In Light Of Dr Nalaka Godahewa’s Speech At The UNHRC In Geneva – Part VII

By Lionel Bopage –December 4 2017

[Part 6 of this series was published on Thursday, the 30^th November 2017]
More on the Points Dr Godahewa has raised

5. Dr Godahewa says: The Tamil political leaders demanded for 50-50 power-sharing despite Tamils represented less than 10 percent of the population; if this was granted it would have been tantamount to discrimination against the majority Sinhalese;

In 1936, the Board of Ministers established by the State Council comprised only of Sinhala members. The lack of representation of the other 35 percent of the population and several other factors led Mr G G Ponnambalam, MP for Point Pedro, to make his infamous 50:50 demand in 1939. In February 1945 he put this 50:50 demand to the Soulbury Commission as well, this time as leader of the All Ceylon Tamil Congress Party – the only political party for the Tamils. What he sought by this was allocating half of the seats for the Sinhalese and the other half for all other non-Sinhala communities. Considering the original intent and following a prudential approach, it appears that branding the “50:50” as a demand to discriminate against the majority Sinhalese is not only a misnomer, but a misrepresentation. The demand was to form “a single identity powerful enough to battle Sinhala-Buddhist fundamentalism”^[1] that has been trying to discriminate against non-Sinhala communities.

This demand for 50:50 could be understood better by looking at the post-1956 period, since the election of late Mr SWRD Bandaranaike as Prime Minister. The Official Language Act, No. 33 of 1956 (“Sinhala Only” bill) replaced English with Sinhala as the sole official language. The Sinhala nationalist forces that arose because of the colonial oppression and the colonial divide and rule policy, wished to stop using English as the official language. The pledge to make Sinhala the official language within 24 hours if Mr Bandaranaike was elected, was made with the sole opportunistic aim of capturing political power. While doing this, he gave no consideration to the status of the language that was spoken by both the Tamils and most of the Muslims. The Tamils felt for the first time that through this legislation that Sinhala Buddhist leaders had impinged most negatively on their civil right, advancement and political interests. This issue brought the Sinhala-Tamil conflict to the forefront of the political stage.

The dominant currents of Sinhala nationalism believed that the only way to revitalise the glory of ancient Sinhala civilization was for Sinhala along with Buddhism to occupy the most pre-eminent position in the state structure. However, the UNP leadership mainly represented colonial interests and the interests of the pro-colonial English-speaking elite of diverse ethnic origins. The policy calculus that was in operation under colonialism continued to operate without any change. Tamils needed an opportunity to express their aspirations for national rights and progressive national sentiments. The “Sinhala Only” Bill rather than providing any concessions to the Tamil-speaking people, was a declaration of war on their identities and right to use their mother tongue. This was a major shortcoming of the 1956 social ‘transformation’ that paved the way for grave consequences in later years.

The Tamils resorted to civil agitation campaigns which were initially peaceful and non-violent. However, the reactions of the government and Sinhala nationalists were always repressive and violent. The first violent repression occurred in 1958 when the peaceful fasting campaign of Tamil leaders at the Gale Face Green was attacked at the instigation of Mr Bandaranaike and his close bureaucrats. At first the Senior Police Officer did not bow to the order of the Prime Minister to use violence. Sinhala goons abetted and instigated by the extremists launched violent attacks using cycle chains, knuckle-dusters and clubs against those peacefully demanding solutions to their grievances. Soon this attack also spread into regions and both Tamils and Indians were attacked.

Though Mr Bandaranaike was elected with a strong Sinhala mandate, he did not seem to conclusively reject recognising the rights of non-Sinhala peoples. Rather his policy calculus was an assertion of the demand for recognising the rights of Sinhala Buddhists that had been heavily violated under colonialism and thus far not recognised by the UNP regime. However, the Sanga, Veda, Guru, Govi, Kamkaru Sinhala alliance led by the MEP rejected the demand for recognising the rights of the Tamil Hindus that had similarly been heavily violated under colonialism.

Mr Bandaranaike probably being aware of the limitations of the Sinhala nationalist stand, had contemplated developing an appropriate political framework designed to accommodate the rights of Tamil and Muslim peoples through a minimal decentralisation of political power. In 1957, he and late Mr S J V Chelvanayakam, leader of the Federal Party, signed the Bandaranaike – Chelvanayakam Pact (B-C Pact). This was intended to devolve power to regional councils with some level of autonomy and resolve language related issues that existed.

However, the UNP led by Mr J R Jayewardene opposed the B-C Pact spreading the myth that it was aimed at dividing the country. The All Ceylon Tamil Congress (ACTC) and the late Professor C Suntheralingam also opposed it for not granting an autonomous Tamil state. Realising that the issue was leading to political instability and his government was under threat, Mr Bandaranaike unilaterally abrogated the Pact. The Tamils were faced with the question as to what extent they could trust the Sinhala leaders. This, in practice, led to the belief that the state did not represent the interests of the non-Sinhala peoples.

In 1965, late Prime Minister Mr Dudley Senanayake and late Mr S J V Chelvanayakam signed the Dudley-Chelvanayakam Pact (D-C Pact). It was intended to devolve powers to district councils with some level of autonomy and resolve language related issues that existed. Even though the Dudley-Chelvanayakam Pact was a modified version of the Bandaranaike – Chelvanayakam Pact, the SLFP-led LSSP and CP coalition in opposition, too, opposed it using the pretext that it will lead to the division of the country. Again, Mr Senanayake unilaterally abrogated the Pact. During every subsequent election held, those in opposition have always td thwarted any efforts by the governments in power to resolve the national question under the pretext that it will divide the country.

The Language of Courts Act, 1960 made provision for the court cases to be heard throughout Sri Lanka in Sinhala only. In 1961, the Federal Party launched a civil disobedience campaign against the implementation of these provisions in Tamil dominant areas. Instead of addressing the just grievance of Tamils with regard to their democratic rights and arrange for the court cases to be heard in Tamil, late Prime Minister Sirima Bandaranaike ordered Major Richard Udugama, the army commander in chief at the time to remove all opposition to the legislation. For several months, Police rule was imposed in the north and a number of Federal Party leaders were arrested.

This issue also affected Tamil peoples’ financial security. Tamils who did not learn Sinhala were denied promotions and salary increases in the Public Service. As a result, many of them retired early. This had a devastating influence on the Tamil community. Until the end of seventies the government recruited Tamils to the Police force to be employed in Tamil-speaking areas. However, since 1977 mostly Sinhala Police officers have been employed in these areas with many Tamils purged from the service. As such, the share of Tamils that served in the bureaucracy had fell from 30 percent in 1956 to five percent in 1970. The fall within the armed forces from 40 percent in 1956 to one percent in 1970, was much worse.

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Balancing between Free Market and Social Justice: Lessons from China

By a happy coincidence, Sri Lanka’s Vision 2025, coincides with China’s Vision 2025 that the current President, Xi Jinping, has unveiled.

by Laksiri Fernando- Dec 4, 2017

( December 4, 2017, Sydney, Sri Lanka Guardian) Without superficially imitating other countries, drawing lessons from any country would be useful for a developing country like Sri Lanka given the common nature of many challenges that developing or transforming countries are faced with. It is not only because of the ancient historical links, dating back to Fa Hein’s visit to the island in the 5th century AD, that China is important to Sri Lanka, in this endeavour, but also because of the contemporary commonalities or more precisely, China’s unequivocal support to the country’s development.

Balancing between Free Market and Social Justice.docx by Thavam on Scribd

Ex combatants fight a different war

By Sulochana Ramiah Mohan-2017-12-03

They fought the State because they said they were discriminated against as a race, but after surrendering and going through rehabilitation the ex-combatants of the Liberation Tigers of Tamil Eelam (LTTE) are finding out that they face an uphill battle to restart their lives. There are government programmes including soft loans and housing they should be able to access, but what is on paper is not necessarily translating to action.

While most of the senior leaders of the banned organization perished in the war, it was the young combatants, who grew up in the war zones who surrendered to the government Forces when the war ended in 2009.

On a weeklong tour of the North and East, this writer met with 135 of rehabilitated ex LTTE combatants between the ages of 24 and 50.

There are an estimated 8,000 disabled ex-cadres and the ones whom we met were either disabled, living with bullets or plates fixed in their bodies. Some claimed that the doctors are unable to remove those bullets as it would damage their nervous system.

The writer also visited some of the homes of these men and women who are married, but are struggling to live as they are deeply in debt and living a hand to mouth. Some who had obtained government housing still live in incomplete houses. Some of them have no permanent jobs and are seeking the help of many organizations which are 'reluctant' to employ them in fear that they would tarnish the reputation of their businesses if at all they are taken into custody again by the TID or CID on suspicion.

It appears that the banks have similar concerns when approving the government's soft loans for these ex-fighters.

No guarantors

These men and women find it difficult to get government servants as guarantors to obtain the self-employment soft loans offered by the government through State banks. They told this writer that they wanted banks to at least accept a 'normal guarantor' meaning a trader or a shop owner who has an active bank account.

In the Mannar District there are 675 rehabilitated combatants and only 176 have applied for the self-employment loan mainly because they are unable to find guarantors. So far it is said only 139 received the loan, however many banks did not approve the total amount these men and women asked for. This, they say has been of no use because the rest of the money they will have to seek from elsewhere.

For ethical reasons Ceylon Today has decided to identify our interview subjects by a single name.
Forty-year-old Leonard from Mannar said he wanted money to buy a fishing net as soon as possible because it's the season for a certain variety of big fish. Since April this year he has been negotiating with the bank and despite getting two guarantors – one government servant and a private trader he is yet to receive the money.

Another person also from Mannar, Anthonipillai was asked to open a new bank account by depositing Rs 30,000. He asked where he can get this money when his life is in a miserable state.

Another female ex combatant who did not wish her name to be mentioned, said she asked for Rs 250,000 but was only given Rs 100,000 with which she has rented a shop but unable to buy sufficient goods for the shop. "The shop I rented is still closed as I have no money to purchase goods," she complained. What she wanted further was not a loan but a grant to purchase items because she would not be able to pay interest for the items she is hoping to buy.

Ferdinand (48) said his engine was stolen and his fishing came to a complete halt. He too had given all documents to the bank but the bank found that his wife had obtained a loan and had a balance of Rs 10,000 to be settled. "The bank is now not willing to give me the loan despite I have told them I would settle with the loan I am going to get but they refused."

Ex cadres in Batti

The number of ex cadres in the Batticaloa district is around 467 and they are hard hit financially.

Some said no government or bank officials give them priority despite the government boasting about that they are 'doing' so much for them. They also lamented that Tamil politicians and the government have been focusing only on the northern ex cadres and have ignored them.

While many have received houses, the District Secretariats have listed the ex-cadres in the points system and are in a queue along with the displaced persons,

female-headed families and disabled people in the community. The houses are also handed out according to the status of the families from the worst hit and upwards.

Thirty-seven-year-old Nila from Thambalagamam in Trincomalee has managed to get into the government housing plan – a grant in instalments. He has a half built house but still not got his Rs 18,000 electricity connection money from the DS. "It's almost three months and I live in the dark with my two little children and the DS is telling me to 'wait' as I am 'better off' than many others."

He also noted the balance Rs 125,000 of the Rs 800,000 housing plan is yet to be received by him. "I have taken private loans to complete the house and I have to settle these loans but the DS is dragging the matter. It's not only me but many like me are living in disappointment," he said.

The DS on the other hand said she works based on a marking system and going by the priority basis, sometime these ex combatants don't receive funds as they expect. She also suggested that the government should allocate funds separately for them and not to mix them up with the rest of the needy.

There was another female ex cadre who is married to a semi paralysed ex fighter. But she is an epileptic and unable to get the loan to generate an income. She wants to put up a shop and be with her husband. The thirty-two-year-old is in a miserable state without any help and proper medical attention. Chandra says when she feels that she is about to get the epileptic fits she lies down on her bed and after a while finds herself in the hall or kitchen when she recovers.

Background of the loan scheme

According to the government, the number of ex combatants (rehabilitated and socially reintegrated trainees) who were engaged in LTTE activities who have either surrendered or been arrested by the security forces stands at 12,185 as at 31 December 2016.

The government has introduced grant schemes and self-employment loan scheme for these trainees approved by a Cabinet memorandum.

The government allocated Rs 300 million in February 2012 to be disbursed to these people through the Bank of Ceylon, People's Bank and Sri Lanka Savings Bank.

The loan beneficiaries are eligible to obtain loans of a maximum of Rs 250,000 at the rate of 4% interest per annum and a loan repayment period of 10 years with one year grace period.

But it is a failure as since out of 7,585 persons who applied only 1,799 had been granted these loans under the Stage I of the programme.

The reasons given were shortcomings in the selection process, inadequate monitoring, inadequate manpower and lack of awareness among the beneficiaries about the purpose of the Loans scheme. The bottom line is that the loan did not reach these ex fighters but trapped them in private loans for survival. There were media reports of several suicide cases of ex-cadres due to debts.

The loan scheme was reintroduced in 2013 to disburse another Rs 525 million which was
implemented only in December 2016 with great efforts put in by the Ministry of Rehabilitation which is trying to make it a success this time around.

However, State banks having experienced poor recovery from the stage I loan scheme are making it impossible for the former combatants this time too.

Ministry of Finance and the Rehabilitation Authority is working with the Bank of Ceylon, People's Bank, and Regional Development Bank to assist these men and women, which unfortunately is failing again.

Bankers note:

The government should not tax them with the loan scheme, many of the bankers told Ceylon Today. Some said only a grant scheme would help them as of now.

They said they are also on a mission to do a service but 'forced' to recover the loan as it is 100% loan from the banks. "As the first stage of the loan scheme utterly failed and we are trapped unable to recover, we are reluctant," admitted the bankers in the North and East.

"If the Central Bank takes responsibly for the credit facility then we can back the loan system better," they suggested.

They also complained that several of the guarantors who have signed for these men and women are already in the CRIB.

Bankers also pointed out that in the North and East there is hardly anyone who had not obtained a loan from the banks and that is preventing the ex carders from finding a good guarantor.

Journalist murder probes have a long way to go - Mangala

December 4, 2017

The Sri Lankan Government on Monday said it remains firm in its commitment to work with the international community, to work towards ending impunity for crimes against journalists, and to uphold the rights of journalists around the world who place themselves at risk every day, to give voice to the voiceless.

Minister of Finance and Mass Media, Mangala Samaraweera said that Sri Lanka used to be a most unsafe place for journalists, not too long ago. 

“It gives us the important opportunity to reflect on our past, and resolve to never allow a recurrence of that dangerous past in our country, for journalists, ever again.”

He was addressing the Opening Ceremony of the UNESCO Regional Conference on Reinforcing Regional Cooperation to Promote Freedom of Expression and the Rule of Law in Asia through Ending Impunity for Crimes against Journalists, held this morning (4) at Taj Samudra, Colombo.

The minister said that while the government has succeeded to a large extent in creating the safe space required for freedom of expression, they must keep on working hard to sustain and safeguard this space, and that they still have a long way to go in terms of completing investigations into past crimes, including the murder of journalists in the past. 

“It is also an occasion for us in Sri Lanka to recognize and acknowledge that justice is crucial and essential, because impunity will leave open the danger of the recurrence of the heinous crimes that occurred in the past.” 

“Therefore, this is an important occasion for us locally, to renew our commitment to justice, in memory of all the journalists who have been silenced, and in recognition of the importance of a free and independent media, for advancing peace, development, and good governance in our country.”

He said that freedom of expression is a basic human right, and that it is also one of the most important components of every democratic nation, and an essential component for democracy to function as it should.

For the media to be able to fulfill its’ important role in a democracy, journalists, media workers, bloggers, media organizations and individuals must be able to discuss and debate issues freely and safely, the minister said.

Tamil radio journalist attacked in Jaffna town

03Dec 2017

A Tamil journalist was attacked in Jaffna town on Saturday evening.

44-year-old Shanmuganathan Manoharan, an anchor for the radio Yaarl FM, was driving home to Chavakachcheri on Saturday when his car was obstructed by a three-wheeler.

Mr Manoharan and another person were beaten by three men who alighted from the three-wheeler.

The attackers escaped as soon as onlookers began to gather.

A complaint was filed at Chavakachcheri police, following which the department said they had arrested the driver of the three-wheeler.

Tamil radio journalist attacked in Jaffna town

Political vultures and the carcass of the ‘rainbow revolution’

Sunday, December 03, 2017

 

Vultures are circling high above in the skies as they watch what appear to be the struggling death throes of the Sirisena-Wickremesinghe unity alliance with delight.

 

Fury in Sri Lanka’s  hamlets

Former President Mahinda Rajapaksa hypocritically thunders on the twin dangers of the sale of national assets and the betrayal of national war heroes, going on to insist that the faction of the Sri Lanka Freedom Party (SLFP) loyal to President Maithripala Sirisena can join his group only on their terms. His numerous hangers-on in the self-styled Joint Opposition (JO) who compete with each other for the prize of being the most unprepossessing, cackle with unabashed joy at the prospect of a settling of scores with their rivals and a quick return to power.

To be fair, the beating of the communal drum by the JO has not been that effective in the villages and provinces of Sri Lanka as even the cursory traveller will discover. In other words, there is little public acceptance of the favorite Rajapaksa bogey that the country is in the pincer grip of hostile international forces. More to the point, plainly and simply, the problem is the monumental inefficiency of this Government and the soaring cost of living.

The desperate plight of farmers having to cope alternately with prolonged drought and then flooding with little official support is just one example. This seeming inability to enforce order is replicated in other instances; a nation-wide example being the recent fuel shortage. But in the rural hamlets, the fury is even greater. Steeply increasing prices of staples like coconuts and rice have aggravated the predicament of the poor. The enthusiasm for ‘yahapalanaya governance’ has waned among those who voted for a change.

 

An unsettling contrast

The contrast is unsettling; on the one hand, suited and black tied crooks get away with millions in the sinister form symbolized by Arjun Aloysius of Perpetual Treasuries fame and on the other hand, helpless villagers are caught in death traps of poverty, whose only recourse is suicide. In a recent casual exchange in Colombo, my conversationalist asked the incredulous if not somewhat patronizing question; “are people in the villages actually aware of the so-called Central Bank bond scam and shenanigans in high financial circles?’ After recent visits to the Uva, Central and Eastern provinces, the answer to that query is in the positive.

 

In that regard, it must be conceded that the communications strategy of the Rajapaksas has been effective. And it has not helped that the much vaunted anti-corruption strategy of this Government against the crooks of the previous regime has failed miserably, part by design and part by its own inconsistency. Handled badly from the outset, this has now has become an embarrassing fiasco apart from a few stellar convictions.

True, the Supreme Court is performing its constitutional role after a lapse of close to two decades, even though this is attributable primarily to a few conscientious judges. One example is the Court’s recent decision declaring the arrest, detention and subsequent deportation of a British tourist in 2014 carrying a tattoo on her arm of the Gautama Buddha seated on a lotus flower to be unconstitutional.

 

This case demonstrates a common pattern of Rule of Law safeguards being violated from the point of the tourist being ‘compelled’ to go with a so-called ‘civil defence officer’ and a taxi driver who had first ‘spotted’ the tattoo to the Katunayake police station subsequent to which she was produced in the Negombo Magistrates’ Court, detained in the Negombo prison and later, at the Mirihana immigration detention camp. Writing for the Court, Anil Gooneratne J. summarily dismissed explanations of the police officers that the tattoo had been feared to bring about a ‘breach of the peace’, holding that there was no reasonable basis for the arrest. The manner in which the tourist was abused in lewd language by a prison guard and the constant demands for money made by the police was judicially deplored.

 

The privileged and the marginalized

Despite these undeniable gains, the fact remains that this Government has failed to straddle the city-rural divide in a way that harmoniously intertwines both. An active Supreme Court is a distant luxury to a milk farmer struggling to survive in the interior of the Ampara District. And visits by one delegation of the United Nations followed by another are of little comfort to a mother in Trincomalee despairingly struggling to ascertain the fate of her disappeared son.

 

Death is the one relief to the pain of very different victims, united by their common and desperate hopelessness. It is that disjunctive contrast between the privileged and the marginalized that the unity Government (if it lurches on) must address with all its might and main without floundering in the major cities, leveling pot shots at each other.

 

In 2015, the marriage of the long talked of ‘technocratic vision’ of the UNP’s Ranil Wickremesinghe and the homespun commonsense of the SLFP’s Maithripala Sirisena was hailed. The President and the Prime Minister were expected to bring their respective and very different strengths to the unity alliance. What has happened since then is quite different. The UNP has been almost irreversibly damaged by a gigantic financial scandal in connection with the Central Bank and its own party while the Sirisena faction of the SLFP has become inextricably entangled with nationalistically populist rhetoric.

 

Avoiding an awaiting tragedy

In that sense, both have failed to give enlightened leadership to the national effort to lift the country out of the Rajapaksa morass of communalism and corruption. To the cocooned in Colombo, the glee that implacable rivals of the Government display at its eagerly predicted downfall may seem premature. Perhaps there is nothing wrong in wistfully (albeit vainly) hoping for a turn of the tide. This becomes even more urgent as the local government elections draws nigh amidst the failure of asinine games of some to delay the polls.

 

Measured even against the various idiocies committed by the flotsam and jetsam that cling to one or the other faction in the unity alliance with desperation, whoever thought of conjuring a legal challenge to the Gazette notification pertaining to the polls, deserves a rude knock behind the ears for their monumental stupidity. Even if that challenge has now been withdrawn, the bad taste that it left behind will linger even though it appeared to be an ill-advised gamble only on the part of a few.

 

So as the inevitable draws near and absent a course correction even at the eleventh hour, the vultures will certainly lose no time in swooping down on the carcass of what once promised to be a bright and beautiful change for Sri Lanka.

 

That will be the ultimate tragedy for this country and the people. Certainly it must be avoided at all costs.

Chandra Jayaratne Invokes RTI To Obtain Details Of Inward-Outward Remittances

author: COLOMBO TELEGRAPH-December 4 2017

Exercising rights relevant to the Right to Information Act No 12 of 2016, Chandra Jayaratne has written to the Central Bankseeking details of those granted special permission or special exemptions to remit in to Sri Lanka foreign currency, outside of the then prevailing statutory and regulatory provisions and administered or regulated norms and processes of the Central Bank.

Jayaratne has also requested the number of such inward remittance approvals granted between January 2015 and October 2017 in terms of various categories of value, and the total sums actually remitted into Sri Lanka against approvals.

The full text of the request is given below:

Information Officer Appointed Under Right to Information Act,

Central Bank of Sri Lanka,

 

Central Bank Building,

Janadhipathi Mawatha,

Colombo 1.

Dear Sir / Madam,

Exercising Citizens Rights under Section 3 (1) of the Right to Information Act, No. 12 of 2016

 

I wish to exercise my rights to access information from Central Bank of Sri Lanka, (being a duly created Public Authority and in my status as a citizen of Sri Lanka), in terms of section 3 (1) of the Right to Information Act, No. 12 of 2016, which reads as “Subject to the provisions of section 5 of this Act, every citizen shall have a right of access to information which is in the possession, custody or control of a public authority”.

I wish to obtain the under noted information from the former Exchange Control Department (since restructured) or any other appropriate Department or Unit of the Central Bank of Sri Lanka:

1. Confirm  whether  any resident or non-resident Sri Lankan individuals, dual citizens of Sri Lanka and any other country, foreign nationals or foreign registered entities, whether resident or non-resident in Sri Lanka, were granted special permission or special exemptions, post January 2015 and until October 2017, by any Minister or Ministry (with due notice to the Central Bank or the Monetary Board), the Monetary Board of Sri Lanka, the Governor or the Central Bank of Sri Lanka or any Department or Unit of the Central Bank of Sri Lanka, permitting such persons or entities to remit in to Sri Lanka foreign  currency, outside of the then prevailing statutory and regulatory provisions and administered or regulated norms and processes of the Central Bank(ie. in terms of the Exchange Control Act (Chapter 423) or any other statutory or regulatory provisions administered or regulated by the Central Bank of Sri Lanka)?

2. If so the number of such inward remittance approvals granted in terms of 1 above ?

3. The total approved transaction values of the  of 1 above, specifying the number of transactions in each of the following ranges of value:

a) Below USD 10 million or equivalent

b) Above USD  10 million and up to 100 million USD or equivalent

c) Above USD 100 million and up to USD 500 million or equivalent

d) Above USD 500 million and up to USD 1000 million or equivalent

e) Above USD 1000 million or equivalent

4. The total sums actually remitted in to Sri Lanka against approvals referred to in 1 above?

5. The balance of funds so remitted to Sri Lanka against approvals referred to in 1 above, yet remaining invested in Sri Lanka as at the End of October 2017?

6. Whether any Suspicious Transaction Reports were received by the Financial  Intelligence Unit, in connection with the inward or outward remittances of funds received in Sri Lanka in terms of 1 above and the total number and total transaction value of such reports received and the number of reports as at that date, yet  pending review, with the total transaction value of such pending reports?

7. Whether any Suspicious Transaction Reports received by the Financial  Intelligence Unit, in connection with the inward or outward remittances of funds received in Sri Lanka in terms of 1 above, relates to persons or entities classified as Politically Exposed Persons /Entities as per FATF Recommendations

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SLIATE Keynote 2017 Prosperity through research and development

The present production model in the world is not to produce a whole product in a single country. Instead, many nations collaborate with each other to bring out a product today. Take for example the iPhone which is assembled in a factory called FoxConn in China. The parts for iPhone come from 740 odd production facilities scattered throughout the globe
SLIATE research  symposium on an apt theme

 Monday, 4 December 2017

I am honoured to be invited to deliver the keynote address at the 2017 Research Symposium of Sri Lanka Institute of Advanced Technical Education, popularly known as SLIATE. It is both encouraging and promising that SLIATE has organised this symposium, assembling researchers on many subjects together here.

SLIATE Keynote 2017 Prosperity through research and development.docx by Thavam on Scribd

Soundbites and sound bytes: Future of digital conversations in Sri Lanka

GROUNDVIEWS-12/04/2017

Even before the end of the war in 2009, but certainly after it, conversations on society, politics, culture, religion and other vital matters are moving online to digital spaces, or are increasingly influenced by perspectives and content on the web. There is a demographic dividend at play – first, second and even third time voters in Sri Lanka are those who are also the most active on social media platforms. The metrics of all this are obvious – the number of individuals on and using social media, including those using it to promote their ideas and opinions to more than just friends and family. How politicians and political parties are using social media around their election campaigns, from voter mobilisation to the discussion of key policies leading up to the election. How propaganda, and push-back to it, is now increasingly digital. Civil society is moving to social media, with advocacy and activism in the physical world now inextricably entwined with digital equivalents. Religious institutions and priests use social media, for various ends. Government is on social media to broadcast information, alert and sometimes to engage citizens. Mainstream media has long since discovered that conversations are as, if not more important, than subscriptions. Wherever there is conversation, there are opportunities to engage, promote, intervene and also build trust.

At the same time, there are those not included in, or have access to these conversations due to gender, class, economic status, language, sexuality, geographic location, connectivity and other barriers. How and if they are able to participate ultimately determines whether the conversations, such as they exist online, are echo chambers or spaces for genuine engagement with diverse opinions. There are also challenges around violent pushback of differing opinions, and the chilling effect of cyber-bullying that results in the eventual disengagement of individuals under attack, those who know them and those like them.

How has mainstream media encouraged conversations around key issues in Sri Lanka, post-war? Do millennials find the issues they care about reflected in conversations online or offline, and if so, where? What do traditional journalists think of new platforms and spaces for conversations, and what will they do to engage, embrace, adapt or adopt? What are the most exciting new voices, trends, platforms and conversations that will undergird Sri Lanka’s democratic potential in the years to come? What are the key opportunities and main risks around how the conversational landscape exists today in a country post-war, but not yet post-conflict?

Panel discussion recorded at the Global Voices Summit, 2nd December 2017, held at Trace City, Colombo, Sri Lanka.

Moderator: Sanjana Hattotuwa

Panellists: Yudhanjaya Wijeratne, Sharanya Sekaram, Nalaka Gunawardene and Deepanjalie Abeywardena

Cod Bay chokes on cement dust

By Sulochana Ramiah Mohan-2017-12-03

Upul Chaminda walked into the sea at Cod Bay in Trincomalee and dipped his hands into the grey-blue water. When he pulled them out again, they were covered with a thick mixture of black mud and a grey coloured substance.

He reached in again and pulled out a piece of coral. It was dead and a discoloured shade of grey. The 37-year-old also picked out molluscs and oysters, all dead and about the same shade of grey.
Then he crushed them easily like chalk.

"It's the cement." he said, "This stretches along the coastline for about 4 km."

We were standing on the coast along the Kandy-Trincomalee Road, about 4 km from China Bay.
Cod Bay

Cod Bay looks like a pristine natural harbour, like many others Sri Lanka is blessed with, in Trincomalee in the Eastern Province. It has some 20 small coves surrounded by a 'greyish' blue sea.
When dusk falls, the illuminated gigantic cement factory nearby and the ships out at sea, adds beauty to the landscape.

But what lies beneath is an environmental disaster. The water is gray because it is polluted with cement dumped into the harbour, locals say, when ships are loaded at the quay at the Tokyo Cement factory.

Booming industry

We chanced upon the issue. Ceylon Today, on its visit to the Eastern Province last week, stopped for a photo-shoot of the scenic view of Cod Bay. But we were accosted by local people who gathered to tell us how the booming cement industry has in fact has destroyed the coral and marine life in Cod Bay.

When the cement factory began in 1988 there weren't so many ships rushing into unload cement for further processing.

Godwin Devapriya (62) who is one of the activists battling to protect the environment says, in the beginning, once in three months, a ship would arrive to unload cement. But that is not the case now. "For more than a year now, a massive ship comes to the factory to unload cement once in three days and the unloading goes on night and day till the next shipment comes in three days."

Devapriya who formed a society to fight to protect their livelihood and the environment had met the officials of the cement factory. According to Devapriya, about a year or so ago, Tokyo Cement had dredged the bottom of the Bay and removed some of the cement deposits. But he pointed out that the pollution cannot be prevented altogether because the cement dust pollutes the air while being unloaded from the ship and it eventually gets deposited in the sea.

Cement, cement, everywhere

The cement is everywhere. From the distance we also could see cement dust deposited on the factory roofs and houses nearby.

Upul says cement dust also could be found deposited on their household items around Cod Bay and many people have developed a dry cough. There are about 50 families involved in fishing in the area and many of them have already been affected by the cement dust they are compelled to inhale. Locals are most alarmed by the fact that they are losing their livelihood, which is fishing. Enormous cement deposits are killing off corals and because of that, there are hardly any fish around.

Devapriya says they had been catching a variety of fish such as Paraw, Seer, Saalayo, Sprats and Thalapath to name a few, in Cod Bay but not anymore because there are no corals for breeding.

"Our fishing nets always give way while pulling thick sediments with cement out from the sea," he lamented, saying their costs have gone up because of that.

Devapriya, a father of five children, fled Nilaveli during the LTTE insurgency and settled in Cod Bay to do fishing. At that time, Cod Bay was a thriving fishing area where fishermen earned well.

He points out that by the road to Kinniya on the right side of the cement factory there is a 50 acre land now covered with the mud and cement mixture that has been dredged up from the bottom of the bay. "The area is getting bigger with mud deposits around the cement factory," they noted.
And not a drop is safe...

The discharge of hot water into the sea is also a concern, they noted. "Early morning we can see smoke going out into the air and that's the waste hot water being dumped into the sea."

"Factory officials say that they have been monitoring cement sediments in the sea. However six month ago, they told us they would use buckets while unloading cement to prevent cement falling into the sea. However that is not at all feasible," Upul told Ceylon Today.

The society against environmental hazards had met Trincomalee District Secretary who has expressed his concern too. But nothing has happened so far. "We wanted the coastal guards to watch over the spill of cement dust," they urged.

One of the top officials at Tokyo Cement had told the villagers that Rs 500,000 was spent last time to remove the dust deposit.

Nearly 300 Lorries of cement a day leave the factory in Cod Bay and that could mean thousands oftons passing through the region.

Ecological disaster

Fishermen are watching the developments and are contemplating whether to go on a hunger strike soon to bring awareness on this issue. They say that if they block lorries that transport the cement, it would make them realize how important their lives are too. They are asking for an independent assessment on marine life and an immediate end to the destruction of the environment in Cod Bay.
"It's like Hiroshima after the bombing here, as trees in the area are covered by cement dust, corals are dying and water is getting more and more polluted," Upul said.

The website of Tokyo Cement Company (Lanka) PLC quotes that it is the largest manufacturer and supplier of cement in Sri Lanka and that Tokyo Cement is one of Sri Lanka's most valuable brands with an installed capacity of nearly 3 million tons of cement, over 600 employees and Rs 14 billion in assets.
They also boast that as part of its efforts to pursue the Triple Bottom Line principle, the company commissioned the first 10 megawatt biomass power plant in Trincomalee and that the benefits of the
Rs 2 billion initiative are twofold – it frees the company's operations from reliance on thermal power generation via the national grid and acts as a source of eco friendly electricity. The website further says that their company has have always worked on an ethos of pragmatic optimism.

If so, can they find a solution to this total destruction caused to the environment?

It's exaggerated – Tokyo Cement official

One of the officials attached to Tokyo Cement told Ceylon Today that the information provided to the paper by locals is an exaggeration.

An environment expert working at the cement factory noted that from 1982 this cement factory was only operating in the East, employing people from the area. However, when asked about collateral damage being caused to marine life and people who in the vicinity, he said there are problems which they have been trying to resolve.

He rubbished the claim that about four feet of cement and mud is being deposited in Cod Bay. "We dredged the sea and removed all the sediment. But he could not recall when that had been done." He also said the coast of Cod Bay is a muddy area and so there are no corals or marine life there. "Corals are found in Pasikudah and not Cod Bay." He noted that Tokyo Cement has not yet conducted a proper analysis of the sea area. "We don't know the actual particulars of the place that Ceylon Today is referring to," he said.

NARA says:

National Aquatic Resources Research and Development Agency (NARA) said that they were not officially informed about cement dust deposits in the sea in Cod Bay.

Speaking to Ceylon Today, Marine Biologist at NARA Ishara M. G. Ratnasuriya said if an official complaint is sent to the Ministry of Environment, they will be notified too. "Ask them to inform us officially so that we could come to assess the situation," he noted.

New union study reveals working conditions in the private sector poor for women

Sunday, December 03, 2017

A new study has revealed that working conditions in Sri Lanka’s private sector are not condusive for females, they work far more hours than their counterparts in the region and their public transportation needs are are not met.

“It is shocking (that) the studies done by ‘female experts’ and the World Bank recently turn a blind eye to these findings. One must salute the current female workforce for offering their labour under worst conditions possible in comparison with other countries,” said T.M.R. Rasseedin, Deputy General Secretary, Ceylon Federation of Labour (CFL).

Mr. Raseedin told the Business Times that the CFL conducted a study on the working conditions of female workers and were astounded by the findings.

On weekly working hours, the report said that female employment participation is high in the public sector where conditions are conducive for employment, social security, enhanced maternity protection, employment security are guaranteed. However conditions of work in the private sector are not conducive for employment of women. They are precarious, lack social security, social dignity and recognition, exploitative and prolonged working hours, etc. These factors discourage women from taking up employment in the private sector.

The percentage of the workforce working over 48 hours a week (ILO statistics, country profiles for 2014/13) in fast developing and developed countries are Malaysia (23.2 per cent), Indonesia (22.9), Thailand (20.9), Japan (20.7), the Philippines (19.2), Switzerland (11) and the UK (10.9) among others.

Comparatively countries with similar statistics to that of Sri Lanka (percentage of workers working over 48 hours a week) are: Sri Lanka (31 per cent), Ethiopia (41.8), Madagaskar (33.5), Uganda (39.4) and Zimbabwe (33.5), the study shows.

“ILO statistics clearly prove that prolonged and excessive working hours and economic growth have no scientific nexus,” it said.

On long working hours per week in Sri Lanka, the study said the Shop and Office Employees Act (SOEA) provides for a 45 hour-working week and the Wages Boards Ordinance (WBO) provides for a maximum of 48 hour-working week.

Global statistics (Statutory Working hours per week – Source: Working Conditions Laws Report 2012, ILO) show the number of working hours per week in China, Denmark, Indonesia, Finland, Japan, South Korea, Italy, Norway, Sweden, New Zealand, Canada, Portugal and the US is 40 hours with Singapore being the exception at 44 hours. Its 35 in France, and 38 in Australia and Belgium.

“All these countries record a significantly high 50 per cent plus participation rate of women in the labour force. Empirical evidence show when weekly working hours are less women tend to enter the labour force in large numbers,” the study said.

Where a country adopts a 40 hour working week as against 45 hour or 5 ½ day working week as in the (SOEA) in Sri Lanka, workers in those countries are entitled to an additional 26 days of leave per annum, it said.

Workers in highly industrialised countries such as China, Japan and the US enjoy 26 additional days of leave than Sri Lankan shop and office workers.

“The above figures demolish the argument of local employers that Sri Lankan workers enjoy more holidays. ILO statistics prove workers in Sri Lanka are over worked and they are in the group of countries with Uganda, Ethiopia, Zimbabwe, etc where exploitation is the norm and productivity is low,” it said.

Taking the case of Vietnam, the study revealed that this fast growing nation has 73 per cent women in the labour force compared to 36 per cent in Sri Lanka. “Maximum overtime hours in Vietnam is 200 per annum and on exceptional circumstance it can be increased to 300 whereas in Sri Lanka it is 720 hours per annum for females and no ceiling for men,” it said.

Vietnam drew foreign investment worth US$11 billion in 2015, up from $8 billion in 2010 whereas Sri Lanka attracted $681 million in foreign investment in 2015 compared to $477 million in 2010.

“These statistics prove that compelling women to work at night and overtime work are not key factors to attract FDI,” it said.

The study said Sri Lanka offers the least amount of maternity leave in comparison with many developed and developing countries – 84 days (12 weeks) after the first child compared much more in other countries.

“The studies up to now argue that women have relatively better entrepreneurial skills. Is there any scientific evidence to prove this fact? Why are experts fostering gender stereotypes while talking about women’s empowerment?” it was noted.

The CFL Deputy General Secretary said it is these conditions that need to be changed urgently to enable women to enter the labour force.

US tax reform and impact on the rest of the world

Monday, 4 December 2017 

I had just finished a presentation for the Intermodal Europe in Rai, Amsterdam on 28 November, on the subject of “De-globalisation of Markets’ and was still confident that world trade would grow better from 2018 onwards. The next day I saw the US Dow Jones industrial average storm above the 24,000 mark for the first time on 29 November as investors reacted joyously to news that the US Senate appeared close to passing its tax overhaul bill.
A snap shot of US corporate tax structure

The US federal tax rate for corporations is 35% - considered the highest in the OECD. But is said that a few businesses in the US actually pay the top rate, thanks to deductions and other loopholes. The effective tax rate for big corporations is actually around 22%, according to the US Treasury Department reports. US senators last week passed a sweeping tax cuts bill, paving the way for Donald Trump’s first big legislative victory which he promised during his election campaign.

The Trump/Republican plan now would lower the official rate to 20%, which may bring down the actual to an even a much lower figure giving big US corporations a message from President Trump to move the profits and jobs back to the US from foreign territories.

The new rates would be lower than in Australia (30%) and similar to the United Kingdom (about 19%), as well as many other countries in Europe.

This reform is considered the biggest overhaul since the 1980s done by late President Reagan which created 20 million jobs across America in that period. US national debt being around 93% of GDP passed $ 20 t earlier this year. The new plan sees a sharp cut in corporation tax, but a senate committee finding has warned it would add $1tn and increase debt to GDP ratio to around 98% which may have other negative effects.

Whilst it is extremely difficult to say, what will happen, economists are now talking of the Laffer Curve (the Laffer Curve is a theory that states lower tax rates boost economic growth, the curve is used to illustrate Laffer’s main premise that, the more an activity such as production is taxed, the less of it is generated. the theory was developed by Economist Arthur Laffer in 1979).

However, the idea behind the Trump presidency is clear, “America first” and the tax cuts for the big corporations are expected to yield high investments, bring back profits without penalties from tax havens and create new jobs in America.
What happens to the rest of the world with the reform?

According to Martin Feldstein, Professor of Economics at Harvard University and President Emeritus of the National Bureau of Economic Research: “A lower corporate tax rate and the shift to a territorial system would increase the flow of capital to investment in US corporations from abroad and from capital investments in owner-occupied housing and in agriculture. This would raise productivity and GDP, leading to increases in tax revenue that would partly offset the direct effect of the corporate rate reduction. In short, the congressional legislation that is likely in the months ahead will change the tax rules for US companies, but it will also have important effects on international capital flows. It could also have significant effects on tax rules around the world.”

Greater trade ties with US, important for Sri Lanka

It is extremely tough to forecast the immediate impact for a very small economy like Sri Lanka, but the global financial markets will start reacting during the coming weeks to different scenarios. The developing nations including Sri Lanka will have an impact and will have to re look at its own direction and strategy as well as tax structure to attract global FDI and increase exports as the US is also expected to increase interest rates in the coming 12 months.

If the US GDP growth accelerates the chances of increasing exports from a country like Sri Lanka will be higher. But the country will have to uplift its business environment and competitiveness to keep phase with a global response that will definitely sprung up in all countries to face the new environment in the US.

Keeping in mind a track record of slow reforms and implementation as a country, Sri Lanka will have an opportunity as well as a new challenge to move forward with this new development in the US. The Government must be fully focused on its vision and make the country an attractive trading, logistics and a financial hub that can add value to the international supply chains and be part of the global value chain if Sri Lanka need be the Indian Ocean hub.

At the same time whilst we are negotiating many Free Trade Agreements, that would help the country’s market access, in my opinion it is important that we work out some preferential arrangements similar to EU GSP+ with Uncle Sam to get better market access, as the US will be a very important trading partner for Sri Lanka to develop its exports to a comfortable level from its current position.
(The writer is the CEO of Shippers’ Academy Colombo, an economics graduate from the Connecticut State University USA, former chairman of the Sri Lanka Shippers’ Council and immediate past Secretary General of the Asian Shippers’ Council.)

Bond Scam: Whitewashing Will Boomerang On ‘Yahapalanaya’ & Country 

By Amrit Muttukumaru –December 3 2017 

The alleged Treasury Bond scam is probably the largest financial scam to hit this country in its  post-independence history. For sheer impunity and involvement of a wide spectrum of politicians in collusion with a section of the corporate sector and regulatory authorities it is hard to beat. The muted response of the opposition exemplifies the rot in the governance of this country. It is unforgivable it took place under a so-called ‘Yahapalanaya’ government which was elected with much hope under trying circumstances to usher in ‘good governance’ after the traumatic Rajapaksa years.

The expectations included holding those concerned under the Rajapaksa regime accountable for alleged (i) egregious corruption (ii) abuse of power (iii) violence to dissenters (iv) undermining democratic governance. Not only has the ‘Yahapalanaya’ government blatantly reneged on these undertakings – but worse is its own contribution to alleged corruption and abuse of power which in terms of sheer speed exceeds the Rajapaksa regime! For example, after being elected in January 2015 the first alleged bond scam took place February 2015.

This has given a shot in the arm for a Mahinda Rajapaksa led comeback. A Deputy Minister in a KEY ministry held by the PM who while in opposition was arguably the most virulent critic of alleged wrongdoing under the Rajapaksa presidency, has suddenly after almost 3 years found merit inGotabaya Rajapaksa’s “efforts in beautifying the City of Colombo”! Is this a sign of ‘coming colours’?

 

However, one notable gain under ‘Yahapalanaya’ must be flagged – its relative ‘openness’. This most likely is not due to altruistic reasons but compulsions of ‘Realpolitik’ in the hodgepodge arrangement that passes for governance. If it was genuine, why is their lack of transparency in most things – the alleged bond scam being a prime example?

Popular Imagination

The alleged Bond Scam has caught the popular imagination unlike no other scam in this country – and God knows there have been other egregious scams over the years.  Even those who have not heard of ‘Bonds’ let alone ‘Treasury Bonds’ sense there has been TERRIBLE CORRUPTION involving the Central Bank of Sri Lanka. This is the reality which does not portend well not only for the ‘Yahapalanaya’ government but also for the country at large. As a consequence, if the already PERCEIVED notion of a MEGA ‘COVER-UP’ is CONFIRMED where its ‘KINGPINS’ are shielded and only some who have ‘FACILITATED’ it are exposed, it will create widespread disenchantment like no other and will further undermine the rule of law which already is in a pathetic state. Let us face it, when people get further confirmation that daylight looting of the public purse by high ups in the political, bureaucratic and corporate sectors is tolerated with such brazen impunity, is it reasonable for the masses to have respect for the rule of law? This may well be the tipping point. It is obvious that without the ‘rule of law’ there can never be any meaningful socio-economic development.

It must be flagged that the ‘rule of law’ is also undermined if there is no social stability as witnessed on a regular basis due to our collective inability to ensure social justice and ethnic and religious peace in the context of a multi-ethnic, multi-religious and multi-lingual country. In its absence it exacerbates intolerance as witnessed recently in Gintota and earlier in Aluthgama and the harassment meted out to the already traumatized Rohingya refugees who were in Sri Lanka merely on transit.

‘Core’ of the Alleged Bond Scam

 

At the CORE of the alleged Bond Scam is:

1) The Central Bank of Sri Lanka (CBSL), the issuing agency for Treasury Bonds which normally falls under the Ministry of Finance was brought under the purview of the Prime Minister.

2) ‘CONFLICT OF INTEREST’ arising from then Central Bank Governor Arjuna Mahendran’s son-in-law, Arjun Aloysius – owning/controlling PTL (Perpetual Treasuries Limited) – a Primary Dealer.

3) Arjuna Mahendran – a foreign national was HANDPICKED for the position of Governor, CBSL by the Prime Minister although he was aware of the ‘Conflict of interest’. The PM himself CONFIRMED this in his affidavit and while testifying before the Bond Commission (PCoI).

4) The PM continued to have Mahendran as CBSL Governor although he was aware that Mahendran had RENEGED on his ‘assurance’ to him that his son-in-law (Arjun Aloysius) will sever all links with PTL PRIOR to his appointment as CBSL Governor.

5) The PM robustly defended and endorsed Mahendran for a second term despite the widespread perception of Mahendran’s role in the alleged Bond Scam.

6) Sadly, the PM’s affirmation in his affidavit to the PCoI: “Upon the formation of the new Government in January 2015 there was a general consensus within the Government that Mr Mahendran should be appointed to the post of Governor of CBSL.” was NOT PURSUED by the PCoI.

7) Unlike in the case of the other witnesses, the PM was given questions in ADVANCE by the PCoI to enable him to provide answers by way of affidavit.

8) Unlike in the case of the other witnesses, the PCoI decided to invite the AG himself who wasn’t involved in the investigation up to that point to personally lead evidence for the FIRST TIME. Up to this time, Messrs. Dappula de Livera and Yasantha Kodagoda – Senior Additional Solicitor General and Additional Solicitor General respectively lead evidence.

9) Unlike in the case of the other witnesses which included former Finance Minister Ravi Karunanayake who were GRILLED by Messrs. Dappula de Livera and Yasantha Kodagoda, limited questions were posed to the PM. The PM was at the PCoI reportedly for less than an hour to clarify matters arising from his affidavit

To adapt what Lady Macbeth said: “All the perfumes of Arabia will not sweeten” these immutable FACTS.

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