Peace for the World

Peace for the World
First democratic leader of Justice the Godfather of the Sri Lankan Tamil Struggle: Honourable Samuel James Veluppillai Chelvanayakam

Friday, January 13, 2017

Sri Lanka’s Troubling Quest for Justice

Sri Lanka’s Troubling Quest for Justice
The DiplomatBy January 13, 2017
Though largely unreported internationally, Sri Lanka experienced a major political shake-up two years ago. In January 2015, Mahinda Rajapaksa, the country’s hardline president, was defeated in his quest for an unprecedented third term. There were hopes the country was on the road to democratic and political reform. However, that journey has been, at best, a circuitous one and there are well-founded reasons to be concerned about what may happen in the coming months.
Transitional justice is the most significant part of Colombo’s expansive reform agenda, although it remains quite unclear if the government is truly serious about dealing with the past. More specifically, the coalition government – which is led by President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe – is still prevaricating on the controversial issue of accountability – punishing perpetrators for alleged wartime abuses.
From 1983 to 2009, Sri Lanka’s civil war pitted Sri Lankan government forces against the Tamil Tigers, a group that fought for a separate Tamil state in the country’s north and east. The almost exclusively Sinhalese military defeated the Tigers, and virtually all the Tigers’ senior leadership were killed during the fighting.
Enjoying this article? Click here to subscribe for full access. Just $5 a month.
Reliable estimates suggest up to 40,000 people died during the war’s final months, although casualties could be considerably higher. The clear majority of those killed were Tamil civilians.
Importantly, in October 2015 Colombo co-sponsored a resolution on Sri Lanka at the UN Human Rights Council. The resolution dealt broadly with accountability, justice, and reconciliation. Notably, the Council resolution specifically called for international participation in Sri Lanka’s accountability mechanism – including foreign judges, lawyers, prosecutors, and investigators.
Nonetheless, Sri Lankan government officials have been backtracking ever since. During an interview in June, Sirisena reiterated that foreign judges were not needed: “If necessary we can obtain foreign technical support. That again will be without any commitment or conditions attached.” The following month, Sirisena seemed to emphasize that international participation of any kind (in a judicial mechanism) would not happen on his watch. On other occasions, Sirisena has publicly vowed to protect the military. “I will not let any war hero to become helpless,” he said in June. It does not appear that the president is reconsidering these positions. Other senior government officials, including the prime minister, have made unhelpful statements too.
Accountability is a huge deal for several reasons. For starters, Colombo is extremely unlikely to make progress on this issue absent significant, sustained international pressure. Second, it’s the most controversial component of the government’s sweeping transitional justice agenda. Third, it’s essential to ensure that the country doesn’t return to war further down the road. Lastly, Sri Lanka’s victims, especially the long-oppressed Tamil community, deserve some semblance of justice.
Colombo now appears to have delayed the establishment of its accountability mechanism indefinitely; that’s not encouraging. To make matters worse, Sirisena has supposedly contacted U.S. President-elect Donald Trump – in an attempt to preclude further international scrutiny over wartime accountability. Even if that hasn’t actually occurred, Sirisena has sent yet another public message that he’s not serious about accountability.
Notwithstanding these setbacks, now would be an opportune time for the government to acknowledge that it would be willing to accept substantial international assistance in all aspects of its transitional justice process.
International involvement of any kind remains politically sensitive. However, Tamils would not have confidence in a process that does not include significant international participation. After decades of discrimination and numerous domestic accountability mechanisms that simply haven’t worked, the Tamil community maintains a deep (and understandable) distrust of the Sinhalese-dominated state.
Sinhalese make up the island nation’s overwhelming ethnic majority; Tamils and Muslims constitute the two largest minority groups. While Sri Lanka’s military has received substantial international condemnation regarding alleged wartimes abuses, the conversation is framed very differently within Sri Lanka.
The military has enjoyed broad public support amongst the Sinhalese community, and the defeat of the Tamil Tigers enhanced the institution’s reputation. Consequently, even if Colombo’s political elite truly wanted to get serious about wartime accountability (and it doesn’t look like they do), the government may still be reluctant to pursue this matter too aggressively due to domestic political considerations. The expectation that local government elections will be held this year reinforces this. That said, if Colombo does decide to move forward on any legitimate accountability process, explicating its importance is vital. Tellingly, Colombo is still not making a compelling case to the public.
Furthermore, this is a weak government. It is built upon an awkward alliance between a pair of political parties that have historically been archrivals, the Sri Lanka Freedom Party (SLFP) and the United National Party (UNP). In that context, Colombo may be especially hesitant to implement policies that are wildly out of sync with what most Sinhalese want.
Enthusiastic supporters of the Sirisena administration would likely emphasize that Colombo is far more invested in its efforts to draft a new constitution (which is true), and that the result of that process – in the form of greater devolution of power to the Tamil-majority northern and eastern provinces – is the best way to ensure lasting peace on the island. Unfortunately, while a political solution remains an essential element of lasting peace, this line of thinking is misguided. Besides, it’s hard to believe that the government’s constitution-building efforts will result in a power-sharing arrangement (like federalism) that’s acceptable to the country’s Tamil community.
These are very difficult issues and it’s unsurprising that there have been numerous setbacks. Nonetheless, going forward, Colombo could do much more show that it’s serious about following through with the commitments it made in October 2015 at the Council. Sirisena and Wickremesinghe could start by consistently explaining to the masses why it’s imperative that transitional justice be inclusive and include a meaningful degree of international participation. Immediately releasing Tamil political prisoners would send an encouraging message too, as would an unequivocal acknowledgement that continued militarization in the country’s north and east is both untenable and inimical to lasting peace and reconciliation.
There are now many reasons to be concerned about Sri Lanka’s transitional justice plans and the administration’s current stance on accountability is extremely troubling. If the coalition government is going to reconsider its deeply flawed approach, it would need to move quickly and decisively. The longer Colombo waits, the harder (and more unlikely) that becomes.

The Referendum & Its Implications For Parliament

Colombo Telegraph

By Rajan Hoole –January 13, 2017
Dr. Colvin R. de Silva’s 1972 Constitution must seem paradoxical in retrospect. He made Parliament all-powerful by removing constitutional and legal restraints on its power. Using its untrammelled legislative power, the Parliament divested itself of its executive power and vested it with the new presidency of 1978. This was made amply clear when Jayewardene possessed himself of undated resignation letters from his UNP MPs. By 1982, Jayewardene doubted his legitimacy to such an extent that he would not trust his own MPs, some of whom may have felt uncomfortable about the Referendum.
What the Parliament could do under the 1978 Constitution, was to refuse to pass legislation as Jayewardene wanted, or even impeach the President. Later, as president, Premadasa showed how difficult impeachment was. Even with a reduced majority in Parliament and a narrow support base, Premadasa survived attempted impeachment using all his manipulative powers as president (see Sect. 18.4).
What Jayewardene and Premadasa did for their survival was to corrupt Parliament so thoroughly that except in externals, it became a different phenomenon from what it was under the Soulbury Constitution. In the old days MPs were modestly remunerated, they travelled by train, and often became poorer for taking to politics. Under Jayewardene’s system, to become an MP was to strike a gold mine. Salaries and perks were increased enormously, including duty-free cars. So high were the stakes that elections came to resemble a mini-civil war.JR Jayewardene
Another source of corruption was the tendency to increase the number of ministers to an astronomical number, without precedent anywhere else in the world. Premadasa started by reducing the number of ministers from levels maintained by Jayewardene, but reverted back to former levels as the price for staving off impeachment. How endemic this tendency is can be seen from the example of President Kumaratunga. During her first term (1994-2000), she made reformist noises and started with a cabinet of just over 20. However, during her second term where she felt her support to be more shaky, the number was increased to more than 40.
Thus among the 125 MPs supporting Premadasa in Parliament, 90 or so were either cabinet ministers or state ministers. In Kumaratunga’s second term, it was about 80 out of 115 MPs supporting her in Parliament (the total in Parliament being 225 MPs). In normal parliamentary practice, the back-benchers (govern- ment MPs who were not ministers) kept a check on ministers and raised questions, ensuring less corruption and better government. In what we have today, back-benchers have been reduced to an ineffective minority. The system has become in effect one of bribery all but in name.
This arrangement cannot admit any national planning or identification of national priorities. The people themselves tend to lose track of who is in charge of what. We have scores of ministers making policy decisions based on their private contacts, often foreigners, foreign firms and their agents. When an arrangement is purposefully geared towards maximizing corruption, it is inevitable that it is how things go.
If the rhetoric of the authors of the 1972 Constitution pointed to the apogee of a planned economy, that of the authors of the 1978 Constitution has resulted in anarchy. Wheeling and dealing has become a substitute for governance. Parliament has been rendered a white elephant that is too heavy a burden for this poor country.

TNA, GTF endorse Manouri committee recommendations

Sumanthiran points out original demand for exclusive external probe diluted



by Shamindra Ferdinando- 

The TNA and the Global Tamil Forum (GTF) have called for full implementation of the Consultation Task Force on Reconciliation Mechanisms (CTFRM) proposals made in accordance with Geneva Resolution 30/1, unanimously accepted in Oct. 2015.

The next Geneva sessions are scheduled for March, 2017.

Both the TNA and the GTF pointed out that the 11-member CTFRM had been appointed by the government in January 2016 and engaged in comprehensive consultation process before making its recommendations.

Describing their recommendation for foreign judges and other foreign experts as the main contentious issue, Jaffna district MP and top TNA spokesperson M.A. Sumanthiran underscored that the vast majority of those who had been consulted hadn’t demanded exclusive foreign judicial mechanism. "Instead, they accepted foreign participation in Sri Lankan mechanism," MP Sumanthiran told The Island yesterday.

The MP’s response was the first on behalf of the TNA since the CTFRM handed over its report to the government on January 3, 2017.

Attorney-at-law Sumanthiran said that since the end of the fighting in May 2009, the majority of the Tamil speaking people had been pushing for an external investigation. They repeatedly rejected local mechanism on the basis that the judiciary here lacked credibility to undertake such a task. However, consultations undertaken by CTFRM led by attorney-at-law Manouri Muttetuwegama had revealed that a hybrid mechanism dominated by Sri Lankans would be acceptable to them. The TNA MP said: "Certainly the stand taken by the majority of those who had been consulted is a positive development."

The CTFRM comprised Manouri Muttetuwegama, Dr Paikiasothy Saravanamuttu, Gamini Viyangoda, Prof. Sitralega Maunaguru, Dr Farzana Haniffa, Mirak Raheem, Prof. Gameela Samarasinghe, Visaka Dharmadasa, Shantha Abhimanasingham, PC, K.W. Janaranjana and Prof. Daya Somasundaram.

CTFRM member Viyangoda told ‘The Island’ that comprehensive recommendations related to the proposed judicial mechanisms dealt with the need for international expertise, including judges in each transitional justice mechanism, both male and female judges representing all ethnic communities and a special structure for women and children during examination of witnesses related to sexual crimes and crimes against children.

MP Sumanthiran underscored that the four-party alliance hadn’t been involved in the consultation process, though the grouping believed the recommendations could pave the way for genuine reconciliation process.

UK based GTF spokesperson Suren Surendiran told ‘The Island’ that there couldn’t be a dispute regarding the implementation of CTFRM recommendations. Surendiran asserted that the war affected communities and the international community desired the full implementation of the recommendations as agreed in Geneva as well as at other forums. Asked to explain, Surendiran said: "The performance of Government of Sri Lanka in terms of implementation of UNHRC 30/1 will also be monitored by the European Commission. Their recommendation to grant GSP plus tariff concessions includes various conditions."

Having proposed to restore special concessions under GSP plus tariff concessions for imports from Sri Lanka in exchange of an improved human rights and labour record on January 11, 2017, the European Commission underscored the European Parliament and the Council have now up to four months to raise potential objections before the measures become effective.

Commending what he called a noble noble effort undertaken by distinguished representatives of all communities selected and agreed by the government, Surendiran said that the recommendations had been made on the basis of consultations, they have had with a cross section of people. Therefore, though some ministers and members of parliament had objected, the GTF believed the top leadership would take tangible measures.

Former President Chandrika Bandaranaike Kumaratunga accepted the CTFRM report at the presidential secretariat on behalf of the yahapalana government.

The GTF pointed out that the report had been released ahead of the next Geneva sessions in March.

Surendiran said that UNHRC chief Zeid had welcomed recommendations, especially the clear backing of a hybrid court with local and foreign judges.

They commended Muttetuwegama’s team for recommending several confidence-building measures ranging from the expedited return of land held by the military, to the release of a list of all detainees and detention centres, the repeal of the Prevention of Terrorism Act (PTA) and the immediate release of persons held under the PTA without charges.

The report recognised the urgent need to address lingering concerns of militarisation, enforced disappearances and livelihood opportunities to promote reconciliation.

The GTF said: "The panel’s finding that ‘foreign participation is required as those who suffered during the conflict had no faith in the local judiciary which lacked expertise to undertake such task’ very much resonates with the victims of the Tamil community. This is a long-standing view that is further reinforced with the recent verdict on the murder case of TNA MP Raviraj.

SRI LANKA URGED TO RECOGNISE ECONOMIC, SOCIAL AND CULTURAL FUNDAMENTAL RIGHTS

Image: War affected children have become part time street vendors in Jaffna.

Sri Lanka Brief13/01/2017

Two German based INGOs has written to PM Wickremasinghe urging to guarantee Economic, Social and Cultural Rights in the New Constitution.

They have e recommended the pertinent institutions in Sri Lanka drafting the new constitution to:

Explicitly include economic, social and cultural rights like the right to adequate food and nutrition, the right to health, the right to water, the right to housing, the right to social security, the right to land as separate fundamental rights, render them justiciable in the new constitution, and provide mechanisms to ensure their progressive realization;

Guarantee the use of a human rights-based language according to international legal standards (see, for instance, ICESCR);

Provide legal recourse to the people of Sri Lanka to claim and enforce their rights through State institutions, such as courts and commissions.

Full letter sent to PM follows:
Ranil Wickremesinghe,
Prime Minister of Sri Lanka.

Chairman of the Steering Committee Constitutional Assembly of Sri Lanka.

Open letter to the Constitutional Assembly of Sri Lanka:

Guaranteeing Economic, Social and Cultural Rights in the New Constitution
Honorable Prime Minister, We have noted with great appreciation that the constitutional reform of Sri Lanka has been brought under way, which provides a unique opportunity for reconciliation and further democratization of the state.

We welcome that according to the final report1 of the Public Representations Committee on Constitutional Reforms (PRC) economic, social, and cultural rights should have the same status as political and civil rights, as already consensual in the doctrine of International Human Rights Law, 2 endorsing, among others, what has been known as a comprehensive International Bill of Human Rights. Under Chapter 12 “Fundamental Rights” of its report, the PRC recommends to include into the new constitution, among others, the right to health, food, water, housing, social security, land, environment and education.

The Sub-Committee on Fundamental Rights of the Constitutional Assembly of Sri Lanka in its recently published report also stresses the relevance of introducing justiciable economic, social and cultural rights in the national constitution, following the international tendency of constitutions of different states, such as the South African, Nepali and Bolivian ones. Recently, the Special Rapporteur on Minority Issues, Ms. Rita Izsák-Ndiaye, expressed her concerns about structural discrimination. On the report regarding her visit to the country on October 2016, she highlighted the severe racism against Tamil and Muslim communities.

These communities face even more violations of their economic, social and cultural rights than the rest of the population. Ms. Izsák-Ndiaye called on the State, among other recommendations, to “ensure that the imminent constitutional reform includes a strong minority rights regime including a fully empowered Independent Commission.” 3

Sri Lanka is a state party to the International Covenant on Economic, Social and Cultural Rights (ICESCR) since 1980, when it was ratified by the state. But as stated by the monitoring UN Committee on Economic, Social and Cultural Rights in its concluding observations of 2010, “the Covenant has not been given full effect in the domestic legal order and although some of its provisions are justiciable before the Supreme Court, they are rarely invoked.” 4

This is directly relevant for the majority of people in Sri Lanka, as they are confronted with a deficient legal basis and their access to justice is significantly hindered. It also reinforces the necessity of bringing the ICESCR standards into the new constitution.

Endorsing already existing economic, social and cultural rights standards and protecting the Sri Lankan people from any arbitrary terms that could hinder the full realization of their human rights would guarantee legal and political strength to the new constitution. In this sense, we would like to refer to the importance of using the official legal language adopted by international covenants, declarations and other documents issued by international organisms, especially those of the United Nations, in order to comply with international standards of economic, social and cultural rights, e.g., the International Covenant on Economic, Social and Cultural Rights (ICESCR), which provides an accurate legal standard/language on economic, social and cultural rights. On some specific human rights, such as the one referring to food, it would be also extremely relevant to apply the human rights-based language adopted by FAO, which refers to “the right to adequate food and nutrition”.5

Therefore, we, the undersigned organisations, call on the members of the Constitutional Assembly to ensure that the new constitution of Sri Lanka is underpinned by the constitutional recognition of economic, social and cultural fundamental rights.

By that, the new constitution would recognise Sri Lanka’s post-independence history of public provisioning in areas such as health, education and social welfare. Furthermore, such legal provision would strengthen the judicial enforcement of economic, social and cultural rights with respect to public policies implemented to realize them, such as education, health, food, water, adequate housing, social security, a living wage, decent and safe work, freedom from forced evictions, a safe, clean and healthy environment.

We are sure that such a new constitution would result in a fresh social contract between citizens and the state. A new constitution must reaffirm Sri Lankan peoples’ sovereignty, which is the very base of the State.

Based on this, we recommend the pertinent institutions in Sri Lanka drafting the new constitution to:

Explicitly include economic, social and cultural rights like the right to adequate food and nutrition, the right to health, the right to water, the right to housing, the right to social security, the right to land as separate fundamental rights, render them justiciable in the new constitution, and provide mechanisms to ensure their progressive realization;

Guarantee the use of a human rights-based language according to international legal standards (see, for instance, ICESCR);

Provide legal recourse to the people of Sri Lanka to claim and enforce their rights through State institutions, such as courts and commissions.

Yours sincerely,
Sofia Monsalve,
FIAN International
Theo Rathgeber,
Sri Lanka Advocacy Forum Secretary-General
1 Report on Public Representations on Constitutional Reform, May 2016. Available at http://www.yourconstitution.lk/PRCRpt/PRC_english_report-A4.pdf
2 For more information, please visit: http://www.ohchr.org/EN/ProfessionalInterest/Pages/InternationalLaw.aspx.
3 For more information, see: www.ohchr.org/EN/NewsEvents/Pages/DisplayNews.aspx?Ne wsID=20709&LangID=E.
4 E/C.12/LKA/CO/2-4. p. 2. Available at: www.ohchr.org/_layouts/treatybodyexternal/Download.aspx?symb olno=E%2fC.12%2fLKA%2fCO%2f2-4&Lang=en
5 See “Voluntary Guidelines to Support the Progressive Realization of the Right to Adequate Food in the Context of National Food Security”. Rome: FAO, 2005. Available at: www.fao.org/3/a-y7937e.pdf
Cc: Hon. Lakshman Kiriella
Hon. Nimal Siripala de Silva
Hon. Rauff Hakeem
Hon. (Dr.) Wijeyadasa Rajapakshe
Hon. A. D. Susil Premajayantha
Hon. Rishad Bathiudeen
Hon. Patali Champika Ranawaka
Hon. D. M. Swaminathan Hon. Mano Ganesan
Hon. Malik Samarawickrama
Hon. Rajavarothiam Sampanthan
Hon. Anura Dissanayaka
Hon. Dilan Perera
Hon. Dinesh Gunawardena
Hon. (Dr.) Jayampathy Wickramaratne
Hon. M. A. Sumanthiran
Hon. (Dr.) (Mrs.) Thusitha Wijemanna
Hon. Bimal Rathnayake
Hon. Prasanna Ranatunga
Hon. Douglas Devananda
Hon. Thilanga Sumathipala
Hon. Selvam Adaikkalanathan
Hon. Kabir Hashim
Hon. (Dr.) (Mrs.) Sudarshini Fernandopulle
Hon. Tilak Marapana
Hon. Mahinda Yapa Abeywardena
Hon. (Dr.) Nalinda Jayathissa
Ms. Hilal Elver, UN Special Rapporteur on the right to food
Mr. Léo Heller, UN Special Rapporteur on the human right to safe drinking water and sanitation Ms. Rita Izsák-Ndiaye, UN Special Rapporteur on minority issues
Mr. Philip Alston, UN Special Rapporteur on extreme poverty and human rights
Ms. Leilani Fahra, UN Special Rapporteur on adequate housing as a component of the right to an adequate standard of living, and on the right to non-discrimination in this context
Mr. Dainius Puras, UN Special Rapporteur on the right of everyone to the enjoyment of the highest attainable standard of physical and mental health Secretariat of the UN Committee on Economic, Social and Cultural Rights

9 January 2017

Two Years Of Good Governance – Dilemmas & Disillusion


Colombo Telegraph
By Arun Kumaresan –January 13, 2017
Arun Kumaresan - Air Vice Marshal (Ret'd)
Arun Kumaresan – Air Vice Marshal (Ret’d)
Is sabotaging the rainbow revolution, the solution?
President and Prime Minster and the nation celebrated the second anniversary of the establishment of the change that was popularly known as Yahapalana regime on January 8th.. It is now in the cross roads with disappointments and mounting criticisms. The once vocal supporters and the opponents (obviously with vested interests) allege; Lack of leadership and direction, Mixed and confusing signals emanating from the members of the unity government, Lack or stalled process of action against corruption, Corrupt entities being protected by the Cabinet ministers or appointed to important positions and more importantly alleged corrupt dealings by the members of the Yahapalana government.
The above dissatisfaction both by the genuine well wishers of a democratic system of governance and the pseudo chest beaters needs serious attention. The governance of the nation is a prerogative of the elected government and they remain the political masters during the life of the Parliament. Hence, any analysis needs to be centered to analyze who our current ruling political masters. The answer to this was given recently by actor turned politician Mr Ranjan Ramanayake and in his words, quote “If they act like President Duterte they will have to push down at least 175 members of Parliament out of the total 225 from flying helicopters”.Ranjan and Maithri
Photo via Facebook – Ranjan Ramanayake
For the purpose of this article pushing from the helicopter has no relevance but the numbers mentioned needs a closer look. It is obvious it was not arrived from any empirical data analysis but from the gut judgment from an honorable politician. Hence, such data can be taken as a justifiable bench mark or thumb rule. If we drop (not from the helicopter) the 175, we are left with 50 honorable politicians. Out of this; JVP can claim their entire strength of 6, TNA can claim a vast majority, say 14 and JO too have some of the likes of Dinesh G, GL and Vasudeva likes 5? This makes a total of 25.
This gives only 25 honorable types to the team – the political authority currently steering the Yahapalana government. This is the greatest challenge the MS – RW leadership have to currently work with. For the idealist mind that poses the question; why should those who shouted on the political stage have to work with the corrupt balance, the answer is simple – why we voters voted in such not so honorable people.
But it is not the sole cause for public to be blamed. It was due the political system that we inherited from the 1977 UNP government and the subsequent 1978 constitution. The preferential voting system, allowed the rot to set in among our political scribes. Electoral system was abolished leading a MP not becoming accountable to his electorate. This led to mafia politics, which became the theme to define the landscape who will be elected and be our political masters. The responsibility of this progressive deterioration, both the major parties are guilty of; UNP for the creation of the said constitution and the SLFP enjoying the fruits. Hence, the first dilemma to revert back and bring in a new political culture is to bring in a new constitution that abolishes the preferential voting system and also much needed other reforms to re establish democratic governance in the idles of ‘Yahapalanaya’.

Central Bank to enhance bank examination methodology


Central Bank Governor Dr. Indrajit Coomaraswamy.
Dr. Indrajit Coomaraswamy

by Sanath Nanayakkare-January 13, 2017, 8:40 pm

Central Bank Governor Dr. Indrajit Coomaraswamy said recently that to maintain financial stability in the country in line with regulatory reforms, the Central Bank has identified the need for further strengthening its supervisory functions and expects to enhance the bank examination methodology.

"This will focus on efficiency, effectiveness and sustainability of individual banks and the banking sector, based on the Bank Sustainability Risk Index (BSRI)", he said.

The CB governor made this comment while announcing the Central Bank's Road Map titled "Monetary and Financial sector Policies for 2017 and Beyond" at the Central Bank in Colombo where the audience comprised many stakeholders from the banking and non-banking financial sector.

Further speaking the CB governor said, "We need to have a well-planned and an ambitious agenda for financial sector development and reforms ranging across financial sector policies with a vision of innovative, robust and competitive financial systems".

"As a priority, we expect to strengthen the regulatory framework pertaining to all financial institutions, including licensed banks, licensed finance companies (LFCs), specialised leasing companies (SLCs) and primary dealers".

"It will further ensure the stability of the financial sector by promoting the safety and soundness of those institutions to face unforeseen challenges in the growing business environment. In this regard, the Central Bank wishes to implement the following policies in 2017 and beyond".

"Since the last amendment to the existing Banking Act in 2006, the banking sector landscape has undergone a significant change, both nationally and internationally. Considering the need for upgrading of statutes in line with these developments, we expect to initiate amendments to the existing Banking Act".

"Accordingly, steps will be initiated to streamline and strengthen the regulatory and supervisory framework through the proposed Banking Act amendments. We will consider provisions for reinforcing the Central Banks's enforcement powers for violations of the Act and the Directions issued under it. In this regard, we wish to seek views from the banking sector as well".

"In line with these reforms, we intend to review all key regulations in the medium-term. In this regard, we will review key Banking Act Directions, such as share ownership, foreign borrowings, and corporate governance, and these will be amended where necessary", Dr. Coomaraswamy said.

Labour shortage in key sectors will hold Sri Lanka back 

logo29
Friday, 13 January 2017

The Daily FT Cover Story on Tuesday highlighted the 10 most important things to look for whether a country is rising or falling, quoting Ruchir Sharma’s latest book, ‘The Rise and Fall of Nations,’ one of them the country’s talent pool – i.e. is the manpower pool growing?

Annually, the World Economic Forum ranks countries in the Global Competitiveness Index — a decent gauge of which nations are best positioned to squeeze efficiency out of their businesses and to attract companies and investment from overseas. But if you look beyond the index and examine what countries are actually doing to earn their rankings, the bigger take-away is that the quality of workforce skills is inextricably linked to economic development.

To a great extent, Sri Lanka has yet to reach its full potential in the new knowledge-service based economy. To do that, we must continue to recognise the importance of building upon existing industries that offer potential for future economic growth.

Tourism, for example can create 300,000 new jobs by 2020; the sector holds tremendous promise, but the lack of skills and manpower would be an impediment to the growth of the industry. Then the construction industry needs over 600,000 to do the Rs. 65 billion worth of construction work by 2020. The same with the technology sector. These sectors cannot find the people.

The other challenge we have is if we are to succeed as an emerging economy, Sri Lanka must achieve a balance between a manufacturing-based economy and one driven by knowledge, services, ideas, information and technology.

The importance of this pivotal change cannot be overstated. As compared to other countries, our current level of competitiveness is relatively low. But the opportunities before us are limited only by our imagination and our willingness to transform our vision into reality. The task at hand therefore for our policy makers are very, very challenging.
30Transforming our economy

Much of the burden of transforming our economy will fall squarely upon the shoulders of our leaders and our education system. Specifically this transformation will require our schools, colleges and universities to provide expertise, experience and leadership in these four key areas:

1. Workforce development, arming graduates with the knowledge necessary for today’s knowledge-service driven economy

2. Strategic partnerships between higher education and industry that will lead to private sector expansion

3. Generation and transfer of ideas and technologies from research to commercial applications

4. Building communities and enhancing quality of skills to attract and retain business and industry

Our schools, colleges, universities and the work places have the talent, creativity but lacks the expertise necessary to make a profound difference in some of the critical areas. Therefore, it is the responsibility of the Government and the private sector to make sure they create the opportunities the country needs to realise its full potential.
Urgency

Sri Lanka is fortunate to have leaders both in the Government and private sector who recognise the importance of investing in education. But Sri Lanka isn’t the only state in the region to realise that investment in education holds the key to economic growth.

The knowledge-based workforce development would require an innovative strategy that approaches the issues of incumbent workers, higher education as an integrated system. In keeping with their integrated approach, we need to promote market-based skills from the earliest stages. The priorities, therefore should be;

1. Immediately identify the skills requirement to deliver the 2020 vision to enhance the skill level of the current workforce. 2. Support higher education programs that will lead to more graduates with degrees in technology, engineering, sciences and hospitality programs.

3. Increase the number of students prepared to enter science, services and technology fields, as well as the number of teachers who are proficient in the delivery.

4. Jointly identify the skills needed to support the thrust areas and develop three-year manpower plans for each sector.
Capital formation

Increasing the amount of pre-seed, seed and institutional venture capital available to emerging businesses, particularly those in the education, technology and bioscience sectors needs to be introduced. We also need to develop programs and incentives to increase the depth of management expertise and attract Sri Lankan talent from oversees to strengthen our nation’s capability.
Conclusion

Today, Sri Lanka finds itself in a new economic climate with a new set of rules and a critical need for well-guided investment in higher education. We now compete in a global economy that is driven by knowledge, information, ideas and technology. The new Government realises the value of capitalising on our existing strengths. However, as we look to the future, we must explore opportunities and ideas to become more competitive. More than ever before, building people capacity holds the key to our long-term economic success, a key weakness in our current disjointed education system.

(The writer is a HR Thought Leader.)

UNP tactfully delaying LG polls: CaFFE



2017-01-13

Campaign for Free and Fair Elections (CaFFE) Executive Director Keerthi Tennakoon said today the United National Party (UNP) was purposely delaying the Local Government elections by its representative not signing the delimitation committee report. 

He said the UNP was adopting this strategy either because it was scared of facing the elections or was not confident enough to do so.

 Mr. Tennakoon said the LG elections had been delayed by more than one and half years for the first time in Sri Lanka. 

“Elections have been held even during the armed conflict and other disturbances. But this time the elections are being delayed in a tactful manner,” he told a news conference and added that by delaying the elections the government was blatantly violating good governance principles and the people's mandate.

 Referring to the government’s plan to lease lands in Hambantota to a Chinese Company, Dr. Nirmal Ranjith Dewasiri said Prime Minister Ranil Wickremesinghe claimed he would inform the people about the agreement and highlighted the fact that the people had a right to know it before it was finalised.

 He said one of the main criticisms against the previous government was its lack of transparency and its as the Hambantota Port, the Mattala Airport and Sooriya Wewa stadium were not economically viable. (Ajith Siriwardana)

Questioning The Traditional Approaches To Growth


Colombo Telegraph
By Ranil Senanayake –January 13, 2017
Dr Ranil Senanayake
Dr Ranil Senanayake
On Friday Jan 13th it has been reported that Chinese Prime Minister had made the observation that, ‘We must question traditional approaches to growth,’ At last, someone has recognized the dangers of unquestioned growth. Our path to growth must be questioned even at this late stage. It was not that the current direction of growth went unquestioned. The observations made below were written in 1977, our politicians where were deaf to our pleas and blind to the consequences. Now that the Chinese premier has questioned the traditional approaches to growth, the type of growth that resulted in the poisoning of the freshwater streams of Guatemala by ‘foreign investors’. Perhaps our politicians will show us the types of ‘investors’ that they are hoping to attract and how they will give us a approach to growth different that what was being promoted in 1977.
Guatemala: A Sad True Story. Sun’ Newspaper Feb 1977
‘Guatemala city is the showpiece of Central America. With a heavy influx of foreign investment the city has bloom. I visited Guatemala last month after an absence of eight years, changes were quite profound. The city was modernized and everywhere there were signs of affluence. Fancy pizza palace were on about every street, whereas eight years ago I would have been hard-press to find even one.
Stainless steel floor discos and high fashion houses were just some of the handmaidens of development that were visibly evident.
It also seemed pretty impressive. I could not help buy wonder if these were the rewards that we in Sri Lanka were due to receive.
The last time I was in Guatemala I was collecting snakes and spent a lot of time in the mountains and backwoods. I have made many friends in the village and looked forward to meeting with them again. This time I was there looking for new fruit trees, vegetables and fibre crops that I intended to use in my rainforest analog model for the wet zone village designed in Sri Lanka. So after a few days in the city I began my journey into the villages.
The city bespoke of growth, massive multi-storey buildings were erected everywhere. The streets were full of sleek luxury vehicles. I visited many elegant houses and the mood was gay indeed. At that time I remember thinking “how lucky these people are, they have gained all the fruits of development in such a short while”.
My friends in the city were mostly businessmen and their days were marked by visits to great restaurants and nightclubs. Everyone spoke of investments, agencies, imports, exports and of what expensive things they have bought or were going to buy. It was like being in a great roaring tidal wave. One could not help but be carried along by the sheer exuberance, but even at that point I remember wondering about the pre-ponderance of Americans, Germans and other non-Guatemalans in all the high spots of the city.
Then I began my travel out of the city. At this time I went out with Francisco and Kurt who are basically middle class citizens. As we drove to the suburbs, I began to get a somewhat a different picture of the city. Francisco pointed out what were average three to four bedroom houses. “When you were here last my friend, those houses costed the thousand dollars. You know how much they cost now?” I professed my ignorance. “Over 90.000 dollars” he said, and continued thereby “ we cannot afford such accommodation any more, some time ago we could have spired for a house but now….. The gringos (foreigners) are the only ones who live here”.
I confess that the rosy image I initially had begun to get somewhat shacked. I said so when I come back to the hotel at evening and went out for dinner. My companions reassured me “you find malcontents in every society” they said “what you have to realize is the enormous gain the investors bring to the country by creating jobs and industries”.
The next day I was out looking for a fruit plant called ‘Jocote’. It had the ability to be propagated from branch cuttings and had extremely nutritious fruit. There were two varieties red and yellow. The yellow type was rarer but sweeter and came form the lowlands. On the way down to the lowlands I passed the forest road of Pallim, eight years ago this was one of my favourite observation areas for fish and reptiles, the air of nostalgia was strong and I had to turn my truck to explore the road again.
About 200 yards down the road was a lovely stream. I remembered from my last visit. It had fascinated me with the wealth of fish and by one part being warmer due to a volcanic spring. When I stopped my truck on the bridge the first thing that struck me was a strange odour, pungent and strong.
“It is volcanic gas” I thought and proceeded to climb down to the stream to explore. After about 3 minutes by the stream I began to realize that was nothing alive on it. I was by this time literally sick from the fumes. It was an unnatural, chemical odour, but even then I did not realize the truth. My thoughts were that a new volcanic spring had opened up. I was curious, so I summoned my Indian guide Bruno and we moved upstream. I was eager to see this new volcanic phenomenon.
A mille upstream the source of the smell was revealed. It was the new complex of the Bayer chemical company. So the stream was being poisoned by its effluents. The stream at this point was at least 400 feet in elevation above sea level. Consider the insensitivity of the managers. People living by the stream all the way to the sea would be affected by their discharges. The proud of my friends in the city suddenly began to ring hollow.
Then I began to make more penetrating enquiries and found that the “malcontents” ranged from the Guatemalan Chamber of Commerce who were fighting hard to keep the giant American corporation SEARS out of Guatemala to protect their native shop keepers: up to the dispossessed labour who were trapped into complete dependency on the huge agricultural complexes of the multinational.
These complexes grew crops for export and took the most productive farmlands out of the hands of the people. It was as if people did not matter and that only abstract economic goals such as: “growth” mattered. It was disturbing. The images were vivid. As the plane bringing me home clipped low over the beautiful paddy fields and the coconut small holdings around Negombo, those images came back to hunt me and chilled me to the bone. Wither go we?’

But it’s one way to pay off debts to China

Sri Lankan water torture

Jan 14th 2017

FOR generations, Priyantha Ananda’s family sold kalu dodol—a sticky sweet made of coconut milk and rice flour—on the old Tangalle road in Hambantota. The government moved his wayside shop in 2008 to build a sprawling commercial port, financed by Chinese loans. He was one of around 40 street vendors forced to relocate to another neighbourhood, far from their homes, where business is slow. Most distressing of all, the authorities have told them not to erect any permanent buildings. That suggests they might be displaced again, this time for an industrial zone being developed by Chinese investors.

Resentment at such schemes boiled over this week, when thousands demonstrated at the inauguration of the industrial zone. As Ranil Wickremesinghe, the prime minister, and Yi Xianliang, China’s ambassador, grinned for the cameras, police beat back stone-throwing protesters with tear gas and water cannons. The Chinese must not have any more land in Hambantota, insists Mr Ananda. The sweet-seller says he will not move again. But some in the area have already received notices of acquisition.

The size of the industrial zone is not yet known. A government minister said the Chinese investors have requested 15,000 acres. The prime minister says it will be 1,235. But even the smaller area has not yet been demarcated: the government’s chief surveyor says public anger forced his staff to stop work.

The government accuses the opposition, and in particular supporters of Mahinda Rajapaksa, a former president, of stoking discontent in Hambantota with talk of “Chinese colonisation”. That is especially ironic, since the development of the port was begun under Mr Rajapaksa, who was criticised at the time for signing uncompetitive contracts for its construction that lumbered Sri Lanka with heavy debts to the Chinese government. The new government plans to grant a state-controlled Chinese firm called CMPort an 80% stake in a 99-year lease of the port, for $1.2bn—a step it says is necessary to defray some of the debt. It also maintains that the industrial park will attract $5bn in investment and create 100,000 jobs.

The signing of the lease on the port has been postponed, however, after Arjuna Ranatunga, the ports and shipping minister, complained to Maithripala Sirisena, the current president, about some of its clauses. One grants CMPort control over internal security; another allows it to claim fees for navigation. Mr Rajapaksa, who used to be the member of parliament for Hambantota and still wields considerable political influence, is railing “against giving the rights of the landlord over the industrial zone to a foreign private company” and raising concerns about “control and sovereignty”. That is the height of hypocrisy—but it has clearly struck a nerve.