• Bomb swoop on hills
• Indo-Lanka trade gazette missing
• Initial peace talks in Oslo
• CBK seeks UNP proposals before meeting

Bomb swoop on hills

By Leon Berenger

Police have put into effect a series of steps including the extensive use of dogs to sniff out explosives and formed a special strike-force in a bid to check LTTE operations in the hill country.

Central Province Police Chief Sirisena Herath told The Sunday Times that among the steps taken were limited 'street operations' where a particular area is cordoned off and shops, houses and residences searched.

A police Rapid Deployment Force has also been set up in several areas of the Central Province, with combat trained policemen and sharp shooters patrolling the streets on motor cycles.

"The dogs are also introduced to check passengers boarding trains and buses to and from Kandy and other central spots in the area. In some cases the dogs are taken into the trains from remote stations and passengers and baggage are searched while on the move," DIG Herath added.

See Special Report for more details.

Indo-Lanka trade gazette missing

The long-delayed trade pact with India is likely to be further delayed by at least a month while business and political circles are concerned about the failure to gazette the deal as promised in President Kumaratunga's budget speech on Monday.

The President who made a surprise appearance in parliament to personally deliver the budget speech, promised that the gazette notification would be issued immediately. But it had not appeared till last night, causing more concern among the business and industrial sectors about what items come under the agreement.

While government sources said the deal would now come into effect from April and not next month as earlier planned, the negative list is expected to be submitted to the cabinet next week for ratification.

There had been expectations that the Free Trade Agreement (FTA) between Sri Lanka and India would be effective by this week following President Chandrika Kumaratunga's presentation of the budget in parliament on Monday.

"I propose to implement Sri Lanka's commitments in terms of the agreement (FTA) with immediate effect. The relevant gazette order will be published tonight. The copy of the agreement together with the relevant annexures will be placed before parliament for the benefit of the honourable members in due course," the President said in the budget speech.

That set off trade expectations that the pact would be effective within a week. The government sources said the gazette would be ready after cabinet sanction was obtained on the list — expected to be a formality.

Sri Lankan officials led by Finance Secretary P.B. Jayasundera, and Indian officials endorsed the agreement and the negative list — the bone of contention — during a meeting in New Delhi on February 3.

Both sides then, in a joint statement, said the FTA originally signed in December 1998 and due to have been operational by first half 1999 would become effective in March this year.

The implementation of this agreement signed between the leaders of India and Sri Lanka was delayed due a dispute over the negative list, which contains items that are not entitled to free trade. The problem areas were tea and garments exports to India.

New Delhi was reluctant to allow greater access of Sri Lanka tea and garments without taxes while Colombo trade sources said the deal would be a non-starter without these concessions.

After negotiations, India agreed to allow 15 million kgs of Sri Lanka tea at half the current duty rate (which is around 15 percent) while also allowing imports of eight million pieces of garments at 50 percent of the existing duty rate.

Of this number, the fabric for six million pieces must be sourced from India.

Some trade sources said the latest delay in implementing the Indo-Lanka trade pact was probably because of the Indian budget, normally presented at the end of February. "Being a revenue earning measure, the Indian government may want to present the revenue proposals from the FTA as part of the budget," one source said.

Tea and garments' trade sources were generally positive on the FTA, saying it would boost Sri Lankan exports. "There may be mixed feelings on this but I think this is a good starting point for garments exports," said Lyn Fernando, a veteran garment exporter and chairman of the Exporters Association of Sri Lanka.

The association has also organized a discussion on the FTA at the Chamber of Commerce Auditorium on March 9 and invited Finance Secretary Dr. Jayasundera to outline and explain the pact. "On our part, we will also make presentations on ways of maximizing the FTA and we will be able to clarify various issues on the deal," Mr. Fernando said.

But before that, trade queries and clarification on the FTA are likely to be raised at a meeting of trade chambers and the Finance Secretary and his officials tomorrow. This regular monthly meeting between the trade and government officials was last held in August/September, last year when Dr. Jayasundera was deputy secretary to the Treasury. It is now being revived in his capacity as Treasury secretary.

The pact provides for duty free as well as preferential access for goods manufactured in both countries. India has said it would phase out tariffs on several items within three years while Sri Lanka has promised to do it in eight years. Chrisantha Perera, chairman of tea broker Forbes & Walker Ltd, said they were awaiting details from the government on allocations under the 15 million kg that can be exported to India at preferential rates.

"The deal is good and will boost the market, even if India is seen buying cheap teas from here for their domestic market and exporting its better-quality teas. Whichever way, Sri Lanka benefits because a 15-million export order will influence auction prices," he said.

Initial peace talks in Oslo

By Shelani de Silva

The fourth attempt to bring the LTTE to the negotiating table kicked off this week with no discussion however on substance or on any timeframe for talks, The Sunday Times learns.

Norwegian Foreign Minister Knut Vollebaek who was in Sri Lanka on a 24-hour visit on Wednesday has thrown his county's hat into the ring to bring about a negotiated settlement to Sri Lanka's near-two-decade insurgency.

The proposed constitutional reforms aimed at resolving the ethnic conflict are expected to be sent to the LTTE possibly through Norway as part of the efforts to resume negotiations, government sources said.

But Norway will carry this draft to the LTTE only if the proposals were supported by the main opposition UNP also, The Sunday Times learns.

Norway becomes the second foreign country, after India, to try to work out a peaceful settlement to the insurgency.

Last Wednesday's talks between Mr. Vollebaek and President Chandrika Bandaranaike Kumara-tunga mainly revolved around modalities and venues for talks between the Government and the LTTE. The most likely venue for the first round is Oslo, the Norwegian capital, The Sunday Times learns.

There was however no mention of controversial issues such as devolution, mergers, traditional homelands or laying down arms during these talks.

The talks between Mr. Vollebaek and his Sri Lankan counterpart Lakshman Kadirgamar lasted nearly four hours. They also discussed bilateral issues such as Sri Lanka's support for Norway's candidature for a seat in the UN Security Council.

Both sides were tight lipped about the issues discussed.

A Colombo Foreign Office statement kept the official version down to stating that Norway was willing to accept the 'challenging task' of trying to bring the parties (Government and LTTE) together in a dialogue.

The statement quoted Mr. Vollebaek as saying he was embarking on this task 'upon a request from the President and a wish from the LTTE'.

The LTTE further quoted Mr. Vollebaek as saying that the political will of the parties was required for the talks to succeed, and that it would take time.

The Sunday Times learns that bridge-building and confidence building exercises will be the initial task of the Norwegian negotiators who will initially be diplomats from the Oslo Foreign Office.

Mr. Vollebaek is reported to have informed the Sri Lanka Government that Anton Balasingham — LTTE's main negotiator at Thimpu during President Jayawardene's tenure, and during President Premadasa's (1990) and President Kumaratunga's (1995) will once again be the LTTE's chief negotiator.

Dr. Balasingham who is reportedly unwell currently resides in London. He was recently refused entry to Australia.

The proposed constitutional reforms aimed at resolving the ethnic conflict are expected to be placed before the LTTE as part of the efforts to resume negotiations between the governemnt and LTTE.

Meanwhile, several Sinhala groups are protesting against any facilitation by Norway. On Friday twenty organisations handed over a petition to the Norwegian Ambassador.

Bhumiputra Party chief Harischandra Wijetunge said the Norwegian ambassador had told them it was the Sri Lankan government which invited his country to help resolve the conflict.

The petition is to be sent to the Norway Government.

National Joint Committee secretary Piyasena Dissanayake said they were not against talks with the LTTE but it must be direct talks without any other country getting involved.

But other groups have welcomed the moves by Norway. Ven. Kamburugamuwe Vajira Nayake Thera, who heads a religious alliance for peace, said they welcomed any genuine move to resolve the conflict through talks.

CBK seeks UNP proposals before meeting

President Chandrika Kumaratunga has requested the UNP to submit its proposals on constitutional reforms prior to Tuesday's crucial meeting with UNP Leader Ranil Wickremesighe.

The President in a letter to Mr. Wickremesinghe said: "if your own solutions are made available to us prior to our meeting it would help in having a more fruitful discussion."

The UNP was discussing the President's request at a meeting yesterday evening, party Chairman Karu Jayasuriya told The Sunday Times. The President has invited Mr. Wickremesinghe and two party representatives for Tuesday's meeting at the Temple Trees. The President's letter on Friday was in response to Mr. Wickremesinghe's letter a month back.

While giving reasons for the delay in inviting the UNP for discussions on the draft constitution, President Kumaratunga said the PA had decided to discuss the matter first with minority parties and then to invite the UNP. This resulted in a delay in sending a reply.

"I wish to emphasise that what we expect to discuss is none other than the draft that was prepared by the Government in August 1995 about which Ministers of my Government and myself had discussions with you and your party on more than 10 occasions and was discussed for a period of about 2 1/2 years in the Parliamentary Select Committee that included representatives of your party and all other parties represented in Parliament," the letter said.

"From the outset we maintained the status of our proposals as a draft to enable it to be discussed and considered in detail at the Parliamentary Select Committee and finally reached on the matter.

"Unfortunately because the UNP did not express its clear views on some important items, it was not possible to reach an agreement on some other items. It was not possible to prepare a completed draft (Bill) and arrive at a final decision. The draft has now been finalised incorporating the view of the People's Alliance and the Tamil Parties I shall let you have it without any delay," President Kumaratunga said.

On Friday the PA constituent parties met Tamil political party representatives to discuss a series of issues connected with the reforms.

The proposal for the president to continue to function as the executive President for another six years while also exercising powers of the Prime Minister, plans to have an all-party executive committee in the Regional Council and the appointment of the governors for the province were among the matters taken up on Friday by the constitutional committee.

The TELO opposed moves to permit President to hold the powers of the Prime Minister while the CWC and SLMC wanted the executive Presidential system to remain. However no decision was reached on the question of the executive presidency, political sources said.

A proposal by the EPDP to have an official Tamil translation of the national anthem was accepted. Plans to have an executive council in the proposed regional council were discussed in detail with the SLMC and the CWC favouring the move but the TULF, TELO and the EPDP expressing reservations.

Return to Front Page Contents