15th, December 1996

By Christopher Kamalendran

A special police team investigating a complaint of sexual assault on a domestic aide has recorded the statement of the judge, a senior police officer said yesterday.

Chief Inspector Warakapola Police Station M. A. D. Woodward who is heading the investigations told 'The Sunday Times' that they had already recorded statements from six persons including the judge's wife. The last statement was due to be recorded yesterday.

He said they hope to complete the investigations this week and submit the file to the Attorney Generals Department. The judge has been interdicted by the Judicial Services Commission (JSC). The probe was initiated after the domestic aide and her mistress lodged a complaint at the Slave Island police station.

"The Sunday Times" probe recaptures Kumar's last moments on golf course

By Christopher Kamalendran

Leaving behind a shattered personal life here former cricket star and millionaire businessman S. S. Kumar was all set and ready for a re-union with his wife and daughters in Australia. The Air tickets had been confirmed and he was due to take wing last Tuesday but fate decreed otherwise. He was gunned down over the weekend.

Kumar's close friends and relatives believe the murder could have been prevented if the police had acted on information given by Kumar himself weeks before the golf course tragedy that shocked the sports and business world.

Kumar, who usually begins his day with a game of golf last Saturday drove to the Golf-links in Borella in his Toyota car and began playing. He had played for nearly four hours when two youths with full faced helmets scaled over a wall. Two other golfers were in the vicinity. Within seconds one of the killers pulled out a revolver but the other shouted "moo nevai, Moo nevai" (not this fellow, not this fellow). The two other golfers were ordered to leave the place. The two, fearing for their lives, ran away leaving Kumar alone. The next they heard was a couple of gunshots, according to eye-witness reports collected by a "Sunday Times" investigation. A ground staffer, who heard the gunshots, rushed to the scene only to see Kumar in a pool of blood. Two other workers noticed the assassin and the accomplice scaling the wall and escaping.

The Sunday Times also probed the backdrop to this sensational golf course murder.

In 1990 Kumar and his wife Lalithambal had migrated to Australia with one of their daughters to join the other daughter who had gone three years ahead. But after a month Kumar returned to Sri Lanka to look after his business interests.

On his return Kumar had a relationship with Shirani Wijeratne Rambukwella and illegally married her without obtaining a divorce from his legal wife.

Police investigators on the trail of the suspected killers were not without clues. Previously he had complained that his life was under threat and a police officer Palitha Siriwardena, whom his second wife, Shirani was associated with, was allegedly responsible for the threats.

According to Lalithambal, Kumar had regularly been in touch with them in Australia and often complained of death threats.

"He wanted to get out of Sri Lanka. He complained to me that he was thrown out of his house at Beddagana and was forced to live with his parents. He feared they were planning to poison him', Lalithambal who returned from Australia for the funeral of Kumar told "The Sunday Times":

"I advised him to leave whatever property, assets and other valuables and come to Australia to have a peaceful life with the family. He agreed. All arrangements were made for our reunion. But the plan ended with a couple of gunshots on the green".

Police investigating the murder have arrested Shirani and policeman Siriwardene who is in charge of the Welikada Police station, which is in the vicinity of the murder scene. He is also a top ruggerite.

Soon after the shooting Shirani had reportedly called over at the golf links to collect the keys of Kumar's car, but officials and ground staff turned her away. For the second time she returned with a group of police officers to take possession of the car, but was turned away again, Lalithambal quoted ground staff as saying. Lalithambal said she believed the motive for the killing was money.

'The Sunday Times' learns that the Criminal Investigations Department (CID) took over the probe last Monday after representations were made by colleagues and friends including diplomats who had played golf with Kumar for several years.

The threats to Kumar's life apparently had loomed for several years according to his domestic aides who have made statements to the police. They claimed the threats were from the 'madam' of the house.

He received death threats over his cellular phone frequently. Ultimately the number was changed, but the culprits continued to threaten him over the phone. In September Kumar was pulled out of a his Beddagana house by a gang who assaulted him and warned him not to return. Since then he had shifted to his parents' home at Wellawatte and made up his mind to leave the country.

The CID which made a breakthrough within days has arrested Shirani Rambukwella and Police Inspector Palitha Siriwardena in connection with the murder.

CID Deputy Director B. P. Wickramasinghe told "The Sunday Times" we have now identified the killers. We have confirmation that some army deserters are also involved.

He said Airport authorities and other agencies had been alerted to prevent other suspects from escaping.

An invigilator at a G. C. E. (O/L) examination center in Battaramulla has been interdicted for giving the wrong question paper to the students, last Wednesday, a spokesman for the Examinations Department said.

The invigilator at the Sri Vibhuthi Vidyalaya, Battaramulla, had distributed the language paper in the morning when it was due to be given in the afternoon.

As a result, the students who reported to the center were not allowed to leave the premises.

Two commissioners have been appointed to inquire into the matter.

Governor A. S. Jayewardena in an outspoken year end interview with The Sunday Times said that Sri Lanka must gradually get out of aid clubs and go direct to world capital markets to bring foreign investments here.

By Roshan Peiris

Q: Isn't the economy in shambles?

A: Who says so? The economy on the contrary is growing at four percent.

Q: But to the citizens in general grappling with the high cost of living, it seems things are in shambles. Can't something be done fast, at least temporarily, for the festive season?

A: I admit the CoL is going up. But there is a simple explanation. Because of the drought, agricultural production went down, there were shortages and prices started going up.

This talk about the economy being in shambles is politically motivated. Inflation is running at 15 to 16 percent which is high. But let us look at it logically instead of being subjective.

As I mentioned there is the agricultural problem. Then, though it was a difficult decision to make, the President courageously withdrew the subsidy on flour. We just could not afford it. All this has contributed to the high COL.

I must point out that always for the season prices do go up. But the Government has not remained idle. We have appointed a committee to control the seasonal rise in prices and we expect the private sector to co-operate. The CWE has been importing more food stuffs and duties on some food stuffs have been waived temporarily.

We must remember that military expenditure is also pushing prices up. We hope to keep the CoL at moderate levels next year.

Q: You were at the recent Paris aid talks. What happened there?

A: The talks were profitable. They were pleased that the government is bringing under control the ethnic war. There were ready pledges of assistance. The World Bank, IMF and donors were complimentary of Sri Lanka. The country's determined effort to settle the ethnic problem has really gone down well.

I am glad to say they will all have an extraordinary session to support Sri Lanka in respect of construction and investments.

What our critics seem to forget is that the world does not owe us a living when we have indulged in the folly of an ethnic war. It has all been inflicted through our own folly. But they are all promising to help us with a rare generosity.

These donors have faith in the toughness of the President who they have found does not cringe to take unpopular decisions when she has to. They did not anticipate that she will withdraw the subsidy on flour or that she would follow the policy of privatization of public enterprises. She has certainly made an impression. It is I repeat not imperative for donors to support us. There are countries in the third world which are more in need of support but donors have opted to help us. They have found that the President is a tough economic manager.

Here I must say that we will have to gradually get out of the aid clubs, graduate from there and go to the world capital markets to encourage direct foreign investment.

Q: Assuming the war continues at its present levels, how can the government reduce escalating public spending, control the budget deficit and do all this without sacrificing capital spending?

A: In the next year, there will be some reduction in military expenditure. Everybody is tired of the war and hopes for an early settlement. We have bought a fair amount of military hardware and so we don't have to buy much next year. If military expenditure goes up, the government will get the money by increasing national security levy. Capital expenditure will be protected and also maintenance expenditure. On current expenditure, the government is trying to save through public service reforms, by limiting overtime, by giving 75 percent of salary as pension and not ninety percent.

Public servants will be paid better salaries so that they won't have to find ways of working overtime. This will help in bridging the budget deficit.

There will most certainly not be a sacrifice of capital spending. We have to use foreign aid for capital spending.

There is BOT (Build Operate and Transfer). Take the French Companies which have offered to help build up our water supply. We don't have to impose it on the budget. It can be done on BOT basis. Then people too are not taxed.

Q: If the war does continue at present levels what further can be done to restore business confidence in the economy and also attract foreign investments?

A: Business confidence and foreign investments will be there since the government is adopting sensible economic policies.

The budget deficit has to be reduced. That is the first test. Next, we have to see whether too much money is circulating in the economy. Is it rising too fast? Then business and foreign investment can think the economy is weak. With high inflation the value of the rupee decreases. This has to be stabilized.

Take Indonesia and the Philippines they have managed to control their inflation and so foreign investors are going there.

Q: Will the Central Bank take steps to lower interest rates from their current levels around 18 to 19 percent?

A: We can't just artificially lower rates. But let's see the bright side. They are below last year's level at 27 percent. The Treasury Bill rate is lower. Actually predictions have been wrong. Interest rates have come down, under good management.

But I do admit that we are not happy with the current rates, because even at these levels investors might be discouraged. So inflation must be brought down. Next year, we will bring down inflation to one digit level. Then interest rates will come down further.

Q: When do you hope to introduce the two-year Treasury Bonds.

A: Early next year.

Q: What are you projections for growth in 1997?

A: We are expecting to get 6 percent growth next year which is getting back to our former trend before the drought. Barring any unforeseen development, the signs are good.

Q: Won't we see a substantial depreciation of the rupee against the US dollar next year to maintain competitiveness of the currency?

A: As long as inflation is high the rupee will naturally depreciate so that our exports will maintain their competitiveness. If we bring down inflation, we can stabilize the rupee.

Q: What can be done to raise the domestic savings rate from its current levels of 16 percent?

A: Yes domestic savings is 16 percent. We also get national savings of 4 percent from those working abroad. So we are saving 20 percent as a nation. This rate is good from South Asian standards. We must have more banks and bank branches to attract savings. There should be efficient money markets for investment and lower taxation so that people won't hide their savings. These are incentives we can give.