Home Blog Page 1921

CBSL Deputy Governor joins Governor in operation to criticise President!

0

Y.P. Fernando, Deputy Governor of the Central Bank of Sri Lanka (CBSL), too has joined the mission of openly criticising the economic solutions adapted by President Ranil Wickremesinghe, following months of debt default suffered by the island nation since the official announcement in May this year.

Speaking to a meeting convened by Minister Bandula Gunawardena at the Presidential Secretariat recently, Mrs. Fernando has made an offensive criticism and impulsively stated that the President’s economic programme is inaccurate and that there is no way forward for the country upon its implementation. The CBSL Deputy Governor’s comments levelling allegations against the three months old Wickremesinghe regime depicting a blissful ignorance towards the two and a half years of economic catastrophe brought by the decisions to which the CBSL officials too contributed under the Gotabaya Rajapaksa regime have made Minister Gunawardena speechless, according to sources.

Fernando and other CBSL bodies levelling with her seem to think that the country’s economy collapsed due to Wickremesinghe’s conduct, when, in reality, the CBSL heads, like herself, who should be held accountable for the disaster befallen the country, are now posing as petitioners gearing up to pin the blame on the shoulders of Wickremesinghe the new President.

Her criticism comes in as another segment of utter nonsense in a trend that the ousted Sri Lankan President Rajapaksa himself bequeathed to the country. Naming one, Gotabaya Rajapaksa appointed Dr. Nandalal Weerasinghe as the Governor of the CBSL and Nivard Cabraal’s successor together with Sabry the then Finance Minister officially declared Sri Lanka a bankrupt nation by announcing a debt default within a few days after assuming his position.

Today, the country is suffering from a franchise of difficulties due to the wrongful decisions taken by the CBSL without the approval of the Monetary Board or even the Cabinet. But people like Weerasinghe, the current CBSL Chief, ascribing the presidential power of Rajapaksa, continuously criticised Wickremesinghe when he was still the Prime Minister of the country and always endeavoured himself to convince the public that he was above Wickremesinghe. The recent events reveal that he has passed that on to Mrs. Fernando as well!

Weerasinghe hailing himself as the caped crusader continued to attack Wickremesinghe, but the UNP Leader turned the Prime Minister and then the President did not take any measure against the CBSL Governor’s provocations. Joining the same operation of openly criticising Wickremesinghe, who is now the President of Sri Lanka, the CBSL Deputy Governor too has prepared her arrows to be thrown at his direction.

President Wickremesinghe should understand that this must end one way or another.

Ranjan Ramanayake signs letter to President seeking pardon

0

Former MP Ranjan Ramanayake, who is currently serving a prison sentence over contempt of court, has signed a letter addressed to President Ranil Wickremesinghe requesting his release on Presidential Pardon.

Ramanayake signed the letter prepared by his lawyers, said Attorney-at-Law Dinesh Vidanapathirana.

MIAP

Showdown at the Mansion Gates: How Sri Lankans Rose Up to Dethrone a Dynasty

0

An army of nuns, farmers and middle-class professionals felt a duty to save their virtually bankrupt nation. But their fight is far from over.

By Mujib Mashal and Emily Schmall

COLOMBO, Sri Lanka — The president was cornered, his back to the sea.
Inside the dimly lit colonial mansion he had found lonely, Gotabaya Rajapaksa watched from a hastily arranged operations room as the months long protests demanding his ouster as Sri Lanka’s leader reached his very doorstep.
A former defense chief accused of widespread abuses during the South Asian nation’s three-decade civil war, Mr. Rajapaksa had taken an uncharacteristically hands-off approach toward the demonstrations. The message: He could withstand dissent.

But this largely middle-class movement — lawyers, teachers, nurses and taxi drivers incensed with an entrenched political elite that had essentially
bankrupted the country — was no routine protest. It kept swelling.

And now, in the late morning of July 9, thousands of protesters were massing in front of the seaside presidential residence, as hundreds of thousands of others flooded the capital, Colombo. Two wrought-iron gates and three barricades, all thickly guarded, stood between the demonstrators and the last standing member of the Rajapaksa political dynasty.

As demonstrators had marched toward the mansion, tear gas rained down, disorienting Dulini Sumanasekara, 17, who had camped for three months with
her parents, a preschool teacher and an insurance salesman, and other protesters along the scenic Galle Face in Colombo. After returning to the campsite to receive first aid, she and her family rejoined the protest.

“We were more determined than ever to make sure Gotabaya would be gone that very day,” she said.

By early afternoon, the mansion had been breached and Mr. Rajapaksa had slipped through a back gate, sailing away in Colombo’s waters and eventually fleeing the country. The protesters controlled the streets and seats of power — swimming in the president’s pool, lounging in his bed, frying snacks in his kitchen.

Interviews with four dozen government officials, party loyalists, opposition leaders, diplomats, activists and protesters sketch a picture of an unprecedented civic movement that overwhelmed a leader who had crushed a rebel army but found himself ill-equipped to address the country’s economic disaster and slow to grasp his support base’s rapid turn against him.

Three years after winning the election handsomely, and just two years after his family’s party had secured a whopping two-thirds majority in Parliament, Mr. Rajapaksa had become deeply resented. And the bill for his family’s years of entitlement, corruption and mismanagement, made worse by a global economic order plunged into chaos by Covid and war, had at last come due.

The Rise

Before his unlikely ascent to the country’s highest office in 2019, Gotabaya Rajapaksa had played second fiddle to an older brother who established the
family as a powerful dynasty.

Mahinda Rajapaksa rose to become president in 2005 on a promise to end the civil war. That conflict was rooted in systematic discrimination against minority Tamils by the majority Sinhalese Buddhists, the support base of the Rajapaksas.

Gotabaya eschewed politics and pursued a career in the military, retiring early as a lieutenant colonel in the late 1990s. He completed a degree in information technology in Colombo, and then followed his wife’s family to the United States, where he worked in I.T. at Loyola Law School in Los Angeles.

After becoming president, Mahinda put the former lieutenant colonel in charge of his generals and the war strategy.

As defense secretary, Gotabaya was ruthless and cunning, demanding nothing short of “unconditional surrender” by the Tamil insurgents, diplomatic cables released by WikiLeaks showed. The United Nations estimates that as many as 40,000 Tamil civilians were killed in the final months of the civil war alone.

Thousands of others disappeared, still unaccounted for. Gotabaya Rajapaksa has denied accusations of wrongdoing.

The Rajapaksas’ push to crush the insurgency came with a promise that economic prosperity would follow.

Shirani de Silva returned to her native Sri Lanka from Cyprus in 2006, a year into Mahinda Rajapaksa’s first term. By 2009, the insurgency was over and the island was once again open for tourism.

Ms. de Silva used savings to build a guesthouse and married a Sri Lankan who had also recently returned from working in Europe to open a restaurant and natural foods store.

By the time their son, Stefan, was born in 2011, both businesses were thriving. “I thought he would have a really good life,” Ms. de Silva said.

The family’s fortunes grew alongside the country’s. In the years after the war, economic growth was brisk, and the Rajapaksas turned to building — expansively. Leveraging the newfound peace, they borrowed huge sums, including from China, to build expressways, a stadium, a port and an airport.

In addition to being defense secretary, Gotabaya Rajapaksa was put in charge of urban development, bringing military precision and army muscle to efforts to beautify Colombo and improve town halls around the country.

Eventually, the Rajapaksas’ heavy hand and dynastic aims would fall out of favor. In 2015, Mahinda Rajapaksa was defeated in his bid for a third term. But as the governing coalition soon descended into chaos and bickering, the Rajapaksas slowly began their return to public life.

A faction of the Rajapaksas’ party rallied around Gotabaya as a technocrat who could mop up the political mess. He had a reputation as a doer and not a politician. He preferred short-sleeve shirts and Western pants to the brothers’ white robes and maroon shawls. The powerful Buddhist monks saw him as dedicated to the cause of the ethnic majority.

Mr. Rajapaksa was spending most of his time at home in Colombo. Travel abroad brought the risk of prosecution. During a visit to his old home in California, lawyers had tracked him down in a Trader Joe’s parking lot and handed him a notice of a tort claim by a person alleging torture.

It was ultimately a grievous security breach on Easter Sunday in 2019 that opened the door for the Rajapaksas to return to power. Suicide bombers targeted churches and hotels, killing more than 250 people. Intelligence warnings had been lost in the government’s infighting.

The country was gripped with fear; tourism came to a standstill. Entrepreneurs like Ms. de Silva worried that they could lose everything.

Desperate for security to be restored, Ms. de Silva and her husband were among the 6.9 million Sri Lankans who cast their votes for Gotabaya Rajapaksa in an overwhelming victory.

The Fall

His honeymoon would be brief.

Within months came the pandemic, which Mr. Rajapaksa answered with a familiar strategy: He deployed the army to carry out lockdowns and, eventually, vaccinations. But he was ill-prepared for the shock to an economy that had operated since independence on deficits, which had been deepened by Mahinda Rajapaksa’s reckless borrowing.

In one year, about $10 billion vanished from the economy as tourism dried up and remittances dwindled. In September 2020, some officials at Sri Lanka’s central bank suggested that the government approach the International Monetary Fund for help.

The administration “did not listen to our recommendations,” said Nandalal Weerasinghe, now the bank’s governor, who was deputy governor at the time. The president’s cabinet was divided, with party officials insisting that the country could avoid a bailout and the strings that would be attached, while Mr. Rajapaksa couldn’t decide.

Even as the economic crisis deepened, the president’s focus was often elsewhere. In April 2021, he suddenly declared a ban on chemical fertilizers. His hope, his advisers said, was to turn Sri Lanka into “the organic garden of the world.”

Farmers, lacking organic fertilizer, saw their yields plummet. And a rift in the family grew: Gotabaya resisted attempts by his brother Mahinda, who was now prime minister, to change his mind on the fertilizer ban.Mahinda’s return, after he had helped lead the party to a huge election victory, had weakened Gotabaya’s control by creating two centers of power. Eventually, the cabinet would be stocked with five Rajapaksas.

By the spring of 2022, long lines were forming for fuel, supermarkets were running low on imported foods, and the nation’s supply of cooking gas was almost exhausted as the government’s foreign reserves dwindled almost to zero.

The country was in free fall. And the one person who could do something about it was adrift. In meetings, the president was often distracted, scrolling through intelligence reports on his phone, according to officials who were in the room with him. To several of his close friends, he had become a prisoner of his own family.

The Backlash

Soon, small protests calling for the Rajapaksas to step down began popping up around the country. Eventually, Colombo’s Galle Face became a focal point.

Dulini Sumanasekara, the 17-year-old who began camping there with her family in April, toggled between volunteer service in the camp’s kitchen and online classes at home.

While she hoped to study medicine, Dulini, like all other students in Sri Lanka, had been kept out of the classroom — first by Covid and then by a government policy to go online to save fuel costs.

The crisis had also cost her mother, Dhammika Muthukumarana, a job at a private preschool. The family struggled to find and pay for essentials like milk powder and grains.

But it was less frustration, and more a sense of civic duty, that prompted Ms. Muthukumarana and her husband, Dhaminda Sumanasekara, to move with
their children to the Galle Face tent camp.

“We could feel it in our bones,” she said. “It was time to go stand up for our people and our country against the lies and corruption.”

As fuel became scarce, Mangla Srinath, a 31-year-old taxi driver, kept 20 liters of fuel in his bathroom, siphoned from his tank after he had managed to fill it.

His wife, Wasana, had breast cancer. He wanted to ensure that he had enough fuel for an emergency run to the hospital.

“Once a week, we would go to the protest in the evening,” Mr. Srinath said. “Sometimes, we would go on our way to the hospital.”

The protest site had grown into a civic space, a safe zone for the country’s religious, ethnic and sexual diversity. Some saw it as the long-delayed beginning of a conversation on reconciliation after the Rajapaksas’ postwar Sinhalese Buddhist triumphalism.

“People now openly talk about equality,” said Weerasingham Velusamy, a protester and a Tamil activist who works as a gender equality consultant.

“People talk about justice for the disappeared.” During a remembrance ceremony for the brutal pogroms against Tamils in 1983, Saku Richardson, a musician and a grandmother, leaned against her bicycle, holding a handwritten yellow sign that simply read “Sorry.”

“For 30 years, we didn’t do anything,” she said. “We didn’t protest.”

Ms. Richardson, who comes from a mixed Sinhalese and Tamil family, said a realization had set in among her friends that the country’s woes were a result of the impunity and entitlement of the military and political leaders after the brutal war.

“They feel that this is the curse of that,” she said. “That this is karma.”

The Collision

On the evening of July 8, the scene in the presidential mansion was frenetic, with lawmakers going in and out. The president, who didn’t sit down for a dinner of rice noodles and curry until close to midnight, was expecting, based on intelligence reports, a crowd of 10,000 protesters to gather the next morning.

Two months before, the movement to oust him had escalated sharply. Mahinda Rajapaksa resigned as prime minister, but on his way out, his supporters marched on the protest camp, fueling violent clashes that turned into a night of anarchy, with the houses of dozens of his party’s lawmakers set on fire in retaliation.

The president, Gotabaya, had received intelligence that his brother’s supporters were cooking up trouble, but he was unable stop it, according to officials who were with him that day. By early in the evening, he had nearly lost his voice from screaming on the phone, these officials said. To those in the room, his desperate calls down the chain of military and police command made clear he was losing control.

In the weeks that followed, Mr. Rajapaksa tried to project the clearing of his family members from the government as a fresh start, but the protesters were not appeased.

Now, on the morning of July 9, it was becoming clear that the number of protesters was much larger than expected.

Just before noon, as protesters pressed toward the mansion, they scrambled over the first barricade, in what many later called a spontaneous action. The barrier was quickly toppled by the crush of people who followed, pushing through volleys of tear gas. Once they had brought down two more barricades, a few protesters hopped the first of two gates to the mansion and unlatched it.

As the crowd reached the second gate, the last physical barrier between them and the president, the sound of gunshots rang out. Two people fell, wounded. Security forces rushed the protesters with batons.

Inside, it was clear the president was out of time. The generals told him it was time to go.

Video footage later emerged on social media of men rushing suitcases onto a navy vessel. The president was ushered through a back gate to the navy base behind the mansion. From there, he would set off in Colombo’s waters.

As he escaped, protesters hot-wired an army truck and rammed it through the final gate. Unable to hold the line, the security forces gave way. Hundreds of people flooded the compound, cheering and chanting as they filled the grand ballroom, climbed the spiral staircase, and occupied the president’s bedroom.

Among them was Ms. Muthukumarana, who felt a tinge of envy as she admired the expensive wardrobe of the president’s wife. That feeling quickly turned to anger, “realizing how much we had suffered to sustain their habits,” she said.

Mr. Srinath, the taxi driver, picked up his wife on his motorbike headed toward the mansion.

“The army guy told me, don’t worry, we will watch your bike,” he said. Husband and wife posed for a selfie on the stairway, Wasana still wearing her helmet.

Hours after the takeover, protesters put the word out that the mansion was now open to the public. Families waited in a line wrapping around the block to enter what had effectively become a free museum. Once inside, they studied the paintings and chandeliers, swam in the pool, sat around a long teak dining table and had picnics in the garden.

Order did not always prevail: By nightfall, a crowd had set Prime Minister Ranil Wickremesinghe’s private home on fire, and the police later said they were assessing the damage across the several buildings the protesters took over.

In the days and weeks that followed, it became clear that the protesters’ victory was only partial.

Gotabaya Rajapaksa eventually fled the country on a military plane, first to the Maldives and then to Singapore, before arriving in Thailand on Thursday.

But that did not bring a clean slate: The man who replaced him, Mr. Wickremesinghe, is seen as a protector of the Rajapaksas’ interests. He immediately declared a state of emergency, sending the police after several protest organizers. He faces distrust as the country needs to enact difficult economic
reforms.

As Parliament voted to confirm Mr. Wickremesinghe as president, three Rajapaksas — Mahinda and Chamal, and Mahinda’s son Namal — were there to cast their ballots, as if nothing had happened.

“The band continues to play,” said Mr. Srinath, the taxi driver, “when the ship is sinking.”

The New York Times

Ex President Rajapaksa advised not to leave hotel in Bangkok

0

Gotabaya Rajapaksa, the ousted former President of Sri Lanka, is currently staying at a hotel in Bangkok and is advised not to leave due to security reasons, foreign media claimed.

The former Sri Lankan President arrived in Bangkok with three other people on a chartered flight from Singapore at Don Mueang International Airport two days ago.

The name of the hotel is not disclosed to media and security officers in plain clothes are deployed for his security, according to reports.

Officials have asked the former leader to remain within the hotel during his stay in the country and the country’s Prime Minister noted that Rajapaksa would be allowed to enter Thailand on humanitarian grounds but would be advised to keep a low profile, reports added.

MIAP

The struggle of the Relatives of the Disappeared marks 2000 days!

0

The ongoing Struggle of the Relatives of the Disappeared, including the mothers of the North and East and reportedly the longest struggle in the history of Sri Lanka demanding the government to reveal the fate of their loved ones who disappeared during and after the 30 year-old war, marked 2000 days yesterday (12).

Marking the 2000th day of the Struggle, a protest march was organised from in front of the Kilinochchi Kandasami Kovil to the Depot Junction.

The North East Association of Relatives of the Victims of Enforced Disappearances, which strongly denies the acceptance of compensations and death certificates for their loved ones, including the victims of enforced disappearances and the children who were handed over to the Army during the end of the war, demands the government to immediately disclose their fate and the parties responsible for their disappearances.

The protesters revealed that 128 parents who had been continuously on the protest ground of the 2000 day Struggle passed away without learning the fate of their children. Many of the protesters including mothers and relatives of the victims had been subject to harassment on numerous occasions by the Police and the Military, they added.

MIAP

India’s External Affairs Ministry issues statement on controversial Chinese Defence Vessel (VIDEO)

0

India’s External Affairs Ministry denied all media reports claiming that it had pressured Sri Lanka not to allow the controversial Chinese space observation vessel to enter the Hambantota Port.

Speaking to a briefing yesterday (12), Spokesperson for the Indian External Affairs Ministry Arindam Bagchi made it clear that Sri Lanka is a sovereign state and so it can take independent decisions. Concerning security, the matter is related to the sovereign rights of each country, he added.

MIAP

Panduka Keerthinanda appointed as Legal Officer for Sri Lanka Rugby Administration

0

Panduka Keerthinanda, a veteran legal expert, the Chairman of the Sugathadasa National Sports Complex Authority, a member of the National Sports Council and an individual of vast experience in various professions related sports in his capacity as the Legal Advisor to the Ministry of Sports during the period 2010 – 2015, has been appointed as the Legal Officer for the Sri Lanka Rugby Administration, as decided by the Council.

Keerthinanda, who is currently serving as a legal counsel for Minister of Tourism and Lands Harin Fernando, has directly been instrumental in bringing about amendments to the Sports Act such as the Convention Against Doping in Sports Act No. 33 of 2013 and the Prevention of Offenses Act relating to Sports Act No. 25 of 2019.

The Sri Lanka Rugby Administration faced severe legal obstacles in the recent past and a great effort had to be put to the restoration of the men’s and women’s teams in the Commonwealth tournament amidst a restraining order brought in by the former subject Minister and temporarily removed by the Court.

Keerthinanda may have to deal with the forces against Rugby by supporting the Administration which is putting its efforts to add certain amendments to the sports law as well as to prepare for the intervention of the objections rising in the manner of fire under ashes against the sport.

Rishivi Illiyas, President of the Sri Lanka Rugby Administration, told LNW that as a person with a passion for sports and as a person with experience and knowledge of civil law and sports law, Keerthinanda would be able to control and eliminate the rising forces that are trying to evade the sport of Rugby from its path to success.

MIAP

Opposition Leader condemns unusual surge in electricity tariffs, calls it ‘electrocuting’

0

The unusual surge in electricity tariffs has severely inconvenienced the people of this country and the move may not be tolerable, said Leader of the Opposition Sajith Premadasa, speaking in Parliament yesterday (12).

Pointing out that the move is severely affecting from the ordinary people to the industrialists, the Opposition Leader stressed that this would be another burden on the people who are under extraordinary pressure amidst the current situation.

MIAP

Court denies former Ambassador Weeratunga’s request

0

The Fort Magistrate yesterday (12) denied a request made by former Sri Lankan Ambassador to Russia Udayanga Weeratunga to temporarily lift his overseas travel ban, as the motion filed by the Rajapaksa relative to obtain permission to leave the country for a trade seminar was taken up yesterday.

The overseas travel ban was imposed to Weeratunga in connection with the notorious MIG deal, and the Criminal Investigation Department (CID) appearing in the Court pointed out that any approval for him to leave the country would make his return to Sri Lanka uncertain, given that he had already evaded the Court by violating the ban during the period of 2015 – 2019.

Considering the facts, the Fort Magistrate Thilina Gamage denied Weeratunga’s request.

MIAP

Government resorts to domestic debt restructuring surgery

0

Sri Lanka Government is now resorting to restructure domestic debt to overcome fiscal and economic stress

Restructuring domestic debt is like surgery:“You only do it if you must, and you avoid it if it might do more harm than good” , the International Monetary Fund clarified in a recent report.

On the one hand, domestic debt restructuring may be easier to accomplish. Authorities can, for example, simply elect to alter the terms of debt contracts through changing domestic law.

On the other hand, domestic debt is often held predominantly by domestic creditors who will suffer losses.

Through this channel, sovereign debt distress can easily spread to domestic banks, pension funds, households and other parts of the domestic economy. This can add to the economic malaise that made the debt restructuring necessary in the first place.

So the government is now ina catch 22 situation caught up between options of Domestic Debt Restructuring or not. , he said adding the President is determined to take the risk.

Sri Lanka should not pave the way to create a banking crisis in attempting to reduce government debt by imposing haircuts on rupee debt in a bid to reach debt sustainability, Former Finance State Minister Eran Wickremeratne has said

Of the total debt, domestic debt increased by 22.4 percent to Rs. 11,097.2 billion at the end of 2021 from Rs. 9,065.1 billion at the end of 2020. The share of domestic debt in the total debt stock increased to 63.1 percent at the end of 2021 from 60.0 percent recorded at the end of 2020.

Rupee debt holders have already suffered a steep real hair cut with the rupee falling from 182 to 360 to the US dollar over the past two years and inflation hitting 60 percent.

When banks lose their capital the government will anyway have to bail them out adding to the debt, he claimed.

Pension funds such as EPF and ETF, financial sector which includes banks and insurance firms, as well as corporates holding a majority of the Treasury bonds will be greatly affected by domestic debt restructuring former Minister of Mega Polis Patalee Champika Ranawake said.

Around 8 million account holders in the EPF and ETF will face difficulties in recovering their gratuity as most of these funds invested in Treasury bonds, he said, adding that 57 percent of assets of the Bank of Ceylon and the Peoples Bank had been given to the government.

This is a serious and critical situation, he said, pointing out that President Ranil Wickremasinghe should hand over the surgery of debt restructuring and the ailing economy to a specialist surgeon and eminent economic consultant to save the patient.

The following finance ministry statistics show the gravity of the domestic debt ailment of the country he said.

Finance Ministry data

The total debt, domestic debt, increased by 22.4 percent to Rs. 11,097.2 billion at the end of 2021 from Rs. 9,065.1 billion at the end of 2020.

The share of domestic debt in the total debt stock increased to 63.1 percent at the end of 2021 from 60.0 percent recorded at the end of 2020.

The share of short-term debt in total domestic debt stock increased to 28.3 percent by the end of 2021 from 24.2 percent reported at the end of 2020 mainly due to the increase in the Treasury Bills by 40.1 percent, to Rs. 2,270.5 billion at the end of 2021, compared to Rs. 1,620.7 billion recorded at the end of 2020.

Furthermore, the share of Treasury Bills in total domestic debt stock increased to 20.5 percent at the end of 2021 from 17.9 percent at the end of 2020.

The medium and long term domestic debt stock increased by 15.9 percent to Rs. 7,957.4 billion by the end of 2021 from Rs. 6,867.5 billion recorded at the end of 2020.

The banking sector debt increased by 15.5 percent to Rs. 5,467.1 billion at the end of 2021 from Rs. 4,731.7 billion in 2020 due to the increased debt to commercial banks and the Central Bank