Wednesday, May 20, 2020

Sri Lanka Two Nations

http://twonationsoneisland.blogspot.com/-2

Sri Lanka: One Island Two Nations-1

Sunday, May 17, 2020

Tamil youth shot and hospitalised by army soldiers

A Tamil man was hospitalised at the Manthikai Base Hospital, Point Pedro following a gun attack by army soldiers, that left him with several gunshot wounds.

15 May 2020

Pasupathy Anusan, a 22-year old, from Puloly, was shot at his arm and leg, this morning at 1am.

The attack took place in Point Pedro, Jaffna whilst Anusan was travelling on his motorbike.

The leader of the Tamil National People's Front, Gajen Ponnambalam, visited Anusan at the Manthikai Base Hospital.

In preliminary investigations, army soldiers informed the police that they were carrying out a search for a masked assailant who had attacked an army soldier. The army soldier who was guarding in front of Manthikai Base Hospital, Jaffna apparently sustained injuries to his hand after being attacked with stones.

The army soldiers then stated that during their pursuit they flagged down and pulled over Anusan who was travelling on his motorbike and claimed that Anusan ignored them and attempted to get away. They shot him after he failed to stop.

Earlier, the wounded soldier was transferred from the Manthikai Base Hospital to the Palaly Military Hospital.

The Point Pedro police department are currently carrying out investigations regarding the incident

Are we ready for post-COVID digital marketing? (II)

How prepared is Sri Lanka technologically for the new era? (Part 2)

Friday, 15 May 2020

COVID-19 is revolutionising business practices through the transformation of ‘People + Process + Technology’. The most important factor will be ‘People’ rather than Technology, since the Technology already largely exists.

In Part 2 of this series, we examine the readiness, or lack thereof, of technological processes in Sri Lanka’s state and private sector in transforming their commercial operations into digital marketing in the post-COVID era. Data for this analysis was compiled from Globalwebindex.com, Statista.com, and Datareportal.com.

We also recommend that institutions adopt a structured approach toward technological transformation, instead of implementing ad hoc measures. Focusing on the People factor of People-Process-Technology, and examining the challenges faced by Sri Lanka as a case study, the authors have developed a ‘5C Model of Technological Transformation’ that could be utilised by companies and other institutions in the developing world to galvanise their transformation.

They say “necessity is the mother of invention” and in the face of COVID-19 it is a matter of utmost urgency to digitally transform our workplaces. Companies that are able to use technology better to reshape their business models by fast-tracking digital transformation will be best positioned to survive in the post-COVID era.
Lessons learned from early days of COVID
The early weeks of Sri Lanka’s lockdown exposed glaring deficiencies in processes with regard to logistics, communications, law and order, etc. Examples include inability of supermarkets and government agencies to distribute food stocks, despite ample stocks of rice and vegetables in the country; and the chaos surrounding provision of curfew passes.

However, it would not be incorrect to state that many institutions already possessed the technology and did not need to make significant investments in hardware or software. Rather, it was a paucity of knowledge among employees on how to utilise technology and reengineer processes, that led to bottlenecks.
Innovation ecosystem in Sri Lanka
Entrepreneurs are an important instrument for maintaining thriving business environments and economic growth. Innovation and ntrepreneurship are a key issue in Sri Lanka’s National Export Strategy (NES) 2018-2022, which seeks to strengthen the country’s national business environment and increase access to financing for start-ups, among other objectives. The strategy seeks to create a national business environment.

The International Trade Center (ITC) has carried out a network study of institutions assisting entrepreneurs in Sri Lanka to further strengthen Sri Lankan government support for small businesses. However, there were few startups within the Sri Lankan startup ecosystem. One or two prospective startups may be sought by an investor. This is not enough, however, to build a diverse national portfolio.
Enabling ICT environment
As we showed in Part 1 of this series, Sri Lanka presents a tremendous challenge for the adaptation of ICT in general. ICT education is of particular concern. A key factor is the need for modernisation of ICT education, but few schools outside of the major cities possess necessary facilities and teachers. In view of these limitations, it will not be feasible to rapidly provide computer laboratories in schools.

There is also an issue over access to broadband internet throughout the country, which is necessary for educational purposes. In rural areas there are few teachers of ICT. In some cases the reason for ICT adoption was driven more by poorly advised strategies than the country’s requirements, especially in rural Sri Lanka, given the lack of support infrastructures for ICT.

Local politicians, for example, often pledge to provide schools with computers in preparation for elections, but the effectiveness of such strategies is yet to be seen due to a lack of broader support for ICT.
Why we should invest in digital literacy
The shift in workflow brought about by technology has also brought an exponential increase in the demand for digital literacy, the term which refers to the skills needed for participating in a knowledge economy.

For the average worker, what does digital literacy look like? Digital literacy means embracing consumer-oriented technology for business integration and automation such as Salesforce, the leading global CRM or Workato. In reality, a new position has been developed by consumerised company apps: System Admin, who specialises in managing a certain software, or a group of tools, such as the Atlassian Suite. It is mastery of such software that will empower businesses.

There are three approaches to enable the individual to learn and to invest in technology programmes.
Digital literacy creates new opportunities
Technical skills are definite requirements in today’s labour market and will continue as high-tech components become involved in growing numbers of jobs. Even if you don’t work in the technology sector itself, you will probably need to reach a certain degree of digital literacy.

The high level of demand for tech skills is reflected in the mean pay for employment in the technology sector. Even if you don’t want to work as a developer or engineer you can still increase your income capacity by being digitally educated. It might also totally open up a new career direction.
Digital literacy increases efficiency and flexibility
Digital literacy isn’t just an entrance to a more accessible career. It is a way to develop, regardless of your profession, in your current career.
Digital literacy is easily linked with community
In addition to career resources and versatility, digital literacy is a significant benefit to the community. Not only are entire networks built for communication and chat, but growing technology also contributes to robust user communities.
E-readiness factors and related issues in Sri Lanka
Connectivity and technology infrastructure: This measures access to basic fixed and mobile telephony, personal computers and the internet for individuals and businesses. All the characteristics of the level of competition on the telecoms market include affordability, efficiency and reliability

Political stability: How stable are the country’s Executive and Legislative branches of Government? How efficient is the Judiciary?

Consumer and digital adaptation: How prevalent are ecommerce practices? What part of the online retail trade is carried out? How does the Internet use conventional business systems to be revamped and automated? How are businesses helped to develop logistics and electronic payment systems in this effort? What is the level of finance and government funding needed in IT?

Legal and policy: The creation of e-commerce is based on the overall legal structure of a country and on specific legislation regulating internet use. How easy is a new business to register and how secure is privacy, in particular intellectual property, which can easily be the target of digital age piracy? Governments which promote the development of an internet-friendly legal environment are given high marks for policy and compliance.

Social and cultural: To what degree is Sri Lankan society and culture accepting of the revolutionary transformations that will be required to traditional practices in the post-COVID world?

Supporting services: Without intermediaries and auxiliary services, no organisation or industry can operate efficiently. In e-business, consulting, IT, and back office solutions are included.
Laws in Sri Lanka pertaining to digital transactions
It is pertinent to touch upon the readiness of Sri Lanka’s legal regime to facilitate digital transactions and to protect the rights of parties involved in transactions. This is an area which institutions need to be proficient in if they are to utilise digital marketing. Sri Lanka’s legal regime appears well placed in this regard with a range of legislative enactments in place including the following:

Computer Crimes Act, No. 24 of 2007
Payment Devices Frauds Act, No. 30 of 2006
Electronic Transactions Act, No. 19 of 2006
Evidence (Special Provisions) Act , No. 14 of 1995
Information & Communication Technology Act, No. 27 of 2003
Mutual Assistance in Criminal Matters (Amendment) Act, No. 24 of 2018

One notable lacuna in the legal regime relates to data protection. Although a Data Protection Bill has been prepared, it has yet to be approved by Sri Lanka’s Parliament, and it is of paramount importance that this matter be attended to at the earliest possible instance.

In addition, Sri Lanka has a number of statutory institutions that are collectively able to enforce the law in terms of transgressions during digital transactions and in terms of facilitating digital commerce. These include:

Ministry of Digital Infrastructure & Information Technology
Information & Communication Technology Agency (ICTA)
Sri Lanka Computer Emergency Readiness Team (SLCERT)
Cyber Crimes Division of the Sri Lanka Police
Telecommunications Regulatory Commission of Sri Lanka

Golden Triangle
This is a basic holistic model for process improvement known and used for cross verticals (industries) that Sri Lanka must get back to. It is equipped with three key components – People, Process, Technology.

Three reasons why digital transformation is People, not Technology
It require a shift in mindset
When individuals within an enterprise are not interactive, introducing the new technology systems and technologies would accomplish very little. Employees must be able to vary their thoughts about how the business and its clients will achieve success. In addition to acknowledging the positive impact of digital transformation on the workplace, every worker must also embrace the notion that digital technologies entail changes in the way they function.
It requires behaviour change
Employees must adapt their approach to their careers, use data and use modern digital technologies in order for a digital transition to take place. There would be no permanent shift to merely implement new technology because people need the expertise and experience to integrate new technologies into new and already existing workflows.
It requires the support and drive of leaders
The first step in cultural change is understanding that it is people first, and that it is a leader’s job to find ways to involve and motivate their team. Leaders must spot new trends and put together their thoughts in multiple perspectives. They should rapidly bring on board the digitally savvy talent of tomorrow. Leaders must establish collaboration among the team. It is about working relentlessly to break down silos and getting people working together to solve customers’ and the organisation’s issues.
People and the C5 Model of Digital Transformation
The C5 Model of Digital Transformation developed by the authors of this article provides insights into the most critical roles in digital transformation.

Catalyst: The spark within an institution behind the movement to install technology, adopt new processes, and persuade people to accept the new processes.

Connector: Those who are attuned to what is happening, not only in IT but in other business areas as well. They know people and the work that is going on in the institution.

Contender: Those who provide the necessary support. They think objectively about the way forward and do not fear facing the status quo. This is the opposite of those who doubt and block changes.

Contortionist: Someone who can help an organisation to adapt to changes and unexpected turns.

Co-pilot: The path and support that keeps the ship on the right track; remember where we want to go and the road that we decided to take.

The C5 Model is a people transformation strategy that aligns the business strategy (Organisation + Market) and places the employee function firmly at the centre of creating the employee value proposition. The implementation of technology and the transformation of work processes requires the most important ‘People’ factor to be already in place. It requires a change in traditional and antiquated mindsets to ones in which the above five types of persons would be given sufficient importance in order to implement changes to technology and work processes.
Process
Every shop, every office, every factory, is a work process and must be viewed as such. The more modern the work processes, the more cost-effective and efficient an organisation will become. The addition of technology will bear full results only if they are married with work processes that would fully utilise technology.
Technology
The technology exists in abundance for the requirements of post-COVID-19 operations in most industries. However, the ease of implementing such technology requires the ‘People’ element to be fully in tune with and aware of what technology is already available and what processes can be revolutionised by the implementation of new technology.
Conclusion
It is of paramount importance that Sri Lanka’s commercial and state institutions become more firmly focused on the urgent need to empower their People with the relevant knowledge and attitudes; implement simple new Technology; and transform their Processes to become more geared toward digital commerce. This can be described as a global race of survival to become more competitive, where institutions and nations that lag behind may fall by the wayside.

[Dr. Nicholas Ruwan Dias is a Digital Architect at Aegon Asia, based in Kuala Lumpur. He holds a BSC in Computing from the University of Greenwich, Masters in Computer Software Engineering from Staffordshire University and PhD from the University of Malaya. He is completing a second doctorate (DBA) from Universiti Utara Malaysia.]
[Niresh Eliatamby is Chairman of Chaos Theory Ltd., a research based consultancy in Colombo, is an author, and a lecturer in HR/tourism/marketing. He holds an MBA from London Metropolitan University and LL.M. in International Business from Cardiff Metropolitan University.]
(Copyright Nicholas Ruwan Dias and Niresh Eliatamby.)

Intimidation Of Election Commission By Dayasiri Jayasekara & SLFP/SLPP00

By S. Ratnajeevan H. Hoole –MAY 16, 2020

Prof. S. Ratnajeevan H. Hoole

The Financial Times kindly gave space to me to respond to Dayasiri Jayasekara. The article was titled “Dayasiri claims behaviour of EC member raises impartiality issues.”

In the FT issue of 13 May, 2020, it is said that the Sri Lanka Nidahas Podujana Sandanaya (SLNPS) – the coalition including the Sri Lanka Podujana Peramuna (SLPP) and the Sri Lanka Freedom Party (SLFP), through SLNPS National Organiser and SLFP General Secretary Dayasiri Jayasekara, speaking from the SLPP head office – strongly criticised the Elections Commission as partisan, and threatened to take action against some of its members when the new Parliament is convened. This is electoral thuggery at its worst.

In particular Jayasekara named me and accused me of levelling baseless allegations against his members in the north. He said SLNPS offices in the north were removed by the EC after I complained about them. However, he claimed, the offices of TNA were not removed. “We do not see any problem of TNA having an office in the north but the questionable move was why Hoole decided to remove only the SLNPS office in the north,” he added.

He is bluffing and bullying. The issue of offices being removed concerns Mr. Angajan Ramanathan’s office in the Kachcheri. He had it as a Coordinator’s Office but after Parliament was dissolved, he had to vacate. The order to vacate had nothing to do with me but the complaints came from many sources, including Jayasekera’s ally, the EPDP. EC neutrally is not about looking the other way when election laws are violated by anyone.

During election time, Angajan Ramanathan cannot use government property. There was no issue of removing TNA offices because the TNA was not unlawfully using government offices for electioneering. As a politician representing the people, it is important to be accurate in statements. Readers in judging Jayasekera’s charges against me must remember that according to the International Crisis Group, “Dayasiri Jayasekara, made a public intervention to arrange bail for several Sinhalese arrested for the rioting” following the 21 April 2019 massacres.

Says an activist that witnesses place Dayasiri Jayasekera at the police station during curfew hours getting riotous thugs released on bail, and says that many Muslims who voted for him expressed astounding regret because of what they now regard as his anti-Muslim phobia.

And now Jayasekara threatens to remove me as an Election Commission Member for doing my work as soon as the elections are over? Recently Prof. G.L. Peiris has accused a member of the Election Commission of being a saboteur (Island, 2 March, coinciding with the dissolution of parliament). It seems that there are forces threatening EC Members with sacking if they do not obey these forces. EC Members’ work is, among other things, to prevent election cheating.

For instance, Angajan Ramanathan’s followers have been diverting donations coming to the Jaffna Kachcheri for those adversely affected by the Pandemic. These are diverted by high Kachcheri Officials to Angajan Ramanathan. The above photo shows Angajan’s Vadamaraatchi Youth Front leader handing out these donated goods from the GS’s premises. The table stock-taking identity, KVD/J/350/04, shows the venue to be the GS’s office. The photo is from his Youth Front’s Facebook, but was removed as soon as the press got wind. When several complaints came to me about wrongfully diverted donations, I passed them on to the Commission. A high-level five-man inquiry team is in Jaffna now.

Now Angajan Ramanathan says he is sending me a letter of demand for Rs. 500 million for besmirching his “good name.” Good name? In the last LG elections, the Point Pedro Government clinic gave out medicines in sachets claiming to be from Angajan Ramanthan’s Youth Front, the same one now claiming to give relief supplies. In that instance, no action was taken. There are confirmed stories about EPDP Yogeswary Patkunarajah the Mayoress of Jaffna being chased with a pistol from which several bullets were fired. This was during the 2010 parliamentary elections. The case is ongoing. During the 2013 provincial elections, a close family member of his was charged with threatening TNA candidate Thambirasa using a pistol. That is also an ongoing police case. Jayasekera has strange bedfellows from thugs who attacked Muslims to those allegedly going about brandishing pistols at mayors of Jaffna.

Whither Sri Lanka if it’s a Depression? A more troubling (and probably more likely) scenario

Kumar David-May 16, 2020, 1:01 pm

There has been a flurry of articles, some excellent, others good in the domestic and global Lanka-oriented electronic media regarding the predicament, outlook and recipes for the future of the economy. Names that readily spring to mind are Nimal Sanderatne, W A Wijewardena, Sirimal Abeyratne and Ranga Jayasuriya who write regularly, and one-off pieces including Bilesha Weeraratne, Vagisha Gunasekera, Himan Punchihewa, Andrew Sheng and Asif M. Zaman. Most important by far was an interview with Central Bank Governor W.D. Lakshman in the Daily Mirror on 14 May. There are other contributions, too many to mention, about the way forward, economic restructuring, paradigm shifts and reorganisation.

Local writers focus, naturally, on the economic fallout from the lockdown, curfew and disruption and briefly or only in passing mention that the global economic environment will be grim for the next 06, 12, or 18, or god knows how many months. Solutions offered in these early days, understandably, are generalities: aggressive, transformational, new-normal, the E-way, systemic change, digital, work-from-home, the gig-economy, prioritise foreign exchange, solve the insoluble (sic!) debt stranglehold etc. Always the external or global economic environment is given only light mention - except Bilesha Weeraratne’s focus on foreign worker remittances which is not quite what I want to touch on in today’s column.

My proposition, at least for arguments sake today, is that a global depression, not a mere recession lasting two or three quarters, is looming. It’s not going to be a tsunami or a hurricane, not even Category 5; it’s going to shake the world to its foundations over the next three to five+ years, if not longer time span. George Friedman has described the difference between the two, better than I can, and here is what he says. I have padded it quite a bit and "improved" it by inserting specific relations to capitalist political-economy.

George Friedman: Recessions and Depressions; The key differences

Recessions are a painful but necessary part of the capitalist business cycle. They cull weaker businesses and shift capital and labour to better uses. Usually they last for two to four quarters.

Depressions are nurtured by capitalism’s endogenous, that is natural progression and long-waves of evolution, but triggered (catalysed) by exogenous forces such as wars or disease.

Depressions are always multi-national; recessions not necessarily so.

The measure of the pain of a depression is the extent to which it destroys society, creates refugees and engenders migration within or between countries. It extinguishes hopes and dreams.

The last US depression in the 1930s arose from war and was resolved by war.

Depressions create desperate people hungry for everything, especially hope for a future.

The coronavirus has similarities to war, such as the state mobilising people and diverting them from work. WW2 diverted the people of Europe and America into the military.

The world doesn’t go back to what it was after a depression. A mild one will change people’s dreams, but they will at least have some. World wars, however, kill tens of millions.

How do the odds look that in the next three to five years global capitalism will suffer a devastating shock; something for worse than what it is passing through right now in Q2 2020? If you are the type that keeps in touch with the Financial Times (UK), the Economist magazine, NY Times and such like, what I call apex journals of the class enemy, then you could not have failed to notice that the consensus is that the future will be very troubling. Quantitative Easing (QE) driven by MMT (Modern Monetary Theory) says "Print, print, print" flood the world with money; this is the approach governments and central banks have chosen. This is the only way they can save banks, corporations and capitalism itself from going to the wall. And save some jobs and stave off social rebellion. Are they mad to plan the creation of $18 trillion of global debt? Don’t they see that down this road lie the great avalanches and deep canyons? Of course they see; but there is no other way to bail-out the prevailing global order. Society and the state must save the system; socialise costs, having all these decades privatised gains.

The web, the media, the Financial Times, the Economist, the IMF, the EU, Goldman, Fund Managers and pundits have assailed us with analysis and forecasts. The consensus is that 2020 will be annus horribilis. A few stick out their necks with predictions of a V-shaped recovery after two bad quarters, but most have their feet parked firmly on terra-firma. We will be lucky to stave off a prolonged and socially disruptive global economic downturn, a depression - US and Western economies will not stabilise in 2021. The reason for pessimism is precisely the actions taken by governments and central banks as a ‘rescue’ measure – printing money like tabloid newspapers, QE that is multiplying sovereign and corporate debt by trillions of dollars and helicopter money. Print-all-you-can MMT! Global finance capital is on a trajectory foredoomed to become an astronomical debt-trap from which it has no escape.

Harsha Sirisena says: "Apologists for QE point to the absence of goods price inflation to date (ignoring massive asset price inflation) but this is due to the one-off effect of hundreds of millions of rural Chinese flooding the cities to make China the workshop of the world. This effect has played out and with ongoing de-globalisation, it is only a matter of time before inflation reappears. I have no doubt we will see a repeat of the great inflation (1965-1982) over the next decade".

If it turns into a Global Depression

employment will be devastated in Sri Lanka

Staying with my premise that we are likely to see an immense global economic crisis in the coming years, that is a depression, how will the analyses of local commentators that I adverted to in my opening para be affected or altered? I envisage three big differences if my assumption of a deep global crisis holds true. The first, we are likely to see a massive increase in unemployment in several sectors, especially those manufacturing apparel for Western markets and hotels & tourism. Tourism cannot recover unless and until the global economy recovers. Chronic unemployment will be the most socially disruptive of all the effects that a sustained global slump will have on Sri Lanka. The second negative effect that we will suffer is that if oil prices stay depressed, then our Middle East dependent remittance economy will suffer a setback. Thirdly and sadly the many constructive suggestions offered by local commentators that I very briefly enumerated in my second paragraph will mostly end up pie in the sky. All this makes for a scary scenario. Don’t blame me, I am only the messenger reading what is written in the leaves; I did not invent global capitalism or its endemic crisis, nor am I the bat that brought corona.

Does this mean that we remain frozen in passivity with hands folded? Of course not! The way to go however is somewhat different from the enthusiasm of those who want the reorganise, use high tech for fancy products and turn to digital as a magic bullet. Yes, I do believe that all this, that modern technology, has a crucial role to play. I am certainly not a Luddite. But I also accept that a consumerism driven life style that seeks and perceives god in the goods market, sees "little in nature that is ours" and rips apart the environment for greed and profit cannot constitute the value basis of a post-corona shattered, depression traumatised domestic and world order. I am not an introspective nationalist and do not accept that we need to turn inwards and backwards to our long-perished roots. Indeed, we must be global, to be citizens of the world, but of a different world. This is bordering on the lyrical; I’d better stop and get back to hard reality.

There is much reference by local writers to new product lines and the need to explore new overseas market opportunities; that is turn our feet in other directions. But if we are considering a context of collapse and destruction of known economics on the scale of a depression, we will have to do more than look at our feet, we will have to ‘lift up our eyes unto the hills’ and adapt to wholly different international order. There will more to impending global changes than the passing of the American hegemon’s pole-position in the pecking order, and more than the rise of China who knows how high. There is all be other skirmishes, wars and rearrangements, both material and military. (I regard a real Sino-American war as impossible). Unlike our South-East and East Asian neighbours Sri Lanka has been pretty neglectful in strengthening its economic ties with regional trade and development blocs. That’s something that will have to be put right straightaway.

I will wind up by restating the cardinal premise of this essay. We are on the cusp of an economic catastrophe such as not seen in our lifetime, it will have corresponding deleterious social consequences, and because the world is far more interconnected than it was in the 1930s, its global impact (Asia, Africa, South America and the Middle East) will be correspondingly more profound than the effects of the Great Depression of the 1930s. The timeframe to keep in mind is three to five years. I am sorry, I apologise; but I only bear bad tidings; I didn’t actually manufacture the world order.

Public Utilities Commission intervenes to prevent high electricity bills

(Lanka-e-News- 16.May.2020, 6.35PM) The Public Utilities Commission of Sri Lanka (PUCSL), Ceylon Electricity Board (CEB) and Lanka Electricity Company Private Limited (LECO) have taken steps to ensure fairness for electricity consumers in issuing monthly electricity bills and allowing a grace period to pay the monthly bills.

The guidelines prepared by the PUCSL set forth in this regard will be implemented by the CEB and LECO.

The guidelines were prepared to calculate the electricity bills according to the number of electricity units (pro-rata basis) received at concessionary rates, despite the delay in issuance of bills and to provide a sufficient time period to settle the electricity bills. Proposals made by CEB and LECO as well as complaints by some of the electricity consumers were taken into consideration when preparing the guidelines.

The CEB and LECO have been providing electricity to the electricity consumers continuously during the quarantine period even though the electricity bills were not issued and paid accordingly. The financial condition of these institutions needs to be restored in order to provide uninterrupted quality electricity supply in the future. The PUCSL state that the electricity consumers can support the financial situation of these organization by paying promptly for the bills that have already been issued for delayed months.

The following recommendations are implemented for preparing bills that come under quarantine curfew time period, to ensure maximum justice is provided for consumers.

1. All bills issued after the quarantine curfew commences and after the final reading of the meter must be issued on a monthly basis and as separate bills for each month, confirming the entitlement of the concessionary rate for the electricity units (prorate basis).

2. The grace period given to the consumer to pay the separate bills issued to them will be published by CEB and LECO. Accordingly, there will be no disconnection of electricity with regard to the payment of these bills until the relevant grace period and conditions are announced.

3. The time gap between the last meter reading and the next meter reading can be more than one billing cycle. Therefore, the total consumption (units of electricity) for that period will be divided equally for each billing period or month (Confirming prorate basis or concessionary electricity tariff) when issuing bills. With that, the total electricity units consumed by the electricity consumer within a few months can be adjusted and separated for each month in a reasonable manner when preparing bills. In the meantime, some customers may have already received an estimated bill without proper reading of the meter. If there is a difference between the units of electricity in the estimated bill and the number of units issued after reading the meter, that difference will be revised after the next bill is read. The consumer will be informed if there are such amendments.

4. Electricity connections will not be disconnected in the event of complaints regarding current or future bills that have been issued until the issuance of the bills properly on time. CEB and LECO will resolve such consumer complaints expeditiously. The consumer can also refer their problem to the PUCSL, in the event that the consumer does not agree with the solution provided regarding their electricity bill complaint.

Example of prorate basis of confirming the concessionaries that the consumer receives

If the electricity consumption is 120 units for a period of two months, the first 60 units will be charged Rs. 2.50 and the second 60 units will be charged at Rs. 4.85. Accordingly, the fixed rate for each month will be Rs. 60 totalling to Rs.120.

When bills are issued for two months or more simultaneously, the total amount applicable for each month must be communicated to the electricity consumer separately in two bills.

As per the above example, the fee for the first month will be Rs. 280.50 and for the next month, the charges should be Rs. Rs. 280.50. The grace period to pay the bills will also be communicated to the consumer.

Electricity consumer who uses up to 60 units per month will be charged as displays the chart in an image at here when issuing electricity bills for two months at once.

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by (2020-05-16 13:14:53)

Sri Lanka piles on more Chinese loans amid virus and debt crisis

Despite $4.8bn due this year, Rajapaksa reportedly agrees $1bn in new loans

During the presidency of Mahinda Rajapaksa, left, Sri Lanka borrowed heavily from China for infrastructure. Younger brother Gotabaya, right, has adopted a similar strategy. © Reuters

MUNZA MUSHTAQ, Contributing writer-May 15, 2020

COLOMBO -- Saddled with heavy debts, and facing a financial crisis brought on by the coronavirus, Sri Lanka appears to be doubling down: piling on more Chinese debt despite having to pay millions of dollars this year to service its current obligations.

President Gotabaya Rajapaksa has twice turned to China in the last two months, desperate for a bailout as Sri Lanka's foreign reserves dwindled to $7.2 billion in April. So far, Beijing has granted an "urgent" loan of $500 million to help it fight the virus. Then, last week, cabinet ministers approved a decision to borrow another 15 billion Sri Lankan rupees ($80 million) from the China Development Bank, to improve 105 km of roads.

Amid a brewing financial crisis, the move to seek funding for the road project has drawn flak. Sri Lanka is doing fairly well in its fight against COVID-19, with fewer than 1,000 confirmed cases so far. Its struggle with the tide of debt has been less successful. Highly placed sources say the government hopes the additional Chinese credit will help plug a hole in its budget.

Harsha de Silva, minister for economic reform in the previous government, said the current government had reached an agreement with China for at least $1 billion in additional lending, of which already $500 million was disbursed in March. But he criticized the decision to borrow for the road project. "Such projects are not priorities for the moment. This loan is just to improve roads already built, and we can always improve the roads later," de Silva told the Nikkei Asian Review.

The South Asian island nation is short of cash. The International Monetary Fund estimates Sri Lanka's net government borrowing, which combines the fiscal deficits of the central and regional governments, will rise to 9.4% of gross domestic product in 2020, up sharply from last year's 6.8%, due to the economic impact of the epidemic.

Seeking a way out of the country's financial straits, P.B. Jayasundara, secretary to the president, appealed to more than 1.2 million public-sector employees to donate all or part of their May salaries to help close the budget deficit.

The currency fell to a record-low 200.46 rupees to the dollar in April, leading the Finance Ministry to restrict imports of 156 items including food, alcohol and apparel that month.

Sri Lanka must make $4.8 billion in debt repayments this year. According to the central bank, central government debt stood at 13 trillion rupees at the end of 2019, of which 6.4 trillion rupees was foreign debt. Although the bank did not provide a breakdown of the foreign debt, Indrajit Coomaraswamy, the bank's former governor, said in an interview with Nikkei last year that China's share of total external debt was 9%, while a private-sector analyst estimated the figure at less than 15%.

China is keen to help. Hu Wei, China's ambassador to Sri Lanka, at a meeting with President Rajapaksa on April 29, pledged that China would help "revive" Sri Lanka's economy because Sri Lanka is a "special friend." Apart from the Chinese government assistance, Hu said Sri Lanka will receive help from leading Chinese companies and banks.

In response, Rajapaksa said one of his prime objectives is to attract foreign investment. "There are ample opportunities for foreign investments. ... I invite China and other countries to make use of those opportunities," he said.

Sirimal Abeyratne, chairman of the central bank's monetary policy consultative committee, said the government is in talks with the World Bank, the Asian Development Bank and the IMF. "If the government is turning to China for further borrowing, there might be good reasons for that as well, because China is now in a better position to help, as it has already brought the COVID-19 issue under control, and the borrowing might be quicker and under favorable conditions," Abeyratne told Nikkei.
Ramesh Pathirana, a cabinet spokesman, expressed optimism that the economy will bounce back, predicting the World Bank, ADB and IMF will grant moratoriums on loan repayment for at least six months. "We are also confident that countries such as China and Japan will provide us with much needed space due to the current situation," he told Nikkei.

During the presidency of incumbent Prime Minister Mahinda Rajapaksa, who is a Gotabaya's elder brother, Sri Lanka relied heavily on China for infrastructure development. China also invested heavily in the island for strategic reasons. Among the projects financed by Beijing was a $1.5 billion port in Rajapaksa's hometown of Hambantota in the country's south. However, amid claims that the port was operating at a loss, the port was leased in 2017 to China for 99 years, in return for $1.1 billion, which eased the Chinese portion of Sri Lanka's debt burden.

Surviving the apocalypse

A troubling reality we must accept is that this will not be the last pandemic we face in our lifetimes; similar events with similar reactions by governments can be expected every few years. How well we fare after this and future lockdowns is up to us; a historic opportunity is on offer. Sri Lanka can transform into a truly digital economy, even though we are two decades late to the party – Pic by Shehan Gunasekara

Saturday, 16 May 2020

The 2020 coronavirus (COVID-19) pandemic and social lockdowns by governments have come as a massive economic shock to businesses around the world.

Sri Lanka suffered a double whammy as our economy was just starting to recover from the impact of the Easter attacks of April 2019. For businesses everywhere, it is fair to call this pandemic an extinction-level event; many will not come back on the other side of the lockdowns.

Falling like flies

The business news from around the world feels apocalyptic. Airline companies are falling like flies; South African Airlines, the national flag carrier, has shut down after 86 years in operation; many private airline companies are failing, including major brand names like Virgin Australia.

The big American airline companies will only survive by taking massive bailouts from the US Government. The same is true for major national flag carriers like Alitalia and Lufthansa in Europe and other parts of the world.

International air travel is never going to be the same again – many budget airlines will be gone, medical checks will become a requirement and ticket prices will go up.

The airline collapse has had a huge negative impact on companies like Airbus and Boeing (the largest single exporter of the United States) – these companies will only survive on massive government bailouts. Even the sports brand Adidas has asked for a bailout. Many retailers in the United States like JC Penney and Neiman Marcus were already struggling, and will now almost certainly file for bankruptcy. Due to the way their Chapter 11 bankruptcy process works, it is difficult for retail companies to declare bankruptcy during a lockdown but may be lining up to do so once business resumes.

Some analysts estimate that as many as 70% of the restaurants in the United States may shut down. The economic impact on industries like travel has already been devastating and many bankruptcies are sure to follow. The companies that are surviving are slashing their workforces – even online companies like Booking.com and Tripadvisor.com are cutting back. All the major international banks have created provisions in the billions of dollars for loan defaults.

Parallel universe for oil

In a bizarre turn, WTI (West Texas Intermediate) crude oil contracts even traded at -$40 per barrel on 21 April – oil sellers paid buyers to take oil off their hands. This phenomenon may repeat in May when contracts rollover. The glut of oil in storage facilities around the world and the drop in demand is forcing producers to shut down – some are going bankrupt, and many will probably follow. This pandemic may bring about a paradigm shift in our attitude towards continuing to rely on fossil fuels.

“We won’t pay our rent!”

One in three American tenants and a full 50% of the small businesses missed their last rent payment. There were already over seven million Americans unemployed before the pandemic hit. 26.5 million Americans filed for unemployment benefits in the last five weeks.

This puts the total number of unemployed in the United States at over 20%, with the expectation that things will get worse in the coming weeks. If this is the impact on the world’s largest economy, the impact on Sri Lanka would naturally be far more severe.

As Sri Lanka does not have sophisticated real-time reporting systems like the United States, it is hard to measure the true economic impact of the Coronavirus on our economy, which is largely made up of small and medium businesses. As Sri Lanka is heavily dependent on sectors like apparel and tourism, the economic devastation is likely to be catastrophic.

The garment industry, which employs nearly one million people, no longer has a market as shopping malls and outlets are closed nearly everywhere in the world. Even after lockdowns end, consumer demand will not return to previous levels for many months. It is likely that many smaller garment factories will close down and a substantial percentage of this workforce will be out of work. With airports closed, tourism is at a total standstill.

No more jobs

Some large blue-chip companies have imposed a total hiring freeze for 2020 and have also decided to severely control costs, causing many projects to be put on hold. Large hotel chains have decided to stay closed for three months and have indicated they may not re-open all of their properties once they resume operations.

Many of our small travel companies, and possibly some of the large ones, are not going to survive. They do not have the same flexibility as companies in developed economies to lay off employees based on economic demand, due to our obsolete labour laws. This is a fundamental flaw in Sri Lanka’s statutory framework, as companies will be forced to retain employees even if they can’t afford to pay them and have no work to give them.

While this may reduce unemployment in the short term, it will increase the number of companies that will go bankrupt; in the long term, this would also translate into a higher unemployment rate. Existing labour laws will also severely handicap the creation of new jobs as companies may be reluctant to hire employees they can’t easily let go, particularly with an economic outlook that is mostly negative.

Often our Department of Statics data tends to be more than two years out of date. The Government then runs the risk of compounding the problem by making policy decisions based on obsolete data. When the question arose about how many daily wage earners were in the Western Province, the best official data we had appeared to be several years out of date – since then companies like PickMe have revolutionised ride hires and created jobs for hundreds of thousands of taxi drivers; none of them represented in the count of daily wage earners.

Money for the breadline

An unemployed American worker gets $378 per week in unemployment benefits for up to 6½ months. This converts to nearly Rs. 300,000 per month (at the current exchange rate), which is more than what most employed Sri Lankan workers get. Sri Lanka has no unemployment benefits system. The small amount the Government has managed to arrange for daily wage earners is woefully inadequate for them to support their families. While we do not know what our actual unemployment rate is, it is most likely going to be worse than in developed economies like the United States.

The Sri Lankan Government has neither the resources nor the historical practice of bailing out private sector companies. At most, the Government may bail out our banks and finance companies, as deposits are guaranteed by the Government to some extent. The rest of the companies, no matter how large and how many people they employ, will be allowed to fail. For small and medium businesses, it is not a question of if they will fail, but rather when and how many; and there are no bailouts on offer for them. If a sufficient number of companies fail, it will have a knock-on effect across the economy, pushing healthier companies also to the brink of collapse.

While a two-month working capital relief loan at low interest rates has been mandated by the Government, it is unlikely to save many businesses. Sri Lankan banks are notorious for denying loans to small businesses, for demanding unreasonable levels of collateral and for being so bureaucratic that it is virtually impossible for a business to get the cash needed in time for it to be of practical value. In other countries banks drive economic growth; in Sri Lanka, they are one of the factors dragging down growth.

Sri Lanka also took the unprecedented step of shutting down the Colombo Stock Exchange, a drastic measure that almost no other country has taken. The loss of investor confidence from this move can only be truly measured after the CSE reopens. Due to the global carnage in financial markets, foreign investors will probably be looking for safer investments elsewhere. As a result, the foreign investment funds available for Sri Lanka would already be severely limited. Except for potential support from China, we can expect to be on our own for many months after the lockdown is over as far as any major influx of foreign exchange is concerned.

Demand destruction

International business commentators refer to “demand destruction”, meaning that some consumer demand will be permanently erased; things will not go back to the way they were before the pandemic. Some consumer behaviours will permanently change. I have been a regular user of e-commerce for over 20 years, yet, even I have been in the habit of engaging in more conventional consumer behaviour, for example when shopping for my groceries or medicine.

During the past six weeks in lockdown, I have become accustomed to ordering everything online. I used to pay my utility bills over the counter, but all my latest payments were done online. Nearly all of our clients used to pay us by cheque. This is no longer the case as even the most traditional companies have rapidly adopted and switched to paying by online bank transfer. While I can be treated as a “power user” for whom this is a perfectly natural evolution, what is fascinating is that many people who had never used the Internet much have now become heavy users.

Even after the lockdown is over, our airports can be expected to remain closed for inbound tourists for several weeks or even months. Even after the airport is re-opened tourism will not pick up for many months; leisure travellers will be cautious due to virus fears, and the massive global reduction in employment and salaries will prevent people from travelling.

Within the country also people will avoid crowded venues, including cinemas, theatres, sports stadiums, restaurants and possibly even places of worship. After the Easter attacks, our hotels survived by encouraging local guests to stay with them – this customer base will also be severely depleted post-Corona. A fundamental shift has happened and it is here to stay. We are now living in that strange dystopian future that was once in the realm of science fiction.

Digital laggard

Sri Lanka has been lagging far behind the world in Internet use and had an official count of something north of seven million users. The lockdowns caused a massive increase in the use of the Internet globally. Some estimates put the increase at over 30%, which is a huge jump in developed economies which were already close to saturation. It may be several months before we can properly measure the increase in Sri Lanka.

The data from many major websites we manage indicates that there is a huge increase. Our estimate is that Internet use may have increased by as much as 50%, putting the total number of users in the country at over 10 million. Sri Lanka also has a large number of users dependent on their office systems for internet access – so once people go back to work, we can expect another surge. Previously we were expecting Sri Lanka to add about two million internet users a year. We would now have to revise our estimate and expect that we may get to 15 million a lot sooner than anticipated. Businesses should take note of this sudden “new” customer base of many millions.

Dinosaurs in the boardroom

Many large companies in Sri Lanka still have directors and top-level executives who are not tech-savvy. Up to now, the attitude has been one of smug arrogance; “Look at our success, why should we bother with digital?” has been the surprising message we have often heard, particularly when it came time to invest. This is a fundamental flaw in our corporate cultures and may contribute to 10% or more in lost growth in revenue and profit for these companies every year.

It is high time for companies to take a serious look at themselves and appoint leaders able to understand and leverage digital technologies. A key change that must happen after the lockdown is a thorough cleaning out of the old non-digital guard from corporate boardrooms. As for our members of Parliament, it suffices to say that they cannot competently legislate on something they are not even aware exists. Some shopping malls in Sri Lanka were already struggling and plans were in place to phase them out. Some world-class new shopping malls had just opened up, and Sri Lankan consumers enjoyed the sophisticated new cinemas, restaurants and brand name outlets on offer. These shopping malls are also going to get hit hard.

In an environment where jobs will be lost, tourist arrivals will remain near zero, and everyone will be jealously guarding their limited cash, there will be a massive drop in consumer demand, which will not recover at least until 2021. Retailers need to make hard choices about whether to shut down or invest heavily in e-commerce. Doing business online can no longer be an afterthought – e-commerce should be the default option, and having a brick-and-mortar outlet can be optional.

Even brand name restaurants, which had fully operational websites equipped for online orders, were woefully unprepared and the online ordering experience remains disappointing. Top supermarket websites in Sri Lanka went down and they had to hastily patch together make-shift solutions, which for weeks were unable to handle the deluge of orders that came in. The infrastructure readiness and the speed at which the major players in Sri Lanka responded was disappointing.

Many enterprising e-commerce websites that were previously offering other products like electronics and flowers quickly switched to offering grocery packs and were soon inundated; delivery dates stretched out to nearly two weeks at the beginning of the lockdown. Nevertheless, these companies fared far better than the “dinosaurs” – those large, smug retailers who still hadn’t bothered to develop an e-commerce website two decades into the 21st century. It was heartening to see many companies develop hastily put together e-commerce sites and set up distribution systems to cater to home delivery.

“You want us to do what?”

When the Government gave the order to “work from home” how many Government offices or companies in Sri Lanka were truly geared to do this? Probably 90% were not. Reading your email and taking a few Zoom meetings does not constitute working from home.

Most employees in the private sector were paid their salaries to sit at home and do very little productive work – a practice that is sustainable for at most one or two months. Workers in the apparel sector, hospitality sector and many other similar sectors cannot “work from home” when their companies are totally shut down and earning zero revenue while haemorrhaging cash on regular expenses. Developed economies have been in the practice of letting their employees work from home for decades. Nearly 50% of American workers have some component of working from home. Sweden, one of the most developed nations on the planet in economic, social and political terms, took the bold step of not locking down at all; a policy move that borders on genius. Their economy gave them the ability to take this step as a majority of their office workers can work from home.

When the dust settles most world economies will be in shambles; the Swedish economy may be doing better than most.

Ahead of the curve

At 3CS our staff have been given the ability and flexibility to work from home for over a decade. After the Easter attacks of 2019, we made a deliberate decision to encourage most of our staff to work from home. We provided the necessary infrastructure and training for them to do this. This helped us to become a far more efficient and agile organisation, capable of handling severe disruptions to the economy and normal working processes.

A few old-fashioned staff members took this change negatively and some even resigned; they viewed the aggressive shift we made as strange and incomprehensible. We never anticipated an apocalyptic event like the coronavirus pandemic; we were, however, 100% prepared for it because of the major organisational restructuring we did.

After Colombo was put under a total lockdown and curfew, the 3CS team carried on working as if nothing had changed. We are among only a handful of companies in Sri Lanka who can genuinely say this. We serve some of the top blue-chip companies in Sri Lanka. We are proud to say we continue to serve these clients with zero disruption, even serving requests being made in the middle of the night and on weekends within minutes. We have had one of the best service levels in our industry or any industry for years; we have maintained this service standard even under total lockdown conditions.

An existential choice

The complacent Sri Lankan private sector has had a massive socio-economic shock. Now it is not just “nice” to have a website and an e-commerce site; it is the Darwinian line that separates the species that will survive, and those that will remain only as fossils in the annals of our economic history. Some may say, “We are not a retailer, why do we need a website?” The answer is simple; if you don’t have a website and a strong digital presence, nobody knows you exist, and soon, you will actually cease to exist.

The Sri Lankan economy is tiny compared to other economies. Our total national debt could be settled with about one-third the cash reserves of Apple, Inc. This relativism must be kept firmly in mind by our policymakers. We can’t mimic what the United States or Europe do, and expect to have similar outcomes. Our economy is not as robust as theirs, and therefore will fall harder and take longer to recover.

Adapt or perish

The coronavirus pandemic offers an opportunity for our Government to replace many of the obsolete laws that have been dragging down our economy for decades. Continued failure to take action on legislative issues like revising the labour laws, which was an urgent national need even 20 years ago, will have catastrophic economic consequences.

For private companies who have not yet fully embraced a digital way of doing business, including those slumbering colonial relics that have become complacent because of their past success, the time has come to make an existential choice. For our national universities and institutions of higher education, it is time to stop being museums of education and genuinely switch to online, hi-tech and distance learning systems, even after the lockdown is over. Sri Lankans have always shown a remarkable ability to rapidly adapt and to adopt new technologies. The Government, our medical professionals, security forces and providers of essential services have done an amazing job controlling the spread of the virus, minimising deaths and maintaining the chain of essential supplies. However, every day we extend the lockdown, the human cost in lost employment, lost income and socio-cultural costs that include increased domestic violence and a higher future divorce rate, will be at an unprecedented magnitude.

The other troubling reality we must accept is that this will not be the last pandemic we face in our lifetimes; similar events with similar reactions by governments can be expected every few years. How well we fare after this and future lockdowns is up to us; a historic opportunity is on offer. Sri Lanka can transform into a truly digital economy, even though we are two decades late to the party.
[The writer has served as the CEO of 3CS (https://www.3cs.lk) for the past 21 years. He received his business degree from Franklin & Marshall College in Pennsylvania. 3CS is one of Sri Lanka’s leading web design and digital marketing companies and is the winner of the Best Web Developer award at the national bestweb.lk competition for 10 years from 2010-2019.]

The accountability issue

mby Rajeewa Jayaweera-May 16, 2020, 12:00 pm

The Oxford Dictionary defines the word Accountability as ‘the fact of being responsible for your decisions or actions and expected to explain to them when you are asked.’ It may sound simplistic, but, in a nutshell, the definition best explains the word as applicable from the highest in the land.

Something we regularly hear is the 19th Amendment to the Constitution made the President of the Republic accountable to Parliament or the Legislature. Other than the reintroduction of term limits for the President and the Right to Information Act, multiple aspects of the said piece of legislation, purpose-designed to hold the Rajapaksa clan at bay, was seriously flawed. Nevertheless, that is best left for another day.

An interesting article appeared in The Island on May 12 titled "Holding the executive accountable is a democratic necessity.’ It dealt with several issues, including COVID-19, President Gotabaya Rajapaksa’s leadership role, and popularity besides the current dilemma over parliamentary elections.

What was most interesting was a reference to a statement by ex-parliamentarian Sunil Handunnetti. He had highlighted the two options available to the Executive President, namely remaining as the decision making authority and the alternative of bringing in the institution of Parliament into the decision making process. The JVP politician had opined, it was not the personal qualities of the 225 parliamentarians that mattered but the institution of Parliament as an oversight body. Ex-parliamentarian Eran Wickemeratne has endorsed the former’s view on the basis that the overshooting of the debt ceiling by the current caretaker government required parliamentary ratification.

It is a chicken or egg situation. Has the institution of the Parliament in this country evolved from the personal qualities of parliamentarians, past and present, or does parliamentary traditions in its pristine form guide parliamentarians? In this writer’s subjective opinion, it is the former and not the latter. If not, there is no explanation for the many political travesties in Parliament during the last 72 years.

At the outset, now that the President has been made accountable to the Parliament, the next most natural question is, who holds Parliament accountable? There is no gainsaying that parliamentarians will be held accountable by the people during elections every five years.

Once a parliamentary election is over, voters do not have a chance of holding their representatives accountable for five years. They are unable to challenge a Member of Parliament (MP) to prove he or she continues to enjoy the confidence of voters in the electorate.

At an electorate or district level, voters do not have the privilege of a ‘Recall Vote.’ It should be a requisite based on specific parameters to hold MPs accountable and in check.

Similarly, the Constitutional Council, ideally suited to exercise oversight over Parliament is a farce. Whereas the Council should not have had a single parliamentarian, it contains seven of them. Only three members are from civil society.

The bottom line is, Parliament is an authority unto itself. Who overlooks the nation’s watchdogs? Among other things, MPs fix their remunerations, perks, and privileges besides their disciplinary matters. The lack of due process against those who resorted to damaging state property and thuggery inside the Parliament during the Constitutional crisis in 2018 is a telling example.

Returning to Handunetti’s lament of the institution of Parliament as an oversight body, a key concern expressed is the exceeding of the debt ceiling by the caretake government. Multi-million dollar contracts currently in the pipeline involving foreign entities with no transparency has suddenly become a critical factor.

It would be pertinent to examine how this hallowed institution, known as the Parliament, has ensured Accountability, transparency, and oversight in recent years.

Parliament impeached Shirani Bandaranayake, 43th Chief Justice of Sri Lanka, in January 2013. The charges brought against her by a Parliamentary Select Committee comprising of MPs would not withstand scrutiny by any self-respecting independent body.

We woke up on the morning of January 9, 2015, with a Prime Minister from the United People’s Freedom Alliance (UPFA). By evening, the United National Party (UNP) leader had replaced him, sworn in a few minutes after the newly elected President. He did not prove he commanded the confidence of Parliament for a full eight months till after General Elections.

Commencing January 2010 till November 2019, both Mahinda Rajapaksa and Yahapalana regimes signed multiple multi-million dollar agreements. Mattala Rajapaksa International Airport (MRIA), Hambantota Port, Nelum Pokuna, and Lotus Tower besides several expressways resulted from such contracts. The cost per kilometer of roads is known to be substantially higher than those even in developed countries.

Parliament was in session during the nine years when all such projects were negotiated, approved, and completed. Did Parliament carry out its oversight function? If so, how could opposition parliamentarians substantiate their claim of the family of former President Mahinda Rajapaksa, stashing away a fortune of 18 billion dollars in foreign banks?

Handunetti, Wickremaratne, and many others are insisting on reconvening the dissolved Parliament in the absence of a general election. The holding of a general election hangs on the balance due to the COVID-19 pandemic.

Judging from its past track record, Parliament has failed to live up to expectations and failed in the execution of its sacred duty of ensuring Accountability, transparency, and oversight of successive governments.

The clamor to recall parliament smacks of opportunism and is an exercise for narrow political gain.

The opposition wants Parliament reconvened chiefly to invalidate their respective nomination lists for the forthcoming general election. They also wish to capitalize on incumbency fatigue of the government in office. The UNP and Samagi Jana Balavegaya (SJB) may harbor dreams of patching up their differences and contesting on a common platform together with several minor and minority parties. If successful, fresh nominations would be to their advantage.

The Sri Lanka Podujana Pakshaya (SLPP), together with the Sri Lanka Freedom Party (SLFP) and several other smaller parties, have no desire to reconvene Parliament and permit their opponents to link up. It would be an obvious electoral disadvantage. The SLFP breaking away and joining the SJB is another possibility further complicating matters for SLPP and its partners.

COVID-19 is not only a local but also a global pandemic and has engulfed both Sri Lanka and the world. Unlike during the previous crisis periods, reaching out with our usual begging bowl is bound to be less successful as other countries, too, are reeling from the adverse effects of the coronavirus.

The management of the pandemic requires the undivided attention of President Rajapaksa’s government. Notwithstanding assurances of cooperation from the opposition, a divisive Parliament can unnecessarily hold the government, and a minority government at that, to ransom. It will also distract the government from giving its best shot in bringing the country and its economy out from the fallout of the pandemic with minimum damage.

A Chinese tourist was the first infected person to be detected in the country on January 27. A Sri Lankan tour guide discovered on March 10 was the first local. A total of 889 persons confirmed positive and nine deaths is the tally to date.

Despite all the pros and cons, lockdowns, and curfew, it is an impressive and enviable outcome when compared with those of most other countries, including in the developed West.

Under the circumstances, a mandate for the Head of State to govern till the end of the year to finish what is currently underway based on the ‘Doctrine of Necessity’ would be the most prudent course of action.

Dr.Jayampathi Wickramaratne, a Constitutional expert and drafter of the flawed 19th Amendment, has cautioned against the concept citing Pakistan as an example. He opines it is not a ‘kokatath thailaya’ (cure for all ills). COVID-19 is also not a ‘samanya vasangathye’ (common virus). The requirement is not for ever and a day as practiced in Pakistan but a specific period of six months.

Opposition parties, major, minor, and minority all claim to have the interests of the poor people at heart. Let them prove themselves by leaving the government to get on with the job and extending their silent support. They claim they will extend their unstinted support to the government if Parliament is reconvened. They may do so once Parliament reconvenes for one day, three months before Polling Date of January 01, 2021, or thereabouts. They may provide necessary covering approvals for all that is required before the dissolution of Parliament the same evening. They could also agree to go forward with nomination lists already filed.

It would be a genuine and welcome gesture from an opposition claiming concern for the welfare of the country and its people. It would also prove the genuineness of their offer.

If the situation worsens in the next six months, we as a nation will have other far more severe issues to worry about than elections.

If not, elections by January 01, 2021, or thereabouts, maybe even without social distancing, is a practical solution and a distinct possibility.

COVID-19 should be a wake up call to Maldives to treat its migrant workers better

Govt had taken precautions by suspending on-arrival visas and screening people entering through airports from other islands including Male, were put under lockdown

Bangladeshi migrant workers in Maldives

Male is one of the world’s most congested capitals, housing more than 150,000 people in a 5.8 sq. km area
Government estimates that 105,000 migrant workers are currently in the Maldives

The COVID-19 pandemic has hit the tiny but prosperous Maldives hard. As per the latest figures given by the Health Protection Agency (HPA), 835 persons have been affected by the coronavirus so far. This is huge when seen against the total population of the Indian Ocean Archipelago which is now 540,544, according to an estimate by the UN.

12 May 2020

Among the 835 infected persons, 572 are foreigners. 416 of the infected foreigners are Bangladeshi migrant workers. Bangladeshis form the bulk of the 105,000 foreign workers in the island. They are employed mostly as unskilled or low skilled workers in the construction sector.

However, in accordance with the emerging pattern in which locals are increasingly getting infected, 20 of the 45 new cases of infection discovered on Sunday were Maldivians. But still, 22 were Bangladeshis, Two Nepalese and one Indian were also among the infected. COVID-19 has so far claimed three lives. Two of the dead were Maldivians and one was a Bangladeshi.

Initially, the infections were found to be in the island resorts probably brought by White tourists. But soon, the capital town of Male became the hot spot. An AP report said that Male is one of the world’s most congested capitals, housing more than 150,000 people in a 5.8 sq. km area. The report further said that the government had taken precautions by suspending on-arrival visas and screening people entering through airports and arriving from other islands. Six inhabited islands, including Male, were put under lockdown.

Officials have blamed the congested accommodation given to the migrant workers in Male for the quick spread of the infection. And the numbers involved are huge. According to AP, there are 60,000 migrant workers, mostly from Bangladesh, working as unskilled labourers in Male itself.

Government estimates that 105,000 migrant workers are currently in the Maldives. This number includes about 60,000 unskilled migrant workers without documentation such as passports and work visas. These workers had either been trafficked into the Maldives or had surrendered their documents to their employers who hold them to ransom. The Maldivian human trafficking industry is believed to be worth US$ 128 million.

In locked down Male, it is suspected that couriers who deliver daily essentials to households could be the principal source of the infection. Many of the couriers are migrant workers, sources in Male said. Assistant Police Commissioner Ismail Naveen revealed to the media on Sunday, that 18 quarters in Male in which 837 migrant workers live were identified as hot spots. Their movement in and out of these quarters has been restricted.
Expatriate workers are made to reside in deplorable conditions without proper sanitation, especially in Male. This has been subject to trenchant criticism from human rights groups; both local and international. The Maldivian government had recently devised a plan to remove 1000 migrant workers and put them in two special housing complexes in Gulhifalhu and Hulhumalé. In the government’s COVID clinics, where migrant workers will also be treated, they need not produce their work permit or documentation. This will prevent workers without visas and passports from hiding their health condition.

A former top official in the Maldivian government told this writer that the Maldives is now paying heavily for not looking after the migrant workers who build and service the country.

“If the Maldivians have a good standard of living and enjoy free education and free health services, it is because of the money earned from tourism. And if tourism is booming it is because of the resorts built by the migrant workers and serviced by migrant workers. If congested Male is clean it is because of the migrant conservancy staff. And yet, they are poorly paid, poorly housed and cheated by the employers as the government turns a blind eye. However, it is not one government which is responsible for this, successive governments have to be blamed.”
Reports have found that most migrants are either victims of human traffickers or discriminatory employers, who take away their documentation and use these migrants as slave labour. As such, many migrant workers find it difficult to obtain healthcare.

According to the International Organization of Migration (IOM) although employers in the Maldives are legally obligated to provide all migrant workers with health insurance, coverage is often minimal and many are not informed they have insurance at all. Employers also illegally confiscate workers’ papers, making it difficult for them to obtain health care. Furthermore, the Maldives has not ratified the International Convention on the Protection of the Rights of All Migrant Workers and Members of their Families.

Employers told IOM that they prefer migrant workers due to the lower wages that they are willing to accept, as well as their job commitment and loyalty. IOM says that employers contrast migrant workers with Maldivians, who are often perceived as less willing to work in lower-skilled and physically demanding occupations, and lack the skills to work in higher-skilled and more technical positions. Furthermore, migrant workers are more willing to accept working and living conditions that Maldivians do not accept.

Due to the unhealthy living conditions, migrant workers contract diseases. Between 2014 and 2016, the Health Protection Agency recorded 4,453 hepatitis B-positive cases, with the Bangladeshis being the majority affected (88%), followed by Indians (5%) and Chinese (3%). The absolute number of migrants diagnosed with dengue increased from 104 in 2014 to 295 in 2015 and 234 in 2016. Compared to available data on other diseases, dengue appeared to be the second most prevalent disease among migrants after hepatitis B. Higher incidences were found among Bangladeshis, followed by Indians and Sri Lankans. The HPA recorded 39 TB-positive cases among migrants from 2014 to 2016, mostly affecting Bangladeshis (28) and Nepalis (6).

The tourism sector was initially subject to a limit on the number of foreign nationals it could employ. However, the limit was gradually reversed from a ratio of 55:45 (locals to foreign nationals,respectively) to 45:55. The ratio is not strictly observed by all employers, as they find it difficult to attract local workers for various reasons, for example, resorts in isolated locations, the stigma associated with work in resorts, and the lack of soft and hard skills among local job seekers, IOM said.

But there is local opposition to recruiting foreign workers in such large numbers. The Tourism Employees Association of Maldives (TEAM) pointed out that resorts are hiring foreign staff up to 70%, while they could very well bring the figure down to 40%. According to TEAM, local talent exists but they get weeded out.
“Resort operators claim that it is difficult to acquire Maldivian staff. However, to say this, there is no labour audit in the Maldives. There are no records of persons actively seeking jobs,” TEAM President Zahir said.

He pointed out that there are many jobs in accountancy and information technology which Maldivians can fill. Some of these jobs carry a salary of MVR. 20,000 which is very attractive for the Maldvians. But still employers say that suitable Maldivians are not available. Even in a lower category like security staff Maldivians can work, but Nepalese are preferred.

Because of the shake-up brought about by the COVID-19 invasion, the Maldives get a chance to regulate its migrant labour policy, give a better deal to the migrant workers and also to see that Maldivians are not driven out of the labour market by profiteering employers who go for cheap imported or trafficked labour. If these issues are not tackled there could be social unrest besides health hazards in the not too distant future.