Thursday, 30 September 2021

Trincomalee mothers of children detained under PTA call for their release

Trincomalee relatives of detained political prisoners

28 September 2021

The relatives of Tamil political prisoners detained under the draconian Prevention of Terrorism Act (PTA) have held a press conference calling for the release and a presidential pardon of those detained.

Three mothers spoke at the conference and stated that their children had nothing to do with the LTTE, which is the claim lodged by the government against them. The Trincomalee youths were arrested earlier this year and last year under the PTA for allegedly posting content on social media websites. The mothers added, that the children were unaware that the armed conflict in Sri Lanka had taken place due to their age and that any posts which had been shared were 'mistakenly' done.

Earlier this year Sri Lankan police arrested a young Tamil man from Trincomalee under the PTA after he shared a photo of Liberation Tigers of Tamil Eelam leader Velupillai Prabhakaran on Facebook. The Sri Lankan state continues to use the notorious PTA to disproportionately target Tamils and Muslims over trumped-up changes.

TNA parliamentarian, Shanakiyan Rasamanickam, criticised the Sri Lankan government in June for arresting over 100 Tamil youngsters in the past year for allegedly “posting propaganda on social media” and demanded their immediate release.

Ahead of the GSP+ review later this year, the European Parliament adopted a resolution calling for the European Union (EU) to withdraw preferential access to its markets, until Sri Lankan complied with its commitments, such as repealing the PTA.

EU has have already decided to remove the GSP+ facility – MP M.A. Sumanthiran

Sri Lanka at risk of losing GSP+ : TNA lays blame on Yahapalanaya and Rajapaksa governments.

By Sri Lanka Brief-29/09/2021

The Tamil National Alliance (TNA) says that the GSP+ tax concession that gave Sri Lanka a favorable position to sell goods in the European market is already at risk.

“They have already decided to remove the GSP+ facility,” TNA MP M.A. Sumanthiran said.

The MP opined that the suppression of democratic rights by the present government as well as the failure of the previous government to fulfill its obligations to the international community to protect human rights has contributed to this.

“The reason is that in 2017, they promised to repeal the Prevention of Terrorism Act. Four years have passed since then and it is yet to be repealed. That is why the decision was taken. We pointed out that this Act should be repealed immediately. Many unjust acts are being carried out under this act,” he added.

President’s Counsel Abraham Sumanthiran made these comments when speaking to the media after a discussion with the high-level EU delegation currently visiting the country to investigate whether the the government’s human rights record is conducive to provide the tax concessions given to Sri Lanka’s exports to Europe.

The special incentive arrangement for sustainable development and good governance known as GSP+, which was suspended in February 2010 due to the non-implementation of international conventions for the protection of human and labour rights, the environment and good governance by the Mahinda Rajapaksa administration, was reinstated in May 2017 in the trust that the Yahapalana Government would implement 27 international conventions on human rights as promised.

However, the Ministry of Justice after having discussions with the delegation had announced that the EU was satisfied with the situation in the country.

A six-member delegation led by TNA leader R. Sampanthan held discussions with EU representatives for about an hour on Tuesday (28) evening, he said.

He had also informed the EU delegation that the government should not only repeal the PTA but also release all detainees including those who have been held for prolonged periods.

Sumanthiran said that the delegation was briefed on the ongoing militarisation in the country, as well as the government’s attempts to seize Tamil lands, especially in the Eastern Province.

However, he further emphasized that although it is not appropriate to take any action against the country as the Tamil people, including himself, are citizens of this country, pressure must be exerted on the government to ensure people’s rights.

The Leader

American citizens mortgage Yugadanavi power plant and Sri Lanka's gas supply to an American company..!

-Champika Ranawaka MP

(Lanka-e-News -29.Sep.2021, 11.30PM) We have to stand against the attempts to surrender our autonomy in power and energy sector to the United States of America. Speaking at a press briefing, MP Patali Champika Ranawaka said that the “Yugadanavi” power plant at Kerawalapitiya and the Gass exploration project of Sri Lanka has been handed over to an American Company.

The construction of this power plant which started in 2006 and ended in 2010 was planned for producing 300 Megawatts of electricity with Liquid Petroleum. It has been commissioned for over ten years now and is producing the 300 MW ever since. However, running of liquid petroleum is yet to be established.

Another power plant was planned to be constructed on the adjacent plot of land with similar capacity. After a decade it has still not been constructed. The foundation stones were laid last year and the name of the plant is “Swabhadhanavi”

The transaction was kept under cover...

It is understood that 40% of Governments shares of the “Yugadhanavi” plant was sold to an American company by this government. This transaction was kept under cover. The treasury is set to receive 250 USD in return in the transaction. The funding for this plant was through the Lanka Transformers company, EPF, ETF and the Ministry of Finance. 40% of Governments stake which was based on above funding was sold to the American Company.

There is a very peculiar situation with regards to the payments of this electricity plant. We know there are two types of payments made by the Electricity Board. Payments for the Capital as well as the running costs. However the amount to be repaid as USD is to be fulfilled by next year. Therefore, from next year, there is no loss of foreign currency from this power plant. Then why we ask? The Government hands over this plant to a foreign company? There will be a huge cost for maintenance and repairs in the next 12 years. We urge the Government to reveal the details of this transaction.

The Government is said to move further and sell 49% of the twin plant, “sobhadhanavi” to the American Company. The Government is set to receive 35 million USD

The Asian Development Bank is set to fund for the construction of this new power plant. However, due to the mismanagement of economy by this Government and the downgrading of ratings the said loan is to be received next year. If the Country goes in to bankruptcy before that, the said loan will not be given. Else, the interest will be extremely high.

On this context a 49” stake of the said power plant is to be owned by the said Company. Further, the supply of Natural gasses for this plant for the next five years is to be given to this American company. We have to highlight that such an infrastructure to supply Gas will be extremely costly. Building such infrastructure for just five years is just impractical. It is just another attempt to mislead the public.

Secret “deal”..

If this “agreement” with the said company is to proceed the Gas supply will be handed over to the American Company for the rest of our lives. This secret “deal” is happening at a time where the CEB and the CPC has called for tenders to build a floating Gas supply plant, FSRO . furthermore, tenders are being called for building a pipe line for the Gas supply and for Gas suppliers. The secret “deal” is taking place on the above context.

Even when the procumbent procedure is being initiated to find a supplier in a transparent manner, it is interesting that an American Citizen as the finance minister is proceeding with an Americal Company to secretly hand over the Gas supply to the country.

Where are those patriots who rioted against “American Invasion” on streets of Sri Lanka? The Government is handing over the gas supply of the country to American including two power plants.

The Kelanithissa power plant owned by CEB has many smaller plant inside it. These plants are run with petroleum. But, they could be run with Gas much more economically. With this “deal” 800MW of power generated by the Kelanithissa plant will also be under American control.

It has to be emphasised that the autonomy in Power and energy is autonomy of the Nation. If we hand over the control of power and energy to a foreign country it is equivalent to handing over the country to a foreign force. The American Citizen and the minister of finance and the former America Citizen as the head of state has surrendered this country to America.

We don’t see the transparency that American preach to other countries in this transaction. The Parliament is not informed about this deal. This deal is contradictory to the Constitution of the land.

No power to Minister..

According to the clause 148 of the constitution such financial decisions are beyond the scope of the minister of finance. Also, according to the clause 157 is such agreement is signed with a foreign country the parliament should approve it.

This transaction has breached the procurement procedure of the state. It has breached the constitution of the country. It lacks transparency. This is a violation of what United States of America declares as their policy. We have come to know of this fact only through the medical release by the said company. Our Autonomy in power and energy has been surrendered to USA

We need to unite against this betrayal. All the workers in the CEB, all Engineers in this country and all patriots of this country should come forward to protect our sovereignty and autonomy.

---------------------------
by (2021-09-29 18:02:01)

Govt. makes U-turn on hoarders’ Mafia

Question mark over Office of CGES, emergency regulations

By Shamindra Ferdinando- 2021/09/30

Following the abolition of price control on rice and paddy, the government is expected to review its controversial decision to establish the Office of Commissioner General of Essential Services (CGES) to ensure an uninterrupted supply of paddy, rice, sugar and other essential goods.

Authoritative sources said that a decision taken by Cabinet of ministers on Monday (27) to rescind the relevant gazette underlined the urgent need to examine the government’s overall response to shortage of essential items.

Responding to The Island queries, sources explained that the government backed the appointment of a serving officer, Maj. Gen. M.D.S.P. Niwunhella as the CGES with the declaration of emergency regulations. President Gotabaya Rajapaksa made the declaration effective Aug, 31, 2021 in terms of the Section 2 of the Public Security Ordinance as per the Section 5 that dealt with essential food supply. Maj. Gen. Niwunhella of the Gajaba Regiment is the incumbent head of President Gotabaya Rajapaksa’s security contingent.

Sources emphasised that the abolition of price controls on wholesale and retail sale of rice as well as purchase of paddy should be examined against the backdrop of declaration of emergency regulations and specific measures such as the appointment of CGES to tackle hoarding, price manipulation and a range of other irregularities.

In the absence of President Gotabaya Rajapaksa, who is away in the US, Prime Minister Mahinda Rajapaksa has chaired Monday’s meeting. The Island learns that proper consultations hadn’t taken place before the government made a U turn on traders Mafia.

Sources said that President Gotabaya Rajapaksa moved to reign in the group of powerful millers in the wake of the collapse of agreement between the government and the businessmen. Trade Minister Bandula Gunawardane and Agriculture Minister Mahindananda Aluthgamage on July 21, 2021 reached agreement with millers for the latter to buy paddy at what they called government guaranteed price.

In spite of Ministers Gunawardane and Aluthgamage vowing to ensure uninterrupted supply of rice, the millers reneged on their promise. Sources pointed out that the decision to rescind the relevant gazette on price controls, the announcement of the release of funds from the Central Bank to release food containers held up at the Colombo port, immediately import 100,000 tonnes of rice to maintain a buffer stock, delay decision on the revision of milk food, flour and cement, and millers declaring a new price structure (retail and wholesale as well as paddy purchasing price from farmers) happened within 48 hours.

The Central Bank on yesterday (29) announced the release of USD 50 mn to two state banks to make it possible for importers to clear their goods from the Colombo harbour.

On the instructions of the President, the CGES Maj. Gen. Niwunhella and Chairman of Consumer Affairs Authority (CAA) retired Maj. Gen. Shantha Dissanayake, led raids on Nipuna, Lathpadura, Araliya, Hiru, New Rathna and Sooriya in the Polonnaruwa District.

Former President Maithripala Sirisena’s brother Dudley Sirisena and State Minister Siripala Gamlath are among those accused of hoarding rice.

Sources said that just a day after the cancellation of the relevant gazette, a group of millers led by Dudley Sirisena declared retail price for nadu Rs 115, samba Rs 140 and keeri samba Rs 165,000. The group also declared that paddy would be bought at nadu Rs 62.50 a kilo, samba Rs 70 and keeri samba Rs 80.

The declaration of emergency regulations in the run-up to the 48th session of the Geneva-based Human Rights Council caused quite a controversy. The entire Opposition in the parliament, two major civil society groups –Sri Lanka Collective for Consensus (SLCC) and Civil Society Platform (CSP) and a section of the international community and the Human Rights Commissioner Michelle Bachelet condemned the declaration of emergency though the government repeatedly stressed that particular measure was taken for the benefit of the fleeced consumer.

Sources said that with the abolition of the gazette meant to regulate the rice market, the whole strategy initiated by the government in late August was in tatters.

Other sources said the government had conveniently side-stepped the simmering issue pertaining to the issuance of a gazette on Oct 13, 2020 to reduce the import duty on a kilo of rice to 25 cents from Rs 50. In spite of the Committee on Public Finance chaired by SLPP lawmaker Anura Priyadarshana Yapa declaring that the duty reduction didn’t bring any relief at all to the consumer, the reduced duty remained, sources said.

Having accused major sugar importers of hoarding, the Presidential Secretariat in a statement issued on Sept 1 identified the hoarders as Pyramid Wilmar(6,200 mt),Global trading company (4,900 mt),Wilson Trading Company (14 mt) and R.G. Stores (800 mt). The announcement was made after the government seized 29,000 mt from five warehouses.

Palermo City, Italy recognises the genocide of Eelam Tamils

26 September 2021

The Palermo City council has signed a Memorandum of understanding (MoU) with the Italian- Tamil community recognising the "Genocide of Eelam Tamils perpetrated by the Sri Lankan state".

The event took place in the Palazzo delle Aquile in Piazza Pretoria and it was chaired by the Mayor of Palermo Leoluca Orlando. In attendance were the councillor Maria Cinzia Mantegna, the Tamil Union of Italy, members of the Tamil Coordinating Committee - Italy, the youth organisation Giovani Tamil and members of the Tamil community.

Palermo is home to the largest Eelam Tamil community in Italy and throughout the years a long-lasting relationship based on integration and solidarity has been established between the council and the Tamil community. The city has always shown its support to any project that was undertaken to condemn the genocide of the Eelam Tamil nation. The signing of this Memorandum of Understanding is indeed an important step in the history of the Eelam Tamil community of Italy and the Eelam Tamil nation on their journey towards justice.

Following a virtual conference “ Eelam Tamil: a nation between genocide and oblivion” held on the 12th May 2021, the Mayor of Palermo Leoluca Orlando stated his intentions to issue an official resolution that recognises and acknowledges the Tamil genocide and urges for an international investigation into war crimes, crimes against humanity and crimes of genocide.

The agreement was signed on 24 September, with Palermo City committing to holding an "Educational week of the Tamil Genocide" from 11 to 18 of May each year. The list of commitments was as follows:

1. Recognise the genocide of Eelam Tamils perpetrated by the Government of Sri Lanka (former Ceylon) since 1948.
2. Promote the "Educational Week of the Tamil Genocide" from 11 to 18 May each year. During which awareness-raising activities and demonstrations in collaboration with Tamil organisations will take place in schools and public environments, to inform and raise awareness among Palermo citizens of the Tamil genocide and other similar realities;
3. Keep promoting a strong network of commutation and solidarity between the City of Palmero and the Tamil Community in order to foster integration and mutual understanding between the two communities;
4. Promote and support initiatives dedicated to citizens in order to encourage the spread of the Eelam Tamil history, culture and identity.

Earlier this year The Canadian Ontario legislature has given royal assent to Bill 104, bringing into effect Tamil Genocide Education Week, which establishes May 12-18th as a week in which Ontarians “are encouraged to educate themselves about, and to maintain their awareness of, the Tamil genocide and other genocides that have occurred in world history.”

See more below

Lasantha Wickrematunge Murder “Trial” To Be Conducted By People’s Tribunal In The Hague

SEPTEMBER 29, 2021

The People’s Tribunal on Murdered Journalists in The Hague will indict the Government of Sri Lanka for its role in the assassination of slain Sunday Leader Editor Lasantha Wickrematunge and its prolonged failure to bring his murderers to justice, adding to President Gotabaya Rajapaksa‘s mounting international problems.

The Tribunal, established in The Hague, Netherlands, where the International Criminal Court is also based, will be part of the Permanent People’s Tribunal in Rome. The Project, entitled A Safer World for the Truth, is a collaboration between Free Press Unlimited, a press freedom organisation based in The Neterhlands, the Committee to Protect Journalists and Reporters Sans Frontiers. The website announcing the establishment of the tribunal which will commence sittings on November 2, 2021, said the three press freedom watchdogs were joining forces to “to investigate. To document. To pursue justice. And create a safer world for the truth.”

When journalists are killed, in eight out of 10 cases, the killers go free, the organisations said.[See full press release here]

Lasantha Wickrematunge was killed on January 8, 2009 when Gotabaya Rajapaksa, the current president of Sri Lanka held office as Secretary to the Ministry of Defence. Evidence gathered after the fall of the Rajapaksa Government in 2015, revealed an elaborate plot to cover up Wickrematunge’s murder and how the renowned editor was likely assassinated by a military intelligence death squad commanded by the Defence Secretary.

“The People’s Tribunal on the Murder of Journalists, will indict the governments of Sri Lanka, Mexico and Syria for failing to deliver justice for the murders of Lasantha Wickrematunge, Miguel Ángel López Velasco, and Nabil Al-Sharbaji,” a press release about the Tribunal said. The tribunal will hear witness testimony and expert legal analysis and evidence regarding the three murders. The hearing into Wickrematunge’s murder is scheduled to be held in January 2022, in The Hague. The prosecution will be led by renowned international human rights lawyer Almudena Bernabeu, who will be supported by former Judge of the International Criminal Court, Sir Howard Morrison QC.

Tweeting about the Tribunal, Wickrematunge’s daughter Ahimsa said she was proud to support the effort to bring evidence about her father’s murder before the world. “No immunity here (in The Hague), so finally, my family gets something resembling a day in court,” the journalist’s daughter said. Wickrematunge’s family has been seeking justice for his murder for 12 long years.

The Center for Justice and Accountability (CJA) in San Francisco which represented Ahimsa Wickrematunge in her efforts to sue Gotabaya Rajapaksa for the murder of her father, also tweeted that it was proud to support CPJ, Free Press Unlimited and RSF in their efforts to highlight impunity for attacks on journalists.

Sri Lanka: End arbitrary arrests, reprisals against human rights defenders and activists advocating for education rights

By Sri Lanka Brief-29/09/2021

Image: 5 HRDs in detention for more than 60 days now. ( mage courtesy of Lanka Views)

In a joint statement issued yesterday (28) leading human rights organisations has called on Sri Lanka government to end to the repression, arbitrary arrests, and intimidation against protestors advocating for education rights and peacefully expressing their dissent to government policy.

The statement among other requests, urge the Sri Lankan authorities to:

• Release all human rights defenders and activists currently in jail, taking into consider-ation the risk posed by the pandemic to prisoners and the impact on their mental and physical health;
• Respect the rights of freedom of expression and freedom of peaceful assembly, in-cluding to participate in public protests;”

The statement follows:

We the undersigned human rights organizations strongly condemn the ongoing persecution and reprisals by Sri Lankan authorities against student leaders, labour union leaders, teachers, academics, and others involved in recent protests against education policies in the country. Sri Lankan authorities have responded to the expression of dissent, protests and the exercise of the rights to freedom of expression and peaceful assembly with arbitrary arrests, intimidation, and a campaign of misinformation aimed at discrediting the work of students, teachers, academics, and union activists.

Key demands of the protests advocating for education rights since July 2021 include addressing long-standing salary anomalies of teachers and principals, and seeking the withdrawal of the Kotelawala Defence National University (KDNU) Bill, [1] which protesters contend promotes the privatization and militarization of education and threatens the future of free education and the university system in Sri Lanka.Five activists – Koshila Hansamali Perera, of the People’s Movement for Free Education; Chameera Koswatte, from the Workers Struggle Centre; Amila Sandeepa, President of the Jayewardenepura University Students’ Union; Wasantha Mudalige, Convenor of the Inter University Students’ Federation (IUSF); and Heshan Harshana, a student leader from Rajarata University – remain in detention due to their participation in a peaceful protest on August 3, 2021. They are accused of “damaging public property”, “causing injuries to fingers of a policeman” and “violating Covid-19 regulations”.

Several other activists and people connected with or supporting education rights defenders have faced arrest, threats and intimidation. At least seven people who transported protesters and provided loudspeakers to the protest were arrested and released on bail in the same case. On August 6, Thalangama police submitted the names of a further eleven people before the Kaduwela Magistrate Court including, student leaders, Udara Sandaruwan and Indika Vidanapathirana, academic, Mahim Mendis, trade union leaders, Dammika Munasinghe, Chathura Samarasinghe and Amila Sandaruwan, and activists, Sujith Kuruwita, Dhanushka Kumarasinghe, Ven. Galwewa Siridamma Thero, Ven. Tampitiye Sugathananda Thero and Ven. Thenne Gnanananda Thero. Although no arrest warrants have been issued those named have suffered intimidation and threats from police including through multiple visits to their homes, threatening telephone calls and the intimidation of family members. As a result, some have gone into hiding and have been unable to carry on their usual work or to continue to protest.

In July 2021, close to a hundred trade union leaders, political activists and teachers participating in protests were arrested and released on bail. Sixteen defenders were forcibly detained and sent to Covid-19 quarantine despite being granted bail by court and despite the magistrate refusing to order mandatory quarantine.

Since then, teachers and principals engaged in trade union action to resolve salary anomalies for more than two months have faced intimidation by the police, who went to their houses and collected information about those participating in protests. In one area, police had formally written to government officials to ask for such information. The minister in charge of the police sought to undermine the trade union actions stating that some of those participating are doing so under duress. He also threatened to investigate union leaders, and accused them of making death threats. Union leaders have denied making threats while asserting their right to request others to participate in trade union actions, which even a cabinet sub-committee engaged in negotiations has acknowledged as legitimate. Government politicians and their allies have also attempted to discredit the protesters and accused them of undermining children’s education and spreading Covid-19.

We are especially concerned for the health and safety of the five jailed activists who have been denied bail under provisions of the Offences Against Public Property Act (No. 12 of 1982).

This law denies bail except in exceptional circumstances if the alleged offence is damage to public property estimated to be above Rs. 25,000 (US$125). In a letter addressed to the Magistrate on August 4, police claimed damages of Rs. 213,633.42 (US$1,073) for alleged damage caused to police barricades and to the road resulting from burning of a mock coffin made of cardboard. Lawyers for the activists have argued that the allegations are baseless, politically motivated and a clear misuse of the law. Bail has been denied despite lawyers arguing exceptional circumstances due to the Covid-19 pandemic, upcoming university examinations and underlying health conditions.

The denial of bail is particularly concerning in light of the health risk posed by the Covid-19 pandemic and the surge in cases and deaths in Sri Lanka. Detainees are at heightened risk of contracting Covid-19 due to severe overcrowding in detention centres and prisons. Four of the activists currently detained tested positive for Covid-19 after two weeks in an overcrowded quarantine facility. Although Koshila Hansamali, who has tested positive, suffers from a pre-existing respiratory condition, she has been denied the medication she urgently needs. Repeated calls for information have not resulted in more information being shared.

The five human rights defenders arbitrarily detained have been denied access to their lawyers and family members. Safeguards such as access and transparent and effective communication by prison authorities, are critical. The detainees’ lawyers have stated that prison officials refused to allow meetings. Detainees have a right to read, examine, give instructions and approve documents being filed in courts on their behalf. To obstruct this process is a violation of the right to a fair trial and equality before the law.

We call for an end to the repression, arbitrary arrests, and intimidation against protestors advocating for education rights and peacefully expressing their dissent to government policy. We urge the Sri Lankan authorities to:

• Release all human rights defenders and activists currently in jail, taking into consider-ation the risk posed by the pandemic to prisoners and the impact on their mental and physical health;
• Respect the rights of freedom of expression and freedom of peaceful assembly, in-cluding to participate in public protests;
• Cease the persecution and intimidation of students, union leaders, teachers, princi-pals, academics and others involved in recent education-related protests in the coun-try;
• Immediately withdraw politically motivated and baseless charges pending against the five activists, and end the misuse of laws such as the Offences Against Public Prop-erty Act (No. 12 of 1982) in reprisal for their human rights work;
• Provide human rights defenders and activists currently in detention with prompt and effective medical treatment and specialized care for underlying health issues; espe-cially considering that four activists have tested positive for Covid-19 in detention;
• Grant the jailed activists prompt access to their family members and to lawyers of their own or their family’s choosing, and ensure that family members are given full in-formation on their relative’s health status and medical treatment;
• Prevent further intimidation and arbitrary arrest of activists and protesters, especially the eleven persons named who are at particular risk of arrest;
• Secure the right to protest of all persons in Sri Lanka and cease reprisals against those expressing peaceful dissent against the government and promoting and protecting human rights in the country.

Sincerely,
• Amnesty International
• Asian Forum for Human Rights and Development (FORUM-ASIA)
• Asian Human Rights Commission
• FIDH, within the framework of the Observatory for the Protection of Human Rights Defenders
• Front Line Defenders
• Human Rights Watch
• South Asians for Human Rights
• Sri Lanka Campaign for Peace and Justice
• World Organisation Against Torture (OMCT), within the framework of the Observatory for the Protection of Human Rights Defenders

GSP+ withdrawal: How will it impact Sri Lanka’s economy?

Wednesday, 29 September 2021

Sri Lanka’s preferential access to the vital European Union (EU) market faces fresh challenges after the European Parliament’s special resolution adopted in June 2021. The resolution calls for an assessment on “whether there is sufficient reason, as a last resort, to initiate a procedure for the temporary withdrawal of Sri Lanka’s GSP+ status.”

The GSP+ is a non-reciprocal trading arrangement whereby Sri Lanka does not have to lower tariffs in return but is required to implement certain non-trade related conventions to benefit from preferential access.

The GSP+ arrangement slashes import duties to zero for vulnerable low and lower-middle-income countries that implement 27 international conventions related to human rights, labour rights, environment protection, and good governance.

This article assesses the impact of a hypothetical withdrawal of GSP+ on Sri Lanka’s exports to the EU: the largest single trading bloc, with the United Kingdom (UK), accounting for 30% of Sri Lanka’s exports.

The impact

A possible withdrawal of GSP+ will increase the tariffs for Sri Lankan products up to the Most Favoured Nation (MFN) tariffs. Consequently, products coming from Sri Lanka will be more expensive in the EU market, directly reducing the export demand from Sri Lanka.

However, Sri Lanka’s competitors that continue to benefit from the EU’s GSP will face zero preferential tariffs. Thus, in addition to the trade destruction effect, with the relative price of goods from Sri Lanka being higher, the trade will be diverted to those competitors. Using a partial equilibrium analysis, one can ex-ante quantify these effects of GSP+ withdrawal. Assuming the UK will follow the EU lead, and Sri Lanka will face the lower bound of relevant MFN tariffs, partial equilibrium estimates show that Sri Lanka’s exports to the EU will fall by 627 USD million (Table 1). The simulations are done taking 2019 as the base year.

As Table 1 shows, the worst-hit sectors are apparel (HS 61 and HS 62), tobacco (HS 24), seafood (HS 03), and rubber (HS 40) sectors. The combined loss for the apparel sector will be as much as $ 494 million, and it is 79% of the total estimated trade loss. In addition, the seafood sector is deemed to lose $ 20 million or 17% of the sector’s 2019 exports to the EU. Thus, losing preference to a vital market will be hard for the recovering seafood industry (figure 1).

There are two caveats of an ex-ante impact assessment of this kind. The first is that the analysis is based on assumed elasticities. However, the assumptions are not overly restrictive. The second is that all the eligible exports from Sri Lanka do not utilise the GSP+ facility. Thus, the actual impact will be contingent upon the utilisation ratio. However, after Sri Lanka regained GSP+ preference in 2017, the utilisation ratio increased, reaching 61.8% in 2019, improving from 55.1% in 2017. Therefore, the increasing utilisation ratio makes the potential impact still significant.

Notably, there is a variation of the utilisation rate within the HS chapters, as shown in Table 2. The apparel sector will be relatively resilient to a loss of preference as its utilisation ratio was 52% in 2019. However, a loss of preference will halt any industry drive that aims to increase the utilisation rate and then expand the market share in the EU.

Further, the 2010 loss of GSP+ inflicted high costs to the industry. As seafood, rubber products, and footwear sectors utilise more than 90% of GSP+ preference, those sectors will be more vulnerable to the shock. Indeed, the difference between GSP+ preferential tariff and MFN tariff for seafood is higher -zero versus 7.5% respectively (Table 1)- aggravating the impact.

Future steps

The losses from GSP+ preference will be significant and heterogeneous across sectors. The GSP+ also opens the door for EU investments as outsourcing production to preference receivers is beneficial to the EU. In addition, sectoral losses may spillover to the overall economy exacerbating poverty and income inequality. Thus, avoiding such losses should be a political priority for policymakers.

Less dependence on the EU market is a widely suggested strategy. Diversification is indeed beneficial when it is done for economic reasons. However, ad-hoc moves to diversify to escape from unresolved political issues will not do much good. The EU market is a high-end export destination for Sri Lanka. The quality improvements, product standards, and consumer preferences positively challenge the Sri Lankan exporters to improve product quality and competitiveness.

Additionally, a non-reciprocal preference for various products incentivises product diversification away from traditional exports into more complex products like electronic equipment, including semiconductors (HS chapter 85). Therefore, while Sri Lanka should work to secure the GSP+ resolving the current political issues and focus on fully utilising GSP+ preference in the short run. In the long run, as GSP+ is contingent upon income level, Sri Lanka will lose it someday, and as such should enter into reciprocal trade agreements with the EU and other high-end markets, including the US.

(Link to blog: https://www.ips.lk/talkingeconomics/2021/09/28/gsp-withdrawal-how-would-it-impact-sri-lankas-economy/)

[Asanka Wijesinghe is a Research Economist at the Institute of Policy Studies of Sri Lanka (IPS) with research interests in macroeconomic policy, international trade, labour and health economics. He is also interested in the impact of adjustment costs of trade, gravity modelling in trade, econometrics and the trade origins of populist politics. He has undertaken efficiency analyses, particularly public spending efficiency, using parametric and non-parametric efficiency analysis approaches. Asanka holds a BSc in Agricultural Technology and Management from the University of Peradeniya, an MS in Agribusiness and Applied Economics from North Dakota State University, and an MS and PhD in Agricultural, Environmental and Development Economics from The Ohio State University. His latest research focused on the effect of global trade-induced labour market changes on voting behaviour in recent US elections, including the 2016 presidential election.]

[Eleesha Munasinghe was a research intern at IPS. She is currently an undergraduate (Economics and Finance) at New Castle University in UK.]

Easter Attacks and Ethno-Religious Thought Patterns

29 September 2021

We have been critical in these columns, admittedly, of the role played by His Eminence Cardinal Malcolm Ranjith in times gone by. It starts from his sometimes open, otherwise indirect support of the Rajapaksas; in his not standing up to the minority religious rights when they were under threat; in playing down the importance of fundamental rights as well as his part in bringing the Gotabaya Rajapaksa regime in to power; specially in the context of the Easter Sunday bombings that took place during the Yahapalana regime. But ultimately, it appears that the Cardinal is convinced that no justice would be done to the victims of the bombings, prompting him to seek justice through the international community. That said, we have not been reluctant, either, to give due praise to the Cardinal for his exemplary role in averting a blood bath after the Easter Sunday carnage, not only by managing the indignation and anguish that arose among the Catholics but also in sending out a clear, deterrent signal to the Sinhala Buddhist chauvinists eyeing an opportunity to victimize the innocent majority of the Muslim Community.

Now with his plea to the international community to unravel the mystery behind the Easter Sunday attacks, the stooges of the Rajapaksa cabal, especially, those in saffron robe have been mobilized to attack the Cardinal and other Catholic priests at the forefront of this cry for justice. The government and pro-Rajapaksa private media are engaged in a mudslinging campaign aimed at the Cardinal and the Catholic church of Sri Lanka in an obvious attempt to instigate an ethno-religious conflict between the Buddhists and the Catholics. Claims about the Cardinal having a hidden agenda in calling international scrutiny, the church being instrumental in selling Sri Lanka to the west, politicians in the opposition like Patali Champika Ranawake, a serious threat to the scheme of perpetuating a Rajapaksa dynasty are publicized with the intention of instigating Buddhists. Fortunately, the Sinhala Buddhists are not willing to fall in to the same pit they fell once.

Grievance of being ‘Sinhala Buddhist’

When some senior Police officers including those named by the Presidential Commission in to the Easter Sunday attacks as culprits of negligence visited the Maha Nayakes in late August, their ‘grievance’ was that they were Sinhala Buddhists and that they had nothing to do with the Easter Bombings, which was ‘a matter between Muslims and Christians’. We are not quite sure of the response of the Chief Prelates with regard to their complaint. But we are sure that they were not reprimanded on the basis that it was not a question of their ethnicity, but one of performing their duty as Police officers and that if they were negligent, they should not seek cover in being Buddhist or Sinhalese. That much we know.

On the other hand, the robe bearers at the service of the Rajapaksa power politics, such as Ven. Galagoda Aththe Gnanasara Thera and others like him, in their vitriolic against the Cardinal, refer to the fact that the Church did not take action to seek justice for the victims of the attack on the Dalada Maligawa or the assassination of 31 monks at Aranthalawa, in 1987. Even those Buddhist monks who have now come in support of the Cardinal in his quest for the truth, unfortunately, sends the signal that the Cardinal as the head of the Catholic Church is the rightful person to represent the victims of the attacks and thus his cry to the international community is just and fair. Ven. Elle Gunawansa Thera, who commendably has come out in defense of the Cardinal, in a press release, did say that ‘it was a Catholic problem which had nothing to do with him and that nevertheless he stands by the stance of the Cardinal. In other words, the attack on the civilians on Easter Sunday and the consequent search for justice remains a ‘Catholic problem’ to Ven. Elle Gunawansa Thera although he defends the Cardinal’s plea to the international community.

The Prism of exclusivity

The Vidwath Sangha Sabhawa which convened two days ago expressed support to the Cardinal and the Catholic Church in their move to secure justice for the victims. While denouncing the attempt made by Gnanasara et al to attack the Cardinal to instigate anti-Christian sentiment among the Sinhala Buddhists and defending the Cardinal, they revealed their intention to visit the Maha Nayakes of the Three Chapters to enlighten them on the justifiability of the Cardinal’s actions. Anyone listening to the statement would wonder whether the Maha Nayakes are still in the need to be enlightened on what is transpiring with regard to the progress of the investigations in to Easter Sunday attacks. Most probably, the Chief Prelates would adopt the same non-committal stance they always take in issues of this nature. Like the one they took when the Police Officers visited them with their ‘grievances’. The Maha Nayakes would consider them aloof from the entire issue.

Many Sinhala Buddhists believe now, that there will be no genuine effort by the Gotabaya regime to take investigations to the full length, as there could be unpleasant surprises that do not augur well for the Rajapaksa’s. The Rajapaksa clan resort to what they always do when confronted with such debacles; arousing anti minority sentiment. They might fail this time. But that is not because the majority thinks out of the ethno-religious mentality that bugs them for centuries. It is because they know that something fishy remains in the entire scenario concerning the mastermind of the bombings and they genuinely feel for the innocent victims of the attacks. That credit we give to them.

A long-lasting affliction

Yet the same old ailment of not being able to think beyond and above ethno-religious lines still exists; even among those who commiserate with the Catholics. They defend the Cardinal’s move to seek justice for the ‘catholic problem’. The only difference and the positive is that the Rajapaksas would not be able to reap handsome dividends for such frictions this time. Yet had it been a question of Christians being attacked while engaging in preaching their faith in a Sinhala Buddhist village deep in the South, we know that empathy would not be there. It is a deep entrenched sentiment that has existed, exploited by Politicians and keeps the nation divided. Time and again these fault lines based on ethno-racial divides explode in to violent and disruptive conflicts as the last century of Sri Lankan history very clearly shows.

Yet, for the time being, the Catholics are grateful for those venerable monks who have come against the vilification of the Cardinal and the Church. The Rajapaksas will find it hard to hoodwink the Sinhala Buddhist majority this time in their bid for extended political power.

Yet as long as Easter Sunday Attacks remain a ‘Catholic problem’ while the Aranthalawa massacre, a ‘Buddhist problem’, meaningful and lasting national reconciliation is a very elusive commodity. It is not a simple question of supporting or opposing the Cardinal.

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