Snippets...

Talk about short memories!

Sri Lanka is currently exploring the possibility of seeking a suitable associational linkage with ASEAN as a sectorial or dialogue partner, said Speaker Anura Bandaranaike at the conference of the Association of Asian Parliaments for Peace in Phnom Penh this week.

When Mr. Bandaranaike was the Leader of the Opposition in the 1977-88 Parliament, he was critical of President Ranasinghe Premadasa during a debate, when the latter was the Prime Minister saying that Mr. Premadasa should know his geography before planning to get Sri Lanka into ASEAN. Times have changed.

Mr. Premadasa had suggested that Sri Lanka should make an effort to get ASEAN membership. It was then that Mr. Bandaranaike said that Sri Lanka was not in that region. The move now is for a suitable associational linkage with ASEAN.

Geography, what's that?

The South Asian Federation of Stock Exchanges had a two day conference this week in Colombo . Mauritius which had all these years been an observer, was accepted as a new entrant to the federation.

South Asia now seems to be quietly but surely expanding its tentacles to rope in other nations as well. Geography is now a thing of the past. One not so smart invitee to the conference asked where is Mauritius.

What a thing to do!

There's trouble in paradise for the Ruhunuputra with a thundering noise who did a timely poll vaulting from the UNP to the government with betel and all. But this deputy minister suffered wrathful attacks from his own partymen for holding a recruitment drive in Badulla last Tuesday- with the distasteful inclusion of a musical extravaganza.

Angry villagers claimed that it was well and good to look for 500 young men to join the armed forces but not a musical show in the 'meda maluwa' of a temple which is a sacred place of worship; and that too from a man who boasts about his cultural heritage and Buddhist values!

Now PA goes starry

There is a new school of thought among the younger PA rankers- who would want to be coached by someone other than who taught the UNPers about public speaking.

To do one better they have decided to get the services of another celebrated actress, of course one with the right political connections and known for her fiery and feminist roles on the silver screen.

Earlier government rankers were perturbed over the introduction of 'starry consultants' to teach the young legislators on how to deliver speeches with aplomb. The original thought was to invite the same lady Anoja Weerasinghe for a session which had been a success with the UNP youngsters.

At least he fulfils his promises!

We'll give Rs. 100 per US dollar, he said it in November 2000..

The former Sporting Minister whilst addressing an election rally in his electorate during the last general election, told the rally most of whom were rural women.

How much did the UNP give you for a US dollar-Rs. 50 to 60. Today we are giving you Rs. 80 per dollar. Very soon we will give you Rs. 100. per dollar (applause from the crowd).

How prophetic he was and the government had done so today. One man who keeps his election pledges.

Floating in a sea of confusion

By Faraza Farook

Vital sectors in the country have turned chaotic as a result of the rupee being floated this week nearly reaching the 100 mark, with uncertainty looming in the business community.

While banks welcomed the move, businessmen and importers were in shock trying to meet their colossal losses. Certain trades such as gold, building materials etc. have brought their imports to a halt unable to cope with the financial crisis.

Consumer goods including onions, potatoes, chillies, dhal, milk powder and dry rations went up last week further increasing the cost of living burdening an already battered consumer.

The Sunday Times learns that the Treasury has ordered the Co-operative Wholesale Establishment (CWE) to stop all imports immediately in view of the dollar float. But, CWE Additional General Manager Wimal Jayasekera said no such directives have been given and that prices will not go up immediately because the CWE has covered the requirement till February.

The free float allowing market forces to decide on the buying and selling rate of the dollar has had mixed reactions from the community. However, it has had a dramatic impact on the economy with the business sector still trying to come to terms with the losses incurred.

Former Chairman of the Ceylon Chamber of Commerce Mano Selvanadan explained the current confusion among the business sector as 'transitional pains' that we have to go through. "We have been clamouring for open economy and this is the right step in getting ready for global competition," he said.

Yet, Mr. Selvanadan stressed that the Government will have to look into ways of stabilising the prices of essential goods.

On the other hand S.T.S. Arulanandan, President of the Hardware Merchants Association said they have reached a deadlock having to cover massive losses during the past few months due to the devaluation of the rupee .

"Importers are floating in the sea with no way out. We have no sales and the business cycle has come to a standstill," Mr. Arulanandan said adding, "we have already sold the imported products at a lower rate based on the dollar value at that time. But the amount payable, may be in a few months is going to be very high and invariably we will suffer huge losses".

With 70% of the Association's membership being importers, Mr. Arulanandan said, people have stopped buying goods due to the increased prices.

Money changers too were affected by the rupee float with customers refusing to change money due to the fluctuating prices. "We're losing business. We can't fix a rate because the value fluctuates and customers don't change hoping that it will go up," an official of Prasanna Money Changer said.

He said the collection was less than usual during the past few weeks and people refuse to change because the fluctuating margin was big.

In an interesting turn of events, tour operators are in a quandary unable to convince Hajj pilgrims to agree to increased rates to keep up with the increased expenditure.

Pilgrims who initially consented to a fixed rate, are now withdrawing with tour operators increasing prices.

A package fixed at Rs. 80,000 - Rs. 100,000 excluding the ticket cost, has now been increased to Rs. 120,000 - Rs. 125,000, Secretary of the Hajj and Umrah Travel Agents Association Faizal Cader said.

As a result, 53 tour operators approved by the Muslim Cultural Department to take Hajj pilgrims are now facing problems trying to find pilgrims to form the group.

Tour operators decide the number they will be accompanying for pilgrimage and make advance bookings for accommodation in Mecca. Then, they offer packages and begin registering the required number. But now, with the pilgrims withdrawing, and tour operators trying to find others to fill the required number, they will have to incur a loss and pay for the booked accommodation, Mr. Cader explained.

Meanwhile the President summoned an emergency meeting with the parliamentary group at Temple Trees last Friday to discuss the escalating cost of living and on the sliding rupee. The presentation of the budget is also to be discussed in the coming week.

Learning without books

By Nilika de Silva

With the first month of the school year ending soon, many students are yet to receive the text books distributed by the Ministry of Education for various subjects.

The lack of Teacher Guides as well as students' work books was leaving them helpless, many teachers told The Sunday Times.

Meanwhile, a survey conducted by the Educational Professionals Association in more than 100 schools, including among them several National Schools, showed that a serious problem prevailed in the distribution of text books.

Up to the end of the third week of January, Grade 10 students preparing for the Ordinary Level examination had not received eight of the necessary text books.

Sinhalese Literature, Mathematics I, Mathematics II, Buddhism, Social Studies, Science, Accounts and Commerce and Cartography were being taught minus text books in many schools.

In Grade 3, the level at which the new education reforms have come in this year, the Teachers Guide for English Language had not been made available to teachers, while English text books were not made available to students and English work books were insufficiently distributed.

Although teachers of other subjects have been trained on how to teach their subjects, English teachers have not received any instructions on how to set about teaching the new syllabus. "These teachers are finding themselves in a helpless situation," a primary teacher, Ms. J. Perera said.

There has been a massive deterioration in the sphere of education," charged Education Professionals Association's secretary Wasantha Dharm-asiri.

"Although there are very educated and highly qualified teachers in Sri Lanka, due to disorganised administration, there is a massive waste in human resources," he lamented.

PARLIAMENT

Raising furious sounds over falling rupee

By Dilrukshi Handunnetti, Our Lobby Correspondent

Mark Twain knew nothing about the Sri Lankan legislature when he wrote his famous "Huckleberry Finn" and made the suave comment about 'getting all the fools in town on our side" and queried whether there would not be a big enough majority in any town. If Twain had reasons for his disgust, we find our reason in the hallowed portals by the Diyawanna.

Hence, it wasn't stupefying when the special debate on the state of the economy became an empty exercise amidst high government absenteeism and defiant refusals to explain itself. The day was opportune- with the decision to float the Rupee and the economy on a permanent nosedive. Though much heat generation was anticipated, the UNP as is customary, failed to make headway despite the PA's foibles, rendering the debate a mere exercise of vocal chords.

Dr. Karunasena Kodituwakku who opened the debate treaded a fresh path to succinctly analyze the economic slide, in capsule form. Unhurriedly, he explained how Japan and Sri Lanka remained the two strongest Asian economies. While Japan relied on foreign aid, Sri Lanka managed ambitious projects like Gal Oya on its own steam.

"The SLFP failed to draw inspiration from our foundation and is known for economic mismanagement. After 1956, UNP gave oxygen to the economy. Again in 1965, it resuscitated a bruised and maimed economy. The Aid Consortium was setup and the economy was put back on track. Then came the 1970 populist regime and President Jayewardene had a Herculean task to salvage the economy, which the PA did anew in 1994 " accused Kodituwakku.

Burdened with the unenviable task of heading the defence team was MEP's Bandula Gunawardane, known for his zealous attacks on the UNP economic thrust. He appeared to be making himself comfortable among government ranks by throwing lifelines to the PA with his 'economic' defences, arguing that no country could survive in isolation and world trends had a bearing on any economy.

In a fiery defence, he accused the UNP of destroying the economy beyond redemption with its open market theories, yet apologetically conceded that people were seriously burdened, and fortified his arguments with the hackneyed excuse of inexorably heavy defence expenditure.

UNP's cub legislator Sagala Ratnayake made a picture of first time blues as he followed Mr. Gunawardene to make his maiden speech. His voice cracked as he spoke passionately about young aspirations stemming of economic ills. He described the government's Samurdhi movement as an instrument seeking to politically control the youth and keep them in bondage by dangling their benefits as carrots. They have long since lost hope about finding suitable employment and are worried only about survival.

" They didn't want doles or Samurdhi, but employment befitting their education. It was tragic that politicians tampered with their rights without making them true participants and the inheritors of a nation building plan. Here, the minister's 'chit' decided things for them," he charged.

Following suit, Minister Batty Weerakoon started on a salutary note. While conceding the abysmal economic degradation the country was facing he said the need of the hour was to find solutions. The government spends US $ 200 million on defence alone while an additional US $ 400 million went for oil, he said, painting a picture of increasing indebtedness.

Finding fault with lending agencies for not understanding third world realities, he called for greater understanding of Asian problems. Swiftly changing gear, he said Asia had no super rich class, only a few individuals like the incumbent UNP general secretary Senerath Kapukotuwa who has been given a job to run the party like a company!

On a demolition course, the Minister thundered that it was incredible that a party with such a history chose a company director to call the shots. "Raja Mahendran's 'little boy was now busy sending MPs for medical check ups, to get their brains tested and for voice training. What's the matter with the UNP?" he sniped, which brought on a chorus of indignation from loyal UNPers who jumped to their feet in defence of their little known party secretary.

But it was JVP's Sunil Handunnetti who cracked his JVP whip, liberally lacing his political wit with economic understanding as he spoke about the free floating rupee.

"The Treasury Secretary must be having a conscience, or else why offer to resign when the rupee slides further? But having to face disaster, it was no use making individual sacrifices. Debt increased with depreciation, and pushed us to borrow more to remain afloat. The PA just like the UNP, was now sucking lifeblood out of the poor. You have bartered your souls and our liberties. You are neck-deep in debt and unable to even utter a whimper of a protest when donors made uncivilized demands" he thundered.

The fiery youngster accused 'sharks' of defaulting payment and still continuing to raise massive loans. " The Yasodha Group owes Rs.3,500 m and the Dasa Group another RS. 800 m to the Bank of Ceylon. Whose money have they taken? What special qualification do Mano Tittawella's friends have to take the poor man's money out of Bank of Ceylon? You want others to tighten belts, how about setting an example? he breathed, in a House suddenly gone quiet.

Wednesday's session began with mirth, as is generally the form when UNP chief whip W.J.M. Lokubandara speaks. He reminded the House that this debate was won by way of default. The government in its eagerness to quell the opposition voice, hurled headphones and tumblers at the UNP and minister Anuruddha Ratwatte marched out in a blaze of fury refusing to answer opposition queries, and carried a series of legislation sans sanction- hence the extraction of this debate.

"We also have tumblers and headphones on this side, but they don't take wing because we are a disciplined party" he remarked tongue-in cheek.

" You claim we are so developed that we don't require foreign aid. The truth is that donors have understood the PA administration and feel it deserved none." He then began to relate the modern version of Guttila-Musila Jataka story with great aplomb. "When Guttila was challenged by his student Musila to test his skills in public, the aged musician received divine blessings. At the concert, he broke sitar strings and the quality of music reached such heights that fairies descended on earth and began an exotic dance. Musila did the same and the audience turned against him for his inferior performance. Similarly, all you needed to do was to maintain what we achieved, but by being smarter you have plunged the entire country into depths of despair," he caustically observed.

Dr. Sarath Amunugama somehow opted for moderation- and conceded the economy was sluggish but called for collective action to avert a further crisis. The government faced a two-pronged war, economic and terrorist and the balancing act was difficult. Hence the relaxed rules of literature could not be used for economics. That would prove disastrous he said.

"The UNP must act responsibly. It is they who advocated a more realistic rupee, and that's what we should do. It is what the UNP pledged in its presidential manifesto too" he noted.

The minister said the debate could go on forever, but the rupee needed a more realistic value. It was the consistent policy of all governments to support the export sector that demanded a realistic valuation. Some never get the grammar of politics, and are incapable of grasping the grammar of economics as a result. But this is no time to split hairs," the minister said. It was UNP's Milinda Moragoda who gave the House some positive thoughts studded with regional examples of economic management and the example of sacrifice.

In his thought provoking delivery, the UNP finance whiz observed that people would make sacrifices only if examples were set from the top. "Mahathir Mohomed had to rebuild Malaysia and selected the simple slogan- "Malaysia Bole`", meaning Malaysia Can! He froze salaries, removed perks and drastically reduced ministers and then appealed to his people to do the same and they responded. They proved that achieving success was largely a state of mind.

"Take Singapore. It flourished swiftly because they knew that speed was victory, and they raced against all nations. As we cannot do that, we should prudently analyze our choices and take immediate action. We haven't averted the South Asian economic crisis as claimed, but the man who falls from the mat to the bare floor does not fall from a great height," he said.

Calling for a good economic team and a full time finance minister who was not the chief executive, Mr. Moragoda noted that nothing was impossible. People would undergo short economic pain if there was light at the end of the tunnel, adding that a good government must ensure that there indeed was that light.

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