Nationalism, Ethnicity and Conflict

• by Devanesan Nesiah 
• - on 03/13/2015 

I read with appreciation, the contents of the article of DBS Jeyaraj under the title “Imperative need to support Tamil Moderates in the struggle against Extremists” (Daily Mirror of March 7, 2015), though I have some reservations regarding the title.  I am also happy to read DBS’ report of the two resolutions passed unanimously on Sunday, March 1 by the Central Working Committee of the Illangai Thamil Arasu Katchi, the lead political party of the Tamil National Alliance.

The first resolution reiterates some of the urgent and major problems of the Tamil speaking peoples, especially the victims of ethnic oppression and the civil war. This resolution urges the government to return the lands taken away from those displaced and to help to resettle the affected population on their own lands; to release political prisoners; to take necessary steps in respect of the disappeared; an to move towards an expected political solution to the ethnic conflict.

The second resolution condemns the continuing attacks on Sampanthan and Sumanthiran, especially from those within the TNA. As indicated by the recent burning of effigies and photographs, there appears to be an effort by one wing of the TNA to threaten and suppress those deemed ‘moderate’ as insufficiently nationalist. I am wary of using the disarming term ‘moderates’.  As Rajani Thiranagama has noted in “Broken Palmyra” (Vol. 2, 6.2.5) “Though nationalism was meaningful due to the threat to existence under the Sri Lankan state, its narrowness, violent rhetoric and bigoted imagery were the reactionary elements that were to remain with the nation.  The militants were not the initiators; they were the continuation of this history.  The ideology in its totality goes to the credit of the ‘moderate’ and ‘middle of the road’ nationalists who were the initiators of this narrowness.”

The roots of our 24 year war can be traced to the narrowly nationalist positions taken by ‘moderates’ among different ethnic groups in the middle of the twentieth century.  I see the conflict within the Tamil leadership as between those who seek to arrive at an achievable and pluralist solution and those who are intolerant of diversity and seek to press for objectives that, even irrespective of whether or not they are desirable, are clearly unachievable.  Pressing for unachievable goals is not only futile but dangerous and would risk renewed conflict adversely affecting almost everyone on this island, and especially the Tamil people. A healthy and lively debate on issues in contention is desirable and essential but no attempts should be made to suppress the point of view of any section of the people in the name of nationalism.

Treasury Bonds Investigation; Ranil’s Committee Lacks Credibility: Chandra Tells President

March 13, 2015

ByThe three-member committee appointed by Prime Minister Ranil Wickremesinghe to probe into the controversy that has emerged over the issuance of Treasury Bonds, totally lacked the required capability – knowledge, skills, attitudes and values -and appeared to have questionable independence due conflicting network connections to a political party which constitutes the government, says Good governance activist and former Chairman of the Ceylon Chamber of Commerce, Chandra Jayaratne.

Chandra Jayaratne

Jayaratne suggests that the inquiry panel be reconstituted with immediate effect, to comprise of four members;

• Senior Retired Central Bank Official– eg. Former Deputy Governor -Mr. W. A. Wijewardena
• Senior Retired Treasury Manager of a Commercial Bank- eg, Retired Citi Bank International Treasury Manager -Mr. Sanjiva Senanayake
• A Chartered Financial Analyst- eg. Former President of CFA Association Sri Lanka-Mr. Malinga Aresacularatne
• A practicing Chartered Accountant- Assurance Head of KPMG -Mr. Suren Rajakarar

ensuring that all members of the panel assure that they have no conflicts of interest and related party connections to any persons or entities connected to the subject of the inquiry.

“It is best that the Central Bank Governor, whose purported related party interests are the subject of this inquiry, should demonstrate his personal commitment to the ongoing inquiry, preferably by taking voluntary leave of absence from official duties during the inquiry period.” says Chandra Jayaratne.

CB Governor Arjuna Mahendran’s controversy emerged a few weeks ago with concern to his intervention in the issuance of Treasury Bonds through which his son-in-law had been given an upper-hand in the bidding process.

“It is my fervent hope that the “Yahapalanay Commitment” will stand firm and effectively implemented in Sri Lanka under your leadership.” Chandra Jayaratne has written to the President.

We publish below the letter in full;

The President of Sri Lanka,

Presidential Secretariat,

Janadhipathi Mawatha,

Colombo 1.

Dear Mr. President,

Caution – Are Interested Parties Making a Mockery of “Yahapalanaya”?

In your election manifesto, you articulated a vision with an action programme to set in motion a change process that will ensure good governance in the country and end the regime of management of the affairs of the state previously said to be engulfed in corruption, waste, nepotism, conflicts of interest/related party transactions and transactions which lack transparency. Your election to office was mostly based on this key personal commitment.

You were quick to realize that the upholding of your public commitment was at stake, on being briefed whilst overseas, of media criticism of a probable alleged scam or lack of transparency in connection with a long term bond issue made by the Central Bank in end February 2015. Your response action in instructing your Secretary to arrange a full independent inquiry in to this alleged scam was hailed by the civil society as an action in keeping with your commitment to good governance.

The importance of an independent inquiry by competent persons are further heightened by the revelations in media that the parties in question connected to the purported scam may have even be connected to similar transactions of a questionable nature in the past and also that the questionable processes adopted may have been repeated in subsequent bond issues in March 2015. These purported allegations which may be unfounded are also bound to affect the integrity and reputation of senior public officials, as well as private sector financial professionals. Hence, it will be in the interest of all concerned that the inquiry findings are expeditiously and  transparently dealt with, and the rule of law and good governance be the focal objectives of all concerned engaged in the inquiry and consequential action.

The civil society was extremely disappointed by the next steps that followed from your above instructions. It noted that the Committee announced as appointees to constitute the inquiry panel, totally lacked the required capability ( knowledge, skills, attitudes and values) and appeared to have questionable independence due conflicting network connections to a political party which constitutes your government.

Civil Society then asked “Are Interested Parties Making a Mockery of “Yahapalanaya”? My own view is that interested parties are not only attempting to frustrate the good intentions of your response action, but are in fact insulting your stated commitment and undermining the high esteem of citizens have in you and your government.

The task of the inquiry panel is not to prosecute or prepare charge sheets for prosecution, nor even to examine contracts and interpret them in a legal interpretation. Thus criminal and civil lawyers, with no capability in the areas of banking, finance, macro economics, public finance management, securities and investments trading and associated procedures, processes, controls, compliances and international best practices will not be able to complete the tasks required to deliver a credible inquiry finding classified as one developed by persons with capability, independence and integrity of purpose.

I suggest that the inquiry panel be reconstituted with immediate effect, to comprise of four members;

1. Senior Retired Central Bank Official– eg. Former Deputy Governor -Mr. W. A. Wijewardena
2. Senior Retired Treasury Manager of a Commercial Bank- eg, Retired Citi Bank International Treasury Manager -Mr. Sanjiva Senanayake
3. A Chartered Financial Analyst- eg. Former President of CFA Association Sri Lanka-Mr. Malinga Aresacularatne
4. A practicing Chartered Accountant- Assurance Head of KPMG -Mr. Suren Rajakarar

ensuring that all members of the panel assure that they have no conflicts of interest and related party connections to any persons or entities connected to the subject of the inquiry.

It is best that the Central Bank Governor, whose purported related party interests are the subject of this inquiry, should demonstrate his personal commitment to the ongoing inquiry, preferably by taking voluntary leave of absence from official duties during the inquiry period.

It is my fervent hope that the “Yahapalanay Commitment” will stand firm and effectively implemented in Sri Lanka under your leadership.

Yours Sincerely,

Chandra Jayaratne

Is the Market in Danger ?

Wednesday, 11 March 2015

Many thought that the regime change would be the harbinger of prosperity – a thriving economy, a buoyant stock market and a flood of foreign investment. Two months into the “utopia” of change, the reality is far from that envisaged.

The stock market, prior to the election stood at a modest but stable 7300 points. All sentiments were that a bull run would soon ensue with the market witnessingan unprecedented gain. This clearly never materialized, and a closer analysis sheds some light intothis disappointment.

Firstly, what countless investors failed to appreciate wasthat the market was in fact overvalued. Although a market PE of 19 of all the companies comprising the market were, all in all, hyped. The speculative investments that fuelled such an inflated valuation have now simply run out. Thus, it came as no surprise that the market did not rally as anticipated.

Secondly, another formidable shackle on the market is the budget proposals put forward by the current regime, which have done little to muster up business and investor confidence. More importantly, the move to collect 50 billion from the top most companies in the market has irked many investors and analysts. Thispolicyhas, no doubt, boomeranged and the stocks of these companies are in the doldrums. The market, disappointingly, stands at 7000 points today – a far cry from the much foretold “Bull Run”.

Overall, it is no exaggeration to say that the policies presently in force have reduced a staggering 200 billion in terms of market capitalization – all this in an ill-thought attempt to muster 50 billion in revenue!Such proposals clearly contribute to forestalling the resurgence of our once thriving market.

Finally, it is an often heard saying today,in the brokering and investor communitythat the market regulator is currently on a path of vindictive reprisal,in an effort to drive home “a lesson” to all market participants. Such rhetoric by the regulator instils unwarranted fear which keeps all investors away.

Thus there is no speculation in the current market. It is trite knowledge that a degree of speculation is necessary for a healthy market. Speculation is not manipulation. This distinction must be made clear. Speculators,simply look for opportunities where significant price movements are likely.

All speculators have now resigned themselves from the market in trepidation of the regulator. Yes, market malpractices must be clamped down upon and those responsible penalized, but instilling a fear psychosis is counterproductive. Regulation of the market on mere gut sense, sans professionalism and experience, may do as much damageto the market as market malpractices.

The way forward is for the government and the regulator tofollow a non-interventionist policy and allow the market forces to find its own equilibrium. Let the forces of demand and supply interplay to bring about stability and the gradual revival of the market. Laissez faire should be the key word at play.

Mahinda, the company owner!

FRIDAY, 13 MARCH 2015 

Information regarding a company that has had its address as the Mirihana residence of former President Mahinda Rajapaksa has been revealed.The company named  ‘Chesmi Consolidated (Pvt) Ltd’ has 175/2, Old Kottawa Road, Mirihana as its registered address. This is the address of the Mirihana residence of Mr. Mahinda Rajapaksa.Mr. Himal Lalindra Hettiarachchi, the Managing Director of the company is the son of Mr. Rajapaksa’s sister.

The company has given Namal Rajapaksa, the son of Mahinda Rajapaksa a loan of Rs. 15,773,056 in 2012 and also the CSN TV channel has been given paid a sum of Rs. 25,275,000 in the same year.

Also, the company has paid Rs. 9,970,133.50 to Chesi Trading (Pvt) Ltd and Rs. 7,708,018.11 to Celera Solution (Pvt) Ltd.

‘Chesmi Consolidated (Pvt) Ltd’ has functioned as the distributor for ‘Dialog’ products in the Northern and Eastern provinces.

The photograph is that of the Manager of ‘Chesmi Consolidated (Pvt) Ltd’ Lalindra Hettiarachchi.

Justification Of Colombo Port City Project

By Fr. Sarath Iddamalgoda -March 13, 2015

Fr. Sarath Iddamalgoda

Arguments of the Economists.

A number of arguments have been put forward very recently to try and justify the construction of the Colombo Port City. Some argue that the Colombo Port City was a ‘business venture’ done with the view to make Sri Lanka the most competitive and preferred maritime and logistic hub in Asia. Hence, the construction of the Port City should be continued on a revised technical plan of the experts. Since 25% of the work Colombo Port City project is completed, others argue that by halting the project the country will suffer a heavy financial loss in addition to threatening livelihoods of local people in the Country, of the employees and service providers who have already made agreement with the Chinese company. There are also those who argue that this project shall create thousands of job opportunities and if halted the country will be deprived of all those benefits.

In the face of all this arguments, what seems certain is the underline ideology of those who argue in favor of the Colombo Port City which is a neo-liberal economics. Unfortunately, these economists are keen on denying and dismissing the warnings from scientist and environmentalists that the Colombo Port City – the country’s largest private investment in history – has the potential of becoming one of Sri Lanka’s biggest environmental nightmares: altering entire ecosystems and causing other serious environmental problems — and, by extension, endangering the millions who inhabit this country. We simply cannot sacrifice the environment in exchange for temporary economic gain.

This raises questions as to ponder, when viewed from stand point of an ordinary citizen of the country, how valid, informed and credible are the arguments of those who favor the Colombo Port City?

Human and Environmental Cost

The environmental impacts associated with large scale artificial economic project often brings with it many social and environmental concerns. The Colombo Port City is no different. The creation of the artificial city on a reclaimed maritime land affects species in the sea area, some endangered, water quality, and may increase the likelihood of earthquakes. The environmental impacts of the project are profound, and are likely to get worse as time goes on.

However, advocates who support the Colombo Port City for pity economic gains fail to understand the human and environmental cost that the project would entail, even when a revised plan is implemented. The economists who are often interested only in profits tend to be blind to such dimensions of social life. Such costs can be perceived only by those who looked at it from the people’s point of view.

For an example the project requires mass amounts of granite and sand. According to Port Authority “the estimated granite requirement for the project is 05 million cubic meters”. It was reported at a discussion held at the Human Rights’ Commission that the authorities have identified 20 quarries to supply the required amount.

In many places these quarries are already creating environmental hazards for people such as drying up of underground water resources, which is an indispensable requirement for survival of all life. In certain place water streams have already gone dry. Besides, the blasting of rocks is causing cracks in the houses and also health hazards both to people and animals.

Often these quarries are found in the interior of the country in the districts of Colombo and Kalutara; these are areas of rich biodiversity but the unique plant and animal species are quickly disappearing due to the destruction caused by the quarries. The situation will be definitely worsened when the demand for granite for building the port city increases.

Similarly a Colombo Port City Project will have a damaging impact on the coastal belt due to dredging of sand from the sea. Already excavation of large amount of sand from the sea off Negombo has caused numerous problems to traditional fishermen who depend on the shallow seas for their livelihood. The fishermen complain that the fish breeding grounds have been disturbed and have expressed fear that continuous digging for sand will intensify sea erosion and destabilize the coastal area. Recently there was a complain that fishermen incurred a loss fishing gear to the value of Rs 4 million due to the damages caused by the sand mining machinery.

The fishermen who use traditional methods for fishing also live in fear that once certain portion of land is given over to the Chinese government, the Chinese fishermen will one day become a serious threat to the livelihoods of the traditional fishermen.

Though the environmental impact of the project is already felt, there are many more concerns such as of altering entire ecosystems and causing other serious environmental and social problems—and, by extension, endangering the millions who live in this country. However, these aspects have not been taken seriously into account by the economists. But the threats to life are real. The Colombo Port City is a model for disaster.

Impact after Revised Plan

There are no signs that all these destructions stated above would cease when Colombo Port City is done according to a revised plan. It is so unfortunate that many of our experts seem to be more concerned about the profits rather than the wellbeing of the citizens.

I wonder whether the advocates of development and advancements focus mainly on the economic benefits overlooking the environmental destruction and violation of rights when constructing and approving such artificial economic projects. Thus, from right perspective this project violates the rights of the people to a safe environment and to livelihoods.

A project which is not primarily people friendly or environment friendly cannot be called a development, however much it promotes growth and bring profits to the elite. It is time that the advocates of modern development be inspired by the ancient wisdom of the Red Indians.

“When all the trees have been cut down,
when all the animals have been hunted,
when all the waters are polluted,
when all the air is unsafe to breathe,
only then will you discover you cannot eat money”.

Did the CB Governor connive with Malik to do the Bond deal? 

 Friday, 13 March 2015

There are still many unanswered questions with regard to the Treasury Bond deal and with the appointment of the three-member committee consisting of three UNP law association junior members with hardly any knowledge of how a treasury bill is structured and the purpose of a treasury bill the Prime Minister is surely trying to cover up something big for someone. Now it transpires and it is alleged by many that Malik Samarawickrema the current Chairman of the UNP, who was accused few days before the election by a Sunday newspaper that he had leaked information to the former president about Mr Sirisena and his crossovers had played a key role with Mahendran advising him what to do. This explains why no bankers or financial analysts were appointed to the committee by the Prime Minister.

Up to now the government has not given an explanation as to:

A)   How Perpetual got 50% of the Rs 10 billion bond issue?

B)   Why a 30 y bond was issued at 12+% to cover short-term government expenditure?

C)   How a 1 billion bond ended up becoming Rs 10 Billion?

D)   Why a committee was appointed minus any technical experts?

E)   Who authorized BOC to provide a facility to Perpetual three times the asset value of the company?

All in all, this entire Bond deal it seems was certainly not done by the Governor alone, it certainly involves many others. Only a credible investigation will help to find out the real culprits. Mr. Sirisena the President being a novice is being taken for a good ride by his senior Colleague the Prime Minister not only with this even the police investigations of the Public Security Ministry.

Good governance activist

Kshenuka to Thailand despite LTTE inclinations

FRIDAY, 13 MARCH 2015

Ms. Kshenuka Seneviratna, who was the Secretary of the Ministry of Foreign Affairs during Mahinda Rajapaksa regime, has been appointed as the Ambassadress of Sri Lanka in Thailand.

Despite there were accusations with evidence that Kshenuka Seneviratna and her husband had connections with the LTTE international network, former government did not take any action and the move of the present government to appoint her to a foreign mission without taking any action against the accusations against her has been criticized in many quarters.

Ms. Seneviratna was also accused of irregularities in awarding the repairs of the official residence when she was the ambassadress in Geneva in 2009.

Who Is Kshenuka ? : Tigress Or Lioness

The real culprit in the Sri Lankan Diplomacy

Fowling story was originally published by the Sri Lanka Guardian in 2012.

| by Our Special Correspondents in Colombo and New Delhi

( January 17, 2014, Colombo/New Delhi, Sri Lanka Guardian) 1. In November 2009, after her arrival as the new Permanent Representative to the UN, replacing Dr Dayan Jayatilleke, Kshenuka Senewiratne contracted an LTTE company Shelvazug to renovate the Official Residence for more than 150,000 Swiss Francs (i.e., more than 20 million Rupees). Her husband did part of the renovation work and received payment from the Mission via the LTTE company.

2. Why did Kshenuka Senewiratne select Shelva Zug to carry out construction works from cellar to roof top? Shelva Zug is NOT a construction company, but a financial and credit institution also dealing with real estate, life insurance, health insurance, housing and car insurances. Its activities are oriented solely towards the Tamil community. Whatsmore, Shelva Zug is NOT located in Geneva where there are numerous construction companies, but in Zurich, a city 300 kilometers away from Geneva !

Full Story>>>>

Post-war reconstruction and women: Has the Indian Housing Project become a debt trap?

by Ambika Satkunanathan 

- on 03/13/2015 

Following the end of the armed conflict, people returned to their areas of origin in the conflict affected areas with limited, and in some cases no resources, to re-build their lives. This forced them to access new and freely available credit to re-establish a habitable space and restart livelihoods. Due to inexperience managing debt, and the inability of most, whose livelihoods are dependent on the agricultural and fishing sector, to compete with their vulnerabilities in an open and competitive economy, their resources depleted and they slipped into severe debt. Consecutive natural disasters, such as floods and droughts, and the consequent loss of livelihoods have compounded stress on their already limited resources.
Post-war reconstruction and women Has the Indian Housing Project become a debt trap.odt by Thavam

Sri Lanka’s Friendship With China And Partnership With India

by Ruwantissa Abeyratne

( March 13, 2015, Montreal, Sri Lanka Guardian) International relations is first and foremost a political tight rope walk. For example, when one puts two related statements and a politico-legal  construct together,  the portentous risks associated with  international relations surfaces with undeniable clarity.

The first statement I refer to is that of the newly appointed Chinese Ambassador to Sri Lanka Yi Xianliang who is reported to have urged both the Sri Lankan Government and the Chinese company involved in the Colombo Port City project to observe the rule of law and keep mutual trust and confidence in each other when solving issues related to the project.  The Ambassador was referring to the Colombo Port City Project signed by and between the previous government of Sri Lanka and a Chinese construction company which has been suspended following a decision taken by the Cabinet of Ministers.

The second statement is that of Narendra Modi, Prime Minister of India who recently said, on his impending visit to Sri Lanka: “I am delighted with the opportunity to visit one of our most important neighbours. I look forward to discussing our bilateral relations with President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe. I am also looking forward to meeting other political leaders of Sri Lanka. We will work together to forge a new partnership between our countries”.  Partnership in this context could mean working together for mutual benefit, mostly to the exclusion of others.  “New partnership” could mean that there was a partnership which is old hat and unsatisfactory.  Either way, India is looking for stronger and more cohesive ties with Sri Lanka.

The politico-legal construct is whether a previous government’s agreement can be disregarded by a later one.  The two statements together  result in an interesting cocktail of political and diplomatic confluence. The construct that follows Sino-Lankan relations make that beverage an ominous potable for Sri Lanka.

The Chinese Ambassador’s statement, made in the context of a purely commercial agreement implies China’s involvement and interest in the contract.  This brings to bear Sri Lanka’s relationship with China. According to President Maithripala Sirisena: “The foreign policy of Sri Lanka will continue moving through the path of non-alignment and cordial relations with all nations of the planet”. The Administrator of 9th of March said about  President Sirisena’s statement  to the British authorities during his visit to London: “A spokesperson for the President quoted him as having told UK Defence Minister that China was Sri Lanka’s friend. The President also mentioned about Chinese support for Sri Lanka’s development. Referring to Chinese naval build-up in the region as well as UK’s own relationship with the People’s Republic of China, Fallon (British Defence Minister) pointed out to Sri Lanka’s military links to China. Throughout the war, China remained one of the most important military suppliers, with the Sri Lankan military depending on Chinese transport aircraft, heavy gun boats and a range of artillery pieces among other equipment. The President emphasized that Sri Lanka was determined to handle its foreign policy in a way not inimical to anyone”.

According to this press release President Sirisena (and therefore Sri Lanka) regards China as a “friend” with whose relationship will not cause Sri Lanka’s foreign policy to be hostile to any country.  Recently, China is reported to have said in the context of President Sirisena’s visit to India, as per Chinese Foreign Ministry spokesperson Hua Chunying who told media commenting on Sirisena’s visit to India and various agreements reached between the China and Sri Lanka:”Sri Lanka and India are friendly and important neighbours to China”.  China too has clearly categorised both Sri Lanka and India as friendly neighbours which by no means is a  “partnership” and provokes thought in the context of Mr. Modi’s “new partnership” with Sri Lanka.

India on the other hand is not merely a neighbor of Sri Lanka.  It is our next door neighbor.  Culturally, linguistically and historically, we are closest to India. Next door neighbors form implicit partnerships with one another.  They exchange food and come to each others’ aid in times of distress.

It is interesting that Prime Minister Modi did not use the words “strategic partnership” in terms of India’s relations with Sri Lanka. Luis Blanco in his article Strategic Partnerships – A New Form of Relationship in International Relations  says  there is a distinct difference between “partnership” and “strategic partnership”:  “Since the end of the 1990’s a new language has been gaining relevance in the international realm…  The introduction of the “strategic partnership” expression in the International Relations vocabulary is recent. Whereas “partnerships”, “alliances”, “free trade agreements”, “co-operations” and “special relationships” are older kinds of relationship between international political actors, “strategic partnerships” start its consolidation as a language that defines relationships in International Relations in the 1990s”.

Going on the language used, Sri Lanka will have a friend in China and in India we will have a partner. Trade-wise, Sri Lanka is India’s largest trading partner country in the SAARC region.   The bilateral trade between India and Sri Lanka has grown four times in the last nine years increasing from US $   658 million in 2000 to US $ 2719 million in 2009.  The main Indian exports to Sri Lanka are Petroleum (Crude & Products), Transport Equipments, Cotton, Yarn Fabrics, Sugar, Drugs Pharmaceuticals & Fine Chemicals. The main Sri Lankan exports to India are, spices, electrical Machinery except electronic, Transport Equipments, Pulp & Waste, Natural Rubber and Paper Board.

It is interesting to see whether India seeks an expansion of, and extension to this partnership.

Now for the last part of the equation – the legal construct.  Can Sri Lanka ignore commitments made to and agreements signed with China by the previous government.  Government is the governing body of the nation, State or community.  A nation is the people of the State.  A State, as defined in the Montevideo Convention of 1933 has to have four elements: a defined geographic area; a permanent population; a government; and the ability to engage with other States.  Therefore the government is really the people, particularly in a democratic country.  People never change although governments may change.  Therefore it is arguable that, since the same people represented by the previous government are represented by the current regime, any agreement made by a previous government with a country would not been extinguished merely on regime change.  If Sri Lanka reneges on its past contracts, we may lose China as a friend.

Now we have the triangle all in place.  It is time to get a ringside seat in the big top and observe the tight  rope walk.

Lapse in Indian premier’s security!

Friday, 13 March 2015 

A serious lapse in the security of Indian Prime Minister Narendra Modi, who arrived in Sri Lanka today (13), occurred at Hotel Taj Samudra in Colombo a short while ago, reports say.

After addressing the Sri Lankan parliament, the PM had been walking back to Taj Samudra Hotel to have a short break, when an unidentified Arabian man had gone to him and embraced him. An unidentified man getting close to a VVIP is a very serious security lapse.

By now, all the security arrangements have been changed for Mr. Modi’s visit, and a special investigation ordered into the incident.

Unity and sovereignty of Sri Lanka paramount to India: Modi

March 13, 2015
Indian Prime Minister Narendra Modi addressing the Sri Lankan Parliament on Friday (March 13).

India and Sri Lanka don’t have a land boundary but we are the closest neighbours in every sense, Indian Prime Minister Narendra Modi said, addressing the Sri Lankan Parliament today.

Full text: PM Modi's address in Sri Lanka Parliament

On Friday, Prime Minister Narendra Modi addressed the Sri Lanka Parliament. He strongly pitched for enhanced cooperation in key areas of maritime security and counter-terrorism.

Below is the PM’s speech verbatim:

March 13, 2015

Honourable Speaker of Parliament, Mr Chamal Rajapaksa ji, 

Honourable Prime Minister of Sri Lanka, Shrimaan Ranil Wickremesinghe ji,

Honourable Leader of the Opposition, Mr Nimal Siripala De Silva,

Honourable Members of Parliament,

Distinguished guests,

I am truly delighted to visit Sri Lanka - a land of beauty, culture and friendship.

Unity and Sovereignty of Sri Lanka Paramount to India Modi by Thavam

India seeks edge over China as Modi visits Sri Lanka

India's Prime Minister Narendra Modi (L) talks to Sri Lanka's President Maithripala Sirisena at the Presidential Secretariat in Colombo March 13, 2015.

BY RANGA SIRILAL AND SHIHAR ANEEZ-Fri Mar 13, 2015

(Reuters) - When Sri Lanka's President Maithripala Sirisena received India's Prime Minister Narendra Modi at an ocean-front colonial building on Friday, the two looked out over a $1.4 billion Chinese real estate project halted days ago after criticism from New Delhi.

The vista will have pleased Modi, whose government strongly opposed the land reclamation project inaugurated by China's President Xi Jinping last year under a deal that gives China ownership of a patch of land overlooking a strategic port.

Modi's was the first bilateral visit by an Indian premier in 28 years, a sign of a friendship that has warmed rapidly since a January election ousted a leader whose close ties with China had left Sri Lanka's larger neighbour feeling unloved.

India and China are increasingly jostling for influence in South Asia and the Indian Ocean and former Sri Lankan President Mahinda Rajapaksa's decision to let Chinese submarines dock in Colombo port and the real estate deal were very worrying for New Delhi.

"The course of the 21st century will be determined by the currents of the Indian Ocean," Modi said in a speech to Sri Lanka's parliament that highlighted the new bonhomie. "Your leadership and our partnership will be vital in making a peaceful maritime neighbourhood."

In January, political and intelligence sources told Reuters that Rajapaksa had expelled the Colombo station chief of India's spy agency in the run-up to the presidential election, accusing him of helping organise the opposition.

Rajapaksa himself accused India's Research and Analysis Wing spy agency of conspiring with the CIA and Britain's MI6 to rally the fractious opposition, in an interview with India's the Hindu newspaper on Friday.

India's foreign ministry said Modi would meet Rajapaksa, who emphasized in the interview that he did not blame the prime minister for the alleged conspiracy.

ECONOMIC TIES

On his first day on the island off India's southeast coast, Modi promised India would develop an oil tank "farm", offered a $318 million railway credit and a $1.5 billion currency swap between the central banks of the two nations.

"The world sees India as the new frontier of economic opportunity, but our neighbours should have the first claim on India," Modi told lawmakers.

Ahead of Modi's two-day visit, Sri Lanka's new government ordered a review of most Chinese infrastructure projects amid allegations of corruption and expensive loans under Rajapaksa. China has rejected any wrongdoing.

China has built seaports, power plants and highways in Sri Lanka, helping the country rebuild after a long civil war. China's ambassador said this week that Beijing lent money during the 2008 financial crisis when other loans were not available.

Its navy has made forays into the Indian Ocean, including when submarines docked last year in Colomobo.

Modi will visit northern Jaffna peninsula on Saturday to launch a housing complex funded by Indian government in the former war zone where Tamil Tiger rebels fought for a separate state in a 26-year war.

India has long urged greater autonomy for ethnic minority Tamils who have close ties to south India, based on Sri Lanka's 13th constitutional amendment introduced by an Indo-Sri Lanka pact in 1987 under former Indian Prime Minister Rajiv Gandhi.

Gandhi's visit that year was overshadowed by an incident in which a member of the Sri Lankan honour guard hit him with a rifle butt. Gandhi was later killed by a Tamil separatist suicide bomber. The Tamils were defeated by the army in 2009.

"We stand with you in your efforts to build a future that accommodates the aspirations of all sections of society, including the Sri Lankan Tamil community, for a life of equality, justice, peace and dignity in a united Sri Lanka," Modi said.

"We believe that early and full implementation of the 13th Amendment and going beyond it would contribute to this process."

(Reporting by Shihar Aneez; Editing by Frank Jack Daniel and Douglas Busvine)