Sri Lanka’s Sovereignty & Economy Confronting An Impossible Trinity

By Ameer Ali –SEPTEMBER 1, 2017

Dr. Ameer Ali

An India-U.S. geostrategic and neoliberal economic alliance on the one hand and an aspiring-to-be world power China on the other, with a financially empowered neoliberal economic manager, IMF, acting as a third form an impossible trinity that is redefining the political sovereignty and economic destiny of many smaller nations. A debt-burdened but resourceful post-war Sri Lanka with its strategic location in the Indian Ocean is a classic victim of the pressures exerted by this impossible trinity.

When the Sri Lankan army defeated the LTTE in 2009 I described that victory as comprehensive and absolute but Pyrrhic. It was pyrrhic not simply in terms of the enormous losses, both in terms of economic resources and human lives, which were immediate, but more importantly in terms of the long term damage that the war, which was totally unnecessary to start with, was going to cost to the country’s sovereignty and economic future. This may not have been obvious at that time and certainly was not a serious concern for the victors who were physically and emotionally basking in schadenfreude, but now and within less than a decade the real cost of the war is beginning to bite politically as well as economically.

The situation that Sri Lanka is facing now is somewhat analogous, although on a tiny scale, to that of the U.S. and its allies in the aftermath of their Pyrrhic victory over Afghanistan, Iraq and Libya.  Of course to them it is not a question of national sovereignty, which in any case has to be redefined in the face of globalization with porous territorial borders, but rather the problem of domestic security in their countries that has become a nightmare. The imperative demand to secure borders and local population from so called terror attacks which ceaselessly consumes huge amount of unaffordable dollars at the expense of other more vital needs of the society such as education, health care and welfare support to the vulnerable has brought home to policy makers the real magnitude of the high-priced victory. Even though the Western leaders don’t want to admit it openly, yet, the fact remains that the steeply rising security costs are threatening to jeopardise the much touted neoliberal economic model. In that sense at least one of Bin Laden’s promises to “bleed the U.S. to the point of bankruptcy” (he said this in a videotaped speech sent to Aljazeera on 1 November 2004) may be nearing partial fulfilment.

Sri Lanka’s political sovereignty and economic destiny have been virtually compromised by successive governments since the 1980s partly because of growing geopolitical pressures in the Indian Ocean and partly because of financial indebtedness to foreign lenders, both of them are closely linked to the civil war.

In spite of Sri Lankan’s military superiority acquired through costly state-of-the-art weaponry and aggressive recruitment of soldiery that war would have prolonged even further had it not been for the covert but decisive role played by India. Future historians with access to the now secret documents on the war will have more to say on the crucial Indian variable. Delhi was prepared to betray the political support of Tamil Nadu and sacrifice the lives of thousands of Sri Lankan Tamils not because Delhi loved the Sinhalese but because of India’s strategic interest in the Sri Lankan economy and her maritime waters. Similarly, China’s support during the war was also coloured by her own national interest to gain market and add one more pearl to her string of military and commercial facilities along the Indian Ocean. These hard facts are now being openly displayed in the various economic and strategic deals that are being signed between Sri Lanka and India on the one hand and Sri Lanka and China on the other. The actual outcome of these deals are more to the advantage of the foreigner than to the local.     

Economically India is slowly but surely proceeding on her long term mission to convert Sri Lanka into a profitable enclave for Indian capitalists. At the same time, geo-strategically India’s desperation to gain a long term leasehold over the Trincomalee harbour like her leasehold over Mattala airport are measures to counter the growing Chinese influence in the island. The 99-year leasehold over the Hambantota harbour granted to the Chinese government was a payback to Chinese weaponry used in the war and financial support to the island’s infrastructural development. China also has been awarded the contract to redevelop the Colombo Port city. Just as India wants to keep the Indian Ocean Indian in every sense of that name so also Beijing wants to safeguard her trade routes along a new silk road over the Indian Ocean which has now become crucially vital in the face of tensions in the Pacific between Washington and Beijing. In this new geopolitical great game Sri Lanka is bound to face situations when she will be forced to make a choice between two or even three – if one includes the U.S – confrontationists. It will be a cruel choice that will tax Sri Lanka’s diplomatic skill to its extreme. Will that also endanger her sovereignty?

The IMF, the third of the impossible trinity, is a different kettle of fish. Its sole mission is to train Sri Lanka as an obedient pupil of the neoliberal economic school. As the supreme institution of the neoliberal economic order IMF has invariably become the handmaiden of Washington and the Wall Street. If getting economic and financial assistance from India and China becomes too onerous the only other source available to Sri Lanka is the IMF, but that supremo has its own conditionality attached to its wallet. The so called structural adjustment program and austerity measures assiduously preached by the IMF ultimately benefits the rich at the expense of the poor. Broadening the tax base by shifting from direct to indirect taxes, privatization of state owned or state managed enterprises, operation of an untrammelled free market, freedom for foreign multinationals are some of IMF’s cure for national economic ailment. The recent IMF $167 million tranche to Sri Lanka carries with it some of these conditionality. The usual IMF mantra of short term pain for long term gain has not worked in any of the counties that sought IMF assistance.  If Sri Lanka refuses to play by the IMF rules, then there the international credit rating agencies that are IMF’s subsidiary managers who will punish the nation by down grading its credit rating so that other international lenders will keep away from assisting the nation. 

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Is SC registrar Maheshi being a sister of SC judge Priyantha influencing decisions of judges ? Ranjan’s statement to be deliberated - CHR Sri Lanka

(Lanka-e-News - 30.Aug.2017, 11.55PM)  The Center for  Human Rights which issued a communique  is to deliberate on  whether  the statement made by Ranjan Ramanayake that Maheshi Jayawardena (who is a sister of Priyantha Jayawardena  a Supreme court judge) by functioning as the registrar  of the Supreme court (SC)  is bringing pressure to bear on decisions of judges in regard to the cases of the powerful ,is prejudicial and whether Ranjan’s statement can in fact have that prejudicial effect.  

The Center for  Human Rights issued this notification on the 29 th,  following the attempts made to file a contempt of court case by the Bar Association of Sri Lanka  (BASL) of which the president is U .R. De Silva  over the statement made by Ranjan Ramanayake that a majority of the judges and lawyers in Sri Lanka are rogues. Interestingly U .R .De Silva  is also the lawyer for notorious Basil Rajapakse whom the former argues is not a rogue.

The full text of the communique is herein… 

Chairman of the Bar Association of Sri Lanka (BASL) UR de Silva states that they will take legal action against MP Ranjan Ramanayake in the coming week for stating that attorneys are corrupt.

In any profession there are extremely clean and professional people as well as extremely corrupt practitioners. The same applies to the judicial service and Sri Lankan citizens have the right to criticize judges and attorneys, as they have the right to be critical of any other profession. There should be the freedom to do so and those being criticized must have the discipline to tolerate criticism.

MP Ramanayake's criticism is nothing new and it has been leveled against judges and attorneys by civil society activists, journalists and these criticism have been discussed by attorneys themselves and the judicial services commission.

Former Editor of Ravaya, Mr. Victor Ivan revealed the activities of Judge Lenin Ratnayake which shocked and surprised many. The behaviour of justice Abeyratne was equally shocking. The revelations on former Chief Justice Sarath N Silva by Victor Ivan would have led to a cleanup of the judicial service is a country that possessed a civilized, democratic and transparent governance. President Maithripala Sirisena himself revealed that former chief justice Mohan Peiris told him that he is willing to give verdicts that favours the government, if he was allowed to remain in his post. CHR complained to the Judicial Services Commission about the appointment of DMI Dissanayake who received an appointment as a magistrate and after considering our appeal the Commission decided not to give him the permanent appointment. The Anti-Corruption Front lodged a complaint about the elephant theft' allegations against magistrate Thilina Gamage and the manner in which he was granted bail was controversial. Now he has been suspended. Similar allegations were levelled against district judges Somaratne and Aravinda Perera and the Commission has taken steps regarding them. The reputation of the court was also damaged due to a series of allegations, including charges of sexual harassment, against Justice Sarath de Abrew, who committed suicide.

Ravaya has revealed that there were steps to change the presiding judge over the controversial 'sil redi' case. We must discuss what affects the judiciary more, obtaining judgments after changing judges? Lawyers who attempt to change judges or the statement given by MP Ramanayake. BASL was silent about the above mentioned incidents and did not intervene to clean up the system. However civil society activists, journalists and elected representatives are keeping this debate alive and MP Ramanayake has contributed to the discussion in his capacity.

Although BASL has forgotten of this case, the most discussed topic in the judicial sector is the conflict of interest situation regarding registrar of the Supreme Court Ms. Maheshi Jayawardane.   Her brother is a Justice and there were media reports that there were attempts to influence the verdicts of cases against powerful people. This allegation tarnishes the reputation of the judiciary.

How can a statement made by a MP and an actor, known as One Shot, a Justice Seeker, be more damaging to the judiciary than any of the things mentioned above?

A responsible society does not shoot the messenger. It understands the message and takes steps to make things better. We must consider with an open mind whether the MP Ramanayake’s statement is more damaging than the opinions on Sarath N Silva and Mohan Peiris expressed by many prominent Sri Lankans. Did Ramanayake do more damage than allegations of conflict of interest faced by the Registrar of the Supreme Court?

No, it does not!

To enhance the respectability and trust on the judicial service we must drain this swamp as the former Ravaya Editor says and we iterate the importance of BASL being a part of the solution.

CHR Sri Lanka

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by     (2017-08-31 01:36:31)

This is not enough, not at all We have to mobilize and fight for more!

DR.Vickramabahu Karunaratne-2017-08-31

Some say the resignation of Minister Ravi Karunanayake due to a suspicion created in the issue concerning the Central Bank bond scam is a gallant step and it created an example to everybody.
In particular the entire episode shows against the political opponents of the Yahapalana Government whom it accused of far worse wrongs. Latter includes fascistic murder of media men and groups of minority people. Democratic masses that support the government are happy that the reforms it has instituted, in particular to empower State institutions to act independently are being used more resolutely by those who wish to undermine it than by the government itself. Two examples would be the protests against the lease of the Hambantota Port to China and the SAITM private medical school, the grounds for both of which were laid by the previous government. Making use of free media and the democratic establishment pro- opposition political and social organizations created anarchy. However, in the end Yahapalanaya in a fair game won the battle.

When the electorate voted at the presidential and general elections for change of government, they did so because they understood that Mahinda Rajapaksa regime was a fascistic menace. Also promises that the new government leaders and democratic activists made were ones they could identify with. The pledges to bring before the law, those accused of brutal fascistic killings such as Lasantha, horrible racist violence such as Beruwala, war crimes, vast corruption and abuse of power under the former government and to institute good governance by reinstating the rule of law took centre stage in the government's election campaign. Today the disillusionment of the electorate is primarily due to these promises not being delivered. Their disillusionment is increased by the failure of the government to deliver economic benefits to the masses who are struggling to keep afloat amidst the rising cost of living. However, people are willing to keep faith and push the government forward as shown by the very successful sathyagraha recently launched by the 'Sixty Two Movement.'

It is correct to say that despite the failures of the government it has support. Its continuing strength comes in two ways. The first is that the brutal truth is there is no alternative; Mahinda clan is no alternative at all. Hence people continue to hope that Yahapalanaya will deliver on its promises, as they have no alternative to go, as good governance and the protection of human rights too, are their goals. The second is that the government has delivered on the most important aspect of governance, which is to give them a sense of security that their human rights will not be subjected to arbitrary violation. In particular women have come forward to be in charge of the rights won. On the other hand, minority communities feel they are free and treated as equals. During the period of the last government this latter fear was widely prevalent. Even people in business, and those at the grassroots equally felt uncertain; who were far from the centres of power, feared for their lives on this count. They felt that there was impunity in the system and those at lower levels too, could take the law into their own hands. Such things are no more; relatively speaking everybody feel relieved. However, this is not enough, not at all; we have to mobilize and fight for more!

Banking system outlook negative: Moody’s

  

• Says macroeconomic risks and worsening asset quality evident

Friday, 1 September 2017

Moody’s Investors Service says that the outlook for Sri Lanka’s banking system is negative, with both asset quality and profitability under pressure.

“The economy will only see a modest growth rebound as the Government’s fiscal constraints continue to limit public investment and private spending, despite stronger goods and services exports,” said a Moody’s Vice President and Senior Credit Officer Srikanth Vadlamani.

Moody’s conclusions are contained in its just-released ‘Banking System Outlook: Sri Lanka, Macroeconomic Risks from Weak Fiscal Position and Deteriorating Bank Asset Quality Underpin Negative Outlook’.

Moody’s outlook assesses five key factors: operating environment, stable; asset risk and capital, deteriorating/stable; profitability and efficiency, deteriorating; funding and liquidity, stable; and Government support, deteriorating.

“Credit growth was very high over the last two years, with the credit multiplier (credit growth/GDP growth) shooting up to an average of 2x over 2015 and 2016, up from 1x in 2014. As the loans made over this period start seasoning, asset quality will deteriorate. In addition, rising interest rates add to repayment burdens. However, increased loan loss reserves will provide some comfort,” says Vadlamani

“In addition, profits will come under pressure as higher funding costs offset the benefits from higher loan rates, while credit costs move higher,” adds Vadlamani.

At the same time, capital will remain stable as the banks are raising capital and reducing dividends to comply with Basel III requirements, though execution and market risks could derail fund-raising efforts. Under Moody’s baseline scenario analysis, capital, as defined by tangible common equity to risk weighted assets, will decrease to 7.6% at end-2018 from 7.8% at end-2016, without any additional equity raising.

The funding profiles of the banks are set to improve after weakening in recent quarters, as loan growth slows down.

Furthermore, Sri Lankan banks hold sizeable liquid assets to cover their liquidity needs and movements in deposits. The rated banks’ liquid assets averaged around 30% of tangible banking assets as of December 2016, thereby providing considerable buffers against funding risks.

On the other hand, a high debt burden and contingent liabilities relating to State-Owned Enterprises restrict the Government’s capacity to support the banks.

Whole country totally corrupt

How the open market economy corrupted everything-including political parties, the State and all professions

Within open market economy, Governments keep relaxing labour laws as incentives for investor promotion, who in turn take care of political parties and professionals
The State controlled economy was not for regeneration of private capital thus denying the development of “class conscious” capitalists


2017-09-01 

Recently in a live TV panel discussion, Deputy Minister of Policy Planning and Economic Development Dr. Harsha de Silva said this country as a whole is totally corrupt.

He complained that corruption was everything and everywhere and it was being only talked of superficially.

With corruption, he said politics had become so nauseating, he was disgusted and wouldn’t mind leaving politics.
What he did not say is that it is this open market economy that has corrupted everything including political parties, the State and all professions.

It is leaders of these corrupt political parties, the State and professionals, who design all plans and programmes and have them implemented in this open market economy to improve private sector profits.

Within this open market economy, Governments keep relaxing labour laws as incentives for investor promotion, who in turn take care of political parties and professionals.
It is for that sole purpose the Ministry of Development Strategies and International Trade (MoDS&IT) has stepped completely outside its responsibility of socio economic development and international trade to have the USAID with a heavily funded project to “Reform Labour Law”.

The project with USAID would go on till 2020. What have USAID and the MoDS&IT to do with our labour laws? They have absolutely nothing to do with labour laws in Sri Lanka and they shouldn’t have.

Everything related to private sector labour in Sri Lanka from policy to law and their enforcement is the total responsibility of the Labour Department under the Ministry of Labour. No other ministry therefore is mandated to intervene in any way in labour related issues. The Labour Department and the ministry works with the ILO for want of expertise as they decide.

Thus this intervention by the MoDS&IT with the USAID is an arrogant, unwanted intervention that needs to be paid serious attention to.

This deal between the USAID and the MoDS&IT spells out the fundamentals of the politico economic programme of this Government under PM Wickremesinghe. The whole approach of this Government which knows nothing else is plain open market economics with maximum “incentives” offered for Foreign Direct Investors (FDI). There is no development planning to decide where FDI should be channelled for the advantage of the people.

It is simply said FDI is necessary to establish factories for export manufacture. Deciding what is manufactured remains the privilege of the investor and not the country.

“Incentives” in this open market economy mean nothing other than “means for increased profits”.

This is what the Wickremesinghe Government’s “development” is all about.  Thus the proposed labour law reforms attempted by the USAID and the MoDS&IT has to be discussed within the larger canvas of Neo Liberal Economics in a country that has failed to establish an inclusive, secular and a pluralistic State for almost 70 years.

With the popular argument the post-independent mixed economy failed to develop the country, the shift to an open market economy was said to have lifted Sri Lanka to the status of a “developing country”. Yet for the last 40 years this country still remains a “developing country”.

The open market economy was introduced in a country that was ethnically polarising and moving into a bloody conflict. Within such polarising that created a dominant Sinhala psyche set for a protracted war, the State was gradually groomed into a Sinhala State. This had its impact in the economy, during the first thirty years after independence and thereafter in an accelerated form.

The State controlled economy was not for regeneration of private capital thus denying the development of “class conscious” capitalists. They remained a trader-dealer community. They behaved more as an ethnically conscious State patronised community that played politics with the Sinhala political leadership. It was this deformed and stunted business that led to the emergence of crony capitalism in an open market economy.

Meanwhile from the time of Colonial rule, organised labour that had the ability to pressure Governments, managed to consolidate their rights and privileges through numerous Ordinances and Acts. The ‘Labour Department’ itself was established under the ‘Indian Immigrant Labour Ordinance No. 01 of 1923’.

It was established initially to oversee welfare of Indian labour brought for plantation work. Compensation for workers who meet with accidents while on duty was accepted as important and made into law with the Workmen’s Compensation Ordinance No.19 of 1934. Trade unions were accepted and recognised legally with the State Council in November 1935 adopting the Trade Union Ordinance No.14. In 1939 the Maternity Benefits Ordinance No.32 was made into law by the State Council. After independence, the Industrial Dispute Act No.43 was adopted in 1950 by parliament. In 1954 the Shop and Office Employees’ Act No.19 was passed. With a strong politically organised working class the Bandaranaike Government was made to provide retirement benefit for the first time to the private sector employees with the adoption of the Employees’ Provident Fund Act No.15 of 1958.

Most such Acts were the result of trade union agitations and so was the signing and ratifying of ILO Conventions by Sri Lanka. From 1950 to 2016, Sri Lanka has ratified 43 ILO Conventions and 32 of them are in force. That apart, the present Yahapalana Government re-applied for lost EU GSP Plus and regained same on condition that it would work towards improving Good Governance, democratic and human rights, labour rights and improve environment as well.

Sri Lanka’s problem with “development was not labour laws and labour rights. They were essential for development as a democratic country-necessary to have a satisfied labour force that ensures industrial peace and optimum production.

The whole concept of “Collective bargaining” and of “Collective Agreements” first signed in old Ceylon in 1928 is about achieving industrial peace with a satisfied workforce. In open market economies businessmen demand free rides for bigger and bigger profits. For which they grease every governing structure.

It is for that this Government wants USAID to help dismantle the labour law regime by way of “reforms”.  USAID has identified areas to be reformed for the benefit of employers. They have argued the employer should have legal provision to dismiss a worker overnight at a low cost. What is not said is that, even now any employment can be kept under probation for almost three years with no right given to the worker to contest such a long probationary period. During this long probationary period employment can be terminated without cause. Formula for compensation was also what employers worked out and have agreed for.

Another that is being highlighted is the calendar with a list of 26 public holidays per year including Poya holidays. Not counting these holidays employees are entitled for seven days of sick leave and seven days of casual leave. Also three months maternity leave for female workers is noted with concern. What is basically said is, workers don’t need to have so many holidays, for that makes the employer pay extra for extra work during holidays. The idea of “part time” employment is also on the cards, argued as an opportunity for employees to do “double jobs”. What is not said is that most employees do odd jobs even now, as wages for full employment cannot keep them going for a full month.

The USAID has come in big with this Government.

The Industries and Commerce Ministry too has solicited their support to streamline Lak Sathosa and improve employee efficiency. This Government is banking on USAID and not on ILO expertise for labour issues.

Most trade unions in the National Labour Advisory Committee (NLAC) walked out of the meeting convened for USAID representatives to present their scheme in reforming labour law with the Free Trade Zones & General Services Employees’ Union taking a principle stand against USAID and the MoDS&IT intervening in labour law reforms.
The Government and the Labour Ministry saved their faces with politically affiliated trade unions including that of the JVP (US Imperialism is irrelevant, when Government positions are available) opted to stay in the Working Committee on Labour Law Reforms.

This Yahapalana Government will thus push its programme of dismantling labour laws through reforms proposed by the USAID.

The final draft would thereafter be endorsed by the UNP, SLFP, and JVP trade unions with the CWC also in the Working Group.

This leads to total confusion on the part of the Wickremesinghe Government. This Government cannot devalue labour laws in any way with the Constitution guaranteeing freedom of association and the ILO Conventions 87 and 98 in force. Violations of these Core ILO Conventions would make the Government liable for punitive judicial action in many fora both local and international. Added is the fact the Government is already bound by all conditions that come with EU GSP Plus benefits.

They include Core ILO Conventions for the entire labour force and is not limited to companies that manufacture for the EU market as the Labour Ministry now tries to define EU GSP “Plus” conditions. An EU “monitoring” team is due next Saturday, 09 September that will compel the Government to lay down its framework for proposed labour law reforms.

For the EU, the “reforms” will have to upgrade not degrade existing labour laws. For the Government it’s the reverse that is wanted in this wholly corrupt free market economy.

That is the reason for all the “nauseating corruption” Deputy Minister Harsha de Silva said he was disgusted about. 

AG can’t act hastily -Thalatha

Cases against wrongdoers of previous regime

Dr. Wijeyadasa

By Shamindra Ferdinando-August 31, 2017, 11:27 pm 

Justice Minister Thalatha Atukorale yesterday stressed that her predecessor Dr. Wijeyadasa Rajapakshe, PC, had been removed solely due to him violating collective cabinet responsibility in respect of the leasing of Hambantota port to China.

Sri Lanka and China finalized the agreement on a 99-year lease on July 29, 2017.

Atukorale will continue to hold the foreign employment portfolio in addition to Justice.

Declaring that the agreement had been finalized in accordance with the instructions and advise received from the Attorney General, attorney-at-law Atukorale said that one person couldn’t under any circumstances challenge a cabinet decision.

Minister Atukorale said so in response to a query by The Island whether she could confirm the UNP demanded Rajapakse’s removal over him challenging the validity of the Hambantota port agreement and holding up investigations into high profile cases involving the Rajapaksas and those loyal to them.

When pressed for a response to the second allegation, Atukorale stressed that the UNP only faulted Rajapakse for acting contrary to collective cabinet responsibility.

Athukorale asserted perhaps Rajapakse couldn’t have comprehend the terms of the port agreement.

Attorney General Jayantha Jayasuriya, PC, was among senior officials who met the new Justice Minister before she addressed the media.

Asked by The Island whether she had at least inquired from her former cabinet colleague to find out what had gone wrong after she received justice portfolio from President Maithripala Sirisena on Aug. 25, Atukorale said that there was no requirement to do so.

SLFP/UPFA MP Rajapakse switched allegiance to the UNP in mid Nov 2007.

Athukorale said that she knew Rajapakse since 1977 and never felt the need to clarify matters from the former cabinet colleague.

Atukorale denied allegations regarding delays and lapses on the part of Attorney General’s Department as well as interference in presidential commission of inquiry into alleged Central Bank-Perpetual Treasuries bond scams.

The first woman justice minister acknowledged the need to inquire into allegations regardless of who made them targeting whom.

Atukorale said the Attorney General couldn’t hastily act in respect of investigations conducted by law enforcement authorities into various cases.

Responding to another query, Atukorale said the setting up of trial at bar to expedite cases could be taken by the Chief Justice on a request made by the Attorney General.

Those who had been severely critical of the Attorney General’s Department today never uttered a word when former President Mahinda Rajapaksa brought it under his purview, Atukorale said. The minister chided the media for not having the guts to take on the previous government though they now enjoyed the freedom thanks to yahapalana policies.

Commenting on National Freedom Front (NFF) leader Wimal Weerawansa’s recent accusation that she had received orders from the government to remand ten Joint Opposition members of parliament in the run-up to next local government or provincial council polls, Atukorale said that gang of thieves called the JO had directed corruption charges at PM Wickremesinghe and several other ministers, including Kabir Hashim, Malik Samarawickrema and herself.

Atukorale alleged that the then Minister Weerawansa had been one of those who took ‘policy’ decisions. The UNPer said that the likes of Weerawansa couldn’t remember the days when decisions regarding the executive and the judiciary were taken at one place.

Minister Atukorale and Secretary to the Justice Ministry Padmasiri Jayamanne refrained from responding to The Island query whether PC Rajapakse got into trouble over an exchange of words with UN Special Rapporteur Ben Emmerson in mid July.

Atukorale said she would discuss and examine accountability issues with her officials before deciding on talks with the Foreign Ministry as well as other institutions, including the Army. Atukorale said so when The Island asked her whether she would take a fresh look at war crimes allegations, including the claim more than 40,000 Tamil civilians were massacred on the Vanni east front in 2009.

Atukorale said that the armed forces wouldn’t be subjected to foreign jurisdiction under any circumstances. The minister said that the government took tangible measures to protect the interests of the armed forces whereas the former President claimed of an attempt to drag him to non existent electric chair.

When The Island pointed out that Geneva Resolution 30/1 that had been co-sponsored by the incumbent government on Oct 1, 2015 made specific reference to foreign judges, including those from the Commonwealth, the Minister said that she would like to see the relevant document.

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Wijeyadasa’s deputy sorry minister had to go

Deputy Minister of Justice and SLFPer Sarathi Dushmantha Mithrapala yesterday paid a glowing tribute to the leadership given by former Justice Minister Dr. Wijeyadasa Rajapakse, PC, since the change of government in January 2015.

MP Mithrapala said that he was sorry and sad about Dr. Rajapakse having to lose justice portfolio over what he called cabinet controversy. The Kegalle District MP was responding to The Island query as to how he felt about Rajapakse being kicked out.

The Deputy Minister said that during Rajapakse’s tenure as the minister, the Justice Ministry had received the appreciation of the judiciary.

Mithrapala said he was happy new minister Thalatha Atukorale was from his province though he regretted the fate that befell Rajapakse (SF)

Dealdasa is not only a wheeler dealer but also a ruthless accomplice in a murder !

(Lanka-e-News - 30.Aug.2017. 11.55PM)   A number of unlawful activities of Wijedasa alias Dealdasa while he was a minister had now surfaced after he  was sacked from the ministry  of justice and Buddha sasana portfolios . Among those crimes is his involvement in the death of an innocent individual in  a vehicle accident. Wijedasa  by his intervention and using his influence  had suppressed that murder. Lanka e news inside information division is in receipt of all details in this connection .

The accident was  caused by Harsha Sirisena the coordinating secretary to Wijedasa when the latter  was the minister of justice during the period prior to the parliamentary elections . Harsha being  the intermediary in all the illicit deals  and secretive financial transactions, Wijedasa resorted took all the foul and illegal  measures to save Harsha .

On the day of the accident , Harsha had unlawfully  taken a super luxury car KP 2024 belonging to the justice ministry , and himself driven the car along with a  ‘cutie’  to Kandy to make his spills  in the hills . Unbelievably, Harsha at that time did not have even a driving license. Unfortunately , Harsha’s  eagerness  for thrills and spills   in the hills outran his sureness . Harsha and his  ‘cutie’  have  also  consumed  liquor on the way. 

At Kegalle when trying to overtake a Tipper, Harsha had run over an innocent pedestrian who was on the pedestrian crossing. The victim died instantaneously and  the vehicle stopped only after knocking against a tree , as a  result the ministry vehicle was severely  damaged.

Wijedasa who is an expert in villainies , treacheries , rackets, betrayals and   more cunning than a wolf knew if this fatal accident receives publicity  it will be detrimental to him and all around him . Hence he   immediately spoke to a Kegalle police higher up and dispatched his own official security personnel Athula Moneragala  an SI to the scene of the accident ( rather  murder) caused by his henchman, in order  to dress the scene to look as though the individual who caused the accident was Athula and not Harsha.

The entire murder scene was camouflaged  by  Wijedasa according to his whims and fancies on his instructions and plans . Though compensation was promised to the victim’s family , nothing had been paid until today. 

It is noteworthy when a  vehicle belonging to the government is  used for an illicit purpose  and driven by a government servant on the sly sans a driving license under the influence of liquor meets with an accident in which a pedestrian on the pedestrian crossing was killed , it is  tantamount to murder . Besides , the damaged government vehicle should be  repaired at the expense of the individual who was responsible for the accident , whereas in this instance the cost of repair was met by the State .This was  daylight robbery of public funds !

This fatal accident which claimed the life of an innocent individual was kept hidden hitherto by Wijedasa using his ministerial powers, but now it has come to light . Even the case in Kegalle court  is moving at snail’s pace , and not over yet.

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by     (2017-08-31 01:43:33)

COPE Chairman has evidence Southern Expressway Stinks of Bribery

By Niranjala Ariyawansha-2017-08-31


The Government has lost a massive Rs 36 billion due to the Cabinet Committee on Economic Management (CCEM) granting approval to increase the length of flyovers on the Matara-Hambantota Southern Expressway Project, COPE Chairman Sunil Handunetti alleged yesterday.

The Janatha Vimukthi Peramuna (JVP) Member of Parliament said, the move had been taken without the consent of the Cabinet of Ministers.

Handunnetti said at a media briefing yesterday that, in November last year, the Secretary to the Prime Minister, Saman Ekanayake, sent a letter to the Secretary to the Ministry of Highways informing him that the CCEM had made a decision to increase......the aggregate length of the planned flyovers by 2.78 kilometres.

Handunnetti questioned the technical expertise that Prime Minister Ranil Wickremesinghe and other members of the CCEM, Charitha Ratwatte, R. Paskaralingam and Minister Malik Samerawickrema had to carry out this task. He also asked whether this extension was given the go-ahead by a technical evaluation committee.

He also queried as to how the CCEM can act beyond the authority of the Cabinet and Parliament when a decision involving such a large sum of public money is made.

They also revealed that a sum of US Dollars 11.9 billion which should have been brought to this country through the Chinese Exim Bank by the China Railway Fast Survey And Design Institution, has not yet been received by Sri Lanka. The China Railway Fast Survey And Design Institution is providing consultation services for this project.

He also alleged that the engineers who have been flown down to Sri Lanka on visitor visas to provide advice on the Matara-Hambantota Expressway are being paid huge salaries by the Road Development Authority (RDA), violating rules and regulations regarding tourists and finances of the country.

He said that it is the Prime Minister's Senior Economic Advisor Paskaralingam who had authorized the issue of visas to enable payment of salaries to the engineers of the Chinese consultancy firm. "The estimated sum to be spent on the Matara-Hambantota section of the Southern Expressway is Rs 243 bn. Loans for the project are being obtained from China. The Construction Contractor is Chinese.

 Advice on construction is being obtained from China Railway Fast Survey and Design Institution Company. They can include delay charges as well and present us with bills in the future on behalf of the services they provided. Then Sri Lanka has to pay them. Then if the company has not brought in money to this country, how can we pay? Then the danger is that if we are unable to pay back the debt, we will have to sell off this Southern Expressway to compensate for the loans," Handunnetti emphasized.

Handunnetti also asked the Government to reveal to the country who is using the Mercedes Benz vehicle imported to this country, duty-free, by the contractor on 21.11.2016, alleged to have been provided as a bribe for increasing the length of these flyovers.

Handunnetti added that "The Finance Ministry has issued a circular to exempt from duty the vehicles that are imported to the country for use in the project.


"It is learnt that if these are passenger transport vehicles, duty has to be paid on them. Concrete or metal fabrications for the project are not transported in a Mercedes Benz. However, the Chinese Project Director has requested in a letter that the Mercedes Benz vehicle imported be exempted from duty. This vehicle is not mentioned in the project. We know where the vehicle is and who is using it. This is clearly a bribe that was given as a reward for increasing the estimated cost of the project."

Trump and Manafort get big reminder that pardon power does not extend to state crimes
Paul Manafort (C), then campaign adviser for Donald Trump, talks with supporters after a speech by the presidential candidate on the eve of his Indiana primary victory in New York on May 3, 2016. (EPA/Justin Lane)

By Fred Barbash August 31 at 5:18 AM

Politico reported Wednesday that New York’s attorney general Eric Schneiderman is now working with special counsel Robert S. Mueller III in the probe of financial transactions involving Paul Manafort, a story independently confirmed by The Washington Post by a source familiar with the investigation.

While the involvement of Schneiderman could produce nothing and is in an early stage, the news sends an important message to President Trump: his pardon power does not extend to state crimes.
In the event Manafort or anyone else is charged under New York law, or threatened with indictment, there will be nothing Trump can do about it.

His “power to grant reprieves and pardons” only covers “offenses against the United States,” according to Article II, Section 2 of the Constitution.

Reports of Schneiderman’s interest in Manafort are not new.

Louis Seidman, professor of constitutional law at Georgetown University Law, explains why even though President Trump could use his executive privilege to pardon himself, it may not be a good idea. (Video: Ashleigh Joplin/Photo: Jabin Botsford/The Washington Post)

But the news that the New York attorney general is teaming up with Mueller attracted a good deal of attention from Trump critics because of the pardon issue. Trump pointedly tweeted in July that he has “complete power to pardon” aides, family members and possibly even himself. His pardon Friday of former Maricopa County sheriff Joe Arpaio was a seen by some as strong message that he is willing to use the pardon power liberally.

“So much for strategic use of pardon power with Manafort,” tweeted Harvard Law School professor Laurence Tribe.

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Laurence Tribe 

✔@tribelaw

So much for strategic use of pardon power with Manafort!http://www.politico.com/story/2017/08/30/manafort-mueller-probe-attorney-general-242191 …

8:05 PM - Aug 30, 2017

Mueller teams up with New York attorney general in Manafort probe

The cooperation is the latest sign that the investigation into Trump's former campaign manager is intensifying.

politico.com

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Norm Eisen 

✔@NormEisen

Perhaps most important story of this busy news day: Mueller teams up with NY attorney general in Manafort probe http://www.politico.com/story/2017/08/30/manafort-mueller-probe-attorney-general-242191 …

8:24 PM - Aug 30, 2017

Mueller teams up with New York attorney general in Manafort probe

The cooperation is the latest sign that the investigation into Trump's former campaign manager is intensifying.

politico.com

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According to the Politico report:

The two teams have shared evidence and talked frequently in recent weeks about a potential case, these people said. One of the people familiar with progress on the case said both Mueller’s and Schneiderman’s teams have collected evidence on financial crimes, including potential money laundering. 

No decision has been made on where or whether to file charges. “Nothing is imminent,” said one of the people familiar with the case.

A spokeswoman for Schneiderman declined to comment.

Manafort has denied any wrongdoing.

There are plenty of points of entry into the Manafort probe for a New York prosecutor.

The Wall Street Journal reported in May that Schneiderman and Manhattan District Attorney Cyrus R. Vance Jr., were examining Manafort real estate transactions across the U.S., including in New York, “for indications of money-laundering and fraud.”

NBC news reported that some of those New York loans were financed in part by a Ukrainian émigré to the U.S.

Manafort told NBC through a spokesman that his transactions were “executed in a transparent fashion …” But NBC reported that Manafort’s name and signature did not appear on loan documents.
Manafort was chairman of Trump’s campaign until he resigned amid growing scrutiny of his decade of work in Ukraine on behalf of a Russia-friendly political party, the Party of Regions.

FBI agents raided the home of President Trump's former campaign chairman Paul Manafort without warning on July 26 with a search warrant, and seized documents and other records, say people familiar with the special counsel investigation. (Photo: Michael Robinson Chavez/The Washington Post)

Manafort’s personal finances may be totally unrelated to Mueller’s probe into possible coordination of Russian meddling in the 2016 presidential election between the Kremlin and the Trump campaign.
But Mueller could conceivably use any jeopardy faced by Manafort in New York to gain his cooperation into the broader investigation, without the hindrance of a Trump pardon of Manafort.


Indeed, The Post reported earlier this month that Manafort’s allies feared that Meuller wants to build a case against Manafort independent of the 2016 campaign “in hopes that he would provide information against others in Trump’s inner circle in exchange for lessening his legal exposure.”

SitRep: Allies Launch Major Flyover of Korean Peninsula; Pentagon Comes Clean on Deployments

With Adam Rawnsley

BY PAUL MCLEARY-AUGUST 31, 2017

Overflight. The U.S. Air Force and Marines teamed with the South Korean and Japanese air forces Thursday to conduct an unprecedented show of force and live fire exercise over the Korean peninsula. And the timing was no coincidence.

The mission “was conducted in direct response to North Korea’s intermediate-range ballistic missile launch,” which flew over Japan earlier this week, the U.S. Pacific Command said in a statement. “North Korea’s actions are a threat to our allies, partners and homeland, and their destabilizing actions will be met accordingly,” said Gen. Terrence J. O’Shaughnessy, Commander, U.S. Pacific Air Forces. The Corps sent four F-35B’s to join two USAF B-1B bombers, two Japanese F-15s and four South Korean F-15s “for the first time in a sequenced bilateral mission with Japan and Republic of Korea air forces in Northeast Asia,” Pacom said.

Afghanistan. The U.S. military command in Afghanistan has opened an investigation into an airstrike that allegedly killed as many as 11 civilians in eastern Logar province, the second incident this week involving civilian casualties. The other incident occurred Monday, and residents and officials in Herat Province in western Afghanistan claimed airstrikes there had killedmore than a dozen civilians. The Afghan Ministry of Defense said that the later strike had been carried out by the Afghan Air Force and that 18 Taliban fighters had also been killed.

The strikes come as Defense Secretary James Mattis weighs sending thousands more Americans to advise Afghan forces in the thick of the fight against the Taliban and the Islamic State, and increasing airstrikes and artillery support to blunt the Taliban’s recent momentum.

Real troop numbers. The Defense Department admitted Wednesday that there are already 11,000 American troops in Afghanistan, a number vastly higher than the 8,400 they had claimed for months were deployed. So, why the deception?

FP’s Paul McLeary writes that there are thousands of troops deployed both to Afghanistan (and Iraq) on a “temporary” basis, often for just weeks at a time, that the Pentagon didn’t count as deployed since they are not part of a scheduled, longer rotation. The practice, the military claims, was made necessary due to the Obama administration’s cap of 8,400 troops in the country, which forced the military to split up units and only deploy them piecemeal.

The Trump administration accepted the policy, and “the new accounting practices will still only represent an approximation of how many troops are on the ground, and could be off by hundreds as some units overlap during rotations in and out of the country.” Still, there hasn’t been a great explanation for hiding the truth. Next up is an explanation for how many Americans are in Iraq, where there are officially 5,200 troops. Reports indicate the number is actually closer to about 7,000.
The Washington Post reports that of the 4,000 or so troops Mattis is considering sending to Afghanistan, many appear to be coming from the 82nd Airborne and 25th Infantry divisions, with Marine Corps artillery units filling in some of the gaps.

The dead and the wounded. The fallout continues from a raid last week in Somalia by government troops supported by U.S. special operations forces that the Somali government said killed 10 men and boys. The tribe that was hit is looking for restitution, which the government is considering.
Reuters met with some of the victims’ families, and reports that “the clan have already been angered by a U.S. airstrike that killed at least 10 members of their pro-government militia last year, and by a death sentence for another clan member who killed a minister that he mistook for a militant.”
You. Shall. Not. Pass. After a deal was reached between the Islamic State, the Syrian government, and Hezbollah to move hundreds of ISIS fighters away from the Lebanese border and into ISIS-held areas of eastern Syria, the U.S. military said, “nope.”

The U.S.-led coalition issued a statement Wednesday saying it “was not a party to any agreement between the Lebanese Hezbollah, the Syrian regime and ISIS. Russian and pro-regime counter-ISIS words ring hollow when they cut deals with and allow terrorists to transit territory under their control.” As a result, American planes dropped a bridge and cratered a road where the estimated 600 fighters were traveling, bringing the whole op to a halt. But Syrian-backed militias who are helping the convoy said Thursday they’re looking for a new route to get to Deir al-Zor province.

Exodus at State continues. A senior State Department lawyer, Todd Buchwald, is stepping down in the coming weeks, “joining scores of career civil and foreign service officers fleeing an administration that critics say has diminished the standing of U.S. diplomacy,” FP’s Colum Lynch and Robbie Gramer report first.

Jordan ambassador pushed out. Soon after taking office, president Trump pushed out the U.S. ambassador to Jordan after complaints from the country’s king, even though there was no evidence the diplomat had misrepresented Washington’s policies, reports FPs Dan De Luce and Ruby Mellen.
Welcome to SitRep. As always, please send any tips, thoughts or national security events to paul.mcleary@foreignpolicy.com or via Twitter:@paulmcleary.

Question marks. The White House tells reporters that President Trump has “absolutely” has confidence in Secretary of State Rex Tillerson after reports that Tillerson was on the outs with Trump.

Gulag archipelago. The State Department released a new report this week on half a dozen North Korean prison camps for political prisoners and their families, piecing together a grim picture from defector accounts and satellite imagery. The prisons are believed to house tens of thousands of inmates believed to be insufficiently loyal to the North Korean government as well as family members detained under the North’s “three generations” policy, which imprisons the family members of those convicted of political crimes.

Myanmar. Sectarian tensions in Myanmar are rising after growing calls from members of the country’s Buddhist majority call for a harder military crackdown on insurgents from the Rohingya Muslim minority. Fighting in Rakhine state has thus far prompted around 18,000 Rohingya to flee into Bangladesh as refugees.

Mark as read. The Kremlin says it ignored an email sent by former Trump lawyer Michael Cohen pitching a real estate project for a Trump Tower in Moscow. Kremlin spokesman Dmitry Peskov said he had seen the email, since uncovered by the Washington Post, but didn’t respond “Because we do not react to such (questions about) business themes, and this is not our job,” according to Reuters.
Opening gambit. Russia’s new ambassador Anatoly Antonov says the U.S. and Russia should try to rebuild relations with a new set of high-level meetings, proposing “joint meetings of Russia’s and the United States’ foreign and defence ministers in a ’two plus two’ format.”

Island lair. Russian anti-corruption activist Aleksei Navalny released a new video containing drone footage of a large 125 acre property and island homeallegedly owned by President Vladimir Putin. Navalny claims the property, located near the city of Vyborg close to the Finnish border, is nominally owned by Oleg Rudnov, a close friend of Putin.

Hacking. Cybersecurity firm Kaspersky Lab issued a new report on what it says is a cyberespionage group that leverages tools and tactics similar to hacking groups like Sofacy and Turla, widely believed to be run by Russian intelligence. The report details the hacking activities of a group Kaspersky labels “WhiteBear,”  which is “narrowly focused on embassies and consular operations around the world,” particularly in Asia, Europe, and Latin America.

Rashomon effect. An Egyptian director is making a spin-off of the box office hit American Sniper about the life of Navy SEAL sniper Chris Kyle. The film, Iraqi Sniper, will tell the story from the original movie from the perspective of a mythical Iraqi insurgent sniper dubbed “Juba,” who was the subject of several propaganda videos released during the occupation of Iraq.

Lebanon. The U.N. Security Council has tweaked the mandate of its peacekeeping force in Lebanon, settling on compromise language that calls on UNIFIL to be more vigilant in cracking down on Hezbollah arms buildups in southern Lebanon. The move follows Israel’s allegations that Iran has built rocket factories for the terrorist group in Lebanese territory, and comes after U.N. Ambassador Nikki Haley criticized UNIFIL for “an embarrassing lack of understanding” for its apparent inability to locate Hezbollah weapons caches.

Drones. It seems like every militant group in the Middle East is getting on board the commercial drone bomber trend. The latest entrant is the PKK, a Kurdish terrorist group, which reportedly lost a hexarotor drone bomber after Turkish troops downed southeastern Turkey.

Drone hunter. Russia says its Pantsir-S1 anti-aircraft systems in Syria have shot down two Israeli drones in Syria near the port city of Tartus, as well as an RQ-21A Blackjack, and Turkish Bayraktar drone.

Garage sale. Soldiers and civilians near Fort Campbell Kentucky made over a million dollars by selling stolen military weapons and equipment to buyers as far away as Russia, China, and Hong Kong through eBay auctions, according to federal prosecutors. Prosecutors are currently trying John Roberts, alleging that he helped lead the sales ring which hawked rifle parts, a machine gun, body armor, and helmets online.

Days of bugs past. CNN recounts some newly declassified details on the detection of a Russian listening device in the State Department in 1999.

Photo Credit: U.S. Pacific Command