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President and PM left with Hobson’s choice as further Indian assistance to take time

26 Jun 2022

  • India expresses commitment to SL but requests Govt. to reciprocate assistance given
  • Indian delegation hands ‘wish list,’ seeks action on several long-dragging Indian projects
  • Sampur Solar Park, power transmission line, blocks in Mannar Basin among said projects
  • US Treasury and State Dept. officials to visit and take stock of country’s economic situation
  • Continuous delays in much-needed fuel and LPG supplies due to LC issues, controversies
  • Pressure builds on Govt. to seek assistance from Russia to access cheaper fuel, fertiliser
  • Govt.’s 21A becomes 22A in Cabinet; draft 22A to return to Cabinet after AG’s approval
  • Romesh de Silva recommendations to be submitted to Cabinet for inclusion in draft 22A
  • PM agrees to re-appoint Nandalal Weerasinghe as CBSL Governor on President’s request
  • Ruling party parliamentary group criticises PM’s early departures; says appoint another
With Sri Lanka entering the most difficult period of the economic crisis, with worsening shortages and price hikes, the Government of President Gotabaya Rajapaksa and Prime Minister Ranil Wickremesinghe has its work cut out to steer the country out of this economic Armageddon. Sri Lanka continues to reach out to the international community while a group of political parties is pressuring the Government to initiate a dialogue with Russia with the intention of getting cheap fuel and fertiliser supplies for the country. Russia, for its part, has communicated through these political representatives – including former President Maithripala Sirisena and former Ministers Wimal Weerawansa, Udaya Gammanpila, and Vasudeva Nanayakkara – that Russia was willing to look at extending assistance to Sri Lanka as a humanitarian gesture despite the country being in a bankrupt state, if President Rajapaksa was willing to discuss with Russian President Vladimir Putin and send a high-level Government delegation to Russia for discussions. Yet to recover from the recent Aeroflot flight controversy, the Russians are clearly awaiting some form of communication and apology from Sri Lanka’s highest office. It is in this backdrop that Sri Lanka has pinned much hope on India’s continued assistance. However, this much-anticipated Indian assistance is likely to take some time, with the Indian Government also facing pressure at home over the continuous financial assistance being provided to its drowning neighbour.  It was this message that was conveyed to the Sri Lankan Government leaders by the Indian Government last week. Last Thursday’s (23) arrival of a delegation of senior Indian Government officials to take stock of the country’s economic development before proceeding with further economic assistance to Sri Lanka has put the Sri Lankan Government on notice. The Indian delegation that arrived in Sri Lanka on a one-day official tour included Indian Foreign Secretary Vinay Kwatra, Economic Affairs Secretary Ajay Seth, Chief Economic Advisor to the Indian Government Dr. V. Anantha Nageswaran, and Joint Secretary of External Affairs Karthik Pande. Prior to the visit, the Government believed that the fresh $ 500 million fuel credit line sought from India would be finalised following the visit. Although the senior officials had responded positively to the fresh credit line, they refrained from making commitments on time-frames, while the Sri Lankan Government had hoped for the credit line to be available for use by next month. The Indian officials had explained to the Sri Lankan leaders that Sri Lanka had been the recipient of the highest volume of financial assistance that India had ever provided to any other country. They had observed that the Indian Government also had to be accountable to public funds being granted to other countries, even Sri Lanka. The underlying message had been that it was time for the Sri Lankan Government to reciprocate as an act of good faith in order for India to provide more assistance, and indeed, it is learnt that the delegation had informed the President and Prime Minister during their respective meetings that Sri Lanka had to reciprocate in some form to the billions of US Dollars provided to the island as assistance. The Indian officials during last week’s visit had submitted a list of Indian-funded projects that had been dragging on for many years, as well as a few new proposals, with the aim of promoting trade, tourism, and investment between the two countries. Among the requests put forward by the Indian side are the expediting of the proposed Sampur Solar Power Park (initially assigned to the Indian Government for a joint venture coal power plant), development of an industrial park in the Trincomalee Harbour, the establishment of a power transmission line between Sri Lanka and India, and the allocation of two blocks in Mannar Basin for oil exploration. Interestingly, the initial discussions on these projects were started during then President Mahinda Rajapaksa’s tenure. However, several new proposals that were not included in the official ‘wish list’ were also discussed during the meetings. Among them was a proposal on currency substitution for several identified sectors. The Indians had explained that it would create economic integration in the region while also promoting trade, travel, and investments. When the Indian officials left Sri Lanka last Thursday evening, the Government leaders were left with Hobson’s choice. The worsening crisis situation in the country meant quick actions were required in the decision-making process to get them off the ground in order to get another round of financial assistance from India to tide the country through until an initial staff-level agreement was reached with the International Monetary Fund (IMF). Prime Minister Wickremesinghe last week informed Parliament that such an agreement was likely to be reached around end-July. While there is no free meal for the taking by anyone or any country, it was always known that there would be a quid pro quo for the assistance being received in large magnitude by Sri Lanka amidst the economic crisis. Worsening crisis While politics and geopolitics are at play at an unprecedented level, Sri Lanka’s overall rate of inflation, as measured by the National Consumer Price Index (NCPI) Year-on-Year, stood at 45.3% for last month (May), after recording 33.8% in April. The ongoing public protests intensified last week, with protesters taking to the streets last Monday (20) to block the Presidential Secretariat. Last Monday was also President Rajapaksa’s 73rd birthday. The Police had to step in and clear the entrances while taking into custody a group of protesters. The main Opposition Samagi Jana Balawegaya (SJB) also launched a series of protest campaigns starting last Monday, urging the President to step down from office. The decision on holding a week-long protest campaign was finalised by the party during a meeting last weekend. However, the protests also had an impact on the meeting that was scheduled between the Sri Lankan Government and the 10-member delegation of the IMF that had arrived in the country last weekend to commence discussions on the assistance sought by Sri Lanka as a way out of the ongoing crisis situation. The IMF team, led by Peter Breuer, also included Masahiro Nozaki (Sri Lankan Mission Chief), Dr. Tubagus Feridhanusetyawan (Resident Representative), Xin Li (IMF staff), Francis Vitek (IMF staff), Klaus Peter Hellwig (IMF staff), Maxym Kryshko (IMF staff), Mark Adams (IMF staff), and Manavee Abeywickrama (IMF staff). The first meeting between the Government and the IMF delegation was chaired by Prime Minister Wickremesinghe at the Prime Minister’s Office. While the meeting was initially planned to be held at the Finance Ministry, the venue was changed to the Prime Minister’s Office in anticipation of the protests and their impact on mobility in the area. However, Treasury Secretary Mahinda Siriwardana was delayed as he was marooned in his office at the Treasury building adjoining the Presidential Secretariat due to the protests. The IMF team is also to meet with Opposition political leaders as part of its engagement in Sri Lanka. It is in such a backdrop that the SJB and Janatha Vimukthi Peramuna (JVP)-led National People’s Power (NPP) decided to boycott Parliament sessions last week, claiming that it was a ‘waste of time and resources’ to conduct sessions when the people had not been provided with any tangible solutions. The other parties in the Opposition however attended last week’s parliamentary sessions. Nevertheless, parliamentary sessions were limited to just two days due to the fuel crisis in the country, with the next session due for the first week of July. Prime Minister Wickremesinghe noted that an interim budget would be presented to the House in August for the remaining period of 2022 while the 2023 Budget proposals would be presented in November. Summons served The Government is now gearing to meet the US Treasury officials, who are to arrive in Sri Lanka today (26), together with US Ambassador to Sri Lanka Julie Chung, who was in Washington DC last week. The delegation will include Deputy Assistant Secretary of Treasury for Asia Robert Kaproth and Deputy Assistant Secretary of State for South and Central Asia Ambassador Kelly Keiderling. The US officials are expected to meet with Government leaders, political party representatives, and civil society organisations during their stay, which will conclude on Wednesday (29). Meanwhile, to add to the already-worsening economic woes, the US Hamilton Reserve Bank has filed a suit against Sri Lanka seeking payment for the International Sovereign Bonds (ISBs) held by it. It has sought the payment prior to 25 July 2022. Summons on the case were served to Sri Lanka’s Ambassador to the mission in New York Mohan Peiris last Thursday (23). Plaintiff Hamilton Reserve Bank Ltd. alleges a breach of contract action arising from Defendant the Democratic Socialist Republic of Sri Lanka’s default on its $ 1 billion 5.875% International Sovereign Bonds due 25 July 2022. The Plaintiff notes that under the ISB terms, Sri Lanka owes the Plaintiff a total of $ 257,539,331.25, comprising $ 250,190,000 in principal and $ 7,349,331.25 in interest. It adds that Sri Lanka’s default is a matter of choice, as Sri Lanka is capable of paying the Plaintiff’s bonds in full. The complaint notes that Sri Lanka’s default is being orchestrated by officials at the highest levels of its Government. “This includes the ruling Rajapaksa clan, whose members currently serve as President of Sri Lanka and in numerous other senior Government positions. The Rajapaksa family members have repeatedly been accused of lining their own pockets through years of corruption. Former US Government officials and investigative journalists have exposed that the Rajapaksa family has amassed a multibillion-dollar fortune and hidden part of it in bank accounts in offshore jurisdictions such as Dubai, Seychelles, and St. Martin,” it adds. It also notes: “Basil Rajapaksa, a member of Sri Lanka’s Parliament and former Minister of Finance, is a Sri Lanka/US dual citizen with homes and family members based in California. He has reportedly figured prominently in the Rajapaksa family’s corrupt activity. For example, US Government documents report that in prior Government appointments, Basil Rajapaksa ‘earned the nickname ‘Mr. Ten Percent’ for demanding a 10% commission on every project,’ ‘makes a habit of trying to ‘buy people,’’ and ‘continues to be accused of significant corruption in his current position’. Those same documents report that Sri Lanka’s then President, Mahinda Rajapaksa – Basil’s elder brother and the Prime Minister until 9 May, 2022 – ‘consults Basil on most political matters… despite his limited education and lack of relevant work experience’.” 21A becomes 22A The much-awaited 21st Amendment was taken up in Cabinet last Monday (20) after being delayed by two weeks.  Justice Minister Dr. Wijeyadasa Rajapakshe had taken up the piece of legislation and noted the importance of approving it and moving forward since there was much interest on it locally as well as internationally. Minister Prasanna Ranatunga had questioned whether the proposals presented by other MPs, especially ruling party MPs, to the 21st Amendment had been included in the draft that had been presented to the Cabinet for approval. Ranatunga had also noted that since there had been several proposals that had been included in the proposed piece of legislation, the Cabinet needed to see the final draft approved by the Attorney General. President Rajapaksa had stated that he was not opposed to the 21st Amendment and that he wanted the proposals put forward by him included in it since it would otherwise result in questions over the mandate received by the President and Prime Minister at the polls. The President had also noted that the recommendations of the committee of experts headed by Romesh de Silva PC on drafting a new constitution would also be presented to the next Cabinet meeting (tomorrow). Prime Minister Wickremesinghe had noted that the relevant provisos (the President’s proposals) had been included and that therefore there were no more issues in that regard. After receiving the assurances from the Prime Minister and Justice Minister, the Cabinet of Ministers had approved the draft amendment. However, Minister Rajapakshe had presented two Cabinet notes last Monday. One was the draft 21st Amendment and the other was to inform the Cabinet that the Government’s proposed amendment would be known as the 22nd Amendment to the Constitution when the draft bill was gazetted. He had explained that the SJB’s proposed amendment would be the 21st Amendment as it had already been gazetted. The Cabinet had approved both Cabinet notes and decided to send the draft bill to the Legal Draftsman for final drafting and to the Attorney General for final observations before being gazetted and presented to Parliament. However, an agreement had been reached that the Cabinet would have a final look at the 22nd Amendment Bill once the Legal Draftsman and Attorney General had granted approval. The recommendations of the Romesh de Silva committee are to also be taken into consideration. Referendum for SJB’s 21A Meanwhile, the Supreme Court last week determined that quite a few clauses in the SJB’s 21st Amendment Bill would require a referendum. This determination has put an end to the continuous push by the Opposition to the Government to discard the 21st Amendment proposed by it (the Government) and to proceed with the piece of legislation that has been presented by the SJB. Speaker of the House Mahinda Yapa Abeywardena announced in Parliament last Tuesday that he had received the SC’s determination on the 21st Amendment to the Constitution Bill put forward by the SJB. Thus, he said that the SC has determined that Clauses 2-15, 19, 23, 24, 26-28, 30(a), 36, 39, 43, and 51 of the SJB’s 21st Amendment to the Constitution Bill were inconsistent with a number of provisions of the Constitution, and has therefore ordered that a people’s referendum be held for them to be passed. Following are the determinations: Clause Number 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 15, 23, 24, 26, 27, 28, and 36 of the Bill contain provisions inconsistent with Article 3 read together with Article 4 (B) of the Constitution and such may be enacted only by the Special Majority required by Article 84 (2) and upon being approved by the people at a referendum by virtue of Article 83. Clauses 2, 3, and 4 of the Bill are inconsistent with Article 3 read together with Article 4 (E) of the Constitution and as such may be enacted only by the Special Majority required by Article 84 (2) and upon being approved by the people at a referendum by virtue of Article 83. Clause Number 14 of the Bill, as it presently stands, is consistent with Article 3 read together with Article 4 (B) of the Constitution and as such may be enacted only by the Special Majority required by Article 84 (2) and upon being approved by the people at a referendum by virtue of Article 83. *The necessity of the referendum will cease if the proposed Article 41 (a) (1) provides for the President to appoint one person as a member of the council as his nominee. *If the proposed Article 41 (a) (6) is suitably amended to remove the provision. Clause Number 19 of the Bill is consistent with Article 3 read together with Article 4 (B) of the Constitution and as such may be enacted only by the Special Majority required by Article 84 (2) and upon being approved by the people at a referendum by virtue of Article 83. Clause Number 30 (a) of the Bill seeks to limit the Judicial Power of the People. Therefore it is consistent with Article 3 read together with Article 4 (C) and 4 (E) of the Constitution and as such may be enacted only by the Special Majority required by Article 84 (2) and upon being approved by the people at a referendum by virtue of Article 83. Clause Number 39 of the Bill in so far as it seeks to repeal Article 129 (1) of the Constitution is consistent with Article 3 read together with Article 4 (C) of the Constitution and as such may be enacted only by the Special Majority required by Article 84 (2) and upon being approved by the people at a referendum by virtue of Article 83. Clause Number 43 of the Bill is inconsistent with Articles 2 and 3 of the Constitution read together with Article 4 (B) of the Constitution and as such may be enacted only by the Special Majority required by Article 84 (2) and upon being approved by the people at a referendum by virtue of Article 83. Clause Number 51 of the Bill seeks inter alia to introduce Chapter 19 (c) titled ‘National Security Council’ of which the Prime Minister is to be the Chairperson. The proposed Article 156 (j) (1) and 156 (j) (2) are inconsistent with Articles 1, 2, and 3, read together with Article 4 (B) of the Constitution, and as such may be enacted only by the Special Majority required by Article 84 (2) and upon being approved by the people at a referendum by virtue of Article 83. *However, the necessity of the referendum will cease if the proposed Articles 156 (j) (1) and 156 (j) (2) are amended to change the proposed composition of the National Security Council and make the President the Chairperson of the proposed council. Rajapakshe told Parliament that the Supreme Court had determined that no clause in said SJB Bill could be passed in Parliament without a public referendum and that the Opposition had to therefore accept the practicality of the situation. “During the course of last month, we spoke with all party leaders in and out of the Parliament and with embassies, religious leaders, trade unions, and civil society organisations. We took all their ideas and everyone agreed to put in an Amendment similar to the 19th Amendment to the Constitution. We believe that the Bill the Government has presented is practical, as we cannot chase after mirages,” the Justice Minister said.  It seems like Prime Minister Wickremesinghe and his team that prepared the Government’s 21st Amendment had been mindful of the clauses and the manner in which they should be incorporated to avoid a referendum. Cabinet discuss relief The Cabinet of Ministers after passing the draft 22nd Amendment to the Constitution moved on to discuss the ongoing economic crisis and the urgent action that needed to be taken. One of the key decisions taken was to free lands held by many Government institutions for the agriculture sector for cultivation as an urgent step to resolve the impending food crisis. The next key issue that was addressed was the exacerbating fuel and Liquefied Petroleum Gas (LPG) crisis. Prime Minister Wickremesinghe had explained that the situation was looking very bleak and elaborated that the red tape involved in getting shipments to the country from suppliers who had agreed to supply fuel and LPG was a huge obstacle. Several other ministers had also noted the practical difficulties faced in securing urgent supplies for the country due to the time-consuming procedures involved and the misinformation in the public domain about unsolicited proposals. However, it had been agreed in the Cabinet that the Government’s first priority was to ensure that the people had their essentials and all steps needed to be taken to ensure this. The Government therefore is to move forward with certain urgent procurements with the approval of the Cabinet and bypassing the long-drawn procedures. This is to be specially applied to the procurement of fuel and LPG. The ongoing controversy surrounding LPG has resulted in the country facing a risk of not receiving supplies for around three to four weeks. Accordingly, Litro Gas Lanka has received approval for bulk buying as opposed to ad hoc purchasing to manage the domestic demand moving forward sans long queues. The move is aimed at mitigating the massive LPG shortage in the market. Siamgas, which had been earlier chosen by Litro for LPG supplies, had offered the lowest rate of $ 96 as the shipping cost per MT of LPG for the 2022/2023 tender, but had failed to release the consignment until a Standby Letter of Credit (SBLC) to the value of $ 30 million had been submitted.  Further, Siamgas had also announced that the required quantity of 15,000 MT could not be provided and that 6,600 MT could be arranged instead, 10 days from the date of the SBLC. It had also informed that this consignment would be provided at $ 112 instead of the $ 96 quoted earlier. It is in such a backdrop that Litro Gas had opted for the second-lowest bid of a minimum quantity of 100,000 MT at $ 129 from Omani Trading (OQ Trading) based on the decision taken at the Cabinet meeting held on 8 June – taking into account the feasibility and time considerations. The $ 17 difference between the two aforementioned bidders translates to less than Rs. 80 per cylinder, which was not seen as a significant burden proportional to the inconvenience faced by the public due to the lack of LPG in the market. Therefore, Siamgas had been left out from the purchase process due to the stipulations and demands put forward by the supplier. Fuel crisis to chaos The Cabinet also looked at the drastic increase in daily fuel consumption since the onset of the economic crisis that has had an adverse impact on the fuel crisis. The Ministers noted that the Government’s request from people not to join fuel queues until shipments arrived had been ignored. Power and Energy Minister Kanchana Wijesekera noted that he was planning a visit to the fuel-producing Middle Eastern countries shortly to discuss the possibilities of obtaining credit lines or long-term agreements. After the Cabinet meeting concluded, President Rajapaksa was seen holding a separate discussion with Wijesekera on the fuel crisis and the need to provide relief to the public before violence once again raised its head. Nevertheless, by last Friday (24) there was chaos, with Wijesekera announcing that the 40,000 MT of petrol that was due to arrive in the country that day after a one-day delay (the shipment was first scheduled for the 23rd) was not going to make it. He had said that the suppliers had said they would look at another delivery date which would be informed later on. This news got Prime Minister Wickremesinghe activated and an immediate explanation was sought from Wijesekera on the issue with the shipment. It is learnt that there had been an issue with the Letter of Credit (LC) that had been opened by a State bank for the shipment and that the suppliers had to delay the shipment as a result. The Premier and many Government ministers had noted that the delay in the petrol shipment may create an issue, with the public in the already-long fuel queues likely to be pushed to the brink. The next question was whether the crude oil shipment that was expected would arrive on time to prevent another closure of the Sapugaskanda Oil Refinery. As of Friday (24) night, the Government was in discussion trying to find an alternative plan to get some much-needed fuel into the country. One of the proposals was to approach a previous supplier to get in at least an urgent shipment until a proper plan was put in place for other shipments. Meanwhile, last evening (25), Wijesekera issued a ‘fuel update’ via his Twitter account stating as follows: “Regret to inform that CPC has informed me that the suppliers that had confirmed petrol, diesel, and crude oil shipments to arrive earlier this week and next week have communicated the inability to fulfil the deliveries on time for banking and logistic reasons.” He added that until the next shipments at the port were unloaded, public transport, power generation, and industries would be given priority and that limited stocks of diesel and petrol would be distributed at limited stations through the week ahead, while also requesting the public not to line up for fuel. Wijesekera further stated that due to these new developments, CPC was not able to confirm the arrival dates of the shipments at present and that refinery operations would be temporarily closed until the next crude shipment. “We are working with all new and existing suppliers. I apologise for the delay and inconvenience,” he concluded. President meets the group President Rajapaksa met with the ruling Sri Lanka Podujana Peramuna (SLPP) parliamentary group after last Monday’s (20) Cabinet meeting. The meeting had been reportedly aimed at focusing on the ongoing fuel crisis and steps to be taken to resolve it. Prime Minister Wickremesinghe and other Government ministers had also attended the meeting that saw the attendance of around 80 ruling party MPs. A majority of the MPs had expressed concerns over the current situation in the country and their fears over a possible slide into violence. However, the Prime Minister and Minister Manusha Nanayakkara had left the meeting soon after it commenced, noting that they had prior, separate, engagements. Wickremesinghe’s departure from the meeting had not gone down well with the ruling party MPs, who had expressed their displeasure at the Prime Minister for leaving the meeting without explaining the current economic situation and action being taken to address it. MP Akila Ellawala had been among the first to object to the Prime Minister’s departure, saying: “He must be present at this meeting since MPs have questions that require answers.” Several other SLPP backbench MPs had questioned whether the Prime Minister had left the meeting because he did not trust the parliamentary group. If that was the case, they had noted that a new prime minister who could trust the ruling party parliamentary group should be appointed. MP Udayana Kirindigoda had noted that the SLPP parliamentary group had not objected to the Prime Minister chosen for the post by the President. However, he had charged that the Prime Minister always left the meeting early. “Does he have trust issues with us?” had been the next question. However, the President had responded to the SLPP MPs’ questions on the Prime Minister’s early departure by explaining that Wickremesinghe had to leave since he had to meet with the IMF team. Rajapaksa had also noted that the meeting with the IMF team in the morning could not be properly concluded since the Treasury Secretary had been delayed for the meeting due to the protests outside the Finance Ministry earlier that day. The President had further noted that the Prime Minister had made arrangements to meet with the ruling party parliamentarians the following day, Tuesday (21), in the House. The MPs who took offence to the Prime Minister’s early departure had noted that Wickremesinghe should be asked to make sure that he attended the full length of the ruling party group meetings in future. Minister Ranatunga had noted that not only the Prime Minister, but all Cabinet ministers should be asked to attend the group meetings in the future to ensure a healthy dialogue between the governing party group and prevent any form of dissension. A group of SLPP MPs had also posed a question to the President on reports that Central Bank of Sri Lanka (CBSL) Governor Dr. Nandalal Weerasinghe was to be replaced at the end of this month. President Rajapaksa had explained that the CBSL Governor had been initially appointed to complete the remaining period of the six-year term of the bank’s Governor after Ajith Nivard Cabraal’s resignation. He had noted that Weerasinghe would not be replaced and he (the President) would take steps to re-appoint the incumbent CBSL Governor for another six-year term. Rajapaksa had added that he would discuss the matter with Prime Minister Wickremesinghe. According to the Constitution, the President requires the Prime Minister’s recommendation prior to the appointment of the CBSL Governor. RW agrees to Nandalal Following weeks of speculation over the continuation of Governor Weerasinghe’s tenure in office at the CBSL, Prime Minister Wickremesinghe had last week informed the President’s Office that he would approve the appointment. Accordingly, Weerasinghe is to be re-appointed as CBSL Governor for a six-year term starting 1 July 2022. The approval, it is learnt, had been given last Friday (24) following an inquiry to the effect by the President’s Office from the Prime Minister’s Office. The President’s Office had inquired from the Prime Minister’s Secretary about the delay on the Prime Minister’s part to send the recommendation on Weerasinghe’s re-appointment to the post. The message had been immediately communicated to Prime Minister Wickremesinghe and after a few hours, the Prime Minister’s Office had informed the President’s Office that the Premier would send his recommendation shortly. However, Weerasinghe’s re-appointment to the post of CBSL Governor resulted in a cold war between the President and Prime Minister, with the President standing adamant on Weerasinghe continuing in the top post at the Central Bank. Nevertheless, the Prime Minister seems to have taken a strategic step back at the moment by agreeing to Weerasinghe’s re-appointment. Yet, those who know Wickremesinghe know very well that the war is not yet over, with Weerasinghe from now on being under the close scrutiny of the Prime Minister. Sajith for all-party govt. Meanwhile, SJB and Opposition Leader Sajith Premadasa last week noted that an interim all-party government could resolve the ongoing economic crisis, while reiterating the call for President Rajapaksa and Prime Minister Wickremesinghe to step down. He had noted that the President and the Government led by Wickremesinghe did not have the confidence of the local and international communities. “We have solutions to this crisis. Let us form an all-party interim government led by the SJB where we will address the primary issues of the people, and within a short period of time seek the people’s mandate through an election and bring about political and economic stability to this country over a period of five years,” Premadasa told the media last Monday, prior to commencing a week-long protest campaign. He added that the President and Prime Minister had both failed to honour the pledges given to the people, while SJB General Secretary Ranjith Madduma Bandara claimed that Wickremesinghe had failed to bring in the $ 5 billion he had earlier promised to the country. Madduma Bandara noted that all international donors continue to reiterate the need for a stable government for the country. Premadasa has expressed his preparedness to lead an all-party interim government once again with the condition that the President step down. SLFP to also lead Amidst the SJB’s call for an all-party interim government if and when the President quits, the Sri Lanka Freedom Party (SLFP) has also initiated an internal discussion on the party’s role amidst the crisis and the path to be taken. A discussion on this issue took place last weekend after the Party Leader, former President Maithripala Sirisena, reiterated the need for an all-party government to resolve the ongoing crisis and his preparedness to give leadership to such a move. Sirisena made this observation during a recent media briefing. However, the matter had been discussed at length during a meeting last weekend between Sirisena and a few party seniors that included MPs Dayasiri Jayasekara, Duminda Dissanayake, and Lasantha Alagiyawanna. The meeting took place at Sirisena’s residence. Everyone at the meeting had unanimously agreed that the SLFP needed to make a political decision on the party’s path given that the crisis situation in the country was not showing any signs of abating in the near future. Sirisena had noted that neither the people nor the international community had faith in the Government since the President and Prime Minister had failed to form an all-party government that had been called for by everyone. The others had agreed and asked Sirisena who would provide leadership to such an all-party government. They had noted that Opposition Leader Premadasa had not agreed to the formation of an all-party government several months back although a group of SJBers was willing to support such a move. They had discussed the many meetings held between the SLFP, group of 10 (G-10) governing alliance leaders, and the SLPP dissidents’ group with the Opposition Leader to get him to support the formation of a national government. However, Sirisena had noted that the only solution to the crisis was an all-party government. Dissanayake had then asked whether Sirisena was prepared to lead another move to form an all-party government as a solution to the current economic and political crisis. Sirisena had responded saying that he had no desire to do so. However, Dissanayake had explained that Sirisena’s statement to the media that he was prepared to lead such a move indicated that he (Sirisena) was prepared to do so. Once again Sirisena had said that he had no such desire but had only made the statement in response to the question continuously being posed to him. Nevertheless, Jayasekara and Alagiyawanna had also pitched in saying that there needed to be a leadership for a move to form an all-party government and the SLFP should take the lead in it with its Party Leader. Dissanayake had also noted that Sirisena needed to be clear in his stance of providing leadership in order for them (the party seniors) to make the required political interventions by holding discussions with other parties. Finally, Sirisena had agreed, saying that if the party agreed to such a move, he would provide leadership. Dissanayake, Jayasekara, and Alagiyawanna had then explained that a meeting should immediately be convened with a group of intellectuals in the party like Prof. Rohana Lakshman Piyadasa, Prof. Dhamma Dissanayake, and a few others, including the SLFP parliamentary group, to discuss the new move to push for an all-party government. It had been agreed that a plan should first be formulated and then presented to the SLFP Central Committee (CC) for approval. Meeting to decide Accordingly, a meeting was organised last Monday (20) at the Party Headquarters with the SLFP parliamentary group and several senior members of the party’s CC in attendance. Sirisena had not attended the meeting as it was to formulate a working programme for the party’s next move, on which he would be briefed after the meeting. During Monday’s meeting it had been discussed that the SLFP should take a political stance to provide leadership to the many civil organisations and movements which had come forward presenting separate sets of proposals to address the ongoing crisis. The senior SLFPers had agreed that all these forces should be brought together through a common minimum programme that would propose solutions to the crisis while also pushing for the formation of an all-party interim government. The senior SLFPers also met on Friday (24) to finalise an action plan to be followed to achieve the targets discussed by them. An agreement had been reached on Friday that there needed to be a proper plan with a structured framework on the much-discussed all-party interim government. While the civil movements will be asked to form a common minimum programme that will include their observations and proposals to address the ongoing crisis, the SLFP will take the lead in formulating a plan on the all-party interim government. Accordingly, a full-day workshop is to be held with the participation of the SLFP parliamentary group and the party seniors on Tuesday (28) to formulate the structure and work-scope of the proposed all-party interim government. 


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