News
Mr. Minister, read your own minutes
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Ever heard of a Government accusing newspapers of distorting facts to “disrupt the economic development of Sri Lanka” when the news report in question is nothing but the truth and the whole truth?This time the accusation was against the Sunday Times over last week’s front page lead story headlined “H’tota and Mattala: China declines Lanka’s request.” Most piqued was Malik Samarawickrema, Minister of Development Strategies and International Trade. The man, who formulates strategy and negotiates for Sri Lanka all international deals, was evidently unaware or forgotten what is going on with regard to key matters in his own Ministry?
So, having read his favourite newspaper, he made telephone calls to a few including Prime Minister Ranil Wickremesinghe. By Sunday evening, a Sinhala text (a denial of our report) arrived at the Government Information Department. Officials there were unaware from whom or where it came. The translation into English was carried out at the Department. The texts were released to all media.
State media, Derana and Sirisa television networks gave prominence to the statement on Sunday night, at least one saying privately that it did so “under pressure.” One television outlet, though the Sunday Times was not mentioned in the statement, showed visuals of the masthead and the report in question. However, none of the print media published any reference except for a vernacular news sheet now facing a cash crunch and wanting a government bail-out. Whether the outlets which used the news release that accused us of disrupting the economic development of the country will now set the record right with our own account is to be seen.
Appearing on this page is the statement issued by the Government Information Department, the minutes of the meeting of the Cabinet Committee on Economic Matters (CCEM) and a montage of the minutes as proof of our story. These will give the reader a clear idea of what the Sunday Times has reported though Minister Samarawickrama feels embarrassed by this revelation. Thus, the broad accusation that we are disrupting the economy, a new brand name the Government gives to independent media needs to be dismissed with the contempt it deserves. As is clear, the truth hurts. It hurts more when they don’t like the public to know.
| Minutes of Cabinet Committee Here is the full text of the minutes of the meeting of the Cabinet Committee on Economic Management (CCEM): “Decision HE the Ambassador for China who was present in the discussion was briefed by the chair that there is a requirement of converting the existing debt of completed Chinese funded projects such as Hambantota Port, Mattala Airport and other projects funded by China into equity with a view to having more space for obtaining loans from China. HE the Ambassador of China explained that according to the existing Chinese law it is not possible to convert the debt directly into equity and it has to be done through discussions with investors on commercial terms. (Emphasis ours) It was further mentioned that the Chinese Government is willing to extend its fullest co-operation on this matter and support to overcome the current financial issues of Sri Lanka. It was further explained that there is an urgent need to start the budgetary process for the coming year and since the major portion of Government’s recurrent expenditure is the Chinese loan instalment component, it is necessary to finalize the debt amount which can be converted into equity without a delay. Many Chinese investors have already responded to this requirement of the SL Government and submitted their investment proposals for some of the completed projects mentioned above. The following options were proposed to select suitable investors for projects which have been identified to be transferred into equity. a). To call for proposals worldwide b) To call for proposals from the Chinese companies c) To conduct direct negotiations with the Chinese companies, selected jointly by the Sri Lanka and Chinese Governments. Approval was granted to submit the draft Cabinet Memoranda on the following matters to the Cabinet for its approval after incorporating the amendments proposed above. a) Commercial issues b) Policy, Administrative and Legal issues c) Withdrawal of compensation claims by Colombo Port City Project Company. Instructions were given to take necessary action to sign the tripartite agreement after taking Cabinet approval and conduct further negotiations after commencing the project. Under another subject which says the Hambantota Development Programme, A note submitted by the Minister of Development Strategies and International Trade in Integrated Development of Hambantota was discussed and the committee was briefed that it is proposed to establish an institution named Hambantota Development Corporation to co-ordinate the development of Hambantota area and it is recommended to appoint a committee to draft the necessary laws for the establishment of the corporation. The CCEM approval was granted for the same. Instructions were given to submit a Cabinet Memorandum seeking approval of the Cabinet to stop allocating the lands in Hambantota area and for development projects etc. without obtaining approval of the CCEM. |
| The Government’s hurried denial The following is the statement issued by the Government Department of Information last Sunday (July 31): “The debt equity transfer on the Chinese loans will be implemented in accordance with the discussions Prime Minister of Sri Lanka had in Beijing with the President of the Peoples Republic of China His Excellency Xi Jinping and Prime Minister Li Keqiang on 7th and 8th April 2016. “In accordance with the discussion, in the first instance the Chinese Government will promote Chinese firms interested in entering to Private-Public Partnership with Sri Lanka Government in regard to the specified project. The Cabinet Committee on Economic Management (CCEM) has instructed Minister of Development Strategies and International Trade and Minister of Special Assignments to discuss the required modalities with the Chinese Ambassador and to report back to the CCEM. The discussions have been finalised and report to be submitted. ‘Following these discussions, on Friday 29th July 2016, a meeting was held in Hambantota by the two Ministers with the Chinese Ambassador and interested Chinese firms on the proposals for Mattala Airport, Hambantota Port, Tourism Zone, a Petroleum Refinery, a dockyard, a LNG Power Plant and Industrial Parks. These will come under the Public Private Partnership between Sri Lanka Government Agencies and Chinese Investors. Furthermore, the Ministry of Development Strategies & International Trade is discussing other investment proposals in regard to Hambantota with foreign investors of other nationalities. This includes a second Petroleum Refinery. “A part of the English print media have distorted the facts in regard to these transactions in order to disrupt the economic development of Sri Lanka. The discussion alleged to have taken between the Prime Minister Hon. Ranil Wickremesinghe and the Chinese Ambassador as stated in the Sunday Times titled “H’tota and Mattala : China declines Lanka’s request” is false. This paper together with the Financial Times are leading the campaign of dis-information.” |
| Montage of the minutes Here is a montage of the minutes of the Cabinet Committee on Economic Matters which clearly disproves the Government’s claim.
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