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

Thursday, February 16, 2017

Forecast for 2017: Luwie Ganeshathasan




GROUNDVIEWS on 02/16/2017

This is the ninth in a series of video interviews forecasting what 2017 will have in store across different sectors. Researcher from the Centre for Policy Alternatives (CPA), Luwie Ganeshathasan speaks about expected developments from a legal perspective. At 0:43 Ganeshathasan discusses Executive Presidency, at 1:39 he speaks on devolution of power and at 2:26 he discusses the challenge of moving beyond partisan politics amidst the upcoming provincial and local government elections.


Ganeshathasan’s comments are tied to a recently released CPA report reviewing pledges made in 2015.
For the earlier videos in our series, click here for discussion on developments in human rightsLGBTIQ rightseconomicspoliticswomen’s rightssecurityinternational relations and more from the legal sector for the year ahead.

Sri Lankan PM says failed asylum seekers safe to return home

Sri Lanka's Prime Minister Ranil Wickremesinghe (L) and Australia's Prime Minister Malcolm Turnbull attend a press conference at Parliament House in Canberra, Australia, February 15, 2017.  AAP/Mick Tsikas/via REUTERS
Sri Lanka's Prime Minister Ranil Wickremesinghe (L) and Australia's Prime Minister Malcolm Turnbull attend a press conference at Parliament House in Canberra, Australia, February 15, 2017. AAP/Mick Tsikas/via REUTERS

By Colin Packham | SYDNEY

Sri Lankan Prime Minister Ranil Wickremesinghe said on Wednesday that failed asylum seekers held in Australian-run detention centres in the South Pacific will not face prosecution or harm if they return home.

Wickremesinghe's comment comes as Australia increases pressure on failed asylum seekers on Papua New Guinea's Manus island and the tiny island nation of Nauru to return home voluntarily, including offering large sums of money, amid fears a deal for the United States to take refugees has collapsed.


Only five men from Nepal on Manus have so far opted to leave despite the threat of deportations.

Australia does not publish details on the nationalities of the 1,152 people held on Manus and Nauru though refugee advocates said there are approximately 150 Sri Lankans detained.

Many of these would have received their refugee status, advocates said, but for those who have been rejected, they face the choice of accepting the offer of cash from Australia or the threat of deportation.

"They are welcome to return to Sri Lanka and we won't prosecute them," Wickremesinghe told reporters in Australia's capital Canberra.

Despite the assurances from Wickremesinghe, refugee advocates said many Sri Lankans would be reluctant to return home amid reports of mistreatment of members of the ethnic Tamil minority, a claim Wickremesinghe rejected.

"It is quite safe for them to come back... we want all the Tamils to come back," said Wickremesinghe.

The United Nations has urged Sri Lanka to better protect minorities like Tamils and redress the wrongs committed during a 26-year conflict with Tamil rebels which ended in 2009.

(Reporting by Colin Packham; Editing by Michael Perry)

The Space Between The Laws: Insights Into Sri Lankans’ Irregular Migration Into Australian Waters


By Kirsty Anantharajah –February 16, 2017 
Kirsty Anantharajah
When liberties are taken away and when democratic institutions die, is it even worse than human beings dying? 
Colombo TelegraphIn 2014, a boat carrying 157 Sri Lankan asylum seekers was intercepted at sea near the coast of Christmas Island, Australia. They were transferred to an Australian customs boat where they were detained at sea for one month. Their location was not disclosed to the Australian public. They were held against their will, in windowless rooms. Australia attempted to return these people to India, detained them in the Cocos Islands and then in Western Australia. Finally, they were transferred to Nauru, the site of one of Australia’s offshore detention centers.
The cruel irony is that the very rule of law breakdown that pushed them from their homes in Sri Lanka also awaited them in Australia. And the lived experience of both is eerily comparable.
The rule of law has great power to determine whether life proceeds with security and hope or whether uncertainty and insecurity will be the norm. Sri Lanka’s rule of law crisis is characterised by a climate of arbitrariness, in part created by corrupt institutions and abhorrent security legislation. This breakdown is felt by Sri Lankan citizens in their experience of disappearances, torture and sexual violence. This has motivated some individuals to leave the country’s borders and begin their journey as irregular migrants. The untold story is that this same failure of the rule of law also resides in Australia.
Pull factors: myth of liberal democracy
Australia has a policy of mandatory detention: those who arrive in Australia without a visa will be mandatorily detained, and under Australian law, they may be held indefinitely.
The conditions of detention, coupled with the mental anguish caused by the arbitrariness and the potentially enduring nature of this detention, has been deemed torture. Special Rapporteur Juan Mendez, has reported that several aspects of Australia’s offshore processing policy constitute a contravention of its obligations under the Convention Against Torture.
Australia’s offshore detention centres are located outside the mainland on Manus Island and Nauru, where the burden of refugees is regionalised, provision of services are privatised and accountability is obscured. Daily life on these islands is shrouded in secrecy; NGOs, media and the Australian public are precluded from even bearing witness to the atrocities that occur.
Documents leaked to The Guardian in 2016 revealed abuse, sexual violence, suicide attempts and extreme hopelessness. One report describes a security guard bartering longer shower time allowances for sexual favours from a detainee:
“It was a male security person. She did not state if this has or hasn’t occurred. The security officer wants to view a boy or girl having a shower.”
Whilst these security personnel are contracted by the Australian government, liability for these harms are non-existent.
Australia, through Operation Sovereign Borders, has a militarised response to asylum seekers. It effectively “pushes back” boats of asylum seekers, in some circumstances, to the country they fled. In May 2016, after being (inadequately) screened at sea, a group of Sri Lankan asylum seekers were returned to Sri Lanka, Australia’s obligation of non-refoulement apparently forgotten.
The Australian public is not informed about any of these “on sea” operations. The Australian people do not know how many Sri Lankans never reached our shores.
Sri Lankan asylum seekers arriving in Australia without a visa are now prevented from applying for any type of permanent protection. Many have left young families at home, promising to pave the way. However, families cannot be sponsored on temporary visas.
Those fortunate enough to be allowed out in the community while they make temporary protection applications are on bridging visas: many are denied healthcare, work rights and an education. Some people will spend several years this way — studying, working, doing their best to survive — becoming part of Australian society, only to be deported or detained without claim to any permanent rights.
The self-immolation of 29-year-old Sri Lankan man Leo Seemanpillai in Geelong, trapped in this cycle of uncertainty, illustrates this pain. A friend of the young man gave voice to the precariousness of Leo’s position:

Sri Lanka: Mr. Prime Minister; Deliver promises first, and then welcome refugees back!

Regarding Sri Lankan Prime-minister’s recent statement on refugees

by Lionel Bopage- 
( February 16, 2017, Melbourne, Sri Lanka Guardian) The current Prime Minister of Sri Lanka Ranil Wickremsinghe’s comments on refugees reported in the news media fly in the face of facts.
Despite the relaxation of the social and political environment under the new regime led by President Maithripala Sirisena and the Prime Minister, the repressive machinery and logistical approach of the governance system towards its political critics and opponents have not changed. This is evident from the incidents that have taken place in Sri Lanka recently, also giving the impression that the current regime may have started resorting to old repressive strategies and tactics. For example:
– killing of two university students in Jaffna;
– continuing police torture island wide;
– a laxed approach to investigations of the criminal activities of the previous regime;
– continued repression of trade union and student protests;
– the abduction of the leader of the telecommunication trade union; and
– the creeping closure of the democratic space gained after the elections.
There have also been evidence of at least several cases where the returning asylum seekers being arrested and subjected to ill treatment. Voices critical of the current regime are again being reinterpreted as supporting a separatist agenda. The reconciliation agenda of the current Sri Lankan regime and its efforts toward that end are yet to be demonstrated in practice, despite the rhetoric of its representatives at overseas forums like the United Nations.
By his statement, Sri Lanka Prime Minister has concurred with the Australian regime’s repression of the asylum seekers, and their off-shore detention, such as in Nauru and Manus. This while Australia’ refugee policy is being subject to intense and severe criticism by the United Nations.
Till the impunity given to perpetrators of humans rights abuses is rescinded, the organs of the state are reformed, the mindset of many working for the state in seeing dissent as unpatriotic is changed and when the rule of law becomes paramount, then and only then can the Prime-Minister welcome refugees safely back to the country. Otherwise the current government will also be seen in the cold light of history like other previous governments (of 1970, 1977 and 1994 amongst others), who promised much in terms of good governance and reconciliation but in the end made democratic spaces in Sri Lanka even narrower.
Whilst supportive of the current government’s reform and reconciliation agenda, I am at the same time sceptical, given the past history of the United National Party and other members of the coalition which include the Sri Lanka Freedom Party, as reflected in the government’s inability and or hesitance to deliver the reforms promised during the Presidential and Parliamentary elections, in any concrete manner.
The Prime Minister of Sri Lanka and the government need to deliver their promises first, then welcome back refugees.

GL wants to know why terrorists not charged under PTA

EU won’t comment on Sumanthiran assassination bid


G. L. Peiris 85 percent of the recommendations of LLRC has been


By Shamindra Ferdinando-

Alleging that five former LTTE cadres arrested in connection with an alleged attempt to assassinate TNA lawmaker M.A. Sumanthiran had been produced before the Kilinochchi Magistrate and District judge and remanded till Feb 13 on a charge of possessing explosives and narcotics instead of under the Prevention of Terrorism Act (PTA), former External Affairs Minister Prof. G.L. Peiris said the government should explain its position vis-a-vis key anti-terrorism legislation.

A government that had been preaching to the public of the importance of the Right to Information shouldn’t keep the people in the dark regarding vital matters, he said.

Prof, Peiris told The Island last night that the Joint Opposition would like to know whether the government had suspended the PTA consequent to talks with the EU as well as various other parties regarding far reaching changes to counter terrorism legislation and amendment to the Code of Criminal Procedure Act.

Had they already suspended the PTA pending the introduction of a new Counter Terrorism Law, Prof. Peiris asked and added that the JO would closely monitor investigations into alleged political assassination attempt. The former Law Professor said that the EU shouldn’t be allowed to influence the decision making process in respect of security matters.

The EU delegation declined to comment on the alleged attempt on TNA MP Sumanthiran’s life.

Prof. Peiris yesterday warned of dire consequences due to dismantling of what the former eminent law professor called a tight security apparatus maintained by the previous government.

In accordance with their overall security strategy, the Ministries of Defence and External Affairs had maintained constant dialogue with countries where diaspora had been strong and active. As a result, there had been several successful prosecutions of members of the terrorist LTTE in Switzerland, France, Germany and Italy, he noted.

Prof. Peiris was addressing a group of trade union representatives at former President’s office at Nelum Mawatha, Battaramulla.

The former Vice Chancellor of the Colombo University recalled the operations undertaken by the previous government to meet the threat posed by diaspora elements. There had been a constant flow of information from various sources due to the previous government’s initiatives. Unfortunately, Prof. Peiris said the Sirisena-Wickremesinghe administration had dismantled vital security apparatus thereby paving the way for those disruptive elements to advance their agenda inimical to the country.

Although the LTTE had been militarily defeated in May 2009, the country couldn’t have afforded to do away with the Prevention of Terrorism Act (PTA), Prof. Peiris said. "We realized the requirement to maintain a robust security system to ensure a peaceful environment. But, the yahapalana rulers are engaged in a project to abolish the PTA and to amend some major provisions in the Public Security Ordinance."

Prof. Peiris pointed out that a top level discussion chaired by Prime Minister and the UNP leader Ranil Wickremesinghe on Dec 16, 2016 at Temple Trees revealed extremely dangerous path the present leadership was taking at the expense of national security. Alleging that yahapalana rulers had absolutely no concerns regarding national security matters, prof. Peiris recalled how the Criminal Investigation Department (CID) summoned him following a statement he made regarding the recovery of explosives, including one suicide jacket and claymore mines at Chavakachcheri, Jaffna early last year.

Having mollycoddled terrorists and those who had been based abroad and pushing for a country divided on ethnic lines, the recent alleged attempt on the life of TNA lawmaker M.A. Sumanthiran must have come as a total shock to them, Prof. Peiris said. Having jeopardized national security for narrow political gains, the Sirisena-Wickremesinghe administration was struggling in the face of new threat, he said.

Nationalize the SAITM or make it as ‘Not for Profit Iinstitute’ – COC

 Nationalize the SAITM or make it as ‘Not for Profit Iinstitute’ – COC

 Feb 16, 2017

Citizens’ Organizations Collective (COC) called for a press conference held at CSR on Feb. 15 urged government to take stern action to nationalize the SAITM (South Asian Institute of Technology and Medicine) or make it as ‘Not for profit institute.’

Addressing the media Left Centre Co-convener Chameera Perera said that most of US private universities had established as not for profit institutes.
 “There are only ten percent of ‘for profit private universities’ in US today.”
He pointed the responsible of the government for take prompt action to solve the issue of SAITM.
 “The government should take action to regulate the SAITM and strengthen the Sri Lanka Medical Council (SLMC) for monitoring SAITM.”
  “Some people need to misuse the court order on SAITM and build more private medical colleges in country. We urge government to do not misuse court order,” said Perera.
 Akalanka Hettiarchchi (Aluth Parapura) said that they stand on to protect free education
“Some people need to create an opinion that free education means freedom to buy educational qualifications and it is a misinterpretation on free education.”
He added, “Government should expose the admission qualifications at Kotalawala Defense University.  It should be maintained by ministry of higher education.”
Chamara Nakandala (Parapuraka Balaya) said that poor parents in the villages struggling to give a good education for their children.

Thajudeen murder: Crime OIC gets bail

2017-02-16

Narahenpita Crimes OIC Sumith Perera, who was remanded over the death of ruggerite Wasim Thajudeen was released on bail by Colombo High Court judge Manilal Vaidyathilaka today. 

He was released on a cash bail of Rs. 100, 000 and with three sureties of Rs. one million each.

 He was further ordered to be present before the CID on the last Sunday of every month.

 His passport was impounded and he was warned by the Judge to abstain from interfering with the prosecution witnesses or with the investigations. (Farook Thajudeen)

Reform By Consensus


Colombo Telegraph
By Somapala Gunadheera –February 16, 2017
Somapala Gunadheera
Our Cabinet has been built up from the wrong end. Its carder has not been fixed on the workload available but on the number required for the government to remain in power. That has resulted in producing what is called in indigenous rustic parlance ‘a pissige palaamalla’ – a grab bag of a mad woman. The bag contains much that is superfluous, repetitive and rotten. That makes even the useful, dysfunctional and ineffective.
To my mind that breakdown is the roots cause of the prevailing dissatisfaction all-over the country. The Government has dragged its feet for two long years amateurishly without a coordinated plan of implementation, on an ad hoc basis, hoping for the best. This situation has to be rectified forthwith, if it desired to maintain the majority in its fold and continue in power after the next election. The first priority here is to create an apposite management structure. Basically the assignment implies identifying the workload, classifying it to sectors and fixing the cadre required to develop them efficiently. That is how Governments are run efficiently in organized countries.
Unfortunately that cannot be done in our context. Trouble will begin at the stage when those who have been hanging on unproductively discover that they were going to lose their status and perks under the new arrangement and the objective will be sabotaged under threats of the write-offs’ to topple the government in power by shifting their support to the opposite side. That is how the long overdue Cabinet reshuffle is dragging on indefinitely. Those in office who are below par in their performance use pressure on their favourite sectional leaders to obstruct the reshuffle, despite it being a suicidal move. Thus no reform would be ever possible, if we keep on cutting the suit to suit the draper without cutting it to suit the cloth. That cannot be done until our prime objective remains to please the draper.
We cannot escape this vicious circle unless we make objective decisions as we set forth on the new approach, leaving no room for subjectivity in the process. Such decisions can only be taken with all the members of Parliament sitting together as a collective body to determine the proper workload of the executive. That can be done through a qualified professional committee fixing the structure and the cadre objectively.

Bambalapitiya flats redevelopment project:Promoter conceals information from Govt.


article_image
Bambalapitya flats

By C. A. Chandraprema-

In an article titled, "Bambalapitiya Flats redevelopment project: Govt. taken for a right royal ride?" published on 3 February 2017, we highlighted certain concerns about the Bambalapitiya flats redevelopment project. The Singapore registered company promoting this project UTL Global Projects Pte Ltd is a nominal company with no real estate or construction expertise or the financial resources to be able to take on a project of this magnitude. This company had misled the government into thinking that they had brought in a large Indian government owned construction conglomerate Engineering Projects India Ltd as their partner to both finance and build the project but in actual fact Engineering Projects India Ltd was not a shareholder of City Square Projects Pvt Ltd, which was formed in terms of BOI requirements, to execute the Bambalapitiya flats redevelopment project.

SRI LANKA: RAJAPKSA LED JO RESIGNED FROM SUB-COMMITTEES OF THE CONSTITUTIONAL ASSEMBLY.

Sri Lanka Brief16/02/2017

Members  of the Rajapaksa led Joint opposition   resigned from the Sub Committees attached to the Constitutional Assembly today.

Members of the parliament  Bandula Gunawardane, Keheliya Rambukwella and Tharaka Balasuriya tendered their resignations and said that  they officially rejected the reports produced by the 6 Sub Committees and added that they had participated in this procedure with good intention.

“It has been proved that these Sub Committee reports would directly affect the unitary nature of the state and it would result in developing federalism and separatism in the country,”  MP   Bandula Gunawardane has said.

Their resignation was per-planned according to  Gunawardane: “We planned to resign from these Sub Committees after revelation of these facts to the people. Unfortunately, the government cancelled the debates on the matter in an undemocratic. I was the Chairperson to the Sub Committee of state funds. There are many other joint opposition members in the remaining 5 Sub Committees. They will also resign from their membership in the coming days.”

– With the inputs from Daily Mirror.

Thamilmaran, Jayasinghe to escape from Vidya murder case!

Thamilmaran, Jayasinghe to escape from Vidya murder case!

Feb 16, 2017

Dean of the Colombo law faculty Prof. V.T. Thamilmaran and senior DIG Lalith Jayasinghe were recently summoned to the CID and questioned over their roles in harbouring and aiding and abetting the main suspect in the murder of Sivaloganathan Vidya of Pungudutivu Central College in Jaffna, Swiss Kumar, to flee. The additional solicitor general in charge of the file told CID officials, “They cannot be accused of murder. File indictments first over the rape and murder and then let’s deal with the professor and the DIG.”

The professor of law is saying that his pupils in the AG’s Department will never act to arrest him. Jayasinghe is also accused over the sending of two PCs to the scene of the murder of ‘Choka Malli’ during the last presidential election.  The firearms of the two PCs had been used to shoot ‘Choka Malli’.

Women: Careers In Local Government


Colombo Telegraph
By S. Ratnajeevan H. Hoole –February 16, 2017
Prof. S. Ratnajeevan H. Hoole
When my mother asked me to marry my wife, I had not seen her; not even a photo of hers. She was then B.Sc., M.Sc. I said to myself, “She is obviously serious about things. She will help bring up good children.” We both said yes. We met first on a Sunday and were married by Wednesday. We have both done well. My wife did her doctorate under Nobel Laureate George Olah. But she moderated her career between being a professor, mother of 5, and wife.
My own mother earned her B.Sc. London in double mathematics, and logic and methodology with first class honours through private study. My father married her merely on my grandfather’s letter to him. She too balanced career and home. I tell you: go for happiness and not naked ambition. This applies to men too.
You can be many things if you are properly prepared. A necessity is that you speak comfortably in the English language. Mahinda Deshapriya, the Chairman of the Election Commission, says that in 15 years Sri Lanka will be ruled by the international school crowd. This is already happening. Uduvil is well-positioned as a private school in the non-assisted category, to contribute to those who will rule us soon!
*Speech delivered on 15 Feb. 2017 at the A. Level Union Annual Luncheon at Uduvil Girls’ College; established in 1820 by American missionaries, and the first girls’ boarding school in Asia:
AL Union President, Ms. Arani Balasingam; Madam Principal, Patricia Jebaratnam; Guest of Honour, Ms. Shivani Vasanthasenan; Distinguished Teachers; Honoured Representatives from other schools; and dear Uduvil-Ladies – the leaders of tomorrow.
You will soon go out into the world. For many Jaffna girls, marriage to a professional is the highest aspiration. You are probably brought up on this limited vision instilled by Jaffna society. Indeed, Uduvil was founded to provide educated Christian brides to the men-converts. The school provided the dowry too.
I tell you, being happily well-married is something that all of us should aim for, men and women. However, marriage does not preclude a successful professional life. Our professional life can be balanced with our family life. That balance requires a good partner. I would go so far as to advise, do not fall in love. That is emotion. Marriage is approached with calculation. Once you marry well, love will surely follow.
When my mother asked me to marry my wife, I had not seen her; not even a photo of hers. She was then B.Sc., M.Sc. I said to myself, “She is obviously serious about things. She will help bring up good children.” We both said yes. We met first on a Sunday and were married by Wednesday. We have both done well. My wife did her doctorate under Nobel Laureate George Olah. But she moderated her career between being a professor, mother of 5, and wife.
My own mother earned her B.Sc. London in double mathematics, and logic and methodology with first class honours through private study. My father married her merely on my grandfather’s letter to him. She too balanced career and home. I tell you: go for happiness and not naked ambition. This applies to men too.
You can be many things if you are properly prepared. A necessity is that you speak comfortably in the English language. Mahinda Deshapriya, the Chairman of the Election Commission, says that in 15 years Sri Lanka will be ruled by the international school crowd. This is already happening. Uduvil is well-positioned as a private school in the non-assisted category, to contribute to those who will rule us soon!
My message today is about a new opportunity for women. I am not speaking about women as soldiers or as priests. I believe we are all, both men and women, equal as persons in the sight of God. We are not, however, equal in function; certainly not in weight lifting. We have distinct strengths.
I do not wish to argue the matter of women priests as I am sure that some Christians here are committed feminists. Hindus here, however, are not burdened by political correctness and thankfully I have heard no cry for women Iyers. After such a sumptuous lunch, it is best that I confine myself to that on which we may agree.

EXCLUSIVE - China 'Silk Road' project in Sri Lanka delayed as Beijing toughens stance

FILE PHOTO: Demonstrators react as police uses tear gas at a protest against the launching of the $5 billion Chinese investment zone by China Merchants Port Holdings Company in Mirijjawila, Sri Lanka January 7, 2017. REUTERS/Stringer/File Photo--FILE PHOTO: Police used tear gas at demonstrators during a protest against the launching of a $5 billion Chinese investment zone by China Merchants Port Holdings Company, in Mirijjawila, Sri Lanka January 7, 2017. REUTERS/Stringer/File Photo
FILE PHOTO: Demonstrator shout at police officers at a protest against the launching of a $5 billion Chinese investment zone by China Merchants Port Holdings Company, in Mirijjawila, Sri Lanka January 7, 2017. REUTERS/Stringer/File Photo

By Shihar Aneez | COLOMBO-Thu Feb 16, 2017

China will delay a planned $1.1 billion investment in a port on its modern-day "Silk Road" until Sri Lanka clears legal and political obstacles to a related project, sources familiar with the talks said, piling more pressure on the island nation.

Heavily indebted Sri Lanka needs the money, but payment for China's interests in Hambantota port could be held up by several weeks or months, the sources added.

After signing an agreement last December, state-run China Merchants Port Holdings had been expected to buy an 80 percent stake in the southern port before an initial target date of Jan. 7.

Beijing also has a separate understanding with Colombo to develop a 15,000-acre industrial zone in the same area, a deal that Sri Lanka was hoping to finalize later.

But Colombo's plans to sell the stake and acquire land for the industrial zone have run into stiff domestic opposition, backed by trade unions and former President Mahinda Rajapaksa.

A legislator close to Rajapaksa is also challenging the government's plans in court.

Now Beijing has linked the signing of the port deal with an agreement to develop the industrial zone, saying it would hold off on both until Colombo resolved domestic issues, officials on both sides of the talks said.

"China has said that when they start the port, they want the land also," Sri Lankan Finance Minister Ravi Karunanayake said, although he added that China had not made it a precondition.

Yi Xianliang, Chinese ambassador to Sri Lanka, said the two deals were related.

"If we just have the port and no industrial zone, what is the use of the port? So you must have the port and you must have the industrial zone," he said.

A source familiar with China's thinking said it may wait until May, when Sri Lankan Prime Minister Ranil Wickremesinghe visits Beijing, to sign both deals.

Chinese Foreign Ministry spokesman Geng Shuang said the Hambantota project was important for both countries.

"As far as we understand, at present the project is still progressing steadily," he told reporters in Beijing.
The previously unreported setback for Sri Lanka suggests Beijing is digging in its heels as it negotiates its global "One Belt, One Road" initiative to open up new land and sea routes for Chinese goods.
SPEED BUMPS, MOUNTING DEBTS

President Maithripala Sirisena is struggling to contain popular opposition to land acquisition for the huge Chinese industrial zone, including from Rajapaksa, who remains an influential opposition legislator.

The deal for the port development and industrial zone has also been challenged in court, which means it is stuck at least until the next hearing on March 3.

Asked whether the agreement would be delayed until the court had ruled, Yi, the Chinese ambassador, said: "Oh yes. We will follow the rule of law. We have the patience to wait."

Rajapaksa's role, the court case and violent protests by people afraid they could be evicted from their land underlined how Beijing does not always get its own way even in countries that badly need investment.
Sri Lanka wants Chinese money to help alleviate its debt burden; the government had expected to have the proceeds from the stake sale within six months of signing the agreement before Jan. 7.

Sri Lanka has been under pressure from the International Monetary Fund to cut its deficit, shore up foreign exchange reserves and increase tax revenues as part of a $1.5 billion loan agreement struck in 2016.

At least part of the money from the port deal would have gone toward paying down some of the more expensive loans on the government's books, some of which are from China, a senior Sri Lankan government official said.

Hambantota port and a nearby airport were built from 2008 by the Rajapaksa government with the help of $1.7 billion in Chinese loans.

When Sirisena unseated Rajapaksa in an upset victory in 2015, he froze all Chinese investments, alleging unfair dealings by his predecessor.

Sirisena eventually negotiated a new deal with the Chinese government that involved the stake sale and further plans for the Chinese to develop an industrial zone.

The Chinese government expects to invest about $5 billion to develop the area within 3-5 years. Sirisena also agreed to give land to the Chinese on a 99-year lease.

The terms did not go down well with port trade unions, which have asked the government to reduce the Chinese stake to 65 percent and lease period to 50 years.

Hundreds of protesters clashed with police in January when a demonstration against the planned industrial zone turned violent.

(Additional reporting by Ranga Sirilal, and Ben Blanchard in BEIJING; Editing by Mike Collett-White and Paritosh Bansal)