• IMF expresses concern over hounding out of SEC chief

    Aug 19

    The International Monetary Fund has expressed concern over the resignation of the head of Sri Lanka's Securities and Exchange Commission, after stock market players he was investigating complained to Mahinda Rajapakse.

    Thilak Karuneratne stepped down after powerful traders sabotaged probes into corrupt practices.

    "It is sad to see the SEC lose yet another strong chairperson, and in such a short period too," Koshy Mathai, Sri Lanka's IMF resident representative, told Reuters in response to an e-mail query on the resignation of Karunaratne.

    "From all credible accounts, Karunaratne and his team were taking exactly the right steps to ensure that stock market participants obey the rules."

    "In any country, it is only with a firm set of regulations and an active regulator to enforce them that foreign and domestic investors will have confidence that the stock market is indeed a level playing field for all and not just designed for the benefit of a select few,"

    "This is an important issue for Sri Lanka, as development of the capital markets is a key priority in ensuring the country's continued rapid growth."

    Karuneratne's predecessor resigned in similar circumstances last December.

    Second sheriff run out of town (17 Aug 2012)

  • GSP + ‘A closed chapter’
    The European Union representative in Sri Lanka has stated that aid to the country was “unlikely” to increase and trade concessions revoked from the country will not be reinstated, urging the country to “move on” from the issue.  

    Bernard Savage, Head of the Delegation of the EU in Sri Lanka stated that,
    “We have had no request from the government for a new facility.”

    “To use the words of the Minister of External Affairs (GL Peiris) this is a closed chapter (in our relationship). The fact is that GSP+ was withdrawn and there has been no further discussion on that issue and Sri Lanka has not re-applied. We need to move on.”
    The statement comes as the withdrawal of the concessions from 2010 begins to take hold, with garment exports to the EU falling 10-15% this year, and further falls predicted.

    Savage went on to note that Sri Lanka was yet to fulfill conditions on the Inter Convention on Civil and Political rights, commenting,
    “I must further stress that the conditions in the GSP + is not about European rules but international rules subscribed by the countries themselves. It’s not our rules. It’s simply that for countries to benefit from GSP+ they should apply laws they have already subscribed for.”
    Rohan Abeykoon, Chairman of the Sri Lanka Apparel Exporters Association, stated that the loss of GSP+ had hurt the small and medium sized exporters the most, commenting,
    “It would be the loss of a critical mass where companies endemic to Sri Lanka and locally will lose while those with multinational connections will shift elsewhere and still survive… This is not a healthy trend”.
    On the subject of aid to the country, Savage stated that “a new country strategy will also be prepared”, noting,
    “We don’t expect to see a decrease in aid. (On the other hand) I think it is unlikely that there will be an increase but that’s because of constraints in our budget (crisis).”
  • Jaya and Karunanidhi condemn fishermen attacks
    Following yet another attack on 8 Indian fishermen by the Sri Lankan Navy, Tamil Nadu Chief Minister J Jayalalithaa and DMK president M Karunanidhi have both released statements condemning the attack and calling on the Indian government to do more to halt the assaults.

    Writing in a letter to Prime Minister Manmohan Singh, Chief Minister Jayalalithaa stated,
    "I am distressed to once again have to point out that the incidents of harassment of Indian fishermen by the Sri Lankan Navy simply continue unabated"
    "The Sri Lankan Navy, emboldened by the soft handling of the issue by the Government of India, is attacking/harassing the fishermen of Tamil Nadu with impunity. The statements at diplomatic level meetings of the two countries stating that "the use of force on fishermen cannot be justified by any means" remain only on paper and are honoured more in the breach by the Sri Lankan Navy, who seem to be making a mockery of the entire diplomatic process"

    "This incident is yet another instance of high handedness of Sri Lankan Naval personnel who keep on targeting the poor and innocent fishermen of Tamil Nadu while they try to eke out their livelihood through fishing". 
    The attack also provoked a reaction from DMK leader Karunanidhi who commented,
    “It is a fact that every time Tamil (fishermen) is attacked, state government takes it up with the Centre and the Prime Minister, who in turn takes it up with the Sri Lankan High Commissioner or that government to satisfy us. Sri Lanka assures attacks will not recur but they do happen within a day or two of that assurance."

    "Such incidents are a never ending story."
  • The King has spoken
    The Commissioner of Elections has expressed his pleasure at President Mahinda Rajapksa’s recent intervention that election laws must be abided by and cannot be violated.

    Speaking to Ceylon Today, the Commissioner Mahinda Deshapriya stated,
    “I am glad the President himself has got involved in handling the election law violations and instructed the police to take tough action and this will make things easy for us”.
    Perhaps now the misuse of state property and resources for campaign propaganda, described as “rampant” in some districts, and election related violence can finally be held to account.

    But then again, given Rajapaksa’s ruling-UPFA coalition is leading the way, perhaps not.

  • Undeterred and still looking to escape
    Despite an increasing number of arrests by the Sri Lankan Navy, asylum seekers remain undeterred in their attempts to flee the island, reported AFP.

    Tamil asylum seekers from Udappuwa who were recently arrested, told AFP,
    "We will try to go again after the case is over. We just have to wait for some time."
    Another said,
    “The future here is very bleak. We want to get out of poverty,"
    Local community leader Quintus Fernando also stated that continued fishing restrictions by the navy had forced many residents to seek greener pastures elsewhere. he commented,
    "It is three years after the end of the war, but fishermen are still required to get a 'pass' from the navy before setting out to sea. We can't just row out to fish."
    Earlier this month, the Australian government announced that they will introduce offshore processing of refugee claims in Papua New Guinea and Nauru, a move criticised by NGOs (see here and here) and the UN High Commissioner for Human Rights.

    Whilst Sri Lanka’s high commissioner to Australia welcomed the move, Navy spokesperson Kosala Warnakulasuriya slipped to the Sunday Times,
    “Opening up offshore detention centres in Papua New Guinea alone will not end the issue of human trafficking.”
    “The refugees believe they will have better living conditions in Papua New Guinea than in their villages in the North and East and other parts of Sri Lanka.” 
  • 8 more fishermen attacked by SL Navy

    Eight Tamil Nadu fishermen from Vellapalam, were found by Vedaranyam on Sunday, with internal injuries, allegedly as a result of an attack by the Sri Lankan Navy, reported The Hindu.

    One fishermen had a knife wound, whilst others alleged to have been attacked with pipes and ropes, and their nets slashed. The men are admitted to Vedaranyam hospital.

    The fishermen who left the coast of Vellapalam on Saturday morning, deny crossing the International Maritime Boundary Line. However, according to The Hindu, a GPS reading places them 38 nautical miles south-east off Arcottuthurai - inside Sri Lanka's claimed territorial waters.

  • SL minister can't understand UK FCO travel update

    Sri Lanka announced that it would be contesting the British Foreign Commonwealth Office's updated travel advice, warning Britons of an upsurge in nationalism, sexual offences and anti-western rhetoric.

    With the burning of Union Jacks and the barracading of UN offices all but a distant memory, the Secretary of External Affairs Ministry Karunathilaka Amunugama was shocked by the updated advice.

    Taking it with the "utmost seriousness" particularly due to the tone and timing, Amunugama said that he would like to know exactly how the UK came to this conclusion and had assigned the High Commissioner, Chris Nonis, to discuss the issue with the FCO.

  • More than two years gone... Still 49,000 to go
    An Indian housing project for Tamil IDPs has been declared 'on track', despite only 1,000 of the much vaunted 50,000 houses having been constructed, since the scheme was announced more than two years ago.

    Ashok K. Kantha, High Commissioner of India in Sri Lanka hailed the completion of the first 1,000 houses earlier this week, despite the houses having been formally handed over to Tamil IDPs some 8 months ago.

    The pledge to construct 50,000 houses was made in June 2010, as Indian Prime Minister Manmohan Singh toured the island. Since then only 2% of the promised houses have been built.

    Two years on and still another 49,000 left to go.

    See our earlier posts:

    Only 49,000 to go     (08 January 2012)

    India to rebuild Vanni schools, but promised houses yet to materialise (10 October 2011)
  • Tamil Nadu fishermen attacked by SL navy in Indian waters

    The Tamil Nadu government asserted that there had been 167 attacks on Tamil Nadu fishermen by the Sri Lankan Navy from 1991 - 2011, and those included attacks within Indian territorial waters.

    The attacks had resulted in the deaths of 65 Tamil Nadu fishermen, with 180 injured.

    See here and here.

    The state government's Advocate General Navaneethakrishnan made the submission before the Madurai Bench of the Madras High Court which included Justice PPS Janarthana Raja and Justice M Vijayaraghavan on Friday.

    According to The Hindu, the Centre's advocate, Additional Solicitor General M Ravindran, argued that there was 'no chance of the Sri Lankan Navy having entered the Indian waters as such movement by the warships would amount to waging a war.'

    The claim was backed by a list of documents submitted by Navaneethakrishnan, including First Information Reports by police forces in Rameswaram, Mandapam, Nagapattinam and Pudukottai, and counters previous assertions by the Tamil Nadu government that attacks only occurred when Tamil Nadu fishermen strayed into Sri Lankan territory.

  • Navi Pillay urges Australia to rethink asylum policy

    Commenting on the recently released report by a panel commissioned by the Australian government, the UN High Commissioner for Human Rights, Navi Pillay, urged Australia to rethink its asylum policy, and "break an ingrained political habit of demonising migrants and asylum-seekers".

    The panel's report, which recommended that off-shore detention be employed as it would disuade potentional asylum seekers, has received condemnation and criticism by rights groups Amnesty International and TAG (Tamils Against Genocide).

    Pointing out that there was "no empirical evidence that immigration detention deters irregular migration, or discourages people from seeking asylum", Pillay said that UN Human Rights Office had "long-standing concerns about Australia's mandatory detention regime", and reiterated that immigration detention "should always be applied as a measure of last resort, only permissible for the shortest period of time and only when no less restrictive measure is available."

    See here for full statement by Navi Pillay released on Friday.

    Related articles:

    Offshoring lacks transparency and accountability - TAG (14 Aug 2012)

    Amnesty 'appalled' at Australian report (14 Aug 2012)

    Increase refugee intake, but process offshore says Australian panel (13 Aug 2012)

  • Chinese engineers flown in amid questions of sabotage
    A team of engineers have had to be flown in from China in order to try and repair the Lakvijaya Coal Power Plant in Norochcholai, after a series of failures have led to power cuts across the country.

    The plant, built using a USD $455 million loan from China's EXIM bank, was constructed by Chinese workers from the China National Machinery Import and Export Corporation.

    Since having opened, a series of failures at the plant – deemed “quality issues” by the Chairman of the Ceylon Electricity Board – have led to island wide power cuts.

    The repair work is expected to take at least four days.

    Their arrival comes as Mass Media and Information Minister Keheliya Rambukwella said that the government were suspicious of sabotage at the plant, commenting
    “Some people also say the technological equipment is incomplete. Yet we are not really sure about this and are investigating the reasons for the breakdowns”.
  • Another Chinese project launched
    Sri Lankan President Mahinda Rajapaksa has inaugurated the launch of yet another Chinese-funded project in the country, an irrigation project in North Central and Eastern Provinces.

    The project is estimated to cost US$210 million, with 85% of the funds being provided by China and the construction is set to be undertaken by the China CAMC Engineering Corporation.


    Photograph: ColomboPage

    Previous Chinese-constructed projects in Sri Lanka have shown a host of defects, with a $1.4 billion port in the President’s hometown needing further work after a massive seabed rock obstructed the entrance and a failing power plant continuing to cause power cuts across the country.

    The current project has been touted to solve the water problems in the North Central Province for areas such as Kebithigollewa, Padaviya, Welioya, and Medawchchiya.

    It is expected to benefit 10,000 farming families in particular.

  • Sri Lanka says ready to host Commonwealth conference next month

    Sri Lanka is ready to host this years annual Commonwealth Parliamentary Association (CPA) next month, said the current chairman and Sri Lanka's speaker - Chamal Rajapaksa.

    The conference takes placed on 7th- 15th September in Colombo. Over 600 delegates from 54 countries are expected to take part.

    Addressing the media, Chamal Rajapaksa said, 'the CPA conference will help convince those belong to the Commonwealth that the values of CPA and the Commonwealth organization are well-preserved and will set the background for Sri Lanka to hold the 2013 Commonwealth Heads of Government Meeting (CHOGM)'.

    This year's conference will be on "Ensuring a Relevant Commonwealth for the Future", with the chief guest none other than Mahinda Rajapaksa.

    Not having the CHOGM 2013 in a state which kills with impunity is a good place to start.

  • Second sheriff runs out of town

    A case of demand … and supply.

    The head of Sri Lanka’s market regulator resigned Friday, saying he come under pressure at the behest of powerful stock market players being investigated for stock manipulation. (See Reuters’ report)

    Securities and Exchange Commission chief Tilak Karunaratne had been pushing for investigations into stock market malpractice, including so-called pump-and-dump deals in which investors are lured into apparently cut-price equities.

    "I don't even call them investors. They are crooks. The pressure from those crooks goes elsewhere and then in turn that party is exerting pressure on me," Karunaratne told Reuters.

    Although he did not elaborate, he didn’t need to.

    Last month, President Mahinda Rajapaksa, who is also the finance minister, met Karunaratne, high net worth investors and top Colombo Stock Exchange officials to discuss the market.

    Karunaratne’s resignation was the second in less than nine months - his predecessor left amid complaints from brokers that tougher regulations were hurting stock market prices.

  • Allow Tamils to go to their homes says Jayalalithaa

    Tamil Nadu Chief Minister, Jayalalithaa, urged Sri Lanka to allow the displaced Tamils to be allowed to return to their homes.

    In her Independence Day address, Jayalalithaa said,

    "At a time when we are celebrating the Independence day, Centre should at least now ensure that the Sri Lankan Tamils lodged in camps are sent back to their places of origin and ensured equal status on par with Sinhalas."

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