News/Comment


22nd February 1998

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Contents


ACHC call

The All Ceylon Hindu Congress has appealed to President Kumaratunga to restore the public holiday for Mahasivarathri and take steps to ensure that devotees are not harassed by the security forces that night.


Batty hits out at Eppawela deal

The new Science and Technology Minister Batty Weerakoon has accused the government of having an underhand deal with an American company for the sale phospates mines in Eppawela.

The Minister who now leads the LSSP said the government had not been transparent on this deal with the American company, in the face of protests against the deal by political and scientific bodies.

Meanwhile the UNP is to stage a protest campaign against this project in Eppawela next week.


How effective is it?

Ban on gory pictures

By Shelani de Silva

The Government’s censorship introduced on Wednesday to prevent publication of gruesome pictures of people killed in violent incidents has run into a storm.

The Competent Authority Ariya Rubesinghe, who is also the Director of Information, told The Sunday Times that he was seeking clarification from the Defence Secretary about the regulation.

‘Defence Secretary is yet to contact me on this,’ Mr. Rubesinghe said on Friday evening.

Confusion arose over the regulation as some of the gory pictures of those killed in violent incidents still could be published despite the regulations promulgated by President Chandrika Kumaratunga under Emergency Regulations.

The regulation states that, ‘No person shall except with the permission of the Competent Authority publish or permit the publication in any newspaper or in the electronic media of any photograph depicting a person killed or injured as a result of a bomb explosion or any other act which constitutes an offence under the Prevention of Terrorism (Temporary Provisions) Act No. 48 of 1979 or any part of the body of any such person’.

Mr. Rubesinghe explained that ‘the decision was taken purely on humanitarian grounds and it is not a censorship,’ he said.

Although the ban is under the PTA, pictures of gruesome murders and accidents do not come under the regulations.

The regulation created confusion last week. A Sinhala daily on Friday carried gruesome pictures of a murder that occurred in Angunukolapalassa.

Media Minister Mangala Samaraweera on Thursday told reporters that the decision to ban the publication of gruesome pictures was taken by the President following representations made by psychiatrists, doctors and psychologists that these pictures could affect the minds of young children.

A spokesman of the solicitor general’s department declined to comment on the legal controversy.

The regulation has come under criticism by electronic and the print media.

They argued that banning such pictures will deprive them from giving a true picture of the incident and called this a ‘censorship’ on the electronic media.

MTV News Director Tyrone Devotta told The Sunday Times that the minister should have held a meeting with the media heads to discuss the regulation.

‘When there is war there is death. But with this regulation it will be war without death. We will not be able to cover a bomb explosion or even report from hospital. So we will not be able to give a true picture,’ he said.

According to Dr. Raja Edirisinghe, psychiatrist, banning gruesome pictures will not have any effect specially in a world where there is access to information technology.

‘One has only to get through to the Internet service where there is plenty of torture, rape and crime. By banning, people will want more of this kind of news. Some might even get the wrong information,’ added Dr. Edirisinghe.


Krishanthi case suspect dies

By K.M Weeraratne

The fifth accused in the Krishanthi Kumaraswamy murder case, soldier Saman Nijeyananda Alwis died in the Colombo National Hospital on Thursday.

The suspect fainted last Wednesday at the Colombo High Court.

He was admitted to the hospital by prison officials on the same day and died of meningitis, hospital sources said.


New party for Buddhists

The formation of a political party to ensure the rights of the majority community was discussed at a meeting held yesterday at the International Buddhist Centre, Kandy with ACBC members being among others present.

At the meeting attended by Buddhist clergy and laity it was pointed out that both major parties today appeared to be interested more in the rights of the minorities than in the majority.

Meanwhile, an islandwide anti-package campaign is to begin shortly under the auspices of the Samastha Lanka Sangha Sammelanaya. It was decided at a meeting also held in Kandy yesterday, sources said.


Cooray, Hema discuss Prema plans

Former UNP General Secretary Sirisena Cooray on Thursday left for Australia but he is expected back within a month to finalise arrangements for the Premadasa commemoration ceremonies on May 1 — an event which last year sparked a controversy in the UNP.

Prior to his departure, he met Hema Premadasa, the widow of the slain President R. Premadasa, and her son Sajith to discuss among other things the arrangements for the commemoration meeting.

Arrangements are being made to hold the main commemoration ceremony at the Gam Udawa site at Kataragama which comes under the Hambantota district where Sajith Premadasa is the UNP organiser. (See also political column on page 8)


Entry of new tea broker sees monopoly shaken

By Asantha Sirimanne

Cracks are emerging in the tea broking oligopoly in Colombo with a new broker with substantial financial clout attempting to break into the business.

Asia Siyaka Commodities (Pvt) Ltd., a joint venture with Asia Capital group and the break-away top management of Forbes & Walker Tea Brokers, formally applied for a licence from the Tea Board last week.

Within days after the application, the Colombo Brokers Association, made up of seven brokers who have the exclusive right to deal at Colombo auctions, slashed the interest rates on funds advanced to tea producers.

Private tea factory owners who provide tea for auctions borrow funds from the brokers, until their stocks have been sold and funds realised from overseas buyers.

The seven brokers have been advancing funds at around 26 to 27 per cent to factories, and the rates remained almost the same despite general interest rates coming down drastically during the last two years.

Last week producers were informed by the Colombo Brokers Association that the interest rates have been cut to 21 per cent per annum. With the benefits of competition becoming apparent there is support from the trade to allow new brokers to function at Colombo auctions.

“We are fully supportive of a new entrant to the trade,” Private Tea Factory Owners Association President Edward Welikala said.

‘’Even before the new company started trading, interest on funds advanced to us have been reduced by 5 per cent. All this time the brokers were fleecing us at 27 per cent because there was no competition,” Mr. Welikala said.

The brokers are believed to advance around Rs. 1.5 bn to the producers at any one time, and a reduction of 500 basis points in interest estimated to save the producers at least Rs. 75 mn a year.

Observers say a similar situation existed in the stock broking industry with almost the same companies that make up the Colombo Brokers Association, banding themselves together to trade in shares, and resisting the entry of new members.

However with the government taking a keen interest to develop the stock market, the regulator SEC, was strengthened to act in the best intersts of all market participants, and the oligopolistic powers of the broking community have been pruned.

New brokers have also been licensed bringing new expertise to the marketplace. The SEC also acted to bring down brokerage from 1.5 per cent which was considered too high.

Industry sources say the tea market has been expanding with production rising from 178 million kilograms in 1992 to 276 mn kgs in 1997 while tea prices have also been rising, opening up opportunities for new players in the industry.

Despite the opportunity for higher revenues, last month the Colombo Brokers Association attempted to raise brokerage charges by 50 per cent to 1.5 per cent of sale price. But after producers protested to the Tea Board the matter was suspended.

New brokers to the tea industry also have to apply to the Tea Board for a licence.

‘’The Tea Board should have no hesitation to issue a licence,” Mr. Welikala said. “If there are more brokers monopoly practices will end.’’

There was speculation that Asia Siyaka application to the Tea Board had been referred to the attorney general after a broker protested, in a bid to delay the licensing process.

“We have received two applications for commodity trading,” Tea Board Director General Rohan Maligaspe said. “They are being processed.” Asia Siyaka Chief Executive Ravi Kumararatne also says they also have every confidence in the Tea Board’s licensing process.

Financing producers had been one of the key income streams of tea brokers. Though big times brokers, like Forbes & Walker and John Keells have access to their own funds, the smaller brokers borrow from banks at 20-22 per cent and lend to producers.

Asia Siyaka will also be able to dip into cash rich Asia Capital for lending. Industry analysts warn that with interest rates being brought down to 21 per cent some of the smaller brokers who borrow from banks will see a part of their income disappearing.

The main advantage the new company has is having a team of professionals who have 15 to 20 year’s experience in the field. “We are confident that with the level of service we provide, clients will come to us,” says Mr. Kumararatne says.


Continue to the News/Comment page 2 * Estate minor unions to carry out passive resistance * Top level changes at Rupavahini and SLBC * Police quiz two suspects * Ashraff's burning threat under fire * 'Death threat from NHDA'

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