Explainer: Sri Lanka’s key political risks after parliamentary elections

By Shihar Aneez

Wednesday November 13, 2024 12:55 pm

ECONOMYNEXT – Sri Lanka’s President Anura Dissanayake faces a range of key political risks and challenges, particularly given his position as the leader of the Marxist Janatha Vimukthi Peramuna (JVP)-led National People’s Power (NPP), a historically leftist alliance.

The NPP is tipped to win the November 14 parliamentary polls, but it is uncertain what number of seats it will gain in the 225-member legislature.

Dissanayake’s JVP has been involved in two insurrections in the past, while his broader NPP coalition is accused by rivals of having no experience in handling critical issues as a ruling party in the government.

Here is a detailed overview of the major political risks and policy dilemmas for Dissanayake’s government after forming an extended NPP government beyond the current three-member cabinet:

1. Economic Instability and IMF Engagement:

Sri Lanka’s economy remains fragile, and Dissanayake’s administration has to continue managing the terms of the International Monetary Fund bailout package initiated by the previous center-right government. While the NPP pledged to renegotiate certain terms, balancing economic reforms with domestic economic protectionism and socialist policies may prove contentious. So far, Dissanayake’s 50-day “transition” government has maintained the status quo on the IMF deal, contrary to NPP’s hard stance to renegotiate and change the debt sustainability analysis (DSA). The DSA is a strategy Sri Lanka agreed with the global lender to achieve sustainable debt repayment and come out of its 2022 sovereign debt default.

Factors to watch:

Changes in the new government’s tax policies
New government’s revenue proposals
Delay in the third IMF review and 4^th tranche disbursement
Delay in receiving some World Bank, ADB funds due to delay in IMF deal

2. Debt Management and Public Finances:

The country’s external debt restructuring is ongoing, with a precarious fiscal position requiring careful navigation. The NPP is compelled to maintain creditor confidence while addressing domestic demands for economic justice, including attempts to recover assets from foreign countries linked to corruption, which is likely to take years contrary to people’s expectations.

Factors to watch:

Debt restructuring deal with sovereign bond holders
Court ruling on a case filed by Hamilton Reserve Bank against default
Impact in debt restructuring due to delay in IMF disbursements
Impacts on local banking/financial sector due to debt restructuring

3. Social Inequality and Populist Promises:

Dissanayake campaigned on anti-corruption and systemic change, reflecting dissatisfaction with political elites. Delivering on these promises, especially in the context of past protests by his party-linked trade unions and public expectations, will be challenging without jeopardizing the country’s fragile economic stability. Most voters elected Dissanayake for his promise to address corruption. Analysts, however, say that change needs a holistic approach and not just arresting and punishing political leaders who are accused of corruption and impunity.

Factors to watch:

Ensuring justice in some key past court cases dragged for years, including Easter Sunday attack, Central Bank bond scam, and misuse of public funds
Impacts on new government’s popularity due to possible delays in some court cases
Protests by rival parties as NPP did when it was in the opposition
New measures to prevent corruption in future

4. Geopolitical Balancing Act:

The NPP’s ideological roots include a traditionally adversarial stance toward India and an inclination toward China and Russia. Dissanayake has sought to moderate these positions for pragmatic diplomacy, but skepticism remains around potential reversals on sensitive projects, such as those involving Indian and Chinese investments. Before his election, his party promised to abolish a key Indian renewable power project in Northern Sri Lanka. However, Dissanayake’s party has backpaddled and said it will review India’s Adani project and renegotiate in January. So far Dissanayake has not strongly antagonized the New Delhi government. However, most party cadres of JVP led by Dissanayake have strong anti-India sentiments. They have been critical against Indian projects including Trincomalee Oil Tank farm project in the past. In addition to India and China, Dissanayake also has to manage better relations with the US, Russia, Japan, and EU nations. These relationships are crucial for Sri Lanka to come out of the current economic crisis and sovereign debt default.

Factors to watch:

Satisfying Indian demands including Adani, connectivity projects
Dealing with China and Russia
Dealing with the West including the US for investments, grants
Neutralizing some deals with foreign nations that are adverse to Sri Lanka

5. Inexperience and Legislative Control:

As the NPP has not previously governed, the lack of administrative experience poses a challenge. Furthermore, Dissanayake’s ability to enact reforms will be complicated if he fails to secure a stable parliamentary majority in the November 14 polls. Some of his appointments have already angered bureaucrats who say the new government has gone against the NPP’s promise of appointment based on meritocracy. It also does not have enough clean and corruption-free experts to negotiate international deals like IMF loan, debt restructuring, and energy deals. Such lack of expertise could make Dissanayake’s future government vulnerable to agree on less than what Sri Lanka should get in key international deals, analysts say.

Factors to watch:

Negotiations with IMF, commercial debtors, China, and India
Backing by Bureaucrats in future
Key appointments to Ministries and key state-owned enterprises
Reducing government expenditure without privatization

6. Public and Private Sector Expectations:

Dissanayake’s campaign included efforts to engage both grassroots and business interests, including support for domestic industry. However, maintaining this balancing act while satisfying private-sector concerns about market interventions will be demanding.

Factors to watch:

Tax reduction, new taxes on the public, private firms
Policies to boost small and medium enterprises (SMEs)
Policies on state sector recruitment
Investment policies

7. Political Reforms and Governance Structures: Dissanayake aims to abolish Sri Lanka’s controversial executive presidency, but constitutional amendments require broad support. Achieving consensus across a diverse and divided political landscape could be difficult.

Factors to watch:

Strength of the parliament majority
Support he gets from other parties in the parliament
Possible conflict between NPP and hardcore JVP members
Relationship with former leaders who are still influential

(Colombo/November 13/2024)

https://economynext.com/explainer-sri-lankas-key-political-risks-after-parliamentary-elections-187149/

Published on: October 22, 2024

Prepare a New Proposal to rationalize the Provincial Council System

Provincial Councils Should Act to Improve the Living Conditions of the People

– Says the President at the Governors Meeting

President Anura Kumara Dissanayake instructed the Governors to prepare and submit a new proposal aimed at rationalizing the Provincial Council mechanism.

The President also stated that, given the current government’s transitional period, the provincial councils must strive to deliver the best possible services to improve the living conditions of the people.

President Dissanayake made these remarks during a discussion held with the Governors this morning (22) at the Presidential Secretariat.

He urged the governors to engage in all possible economic and social initiatives to improve the living conditions of the public.

During the meeting, the President also highlighted the importance of establishing a new political culture and reiterated that the trust placed in him by the people should be fulfilled through effective action.

He reminded the Governors to avoid previous poor practices in the use of state assets and to remain committed to delivering quality public service.

Attention was drawn to existing vacancies in the health and education sectors under the Provincial Councils, with decisions made to find viable solutions.

The meeting included discussions on the lands in the Northern and Eastern provinces as well as finance.

Additionally, the President also made inquiries about the allocation of land to farmers in Kantale.

Participating Governors included Nagalingam Vedanayagam from the Northern Province, Champa Janaki Rajaratne from the Sabaragamuwa Province, Professor Jayantha Lal Ratnasekera from the Eastern Province, Kapila Jayasekera from the Uva Province, Bandula Harischandra from the Southern Province, Prof. Sarath Abeykoon from the Central Province, and Wasantha Kumara Wimalasiri from the North Central Province.

https://pmd.gov.lk/news/prepare-a-new-proposal-to-rationalize-the-provincial-council-system/

Hypocrites as democrats

Thursday 30th May, 2024

Opposition politicians and some of their government counterparts have taken up the cudgels for the people’s franchise following UNP General Secretary Palitha Range Bandara’s call for postponing the next presidential and parliamentary polls by two years. They say they are ready to do all it takes to prevent the postponement of elections.

Bandara’s proposal could be considered a trial balloon floated at the behest of the UNP leadership. However, it is doubtful whether the UNP will dare make an attempt to postpone the upcoming presidential election. There is no constitutional provision for such a course of action. President Ranil Wickremesinghe has reportedly said the presidential election will be held, but why the UNP’s proposal at issue has caused so much concern to the public is understandable.

The UNP has an ugly history of trifling with the people’s franchise; it caused a general election to disappear, so to speak, in 1982, with the help of a heavily-rigged referendum. Old habits are said to die hard. The UNP must be made to regret having entertained the idea of postponing national elections again.

The question however is whether some of the self-proclaimed champions of democracy could be trusted with the task of protecting the people’s franchise, given their sordid past. They are trying to win some brownie points with the public by condemning the UNP, which they once honeymooned with and assisted in suppressing democracy.

Prominent among those who are hauling the UNP over the coals are the JVP/NPP and the SLPP. JVP/NPP Leader Anura Kumara Dissanayake, MP, has declared that his party will never allow the UNP to postpone elections. Amusingly, the SLPP, too, has jumped on the bandwagon; its National Organiser, Namal Rajapaksa, has said his party is ready to go to any extent to defeat the UNP’s move to postpone elections. He has claimed that under the Rajapaksa governments, elections were never delayed. These politicians seem to think Sri Lankans have drunk from the Lethe (‘River of Forgetfulness’) or are a bunch of fools.

Both Namal and Anura apparently have a very low opinion of public intelligence. The SLPP has postponed the Local Government (LG) elections twice. First, it put off the mini polls on President Gotabaya Rajapaksa’s watch in early 2022, unable to face the public; the second postponement of the LG polls came under President Wickremesinghe, who audaciously claimed there were no funds for elections. The SLPP endorsed his position. What moral right does the SLPP have to condemn the UNP for stifling democracy while helping President Wickremesinghe make draconian laws? The Rajapaksas are running with the public and hunting with the UNP, in a manner of speaking.

The JVP, which has taken the moral high ground, unflinchingly helped the UNP-led Yahapalana government postpone the Provincial Council (PC) elections. It voted for amending the PC Elections Act for that purpose in 2017. What Parliament passed became a textbook example of the proverbial Christmas tree bill, given the sheer number of riders; the final draft contained more additional sections than the original text due to extensive committee-stage revisions effected by the Yahapalana government to bypass judicial review. The TNA, the UNP, the UPFA including its dissidents, the SLMC, etc., voted for that obnoxious Bill. The SJB politicians and their SLPP counterparts were in the UNP and the UPFA, respectively, at the time.

The SLFP postponed a general election in 1975 by two years, creating an extremely bad precedent, which the UNP followed eight years later. The JVP committed heinous crimes in a bid to sabotage elections in the late 1980s. Its sparrow units murdered people and/or cut off their hands for voting. Those brave men and women who sacrificed their lives to save democracy have been forgotten, but the criminals who were responsible for heinous crimes against them are commemorated every year! The JVP’s spree of violence aimed at scuttling elections in the late 1980s stood the UNP in good stead as it created conditions for widespread rigging, which helped extend the UNP’s undemocratic rule.

There is no gainsaying that the UNP deserves all the bashing it receives, and must be prevented from suppressing democracy, but its critics are no paragons of virtue, as can be seen from their ruthless attacks on democracy or contribution thereto in the past or even at present. No wonder anti-politics is on the rise with public resentment welling up. The least that the self-styled defenders of democracy could do to assuage public anger is to apologise for their sins and seek forgiveness.

Hypocrites as democrats

Full and proper implementation of the 13th Amendment of the constitution. Appropriate devolution arrangements for the Muslims and upcountry Tamils.
The postponement of Provincial Council and Local government elections by the government is anti-democratic and denial of fundamental rights of the people. We demand immediate elections for these institutions. We call upon the government to make appropriate constitutional change that ensures to prevent recurrence of this in the future.
Provincial council system, meaningful devolution to provinces, and holding elections regularly according to the constitution are essential to ensure
democratic structures in Sri Lanka. It also accelerates the economic development at the periphery. SDPT will endeavour to work with all democratic
parties, social and political activists in Sri Lanka to campaign for regular elections for all provinces.
SDPT will forge relationships and engage in united actions with all progressive and democratic parties in Srilanka working amongst the Tamil, Sinhala, Muslim, and Upcountry communities with the following objectives. Strengthening the Provincial governance, calling for the social and democratic rights for all communities, and to oppose any efforts that undermines the rights of the minority communities by the government and Sinhala and Tamil chauvinist parties.
Prevention of Terrorism act which is in place for the last 46 years and should be abolished forthwith. We will also oppose similar acts in the future. Calling for the immediate release of all the political prisoners.
The plantation workers who contributed immensely to the economy for the last two centuries still has no right to lands, economic security or even a postal address. Government should grant lands to these people without delay, so that they can build their lives independently.
There should be constitutional guarantees to ensure that Sri Lanka is a multi-ethnic, multi -cultural and a multi-religious nation. It should not be a threat to any communities.
The government’s priorities should be to guarantee that the basic need of every citizen is available at affordable prices. Education and health services should remain public service. Privatisation of these essential services will lead to the denial of the fundamental rights of vast majority of the people. There should be adequate welfare provision for the unemployed and the vulnerable sections of the society,
The government should make it a priority to provide satisfactory social security to all working people in the agriculture, industrial and fisheries sectors.
Government institutions and religious entities are engaged in a drive to acquire vast amounts of lands sometimes using security forces which is threatening the very existence and deprive the local people of economic opportunities. This land grab program particularly in the Northern and Eastern provinces should stop forthwith.
Disproportionate presence and appropriation of vast lands by the security forces is a major cause for concern in the Northern and Eastern Provinces. This causes unwarranted suspicions, frustration, and unease amongst the local people. This is also impacting the community relations and a drain in the economy. We urge the government to take necessary measures to reduce the number of personals.
The issue of disappeared persons during the long war continue to cause immense distress to the families of the victims. A closure on this issue is
essential for the reconciliation process. We call for appropriate legislative and institutional mechanisms to prevent such violations in the future.
Drug abuse is increasing in the recent past and destroying our social fabric. Measures need to be taken to increase the awareness in the community and special law and order measures needs to be taken to contain the situation.
Cast discrimination in our society, particularly in the Northern Province is a curse and not less than the apartheid practice in causing misery and denial of rights and dignity. Awareness is needed amongst all communities and work towards building a social movement to combat this vestige of feudal societies of yesteryears. There is also a need for stringent legislations in place to punish those who promote such discrimination.
Women in our society are subjected to various forms of persecution and discrimination. We need a powerful social movement to combat this. There is a need for strengthening the laws relating to equal opportunities and guarantee equal representation in elected assemblies and in state and private sectors.
The increasing number of road accidents and number of deaths are a serious cause for concern. Measures needs to be taken to improve the standards of regulatory arrangements. There is also a need for coordinated actions by the relevant departments, and community organisations.
Sri Lankan people were divided by the racist political forces from all communities. Thirty-year civil war further damaged the ethnic harmony. Since
the end of the war, there has not been any serious effort made to strengthen understanding amongst the communities or establish equality for all
communities. In recent times, there is also an effort by some sections from all communities to instigate religious conflicts. To combat this continuing trend all progressive forces and those who are committed to social equality should work together unitedly.
We acknowledge the aspirations of the people in the “Aragalaya” uprising. It was a movement primarily focussed against the corruption, nepotism in the ruling elite and the economic hardships faced by the people because of these. Despite its limited success the same corrupt ruling political classes retained the reins of the government. If corruption and misuse of powers of the rulers continue, it will be inevitable that there will be uprising again.
In relation to the issue of bottom trawling and other methods of unlawful fishing practices that destroy the fishing stock in that region, should stop forthwith. The disputes between the fishing communities should be addressed through negotiations between all the stake holders. We urge the Tamil Nadu Government to take necessary steps to amicable settlements between fishing communities from both sides of the border. The issues about violating international waters, and the issue of Katchathievu should not be linked to the fishermen’s day to day life issues that will only further complicate the matters.
In the present world order, rich gets richer and vast majority of the population suffer, hunger, poverty, unemployment, trapped in debt, and live in appalling conditions. This world order should be changed, and we aspire to establish a new world order that serves the interests of the suffering majority.
It is a fact that the Palestinians are subjected to aggression and genocide by the Zionist regime. Several thousand Palestinians were killed since 1948. This conflict is affecting the whole of West Asian countries. We believe that the immediate halt of military aggression in Gaza and West bank and the recognition of two state solutions to bring permanent peace to the region.
The earth is fast becoming uninhabitable because of the unresponsible exploitation of the environment by humans. Urgent measures need to be put in
place to protect the environment and there is a need to intensify awareness programs and collective direct actions,
Our party would endeavour to build strong working relationship and work in solidarity with all the people and organisations in the world which strive to
achieve peace, social equality, freedom, liberty, and fraternity, of mankind. We will seek to learn lessons from countries and governments and political parties which have committed to social democratic values and programs.

The-declarations-made-in-the-2024-Congress-of-Social-Democratic-Party-of-Tamils-1 Download

Will the approaching elections be free and fair?

What is the significance of the Election Commission’s (EC) announcement on Thursday that the next presidential election would be held between September 17 and October 16? It is a well-known fact to those who know the relevant Article of the Constitution. It would have only been relevant if the EC had announced the exact date for the election.

Goodies and freebies

Although President Ranil Wickremesinghe has not declared his candidature for the forthcoming Presidential election, it is clear he has commenced his election campaign through vote-catching activities in various sectors, providing the voters with various goodies and freebies.
If we are going by a recent communication by the election monitoring body, the People’s Action for Free and Fair Elections (PAFFREL) to the Elections Commission (EC), what is shameful in this exercise is the President’s party, the United National Party (UNP) using public funds for these activities, abusing the powers of the President’s office.
Apart from the Aswesuma project which apparently comes under the “social safety net” of the economic recovery programme sponsored by the International Monetary Fund (IMF), the government has initiated a plan to distribute 20 kg of rice to 2.7 million low-income families since last month. The ‘Urumaya’ programme initiated by President Ranil Wickremesinghe and already underway aims at providing freehold land rights to two million individuals. The President also announced last November that nearly 50,000 families will be granted ownership of their urban houses in 2024 and the programme was launched last month.
The government has allocated 14 billion rupees for people without homes in the plantation areas, out of which 10 billion rupees had been allocated for 89 Divisional Secretariat areas to construct 10,000 houses, according to Minister Jeevan Thondaman. The Cabinet last month also approved a proposal to provide sanitary napkins free annually to 800,000 poverty-stricken female students studying in the most remote and isolated schools. These may be some of the programmes that the PAFFREL had referred to as vote-buying initiatives.

Misusing state property

The poll monitoring body on May 3 had said that the government was misusing state property at a time when a crucial election is only a few months away. PAFFREL Executive Director, Rohana Hettiarachchi said that these initiatives are costing billions of rupees to the tax payer.
“The government has allocated 10 million rupees for each Divisional Secretariat area for development activities. The funds will be used at the discretion of the governor of the province. The governor is the representative of the President and it is obvious that this is an endeavour aimed at the election. The government spends billions of tax rupees as well as enormous physical and human resources of the state for its election propaganda activities,” he had accused.
The PAFFREL has urged the EC to address these government-run political promotion programmes disguised as development projects, occurring while the Local Government (LG) elections have been called and the Presidential Election is expected to be announced soon. In a letter addressed to EC Chairman R.M.A.L. Ratnayake, the PAFFREL Executive Director pointed out that even though the LG election has been postponed indefinitely, the election has not been cancelled, meaning that the pre-election laws are still in effect.
The EC that met on May 7 had observed the points raised by the PAFFREL and had written to the Secretary to the President, Saman Ekanayake, requesting him not to involve any politician in such development project implementations. However, the President and the leaders of the government are extremely unlikely to take the concerns of the EC into account, since these activities are carried out with the full knowledge of their unfair impact on the results of the forthcoming Presidential election.
However, this is a tricky issue for the Opposition parties. Despite the undue advantage that is to be possibly gained by the two ruling parties, the UNP and the Sri Lanka Podujana Peramuna (SLPP) through these so-called development and relief programmes being very clear, their opposition to the programmes would reflect badly on them. However, the impact of these programmes might not be so favourable to the ruling parties as happened before, given the realization of corrupt politics by the people through the discourse on the current crisis and the resultant public uprising witnessed in 2022.

Brownie points

Meanwhile, the unending oft-repeated chest-thumping by the President and his party that it was only he who had dared to take over the country when it was facing an unprecedented economic crisis in 2022 and that he has been able to salvage the country economically are also aimed at earning brownie points ahead of the
Presidential election.
It was not a matter of courage or international connections as the President boasted in Parliament on Tuesday that prompted him to take over the premiership when Mahinda Rajapaksa was forced to resign as the Prime Minister on May 9, 2022. But it was the understanding that had been built then between President Gotabaya Rajapaksa and Wickremesinghe that emboldened the latter to grab the opportunity to gain what he failed to gain at the last General election and what he was not sure of gaining in the rest of his lifetime. On the other hand, Gotabaya Rajapaksa too preferred him over others, due to the dealings between Wickremesinghe and Rajapaksas since the beginning of the Yahapalana Government.
Sri Lanka had obtained IMF assistance 16 times before 2022 and for the 17th time President Gotabaya Rajapaksa had already initiated talks with the international lender when the Aragalaya broke out. With the experience in the previous IMF programmes, Wickremesinghe would have known that the country would be able to manage the crisis with the new IMF deal, until at least the next national elections. Thus, he took over.
It must be recalled that not only Wickremesinghe, but also Sajith Premadasa, though with a brief hesitation, did come forward to accept the premiership when Mahinda Rajapaksa humiliatingly bowed down to the countrywide agitations in May 2022, after the attack by his supporters on peaceful protesters in the GotaGoGama in the Galle Face Green. However, President Gotabaya Rajapaksa informed Premadasa that he was too late.

Open challenge

Similarly, NPP leader Anura Kumara Dissanayake in June 2022 threw down an open challenge to President Rajapaksa and Prime Minister Wickremesinghe to make way for his party which he said would run the government with the assistance of a 15-member Cabinet which would be appointed from the existing Parliament. It must also be recalled that Dullas Alahapperuma contested the Presidential election held in Parliament on July 20, 2022 amidst the crisis. Only the SLPP among the main political groups did not dare to take over, despite it having the majority power in Parliament.
The current economic respite where there are no queues for fuel and cooking gas is nothing but the direct result of the borrowings of foreign exchange from the IMF, International Financial Corporation (IFC) and the Asian Development Bank (ADB) after the IMF programme was put in place. Ironically, despite him having ruined the economy, it was Gotabaya Rajapaksa who brought the IMF into the scene this time in March 2022, two months before Wickremesinghe joined the government.
Rajapaksa also appointed overseas firms, Clifford Chance and Lazard as legal and financial advisors for the IMF programme in Sri Lanka. Besides, he appointed the Sri Lankan officials such as Central Bank Governor Dr. Nandalal Weerasinghe and Treasury Secretary Mahinda Siriwardena who are authorized to deal with IMF officials. In short, it was a machinery that was set up by Rajapaksa that is in
operation now.
However, we are not yet out of the woods. The IMF would only assist the country in managing the current financial crisis temporarily through its reforms and facilitation of obtaining foreign debts. It is up to the Sri Lankan leaders to find ways and means to create an export-oriented economy that would help reduce external borrowings and repay the existing and future loans, averting a future crisis. Nevertheless, only time will tell if the government’s propaganda machine can gradually take over the intelligence of the masses.

https://www.dailymirror.lk/opinion/Will-the-approaching-elections-be-free-and-fair/172-282337

EC writes to Prez Secy. on LG polls

Says holding polls the answer, not community advisory comms., to oversee LG dev. projects
SJB backs same & warns of legal action

The Election Commission (EC) has informed President’s Secretary Saman Ekanayake and the other relevant authorities that it is better to hold the Local Government (LG) elections than establishing community advisory committees to oversee development projects under LG bodies.

The Government recently announced plans to establish these committees, with the alleged intent of having them oversee development projects within LG bodies. Former LG representatives are also slated to be considered for inclusion as members of these committees.

When contacted by The Daily Morning, EC Chairperson R.M.A.L. Rathnayake mentioned that the EC had examined the issue and sent a letter to the President’s Secretary outlining important considerations for setting up the committees in question.

“We recommended that candidates who have submitted nominations for the LG elections should not be included in these committees, given that the electoral laws are still in effect.” He noted that the need to establish these committees arose because the LG bodies currently lack public representatives due to the delay in holding the LG Elections. As a solution, he said that they (EC) recommended to the relevant authorities, including the President’s Secretary, that holding the LG elections would be a better approach than establishing committees to fill the gap left by the absence of public representatives. When queried as to whom the relevant notification was made, Rathnayake said that it was informed to the President’s Secretary, the Prime Minister’s Secretary, the Provincial Governors and their Secretaries, and the District Secretaries.

The Government’s preparation to establish community advisory committees has raised significant concerns, with the main Parliamentary Opposition, the Samagi Jana Balawegaya (SJB) alleging that the Government plans to conduct their election campaigns disguised as community advisory committees overseeing development projects in LG constituencies.

“This move is an attempt to gain political advantage. Arbitrarily empowering Governors to form these committees could allow them to steer public resources toward their own political ends,” noted SJB and Opposition Leader Sajith Premadasa yesterday (8). “It’s not the first time that we’ve seen this Government manipulate systems to its advantage,” he added, referencing a previous effort where power was prepared to be given to the former Mayors and Chairpersons of LG bodies — a strategy that he claimed was eventually withdrawn after legal challenges.

Premadasa also questioned the true purpose of these committees, querying as to why their objectives could not be met through existing regional mechanisms like Divisional and District Secretariats, and District Coordination Committees. He also said that the SJB would legally challenge the establishment of these committees, raising concerns that candidates who had submitted nominations for the LG elections could be chosen to fill these committees’ roles.

The LG elections were initially set for March 2023, but were delayed because the Finance, Economic Stabilisation, and National Policies Ministry and the General Treasury did not release the necessary funds. The EC rescheduled the elections to April 2023, but the funding issue persisted, resulting in the indefinite postponement of the LG elections.

https://lankafocus.org/wp-admin/post.php?post=2149&action=elementor

The ‘due process’ clash of the law

03 May 2024 | BY Buddhika Samaraweera

Private/unofficial bar lawyers & the Public Security Min. exchange salvos over the ‘Yukthiya’s’ ‘wayward’ ‘mission’

In a landscape fraught with tension, a clash has emerged between the Public Security Minister Tiran Alles and the Bar Association of Sri Lanka (BASL) over the controversial ‘Yukthiya’ (Justice) anti-drug and anti-organised crime operation.

The BASL contends that the said operation has veered off course, with due legal procedures often disregarded, while Minister Alles refutes these claims, accusing the BASL of shielding criminals under the guise of defending justice. This conflict has stirred public opinion, with legal professionals insisting that rather than condemning lawyers for representing suspects, Alles should focus on bolstering Police investigations to ensure that justice is served without infringing on civil liberties.

Following directives from Alles and the Inspector General of Police (IGP) Deshabandu Tennakoon, the ‘Yukthiya’ operation was initiated to eradicate drug trafficking and organised crime activities across Sri Lanka. The operation, supported by the Special Task Force (STF) and the Army, has spanned multiple Provinces, with a focus on the Western and Southern Provinces. The result has been the arrest of thousands of suspects for drug related offences and other organised criminal activities during extensive raids. This large-scale crackdown represents one of the most talked-about efforts in recent years to combat organised crime and the drug menace in the country.

The BASL has consistently voiced its critique of the ‘Yukthiya’ operation, stressing the importance of conducting such crackdowns within the boundaries of the due legal process. In contrast, Alles has been defending the operation, asserting that it complies with all the legal requirements.

The conflict had somewhat faded into the background for a few weeks, but a recent remark by Alles ignited the flames once more. His statement that “eliminating criminals is not a sin” and advice to the law enforcement officers “not to be afraid to use their weapons to do the right thing” stirred a strong response from the BASL. Reports have then emerged suggesting that the Public Security Ministry plans to publicly disclose the names of lawyers who represent criminals and drug traffickers in courts. The proposed move has raised significant concerns within the legal community, with many seeing it as an attempt to intimidate or undermine their role. This Ministry has since denied plans for such an exposé.

Speaking to The Daily Morning, attorney Thineth Korasagalla described the nuanced framework of justice, pointing out that there are three distinct types of decisions: those from the society, those from the Judiciary, and those from nature. He highlighted that social judgement, which stands at the centre of much public discourse, is not always accurate. “Society’s decision is not always correct. There are hundreds of events which have been proven to be wrong through judicial proceedings.” To avoid miscarriages of justice, he emphasised that proper investigation is crucial. “Weak investigations could lead to even hardened criminals and drug dealers walking free. The Minister’s (Alles) focus should be to ensure thorough investigations that bring the most guilty to trial.” He also emphasised that a lawyer representing a suspect does not impede justice, adding that it is the quality of the investigation that ultimately determines the outcome. “The establishment of charges against a suspect through proper and evidence based investigations will ensure that the accused are punished, regardless of which lawyer represents them.”

When contacted by The Daily Morning, attorney Swasthika Arulingam who is also an activist vocal on women’s rights, human rights, and politics, said that a Minister making remarks suggesting that lawyers are protecting drug traffickers and criminals, could have grave consequences on judicial proceedings and the professional freedom of attorneys. “What he (Alles) is implying is that the Police can use extreme measures on the ground. If the Police believe that someone is a criminal, they could even shoot them. If someone is suspected to be a drug trafficker or a criminal, they don’t have any rights, and should not even be represented by a lawyer in courts. This is what he implies.”

She said that such statements may foster a social psyche that justifies violence and denies the suspects their rights. “When such a psyche is there, even if an innocent is framed as a drug trafficker or criminal, justice is very hard to come by. When an attorney is defending them, the Minister (Alles) is making them (lawyers) criminals too. It is a worrying situation.” Arulingam underscored that this mindset could have a chilling effect not only within the courts but also in the society at large. “Simply because someone is arrested by the Police, it does not mean that they are criminals as it needs to be proven in court,” she said, emphasising that statements like these could make it harder for suspects to get a fair trial. She warned that statements encouraging the usage of weapons could embolden the Police to engage in torture, knowing that the higher-ups’ rhetoric offer them protection. “If lawyers are viewed as criminals themselves for defending the suspects, the entire legal process is undermined. It creates an environment where justice is difficult to achieve both in and out of courts.”

She added that the Government is attempting to put a certain class of people away from society, without taking action to provide them the opportunity to have a better life. “When it comes to drug trafficking, the people are getting addicted to drugs because economic structures have been dispossessing them over the past. They don’t have work and they are hungry. When someone comes and gives them drugs, they use it. The Government then tries to put them away from society, which is wrong.”

Another lawyer said that the scales of justice would turn unfavourable against those who are accused, leaving them vulnerable to the full weight of the State’s prosecutorial power, if the protection of legal representation is absent or discouraged. “This imbalance could result in suspects being denied a fair hearing, where their rights are not properly defended or their perspective is inadequately represented. As a consequence, there is a heightened risk of wrongful convictions, where innocent people might be punished for crimes that they didn’t commit.” When suspects are not properly represented, he said that it would open the door to coercive practices, such as forced confessions or mistreatment by the law enforcement agencies. “Such outcomes do more than harm the individuals involved as they erode public trust in the entire legal system, in turn creating a perception that justice is arbitrary or biassed.”

Commenting on the matter, attorney Samantha Premachandra said that Sri Lanka’s legal system is fundamentally adversarial, and that at its core lies the presumption of innocence. “Anyone accused of a crime is presumed innocent, and that presumption can only be overturned through a court judgement.” He emphasised that every citizen, regardless of the accusation against them, has the right to legal representation in court by a lawyer. “If anyone tries to undermine or discourage that right, it is not just the accused who suffer; it impacts the entire system of justice,” he warned. He said that an attack on this foundational principle could have far-reaching implications. “If that right is taken away or altered, it could affect everyone. Today, it is alleged drug traffickers and criminals, tomorrow, it could be us.”

The lawyers’ remarks come in the wake of the BASL recently calling for the removal of Alles following his controversial remarks at the Katukurunda STF training camp’s passing out parade. Alles reportedly told the media, “Eliminating criminals from the country is not a sin,” and said that they should not be afraid to use weapons to do the right thing. The BASL condemned the statement, arguing that it violates the Constitution and the criminal justice system’s principles, emphasising that justice should be administered by courts through the due process. Voicing concern over recent increases in extrajudicial killings, custodial deaths, and Police torture, they suggested that Alles’ comments could further encourage such illegal actions. They also urged President Ranil Wickremesinghe to remove Alles as the Public Security Minister, describing his remarks as “irresponsible, arbitrary, and misleading.”

Alles was not available for comment.

When contacted by The Daily Morning, the Secretary to the Public Security Ministry, Viyani Gunathilaka said that he cannot comment on the matter as it was the Minister (Alles) who had made comments concerning the BASL. He further said that the Ministry had no plan to publicise the names of lawyers who appear for suspects in drug and crime related cases in courts, as suggested by recent media reports.

As the debate continues, the BASL’s call for due process and legal integrity serves as a reminder that the path to justice must be rooted in legal frameworks that protect the rights of all individuals, regardless of the accusations against them. The Ministry’s assurance that it has no plans to publicise the names of lawyers representing suspects offers a degree of relief, but, the broader issue of maintaining a fair and just legal system remains at the forefront of the public discourse.

https://www.themorning.lk/articles/g3TxCOfM4ZgTYTcRQaI7

Charitha warns of impending constitutional crisis

Accuses President of treating Constitutional Council as an agency under his authority
Emphasises necessity for an extensive discussion on issue within Sri Lankan society
Says action of Govt. could lead to a crisis in governance and it must be stopped

Freedom People’s Congress (FPC) member and parliamentarian Prof. Charitha Herath issued a warning yesterday, expressing concern about an impending constitutional crisis in the country.

The MP said that in each constitutional amendment since the 17th amendment to the constitution, there has been deliberation on limiting the powers of the Executive, ultimately leading to the establishment of the Constitutional Council under the 21st Amendment to the Constitution.

Commenting on the necessary composition of the Constitutional Council, Herath pointed out that, at present, members from opposition parties, excluding the primary opposition party, have yet to be appointed to the council.

He observed that although President Ranil Wickremesinghe has put forward the President of the Court of Appeal for a vacant position in the Supreme Court, there is a divided opinion within the Constitutional Council.

“Consequently, the President addressed the issue in a recent parliamentary statement, expressing a perception that the Constitutional Council was established to assist the Executive in its functions,” he remarked.

Highlighting opposition from others, Herath emphasised the necessity for an extensive discussion on this issue within Sri Lankan society.

“He not only conveyed these sentiments but also suggested the formation of a parliamentary select committee to investigate the actions of the Constitutional Council. Additionally, a media report has disclosed that the President has suspended the printing of a gazette pertaining to a 40-page manual outlining the procedures of the Constitutional Council. The potential appointment of a select committee further reinforces my belief that there are indications of an imminent constitutional crisis,” he said.

Herath noted that the Constitutional Council was proposed by the United National Party led by Wickremesinghe and the common belief is that the Council was set up by UNP-led Governments to give some power back to the Parliament from the Executive.

“However the President has deviated from this and is acting in a manner treating the Council as an agency under his authority. This could result in a crisis in governance. This must be stopped,” the MP said.

https://www.ft.lk/news/Charitha-warns-of-impending-constitutional-crisis/56-755977

Harsha exposes flaws in 2024 Budget in hard hitting critique

Alleges blatant violation of the Fiscal Management Responsibility Act in Budget 2024, with Budget deficit exceeding 5%
Says staggering increase in poverty affecting 3 to 7 million people, highlighting a critical issue overlooked in Budget
Critiques Govt.’s “Oxymoron” economic approach and absence of a comprehensive plan for making Sri Lanka an advanced economy by 2048
Says tax burden is excessively high, risking a decline in consumption, business failures, and an exodus of professionals
Reveals 18% VAT items list; calls it unfair; alleges COL allowance hike an eyewash
Expresses gratitude to petitioners who played pivotal role in recent Supreme Court verdict on economic crimes
Calls for a parliamentary discussion on civic rights of those found guilty of bankrupting Sri Lanka
Proposes robust measures to combat corruption, including the implementation of STAR program
Emphasises reservations regarding Macro-linked Bond (MLB) proposal, says it raises questions about potential benefits favouring external investors over provident fund workers during debt restructuring
Argues a 30% haircut is inadequate for ensuring debt sustainability, underscoring need for a more comprehensive and equitable approach
Says urgency for transparency, accountability, and a visionary approach for a new economic trajectory

Ina compelling address toParliament, main Opposition Samagi Jana Balawegaya (SJB) MP Dr. Harsha de Silva delivered a comprehensive critique of Budget 2024, shedding light on critical issues that demand urgent attention.

De Silva, who is also the Committee on Public Finance (COPF) Chairman, meticulously outlined the shortcomings and concerns surrounding the economic policies proposed in the budget, providing a stark contrast to the optimistic claims made by the Government.

Dr. de Silva commenced by pointing out a blatant violation of the Fiscal Management Responsibility Act (FMRA) within Budget 2024, citing an alarming budget deficit exceeding 5%.

He substantiated his concerns by referencing reports from LirneAsia, the World Bank, and UNDP, revealing a staggering increase in poverty affecting 3 to 7 million people. The multi-dimensional vulnerabilities highlighted by UNDP underscored the severity of the crisis, with over 50% of those affected categorised as multidimensionally poor.

De Silva expressed gratitude to petitioners who played a pivotal role in the recent Supreme Court verdict on economic crimes. He emphasised that the court›s rigorous discussion identified key figures, including Mahinda Rajapaksa, Gotabaya Rajapaksa, Basil Rajapaksa, Ajith Nivard Cabraal, and Dr. P.B. Jayasundara et al, as responsible for the economic downturn, pushing over 4 million people into poverty. He called for a parliamentary discussion on the civic rights of those found guilty of bankrupting Sri Lanka.

Contrary to the President›s claims of stabilised inflation and economic equilibrium, de Silva cited CBSL former Deputy Governor W.A. Wijewardene›s statistics. The cost of living for a family of four, he revealed, had surged from Rs. 91,880 in January 2021 to Rs. 175,490, illustrating a 91% increase in the last two years.

Labelling the current Government as an «Oxymoron,» SJB MP drew a parallel to Shakespeare›s Romeo & Juliet. In this case, ‘being together is such a sweet sorrow’. He raised questions about the legitimacy of the Government›s economic vision. MP Harsha presented a scientific analysis of the growth targets set by the Government. To achieve advanced economic status by 2048, he highlighted the necessity of a growth rate of 6.4% from 2027 to 2048. He challenged alternative claims, stating that even growing at 3% would delay reaching advanced economy status until 2068.

De Silva dissected Budget 2024, emphasising three critical pillars for Sri Lanka›s recovery: eradicating corruption, creating economic opportunities, and ensuring social equity. The seasoned politician delved into each point, offering a pragmatic assessment and proposing viable alternatives.

Need to combat corruption

He underscored the need for robust measures to combat corruption across various sectors. He criticised the absence of tangible anti-corruption initiatives, citing examples like the cricket scandal, sugar tax scam, and fraudulent activities in the liquor industry. The SJB parliamentarian questioned the Government’s inaction and proposed the implementation of the Stolen Assets Recovery (STAR) program and the establishment of an independent prosecutor’s office, as outlined in the SJB blueprint.

Moving to the second point, de Silva highlighted the importance of creating economic opportunities for youth in rural areas, empowering entrepreneurs, supporting small and medium businesses, and ensuring fair prices for farmers. He argued that eradicating corruption alone is insufficient and advocated for a broader economic vision.

In his exploration of the third key aspect, the SJB MP shed light on the complexities of fiscal consolidation and expenditure reduction, emphasising the profound implications for social equity. Despite the President’s focal point on revenue-based fiscal consolidation, concerns surfaced regarding the comparatively meagre attention given to reducing overall expenditure.

He acknowledged challenges in curtailing expenditure, particularly in vital sectors like Health and Education, allocated a modest 1.7% of GDP. However, he expressed reservations about funding directed to loss-making SOEs, exemplified by SriLankan Airlines, which sought Rs. 110 billion to settle liabilities to Ceylon Petroleum Corporation (CPC) recently. This raises concerns about fairness in comparison to the total expected revenue from PAYE of Rs. 100 billion annually or essential needs like children’s uniforms, a significant 27 times less.

Criticism was directed toward the extension of tax breaks, citing the Strategic Development Projects (SDP) Act and recent Supreme Court rulings on preferential tax treatment for associates, resulting in substantial losses to the Treasury.

He said a historical lens revealed a stark decline in Government revenue from 20-21% of GDP in 1994 to a current low of 8%, framing a narrative of economic transformation. The disparity between IMF revenue targets (15% of GDP by 2026) and the anticipated 10.2% for 2023 was underscored, calling for a substantial 2.5% increase, equivalent to Rs. 1229 billion.

Fairness and transparency for tax changes

However, concerns were articulated regarding proposed tax changes, especially their disproportionate impact on citizens through heightened consumption taxes. For example, the VAT hike from 15 to 18% and the removal of VAT exemptions for items like petrol, diesel, gas, and fertiliser could drive inflation up and consumption down. He called for fairness and transparency advocating for the disclosure of tax changes to Parliament, ensuring public awareness amid talks of Government giveaways.

De Silva proposed the Government implement his revised PAYE tax structure, significantly reducing the burden on professionals while still achieving the expected income. The MP lamented the lack of response from the Ministry of Finance to their proposal, contrasting it with the President’s call for cooperation.

Rallying cry for comprehensive reforms

In a dramatic climax, de Silva concluded that the proposed tax burden is excessively high, risking a decline in consumption, business failures, and an exodus of professionals from Sri Lanka.

His impassioned critique serves as a rallying cry for comprehensive reforms, emphasising the urgency of addressing corruption, fostering economic growth, and ensuring social justice to pave the way for Sri Lanka’s resurgence.

Acknowledging the Government’s efforts to broaden the tax net, de Silva highlighted initiatives such as the requirement for a Tax Identification Number (TIN) to open a bank account, obtain building permits, register vehicles, or renew revenue licence.

These measures, while commendable, de Silva said set the stage for a broader conversation about Sri Lanka’s economic trajectory, moving beyond stability to growth.

He stressed the imperative of transcending mere economic stability and transitioning towards sustainable growth. He referenced the International Monetary Fund’s (IMF) expectation for Sri Lanka to achieve debt sustainability by 2027, emphasising the challenges posed by a projected debt-to-GDP ratio of 104%, significantly exceeding the internationally accepted norm of 60%.

Expressing concern over the staggering debt-to-GDP ratio, de Silva underscored the potential ramifications, particularly the substantial interest payments. With interest payments for 2024 reaching a staggering Rs. 2,651 billion against revenue of Rs. 4,127 billion, he pointed out that Sri Lanka could become the world’s top contributor to interest payments relative to Government revenue.

Raising pertinent questions, the SJB MP inquired about the status of discussions with the Exim Bank of China and the agreement of the Paris Club, questioning the transparency of the process. He delved into the controversial Macro-linked Bond (MLB) proposal, expressing reservations about its potential benefits favouring external investors over the workers in provident funds who bore the majority of the burden during debt restructuring.

He passionately urged authorities not to bind future administrations to what he perceived as an unjust deal with International Sovereign Bond (ISB) holders. Furthermore, he reiterated that a 30% haircut is insufficient for debt sustainability. He questioned the beneficiaries of specific bonds, including the $500 million bond, and sought clarity on the ownership of Hamilton Reserve bonds amounting to $250 million. The recent Supreme Court decision added further complexity, prompting Harsha to call for transparency in navigating the fiscal challenges.

Expressing concerns about the stability of the banking system, de Silva questioned the lack of information on the promised asset quality review by the President. He delved into the Budget’s allocation of Rs. 450 billion for bank recapitalisation in 2025, emphasising the President’s acknowledgment that this amount may be insufficient.

The proposed 20% privatisation of the Bank of Ceylon (BOC) and People’s Bank was commended as a move towards stability and accountability, free from political influence.

De Silva painted a challenging picture for Sri Lanka’s future debt issuance, projecting a debt of $ 68 billion by 2027. He raised critical questions about sourcing the required funds through taxes and the conversion of tax revenue into dollars. Addressing this, he emphasised the necessity of increasing forex reserves and advocated for a growth-oriented production economy.

Need for mindset shift to achieve higher growth rates

In a sharp critique of the current Government’s approach, the SJB MP highlighted the need for a mindset shift to achieve higher growth rates. He underlined the importance of breaking down barriers and reducing red tape to connect with global production networks. Referencing opposition to the Sri Lanka/Singapore Free Trade Agreement (FTA) by certain political entities, he advocated for an open-minded approach to foster economic growth.

Drawing inspiration from former President J.R. Jayewardene’s initiatives in the 1970s, de Silva emphasised the role of investments in building capital, especially in a country with low savings. He urged the creation of an environment conducive to entrepreneurs, promoting foreign direct investments as a means to fuel economic growth.

He proposed creative solutions such as building wind farms in Mannar and connecting Sri Lanka to India’s grid to earn valuable forex by exporting power to South India. He challenged conventional thinking, advocating for an open mindset in generating forex through innovative and collaborative projects.

De Silva ‘s comprehensive address underscores the intricate challenges facing Sri Lanka’s economic landscape and proposes strategic reforms to navigate the country towards equitable growth. His impassioned plea for transparency, accountability, and a visionary approach serves as a rallying cry for a new economic trajectory.

Sri Lanka’s democracy under siege

lurking shadows of business-politics nexus

In a startling revelation, Sri Lanka’s businessman Dhammika Perera, who aspires to enter the presidential race, has made a striking statement that should raise alarm bells. According to a recent article by K. Sujeewa in “Anidda” newspaper, published on Sunday, October 29, Perera is willing to pay a significant price for votes, boldly stating, “If SLPP vote base ‘Pohottuwa’ rises to 30%, the remaining 20% will be bought over in cash.” This admission sheds light on a disturbing trend in the country’s politics and the potentially dangerous implications for democracy.

Business Tycoons Eyeing the Presidential Arena

Dhammika Perera is not alone in his quest for political power. Another prominent businessman, Dilith Jayaweera, is reportedly gearing up to join the presidential race. However, their affiliations and motives must be scrutinized. Both Perera and Jayaweera are widely seen as loyalists of the Rajapaksa clan, indicating an ongoing attempt by the Rajapaksas to consolidate their power base through unconventional means.
These business tycoons have amassed significant wealth, particularly since the Rajapaksas’ rise to power in 2005. As confirmed by the Auditor General, out of the 8 trillion project loans Sri Lanka received by 2015, only 2 trillion worth of assets can be accounted for. This alarming gap begs the question: what happened to the remaining 6 trillion, and how might it be connected to business figures? Entry of Perera and Jayaweera

Dhammika Perera found his way into Sri Lanka’s Parliament, albeit through unconventional means, using a legislative loophole. Dhammika Perera and Dilith Jayaweera’s role in previous elections and their financial investments in political campaigns cannot be ignored. The question arises: how much did these businessmen contribute to bringing political leaders like Gotabaya Rajapaksa to power?

Business Interests and Political Favours

The Rajapaksas have shown gratitude to businessmen like Dhammika Perera and Dilith Jayaweera by granting them various favours. For instance, Perera was allowed to run a casino business without impediments, and the recent discussion of a casino tax scandal raises concerns about their influence in government circles. Furthermore, Jayaweera’s pharmaceutical company was granted a lucrative monopoly during the COVID-19 pandemic to import antigen test kits, demonstrating the intertwining of business interests and political decisions.

The Call for Accountability

This collusion between businessmen and politicians raises questions about the integrity of Sri Lankan politics. It is imperative that these individuals are held accountable for their actions and that any ill-gotten assets are returned to the public. The need for transparency and justice is paramount.

The Commoditization of Votes

The blatant statement made by Dhammika Perera that he is willing to “buy 20% of the vote in cash” is not only a violation of the Election Law if an election had been declared but also a grave affront to the democratic process. Such remarks reduce the value of the vote to a mere commodity, casting doubt on the integrity of the election system and the politicians involved.

The Transformation of Sri Lankan Politics

The evolution of Sri Lankan politics is evident when comparing politicians from the post-independence era to those who emerged after the 1970s. The latter have relied heavily on financial backing from businessmen to fund their election campaigns. The consequences are far-reaching, as these politicians prioritize personal gain over the welfare of the nation.
Many individuals with questionable backgrounds and vested interests have found their way into Parliament, including those accused of murder and illicit activities. The intertwining of business interests and political power is a concerning trend that needs to be addressed, as it undermines the principles of democracy.

The Decision for Sri Lankan Voters

Sri Lankan voters now face a critical choice: whether to sell their votes to individuals like Dhammika Perera, who see their ballots as commodities or to reject the influence of corrupt businessmen and politicians who have profited at the expense of the nation.

The author is a former Senior Consultant, Sri Lanka Institute of Development Administration (SLIDA). He can be contacted at Shantha323@gmail.com

https://www.dailymirror.lk/opinion/Sri-Lankas-democracy-under-siege/172-270312