A Brief Colonial History Of Ceylon(SriLanka)
Sri Lanka: One Island Two Nations
A Brief Colonial History Of Ceylon(SriLanka)
Sri Lanka: One Island Two Nations
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Thiranjala Weerasinghe sj.- One Island Two Nations
?????????????????????????????????????????????????Wednesday, August 30, 2017
Sri Lanka: Let’s Continue the Political Cohabitation
With regard to strategic assets such as ports and airports Sri Lanka should take into consideration and be mindful of the security interests and concerns of its giant neighbour, again in its own interest, regional cooperation on matters of security, trade and investment being the way forward for Sri Lanka.
( August 28, 2017, Colomnbo, Sri Lanka Guardian) August
2017 marks two years of the National Unity government formed after the
general elections of August 2015, which followed the historic
presidential elections earlier that year, which ended unceremoniously
and two years ahead of schedule the rule and reign of the Rajapaksa
clan. Ending Rajapaksa rule, was a remarkable rainbow coalition of
practically everyone else but the Rajapaksa’s’ their UPFA, Mahinda
Rajapaksa having the unique skill of uniting almost every other
political shade of opinion in the country against himself, from the
Sinhala nationalist JHU, to the JVP, the UNP, General Fonseka’s
Democrats, every Muslim party and the TNA, in a broad rainbow coalition
against Rajapaksa rule. The general election which followed essentially
witnessed President Sirisena’s political allies win power and confirmed
the decline of the Rajapaksa brand, the UPFA’s popular vote declining
between January and August that year. Two years on, there seem little
nostalgia for a Rajapaksa return, their political organs of the Joint
Opposition and the SLPP, blowing hot air and some barely concealed
racism but not making much traction either in Parliament or outside.
The Government of President Sirisena and Prime Minister Wickremesinghe
was elected on a three-fold agenda of greater democratization, economic
reform and reconciliation. It is perhaps in the area of democratization
that the Government has the most impressive gains to date, with the
passage of the 19th Amendment to the constitution and the Right to
Information Act, the latter with the potential to significantly increase
the transparency and accountability of Sri Lankan governance.
In terms of reconciliation the Government co-sponsored the UNHRC
resolution on reconciliation in Sri Lanka demonstrating its own
commitment to the same, cooperates with UN Special mandate holders and,
opened up civil society space in post war rehabilitation, facilitated
the smooth functioning of the provincial councils by replacing
intransigent retired military governors with civilians in the North and
East and released significant amounts of lands occupied by the military
during the conflict, including the Mylatti fisheries harbour in the
North and Sampoor in the East.
The Tamil Diaspora groups were engaged with, de-proscribing a large
number of Diaspora organisations and persons and encouraging them to be
partners in rehabilitation and post war reconstruction, while the Office
of Missing Persons (OMP) Act, was also passed. There still remains much
to be done in relation to reconciliation, especially making progress on
devolution and constitutional reform. Tamil political opinion and
actors have chaffed though at the complicated politics and inherent
delays in effecting further progress on reconciliation measures.
Economic reforms
It is however in the area of economic reform and development that there
has been some disquiet with the voting public expecting a quick “good
governance dividend” which it has not seen forthcoming thus far.
However, Rome was not built in a day and economic reforms take time to
bear fruit. But most importantly Sri Lanka’s economy was set for a hard
landing, a correction after the second Rajapaksa terms borrow and spend
binge. Government investment on borrowed funds in white elephant
projects of dubious utility value, like the Mattala airport and the
Hambanthota port, meant that a slowdown from ceasing the borrow and
spend binge was inevitable.
One of the best kept secrets in recent times has been the Mahinda
Rajapaksa decision to call presidential elections two year before they
were due. His astrologers, magicians and soothsays notwithstanding it is
quite likely that Percy Mahinda Rajapaksa was well advised that he
could not indefinitely borrow and spend on projects that gave no
economic returns. The election of January 2015, might well have been his
bet to avoid an election in the likely economic pain his policies were
bringing and would bite by 2017.
Needless hot air over leasing state assets
A key strategy of the economic reforms of the government has been
attracting foreign direct investment and as western commercial capital
has been harder to access amidst fierce Asia’s wide competition for the
same, the Unity Government has sought to change the policy of borrow at
commercial rates adopted by the Rajapaksa regime to a lease and invest
equity approach to regional economic giants, both India and China. Now
the Rajapaksa Administration ignored India and courted only China, to
the detriment of Sri Lanka’s national interest, while the National Unity
Government once again rebalanced Sri Lanka’s foreign policy, a return
to the status quo ante, of our previous policy of friendly relations and
close economic ties with both India, our largest trading partner and
China our largest foreign investor.
There has been needless hot air and distortions over the ETCA with
India, leasing the oil tank farms to the Indian oil company, the Mattala
airport to also to an Indian firm and of course the Hambanthota port
deal to a Chinese state owned fame which incidentally cost the former
Justice Minister his job for intemperate comments regarding the
Government approved US Dollar one billion deal.
The political hot air over leasing public assets to foreign investors,
is uncalled for, since leasing is merely a project financing option,
which is definitely more beneficial than borrowing for that same public
project or asset. In the case of the Hambanthota port or the Mattala
airport, sovereign borrowings to build and operate the projects,
incidentally at a loss as well, essentially mortgages the country’s
future tax revenues to build and operate these projects. The option of
leasing is merely a financing option, which is definitely preferable to
massive loans at commercial rates of interest.
With regard to strategic assets such as ports and airports Sri Lanka
should take into consideration and be mindful of the security interests
and concerns of its giant neighbour, again in its own interest, regional
cooperation on matters of security, trade and investment being the way
forward for Sri Lanka. All the economic growth forecasts for the future
predict an increasingly robust growth for the Indian economy which would
see its economy outpace even the Chinese one. Sri Lanka must position
herself early through smart diplomacy and an enlightened foreign policy
to benefit from the regional economic boom, poised to be powered by
India.
featured image: Former President and the driving force behind the present ruling alliance, Chandrika Bandaranaike Kumaratunga