Land, Police, Fiscal and Administrative powers

Constitutional Assembly: Analysis of the Centre-Periphery Relations Report - Part II

Indian PM Rajiv Gandhi and President JRJ inking the Indo-Lanka Peace Accord which paved the way for the provincial council system

"The purpose of the Subcommittee on Centre Periphery Relations appears to be to empower the provinces to such an extent that the central government is rendered irrelevant. What they envisage is a nominal central government with nine virtually independent provinces." (Analyses of the other subcommittee reports will appear from Monday onwards.)

By C. A. Chandraprema-November 24, 2016, 9:19 pm 

(First part appeared yesterday)

It was discussed in the Subcommittee on Centre Periphery Relations of the Constitutional Assembly that the ‘unitary character’ of the constitution was an ‘impediment’ to the effective functioning of the Provincial Councils and that the present constitutional framework, gives ‘undue advantage’ to the centre. The list of concurrent powers to be shared by the centre and the provinces, the powers of the central government over the formulation of national policy, the powers of the provincial Governors and the fiscal control of the provincial councils by the centre were all cited as factors inhibiting the devolution of power. The Subcommittee observed that the three levels of government, the Centre, the Provincial Councils, and the Local Authorities at each level is subject to the authority of the layer above it, and therefore the centre-periphery relationship is ‘akin to a hierarchical pyramid structure’ rather than an interrelationship between ‘distinct spheres of authority’.

The subcommittee recommended that centre periphery relations should be guided by the principle that each tier of government is distinct. They recommended that the concurrent list in the constitution be done away with and that any subject not specified in either the central government or provincial list should automatically be given to the provinces. It was also recommended that the power of the central government over national policy relating to all subjects be done away with and provision should be made for a consultative mechanism involving the participation of provincial representatives in the formulation of national policy.

Police powers

The sub-committee discussed the need to grant to the provinces the police powers set out in the provincial council list and in Appendix 1 of the present constitution. Under the provisions of the 13th Amendment relating to the police (which have never been implemented) the Sri Lanka police force will have a national division and nine separate provincial divisions which will all have separate police commissions to deal with recruitment, promotion, transfer and disciplinary control of the police personnel under them. The IGP will appoint a DIG for each province, with the concurrence of the respective chief minister. The number of police officers in each provincial division will be fixed by the provincial administrations with the approval of the president, having regard to the area, number of police stations and population of the province. The type and quantity of fire-arms for the provincial police divisions shall be determined by the National Police Commission after consultation with the provincial police commissions.

The central government of Sri Lanka has control over the training of both the national and provincial divisions of the police force. The provincial police force will be uniformed while the national division shall ordinarily be in plain clothes but they may wear uniforms when performing duties in respect of public order in a province. Thus, the visible law enforcement authority in all provinces will be the provincial police force. The DIG of the province is responsible to and under the control of the chief minister of the province in respect to the exercise of police powers in the province. The national police has jurisdiction over offences against the state, offences against ministers, MPs, public or judicial officers, against the armed forces, and offences relating to elections, currency and international crimes. All other police functions will be handled by the provincial police forces. The IGP can refer an investigation to the CID only after consulting the chief minister of the province and the Attorney General.

It should be borne in mind that the police powers in the 13th Amendment were modelled on the Indian constitution and the police powers of the provinces are similar to the police powers of the Indian states. However the Indian states are much larger and more populous than most nation states. Even the 200 million plus state of Uttar Pradesh has only one police force as does the 75 million plus Tamil Nadu. A scheme that suits a country the size of India will not work in a country as small as Sri Lanka which is why the police powers in the 13th Amendment were never implemented by any government. However in a departure from the provisions laid down in our constitution which places the provincial police force directly under the chief minister, the Subcommittee on Centre Periphery Relations recommends that it be brought under an independent commission as it is at the national level.

Land

The Subcommittee has stated that the provincial authority should have control over state land within the province and observes that Appendix II to the constitution limits provincial rights in this regard and gives authority to the centre to decide on many things including the final assent for the disposition of land. They also observed that there was ambiguity with regard to land as it is mentioned in the provincial councils list as well as in the central government list (along with Rivers and Waterways). The subcommittee envisaged the transfer of all land powers to the provinces and they recommended that in the using state land, the provincial council should adhere to the policy guidelines of a land commission comprised of representatives of both the centre and the provinces with regard to issues such as forest cover, agricultural sustainability, land fragmentation, landlessness, etc.

However, no decision of the land commission would be imposed on any province without the consent of the representatives of that province. Furthermore, the taking over of any state land under existing Acts of Parliament like the Mahaweli Act, UDA Act, Forest Ordinance, Tourism Act, etc. could be carried out only with the concurrence of the respective provincial council. According to the subcommittee report, the way the central government could obtain land for their purposes would be to ‘require’ a provincial executive to release any piece of state land for a purpose coming under the central government in which event it shall be the ‘duty’ of the provincial executive to release that land to the central government.

Land power

There is another significant area where the 13th Amendment has failed to provide Sri Lanka with the safeguards available to the Indian central government. According to item number 18 in the provincial councils list of the Sri Lankan constitution, the provincial councils have ‘rights in or over land, land tenure, transfer and alienation of land, land use, land settlement and land improvement, to the extent set out in Appendix II’. Appendix II of the ninth schedule of the Sri Lankan constitution states that if the Sri Lankan central government needs to utilize a piece of land in a province for a purpose coming under its purview, it has to ‘consult’ the provincial council with regard to the use of that land. Thus if the provincial land powers in the Sri Lankan constitution are implemented, whether the central government has any power over land at all will be decided by the Supreme Court depending on how they interpret the word ‘consult’.

In India this problem was settled quite early on. If the Indian central government needs to use a piece of state owned land in any of their states, they can do so without so much as a by your leave to the state government thanks to the landmark Supreme Court judgement in The State of West Bengal v Union of India (1962). In this case the Indian central government proposed to acquire certain lands bearing coal deposits in the State of West Bengal. The West Bengal government petitioned the Supreme Court claiming that the central government did not have the power to acquire state owned land without the concurrence of the government of that state.

In support of that claim the State of West Bengal quoted Section 9(1) of the Coal Bearing Areas (Acquisition and Development) Act, of 1957 which clearly stated that the Indian central government could take over coal bearing areas but in the event where the earmarked land belongs to a state, the state government concerned has to be ‘consulted’ before the proclamation announcing the takeover is issued. However the Indian Supreme Court simply dismissed Section 9(1) of the Coal Bearing Areas (Acquisition and Development) Act, of 1957 saying that ‘consultation’ does not necessarily mean consent! Thus even in India, it needed a Supreme Court judgement to determine what the powers of the central government were in relation to land.

This is one of the pitfalls of borrowing models that had been designed for other countries. If we borrow other people’s laws, we have to borrow the litigation over those laws as well. But our 13th Amendment failed to incorporate the decision handed down in The State of West Bengal v Union of India and now we have to reinvent the wheel by getting our own courts to interpret what the word ‘consult’ means in relation to the land powers of the central government vis a vis those of the provinces. This is not a satisfactory state of affairs at all.

Fiscal powers

It was observed by the subcommittee on Centre Periphery Relations that the devolution of power without real fiscal devolution is meaningless. At present, says the subcommittee, allocating money to the provincial councils is at the sole discretion of the centre and that this is one of the ‘main flaws’ in the 13th amendment. The provinces have very limited financial resources and depend on annual grants from the central government to meet their expenditure. In the budget for 2015, the allocation for all nine provincial councils was 12% of the total govt. expenditure. The subcommittee also observed that the capital expenditure allocation is granted with the expenditure heads specified by the central government. For example under the allocation to the health department, the amount to be spent on building repairs and the district in which it should be spent will be specified. The provincial council only has the discretion to decide the hospitals to which the repairs are to be effected in that district.

In a further restriction of the fiscal independence of the province, the provincial council cannot pass statutes imposing or abolishing any taxes without the consent of the Governor. In addition to this the subcommittee observed that there are limitations on obtaining loans and investment and on administering projects financed by foreign aid and investments. The sub-committee recommended that the constitution should clearly demarcate the taxation and revenue powers of the three tiers of government, and ensure that any administrative collection mechanism does not derogate from the financial power of the respective tier of government.

Provincial administration

On the administrative front, the subcommittee on Centre-Periphery Relations observed that agencies of the central government have separate offices at provincial level or by-pass the provincial level completely and have their branches at district level and that the District and Divisional Secretaries perform administrative functions within the territory of the province without control or supervision by provincial authorities. The District Secretary coordinates the development activities in the district, including central government activities, provincial functions and to some extent nongovernmental projects. The subcommittee recommended that that the district and divisional administration be made a part of the provincial administration with district and divisional secretaries being re-designated as Additional Chief Secretaries and Deputy Chief Secretaries in the provincial administration respectively.

Declaring most of the public service as an ‘All Island Services’, is another impediment to the devolution of power as stated by the subcommittee. The all island services should be limited to a few services such as the Sri Lanka Administrative Service, Sri Lanka Engineering Service, Government Medical Officers Service, Sri Lanka Police Officers Service, Sri Lanka Scientific Officers and Sri Lanka Accountants Service. The subcommittee also recommended that the provincial public service should be brought under independent provincial public services commissions similar to the National Public Service Commission to which members will be jointly nominated by the chief minister and the leader of the opposition of the Provincial Council.

The subcommittee held that as in the case of the central government, the board of ministers of the province should have the power to determine all matters relating to officers of the provincial public service, including the formulation of schemes of recruitment and codes of conduct and the principles to be followed in making promotions and transfers etc. (This power is vested in the provincial governor at present.) The subcommittee noted that another constraint to the effective functioning of the provincial public service is the need to obtain the approval of the Treasury for the creation of cadre. They recommended that the provincial public services commission of each province should have the power to decide the cadre need of the respective provinces, including the cadre need of the local authorities, based on common criteria applicable to all the provinces. (How practical this recommendation is in view of the limited resources available to the Sri Lankan state was not discussed by the subcommittee.)

It can be seen by the proposals made by the Subcommittee on Centre Periphery Relations that what they envisage are nine virtually independent provinces in Sri Lanka which enjoy powers far in excess of those available to the Indian states. The governor will be a nominal head of province doing the chief minister’s bidding. The day to day police functions, state land, the public administration mechanism, and a good part of the fiscal powers, will all be in the hands of the provincial councils. The powers that the central government will have were not elaborated on by the subcommittee but by examining what they had omitted to mention, it can be surmised that subjects like foreign affairs and defence will remain with the centre. However, the centre will be so weakened by the centrifugal tendencies unleashed if these proposals are implemented, that they will not have the capacity to resist any attempt by a province to break away.

One thing that can be noticed in the Subcommittee on Centre-Periphery Relations report is that they have not discussed or made any recommendations about that staple in devolution discussions over the past three decades – provisions for two or more provinces to amalgamate and form a single provincial council or the merger of the northern and eastern provinces. That will no longer be necessary because the centre will be so weakened that there will be no force to resist anything that two or more provinces decide to do. As we pointed out in yesterday’s article, our system of devolution though modelled on that of India, started off without some of the most important safeguards available to the Indian central government.

The purpose of the Subcommittee on Centre Periphery Relations appears to be to empower the provinces to such an extent that the central government is rendered irrelevant. What they envisage is a nominal central government with nine virtually independent provinces. The reason why the Subcommittee has taken care not to mention India even once in their report, is because any reference to India will be a disadvantage to the project they have in mind. The Indian constitution has been designed in such a way that the Indian union can maintain its hold on the states. In recent decades, one or two states like Tamil Nadu became more assertive and have been suggesting constitutional changes that would give the states more autonomy. But even Tamil Nadu assertiveness has its ups and downs as can be seen from the fact that they have been down rather than up after Modi formed a government on his own.

Tamil Nadu may talk aggressively about Sri Lanka but they will never dare talk to their own central government in that manner, especially if the central government has been formed without their help. Tamil Nadu leaders never, ever use some of the phraseology routinely used by the TNA such as ‘self determination’. The way the Indian constitution makes provision for the union to keep the states on a leash is a fascinating study in itself and we will deal with that after this series of articles on the Constitutional Assembly subcommittee reports. In any event, the report of the Subcommittee on Centre-Periphery Relations can hardly be considered a serious effort at constitution making. It’s more like a wish-list submitted by professional separatists.

(Concluded)

2017 Budget Is Good But Not Good Enough!

By Hema Senanayake –November 24, 2016

Hema Senanayake

Ravi Karunanayake has allocated funds amounting to billions from the 2017 budget to provide “tablets” to all students who are in Advanced Level classes and for the teachers. I hope that cash vouchers would be issued to students to buy tablets of their choice. Instead of doing it, if the Ministry of Finance or the Ministry Education decides to provide tablets to students and teachers then I feel that there is an element of corruption inbuilt in the budget itself with this proposal because this is a government which provides cash vouchers instead of fertilizers to farmers. Also this is a government which issues cash vouchers to students to buy uniform clothes and so should be in providing tablets too.

However, in general the budget is good but not good enough. From this budget, the Minister of Finance has corrected a few mistakes done in his previous budget. That is good. For an example, in the budget for 2016, corporate tax was reduced to 15% and personal income tax was reduced to be one flat rate of 15%. Progressive tax structure was removed in the previous budget. Even when a forum organized by Earnest & Young hailed these proposals, I argued against it. I wrote as follows:

“However, there was a post Budget Forum in Colombo, organized by the Ernst & Young. In the forum it was mentioned that Sri Lanka’s 15% corporate tax rate is the third best or equaling with Germany and only behind Ireland’s 12.5%. In personal taxation of 15% flat rate, Sri Lanka remained lowest among selected countries compiled by E&Y. It was further pointed out that, “In a personal tax view point Sri Lanka is the most attractive for people to work in terms of tax. In the region we are paying the lowest tax rate.” Amazing! Isn’t it? Where is economics? What about the filling of “gap.” What about making businesses more viable? What about preventing unsustainable credit growth – private and public? Our closest neighbor, India’s corporate tax rate is 30% and targeting double digit GDP growth while Sri Lanka’s GDP for the year 2016 has been downgraded to 5.7% by the CBSL.” (Colombo Telegraph, November 27, 2015)

The above mistake has been rectified in the 2017 budget. Even though I am not happy with the tax structure and the way it has been reintroduced, I am happy that Ravi Karunanayake has reintroduced the progressive tax structure from the budget of 2017. The government has been telling that they need to increase direct taxes while reducing indirect taxes. Economically this is a good objective. But the government can’t basically achieve this objective without having progressive tax structure in corporate taxes and in personal taxation. Accordingly the mistake done in 2016 budget has been corrected in the 2017 budget.

But the most important correction has been done in regard to the macroeconomic stabilization of the economy. The macroeconomic stability is very important in order to ensure the economic growth and poverty alleviation. Bad fiscal policies could easily destabilize the macro economy of any country. Basically and more frequently for countries like ours, this destabilization of macro situation do happen as a result of the destabilization of the exchange rate. This means we must focus on a foreign exchange rate based macro-economic stability. From the budget of 2017, the Ministry of Finance has done its part towards achieving the said goal. If the budget is implemented and the monetary authorities namely the Central Bank does it part duly the country will see that there will be no balance of payment runs in the year 2017 and as a result there will be no sudden devaluations of rupee. This could be a bad news for the Joint Opposition.

However, I do not necessarily agree that the reduction of the budget deficit to 4.6% of GDP is an essential part or element in making the macroeconomic stability. In fact this budget deficit is less than 0.1% from what the IMF had recommended. It intimates that the government thinks that by lowering deficit spending (or budget deficit) is good for economic growth. This notion is wrong. I would advise that the government must increase the deficit spending financed from domestic borrowing to the maximum point where it could achieve the exchange rate stability. This is important, especially in a period of reconciliation after a long war. If the government thinks it would destabilize the exchange rate if deficit spending exceeds more than 4.6%, this level of budget deficit is okay. Yet, I prefer to accept the IMF figure of 4.7% in this regard and it could even be more.

Read More

Hefty fines and laws alone cannot ensure a just society 

Friday, 25 November 2016

One political leader whose stock has gone up by leaps and bounds in the last few months has been Anura Kumara Dissanayake’s, the JVP Leader, a local university graduate and a former Cabinet Minister of Agriculture, Livestock, Land and Irrigation.

Dissanayake is an ardent campaigner against the executive presidential system of Sri Lanka and has acquired a reputation for his stand on social justice. He recently demanded to know why the State officials tasked with providing luxury vehicles to 58 MPs supporting the Government should not be accused of fraud.

Making a special statement in Parliament JVP Leader Dissanayake said: “The entire project of providing luxury cars to 58 MPs backing the Government costs over Rs. 2,430 million to the public purse.”

He went on to say: “Procurement notices were published before the Cabinet approved the project. The Procurement Committee and the Technical Evaluation Committee have rejected the bidders who indicated their willingness to supply cars. Yet the process is in progress and these vehicles have been leased at a monthly rental of Rs. 700,000 each. The cost per one km would be around Rs. 250. Each vehicle leased out for 60 months would cost around Rs. 42 million more than its market value. For the fleet of 58 vehicles the Government will have to pay Rs. 2,436 million. Though the Government pays that amount, it would not own the vehicles.”

The JVP Leader further said that each of those MPs was currently paid Rs. 200,000 monthly transport allowance. He demanded to know why they were given cars at the expense of the taxpayers. “Those MPs had already obtained their duty free vehicle permits,” he pointed out.

Dissanayake demanded to know the date on which the decision to give 58 MPs new cars was taken, the details of the procurement process and whether the Government could justify provision of luxury cars to MPs who had been paid a Rs. 200,000 transport allowance and also given a duty free vehicle permit.


Justification

The Finance Minister, a professionally-qualified accountant by training who knows the difference between an operating and a financial lease, explained that the Government would get Rs. 25 million as import duty for each of the 58 vehicles to be given to 58 MPs. Further he said that the Government would also get tax, in addition to the saving of some amount of funds through this exercise.

The Minister said that a private company under operational lease would import the vehicles and that therefore it would be possible to save a considerable amount of money. The repair expenditure will have to be borne by the same company. Therefore the Government does not have to spend much for the vehicles, Minister Karunanayake said.

“There have been instances where bills are being produced by the users of State vehicles to get funds reimbursed continuously for repairs, etc. But an operational lease will prevent such instances in future.”

The Finance Minister also said that it was decided by the Cabinet on a Cabinet paper presented by Parliamentary Reforms and Mass Media Minister to pay a transport allowance of Rs. 200,000 to the MPs monthly in the interim, as the tender process of ordering new vehicles took time.


The real issue

However, the answer the public would like to have is why the Government is giving luxury cars to MPs when they have already been given a duty-free permit to buy a top-end SUV and also a fuel allowance at a time when the public has been burdened with heavy taxes and fines.

Then on the question of road fines, initially, it was only proposed as a Budget proposal, the Government wanted to increase the minimum fine for road traffic offenses to Rs. 2,500. It was challenged even before the Budget debate entered its final stage due to objections from those such as private bus operators who even warned of strike action.

Afterwards, the Government decided to do away with the proposed increase on the minimum fine. Instead, it proposed to introduce a fine as large as Rs. 25,000 for seven major offences that included drunken driving, speeding, driving without a license, overtaking from the left, etc.

Heavy penalisation for offenses like drunken driving with a proper process and driving without a license or insurance is not opposed. But the question remains why a driver earning Rs. 25,000 or Rs. 30,000 a month overtaking from the left during rush hours is subjected to such a big fine.

Against this backdrop, the Government will come under pressure to reconsider the proposal. The Rs. 25,000 for speeding would also need to be implemented with caution, given that the driver will be at the mercy of law enforcement.

The Government should from now on make a huge effort to rope in all the professionals in private practice and businessman who deal mostly in cash into the tax net without continuing to squeeze out the existing taxpayers.



Public expectation 

The Government should avoid falling into the Hillary Clinton trap, which epitomised the dorky arrogance and smugness of the professional elite. Instead like Trump who was able to stir up the spirit of the working class by understanding their resentment, they too need to treat the working-class with respect and assist them do things that are within their reach. We can no longer advise young men with university education to take pink-collar jobs.

In a world dominated by social media, the political discourse on values based conduct in politics has reached a crisis level in all democracies fake, real and quasi. Today, laws, high taxes and fines alone cannot ensure a just society. Promises and estate-appointed commissions alone cannot deliver us from the cycle of greed that makes it routine for politicians in power to abuse public resources.

In the final analysis, people gave a mandate to this Government to weed out corruption and to penalise those involved in such wrongs. Therefore what the public needs is good governance in word and deed, because that is a sine-qua non for achieving economic development and inclusive growth in the country.
(The writer is a thought leader.)

Alleged Bond Scams: Some Question for the Government

by Laksiri Fernando- 

Nov 24, 2016

It may be true that through the auction method a government could utilize quick liquidity in an emergency. Even if that were the case, in February 2015 there was no need to continue with the same method solely throughout the year, disregarding long term repercussions and implications.

( November 24, 2016, Sydney, Sri Lanka Guardian) The lead article of The Island newspaper (22 November) on “Bond Scams: PM says Govt. Awaiting AG’s Instructions” written by Saman Indrajith has raised several public interest and public policy issues. As he has reported, the Prime Minister has stated in Parliament that “The Attorney General instructed the government to obtain expert knowledge on public auction and private placement methods.”

‘Private placement’ is not the correct term that should be used, but ‘direct placement’ as previously pointed out by Dr W. A. Wijewardena. It may be the jargon at the Central Bank, but it gives a prejudicial view on the latter method in contrast to ‘public’ auctions. It is only few countries that still use the old term ‘private placement.’

More pertinently, the PM has stated (following AG’s instructions) “I wrote to the IMF and the World Bank. There is no point in asking others for instructions.” I wish to dispute the second claim. It may be OK to ask the IMF and the WB, but they clearly favour the auctions in contrast to direct placements (See ‘Guidelines for Debt Management’ by IMF and WB, 2003). It is possible that the previous Governor, or the PM himself, opted for auctions following the IMF and WB guidelines. Therefore, there is no point in asking them.

Even after the IMF/WB guidelines, still there are countries which use both or mixed methods extensively, with so many merits. Australia is one such country. The Netherlands, to the best of my knowledge, uses the direct placement method to issue around 60 percent of their treasury bonds (T-bonds) and Japan around 40 percent. Therefore, completely abolishing the direct placement method in Sri Lanka is highly questionable.

The IMF/WB guidelines to favour the auction method is to develop a strong debt market in the private sector. There can be some merits in this guideline if used cautiously and fairly. Transparency and accountability are two principles that the IMF/WB have been advocating throughout their guidelines. However, these were the very principles which were violated in the Sri Lankan case.

It may be true that through the auction method a government could utilize quick liquidity in an emergency. Even if that were the case, in February 2015 there was no need to continue with the same method solely throughout the year, disregarding long term repercussions and implications. The direct placement method open to the public sector funds (public banks, public insurance, pension funds etc.) could enhance security and financial viability in those sectors, which is beneficial for the mixed economies like in Sri Lanka. However, if Sri Lankan wants to go for complete ‘neo-liberalism’ and forget about the public sector, the Auction system may be OK. However, in the case of the February 2015 bond issue, there was no need to increase the issue amount from 1 billion to 10 billion without much knowledge of all primary dealers. Here the principle of transparency and fair dealing in the auction was violated.

It is also customary, when auction awards are allocated, not to give a single bidder more than 25 percent. But in the case of the controversial February 2015 bond issue, the Perpetual Treasuries was allocated almost 50 percent. This is highly questionable and dubious. In the USA, where the auction method is extensively used, there are strict rules and many have been convicted for fraud and insider trading. Even an extreme policy of market economics should not allow fraudulent transactions or extreme profit making through insider trading quite detrimental to the public interest of the people.

The PM has also stated “You could file a case. But that would yield no results.” It is not clear why he has reached this conclusion so prematurely.

On the February 2015 bond issue, there was a clear ‘conflict of interest’ as it was apparently admitted by the former Governor of the Central Bank. This may be the case even after his son-in-law resigned from the Perpetual Treasuries, as the COPE report states that the former Governor himself had an interest in the Perpetual Treasuries.

It may be true that the laws in Sri Lanka are vague in curtailing conflicts of interest let alone punishing them. However, from my limited experience as a former Director of the Colombo Stock Exchange (CSE), the laws are clear on punishing ‘insider trading’, although those were not implemented for political and other reasons in the past. As far as I could understand, there have been several issues of ‘insider trading’ between Perpetual Treasuries and the Central Bank that the PM, the Government and the Attorney General should take up. There may be some other laws applicable to punish the wrongdoers.

The PM’s position seems to be to consider the prevailing laws as inadequate. As reported by Saman Indrajit, the PM has said “My duty is to hand over the issue to this House. The COPE is a committee of this House. You cannot file a case without amending laws, if the Attorney General permits it.”

The questions that need to be answered are:

• Does or doesn’t the PM think there has been something wrong in the issue of 50 percent of bonds to a single bidder?

• Does or doesn’t the PM think that the bidding for such an amount was possible, if not for inside information?

• Does or doesn’t the PM think that there was an issue of family and business interest between the former Governor and the Perpetual Treasuries?

• Does or doesn’t the PM consider clearing the name of the Central Bank, the Government and his as the PM is necessary to promote transparency, accountability and good governance in this country?

Please see further my initial article “Awoth Atha Thamai: Cabral is no Excuse for Mahendran” (23 May 2015).

Media can pinpoint wrongs of judges : LeN had not insulted judges –Media Dep.Minister

-Wijedasa’s rabble rousing statements don’t represent govt. view –cabinet spokesman

(Lanka-e-News -24.Nov.2016, 2.30PM) The exposure of the faults  of the judges of courts by the media is not   wrongful , said  Karu Paranavithane , the deputy minister of media .

Ravaya Editor Victor Ivan too spearheaded a struggle on behalf of the independence of the judiciary , and what he  revealed have not been proved wrong , the deputy minister pointed out. 

The statement made by Justice minister Wijedasa Rajapakse that the Lanka e news website editor shall be got down via an Interpol warrant , was  unrelentingly questioned by the media at the cabinet meeting. 

Question
Minister Wijedasa said , LeN editor will be got down via an Interpol warrant . As minister of media , what have you to say in this regard ?

(Minister Gayantha Karunatileke did not give an answer.)

Question:
Are you not aware of the announcement made by Justice minister ?

Gayantha Karunatileke : I am aware. 

Question:
How can the Justice minister make such a statement before an investigation is conducted?
Answer : Karu Paranavitharne :
I shall explain. We do not know whether Lanka e news editor is a Sri Lankan citizen , or a citizen of another country or he is a refugee in another country. We have no need to punish him by law as a journalist of his media  website .

If such a step is to be taken  that should be done via our ministry  . We shall not do that. During the tenure of office of the last government his media website was set on fire.

Magistrates are being insulted, the justice minister said, but I have not come across such situations. The Justice minister told me too the magistrates are complaining to him they are being vilified. 

Question:
How can steps be taken without a probe?
Answer :
Without an investigation , no measures can be taken. Justice minister only spoke  about the insults , and the criticisms leveled personally against the magistrates.

Question:
When a magistrate was arrested over the robbery of an elephant, that news website in question reported that the  Gampaha magistrate (female) in her   face book page criticized the Attorney General (AG) . We also read that. Are publishing  such reports wrongful ?
Answer :
Reporting and exposing a wrong is not an issue. What   minister of Justice said was , judges are complaining  that personal insults  are being cast on them .

Question:
During the period of the last government this said  website , and other media Institutions were set on fire . Journalists were murdered . Yet investigations are under way only in regard to the deaths of two journalists , why ?

Gayantha K.
Reports of some investigations have been lost . Everything is being investigated. 

Question:
The president and the prime minister too are openly blaming the media . A prominent media was described as a ‘toilet paper’. What do you say to that ?
Answer :
We do not stifle the media. Anybody has the right to criticize the media too.

Meanwhile, minister Dr. Rajitha Senarathne disclosed  at the cabinet meeting , the statement made by Justice minister Wijedasa Rajapakse about  the ISIS and the media  do not represent the views of the government . The president also  revealed to him that the announcement made by Wijedasa pertaining to the ISIS is untrue , Rajitha revealed. Owing to this statement , a fear psychosis has been created among the Muslims , Rajtha lamented. 

Report of Tharindu Jayawardena for Lankadeepa 

---------------------------
by     (2016-11-24 08:58:37)

Army intelligence officers killed Lasantha: CID

2016-11-24

Sunday Leader Editor Lasantha Wickramatunge was shot dead by Army intelligence officers, CID Inspector Nishantha Silva told Mount Lavinia Magistrate Mohammad Sahabdeen today. 

He said this while presenting the investigative reports on an Army intelligence officer who was arrested on charges of abducting and detaining the driver who drove Mr. Wickramatunge’s vehicle at the time of his killing. 

Earlier, at an identification parade held at the Mount Lavinia Court premises, the driver had identified the Army intelligence officer as the person who abducted and detained him after Mr. Wickramatunge's killing.

 Mr. Wickramatunge was shot on the head in broad daylight by two gunmen who had arrived on a motorcycle. 

They had forced his vehicle to stop before shooting him dead at Attidiya on January 8, 2009. (Dayaratne Pathirana) 

Victims and Rights Activists oppose the government’s failure of deliver justice

 Nov 24, 2016

Academics, Victims and Civil Rights Activists rushed to the tiny auditorium at Centre for Society and Religion in Colombo on Nov. 23 opposed the Ranil-Matri government’s failure of deliver justice for victims.

“Civil society concern about the deliver justice for victims,” said Dr Nirmal Ranjith

He added, “Some of Citizens’ movements need to work against the civil society. They need to control the peoples’ oppose.”

Addressing the seminar at CSR Sandya Ekneligoda said that she is still struggling to receive justice for disappeared Journalist Prageeth Ekneligoda.

“It is a duty bound of President to deliver justice for victims,” she said.

Talking to the Lanka News Web Chameera Perera, co-convener of Left Circle pointed out the government failure of deliver justice.

“People of this country who wanted to good governance are still waiting for political aspirations what we raised during the presidential campaign as well as August general election. So what we expected from the government and common candidate is none of other than justice and equality. And now we are really concern about this issue as political allies of this government still as far as smooth hand forwards certain Mahinda Rajapakse regime specially people like Gotabhaya Rajapakse and also they are still specially president who is still have think have smooth hand about military specially military leaders, ex-army officers. So in that sense we think truth, justice and equality is waiting. as a citizen movement and citizens of this country wanted this government who is stand by the common candidate and Ranil Wickramasinghe is waiting their main political aspirations. And we need a kind of independent citizen movement in which we can achieve or we can raise the voice in favor of justice, equality and truth.”

He added, “Wijedasa Rajapakse as far as concern left centre and other civil organizations Wijedasa Rajapakse is a kind of obstacle to achieve justice and equality. As far as we concern his behavior and behavior is quite in favor of Gotabhaya Rajapakse and Rajapakse regime. He insisted few times specially in the parliament he insisted that he will never allow arrest Gotabhaya Rajapakse. That sense we are thinking it is a great issue. That is an issue against January 8 consensus.”

“If there are mothers who cry for justice and walking on the road by road in a country, it is not practice good governance values,” said Dr. Kumudu Kusum Kumara

- Lawrence Ferdinando -Colombo-

Self degrading Wijedasa’s rabble rousing speech : LeN replies and asks him to substantiate his allegations

(Lanka-e-News -23.Nov.2016, 11.55PM) Wijedasa Rajapakse the double dealing opportunistic politico   who while being the minister of justice under the good governance government  became  notorious on account of his  wheeler dealer activities in collaboration even now with the corrupt brutal discarded Rajapakse regime hurled insults and criticisms against Lanka e news and its editor while taking refuge under the parliamentary privilege . 

Self degrading Wijedasa.docx by Thavam Ratna on Scribd

Dealing with Caste Prejudice and Inequalities in Sri Lanka

Featured image courtesy Dushiyanthini Kanagasabapathipillai

From conference on “Caste, Social Justice and Democracy in Sri Lanka”, held on the 19^th and 20^th November 2016)

DEVANESAN NESIAH on 11/24/2016

There is a wealth of anecdotal evidence of the wide prevalence of caste prejudice and occasional oppression spread across our island, particularly concentrated in some localities, notably in Jaffna, but focused research on the subject is hard to come by. By and large the subject seems to be taboo in public discussions. Although there are public demonstrations on many other subjects, there seem to be none on caste. Many would hold that it is no longer a problem except possibly in respect of one or two aspects of untouchability such as temple entry and land ownership, and that too only in Jaffna. The reality is different. A glance through published matrimonial advertisements would reveal that caste endogamy is required or at least preferred, not only among Hindus but also among Buddhists and even Christians.

Dealing with Caste Prejudice and Inequalities in Sri Lanka.docx by Thavam Ratna on Scribd

Why Sri Lanka is poor

 

Friday, 25 November 2016

A poor child eating his food on the side of a street in Colombo – Pic by Shehan Gunasekara

Dinesh Weerakkody has written an interesting article in the Daily FT titled ‘What makes some countries rich and others prone to poverty’ on 18 November.

This topic was much debated and there was no conclusion. In 1970s Swedish economist and sociologist Gunnar Myrdal (1898-1987) raised the question through his work, Asian Drama – An inquiry into the poverty of nations where he discussed the situation of Sri Lanka then Ceylon as well. 

Cultural dimensions

Dutch social psychologist Geert Hofstede wrote Culture’s Consequences in 1983 where he developed cultural dimensions theory. He identified four dimensions of national cultures, namely, Power Distance, Individualism, Uncertainty avoidance and Masculinity. Later two more dimensions were added.

Out of these four, Power Distance and Uncertainty avoidance have relevance to innovation and entrepreneurship. Power Distance expresses the degree to which the less powerful members of a society accept and expect that power is distributed unequally. Uncertainty Avoidance expresses the degree to which the members of a society feel uncomfortable with uncertainty and ambiguity. (https://geert-hofstede.com)

High Power Distance works against innovation and creative thinking of a society. High Uncertainty avoidance limits the risk taking ability of a society which constrains entrepreneurship. Following chart shows those indices of few Asian countries and of USA.

It is difficult to find any direct relationship of these indices and economic statuses of those countries. However in Sri Lanka innovation is affected by high Power Distance which demands conformity by the parents and teachers from the children and students and by the company heads from their employees. The degree of risk taking is affected by moderate Uncertainty avoidance. 

Determinants of national competitive advantage 

Weerakkody quoted Michel E. Porter, a Harvard Professor who has written several books on strategy. Porter identified five forces, driving industry competition. He identified determinants of national competitive advantage as well. Those are firm strategy, structure and rivalry, related and supporting industries, factor conditions and demand conditions. There are two additional variables, chance and government. Porter identified wars under chance. 

War

Sri Lanka had to face a 30-year ethnic war and also two more rebellions in the south after independence. Although Sri Lanka boasts that not a single drop of blood was shed in the name of independence, the country shed enough blood after independence just because it was not able to put the record straight at the time of independence.

Lee Kuan Yew once said the problem of Sri Lanka was the inability to manage ethnic conflict. We still are not able to do so. Managing the ethnic conflict is a prerequisite for sustainable development. That is one major reason why Sri Lanka is in its current status.

Entrepreneurship

Sometime back in Sri Lankan villages, entrepreneur, ‘Mudalali,’ was not placed in high esteem. Instead a school teacher was placed in a high esteem. Knowledge was placed in a higher position than entrepreneurship. The situation changed after the introduction of open economy in 1977.

There was a cultural change introduced to Sri Lanka with the introduction of open economy. Value given to money increased in relation to the value given to knowledge. Some interpreted and criticised this as a system of getting money even by killing dogs – Ballo marala hari salli hoyala.

This social recognition was much needed for money and eventually entrepreneurship in order to develop the country. President Jayewardene did this intentionally I suppose. If Sri Lanka wants to improve the current status, entrepreneurship should be respected and valued throughout the country. 

Contentment

In Sri Lankan Buddhist villages, contentment with what one has is practiced. In personal capacity I also practice this. It would give dividends at personal level but not at national level. It would make people less ambitious and in turn less industrious. This would affect Gross Domestic Production (GDP) of a country.

Contentment with what one has is an age-old tradition of Sri Lanka. It probably came with the introduction of Buddhism. In Asoka’s third minor rock edict – Bhabra Inscription – he has identified several Dhamma texts in Tripitaka and stated as follows:

“These Dhamma texts, reverend sirs, I desire that all the monks and nuns may constantly listen to and remember. Likewise the layman and laywoman. I have had this written that you may know my intentions.”

One of the Dhamma Texts was – the noble way of life – Aliya Vasani. Scholars say that this would most probably be Ariyawamsa Sutta (Anguttara Nikaya 28) (https://www.cs.colostate.edu/~malaiya/ashoka.html).

Ariyawamsa Sutta talks about contentment with the basic requirements of a Bhikku, clothes, food and shelter. Buddha himself gave much importance to this sutta since he described and valued the contents of this sutta with seven words whereas Satipattana sutta was described and valued in five words only.

Rasavahini which was written in Polonnaruwa era described many stories that there were all-night sermons of Ariyawamsa Sutta. This would have happened in several centuries so that the value would have been clearly established in the minds of Sinhala Buddhists.

If we have a content nation it would improve the Gross National Happiness Index. This should be the ultimate objective. However this may work against improving GDP of the country.

Quality

Sri Lankan businessman in general place less importance on quality. They are more interested in short-term gains rather than long-term building of a brand.

Robert Knox who lived in Kandy in the 17th century had this to say about Sri Lankans: “They do much extol and commend Chastity, Temperance, and Truth in words and actions; and confess that it is out of weakness and infirmity, that they cannot practice the same, acknowledging that the contrary Vices are to be abhorred, being abomination both in the sight of God and Man.”

In export businesses, it is of paramount importance that the quality of the goods supplied is of the quality promised. The cinnamon industry where the production is with the small-scale planters suffered a lot due to poor quality of exports.

Risk-averse thinking

In Sri Lankan society, entrepreneurship is not popular. They like to take lesser risks. In the market there is more demand for accountants rather than engineers or marketers. Accountant is not a forerunner in the field of business but rather he ensures conformity which is very vital in sustainability. If an accountant wants to be an entrepreneur at that point he should shed that mentality of conformity.

Products of free education have inward thinking. They do not have creative and revolutionary thinking as expected by Ven. Velivitiye Soratha, the first Vice Chancellor of Vidyodaya University. Some of them want to sacrifice their well-paid private sector jobs in favour of Government jobs in order to secure a pension at the end of the carrier and to work leisurely. Work leisurely is a by-product of contentment and it would not serve in achieving Nibbana even. Buddha said in satipattana sutta that one has to work ardently – atapi – for it.

Prevalent Sinhala Buddhist thinking of the country promotes neither worldly achievements nor spiritual achievements. It is protectionist, narrow and arrogant. It inculcates fear and hence is anti-innovative. It has the historical power and potential of creating an inclusive Sri Lanka but it promotes separation. Inherently it should be strong but in practice it is weak. 

Future of Sri Lanka

We have a fiscal deficit in Government accounts and a deficit of balance of payments in national accounts. It was eternal and as a result the country is debt-ridden. Around 50% of top 25 companies are banks and financial companies. Manufacturers and exporters are not duly represented there. Everything is lopsided.

The future of Sri Lanka lies with the small and medium scale entrepreneurs. In order to support them, an entrepreneur-friendly culture should be created. We need them in thousands or rather in hundreds of thousands. They should engage in manufacturing and exports of products or services as well and connected to international supply chains rather than engaged in mere buying and selling businesses.

Income distribution of this country is not that good. The country faced three armed struggles after independence. Therefore the benefits of development should go to the masses. The country can kill two birds with one stone with the promotion of small and medium scale entrepreneurs.

(The writer is a Chartered Accountant by profession and holds a Master of Business Administration degree awarded by the Postgraduate Institute of Management of University of Sri Jayewardenepura. He can be reached via harsha.gunasena@gmail.com.)

Son in subcommittee, daughter-in-law in SAITM

November 24, 2016

It was revealed in Parliament yesterday (23rd) that Minister of Health Rajitha Senaratna’s son Parliamentarian Chathura Senaratna had been a member of the committee appointed to make recommendations regarding the SAITM illegal degree awarding institution.

The JVP Parliamentarian Bimal Rathnayake revealed this information in Parliament and he added that Sarupa Samangi Manathunga (Passport No. N1537272), wife of Chathura Senaratna, has been admitted under registered number MF 121/F006MD77 to the 6th batch of the illegal degree awarding institution.
Speaking further Parliamentarian Bimal Rathnayake said, “We would like to know what connection student Samangi Manathunga has to the Parliamentarian. According to our knowledge she is his wife. He presents a report from a committee appointed to make recommendations about SAITM in which his wife studies. Who do you think we are? What do you think about the students movement in this country?”

Sri Lanka’s Body-Politic Is Infested With A Contagion Of Corruption

By Vishwamithra1984 –November 24, 2016

“Virtues, like viruses, have their seasons of contagion. When catastrophe strikes, generosity spikes like a fever. Courage spreads in the face of tyranny.” ~ Nancy Gibbs

Another Rajapaksa was arrested. Once again, the charge is corruption. This time it’s an Ambassador, not just one to a third world country. He was our Ambassador to the United States of America. One time, a merchant of tea whose business involved, among others, export of Ceylon Tea to America, first gained limelight by virtue of his close relationship to then President Rajapaksa, when he was appointed as the Sri Lankan Consul General in Los Angeles- a training platform for the Ambassadorship in Washington D C. At the time, the seat of Foreign Affairs was in the hands, or more accurately stated as the ‘behind’, of G L Peiris and Sajin Vass Gunawardena, another close associate of the regime. What a country we had under the Rajapaksas?

Jaliya Wickramasuriya

Yet the latest Rajapaksa relative who was arrested seemed to have had an impeccable record of integrity and political-purity. Said to be well accepted by the Los Angeles Sri Lankan community, revered by the Buddhist Temples located in this glamorous city, Wickramasuriya, who is now facing allegations of corruption, when promoted to the esteemed position of our Ambassador to Washington D C is alleged to have accepted a USD 245,000 commission while serving his term in the US. We must be cautious. These are only allegations, yet to be proven. But after intense investigations conducted by the Financial Crimes Investigations Division (FCID), for Wickramasuriya to have been arrested is a logical process of events that have occurred after the investigations. Rule of law may have taken its slow journey but surely it’s taking its victims with pain to the victims and relief to the country at large.

This is a clear and strong argument that the contagion of corruption has infested our body-politic. It seems to spare nobody, whether the alleged culprits are walking into the evening of their careers or leaving behind an evening of their careers. Whichever way one looks at it, it’s sad beyond words, these alleged culprits had been close friends and associates of a greater community that surrounded them; they are members of dignified families of the past and when the contagion took hold of the body, it ate into the flesh, bone and marrow, unmercifully destroying careers, families and may be even generation’s good name. Whoever is at the top must be accountable and one day, they have to face the music. They cannot run, nor can they hide from that stark and naked truth.

It is alleged, although not yet proven beyond a reasonable doubt, that unbelievable practices of corruption have been committed during the last regime and the FCID has not yet spared anyone close to the former First Family. But the burning question at the lips of many is what follows the investigations. The Government cannot just play soft after the vigorous these investigations. If they reveal any misdeeds on the part of any top leaders of the former government, whether they be some incalculable corrupt deals and unscrupulous favoritisms they must answer the call for justice. It seems that what started at the top has seeped down and the entire system; it seems to have been infested with the contagion. Each branch, the stalk, the roots and every leaf of the tree seems to be corrupt. That much is beyond dispute. What amazes the ordinary reasonable men and women is not the alleged addiction to corruption on the part of the former regime; it’s the acceptance by the rest of Sri Lankan society as the normal standard of government business is mind-boggling and infuriating.

Read More