Opinion
Unwise double standards on East Container Terminal

Protest against ECT being awarded to Adani group of India
By Harim Peiris
Earlier this week, the Government officially announced that it would not proceed with the proposal to develop the East Container Terminal (ECT) of the Colombo Port, as a joint venture between the Sri Lanka Ports Authority (SLPA) and the Adani Group of India. The announcement by the government, through the Prime Minister no less, raises important questions marks and doubts over the vistas of prosperity and the claims of technocratic policy making and efficient governance, we were all promised by the Government at preceding elections.
Private investment into
the Colombo Port
Firstly, a quick look at the Colombo Port would demonstrate that we already have the private sector operating terminals in the Colombo Port, namely the South Asian Gateways Terminals (SAGT), a John Keells Holdings investment and more recently, under the previous Rajapaksa Administration the Colombo International Container Terminal (CICT), a venture with the China Merchants Port Holdings. In both SAGT and CICT, the stake of the Sri Lanka Ports Authority (SAGT) is only fifteen percent (15%). In contrast the proposed joint venture for the ECT with the India’s Adani Group, was to have a majority (51%) Sri Lankan stake, through the Sri Lanka Ports Authority (SLPA) and the Adani group and other project managers, the balance minority stake only.
Further in the case of the CICT, the China Merchants Port Holdings, is a Chinese Government entity and so the investor is not a foreign private investor, but a foreign sovereign entity. The same Chinese Government entity, the China Merchants Port Holdings (China Merchants) also owns 85% of the Hambantota Port. So, the principal of private sector and foreign investor participation in Sri Lankan ports, is a clearly established Sri Lankan State policy, going back over twenty years, the SAGT having commenced operations in 1999.
Policy clarity and efficient governance
Foreign direct investment (FDI) is the name of the game for Sri Lanka, to both see significant foreign exchange inflows into Sri Lanka and also to significantly improve our infrastructure which will directly contribute to increased growth in our GDP. Both of these are areas where Sri Lanka lags behind our peer group in South and East Asia. Sri Lanka’s GDP growth of the past eight years or so, have been lower than our war era GDP growth and shipping, especially transshipments is a significant potential growth area, for which port capacity and operating efficiency are crucial.
Regarding foreign direct investment (FDI) as well, Sri Lanka lags behind her peer group, especially through equity investments. Further FDI into infrastructure, is harder to attract, than say service industry investments, because infrastructure investments are not only significantly larger, in hundreds of millions of dollars, but also because the projects are long term in nature. Accordingly, the investment by the Adani group would have been a huge foreign direct investment by a private (not government) Indian company and a precursor and confidence booster for other Indian investments. Sri Lanka, geographically positioned as we are, should endeavour to benefit ourselves from the economic growth and success story next door.
A crucial and essential feature of both public policy and governance is that there be both clarity and certainty. In that respect, honouring commitments and especially written agreements become crucial in the conduct of both international relations and commercial activity. The adherence to contracts and agreements is an essential feature of international, local and every common law tradition in the world.
It is in that context, that the previous Sirisena / Wickremesinghe Administration though extremely critical of the Port City and other grandiose projects of dubious utility value, honoured those contracts and proceeded with the projects because of binding nature of the agreements. It was therefore entirely predictable, the immediate Indian Government response to the Government’s announcement, through its High Commission in Colombo, when it announced that the Indian Government expects adherence and implementation of the tripartite Memorandum of Cooperation (MOC) signed between Sri Lanka, India and Japan, our largest bilateral donor by far, for the development of the ECT.
Reneging on contracts, tearing up the rule book and thumbing our nose at our closest (and giant) neighbour India, together with offending our largest bi lateral donor by far, Japan is very unwise and hardly likely to lead us to vistas of prosperity. Not only has Japan been a firm and reliable friend of Sri Lanka for over half a century, they have been Sri Lanka’s largest bilateral donor. The Japanese also have considerable sway over the Asian Development Bank, which has been one of the largest, long term concessionary lenders for infrastructure to Sri Lanka. Their proposed loan for the ECT was at a half percent compared with the hefty premium to Libor that all the Chinese loans came at. Compare half percent to say, four or five percent for a half a billion dollars. The math does not add up. This is also after the government unilaterally cancelled the Japanese light rail project, which was meant to address the rather obvious need for mass rapid transit in the Colombo district, beyond our colonial era railways.
The Government position seems very strange. We have declined foreign direct investment and torn up an agreement with our largest neighbour India and our largest donor Japan. We find the East Terminal in the Colombo Port strategic but not the Western terminal, or the SAGT or the CICT or even the Hambantota port, just the East Terminal. We can forgive those who suspect a hidden hand and it is not too hard to see from where. Monopolistic or oligopolistic behaviour is rational for the monopolist or the oligarch. The problem is when the Government is subject to their pressure.
In contrast to the Government, the main opposition Samagi Jana Balawegaya (SJB) of Opposition Leader Sajith Premadasa, has very wisely taken a well-balanced position on the ECT, saying a public private partnership is the best way forward.
(The writer served as Advisor, Ministry of Foreign Affairs from 2016-17)
Opinion
Catseism

This refers to the superlatively interesting and provocative piece on the above subject by Dr Upul Wijewardene{UW) appearing in The Island of 21/3/23 wherein, as he states, he had been a victim himself at the hands of a well-known Professor of Medicine turned health administrator. He makes it a point to castigate the leaders of the Buddhist clergy for their deviation from the sublime doctrine of this religion.
My first thought on this subject is that it is a cultural problem of exploitation by the privileged of the less fortunate fellow beings. The cultural aspect has its origin in the religion of the majority in India, Hinduism. There is no such discrimination in Islam.
The first recorded case was that of a Sinhala member of the Dutch army fighting against the Portuguese (or the army of the Kandiyan kingdom) being prevented by the members of the higher ranks from wearing sandals due to his low status in the caste hierarchy. The Dutch commander permitted the Sinhala solder to wear sandals as recorded by Paul Pieris in “Ceylon the Portuguese era”
There is also the instance of a monk getting up to meet the King when it was not the customary way of greeting the King by monks.
In an article by Dr Michael Roberts, a Sri Lankan historian published in a local journal, it is said that members of the majority caste (approximately 40% of the Sinhala population) were not permitting lower ranking public officials serving the British government wear vestments studded with brass buttons. The second tier of the hierarchy who had become rich through means other than agriculture like sale of alcohol in the early British times took their revenge by lighting crackers in front of houses of their caste rivals when a British Duke was marching along in a procession in Colombo.
It is not uncommon for members of minority castes numerically low in numbers to help their own kind due to the discriminatory practices of the higher tiers of the hierarchy.
Dr Leo Fernando
Talahena, Negombo
Opinion
Billion-dollar carrot

The IMF successfully coerced the government into falling line with its instructions on debt restructuring and increasing of revenue, among others, and in all probability will release the first tranche of the Extended Fund Facility (EFF) during the course of this week. Regrettably, the IMF is not coercive where the violations of fundamental rights of a country, vis a vis universal franchise, is concerned. On its part, the government flaunted this invaluable tool on the public, as the only remedy for all its financial ailments. It was least worried of the consequences that would necessarily follow.
Taking the cue, professionals and trade union activists dangled the carrot of carrot of strikes to restrain the government on its implementation, the results of which are still in abeyance. Not to be outdone, the powers that be has refused to relent on the grounds that the economy has to be strengthened at whatever costs.
Now that the IMF loan has materialized, the government is already focusing its attention on securing further assistance from other lending agencies. How will the IMF monies be expended, and for what purposes? Naturally, the people would want to know since it is they who have to foot the bill at the end. The Treasury insists that it has no funds to provide for the conduct of LG polls. Just 10% of the rupee equivalent of the first tranche of US $ 300 million will suffice for the successful completion of the elections. Provided the government wants to.
The President has assured that no sooner the Agreement is signed with the IMF, he would submit a copy of it to Parliament. It would be prudent if he would also submit (without plucking figures from thin air) a comprehensive expenditure account on the disbursement of the first tranche. And continue to do so for the rest.
Being fully aware of the country’s top priority needs, attention should be focused on providing them at reasonable prices. Besides them, agriculture, fishing and domestic industries should also be given due consideration. Merely dangling of carrots before them will not suffice.
Non-essential development projects should be shelved until the dreamed of economic stability is achieved. Of special note is that upkeep and interests of politicians should not be addressed with these funds.Can the people expect some sort of genuine transparency even at this late stage?
WILLIAM PHILLIPSZ
Opinion
Death penalty – another view

In his article, (The Island, 8th March), Dr Jayampathy Wickremeratne, would have us believe that the Death Penalty is not an effective deterrent and it should be abolished in Sri Lanka. Similar arguments are presented in India, home to some of the most horrendous crimes of violence against Women and children, and also in South Africa, where the death penalty was abolished despite strong opposition from the vast majority of the population.
Use of the Death Penalty purely for political purposes is always bad, but that’s not what the public are calling for. The public want the Death penalty implemented RIGOROUSLY, against those who have undeniably murdered children, and also serial killers whose victims are invariably women. Their crimes are gruesome but unfortunately need to be detailed to counter the pseudo- academic arguments of Death Penalty abolishonists. For example:
South Africa abolished the death penalty despite vigorous opposition. In South Africa one of its worst serial killers, led the police to the remains of 38 of his victims all of them women and all from the poorest class (mostly domestic servants).
On 12 March, India’s National Broadcaster NDTV reports the case of a man in Kashmir, whose marriage proposal was refused. He murdered his prospective young bride, cut up her body and disposed the remains in several places to avoid detection. A few days ago, a similar incident in India was reported by NDTV, where a 17-year-old was stabbed and dragged through s crowded street and murdered with no public intervention! In Sri Lanka a few years ago, four-year-old Seya fell victim to a murderer, rapist, a person known to her family, whom the child trusted. Likewise, a 17-year-old girl miss Sivaloganathan was raped and murdered in the North by a gang led by an individual known as “Swiss Kumar” a porn film maker of Sri Lankan origin, living in Switzerland. (One wonders whether he subsequently received the benevolent “Presidential Pardon”!
Other arguments used in Dr Wickremeratne’s article, are out of date. For example, he refers to wrongful convictions in a bygone age where DNA testing did not exist. DNA tests enable identity to be established and tie a murderer to the crime, beyond any doubt. Elsewhere he cites a Table where Murder rates are calculated as follows- “divide the number of murders by the total population, in death-penalty and non-death penalty states”. This methodology is patently flawed. It assumes that the populations of ALL 50 States in the USA are homogeneous in demography and other characteristics- it equates the violent State of New York with relatively peaceful Alaska.
Dr W advocated “long term imprisonment” in lieu of death penalty. Frankly this is the academic argument of a person removed from everyday life and steeped in Academia, “the social cost of rehabilitation” is Immense! It has been estimated that the cost of keeping a person on death row is at least Rs 50,000 per month – for the rest of the murderers’ life! It should ALSO be pointed out that in Singapore and other countries where the death penalty operates, murder rates are significantly low.
JAYMAN
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