Columns

• Hardly any Government member came to his defence, when the opposition confronted him with Gota-Go-Home chants
• Gotabaya tells confidants he has the support of a powerful external source and therefore has no overt concerns about his future
• The fissure between President and Prime Minister widens; PM believes Dhammika Perera’s attack on him had blessings from top

By Our Political Editor

A group of opposition parliamentarians, some carrying handwritten posters, displayed them from one side of the well of the House last Tuesday. They chanted what is now a household oneliner – Gota Go Home.  A few feet away, seated next to Prime Minister Ranil Wickremesinghe, a distraught President Rajapaksa watched in awe. If his body language was anything to go by, he could not hide the embarrassment. No President in the past has faced such humiliation right in before their eyes. Not even President Ranasinghe Premadasa, who faced a motion of impeachment in September 1991.

Premier Wickremesinghe was on his feet. At that moment he was to remark that Sri Lanka was participating in negotiations with the International Monetary Fund (IMF) “as a bankrupt country.” He said, “we had to face a more difficult and complicated situation than previous negotiations,” as the man under whose leadership the economic chaos occurred raised his head to look at Wickremesinghe’s face every now and then.  Those familiar with his expressions said he was livid.

That Tuesday, Opposition Leader Sajith Premadasa, was a little late to arrive in Parliament. A group of his Samagi Jana Balavegaya (SJB) parliamentarians, including Harshana Rajakaruna and Nalin Jayamaha, were to approach him as he was walking in. They told him that the President had arrived in Parliament. They said he should not be allowed to go scot-free without the opposition showing him their displeasure. Premadasa smiled and the others took that as a sign of approval. That was how a protest was hurriedly put together.

The chorus of opposition protests was reaching a high note. Unable to silence them, Speaker Mahinda Yapa Abeywardena adjourned sittings for ten minutes. When the chanting of “Gota Go Home” continued for a while thereafter, a disturbing insight into the mood within the government benches became glaringly apparent. No parliamentarian stood up to defend President Rajapaksa. The only exception, however, was onetime minister S.B. Dissanayake. His remarks were inaudible, and he was seen gesticulating. A humourous opposition parliamentarian likened it to a scene where a cleaner was guiding a lorry driver to reverse in an area of restricted vision. Within moments, President Rajapaksa rose from his seat, pulled down the lapels of his coat from their edge, stepped ahead, and walked out. He never returned to the well of the House.

His early arrival in Parliament on Tuesday was prompted by a speech made the previous day by National Freedom Front (NFF) leader Wimal Weerawansa. Obviously sarcastic, he wanted to know where President Rajapaksa was nowadays since his whereabouts were not known. As is well known now, President Rajapaksa has avoided public functions and has only been meeting visiting dignitaries as well as diplomats at the President’s House. He shifted there after a mob attack on his private residence at Mirihana in Nugegoda.

The aftermath of Tuesday’s developments in Parliament appears to have reverberated elsewhere the next day, Wednesday. Newly appointed Investment Promotion Minister Dhammika Perera told a media briefing that Ranil Wickremesinghe should resign as Minister of Finance, He accused the Prime Minister, who holds the portfolio of finance, of not being able to bring into the country, any foreign exchange. Throwing a challenge to him for a public debate on what he had done so far, Minister Perera charged that he had blocked projects that would bring foreign exchange. This is the first time under the Sri Lanka Podujana Peramuna (SLPP) coalition that a cabinet minister has publicly called for the resignation of their own Prime Minister. Did he make those remarks, which unquestionably are a serious breach of discipline and code of ministerial conduct, of his own volition or at the behest of anyone above him?

The issue resonated in the lobby of Parliament. A group of SLPP parliamentarians led by former minister Channa Jayasumana, saw Premier Wickremesinghe walk out of the chamber towards the lobby. “Sir, what is happening. What do you say to Minister Dhammika Perera’s statement?” asked Jayasumana. The Premier replied, “there is a powerful person’s hand behind it.” Even if Premier Wickremesinghe did not identify such a powerful person by name, the remarks assume greater political significance. This is in the light of the growing uneasy relationship between President Rajapaksa and Premier Wickremesinghe. Influential sections within President Rajapaksa’s fold believe it would be a matter of time before the finance portfolio is shifted from Premier Wickremesinghe to another. It appeared that he was causing more embarrassment through his statements than most others in the opposition.

Of course, one must bear in mind here that both the premiership and the finance portfolio were bestowed on Wickremesinghe purely at the will of President Rajapaksa. It was not offices that were sought after or canvassed for. At that time, President Rajapaksa did not publicly make clear what he expected of Wickremesinghe. Nor did the latter detail out the missions he had been tasked with. However, sources close to the President, including some parliamentarians, have spoken of the main objective — Wickremesinghe’s perceived close links with western countries to drum up foreign financial assistance to overcome the economic crisis. Does President Rajapaksa now feel this has not been achieved and his Prime Minister is focusing on extraneous areas irrelevant to the revival of the economy? Or is the move also the result of simmering embers from the friction over the appointment of Dr Nandalal Weerasinghe as Governor of the Central Bank?  Separate conferences by President Rajapaksa and Premier Wickremesinghe over matters coming under the Ministry of Finance have become all too common now.

Websites that support Premier Wickremesinghe have launched a bitter attack on minister Perera. They have accused him of trying to liberalize the operation of casinos and praised the Premier for ensuring that billions of rupees in taxes, outstanding for a long period, were paid up. United National Party (UNP) General Secretary Palitha Range Bandara was incensed that his leader had been called upon to resign as Finance Minister.

He told the Sunday Times, “There is a certain level of discipline needed to be maintained by cabinet members. Collective responsibility is normally maintained by cabinet members and if there are issues, it is discussed within the cabinet and resolved. It is very unprofessional when a cabinet minister comes in the open and demands resignation. This matter is in the hands of the President. He should take some action.”

Adding to this new saga are the serious bribery allegations against Ports, Shipping and Aviation Minister Nimal Siripala de Silva. In recent months, he has become a confidant of Premier Wickremesinghe and has also been rendering advice on some issues. On July 1 (Friday), Japan’s Ambassador Mizukoshi Hideaki was invited to lunch by President Rajapaksa. They had a discussion on the current economic situation in Sri Lanka. Thereafter, Ambassador Hideaki is learnt to have explained the difficulties Taisei Corporation, a leading Japanese company, which is carrying out development work at the Bandaranaike International Airport (BIA), faced due to fuel shortages.

However, in a speech made in Parliament, Opposition Leader Sajith Premadasa was to develop on this aspect. He said, “All acts of fraud, corruption and theft in this country must be stopped. I’m asking the Prime Minister; it is said that the President grew extremely flustered that a present member of the Cabinet had demanded a bribe from Japan’s Taisei Corporation. I’m asking how the country can be saved with such a government in charge. The Prime Minister asked us for solutions. Who was the corrupt Cabinet Minister that obtained money from Taisei Corporation? Ask from the President who the minister is.”

After Premadasa raised issue, President Rajapaksa urged minister Nimal Siripala de Silva to tender his resignation until investigations into the allegations are completed. This is what a statement from the Presidential Media Division said: “President ordered to conduct an immediate investigation into the allegations levelled by opposition leader regarding a transaction between Ministry of Aviation and a private company…

“President Gotabaya Rajapaksa ordered an immediate formal investigation into the allegations levelled by the opposition leader in Parliament yesterday (05) regarding a transaction between the Ministry of Aviation with a private company.

“Minister Nimal Siripala De Silva will step down temporarily from the position of Minister of Ports, Shipping and Aviation Services on the instructions of the President until the investigations are concluded.” The embarrassment to him was so much that de Silva told friends he had chosen to resign on his own “to clear his name at an inquiry.” In the light of new developments, it is unlikely he would get the portfolio or even another.

The outcome of the investigations will only show the role of former minister de Silva, onetime Sri Lanka Freedom Party (SLFP) senior Vice President, who gave up the party post to accept a portfolio in the government. However, it is no secret that many foreign governments are wary about channelling funds to Sri Lanka directly since they are aware some of it, if not most, end up in the pockets of powerful politicians and their progeny. Allegations of corruption in emergency procurements, like for example cooking (LPG) gas, have been many. Just this week, the Committee on Public Enterprises (COPE) heard complaints about alleged irregularities in procuring new stocks.

COPE Chairman Charitha Herath told the Sunday Times, “We will go into how emergency procurement of essentials has been carried out. On Tuesday, we summoned those at the Ceylon Petroleum Corporation (CPC) as well as the Public Utilities Commission of Sri Lanka (PUCSL). Constant checks have become necessary to ensure public funds are not misused.”

Tuesday’s goings-on in Parliament, at least most in the opposition thought, would have served as a strong message to President Rajapaksa to think of his future role. So did the public at large who became aware of the call for him to quit. However, on the contrary, the President is having his own plans for the rest of his two-year and four-month tenure in office.

As previously reported, he has initiated diplomatic moves to ascertain whether any fallout on him from the 51st sessions of the Geneva-based UN Human Rights Council, which reflect on him, could be mitigated, or softened. Foreign Minister G.L. Peiris took part in the 50th sessions of the Council last month. In behind-the-scenes consultations, he sounded out delegates from key member countries on the prospects of jointly discussing the proposed new resolution due in September.  He is keen to ensure a 273-page draft constitution, with some highly controversial provisions, could be implemented during his current tenure. President’s Counsel Romesh de Silva, who chaired a committee, has already handed over to Justice and Constitutional Affairs Minister Wijeyadasa Rajapakshe, a copy of this draft during a much-publicised photo event. How that will blend with the proposed 22A (21A in real terms) is not clear. However, it is increasingly apparent now that this amendment may not see the light of day. Even the man spearheading the exercise, Minister Rajapakshe, has not been able to explain so far how this amendment reduces the powers of the President – the main plank of the Government’s campaign. He also wanted to place in the statute what he calls one law for all Sri Lankans.

On Wednesday, President Rajapaksa chaired a meeting of the National Security Council where intelligence reports about the planned protests on Saturday (yesterday) were discussed. The need to fortify security at the President’s House to prevent any thrust into the premises by mobs was examined. There were suggestions to shift President Rajapaksa to a safe location, a secure military cantonment. Countermeasures that include the protection of key personalities were formulated. Security forces and the Police are being found all the wherewithal including substantial stocks of fuel. At least 10,000 additional troops and Police were to be deployed.

An earlier attempt by university students to march towards the President’s House led to Police firing teargas and water cannons. It was decided to impose an indefinite curfew, a move which drew international criticism. The Government backed out by withdrawing the curfew from 8 a.m. yesterday. If its imposition was a knee-jerk reaction, the withdrawal exposed the workings of the security apparatus. Detailed reports in this regard appear elsewhere in this newspaper.  The deployment of intelligence personnel in the Greater Colombo area was stepped up. For obvious reasons, one cannot detail out the measures decided upon after a few reports were taken up one after another. A source familiar with the goings-on said some top officials and military top brass sought a crackdown on those who may resort to violence or not friendly.

President Rajapaksa has also told confidants that he had the strong backing of a powerful external source and therefore had no overt concerns about the future. The source was identified but doubts remain in knowledgeable quarters about the veracity of the claim. Questions are being raised as to whether such an assertion was based purely on individual assurances, as is the diplomatic practice, rather than a declaration of policy where a well-studied caution is maintained. Yesterday’s incidents showed that he has been living under a myth. Against this backdrop, he has taken it upon himself to spearhead moves to procure essentials that are now in short supply and have become the cause for public agitation. He is periodically checking with state agencies about the status and following them up with instructions. Many had to tell him there was no foreign exchange.

It is only when others, particularly Opposition Leader Sajith Premadasa, refused that President Rajapaksa turned to Ranil Wickremesinghe to make him Prime Minister. In hindsight, it is abundantly clear it has brought him good dividends. Firstly, he has consolidated his position despite mounting opposition from the public. Secondly, he has become much more assertive than before telling the security forces, and the police not to tolerate violence and to rally around him. He is depending on them to play their legitimate role. Interactions at the highest levels have underscored this factor. Thirdly, whilst a Ministry of Foreign Affairs is in place with little or no tangible contribution to any national effort except heroic media statements, President Rajapaksa has taken over the conduct of foreign policy, talking to foreign leaders on the telephone and diplomats in Colombo. Fourthly, he has gained assertive control of the Government parliamentary group. He chairs meetings ahead of sessions of Parliament, as in the past. However, a key feature at these meetings, particularly nowadays, is the deafening silence of parliamentarians who take part. Last Monday was an example. No one raises any issue from President Rajapaksa or Premier Wickremesinghe. Is that subservience or for fear of reprisals is not clear. But the shortage of essentials has spawned a multitude of issues and the voters who elected them are suffering untold hardships. Yet, the parliamentarians sit through saying nothing about them.

The defiant stance of President Rajapaksa, seizing the breathing space provided by the induction of Premier Wickremesinghe, has in its own way emboldened his position. Three months of protests at the Galle Face Green, backed by most of the Sri Lankan public countrywide and endorsed by their fellow countrymen the world over, appears to have caused little or no dent. He is determined to stay in office and implement his own agenda during the rest of his term. His justification for the exercise, he says, is the mandate given to him by 6.9 million voters at the presidential elections in November 2019. He should surely know that these 6.9 million voters include the Sri Lankans who have no fuel, no cooking gas, no medicinal drugs and live for hours in darkness. It is their children whose schools are closed. It is their food prices that have skyrocketed.

It is to discuss the current situation that Opposition Leader Premadasa invited all non-government MPs for a discussion in Parliament this week. Taking part in the event, among others, were former President Maithripala Sirisena, Rauff Hakeem, Palani Digambaram, Champika Ranawaka, Vasudeva Nanayakkara, Tissa Vitharana and M.A. Sumanthiran. Most of the speakers noted that the Government could not go on in the way it was conducting itself. Sumanthiran said that they should oppose 22A, which, in no way, reflected the reduction of the President’s powers. However, Gevindu Kumaratunga, was in favour of backing the amendment saying that it could form the basis of a good start to build upon later.  However, there was unanimity in the concerns expressed over the worsening situation in the country. The meeting led to the appointment of two committees. One headed by Rajitha Senaratne is to begin a dialogue with other political parties to explore the prospects for an interim government. The other, led by Harsha de Silva, is to formulate an economic recovery plan.

The move came as Premier Wickremesinghe presented in Parliament last Tuesday what he called a “road map” to “revive the economy that has collapsed.” If he was earlier hopeful that an agreement with the International Monetary Fund (IMF) would be reached on an Extended Fund Facility (EFF) in June, and later declared July, he made a new forecast. He said the next step is to submit to the IMF a plan on debt restructuring and sustainability. This, he said, was now being prepared by financial and legal experts Lazard and Clifford Chance. Hence, “we hope to submit this report to the IMF by August” – a clear statement that a commitment on the EFF will be very much after August, this year. That more time would be taken was further highlighted when he said that this agreement must be presented to the IMF Board of Directors for approval.

Premier Wickremesinghe noted that in the past, Sri Lanka held discussions as a developing country. “Now it is different. We are now participating in the negotiations as a bankrupt country,” he declared. According to him, “it is due to the state of bankruptcy our country is in, we have to submit a plan on our debt sustainability to them separately. Only when they are satisfied with the plan can we reach an agreement at the staff level. This is not a straightforward process.”

Nevertheless, Sri Lanka’s hurried recourse to the IMF came only when it was known that the country was on the verge of bankruptcy. The Central Bank of Sri Lanka had formally declared bankruptcy when the dialogue with the IMF got underway.

Yet, this is not the first time that Premier Wickremesinghe has spoken of a report on debt restructuring and sustainability being formulated by Lazard and Clifford Chance. Some of the main elements in his “road map” are contained even in his previous statements too. Here is what he said during his statement in Parliament on June 22: “Representatives of the financial and legal advisory firms Lazard and Clifford Chance are now in Sri Lanka to assist us in our debt restructuring efforts. The framework for debt repayment restructuring is being formulated…….. Here the most important is our debt restructuring plan. We will together with the teams from Lazard and Clifford Chance do our utmost to complete the framework for this plan before the end of July. Considering the planned framework and the official level agreement it is expected that the Executive Board of the IMF will then arrive at a final decision….”

The reason for the IMF visiting team not signing the Extended Fund Facility (EFF), after concluding their visit to Colombo, despite plans to do so, is still unclear. Instead, they have spoken about concluding the agreement “in the near future.” Quite clearly, despite Premier Wickremesinghe’s assertions, the goal post is being shifted.

Unlike in other situations where haircut and restructure terms were agreed with the majority of creditors before seeking agreement from China, which has always hit troubles, in this instance the advice apparently has been for Sri Lanka to first agree haircut/terms with China and take the same terms to the rest of the bilateral lenders which Lazards believe has a better and faster chances of getting a resolution.

The central bank estimates a contraction in growth of 4% to 5% this year, with inflation to hit 60% by year-end, Prime Minister Wickremesinghe told Parliament on Tuesday. Sri Lanka’s headline Inflation may increase to 70% in the coming months from the present level of 50% , warned Central Bank Governor Dr. Nandalal Weerasinghe on Thursday. On contraction in growth, the Premier himself said estimates from the IMF is to be 6% to 7% contraction compared to 4 to 5% by the CBSL. Which of these estimates should Sri Lankans believe?

The longer an IMF bailout for Sri Lanka takes, the longer the current shortage of essentials including fuel, gas, medicinal drugs, and the power cuts will continue heaping more burdens on the people. The absence of an EFF will prevent the government from going to other lenders who await the granting of this facility as a guarantee. Hence, one man, President Gotabaya Rajapaksa versus most of the Sri Lankans will have to fight it out. There is no hope and no relief for them as he has dug his heels and declared he will wait. He will but at what cost on top of the colossal damage already done.