Peace for the World

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

Saturday, October 7, 2017

Constitution making: Merely playing with words won’t do

NewsIn.Asia
By Veeragathy Thanabalasingham/Daily Express-By  on 
Two weeks have passed since the presentation of the Interim Report of  the Steering Committee of the Constitutional Assembly to the  parliament of Sri- Lanka by  Prime Minister Ranil Wickramasinghe.  As in the case of the release of the reports of the six sub- committees, this report also has created a furor among  nationalist sections of the Sinhala polity that have always been in the forefront of opposition to any move taken by th current dispensation to address the legitimate grievances of the minorities particularly Tamils.
From the very inception of the constitutional reform process one and a half years ago, these nationalist forces, with the support of the Joint Opposition led by former President Mahinda Rajapksa, have been engaging in a virulent campaign  to mislead the majority community saying that the Yahapalanaya  (Good Governance) government is trying to impose a new constitution in an attempt to appease the Western world and the Tamil Diaspora eventually paving the way for the division of the country.
In the wake of the release of the Interim Report, they created a controversy that the government has embarked on a process to change the “unitary” character of Sri Lankan State and deprive Buddhism of the foremost place given to it in the present constitution.
There is no doubt that the Tamil people do not believe that there can be a reasonable  or meaningful political solution that would meet their legitimate political aspirations within a unitary state. But the moderate political forces that represent the Tamil community now, particularly the Tamil National Alliance led by leader of the opposition in Parliament,  have  been co – operating with the government led by the President  Maithripala Sirisena and the Premier Wickramasinghe in the hope of finding a viable political solution even at the possible risk of losing the confidence of their people.
And all the parties that represent the minorities in Parliament have almost agreed to a proposition wherein, Buddhism  is given pre – eminent place in the new constitution, as enshrined in the current constitution,  provided  other religions are not discriminated against  and enjoy  freedom.
But the Joint Opposition and it’s Sinhala Buddhist hard line allies, in an attempt to thwart the entire process of constitutional reform,  spread a canard that the future of their religion and  it’s heritage are doomed.
They are making a beeline to meet the Mahanayakaya Theras in Kandy and seeking their intervention to safeguard the ‘Motherland’  from being converted into a secular country.
The Mahanayakas, especially  the Most Venerable  Thibbadduwawe  Sri Sumangala Thera of Malwathu Chapter,  has been repeatedly saying that the President and the Prime Minister had assured  him that the there would be no change in the status of Buddhism and therefore  is no need to be alarmed.
But the hard line  forces are not prepared to heed even the High Priests and continue their mischievous  propaganda. A few days ago, the leader of the Joint Opposition  in parliament, Dinesh Gunwardena, met the Malwathu  Mahanayake  Thera and complained that the government is planning to pomulgate a “federal” constitution that would  eventually lead to the division of the country on ethnic lines and sought his intervention.
R.Sampanthan with his colleagues in the TNA
The Mahanayaka Thera told the veteran parliamentarian,  known for his rabid opposition  to any meaningful move to solve the national question to the satisfaction of the minorities, that government leaders are continually assuring that they will never allow the country to be divided.
The Mahanayaka Thera pointed out that Gunawardena is also a member of the committee entrusted with the drafting the constitution, and if there was any provision detrimental to the interest of the country, he must have been  in the know and could have oppose it.
The Mahanayaka Thera said that when government leaders are assuring that they would never embark on any process harmful to the country, opposition politicians are  saying the opposite. He said he did not know who to believe under these circumstances. What a pathetic situation!
It is significant that the political forces which are against political reforms are well organized and vocal whereas the government is not assertive in its stance. The government leaders have always been on the defensive where as the Joint Opposition politicians, especially the former President and his nationalist allies, are on the offensive.
The stand taken by these forces is determining the direction of the political debate. Government  leaders are only responding to the accusations of the opposition and playing into the hands of the forces that are against democracy and reforms.
When these forces spread canards regarding the constitution making process, the President and the the Prime Minister are not effectively countering them and  explaining  the real situation.
The government leaders do not have a constructive approach to the question and have failed to take the majority community into confidence and win over their support and co-operation.
That has been the main cause of the chaotic situation regarding to the constitution making process. The meaningless criticisms leveled by the hard line forces have to be rebutted by the President or the Prime Minister immediately before they mislead the people.
The leaders of the government are not  helping the moderate Tamil political forces which are working genuinely for a new constitution in the hope of finding a lasting political solution and retaining the confidence and the support of the people they represent in parliament.
Dinesh unawadena a top leader of the Joint Opposition in the Sri Lankan parliament
The Sinhala majority   must be made to realize that if the country is to continue to enjoy  the “no war” situation, a meaningful political solution must be found to satisfy the legitimate political aspirations of the minority communities and  address their grievances.
Without  concerted and dedicated efforts in this regard by the government and the liberal  forces of the South, there will be no chance of bringing about constitutional reforms.
Interestingly, the Constitutional Assembly Steering Committee’s Interim Report is largely a document comprising ethnically sensitive issues. In the light of this report one would wonder whether at present constitution making in Sri Lanka is nothing more than dealing with the ethnic issue or “national” question.
Going by the report, it seems that what is to be promulgated is certainly not a new constitution. The report  suggests the continuation of most of the features of the present constitution.
There is consensus  on the concept  of power sharing at the provincial level. On the Nature of the Sri Lankan State, the  report  proposes the continuation of the Sinhala term ‘aekiyaraajyaya’. Though the present Tamil term ‘ “otraiaatchi” might change to ‘orumiththanadu’ the report suggests that the English term ‘ unitary state’s  be dispensed with.
This is nothing but playing with words without seriously considering the magnitude of the issues on hand.
Such verbiage is an insult to the intelligence of the Sri Lankan people. Mere change of words cannot ensure any solution to the problem. After many decades of suffering the Tamil people are not going to be carried away by this charade.
The Interim Report has given its recommendations in the form of options. But  the President and the Prime Minister have come out with the assurance that there will be no change in the unitary character of the state.
Under these circumstances, where is the room or opportunity for an informed and constructive debate on the interim report? What is most needed is the sincerity of the main stakeholders in the Sinhala polity, particularly the two main political parties. They should  not appease communal forces that are hell bent on thwarting the entire reform process.
If the present opportunity is squandered, we Sri Lankans are not going to have any chance to talk or even think about a constitutional change in the foreseeable future.
(The featured image at the top shows President Sirisena with the Mahanayake Thera of Asgirya Chapter)  

Misbehaving Clergy Must Face The Law

Shyamon Jayasinghe
“if you maltreat a penguin in the London Zoo you cannot escape the law on the grounds you are the Archbishop of Canterbury” ~ Lord Bingham.
Buddhist Monks are All Over
logoThe Buddhist clergy are all over Sri Lanka these days! Name a TV channel, and a monk is there. Name a street protest, and a monk is there. Name a subject, and  a monk articulates about it. Even if it be the constitution, a monk knows it-although we have only a subcommittee report before us at this stage. It doesn’t matter. Some monk or another will rise up in a stadium and analyse the constitution or what he thinks the constitution is going to be.
The fact is, after the landmark decision of monks to enter parliament under the banner of the Jathika Hela Urumaya it has never been good days for the Sanga. One wonders what is happening in their temples? Villagers who flock for a Pooja? To tie a Pirith Nool? To seek consolation under the  Dhamma? To practice meditation? Where have the monks fled?
Sri Lanka had a short time like this soon after the victory of SWRD Bandaranaike and his MEP. in 1956. I remember those days vividly as a youth. However, that era ended with the assassination of SWRD himself by two monks -Somarama and Buddharakhita. Civil society spurned monks for a long time after that. But here, we are now in a repeat of that era. Hope this, too, would not need a tragedy of that sort. The fact that civil society had been able to curb the previous episode is a clue to the solution of Sanga omnipresence. Only organised civil society can curb all this.
Violence
Unlike in the old days, we have Facebook and social media catching images instantly and relaying them to the world. Fortunately, nobody can censure that. A good and effective social control device. The images being splashed daily over social media seem to dramatically question whether Buddhism is any longer the most peaceful religion in the world. What’s the difference from Islamic fundamentalism? Perhaps guns have not yet entered the scene.
Many images show monks lunging forward in hateful manner to shout protests or to assault. I have heaps of them sent to me by friends. If proof be needed I can furnish that.
Some months ago, we had Galagoda Atte Gnanasara once again in action going at Muslims. This man is so ingenious that he even imported Myanmar’s violent protest -monk called Wirathu to Sri Lanka. That was during the previous regime. Gnanasara is kept under some control now; yet government is scared to act against him. When questioned after the Kurunegala episode months ago as to why Gnanasara isn’t arrested despite court orders to do so, a cop exclaimed: “how can we arrest a Buddhist monk.?”
Recently, we had news stories about monks belonging to some Sinhala Jathika Balamandalaya gathering around a safe house where Rohingya Muslims are being kept. These monks lashed filth and assaulted some of the Muslims. These hapless Rohingya people and their trailing little families were rescued by our navy and brought to the safe house under UNHCR instructions. However, our knowing monks rushed to the scene and abused the poor folk who had their eyes looking for mercy.
One of the offending monks have been arrested while the other heroic one is in hiding. A nasty Facebook comment on the image of the arrested monk entering the police van remarks: “Go in the van and reach Nirvana quickly!” Public anger is there, but it is not organised  and those against the government stand aloof or enjoy with vicarious pleasure.
This sector of monks seem to know everything accept the Dhamma. Where are the  four Brahama Viharas of karuna, metta, Mudita and upekkha? Could any human treat vulnerable and helpless families so cruelly looking in their eyes that cry for mercy?
After Gnanasara and before these two anti-Rohingya monks performance we had the case of a high profile monk who was charged with the theft of elephants and also charged with the abuse of the public address system. This case is at large.
The trend seems exponential and we will see more of this unsavoury developments in the future.
Violating the Vinaya and Transgressing the Law
Violating the Vinaya rules pertaining to the conduct of monks and transgressing the laws of the land are two separate classifications off misbehaviour. As far as the Vinaya rules are concerned they are supposed to be enforced by clergy authority itself. On the other hand, the problem about the Buddhist Sanga is that there isn’t any hierarchical command line that can execute this task. It is sharply different with the Christians and Muslims. The Catholics have a strong hierarchy of parish heads, bishops, archbishops -all going up to the Pope in the Vatican. This isn’t the case with the Buddhist Sanga where Mahanayakes are mostly symbolic positions. The individual Buddhist monk thus possesses a free space to act. In the ancient history of the Sanga, Sri Lanka did have an abundance of individual monks who were thoroughly disciplined and deeply tied to their vocation. They spent their time in temple and in scholarship as our temples became the only formal institutions of learning for a longlong time. It is a different game nowadays. The social and religious scenario is changing radically. No longer are temples the sole institutions of education.

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Audit report on Central Expressway, SriLankan Airlines to Parliament this month


Disna Mudalige-Friday, October 6, 2017
The special audit reports on the Central Expressway and SriLankan Airlines will be presented to Parliament this month, Auditor General Gamini Wijesinghe said.
Speaking to the Daily News, the AG said today that his Department is currently working on these audit reports as per the instructions of the Committee on Public Enterprises (COPE).
The two reports will be handed over to the Speaker and the COPE Secretariat. 
The report on the Central Expressway deals with the procurement procedure followed with regard to the construction of section three of the Central Expressway and the report on the SriwLankan Airlines deals with the order made to purchase 8 long distance airbuses and its cancellation.
“Both these are serious and complicated issues. Our teams are now collecting the necessary documents pertaining to the audit,” he said.
Commenting on the order of eight A350 airbuses to the SriLankan Airlines, the AG termed it as “an insane decision” that resulted in heavy financial burden to the country.
“The SriLankan Airlines ordered those eight aircrafts at once despite the fact that it was already incurring massive loss. It was done without knowing any means to repay and without knowing any route to operate them. Certainly it was not done thinking of the future market,” he said. 
The AG pointed out that he would not term the additional cost the Government had to bear in cancelling the aircraft deal as a “loss”.
“Had the Government proceeded on the deal the total cost the Government has to bear would have been enormous. We will indicate that figure in the report. The compensation payment was to avoid that plight. Already Rs 16 billion has been paid as compensation to cancel four airbuses and the last payment in that regard is still to be made. The amount of compensation for the rest of aircrafts is yet to be negotiated,” he explained.
The AG, further observing that the SriLankan Airlines came under the scrutiny of the AG’s Department very recently, said the Department audited it for the first time last year. The AG also said a ‘performance audit’ on the SriLankan Airlines is being conducted now, adding that the payments made to its management would come under scrutiny during the audit. “We understand that there are certain issues over the payments made to its top management. The details of them will come out when we present our 2016 audit report with regard to the SriLankan Airlines,” he stated.    

Myanmar: A Good Example for Politics of Polarisation

Historical circumstances that led Myanmar to the current quagmire have many parallels in Sri Lanka. Like Sri Lanka, Myanmar was under the British colonial rule. The strategy of domination in both was “Divide and Rule”.


by Lionel Bopage  -    

                                                                                    
Introduction 
( October 5, 2016, Melbourne, Sri Lanka Guardian) The Rohingya are the world’s largest stateless community. Most of them live in the western coastal state of Rakhine, one the poorest states in Myanmar. The majority of the Rohingya are Muslims and have for centuries lived in the majority Buddhist Myanmar. The Rohingya speak Rohingya or Ruaingga, a dialect that is distinct from other dialects spoken in Rakhine State and Myanmar. They are not considered one of the country’s 135 official ethnic groups and have been denied citizenship in Myanmar since 1982, which has effectively rendered them stateless. Since August 2017, more than half a million Rohingya have fled from Myanmar to Bangladesh alone.

The Reality of Suicide in Sri Lanka: Need for Data-driven analysis

Featured image courtesy Sumithrayo.org
Editor’s Note: This post contains discussion on the topic of suicide. If you feel you may want to take your own life, or are concerned about someone else who is likely to attempt suicide, talk to Sumithrayo (when dialling from within Sri Lanka, phone: 011 269 6666)
NALAKA GUNAWARDENE-on 
The World Health Organisation (WHO) estimates that close to 800,000 people die by suicide each year, with the majority of deaths occurring in low-income and middle-income countries. Many more attempt suicide. Suicide accounted for 1.4% of all deaths worldwide, making it the 17th leading cause of death in 2015. While this makes grim news, WHO also says that effective and evidence-based interventions can be implemented at population, sub-population and individual levels to prevent suicide and suicide attempts.

ABORTION LAWS SHOULD BE BASED ON STRONG MEDICAL & SECULAR GROUNDS, NOT ON RELIGIOUS BELIEFS – CHAIR, HRC-SL




Sri Lanka Brief05/10/2017

(DN/ 05 Oct 2017)Human Rights Commission Chairperson Dr. Deepika Udagama advocating on the revision of abortion laws in the country stressed that the public policy on health matters should not allowed to be dictated by religious lobbyists.

Speaking to the Daily News yesterday, Dr Udagama said her Commission is in full agreement with the draft changes to the law to permit abortion under strict conditions in the case of rape and if the fetus is malformed.

Joining in the on-going debate on relaxing abortion law, the Chairperson observed the public policy on health ought to be made on the basis of strong medical and secular grounds and not on religious beliefs.

“The Commission respects the religious views and freedom of speech of everybody, but these are issues that ought not to be decided on the basis of religious beliefs. Those who have such religious beliefs can make personal choices even if abortion is permitted on the above mentioned grounds,” she noted.

Dr Udagama, observing that the abortion is a public health issue that affects the reproductive rights of women, highlighted the need to have a modern and healthy debate over it in Sri Lanka.

“We have to look at what is going in the rest of the world as well. Sri Lanka has already undertaken obligations in this regard by ratifying to the UN convention on the Elimination of All Forms of Discrimination against Women (CEDAW),” she said.

She recalled even in 1995, when the Government proposed an Amendment to the Penal Code with the aim to relax abortion laws, it could not be presented to Parliament due to religious lobby.

“The discussion on abortion laws has been there for decades but it has always been centered on religious beliefs. It is time we think seriously on the health rights dimension of this problem. We believe it is a very important reproductive health issue for women and medical sciences do back up this position,” she added.

Do the GMOA need an anti-SAITM president for SLMC? - Saman Rathnapriya

Do the GMOA need an anti-SAITM president for SLMC? - Saman Rathnapriya

Oct 06, 2017

National Trade Union Front convener Saman Rathnapriya said that GMOA (Governmnet Medical Officers’ Association) and students’ movement not happy with the appointment of Professor Colvin Gunarathne as the president of the Sri Lanka Medical Council (SLMC) at a press conference held today at the office of Government Nursing Officers Association (GNOA).

“GMOA and student movement pointed out that Professor Gunarathe is a pro-SAITM person. If so, do they need an anti- SAITM president for SLMC? Some of Joint Opposition politicians said that Professor Gunarathe was a national list candidate for the last election, but it is wrong. JO politicians misguide the nation and spread fake information.”
 
Showing the gazette notice about the national list of the candidates to the media Rathnapriya told that Professor Gunarathne’ name was included for the national list of pro-Mahinda Rajapakse.
 
“We urge the government to take prompt action to solve the SAITM issue.”
 
Rathnapriya welcome the governments steps have been taken for benefit of the health service and SAITM.
 
Reported by Lawrence Ferdinando

English:Our or their way?

At the same time, concurrently English Our Way is the official policy regarding the teaching of the language in our schools, and I believe in our universities too
The problem with English Our Way, which I have written on elsewhere and have explored with unabated interest, is roughly the same problem with affirmative action policies 
Those who were elected to power, who then transformed a much needed social process to a narrow-minded, chauvinistic political process 
What’s forgotten here is that in as much as what transpired after 1956 was an uprooted social process, what existed before it could hardly be referred to as an arcadia
Anagarika Dharmapala
2017-10-06
Because of the colonial baggage it’s associated with, English as a language is both a hiramanaya and kaduwa. It allures us and distances us. We love it and are afraid of it. We want it but can’t have it. At the same time, concurrently English Our Way is the official policy regarding the teaching of the language in our schools, and I believe in our universities too. The concept as such is easy: Sri Lanka must get rid of its colonial baggage and that by being empowered to speak the colonialist’s language the way its people want. Warts and all. Taken it itself, there’s nothing wrong with this line of thinking. The proverbial devil, however, and as always, is in the details. 
Regi Siriwardena  
The problem with English Our Way, which I have written on elsewhere and have explored with unabated interest, is roughly the same problem with affirmative action policies, no matter how well structured and well intentioned they are, since at the end of the day both reward and even subsidise mediocrity. It’s one thing to praise your child when he or she plays the piano, it’s another thing to think of sending him or her to Juilliard even before the basics are picked up and mastered. English Our Way (which I will refer to as “EOW” hereafter) substitutes complacency for precision, encouragement for pedagogy, and, probably worse of all, staticity for dynamism. A language can’t be predicated purely on how a collective wields it, after all.   

In Sri Lanka and at the outset, English is still very much a marker of distinction, status, and privilege, as opposed to ability. The irony is that language being a great leveller has almost always been used, not to communicate, but to divide. The bigger irony with respect to English, however, is that its function as a social divider is based on how it is spoken. Not how it’s read or written. That’s why we still haven’t produced a great prose stylist, a great poet or novelist or even playwright, in English. Snobbery is and always will be, when based on a language, dependent on how the snobs, or the “uppities” as I call them, articulate. Not on how they write, not on whether they’ve read, and not on whether they’re productive. It’s less a matter of learning to wield it at all than of learning to get through the elocution class.   

A language is nothing if it isn’t made to live, to breathe. English, in our country that is, hasn’t been made to live and breathe for a long, long time, particularly at the hands of those who insist on speaking it for the purpose of social mobility. It’s largely a variant of my earlier argument for cultural modernity: if we don’t take to the world outside without losing our grip on our cultural sphere, we can’t progress one inch.   

The problem with English here is that we are divided between the gama and the city. Those in the gama, proverbially speaking, are legitimately interested in gaining worldly knowledge (in terms of literature, philosophy, popular culture, etc) for the betterment of their society. They lack the requisite skills in lingua franca, however. Those in the city, again proverbially speaking, are less interested in worldly knowledge than in spawning their peers. They have those skills. It’s a division between those who can do but don’t have, and those who can’t do but do have. The one aren’t endowed but can do wonders, while the others are but, pathetically, can’t.   

I am amused whenever those who lived and were educated at elite institutions before the 1956 election and revolt contend that they lived in peace and amity because there were no linguistic barriers: both Sinhalese and Tamil, and Muslims and Burghers thrown in for good measure, spoke the same language. English. What’s forgotten here is that in as much as what transpired after 1956 was an uprooted social process, what existed before it could hardly be referred to as an arcadia. No less a person than Regi Siriwardena, who himself was no basher of English, called a spade a spade when he cogently pointed out the mistake of this pre-1956 generation: confusing their privileged childhoods for the notion, and myth, that a completely English education had done away with the inter-ethnic rifts which were to emerge in the fifties, sixties, and seventies. It’s in this context that what happened after swabasha must be assessed.   

Swabasha wasn’t a misconceived project, but like EOW, its intentions, laudable as they were, concealed certain deplorable flaws. The thinking behind the movement that bred swabasha, which was contorted politically to yield Sinhala Only, was that no nation was going to develop without coming to terms with its history, its heritage. On the other hand this did not and does not mean a rubbishing of the colonialist’s language, or for that matter his customs. Anagarika Dharmapala, that much vilified national figure, was therefore careful in differentiating between absorbing the West and aping it: for him, we were preoccupied with the latter, not the former. That is why, as records indicate, he went to the extent of teaching the Sinhalese to eat with a fork and a spoon. Malinda Seneviratne wrote on this and observed the following: “Acquiring the weapons of the enemy or in the very least picking up mannerisms [makes] it harder for the enemy to distinguish himself/herself from the ‘rabble’.”   

Naturally then, swabasha never meant “letting go” of English. But that’s what we did. Those who were elected to power, who then transformed a much needed social process to a narrow-minded, chauvinistic political process, made it a habit to condemn the elite and the language of the elite while wallowing in it. They praised the game iskole, the sangha, veda, guru, govi, and kamkaru, while ensuring that their kith and kin didn’t go to that celebrated iskole but would learn their letters and obtain their higher education in the big city school and overseas. This dichotomy between practice and precept has been sustained all these decades, Sadly. One comes across them in very many speeches, by our officials, even today, when they speak about the wretched and the helpless. These officials aren’t bothered by the wretched and the helpless, of course: they just want to turn their sympathy for them into political mileage. 
 
By letting go of the lingua franca we gave into what those we fought against – the elite theoreticians and ivory tower scholars – had wanted all along: a different and more insidious form of social discrimination. What swabasha did was to hide away social divisions without really hiding them. By temporarily consoling the underprivileged, 1956 repressed their concerns and anxieties and at the same time sustained those divisions which had been ailing them until then. The problem wasn’t with the movement, clearly, but with the people who had been elected to direct it. It was as much an attempt at levelling our society as it was at getting that society closer to the kind of cultural modernity, rationality, and industrialisation that the likes of the Anagarika here and Tagore there, during the Bengal Renaissance, had envisioned.   

It didn’t take long for those concerns and anxieties, of the underprivileged, to re-emerge. There’s a symbiotic relationship in any country between the language of the discriminating minority, the language of the rabble, and the insurrections and revolutions such a rift provokes. It happened in Russia, where the mother tongue was discarded in favour of French (which readers of War and Peace will know is what the aristocrats speak), and it happened in Sri Lanka, twice: in 1971 and 1988. While it would be simplistic to root these in language barriers, they did have a say, and still have a say. Because those who are rather mediocre in the language fear it, they believe that their inability is a sign that it shouldn’t be learnt at all, which is why the children of 1971 and 1988 are the hardcore radicals the children of 1956, who were their fathers and mothers, were not. The latter were more often than not idealists, who genuinely believed that the country had opened up to them. It has not. Not yet.   

So after all these insurrections and calls to arms, after the stalled revolution that was 1956 was aborted, what do have today? A program that teaches us that language standards are very many, that there is no one standard or yardstick which can be used to assess ability and mediocrity. I am no originalist, and when it comes to English there probably are several standards (Indian, Jamaican, Singaporean, etc) which can be coupled with and separated from its birthplace. But there’s a difference between those countries and ours. That difference, which I pointed out above, is that we are still carrying that burdensome colonial baggage. India has, for the most, let go of this baggage: that’s why they aren’t bothered with diction and accents and even elocution (the latter of which I studied, and was chastened by). They don’t have the English-as-she-should-be-spoke mentality we do, which is how they developed over the years.   
To be sure, not everything in India should be emulated, after all theirs is a vastly different territory. But when it comes to the dissemination of English, which is so voluminous that it deserves a less sketchy treatment than mine, our neighbours provide a good starting point. Which is where I rest my case, for now: the more you give into the notion that mediocrity in a powerful language is alright, the more you give into the rift between the uppities and the underprivileged, between the have-nots and the snobs. Language is still potent, a divider as opposed to a leveller. It remains a sign of cultural hegemony. Even in India, and especially in Sri Lanka. English Our Way, by the looks of it therefore, may well be an extension, no matter how well paved with intentions the road to it is, of what we saw after 1956, 1971, and 1988.   

Confidential IMF report indicated previous Govt. hadn’t paid bills up to Rs. 1.2 trillion: Mahendran

By Himal Kotelawala-Saturday, 7 October 2017

logoFormer Central Bank Governor Arjuna Mahendran told the Presidential Commission of Inquiry on the controversial bond issuance yesterday that a confidential International Monetary Fund (IMF) report in his possession had revealed that in 2014 bills amounting to Rs. 1.2 trillion had not been paid by the then Government.

The previous administration, said the Former Governor, had suppressed these arrears in an attempt to “camouflage the problem” and “pretend everything was hunky dory.” Money had not been paid, he said, to, among others, the Road Development Authority (RDA), SriLankan Airlines, and “all sectors of the economy.” All of these bills, however, had been settled by 2015, he said subsequently.

Mahendran brought this to light in response to questions raised by Senior State Counsel Shaheeda Barrie on the Central Bank of Sri Lanka (CBSL)›s decision to forgo the hybrid system of private placement and auctions and replace it with a totally auction-based system on 27 February 2015.

Questioning the witness, Barrie noted that over 80% of the Government›s debt requirement, prior to this decision, had been raised through private placements. Mahendran, however, opted to call it a lopsided system rather than a hybrid one.

Commissioner Justice Prasanna Jayawardena asked Mahendran if he had expressed his views concerning private placements, as Governor, to relevant parties and in what fora.

The witness testified that he had made his views clear to primary dealers, CBSL›s Monetary Board and CEOs of banks at various meetings. He also recalled conveying his position to the Prime Minister, the then Minister of Finance and other Ministers at the Cabinet Subcommittee on Economic Affairs meeting held on 23 February 2015. However, he said he did not meet with primary dealers prior to the 27 February auction.

Senior State Counsel Barrie put it to the witness that minutes taken at a 23 February meeting held with Monetary Board members did not reflect any form of discussion about direct placements and auctions.

Mahendran responded that two or three sentences in the minutes refer to a desirability of extending the yield curve, which he claimed was an abbreviated way of saying that the market determination of interest along the yield curve had to be pursued.

«That sentence speaks volumes to the thinking of the Monetary Board,» he said, adding that given that the Government had a pressing debt bunching problem, with a lot of short term debt coming in and huge debt repayments coming from 2018 onward, it was indeed desirable to extend the yield curve.

Barrie, however, maintained that evidence previously led by Monetary Board members had indicated that there was no discussion pertaining to doing away with direct placements or the desirability of one system over the other.

Evidence from a former Deputy Governor had indicated, she said, that direct placement was used to achieve a degree of fiscal monetary policy coordination. She also pointed out that Mahendran had agreed that coordination was important. The evidence was that in early 2015 and before, direct placements were used as a tool to achieve, she further said, asking Mahendran if he did not know about this.

At this point, Mahendran said: «Let›s be blunt about what was happening,» testifying that the Government was borrowing too much to service its debt.

«Our Government was over-borrowed,» he said, adding that the «people the Learned Counsel referred to» had tried to suppress interest rates, which meant more money could not be raised. The statistics would testify to this, he said.

On top of this, the Government had announced a Rs. 10,000 salary increment for the public sector, he added.

In this context, said Mahendran, some analysts in the market had proposed controlling interest rates and suppressing them in order to lessen the debt service burden. His view, however, had been that this was not sustainable.

Chairman of the Commission Justice K. T. Chitrasiri at this point asked if this had not come up before, at which point the witness brought up the confidential IMF report, which he claimed to own a copy of.

«Rs. 1.2 trillion of arrears from 2014 were suppressed. The Government simply stopped paying to try and camouflage the problem,» he said, adding that, at the same time, it had reduced the borrowing and reduced the interest rate.

«I was terrified [in early 2015]. We had to resort to extraordinary measures,» he said, hence the rush to Washington seeking assistance from the World Bank and other institutions.

The other suggestion, he said, was to go back to the market system.

«Sure enough, it was a magnificent response from the local market,» he said, resulting in what he called spectacular auctions. The first auction alone attracted 220 bids, he added.

«We found a solution. If we had continued with private placements, we wouldn›t have been able to raise that money and the Government would›ve come to some sort of gridlock,» said Mahendran.

Barrie, once again pointing out that the witness had agreed that private placement was being used as a tool, asked what he had done to review the system objectively before suspending it.

«You were just one month in the job. You couldn›t have studied the data very well at that stage,» she said.

Mahendran responded that Sri Lanka had been implementing a policy of financial repression since around 2005, trying to suppress interest below what the market would determine to be a realistic level. The former CBSL Chief also attributed the GoldenKey incident to this policy.

There was consensus from the Prime Minister downward, said Mahendran, that private placements were undesirable and, more importantly, the system was not generating results.

There was no luxury of time to debate the issue when the Government needed «so much money in such a short period of time,» he said.

Justice Jayawardena observed that the unrecognised arrears amounting to Rs. 1.2 trillion in the IMF report would not have entered into the Treasury›s calculations of public debt for the month of March 2015.

«The report has nothing to do with whatever sum of money required by the Treasury in March,» he said, adding that it was something that had to be done in the future.

«Yes, and we were gearing ourselves to meet that demand in the future,» agreed Mahendran.

As far as February was concerned, continued Justice Jayawardena, the amount required was what had already been set out in the cash-flow sent to CBSL by the Treasury.

The Commissioner then asked the witness if he had held any discussions with senior CBSL officials including Public Debt Department and Deputy and Assistant Governors about the future of direct placements.

«Yes,» said Mahendran, explaining that he consulted as wide a variety of opinion as possible, and noted that private placements are permitted by the CBSL manual and that there is nothing intrinsically wrong with the system. His objection, he said, was to what “all sorts of embellishments” hat had grown around the procedure.

Justice Jayawardena again asked if the Former Governor had had specific discussions about the cessation of direct placements with senior CBSL officials, a few of whom were fervent proponents of the system.

«Definitely,» said Mahendran, referring to the meeting held on 23 February.

The Commissioner, however, noted that the minutes of that meeting were «less than explicit» with regard to any discussion of the cessation of direct placements. Mahendran agreed, but said that he was veering towards stopping it, and as there had been a different point of view, he was willing to give the benefit of the doubt to the Deputy Governor and his staff to prove that they could raise the money through private placements.

Then it logically follows, said Justice Jayawardena, that there was no decision taken until the dawn of 27 February to stop it - a decision taken solely by Mahendran on the morning of the auction.

The Former Governor said that at a meeting held on 06 March, the suspension of direct placements was conveyed to the Monetary Board.

The Commissioner then asked the witness, had he been in possession of specific directions given by the Minister in charge or some other superior official to stop direct placements, would he not have mentioned it at the meeting?

Responded Mahendran: «It›s not my style to bring in political authorities into Monetary Board conversations,» adding that the Board had enough powers of its own to decide on such matters.

Countering that there had been a furor about the previous auction, Justice Jayawardena said that it would›ve been in Mahendran›s interest to mention it at the meeting.

«The minutes do not suggest you did that,» he said.


PTL market share up since 2015
Senior State Counsel Shaheeda Barrie yesterday suggested to Former Central Bank Governor Arjuna Mahendran that proportions of the market share of primary dealer Perpetual Treasuries (Pvt) Ltd (PTL) had increased since the Central Bank had replaced the hitherto hybrid system with an exclusively auction-based system.

In 2014, said Barrie leading evidence at the Presidential Commision of Inquiry on the controversial bond issuance, the Employees’ Provident Fund (EPF) had a 27.3% share, while Bank of Ceylon (BoC) had 16%, National Savings Bank (NSB) had 17%, while other dealers had a very much smaller share.

“At the time you took over, it was the EPF and other government owned banks that were strong players in the debt market,” she said.

Mahendran countered that the situation prevails to this day, adding that the secondary market in Sri Lanka is “very primitive.” A proper trading platform in the bond market similar to that of the stock market was needed, he said, to make it more efficient.

Regardless, continued State Counsel Barrie, Mahendran had decided to scrap the direct placement and go for auctions, putting the fund raising mechanism at the mercy of the market.

In 2014, when the hybrid system was in place, EPF, BoC, NSB and People’s Bank had held major shares in the primary market, while PTL was at just 0.29% and Pan Asia Bank had 0%.

In 2015, however, BoC had come down to 10.98%, EPF to 24.98% and NSB to 11.06%, while PTL had gone up to 4.52% and Pan Asia Bank to 3.09%. This, she said, was a significant increase in market share for PTL.

In 2016, she continued, EPF had gone down further to 18.66%, while PTL had shot up to 15.45% and Pan Asia Bank, who had placed bids on behalf of PTL, was at 2.84%