- Cabinet discusses permitting import of chemical fertiliser for tea industry
- Coalition partners and unions remain opposed to selling off state assets
- Gammanpila reveals present ownership of Trincomalee Oil Tank Farm
- Trinco Oil Tank Farm leased to India for 35 years through 2003 deal
- Govt. courts India to strengthen ties; assures EU of intention to repeal PTA
- India reiterates need to fully implement 13A and expedite Indian projects
President Gotabaya Rajapaksa last week decided to directly address the simmering dissension within the governing alliance by convening a special cabinet meeting last Thursday (7). The desire to take stock and move on was one of the main themes of the discussions held with government officials as well as ministers.
Last week was not an easy one for the Government, given the conclusion of two key foreign visits to the country. India’s Foreign Secretary Shri Harsh Vardhan Shringla’s visit to Sri Lanka was somewhat of a test of India’s relations with Sri Lanka. Also, the conclusion of the European Union (EU) monitoring mission that visited Sri Lanka to review the country and the EU’s General Scheme of Preferences-Plus (GSP+) trade concessions put the country firmly under the EU’s spotlight.
It is in such a backdrop that a special cabinet meeting was scheduled by the President. The meeting that commenced at around 5.30 p.m. was the first physical meeting that was held following the most recent Covid-19 lockdown that lasted over a month. The meeting, initially scheduled for one-and-a-half hours, had proceeded for nearly four hours.
The Cabinet of Ministers also held its usual weekly meeting earlier in the week under the patronage of Prime Minister Mahinda Rajapaksa via Zoom. The meeting was conducted in the usual manner and concluded after the scheduled meeting agenda was taken up. The Cabinet refrained from making any serious decisions on matters like the growing shortage of commodities as well as fertiliser.
It was afterwards that the President decided to convene a special cabinet meeting to address the key concerns faced by the country.
All cabinet ministers had to undergo rapid antigen tests prior to attending the physical cabinet meeting.
President Rajapaksa made a lengthy statement underlining the importance of self-criticism as a government to overcome shortcomings and focus on moving forward.
“We recorded a great victory at the presidential and general elections, which indicated the high expectations the people had for us. But the Covid-19 pandemic posed an obstacle for us in meeting these expectations. Due to Covid, we had to work with a limited number of people, but we now have to forge ahead under the new normal scenario,” Rajapaksa said.
The President noted that the country’s economy that was reeling following the 2019 Easter Sunday attacks was dealt a severe blow by the pandemic, similar to being hit by a double whammy.
However, the President further observed that Sri Lanka still performed better in comparison to some other countries in the region.
“Two years after assuming power, many people are now disgruntled with the Government and members of the Government are also not seen defending it. While the negatives are being publicised, the Government’s achievements are not being publicised,” Rajapaksa added.
Minister Wimal Weerawansa then pitched in, saying that there was no unity within the Government. “There are no interactions or discussion of issues which are very important. There has to be a constant political dialogue between all governing alliance members. It is the role of the Opposition to point out the negatives while the Government points out the positives,” he said.
Minister Vasudeva Nanayakkara noted that the group of 10 (G-10) governing alliance leaders holds constant discussions since the governing alliance party leaders do not meet as they should.
Responding to Nanayakkara, Minister Gamini Lokuge criticised the G-10 meetings, claiming they caused divisions in the governing alliance.
Nanayakkara reiterated that the solution was for the governing alliance leaders to have frequent political discussions. Minister Udaya Gammanpila noted that the alliance party leaders met every month during the time of the Joint Opposition.
After listening to the comments, the President noted that he would leave the political discussions for the Prime Minister to lead. “I’m not a politician and I do not want to do something I’m not equipped with. The Prime Minister has decades of political experience and he can give leadership to the political dialogue.”
Rajapaksa went on to note that he was frequently asked by some people as to why he does not act the way he did when he was Defence Secretary.
“At that time, I was the Secretary of Defence, and it was during a war. Now, I’m the President of the country and I’m accountable to the Government, Cabinet, Parliament, and the country. I cannot act like the Defence Secretary during the height of the war. I will be called a dictator,” the President said with a smile.
Referring to an area that gathered much dissention, the President stated that the people were disappointed that the Government had not implemented the policy of “one country, one law”.
Minister of Justice Ali Sabry informed the Cabinet of Ministers that the relevant laws were being drafted.
Minister Gammanpila pitched in saying that members of the Muslim community who had met him had expressed their support to amend the Muslim Marriage and Divorce Act (MMDA) and agreed to do away with many areas of concern. “The Muslim representatives said they wanted provisions to permit consensual divorce without going through the judicial process,” Gammanpila added.
Removing price controls
Minister of Finance Basil Rajapaksa also addressed the Cabinet, where he also resonated with the President’s view of the need to move forward with unity.
After making several statements on the shortcomings on the part of the Government, Basil addressed the issue of commodity shortages in the country. He said the shortages and impending shortages would add to the woes faced by the Government.
“In one way, shortages are worse than price hikes. When there’s a price hike, it is up to the people to make a choice. While some might be able to afford the relevant items, others might not be. But when there’s a shortage, it is not available for any person,” Basil explained.
He further noted that putting in place price controls was not helpful, as the importers would decide against importing commodities.
Minister Bandula Gunawardana also addressed the Cabinet, explaining the economics behind supply and demand.
It was finally decided not to apply price controls on milk powder, wheat flour, and cement, thereby allowing price hikes.
However, the President noted that the quantum of the price increases should be decided by the Consumer Affairs Authority (CAA).
The revised prices of these commodities will be effective from tomorrow (11).
Reconsidering fertiliser ban
Another key issue taken up for discussion at the special cabinet meeting was the shortage of fertiliser in the country and the growing dissension among the farmers against the Government.
Government ministers had been at the receiving end during the past few weeks, with farmers continuously protesting against the lack of fertiliser and the impact on their livelihoods.
Apart from paddy and vegetable farmers, the worst affected is the tea plantation sector. Hence, Minister of Plantation Dr. Ramesh Pathirana made representations to the Cabinet against the total ban on chemical fertiliser.
President Rajapaksa noted that although there had been opposition over the policy to ban chemical fertiliser to focus on organic agriculture, it had to be done.
“Even during the war, there was a lot of resistance, but despite the difficulties, we forged ahead and won the war,” the President said.
Dr. Pathirana, however, said that it was a different scenario in the case of the tea industry.
He went on to highlight that the tea sector brought in $ 1.2 billion in earnings to the country while also providing employment to over 500,000 people. “All this will be lost if the tea plantations are adversely affected by the ban on chemical fertiliser,” the Minister added.
After listening to what Dr. Pathirana and several other ministers said about the chemical fertiliser ban, the President agreed to take a step-by-step approach to the conversion to organic agriculture and permit a certain quantity of chemical fertiliser imports.
Following this decision, a discussion had now commenced to decide on the ratios of chemical and organic fertilisers.
Meanwhile, referring to the fertiliser issue, Chief Government Whip Minister Johnston Fernando told Parliament last Friday (8) that the Government was prepared to revisit and change its policies if it would benefit the people.
Meeting the President
Meanwhile, G-10 alliance leaders, along with the Sri Lanka Freedom Party (SLFP), last week met with the joint trade unions representing the power, port, and energy sectors to discuss the growing concerns over the deals being discussed by the Government.
A meeting was held at the SLFP Headquarters last Thursday where the trade unions discussed issues ranging from the Yugadanavi Power Station deal to the move to assign a plot of land in the Colombo Port to China and the alleged sale of prime properties in Colombo.
The governing alliance leaders had assured the trade unions that they too would support the struggle to safeguard national interest.
The meeting concluded with the party leaders informing the trade union collective that they would reconvene with them (trade unions) after holding a separate party leaders’ meeting.
Also, 11 party leaders of the governing alliance had signed a letter addressed to President Rajapaksa seeking an appointment to meet and discuss several key issues faced by the Government and the people.
The alliance partners had placed priority on the recent deal signed between the Finance Ministry and New Fortress Energy Inc. (NFE) of the US, which has paved the way for a monopoly in the supply of liquefied natural gas (LNG) to the local market, apart from the divestiture of a 40% stake of the Yugadanavi Power Station held by the Treasury.
The letter was signed by SLFP Leader Maithripala Sirisena, Democratic Left Front (DLF) Leader Nanayakkara, Lanka Sama Samaja Party (LSSP) Leader Prof. Tissa Vitharana, National Freedom Front (NFF) Leader Weerawansa, Pivithuru Hela Urumaya (PHU) Leader Gammanpila, National Congress Leader A.L.M. Athaullah, United People’s Party Leader Tiran Alles, Communist Party of Sri Lanka (CPSL) General Secretary Dr. J. Weerasinghe, Asanka Navaratne from the Sri Lanka Mahajana Party, Gevindu Kumaratunga from the Yuthukama National Organisation, and Ven. Athuraliye Rathana Thera from Our People’s Power Party (OPPP).
Oil tank farm controversy
While a collective of trade unions, together with a group of governing alliance leaders, joined forces to oppose the Government’s alleged moves to divest national assets to foreign entities, the Trincomalee Oil Tank Farm also returned to the spotlight last week.
The focus on the Trincomalee Oil Tank Farm gathered momentum following Indian Foreign Secretary Shringla’s visit to the oil tank farm.
The visit caused controversy, as speculation was rife that the oil tank farm was going to be vested with India.
The Petroleum Employees’ Union expressed concerns over the alleged deal to divest the Trincomalee Oil Tank Farm with India.
The trade union claimed that the deal to divest the tanks with India might be extended after the Foreign Secretary’s visit to the country.
However, the Indian High Commission in Colombo stated last week that the Foreign Secretary visited the Trincomalee Oil Tank Farm where Lanka IOC (Lanka Indian Oil Company) briefed him on developments undertaken at the Lower Tank Farms.
The possibilities for further strengthening India-Sri Lanka energy partnerships to enhance Sri Lanka’s energy security was also discussed.
Meanwhile, Minister of Foreign Affairs Prof. G.L. Peiris noted that a decision had not been made to extend the agreement between the Indian Oil Corporation (IOC) concerning the Trincomalee Oil Tank Farm.
“A decision has not been made as yet regarding the extension of the agreement between the IOC and the oil farm. We are discussing whether the project must proceed and how it should be done,” Prof. Peiris said at a news conference last week.
However, Energy Minister Gammanpila clarified that all 100 oil tanks in Trincomalee had already been handed over to India based on Indo-Lanka agreements signed in 1987 and 2003.
Gammanpila stated that the Government was looking at reacquiring these tanks.
“According to the letter between J.R. Jayewardene and Rajiv Gandhi corresponding on the Indo-Lanka agreement, the Trincomalee Oil Tank Farm can only be developed by India,” he said.
A letter sent by then Indian Prime Minister Gandhi on 29 July 1987 to President Jayewardene refers to the Indian oil tank farm.
Clause 2 (iii) states: “The work of restoring and operating the Trincomalee Oil Tank Farms will be undertaken as a joint venture between India and Sri Lanka.”
Meanwhile, an agreement signed by then Treasury Secretary Charitha Ratwatte, Ceylon Petroleum Corporation (CPC) Chairman Daham Wimalasena, and Lanka IOC Managing Director Mahadevan Nageswaran on 7 February 2003, titled “Agreement relating to the taking over of possession and related matters of the China Bay Installation of the Ceylon Petroleum Corporation”, clearly indicates the leasing of the oil tank farm to India at $ 100,000 per annum.
“Whereas the CPC is possessed of the China Bay installation consisting of 99 storage tanks deemed to be having a capacity of approximately 10,000 metric tonnes each and other ancillary facilities including premises, pipelines, pumps, loading/discharging facilities for petroleum products situated on the land, a sketch of which is at Annexure 1, hereinafter called and referred to as ‘the Storage Facility’ situated at China Bay in the District of Trincomalee in the said Republic,” the agreement stated.
It further states: “And whereas where the said LIOC has requested and the GOSL/CPC has agreed to lease the Storage Facility and the land appurtenant thereto to the LIOC for a period of 35 years on the terms and conditions contained herein.”
Under General Conditions Clause 1.1, it states: “Upon the execution of this agreement, LIOC shall take over possession of the Storage Facility upon the payment of a sum of $ 100,000 on account of handing over of such possession.”
“As agreed by the parties, an extent of 100 acres from and out of the land shall be released to the GOSL and the CPC from a mutually acceptable location. It is agreed that the GOSL and CPC shall not use the 100 acres so released to carry out any petroleum related activities,” the agreement had also stated.
It is learnt that the United National Front (UNF) Government that was in power in 2003 had decided to lease the Trincomalee Oil Tank Farm to India to ensure the safety of the installation during the war.
“There was no way to ensure the safety of the storage facility than to lease it out to the Indians. The LTTE would not have bombed an asset under the purview of the Indians, and it was so. The oil tanks were not targeted by the LTTE,” a senior minister of the then UNF Government told The Black Box.
Nevertheless, the incumbent Government was now trying to engage India in developing the facility and using it as a joint venture between Sri Lanka and India.
Indian pressure
India, meanwhile, had reiterated calls for the full implementation of the 13th Amendment to the Constitution, including the devolution of powers. India has also sought the early conclusion of projects funded by the Indian Government.
Foreign Secretary Shringla began his visit to Sri Lanka by seeking blessings at the Sri Dalada Maligawa, where he was received warmly by the Honourable Diyawadana Nilame of the temple, the Indian Embassy in Colombo said in a tweet. Apart from Kandy, during his visit to Sri Lanka, Shringla visited Trincomalee and Jaffna as well.
During his meetings in Colombo, Foreign Secretary Shringla had reiterated India’s position on the complete implementation of the provisions under the 13th Amendment to the Constitution, including devolution of powers and the holding of provincial council elections at the earliest.
“During his meeting with the President on 5 October 2021, the Foreign Secretary underscored the importance India attaches to expeditiously taking forward mutually beneficial projects, including proposals to enhance air and sea connectivity between India and Sri Lanka. The Foreign Secretary thanked President for his guidance and close co-operation in the defence and security sphere. Furthermore, he reiterated India’s position on complete implementation of the provisions under the 13th Amendment to the Constitution, including devolution of powers and the holding of provincial council elections at the earliest,” the Indian High Commission in Sri Lanka said in a statement.
However, Foreign Minister Prof. Peiris, when questioned about the call by the Indian official to fully implement the 13th Amendment to the Constitution, had remained silent on the subject of the 13th Amendment.
The Indian Foreign Secretary also held meetings with the Tamil National Alliance (TNA) delegation led by TNA Leader MP R. Sampanthan, a Tamil Progressive Alliance (TPA) delegation led by MP Mano Ganesan, and a Ceylon Workers’ Congress (CWC) delegation led by State Minister of Estate Housing and Community Infrastructure Jeevan Thondaman.
“The Foreign Secretary reiterated India’s long-standing support for the reconciliation that addresses aspirations of the Tamil community for equality, justice, peace, and dignity within the united Sri Lanka and in accordance with the 13th Amendment,” the Indian High Commission stated.
Meanwhile, during Shringla’s meeting with the President Rajapaksa, the latter had explained the relationship between China and Sri Lanka.
The President had given a comprehensive picture of Sri Lanka’s relations with China to Shringla and informed Shringla not to have any doubts about it.
President Rajapaksa had also emphasised that Sri Lanka would not be allowed to be used for any activity that could pose a threat to India’s security, since there was a clear understanding about the geographical location of the two countries.
The President had elaborated on the need to re-establish the friendship and relations between India and Sri Lanka that existed in the 1960s and ‘70s, and said that he was expecting to obtain India’s support in advancing the 1971 proposal made by then Prime Minister Sirimavo Bandaranaike to declare the Indian Ocean a peace zone.
Both sides had been of the view that the short and long-term steps that should be taken to bring relations between the two countries to a higher level should be correctly identified.
President Rajapaksa had further told Indian Foreign Secretary Shringla that he wished to create a conducive environment for the Tamils who left Sri Lanka, to return to the country and that he had openly invited the Tamil Diaspora and Tamils living abroad at the United Nations (UN) General Assembly to contribute their support towards making the Government’s efforts in this regard a success.
Steps taken by the Government for the development of the North and East were also explained by the President. He had said that more than 90% of the lands acquired during the war for security purposes had now been released while the families of missing persons were being compensated.
Emphasis was also paid to the need to expedite the resolution of other issues that arose during the war.
A comprehensive environment has been created for investment opportunities in Sri Lanka, and the President said that Indian investors would also be openly invited to invest.
Meanwhile, a contingent of 120 army personnel of the Indian Army arrived at Mattala Rajapaksa International Airport (MRIA) on 2 October to participate in the eighth consecutive iteration of the joint “Mitra Shakti” exercise between Sri Lanka and India, which began last Monday (4).
An all-arms Indian contingent for “Mitra Shakti”, headed by Commanding Officer Col. Prakash Kumar, was welcomed by ex-Mithra Shakti Deputy Director Brig. B.N. Godellwatta, together with Indian High Commission in Sri Lanka Defence Attaché Captain Vikas Sood, at the airport.
Two years after its seventh edition was held at the Foreign Training Node in Pune, the eighth edition of the India-Sri Lanka bilateral joint exercise, Mitra Shakti, was ongoing at the Combat Training School in Ampara, Sri Lanka for 12 days, from 4-15 October.
Assurance to EU
The EU sought a timeline from Sri Lanka to address concerns on the Prevention of Terrorism (Temporary Provisions) Act (PTA).
The issue was discussed when an EU delegation held talks with President Rajapaksa last Monday.
The EU representatives, who paid special attention to the PTA, had pointed out the need for a timeline-based solution.
The delegation had said that a formal report based on the findings of the visit would be submitted to the European Commission and the European Parliament.
The President had explained that the necessary committees had been appointed and the Minister of Justice and the Attorney General had been instructed according to the reports of the committees, and immediate steps will be taken to amend the necessary provisions of the PTA.
The EU delegation was in Sri Lanka to review the GSP+ trade concessions provided to the country.
President Rajapaksa had informed the EU delegation that as the oldest democracy in the region, which was never under a dictatorship or an authoritarian regime in any period of its history, Sri Lanka will provide solutions for its issues through a democratic system.
The President had further stated that the country would abide by the international agreements on human rights.
During the discussion, the steps that were taken to provide relief to the families of missing persons and to compensation to the families of victims were also pointed out.
The President had stated that even at the UN General Assembly, he stressed the need for the Tamil political parties, members of the Tamil Diaspora, and all expatriates to work together to resolve the country’s internal problems and take the country forward.
The President had noted that he was working with civil society organisations with a mutual understanding and that their support would be sought for the reconciliation process and development in the country.
Meanwhile, the EU delegation to Sri Lanka had noted its appreciation for the multifaceted engagement between Sri Lanka and the EU, and assured Foreign Minister Prof. Peiris of the EU’s continued co-operation, when the two parties met on 1 October at the Foreign Ministry, the Foreign Ministry announced in a press release last Sunday (3).
The five-member EU mission to Sri Lanka was led by European Commission Senior Advisor and Directorate General for Trade Nikolaos Zaimis and European External Action Service (EEAS) Head of Division for South Asia Ioannis Giogkarakis-Argyropoulos. The meeting entailed discussions on EU-Sri Lanka co-operation and Sri Lanka’s engagement with the EU on matters of relevance.
Foreign Minister Prof. Peiris had apprised the EU delegation on the progress in reconciliation, review of the PTA, engagement with civil society, the Sustainable Development Goal (SDG) 16 initiative, and Sri Lanka’s co-operation in the UN Human Rights Council (UNHRC).
During the visit, the EU delegation participated in meetings related to the EU-Sri Lanka Joint Commission process and the EU GSP+ Third Cycle of Review (2020/2021).
Meanwhile, a top European Commission official had highlighted areas of possible changes underway in the generation of the EU GSP+ concessions by introducing more scrutiny to supply chains and sustainable development principles, whilst underscoring the benefits and optimal utilisation for economic growth.
“GSP+ is an incentive, it is not a reward. We are assessing countries that are making a huge effort to meet these obligations. There will be modifications to the proposal. There will be additions and removals. The trajectory of the beneficiary states will be assessed, and a decision will be made,” European Commission Directorate General for Trade Senior Advisor on Sustainable Development Nikoloas Zaimis had said.
He made these remarks at a webinar titled “The future of EU GSP+ and its benefits”, organised by the European Chamber of Commerce of Sri Lanka (ECCSL) and the EU.
“We want economic operators to have time to adjust to any changes that we may be making to the programme. We will be expanding the list of conventions, which will also include a few more human rights, labour rights conventions, and the Paris Convention,” he had said.