Columns

• Official responses to last Sunday’s countrywide blackout draw criticism
• Adani Group’s withdrawal from US$ I billion wind power project sends wrong signals to investors; raises questions about investor-friendliness
• Moves to set up Independent Prosecutor’s Office, following AG’s advice to release suspects in the alleged abduction of Lasantha Wickremetunga’s driver
• Govt. also sets up Central Crimes Investigation Bureau (CCIB) under SSP  Thalduwa; Shani appointed director of this special unit
• President to present NPP’s maiden Budget tomorrow;  Govt. MPs optimistic about relief measures and several benefits to the masses

By Our Political Editor

Challenges are mounting for President Anura Kumara Dissanayake and his National People’s Power (NPP) government.

Despite holding an unassailable two-thirds majority in Parliament and being in power for more than eight weeks, substantial progress on election promises and newly emerging issues remains elusive.

Against this backdrop, President Dissanayake will present his first budget tomorrow—a decisive factor akin to the proverbial last straw on a camel’s back in  post-election ‘honeymoon’ with people. This budget could either herald public approval or exacerbate the already growing unease. The President faces a delicate balance: adhering to International Monetary Fund (IMF) guidelines for fiscal relief while winning the hearts and minds of the populace. There is growing optimism among government parliamentarians that he would navigate towards providing noteworthy benefits and relief. Yet, they are not sure in what form they would come.

Election pledges, particularly the commitment to tackle large-scale bribery and corruption, remain unfulfilled due to procedural delays or other compelling reasons. But for the slow-moving, many years-old cases involving figures such as members of the Mahinda Rajapaksa family, no new investigations have become exposed, despite ongoing or concluded inquiries. On Friday, his son Yoshitha was indicted together with his grandmother Daisy Forrest on charges of money laundering in a case that is over nine years old. Elder brother Namal Rajapaksa MP has also been indicted for alleged misappropriation of Rs 70 million in the Krrish project in Colombo Fort. Investigations into other outstanding cases continue, and they include the killing of the now-defunct Sunday Leader’s editor and attorney-at-law, Lasantha Wickremetunga—a case that has remained in public focus in the past several days. There were new developments this week, too.

President Dissanayake in talks with the Dubai leader Sheikh Mohamed Rashid Al Maktoum.

In a bid to address the delays in arrests and thus regain public confidence, significant structural changes have been made within the Police. The Financial Crimes Investigation Division (FCID) has been resurrected, having previously been shut down amid allegations of large-scale corruption by an investigator. As a result, many high-profile cases did not see the light of day. Now under the leadership of acting DIG Pavithra Dayaratne, who brings valuable experience from his previous tenure, the FCID is poised to tackle financial crimes with renewed vigour. Or so the government believes. Overseeing both the FCID and the Criminal Investigation Department (CID) is Senior DIG Asanka Kuruwita, ensuring a coordinated approach to law enforcement.

Adding to these changes, a new Central Crimes Investigation Bureau (CCIB) has been established, headed by DIG Nihal Thalduwa. He was a former police spokesperson. Shani Abeysekera, who was recalled from retirement, has been appointed as the director of the CCIB. With his extensive background in criminal investigations and analysis, Abeysekera’s new position grants him greater authority to combat rising crime rates, including the worrying surge in murder cases. Although widely hailed as one who would produce quick results, tangible measures from him are not yet forthcoming. Together with his senior colleague, Ravi Seneviratne, the duo were expected to deliver results in several cases which President Dissanayake referred to in his election campaign. Seneviratne is now Secretary to the Ministry of Public Security and Parliamentary Affairs.

Despite the advancements in policing, the government faces pressing issues that continue to burden the population. Critical shortages of popular rice varieties like Nadu and red Kekulu have driven their prices sky-high, while a coconut now costs more than Rs 225. These have seen an exponential rise in other food items. The situation was exacerbated by a nationwide power blackout last Sunday, causing significant losses across all sectors of trade and commerce.

The Ceylon Electricity Board (CEB) came under fire for its inability to manage the power crisis. Energy Minister Kumara Jayakody, an engineer, attributed the blackout to a monkey. It had gotten entangled in a transformer, triggering a chain reaction that plunged the entire nation into darkness. This excuse was met with scepticism, criticism and even laughter. The next day, he changed his stance. He blamed it on the inability of the previous government to develop the power sector. A government detractor declared sarcastically that the dead primate had been more effective than the main opposition Samagi Jana Balavegaya (SJB). The animal had brought both a government and a nation to their knees. Former Power and Energy Minister Patali Champika Ranawaka dismissed the ”monkey talk” as utter nonsense. According to him, the crisis had been looming since November, and the CEB’s response only added to the public’s frustration.

Amidst these challenges, President Dissanayake embarked on a three-day visit to the United Arab Emirates (UAE) to participate in the World Government Summit and to attract Foreign Direct Investment (FDI) for Sri Lanka. He met several corporate leaders to promote investment opportunities, but his return to Colombo was marred by disappointing news. India’s Adani Green Energy Ltd. (IGE) announced its withdrawal from a US$ 1 billion Renewable Wind Farms and Transmission Lines FDI project in Mannar. The Adani Group, facing multiple charges in a New York court for alleged bribery, denied the accusations. Nevertheless, its decision to pull out is a significant setback for FDI inflows from India and other potential investors.

The combined impact of rising prices, power cuts, and the loss of a major FDI project involving over Rs 300 billion, has left the government grappling with multiple crises. As the country navigates these turbulent times, the resilience and determination of its people will be crucial in overcoming the challenges ahead. How President Dissanayake will best garner this to the ruling disposition’s benefit remains to be seen.

What is worrisome is the fact that most developments continue to take place in a vacuum. As pointed out on many previous occasions, the flow of information from the NPP government to the public is woefully inadequate. This denies the people the opportunity of clearly understanding the reasons behind issues, the government’s own position, and, more importantly, its objectives or approaches to overcome them. This is further compounded by a rising degree of amateurism. Here are some of the more important developments this week.

THE CASE OF LASANTHA WICKREMETUNGA’S DRIVER

An advisory to the Criminal Investigation Department (CID) by Attorney General Parinda Ranasinghe, recommending the discharge of three suspects in the case related to the alleged abduction of Wickremetunga’s driver, triggered a controversy. It was wrongly construed in some sections of society to mean that people involved in the murder of Wickremetunga were being released. That investigation is continuing. There are strong calls for its early conclusion and action in courts.

First, a brief background: Karunaratne Dias, a driver who worked for Lasantha Wickremetunga, had complained to the CID that he was abducted. He claimed at first that the abductors came in civilian clothes. In a further statement, after a lapse of six years since Wickrematunga’s death, he claimed that he was abducted by an unknown group of people. This is alleged to have taken place about eight months after the death. No complaint on this alleged abduction had been made until then. Four months later, he gave the statement on the abduction.

This was during a period when Prem Ananda Udalagama of the Military Intelligence Directorate had been questioned by the CID in the role of a witness for several investigations. Driver Dias, who was in and out of the CID, had provided three different statements. Five months after he identified a person from a police sketch, based on an ‘anonymous’ tip received, Udalagama was arrested in July 2016. He was produced in courts on suspicion that he resembled the face on the sketch. A month after this parade, driver Dias had gone before the magistrate and made a statement—in terms of section 127 of the Code of Criminal Procedure Act No. 15 of 1979, a provision that enables a confession before a magistrate—that he was shown several suspects by the CID. He identified the one who intimidated him as Udalagama. He was later enlarged on bail. Separately, they also arrested retired DIG Prasanna Nanayakkara and Sub Inspector Sugathapala for causing the disappearance of a notebook that was recovered from the vehicle driven by Wickramatunga.

In the wake of the controversy, President Anura Kumara Dissanayake summoned the Attorney General to ascertain details relating to the case. This was an unprecedented move. When the position was clarified by the AG, Dissanayake directed him to issue an official statement clarifying matters. This was how a two-page statement declared that he (the AG) had recommended to the CID to discharge the three suspects. By then, the Bar Association of Sri Lanka (BASL), the premier body that represents the country’s lawyers, issued a statement expressing concern regarding the President summoning the AG over a case before him. They were also critical of Media Minister Nalinda Jayatissa’s remarks that the AG’s ruling would be reviewed by the government.

There were more new developments early this week. If the AG had given a time frame of two weeks for the CID to recommend to courts the discharge of the three suspects, the CID had responded to the AG with what it said was fresh evidence. With that, the Sunday Times learnt that the CID sought an extension of the two-week deadline in the AG’s letter of discharge. This is until such time the CID received his opinion on the fresh evidence submitted. It had thus been extended by a further two weeks. A well-informed legal source said, “There is no question of the AG withdrawing his January 27 directive to the CID for a discharge of the three suspects. By virtue of the extension accorded due to the receipt of fresh evidence, the CID had more time on their hands. This was whilst the AG’s Department examined the new material.” This new position was conveyed by the CID to the Mount Lavinia Magistrate’s Court on Thursday. The case will now come up on May 30. Some reports misconstrued this to mean the AG has in fact withdrawn his recommendation for a discharge.  In the wake of this, early this week also saw two other related developments of importance.

One was a strongly worded statement by the Legal Officers Association of the Attorney General’s Department. This is what it said: “The Legal Officers Association of the Attorney General’s Department expresses its deep concern over certain recent factually incorrect and misleading statements circulating in the media relating to the advice dated 27th January issued by the Hon. Attorney General.

“The Association notes that the relevant procedures and practices in the Attorney General’s Department have been strictly complied with in the matters relating to the said advice. The relevant officers concerned had considered all the material facts and the law and had duly made their recommendation to discharge the three suspects who were the subject of the said advice. The Hon. Attorney General, after considering the same, had agreed with the recommendation and thereafter proceeded to issue the relevant advice.

“Taking decisions to forward indictments and discharge suspects, based on material available, with dispassionate disregard to the political repercussions or public approval or disapproval of such decisions, is the hallmark of an independent Attorney General’s Department.

“The Association expresses its utmost confidence in the Hon. Attorney General, his decisions and in the officers involved in the relevant decision-making process, and notes that they have done so exercising their independent professional judgement in accordance with the highest traditions of the Attorney General’s Department.

“The Legal Officer’s Association emphatically wishes to state that they would not be hesitant to stand up and defeat any attempt to remove the Hon. Attorney General from his office.”

Hard on the heels of that statement came a move from the government. Justice Minister Harshana Nanayakkara circulated a media statement dated February 10 (last Monday) announcing his ministry’s decision to set up an Independent Prosecutor’s Office. This is what the it said:

“Establishment of an Independent Prosecutor’s Office

“The Ministry of Justice and National Integration has decided to establish an Independent Prosecutor’s Office, keeping with the manifesto of the Jathika Jana Balawegaya (NPP) ‘Phosath Ratak Lassana Jeewithayak’ (Thriving Nation and a Beautiful Life).

“An Expert Committee is to be appointed as an initial step and the Committee will include the following members:

1. The Attorney General or two nominees of the Attorney General

2.             Secretary, Ministry of Justice

3.             A senior judge in the Judicial Service who has knowledge on the relevant subject.

4.             The President of the Bar Association of Sri Lanka or his nominee.

“The Committee will draw the initial plan in setting up the Independent Prosecutor’s Office.

“The Ministry of Justice and National Integration plans to obtain views of the public and the Civil Society after the concept paper is ready.”

The timing of the press release is significant in many ways. It reflects what seems to be the government’s frustration to fast-track cases over which it made in election pledges. The press release came when President Dissanayake was in Dubai. The new move will also be a time-consuming process. Firstly, the committee will have to come up with the format of the proposed prosecutor’s office. Thereafter, it would require approval by the cabinet of ministers. If the proposed body is to function as a parallel unit to the AG’s office, legal experts say, it would necessitate far-reaching constitutional amendments. Justice Minister Nanayakkara, is yet to explain why the press release was hurriedly put out and also the contours of the proposed unit.

THE NATIONAL BLACKOUT

The countrywide blackout on Sunday morning (February 9) left people throughout Sri Lanka without electricity for more than five hours, some even much longer. Even before power was restored, Energy Minister Jayakody, an engineer, was quick to declare that the cause was a monkey. It had tripped a power transformer in Panadura, plunging an entire country into darkness, he claimed. Coming under heavy criticism, he shifted blame to the previous government. An erstwhile member of the Janatha Vimukthi Peramuna (JVP), the main partner in the NPP government, Wimal Weerawansa told a news conference that “all failures” were blamed on previous governments and only “success stories” were attributed to the “achievements” of President Dissanayake. Weerawansa, leader of the National Freedom Front (NFF), made the remarks at a news conference.

“Blaming it on monkeys is an insult to one’s intelligence. As far back as November last year, we knew there were warning signs,” declared Patali Champika Ranawaka. He was a one-time Minister of Power and Energy. A monkey or a tiger, for that matter, cannot interrupt the entire country’s power network, Ranawaka, an expert in the power supply situation and an engineer, said. He pointed out that there is a systems control mechanism set up in Battaramulla since 2015, just to avoid such situations. That would have helped the CEB discern the power supply position at any given time and take remedial measures. Moreover, he asked, how did the Norochcholai power supply suddenly break down? Other private sector entrepreneurs, hard hit by the blackout, complained that the CEB was setting the stage to punish those who were generating solar power. This is through an attempted move to reduce the fee per unit paid to them. That would reduce consumer interest in solar power. The fare now stands at Rs 27. Sections in the CEB have now claimed that the load from solar power was too much to handle, particularly on Sundays. Ranawaka said the CEB can easily absorb 2500 MW more from solar power.

Ranawaka declared that “power outages can be easily prevented if the system is balanced, and electricity consumption is provided to the public appropriately twenty-four hours a day. There is another problem here as to why the Puttalam Lakvijaya Power Plant collapsed. There is no reason for it. This power plant has been running for about fourteen years now. Although there were some problems, they have been resolved. Otherwise, every time there is a power outage in the country, the Puttalam Power Plant collapses. The country’s electricity is failing. So this is a problem that has been going on for a long time now. It is not a problem of this monkey, nor a problem of this imbalance. It is a problem of the administration and management of the Puttalam Lakvijaya Power Plant, he declared.

On February 5, former Energy Minister Ranawaka pointed out that “the Ceylon Electricity Board’s generation costs were Rs 850 million. But after the weekend blackout, their generation costs have more than doubled to Rs 1,750 million. What does this show? The CEB is suffering financially due to the reduction in tariffs. He added, “Therefore, we are very clearly requesting the government to intervene and act, not just by making media statements, but by consulting the Public Utilities Commission and the Ministry. Because the temperature these days is clear to everyone. There is a good water level. There has been a good hydropower situation since January 1. We must protect that situation till next monsoon. If we do not do that and start using it, there will be a big problem in other ways.”

WOES OVER FOREIGN DIRECT
INVESTMENT (FDI)

President Dissanayake, amidst his onerous duties where he spends late nights at his office, found time off for a three-day visit to the United Arab Emirates (UAE). Besides taking part in the World Government Summit, his publicly stated mission was to canvas for increased Foreign Direct Investment (FDI) in Sri Lanka. He met several corporate leaders to brief them and to invite them. Just as he returned to Colombo on Thursday morning, there was bad news for him. India’s Adani Green Energy Ltd. (IGE) declared it was pulling out of the US$ 1 billion Renewable Wind Farms and Transmission Lines FDI project in Mannar.

That the Adani Group is facing multiple civil and criminal charges in a court in New York, United States, for alleged bribery is one thing. The group has denied the accusations. Other than that, the owner of the business conglomerate, Gautam Adani, is a close associate of Indian Prime Minister Narendra Modi. According to a letter from Pragnesh Darji, Secretary of the IGE, the company has held 14 rounds of discussions and spent five million US dollars “on predevelopment activities.” The news would come as a damper for FDI inflows from India, albeit other countries too.

Highlights of a letter from Pragnesh Darji, Company Secretary to Arjuna Herath, Chairman of the Board of Investment in Colombo, underscore the Adani group’s concern: “As you are aware, Adani Green has been under protracted discussions with CEB and various government departments since past more than two years in respect of establishing 484 MW Renewable Energy Wind Farms at Mannar and Pooneryn, Sri Lanka, along with its associated Transmission system, as also additional 220 KV and 400 KV Transmission network expansion to carry electrons to consumptive centres in the southern part of Sri Lanka.

“These projects are envisaged to collectively see investments of about USD 1 billion in Sri Lanka, based on build own operate concept. Furthermore, our Corporate Social Responsibility (CSR) activities too would have accentuated in the contiguous geographies covering healthcare, education, infrastructure development, skill development, etc., benefiting local communities for better quality of life imperatives.

“In pursuit of said proposal, Adani Green teams had several rounds of discussions with state-appointed committees and after more than 14 rounds of discussions, approval was accorded on Tariff, fixed for 20 years, for the Power Purchase Agreement. Adani Green also worked on all clearances and licences.

“Except for Mannar Environmental approval & an associated Supreme Court case, we have procured almost all clearances. Similarly, we have worked on lands for the project, as well as associated transmission system. Till date, the company has spent about USD 5 Mn on predevelopment activities.

“Our executives recently had discussions with CEB officials as also with Ministry officials at Colombo. It was learnt that another Cabinet-appointed negotiations committee (CANC) and Project Committee (PC) would be constituted to renegotiate the project proposal. This aspect was deliberated at the Board of our company, and it was decided that while the company fully respects the sovereign rights of Sri Lanka and its choices, it would respectfully withdraw from the said project.

“As we bow out, we wish to reaffirm that we would always be available for Sri Lankan Government to have us undertake any development opportunity, if it ever considers Adani Group to participate.”

Sources familiar with the BOI-Adani dialogue said that an area of contention has been the rate per unit of the electricity to be generated from the project. Whilst the Sri Lankan side has insisted on US$ 4.65 per unit, the Indian company has declared it would be only viable if it remains at US$ 5.5 per unit. Thus, a move by the government side to renegotiate the project proposal to incorporate the new rate has not been successful.

A sticking point—future FDI entrepreneurs would pore over the fact that it has taken 14 rounds of talks for the US$ 1 billion (or more than Rs 300 billion) project. The expenditure of five million US dollars in the process will no doubt come as a signal of protracted delays. Nevertheless, there were environmental groups that welcomed the move by the Indian company to pull out.

OTHER NOTEWORTHY EVENTS

=    Chief Opposition Whip Gayantha Karunatillke related the story of a campaign by the opposition in Parliament to increase the presence of its members in various committees. It now stands at 60%. Last month, President Dissanayake granted a meeting for opposition party leaders in this regard. “When we reiterated our appeal, President Dissanayake urged the Leader of the House, Bimal Ratnayake, to give heed to our request,” Karunatilleke said. However, he declared that it was not possible prompting President Dissanayake to remark that he would review the matter at a later stage. “We also raised this matter on the floor of the House. Bimal Ratnayake, then declared he would “look into our request,” Karunatilleke said. The Speaker of Parliament, he added, had also assured us that the matter would be taken up at a meeting of the House Business committee.

=    The annexe accommodating security personnel of twice President Mahinda Rajapaksa at Wijerama Mawatha is now without water. The supply has been disconnected by the National Water Supply and Drainage Board for non-payment of a water bill of Rs 300,000. A spokesperson for the Rajapaksa family said, “All this time, the water bills for the building, part of the former President’s residency, were paid by the Presidential Secretariat. This is another step by the government to harass Mahinda Rajapaksa and force him out of the house.”

=    The conduct of local council elections, expected earlier to be around April, is now not likely. There will be a delay since the government would have to make constitutional amendments to pave the way. Speaker Jagath Wickremeratne announced in Parliament last Friday the Supreme Court determination on the proposed Local Authorities Elections (Special Provisions) Bill. By a majority ruling, the SC has said that two clauses of the Bill were inconsistent with the constitution and can be passed only with the special majority required.

In his address to the World Government Summit in Dubai last week, President Dissanayake noted that “enhancing governance accountability and efficiency is essential for the future world. Citizens must be encouraged to transition from individual efforts to collective initiatives. The structure of state institutions and bureaucratic systems must prioritise accountability and responsibility, as these are crucial for the future of governance.” It is no secret that he works late hours, interrupting his schedule frequently to look at housekeeping problems of his government. That naturally involves continued micromanagement. It’s high time that his cabinet of ministers put their shoulders to the wheel