158 Tamils disappeared from Eastern Uni in 1990 round-up remembered in Batticaloa

158 Tamils rounded up and forcibly disappeared by the Sri Lankan Army from the Eastern University were remembered in Batticaloa today, on the 27th anniversary of their disappearance.

05 Sep  2017

On 5th September 1990, Sri Lankan soldiers surrounded the Vantharumoolai campus of Eastern University, rounding-up and arresting 158 Tamils that were sheltering there.

Those 158 were never seen again. Although locals believe they were likely to have been massacred, not even one body has been found.

Two weeks following this round-up, a further 16 were arrested and forcibly disappeared. The fates of those 16 are similarly unknown.

The families of the Vantharumoolai disappeared gathered today at Maavadipillaiyar Kovil in Arumugathankudiyirippu, Batticaloa, alongside locals, at a remembrance event organised by Eastern University students.

Accountability for civilians in conflict zones

By Neville Ladduwahetty-September 5, 2017 

Civilians, in conflict zones, have two choices. One is to leave the conflict zone and seek refuge in transit refugee camps, set up within the country, in which the conflict is taking place, or seek the safety of transit camps, in other countries, despite the uncertainties and risks of living on the charity of others. The second is to stay put whatever the risks - even death - and face the full scope of the challenges of surviving in a conflict zone.

These choices are personal and are made today by people in countries such as Iraq, Syria, Yemen, Sudan, and in other regions where conflicts are ongoing, or even where conflicts had previously occurred, such as Sri Lanka.While each of the two choices carries a different set of challenges,the focus of this essay is to address issues associated with those who opt to stay behind, in the conflict zone, and face whatever the odds.

Although the challenge civilians in conflict zones have to face is how to survive, it could take a dramatic turn depending on how the conflict turns out for one of the parties to the conflict. If one of the parties to the conflict realizes that their prospects are waning and that there is an imminent threat to their survival, there is a strong possibility that civilians would betaken hostage and used as a human shield for the party’s own protection.

Civilians were used in Sri Lanka by the LTTE during the final stages of the armed conflict, and are currently being used by the Islamic State in the conflicts in Iraq and Syria. The challenges to the government security forces, in Sri Lanka, and to the Iraqi forces and their partners, in the U.S.-led military coalition, are how to prosecute the conflict while taking measures to protect the civilians. Balancing measures adopted to prosecute the conflict against loss of civilian lives is so daunting an undertaking that whatever strategies are adopted, one could always find cause to fault parties to the conflict in the sober light of dawn. However, those charged with alleged violations of human rights and war crimes as well as crimes against humanity, have more to do with the political clout of the parties involved in the conflicts, than on the adopted strategies themselves.

Notwithstanding these complexities, the standard response of the International Community, represented by the U.N., is to ease or cease military operations, despite the inevitability that such a strategy would only prolong the conflict and compromise the security of the civilians indefinitely, as long as the latter refuses to leave the conflict zone. Such responses are often made without considering the follow through consequences. They indicate that the U.N. has failed to fulfill its responsibilities to prevent serious humanitarian catastrophes from occurring. What it has "accomplished" instead,is the capability to pass resolutions and conduct inquiries for violations committed by the parties to the conflict,after the dust has settled.

CONFLICT in IRAQ

Conveying the standard response of the U.N., a report in The Washington Post of August 25, 2017 states: "The United Nations urged international powers to ease military operations around the Islamic State’s de facto capital Thursday amid intensifying concerns about the safety of thousands of civilians trapped inside… The rare call to pause hostilities in Raqqa underscores the severity of the humanitarian crisis there. As Islamic State militants use snipers and threats of arrest to prevent residents from fleeing, monitoring groups have blamed the U.S.-led coalition forces for hundreds of civilian deaths".

The standard strategy of the U.N.has been to do whatever possible to encourage civilians to escape. However, such possibilities are limited, since the Islamic State continues to do everything in its power to prevent civilians from escaping. The above report states that "More than 270,000 people have fled the city since the coalition offensive began, and many of them are stuck in ramshackle camps in the Syrian desert".

In the meantime, the view of Col. Joe Scrocca, a coalition spokesman, was that the coalition does "everything within our power to limit harm to civilians…The unfortunate death of civilians is a fact of war that weighs heavy on our hearts. However, if the Islamic State is not defeated, the cost will be even higher".

According to another report, also in The Washington Post, the U.S. Defense Secretary, Jim Mattis had, stated: "There had been no military in the world’s history that has paid more attention to limiting civilian casualties… That said, an enemy that literally hides behind women and children or forces innocent people to stay in an area that they intend to turn into a battlefield are clearly showing who are the people violating every standard of decency" (August 24, 2017).

The assurance that the coalition is doing "everything in its power to limit civilian harm" or death and that "no military has paid more attention to limiting civilian casualties" would be accepted as credible without question by the U.N. because the coalition is led by the U.S.. However, it would NOT be acceptable if the very same assurances are given by any other party to an armed conflict, such as the armed forces of Sri Lanka when the LTTE trapped and used over 300,000 civilians as a human shield. This reflects nothing but ingrained racism. While a mere statement from the U.S.-led coalition is acceptable in one conflict, but is subjected to U.S.-led UNHRC resolutions demanding a formal accountability exercise in the case of another, namely, Sri Lanka,reflects the differences in the treatment of Member States.If this difference is due to an acceptance that the Islamic State should be defeated,but not the LTTE,it must mean that it is international politics that determines who is prosecuted and who is not.

ARMED CONFLICT in SRI LANKA

Trapping civilians during an armed conflict when the situation becomes desperate for a party to the conflict, is not a new phenomenon. Following the fall of Kilinochchi, in January 2009, the LTTE violated all attempts to isolate civilians by hiding behind women and children and forcing innocent people to stay and shooting others who attempted to escape. The plan of the U.S.-led International Community was to save the LTTE leadership, which would have meant that the conflict would drag on indefinitely; a fact that was disclosed during a Panel Discussion at the Brookings Institute in the U.S. On the other hand, the thinking of the Sri Lankan Government was similar to that of Col. Joe Scrocca in Raqqa; in that if the LTTE was not defeated, "the cost will be even higher".

There were appeals made to the Sri Lankan Government to "pause" hostilities during the final stages of the conflict. An attempt was also made by a joint visit to Sri Lanka by Foreign Secretaries from the U.K. and France, Milliband and Kouchner, respectively. The fact that all these appeals were made to the Government and none to the LTTE convinced the Government that all these efforts were to save the LTTE leadership. Furthermore, it convinced the Government that the U.N.-led International Community’s recommendation would prolong the conflict in Sri Lanka indefinitely; a prospect the Government was not prepared to accept, because at the end the cost would be even higher in terms of blood and treasure.

The cost for not having complied with the appeals to cease hostilities and for defeating the LTTE is what Sri Lanka is currently facing, first initiated by a visit to Sri Lanka by the former UN Secretary General, Ban-Ki-Moon, within a week of cessation of hostilities, for the sole purpose of holding Sri Lanka accountable for strategies adopted during the final phase of the armed conflict. Given the contrasting response by the U.N. to Sri Lanka versus the U.S.-led coalition in Iraq, the lesson is clear: some will be held accountable, while others will not.

CONCLUSION

Choices for civilians in conflict are limited. One choice is to be displaced within the country away from the conflict zone,or as refugees in some other country. The second choice is to become victims of the conflict by not leaving the conflict zone. The challenges faced by each group are different. However, those who decide to stay in the conflict zone present challenges to the parties to the conflict; the most trying challenge being when civilians are taken hostage by one party to the conflict in its desperation for survival.

How parties to a conflict balance the safety of the civilians with military gain is a variable that depends more on the international ranking of the parties to the conflict and much less on the adopted strategies themselves. For instance, despite calls from the U.N. to "pause hostilities", the intense bombing in Raqqa and Mosul by the U.S.-led coalition forces that includes Britain,is causing the death of "hundreds of civilians". As far as the U.S. Secretary of Defense and Commanders in the field are concerned, the campaign to defeat the Islamic State militants has to continue, while assuring that everything in their power is being done to limit civilian deaths and casualties because "not to do so would cost even more".

During the armed conflict in Sri Lanka, too, there were calls to "pause hostilities". Although these calls were made in the name of saving civilians,they had another purpose, that being,to save the leadership of the LTTE; a fact that was disclosed during a panel discussion at the Brookings Institute in the U.S. and by the joint visit to Sri Lanka of Foreign Secretaries Milliband of the U.K. and Kouchner of France.It is this background that made the Sri Lankan Government realize that it had no alternative but to defeat the LTTE while doing everything in its power to minimize civilian casualties, similar to the reality that the U.S.-led coalition in Iraq has now come to accept. Furthermore, just as the Sri Lankan Government came to accept this reality, the U.S.-led coalition, in Iraq, has now come to accept that "if the Islamic State is not defeated the cost will be even more".

The difference between Iraq and Sri Lanka is that in the case of Iraq the assurances given by the representatives of the U.S.-led coalition are accepted by the UN, and the US.-led coalition forces would not be subjected to formal accountable processes. This, however, is not the case with similar assurances given by the Sri Lankan Government, judging from the measures adopted by the UNHRC which continues to hold Sri Lanka accountable for the strategies adopted during the final stages of the armed conflict.

The most that would be expected from the U.S. and Britain would be for them to hold internal inquiries, and that, too, if circumstances warranted; a matter that would be left entirely to their discretion judging from the comment by Prime Minister Theresa May that British forces would never be subjected to international inquiries. Sri Lanka’s internal inquiry in the form of the Lessons Learnt and Reconciliation Commission was condemned by the UN appointed Panel of Experts even before the Report was made public. In addition, the report of the Paranagama Commission of Inquiry that even had the benefit of internationally renowned expert opinions and focused primarily on accountability, was not acceptable.

It is this difference that an internal inquiry is acceptable in one instance and not in another is what is unacceptable - a difference that arises from an ingrained racism that manifests itself in various forms and shades despite the guiding principle in the U.N. Charter that all Member States are equally sovereign. These are reflected in the decisions as to who should be held accountable and who should not. The fact that the U.N. and its subsidiary, the UNHRC, permit such decisions to influence their judgement means that they are violating the impartiality and the neutrality mandated by the world body for which they should be held accountable.

TGTE welcomes ex – army chief’s confirmation that SL forces committed war crimes against Tamils

 Sep 06, 2017

Transnational Government of Tamil Eelam (TGTE) today welcomed a statement by the Commander of Sri Lankan Forces during the war, Field Marshall Sarath Fonseka, confirming that Sri Lankan Security Forces committed War Crimes against Tamils during and after the war ended.

His confirmation of war crimes by Sri Lankan forces comes after eight years of denial by successive Sri Lankan Governments that no war crimes were committed and calling Sri Lankan forces ’War Heroes’.

Sri Lankan Government rewarded ex-Servicemen with senior Government positions, including appointing Field Marshall Fonseka as the Minister for Regional Development and General JagathJayasuriaas the Ambassador to Brazil.

Field Marshall Fonseka’s confession to war Crimes committed by forces under his command came, when he summoned journalists to his office on September 1st and said that he has information about General Jayasuria committing war crimes and that he is ready to give evidence. “I know he committed Crimes and I am ready to testify before a proper investigation.”

He went on to say that war crimes were committed even after the war ended: “He committed crimes during and after the end of the war.” “I have a lot of information.”

Field Marshal Fonseka also said to journalists that he had information regarding other ‘Officers who committed crimes’.

The Transnational Government of Tamil Eelam (TGTE) urges United Nations High Commissioner for Human Rights, UN Human Rights Council and others to act swiftly to bring perpetrators of these international crimes to face justice. “UN should not miss this opportunity.”

According to the UN Internal Review Report on Sri Lanka, around 70 thousand Tamils were killed in six months in 2009 and Tamil women and girls were sexually assaulted and raped by Sri Lankan Security forces. Sri Lankan Security forces also bombed hospitals and food distribution centers, resulting in several Tamils dying of starvation. Tens of thousands also ‘disappeared’, including hundreds who surrendered to the Security forces.

TGTE

Judicial Corruption: Chief Justice Priyasath Dep Also Charged For Corruption

By Lacille de Silva –SEPTEMBER 6, 2017

Lacille de Silva

As a public-spirited citizen, and with wide experience having served the public sector for nearly four decades, I am fully aware that corruption in all sectors in the country has pushed Sri Lanka backwards causing irreparable damage to the Nation. It is sad that in Sri Lanka, although it is a representative democracy, it does not have an independent judiciary. In this country it is observed that the Executive, Legislature and Judiciary do not respect the doctrine of separation of power, which is honoured by leading democracies in the world. The norm is that these three organs shall function independently without encroaching the areas assigned to each other by law. However, it is observed that in this country the judiciary is powerless to check the other two organs that openly challenge its independence and authority, particularly the legislature, that is infested with criminal elements who should have been behind bars.   

Judicial independence no doubt could be considered essential in our country for upholding the rule of law, yet the Yahapalana government that promised upright judiciary has failed the Nation. It is vital that the public should have full confidence in the judiciary and in accordance with the UN Declaration, which says, I quote “all the better safeguarded to the extent that the judiciary and the legal professionals protected from interference and pressure”. It is embarrassing that the government of Sri Lanka co-sponsored a resolution (A/HRC/RES/30/1 dated the 1st October 2015) at UN conceding that the people have no trust and confidence in our judicial system. After the new government was elected to office in 2015,  the Bar Association  of Sri Lanka (BASL), issued a press statement,  I quote, “the existing judicial system in this country has not met the confidence of the people and that it is an undeniable fact that over a period of time the independence and credibility of  many of these institutions suffered resulting in an erosion of the confidence in the system as a whole”.

After independence, for a considerable period of time, We Sri Lankans had the privilege  of enjoying a professional and independent judiciary.  It could have been probably because the Soulbury Constitution had insulated all State officials including the judges from officials of the other branches in the government until it was repealed in 1972.   After the annulment of the Soulbury Constitution, the judiciary has been failing to enforce the Constitution and Human Rights and we have heard of instances where the judges had favoured their friends, relatives,  and associates and given verdicts in order to punish their adversaries.

It must be stated that the 18th Amendment vested unrestricted power over the judicial appointment on the Executive President. Then the Yahapalana administration that promised the people an independent judiciary through its 19th Amendment re-introduced the Constitutional Council to restore the judicial independence. It has however been revealed that these constitutional obligations too have been wilfully and intentionally disregarded and overlooked by the Executive and the Legislature. I am totally in agreement with the Public Interest Litigation Activist Nagananda Kodituwakku (NK) that the 14th Amendment Bill, that allowed defeated candidate enter parliament through the National List has been made law by fraudulent means, which no doubt amounts to a serious Constitutional fraud involving the Legislature, the Executive and the Judiciary. It is therefore the duty of the Yahapalana Government to strengthen the judiciary so that the government becomes more credible in the eyes of the citizens and the international community. It is also the most appropriate step in this particular case to permit the judiciary to review the matter lawfully, independently and impartially because the matter raised by NK is an important national issue concerning the ‘Franchise and Election’.

According to the facts that had been unearthed by Nagananda Kodituwakku, the bill that was considered by the 12-member Parliamentary Select Committee headed by the then Prime Minister, Ranasinghe Premadasa, did not contain the provision that had been stealthily incorporated subsequently, pertaining to the Franchise and Election Law (Article 3). The evidence shows that there had been two 14A Bills in circulation in the Parliament and the Speaker had ratified a bill fraudulently, which had not been approved by the Parliament at the Committee stage, where a foreign clause, within brackets, had been surreptitiously introduced.   And the relevant parliamentary proceedings demonstrate that no member has proposed any such amendment to the bill presented to the house by the Prime Minister.

However, the evidence filed in the Supreme Court challenging this constitutional fraud reveals that the then President J R Jayewardene had referred the Bill with the false clause to the Supreme Court with a letter dated 8th April, 1988 sent to the Chief Justice with a note addressed the CJ – I quote “My dear Chief Justice” and had requested CJ to approve the said bill with a fraudulently introduced clause into the Article 99 A, which had never been approved by the Parliamentary Select Committee on Franchise and Elections. 

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US CONTINUING WITH OBAMA POLICY ON PIVOT TO ASIA INTERNATIONAL SEA BED AUTHORITY: A TOOTHLESS TIGER!

with Ravi Ladduwahetty-2017-09-06

The Asia-Pacific region is now a 'top priority' of US security policy. The US spending cuts would not affect the Asia-Pacific. The US is 'here to stay'.

– FORMER US PRESIDENT BARACK OBAMA IN AN ADDRESS TO THE AUSTRALIAN PARLIAMENT

The remarks of the Acting Assistant Secretary of State for South and Central Asian Affairs Alice G. Wells on Indo-Pacific Regional Architecture at the Indian Ocean Conference 2017, at Temple Trees, Colombo, Sri Lanka on 1 September 2017, gives us some insights of the US Policy towards Asia and particularly South Asia.

She begins her opening remarks with "Let me begin by reaffirming a long-standing facet of US foreign policy: that the United States is – and will continue to be – an Indo-Pacific power.

America's connection to this dynamic region is not new; more than two centuries ago, ships from New England, sailed along trade routes in the Indian Ocean, carrying spices, tea, and even ice between Boston and Kolkata.

In order to realize our shared goal of an Indian Ocean region that is open, principled, and resilient, we will need a robust regional framework for bilateral and multilateral cooperation – one in which all States have a say and are invested in decision-making and outcomes. Regional partners must adhere to a common vision that:

n Respects international law as reflected in the Law of the Sea Convention;

n Supports economic, political, and social linkages between South and East Asia;

n Develops the region's humanitarian and disaster relief capacity through maritime exercises involving all Indian Ocean partners; and

n Encourages Indian Ocean economies to embrace visa liberalization, competitive markets, and accessible medical and educational facilities.

Last Month, President Trump proclaimed that the United States is 'committed to pursuing our shared objectives for peace and security in South Asia and the broader Indo-Pacific region.'

This vision builds upon the Indian Ocean principles the President and Prime Minister Modi announced in June. Our desire for a common vision signifies our enduring commitment to this region and our shared goals of promoting peace, security, freedom of navigation, and a sustainable and open architecture across the Indian Ocean.

We invite every nation here to join in this common endeavour. And, through our collective leadership, we can be a model for the rest of the world."

OBAMA POLICY

The above sentiments expressed by the US Acting Assistant Secretary of State for South and Central Asian Affairs Alice G. Wells are a personification of the United States involvement in the Indian Ocean as the Sword of Peace in consonance with former President Barack Obama's vision of "Pivot to Asia" and also in line with the United Nations Law of the Sea which Conference, an august body which once had eminent Sri Lankan Civil Servant Hamilton Shirley (HS) Amarasinghe as its Chairman. Amarasinghe prior to this international appointment was Treasury Secretary during whose tenure Minister of Special Assignments Dr. Sarath Amunugama was a fledgling Ceylon Civil Service officer with a Peradeniya History First Class Special Degree and the CCS exams as well.

These principles of the Law of the Sea are also in line with Sri Lanka's sovereignty of an exclusive economic zone.

Whatever the Indian Zone of Peace is, Sri Lanka is also in line with the Law of the Sea, where we enjoy sovereignty in our territorial waters, and Sri Lanka too, has the right to an exclusive economic zone which is a perimeter of 200 nautical miles. Beyond that is what is known as the Global Commons, which is common property to all and the common heritage of mankind. That also means that no one could appropriate beyond the 200 nautical miles that are designed to each sovereign nation which comes under the purview of the International Sea Bed Authority. However, that was disputed by the United States as they did not want matters of displeasure with Nauru. Just imagine a country as small as the Maldives to visit on the technical matters of this magnitude!

It is also that of Sri Lanka wanting the Indian Ocean as a Peace Zone from the tenure of former Prime Minister Sirimavo Bandaranaike. Sri Lanka also wanted a Deep Sea Enactment Authority. However, with the above developments, the United States is not a State party to the UN Law of the Sea Convention.

The Pivot to Asia also does not mean that the larger countries could exploit the resources of the smaller nations. It is also mandatory for all of them to have the approval of the Indian Ocean nations abutting it.

Now it appears that the Indian Ocean is the cynosure of all eyes of all the super powers: The United States, Russia, China and India at least. China's interest is that all the ships crisscross through the Indian Ocean and also their Southern tip butts the Indian Ocean.

The Indian Ocean also spreads through the Antarctic. There is also a large mass of sea South of the Indian Ocean which both Sri Lanka and India have no control of which is beyond the 200 nautical miles which is a part of their territorial waters.

SPECIAL DENSITIES OF COBALT NODULES

It is also prudent to note that there is a rich resource in the bottom of the sea bed in the areas which are South of the borders of the Indian Ocean and that is nodules of Cobalt which could go into re-manufacture of radioactive materials.

The International Sea Bed Authority which has been set up as an arm of the United Nations system has now become a toothless Tiger in the eyes of the absence of the United States. It is also legal that the proceeds of the exploitations of these resources, even if the US participates in the extracting it or exploiting it, have to be shared with the countries within the Indian Ocean! They could be empowered to frame the laws, but they must be pragmatic,

Of course, there is the possibility of a Third World Diplomat which could insist that the US could exploit these resources, Cobalt or otherwise, but the heart of the matter is that the spoils have to be shared with the Indian Ocean countries and there lies the rub. The bus stops there. However, the irony is that the US is not a signatory to the Law of the Sea.

Former US First Lady and Presidential Candidate Hillary Clinton was very keen to get into this but the famous compromise of the former United Nations Secretary General from Peru Perez De Cuellar, who brought in a practical amendment to the Law of the Sea which allowed the US to have a bigger say, but the proposal did not go through the UNGA. Despite the US not being a State Party, it must comply with the Indian Ocean requirements of being a participant and not play the role of a Dominator.

PIVOT TO ASIA REMAINS

President Obama's Pivot to Asia will remain to counter China despite President Donald Trump's ethos of "letting other countries look after themselves". Politically also, the US does not want China to be there.

It is a battle between China's String of Pearls and the US hegemony in global governance. However, of late, the US is becoming less and less visible with the presence of the sleeping giant, a diplomatic euphemism for China.

China is fast emerging as the second economic super power in the eyes of the world but, it does not control or dominate the global political powers.

The US has all the powers and the communication skills. The only way that a part of the solution to be met would be for the Chinese population in the US to marry the Americans!

This columnist could be contacted at raviladu@gmail.com

The politics of socioeconomic development in Sri Lanka

This article is based on the Keynote Address delivered by Prof. Colombage at a recent conference jointly organised by the Sri Lanka Forum of University Economists and the Department of Social Studies, Open University of Sri Lanka

Wednesday, 6 September 2017

The ultimate goal of socioeconomic development is to improve people’s quality of life dependent on access to basic needs such as food, safe-drinking water, shelter, clothing, education and health care. An important factor that determines these dimensions of quality of life is income, usually measured in terms of per capita income which is equivalent to Gross Domestic Product (GDP) divided by population. Money is not everything, but one could also argue that money is needed to buy everything to fill the basket of basic needs listed above. Hence, GDP growth is an essential ingredient for socio economic development.

Politico-economic cycle

Politicians use their power to interfere in almost all areas relating to socioeconomic development, and navigate the country either to economic prosperity or to disaster. That is how the political economy comes to the picture. Politics is about elections, and elections are about the economy. The economic benefits to be given to masses take top priority in almost every election manifesto, the only exception might be the last presidential and general elections which were decorated with the slogan of ‘good governance’ by the then opposition, now in power.

In order to satisfy the voters so as to retain power at the next election, politicians have a tendency to give hand-outs like cash transfers to households, food subsidies and various other welfare benefits through populist policies. Another mechanism commonly used to attract the voters is to create public sector employment for them. These kinds of preferences invariably lead to raise Government expenditure, budget deficit, public debt and money supply. The outcomes are high cost of living, subsidy cuts and various other hardships which prompt the voters to change the regime through periodic elections. This is the vicious politico-economic cycle that we have experienced over so many decades.

Sri Lanka cricket and the economy

Recently, I came across a timely newspaper article written by Dr. Indrajit Coomaraswamy, Governor of the Central Bank and champion sportsman, condemning the unruly behaviour of a group of local spectators who reflected their anger against our own cricket team for their humiliating defeat at a cricket match with India. I totally agree with him in condemning such unbecoming conduct of those spectators. Undoubtedly, such behaviour has adverse effects on the country’s international image, as rightly pointed out by the Governor.

Moving from the cricketing world to economic realities, I would like to stress here that the plight of our economy is no different from that of our beloved cricket team. The root cause of the problem of the downfall of the cricket team is political interference, according to some sports analysts. Although I do not have sufficient information to subscribe to that argument, I am able to contend that political interference is the root cause of the multiple socioeconomic problems that have ravaged our motherland since Independence. The short-sighted policies implemented decade after decade under the guidance of the political masters with elections in their minds have driven the country to a very gloomy destiny by now, as I will highlight in this article.

Just like our fielders who missed so many catches in recent cricket matches paving the way to their successive defeats, our policymakers too missed many opportunities that could have been exploited to uplift the country from the economic mess. The two turning points that stand out among such ‘catches’ are, (a) liberalising the economy by the UNP Government in 1977, and (b) ending the 30-year war by the SLFP-led Government in 2009. So, credit should go to both political parties. Both turning points brought widespread economic benefits to the country and boosted investor expectations. Unfortunately, the growth momentum got diluted in no time after those landmark events owing to various reasons, mostly dominated by political interests.

In my opinion, the much-publicised massive corruption taking place in the country at the highest political levels in recent times causes far more devastating damages to Sri Lanka’s image, in front of today’s competitive business world, than those caused by the misconduct of a group of hooligans at an isolated sports event.

Resource imbalances not addressed

The country’s economic growth is constrained by severe imbalances which can be simplified by the ‘two-gap theory’. First, there is the domestic savings gap resulting from low savings in the private sector and dis-savings in the Government budget. Second, the excess of imports over exports causes the foreign savings gap. These two gaps compel the country to borrow indefinitely from domestic and foreign sources, and getting caught in a debt trap.

Borrowings from domestic market sources to finance the budget deficit pre-empt resources from the private sector, and raise market interest rates. If these borrowings are mobilised from the banking sector the money supply will rise causing high inflation. Politicians seem to prefer such ‘inflation taxation’ that mostly affects the poor, rather than taxing the affluent with rigorous enforcement.

The resource imbalances have led to misalign the macroeconomic fundamentals. But no effort seems to have been taken so far to rectify these fundamentals.

Political influence on fiscal policy

The trade-off between welfare and growth has haunted the annual budgetary preparation exercises of the successive governments since Independence. Populist policies have taken a prime place in budget proposals for political survival of the ruling political party, thus undermining the market reforms that are needed to correct the disarrayed macroeconomic fundamentals so as to facilitate economic growth.

In 2016, the budget deficit was 5.4% of GDP reflecting an excess of Government expenditure (19.7 of GDP) over revenue (14.3% of GDP). This year’s budget deficit too is going to be well above 5 percent of GDP. The accumulated foreign debt which amounts to nearly $ 50 billion is a disturbing concern, given the stagnant export earnings.

The expansion of public sector employment by all regimes to the tune of 1.5 million employees has led to absorb as much as 33% of total Government expenditure for salaries annually. Welfare transfers to households including Samurdhi payments, food subsidies and other benefits accrue 18% of Government expenditure. Interest payments account for 35% of total expenditure. Escalation of foreign borrowings to fund the huge infrastructure projects undertook by the previous regime has caused rapid accumulation of foreign debt with high interest rate commitments, and a corresponding increase in debt service payments, though some of those projects are essential for the country’s progress.

In spite of the election pledges given by the ruling party to the Federation of University Teachers’ Association (FUTA) to allocate 6% of GDP for education, the actual allocation (for both school and higher education) was only 2% of GDP last year, and the same ratio remains this year as well, according to the budget estimates.

The total tax revenue which amounts to only 12% of GDP is mainly generated from indirect taxes imposed for goods and services consumed by the masses, and hence, they have to bear the bulk of the tax burden. The indirect to direct tax ratio is 80:20, and the new Inland Revenue Act is claimed to mobilise more income taxes so as to change this ratio in favour of low-income earners. The outcome of this reform is yet to be seen.

Central Bank independence at stake

Politicians display an inflation-bias in formulating policies, as they prefer to please the electorate by offering various hand-outs at the expense of price stability, as discussed earlier. It is the prime responsibility of the Central Bank to insulate the economy from such political pressures and to ensure price stability. This is why so much attention has been given worldwide for central bank independence.

Although price stability is a prime objective of the Central Bank of Sri Lanka, the leeway available to conduct its monetary policy towards that end is extremely limited, as the bank has to wear several hats at the same time. Apart from the conduct of monetary policy, the Central Bank has to act as the fiscal agent and the manager of the public debt, and also as the manager of the provident fund. At the same time, the foreign reserves of the country come under the purview of the bank.

Currently, the inflationary pressures are building up as reflected in the year-on-year rise in the consumer price index by 6.0% in August 2017, as against 4.4% a year ago. This calls for tightening of the money supply growth which is currently running at high of 23% on annual basis, compared with 17% a year ago. However, the Central Bank has not raised its policy rates since the marginal upward revision effected last March. A reason for this would be the bank’s concern about the possible adverse effects of a rate hike on Government borrowings.

Thus, the objectives and functions of the Central Bank are conflicting most of the time, and the bank is bound to follow the directives of the Government when disputes arise, as per Monetary Law Act. Specifically, the bank’s independence has been severely restricted by its obligation to accommodate Government borrowing requirements. This is reflected in the amounts of six-month advances given by the bank to the Government which always exceed the statutory limit of 10% of Government revenue.

The Treasury bond scam poses many questions on the independence and the credibility of the Central Bank in recent times. Further, shifting the subject of central banking and monetary policy from the Ministry of Finance to the Ministry of Policy Planning and Economic Affairs headed by the Prime Minister in September 2015 could be interpreted as an attempt to belittle the limited independence that the Central Bank had enjoyed previously. The bank is required to consult the Ministry in formulating monetary policy according to this arrangement. Thus, the Central Bank seems to have lost its autonomy with regard to monetary policy matters altogether leaving no hope for inflation targeting, as envisaged in its monetary policy framework.

Future outlook and way forward

According to the official projections, the annual GDP growth rate is expected to remain flat at 5% during 2018-2021. This is somewhat disappointing, as it is lower than the annual average growth rate of 5.1% maintained during 1977-2016. This reflects economic stagnation. Currently, the country is unable to move forward with its obsolete ‘factor-driven’ growth model which had lifted growth rates to a higher trajectory from the late 1970s up to mid-1990s by mainly utilising cheap labour inputs and foreign direct investment (FDI) for garment factories. As the next step, the ‘technology-driven’ growth backed by knowledge-based economy is not forthcoming due to the policy misalignments that I elaborated in this article. FDI inflows to Sri Lanka remain less than 1% of GDP, in comparison with 6% of GDP in Vietnam and 4% of GDP in Malaysia.

The annual rate of inflation is projected to be at 5% during the next four years without reflecting any deceleration. This calls for further depreciation of the rupee, and the implicit exchange rate derived from the official projections indicates an annual depreciation of around 2% in the next four years with a resultant fall in the value of the rupee to around Rs. 180 a dollar by 2021.

The present Government’s economic agenda is not clear though the PM has presented several economic policy statements to the Parliament from time to time. The next one is scheduled to be presented this week. There does not seem to be any firm political commitment towards resource balancing or market reforms in any of these statements.

The Government’s flagship project Megapolis, which originally envisaged FDI inflows to the tune of $ 45 billion during five to 10 years, does not seem to take off so far in the context of extremely low levels of FDI inflows.

Meanwhile, the Economic and Technical Cooperation Agreement (ETCA) to be signed with India is unlikely to be of any help to overcome the current economic problems. Such agreements with numerous countries will get very complicated over time, and they will eventually become “spaghetti bowls”, as articulated by the renowned trade economist Prof. Jagdish Bhagwati of Columbia University. It is miraculous to expect any trade expansion through preferential agreements without putting the house in order as elaborated in this article.

Putting the house in order is nothing but correcting the macroeconomic fundamentals and executing the market reforms. Strong political commitment is needed for the success of these adjustments.

(Prof. Colombage, Emeritus Professor, Open University of Sri Lanka, can be reached at sscolom@gmail.com)

When a politico-god’s existence is in question

 Why wallowing in the depths of despair is childish and would be counterproductive for the Government

“Human misery must somewhere have a stop; there is no wind that always blows a storm.” 
-Euripides

2017-09-06

Human misery is an unequalled equaliser. Its presence, almost in every corner in this vast and speckled globe, is reminding each of us that human life could be incredibly unfair. The unending drama mostly ends in unspeakable tragedy.

Many sagas remain untold and concealed behind a mist of unevenness. Since the dawn of time, since the Neanderthals hazarded out of the caves, man has travelled a long path and its winding way has taken him along, making him, sometimes gravely frail and others extremely proud and brave.

Those who end up being brave had gone through this and endured many a hardship and adversity; they had withstood the ridicule of many and a rare tribute of a few. Yet, man has advanced to the point where he is today. But the advancement has mainly been in the accumulation of material-wealth and worldly pleasures.

That process of accumulation has not been made at a cheap price.

What man has sacrificed to make that process possible was mainly facilitated by his inherent avarice. The same curiosity that prompted the ancient Neanderthal to venture outside his cave has turned into a more self-centred pursuit of bare and unpretentious greed.

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• Today we are saddled with that culture: One of corruption, nepotism, bribery, dishonesty and maddening apathy. 
• What man has sacrificed to make that process possible was mainly facilitated by his inherent avarice. 
• The same curiosity that prompted the ancient Neanderthal to venture outside his cave has turned into a more self-centered pursuit of bare and unpretentious greed. 
• Avarice, greed and self-centered ambition then overrode that ingenuity of intellectual curiosity 
• Apathy and submission gave rise to a false belief the new culture of accumulation of wealth by whatever means is acceptable.
• Bandaranaike’s actions did not meet his lofty rhetoric on the political platform. 

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That greed was provided space and time by his drive to accumulate power over his fellow individuals and those who engaged in this enterprise are called leaders and those leaders are the politicians today.

 Avarice, greed and self-centred ambition then overrode that ingenuity of intellectual curiosity albeit all religious teachers preached the grave consequences, both in terms of material and spiritual sense.  Man who once worshipped an unseen and unknown entity called ‘God’ then began worshipping those ‘Gods’ who are among them, visible, felt and touched in flesh and bone.

Today’s politicians all over the world, some elected by the people and others who usurped that power of a politician through violent revolutions or bloodless coup d’états, are no exception to that rule.
A new culture that was building over the last few decades in Sri Lanka has entrapped the imagination and lives of the masses. A collective submission of mind and heart to these vultures of power, politicians, has caused the creative mind to be one of apathetic instruments at the ease and fancy of politicians.  Its manifest display of apathy and submission then gave rise to a false belief that this new culture of accumulation of wealth and power by whatever means is real and acceptable.

Pundit Jawaharlal Nehru, in “The discovery of India”, penning in some of the best English prose, a description of the Indian middle classes of the early 1900s, especially the new petty-bourgeoisie, writes thus:

“Custom-ridden, they were born old, yet they were without the old culture. Modern thought attracted them, but they lacked its inner content, the modern social and scientific consciousness.” (The Discovery of India, Page 360).

Nehru’s description of the 1900’s Indian petty-bourgeoisie suits ideally the Sri Lankan middle-class.

Today’s politicians all over the world, some elected by the people and others who usurped that power of a politician through violent revolutions or bloodless coup d’états, are no exception to that rule. 

The Sri Lankan middle-class emerged in the mid-1900s; its progress from the mercantile-class to a modern middle-class is fundamentally a progression from a feudal system that was inherently more caste-ridden than class-oriented. Its subservience to the old British masters and its stout allegiance to their language and education system made it harder for any patriotic transformation as was the demand from the vernacular-speaking Sinhalese Buddhists, who comprise nearly three fourths of the country.

The widening gulf between these two significant segments of the local population was at first too latent to the Sinhalese leaders in the country, except of course, for one particular rising star- S. W. R. D. Bandaranaike.

Bandaranaike’s allegiance to this rural class, either middle or poor, although seemed to be a deeply seated belief and trust in uplift of that segment of our population, later proved to be a mere ladder for his personal political climb.

Yet, after coming to power in 1956, his implementation of the Swabhasha and nationalisation programmes indicated that his commitment to his rhetoric was not all that untrustworthy.

But intervening ethnic violence and his withdrawal from the notorious BC Pact (Bandaranaike-Chelvanayagam Pact) signed with S. J. V. Chelvanayagam, the then leader of the Federal Party,
facilitated the portrayal of SWRD as a weak-kneed leader, who would not go the extra mile to uphold his promises.
This characteristic of SWRD is extensively described by James Manor in his biography of Bandaranaike, ‘Expedient Utopian’ that ‘Bandaranaike’s actions did not meet his lofty rhetoric on the political platform. This trait is however, not limited to Bandaranaike. Almost all our politicians are of the same despicable strain. Quite apart from his apathy towards this gulf between his rhetoric and action, Bandaranaike is also responsible for introducing ‘lack of accountability’ amongst his own ranks.

This lack of accountability on the part of the country’s leaders permeated to his lower ranks and then to the country at large. Dedicating the country to the common man is not giving way to the ruffians and hooligans who started behaving like political carnivores inside and outside Parliament.

The sad irony is that this unruly and obscene conduct is continuing to date. The common man has some unbelievable commitment to the lofty ideals of life; his values, more often than not, could surpass those of the so-called sophisticated pukka-sahibs in Colombo.

Yet, when lack of education is combined with a misplaced sense of ‘commonness’, what arises is an utterly vulnerable sense of freedom, a ‘freedom of the wild ass’.

Bandaranaike also gave rise to that ‘freedom of the wild ass’, which today’s politicians treat as a passport to indulge in the most dishonest and nihilistic acts of corruption. Seeds of an immoral and degenerate culture that later blossomed out took deep root.

That is the culture which is being cultivated and cherished by all our politicians of today. This melancholic social dynamic has been primarily instrumental in shaping the character and demeanour of the average politician, from the Pradeshya Sabha member to a Minister.

Furthermore, when strains and residue of that culture creep down to the Civil Service, which is responsible for implementing government policies and programmes, the totality of a nation changes.
We are witnessing the repercussions of that change. It is not only injurious to the lives of the people, it is also dangerous to a progressing socio-economic organism of a community that is struggling to rise from the debris of a thirty-year war.

What has befallen is a transformation of a society from a loosely trending, woven-traditions and practices into a ‘culture’ of more lasting and enduring genus. Culture is not a loose concept. It is a collective expression of a people in joy or in grief, in pain or pleasure and in submission or defiance.
That collective expression of a people is more enduring than the material wealth and power man has amassed over the centuries.

Yet, when faced with destruction or displacement, the old gives way to the new, slowly at the beginning and then at an accelerated pace at its vanishing end.

Its significance and inherent influence cannot be overstated nor its elemental fragility understated.
Today we are saddled with that culture: One of corruption, nepotism, bribery, dishonesty and maddening apathy.  Changing the guard does not seem to be sufficient, for it seems extremely hard for the new guard to protect the gates of Government against a marauding army of corrupt and corrupting forces of yesterday.

Nevertheless, what has been passed down to the new Government needs to be wiped out without mercy, without taking any prisoners. It is easier said than done.  There is no two-thirds majority in Parliament; there is no overwhelming stamp from the majority of Sinhalese Buddhists. The country, the Sinhalese Buddhist majority, and its religious leaders are preoccupied with so-called ‘love for the soldiers’ and a sense of pseudo-patriotism has enveloped them like enslaved prisoners in a crowded, rusty jail. The current set of politicians, both Government and Opposition ranks, are woefully unaware of the obliteration of the very fabric of our national heritage, this new culture is causing. A strategic insight needs to be attempted without any delay.  For that, an iron will is a prerequisite. Both President and Prime Minister need to agree that the damage that the culture of corruption is causing can and should be replaced, at least some meaningful first steps need to be taken in that direction.

Wallowing in the depths of despair and desperation is childish and would be counterproductive.

‘This man has overcome two of the greatest failings in human nature -he knows neither fear nor hatred’, mused Winston Churchill about Jawaharlal Nehru, the first Prime Minister of India.

To earn such unmatched tribute, Nehru must have been an exceptional leader in his time. Sri Lanka needs such a leader, a man who knows neither fear nor hatred.

The writer can be contacted at vishwamithra1984@gmail.com

My Kind Of Buddhism: No Prayers To Anyone

By Shyamon Jayasinghe –SEPTEMBER 1, 2017

Shyamon Jayasinghe

My kind of Buddhism isn’t anything dogmatic. It doesn’t consider the Buddha as omniscient. I study the Buddha, with whatever resources available, as I do study any great philosopher – Socrates, Plato, Aristotle, Bertand Russel, Emmanuel  Kant or Ludwig Wittgenstein.

Space for Controversy in Buddhist Interpretation

In the case of both Buddhism and Christianity the authors or founders never left anything in written or coded form. In both instances, what we have in written form now are ‘memorised,’ accounts said to have been handed down from word of mouth through a coterie of close followers. The first Buddhist texts appear around 500 years after the Buddha’s passing away. Said renowned British Buddhist scholar, and founder of the London Buddhist Society, Christmas Humphreys (1951), “we, therefore, do not know what the Buddha taught, anymore than we know what Jesus taught.”

Today’s scholars would argue that Humphrey’s view is rather extreme since methodologies are available to ascertain somewhat the core teachings of the Buddha. On the other hand, the available space for controversy in the case of Buddhism is still significant and the grey and the dark patches do nag the honest finder. The consequence of this uncertainty is that we have today at least four schools of Buddhism, with subdivisions in each, proclaiming their view of what Buddhism really is. There is, in a sense, no one Buddhism but many Buddhisms.

Standing, as I do, on this marginal line of uncertainty gives me some liberty to speak out about my own preferred likings and leanings with regard to the bones of Buddhist doctrine.

Down-to-Earth Empirical Focus

What stands out in a distant view is that Buddhism was originally not a religion at all but a philosophy. It is a humanistic spiritual teaching that is  dominantly empirical. Buddha’s teaching is not top-down or derived from revelations by a divine being, a prophet, or a supernatural force. Buddhism starts from bottom-up. This means the Buddha observed and examined the objective reality of our lives as experienced by humans. He starts from natural, empirically observable phenomena out there, which we all can see and touch and smell and hear. He builds a metaphysic from there that explains all phenomena-natural and human- as arising out of a cause-effect nexus that he  named as ‘Paticca Samuppada,’ (Pali) or Dependent origination. This special doctrine of causality is inherent like a common thread throughout Buddhist teaching.

The principle is simply stated in the Majjima Nikaya thus:”When this is, that is; This arising, that arises; When this is not, that is not; This ceasing, that ceases.” Every event in nature, human life and every phenomena is explained as having being an outcome of certain given pre-conditions. There is no place for a first cause or uncaused cause in the Buddhist scheme of things. This being the case, there ins’t any role for supernatural forces or factors. Our own plight as humans are likewise explainable as having gotten an existence from the operation of preceding given factors-by  our own creation or by the creation of others. The fault, dear Brutus is not in our stars but in ourselves.

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