I saw soldiers bury Kuttimani’s body

Kuttimani Thangathurai

By Savani Sheshadhi and Udeni Saman Kumara-2016-01-17

Aneez Thuwan was a labourer attached to the Colombo Municipal Council and was working in various capacities. In 1980s, he was working as a labourer at the Borella Cemetery. He was also a night watcher there. The series of events that took place in the last week of July 1983 changed the order of Thuwan's life. On one night in July of that fateful year, a group of soldiers suddenly entered the cemetery and started combing the length and breadth of the cemetery. After a lengthy search they picked two locations.

Soon after, an excavator operated by a soldier entered the cemetery. Without seeking permission from the authorities, they started digging a hole in the ground in the area that is now used as a car park near Devi Balika Vidyalaya, where the crematorium is installed now.
The administrator of the cemetery immediately informed about this intrusion to the Mayor. However, the advice was to do nothing and allow the soldiers to carry-out their task.

Thuwan noticed the soldiers dug two 10X10X10 grave. The next day, the excavator returned followed by a covered truck.
The back cover of the truck was hauled up and Thuwan saw blood soaked bodies of 35 men which were soon dumped into the graves. Then the grave was covered with soil. The bodies are believed to be of Tamil prisoners, including that of Kuttimani. On the next day, another 18 bodies were brought and they too were dumped similarly in a grave dug at the back of the cemetery.
The climax of Black July 1983 was the killing of 53 Tamil political prisoners on 25 and 27 July 1983. It was said the deaths were a result of prison riots.

Thuwan does not remember the exact date the bodies were brought to the cemetery. However, it is worth investigating whether the graves were dug while the men were still alive.
Following is the list of names of Tamil prisoners killed on 25 and 27 July 1983:

25 July 1983: 1. Kuttimani Yogachandran, 2. N. Thangathurai, 3. Nadesathasan, 4. Jegan, 5. Alias Sivarasa 6. Sivan Anpalagan 7. A. Balasubramaniam 8. Surash Kumar 9. Arunthavarajah 10. Thanapalasingham 11. Arafat 30. Anpalagan Sunduran 12. P. Mahendran 31. Ramalingam Balachandran 13. K. Thillainathan 32. K. Thavarajasingham 1420. S. Subramaniam 21. Mylvaganam Sinnaiah 22. G. Mylvaganam 23. Ch. Sivanantharajah 24. T. Kandiah 25. S. Sathiyaseelan 26. Kathiravelpillai 27. Easvaranathan 28. K. Nagarajah 29. Gunapalan Ganeshalingam . S. Kularajasekaram 33. K. Krishnakumar 15. K. Uthaya Kumar 34. R. Yoganathan 16. S. Sivakumar 35. A. Uthayakumar 17. A. Rajan 36. G. Amirthalingam 18. S. Balachandran 37. V. Chandrakumar 19. Yogachandran Killi 38. Sittampalam Chandrakulam 39. Navaratnam Sivapatham (Master)

27 July 1983: 1. Muthukumar Srikumar 10. Gnanamuthu Naveratnasingham 2. Philip Amirthanayagam 11. Kandiah Rajendran (Robert) 3. Kulasingam Kumar 12. Dr. Somasunderam Rajasunderam 4. Selachami Kumar 13. Somasunderam Manoranjan 5. Kandasamy Sarveswaran 14. Arumugam Seyan (Appu) 6. A. Marianpillai 15. Thamotharampillai Jegemogenandan 7. Sivapathan Neethirajah 16. Sinnathambi Sivasubramaniam 8. Devanayagam Paskaran 17. Sellay Rajeratnam 9. Ponnaiya Thurairajah 18. Kumarasamy Ganeshalingam 19. Ponnampalam Devakumar.

This list includes names of a number of well-known members of Tamil militant groups. Kuttimani, Thangathurai and Jegan, who were convicted and sentenced to death on 24 February 1983, were also among them.
A statement made by Kuttimani at the end of his court case is very famous. He said "We are fighters belonging to an organization that is struggling to liberate our people. To those noble souls who keep practising terrorism, we have something to say. Did you not get frightened of terrorism when hundreds of Tamils got massacred in cold blood, when racist hate spread like fire in this country of yours?

"Did terrorism mean nothing to you when Tamil women were raped? When our cultural treasures were set on fire? When hundreds of Tamil homes were looted?
"Why, in 1977 alone 400 Tamils lost their lives, reddening the sky above with their splattered blood. Did you not see any terrorism then?

"It is only when a few policemen are killed in Tamil Eelam, and a few million rupees bank money robbed, that terrorism strikes you in the face... But my fervent prayer is that innocent Sinhalese people should not have to reap what power hungry Sinhalese politicians have sown.
"These tribulations are a boon bestowed by God to purify us. The final victory is ours."
Before these killings took place, on 3 June 1982, police were vested with powers to bury the dead bodies without conducting an autopsy.

These killings took place during the violence against Tamils after the killing of 13 soldiers in the first landmine attack of the LTTE. The attacks in the South started on 24 July 1983 and the first wave of killings took place in Welikada Prison between 2:15 and 3:15 on the morning of July 25. The senior medical officer found 35 bodies of Tamil prisoners after the rioting prisoners were dispersed. The dead bodies were buried in Borella Cemetery and the relatives of the prisoners were not informed about the deaths. D.P. Delgoda was the Prisons Commissioner and K. Janz was the Deputy Commissioner of Prisons at that time.

Then Indian High Commissioner of Sri Lanka J.N. Dixit mentioned about this killing, "Major damages in Colombo. The houses of the staff of the Indian High Commission were also attacked. Violence spread to the other Sinhala dominated areas where Tamils lived. The Sri Lankan Government was either helpless or it had given the Sinhalese opportunity to take revenge for the killing of Sinhala soldiers. Worst was the Tamils were under the siege of the Sri Lankan Government. That led to a large number of them fleeing to Tamil Nadu.

"President Jayewardene, instead of controlling the situation, did not address the people on television for six days. His first address after six days lacked description."

The Constitution Imbroglio

By Somapala Gunadheera –January 18, 2016

Somapala Gunadheera

Government has promised a new Constitution in the New Year. It was only last year that the current Constitution was updated. Although the project was announced with much fanfare in the wake of victory, it fizzled out unceremoniously, leaving behind a makeshift document. Presumably, it is that fiasco that has prompted the rulers to usher in the New Year with a brand new Constitution.

In doing so, it would be wise for them to reflect on the reasons that sabotaged last year’s effort. It was clear that some Parliamentarians were not motivated by national interest in the exercise, as they ought to have been. They were obviously led more by inter-group rivalry than by intra-group issues. The boat was rocked by those who were loyal to the former regime, not on principle, but as strategy. The pious principles announced at the beginning of the project had to be thrown to the winds as the bickering escalated. Those in power had to make all sorts of adjustments bargaining with their own men to keep the boat on even keel. The result was a hotchpotch that called for immediate amendment. That situation has not changed so far. In fact, it is going from bad to worse.

Baiting and Bargaining

It is well for the Constitution makers to remember that scenario before they embark on the repeat attempt. They should trace the reasons and loops that divert MPs from the path of duty and propriety in the task of Constitution making. It is evident that since independence and despite several attempts, we have not yet been able to install a Constitution that could stand the ravages of time and change. Strangely, every time a new Constitution was made, we were satisfied that it was the ideal until time and trial convinced us that it was a flop. Let us avoid that mistake this time around, if we really wish to become a truly democratic nation in the civilized world.

1. Among several reasons that flawed our constitution-making, such as communalism and sectarianism, I see two weaknesses that have ultimately reduced the legislature to a gambling den.
   One of them is baiting: the use of portfolios by Leaders as chips to attract members to their fold in order to reinforce their majority to keep themselves in power. This canvassing has made the balance of power in Parliament depend, not on principle, as it should, but on convenience and gratification.
2. The other is bargaining: the predilection among members of Parliament to keep themselves in power by shifting their allegiance from Party to Party. They are motivated by personal gain and in their greed for power, they betray the confidence placed in them by their Electorate. The moral responsibility for making that breach of trust lies mainly on the Judiciary for its progressively permissive interpretation of Article 99(13) of the Constitution.

A Betting Centre                                   Read More

Third Republican Constitution: A Phoenix Rising From The Ashes

By Wimalanath Weerarathne-Monday, January 18, 2016

The latest political maneuver of the United National Front for Good Governmence (UNFGG) at present is to bring before the people a new people-centric Constitution.

Three committees have been appointed  thus far, of which Dr. Jayampathi Wickramaratne heads the committee entrusted with the task of drafting the new Constitution. Attorney-at-Law Lal Wijeratne chairs the committee mandated to engage the participation of ‘civil society’ organisations together with the public at  and thereby ensure that there is good dialogue with the people. Prime Minister Ranil Wickremesinghe heads the Parliamentary maneuverings and even tabled a resolution converting Parliament into a Constituent Assembly for the purpose of formulating Sri Lanka’s Third Republican Constitution on January 09.

The Constitution is the fundamental law of the country and represents the aspirations of its people. The constitution is crucial in  that it ensures that  the rights and freedom of the public are is ensured.

1947 Soulbury Constitution

The 1947 Soulbury Constitution directed the newly-born Asian nation for the next three decades. The Constitution was based on the requirements of none other than the ‘Father of the nation’ and first Prime Minister of independent Ceylon – D.S. Senannayake. This Constitution was not built on the aspirations of the native people and adhered upon us by the British Raj just like the Colebrooke – Cameron Reforms (1833), Crewe MaCallum Reforms (1912), Manning Reforms (1922); and finally the Donoughmore Reforms (1931) which introduced universal suffrage to the then Ceylon.

Although, minority leaders complained to the colonial rulers that the Soulbury Commission did not represent their interests,  the influence of Premier Senannayake and Lord Soulbury prevailed upon them.

1972 First Republican Constitution      Read More »

No impediment to the Buddhism or to the unitary state from the constitution - PM

Jan 18, 2016

Prime Minister Ranil Wickramasinghe stressed that there is no impediment for the Buddhism or to the unitary entity of the country by the formation of a new constitution.

“We are all Buddhists, I am a Buddhist, I am a Singhalese and a Sri Lankan. My objective is to unite the country which was divided. We should go forward. I would urge the small political parties not to betray the country in order to gain petty political benefits”
The prime minister made a special statement at a media briefing held at Prime Minister’s office that a only a constitutional forming board has been proposed at this moment.

“In 1972, Sirimavo Bandaranayake summoned a constitutional board. During the welcome speech in the parliament she obtained the required permission. We all participated for that. Although they did not accept our opinions we all participated. Everybody got a chance to speak”

The Prime Minister said except people’s representatives public ideas too would be taken in to consideration.

“Visumpaya has been selected to take public opinion to compile the constitution. Visumpaya which was used for bottle parties before has been chosen to compile the constitution. People can go and give your ideas. We would join all people in the country and all the political parties to start this. I don’t think we cannot reside in a room and compile the constitution through a junta”

The prime minister said we can make use of the social media to take the ideas from the youth.

The prime minister said as promised by the president in the funeral of Rev. Maduluwawe Sobitha the constitution would be compiled by taking the consent of all stakeholders in the country.

Constitutional Reforms: A Brief Survey Of Our Past & Present

By C.V. Wigneswaran –January 18, 2016

C.V. Wigneswaran

Following my request addressed to the Swiss Ambassador to invite to Jaffna the Swiss Institute for Federalism of Fribourg, Switzerland for a series of Seminars and Conferences on devolution of power, Mr. Davide Vignati, First Secretary, Political Affairs of the Embassy of Switzerland, Colombo contacted Dr. Eva Maria Belser who is here, the Director of the Institute who confirmed her availability. It is she who identified Professor Nico Steytler from Cape Town and Mr. Maurizio Maggetti to accompany her. I had considered such a Seminar urgent on account of the Constitutional drafting process which was being put in motion early this month.

Thus with the support of the Institute for Constitutional Studies of Dr. Jayampathy Wickramaratne we have jointly organized this Seminar. I considered the Hon. Members of the Eastern Province important since our political problems are intertwined and sufficient knowledge in respect of the subject in hand was critically needed not only by us in the Northern Provincial Council but also by the Members of the Eastern Provincial Council.

I had suggested the University fraternity as well as the Civil Society too be given this opportunity. I am glad it has been possible to arrange such a Seminar for them too this afternoon and tomorrow respectively. While the Seminar today will predominantly be a platform from which our Resource Persons, Professor Eva Maria Belser of the University of Fribourg, Switzerland, Maurizio Maggetti, Research Fellow at the Institute of Federalism (Incidentally he has worked in Sri Lanka with the Berghof Foundation and Sarvodaya) and Professor Nico Steytler of the University of the Western Cape, Cape Town, South Africa would be sharing their knowledge and wisdom, both theoretical and practical on the whole issue of different constitutional models for power sharing during this two hours’ session, their inputs would be beneficial to all of us Sri Lankans to identify constitutional mechanisms that would suit our particular ethnic background and context. Solutions would have to be later identified on the basis of the knowledge we receive to suit the existing circumstances.

Let me give a brief survey of our past and present.

97 years ago two Sinhala political leaders Sir James Peiris and Mr.E.J. Samarawickrema wrote and pointed out to a National Leader and Tamil, Sir Ponnampalam Arunachalam, that the Tamils have been the majority in their own areas from time immemorial while the Sinhalese have been in their areas. Those areas could be identified more or less to fit in with the Northern and Eastern Provinces from where most of our honourable Members present here have come from on the one side and the rest of the Provinces to the South of these two Provinces on the other.

Though there have been a tendency to doctor and change history after 1956 the statement by those two Sinhala Leaders are still accepted as historically correct. The two communities Tamil and Sinhala have occupied this Island from time immemorial. The existence of the Kingdom of the Tamils or the Jaffna Kingdom upto the coming of the Western Nations have been historically recognized.

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13-A Back In The Spotlight

Signing of the Indo-Lanka Accord

By Easwaran Rutnam

Monday, January 18, 2016

The visit to Colombo last week by Indian Foreign Secretary S. Jaishankar, British Minister of State Hugo Swire and the scheduled visit by the UN High Commissioner for Human Rights, Zeid Al Hussein has put the 13th Amendment to the Constitution back in the spotlight.

Jaishankar, during his meeting with the Tamil National Alliance in Colombo, had discussed the need for a political solution for the Tamils through the full implementation of the 13th Amendment.

Hugo Swire had also discussed the matter and Zeid Al Hussein is expected to draw attention to this as well since it is in the resolution on Sri Lanka adopted by the UN Human Rights Council last October.

The resolution welcomes the commitment of the government of Sri Lanka to a political settlement by taking the necessary constitutional measures, encourages the government’s efforts to fulfill its commitments on the devolution of political authority, which is integral to reconciliation and the full enjoyment of human rights by all members of its population; and also encourages the government to ensure that all Provincial Councils are able to operate effectively, in accordance with the 13th Amendment to the Constitution of Sri Lanka.

Chairman of the AkhilaIlankai Tamil Mahasabha, Dr. K. Vigneswaran, speaking to The Sunday Leader, said that the full implementation of the 13th Amendment is a must.

However, he noted that the current Tamil leadership is not very serious about the 13th Amendment despite raising a strong voice on it in the past.

Dr. K. Vigneswaran says he had even discussed the 13th Amendment issue with Northern Province Chief Minister C. V. Wigneswaran and he had agreed that the 13th Amendment is the way forward.

“He was very serious about the 13th Amendment. We feel all issues can be resolved under the 13th Amendment,” Dr. K. Vigneswaran said. The AkhilaIlankai Tamil Mahasabha supported Wigneswaran at the last Northern provincial council elections.

However Dr. K. Vigneswaran says the initial interest shown by Wigneswaran on the 13th Amendment seems to have taken a natural death.

More focus on extremist ideas

The AkhilaIlankai Tamil Mahasabha feels that Wigneswaran is now focused on more extremist ideas while the TNA has its own agenda and the 13th Amendment is not going to get the push it requires.

The TNA, in its election manifesto at the August Parliamentary elections last year, had said that the 13th Amendment to the constitution is flawed as power is concentrated at the Center and its agent, the Governor.

In its election manifesto, the TNA said that the Tamil people are entitled to self-determination in keeping with United Nations International Covenants on Civil and Political Rights and Economic, Social and Cultural Rights, both of which Sri Lanka has accepted and acceded to.

The TNA felt that power sharing arrangements must continue to be established as it existed earlier in a unit of a merged Northern and Eastern Provinces based on a federal structure.

The 13th Amendment came to be as a result of the Indo-Sri Lanka Accord signed between Indian Prime Minister Rajiv Gandhi and President J.R. Jayewardene on July 29, 1987.

On November 14, 1987 Parliament passed the 13th Amendment to the 1978 Constitution and the Provincial Councils Act No 42 of 1987 to establish provincial councils.

The amendment aims at creating provincial councils and enable Sinhalese and Tamil as national languages while preserving English as the link language.

No keen interest

Past governments have however not shown keen interest in fully implementing the 13th Amendment, especially since the LTTE controlled most parts of the North and East during the war. However, even after the war, former President Mahinda Rajapaksa had given the UN and India an assurance that the 13th Amendment will be fully implemented but that was not to be.

Dr. K. Vigneswaran noted that with a new government now in office, there needs to be a fresh attempt to get the 13th Amendment back on the agenda. “A task force must be appointed by President Maithripala Sirisena to begin the process of full implementation of the 13thAmendment,” he said.

By devolving powers to the provinces, Dr. K. Vigneswaran said that issues on health, education and housing can be properly addressed.

Dr. K. Vigneswaran accused the TNA of deviating from addressing the core issues of the Tamils despite being elected by the people for the people.

Dr. Vigneswaran was part of the All Party Representative Committee (APRC) when Rajapaksa was in power.

A wikileaks cable on May 04, 2007 by the then US embassy Charge d’Affaires James R. Moore had quoted Dr. K. Vigneswaran as telling the embassy that Tamils do not believe that devolving powers to the district level will meet their aspirations.

Tamil fears

“Tamils fear that the Districts, whose heads are to be appointed by the President, will be subject to manipulation by the central government. Tamils believe that ‘colonization’ of their traditional areas by Sinhalese would accelerate.

Further, Vigneswaran argued, the SLFP proposal (to the APRC removes the powers of police, land and irrigation from the provinces, but replaces them with nothing. He asserted that reserving the security, land and water portfolios to the central government leaves it unclear what is left to be devolved to the districts.” the wikileaks cable quoted the US Embassy in Colombo as informing Washington.

Successive governments were concerned that giving land and police powers to the provinces could lead to the formation of a separate state in the North and East.

Dr. K. Vigneswaran, who wasa secretary to the former Chief Minister of the Eastern Province Varatharajah Perumal, however noted that former President Ranasinghe Premadasa was prepared to give land and police powers to the provinces but the move faced stiff opposition.

Families demand permanent teaching posts in Batticaloa school

18 January 2016
Students, their parents and teachers of the Arayampathi Mavilankuthurai Vigneswara school in Batticaloa protested on Monday demanding permanent posts for school teachers and principals.


The absence of English teachers for the past one year was highlighted by protesters, who expressed concern about the impact on their children's education and employment prospects. 


Hearing of the protest, the zonal education director, K Baskaran promised to have the position by the end of this month. 

The Local Medical Graduates & The SAITM

By Hansika Hanthanapitiya –January 18, 2016

Hansika Hanthanapitiya

We have a solution; only if you’re ready to listen; An Open Letter to the Government of Sri Lanka, the Local Medical Graduates and the SAITM

I will get to the solution strait away.

What if the government established a system where every medical graduate, local, local-private and foreign, has to go through THE SAME standard written and viva examinations so that;

1. Graduates from Colombo Medical Faculty can finally stop saying/thinking that they’re better than all the other local graduates from the rest of the government universities in the country put together,
2. All local graduates can finally stop pointing fingers at SAITM saying their educational standards are inferior to that of the local graduates’,
3. And all foreign graduates who want to practice medicine in Sri Lanka, who are from elite universities like Harvard or Cambridge or any other university which has better international recognition than the Colombo Medical Faculty can finally stop turning their noses up at the local graduates cause their medical education experience is far superior to theirs,

Because everyone will be facing THE SAME set of exams which will standardize the quality of medical graduates who will go on to become doctors in our country and they will all have the same level of knowledge and skills. This I believe will be the most effective solution to the problem, considering the current situation.

Now holding one final standard exam to issue the government medical license to medical graduates (much like the medical examination systems in America and most developed countries), along with one-one-one interviews to assess the mental stability and community mindedness of the examinees, will ensure that none of the doctors would get discriminated at the workplace for being not from the medical faculty of Colombo, or a local university- because this happens quite often, directly or indirectly, and I believe that this negativity affects the performance of the doctors in a hospital setting. Most graduates from Colombo Medical Faculty always regard themselves to be superior to others and consequently even the doctors who are better than Colombo Med graduates but are from other local universities feel inferior to them. I’m sure that everybody agrees that this has to stop.

                                                                Read More

R.Sampanthan awarded "Lifetime Living Hero" recognition

Jan 18, 2016

Excerpts of speech by M.A. Sumanthiran accepting the 'Living Hero Award' on behalf of Hon. Sampanthan by the Canadian Tamil Congress.

Canada has for many years been a great ally of the Tamil People. As a country, Canada has on several occasions taken a strong stand on issues concerning our People. On behalf of the Tamil People, I would like to say that we deeply appreciate the support of our friends here.

Canada has been a true friend to our People, and we look forward to that friendship continuing into the future.I am greatly honoured to accept this award on Mr. Sampanthan’s behalf.‎

In 2011 we visited the United States for a series of meetings. At an important meeting with the US Deputy Secretary of State Wendy Sherman, Mr. Sampanthan spoke for 45 minutes without interruption on the grievances of our people. When he ended, she stated “your people must be a privileged lot to have such an eloquent voice speaking on their behalf’.

During my speech on Soft Power, a year ago at the Raviraj Memorial Oration, I said these things about Mr. Sampanthan to make the point that we – the Tamil People - possess the first necessary haracteristic of soft power – that of a leader respected the world over. I said then, that it is our duty to make the most of this by making it clear to the world that he has the support of his people in treading the political path he is leading them on. I said that we must be vigilant concerning attempts to sabotage this endeavour, not merely from outside, but, as happens far too often, from inside – by efforts that sometimes seem to undermine the mandate and support of our leader. The danger of sabotage is also still a very real one. However, the Tamil People have always stood steadfastly behind their leader. In election after election they have reiterated their resounding support for him, and for the path he is leading them on. They have refused to be swayed by any effort to undermine him.

One of Mr. Sampanthan’s strengths has been his implicit trust in the Tamil People – in their political wisdom, understanding and astuteness. I am certain that the Tamil People will continue to strengthen both Mr. Sampanthan and the TNA, and that together, we will be able to make the most of this opportunity that has arisen, for the good of our People.

Thank you.

If the Premier cares about media freedom, here is something he can do 
2016-01-18

rime Minster Ranil Wickremesinghe has criticized the media over its conduct during the Rajapaksa regime. In other words, is blaming the victim for the rape. At the Thai Pongal festival in Jaffna, he accused the media of ‘going shopping’ for the infamous 18th Amendment and warned the media not to spoil the ongoing constitutional process. There is little evidence that the media, save the State-owned ones supported the 18A. Perhaps, the Sinhala media which caters to the largest segment of the audience could have been a little more aggressive. But, that could well have got a few more journalists white-vanned.

The difference between Mr. Wickremesinghe and the majority of journalists who disliked the former regime is that unlike the latter who as the then Opposition Leader enjoyed the protection from the excesses of the State, journalists did not have immunity from intimidation, abduction and state-orchestrated arbitrary sackings.

If the Premier Cares About Media Freedom, Here is Something He Can Do by Thavam Ratna

Police Should Be Made To Respect The Rule Of Law

By Nagananda Kodituwakku –January 18, 2016

Nagananda Kodituwakku

In the light of the recent tragic death of Sumith Prasanna (29) reported in Embilipitiya, people have expressed their concerns about the conduct of the police and the law enforcement role vested in it, with due regard and respect to the rule of law – a factor however apparently not observed in this instance. The supreme law of the land [Article 4(d) of the Constitution] requires that all persons exercising people’s executive power to respect, secure and advance the fundamental rights of the citizens, keeping away from the cruel, inhumane and degrading treatment of citizens.

It is apparent from the statement made to the media by the spouse of the deceased, who also had a young child, that people have no confidence in the on going inquiry into the death of the youth.

The statement made by the police spokesman to the media was as follows: “when police officers were attempting to arrest the individuals behaving in a disruptive manner, one person jumped from the third floor of the building through the glass”. This statement evidently not based on any credible evidence, clearly contradicts with the statements made by the eyewitnesses who had spoken to the media, suggesting that it was another murder under tragic circumstances. Without doubt, the protests of this nature launched by citizens and their questioning of the integrity of power obsessed nature of some of the officers in the police, who are assigned to perform their duties according to the rule of law, has further downgraded the public confidence in the police.

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The illusive rescue of the rupee by an elusive -Belgian investor: Is the Yahapalana -Government on the wrong track? 

An elusive Belgian investor to rescue the rupee

Monday, 18 January 2016

According to Reuters, Finance Minister Ravi Karunanayake is reported to have disclosed that an unidentified Belgian investor has promised to give Sri Lanka $ 1 billion by way of a deposit carrying an interest rate of 2%. 

The minister has opined that it would boost the value of the Sri Lanka rupee which is under pressure for depreciation quite for some time (available at: http://www.ft.lk/article/518680/--1-billion-mystery-investor-boosts-rupee). Without disclosing the full facts, several features relating to the transaction in question have also been revealed by the minister.

Accordingly, there is a local partner to the Belgian investor, it is a kind of a demand deposit from which the investor could take his money out at any time, the first tranche of the deposit amounting to $ 500 million has already been received and the balance will come shortly. The minister has said that if anyone suspecting potential money laundering in the transaction in question can seek the courts’ intervention for a determination as to whether it would violate existing laws. 

But an officer of the ministry, according to the Reuters report, appears to have given a firm judgment on the issue obviating the necessity for even seeking legal intervention. He is reported to have opined that it is the responsibility of the money-remitting bank to check on the credentials of the investor in question. The money receiving bank in Sri Lanka or, by implication, the Sri Lankan authorities have nothing to do with that issue. 

This is an awkward legal opinion because it discharges, contrary to the common banking and legal practices, a third party from liability if he has accepted a stolen property – say a cheque – on the basis of a certificate issued by the second party about its genuineness. 

Hence, it is a transaction that has been sealed by a sovereign government. Strangely, the Central Bank has so far maintained stoic silence on it implying that it too has concurred with the seemingly out of the box move to build up the reserves of the country. 

An unconventional move by the Finance Ministry to rescue the rupee 

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