Tax policy breeding inequality, injustice: DEW

June 9, 2013, 7:47 pm 

President Mahinda Rajapaksa has a word with COPE Chairman DEW Gunasekara at the laucn of the Treasury annual report.

Pic by Jude Denzil Pathiraja

Inequality and injustice is huge in Sri Lanka because of massive tax evasions in the country warned Senior Minister of Human Resources and Chairman Parliamentary Committee on Public Enterprises (COPE) D.E.W. Gunasekara. "We can keep borrowing to build infrastructure but we must not forget that people also have to make end meets," the minister said at the launch of the 2012 annual report of the Ministry of Finance and Planning in the presence of President Mahind Rajapaksa at the Treasury’s financial studies academy Miloda in Colombo.

"Economic growth has doubled. The per capita income has doubled. But where is the evidence and can we see the results? Is it in the Treasury’s report or can we see an improvement in living standards?" the outspoken senior minister asked.

"The tax-to-GDP ratio is the lowest since independence and non-direct taxes account for the bulk of the government’s tax receipts. This shows that income disparity is huge. Inequality is rising and this is a huge injustice to the people of the country," Gunasekara charged. "We need to take a look at our taxation policy," he urged the President.

"If we fail to reform our three revenue houses, Customs, Excise Department and Inland Revenue Department, then everything we do becomes pointless. There is massive tax evasion in the country and it is an injustice to the people of this country that is allowed to continue. We need to increase investment on education and healthcare but where will the money come from? We can keep borrowing to build infrastructure but we must not forget that people also have to make ends meet, they must live!"

He also charged that 28 state-owned enterprises paid PAYE taxes amounting to Rs. 2 billion on behalf of public officials.

Gunasekara urged direct taxes should increase while in-direct taxes should fall.

President Mahinda Rajapaksa speaking later said there was a problem with the tax system. "We must come-up with something appropriate. There is a popular saying that we must draw nectar without smashing the flower, likewise, we must extract taxes from the business sector," a smiling President said.

The problems that Gunasekara referred have been articulated by top economists in the country and organisations such as the IMF.

The ratio for direct:in-direct taxation in Sri Lanka is close to 20:80.

"As long as the revenue from direct taxation remains low, this ratio will prevail and this in turn means that the bulk of the burden of indirect taxation will be felt by the poor people," Dr. Saman Kelegama, Executive Director, Institute of Policy Studies told a recent forum. He said the ideal was a ratio of 40:60.

In 2012, revenue declined to 13 percent of GDP from 14.3 percent of GDP in 2011, mainly due to tax revenue declining from 12.4 percent of GDP in 2011 to 11.1 percent in 2012.

Revenue from VAT declined by 0.8 percent of GDP in 2012 compared to 2011 (3.5 percent to 2.7 percent of GDP), mainly due to many exemptions or zero ratings.

Income tax declined from 2.4 percent GDP in 2011 to 2.3 percent of GDP in 2012 due to rate adjustments not being matched by broadening the tax base in 2012.

"Part of the reason for the slippage is the country’s heavy reliance on indirect taxes, which account for over 80 percent of total tax revenue. This shifts the burden of taxation onto the poor," a UNDP report said (Sri Lanka Human Development Report 2012).

"The Government may wish to revisit the balance between direct and indirect taxation for several reasons: to spread the burden of taxation more evenly, to improve revenue collection, to achieve better governance and accountability, and to ensure that revenue is in line with growth. Empirical evidence suggests that governance mechanisms are likely to be more robust in countries where the government relics heavily upon general taxation for its revenues. At the same time, taxation should not distort the business environment and force relocation of enterprises," the report said.

According to a recent ILO report income inequality in Sri Lanka has grown significantly and is only behind China.

"Income disparities have risen in many developing Asian countries, despite remarkable economic growth and poverty reduction in recent past decades. This trend can undermine economic sustainability and threaten social cohesion. Among countries with higher income inequality (measured by a Gini coefficient of 40 or higher), the ratio in China and Sri Lanka increased significantly by 10.0 points and 7.8 points respectively," the ILO said in its April 2012 edition of the Asia Pacific Labour Market Update.

It also showed that one in five Sri Lankan youth are unemployed, with the number of female youth out of work 11.7 percent higher than males.

Own-account and contributing family workers accounted for 42 percent of the labour force.

"On the surface, we have seen Sri Lanka achieve good employment growth and economic growth. But this is only on the surface and if we look carefully there are some concerns and a lot of work needs to be done," said ILO Labour Economist Phu Huynh as quoted in these pages last December.

"Despite the strong economic growth, we are concerned that formal sector employment is showing very little growth while Sri Lanka’s informal sector continues to be large. We have seen employment increase faster across the informal sector such as in the daily wage category and those working in households. So the country’s employment growth is not really coming from the formal sector and this is a concern because it leads to a question as to whether the economic growth was creating enough quality jobs," Huynh said.

The Opposition has also charged that the 5 percent levy on gambling was absurdly low and aimed at attracting big players without considering the returns to citizens of the country. "In Macau, the VIP casino tax is 39 percent while the normal casino tax is also 39 percent. In Singapore the VIP rate is 12 percent and the normal rate is 32 percent. In the Philippines it is 17 percent and 27 percent. The VIP and normal casino tax rate in Malaysia is 25 percent each," UNP Economic Spokesman Dr. Harsha De Silva MP said.

Sri Lanka: Brief Shining Moment In Judicial History

By Chelvatamby Maniccavasagar -June 10, 2013 

108th Birth Anniversary of Supreme Court Justice Pon Sri-Skanda-Rajah 

Judges are born, not made. On the memories of men like Justice Pon Sri Skandarajah, the high standards of the Bench were uplifted and held aloft. Born in 1905, he became an advocate in 1932, magistrate in 1938 and retired from the Supreme Court in 1967.

Justice Pon Sri-Skanda-Rajah

It is very often said that the truly great are not the men of wealth, of possessions, not men who gain name and fame, but those who testify to the truth in them and refuse to compromise whatever be the cost. They are determined to do what they consider to be right. We may punish their bodies, refuse them comforts, but we cannot buy their souls, we cannot break their spirits, whoever possesses this invulnerability of spirit even to a little extent deserves our admiration.

In fact, former Supreme Court Judge Pon Sriskandarajah possessed in ample measures all these qualities since he always considered it a sacred duty to dispense justice impartially. Further, he was always guided by the following words of one of our greatest poets Subramania Bharathiar who said that “He who forgets not God and fails not in his duty, no matter whatever befalls him and however much he suffers, will at the end attain honour and happiness”.

Early education

As a Supreme Court judge, he discharged his responsibilities with unsurpassed distinction and unsullied honour and preserved the dignity of the courts and the image of justice. The secret of his success as a good judge is that he is deeply religious and the lowliness of his character and versatility of his intellect were remarkable.

Justice Sri Skandarajah was born in 1905 in Thondaman Aru in Vadamarachchy in an orthodox and conservative family. His father Ponnu Duraiswamy and his mother Katpakam were religious minded parents who brought up their children in a religious atmosphere. As they were very religious minded and were great devotees of Lord Muruga they went on a pilgrimage to Kattirgamam and there Katpakam developed fever and diarrhoea and she breathed her last in the night of the full-moon. She had to be cremated on the banks of the Manicka Gangai. The mother having been blessed with a remarkable end to her short, but fruitful life, the offspring were too young to be taken care of by the grief stricken and inexperienced father. As such, Viswalingam and his vivacious wife, Thangammah offered to take them over and foster them. At this time Thangammah was expecting her first child to be born in September, roughly ten weeks later. The baby was a daughter and was named Kanmany who was Justice Sri Skandarajah’s cousin and subsequently became his wife.

Criminal cases

Kanmany was a very responsible young lady and although she looked forward to pursue medical studies, had to forsake this in order to enable his cousin Sri Skandarajah to move forward in the legal field. As the wife of Justice Sri Skandarajah Kanmany took great interest in Tamil language and Saiva Sidhanta, Periya Puranam, Thevarams and Thirupugal. In later years she became a well accomplished public speaker on Saiva Siddhanta at Saiva Siddhanta Maha Samajam in Virudhu Nagar, Madurai in South India and also in Singapore and Malaysia.

Justice Sri Skandarajah received his early education at Jaffna College, Vaddukkoddai where he excelled in studies and sports captaining the junior football and cricket teams and subsequently the senior teams in the same sport.

Justice Sri Skandarajah lost his father Ponnu Duraiswamy in 1921, when he was 16 years. On completion of his seconding education, he entered the University College, Colombo in 1924, where he was awarded colours in cricket, football, rugby and tennis.

Justice Sri Skandarajah entered the Law College on July 2,1928 and passed the first examination in July 1930, second examination in January 1931 and the final in July 1931 and was awarded the prize in insolvency at the finals. At the Law College he captained the tennis team. He was called to the Bar on March 17,1932 and that time J R Jayewardane and Ediriweera also took their oaths before Justice Garvin and Justice Akbar.

Justice Sri Skandarajah attended the Chambers of Francis Soertz (KC) who had a tremendous practice and great reputation. Besides, he had great respect and admiration for Sri Skandarajah. Francis Soertz became a Supreme Court judge and later he was knighted. He was endowed with charisma, a remarkable memory, a superb command of English and a brilliant flow of words.

Law reports

Justice Sri Skandarajah started practising at the Court of Requests in Colombo and thereafter shifted to Point Pedro and appeared in several criminal cases and won the admiration of many spectators and proctors. His fame and name spread far and wide and proctors at Point Pedro readily retained him. He was always equipped with the necessary Law Reports, so that he could call on appropriate references and many of the presiding judges asked for his opinion when he was not appearing in any particular case. He practised in Chavakachcheri, Trincomalee, Batticaloa, Vavuniya, Mannar, Mallakam and Matale.

On May 31,1938, he was appointed as Magistrate at Dandagamuva. This was his first appointment. He was transferred to Negombo in September 1940. Justice Sri Skandarajah worked in Galle in 1944 and left for Matara at the end of December, as Additional District Judge. He also functioned as Supernumerary Judge in 1946 at Trincomalee. From July 1947 to December 1947, he served as District Judge at Batticaloa. In 1947, he assumed duties as Chief Magistrate, Colombo and when the Kelaniya Temple case came up for Trial, J R Jayewardene who was the Finance Minister then gave evidence on behalf of the accused, who were charged with breach of peace and criminal damage. When the trial concluded on February 1949, Sriskandarajah disbelieved the evidence and convicted some of the accused. The leading newspapers had front page headlines with glaring publicities. The afternoon papers carried extracts from the case giving details.

Prime Minister D S Senanayake also advised Mr Jayewardane not to give evidence saying “Justice Sriskandarajah will not hesitate to do what is right. He will not be influenced by anybody, even if he is his friend”.

The accused filed appeal, wheel’s moved behind the scenes and the new Acting Chief Justice postponed cases listed before him in Galle and turned up in Colombo to hear only that appeal. The rest of the appeals in Colombo were heard by the listed Judge, Justice Gratien. The acting Chief Justice Wijewardane who was also Chairman of the Judicial Service Commission held a hurriedly convened meeting of the commission and the Chief Magistrate Sri Skandarajah was promptly transferred from Colombo, as District Judge, Matara. From Matara, he was transferred to Point Pedro as District Judge in consideration of his decline in health. In fact, Point Pedro is the Northern most location in Ceylon from Southern most location Matara.

Religious activities

Justice Sri Skandarajah rendered tremendous service in the sphere of religious activities. The service which he performed in the Saiva Munnetra Kalagam and All Ceylon Hindu Congress should be written in golden letters.

In recognition and appreciation of his immense service for Hindu Association in Thampalakamam and Matara and several other places he was conferred the Title of “Saiva Sigamany” by the Thirugnana Sambandar Aadhernam of Madurai, South India in May 1964. He was also the first President of the Music Society of Sri Lanka. Further, he took all possible steps with the assistance, co-operation and support of several judges, educationists, man of eminence and erudition for opening of Hindu Temples in Jaffna for Harijans.

He was also a great devotee of Yogarswamy of Colombuturai, Jaffna. In fact, he rose above narrow parochialism, regionalism, sectarianism and communalism.

Undoubtedly Justice Sri Skandarajah was a comet who blazed momentarily across our skies leaving in its trail a luminescence which the passing of time can hardly erase.

CID ignores Court order

By Chrishanthi Christopher-2013-06-10 

Despite the Court order to the Criminal Investigation Department (CID), to advertise in the media, calling on people to come forward to give evidence with regard to those who are missing in the period of the JVP insurrection in 1988-89, the advertisement had not been published in any media, to date.

However, around 70 of the families who had lost their kith and kin, had lodged their complaints at the JVP office in Matale, responding to the JVPs call to do so.The complaints will be screened before the affidavits are made and submitted to the Matale Police, JVP sources said.  Former JVP Provincial Council member, Gamagedera Dissanayake, speaking to Ceylon Today, said people are coming every day to give evidence and their cases are being perused.
Dissanayake said, lawyers are reviewing the authenticity of the evidence submitted, after which it will be approved, and they will proceed to prepare affidavits to be submitted to Court.

He went on to say that 22 more affidavits had been submitted to Court on 5 June, and the Matale Magistrate, Chaturika de Silva, had accepted them, and had directed that they give their statements to the police. Depending on the veracity of the statements, the Court will determine whether to accept them.

In all, 36 affidavits had been submitted, and accepted by the Matale Magistrate, who had directed the people concerned to go to the Matale Police Station on 11, 12 and 13 June when the CID will be present to record their statements.

Bailed out
2013-06-10 
The image shows former Homagama District Court Judge Sunil Abeysinghe who was arrested and remanded on charges of bribery leaving the Court premises after being released on bail. Sunil Abeysinghe was arrested on 03 June by the Commission to Investigate Allegation of Bribery or corruption for obtaining a bribe of Rs 300, 000 from an individual, to waive the judgment in his support in the case handled by the judge.  Pix by Manjula Dayawansa

CJ Impeachment: Order Due On Preliminary Objections To Controversial Appeal By AG

June 10, 2013 

The controversial Supreme Court leave to appeal application by the Attorney General from the Appeal Court ruling that the arbitrary findings of the Parliamentary Select  Committee (PSC) to conduct an inquiry to impeach Chief Justice Dr. Shirani Bandaranayake was illegal, was taken up today (10.06.2013) before a special bench set up to hear it. A previous ex parte order obtained quietly by the AG was set aside earlier after two of the respondents lodged strong written protest.

Chief Justice Shirani Bandaranayake

Those two respondents – Vijitha Herath, JVP MP and R. Sampanthan, TNA MP who had walked out of the PSC protesting its misconduct of proceedings and lack of due process, had filed further written preliminary objections dated 07.06.2013, to be considered by the Supreme Court today. They were to the effect that the AG has no standing as a non-party to the original case, having merely been requested by the Appeal Court to assist (as amicus curiae – a friend of court) by making submissions. He now seeks to upset the ruling, which none of the parties have appealed.

Counsel for the 11th Respondent M. A. Sumanthiran told the court that the Attorney General has tried to make an appeal as an ‘interloper’. Attorney General Palitha Fernando, PC objected strongly to the term. However Sumanthiran said this is the correct term to use as per the legal precedents. He said his submissions are intended to protect the honour of the court, and not for any personal gain of his client. Therefore he said, though his submissions are uncomfortable to some, it is well meant and purely to protect the integrity of the judicial function. He urged the court not to depart from over 200 years of judicial tradition.

CJ Impeachment Order Due on Preliminary Objections to Controversial Appeal by AG by nelvely

Vaas well and truly exposed by his own subordinates –how blood money was collected etc.
(Lanka-e-News-09.June.2013, 9.30PM) The relatives of those who were murdered are deeply shocked and dismayed over the interrogations conducted into the cold blooded contract murders committed by DIG Vaas Gunawardena , and the failure of the State to take him into custody in the face of such glaring copious evidence arrayed against him.

Following the statements recorded of the two underworld criminals , the police officers and the Mudalalis (businessmen) who gave blood monies to DIG Vaas Gunawardena , it had clearly come to light without any trace of doubt that Vaas is the key player and leader in these contract murders . Hence by not taking him into custody it has become crystal clear that the rule of law is dethroned and jungle law is enthroned under the present rule of beasts and brutes.

Lakmini Bamunusinghe SI working under Vaas Gunawardena and who was arrested by CID had also made a confession that Vaas gave him money to commit a murder. The SI who is attached to the North western division Peliyagoda DIG office , and three Police constables (PC) belonging to the special police unit of Vaas Gunawardena have been taken into custody. Sanjeewa Priyantha PC No. 67656 and Gamini Sanathchandra PC No. 51798 are two of the constables in custody.It is PC Sanjeewa Priyantha who had been the driver of the vehicle in these murders . He had disclosed that on one occasion by white Van and on other occasions by police vehicles the victims were abducted , and that DIG Vaas had provided the vehicles for these crimes.

Bamunusinghe SI had also by making a confession stated that two days prior to the murder of Bambalapitiya Shyam , Vaas Gunawardena introduced Mohomed Fowradeen who gave the contract to kill Shyam when they met at Mt. Lavinia . Bamunusinghe had further stated that it is their Mahaththaya , (murderer DIG) who orchestrated the whole operation , and all these crimes were committed at the behest of their ‘Mahaththaya’. The SI used the name Mahathaya clearly referring to Vaas Gunawardena (the deadliest government Paathalaya) and not to any other Paathalaya or Patholaya .

The latest information elicited had revealed that Vaas Gunawardena and the murder team had not only committed contract murders , but have even indulged in a number of extortions . Despite this copious and cogent evidence against Vaas Gunawardena ,strangely the latter had not been arrested. Perhaps because under the jungle laws there are no provisions to arrest him. 

On the other hand , the culprit Vaas Gunawardena had stated this is a conspiracy against him hatched by the enemies of his in the police force. It is learnt that President Mahinda Rajapakse had been urged to enforce the law ( if any exists under the country’s legal system – not under the jungle laws ) by Muslim leaders of the country against the murderers of Shyam. However , because of the crime record of Gotabaya using Vaas Gunawardena , MaRa is in a deep quandary – anyway it is the consensus MaRa will find a way out more by foul than fair means which talent he had always demonstrated -he will pass an enactment under the jungle laws with the help of the brutes and beasts in his fold.

Vaas well and truly exposed by his own subordinates –how blood money was collected etc. by nelvely

Death toll rises to 40

MONDAY, 10 JUNE 2013 

The death toll due to the recent adverse weather conditions has risen to 40, including 38 fishermen, The Disaster Management Centre said.

Several bodies had washed ashore in coastal areas of the Western Province according to a spokesman at the DMC.
The Centre said that 31 persons were still believed to be missing.

Two deaths in Putthalam and Rathnapura were also included after their deaths resulted from floods and an accident stemming from the weather conditions, officials said.

Gale force winds, rains leave 27 dead, 36 missing

Fishers blame Met. Dept. for not issuing warning

June 9, 2013

The Disaster Management Centre (DMC) yesterday said that 27 fishermen had been killed and 36 reported missing due to heavy rains and gale force winds in the early hours of Saturday.

DMC spokesperson Sarath Lal Kumara told The Island that 22 fishermen had been wounded, while substantial property damage was reported from the districts of Ratnapura, Nuwara Eliya, Kegalle and Kalutara.

The DMC official said that another person had died in Ratnapura in an incident where the branch of a tree fell on his house. Responding to a query, Kumara said that the death toll could go up if bodies of some of those missing fishers washed ashore.

However, Deputy Fisheries and Aquatic Resources Minister Sarath Kumara Gunaratne placed the number of fishers dead at 18.

Both the DMC official and the deputy minister placed the number of missing at 36.

Fishermen have accused the Meteorological Department of failing to alert them to the impending heavy rains accompanied by gale force winds. Well informed sources told The Island that the warning was issued several hours after the boats had left southern fisheries harbours. Asked whether the Met. Department had issued a specific warning against going out to sea, sources said that a communiqué issued on Friday evening had predicted high winds and rough seas.There hadn’t been a specific warning, sources said, adding that many lives could have been saved if a timely warning had been given.

Meanwhile, navy headquarters said that since the launch of rescue operations, SLN vessels had rescued 18 fishermen. Of them, four fishermen were rescued off Ratmalana along with their fishing craft.

According to the DMC 62 houses were destroyed while 1,141 partially damaged.

Electricity Bill: Hundred Year Old Lesson For The Public Utilities Commission

By Milton Rajaratne -June 10, 2013 

Prof. Milton Rajaratne

Frederick Winslow Taylor is known as the ‘father of scientific management’. Taylor and his management thoughts became popular not only in America (USA) but also in Europe and Japan because of a litigation popularly known as the ‘Eastern Rate Case’.

In 1910, Eastern Rail Road Company of America submitted an application to the Interstate Commerce Commission of America seeking permission for increasing freight rates of the vessels that it operated. The Interstate Commerce Commission of America is an institution similar to the Public Utilities Commission of Sri Lanka (PUCSL) that deals with appeals for rate hikes from governmental and nongovernmental utilities industry.

The proposed rate hike of Eastern Rail Road Company, as was thought by many at that time, would inevitably invite a chain of price increases in many industrial inputs as well as consumer goods which finally could adversely affect the general public. Louis D. Brandeis, an American Lawyer who was known as the “people’s lawyer”, appeared against the move of the rate increase and filed a case against Eastern Rail Road Company on behalf of the general public.

Brandeis argued that Eastern Rail Road Company was seeking rate hike as it had failed in management which is a sole responsibility of the company but not of the general public. He maintained that management failure has caused inefficiencies and as a result the cost of operations has increased and thus it was unfair to grant permission for the company to increase rates. He connected the rate issue to management failure and implied that the cost of management failure need not be born to the general public who are not held responsible for the management affairs of the company. Having the Jury asked him to propose a cure for the management ailment that he claimed that the Eastern Rail Road was suffering from, Brandeis recommended ‘Scientific Management’ (the term he coined after the ‘Shop System’ of Taylor) as the new management system for the Eastern Rail Road to adopt through which the company could overcome its inefficiencies which had compelled it to seek rate increase.

The jury summoned Taylor, as the founder of the new management system, to witness to the lawyer’s claim. Taylor, in his testimony, explained the ins and outs of ‘Scientific Management’ and how it could increase efficiency in business operations. Taylor’s testimony was supported, at the courts, by a few well known business leaders namely J.M. Dodge, H.K. Hathaway, H.R. Towne and Harrington Emerson who already had adopted Taylor’s management system and had become highly cost efficient in their business operations. Emerson explained that, according to his estimates, the Eastern Rail Road could save one million dollars every day if Taylor’s scientific management was founded in it. His appeal promulgated the notion that scientific management was the magic-cure for the efficiency torn industries.

This one hundred year old ‘Eastern Rate Case’ has reincarnated at present in Sri Lanka along with the submission of an application by Ceylon Electricity Board to the Public Utilities Commission of Sri Lanka to increase the electricity tariff at a very high rate. Unlike in the 20^th century America, no court cases were heard against the application for rate hike in 21^st century Sri Lanka. Yet the Public Utilities Commission approvedelectricity tariff hike at an alarming rate which then invited numerous agitations and protests from the people. Despite the Opposition Party lawmakers accuse the management failure at Ceylon Electricity Board and appeal to correct its management practices through eliminating wastes and corruptions in order to bring down sky rocketing costs, the pro-government elements had drawn people in thousands to the streets in support of the decision to increase electricity tariff. This pro-tariff-hike parade endorsed the common mismanagement practices of the Electricity Board and empowered it to continue with those management evils.

Disregarding the management blunders of the Electricity Board claimed by the stakeholders and the inefficiencies emanated from them, the Public Utilities Commission approved tariff hike to the satisfaction of the client but to the dissatisfaction of the public. The Public Utilities Commission of Sri Lanka headed by Dr. Jayathissa de Costa did not take any trouble to question the management blunders of the Electricity Board before approving the rate hike. The responsibility of the Public Utilities Commission is to regulate the prices of utilities and the objective of price control on the other hand is to maintain right price and consumption stability. Thus it is a responsibility of the Commission to advise the Electricity Board to correct its management problems. The Commission neither has considered the negative chain reactions of the industrial sector to the tariff hike and erosion of the total consumption which ultimately would shrink the economy. Before long, the next Central Bank Quarterly would undoubtedly report drop in production, consumption, employment and economic growth in response to the electricity tariff hike.

The responsibility of the Public Utilities Commission has been elaborated in its Vision, Mission and Objectives. The Vision reads as “to create an environment for all inhabitants of Sri Lanka and the contributors to its development, to have access to essential infrastructure and utility services in the most economical manner within the boundaries of the sustainable development agenda of the country.” And the Mission is “to regulate all the utilities within the purview of the Public Utilities Commission of Sri Lanka to ensure safe, reliable and responsibly priced infrastructure services for existing as well as future consumers in the most equitable and sustainable manner.” The main objectives aim at “protecting interests of all consumers,promoting efficiency in both the operations of and capital investment in public utilities industries and promoting an efficient allocation of resources in public utilities industries.” The generously granted electricity rate hike by the Public Utilities Commission challenges its own vision, mission and objectives. Thus the purpose of existence of the Public Utilities Commission is lost!

Average consumers are not aware of the Eastern Rate case, Scientific Management or the Public Utilities Commission. Neither do they know Frederick Taylor or Jayathissa de Costa. But what they know is that their monthly electricity bill has doubled without increase in their electricity consumption and thus sizeable portion of their income has been siphoned off from their pockets for no responsibility they have assumed. Through granting approval for a massive tariff hike, the Public Utilities Commission has tolerated the mismanagement of the Electricity Board to persist. The inefficient public sector utility industries in the country can follow the mode of the Electricity Board and appeal for rate increases in the future. Is the Public Utilities Commission to blindly grant approval for their appeals too without proper assessment of management practices?

We anticipate that the Eastern Rate Case of 1910 in America would serve as precedence to the rate issues of Sri Lanka and that the public sector utility industries and the Public Utilities Commission would take a step back and learn from the hundred year old management of Taylor and from the ‘Easter Rate Case’!

*Writer is the Professor of Management, University of Peradeniya

Asgiriya Chief Prelate against mega casino

MONDAY, 10 JUNE 2013 

The Mahanayake of the Asgiriya Chaptermost ven. Udugama Sri Buddharakkitha thera said today that he would take to the streets if the government continued with its plans of opening a casino resort in Colombo

Taking a strong stance against the proposed tax-free Casino haven scheduled to be constructed in the heart of Colombo, the thera said that he would be the first to take to the streets if the government went ahead with its plan.

“If the government, another entity or person is about to start a Casino business in this country, I would be the first to take to the streets. This country does not need such games. The entire Sangha will take to the streets if this continues,” the monk said.

He made these observations addressing the media at the temple premises.

“I have been wanting to say this and I want you to tell this to the country,” the Chief Prelate said. (J.A.L Jayasinghe)

Army soldier arrested with heroin

By Ananda Weersooriya

An Army soldier has been arrested by the Slave Island Police for smoking heroin and for the possession of 20 mg heroin in the Slave Island area.

 

The suspect who was produced before the Fort Magistrate’s Court following the arrest today has been ordered to pay a fine of Rs 10, 000 by Fort Chief Magistrate Thilina Gamage. (Ceylon Today Online)

GRENADE ATTACK LAUNCHED AT HOME OF SLMC KALMUNAI MC MEMBER

June 10, 2013 

The house of SLMC Kalmunai Municipal Council member A.M. Farhath Thulhaq came under attack this morning (June 10) at around 1.45am when a grenade was lobbed into its premises.

Neither the Thulhaq nor his family members were injured in the attack but his property sustained significant damages, an Ada Derana correspondent reported.

The Kalmunai police are conducting further inquiries into the incident.

Sri Lanka: Reveal Fate of ‘Disappeared’ Cartoonist

Government Inaction Emblematic of Thousands of Cases

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  Enlarge

  A member of the Free Media Association shouts slogans in front of an image of missing cartoonist and columnist Prageeth Eknaligoda during a protest in Colombo June 8, 2011. The protest was held to mark 500 days since the disappearance of Eknaligoda, a pro-opposition journalist who worked for Lanka-e-News, a private-owned independent website that was critical of the government. The placard reads "500 days since Prageeth's disappearance."
  © 2011 Reuters

Solving the disappearance of Prageeth Ekneligoda and that of thousands of other Sri Lankans over past decades should be a top priority of the Sri Lankan government and its investigative agencies. After years of no progress in Ekneligoda’s case, any clues about his fate should prompt an intensive investigation, not shrugs by senior government officials.

Brad Adams, Asia director

JUNE 9, 2013

(New York) – Sri Lankan authorities should challenge a parliamentarian’s claim as to the whereabouts of a political cartoonist who was forcibly disappeared in 2010 and provide information on his fate. Sri Lankan lawmaker Arundika Fernando told Sri Lanka’s Parliament on June 5, 2013, that Prageeth Ekneligoda, a cartoonist and government critic who has not been seen since leaving work on January 24, 2010, is currently living in hiding in France.

“Solving the disappearance of Prageeth Ekneligoda and that of thousands of other Sri Lankans over past decades should be a top priority of the Sri Lankan government and its investigative agencies,” said Brad Adams, Asia director at Human Rights Watch. “After years of no progress in Ekneligoda’s case, any clues about his fate should prompt an intensive investigation, not shrugs by senior government officials.”

The Sri Lankan government needs to take serious measures to end enforced disappearances, provide information to families on the fate or whereabouts of their relatives, and prosecute all those responsible, Human Rights Watch said. The United Nation’s Working Group on Enforced or Involuntary Disappearances has recorded 5,671 reported cases of disappearances in Sri Lanka during its 26-year-long civil war, a figure that does not include those unaccounted for during the end stages of the war in 2008-2009 or people “disappeared” since then.

Fernando, a member of parliament with the ruling Sri Lanka Freedom Party, did not elaborate on his claim in parliament. However, on June 7 he said that while in France he had been introduced to Ekneligoda by Manjula Wediwardana, a Sri Lankan journalist living in France. Wediwardana, speaking to the BBC Sinhala service after Fernando’s statement, denied that he did any such thing.

After Fernando’s statement in parliament, the minister for media and information, Keheliya Rambukwella, told journalists that Fernando’s parliamentary privilege prevented the intelligence agencies from investigating his allegations about Ekneligoda’s whereabouts. Rambukwella later conceded that police could question Fernando, but could not compel him to respond.

Eknaligoda was well-known for his cartoons critical of the administration of President Mahinda Rajapaksa. The Lanka-e-News, a news website published in English, Sinhala, and Tamil and generally considered to be aligned with the opposition Janatha Vimukthi Peramuṇa (JVP) party, published his work. The government has long claimed to be investigating his disappearance and that of thousands of other Sri Lankans during the armed conflict. Ekneligoda’s wife has accused the Sri Lankan authorities of foot-dragging in probing his disappearance and has spearheaded a campaign to prod them to seriously investigate his possible whereabouts.

The government’s own post-war Lessons Learnt and Reconciliation Commission expressed alarm at the number of enforced disappearances and recommended the government to urgently investigate these claims. To date no discernable action has been taken. Reports from previous government commissions set up to inquire into disappearances have largely not been made public.

International law defines an enforced disappearance as the deprivation of a person’s liberty by state officials followed by a refusal to acknowledge the arrest or the fate or whereabouts of the person.

Fernando’s allegation echoes a similar unsubstantiated claim by a senior government official that Ekneligoda, rather than being the victim of an enforced disappearance, was living abroad. Sri Lanka’s current chief justice of the Supreme Court, Mohan Peiris, told the United Nations Committee Against Torture in November 2011, when he was attorney general, that he had received intelligence that Ekneligoda was living abroad. Peiris subsequently retracted this claim when testifying before the Magistrate’s court in Colombo in June 2012. During his court testimony, Peiris admitted that his allegation about Ekneligoda’s whereabouts had been based on unverified hearsay from a source he was unable to remember.

The Rajapaksa government has a long history of media harassment and attacks on journalists critical of the government, Human Rights Watch said. Publications − including electronic media − that oppose government policies have been subject to censorship, and some have been forced to close down. The leading Tamil opposition newspaper, Uthayan, has faced repeated physical attacks against its journalists and property.

“The Rajapaksa government’s disregard for the fate of Ekneligoda reflects its broader disregard for the fate of a free press in Sri Lanka,” Adams said.

France says no evidence at all of Ekneligoda living there

• SUNDAY, JUNE 09, 2013

France said yesterday there was “no evidence at all” to suggest that journalist Prageeth Ekneligoda, who disappeared in Sri Lanka three years ago, was living in that country. “We have no official confirmation whatsoever,” a spokesperson for the French Embassy in Colombo said.

The UPFA’s Puttalam District Parliamentarian Arundika Fernando told Parliament on Wednesday that  Ekneligoda was living in France under disguise. In a clarifying statement on Friday, he claimed he had met Mr. Ekneligoda together with a onetime Sri Lankan journalist Manjula Wediwardena. He claimed that the cartoonist had shaved his head and was in disguise.

A private TV channel on Friday night featured Mr. Fernando in a programme where he repeated the same claims. He said he was a good friend of Mr. Wediwardena. In the MP’s presence, the TV channel telephoned Mr. Wediwardena in France. “I do not know Mr. Fernando at all. I have never met him,” Mr. Wediwardena replied.

Official Government spokesperson Media Minister Keheliya Rambukwella dissociated himself from Mr. Fernando’s remarks. He told Thursday’s media briefing it was the law enforcement authorities who would have to carry out investigations.  Sandya Ekneligoda, the missing journalist’s wife, told the Sunday Times, “The statement by Mr. Fernando in Parliament has caused tremendous embarrassment to our family. My children did not attend school. They had been asked whether theywere playing the fool when they said that their father was missing.”

She said that in a letter to President Mahinda Rajapaksa she had told him that if Mr. Fernando’s claims were correct, the Government should bring her husband back to Sri Lanka. “In the alternative, I have said, the MP should provide credible evidence of my husband’s whereabouts so we can get in touch,” she said.

Free Media Movement (FMM) Convener Sunil Jayasekara told the Sunday Times that the CID should question the MP to seek more information about his claim. “We think the MP is using Parliamentary privileges and trying to mislead the people. He is claiming that a journalist had introduced Mr. Ekneligoda to him when he visited France in January this year. However the journalist Manjula Wediwardana has sent an e-mail to us saying he never met the MP in France or introduced any Mr. Ekneligoda to him,” the FMM convener said.
By Chris Kamalendran

Video: Eknaligoda’s wife willing to debate MP

MONDAY, 10 JUNE 2013 

Missing journalist Prageeth Eknaligoda’s wife Sandhya today urged MP Arundhika Fernando to come forward and debate her to validate the recent statements made by him and said that his entire statement was false and was intended to mislead the public

Earlier Fernandi said that Mr. Eknaligoda was in hiding in France and that she communicated with him regularly.

“If Arundhika Fernando met him as he says he did, he should have immediately informed the Sri Lankan embassy in France at the time and brought him home. He could have done it easily. As a parliamentarian he has the power to do that but he had not,” she said.

Mrs. Eknaligoda said that when she heard the statement made by Mr. Fernando in parliament last week, she had contacted Mr. Fernando’s mobile phone to verify the information but that his phone was continuously switched off and that she could not reach him.

She said she had got in touch with the French Embassy which had also confirmed that Mr. Eknaligoda was not in France.

She also stated that journalist Manjula Wediwardena who Mr. Fernando alleged had introduced Mr. Eknaligoda to him in France had contacted Mrs. Eknaligoda immediately after the statement was made and informed her that it was not true and that he did not have any information about him.

Mrs. Eknaligoda said that she believed the statement made by Mr. Fernando was meant to ease the controversy surrounding her husband’s disappearance before the upcoming Commonwealth Heads of Government Meeting (CHOGM) which is expected to take place in Sri Lanka this November.
(Olindhi Jayasundera)

►WATCHVideo by Pradeep Dilrukshana