“All media should be owned by the government by the end of this year” – the President

Monday, 13 May 2013 

President Mahinda Rajapaksa has said that all media in the country should be under the direct or indirect control of the government by the end of 2013. He has said that it was important since 2014 would be apolitically decisive year.

Plans have already been drawn under the President’s direction to purchase media institutions through businessmen and racketeers who are being supported by the government.

Former Minister Milinda Moragoda, who defected from the UNP to the government in order to save himself from the accusations leveled against him by the parliament’s COPE, is now trying to purchase the Ravaya newspaper that has been critical of him.

Also, Namal Rajapaksa’s rugby coach and businessman supportive of the government, Asanga Seneviratne has purchased the Leader Publications Company that publishes The Sunday Leader and Irudina newspapers. Seneviratne purchased the institution from monies lent to him by a bank as organized by the government.

Before that, Rivira Media Corporation that published The Nation and Rivira newspapers owned by Sena Yaddehige was purchased by the President’s relatives, Col. Prasanna Wickremasuriya and Nilanka Rajapaksa. The current owner of the company is millionaire businessman Ravi Wijeratne who is closely connected to the President. Unconfirmed reports also state that Ravi Wijeratne is now holding discussions with Sumathi Publications that publish Lakbima and Lakbima News newspapers to buy it as well.

Another friend of the President, Nihal Epa purchased the Siyatha radio channel that was previously owned by the Kariyapperuma brothers who were close to the President at one point of time. Epa is also the head of Neth FM radio station.

Sources also said that several of the President’s businessmen friends are now trying to purchase Mahinda Ramanayake’s Max TV as well.

The JVP’s V FM radio station was purchased by the President’s trusted Cabinet Minister Johnston Fernando for Rs. 200 million about one year ago.

The President has also ordered his businessmen friends to try and purchase the websites that are operating locally and internationally that have become a headache to the government or to take control of them by way of controlling their advertising. Therefore, unconfirmed reports say that a businessman affiliated to Namal Rajapaksa is planning on purchasing the Gossip9 website and to shut it down afterwards.

Fifty limousines for CHOGM

Monday, 13 May 2013 

The government it is learnt is gearing to purchase 50 limousines from UK’s Rolls Royce Company for the heads of state who are to attend the Commonwealth Heads of Government Meeting (CHOGM) scheduled to be held in Colombo from November 15th to 17th.

Each Rolls Royce limousine is valued at US$ 300,000. Therefore, the cost is estimated at Rs. 37.8 million. Although the Commonwealth consists of 54 countries, the government has decided to buy 50 limousines since state heads of Canada and several other countries have said they would be boycotting the event.

The government will be spending Rs. 1,890 million of public funds to purchase these limousines to be used only for two days.

These limousines are most suited for continental countries like the US, Europe and Australia. These limousines are not suitable for small cities like Colombo that have massive traffic jams. The government has not yet decided as to what it would do with the limousines after the summit concludes.

International political analysts say the government is trying to spend so much of public funds to please the head of the Commonwealth, Britain. However, they have identified this system as the “Rolls Royce diplomacy.”
200 luxury limos for CHOGM 2013

2013-03-31 

Notwithstanding the Queen's no show at the opening session and threats of boycott by the West, plans are afoot to import 200 luxury limousines for the Commonwealth Heads of Government Meeting (CHOGM) scheduled for the end of the year.

This would include 60 vehicles of latest Mercedes Benz C class and BMW 7 series for the travel of the attending Heads of States. The other vehicles, which also include luxury vans, jeeps and cars, will be allocated for the visiting delegates. The imported luxury vehicles will be used for the ministries and the VIPs who visit Sri Lanka, after the CHOGM.

In China, reporter's death sparks questions on censorship

By Sumit Galhotra/CPJ Asia Program Research Associate

May 13, 2013

Twenty-four-year-old Bai Lu was just four days into her new job as a journalist at theUrumqi Evening Post when she was killed. She and her colleague, Chen Aiying, were struck by a bulldozer while reporting at a major construction project on April 18 in the city of Urumqi in Xinjiang province. Chen was seriously injured.

While Bai's death was widely reported in the Chinese press and social media, critical questions have been raised around the details of her death--some of which indicate that important information is still censored even when a story is widely publicized.

The construction site where Bai was killed was reportedly part of an infrastructure project in Urumqi that was designed to ease traffic congestion in the city, according to the Hong Kong University-based China Media Project. The report cited an unnamed source who said that local government officials had violated procedures on the construction project. The report did not offer further details.

On the day of the accident, the Urumqi Evening Post posted information on its Weibo account that included the name of the construction site and the term "tractor shovel." The post was subsequently deleted and replaced with one in which both references were removed. Weibo users began to raise critical questions, some speculating that the reference to the construction site must have been omitted because it left politicians connected to the construction project vulnerable. Other details, they said, could have been removed to avoid Bai's death being conflated with a case of forced demolition. Authorities have, at times, engaged in forced demolitions across China, in which villagers are crushed by machines while trying to defend their homes.

The following day, Urumqi Evening Post's front page featured the story of Bai's deathwith a photograph of the candlelight vigil held in her memory. The paper's coverage, along with that of other local media, focused on the grief surrounding her death. According to the China Media Project's analysis of the accident, the coverage turned attention away from the critical reporting of the construction project itself. In addition, the headline to the Urumqi Evening Post story read, "Bailu: Youth Cut Short On The Way To An Interview," suggesting she was killed on the way to report a story instead of at the scene of the story.

Following Bai's death, one journalist at Urumqi Evening Post wrote on Weibo:

"If one day something happens to me in the course of reporting a story, the rest of you won't know where exactly it happened, and how it happened, because you wouldn't be allowed to know. But there would be people calling on all of you to follow my example, to contribute to the cause of journalism. This is our sorrow. I love doing journalism, but I am filled with sorrow."

Sumit Galhotra is the research associate for CPJ's Asia program. He served as CPJ's inaugural Steiger Fellow and has worked for CNN International, Amnesty International USA, and Human Rights Watch. He has reported from London, India, and Israel and the Occupied Territories, and specializes in human rights and South Asia.

SRI LANKA: Two testimonies on enforced self paralysis

May 14, 2013

Lal Wickrematunge, the brother of the assassinated editor of the Sunday Leader, Lasantha Wickrematunge, and until very recently the owner of Leader Publications, spoke yesterday to the BBC Sinhala Service. He stated that it is dangerous today to be engaged in publication work in Sri Lanka. Giving views other than the government's version of things is almost impossible. Under the present conditions media personnel are afraid to engage in free reporting.

He admitted that for the sake of preserving the jobs of the employees he had to agree to sell shares of Leader Publications. He also stated that reporting on the issues relating to minorities including the Sri Lankan Tamils has collapsed to a great extent. The major reason for this is the government attaches the 'Tiger' label, or Tiger friendliness to media personnel who report on the minorities. When questioned as to whether in the near future people in Sri Lanka would be able to know the truth about what is going on he replied, "That cannot be expected. In the foreseeable future that cannot be expected". He also admitted that the failure on the part of the owners of the media establishments to stand up for free media was also a reason for the success of the government's repression. He said that owners of the media are also businessmen engaged in other businesses besides publishing. They are afraid that their other businesses will be badly impacted if they don't submit to the government's wishes.

Azath Salley's arrest, detention and release

In the fundamental rights application that was filed before the Supreme Court on behalf of Azath S. Salley, the following statement was made about the circumstances of his arrest:

"The Petitioner (Azath Salley's lawyer) states that, Azath Salley, together with the MUPS have constantly been critical of certain Sinhalese Buddhist extremist groups that led attacks on Muslin and Christian religious establishments and the demands that were made by them to refrain from certain religious practices. The Petitioner respectfully annexes herewith an Affidavit from Dr. Vickramahahu Karunarathne marked "P1".

The Petitioner states that, Azath Salley personally provided information regarding those responsible for the Dambulla Mosque, Anuradhapura Mosque attacks and the imminent attack on the Kurugala Mosque to the Hon. President of the Republic and pleaded that action should taken so as to prevent further attacks on such religious institutions. The Petitioner states that, Azath Salley, at all times he endeavoured to ensure that all disputes would be settled peacefully.

A true copy of a Letter sent to the President dated 26.04.2013 is annexed herewith and marked "P2".

The Petitioner states that, Azath Salley was instrumental in compiling a collection of Articles written essentially by Sinhalese writers against the conduct and actions of extremist groups and towards the promotion for unity and tolerance and also organised a programme titled "Unity in Diversity towards a True Sri Lankan Identity"which emphasised the importance of racial and religious intolerance.

A true copy of the said compilation titled "Unity in Diversity towards a True Sri Lankan Identity" is annexed herewith marked "P3".

The Petitioner states that, Azath Salley participated in several television debates and discussions and expresses strong views against the attacks on minority religious establishments, on behalf of The Movement for Unity and Power Sharing. He was critical about the fact that certain extremist groups including the Boddu Bala Senawa ("BBS") was inciting Racial and Religious intolerance and disharmony at a time in which the Country has come out of a 30 year long Ethnic War.

The Petitioner further states that, Azath Salley was also critical of the inaction on the part of the Government's and Law Enforcement Authorities in taking meaningful steps to douse the Racial and Religious intolerance spearheaded by the BBS and other extremist groups.

The Petitioner specifically states that, Azath Salley was oppose to any kind of violence and has never advocated violence or terrorism of any form. He was constantly advocating against terrorism, ethnic and religious sectarianism and authoritarianism.

Consequent to the Azath Salley's vocal criticism against the activities of the BBS and the Government's inaction, the Petitioner states that, there was an isolated media campaign carried out against Azath Salley and series of anonymous hate web-postings and SMSes which were false and malicious and which was circulated with the malicious attempt of targeting Azath Salley.

True copies of certain web postings against Azath Salley is compendiously annexed herewith and marked "P4"

The Petitioner specifically states that, from early 2013, Azath Salley along with a group of lawyers monitored the hate campaigns lashed out at the Muslim minority communities and as and when the information was collected, was reported to the Inspector General of Police.

True copies of the said Letters are compendiously annexed herewith and marked "P5".

The Petitioner further states that, certain members of the BBS singled out Azath Salley by making derogatory statements against him. For instance, the Ven. Galaboda Aththe Gnanasara Thera made a public announcement in Kandy on or about 17.03.2013 stating that that "Sinhala Text",යුතු ("We have a big problem with Azath Salley. Azath Salley must definitely be tied up like a dog").

A copy of the said Video of a Buddhist Monk can be found onhttp://www.youtube.com/watch?v=zOO69qvJwqU and a copy of the same in electronic format is annexed herewith and marked "P6"

On or about 21.03.2013, the Petitioner states that, there was an attempt by the Colombo Crime Division to wrongfully and unlawfully arrest Azath Salley on false charges, for which Azath Salley sought Anticipatory Bail before the Learned Magistrate of Colombo. Upon an undertaking received from the Colombo Crimes Division Azath Salley was granted Anticipatory Bail.

A true copy of the Petition is annexed herewith and marked as "P7" and the Petitioner reserves the right to file the Order of the Learned Magistrate Judge

On or about 19.04.2013, the Petitioner states that :

Azath Salley was contacted by officers of the Criminal Investigation Department ("CID") to inquire about a text message that was received by him and 26 other persons which was purportedly sent by a journalist which stated that "Muslims must be careful of the BBS";

In the course of the discussion, the Police Officers told him that, someone identified as "Fahad" had sent 27 SMSes to various persons including Azath Salley and the Police was recording statements from some of the recipients. At no stage did the Police accuse Azath Salley of sending the SMS

He recorded a Statement with the CID stating, inter alia, that his telephone number is known to many people and that he receives many text messages. He said that he cannot recall the receipt of the text. Azath Salley however told the Police Officer that the Muslims must be careful of the BBS as the Government is not protecting them but seems to be supporting the cause of the BBS as there have been no prosecutions and complete inaction as churches and mosques have constantly come under attack;

The Petitioner is not possessed of the aforesaid Statement made by Azath Salley and seeks and appropriate Order from Your Lordships' Court to submit the same to Your Lordships' Court.

On or about 27.04.2013, the Petitioner states that:

At or about 2.30pm many Police Officers from the CID arrived in Motor Bikes, a Jeep and a Double Cab to Azath Salley's residence;

Upon being informed that Azath Salley was out of Colombo, a Police Officer who identified himself as Sub Inspector Ratnayaka (3^rd Respondent) informed the Azath Salley's wife that Azath Salley must come back to Colombo immediately in order to record a Further Statement regarding a Text Message;

Immediately thereafter, SI Ratnayaka telephoned Azath Salley and stated that the Law required Azath Salley to tender an Additional Statement and insisted that he immediately return back to Colombo;

Azath Salley however stated that he had nothing further to add pertaining to the Statement concerning the aforementioned Text Message.

The Petitioner states that, he is aware that Azath Salley was informed by his family that a Police jeep remained outside his house till the next day [i.e. 27.04.2013] in order to monitor the movements in and out of the Azath Salley's Residence, while he was away on his political activities.

On 26.04.2013, Azath Salley was informed by his family that a purported Notice had been handed over to Azath Salley's wife requiring Azath Salley to be present at the CID Headquarters – 4^th Floor on 29.04.2013. However, the said Notice did not carry any Official Seal and/or Letter head. Further it did not indicate the reasons for which he has been summoned. Upon taking Legal advice, Azath Salley did not report to the CID.

A true copy of the said purported notice is annexed herewith and marked "P8"

On or about 28.04.2013, the Petitioner states that, in response to the continuous malicious media attacks, the Media Unit of the National Unity Alliance wrote to all State and Private Media Organisations condemning the defamatory publications made and stating further that such wrongful accusations were to politically dislodge Azath Salley and to prevent the Azath Salley from conducting the scheduled May Day rallies in 2013.

A true copy of the said letter dated 28.04.2013 is annexed herewith and marked"P9".

On or about 02.05.2013, the Petitioner states that at or around 5.55am hundreds of police and Special Task Force surrounded the residence Azath Salley was staying in. The 3^rd Respondent recorded a short statement from the Petition and stated that he would be arrested. The 3^rd Respondent who arrested Azath Salley thereafter issued an arrest note stating that he is arrested for purported offences committed under section 120 of the Penal Code and section 2(h) of the Prevention of Terrorism Act.  A copy of the arrest note is annexed hereto marked "P10".

The Petitioner states that, the main Affidavit filed in this case is filed by Ms. Sithy Amina Azath Salley, the daughter of Azath Salley which sets out the details of the arrest.

The Petitioner states that since the time of arrest, the family of Azath Salley and his Attorneys attempted to see him from or around 12.00pm. However, his lawyers were permitted to see him briefly in the presence of the CID officers at or about 3.00pm.  Several Parliamentarians proceeded to the CID to meet him but the CID did not permit any one of them to see him. Mr. M.A. Sumanthiran, Attorney-at-Law, was however permitted to interview Azath Salley as his Lawyer but his entire interview was video recorded by a CID officer. The family members were not permitted to see Azath Salley or to give him his medicine though Azath Salley was a diabetic patient, undergoing treatment for about 07 years. The Petitioner states that, the CID Officers refused to even accept Azath Salley's medicine that was given to them by his family.

The Petitioner states that, as far as he is aware, Azath Salley has been questioned regarding an Interview he had given to a Indian based media organisation named "Junior Vikatan" and that there had been an error in the article quoted in the interview and that a suitable correction had been published by the said media unit after Azath Salley had complained to the "Junior Vikatan".

The Petitioner states that the family member of Azath Salley have been able to obtain a copy of the interview to the "Junior Vikatan" and the correction Azath Salley submitted in Tamil is marked "P11A" and "P11B"  respectively and reserves their right to submit a translation of the same to Your Lordships' Court.

On or about 03^rd May 2013, Azath Salley was admitted to Ward No. 55 of the National Hospital and the defence authorities had covered the Corpus' bed with a screen so that no one could see him. The Petitioner further states that there were many Police Officers, CID Officers and member of the Special Task Force who was guarding the entrances and the corridors and also prevented Azath Salley's family from seeing or visiting Azath Salley.

The Petitioner states that, on the very same day [i.e. 03.05.2013] even though Azath Salley's condition was deteriorating, he was taken back to the CID.

On or about 06.05.2013, Azath Salley was once again brought to the Colombo National Hospital. At this point, upon representations made to the Director of the CID, the family members of Azath Salley were permitted to briefly visit him. The Petitioner states that Azath Salley was in very poor health condition and at which point the Hospital Authorities began forcibly administering Saline to him.

The Petitioner states that, Azath Salley has hitherto not been produced before a Magistrate nor has he been detained in terms of any valid Statutory Provision of the Law and that even by 6^th May 2013, no valid Detention Order has been handed over to the Corpus.

The Petitioner states that he has reason to believe that Azath Salley will be kept in long detention, unlawfully and for a collateral purpose purportedly on the basis of unsubstantiated allegations. In that event his Right to Life and/or Right to engage in Political activities and/or Right to engage in legitimate civil liberties will be seriously curtailed.  The Petitioner states that to-date no Detention Order under PTA has been served on Azath Salley.

In the aforesaid circumstances the Petitioner states that, Azath Salley's arrest and detention is for a collateral purpose and without any constitutional justification which is contrary to Articles 13(1) and 13(2) read with Article 12 of the Constitution. Such arbitrary arrest and detention is likely to deprive Azath Salley of his liberty and in the circumstances of this case may result in the Azath Salley being extra judicially executed in violation of Article 11 read with Articles 17 and 13(5).

The Petitioner further states that, Azath Salley has been subjected to cruel and degrading treatment in violation of Article 11 of the Constitution."

(Paragraph numbering as in shown in the original petition has been removed)

Both these testimonies come from two prominent citizens of Sri Lanka. The first was the owner, until recently, of one of the well known media establishments and presently the editor of the Leader newspapers. The second is the General Secretary of the National Unity Alliance, a recognised political party and was a former deputy mayor of the Colombo Municipal Council. He has been actively engaged in politics from around 1997 and has been constantly reelected as a municipal councilor.

Azath Salley was released within a few days of his arrest due to the massive protest that arose from within the country which was reechoed by many international players. According to a lawyer who spoke on his behalf an agreement was reached with the government not to proceed with the fundamental rights petition. There is also a habeas corpus application filed before the Court of Appeals which is also pending.

These testimonies highlight the actual conditions under which Sri Lankan citizens are living today. A security apparatus which is sophisticatedly designed carries out surveillance on the media as well as against anyone who dares to express a view that is contrary to the government's version of things. Severe punishments are attached to those who wish to exercise their normal freedoms as citizens. Everyone has to submit themselves to enforced self paralysis.

Sampur to result in more burdens for people MONDAY, 13 MAY 2013 In addition to the immense losses already incurred by the Ceylon Electricity Board (CEB), it would incur an additional loss of a staggering Rs.7.6 billion annually after the Sampur Coal Power Plant is fully operational, the Coalition against Corruption said today. Despite Government assurances that the people’s financial burdens resulting from the electricity tariffs being increased would be eased after the construction of the power plant, the coalition said the people were likely to pay a further Rs.1,525 on their electricity bills following the completion of the Sampur power plant. “This is due to the fraudulent nature of the agreement with the Indian company which was hired to construct the power plant,” coalition spokesman Saman Ratnapriya charged. He said if the power plant was built according to international standards the rate of efficiency of the power plant should be 40%, however in the agreement with India, the CEB had agreed to a reduced rate of 33% efficiency, which meant the country would incur an annual loss of up to Rs.4.9 billion. Mr. Ratnapriya said the annual expenditure incurred on maintaining the power plant would increase up to US$32 million which meant that the CEB would incur a loss of Rs.1.2 billion annually. He said if adhered to internationally recognised standards the return on investment of a 500 megawatt power plant such as the Sampur power plant should be 18% in US dollars annually but instead it had been reduced to 12% in the CEB agreement which would result in a loss of Rs.1.2 billion. (Olindhi Jayasundere)

Sampur swindle?

By Cheranka Mendis- May 14, 2013
As losses mount at the Ceylon Electricity Board and its pressures reflect on the monthly electricity bills of consumers, more losses estimated at Rs. 7.63 billion are to be expected annually if the legally null agreement of the proposed Sampur Power Plant is carried forward.

Coalition against Corruption yesterday brought to public notice that the agreement signed in October 2011 between Indian National Thermal Power Corporation (NTPC) and then CEB Secretary and CEB Project Director is null and void as it does not have the consent and approval of the Cabinet, CEB Director Board and the Public Utilities Commission as legally required.

Protecting the secrecy of the deal, even John Seneviratne, who then acted as Minister of Power and Energy, was also not notified of the agreement. However, work on the power plant is expected to commence soon, they said.
Noting that the 500 mega watt coal power plant is riddled with loss-making liabilities for the country, Coalition against Corruption Co-convenor Saman Ratnapriya stated that according to the agreement, the losses come under three stages.
Efficiency of the power plant which is expected to be maintained at 40% according to international standards has been noted at 33% in the agreement, which will mark losses between Rs.2.6-4.9 billion annually for the CEB.
The annual maintenance cost which is estimated at US$ 20.5 in the feasibility report has been recorded as US$ 33.5 million which will incur losses of Rs. 1.56 billion when calculated under the current exchange rate. The ROE value has been noted at 12% in the agreement, which would drive forward losses close to Rs. 1.2 billion.
When the agreement was signed, the entire capital cost of the project also remained blank, the Coalition said, so that the CEB and NTPC officials could later add a high cost and swindle money. Now estimated at US$ 500 million, NTPC will only put in US$ 75 million for the project while the loss-making CEB has agreed to put in another US$ 75 million. The remaining US$ 350 will have to be borrowed and will be recorded as debt.

“When all this is considered, losses of CEB will increase from Rs. 7.63 billion from the Sampur project alone,” Ratnapriya said. “Moreover all these losses will have to be borne by the consumer.”
The Government has now issued a Cabinet paper noting that the loss will be taken care of by the Treasury. Requesting Cabinet ministers not to accept the paper, he noted that the losses should be acquired from the officials who engaged in such fraudulent activities and not the general public.
“The Government has already increased electricity prices to an extent that the general public is under severe pressure. From the recent increase, the Government expected revenue of Rs. 222 billion,” he asserted. “After the announced ‘concession,’ the estimated revenue for the Government is Rs. 214 billion.”
The recent power agreements have all been made under sham conditions, Ratnapriya said noting that the Norochcholai plant which has failed 21 times during a period of a year was given to China National Machinery Import and Export Corporation (CMEC), even though under the tender process the bid should have been awarded to NTPC. Yugadanaw plant has also failed 17 times, he said. “A unit of hydro power costs Rs. 3.50, but thermal power unit costs between Rs. 20-40. Why buy the thermal power unit at a higher cost?”
Member of the coalition Joseph Stalin added that this would mean Rs. 1,525 being added to the energy consumers’ monthly bill in the near future. “We must immediately cancel the agreement as it does more harm to the country than good.”
“CEB is being maintained in a way that it promotes corruption and fraud. After the retirement of Chief Financial Officer Sunil Perera in November 2011, no one has been appointed to the position. There is also no chief human resource officer at CEB.”
Stalin added: “If the Government can manage losses of companies such as Mihin Air which has recorded losses of Rs. 8,500 million over a five-year period and SriLankan Airlines with losses of Rs. 20,500 million, why can’t it bear the losses of CEB and not pressurise the consumers this much?”

Sapugaskanda refinery to close down as crude oil shipment has not arrived

(Lanka-e-News -13.May.2013,11.30PM) The Sapugaskanda refinery is to be closed down again because the shipment of crude oil had not arrived, according to reports reaching Lanka e news. This closure could take place tonight or tomorrow , inside sources say.

The necessary amount of crude oil is almost finished for refinement , and the ship with the oil cargo was scheduled to arrive on the 25th , but over some issue the arrival is not certain now. Due to this , the work at the refinery had diminished .As at today the work at zone one and zone two had ground to a complete halt. It is diesel and petrol that are being refined in those zones now..

Previously, on two occasions because of the non availability of crude oil the Refinery had to be closed down. When the refinery is closed down and re opened later , large amounts of public funds go down the drain .

It is the consensus among all that while the new Minister of petroleum resources Anura Priyadharshana Yapa is enjoying watching video films at his home , his Ministry is functioning at snail’s pace.

harshana Yapa is enjoying watching video films at his home , his Ministry is functioning at snail’s pace. Has IMF Medicine Become Irrelevant In Sri Lanka? Maybe Not By W.A Wijewardena -May 14, 2013  Dr. W.A. Wijewardena The Central Bank: Easing the monetary policy is the best Sri Lanka’s Central Bank cut its two basic interest rates last week – its REPO rate or Repurchase rate that it uses to crunch the excess liquidity in the market and its Reverse REPO rate used for pumping money to the system to stimulate the economy – by historic half a percent. Accordingly, REPO rate now stands at 7 per cent per annum and Reverse REPO rate at 9 per cent. The Bank in its press statement has said that it has taken this measure “to stimulate the domestic economy, particularly in the light of the gradual moderation in headline inflation and subdued demand pressures in the economy”. The Bank has also claimed that it could now push the economy back to a high growth path by increasing money but without permitting the inflation to raise its ugly head once again. The Bank has named this extraordinary skill as ‘policy maneuverability’ which means that it can increase money supply adequately to promote growth but it also can cut that money supply at the appropriate time if it leads to unwarranted inflation. If a parallel example is used to explain this skill, it goes as follows: There is a diabetic who is clumsy and lazy because he does not get sufficient energy due to cut in sugar intake. Then, there is a smart physician who increases his sugar intake sufficiently so that he becomes active again. Now, if that sugar level in his blood increases to dangerous levels, the physician is said to be able to cut the sugar without harming the diabetic. The ability to change the sugar level in the diabetic just at the appropriate time from more sugar to less sugar to attain the particular goal is called ‘policy maneuverability’. This micro management is easy for a single diabetic. But if all are diabetic, it may not easy as it is claimed. IMF: Don’t ease monetary policy Two days before the Central Bank went for this historic policy maneuverability experiment, the Executive Board of the International Monetary Fund or IMF issued a warning to Sri Lanka in its routine country assessment report. While emphasising on the need for having a holistic approach to solving the country’s alarming economic problems, IMF cautioned against the easing of monetary policy in the next few months and advised that the exchange rate should not be defended aggressively. What it meant was that the Central Bank should not cut its interest rates and promote credit in the hope of stimulating the economy (or giving sugar to the diabetic) and sell foreign exchange from its reserves in the market to prevent a natural fall in the exchange rate. Its policy advice covered a broad range of activities. It said that Sri Lanka should watch inflation closely to prevent it from rising again, reduce unwarranted growth in bank credit, improve the budget by increasing tax revenues and avoid guaranteeing the foreign exchange borrowings which the Sri Lankan banks have been raising recently with the blessings of the Central Bank. Coupled with these good overall economic management policies, IMF has said that the country should have a proper policy package to promote foreign direct investments or FDIs. Two opinions by two doctors                                                      Read More

WikiLeaks: ‘Karuna As A Military Force Is A Myth’ – Gota To US

May 14, 2013 

“Mann expressed concern that government forces had given excessive freedom to the LTTE-breakaway “Karuna group,” which was using this freedom destructively. Ambassador noted that reports from NGOs and international organizations in the Batticaloa area indicated that the Karuna cadres were roaming freely and out of control through the cities, intimidating the population and plundering NGO warehouses of whatever they could use for their bases.” the US Embassy Colombo informed Washington.

Gota and Karuna

The US Embassy wrote; “Gothabaya, smiling, said he had recently received a scolding from his brother, the President, on this matter. He told us that once the army gets control of Thoppigala (the area to which the LTTE retreated from Vakarai), it could assure full governmental control in Batticaloa. ‘Why go to the effort to clear an entire area just to hand it over to someone else?’ The plan, he said, was to hand over control of the towns soon to the police, including the Special Task Force, leaving the military to deal with the jungle fighting. In the long run, the GSL would need to recruit Tamil and Muslim policemen who would be subject to local control to improve relations with those communities. Previous attempts to recruit and train Tamil-speaking police had failed because they were premature, he thought.”

The Colombo Telegraph found the related leaked cable from the WikiLeaks database. The cable is classified as “Confidential” and recounts a meeting the US Embassy had with the Secretary to the Ministry of Difence Gotabhaya Rajapaksa. The cable was written on March 14, 2007 by the US Ambassador to Colombo Robert O. Blake.

The ambassador wrote; “Gothabaya said that he would not have a problem with the Karuna group emerging as a purely political force. In fact, he said ‘Karuna as a military force is a myth. It’s a plus for us that he’s no longer with the LTTE ) but all our operations are carried out by the Sri Lankan military. We do not need or want his help.’”

Placing a comment Blake wrote; “Gothabaya’s comments on the relations between the Karuna group and the government confirmed what the president had told us an hour before ) that the government will seek to draw the Karuna group into the political mainstream as a normal political party. Embassy, however, agrees with most observers that the near-term prospects for a return to normalcy in the East in a political landscape dominated by the Karuna group, with its terrorist origins, are remote. Gothabaya’s explanation of the government’s six-month military strategy pointedly did not include an all-out drive to invade the Tiger-held Vanni and finish off the LTTE once and for all, something that few analysts here feel the government forces could do. On the other hand, there are a number of indications that the Sri Lankan defense leadership is in fact bent on pursuing a decisive military victory.”

Read the cable below for further details;

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WikiLeaks: Gota Agreed To Provide US A Copy Of Prabhakaran And Karuna Tape

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Myanmar must avert further humanitarian disaster as cyclone approaches

More than 140,000 individuals – mostly from the Rohingya Muslim minority – are currently displaced across Rakhine state in Myanmar.

© Paula Bronstein/Getty Images

Heavy monsoon rains and a tropical cyclone threaten the lives of tens of thousands of displaced persons in western Myanmar unless the authorities immediately step up efforts to protect them, Amnesty International said.

“The government has been repeatedly warned to make appropriate arrangements for those displaced in Rakhine state. Now thousands of lives are at stake unless targeted action is taken immediately to assist those most at risk.

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Isabelle Arradon, Amnesty International’s Deputy Asia Pacific Director.

More than 140,000 individuals – mostly from the Rohingya Muslim minority – are currently displaced across Rakhine state and have been living in temporary shelters since violence erupted between the Buddhist and Muslim communities in Rakhine state in June 2012. Around half are located in low-lying areas prone to flooding.

According to information released by the US military, cyclone “Mahasen” is expected to reach the area by late Wednesday or early Thursday morning.

“The government has been repeatedly warned to make appropriate arrangements for those displaced in Rakhine state. Now thousands of lives are at stake unless targeted action is taken immediately to assist those most at risk,” said Isabelle Arradon, Amnesty International’s Deputy Asia Pacific Director.

Authorities in Myanmar are said to have taken some measures, including identifying evacuation sites and broadcasting announcements in and around the coastal town of Sittwe to warn residents of the impending storm.

However, several of the identified evacuation sites are within already established camps for internally displaced persons or fail to have adequate storm-ready structures, and storm warnings have not been provided to all at-risk displaced communities outside of Rakhine state’s capital city, Sittwe.

The authorities also continue to impose restrictions on freedom of movement for Rohingya in Rakhine state, including those who are confined to ill-equipped camps.

“The government must facilitate assistance without discrimination, including by lifting any restrictions on movement and ensuring humanitarian groups have access to all individuals in need. The freedom for Rohingya to seek higher ground may be their only chance to avoid potential flooding from heavy rains,” said Arradon.

The Rohingya have faced discrimination for decades in Myanmar. They are not recognized as an official ethnic group and continue to be denied equal access to citizenship rights. Their rights to study, work, travel, marry, practise their religion, and receive health services are restricted to various degrees.

Since the violence last June, Buddhist and Muslim communities have been living largely segregated from each other and tensions remain high.

“Considering continuing tensions between Buddhist and Muslim communities in Rakhine, the authorities need to prepare for the possibility of violence during an evacuation situation or in the aftermath of a storm. Addressing the discrimination of the Rohingya community and taking urgent steps towards accountability for last year’s violence will be crucial to prevent future abuses,” said Arradon.

State security forces carried out human rights violations during last year’s violence in Rakhine state and failed to protect people from attacks, including Rohingya.

US government 'seized AP phone records'

News agency calls secret seizure of telephone records of its journalists as "massive and unprecedented intrusion".

Last Modified: 14 May 2013

The US government reportedly secretly seized telephone records of reporters and offices belonging to Associated Press news agency for a two-month period last year, the agency has said. The Associated Press on Monday described the action, which targeted its correspondents, as a "massive and unprecedented intrusion" into news-gathering operations. AP Chief Executive Gary Pruitt, in a letter posted on the agency's website, said the AP was informed last Friday that the Justice Department gathered records for more than 20 phone lines assigned to the agency and its reporters. "There can be no possible justification for such an over-broad collection of the telephone communications of The Associated Press and its reporters," Pruitt said in the letter, which was addressed to Attorney General Eric Holder. An AP story on the records seizure said the government would not say why it sought the records. But it noted that US officials have previously said the US Attorney's Office was conducting a criminal investigation into information contained in a May 7, 2012, AP story about a CIA operation in Yemen that stopped an al-Qaeda plot to detonate a bomb on a plane bound for the US. In testimony made in February, CIA Director, John Brennan, noted that the FBI had questioned him about whether he was AP's source, which he denied. He called the release of the information to the media about the terror plot an "unauthorised and dangerous disclosure of classified information". Freedom of the press Prosecutors have sought phone records from reporters before, but the seizure of records from such a wide array of AP offices, including general AP switchboards numbers and an office-wide shared fax line, is unusual. Five reporters and an editor involved in that story were among those whose phone numbers were obtained by the government, the news agency said. The US Attorney's Office, which notified the AP of the seizure, issued a statement on Monday saying it was "careful and deliberative" when dealing with issues around freedom of the press. "We take seriously our obligations to follow all applicable laws, federal regulations, and Department of Justice policies when issuing subpoenas for phone records of media organisations," the office said. The seized phone records were for April and May of 2012 and AP bureaus in New York, Hartford and Washington were among those affected, as well as an AP phone at the US House of Representatives press gallery, the AP said.