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Opinion

The ongoing loan saga

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Yes, our politicians’ love for foreign loans is well known and needs no explanation. Yet, isn’t the same love pushing the nation slowly but surely towards a vicious cycle of gigantic foreign debt, too, though it is already massive enough? And is it not a matter of great concern, obviously not for those who are the borrowers, and quite often hidden beneficiaries too of the same, but for the rest of us, the ordinary folk like you and I and our children and theirs, on and on.

And for all I know loans are loans, whether they are soft, hard or even with little interest and long periods of settlement: mindless borrowings (just because there are ever-ready lenders around) at the expense of a country’s economic growth, is a dangerous exercise.

Perhaps there are such loans that can be termed as free with no strings attached to them (though as the cliched adage goes there is no such thing as a ‘free lunch’), except the mandatory condition of supervision as imposed by the donor, when it comes to its usage by the borrower. Needless to say that in our part of the world, in particular, this type of loans is probably the least attractive for the intended borrowers, for they cannot use the money on building towers and going on tours, for example. And they are not given free rein to do whatever they wish and dream, that has nothing to do with the country’s economic well being.

Then there are lenders quite similar to our ubiquitous ‘village poli mudali’ in the way they conduct their lending business. They usually do not interfere with how the money is spent or where it is going, as long as they have something to hold on to as security, which in fact could be worth many times more than the loan. And, we all know the ways of our poli mudalali, don’t we? So how the borrowers are planning to service their debt is something that may not be of much concern to them.

Lastly my ‘two cents’ worth thoughts tell me this whole process of ‘borrowings’ by the governments needs transparency, be made public and audited by whoever is authorised to do so. How, when and where the money is spent should be made known to the public. After all it is our money, which is yours and mine, and those politicians are only acting on our behalf as borrowers, and they are accountable down to the last penny they spend. The taxpayer has a right to know how the money is spent, and he should also be given assurance by the government that it won’t be wasted on colossally unproductive projects such as building ‘new-world wonders or the first-in-Asia’ type of things or other grandiose projects that become ‘white mammoths’ in time to come.

Let’s all sincerely hope that our borrowers borrow with their eyes wide open. Otherwise when they open their half-shut eyes, the money will be there for them to spend or play around, only for sometime though ; but the country will have lost a lot more to the lender, some perhaps even never to be recovered or regained!

 

LAKSIRI WARNAKULA



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Opinion

The lasting curse of Janasathu

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Kataboola tea estate

Let me begin with two anecdotes.

In the 1960s, my father would pull into the local Shell petrol shed and a smiling pump attendant, smartly attired in a uniform (khaki shirt and shorts) would come up to the driver’s side and inquire what was needed. While petrol was being pumped, the attendant would wipe the windscreen and check the engine oil. The toilet was clean. The air pump worked. To my delight, large, colourful road maps were given out, for free. Sounds like a dream, doesn’t it? All this for about Rs. 1 (one) for a gallon of petrol!

The next anecdote. In 1978, I visited Brian Howie, a former classmate, at Kataboola Estate in Nawalapitiya. Brian was an SD – assistant superintendent – and his bungalow was in a remote corner of the estate, so remote that it had its own mini hydroelectric plant. Mrs. B’s government, which had nationalised the estate, had recently fallen and the estate was now under new management.

The bungalow was sparsely furnished, and I noticed that a corner of the living room was blackened. Brian told me that the previous occupant, a former bus conductor turned “SD”, had not known how to use the kitchen stove, so he put some bricks together and had created a lipa in the living room to do his cooking. Meanwhile, every appliance and item of furniture in the bungalow had been stolen by the same man.

Janasathu has a false ring, meaning “owned by the people”. But, as everyone knows, the term instead means a nest of thieves, running up millions in losses at the cost of the people. A place where friends and political supporters are given employment, showered with generous perks, and given a free run to plunder. Government owned corporations, companies, and “other institutions” run into the hundreds, and perhaps a handful make a profit. The rest are leeches, sucking the blood of the nation.

Do we need a corporation/board for salt, ceramics, timber, cashew, lotteries, fisheries, films, ayurvedic drugs, handicrafts? For a publisher of newspapers? They are so swollen with employees that their raison d’être appears to be employment, perks and plunder that I mentioned above.

I recently read that Sri Lankan Airlines, the CTB, the Petroleum Corporation, and the Ceylon Electricity Board are the biggest loss makers. The Godzillas among them appear to be Sri Lankan Airlines, which reportedly lost Rs. 248 billion in the first four months of this year, and the Petroleum Corporation, which lost Rs. 628 billion in the same period. (The Petroleum Corporations is owed billions of rupees by both Sri Lankan Airlines and the Ceylon Electricity Board.) The Ceylon Electricity Board appears to be a mafia, subverting efforts to promote renewable energy, while promoting commission-earning fossil fuels. While the poorest among our population are starving, the crooks that run these organisations continue to deal and steal.

In Hong Kong, where I lived for 20 years, no airline, bank, petroleum company, telephone service, LPG or electricity supplier is owned by the government. The buses belong to the private sector. In Japan, where I live now, in addition to the list from Hong Kong, even the railways and the post offices are privatised and provide a courteous, efficient service. In Japan, the service at petrol stations is reminiscent of Ceylon’s in the 1960s that I described above.

At least in one instance, Mrs. B attempted to correct her folly in nationalising plantations. The de Mel family owned thriving coconut estates in Melsiripura. After nationalisation, the estates declined to such a sorry state that Mrs. B personally invited the de Mels to take them back. Today, the estates are thriving under efficient management.

As a nation, we need to admit that janasathu has failed, and take steps to remedy the situation ASAP.

GEORGE BRAINE

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Opinion

Road to Nandikadal: Twists of Kamal and Ranil actions

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I am re-reading retired Major General Kamal Gunaratne’s book “Road to Nandikadal ” these days. This is his first hand experience of the battle against LTTE, and his journey in the Sri Lankan army from Thirunelveli in 1983 to Nandikadal in 2009, where the final battle took place. Thirteen years have passed since the defeat of the LTTE in 2009 under the political leadership of former president Mahinda Rajapakse and the then secretary of defence Gotabaya Rajapakse. As we all know, Gotabaya became the president of Sri Lanka in 2019, and resigned last July, due to public pressure, and is currently travelling from country to country without a set destination.

In his book, Kamal has written an interesting chapter titled “A final chance for peace” and detailed the peace process followed by the then government led by Ranil Wickremesinghe, as the prime minister. This is Kamal’s narrative about the memorandum of understanding (MOU), brokered by the Norwegian government and signed by the then prime minister Ranil Wickremesinghe and LTTE leader Velupillai Prabhakaran in 2002. “According to the MoU, members of the LTTE political wing were allowed to enter government controlled areas to commence their political activities. The first group of such LTTE political wing members entered the government controlled area from Muhamalai, singing and cheering, as if they had won the war. They insulted and jeered at the soldiers manning the checkpoint with impunity whilst the poor soldiers, under strict instructions not to react, helplessly looked on. The Navy, which arrested a group of terrorists, was immediately instructed to release them. Upon release, the terrorists threatened the sailors and lifted their sarongs, baring their genitalia at the stunned sailors, who could do nothing but simply look down in shame. Such developments intensified the apprehension we held of things yet to come and prepared ourselves to face untold humiliation in the name of the Motherland”.

Kamal further writes, “At the time of drafting the MoU, experienced officers like myself, knew it was premature to enter into peace negotiations. On the one hand, LTTE could not be trusted to keep their word, as past experience had taught us bitterly, and on the other hand, negotiations should be ideally undertaken from a position of strength”. He continues, “The government of Prime Minister Ranil Wickremesinghe was very confident of the peace process and strongly believed there would never be a war again. They did not have any confidence in the Army, which spurred this belief and therefore pursued peace at any cost”.

Kamal’s criticism of the Wickremesinghe administration continues: “The step motherly treatment the Army received during this period was terrible. Strict instructions were given to cut costs and the ever obedient army reduced many of our facilities and benefits. The army even stopped the annual issue of face towels to soldiers, given as a benefit for decades. It felt like they wanted us to live like ‘Veddhas’ without a bit of comfort”

Now the same Ranil Wickremesinghe is the President and Commander-in-chief of the armed forces, and Kamal Gunaratne, who was highly critical of the Wickremesinghe administration, is the trusted Defence Secretary of the president. Is it a twist of fate or twist of faith!

LIONEL RAJAPAKSE

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Opinion

Need for best relations with China

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(This letter was sent in before the announcement of the government decision to allow the Chinese survey vessel to dock at Hambantota – Ed.)

I once met Pieter Keuneman sometime after he had lost the Colombo Central at the general election of 1977. We met at the SSC swimming pool, where he had retreated since his favourite haunt at the Otters was under repair. Without the cares of ministerial office and constituency worries he was in a jovial mood, and in the course of a chat in reference to a derogatory remark by one of our leaders about the prime minister of a neighbouring country, he said, “You know, Ananda, we can talk loosely about people in our country, but in international relations care is needed in commenting on other leaders”.

Pieter, the scion of an illustrious Dutch burgher family, the son of Supreme Court judge A. E Keuneman, after winning several prizes at Royal College, went to Cambridge in 1935. There he became a part of the Communist circle, which included the famous spies Anthony Blunt, later keeper of the Queen’s paintings Kim Philby, and Guy Burgess. Eric Hobsbawm, the renowned historian commenting on this circle, wrote of the very handsome Pieter Keuneman from Ceylon who was greatly envied, since he won the affections of the prettiest girl in the university, the Austrian Hedi Stadlen, whom he later married. Representing the Communist Party in parliament from 1947 to 1977, soft-spoken in the manner of an English academic, Pieter belonged to a galaxy of leaders, whose likes we sorely need now.

I was thinking of Pieter’s comments considering the current imbroglio that we have created with China. Our relations with China in the modern era began in 1953, when in the world recession we were unable to sell rubber, and short of foreign exchange to purchase rice for the nation. The Durdley Senanayake government turned to China, with which we had no diplomatic ties. He sent R G Senanayake, the trade minister, to Peking, where he signed the Rice for Rubber Pact, much to the chagrin of the United States, which withdrew economic aid from Ceylon for trading with a Communist nation at the height of the Cold War.

Diplomatic relations with China were established in 1956 by S W R D Bandaranaike, and relations have prospered under different Sri Lankan leaders and governments, without a hint of discord. In fact, in addition to the vast amount of aid given, China has been a source of strength to Sri Lanka during many crises. In 1974, when the rice ration was on the verge of breaking due to lack of supplies, it was China, to which we turned, and who assisted us when they themselves were short of stocks. In the battle against the LTTE, when armaments from other countries dried up, it was China that supported us with arms, armoured vehicles, trucks, ships and aircraft.

It was China and Pakistan that stood by our armed services in this dire crisis. More recently, amidst the furore, created by Western nations about human rights violations, China was at the forefront of nations that defended us. A few weeks ago, it was reported that the UK was ready with documents to present to the UN Security Council to press for war crimes trials against the Sri Lankan military, but the presence of China and Russia with veto powers prevented it from going ahead with its plan.

It is in this context that we have to view the present troubles that have engulfed us.President Ranil Wickremesinghe, in the short period he has been in office, has won the sympathy of people by the speed with which he has brought some degree of normalcy, to what was a fast-disintegrating political environment. On the economic front, his quiet negotiations and decisions are arousing hopes.

A shadow has been cast over these achievements by the refusal to let in the Chinese ship to Hambantota, a decision made on the spur of the moment after first agreeing to allow it entry. The manner in which it was done is a humiliation for China, one administered by a friend. We must remember that these things matter greatly in Asia.

These are matters that can be rectified among friends, if action is taken immediately, recognising that a mistake has been made. The President should send a high-level representative to assure the Chinese leadership that these are aberrations that a small country suffers due to the threats of big powers, to smoothen ruffled feelings, and normalize relations between two old friends. The American-Indian effort to disrupt a 70-year old friendship, will only lead to its further strengthening in the immediate future

ANANDA MEEGAMA

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