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UPDATE ON COVID 19 VACCINES:

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Vaccination drive commendable, but don’t lower guard

BY Dr. H. T, Wickremasinghe
Senior Consultant Paediatrician
President, Vaccine and Infectious Diseases Forum of Sri Lanka

It is commendable that the government of Sri Lanka has planned to get down 9 million doses of Covishield Vaccine from Serum Institute of India, the world’s largest vaccine manufacturing company. This vaccine is actually none other than AstraZeneca –Oxford Vaccine manufactured by The Serum Institute of India, by the name of Covishield. To date, Sri Lanka has already administered about 200,000 doses to healthcare workers. The next consignment would be given to persons over 65 years and persons with comorbid conditions such as diabetes, hypertension, heart disease and kidney disease.

With the rolling out of the vaccine globally, new observations have surfaced. The original schedule of the vaccine was to give two doses 28 days apart. This provided almost 70% immunity. However, new evidence has come out last month, suggesting that it would be better to increase the gap between two doses to 12 weeks (three months) instead of four weeks. This would offer a more robust 84% immunity. The United Kingdom is already using the 3 months interval between two doses. This will provide greater flexibility for vaccine rollout, and help the health authorities to deal with any possible supply disruptions, while consistently sustaining the maximum immunity to the public.

A study done by the independent COVID-19 Vaccine Research Group in the UK had shown that until the time of conclusion of the study at three months, a single standard dose would provide 76% protection with no declining of immunity. How long this protection would last is not known yet. But time would tell us. As with any other vaccine, an introduction of a second dose at three months would certainly boost the immunity.

The second observation made during the roll out of this vaccine is that it appears to provide some form of protection to community spread of the disease. This study revealed that there was 67% reduction in community spread of the disease. This is in fact very good news, as when we go on vaccinating more and more people, there would be less and less community spread of the disease, reducing the burden on hospital medical services.

Another issue which surfaced while rolling out of the vaccine is the safety and efficacy of the vaccine in persons over 65 years of age. Unfortunately, all phase 3 trials done by AstraZeneca have not included many persons over 65 years of age. They primarily targeted the 18-55 year age group. According to the data from AstraZeneca’s phase 3 trials, only two out of 660 persons in the trial aged over 65 were infected with COVID-19. Such a small number of participants is grossly insufficient to make a global decision. It is obvious that AstraZeneca has failed to provide reasonable data of safety and efficacy of their vaccine in the elderly population. They are already paying the penalty as countries such as Germany, France, Austria, and South Africa have declined to use the vaccine for persons over 65 years, despite the recommendation made by the European Medicines Agency (The governing body of drug evaluation in EU countries) to use the vaccine for all ages. However, the United Kingdom decided to continue vaccination for all ages, including persons of over 80. Their interim analysis during the early part of the vaccination programme shows that the vaccine is not only effective and provide the same immunity as for others but also has slightly less side effects.

Considering the seriousness of COVID 19 in the elderly and it’s very high mortality, it is my considered opinion that even if the vaccine is less effective or has more side effects, it is still worth giving it to old persons as it would save their lives.

With more and more new genetic variations of SARS CoV 2 virus emerging, a reasonable concern has transpired among scientists whether the vaccines would be able to provide immunity to the new emerging strains. Up to now globally there are more than 8000 variants. Out of those, three variants, the South African variant, the Kent (UK) variant and the Brazilian variant are few rapidly gaining global spread. The UK variant has been identified in Colombo, Avissawella, Biyagama and Vuvuniya.

Studies done in UK has shown that AstraZeneca vaccine would provide immunity to the UK variant. However, a similar study done on over 2000 participants in South Africa has unfortunately revealed that this vaccine is not effective against the new South African strain.

There are more than 150 vaccines against COVID 19 in the production pipeline. Out of those, a dozen are nearing completion and awaiting submission of their dossiers to the World Health Organization for approval. With such a vast array of vaccines, it would be easy for WHO to distribute vaccines early to provide vaccination to all needy people in the world. But it would not be easy to have the same vaccine supply without disruptions with the expanding global demand. At the same time, some vaccines would show immunity to some new emerging variants, while another vaccine would show immunity to other variants. This brings us to another new strategy. What if we combine vaccines? Combined vaccines theoretically will provide greater flexibility for vaccine rollout and help to deal with any possible intermittent supply shortages of a particular brand.

However, the official guidance given by vaccine authorities in the world state that anyone who has already taken a vaccine should get the same brand of vaccine for both doses. The US Food and Drug Administration and the UK’s Joint Committee on Vaccination and Immunization (JCVI) recommend as much. It’s only in ‘very rare circumstances’ that vaccines of different brands may be used and only if one vaccine is available at a certain time, or it is not known which one was administered for the first dose. Nevertheless, the usefulness of a combined vaccine, in case of a short supply or with combating a new emergent variant, cannot be underestimated. New research is underway to find out the efficacy and safety of such combinations. The initial report with AstraZeneca-Pfizer vaccine combination will be available by mid-2021. Similar trials will be undertaken soon, so that the health authorities of countries would have a better and competitive option of choosing vaccines for their public.

Despite all this good news, we still have a question for which we have to wait for an answer. How long the immunity will last is the question for with no answers are available yet. Many countries have already commenced their vaccination programme, even before the introduction of the free vaccine programme by WHO sponsored COVAX. In the race of COVID-19 mass vaccination, Israel is well ahead of all the countries in the world already covering 43% of the total population. The number of new cases and deaths due to COVID-19 has come down. Even in the US, the initial wave of vaccination is slowly showing results of reduction of mortality from COVID-19 related complications.

The majority of the vaccines used so far may not provide the expected picture-perfect immunity and the world may continue to have COVID 19 infections, but based on evidence, speculations have already been made to claim that vaccination could provide almost 100% protection from death. This is what we all want.

With that positive note, let me conclude while emphasizing the need to continue our general public health measures such as wearing masks, social distancing and avoiding crowded gatherings to reduce the risk of contact with an infected person.

There is no science to beat common sense.



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Post-War Reconciliation Process: Human Rights violation

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By Dr. S.W. Premaratne
Attorney-at-Law

At each session of the United Nations Human Rights Council (UNHRC), in Geneva, at which the Post-War Reconciliation Process in Sri Lanka was considered, special attention was drawn to the issue of alleged violation of human rights, and humanitarian law, during the last stage of the war, and also the need for taking remedial steps for improving the human rights situation in Sri Lanka. In this article, attention of the reader is drawn to the inconsistency, and contradictory nature of the policy, adopted by successive governments, in Sri Lanka, in response to the role played by the United Nations, and the adverse effect of the failure on the part of the Sri Lankan government to be guided by a consistent and diplomatically pragmatic policy.

Joint Statement of the UNSG and the President of Sri Lanka in 2009

Immediately after the conclusion of the war, in May 2009, the United Nations Secretary General (UNSG), Ban Ki-moon, paid a visit to Sri Lanka and, after a discussion with President Mahinda Rajapaksa, a joint statement was issued on May 23, 2009. According to the Joint Statement, Sri Lanka agreed to attend to the immediate needs of the people, affected by the war, and to initiate a reconciliation process, with the objective of achieving durable peace and economic development, for the benefit of all sections of the Sri Lankan population. The President also gave an assurance, to the UNSG, to attend to the matters that need the most urgent attention, such as the re-settlement of Internationally Displaced Persons (IDP), reconstruction of damaged infrastructure, rehabilitation and reintegration of former child soldiers, and ex-combatants, to civilian life. Of course, the Mahinda Rajapaksa government did not hesitate to attend to most of the above-mentioned immediate needs of the war-affected people, in the North-East.

In the joint statement of the UNSG and the President of Sri Lanka, the most significant part was the expression of the Sri Lankan government’s commitment to the promotion and protection of human rights, in keeping with the international human rights standards, and Sri Lanka’s international obligations. It is also very significant that the UNSG underlined the importance of an accountability process for addressing the violations of international humanitarian and human rights law. According to the joint statement, the President agreed to the need for establishing a mechanism for holding an independent investigation into the allegations of serious violations of human rights, and humanitarian law, both by the LTTE and the Sri Lankan armed forces, committed during the last stage of the war. In expression of Sri Lanka’s strong commitment to fulfill the obligations, in respect of promoting human rights, the Sri Lankan government made a proposal, entitled “assistance to Sri Lanka in the promotion and protection of human rights,” to the UNHRC, on May 27, 2009.

The Sri Lankan government, thereafter, proceeded to appoint the Lessons Learnt and Reconciliation Commission. The LLRC has made a comprehensive analysis of the causes of the conflict and the remedial steps that should be taken by the government for restoration of durable peace and reconciliation. Regarding the issue of violation of human rights, the following recommendations were made by the LLRC:

(i) Launching a full investigation into incidents of disappearance of persons, after surrender to official custody, and, where necessary, instituting prosecutions. According to the LLRC recommendations, instituting prosecutions against the offenders is an imperative, also for the purpose of clearing the good name of the Sri Lankan Army “who have, by and large, conducted themselves in an exemplary manner, in the surrender process”.

(ii) To investigate the specific instances, referred to in the Report, and any reported cases of deliberate attacks on civilians. If the investigations disclose the commission of any offences, appropriate legal action should be taken to prosecute/punish the offenders.

(iii) Regarding the controversial “Channel 4 Video” the LLRC recommended an independent investigation to find out the truth, or otherwise, of the video footage. If such investigation reveals the commission of any offences, it is necessary to prosecute such offenders.

(iv) The Commission also recommended the investigation of alleged disappearances and provide material to the Attorney General to institute criminal proceedings.

(v) The LLRC also brought the attention of the government to instances of persons being detained in custody for a long period of time, under the Prevention of Terrorism Act.

Although the government, led by President Mahinda Rajapaksa, initially indicated its willingness to fulfil the commitments undertaken, with respect to the violation of human rights, and humanitarian law, by the Sri Lankan armed forces and the LTTE, on the occasion of issuing the joint statement with the Secretary General, it became clear, subsequently, that the political leaders in power, led by President Rajapaksa, did not have the political will to act. They were guided by the mindset that by defeating the LTTE, who were generally recognized, at that stage, as a terrorist movement, the Sri Lankan armed forces had been able to unite the country and restore peace after making innumerable sacrifices and, therefore, there was no need for a reconciliation process.

The sponsors of the Resolution 19/2, adopted before the UNHRC, in Geneva, in 2012, required the Sri Lankan government to implement the recommendations of the LLRC. The need for holding an investigation into the allegations of serious violations of human rights, and humanitarian law, during the last stage of the Eelam War IV, was emphasised in the UNHRC Resolutions, adopted in 2012, and the subsequent resolutions, adopted in 2013 and 2014.

Regarding the involvement of the international community, as members of the United Nations and the UNHRC, in a reconciliation process, the attitude of the Mahinda Rajapaksa government was that Sri Lanka being a sovereign state, the other countries, or even the UN, had no right to interfere with or make any recommendations, regarding the settlement of domestic issues of Sri Lanka. The representatives of the Sri Lankan government, who participated in the UNHRC sessions, argued that the officials of the UN and the UNHRC, interfering in the domestic issues of Sri Lanka, amounts to violation of sovereignty of this country. Therefore, such interventions are illegal and as such Sri Lanka was not bound to implement these recommendations of the UNHRC. Regarding the allegation of serious violations of human rights, the response of the Sri Lankan government was that Eelam War IV was a humanitarian operation, conducted strictly in adherence to human rights law, and humanitarian law, and in the course of the military operations, violations of human rights were committed, only by the LTTE.

Regime change in 2015

A change of attitude, towards the involvement of the international community, could be observed during the Yahapalana administration, led by President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe (2015-2019).

The representatives of the Sri Lankan government, at the UNHRC sessions, in Geneva, co-sponsored the Resolution 30/1, which required the Sri Lankan government to hold a credible investigation, by a hybrid tribunal, consisting of both local and foreign judges, to investigate alleged violation of human rights, and humanitarian law, by the members of the armed forces, and the LTTE, during the last stage of the war.

It can be stated that the Sri Lankan government, at that stage, adopted a pragmatic approach by co-sponsoring the resolution. At that stage, the Sri Lankan government felt the state of insolation from the international community, including India, that supported the sponsors of the Resolution against Sri Lanka. The Yahapalana government perceived serious negative consequences if the Sri Lankan government continued to oppose the UNHRC resolutions.

The Yahapalana government also took several constructive steps that contributed towards the creation of a conducive environment for meaningful reconciliation. Foreign Minister of Sri Lanka, Mangala Munasinghe, who participated in the UNHRC sessions, during which the Resolution 30/1 was co-sponsored, informed the UNHRC that the government would initiate a domestic mechanism, after consulting all parties who have a stake in an effective reconciliation process. The Yahapalana government was able to establish domestic mechanisms, such as the Office of Missing Persons (OMP), and the Office for Reparations. These institutions were able to function effectively, at the initial stage. Signing of the International Convention, on the protection of all persons from enforced disappearance, on May 25, 2016, and drafting a Bill for the repeal of the Prevention of Terrorism Act, are some of the progressive steps taken by the Yahapalana government.

Recapture of Political Power by Rajapaksa brothers

The Presidential election, held in November, 2019 and the General elections, in August 2020, brought back to power same political leaders who ruled the country, prior to 2015. This change of government resulted in the reversal of the Sri Lankan government’s policy towards involvement of the UN in the reconciliation process in Sri Lanka. The government, led by the Rajapaksa brothers, opposed the Resolutions brought before the UNHRC, in Geneva, against Sri Lanka and adopted the same confrontationist approach towards the UN’s involvement in the reconciliation process. Co-sponsoring the Resolution 30/1 and co-operating with the UNHRC, by the Yahapalana government, was projected to the Sri Lanka electorate, during the election propaganda campaigns, as an unpardonable betrayal of the armed forces, and the Sri Lankan nation, by the Yahapalana government.

46th Sessions

The Resolution, titled “Promoting reconciliation, accountability and human rights,” was adopted by the UNHRC, in Geneva, on March 23, 2021, during the 46th Sessions. By this resolution, a mandate was given to the High Commissioner for Human Rights for initiating a fresh inquiry, outside Sri Lanka, regarding the accountability issues. In this resolution, there is a provision according to which the Office of the High Commissioner for Human Rights is authorized to take on the role of collecting evidence to be used in such prosecutions in the future.

Foreign Minister Prof. G.L. Peiris, making a statement to Parliament of Sri Lanka, subsequent to the adoption of the Resolution before the UNHRC, stated that by the adoption of this resolution, the UN sought to interfere in matters essentially within the domestic jurisdiction of Sri Lanka. He further stated that there was no moral right to interfere into affairs of a sovereign country in this manner. The Minister said that “Sri Lanka categorically rejects this unprecedented proposal in the Resolution”.

48th, 49th and 50th Sessions of the UNHRC

In the reports submitted by the UN High Commissioner for Human Rights, Michelle Bachelot, at the 48th, 49th and 50th Sessions of the UNHRC, she brought the attention of the Sri Lankan government to the concerns of the UNHRC, regarding inadequate progress in the human rights situation, and also the inadequate action taken regarding the investigation of alleged human rights violations, during the last stage of the war.

Her reports also dealt with the various aspects of human rights violations that occurred in Sri Lanka, under the Rajapaksa administration. She made special reference to the increasing militarization of the civil functions of the government, intimidation and harassment of human rights defenders, and journalists, and members of civil rights organizations, which criticized government policies, and detention of individuals, for long periods of time, without trial, under the Prevention of Terrorism Act.

In the report submitted at the 49th sessions, the High Commissioner stated that the OHCHR had already established a “Sri Lanka Accountability Project” and even allocated funds for it. In the report submitted at the 50th Sessions also she referred to this “Accountability Project” outside Sri Lanka, which may have serious consequences a far as Sri Lanka’s relations with leading democratic countries are concerned, especially at a time Sri Lanka is grappling with a veryserious economic crises.

Anti-government protests in Sri Lanka

Only a few hours after President Ranil Wickremesinghe assuming duties of his office, the armed commandos of the Police and troops of the security forces were used to disperse the peaceful, unarmed protesters from the Presidential Secretariat area of the Galle Face, in the early hours of 22nd July. Attention of the international community has been drawn to the undemocratic step of imposing a State of Emergency, and initiating an operation for arresting the protesters who played a leading role in the protest campaign. A message from the US and the Sri Lanka core-group of the UNHRC stated: “The Human Rights Council Sri Lanka Core-Group is dismayed at the violation which took place at Galle Face. We call for full respect for human rights and rule of law”.

Even prior to this unlawful act of attacking the protesters, on July 22, the Special Rapporteur on Freedom of Peaceful Assembly, in his report to the UNHRC, at the 50th Session, held in June 2022, had already warned that Sri Lanka police frequently appear to respond to protests by arresting their participants, in violation of the right to freedom of peaceful assembly”.

Conclusion

The fact that the core-group, and their supporting members of the UNHRC, are determined to go ahead with a project, outside Sri Lanka, for investigating the allegations of serious violations of human rights, and humanitarian law, during the last stage of the war, and continued vigilance of the democratic members of the UNHRC, regarding the deteriorating human rights situation in Sri Lanka, after the conclusion of the war, has caused irreparable injury to Sri Lanka’s friendly relations with these countries. There is no doubt that the Sri Lankan government is now concerned about the highly damaging consequences of the failure to adopt a consistent and diplomatically pragmatic policy in respect of the role assumed by the UN to ensure that Sri Lanka would initiate and proceed with a credible and transparent reconciliation process after the conclusion of the war.

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Why record export earnings may not be good news

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By Gomi Senadhira

The press release by the Central Bank on the external sector performance ,in June 2022, perhaps was the first piece of good news we had received for a long time. According to the press release, “Earnings from merchandise exports, in June 2022, increased by 23.9 percent over the corresponding month, in 2021, recording US dollars 1,248 million, which is the highest ever monthly export earnings recorded. An increase in earnings of both industrial and agricultural exports contributed to this favourable outcome, …. Cumulative export earnings, from January to June 2022, also increased by 14.3 percent, over the same period in the last year, amounting to US dollars 6,514 million.” So, most of us would think we have enough dollars to cover our essential imports. But, apparently, that is not the case.

Earlier, the Central Bank Governor, Dr. Nandalal Weerasinghe, had said that exporters only converted about 20% of their export earnings into Sri Lankan Rupees and the rest was not brought back to Sri Lanka. That amounts to the US $800 million a month! The Governor had also said “… At least 40% of the total export earnings should be added to the formal financial system of the country. So exporters have a responsibility, at a very difficult time like this, to bring back their foreign exchange, through the banking system, and if that happens, then we can resolve the fuel crisis comfortably.”

(Diesel shipment that arrived in Colombo, on 16 July, still not paid for want of dollars – The Island July 30th) It appears as if the Governor is pleading with the exporters to bring back at least 40% of their export earnings. More notably, from Dr Weerasinghe’s statement, it is clear that the exporter had only converted 20% of their export earnings to rupees during the last five months. Did they convert their export earnings to rupees during the last year, or in the previous years? For how long has this been going on? When the Central Bank says “… exporters have a responsibility, at a very difficult time like this, to bring back their foreign exchange, through the banking system,” does that mean the foreign exchange earned, with the exports, is brought through the hawala network, or other similar arrangements?

Exporters deserve credit for the great service they provide and should be rewarded, appropriately. But not disproportionately. The export earnings are not earned by the exporters alone. These earnings are earned by all those who contribute to manufacturing the export products. All of them should be getting their fair share of the export proceeds. If not, there is something terribly wrong with the system. Is this normal in international trade?

During the last few years, some of the studies by Indian scholars, including Utsa Patnaik and Shashi Tharoor, have placed in the public domain some of the less known facts on the effects of the British colonial rule on India. They explain how the British seized India, “… one of the richest countries in the world – accounting for 27% of global GDP in 1700 – and, over 200 years of colonial rule, reduced it to one of the world’s poorest,” and how during the period British Raj siphoned out $45 trillion from India.

How was this done? Patnaik explains, “In the colonial era, most of India’s sizeable foreign exchange earnings went straight to London—severely hampering the country’s ability to import machinery and technology in order to embark on a modernisation path, similar to what Japan did in the 1870s. …, a third of India’s budgetary revenues was … set aside as ‘expenditure abroad’. The secretary of state (SoS) for India, based in London, invited foreign importers to deposit with him the payment (in gold and sterling) for their net imports from India, which disappeared into the SoS’s account in the Bank of England. Against these Indian earnings he issued bills… to an equivalent rupee value—which was paid out of the budget, from the part called ‘expenditure abroad’.” Patnaik underlines that this was “something you’d never find in any independent country,”

But it appears something very similar is happening in Sri Lanka, many years after the independence! If the exporters do not “bring back their foreign exchange ,through the banking system,” or only bring back 20% of it, then how do they pay for goods and services obtained locally? The local value addition for most of our exports is 70% to 80% or higher! The only major exception is cut and polished diamonds. Tea exporters buy tea with rupees. Some of the imported inputs, like fertiliser, or diesel, are sourced locally! The garment industry had moved up the value chain during the last 40 years and provide many value-added services, like designing, locally.

How do the exporters pay for all these goods and services, if they keep more than 60% of their export earnings outside the country? Do they get it through “hawala” or similar arrangements? During the British Raj, payments to local producers were done with the taxes collected by the Raj. In present-day Sri Lanka, how does one manage to raise a large amount of cash to operate such a system?

If a sizeable chunk of Sri Lanka’s foreign exchange earnings goes straight to banks in London, New York, Zurich, or elsewhere, severely hampering the country’s ability to import essential items, doesn’t that mean, Sri Lanka’s wealth is getting siphoned out through our exports? And there is not much of a difference between what happened during the colonial period and the post independent Sri Lanka!

So, June’s record export earnings also mean nearly US$ billion was siphoned off during the month! A new record for the month of June! And that means Patnaik was wrong when she said this was not “something you’d never find in any independent country”

That is not good news.

(The writer is a specialist on trade and development issues and can be contacted at senadhiragomi@gmail.com)

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Improving trend needs to be sustained on multiple fronts

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by Jehan Perera

The government appears to have secured political stability in the short term.  So far President Ranil Wickremesinghe’s efforts to restore stability appear to be working. Political stability is necessary for decisions to be made and kept.  It is a necessary element for international support to come in.  One of the IMF’s conditions to provide the country with the multi-billion-dollar loan it seeks is political stability that would ensure that commitments that are made will be kept.  The protest movement has not mobilised public demonstrations on the very large scale of the past after the appearance of Ranil Wickremesinghe in leadership positions, initially as prime minister and subsequently as president. This would be seen as an achievement by the government.  The present governmental line that protests should be within the law is difficult, and also frightening, to challenge when a state of emergency is in force.

The government has shown its ability to wield the emergency law with deterrent effect. Under the state of emergency that President Wickremesinghe declared on July 18, the period that a person may be detained before being brought before a magistrate has been increased from 24 to 72 hours. The authorities have been granted additional powers of search and arrest, and the military has been empowered to detain people for up to a day without disclosing their detention. The state of emergency also gives the president and the police broad powers to ban public gatherings, allows the police or military to order anyone to leave any public place or face arrest, and makes it an offense to cause “disaffection” or to spread “rumours.” However, in a sign that Sri Lanka’s system of checks and balances is still working, the Colombo Chief Magistrate’s Court has rejected a request by the police to ban a public protest planned by political parties and multiple organisations on September 9.

Human Rights watch has pointed out that “these provisions are vague, overly broad, and disproportionate in violation of the rights to freedom of expression, peaceful assembly, association, and movement.”  The midnight strike on the protestors who had camped for over three months at the main protest site at Galle Face would make any reasonable person think twice before getting into physical confrontation with the government.  The social media coverage of events that night showed men in black uniform and wearing masks, attacking the unarmed protestors.  As these men did not wear identification badges, there is a question whether they were part of the official security forces or drawn from other groups that work with them.  This response brought discredit to the perpetrators and disturbed both Sri Lankan people and the international community that have the welfare of Sri Lanka at heart.

The government has also used the full power of the draconian law to ensure that the leadership of the protest movement is neutralised. Several of them have been arrested, some of them given bail, others remanded, which would send a chilling message to the others.  The government has also shown its willingness to offer high positions to those who are prepared to join it.  This has led to a situation where two trade union leaders active in the protest movement have been treated very differently.  One has been offered a high post while the other has been put into prison, although he has now been given bail.  In a signal that he is sensitive to public pressure and human rights concerns, President Wickremesinghe had spoken to leader of the Ceylon Teachers Union, Joseph Stalin, after he was remanded and reportedly said he admires the members of the protest movement who talk of a system change.

ECONOMIC STABILISATION

Apart from the appearance of political stability there is also the appearance of economic stabilisation.  The shortages of cooking gas, petrol and diesel, and the 13-hour power cuts were among the main catalysts of the protest movement.  It was during the period of long power cuts, when staying at home became unbearable, that neigbourhood groups began to converge in urban centres to hold candlelight protests.  However, at this time the supply of gas, petrol and diesel has improved significantly and the kilomere-long lines in front of fuel stations are much less common.  Credit has gone to the QR code system put in place that gives to each vehicle a weekly quota.

The challenge for the government is to ensure that the economic situation continues to be stable without experiencing the acute shortages of key items that causes distress to the general population.  The QR code system can only work if there is petrol and diesel to be distributed.  The current imports of cooking gas, petrol and diesel appear to have been made possible by a World Bank loan which was re-purposed to the purchase of essential items.  However, these funds will dry up soon.  The question is what will happen after that.  There is apprehension that the country will fall once again into a situation of severe shortage.  The government needs to take the people into its confidence regarding the future.  The government also needs to be trusted if it is to be believed.

The World Bank has given an indication that they are still to be convinced regarding the provision of further assistance to Sri Lanka.  Earlier this month, the World Bank issued a statement “expressing deep concern about the dire economic situation and its impact on the people of Sri Lanka yesterday said it does not plan to offer new financing to Sri Lanka until an adequate macroeconomic policy framework is in place.  Issuing a statement, the World Bank Group said it is repurposing resources under existing loans in its portfolio to help alleviate severe shortages of essential items such as medicines, cooking gas, fertiliser, meals for school children and cash transfers for poor and vulnerable households.  To date, the World Bank has disbursed about US$160 million of these funds to meet urgent needs.”  This is extremely concerning as the World Bank is closely connected to the IMF on which Sri Lanka is pinning its hopes for a big loan.

POLITICAL STABILITY

The issue of political stability is highlighted by the government as being necessary to obtain international assistance and also as a justification for quelling the protest movement through emergency laws.  There is explicit blame being apportioned to the protest movement for creating instability in the polity that is deterring the influx of foreign assistance and investments.  However, the fuller picture needs to be seen.  The IMF as much as the World Bank, and indeed other potential sources of donor support, want their resources to be used for the intended purpose and not be squandered or siphoned away corrupt practices and in sustaining loss-making state institutions.

The hoped-for IMF-supported programme to provide assistance to Sri Lanka is being developed to restore macroeconomic stability and debt sustainability, while protecting the poor and vulnerable, safeguarding financial stability, and stepping up structural reforms to address corruption vulnerabilities and unlock the country’s growth potential. IMF mission team to Sri Lanka last month specifically mentioned the need to reduce corruption stating that “Other challenges that need addressing include containing rising levels of inflation, addressing the severe balance of payments pressures, reducing corruption vulnerabilities and embarking on growth-enhancing reforms.”

Both the international funding agencies and the protest movement are on the same page when it comes to opposing corrupt practices.  The main slogans of the protest movement during their heyday was the ouster of the then president, prime minister and cabinet of ministers, and indeed the entire parliament, on account of the corruption that they believed was responsible for having denuded the country of its foreign exchange reserves. This was not simply the replacement of one set of corrupt leaders by another. There are disturbing signs that some of those accused of corruption are once again on the ascendant.

The underlying demand of the protest movement was and continues to be the very “systems change” that the president has said he admires in his reported discussion with remanded trade union leader Joseph Stalin. Civil disobedience to obtain a government that is transparent and law abiding, that does not steal the wealth of the country, is a noble goal, no less sacred than the civil disobedience struggles engaged in by Mahatma Gandhi in India and Martin Luther King in the United States.  The ingredients for a rebound of the protest movement continue to be in place and hopefully the evidence of a systems change will become more convincing.

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