Columns

• President speaks to Basil in last-ditch effort for reconciliation between SLFP and JO before nominations, but major issues prevail
• Confident UNP finalises candidates list; Hambantota port project launched and new moves to  reduce prices of rice and coconut

One evening early this week, Basil Rajapaksa, a key player in the Sri Lanka Podujana Peramuna (SLPP), was en route to his home in Battaramulla after attending a meeting in Dehiwala. He had reached the Kohuwala junction when his mobile phone rang.As an aide explained, he was in his Land Cruiser with others including a media person. He was reluctant to answer. When it rang non-stop, he responded though he was not sure who the caller was.

It turned out to be Venerable Medagoda Abeytissa Thera, the chief incumbent of the Sunethra Devi Pirivena also at Kohuwala. A close associate of former Defence Secretary Gotabaya Rajapaksa, the monk has been in the forefront to re-unify the Sri Lanka Freedom Party (SLFP).

Prime Minister Ranil Wickremesinghe speaking at a ceremony held at the Parliament complex yesterday to mark the launching of the Hambantota Port project in association with a Chinese company. Pic by Indika Handuwela

“Kohomada apey veda piliwela issarahata geniyanney” or how do we take forward our programme of work, he asked Basil Rajapaksa. Even before the former Economic Development Minister could respond, the prelate declared “Obathumawa danna ekkenek innava” or there is someone who knows you. Soon another voice took over. It was President Maithripala Sirisena. “Mata den kathaa karanne naa neh. Kathakaranna beri ai? or you don’t talk to me now. Why can’t you talk? he asked Basil Rajapaksa.

Then a lengthy conversation ensued. Since the presidential election in January 2015, both Sirisena and Basil Rajapaksa had been avoiding each other. This was particularly at private functions. There were two such occasions. One was at the marriage of the daughter of Minister Anura Priyadarshana Yapa. Another was when Basil Rajapaksa was at the wedding of the daughter of Ceylon Workers Congress leader and former Minister Arumugam Thondaman. On that occasion, when he was exiting the Colombo hotel where the function was held, he saw Sirisena and his retinue coming in. They were at a distance. He returned and took a seat. Sirisena walked into the hotel only to nod at Basil and walk to a table meant for him. Now, for the first time since his election victory in 2015, Sirisena was talking to him.

Fuller details of what the duo discussed on the phone remain a secret. However, the Sunday Times has learnt that Sirisena sought to know from Basil Rajapaksa why he opposed talks for the reunification of the rival factions of the Sri Lanka Freedom Party (SLFP). The latter had responded that though he was against it on principle, after deliberations among themselves, he had not expressed reservations. He was in fact going to give it his full backing should the talks become successful. Basil Rajapaksa’s first task, as the phone call ended, was to ask the media person in his vehicle not to talk – or write, about that call.

In The Sunday Times (Political Commentary) last week Basil Rajapaksa admitted that he opposed the talks at reunification. The report said: “It was on the basis that it was against the people of this country. There were both pro-Government and those against who were opposed to it. There would be no force left for those who oppose if the ‘Joint Opposition’ were to change,” he told the Sunday Times this week. However, he said the Rajapaksas were at the butt-end of severe Government harassment. Therefore, Mahinda, Gotabaya, Namal and he met to discuss the situation in detail. It was noted that if the SLFP changed its present policies, the SLPP would have to take that into account. This is whether the SLFP is in the Government or not. This is notwithstanding the personal issues they face. Hence, there was general consensus to examine offers for re-unity and thus obviate blame for any outright rejection.

“They had noted that they should seek to stop the sale of national assets; halt Government moves to cut down subsidies; check the rising cost of living; mounting unemployment and — help to fight bribery and corruption. Particular mention was made of the Central Bank bond scam. ‘When we were moving forward with talks between the committees on either side, I knew I would be blamed if anything went wrong. I remained neutral. I thought if they decide successfully, I would do my best to get the rest of the party to fall in line,” said Basil Rajapaksa. Saying that ‘all Rajapaksas looked at it positively,” he added, “There were people who were trying to deliberately scuttle the process.”

During his telephone conversation with Basil Rajapaksa, President Sirisena made no secret of the fact that he had been trying to reach out to the one-time chief organiser of the SLFP now under corruption charges under the Sirisena dispensation. He said he had asked his brother Dudley Sirisena also to get in touch with him. Basil Rajapaksa explained that he was avoiding answering calls from unknown numbers because there were so many callers. However, he said upon his brother (Mahinda Rajapaksa) learning of it, he asked him to answer the calls. So he had in fact spoken to him. The sum effect of President Sirisena’s call was to seek Basil Rajapaksa’s support to bring SLFP intra-party talks to a successful conclusion. The issues before them, he had declared, could be resolved amicably. On Sirisena’s side, those connected to the last ditch attempts at a dialogue with the more dominant Mahinda Rajapaksa-led faction of the SLFP – with the clock ticking close to the nominations for local council elections — remained tight lipped. One of them said the latest efforts were being undertaken by four prominent members of the Buddhist clergy.

The Sunday Times has learnt that since President Sirisena’ telephone call to Basil Rajapaksa, one mediator, Venerable Athureliye Rathana Thera, has successfully narrowed down the differences on the two sides. Yet, a lot more difficult areas remain to be completed. As the new round of talks were under way, the most significant move is President Sirisena’s decision on Friday morning to appoint, in keeping with election laws, authorised agents for each district. In terms of the law, they could also be named for each electorate. Those agents have been already briefed that the SLFP and allied parties will contest under the Chair symbol. The proposal at present is for the rival group (‘JO’ – Joint Opposition) to share fifty per cent from the list of candidates whilst the remaining fifty per cent will be from the SLFP and its allies. President Sirisena is holding on to the nomination list until tomorrow hoping there would be a decision by that time.

The arrangement envisaged as a result of Ven. Rathana Thera’s intervention is to have an Executive Committee comprising representatives from both sides to run matters related to the polls. In addition there will also be a five member apex body with the SLFP holding three seats and the ‘JO’ two to take immediate policy decisions. There has been broad agreement over these two bodies. Names for this apex body will be nominated by Sirisena and Mahinda Rajapaksa.

The events since Sirisena’s telephone call this week clearly showed that the President, who is also the leader of the SLFP, is still keen to join hands with the SLFP rivals to contest the local polls. The fact that he is in some difficulty electorally, and with his party supporters around the country is no state secret. His close associate Mahinda Amaraweera, General Secretary of the UPFA, the coalition headed by the Sirisena-led SLFP recently said that the SLFP has no doubts about an election victory at the local government polls, but is now singing a different tune. He says the UNP is ahead due to the SLFP split.

All this is not withstanding the collapse of the dialogue and each side preparing to go its own way. That the President is using a carrot and stick policy to win over the SLFP rivals has been clear to the SLFP faction supporting the Rajapaksas. Ven. Athureliye Rathana Thera called on Basil Rajapaksa this week for talks to bridge the differences between the two sides. The venerable Thera who represents the Jathika Hela Urumaya (JHU) in Parliament insists that he is no longer a member and is an independent MP. The JHU is contesting the local polls with the UNP. The party leadership has asked that he give up his seat in Parliament but the venerable monk and honourable MP is refusing to do so.

At the same time, this week, Sirisena asked Minister Mahinda Samarasinghe to conduct a news conference and warn the rival group of the consequences of contesting separately.
The following Q & A at last Tuesday’s news conference by Samarasinghe at the SLFP headquarters in Darley Road is revealing:

Q: Is the Sri Lanka Freedom Party going to contest elections on its own?
A: There are other parties contesting together with us. There is time to finalise the nominations. It will be officially known soon.

Q: The Joint Opposition says it will be contesting separately. Isn’t that a disadvantage?
A: Under the SLFP Constitution, they (SLFP members) cannot extend support to another party. That alone is sufficient to expel them from the party.

How can they tell the people to vote for them? We have the technology to record and video their speeches. Even at the village level we could do this. If they have been elected from one party they cannot be promoting another party. That is unconstitutional. They cannot remain as SLFP members in Parliament. They cannot remain in provincial councils after doing so. We will not keep quiet, we will be watchful as we go for elections. This will apply to all – from the highest to the lowest. This does not apply to MPs alone. This applies to the provincial council members as well.

Q: Are you ready to take strict action against them after the elections?
A: Absolutely. If they go and work for another party that is against the (party) Constitution. We have a solid case. They will lose their position as MPs and provincial council members if they do that. There are no two words about it. The doors to join the SLFP and work for President Maithripala Sirisena are open.

Q: Will there be a disciplinary inquiry
A: Yes, that has to take place

Q: (not clear)
A: The party under the ‘Pohottuwa’ (Flower bud) is a party made to destroy the SLFP. Therefore, they cannot contest under that symbol. If they go even to the villages and campaign for the ‘Pohottuwa’ we will gather that information for a case.

Q: They claim they defend the SLFP principles.
A: That is a fairytale – We are speaking from the SLFP Headquarters. They are speaking from temples.

Q: What is your symbol for the elections?
A: There are various views. No decision has been taken. In some places it may be advantageous to contest under the Hand symbol (SLFP) and in some under the Betel leaf (UPFA). Whether we should contest under one symbol- these are all being discussed. No final decision has been taken. We have time.

Q: So you can win without Rajapaksa’s support and also trying to get them to join you.
A: Even a small child will know, if we unite we will be stronger. But, if we cannot unite, we are still confident of winning. Do not assume that with only party supporters you can win elections”.

Notwithstanding these developments, in both sides of the divide, there are sections who are still hopeful of reaching an electoral arrangement. However, there are still other senior ministers who are of the view that “the road ahead is still difficult and many differences have to be ironed out.” Those in favour argued that the process, at least for the moment, is focused on the local council polls and, therefore, they saw no major obstacles. Either way, re-unity and fielding candidates together would be more than bad news for the UNP leadership. It would be logical for UNP candidates to level strong criticism against their rivals. Hence, it would be directed against a unified SLFP and is bound to generate a lot of bad air. One such issue in focus would be facing some return fire on the Central Bank bond scandal. Others include the general issue of bribery and corruption which have become the subjects of posters in many areas.

There has also been bickering in the SLPP-led ‘Joint Opposition’. Its partners are demanding more slots for ‘their’ candidates in the coming local elections. Amidst that, parties like the Mahajana Eksath Peramuna (MEP), Desha Vimukthi Janatha Peramuna (DVJP) and the Sri Lanka Mahajana Party (SLMP) also faced a legal issue. They were members of the United People’s Freedom Alliance (UPFA). This is why MEP leader Dinesh Gunawardena, D. Kulasuriya (DVJP) and Asanka Navaratne (SLMP) wrote to UPFA General Secretary Mahinda Amaraweera seeking to take part in the UPFA Executive Committee meeting. The request was allowed and they were present at the Exco meeting chaired by President Sirisena. Ahead of sending the letter, Dinesh Gunawardena told the Sunday Times we obtained concurrence of the ‘JO’ leaders to go for this meeting. It also led to some speculation that there was a split in the ‘JO’ ranks and a drift towards Sirisena. Dinesh Gunawardene laid this to rest in a bid to quash the speculation by calling for greater security for Mahinda Rajapaksa who would lead the SLPP campaign as it stands. Gunawardene told the Sunday Times ; “At the meeting (with the UPFA), we raised issue over our three parties contesting under another symbol other than the Betel Leaf. This was agreed,” he said. All three parties are members of the UPFA Exco.

On the other hand, the SLFP’s coalition partner in Government, the United National Party (UNP), is on high gear preparing for its campaign. The UNP is fielding its own candidates and holding its own election rallies. Of course the UNP also has other concerns. The main one was aired on Tuesday at the weekly ministerial meeting by Prime Minister Ranil Wickremesinghe. He declared that immediate action was necessary to lower food prices since the cost of living had reached a new high, causing difficulties to the people. Government ministers devoted considerable time to the issue after clearing cabinet memoranda that were listed.

Contributing to the heavy costs, Premier Wickremesinghe observed, were high prices of rice and coconut. He said these two items together formed 60 per cent of the food items that were expensive. He felt this could have an impact on the upcoming local polls. Three ministers – Mangala Samaraweera, Malik Samarawickrema and Rishad Bathiuddin – had together put forward a memorandum.

It said that the Cabinet Sub Committee on Cost of Living had taken a decision early this month to import and “distribute rice at reasonable prices all over the country.” It noted that Industry and Commerce Minister Rishad Bathiuddin had recommended the purchase of 175,000 metric tonnes of rice — Nadu rice -parboiled 90,000 metric tonnes, Samba –parboiled 60,000 metric tonnes and White Raw 25,000 metric tonnes. Minister Bathiuddin had also recommended the purchase of 30,000 metric tonnes of Nadu (parboiled) rice from Smart Global Private Ltd.

The ministers decided that a total stock of 205,000 metric tonnes of rice should be imported before January 15 next year. The wholesale price of Nadu has been fixed at Rs 68 a kilo (retail Rs 74), Samba at Rs 59 a kilo (retail Rs 65) and White raw rice Rs 72 a kilo (retail Rs 78). The distribution is to be carried out through Lak Sathosa Ltd, Co-operative Societies and Franchised Dealers of Laksathosa. It has been decided that the General Treasury should bear the difference in the selling price by the CWE and the wholesale prices mentioned above.

A decision by the ministers to import coconut hit a snag when it was pointed out that such imports were prohibited under the Coconut Cultivation Act. Hence the Cabinet of Ministers decided to import coconut kernel. That is the husked coconut and not the whole fruit. It is to be distributed for sale, particularly in principal towns and the ministers expect a drop in prices as a result. Coconut prices have reached unprecedented levels with prices ranging from Rs 75 to Rs 110 a nut.

A day after the weekly cabinet meeting, ministers gathered again for a special session at President Sirisena’s residence in Paget Road (Mahagamsekera Mawatha). It was to give “approval for the issuance of Gazette Notification in the provisions available under Section 3 (2) notice for Strategic Development Act.” It was approved by ministers and later Gazetted. It was then tabled in Parliament and was passed on Friday.

Both Finance Minister Mangala Samaraweera and Development Strategies and International Trade Minister Malik Samarawickrama placed a joint Cabinet memorandum at the special meeting. It said that Hambantota International Port Services Company (Private) Limited, which has been formed by the Government with a Chinese state owned company, will see a total investment of US$ 606 million from China.

Here are highlights of what the two ministers told the special meeting of ministers on Wednesday:
“A Project has been identified as a Strategic Development Project in terms of the Strategic Development Project Act No 14 of 2008, as amended, for the purpose of restructuring the Hambantota Port Development and transforming the same to be a commercially viable national asset in collaboration with the Sri Lanka Ports Authority.

“The objective of the redevelopment is to transform the Hambantota Port operations to a profitable business venture by infusion of equity, professional international management standard and adoption of a viable business model, overcoming the burdens and negative impacts that the Project has caused on the national economy and thereby enhance the position of Sri Lanka as an International Maritime Centre.

“The Project is dedicated to undertake the management of all the common user facilities and services of the Port of Hambantota such as, including but not limited to, port security, navigational services, pilotage, anchorage, provision of aids to navigation, dredging, widening (capital and maintenance), emergency response and pollution control services.”

The Joint Memorandum lists the Economic Benefits of the project as “one of the largest foreign direct investments in the country with cascading inflow of foreign exchange with an additional potential investment of around US$ 400 to 600 million within the Project Implementation Period. A competitive and efficiently operating commercial Port is a dire necessity and a catalyst for attracting other port related as well as export oriented investments. The restructured Port will fill the gap paving the way for more foreign direct investment to flow and exports to grow.
The Project will benefit the Southern region by the development of infrastructure and bringing potential employment generation and consequent income earning opportunities for the local people.”

Premier Wickremesinghe formally handed over the Hambantota Port to the Chinese firm at a brief ceremony held in Committee Room 1 in Parliament yesterday. In return, the Chinese firm handed to him a cheque for US$ 300 million. A further ten percent of the funds agreed upon is to be given within one month, an official said. In further six months, the official said, another 60 percent would be extended. The implementation period of the project has been placed at seven years.

The funds from China for the Hambantota Port development project will enhance the Government’s foreign reserves. Yet, it comes at a time when the two ruling parties are at odds with fears that the divide may turn even wider. That there is a sense of urgency over winning the local polls has therefore become priority number one for President Sirisena. So much so, he has personally initiated the revival of the on/off talks to unite his SLFP with the breakaway faction of the party.

A success will strengthen his position and send a strong signal of warning to the UNP. If it ends in failure, to put it mildly, President Sirisena would have boxed himself to a corner for which he and his close advisers will have to answer. More so when there does not seem to be any clear strategy or plan behind all their efforts beyond the local elections.