Who or what is Ranil accountable to – Modi or Parliament?

MONDAY, 25 JANUARY 2016

“The proposed Indo-Sri Lanka Economic and Technology Cooperative Agreement (ETCA) would include freeing services sector and computer and information technology services. It states the rough framework of the pact has been made available to India. Making it available to India without informing about it to anyone in Sri Lanka is a display of the government’s subordination to India. Who or what is Ranil accountable - to parliament or Modi – should be sorted out,” said the National Organizer of the JVP Parliamentarian Bimal Rathnayake  speaking at a media conference held at the head office of the JVP at Pelawatta today (24th).

Speaking further Mr. Bimal Rathnayaka said, “There is information that the government is going ahead with the controversial ETCA. There has been a dialogue regarding this agreement among professionals, industrialists, entrepreneurs and trade unions in our country for more than a decade. Despite Presidents Chandrika Bandaranayke and Mahinda Rajapaksa were interested in the agreement, they could not sign it. They couldn’t do it as it was not possible to prove that the agreement was advantageous to our country. As such, Maithri-Ranil government’s haste to sign the agreement in such a situation is questionable and is against the mandate it received from the people.

In a letter sent by Minister Malik Samarawickreme in response to a question we asked in Parliament states the primary intention of the discussion is to apprise the Indian parties the framework that would broaden Indo-Lanka trade agreement that limits only for trade matters to make it an agreement of cooperation and economic affairs. The draft of the agreement has been made available to Indian delegation and their response will be informed at the end of January, 2016. The framework of the agreement would be signed in February, 2016 while the final economic and technological cooperation agreement would be signed in mid 2016.

The proposed agreement allows the professional labour market to be opened and it would include ship building and information technology. It is also stated that the draft has been already made available to India. Making it available to India without informing about it to anyone in Sri Lanka is a display of the government’s subordination to India. Who or what is Ranil accountable - to parliament or Modi – should be sorted out.

Former President Chandrika Bandaranayke Kumaratunga signed a free economic agreement with India in 1998. As information technology sector is undefined it could be related to any profession or sector. It could include any profession from a data entry clerk to an engineer. According to CEPA agreement signed with India by Ranil Wickremesinghe Indian workers could be employed any profession in banks, services, businesses, retail trade as well as fishing in deep waters. The danger of such an agreement should be realized without being limited to one sector. For the government could wriggle through opposition of the people and sign the agreement stating that sector has been exempted from the agreement.

The government is trying to put the engine on the track so that compartments could follow. Countries like Nepal that have signed such economic agreements with India are being dominated by India economically, socially as well as culturally.

India’s economy is large. However, the most poverty stricken people and the unemployed in the world live in India. 94% of the labour force is improperly employed. Recently applications were called in for 368 vacancies for office assistants. 2.3 million had sent in applications. Among them 150,000 were graduates; 24,969 were postgraduates. 250 of them had doctorates. The minimum qualification asked for was school education and ability to ride a cycle. According to another website 85% of the graduates in India are unemployed. 17% qualified in Information technology are unemployed. This is the type of situation in India. Our governments should consider such situations before they sign agreements. WE are not happy about this situation. We are sorry for the people in India who have been made destitute by their government.

In such a situation the country would be confronted with two issues if the labour market of the technological sector is opened. The slashing of salaries of the lower strata in the sector would be unavoidable. The middle and higher grades in the sector get more than US$1000 at present. However, if Indian workers invade this section for lower salaries professionals will have to leave the country. This would lead to brain drain.

At present IT sector companies that are opened under BOI should recruit a minimum of 15 Sri Lankans. These companies get massive tax reliefs. Under the proposed agreements a large number of Indian could come in as workers. Someone, without knowing facts, would say it would bring in a lot of foreign exchange. However, this wouldn’t happen as Indians are culturally meager spenders. In many countries there are special restrictions to limit Indian worker s from entering those countries. In such a situation we, who have a very small economy, opening for the Indian labour market is harmful.

Trade unions of doctors, engineers and accountants have seen the destructive nature of the agreement. Stating that such professionals would get job opportunities is a myth. It is impossible to think that Sri Lankan professionals would get job opportunities in a country where a large number of languages are used and professionals are suffering from unemployment.

As the JVP we do not think of an isolated journey from the world. It is not improper to sign agreements where necessary. It is not relevant whether the agreement is signed with India, China or any other country. However, we should not lose our economic independence when signing such agreements. When obstacles that exist when exporting from Sri Lanka to India are mentioned the response of the Indian team has been that such obstacles are compatible with India’s regulations.

The Minister in his letter states that discussions were held regarding directions that are outside custom duties and the Indian delegation explained that they were national directives commonly followed for all countries.  This indicates that the agreement would not give us a special advantage. Also, Sri Lankan investors will have to sign various agreements with 28 states in India and 6 types of administrations in these states. This would be a difficult task. The government has not been given a mandate to sign such an agreement. Hence, the government should not sign this agreement. We call upon all professionals, industrialists, entrepreneurs and trade unions to unite to struggle to defeat government’s move if it signs the agreement without considering opposition to it.

We hope to have discussions with heads connected to professionals and service providers. The trade unions would struggle against it and we would make all efforts to oppose the agreement in Parliament.”