Eight lessons from the East Container Terminal fiasco

The most notable feature of the ECT fiasco was that no port and shipping experts and their chambers or industry groups came forward to tell the public whether the proposed JV would be good for the country

Wednesday, 24 February 2021

Earlier this month, the Government of Sri Lanka (GOSL) unilaterally pulled out of a 2019 memorandum of understanding (MOU) with India and Japan for developing the strategically vital East Container Terminal (ECT) at the Colombo Port. Accordingly, ECT will be exclusively developed and operated by the Sri Lankan Ports Authority (SLPA). 

With the announcement of that decision, the unrest between the Government and the trade unions (TUs) subsided. The ECT fiasco started when Minister of Ports Rohitha Abeygunawardena (The Minister), announced in November last year that the ECT will be operated by a joint venture (JV) owned by SLPA, India and Japan in which SLPA will have 51% stake. The party representing India part was mentioned as the Adani Group. The trade unions (TUs) affiliated with various political parties panicked and agitated started their protest campaign to prevent such an outcome. 

The President seemed to be determined to proceed with the transaction citing that geopolitical reasons mandate it. However, the protests from TUs, Buddhist monks, political parties and other stakeholders overpowered the Government resolve to proceed with the project. They compelled the GOSL to renege the tripartite MOU signed between Sri Lanka, India and Japan. Now the proposed ECT deal is gone and the fiasco ended with much fanfare. But it also left some valuable lessons to be learned for the nation. In this article, I give my perspectives on that issue on the premise that the proposed ECT deal was genuinely beneficial to the country politically and economically and cancelling that MOU was detrimental for the country.

Government’s resolve was not strong enough

Many observe that the GOSL was not strongly determined to go ahead with the proposed JV with India and Japan. It was also clear that GOSL did not anticipate the level of protests and resistance propped up from the TUs and other stakeholders. GOSL was surprised by the magnitude of the opposition to the deal and could not give a matching response to counter the charges from the opposing parties. GOSL defended the deal with a sense of guilt as if they were sinning because the deal was against the election manifestos approved by the voters. Had the GOSL followed the right strategy to counter the opposition, a negotiated agreement at least could have been worked out. Hypothetically, a negotiated deal would have been 60%:40% ownership instead of the proposed 51%:49% plus more conditions in Sri Lanka’s favour to strengthen Sri Lanka’s control over the ECT. 

 

Business case of ECT deal was not underscored i.e. poor rationalisation 

Trade unions and the patriotic nationalist forces interpreted the ECT deal as a sale of national assets, whereas the Government called it a strategic investment influenced by geopolitical factors. However, the Government failed to rationalise the deal based on its business case or merit, which was a significant omission. As a result, the media also portrayed it as an outright sale and swayed public opinion against the deal. So how should the GOSL have rationalised the ECT deal?

The GOSL should have highlighted that there will be synergy by entering into the proposed joint venture agreement. Synergy can be defined as the interaction or cooperation of two or more organisations, substances, or other agents to produce a combined effect greater than the sum of their separate effects. In simple terms, when there is a synergy between two parties, the sum of the output from two inputs will be three instead of two (1+1=3). It was incumbent upon the GOSL to clearly show that the deal would bring synergies to the country where more significant benefits would accrue to the country from the proposed JV agreement than the ECT operated solely by SLPA.

Colombo port is mainly a transhipment port (80% of the total volume), where 60% of the transhipment business is with India. Therefore, it is quite natural that India has a political and commercial interest in the Colombo port. Forming a JV with a party representing India to operate the ECT, the transhipment volume will probably be higher as the Indian JV partner will generate more business to get the highest return on their investment (ROI). 

In such a scenario, the higher business volume and the resulting ripple effect on the SL economy would have been greater than an ECT solely operated by SLPA. That was the business case that the GOSL should have highlighted. Also, in a JV, the Indian partner brings in their investment share, which will be a foreign direct investment for the country and is obliged to share the business risks.

The GOSL should have emphasised the MOU scrapping’s flip side, like the damage to the existing goodwill between Sri Lanka and India and Japan. It would also prompt India to find a way to reduce the reliance on the Colombo port by dredging new Indian ports. Such a response may reduce the Colombo port’s geographical advantage as a transhipment hub. 

One economist had argued that the cost of operating Indian ports is higher than the Colombo port, and thus Sri Lanka has an eternal advantage. Nothing will be impossible with technological advances, and the scenario could change anytime in future. Therefore, if there is significant Indian stakeholding in the Colombo port, Sri Lanka could sustain Indian dependence on the Colombo port in the long run, which could delay or deter India’s desire to develop their ports to handle transhipment business.

 

Stoic silence of industry experts

The most notable feature of the ECT fiasco was that no port and shipping experts and their chambers or industry groups came forward to tell the public whether the proposed JV would be good for the country. It could be because they saw no business case in the deal or opposed it due to political reasons. Either way, their silence helped the media and the opposing parties strengthen the opposition for the agreement. If they also felt that the deal was terrible, they should have publicly declared it, which would have helped the public make informed conclusions. 

 

Conventional stand of the trade unions and other opposing parties

The parties that opposed the ECT deal interpreted it as a sale of a national asset, which was not initially mentioned in the election manifestos of the Sri Lanka Podujana Peramuna (SLPP). They also argued that port is an economically crucial asset (Arthika Marmasthanaya) that must not be privatised in any form. Therefore, the agitation centred on the sentimental slogan of protecting resources belonging to the country and the people (Ape Sampatha Rakaganimu). These are typical grandiose slogans chanted every time there is talk of privatisation, restructure or private-public partnership of state-owned enterprises (SOEs). 

As far as TUs and other nationalistic forces are concerned, the national assets such as Ports, Sri Lankan Airlines should never be privatised, no matter how much losses incurred by these SOEs burdening the government coffers. Even 51% of GOSL ownership was interpreted as a sale, indicating that these parties don’t understand how corporate governance is conducted in modern limited liability companies.

The TU s resistance seemed to be grounded on the fears that they will lose jobs, lose the perks already enjoyed by them or the archaic attitude that the private sector is always wrong. They seem to be stuck in that dogma forever. Also, TU s are mainly concerned about protecting the assets (Sampath Rekaganeema) and not efficiently utilising those assets (Sampath Wedi Diyunu kireema). The TU s and other forces’ fears would have been aggravated due to the deal’s lack of information. GOSL could have addressed such information asymmetry had there been more transparently concerning the ECT deal. 

 

The zero-sum game mindset vs. win-win attitude

A zero-sum game is a situation in which one person or group can win something only by causing another person or group to lose. That has been the feature of many recent political struggles in Sri Lanka. Take the SAITM struggle, for example, by the Government Medical Officers Association (GMOA) and other opposing parties who wanted SAITM completely abolished. They were not ready for a compromise such as a highly regulated private medical college where GMOA is also represented in the medical college administration. They wanted an all or nothing solution.

Similarly, in the ECT case, all opposing parties wanted nothing but the abrogation of the tripartite MOU to ensure no Indian involvement in the ECT. They were not even ready to consider the diplomatic problems that could arise due to such an abrogation or the benefits of an effective joint venture that will bring synergies, as explained under lesson number two above. There was no middle path, no compromise; hence it was a zero-sum game. When people cling to the dogmas, they don’t see other perspectives and cannot become flexible. They become the victim of their ideology. There can be non-negotiable things, but there can be a compromise to create win-win situations in most instances.

 

Lessons from other countries on public private partnership 

Suppose a scenario where Sri Lanka discovers oil in its offshore basin where we have no choice but to collaborate with a Multinational Oil Company (MNOC) to exploit it. It will be interesting to see how these TUs and nationalistic forces react if GOSL collaborates with such MNOCs. The majority of Sri Lankans oppose privatisation and the private handling of state assets and state-owned enterprises. Hence, it will be worth to explore if there are lessons to be learned from other countries as to how they handle the privatisation. 

This writer has some hands-on experience of how Gulf countries in the Middle East have collaborated with the MNOCs to exploit their oil reserves. In the oil and gas-rich Gulf countries such as Saudi Arabia, UAE (Dubai, Abu Dhabi) and Qatar, the oil fields are mainly exploited by MNOCs such as Total, Maersk Oil, Exxon Mobil, Shell and Occidental petroleum etc. They have entered into exploration and production sharing agreements (EPSA) for oil and gas exploration and production. These arrangements are also called ‘concessions’. The EPSA is due to the technical knowhow of the MNOCs, which the home country does not possess. 

For example, in Qatar, the government authority and agency for all oil and gas exploration and production is Qatar Petroleum (QP) which has entered into EPSAs with all the foreign MNOCs. Each MNOC is allocated with an oil field with substantial oil reserves. The investment for the installation of offshore oil rigs and commercial production is the responsibility of the MNOC per the EPSA. Each EPSA stipulates the oil production sharing mechanism between the MNOC and the QP according to a formula. 

Typically, the EPSA allows the MNOC to recover all the operating expenses by selling a sufficient number of oil barrels subject to a cap called the ‘cost oil’. The remaining production, called the ‘profit oil’, is shared between the QP and the MNOC, typically 60%: 40% ratio. Usually, the EPSA production sharing is more favourable to the QP (rightfully so) and beneficial for the MNOC because the MNOC can fully recover all operating expenses from the sale of cost oil. That is how the public and the private sector share the economic fortunes of fossil fuel reserves.

It should also be noted that QP operates many joint venture projects with other parties. One such JV partnership is Oryx GTL, a joint venture between QP (51%) and Sasol of South Africa (49%) that operates a second-generation gas-to-liquids (GTL) complex in Ras Laffan Industrial City. Sri Lanka also can learn from these successful models adopted in overseas countries.

 

Is WCT better deal for India compared with ECT?

When the protests were mounting, the prime minister declared that the Government had not decided to give the ECT to India, and he maintained that until the cabinet confirmed it. Finally, TU s and all other nationalistic forces emerged victorious when the cabinet finally decided to pull out of the MOU. However, there was a Trojan horse attached to the GOSL’s decision to scrap the MOU. GOSL offered the West Container Terminal (WCT), which is yet to be developed, to the India-Japan consortium. That deal must be even more damaging and unpatriotic from the nationalist perspective as 85% of WCT operating company ownership would be offered to the India-Japan consortium Vs the 51%:49% ownership of the original ECT Joint venture. 

Hence, it seemed the GOSL saved its face for the day, but Japan and India have not yet confirmed that they are amenable to the new proposal. Those two countries have already lodged strong protests with the GOSL for reneging the tripartite agreement. So, it is too early to say whether or not the GOSL was street smart in handling the fallout from the unilateral pull out of the MOU.  

 

The need for a national policy on privatisation

A grandiose argument that has recently gained currency is that a government that comes to power for five years cannot make strategic decisions affecting the country in the long run. That argument is brought up when crucial decisions are made concerning the ethnic problem and privatisation. If that is valid, the government can only make just routine daily decisions, and no strategic decision can be taken. Such is the thinking of certain political parties and so-called nationalist groups. Hence, the election manifestos should clearly articulate the party’s position on crucial matters of national importance and in the event of an election victory that can be taken as endorsement of the majority. 

However, the problem is that election manifestos never articulate the political party’s position concerning the decisive issues for fear of defeats at the elections—this boomerang when the party comes to power and trying to go all out with the undisclosed agenda. We should remember that politically popular pledges given on the election platforms may not always be economically viable.

Despite the election promise that the state resources will not be privatised, the ruling alliance was compelled to go for a public-private partnership regarding the ECT. The scrapped ECT deal, albeit with a majority government control, shows that privatisation is an inescapable phenomenon. Whatever mentioned in the election, manifestos will not be defendable when faced with reality when in power, especially with Sri Lanka’s economic conditions. 

So, there is a need for a national policy on privatisation where two main parties agree. For example, there should be an agreement between the two main parties, whether Sri Lankan Airline should be handed over to private management like the previous Emirates deal. Only a bipartisan agreement can underpin such a move. In the absence of a national policy, the economy will suffer as the opposition will always scuttle all progressive actions of the government in power. 

 

Conclusion

ECT fiasco should serve as a lesson for the pro and anti-privatisation forces in this country. The reality is that in a market economy, the Government cannot be expected to run enterprises. There is no question that the Government should have a significant stake in nationally and economically critical enterprises. Hence, there should be a space for public-private partnership in managing national assets. Also, economic decisions should be taken purely based on sound financial evaluations rather than on emotional nationalistic sentiments. 

Rather than adopting a zero-sum game approach, a win-win approach is required. Such a win-win approach will be the key to an economic recovery also. That will help preserve democracy as well. The operation of Sri Lankan Airlines by Emirates more than a decade ago should be a role model for future public, private partnerships.

The writer is a finance professional with over 18 years’ experience in Sri Lanka and the Middle East.

Government finally unlocks Muslims’ doorway to Heaven

Sunday, February 28, 2021

Two little words in government gazette end months of protests and anguish as ban on burials is at last lifted

The Government on Thursday night finally bowed down to local and international pressure and lifted the ban on burials for the COVID dead, thus ending months of protests and anguish amongst the nation’s 2 million strong Muslim community.

It did so by simply adding two little words to the original gazette text which had made cremation mandatory to those who succumb to the coronavirus, namely, the words ‘or burial’ to follow ‘cremation’.

Ever since the COVID crisis began, the Lankan Government had taken its cues on how to tackle its spread from the World Health Organisation except its advice on how to dispose of the COVID dead. In March last year, the WHO issued its interim guidance report which gave the all clear for the COVID dead to be buried in accordance with certain prescribed procedure, stating it was safe  and that there had been no evidence to suggest otherwise.

THE RIGHT TO ONE’S BODY BOTH IN LIFE AND IN DEATH: Muslim protests on Wednesday in Colombo

The Lankan Government, however, decided to play it safe and, following China’s policy, decreed mandatory cremations as the sole means of disposing the COVID dead. This, of course, affected the Muslims who strongly believe in physical resurrection on Judgement Day before they enter one of the eight doors of Jannah or Paradise or even the main gate to Heaven. Cremation for the Muslims is banned. Burial is the prescribed method in the Quran. Burning the dead is considered a form of mutilation, forbidden by Allah.

But despite WHO’S Interim Guidance Update of September 2020 which held again that burial was safe and that cremation should be a matter of cultural choice; despite the International Centre for Disease Control and Prevention also recommending that burials be permitted; despite the UN Resident Coordinator in Sri Lanka Hanaa Singer pointing out that prohibition of burials of COVID-19 victims was not backed by any scientific evidence; the Lankan Government refused to budge from its April gazetted  policy of cremating the victims, citing dangers of further spreading the virus through the underground water table if allowed to be buried.

Even when the Health Minister’s own expert subcommittee chaired by senior Professor in Microbiology Prof.  Jennifer Perera submitted its report on December 31 endorsing burial for the COVID dead, the Government remained, like the rock of Gibraltar, committed to its intransigent stance and refused burials, preferring, instead, to depend on the Health Minister’s main committee headed by Consultant Judicial Medical Officer and Forensic Pathologist Dr. Channa Perera, which had, in its report submitted two weeks earlier to the Jennifer Report, maintained that cremation was the only safe mode.

On January 7, in response to a question, Health Minister Pavithra told Parliament the government will continue with mandatory cremations, according to Dr. Channa Perera’s main committee’s report and the decision to cremate will not be withdrawn on religious, political or any other grounds.

In April last year Dr. Channa Perera, a consultant Forensic Pathologist attached to the Health Ministry, was quoted on BBC’s New Hour, that the “government has nothing against Muslims but they have a small fear about whether the virus can be used for unauthorised activities. Maybe an unwanted person could get access to a body and it could be used a biological weapon.”

While the rest of the world approved COVID burials, Lanka and China alone continued with mandatory cremations, despite a mountain of evidence confronting that view.

On February 10, things took a different turn sending Muslims over the moon when Prime Minister Mahinda Rajapaksa rose in Parliament and, in a brief reply to a question raised whether the Muslims will be allowed to bury their COVID dead, assured the House that thenceforth ‘’We will allow the bodies to be buried.”

But the Muslim ecstasy was short-lived. The following day, though Pakistani PM Imran Khan and American Ambassador Alaina Teplitz had both tweeted their delight over the Lankan ‘PM’s announcement to end mandatory cremation of COVID victims’, a government backbencher stepped in to deny the import of the Prime Ministerial pronouncement.

SLPP Gampaha MP Kokila Gunawardena addressing a press conference refuted that the Prime Minister had given the nod for COVID dead Muslim burials but that he had only said in Parliament that’’ Muslim burials will be allowed’’. The SLPP MP said ‘’the Prime Minister or the President cannot decide on permitting COVID burial and it will be done by a committee of experts.’’

Why, and on whose writ, did this SLPP MP Kokila play nanny and act as the Prime Minister’s protector when all watching Parliament’s televised proceedings, including foreign diplomats, heard and understood exactly what the Prime Minister meant by his answer to SJB Marikkar’s question on Muslim COVID burials? Saw and heard also how the Prime Minister insisted on answering the question even after the Speaker had ruled it out of order and had warned Marikkar not to waste time in the House by raising questions that had no connection to the matters being debated?

The Prime Minister’s good intention to provide justice to the Muslims that received world acclaim should not have been distorted by an interloper holding press conferences outside the House, attempting to interpret the Premier’s unequivocal statement. If the Prime Minister was misunderstood, surely, he himself would have been the first to rectify the misapprehension?

To add worse injury, Cabinet Spokesman Minister Udaya Gammanpila addressing the Cabinet press briefing on February 16, had the audacity to say  the Prime Minister’s COVID burial statement was his ‘personal opinion’. Doesn’t Gammanpila understand that in Parliament one does not tender personal opinions in answer to official questions, like one is wont to do at coffee houses to pass the time of day crossing swords in jest?

On February 9, the day before the PM’s announcement, COVID Minister Sudharshani Fernandopulle told Parliament in reply to a COVID related question, ‘’The COVID virus was not transmitted through water.’’

As the SUNDAY PUNCH of February 14 commented under the headline ‘Let the Muslims bury their COVID dead’, Sudharshani’s ‘tacit reply shattered the first and last defence raised against allowing the burial of Muslims who have died of COVID on the grounds that the coronavirus may seep out of the corpse and contaminate the ground water. The last bastion against Muslim COVID burials had fallen.’

So what made the Government finally relent?

Did Dr. Channa Perera’s main expert committee which had clung so long to outdated views have a sudden change of heart that made it agree with the ton of evidence the rest of the world possessed and acted upon? If so what was the enlightening scrap of evidence that finally coffined its antediluvian views and moved them to agree on burials?

Or was it Pakistani Prime Minister’s exhortation to the Government to allow COVID burials coupled with the Organisation of Islamic Cooperation raising the issue of mandatory cremation of COVID victims in Lanka as a denial of Muslim rights to be buried when dead at the 46th Regular Session of the UN Human Rights Council that did the trick?

Is allowing a recent foreign guest of state and the international community to interfere in the internal affairs and decisions of a sovereign state when it is in error, against the interest of its people? Or is it worth enduring the seeming affront for the global goodwill it wins and the justice it brings to its citizenry? Justice to one is justice to all.

Especially when human rights are no longer confined within an individual nation’s ambit but transcend natural and man-made boundaries and are universal in law, in fact and in spirit.

So sorry, Mr. Khan, but your slip is showing since your mask is missing   FACE TO FACE: Maskless Pakistani Prime Minister Imran Khan shares a touching moment with his Lankan counterpart Mahinda Rajapaksa (Reuters) Pakistan may have helped Lanka during her dark days of terrorism but its present Prime Minister former fast bowler Imran Khan let the side down when he brashly flung customary house rules prescribed by the host nation to the winds and breezily flouted the travel bubble COVID code of health guidelines laid out for visiting dignitaries. When a high-powered Chinese delegation arrived in Lanka last year in early October, they dutifully followed COVID protocol and scrupulously wore their face masks at all times when they met the President, the Prime Minister and other officials. So did the former American Secretary of State Mike Pompeo conscientiously wear his mask during his visit to Lanka late October as did India’s External Affairs Minister Jaishankar religiously wear his face mask on his three day visit last month. All three of them observed and respected the country’s health guidelines to the letter. But not so for visiting Prime Minister Imran Khan who arrived in the island on Tuesday evening on an event packed 24-hour visit. Apart from the airport ceremony on arrival, at every other function he attended, Imran Khan showed his slip and his scant regard for the nation’s COVID protocol, by not wearing the globally recommended face mask, even in the presence of those in the high risk category. He did not wear his face mask when he arrived at Temple Trees on Tuesday evening  to be greeted on the door step by the face masked Lankan Prime Minister Mahinda Rajapaksa. Neither did he wear his face mask when he walked into the Presidential Secretariat on Wednesday morning where he was greeted by President Gotabaya wearing his face mask. Neither did he wear his face mask when he attended the Pakistan-Sri Lanka Trade and Investment Conference 2021 held at Shangri-La; and addressed the business community with Lankan Prime Minister on the dais wearing his face mask. Here, though falling short of giving the face mask advice by deed, he succeeded in giving economic advice by word when he told his audience, ‘one thing you need to create wealth in any country is  stability, is political stability having good relationships with your neighbours.’ Neither did he come padded with his face mask on when he graced the lunch hosted by Speaker Mahinda Yapa Abeywardena and Sports Minister Namal Rajapaksa in his honour. The occasion was attended by a host of parliamentarians and cricketers, many of whom were also maskless, including Kumar Sangakkara, following in the style of their cricketing idol. Notable amongst them, posing wide eyed with awe for photos with Khan, were Arjuna Ranatunga, Sanath Jayasuriya and Muttiah Muralitharan all of them without masks. True, Khan has been vaccinated with the first dose earlier in the month. But scientists have warned that vaccinations alone will not give one complete protection, especially if one hasn’t still got the booster dose four weeks later. They have also warned that even if one is vaccinated, he or she will certainly still remain a potential carrier. The vaccine doesn’t prevent transmission. Perhaps some MPs and some cricketing personalities, both local and foreign, suffer the belief that the first COVID jab automatically transforms them to some sort of demigods before whom COVID prostrates in meek surrender. On February 2 Khan was publicly injected with the Chinese made Sinopharm vaccine, the second man in Pakistan to be vaccinated, the first being a doctor. Unlike in Lanka where the President and Prime Minister had taken a back seat and let the front line workers be vaccinated first, Imran Khan opened the bowling for the Pakistani vaccination programme which was made possible with China’s donation of 500,000 doses to debt ridden Pakistan. After thanking China profusely, the newly vaccinated Khan declared that the vaccine will then be administered to health workers working with Covid-19 patients, followed by the elderly in the high-risk age group. He then appealed to the public to follow the Covid-19 standard operating procedures and wear a mask. “If Allah has blessed Pakistan as compared to the rest of the world, we should be grateful for that and take full precautions,” Imran Khan emphasised. “If there is anything that slows the spread of the virus, it is a mask.” So why, the double standards? Why? Does the virus move only on slow turning Pakistani wickets but remains suspended in flight on thrice blessed Lanka’s fast paced pitches that the wearing of masks in Colombo is rendered redundant? Before arriving in Lanka, the Pakistani Prime Minister was billed, at his own request, to be accorded the honour to address Lanka’s Parliament in the same way India’s Narendra Modi had been honoured when he visited the island six years ago in March 2015. But, alas, the honour was hastily rescinded in the previous week when the Speaker of the House, Mr. Abeywardena, conveyed to the Foreign Ministry his reservations as to the prudence of Imran Khan visiting Parliament due to the prevailing COVID concerns. Was it this snub that prompted Mr. Khan to flagrantly flout Lanka’s COVID protocol and stubbornly ignore the requisite face mask?  Did Lanka have to grin and bear behind its own face mask this diplomatic insolence since it was canvassing Pakistan’s support at the ongoing Geneva sessions which had the Lankan Government in the dock?

Buddhist monk to bat for Sri Lankan cricket The significance of Navam Poya — which fell this Friday — a day on which Gautama the Buddha proclaimed the Code of Discipline which would thereafter govern the conduct of every disciple who entered the Noble Order of Bhikkus, may have been the last thing on Ven. Battaramulle Seelarathna Thera’s mind when he handed over his nomination papers on Wednesday to Sri Lanka Cricket to contest for its post of Vice President at the forthcoming elections scheduled to be held on 20 May. SEELARATNE THERA: Loves cricket The Ven. Thera’s explanation for his decision to depart from the Code of Discipline and engage in pursuits lying in the realm of the laity is that he is enamoured with Lankan cricket and wishes to uplift the welfare of its players, root out corruption and transform the squad to a match winning team again. He says: ‘We love cricket very much. But today the game is completely ruined. We don’t want to play cricket. We need a better administration to stop fraud and corruption. If I come to power, I will not allow anyone to betray the game of cricket.’ Fortunately for his future deliverance from the bonds that bind one to samsara’s cycle, his unbecoming ambition to dabble in lay affairs was cut short. He was ruled run out for being out of his crease before a single ball was bowled. His nomination papers forwarded through the St. Anthony’s Sports Club of the Northern Province, was rejected on Thursday on the ground he had not satisfied the eligibility requirement to contest the post. Perhaps, the Sasana Elders should help the straying monk return to the path the Buddha trod. And urge him to undertake a refresher course on the quintessence of the Dhamma the Buddha preached: “Of things that proceed from cause; their cause the Tathagata has said; and also their cessation:  Thus teaches the great Samano.”

COVID-19 VACCINATION AND THE VIP LIST

by Sanjeewa Jayaweera- 2021/02/28

This article is a sequel to the one I wrote last week titled “Why did the MP’s jump the vaccine queue?” There is a saying, “A week is a long time in politics.” Quite appropriate. The reverberations due to the MP’s jumping the vaccine queue is still ongoing. In most talk shows aired on privately-owned TV, MPs belonging to the government are still questioned about this.

A couple of hilarious responses that I heard during the week were: If a few MP’s were to test positive, then parliamentary sittings will need to cease and, in that case, the country could not be governed. Expenditure need to be approved by Parliament, they said. Fortunately, a sharp-witted young opposition MP with curly hair retorted, “But we had no Parliament for nearly six months during the first wave after the Parliament was dissolved and elections held only in August 2020.” Yes, indeed, the President ran the country, some may say more efficiently. Besides, what about the money saved if Parliament is closed along with its restaurant serving MPs sumptuous subsidized meals and hopefully their not getting paid? Another worthy said, “The MP’s had to get vaccinated to show the people that it was safe.” The same logic was made in defence of the relatively young Sanath Jayasuriya getting the jab well ahead of others.

At times I wonder why the party leaders allow such MP’s on TV shows? The government’s credibility is eroded when MP’s make statements that the public ridicule. By mid-week, the focus of social media was about a list of names captioned “Rosy’s list” which was widely circulated. This list, disowned by Colombo’s Mayor Rosy Senanayake, carries names of affluent people living in Colombo and its suburbs. They are alleged to have got preference at the Public Library vaccination center. Somebody I know on that queue for nearly four hours told me, “Machang, the Colombo seven crowd is as bad as the Maradana crowd!” They were pushing like in a rugby scrum. No social distancing or courtesy extended to those in wheelchairs. It is another unsavoury episode though not verified.

In Peru, both the Health Minister and the Foreign Minister resigned, while in Argentina, too, the Health Minister resigned. They all quit as they had favoured either their friends or colleagues in getting the vaccine ahead of others. I just now read that the CEO of Canada’s largest pension fund resigned as he had flown to Dubai to get the vaccine. In Canada, traveling overseas is restricted due to the pandemic. This trip was therefore deemed inappropriate. In this instance it is not a public official who is being made accountable for his actions. In Sri Lanka, politicians do not resign. So we might as well not wait for the impossible even from the loudest proponents of good governance.

What about those on the list? I know a few, and they are generally law-abiding people. However, “Influence peddling” here is widespread and a favourite currency along with money to get anything done. Once favours are elicited from politicians, there’s a payback and a vicious cycle kicks in. Many who boasted that they got the jab through influence and wore it as a badge of their importance in society are now a bit wary about admitting their indiscretion. I need to acknowledge that many in the list were over 60-years, and lived in the Colombo Municipal area. However, it is possible that adult children aged around 30-years too got the jab.

On a TV talk show, the head of the Public Health Inspectors Union expressed concern about the Ministry of Health’s ever-changing criteria about who should get the jab. He said that within the last couple of weeks, there had been three separate circulars. Initially, it was only over the 60s; then it was only those between 30 and 60 years-old and now back to only over 60 years. As I write this article, I noticed a news alert saying that those aged between 30 and 60 living in high-risk areas will again qualify for the jab.

There seems to be an almighty confusion with the State Minister concerned claiming on TV that she is not consulted nor kept in the loop. Quite a serious charge. Some medical professionals expressed their dismay that priority is not being given to those over 60-years because death is highest in this group.

Many will be glad that the controversy surrounding the burial of the Muslims dying of Covid-19 has now been resolved. Most will wonder what made the committee entrusted to make a recommendation to change its stance on this matter? The controversy was allowed to simmer to the extent of various overseas countries getting involved in the debate. This is something that will puzzle many.

I want to conclude on a happier note by saying that on Friday morning, I was able to get the jab. It was administered through the Ministry of Health program for those living in Nedimala in the Dehiwela Municipal area. The entire process was well streamlined. The youthful and very capable Gramasevaka overlooking my area contacted me by phone on Wednesday and told me that people over 60-years whose names are in the voters register would be vaccinated on Friday. I also spoke to the PHI, who confirmed the location and the time when the program would commence.

On Thursday evening, a mobile truck went around saying that our street had been allocated a particular time for the vaccination. I went in the morning and stood in the queue for 50 minutes before gaining entry. Nobody tried to jump the queue. It was very orderly, quite different from the Public Library. The Gramasevaka was at the entrance and identified me as an area resident and my Identity card was checked for the age qualification. I was in a tent for another 45 minutes before being vaccinated. Twenty minutes later I was told that I could leave. All it took was two hours. I commend those involved in the entire vaccination program at Dehiwela on Friday for the orderly and efficient manner in which they did their job.

I also would like to congratulate the government for having secured one million doses over a short period. No doubt 500,000 was a gift from the Government of India. However, it looks as if one million people in Sri Lanka will be inoculated with a single dose by the middle of March. This is while as many as 100 countries worldwide are yet to receive a single dose of the vaccine.

Changing Landscape Of Local Politics

By Suren Sumithrarachchi –

Dr. Suren Sumithrarachchi

Calling themselves Ceylon National Congress

Local elite during British rule

Later to become the UNP

To fight for freedom from imperial rule.

 

First to govern independent Ceylon

No differently from the British times

Though initiated some positive changes

Also earned the ire of masses. 

 

Came 1956 and the Bandaranayaike rule

Politicians were from many a school

Used office to change culture anew

Elitism to the backdrop flew.

 

Peons in offices, even street vendors

Into the hallowed hall allowed

Not realising its sacred status

The speaker’s chair they desecrated.

 

Changes made all across the board

Language policy, Sinhala alone

Nationalised the port and busses

No fear or concern for causing losses.  

 

Gradually to grow culture of impunity

Politicians to have all supremacy 

In every matters of public domain

Over administrator, public to claim.

 

Public administrator not to give up

Followed strictly the rules up tight

Soon to earn the politicians’ wrath

To be stifled by regulations tight.

 

Initially broad-basing the CCS

Later abolition of the PSC

Gradually brought the administrator public 

Under the political arm to grip. 

 

To make decisions not based on merit

But instead, on the political will

To satisfy the needs of party

Supporters so they will.

 

Ensure the vote at next election

Supportive to those in power

To sustain themselves in power further

To aggrandise themselves for ever.

 

Comes 1977, PM Jayawardena J

The 5/6th majority in his hey day

To turn parliament topsy-turvy

Usurping its power all the way.

 

Making himself country’s President

The only all powerful man found yet

Claimed he had the powers needed 

To do anything with what God provided.

 

Other than to make a woman a man 

Or conversely a man to woman

Above the law in matter all local

No court can question however legal.

 

Drove fear in minds of parliamentarians

Taking in hand their resignations 

Ruled the country with an iron hand

Opening economy in his mother land.

 

To import everything, pins and clips included

Progressively ending everything manufactured

Encouraging people to abandon thinking

To adopt open economy biased towards trading.

 

Textile mills making quality materials

Gave way to cloth imported

People began to dance their way

In everything imported having to pay.

 

From the sparse foreign currency resources

Eating into nation’s wealth

Making country poorer by the day

No concern for the coming bad day.

 

At the doorstep, deceit and corruption

All bi-products of profit orientation

Of an economy moving towards trading

Not realising the disaster growing. 

 

Contribution from agriculture drops

Industry contribution also drops

Next casualty becomes employment

Those unemployed then take to corruption.

 

Other social evils also rise

Family values at a price

The serenity of culture that prevailed

Soon appear to have derailed. 

Read More

Value added industrialisation for accelerating ‘Made in Sri Lanka’

Market is the central problem for Small and Medium scale entrepreneurs to position and survive due to quality issues and additional cost factors. However, it is the accountability of entrepreneurs to launch a quality and modern solution to win the target market – Pic by Shehan Gunasekara  

Thursday, 25 February 2021

Industrialisation 

Industrialisation determined the rate of growth of many economies diverting from traditional agriculture to machine-driven paradigms while initiating rapid and structural changes to move in to developed trajectory. Industrialisation has transformed its expedition from the First Industrial Revolution until the Fourth Industrial Revolution today by remapping the boundaries of Global Competitiveness. More specifically, the global competitiveness has been shifted from the West to the East throughout decades. 

Newly Industrialised Countries (NICs) witness the shift of global competitiveness being partners of technological revolutions in the Asian continent. https://corporatefinanceinstitute.com/resources/knowledge/economics/newly-industrialised-country-nic/. The degree of value addition is exposed as the top-secret cause behind the success. Industrialisation brought economic prosperity for economies in terms of increased gross domestic product, per capita income, export market share, employment and related other industries, etc. 

Sri Lankan context of industrialisation 

Sri Lanka was partially affected by the First and Second Industrial Revolutions during foreign invasions and revolutionary practices were replicated especially during the British rule. Electricity as the invention of the Second Industrial Revolution gave a new birth to locals to enhance their standards of living via consumption experience but comparatively less in terms of production processes. 

I consider export oriented and import substitution as the main branches of the industrialisation. Therefore, Sri Lanka has to focus on the both simultaneously since focusing on merely one has substantial opportunity cost in terms of foreign currency. The export orientation was recently observed in the Sri Lankan industrialisation effort while neglecting the import substitution, caused uncomplimentary economic consequences such as foreign exchange depreciation, trade deficit and addicted long-term consumption patterns, etc. (Refer Annual Report, External Sector Developments, Export and Import Compositions). 

Nevertheless, the apparel sector being the largest industrial gross income breadwinner has to settle its import bill for textile accessories, approximately more than 45% from its Gross Income. This mirrors the significance of value addition within the boundary in terms of domestic production. It is a true fact that none of the economies in the world are self-sufficient. As per the economics it is the comparative advantage which determines the national identity or the symbol of global competitiveness. My concern is the given-up production efforts that can be implemented within the boundary. Apart from apparel, there are sectors to be focused since apparel sector is merely on buyer’s request. 

It was extremely glad to see the military weapons and armed vehicles manufactured in Sri Lanka during the Independence Day Ceremony. Certain high-tech products such as Air-Bag Pop-Up Sensor and Vega car are also position the prestige of Sri Lankans in the globe. A spare parts supplier for Old-British Morris Minor cars from southern Sri Lanka serves the market need. The recent investment on tyre manufacturing plant is appreciated in economics since it not only brings export income but also minimises import expenditure while creating multiplier effects in the economy. In parallel I regret to refer some of the import statistics which showcase unconscious abandonment of primary industries as a nation. 

‘Made in Sri Lanka’ and entrepreneurial spirit 

The intention writing this was originated with the title seen as ‘Made in Sri Lanka’. Apart from politics, it is a dream of all Sri Lankans to see Made in Sri Lanka at least in a few products during an era of importing commodities such as kites, cards, salt, sugar, pencils and 

incense sticks, etc. 

Entrepreneurial spirit is understood as one of the most important resources to influence global competitiveness during recent decades. 

Entrepreneurship as an exceptional human skill is the ability to deliver human creativity in the form of an innovation to the market. Developed human thinking has driven the world towards revolutions. The contrary lack of entrepreneurial spirit has caused Least Developed Countries (LDCs) to be dependants being the market for innovations. According to Schumpeterian Creative Destruction Theory innovations due to entrepreneurship destroy existing market equilibriums and create new ones that the world is experiencing today.

Therefore, it is high time for Sri Lanka to persuade entrepreneurship as the channel of Value-Added Domestic Industries at least up to Small and Medium scale within the ongoing economic conditions to survive. It is a bitter truth that most Sri Lankan industries intensely rely on imported inputs. Therefore, the Government decision to restrict imports or imposing taxes on the same cause to contractionary effects. However, ‘Made in Sri Lanka’ will gradually create an atmosphere at least to pay attention on the areas that have been untapped. 

Government sponsorship and community acceptance 

National policies designed and powered by the Government being the partner of industrial growth are naturally experienced by many developed nations in the world while investing to adopt the Fourth Industrial Revolution. In case of Sri Lanka the continuous support for entrepreneurs to survive at the infant stage is indispensable in terms of institutional support with possible financial assistance. Sometimes entrepreneurs entail the recognition for their newest invention and the innovation respectively. 

Market is the central problem for Small and Medium scale entrepreneurs to position and survive due to quality issues and additional cost factors. However, it is the accountability of entrepreneurs to launch a quality and modern solution to win the target market. On the other hand, shifting the mind-set of locals is also vital to boost the local demand to encourage new suppliers to the market. Therefore, Made in Sri Lanka should go hand in hand both production of commodities and mindsets of locals to be in line. 

Prospects 

Though the prospects and challenges are stated together traditionally, it was decided to confine the focus only on prospects as Sri Lankans anyway have to overcome challenges. The comparatively higher literacy rate of 92.5% (Annual Report, CBSL, 2019) is the key factor since the significance of implementing Made in Sri Lanka can be easily delivered. Human capital and semi-skilled labour force portion, entrepreneurial intention of youth than being an employee, economic benefits in terms of income and employment generation, Government support, the background set by the COVID and nationalistic emotions and attitudes would also be counted as prospects. I believe Made in Sri Lanka will create an era for the next generation to define Sri Lanka as a developed nation with improved standards of living and locals not interested in migrating any longer. 

(The writer is a Senior Consultant/Lecturer at the School of Business, National Institute of Business Management.)

Khaki fury at Peliyagoda Police rattles law fraternity

Peliyagoda police station

27 February 2021

Torture and murder at police stations are nothing new in Sri Lankan history. Though many international human rights organizations have urged that the Sri Lanka police needs urgent reformations over the years little or nothing has constructive happened to clear the black marks on the police department.

The latest incident of police torture is reported from the Peliyagoda Police Station where a final year law student who was allegedly assaulted has suffered grievous injuries. On February 24 Migara Gunaratne, a final year law student at the Law College of Sri Lanka,  on the instruction of his brother Charitha Gunaratne  had visited the Peliyagoda Police Station to provide a meal to one of his brother’s (Charitha’s) client  remanded at the police station. Migara was then subject to an assault by police personnel inside the Peliyagoda Police Station.  

Maithri Gunaratne told the Daily Mirror that the incident was that of a mistaken identity. “Both my sons look alike for a person who does not know them very well. They (the police) thought it was my eldest son. The police had even said ‘you had caused a problem here and is your sickness over now,’ It was then that Migara had said that it was not he who had. It was then that the police trumped up charges against Migara.

 

Assaulted Migara Gunaratne

“Eleven policemen including the Officer-in-charge of the police station, Linton Silva, had mercilessly assaulted Migara. During the assault my son had mentioned my name and asked as to why they were beating him up and what wrong he had done.  Then the assault on him somewhat stopped. Then they had taken him to the Judicial Medical Officer (JMO) and it was thereafter only that everything had come up. The JMO had ruled that given the condition of the patient he could not be sent off and he needed to be warded,” said Maithri Gunaratne. 
Attorney-at-law Charitha Gunaratne, told the media that Migara  was brutally beaten up by at least ten policemen when he went to give  some food to his client, who was detained at the Police Station, on February 25 night.
He alleged that the policemen had mistaken his identity and  brutally assaulted his brother under the assumption that it was him.

“On February 23 I was instructed by my Senior Counsel to visit the Peliyagoda Police Station to represent a client of his. At the police station I was informed that my client was being held in the special crimes unit and I saw my client being intimidated by a person in civil attire. I immediately stepped in and told that person, whom I believe was a policeman, that  he was my client and I was there to represent his interests as an Attorney-at-Law and produced by the Bar Association of Sri Lanka  (BASL) Identity Card to verify my credentials,” Charith said.
He said that the man in civil clothes stepped aside without verifying his credentials. “I was duly informed by my client that he was brutally assaulted by the cops on countless occasions while in their custody and they had threatened to pin unrelated drug charges on my client and ensure he will be imprisoned if he did not heed to the demands of the policemen! (mind you, my client was being held for totally unrelated matters linked to financial issues). I made my way out to make a phone call and when I returned I heard the person who was in civil clothes threatening my client in the presence of other suspects who had been brought to the police station for drug related offences and it was quite easy for them to accuse him with similar charges,” Charith said.

"Eleven policemen including the Officer-in-charge of the police station, Linton Silva, had allegedly assaulted Migara. During the assault my son had mentioned my name and asked as to why they were beating him up and what wrong he had done"

“Since I cannot designate as to what was the rank of the person who was in civil attire, I addressed him as Sergeant whereon he started addressing me in slang (using Sinhala) and filth and came towards me. The Chief Inspector of the police station, whom I heard was Linton Silva, joined that man to intimidate me and demanded my credentials. Once I showed him my B.A.S.L. ID card he scribbled something on his Notebook.
“I simply said to the Inspector that I had no option, but to address the person in plain clothes as Sergeant since he wore plain clothes while on duty.

“Then the Inspector accused me of being drunk. I challenged the officers to subject me to a breathalyzer test to confirm whether I was drunk. I held my ground until my client pleaded with me to leave as he would have to face the wrath of the policemen if the situation escalates,” added Charith.
He said that he had left the premises and later informed the Bar Association of Sri Lanka and the relevant Police Department about the incident.

“Since my Client was of the opinion that my presence would be detrimental to his safety and health under the police custody, I asked my Brother, Migara (3rd Year Student at Sri Lanka Law College) to drop some dinner for my client on February 25. As my brother went there, to give the food, he was brutally beaten by at least ten policemen. It is assumed that the Policemen had mistaken his identity and had attacked him under the presumption that it was me,” he alleged.

“Furthermore they only stopped beating up Migara after he had mentioned that he was the son of Maithri Gunaratne, our father, and then an SI instructed his subordinates to charge him for obstructing police from performing their duties, because they knew that a problem would crop up.
They further threatened to even make him a suspect in a drug offence,” Charith said. 

Policemen interdicted 

All the police officers including the OIC Chief Inspector Linton Silva who were alleged to have involved in the assault of law student Migara Gunaratne have been interdicted and a special investigation is  in progress.
“The services of the police officers have been halted and further action against them would be taken,” Public Security Minister Dr. Sarath Weerasekara told the media. 
The Minister who condemned the attacks on public taking place at police station said  that he has requested the Inspector General of Police to probe the incident.

Bar Condemned the attack 

Newly elected BASL President Saliya Peiris PC in a tweet condemned the attack on the law student and described the incident as ‘appalling’. Peiris has noted that  ‘there should be zero tolerance of police brutality.’
“The news of a young final year law student Migara Gunaratne being subject to police brutality at Peliyagoda is appalling. There should be zero tolerance of police brutality. The perpetrators must be swiftly dealt with and prosecuted,” he further Tweeted.

"There should be zero tolerance of police brutality. The perpetrators must be swiftly dealt with and prosecuted"

Speaking on behalf of the BASL its Secretary Rajeeva Amerasuriya said that the Bar is strongly condemning the incident that had taken place at the Peliyagoda Police Station. 
“We are condemning this incident and will be taking whatever necessary action against such incidents.
“The Bar is against these types of incidents and this should not happen and cannot happen,” he stated. 

“Police torture is a day today happening”-Right to Life

“This is only one incident of police torture that takes place in many police stations. Due to the importance of the persons involved this incident was highlighted,” Philip Dissanayake, Executive Director of Right to Life, an organisation working against the police torture, said.

"This is only one incident of police torture that takes place in many police stations. Due to the importance of the persons involved this incident was highlighted"

Dissanayake said that over the years there were a large number of incidents regarding police tortures that have taken place. “Even though we did not  receive many reports this is a national question and has to be attended to very soon. We have been demanding reforming the police, but that has not happened,” he claimed.