Budget has a welcome focus on the rural economy

The wellbeing of the people of this country is closely linked to the rural areas which have approximately 75% of the population. The rural economy encompasses all of our agriculture, and related activities, and fishing, and a raft of various rural-based SME industries – Pic by Shehan Gunasekara

Thursday, 29 June 2017

Good economics is to give priority to developing what we have now. Bad economics is to focus on dreams and to ignore what we have. It is that old saying that the bird in the hand is worth two in the bush.

Dreams are good. A lot of great innovation has come from dreams. The challenge is to get the right balance between developing what we have and pursuing the dreams.


Rural economy

The wellbeing of the people of this country is closely linked to the rural areas which have approximately 75% of the population. The rural economy encompasses all of our agriculture, and related activities, and fishing, and a raft of various rural-based SME industries.

The rural economy also includes the providers of services like education, health, and the administration infrastructure. They all live in the rural economy and are very much a part of it. If any segment of this economy is developed, the benefits will seep through to most parts of this economy.

The booming construction industry is desperately short of workers. They are willing to pay the level of wages required and to bring in foreign labour because the people in the rural areas will not come and work in urban industry. The Chinese are bringing in labour for their projects for the same reason. No takers from the rural areas.


The rural philosophy

What they are saying in effect is—“We are born here, our home is here, the society we want to live in is here. We do not wish to go and work as labour in urban industry. Please develop where we live and want to live. If you do not do this, we will vote for the party that will.”


Time to change the focus

All the excitement, with seminars, conferences, ministers given special responsibilities, etc., is about Free Trade Agreements, creating a trading hub (like Venice a few centuries ago!), seeking great benefits from the new Silk Road and the magic of the Port City.

All good aspirations, but none of this is going to make any perceptible impact on the economy within the next two or three years. And none of this razzmatazz will impress those in our rural economy as they do not see the link of how it will benefit them.

Before we come to believe that China is our Messiah, we should remember that China’s strategy is to secure the route oil has to traverse to get to China. They first build huggy-kissy relationships with countries on the route (now christened the new Silk Route) and then get two feet firmly entrenched in the ground in all the countries on the oil route, with unsolicited projects and soft loans.

We are not the only favoured son of China. Every country on the new Silk Route is also a favoured son. There is absolutely nothing wrong with this, as China must protect its interests. If it does this whilst pouring in some development investment it is a win-win situation for both sides.


Democracy

The great thing about democracy is that it’s the vote that decides who will rule. If the Government persists in largely ignoring the rural economy, when it comes to voting time the rural economy will vote against it.

Criticising the Rajapaksas has run its course. That will no longer win elections. Good to remember why Hilary Clinton failed and why Theresa May lost her majority in Parliament. They both focused on attacking their opponent. They failed to spell out what good things they would do for the country.


Green shoots

Welcome green shoots of a strategy with some focus on the development of the rural economy was seen in the former Finance Minister’s Budget. Some snippets from his Budget document:

“The medium term strategy of the Government is… development of rural economies, ensuring ownership of land to rural and estate sector working class.”

“Small and Medium Enterprises (SMEs) is a giant pillar in our economy with more emphasis on industry. We will concentrate on developing the sector with assistance including financial, marketing and other related facilities to nurture foster and develop such enterprises.”

“In our endeavour to upgrade the livelihood of the farming community, improved technology-based measures will be introduced.”

“I wish to begin presenting the Budget proposals with respect to the agriculture sector as a priority, given its importance to our economy, our society and our way of life.”

“Our Government is determined to support agriculture to transform itself from the low yielding, low income, few crop dependent, subsistence agriculture to commercial agriculture, raising income levels of farmers and developing small scale producers into big exporters.”


Funds to pursue this strategy

All development requires capital. It is the magic ingredient that sets in motion growth and development. The problem is that capital is the one thing that those in economic activities in the rural areas do not have and is the scarce resource that inhibits growth.

The former Finance Minister Ravi Karunanayake understands good economics and the need for capital. He also understands that the rural economy will have to borrow to get the funds and he also appreciates that at the prevailing high rates of interest it will be difficult to create viable businesses after paying these high rates of interest.

To address this problem he has provided for many innovative schemes of providing an interest subsidy of 50% of the interest.


Interest subsidy schemes

“I propose to provide a 50% interest subsidy to farmers, farmer organisations and agro processing establishments for upgrading the sector through infusion of productivity enhancing technologies and practices. I also wish to extend this scheme to the paddy sector as well… and also those medium scale rice millers who will invest in silo storages.”

He has provided Rs. 400 million for these schemes and to help farmers to improve mechanisation a loan scheme where 75% of the interest will be borne by the Government.


The fishery industry

This is an important component of the rural economy. Substantial funds have been allocated for a number of projects. Rs. 500 million to promote aquaculture industry zones. A cold room with a capacity of 1,000 tons, Rs. 100 million. He has provided Rs. 1,350 million to uplift the infrastructure of fishery harbours and Rs. 1,200 million to improve fishery villages in 10 coastal districts.


The SME sector

The key problem is the usual one of no finance and no collateral to get bank finance. To address this problem Rs. 500 million has been provided for a credit guarantee scheme and a 50% interest subsidy scheme for which Rs. 750 million has been provided.


The challenge is implementation

When he was Finance Minister, Karunanayake appointed a committee to facilitate implementation of the Budget proposals. A committee has no power to implement (that has to be done by the relevant ministry) but it can perform the very useful role of defining the processes that will speed implementation.

There was good progress on this front. The lack of a monitoring system was identified as a major drawback. This was addressed very quickly. Three things that retarded progress were identified. No trained project management skills, the difficulty of following the good procurement guidelines and a fear to make decisions.

There is an urgent need to create a pool of people with project management skills and to make them available to each Ministry that had major projects. The procurement function should be outsourced to the National Procurement Agency. They should do the tenders for every ministry. This is the area where there is greatest reluctance and fear to make decisions. It is now considerably aggravated by the fear that the anti-corruption agencies will descend on them.



Declare the policy to develop the rural economy 

There is no scope to dispute the importance of the rural economy to the country or its importance to any Government that wants to stay in power. Therefore it is essential for the Government in ringing tones to declare its policy for the sustained development of the rural economy.

There will be a question of credibility. To mute this it may be wise to pursue a quick start that touches most rural areas. The weekly pola is a rural community institution. Build hundreds of covered markets for the weekly pola. This could be used as a community centre as well. So put a TV in every market that is built.

Volleyball is a popular rural area sport. It requires a relatively small area and the Government should build thousands of volleyball courts across the country. Opening these markets and volleyball courts will provide the politicians an opportunity to interact and spell out the wider commitment to the rural economy

I and many others believe that the rural economy is the heartland of this country and to optimise the wellbeing of the people, the focus on development should be the rural economy.

This strategy does not appear to appeal to the Government. However it is hoped that the desire to remain in power will drive them to focus on the rural economy.

Nation Destroyed Beyond Redemption

By Nagananda Kodituwakku –JUNE 29, 2017

Nagananda Kodituwakku

It is beyond belief why my fellow countrymen still have faith in this absolutely failed state (both ruling party and the opposition). The biggest threat to the Nation is the hopeless attitude of the so-called intelligentsia that benefits from the failed system. It is extremely sad that they deceive constituents, inducing them to have faith in the corrupt system that made this beautiful island nation a FAILED STATE.

As a responsible citizen I can say with confidence that the governance is dishonest and immoral and the Judiciary is sidelined. Those who occupy office in the other two organs are threatening it. Recently PM Ranil Wickremesinghe launched a stringent attack on the Judiciary, claiming that the Judiciary does not have the judicial power and the Judiciary is trying to hijack Parliament’s judicial power. This is absolutely false and irresponsible statement that no prime minister of any democracy should make.

Please understand the power conferred in you, the people, under the Constitution. In this country supremacy over all organs is in YOU, the constituents, and not  in any body else. This power is called ‘sovereignty’ and it includes legislative power, executive power, judicial power, franchise and fundamental rights. And this power cannot be taken away unless YOU surrender it to somebody, which can only be done with a mandate given by the people at a referendum.

When the Legislature and Executive corrupt there is no hope

The former President Mahinda Rajapaksa should be held with the full responsibility for destroying the rule of law in this country and for undermining the integrity and independence of the judiciary. Introducing, a draconian law 18A, he took the judiciary under his direct control and appointed his subservient servants to the highest office in it simply according to his whims and fancies.

Those who blame the UN, those who want to have a firm grip in the Constitutional Council that recommend appointment of judges to the Court of Appeal and the Supreme Court, thereby causing a tremendous damage to the independence of the Judiciary, should realise that there is no point blaming the government now for co-sponsoring resolutions in Geneva. Because it is the people, who lost trust and confidence in the Judiciary, complained to UN Human Rights Council. It only reduced people’s viewpoint in the resolution exposing the lacks any accountability in the justice system in Sri Lanka.

Robbing the Nation by the two organs and encouraging others to follow

The MP tax-free car permit abuse is not just another case exposing govt corruption. It is a case of paramount importance for a reason. People should understand that when the lawmakers themselves become criminals, such a country is bound to fail.

The relevant law allowing tax relief says that tax exceptions can be granted having regard to the economic development of the country, another words in the pubic interest. And nowhere the law says that the exemptions could be abused to defraud tax and to share the same with third parties. Most people holding public office in the Legislature and the Executive just did that and the irrefutable evidence was filed in the Supreme Court.

Excise special provision Law Section 3CHowever, with no regard or respect to the law governing tax exemption, on 01st June 2017 the Yahapalanaya regime, introduced another Circular with a clear stipulation that those who are granted tax exemptions to import motorcars are free to defraud the government revenue as they please (extract of the law and the regulation reproduced below). Who are the beneficiaries of this sham tax exemption offered to public officers under the new permit scheme; it is the motorcar import dealer network in this country with a bribe offered to the public officer who sells the permit for 2.2 million rupees.

The stipulation as provided in the relevant Treasury Circular dated 01st June 2017 is reproduced below:

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Recommendations for disaster management



2017-06-29

Sri Lanka has had several disasters in the past, but yet to see a proper contingency plan. As a result many human lives are lost and severe damages caused to private and government properties.
Politicians and officials who suppose to act during disasters must consider it as a privilege and opportunity in helping the affected people and pre-plan to face such situations.
I saw several announcements through the media advising people to evacuate from certain areas. Have the people being told in advance where to go, what to take and other things to attend before evacuating.
Once Load Buddha saw a row of Black Ants and slightly smiled and when Ananda Thera inquired why, Lord Buddha said each and very Black Ant had been a Sakvithi King in an earlier birth. Anyone not doing good karma can go to hell in the next birth irrespective of whatever position he now hold.
One need to be intelligent to understand the danger and suffering in this long samsara journey.  
I mention below in brief my recommendations under different headings.

A doctor and at least 2 nurses with adequate medical equipment and drugs should be made available at all refugee camps during activated period. Arrangements must be made to have the services of an Ambulance 

AWARENESS

All people in identified areas should be made aware in advance by pasting a notice in all such houses informing them the place allocated for them to go for shelter and advising them what should be taken along with them including documents. Issue them identity cards for identification. Issue life jackets to each persons with instructions. Paste notices, re-important contact nos. to contact before or during disaster. Paste notices on how to protect properties of people leaving their houses.

MANAGEMENT OF REFUGEE CENTRES:  

Refugee Centres in each Divisional Secretarial area should be identified and attend to have a record of how many male and female refugees can be accommodated. Plan temporary separations for changing cloths. Install permanent generators.Prepare names and addresses of people with their working skills to be accommodated and copies to be given to Divisional Secretary, Grama Sevaka and Head of Centres. Obtain the consent of the Heads of Centres. Identified skilled persons can be used to attend to electrical, Plumbing, Civil, Cooking work etc. Construct male female toilets on permanent basis with water Tanks, Shower cubicles, Store Rooms, working staff accommodations, Doctor room with the clinic & sick room, Kitchen. Install temporary Radio communication sets. Lockers to take charge valuables and store during occupation. Temporary make available water & gully bowsers when activated. Deploy security staff 24 hrs at entrances. Adequate staff to manage during operations, Government officers can be detailed similar to election duties. Provide adequate lights, plug points etc.. Install TV in a common sheltered area during operations or permanently. Keep notice of all important Agencies to contact for assistance. Provide adequate Holdalls to each person with pillows & sheets when possible. Provide separate areas or tents for each family. Activate operations centres for 24 hrs. Managed by the Police and Grama Sevaka. Whenever possible a study Room for students. Receipt books and registers to acknowledge all donations. Appoint committees consist of Head of the centre, Police, Grama Sevaka, Important few Civilians in the area to meet daily and monitor operations of the Centre and take suitable action when necessary. Provide Petty Cash imprest through the Divisional Secretary.  Common standing order! Circular must be issued to all centres re- its management.

ROLE OF THE DIVISIONAL SECRETARY  

Each office must have a generator in case of electricity failure. D.S. Offices of all affected areas must have additional building with space for storage of goods such as cooking utensils, Holdalls, Tents etc., with a room for the Divisional Secretary to rest who should be on 24 hrs duty. Should prepare a standing order/Circular giving Divisional Secretaries more powers in spending, hiring etc., during disaster period. Have detailed lists of all people with addresses their skills, contact nos, under each refugee Centre under each Divisional Secretary. Identify the requirement of staff to each Centre and how their services can be obtained. Identify the requirements of vehicles, logistics etc., and how and from where they can be obtained or hired. All emergency and contacts where services can be obtained. Activate the operation Room for 24 hrs. Have a Radio communication set installed permanently. Prepare common standing orders, circulars re-the responsibilities of Divisional Secretaries and Grama Sevakas during disaster period. Have maps of affected areas indicating the refugee centres, place of floods, Landslides etc., with the number of female, males to be given shelters. Appoint officials to accept donations manage stores, distributions and maintaining records and issuing receipts for all donations. Provide Petty cash to each centre with a standing order to manage. Prepare lists of requirements to each centre including repair work and how and from where such facilities can be obtained. Have a list of stand by Electricians, Plumbers, Civil workers, Generator Technicians etc., to obtain services during affected period on payments.

DISASTER MANAGEMENT CENTRE:  

Activate the operation room 24 hrs with representatives from all government and private agencies involved in disaster management work. Have adequate telephones and radio communication sets of Police, 3 forces etc., operated by those officers. Maintain all records of affected areas including people and properties. Appoint a Media officer with staff. Arrange daily discussions. Prepare a standing order/circular as to how the Management Centre should be operated. Appoint staff to obtain foreign donations, store and issue through the relevant officials. Rent or purchase .a large stores to store all foreign donations and other purchased items which can be used during a disaster. Prepare a detailed work plan re-prevention of disasters in consultation of professionals and ensure implementation. Appoint a team of Architects, structural engineers, Civil Engineers etc., to plan out to build houses on concrete coloums with costs and provide free professional services to public and when possible arrange bank loans and provide financial assistance. Prepare a detailed plan re-post disaster period for implementation.

COLLECTING CENTRES  

All private collecting centres collecting donations must be registered with the Disaster Management Centre in advance. A form should be issued for all who seek registration and the local police and Grama Sevaka should make their recommendation before accepting them as collecting centres.
All such collecting centres should be made accountable for all collected donations and the manner the distributions done.
A Circular must be issued re-the management of such centres and the records to be maintained. Collecting centres once registered should be issued with a registration number and a certificate.


A house damaged in the aftermath of the Meethotamulla collapse

RESPONSIBILITY OF POLICE  and military

Police at station, Division, Range and Police Head Quarters level must activate operational rooms. Sufficient Boats with life Jackets should be issued to all Police stations in affected areas since they will have difficulty in road transportations. All OIC stations should ensure protecting the lives of affected people and their property. Police personnel also should be deployed to provide security to all refugee centres and also to manage the operation room of such centres with a police radio communication set.
Officers of Armed Forces have carried out their duties very satisfactory in the past and will continue the good work on a more planned manner. However, the Army must be issued with adequate boats and life jackets to carry out their duties more effectively.

RESPONSIBILITY OF MEDICAL STAFF  

A doctor and at least 2 nurses with adequate medical equipment’s and drugs should be made available at all refugee camps during activated period. Arrangements must be made to have the services of an Ambulance in a short period to all centres. All government hospitals must have adequate staff, equipment, drugs etc.
I have given a very brief report above and recommend to appoint a team of Professionals and Administrators for study and prepare a detailed report indication and guidelines, instructions and logistical and human resources requirements etc., under each responsible person, organization, institution and refugee centres.

This subject should be treated as urgent and important in view of all damages caused to human lives and private and government properties.

Loss to Suvisiripaya exceeds Rs. 10 million..! No more govt. jobs to University students involved in violence and crimes !

(Lanka-e-News - 27.June.2017, 11.30PM)   Consequent upon the damage causing a loss of over Rs. 10 million  (based on reports) to Suvisiripaya of health ministry recently by the Inter University  student Federation leaders along with members of the terrorism prone parties including Peratugami party  and JVP  ,  the government has decided not to recruit University students who create mayhem and cause damage to State property , to government service no matter how well they had performed at the examinations . The reason for this is these monies lost due to the damage caused to Isurupaya were meant to be utilized towards  health services of the public.

In the past though probing into the antecedence of the  prospective candidate was a custom when recruiting individuals to the government service , the previous corrupt and murderous regime of the nefarious decade  did not follow it.

Britain which  introduced university  education to SL not to mention  the government service , still does not recruit candidates who were involved in robberies , violence and other crimes   to government service  or   the private sector though  those candidates possessed the highest qualifications . A  police report must be mandatorily obtained in respect of each candidate three months prior to his selection for the job . The criminal history of any individual can be obtained from any police in Britain within minutes. 

Meanwhile, the SL  police has also turned tough with regard to  the arrest of student leaders who caused wanton damage to State property , and disrespectfully harassed the  staff of the ministry who are older than these young hooligans . Meanwhile Dinesh Maduranga a former president of the main students’ union of the  University of Aesthetic studies was arrested at Siyambalanduwa.

The  Inter University students federation which  is foolishly dancing to the tune of the Peratugami party and the JVP stated by issuing a notice , this struggle is akin to that of  theirs of 1988-89  amidst  a tremendous  opposition mounted  against the students campaign , but  the stark fact  is , even an innocent  boy selling newspaper   was killed by the JVP and Peratugami  during that period of their so called ‘great’ struggle . 

The irony of it is , these students in the Universities now supposedly engaging in a so called ‘great ‘struggle were not even born at that time – 1988-89. Had they been living they would have known what cruel and senseless murders their mentors committed , and how many innocent lives were lost due to their folly and immaturity – all to no avail because the stupid insurgency was an absolute failure even after sacrificing precious lives of its countless youths who were its members. 

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by     (2017-06-27 22:11:53)

Australian Census: How Does It Compare?

What is important to note is that most of the Sri Lankan-born Australians/residents wished to identify themselves just as Sri Lankan (60%) on the ancestry response. This is good for reconciliation.

by Laksiri Fernando-Jun 28, 2017

( June 28, 2017, Sydney, Sri Lanka Guardian) We have a new snapshot of Australia today. The Census data 2016 came out this morning. According to the Australian Bureau of Statistics, this is the largest information gathering conducted in Australia that tells the people about their way of life and help them and the governments and the businesses to plan the future of the country.

I must relate an anecdote as a preface before starting looking at the information. Last 10th of August (2016) when I logged onto to enter our information around 9.00pm, there was an online outage which persisted. Unfortunately, it was a cyber-attack. Although it was fixed eventually, without any data loss or security of information, by that time I had asked for paper forms and we entered the census finally through the traditional way. This reminds all of us that whatever the new technologies we have at our disposal today, we must give room at the same time for possible difficulties/troubles. If this is true for Australia, it might be truer for Sri Lanka.

Overall Population Count

The Census has counted 10 million dwellings and approximately 23.4 million people. Most of the people live in the Eastern side; New South Wales, Victoria and Queensland being the most populated states. There was a time that the Australian population and the Sri Lankan population were par with each other. That was mid-1990s, of around 18 million. That time I used to say that Sri Lanka is like the whole of Australian population placed in the ‘tiny’ island state of Tasmania. Tasmania is the size of Sri Lanka. This is true given the population problem/s in Sri Lanka even today. It is possible that most of our other problems, antagonisms or conflicts (including our temper!) are due to this factor. Australian population has increased fast since then, due to immigration. It is an open country in many respects and not a closed one, although these policies are more measured today due to unfortunate international developments.

Although Australia is vast, people are gathered around cities and towns, except those who live in large farms or working in mining industries. Those who traditionally live in the countryside are mainly the indigenous people. This pattern is different to Sri Lanka as the population has traditionally been village communities. Therefore, there is no internal migration from rural to the urban in Australia, like in Sri Lanka. Most immigrants settle in major cities and surrounding urban areas from the beginning.

Australia’s population is aging like in many other developed countries or even Sri Lanka. The average age now is 38. It was 23 in 1911, 28 in 1966 and 37 in 2011. By the way, Australian first Census had started in 2011, like Sri Lanka, under the British. Average age of indigenous population is 23 in 2016. They are young and growing (with difficulties of course) comprising around 3 percent of the population.

Plurality and Diversity

As the Census reveal, almost half of the population is recent migrants, as they or at least one of their parents born overseas. Traditionally they came from the West, now they mostly come from the East. Australia celebrates its diversity. It is the most multi-cultural society in the world. I am not saying that Sri Lanka should invite migrants to make it more complex; our population is already tight. But we should be able to appreciate the diversity and plurality that we already have in the country. Tolerance is the most important. Australia is by and large a tolerant society except occasional road outrage or rarer racial slurs. These are unavoidable in any mixed society, gravity and extent might be the problem.
It is true that the present Australia emerged with atrocities to the indigenous people. However, that is the past and not the present. While their socio-economic conditions still prevail behind other communities, clear improvements are visible even through the present Census. More importantly, their past and the contributions are well acknowledged now. Their languages and cultures are recognized.

Australia is now called a nation of nations. Australians come from almost everywhere and around 180 countries are clearly identified. ‘Common humanity’ is easy to recognize. 300 languages are revealed at the Census, as spoken at home, including the sign language, and we still speaking Sinhalese at home. We have a neighbour family on the same floor of this apartment speaking Sinhalese, and just across the road are our friends speaking in Tamil at home.

We Australians have a high proportion of overseas born people (26%), compared to New Zealand (23%), Canada (22%) or the United Sates (14%). United Kingdom is not even closer to 14%. This is not Pauline Hansen’s ‘one nation,’ but a ‘nation of nations.’

Australia can still be considered a religious society, but moderately. At the Census, 60 percent have indicated religious affiliation. In comparison, Sri Lanka is a highly religious society, at the Gallop Poll 2008, 99 percent indicating religious affiliation. It is the third most religious society in the world in that sense. But this could be misleading, perhaps many of the present day non-believers indicating their religion at birth. I personally know hordes of them.

In contrast, however, Australia is becoming more and more secular, 30 percent having indicated no religious affiliation, including ourselves. Christians are still the majority (52%), composing Catholics (23%) and Anglicans (13%). Other practiced religions are Buddhism, Hinduism and Islam. The non-religion group has clearly increased from 22% to 30% within last five years. When I walk to the Blacktown CBD on Saturdays, I could see many Evangelical and Islamic groups propagating religion. No one cares or harms them. Even there is a small Buddhist bookshop on the main street, where I once found U. G. de Silva’s Buddhist paintings published in Malaysia. I had the opportunity to review them.

Housing Profile

Australians traditionally love for houses which they call home. The saying goes, ‘a man’s home is his castle,’ the woman apparently is neglected! The saying is old, now the gender equality prevails. Since recent times, as related previously by Dr Siri Gamage, housing market is getting tighter and tighter for the new generations. Nevertheless, Australia still is a nation of home owners. 31 percent of homes are owned outright, 34 percent owned with mortgage, leaving only 31 percent being rented. That is still a good indicator.

There are also people who live in caravan, cabin or houseboat. There are some pensioners almost permanently go on cruises in the Pacific or Southeast Asia. Our son recently suggested that to us to avoid the winter! Why not Sri Lanka also gets the country developed, without squabbling with each other too much, and allowing the ‘seniors’ to use such leisure and pleasure, at least going around the country by sea. It would be marvellous to disembark and embark at all the small ports around the country.

Let me get back to the topic and hard facts. The Census counted around 10 million households in the country; 72 percent were separate houses. Others were apartment, town houses and other structures. Town houses are not something common in Sri Lanka. Single family households were the most common (70%) in Australia while multiple (extended) family households were not rare, perhaps increasing. Due to increasing affordability issues, many young families prefer to live with their parents. Grannies flats are also popular on the other hand to look after old parents by young families in the same compound. By and large, the Australian society is a caring society. The Census also counted 47,000 same-sex couples, which might be rare in Sri Lanka or not revealed.

Our Sri Lankans in Australia

This piece might be incomplete, if something is not revealed about our Sri Lankans in Australia. As a multi-cultural society, Sri Lankans together and separately as Sinhalese and Tamils are well recognized. Sri Lankan migrants date back to the late nineteenth century, to work in the cane plantations and gold fields. By 1901, there were reported number of 609. Within the next century, by 2001, the number had increased to 53,610. During the last ten years, 70 percent of new Sri Lankan migrants have come under skilled category; another 17 percent for family reunion.

What was released this morning about the 2016 Census was the first round of data. Therefore, the exact number of the Sri Lanka-born population was not yet available, even after my few searches. But the last Census in 2011 counted 86,413 Sri Lanka-born, including us. This was an increase of 38 percent from 2006. Going by this trend, the present count could be over 100,000. Most Sri Lankans (over 50%) live in Victoria and that means around Melbourne. Around 25 percent in New South Wales (Sydney) like us, and perhaps around 10 percent in Queensland (around Brisbane) etc.

What is important to note is that most of the Sri Lankan-born Australians/residents wished to identify themselves just as Sri Lankan (60%) on the ancestry response. This is good for reconciliation. Only 18.4 percent as Sinhalese and 9 percent as Tamil. There were 4.3 percent others identifying their ancestry as English/Burgher.

The profile of the Sri Lankan-born Australians/residents generally is positive with few exceptions. Education profile is the best, over 70 percent having post-school higher qualifications. The average in the country is around 60 percent. Nearly 40 percent of them have degrees or even higher degrees. Among the employed, over 50 percent are in either skilled managerial/professional or trade occupations. Therefore, their incomes are also higher than the national average. Buying a good house, even under mortgage, is one of their ideals.

Is the Government becalmed?

Wednesday, 28 June 2017

Almost two years into its term, it is difficult to explain away the current Government’s lack of achievements on the economic front. I count the term of the Government from August 2015, rather than January 2015, because the focus in the extended first 100 days of the presidential term was on constitutional reform.

Slow on export promotion 

The Foreign Ministry was responsible for the principal economic achievement, the restoration of duty-free access to the European Union under GSP Plus. Some exporters read the signs correctly and prepared to ramp up the volumes and thereby exploit the opportunity. But the Government’s communications have been so confused that not all were ready. So it may be another few months until the results can be seen in higher export earnings.

Increase in, and diversification of, exports is the keystone of Sri Lanka’s strategy to reach upper-middle-income status. It is also a necessary condition for ensuring that development occurring in the overall economy translates into enhanced well-being of citizens.

In 1990-91, an average household devoted 60.9% of its expenditures to food. The most recent Household Income and Expenditure Survey showed that by 2012-13 this had declined to 37.8%. As people become wealthier, they spend more of their income on non-food items that may be described as discretionary: more on transport, more on pilgrimages and entertainment, more on health and beauty care and so on. Even within the food category, consumption shifts from carbohydrates to protein. In a small economy with a stunted manufacturing sector such as ours, the result is greater demand for imports.

For example, the demand stimulation caused by the “bribing” of the population in the form of salary increases for Government employees, higher Mahapola and Samurdhi payments and so on around the 2015 elections caused higher consumption of imported goods.

For example, one out seven cars/vans on the road in 2016 had been registered in 2015. More than one out of 10 three-wheelers and two-wheelers on the road in 2016 had been bought in the previous year. All these came from outside as did the associated parts, lubricants and fuel.

It is very good that people realise their dreams. This is what development is about. But if we do not export more goods and services to match the growth of imports, the currency will naturally depreciate. Combined with the Government not managing its finances properly (recall the election-associated handouts that caused the 2015 spike in demand?), we are likely to see inflation rising.

Now the discretionary goods that people were beginning to enjoy will tend to become more expensive. The voter who was made happy by being able to buy new stuff is now likely to become unhappy because the new stuff is becoming more expensive.

If an election occurs around this time, the ruling party is likely to get thrown out, absent another round of voter bribing using public resources and/or coercion. But thanks to governance reforms such as the independent commissions and Right to Information, this kind of chicanery will not be as easy as in the past.

Does the leadership of the National Government understand the problem? Definitely. Has it made discernible progress on increasing exports beyond recruiting consultants and writing reports? Appears not. One can only hope that results will start appearing in the next few months and years.

No go on structural reforms

Another thing the Government can do to energise the economy is to reform infrastructure services. For example, the Colombo Port had begun to slide toward inefficiency in the 1990s. The introduction of competition and private-sector participation through the SAGT public-private partnership in the late 1990s rejuvenated the port. The construction of the deep-water South Harbour and the second public-private partnership in the form of the CICT container terminal in the next decade further improved things.

Three benefits accrued to the economy: unlike other State-Owned Enterprises, the Port Authority does not demand support from the taxpayer; the increased volumes of containers trans-shipped by the three terminal operators constitute increased service exports; because of the volumes attracted by the efficiency of the terminal operators, big ships with direct sailings are attracted to the port. The latter benefits Sri Lankan goods exporters in terms of shorter time to market and lower costs.

Have any such reforms of sectors that can benefit the economy as a whole been completed in the past two years? Have such reforms been initiated? Appears not. Has any action been taken to at least stop taxpayers having to bear the burden of perpetually money-losing state-owned enterprises, despite an entire Ministry being created for that purpose? No.

When Ranil Wickremesinghe was Prime Minister the last time around, the Government he headed completed such reforms in multiple infrastructure sectors within its first two years (that was all it was given before the then President pulled the plug): the Sri Lanka Telecom IPO was successfully completed, bringing State ownership to below 50%; the international telecom services market was liberalised; competition was introduced to the fuel distribution market; the India-Sri Lanka air services market was liberalised.

But the timing was off. The benefits could not be seen by the time elections were called. For example, growth in the burgeoning BPO sector, just one new sector brought into being by that Government, kicked in only around 2006, after the people who did the reforms had been consigned to the opposition. But the reforms had been done. The thousands of new jobs that had been created and the millions in service export earnings continue to benefit the economy year after year.

Implications for democracy

Why is performance lackadaisical this time around?

Is it because the Prime Minister is working on a five-year plan whereby the results will emerge just before the 2020 elections? Because voters have short memories it may be thought that timing is everything.

Is it because he’s distracted by Constitution making and keeping the peace within an ungainly coalition? But recall he was dealing with Prabhakaran and peace negotiations back in 2002. Is it because the State machinery has been so weakened that it cannot deliver? Unspent allocations in Ministries ranging from Education and Disaster Management support this thesis.

Or that the current Government is incapable of assembling a team that can produce results at the required pace?

One can only hope for a mid-course correction that will produce results that people can feel in their pocketbooks before the next election. Otherwise the voter is going to revert to their feudal default thinking and say “enough with all this democratic nonsense that produces no discernible benefits to our well-being, let’s get ourselves a king”.

SAITM controversy stuck in a quagmire


2017-06-29

The South Asian Institute of Technology and Medicine (SAITM) or the Malabe private medical college issue seems to have reached an impasse. The government and the Government Medical Officers Association (GMOA), the main contenders are intransigent and sticking to their respective stances on this matter. The GMOA is demanding the closure of the private medical college, while the government is rigidly opposed to such a demand.  

If the demonstration and the storming of the Health Ministry office at Maradana by medical students last week on this matter were aimed at attracting public attention to their struggle, they had achieved it, irrespective of whether they were able to muster any more public support with such unruly behaviour. The same question applies to the subsequent work stoppage by the GMOA on the next day over the SAITM issue and as a protest against the attack on the demonstrating students.

The SAITM issue has been highly politicized with the leaders of the previous government led by former President Mahinda Rajapaksa who had provided loans and scholarships to the SAITM now taking a 180 degree turn and supporting the struggles by the university students and the government doctors. Therefore people, like the demonstrating students and the doctors have also have taken a stance on this matter in line with their political party alignments and seem to be unable or refusing to look at it objectively.  

Hence, it is difficult now for the doctors and the students to muster more support to their “struggle” through demonstrations and strikes that have become exceedingly annoying and inconveniencing the people. And the government is also struggling to contain the situation while attempting to justify its stance. After all, the situation is such that it has surpassed the limits of intellectual discourse and entered a stage of might is right.  

The media was divided in reporting last week’s students’ demonstration inside the Health Ministry premises with some of them showing images of the pandemonium that reigned inside the premises while the others, especially the State media highlighting the damage done to the ministry buildings and the vehicles parked in the premises.  

The doctors, students and opposition politicians condemned the government for the “brutal” attack on the students while conveniently ignoring the vandalism and the unruly behaviour by the students. However, the students did not deny allegations of vandalism either. The STF Chief alleged that the STF personnel who were admitted to the Colombo National Hospital (CNH) after being injured while attempting to quell the violence during the demonstration had not been treated even after three hours by the doctors on duty. This had compelled him to take the injured personnel to the police hospital. This allegation of course had been denied by the CNH Director.  

State media, on the other hand highlighted the hooliganism by the students while being indifferent to the severity of the attack on the students. Meanwhile, the politically divided masses are also attempting to justify their respective views without looking at the incident objectively.  

Negotiations on the matter are being held apparently to impose the rigid view points of one party on the other and not to arrive at a consensus through a compromise. If the compromise is considered always as a defeat, there cannot be a solution to any problem. This is a very unfortunate situation. It will further encourage the respective parties to cross the “Lakshman Rekha” whenever they want to and aggravate the situation even further.  


The respective parties now have to look at the issue afresh. They must give up their egos and dogmas as the SAITM issue appears to be taking the country, though slowly at the moment, towards a situation like the one which prevailed in 1988/89, because it too is being highly politicized.   

IGP falls asleep during PM’s, minister’s speeches! 

Jun 28, 2017

Senior and junior members of the police from across the country, including those from the Narcotics Bureau, participated in an anti-narcotics seminar at the BMICH in Colombo yesterday (27). It was chaired by the prime minster and also attended by law and order minister Sagala Ratnayake.

Arriving a bit late, just before the PM started his speech, IGP Pujith Jayasundara fell into a sleep that was made easier by the air-conditioned comfort and without the presence of the menacing mosquitoes.

The PM thought the police chief was listening to his speech intently with his eyes half-closed. Up next was the speech by the subject minister. Jayasundara remained in the same posture during that too.

Several times, Ratnayake stopped his speech and took a look at the IGP, and indicated with his eyes to other top officials how their chief was napping. Upset by that, several of them sent SMS messages to Inspector Prasanna Brahmana, the IGP’s personal security officer who was seated right behind him, asking him to wake the chief up. Getting no response from him, they took a look at him and saw that he too, was asleep. Minister Ratnayake observed that as well.

After the minister finished his speech, Jayasundara suddenly woke from his sleep and saluted him. But, the minister took no notice of him and left. A shamed police chief told his juniors “Had a little nap. Did the minister notice?” They replied, “We tried to get your PSO to wake you up. He was worse than you, sir.”

Sri Lanka: Rajapaksa in Pakistan — Lesson Learned or Lesson Taught!

Despite any political agenda, the country and region should not be put in danger by liar’s paradox in this interesting time of growing populism around the globe.

by Nilantha Ilangamuwa-Jun 28, 2017

(June 28, 2017, Colombo, Sri Lanka Guardian) According to Rajapaksa the Tamil Tigers never had an ideology; that’s what he tried to emphasize in a recent talk in Pakistan. Out of thousands of hundreds of thoughts and dozens of questions, there was one significant question from audience Rajapaksa has struggled to find an answer to. That is about despite jurisdictions, it is time for China to join SAARC. In his answer, Rajapaksa shows either he doesn’t understand the question or he tried to avoid answering what one could see as the hot topic.

Rajapaksa was in Pakistan on the invitation of the Center for Research and Security Studies (CRSS), a think tank mostly funded by Western countries and Global Village Space (GVS). Rajapaksa in his speech attempted to hammer the so-called influence by Western countries against his unique and courageous governing method which expired two years ago democratically. In addition to that, he along with his former Minister of External Affairs, Gamini Lakshman Peiris mocked the human rights discourse, therefore, they have condemned the effects by the present collation government. It is clearly showing that they have evaporated significantly the non-alliance principles in our foreign policy.

The ill-prepared presentation has narrowed down the most committed and serious achievements of the recent history of Sri Lanka, the ending of three decades war. It has shown that the former President and his former minister are on a rampage of attacking the present government, instead of elaborating the factual and ground reality in the country.

Winning the war in Sri Lanka was a collaborative effort in which every country including many of the Western world enhanced their supports by providing technical and other assistances.

There is no doubt at the last phase of the war was challengeable and along with his former political allies, former President Rajapaksa was able to conquer the situation. If one could go nuances of the subject it was his brother who served as the Defense Secretary bold enough to even keep his choice of Army Commander, Field Marshal (Retired) Sarath Fonseka even under severe pressure to remove him.

There was well spread tittle-tattle among the military top brasses in the country, that there was a moment that former President Rajapaksa wanted to remove Field Marshal (then Lt General) Sarath Fonseka from coming to the army but former Defence Secretary warned him (The President) if you are going to remove him, I will step down as the Secretary as well. Bottom line is that once close colleagues are now the top foes just because of the political path they have chosen as the leading architects of vanquishing Tamil Tigers. This dual combination has yet unearthed deeper story to tell on the elimination of the Tamil Tigers. Unfortunately, most of them who talked about significant events are deliberately or mistakenly trying to achieve political advantages which in fact is disadvantage in the present context.

Things have been rapidly changing. Paths of those who strongly engaged in the mission have parted in last eight years. One of strongest governments in Sri Lankan history headed by Rajapaksa has to close its doors two years prior to completion.

What has happened in last two years? President Rajapaksa went home, the new government headed by the once trusted man of Rajapaksa came to power by establishing one of most remarkable and attractive collation government, and Former President Rajapaksa has sneaked to the Parliament as the Member of Parliament. He is doing his best while instigating internal conflict within the political party which stood him up as the leader. It is very hard to say that he is dreaming to become leader of the country again but he along with his political allies is doing their best to sabotage the present government and make the leadership irrelevant.

Meanwhile, former President is invited to teach lessons that Pakistan can learn from Sri Lanka’s struggle after eight years of ending the conflict. Thoughts by former Pakistan High Commissioner to Sri Lanka Seema Baloch and former Defence Secretary of Pakistan, Lt. Gen. (Retired) Asif Yasin Malik the man known among the Pakistan army as a soldier to the core and a no-nonsense man, decorated the events by giving positive personal notes on Rajapaksa. Those are indeed formalities of any event.

However, most of the ideas shared by the guest lecture and others who joined hand with him targeted the enemy, the neighbouring country which prevented even the holding the SAARC summit in Pakistan. While selectively criticising the neighbour, speakers tried to drag China into account with positive note. At the same time, they selectively attacked the West irrationally.

On the one hand Pakistan along with Russia and China has drawn the governing plan for Afghanistan. On the other hand, China-Pakistan Economic Corridor (CPEC) has turned into not only economically beneficial bilateral agreement but also politically influential agenda. If Sri Lankan opposition carelessly indulges on this issue, then it will negatively affect the future of the country. The most important matter is not who is in power but matter is what he or she is doing when they are exercising power.

Antagonising one nation against another will not help to find the sustainable solutions for the serious geopolitical crisis in the region. Sri Lanka as the country that paid a heavy price for thirty years of violence, must articulate their version of social changes regardless of political beliefs and other selective multitudes when it comes to regional and international politics.

Former President may have learned the lesson out of the event he attained in Pakistan along with his son whose naval service has been suspended and others or he may think that he has taught a lesson on the “greater victory”. Truth is prevailing through persons who are having the last laugh.

Despite any political agenda, the country and region should not be put in danger by liar’s paradox in this interesting time of growing populism around the globe.

Army Commander post vacant for last 2 days ! - Blue Brigand crook Boniface running behind bigwigs to secure the post like stray dog after discarded bones !!

(Lanka-e-News - 28.June.2017, 11.00PM)  Following the appointment of army commander Lieutenant General Chrishantha De Silva as the chief of the security council  of the forces and his promotion as a four star general by the president yesterday (27) , the post of army commander fell  vacant .

After Air chief  Marshal Kolitha Gunatileke went on retirement , De Silva was appointed to that post , and he is slated to assume  duties as chief of the security council of the forces on the 29 th. 

Though the media reported that he will be discharging his new duties while also  acting as  army commander , there is no law in the country that permits such an arrangement ,   since he is relieved of his  previous post  at the same time as he is appointed to  the new position . In the circumstances as soon as De Silva was appointed by the president on the 27 th as the chief of the security council of the forces , his former post fell vacant on the same day. It is to be noted never in the history of Sri Lanka , an army commander’s post has been remaining vacant any day  .

A similar situation arose even with regard to the appointment of the Central Bank Governor . Following the resignation of Arjun Mahendran the ex Central bank governor , the country’s Central bank was without a governor for a day until Coomaraswamy replaced Mehandran.  Now , the country is without an army commander for the last two days. 

It is Major General Mahesh Senanayake  a talented army officer  who is next  in line on seniority . He was fully in charge of the plans and operations during the victorious war against the LTTE. He is an army SF soldier and a war specialist at local and international levels. When the reconciliation process was under way after the conclusion of the war , he displayed his exceptional abilities by  demonstrating how the army should play a role in the reconciliation mechanism.

Meanwhile based on reports reaching Lanka e news , infamous major general Boniface Perera who is not only a Blue Brigand rogue but a notorious  sex starved womanizer   ( about whose putrid antecedence including  corruption  and  malpractices , Lanka e news had been exposing over a long period) is running around in circles like a stray rabid  dog behind the country’s  bigwigs with a view to secure the post of army commander by foul means .

 A number of bigwigs of the East along with a Mussalman also from the same province have met with the president yesterday to request the president to appoint the notorious sex maniac and crook Boniface Perera as the new army commander , according to informed sources close to the president .

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by     (2017-06-28 20:01:28)

UNP-SLFP coalition hinges on bond scam probe outcome – Yapa-‘No point in remaining if UNP doesn’t take action against culprits’ 

By Shamindra Ferdinando-June 28, 2017, 12:00 pm

The future of the SLFP, UNP coalition hinged on the outcome of the ongoing Presidential Commission of Inquiry probing the Central Bank bond scams that had allegedly been perpetrated in Jan 2015 and March 2016, Enterprises Development State Minister Lakshman Yapa Abeywardena, MP, told Sirasa Pathikada programme hosted by Bandula Jayasekera yesterday.

The Presidential Commission began its sittings in January.

Saying that the SLFP decision would be certainly influenced by the Presidential Commission report, State Minister Abeywardena said the SLFP Central Committee would make a final decision.

Asked whether the SLFP would be agreeable to extend the coalition with the UNP in case the Presidential Commission had found fault with former Central Bank Governor Arjuna Mahendran and the UNP for complicity, State Minister Abeywardena said the SLFP expected its partner to act on the Presidential Commission findings.

State Minister Abeywardena emphasised that the SLFP was ready to quit the coalition immediately if the party’s Central Committee made a decision to that effect.

"There is no point in remaining in the government if the UNP didn’t agree to punish those responsible in accordance with the Presidential Commission’s findings."

Secretary to the Presidential Commission Sumathipala Udugamasuriya recently told The Island that the report would be handed over as scheduled to President Sirisena in late July.

The Joint Council comprising members of the UNP and the SLFP is expected to discuss the renewal of the Memorandum of Understanding (MoU) reached in Aug 2015. The JC comprises (UNP) Kabir Hashim, Mangala Samaraweera, Malik Samarawickrema, Harin Fernando, Ravi Karunanayake, Ravindra Samaraweera and Thalatha Atukorale and (SLFP) Mahinda Amaraweera, Anura Priyadarshana Yapa, S.B.Dissanayake, Lasantha Alagiyawanne.

State Minister Abeywardena described the appointment of the Presidential Commission as a tough decision taken by President Sirisena.

According to Minister Abeywardena, the appointment of the Presidential Commission had been recommended by an SLFP committee and there were some recommendations not yet revealed by the party.

State Minister Abeywardena said that the SLFP had appointed the Presidential Commission of Inquiry instead of a Special Presidential Commission as the recommendations/findings made by the former weren’t required to be subject to police investigations. The Attorney General could immediately act on Presidential Commission hence the decision on the procedure, State Minister Abeywardena said.

State Minister Abeywardena pointed out that in the wake shocking revelations made at the Presidential Commission, ministers had conveniently remained silent on the bond scams.

The Central Bank, Perpetual Treasuries, Employees Provident Fund (EPF) as well as some banks are under investigation.

State Minister Abeywardena said that the public believed the bond scam had caused massive losses to the state was a robbery.

The appointment of the committee prevented propagation of various theories, the State Minister said.

President Sirisena intervened following widespread criticism of the government appointing a three-member panel to inquire into the alleged scam. President Sirisena thwarted Committee on Public Enterprises (COPE) presenting its report on bond scams by dissolving parliament in 2015. The President’s move drew strong criticism from the Joint Opposition comprising rebel UPFA members loyal to former President Mahinda Rajapaksa.

In addition to the Presidential Commission, on a directive of President Sirisena, SLFP General Secretary Duminda Dissanayake has lodged a complaint with the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) in early 2015 regarding alleged bond scams.