Columns

• TNA seeks provincial elections, full implementation of Provincial Council Act and measures in the CBK package
• Justice Minister proposes parliamentary select committee to work out new constitution; talks with minority parties soon
• SLPP leader Mahinda Rajapaksa takes ‘let’s see’ attitude to reconciliation moves; Basil pushes for local council polls
• US imposes travel ban on Lt. Col. Bulathwatte over Keith Noyahr abduction and torture

By Our Political Editor

The broader contours formed the subject of a tripartite discussion on Thursday at the President’s temporary residence at Paget Road. Talking to President Wickremesinghe were Prime Minister Dinesh Gunawardena and Tamil National Alliance (TNA) frontliner Abraham Sumanthiran. Since the conduct of the talks was officially announced, Sumanthiran has been playing a pivotal role in the process. On Friday, he briefed his leader Rajavarothayam Sampanthan, who was unable to attend due to health reasons. However, he will take part in the party leaders’ talks.

Sumanthiran’s participation makes clear that he has become the main source through which Tamil demands are being articulated. On Thursday, he is learnt to have made a string of suggestions. The main among them is the early conduct of Provincial Council elections, a position over which President Wickremesinghe earlier expressed reluctance due to other reasons. In addition, he has also said all powers now legally vested in the Provincial Councils should be enforced. In addition, he has also made a string of suggestions from a previous package that was made public when Chandrika Bandaranaike Kumaratunga was the President. However, no attribution has been made to the package except from a set of proposals contained in them. Last week, he told the Sunday Times that two major demands TNA would place were the need for self determination and a federal form of governance.

The advice he has now offered to President Wickremesinghe to conduct Provincial Council elections and implement all provisions of the Provincial Council Act is very much akin to the position taken by the Government of India. One of the latest occasions on which such policy was reiterated was at the 51st sessions of the UN Human Rights Council (UNHRC) in September.

Mani Pandey, India’s Permanent Representative to the UN in Geneva, told the UNHRC, “The Indian delegation notes with concern the lack of measurable progress by the Government of Sri Lanka on its commitments of a political solution to the ethnic issue – through the full implementation of the 13th Amendment of the Constitution, delegation of powers to Provincial Councils and holding of Provincial Council elections at the earliest. India’s consistent view on peace and reconciliation in Sri Lanka has been for a political settlement within the framework of a united Sri Lanka, ensuring justice, peace, equality and dignity for the Tamils of Sri Lanka…”

If the roadmap itself would be difficult to traverse politically, a package involving largely the parameters sought by Sumanthiran would have to be through unchartered territory. That, no doubt, would not be an easy task and will involve lengthy consultations. The southern political parties’ views would have to be heard and studied. The views of the Maha Sangha, another powerful segment, must be obtained. So do other smaller parties which represent the minority interests. All this raises the all-important question – can a package to bring about ethnic reconciliation be rushed through by February 4 next year which marks the 75th anniversary of Sri Lanka’s independence?

It is President Wickremesinghe who will outline a roadmap for the party leaders’ talks when they meet on Tuesday. It is likely that participants may form committees to study specific aspects and report back to the participants for further follow-up action.

A litmus test was the reaction of Sri Lanka Podujana Peramuna (SLPP) leader Mahinda Rajapaksa after a staffer read out to him Tamil media accounts. This is noteworthy. On learning of Sumanthiran’s proposals, after a deep breath, he exclaimed, “our vote will be required to pass it. Let us see.” He is making clear the SLPP is not opposed to ethnic reconciliation but as a large political party in the south, it would have to be wary about some of the contents of the package. That is more than a forewarning. Similar positions are likely from even the fractured Sri Lanka Freedom Party (SLFP). Just two weeks earlier, after sacking Mahinda Amaraweera from the post of the General Secretary of the United People’s Freedom Alliance (UPFA), the party foisted Thilanga Sumathipala in his place. The predominant partner in the now ineffective UPFA is the Freedom Party. Its leader and former President, Maithripala Sirisena told the Sunday Times, “Our partner members have endorsed the decision to remove Mr Amaraweera. All others took part in the UPFA meeting and we will move ahead.” However, Ameraweera, now a cabinet minister in the government said he would go to courts to challenge the move.

He declared, “I did not receive any letter saying that I was removed from the position of the General Secretary of UPFA. Therefore, I am still the General Secretary. The first instance that I am notified that I have been removed I will file court action against former President, Maithripala Sirisena and the party. Still there is time as they have not yet had the party general meeting, or removed me.”

New constitution

Intertwined with the formulation of an ethnic reconciliation package is the government’s move to introduce a new constitution. For this purpose, Constitutional Affairs Minister Wijeyadasa Rajapakshe wants to introduce a resolution calling for the appointment of a Parliamentary Select Committee. He will have a meeting with parliamentarians representing the Northern Province and Muslim political parties today. “We will discuss the overall constitution. In that discussion matters such as devolution of powers will also be discussed. The Northern MP’s main agenda would be to discuss about the power devolution. In our case we are going to cover all aspects such as good governance and creating responsible and independent public institutions,” he said.

Rajapaksha said yesterday, “Our plan is to bring the new constitution by next year, but the matter is at the proposal level. It is too premature to give a timeframe on when the new constitution could be introduced. This will be formulated by a parliamentary select committee that I will propose. It is Parliament that is empowered to formulate a new constitution. The committee will obtain the ideas of the public as well as expert opinion.” Here again, a question that begs an answer is whether the formulation of an ethnic reconciliation package is possible before a new draft Constitution is formulated.

That the Government is giving high priority to the party leader’s talks on ethnic reconciliation is evident by the setting up of a special secretariat for the purpose at the Presidential Secretariat premises. A branch office has also been established in Vavuniya to draw in public representations. Now that the government has convincingly passed the Appropriation Bill on Thursday after a 13-day long debate, it will step up the focus on the ethnic reconciliation and on the road map for an ethnic reconciliation package.

One hundred and twenty three members voted in favour of the third reading while 80 members opposed. Two members — C.V. Wigneswaran (Tamil Peoples National Alliance) and SJB MP Velu Kumar abstained.  Nineteen members including the Ilankai Tamil Arasu Katchi (ITAK-TNA) Parliamentarians were not present. After the budget was presented by President Wickremesinghe on November 14, the second reading of the Appropriation Bill commenced on the following day culminating with a vote on November 22.   The reading was passed with 121 votes in favour and 84 against while one member abstained.

At Thursday’s voting Dr Sudharshani Fernandopulle who was absent at the previous voting and Minister Bandula Gunawardena who was not in Parliament as he was not well this time voted in favour extending the lead from 121 to 123. In contrast to previous budgets, this time President Wickremesinghe actively took part in the sessions on most days during the budget debate in the capacity of the Finance Minister. Usually, after the Speaker thanks all officials and members for taking part in the debate it would be signalling the long vacation. But this time Parliamentary sessions will end only next Tuesday.

The second reading debate of the Value Added Tax (Amendment) and Inland Revenue (Amendment) Bills were taken up on Friday and passed while Tuesday has been reserved for Questions for Oral Answers. The next sittings have been fixed for January 17, 2023. Parliament on Friday debated the Value Added Tax (Amendment) Bill and the Inland Revenue (Amendment) Bill.

The tax cuts of 2019 and 2020 where the Value Added Tax (VAT) rate was reduced from 15% to 8% resulted in massive losses in state revenue, acknowledged State Finance Minister Ranjith Siyambalapitiya. The move to reduce direct taxes saw the number of tax files at the Department of Inland Revenue plunging from more than 1.55 million in 2019 to just over 580,000 in 2020, he pointed out. This reduced even further in 2021 to around 490,000. “The number of tax files reduced by 73% between 2019 and 2021. The number of registered taxpayers also reduced by 73%, from more than 1.7 million in 2019 to about 507,000 in 2021.

Tax revenue as a percentage of Gross Domestic Product (GDP) fell from 11% in 2018 to 7.3% in 2021. Meanwhile, government expenses were 204% more than its revenue in 2021.  “The seriousness of the crisis we face should be obvious to all. We all have to accept that we simply cannot continue without increasing government revenue. This is an extremely urgent and necessary measure,”  Siyambalapitiya remarked.

Samagi Jana Balawegaya (SJB) MP Harsha De Silva said he did not accept the government’s claims that it could not reduce expenses and it must collect more revenue through taxes. He referred to media reports that about 7-10 new Cabinet Ministers are due to be sworn in soon. A cabinet minister does not simply take his own salary. They have a personal staff who must be paid, offices that must be allocated to them, vehicles and other perks that will have to be borne by the taxpayer, he pointed out. “The government must at least give the people some signal that those at the top too are prepared to tighten their belts.”

Cabal of officials giving
wrong advice

It was unfair to blame politicians alone for the economic crisis given that there are senior officials who often mislead them and shape policies to serve their own interests, Transport Minister Bandula Gunawardena claimed. He recounted that it was while he was the trade minister that the tax on imported sugar was reduced to 25 cents. “I was the Trade Minister, but I only learned of the tax reduction from a news bulletin I saw while at the Abhyaramaya Temple,” he revealed. Minister Gunawardena claimed he opposed the decision and clashed repeatedly with then President Gotabaya Rajapaksa at Cabinet meetings over the matter. “But his advisors told him to hold firm. You think that a Cabinet can do what it wants, but it is not so. There is a cabal of officials who frame policies to suit their own ends. You need to understand this,” he told MPs.

The VAT is an indirect tax that would affect people in all segments of society, National People’s Power (NPP) MP Vijitha Herath pointed out, warning that it would also lead to a significant increase in the prices of goods and services. “These taxes will be fatal for our small and medium entrepreneurs who are already suffering heavily. They form the engine of our economy.”

He warned that the country’s economy could contract completely due to the taxes. “The government may be able to go to the IMF and say that it achieved the IMF’s target of increasing government revenue, but it will come at the expense of our economy, resulting in the crash of industries and widespread job losses,” the MP noted.”

An area where differences of opinion seem to be developing in the Government is over the conduct of local council elections. A ruling SLPP faction led by its ideologue and strategist Basil Rajapaksa, contrary to earlier belief, wants the conduct of these polls. Rajapaksa who made this clear during a news conference this week is behind preparations for a campaign that would include the use of print and electronic media. President Ranil Wickremesinghe, however, is not in favour of the conduct of these polls until a newer delimitation of wards is recommended by a Commission headed by the Election Commission’s former Chairman Mahinda Deshapriya. The commission has already undertaken the task.

The composition of local councillors, said to be more than 8,000, has been the subject of controversy. Holding such positions has enabled the councillors to approve contracts up to a specified cash limit allegedly spawning widespread corruption besides other issues. President Wickremesinghe wants the number to be halved.

Election Commission Chairman Nimal G. Punchihewa, has declared that the EC would make a formal announcement later this month on when the local polls would be conducted. Speculation is rife that it would be in March next year. Why is the SLPP keen to go for the polls knowing well it may face a defeat at the local (or even Provincial Council) polls? Strategist Rajapaksa has explained to his confidants that they will be able to demonstrate to the people that they are a formidable force, stronger than the Janatha Vimukthi Peramuna (JVP) led National People’s Power. This, according to him, is in the unlikely event of a defeat and will demonstrate they were a stronger force than the JVP.

US concerns

There were also matters of interest in the international front. The Attorney General’s Department is now preparing a set of Standard Operational Procedures (SOPs) to ensure military vessels visiting Sri Lankan ports is restricted. This is the direct outcome of the controversy over the visit of the Chinese research vessel Yuang Wang 5 to the Hambantota Port in August. The news was conveyed by Foreign Minister Ali Sabry, when a query was raised by the US Secretary of State, Anthony Blinken. It came during Sabry’s visit to Washington DC weeks earlier. Though the issue did not reflect in statements, there was considerable interest shown in the matter, according to diplomatic sources. Another issue on which the US has been assured is the replacement of the Prevention of Terrorism Act (PTA).

In a further message, the State Department spokesperson Ned Price said, “Today (December 10), the United States is taking dozens of actions to promote accountability for corruption and human rights abuses around the world.” In a related news release, dealing with Sri Lanka, the US said, “Prabath Bulathwatte, former head of a clandestine Sri Lankan Army platoon known as the ‘Tripoli Platoon.”

“Pursuant to Section 7031 (the Department of State) is designating Bulathwatte for his involvement in a gross violation of human rights, namely torture and/or cruel, inhuman, or degrading treatment or punishment of Sri Lankan journalist Keith Noyahr, in May 2008.”

The Sunday Times learns that Major Bulathwatte is a member of the Army’s Directorate of Military Intelligence. The US order will mean he will be banned from visiting the US and will be liable for arrest and prosecution. Former President Gotabaya Rajapaksa has since promoted him to the rank of a Lieutenant Colonel.

Noyahr was associate Editor of the now defunct Nation newspaper. He was abducted by a gang in a white van in May 2008 and allegedly tortured. He was later released. Weeks thereafter he fled to Australia.

A more significant development this week was an offer by President Wickremesinghe to appoint a Parliamentary Select Committee to conduct a probe to identify those responsible for ruining the country’s economy. He made it conditional upon the MPs wanting such a probe. Even if sections of parliamentarians disliked the idea, there is little doubt that the people at large would welcome such a move. Of course, such a probe would have to be clearly independent, and the terms of reference should grant powers to the committee not only to identify the culprits but also spell out the action proposed. It is only deterrent punishment that would come as a lesson for those involved and for those who have gone scot free so far.