EU development strategy aims at ‘implementation of UNHRC Resolution’

06 June 2016

The European Union is revising its development strategy for Sri Lanka, in order to assist with the implementation of a UN resolution that calls for trials with foreign judges to prosecute those accused of committing mass atrocities.

A statement released following the conclusion of the meeting of the Working Group on Cooperation between the European Union and Sri Lanka last week said the two have “enjoyed diplomatic ties that span more than 40 years”.

“Over the last decade, the EU has been one of the leading international donors, providing support for conflict affected people, the reconstruction of houses post-tsunami, and grassroots development, aimed at helping the poorest people in Sri Lankan society,” the statement continued, noting that “the EU has set aside up to EUR 210 million (approx. LKR 34 billion) for Development Cooperation with Sri Lanka up to 2020”.

Mr Jorge de la Caballeria, Head of Unit for South Asia and South East Asia, said that "The EU, in close consultation with the Government, is currently in the process of revising its development strategy for Sri Lanka”.

“Besides a continuing focus on Integrated Rural Development, the country strategy will also support the Government's plans for Reconciliation and Governance,” he added. “We hope that the new priorities will assist the Government in the implementation of the UNHRC Resolution on Sri Lanka, encompassing the areas of accountability and transitional justice, resettlement and durable solutions, governance and reconciliation".

20160530.PDF Joint Press Release Following the Meeting of the Working Group on Cooperation Between The by Thavam Ratna

Civil Society Emperor CEPA Has No Clothes

By Jolly Somasundram –June 7, 2016

Jolly Somasundram

“Community Mediation: A Just Alternative? Expectations and Experiences of Community Mediation Boards in the Northern Province” – By Mohamed Munas and Gayathri Lokuge. – Published by “The Centre for Poverty Analysis (CEPA)” – (46pgs). 31 March 2016. – (CEPA Working Paper Series No 21- 2016)
Reviewed By: Jolly Somasundram

Civil Society Emperor, CEPA, Has No Clothes  (Parturiunt CEPA nascetur ridiculus mus: CEPA laboured forth and produced a ridiculous mouse.)

“Two disputants agreed to visit the village sage, seeking mediation on their bitter dispute. He listened patiently to both. At the end, addressing one, the mediator said the disputant was right. Turning to the other, the mediator said that he too was right. The watching wife asked how, both could be right at the same time. The mediator answered, ‘you too are right’ ”.

Mediation is a voluntary process in which an individual or group, helps people in conflict, to negotiate tangible and mutually acceptable agreements which resolve their differences. The first mediator in Sri Lanka was The Buddha, who visited her on three occasions, to successfully mediate three separate disputes. Community Mediation Boards (CMBs), dealing with community (group) based alternative dispute resolution mechanisms- as against judge (individual) based dispute resolution mechanisms- were set up in 1988. After Independence, governments addressed the same social issue. In 1958, it got enacted the Reconciliation Boards Act No 10 with amending Act 12 of 1963, under which Sama Mandalayas were created by the Minister of Justice. They did not measure upto expectations, and, in 1971, The Peoples Committees Act No 12 was enacted. Its Committees (called Janatha Committees) became so notorious that they were quickly abolished in 1978, to be followed by the Debt Conciliation Board. This Board lasted till 1988 when the Act to set up CMBs was enacted. The next product development for CMBs (following on the Tsunami Mediation Boards), is the setting up of special mediation boards to deal with residual land issues in the N-E Province, a recommendation of the Lessons Learnt and Reconciliation Committee(LLRC) and part of the reconciliation process initiated by Government. (The first two offices, in this institution building effort, were opened on 27. May. 2016. They will be followed by Anuradhapura, Trincomalee, Batticoloa, and Amparai). CMBs, in the quarter century of their existence, had gained international recognition. High level delegations from Bangla Desh, Laos, Mongolia, Nepal and Timor Leste have visited Sri Lanka to study their operations.

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SRI LANKA GOVT BLOCKS PUBLICATION OF IMF PROGRAM REPORT

( International Monetary Fund chief Christine Lagarde)

07/06/2016

ECONOMYNEXT – The International Monetary Fund has said that publication of its economic report on Sri Lanka after its 4th post-program monitoring mission last year has been withheld at the request of the government.

“The Sri Lankan authorities have indicated that more time is required to give consent to publish the staff report for the Fourth Post Program Monitoring Discussion,” the IMF said.

The comment came in a note acccompanying the statement on the IMF Executive Board’s approval of a three-year 1.5 billion US dollar loan for Sri Lanka.

Sri Lanka’s central bank had earlier denied it had asked the IMF to withhold the post-program monitoring mission report.

The IMF concluded its 4th post-program monitoring mission in September 2015 and the report went to its board in December.

“In December there was no staff report that I am aware of,” Central Bank Governor Arjuna Mahendran told reporters in April.

“Look, we are not consciously suppressing anything, I can tell you that much,” Governor Mahendran said.

The latest IMF statement said that on November 13, 2015, the Executive Board of the IMF concluded the Fourth Post-Program Monitoring (PPM) with Sri Lanka.

Post-Program Monitoring provides for closer monitoring (usually twice a year) of the circumstances and policies of members whose Fund-supported program has expired but that continue to have significant Fund credit outstanding, it said.

“It is intended to provide an early warning of policies which could call into question a member’s continued progress toward external viability and thus could imperil Fund resources, and a mechanism for bringing this to the attention of the country’s authorities and the Executive Board and stimulating action to improve the situation.”

(COLOMBO, June 06 2016)
EN

Proving that the 19th amendment is not mere propaganda

19th amendment diluting obnoxious executive presidency in peril ; people’s triumph sabotaged-parliament dissolution impossible !

Sunday, June 05, 2016

Where Sri Lanka’s non-adherence to the Rule of Law is concerned, there is a disturbing continuity between the immediate ‘Rajapaksa’ past and the present which cannot be wished away despite all our optimism. Signs of this were evident at the very start of the Sirisena Presidency giving rise to considerable disquiet.

These patterns have now become far more evident, indicating that there is little political will to measure up to the high expectations with which a new Presidency and a new Government were elected to office. In this context, the more President Sirisena sermonizes on what is right and proper in governance, the more he looks faintly ridiculous even as words spoken so loftily are clearly at variance with unacceptable political compromises made. On its own part, the United National Party’s performance is scarcely reassuring.

These are no ‘yahapalanaya victories’

This week, the Government pulled back on its appointment of former Rajapaksa loyalist Anusha Palpita to a senior position. The appointment had been made disregarding the indictment being filed against him for gross corruption. The idiocy of this entire exercise was that this retreat was then hailed as a welcome victory for the ‘yahapalanaya’ (good governance) administration. But the fact remains that such an obnoxious appointment should never have been made in the first place.

It is no ‘victory’ to have a Government so entirely oblivious to good governance as to blatantly appoint an individual who had been indicted in the High Court for gross corruption and then retreat on that appointment in the face of public fury, patting itself on the back as it did so. Certainly ‘yahapalanaya’ cheerleaders displaying inappropriate delight at these ‘victories’ constitutes an unwelcome path to encouraging this Government towards greater follies even as politicians laugh at the naivete of the public.

In this instance, those in ministerial ranks responsible for this disgraceful incident passed the accountability thereof to the Public Service Commission (PSC). If this Government was sincere in regard to its rhetoric, it should severely discipline its minister-puppeteers. But that political will is clearly lacking as we saw on innumerable occasions in the past, including Justice Minister Wijeyadasa Rajapaksa’s disquieting actions where the ‘Avant Garde’ floating armoury scandal was concerned for which no ministerial accountability was enforced. Indeed, sporadic indictments against Rajapaksa loyalists and bumbling efforts elsewhere show that there is little genuine effort in the anti-corruption drive.

Injustices of the past continues

In other respects, the injustices of the past continue to the future. In the East, land issues of displaced Sinhala, Muslim and Tamil villagers continue. The tussle between the political authority and the military on the return of displaced land to villagers was predictable. Only the naïve would have expected otherwise. But the twist to the tale is that avaricious ‘yahapalanaya’ ministers have replaced Rajapaksa acolytes. The plight of the Panama displaced is one good illustration. Both in Panama and Ragamwela, the evictions were accomplished during the Rajapaksa years through brute force and by masked men threatening the villagers. One would therefore have expected that this injustice would have been speedily corrected by the new administration.

On the contrary and ironically enough, Panama villagers continue to be evicted from their lands despite a relevant cabinet decision in their favour. The entire weight of the law militates against such forcible acquisitions. On numerous occasions, the Supreme Court has stressed due process requirements to be applied for all evictions. In addition, when the land of an individual is sought to be acquired, the State cannot simply plead ‘public purpose’ and leave it at that. Neither does a vague ground of ‘meeting security requirements’ suffices. The State is under a clear duty to justify its reasons when taking land away from occupants. The plight of the displaced in Panama and surrounding villages is one good example where the displacement of the Rule of Law forcibly continues.

In the North, indecently hastened ‘reconciliation’ mechanisms are established without consultation with the victims in order to meet the forthcoming scrutiny of the international community. After all the painful lessons of the past, this push to have ‘cosmetic’ accountability is indefensible.

Performance of constitutional commissions

In this context, how have the independent commissions fared in restoring public trust in Sri Lanka’s institutional governance? This subject deserves detailed scrutiny. Suffice it to be said for the moment that the performance of the PSC and the National Police Commission (NPC) leaves much to be desired. Unfortunately, these are precisely the two Commissions vested with actual authority to compel accountability from state officials. This is quite distinct from the Human Rights Commission for example which does not have that mandate with the consequent result that however excellent its directives or orders may be, they are often than not bypassed by the establishment. A case in point is the Human Rights Commission’s positive finding in regard to the displaced Panama villagers some years ago which continues to be ignored by the relevant state officials.

In contrast, the PSC and the NPC have authority at their command if only this responsibility is used forcefully. Let us take the NPC as an example. During the time period that has lapsed since this body came into existence under the 19th Amendment, its record where the accountability of the police service is concerned is disappointing.

Public responsibilities cannot be  treated lightly

The NPC must not be regarded as a ‘post box’ where it merely entertains complaints and refers them to the police for investigation. Past practice has been that the investigation of police officers by other police officers yields no positive results. This must be changed. Substantive disciplinary control must be exercised by the NPC over the police service. We have yet to see this manifested.

In addition it needs to be clarified if the practice adopted by the first NPC under the 17th Amendment, of interdicting police officers indicted of torture under the Torture Act No 22 of 1994 continues. These are public responsibilities vested in the NPC and cannot be treated lightly.

In the absence thereof, the gains of the 19th Amendment become reduced to political propaganda and little else. An isolated ‘victory’ over a singular and monumentally bad appointment to the public service does not detract from this reality.

When politics is less than the art of the possible

The uses and abuses of pragmatism

"The reasonable is the real and the real is the reasonable"- from Hegel’s Philosophy of Right (1821)

by Kumar David-June 4, 2016, 6:23 pm 

The frequent apology for the shortfall in achievements of the government and one that I have sometimes repeated is that politics is the art of the possible, hence it is sterile to demand things that, for reasons of structure or circumstance, it is impossible to accomplish. It is Prime Minister Ranil’s frequent defence, I understand. By structure I refer to the fact that President, and a large number of government MPs and Cabinet Ministers come from the SLFP, while the PM and parliamentary and cabinet majorities belong to the UNP-led alliance. I concede that this structural constraint is a ball and chain because rotten politicians have a sympathetic President, PM or colleague to use as a shield. By circumstance I mean that Rajapaksa era detritus is still not fully flushed out of the state bureaucracy, police, military, courts and local government. This essay explores some implications of this defence; but before that let me say a few words about the generalities of this reasoning.

The historical guru of this line of thought is Edmund Burke (1729-1797), man of letters, source of many quotes and what would today be called PR man. An Englishman and political conservative but a supporter of the American Revolution, who opposed the more important (for the world) French Revolution just six years later. He was an outspoken critic of British excesses in India (impeachment of Warren Hastings) while remaining in the conservative wing of the Whig Party. The Whigs backed mercantile interests (hence had more in common with the French bourgeoisies) while the Tories bummed the landed classes and the exiled Stuart monarchy. Burke opposed confiscation of church property by the French revolution and abhorred the atheism of its revolutionaries. Rather a complex figure but since he was the first to construct a theory of political pragmatism he is relevant to the ongoing debate in Lanka.

The essence of his view is that politicians should base actions and perspectives on what the people would accept and not on abstract principles. He favoured political realism that aligned with prevailing public mores, historical tradition, or even on fictions if people believed them. On this view, for example, the left was unwise to oppose Sinhala Only and demand Tamil linguistic recognition in the 1950s since, obviously, the Sinhala masses would have none of it. Burke argued that disregard for political realism leads to instability and chaos. Nonetheless he supported American Independence, not popular in England in the early years of the independence war, but he did not follow the majority at all times and vociferously opposed the French Revolution even at the early stage when it was admired by the British populace. This disconnection was because the American Revolution protected property while the French overthrew these rights. The crux of the matter is that Burke, though the apostle of static realpolitik, at the same time intervened, influenced events, and led changes in conflicting ways. The spirit of an age, Burke would have said, is the emperor or the prince, to borrow Sun Tze’s and Machiavelli’s terms respectively, who gets the ever changing swing from stability to novelty and back again, right. Burke himself did not belong in this fabled set but his life story need detain us no longer.

Pragmatic realism

There is no great social transformation visible on the Sri Lankan horizon at this moment, but by no means should that prompt passivity or its sterile companion, red flag waving slogan chanting vainness. The former is the torpor of a dead and retired left, the latter the futile fervour of sectarianism. The right attitude in quiescent times is pragmatism and realism - a ‘transitional programme’. In such times one must set one’s self doable tasks; politics as the art of the possible. But these efforts must point somewhere, have direction and be a transitional step taking society towards a goal. This sounds a little abstract so I will flesh it out with two local examples.

The briefest statement of the ‘over-determining’ problems in Lanka at this time can’t be shorter than: (a) the national question, (b) the economy. Even if you are a brave radical who disputes my contention that revolution is not round the corner, humour me and go along with this view for the rest of this essay. In that case, ultimate demands and expectations are fruitless. At the same time actions that, however limited in themselves do not have a transitional content, the possibility of going further with the progress of events, are sterile. I will work on (a) today and keep (b) for next week.

Let’s take the national question. I will short-list three constraints that, in an Edmund Burke sense, are limitations of the public mind, prejudices that cannot be overcome at this time. They are all regressive, even primitive, but true. The Sinhala people will not agree to abandon the codification of Lanka as a unitary state, nor agree to refrain from exalting Buddhism in the state system or agree to declare Lanka a secular state. This is too modern and rational for our semi-feudal minds to stomach – bad pun. The third point is that devolving even limited power to Tamils and Muslims can be sneaked in only by sleight of hand, not because it endangers national security, but for ugly beggar thy neighbour feelings of antipathy for the ‘other’. Tamil and Muslim readers may be inflamed but hold your horses; I am describing the real world, not advocating anything, yet. Kin lines of tactical reasoning can be developed about the hybrid court compromise mechanism relating to the UNHRC mandated inquiry.

What is the pragmatist’s way out that still retains scope for improvement? If the word unitary cannot be removed (I would dearly love to shove it up you know where) retain it but undermine it in concrete content in every clause defining minority and provincial rights. Write in contradictions so that the courts can systematically use them to tear down retrogressive provisions. Likewise if the state cannot be affirmed as secular, hollow out the privileges conferred on church and clergy; make easy to ignore ceremonial concessions only. How to go forward? There are many idiocies to remove. Why can’t I buy a bottle or indulge in a beef steak on poya day – it’s not anybody else’s business – so out with such restriction. Nothing pertaining to religion should be compulsory in school curricula; opting out of such activities should be a right. Finally, deny religious institutions public funds; surely is it not better that genuine dayakayas be given every opportunity to prove their devotion!

Power relations

Of course the two previous paragraphs are not well thought out constitutional designs; that has to be left to experts. What I am suggesting is that the designers take an iconoclastic wink at holy cows and make the new constitution pragmatic, realistic and sceptical. But it is the political leadership (in essence Ranil-Sirisena or R&S) that will call the final shots; the drafters are only pen-pushers. The time has come for R&S to opt for brash can-do positivism! I have often said in this column that the sine qua non for the survival of this government is that the R&S bond should be tamper-proof. The Joint Opposition (JO) tried its utmost to create a rift and failed rather badly – or am I speaking too soon? The outcome of local government (LG) elections could bring new mood swings.

The JO recently entered a phase of decline, may be temporary, but it has come to realise that this government and president will serve out their terms. That many years is too long a period for the JO to survive without fragmenting even if it makes gains in the LG polls. When the Weerawansa-Udaya-Vasu-Dinesh clique was mobilising to incite racial violence I suggested drawing racist hooligans to the streets and thrashing them. Well, the JO got the message and backed off after the PM’s challenge in parliament. The point I am underlining is that the time has come for R&S to move from defence to offence; cleverly tame chauvinism, disrupt the JO, and face the formidable economic challenges by relying on public education and mobilisation. (Await next week’s thrilling instalment!)

Abuses of pragmatism

There are aspects of this government’s conduct, cloaked as pragmatic compromises that are indefensible; sometimes incomprehensible. Many events are inexplicable if you take it that R&S are not personally corrupt and not under unknown obligations to make absurd decisions. I will mention two to give you a flavour but there are more. For what reason in pluperfect heaven was a person, indicted and currently on trial before the High Court, appointed Additional Secretary to the Home Ministry! To the best of public knowledge this person is not R’s or S’s uncle or nephew, is not alleged to have passed either of them a wad of dollars, and has no credible political clout. Fonseka’s appointment as an MP is ultra-vires, but I see the political imperatives; but this joker in the Home Ministry! Why oh why?

And then there is the ugliness of the bond scam whose stain will tarnish this government for all of its days. Refraining from renewing the Governor’s contract when it ends in a few days will not bleach out the stain, but it will show that R&S are pragmatic and take account of public disdain after the event at least. Pragmatism serves a purpose, but abuses under a specious cloak of pragmatism, have no place in art-of-the-possible practicality. President and PM have taken the road of making too many unforced errors and I am inclined to adopt a more critical attitude to both in this column.

A colonel connected to the murder of Lasantha Wickramathunga

Jun 06, 2016

Information has been revealed that a colonel and five intelligence officers of the Sri Lanka army attached to a secret intelligence unit located at the Muththiah Road Colombo 2 are connected to the murder of journalist Lasantha Wickramathunga.

Reports further confirm in order to reveal this, the CID has to check and track 40 million communication logs and it was disclosed that more information’s would be reveled about the murder of journalist Lasantha Wickramathunga and the suspects would be arrested soon.

In a land of fiction

“That is no excuse,” returned Mr. Brownlow. “You were present on the occasion of the destruction of these trinkets, and, indeed, are the more guilty of the two, in the eye of the law; for the law supposes that your wife acts under your direction.”

“If the law supposes that,” said Mr. Bumble, squeezing his hat emphatically in both hands, “the law is an ass — an idiot. If that’s the eye of the law, the law is a bachelor; and the worst I wish the law is, that his eye may be opened by experience — by experience.”

– Oliver Twist, Charles Dickens

Where real stature is lacking, common decency or integrity doubtful, a false show and intimidation are often resorted to

Tuesday, 7 June 2016

If there was one war cry that united the unlike and hastily-arranged Yahapalanaya alliance, it was the charge against a regime which had come to epitomise family rule, abuse of State power and corruption in every form. The oppression united the varied Opposition groups; whatever their political differences, things could not be allowed to go on that way.

On 8 January 2015, the majority agreed. For an electorate long accustomed to voting on immediate economic factors, this was a welcome departure, a mandate based on good governance, ideals prevailing over self. In taking this path, the voter took a blind corner, but hopefully, with expectations for a better society.

Not all voters were convinced. As the voting showed, the issue was decided narrowly, a swing of two to three hundred thousand votes could have changed the verdict. Some analysts argue that had not the Muslims voted as a block, the result could have been different. It could also be argued that those who voted with the Rajapaksa camp were swayed by the sweeping propaganda unleashed by a suppliant Government media and even a compliant private media, the latter weakened by sporadic but brutal acts of intimidation as well as open bribery and inducements.

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Explosion at SL army’s central armory could be the result of a calculated conspiracy ! - Foreign expert

(Lanka-e-News- 06.June.2016, 9.45AM_ The conflagration  and explosions at the Sri Lanka Army Kosgama central armory destroying it in toto could be the result of a calculated conspiracy , a foreign expert on armory and ammunition storage revealed to Lanka e news.

He supported his view on the eye witness accounts and the latest discovery that this explosion was systematical. 

It was systematic because the explosion started with  the small ammunition (bullets) storage area and spread to the larger (bullets) ammunitions region. The larger quantity of the ammunition are stored underground. 

Such an incident can only take place when the most final and vital security apparatus protecting the armory explodes , the foreign expert pointed out. Any armory in the world has a method to explode the armory when it is at its danger end of security . That  method is resorted to only when the armory is about to be captured by the enemy . It is only at such a point this method is resorted to which will destroy the armory completely  by explosion before fleeing in order to prevent the armory from being captured by the enemy.

This apparatus installed in front of the Kosgama armory is meant to be used to destroy the armory  if it cannot be rescued , based on the Army theory aforesaid .The same foreign expert speaking to Lanka e news revealed it is his suspicion , the Kosgama armory explosion has occurred on those lines as explained by him , that is , taking cover under the method that  destroys the armory  ‘before the armory goes into enemy hands ‘

There are many valid reasons  to arrive at this  conclusion:

According to eye witnesses a huge sound was heard of the  explosion coming from the direction of the small ammunition armory , and that began spreading towards the armory containing the larger ammunition .

This is something that cannot happen spontaneously , and therefore the explosion could not have occurred unless  the necessary charger to cause the explosion was  activated. Yesterday the temperature in  Colombo was 30.6 centigrade , and owing to this heat the charger necessary to cause the explosion could not have got activated.

When that is the actual position , obviously this charger most vital to cause the explosion had to be activated by somebody .

In the circumstances , this armory that was for so long fully secured  , suddenly exploding yesterday evening is possibly an absolute conspiracy  , the  expert asserted.

---------------------------
by     (2016-06-06 04:29:41)

Kosgama Army Camp Fire: Deployed Disqualified Officers to Manage The Storage – Investigators

The loss of ammunition alone is nearly Rs. 10 billion

( June 6, 2016, Colombo, Sri Lanka Guardian) “Officers without specialist training have been deployed to manage the ammunition at the sub ammunition dump of the Salawa Army camp in Kosgama, the CID has found out in the course of its investigations into yesterday’s (05) blast there< local media reported while quoting the top security sources in the country.

It is compulsory for officers on duty at an ammo dump to have followed the ammunition technical officer (ATO) course, the training for which several officers are sent each year to India and Pakistan, the report published by the Sri Lanka Mirror, an online news portal added.

The report further reads as follows;

“Also, soldiers should follow the ammunition technician (AT) course to become eligible to serve at an ammo dump, and personnel are sent every year to India for training.

“CID investigations have revealed that officers at the central arms and ammunition dump at Veyangoda and the sub ammunition dumps at Veyangoda, Welisara and Kosgama have not had such training.

“The foreign-trained officers have been deployed for other duties.

“Maj. Gen. Kenneth Edema, USP, who was the administrator of the Kosgama ammo dump is not an ATO, but actually should have been in charge of the supply of vehicles, fuel and meals.

“Also, Maj. Roshan Perera, who was previously in charge of the ammo dump, was recently given a punishment transfer to Diyatalawa and in his place was appointed a lieutenant without any specialist training.

9,000 tons of ammunition lost

“Meanwhile, ammunition weighing around 9,000 tons had been destroyed in the explosion, and unofficial sources say the ammunition was stored in an unprofessional manner.

“The loss of ammunition alone is nearly Rs. 10 billion.

“The Kosgama sub ammunition dump was established in the early 1990s during the Chandrika Kumaratunga regime despite protests by area residents against its location in a populated area.

“During the war, more than 20,000 tons of ammunition were kept there, and half of them were removed to the Veyangoda sub ammunition dump, which is housed in the premises which previously was the Veytex company.

Clicking through the rubble


2016-06-06
A young man trying to use his mobile phone to capture the scene where a multi barrel had landed on a house after a fire broke out at the Salawa ammo dump on Sunday. Pix by Pradeep Dilrukshana
a


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GOVERNOR OF THE CENTRAL BANK (CBSL) MISUSING AND ABUSING HIS POWERS

(Keerthi Tennakoon, speaking at the press briefing)

06/06/2016

The Chairman of the Lankaputhra Development Bank Limited (LDBL), Lasantha Gunawardena who was removed by the Department of Bank Supervision is being protected by the CBSL Governor! – Advisor to the ACF says at a press conference.

The CBSL Governor who through two bonds issues has been involved in a conflict of interest is at present misusing and abusing the powers afforded to his position. He has used his powers to keep Gunawardena in his post thus.

The LDBL crisis – Mahendran’s dictatorial/authoritarian/arbitrary use of powers

The CBSL’s Department of Bank Supervision on the 24th of March 2016 through a letter sent informed that the Chairman of the LDBL should no longer continue to serve in the said post. The reason for this was twofold. The first was that Gunawardena did not possess the professional qualifications required as per Section 3 (5) (IX) of the Banking Act, Direction No. 12, of 2007. The second was that previously despite warnings of danger being given, the Chairman had unheeded them and failed to protect the Bank’s confidentiality and thereby failed to fulfill the duties and responsibilities of the post of the Chairman.

Financial institutions and special banks registered in the country are bound to conduct themselves in accordance with directives and warnings provided by the CBSL’s Department of Bank Supervision. This is for the betterment of the banking process and to protect the standards in place. Section 76 (h) (42) (2) of the Banking Act, No. 30 of 1988, provides the CBSL with the required powers for this.

The CBSL Governor cannot rescind the said power. The orders based on the recommendations of the Department of Bank Supervision after vigilant monitoring and analysis, are applicable equally to the entire banking sector.

Aside to this, against the Chairman of the LDBL who is forcibly occupying the said post, information with evidence has come to light that he is influencing and interfering with the daily affairs of the Bank, directly intervening with regards to recruitments, and that he revealed information pertaining to clients and stakeholders of the Bank at a press conference.

The CBSL Governor

In a letter sent by the Secretary of the LDBL, Gamini Pitipana to the Secretary of the Ministry of State Resources and Enterprise Development/Ministry of Public Enterprise Development it is noted that the CBSL Governor had recalled the letter sent on the 24th of March.

The CBSL Governor has no power to recall a letter sent by the Department of Bank Supervision. Recalling recommendations made following a technical assessment constitutes a dictatorial/ an authoritarian/ an arbitrary act.

An inquiry into this matter has revealed that the Department of Bank Supervision has never recalled an original, initial letter sent by them. Therefore, this letter still remains valid.

If so, how is the Chairman of the LDBL still continuing on in the post?

The era of Ajith Nivard Cabraal – ending it

The present CBSL Governor was appointed to fill in for the rest of the term of former CBSL Governor Ajith Nivard Cabraal. He has conducted the affairs of his office in the same manner as Cabraal had done previously.

Instead of Cabraal’s gang which destroyed the financial reserves of the country by investing in Greek bonds, the father-in-law and son-in-law team continue to maintain their conflict of interest. Throughout this, the process of issuing bonds continues on sans transparency.

The perfect evidence to prove that the CBSL Governor has abused and misused powers afforded to him is the fact that he intervened with regards to the removal of the Chairman of the LDBL.

The ACF strongly emphasizes that such a Governor should not be reappointed to the post of the CBSL Governor.

Advisor to the ACF, Rajith Keerthi Tennakoon presented these details at a press conference held in Rajagiriya on the 05th of June 2016.

Media Unit, ACF
2016 June 06

An Environmentally Friendly Vehicle Tax System For Sri Lanka

By Lal de Mel –June 6, 2016 

Lal de Mel

There were many complaints in the news media regarding the increase in the Excise Duty of Toyota Prius cars which are used by most taxi companies for the transport of tourists from the airport, because of the high fuel efficiency, internationally accepted safety standards and the long term durability of the vehicle. When a former Minister now representing the joint opposition made an allegation that the duties of vehicles were revised recently to please the Indian authorities, I decided to carry out a study of the Excise Duty structure of motor cars.

Dr R H S Samaratunga, the Secretary to the Ministry of Finance headed the Trade &Tariff department of the Ministry of Finance from the time the Tariff Committee headed by Mr Nihal Jinasena was replaced by the Trade & Tariff Cluster of the National Council for Economic Development (NCED) and the Transport Cluster of NCED. This was during the time of President Kumaratunga. Professor Amal Kumarage of the Moratuwa University was appointed as the Co-chair of the Transport Cluster with the responsibility of planning the transport strategy and the vehicle tariffs. The writer was appointed as the Co-chair of the Trade & Tariff Cluster with the responsibility of rationalising the tariffs to three bands and introducing additional tariffs to protect local producers as well as the consumers. Dr Samaratunga was responsible for submitting the recommendations for implementation to the Secretary to the Treasury. Dr Samaratunga was a very intelligent and hardworking person with high integrity. The rational vehicle excise duty structure in Table 1 shows that there is no bias in this duty structure.

The term Excise Duty on vehicles implies that it is a charge levied because of the environmental impact of the particular vehicle. The current Excise Duty structure shown in table 1 appears to be rational, if the emissions are directly related to the engine capacity. This assumption was correct twenty years ago before the launch of energy efficient hybrid motor vehicles. The weakness of the duty structure is in basing the excise duties of hybrid vehicles on engine capacity, rather than the certified fuel efficiency, which is directly proportional to the carbon dioxide emissions.

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At least 75,000 families affected, 91 missing in Sri Lanka’s worst floods last month

Sunday, June 05, 2016

File picture of a cat being carried to safety.

Around 302,000 people in 22 districts in Sri Lanka have been affected due to the torrential rain and floods, according to the latest situation report from the Disaster Management Centre of Sri Lanka. The number of families affected is close to 75,000 with 104 deaths, 31 injured, 99 missing and damage to property totalling over 5,000. There are 210 safe locations housing over 6,000 individuals and 21,484 families.  Key findings in an assessment by the Ministry of Disaster Management in the Colombo, Gampaha and Kegalla districts said the May 2016 floods and landslides have caused the highest displacements, widespread damage to productive assets, loss to livelihoods and agricultural and livestock production.

he frequent natural disasters in the same regions had undermined household resilience and the affected populations had built up unsustainable levels of debts. Food security of the affected populations will be challenging due to displacements, lack of livelihood and income sources. Immediate coordinated relief inputs specifically targeting the vulnerable households in Colombo, Gampaha and Kegalle districts are recommended to prevent a further collapse in household resilience. Markets were operational in all the flood affected regions.

Impact on drinking water availability
In the Colombo district, access to pure drinking water was reported as better and 33 per cent of the displaced households were using bottled water. Out of 34 Internally Displacement Persons (IDP) camps, 23 had reported to have enough access to drinking water. Out of the assessed locations, the main source of water for communal cooking were taps, water wells and water bowsers.  In the Gampaha district, access to pure drinking water was reported at over 90 per cent among the welfare centres visited.

Out of the 22 assessed locations, the main sources of water for communal cooking were water taps and water bowsers. Contamination to the drinking water wells are widely reported.  In the Kegalle district, access to pure drinking water was available at over 92 per cent of the welfare centres visited. The main sources of drinking water for the camps were tap water, wells, (16 per cent) and plastic tanks (21 per cent), the report said.

Sanitation and health
In the Colombo district, more than 50 per cent of the welfare centres reported that the facilities for bathing are limited, particularly in the Kolonnawa DS division. Around 20 per cent of the camps reported that toilet facilities were not available. Most of the welfare centres did not meet SPHERE standards. Diseases were reported among the flood victims but the health centres were functional (over 75 per cent).  In the Gampaha district, over 40 per cent of the camps reported that toilet facilities were not satisfactory or not functional.

Water and sanitation did not meet SPHERE standards. Skin diseases and allergies were reported among women and young children. Only 40 per cent camps reported having enough water supply for communal cooking.  In the Kegalle district, access to toilet facilities were available in all the 22 locations visited. Only 5 per cent of the locations were not accessible to proper health facilities. Approximately, one tenth of camps reported having access to water for bathing and washing purposes. Hygiene kits, clean clothing, especially women clothing were not accessible.

Impact on Food Security and Livelihood
In the Colombo district, 60 per cent of the welfare centres reported having full access to cooked meals and dry rations. However after returning home, the food security situation is expected to deteriorate among households having an income below the poverty line (Rs. 4,099 person/month) and have lost their productive livelihood.  In the Gampaha district, over 90 per cent of flood victims in the visited camps have received food packs or communal cooked meals. However only 20 per cent of the welfare centres visited reported to have full access to communal cooked meals.

The food security situation is expected to deteriorate among the households who have a household income below the poverty line and have lost their livelihoods and productive assets.  In the Kegalle district, access to immediate dietary needs for adults were reported as 100 per cent but limited access to children’s food were reported. Needs of dry rations for the next seven days (as at May 30) were reported in most welfare locations. However, immediate donations were accessible through private donors.

Medium term needs in the  Colombo District

•  Conduct a technical survey to assess the damage/loss to shelter and provide housing assistance/insurance claims
• Conduct post disaster needs assessment and implement recovery activities
•  Support livelihood recovery for the households who lost productive assets (i.e. rented cars, three-wheelers)
•  Conduct 190 health camps covering all flood affected Grama Niladhari Divisions in Colombo
•  Continue food assistance for 14,000 most vulnerable persons for a three-month period
•  Conduct well-cleaning, drainage clearance and debris removal in 190 affected GN divisions
•  Improve the access to financial facilities including soft-loans, private sector salary advances to recover flood damage
•  Increased priority for waste management and cleaning the debris

Medium terms needs in the Gampaha District

•  Conduct a technical survey to assess the damage/loss to the shelter and housing assistance/insurance claims
•  Conduct post disaster needs assessment to design the recovery strategy
•  Support livelihood recovery for the households who lost cultivations, productive assets (i.e. rented cars, three-wheelers)
•  Conduct 169 health camps covering all flood affected Grama Niladhari Divisions in Gampaha
•  Continue the food assistance for 13,000 most vulnerable persons for a three-month period
•  Conduct well-cleaning, drainage clearance and debris removal in 190 affected GN divisions
•  Improve the access to financial facilities including soft-loans, private sector salary advances to recover flood damage

Medium terms needs in the  Kegalle District

•  Conduct a technical survey to assess the damage/loss to shelter/land housing assistance/insurance claims
•  Conduct post disaster needs assessment to design the recovery strategy
•  Support livelihood recovery, relocations for the households who lost cultivations, productive assets and lands
•  Conduct 204 health camps covering all flood affected Grama Niladhari Divisions in Kegalle
•  Continue the food assistance for 9,000 most vulnerable persons for a three-month period
•  Conduct well-cleaning, drainage clearance and debris removal in 204 affected GN divisions

The Ministry of Disaster Management jointly with the Disaster Management Centre and National Disaster Relief Services Centre, deployed rapid field verification teams in five districts with the support of the Sri Lanka Red Cross, World Food Programme and Sri Lanka Family Planning Association. Additionally, Child Fund, World Vision and Oxfam supported for the exercise in various districts.  -(NG)