investigations have placed India in an utterly embarrassing position. In spite of strong Indian denials, both Canada and the US have maintained that India is under investigation.
The possibility of Canada and the US trying to establish a connection between those who had been involved in operations in their respective territories cannot be ruled out.
The state of crisis of Indian foreign relations with the West has to be discussed, taking into consideration the shocking Canadian declaration that no less than Home Minister Amit Shah, widely believed to be the second most powerful person in the country, sanctioned the Vancouver hit.
Regardless of Indian denial, Canada has refused to change its stand with regards to Shah’s direct involvement in targeting those India considered as a threat. There seems to be no way forward for India on the matter, especially in the West as both Canada and the US pursued investigations.
How could the Canadian and US common stand in respect of clandestine operations undertaken by India undermine India’s once robust relations with the West? Can the West jeopardize their relations with India, at a time they are in conflict with China and Russia?
The Modi’s government obviously has ended up with egg on its face and is struggling to cope up with extremely harmful media coverage. Shah is the chief aide to Premier Modi.
Against the backdrop of Canadian accusations directed at Shah, the US is also likely to probe the possibility of the powerful Home Minister having a hand in the New York operation. Whatever the outcome of Canadian and US investigations, New Delhi will have to address the collective responsibility on the part of the Indian Cabinet in authorizing clandestine operations overseas.
The Adani factor
When Wickremesinghe recently demanded that his successor President Dissanayake goes ahead with the ‘Vision document’ with India, he was probably turning a blind eye to the US indictment of Gautam Adani over high profile accusations regarding the USD 265 mn alleged bribery scam to benefit Indian government officials.
Perhaps, the US move against Adani, one of the closest associates of Modi, may destabilize Indo-US relations. Adani and seven others had been charged over, what the US called, the corrupt solar project. They have been accused of securities fraud, conspiracy to commit securities fraud, and wire fraud.
Dr. Wignarajah, in his piece to the US military magazine, praised the Adani projects here to the high heavens. Obviously, as the US indictment hadn’t been announced at the time the academic submitted his piece to the Indo-Pacific command, he couldn’t be faulted for the omission. However, the new Sri Lanka government shouldn’t try to side-step the issue by engaging in delaying tactics.
Unexpected bribery accusations that had been directed at the Indian conglomerate placed a major US funded project here under an extremely difficult situation, particularly because the US was to provide funding to the tune of over half a billion USD. The West Container Terminal at the Colombo port involved Sri Lankan blue chip John Keells and the Adani Group. Other participants are Special Economic Zone Limited and Sri Lanka Ports Authority in the USD 700 mn project.
The NPP government never expected the US to move legal action against the Adani group and may find it difficult to explain Sri Lanka’s continuing partnership with the Indian conglomerate. Unless of course, proper reassessment was made in respect of the Port project as well as other investments, particularly investment of U.S. 1.4 bn for wind power plants.
The US recently disclosed that though they promised over half a billion USD for the Colombo port project, the funding hadn’t been made available so far. Would denial of US funding undermine the implementation of the Port project. Construction began in Nov. 2022, five months after Parliament elected Wickremesinghe as the President.
The US stepped in during Ranil Wickremesinghe tenure as the President after previous plans for the East Container Terminal, involving Japan and India, had to be shelved due to protests. Sri Lanka had no other option but to offer the Colombo West Terminal project to appease New Delhi, furious about unilateral cancellation. The country paid a huge price for such cancellations, having announced mega projects without proper evaluation and consensus with stakeholders. There can be no better example than the idiotic cancellation of the Japanese-funded Colombo light rail project soon after the 2020 general election.
Japan reacted angrily to the unilateral announcement of the cancellation of USD 1.4 bn project funded by Japan through a soft loan.
What would be the fate of the West Container Terminal project in case Adani and JKH had to fund it in the absence of US financial backing? How could the US and India intend to maintain close links as desired by both powers against China in the backdrop of continuing bad press over attacks on Sikhs living overseas and the Adani fiasco.
The Congress-led Indian Opposition disrupted both Lower and Upper Houses of Parliament demanding a joint committee to investigate Adani’s companies in the agriculture, renewable energy, coal and infrastructure sectors. Unless India addresses accusations against Adani in a transparent manner, they can have long term repercussions, both domestically and internationally.
In the wake of the US indictment, Kenya cancelled multimillion-dollar deals with the Adani Group for airport modernization and energy projects. The mega company will also face scrutiny in Sri Lanka and Bangladesh.
The damage to US-India ties would be much more with legal action against Adani compelling India to play it safe. While the government remained silent on the issue at hand, Amit Malviya, the governing Bharatiya Janata Party’s IT head, declared in a post on the social media platform X that the US charges were “allegations and the defendants are presumed innocent unless and until proven guilty.” Critics asserted that this was nothing but a show of support by the Modi government for the Adani Group.
It would be interesting to see how the much weakened Opposition in Sri Lanka Parliament takes up the Adani issue. Parliament meets this week, though the issue is not on the agenda, an Opposition member may take the opportunity to comment on the politically sensitive matter.
Adani is the major Indian investor here. According to available data, Adani’s projects account for nearly 70% of overall Indian investments during the 2005-2019 period.
A story from the past
Undue Indian government intervention on behalf of Adani group was disclosed amidst unprecedented political turmoil here with President Gotabaya Rajapaksa under tremendous pressure in June 2022 with the country unable to finance basic needs with covert groups even having blocked worker remittances through official channels.
The revelation was made by then head of the Ceylon Electricity Board (CEB) M.C.C. Ferdinando during an open hearing of the Committee of Public Enterprises (COPE) that President Gotabaya Rajapaksa told him that Indian Prime Minister Narendra Modi had insisted that a 500-megawatt wind power project be directly given to the Adani group.
Embattled President Rajapaksa denied the disclosure. Within two days after the shocking declaration in Parliament, Ferdinando claimed that he lied after being overwhelmed by emotion. Of course no one took Ferdinando’s denial seriously for obvious reasons.
“On November 24, 2021, the President summoned me after a meeting and said, India’s Prime Minister Modi is pressuring him to hand over the project to the Adani group,” Ferdinando said, according to a video clip of his testimony made available by Parliament. According to the CEB head, he had received instructions from President Rajapaksa in this regard in Nov. 2021, just weeks after Adani visited Colombo.
Ferdinando was responding to questions posed by the then head of COPE Prof. Charitha Herath and another member about the circumstances the Adani group had chosen to construct a 500 MW wind power plant on the northern coast.
Ferdinando told the committee that he informed the President that the matter didn’t concern the CEB, but the Board of Investments. “The President insisted that I look into it. I then sent a letter mentioning that the President has instructed me and the Finance Secretary should do the needful. I pointed out that this is a government-to-government deal,” Ferdinando said.
During the heated hearings, Prof. Herath asked whether the wind power deal would be considered “unsolicited”. “Yes, this is a government-to-government deal, but the negotiations should take place according to the least cost policy mentioned in the act,” said Ferdinando.
On the following day, President Rajapaksa contradicted the CEB Chief. “Re a statement made by the #lka CEB Chairman at a COPE committee hearing regarding the award of a Wind Power Project in Mannar, I categorically deny authorization to award this project to any specific person or entity,” he tweeted.
“I have withdrawn that statement,” Ferdinando said. The media quoted the CEB Chief as having said that he only realized that he mistakenly made such a comment, when the Minister inquired from him about the matter on Saturday (June 11) morning.
Thereafter, Ferdinando issued a statement to Prof. Hearth on Saturday in which he tendered an apology, saying that due to “unexpected pressures and emotions”, he was compelled to name the Indian Prime Minister.
The public hearing took place on a Friday, a day after Parliament passed an amendment to the 1989 Electricity Act that removed competitive bidding. The main opposition, Samagi Jana Balawegaya (SJB), alleged that the primary reason for bringing forward the amendment was to accommodate the “unsolicited” Adani deal. The SJB demanded that projects beyond 10 MW capacity should go through a competitive bidding process.
The amendments to the Sri Lanka Electricity Act were passed with 120 votes in favour of the amendments with 36 voting against in the 225-member Parliament amid strong resistance from power sector trade unions in the state-run Ceylon Electricity Board (CEB). Thirteen MPs abstained in the voting.
The story should be examined taking into consideration Adani’s pow vows with President Gotabaya Rajapaksa and Premier Mahinda Rajapaksa in late Oct. 2021 in Colombo.
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