- Govt. hopeful of completing debt restructuring with bilateral creditors soon; Chinese Govt. official to visit this week
- Latest proposals by private creditors handed over to IMF for assessment; Govt. hopeful of finalisation of programme in June
- RW continues push for contesting as common candidate under common symbol at Prez Polls; search on for party
- Ravi and Tiran offer their parties to back RW’s common candidacy; Tiran starts reorganising party with new appointments
- Namal sends out message to RW that blocks common symbol plan, says SLPP’s ‘flower bud’ symbol will be on Prez Polls ballot paper
- Range invites several senior SJBers to rejoin UNP; SLPPers displeased with RW Govt. allocating funds for several SJBers
- SLFP crisis continues with party members seeking divine intervention while Party Headquarters remains shut to all
- Maithripala and Nimal groups meet at Sirimavo Bandaranaike commemoration; Nimal ignores Maithripala
- SLFP split on supporting Wijeyadasa at Prez Polls; Duminda notes conflict of interest over Wijeyadasa’s affiliation with Maithripala
- Dayasiri claims of conspiracy to place the SLFP at RW’s feet, says he had warned Maithripala upon his ouster
As the country gradually moves out of the more than 10-day-long New Year holidays, a section of the nation continues to await justice for the havoc wreaked on their lives and loved ones by the 2019 Easter Sunday attacks. Today (21) marks five years since the dastardly attacks that also resulted in putting Sri Lanka on a politically – and eventually a socially and economically – devastating path in the aftermath.
The failure to bring to justice those responsible for the 2019 attacks, including the masterminds behind it, stands as a testament to the many failures of the country’s successive political leadership.
With President Ranil Wickremesinghe so far failing to honour his pledge to the Catholic Church to ensure justice for the Easter Sunday victims and their families, the pledge for justice for the victims continues to be an attractive slogan on political platforms, and the Catholic Church and the community are now visibly weary of the promises made by politicians representing different dispensations. Opposition parties like the main Opposition Samagi Jana Balawegaya (SJB) and the Janatha Vimukthi Peramuna (JVP)-led National People’s Power (NPP) have now handed over in writing their respective plans to ensure justice for the Easter Sunday victims and their families.
It is interesting to see what lengths political parties and their leaders will go to in honouring the multiple pledges that have already been given, even before the announcement of an election. After all, a majority of the SJB seniors were members of the United National Party (UNP) and also held ministerial positions in the 2015-2019 ‘Yahapalana’ Government. The SJB currently has in its fold a former Minister of Law and Order as well.
Until the 2015 Presidential Elections, it was justice for the slain, like Lasantha Wickrematunge and Wasim Thajudeen, as well as the missing Prageeth Eknaligoda that formed an attractive political slogan. However, with the failure by the ‘Yahapalana’ Government to mete out justice even after exhuming the remains of Wickrematunge and Thajudeen, the slogan seems to have now been given a rest.
Slow pace
Sri Lanka, meanwhile, last week gave the impression of being a flourishing nation with many members of the Government and public sector including President Wickremesinghe engaged in what seemed like a very long New Year holiday that commenced from 10 April. It is learnt that President Wickremesinghe is expected to return to his office tomorrow (22) and, with his return, many heads of the State sector, who also seem to have taken an extended New Year holiday, will also return to their offices.
Even by mid-last week, many State sector offices, including even the Treasury, saw a low turnout of workers, with work at these institutions moving at snail’s pace. Therein lay the biggest challenge faced by the nation, which is not yet fully out of the economic doldrums it was pushed to in the last few years. A semblance of recovery and Sri Lankans are once again ready to forget the hard work that remains in order to ensure the full economic recovery of the country.
After sharing his beauty secrets during New Year festivities in Nuwara Eliya, the last week saw President Wickremesinghe engaging in a walk on the Pekoe Trail as well as meeting with the youth and business community in the Nuwara Eliya area to discuss areas that require State intervention.
Wickremesinghe, who returned to Colombo on Friday (19), went and paid his respects to the late A.T. Ariyaratne and the late UNP Member of Parliament (MP) Palitha Thewarapperuma.
Recovery process
With Sri Lanka’s economy in recovery mode, the Government has its work cut out to achieve the targeted growth rates as well as finalise the debt restructuring programme.
It is in such a backdrop that the annual flagship economic publication of the Asian Development Bank (ADB), the ‘Asian Development Outlook’ (ADO) for April, forecasted Sri Lanka’s economy to record moderate growth of 1.9% in 2024 and 2.5% in 2025 following two consecutive years of contractions.
According to the ADB, Sri Lanka is showing signs of recovery, with green shoots emerging in the second half of 2023, while inflation has decelerated to single digits, foreign exchange reserves continue to be built up, and the exchange rate has appreciated.
Reading between the lines, it is evident that Sri Lanka cannot stop to take breaks and should continue to focus on the economic reforms process.
Private creditors’ issues
Meanwhile, the Government’s ongoing discussions with private creditors is facing an obstacle, with the two parties being unable to reach a consensus on two of the four points discussed during the meeting between Lazard and the private creditors in London during the end of March.
President’s Chief of Staff Sagala Ratnayaka told the media last week that the International Monetary Fund (IMF) had observed that the Government’s proposals were compliant with the fund’s ongoing programme with Sri Lanka while the proposals presented by the private bondholders were not. There have been several proposals and counter-proposals exchanged between the Sri Lankan Government and the private creditors.
According to Ratnayaka, while there were initially four points that were in need of consensus in the debt treatment proposals, they have now been reduced to two through negotiations.
When asked which of the creditors (local or international) had disagreed with the two points, Ratnayaka had noted that the details could not be divulged. “We cannot come out with details on these factors as we have agreed to maintain confidentiality concerning discussions,” he had said.
Awaiting IMF assessment
However, the Government decided to reveal the position on the discussions with the private creditors by issuing a statement last week. The latest proposals by the private creditors presented earlier this month are currently being assessed by the IMF.
The Government noted that it had held restricted discussions over the past three weeks with nine members of the steering committee who had agreed to take part in the restricted discussions of the Ad Hoc Group of Bondholders and International Sovereign Bonds (ISBs).
Sri Lanka was joined by its legal and financial advisors, Clifford Chance and Lazard, respectively, and the restricted members of the Steering Committee were joined by the Group’s legal and financial advisors, White & Case and Rothschild & Co, respectively. The Steering Committee as a whole comprises 10 of the largest members of the Group, with the Group controlling approximately 50% of the aggregate outstanding amount of ISBs.
The Government noted that the Steering Committee and its advisors had met during a two-day working session in London on 27 and 28 March this year to discuss the Group’s latest debt treatment proposal, sent to Sri Lanka’s advisors on 11 March. Prior to the meetings, on 25 March, Sri Lanka had also sent, through its advisors, its own debt treatment proposal to the Group’s advisors, which was rejected by the Steering Committee.
The Government explained that during the meetings, it had been agreed that the primary basis for the discussions would be the Group’s March Proposal. Sri Lanka had articulated the main reservations it had in relation to the Group’s proposed Macro-Linked Bond (MLB), while members of the Steering Committee had articulated the reasons why they believed the terms of their MLB proposal were fair and reasonable.
The Steering Committee had also suggested the possible introduction of a Governance-Linked Bond (GLB), which Sri Lanka had stated that it would consider subject to being provided with more details of this proposal. Such details on the possible structure of a GLB had been subsequently shared with Sri Lanka’s advisors on 3 April.
The discussions, according to the Government, had narrowed down to four features of the MLB:
- The baseline parameters of the instruments proposed by the Group were calibrated by reference to the Group’s ‘alternative baseline,’ rather than Sri Lanka’s IMF-supported programme baseline.
- The balance of risks between Sri Lanka and holders of its ISBs – while the Group had already updated its original MLB structure to include a scenario where Sri Lanka might underperform IMF-supported programme GDP projections, Sri Lanka invited the Group to consider a structure that would provide greater protections to Sri Lanka in such a scenario.
- The test for triggering upward/downward adjustments in the MLB.
- The share of additional value in an upward adjustment scenario – Sri Lanka invited the Group to consider lower bondholder allocation in the scenario in which the country outperformed IMF-supported programme GDP projections and satisfied the upward adjustment test in the MLB.
Over the course of the meetings, the parties had come closer to a meeting of minds on Items 1 and 2, with the Steering Committee willing to agree to Sri Lanka’s request for amendments in relation to these two key structural aspects, subject to Sri Lanka (i) agreeing to a consent fee (with the Steering Committee proposing a fee of 1.8% of the outstanding principal amount of the ISBs) with a view to offsetting the Group’s perceived reduction of the market value of their proposal as result of such amendments and (ii) agreeing with the Group’s proposal on Items 3 and 4.
Following the meetings, on 3 April, the Group had shared an updated version of its debt treatment proposal (the Group’s April Proposal), which addressed Items 1 and 2 in the manner described above. However, the Group’s April Proposal is yet to be assessed by the IMF staff.
Deciding on final agreement
However, Ratnayaka noted that the Government’s negotiations with the Official Creditor Committee (OCC) of Sri Lanka’s bilateral creditors were at a positive place.
“We have had a successful round of negotiations with the OCC, which comprises bilateral creditors. Sri Lanka has also had a successful round of discussions with China as well. We have only to decide whether there is going to be a single agreement with the OCC or if we are going for individual agreements with each member state of the OCC,” the President’s Chief of Staff had said. “We have only to sign agreements with OCC members,” he had added.
However, China’s role in finalising the bilateral debt remains key since the agreement with the Chinese will affect the agreements to be reached with the rest of the bilateral creditors. It is in such a backdrop that China has recently expressed its displeasure over certain actions of Sri Lanka. Chinese President Xi Jinping had expressed these sentiments during his recent meeting with Prime Minister Dinesh Gunawardena.
However, a senior member of the Chinese Government is due to arrive in Sri Lanka on Tuesday (23), with meetings being scheduled with senior members of the Sri Lankan Government. The discussions are expected to also include Sri Lanka’s debt treatment plan with China.
Opposition displeased
The main Opposition SJB has meanwhile expressed disappointment over the Government’s lack of transparency related to the restricted discussions held with the Ad Hoc Group of Bondholders.
SJB MP Dr. Harsha de Silva has said: “I personally requested a meeting with the relevant stakeholders, both as the Economic Spokesperson for the main Opposition SJB and as the Chairman of the Committee on Public Finance (COPF). That opportunity was not provided; instead, a meeting with Government officials was arranged to discuss the IMF programme, which we had no reason to attend as we anyway met the delegation during their visits and exchanged views on the same.”
He has pointed out that from the press note, it was obvious that the Government had failed to strike a deal favourable to the people of Sri Lanka, adding: “We acknowledge, however, that it is better to withdraw from the discussions than to agree to a bad deal.”
However, de Silva has expressed satisfaction over the inclusion of a discussion on a possible GLB structure. He had added that the SJB would be interested in discussing the workings of the programme.
Looking for a party
Amidst the economic revival programme, Sri Lanka’s political landscape continues to focus on political posturing in preparation for the upcoming Presidential Election.
President Wickremesinghe and his loyalists, it is learnt, are currently looking for a political party for him to take on as the common candidate at the upcoming Presidential Election.
It is learnt that, so far, two members affiliated to the Wickremesinghe Government have offered two political parties belonging to them to the President – UNP senior Ravi Karunanayake has offered the New Democratic Front (NDF), which was used by former President Maithripala Sirisena under the ‘swan’ symbol at the 2015 Presidential Election, and Minister Tiran Alles has offered his party, the United People’s Party (UPP).
However, Wickremesinghe, it is also learnt, is still undecided on the matter. He had nevertheless told some of his confidants that he was concerned about reusing the NDF due to the public dissention over the ‘Yahapalana’ Government that was elected to office in 2015 on the victory of the ‘swan’ symbol at the Presidential Poll. Hence a final decision on the party is yet to be made by the President.
Tiran’s party
Alles, meanwhile, is engaged in reorganising his party, the UPP, by making several key changes to the party’s office bearers.
Several new Politburo members have been appointed to the party recently. Accordingly, popular tuition master Hemapriya Kaviratne, who was the convener of the Black Cap Movement during the ‘Aragalaya’ period, has been appointed as the party’s Political and Media Secretary.
Attorney Wajira Ranasinghe is now the Legal and Administrative Secretary, while retired senior Policeman Ranjith Dassanayake is the National Organiser, with Sumith Ratnamalala serving as his Deputy. Sameera Manahara, who was formerly in late Minister Mangala Samaraweera’s staff, has been appointed as the Youth Affairs Secretary.
Wimal’s MP with RW
Meanwhile, an MP from dissident Sri Lanka Podujana Peramuna (SLPP) MP Wimal Weerawansa’s party – the National Freedom Front (NFF) – was seen with President Wickremesinghe in Nuwara Eliya last week. It was none other than Nimal Piyatissa, who entered Parliament recently.
Being seen with the President in Nuwara Eliya had resulted in speculation in political circles that Weerawansa is likely to lose the support of one of his members in the event Piyatissa joins forces with Wickremesinghe.
Inviting SJBers
The UNP has meanwhile invited several members of the main Opposition SJB to re-join the UNP fold.
UNP General Secretary Palitha Range Bandara during a news conference last week had invited SJB members Thalatha Atukorale, Kabeer Hashim, Dr. Harsha de Silva, and Eran Wickramaratne to re-join the UNP.
Range Bandara had pointed out that the SJB was not following the UNP policies and that if they were unwilling to implement the policies of the likes of dissident SLPP MP Dr. Nalaka Godahewa, they [Atukorale, Hashim, de Silva, and Wickramaratne] should rejoin the UNP.
UNP Leader, President Wickremesinghe had also criticised the SJB and its policies, claiming that they were being dominated by dissident SLPPers, who had played key roles in the former Gotabaya Rajapaksa Government.
The UNP General Secretary had further noted that the invitation to re-join the party had also been extended to other SJB members as well.
Special treatment
While senior UNPers have invited SJBers to rejoin the party, a group of senior SJBers has recently cautioned Opposition and SJB Leader Sajith Premadasa that some SJB MPs had received funds allocated for projects proposed by them from President Wickremesinghe and his Government.
The President had reportedly intervened to allocate funds for several SJB MPs, including Kavinda Jayawardana and Ajith Mannapperuma. The duo had reportedly received Rs. 50 million and Rs. 60 million respectively for development programmes in their areas.
It is learnt that the allocation of funds to SJB MPs had also disturbed some SLPP MPs, who have in turn complained to the SLPP leadership that the President and the Government had failed to allocate funds for projects proposed by them in their constituencies while some SJB MPs had received financial allocations.
Namal’s message
The SLPP, meanwhile, is showing signs of obstructing Wickremesinghe in his plans of becoming a common candidate contesting under a common symbol at the upcoming Presidential Election.
Despite Wickremesinghe pushing the idea with his allies, SLPP National Organiser Namal Rajapaksa recently sent out a clear message to the President and his loyalists.
Namal said that the ‘flower bud’ symbol of the SLPP would definitely be on the ballot paper at the Presidential Poll. He noted that regardless of whether or not his name would be on the Presidential Election ballot paper, the SLPP symbol would be on it. This statement also stands as a response by the new National Organiser to President Wickremesinghe that the SLPP is not prepared to drop its ‘flower bud’ symbol in the event the party is to support a candidate outside the party.
However, when speaking about the next Presidential Election, Namal also noted that while the SLPP would field a candidate at the polls, Wickremesinghe’s name could also be among the possible candidates. Namal’s latest comments will pose a challenge to Wickremesinghe in trying to convince his current allies in the Government, the SLPP, to support him at the Presidential Election under a common symbol.
However, Namal’s comments, along with the recent decision of the party’s Politburo to stop party members from making comments about presidential candidates and their support for various candidates until a final decision is made by the party leadership, indicates that the split within the SLPP over the next Presidential Election is far from subsiding.
Divine intervention
Meanwhile, the crisis within the Sri Lanka Freedom Party (SLFP) continues unabated, with the battling factions in the party also seeking divine intervention to wrest power over the party.
The pro-Chandrika Bandaranaike Kumaratunga (CBK) faction led by Nimal Siripala de Silva and the pro-Sirisena faction continue to vow to gain control of the party. It is in such a backdrop that a group of pro-Sirisena members had engaged in religious observances at the Munneswaram Kovil in Chilaw, seeking divine intervention for the group to regain control of the party and the Party Headquarters.
Back to the struggle
Once the New Year holiday period concluded, the battling factions in the SLFP were back in the game. The staff at the SLFP Headquarters were however displeased that the ongoing internal clashes had resulted in them being kept away from their workplace in the New Year while also taking away the traditional boiling of milk in the office premises.
Deposed Leader of the SLFP, former President Maithripala Sirisena meanwhile returned to the country on Monday (15) morning and engaged in a public engagement on Wednesday (17). Court last week also extended the enjoining order preventing Sirisena from serving as the SLFP Leader till 9 May.
Sirisena had said upon his return that he had visited Thailand to worship at the temple where a sapling of the Sri Maha Bodhiya had been planted following an offering by him (Sirisena).
EC’s decision
Meanwhile, the Election Commission (EC) held an inquiry on Thursday (18) into the goings-on in the SLFP and the documents handed over by the pro-Nimal Siripala de Silva team (Senior Vice President) to the commission informing of the new appointments to office bearers made earlier this month.
Acting General Secretary Dushmantha Mithrapala meanwhile on Wednesday (17) called on the Election Commission to follow the party’s Constitution since the pro-Sirisena faction had acted in line with it.
On Thursday, SLFP National Organiser Duminda Dissanayake and Treasurer Lasantha Alagiyawanna made their way to the Elections Secretariat to discuss the appointments to office bearers made at the party’s Politburo meeting held on 8 April at the Sri Lanka Foundation Institute (SLFI) in Colombo.
The new appointments to the SLFP made at the 8 April meeting were SLFP Senior Vice President, Minister Nimal Siripala de Silva being appointed as the Acting Leader of the party and Dissanayake as the Acting General Secretary.
However, the Election Commission had noted that it was not vested with the legal powers to resolve the internal crisis in the SLFP. The commission had opined that its current legal work scope did not permit it to intervene in the SLFP’s internal crisis and that it should be resolved through courts.
The commission had however noted that it could decide on whether or not to give nominations to members of the SLFP in the event the internal clashes dragged on during a period of an election.
Clashing over Sirimavo
Meanwhile, with the 108th birth anniversary of the late Sirimavo Bandaranaike on Wednesday (17), the pro-Sirisena and pro-CBK factions were once again poised for a showdown over taking ownership of the commemoration event.
Sirisena led his loyalists to the BMICH to pay floral tributes to the statue of the late Sirimavo Bandaranaike located within the premises while de Silva and the rest of the rebel group also arrived at the BMICH to pay floral tributes to the Co-Founder of the party.
Finally, the two factions met face-to-face at the BMICH. Justice Minister Dr. Wijeyadasa Rajapakshe was also among those who attended the event as a special invitee. During the meeting, some members of the two factions exchanged pleasantries and called a temporary truce for the event.
Sirisena and his loyalists as well as de Silva and his loyalists paid floral tributes to the late Sirimavo Bandaranaike together. During their speeches, members of both sides took it upon themselves to take swipes at the other.
Afterwards, members of the two factions had tea together before parting ways to re-commence the power battle. However, de Silva had refrained from interacting with Sirisena during and after the event. When Sirisena walked in for the event, while some had remained standing to welcome him, de Silva had taken his seat and turned away from Sirisena.
Police probe stuck
The ongoing Police probe into the missing documents at the SLFP Headquarters is being held up due to several issues, key among them being the non-receipt of the keys to the headquarters by the Police. Even by mid-last week, the SLFP Headquarters remained shut to all factions, including the Police.
SLFP Acting General Secretary Mithrapala had lodged a complaint with the Maradana Police, claiming that some important files at the Party Headquarters had gone missing after a group had taken over the party office.
Police Media Spokesperson, Deputy Inspector General of Police (DIG) – Crime Range Nihal Thalduwa had told the media that the Police had informed the persons whose names had been mentioned in Mithrapala’s complaint to return the keys as soon as possible.
The parties who had lodged the particular complaint have yet to give a statement about the list of missing documents and, therefore, the Police is facing difficulties given the lack of exact details of the relevant documents at present.
Meanwhile, during last week’s party event at the BMICH, Sirisena had asked Dissanayake to look into re-opening the Party Headquarters to enable the party’s affiliated organisations to carry out their work.
Wijeyadasa’s choice
Justice Minister Dr. Rajapakshe meanwhile stated last week that he had received many requests from members of the SLFP Working Committee as well as religious leaders to contest at the next Presidential Election.
Rajapakshe’s comments indicate that he is likely to lead the SLFP-led alliance that was in the making until the party’s internal clashes obstructed the efforts. The Minister was a special invitee of deposed Leader of the SLFP Sirisena to a meeting of key decision-making bodies of the SLFP held during end-March, where he was also provided the opportunity to address the gathering.
However, Rajapakshe noted that he would announce his decision on whether he would contest at the Presidential Election sometime this week.
The call
Minister Rajapakshe meanwhile called on all members of the SLFP to unite to ensure the longevity of the party that has rendered the most service to the country.
Delivering a speech at the late Sirimavo Bandaranaike’s birth anniversary event at the BMICH, Rajapakshe noted that the SLFP and its leaders had faced many challenges and threats since the party’s formation, but that the leaders and the party had withstood all those challenges.
He added that the people in all quarters of the country still called for the SLFP to take the country’s leadership.
Thilanga says no
However, the SLFP, it is learnt, is split on deciding to field Rajapakshe as the presidential candidate of the SLFP-led alliance.
SLFP Vice President Thilanga Sumathipala last week claimed that the SLFP did not have any intention of making Rajapakshe the presidential candidate of the party’s alliance. He made this statement last week after commencing work for the New Year at the SLFP-led United People’s Freedom Alliance (UPFA) Office in Colombo.
“There is no reason for us to agree to Wijeyadasa Rajapakshe when we have opposed Nimal Siripala de Silva, who is also a Minister in the Government. We have not made any decision about a presidential candidate,” Sumathipala added.
Conflict of interest
Meanwhile, the close affiliation between Sirisena and Justice Minister Rajapakshe is being criticised by some senior SLFP members, who have pointed out that the Justice Minister’s attendance at SLFP events and his close affiliation with Sirisena posed a conflict of interest.
MP Dissanayake questioned whether it was proper for the incumbent Justice Minister to be closely affiliated and be publicly seen with a person [Sirisena] who is currently the respondent in several cases pending before court, including one on the Easter Sunday attacks.
“What’s the message being sent out to the public? Is it to say that the Justice Minister’s close affiliation with Sirisena will have an impact on the cases pending before court against Sirisena?” Dissanayake questioned.
Conspiracy theory
However, former General Secretary of the SLFP Dayasiri Jayasekara claims that the ongoing process of replacing Sirisena as the Party Leader is part of a grand plan to push the SLFP to support President Wickremesinghe at the Presidential Election and to hand the party over to him.
Jayasekara has alleged that his removal as the SLFP General Secretary is also part of this conspiracy and says that he had warned Sirisena that he would become the next victim in the conspiracy.