New alliances and Apollo drama

Predictably the business community is responding with a mixed reaction to the landmark deal between the SLFP and the UNP, the two main parties in Sri Lanka.

While most are praising the two sides for coming together – rare indeed for two parties who have been at each other’s throats for half a century – there are some who are skeptical, and rightly so to some extent, of the proposed agreement.

The skeptics say that politicians cannot be trusted and this latest deal could also end up nowhere.

There are those who say that the SLFP was pushing for an agreement with the UNP to silence the JVP, its one-time partner, and also negate the need for a parliamentary election.

Nevertheless – apart from the pros and cons – the fact that both sides are sitting down and discussing national issues and the need to come together must be applauded. In this day and age where politics overrides everything including nation, country and loyalty; two sides with a lot of bitterness between them sitting at a table and discussing a peace pact is rare.

One of the biggest stumbling blocks towards peace in the country – apart from Velupillai Prabhakaran and the LTTE – is the reluctance by the two parties to support a peace agreement when one is in power.

It is a case of one side proposing a peace pact and the other side opposing and vice versa when the roles are reversed.

A consensus on issues like peace, social development, governance and human rights between the two parties would certainly boost investor confidence. The Colombo bourse is certain to respond positively to these moves this week.

BOI and Apollo
We said it a couple of weeks ago – that the Board of Investment would have to find an escape route over the bungling of the Apollo Hospitals issue where it threatened to withdraw concessions to any new owners – and true to our forecast, it did happen last week. After a long explanation, the BOI said the same concessions would continue with a threat however … as long as the new owners conform to the rules in six months … The Sunday Times FT, repeatedly, consistently and exclusively, maintained that any listed company is open to a takeover as per rules of the Securities & Exchange Commission and the Colombo Stock Exchange. We don’t want to labour the point but we would like to ask one last question – if the BOI is bigger than the SEC/CSE and its regulations which was what was implied in its initial threat, then why write – at all -- to the CSE last week and explain? The BOI could have chosen to ignore the CSE … if not maybe for the faux pas.

President slams envoys
President Mahinda Rajapaksa correctly reprimanded the country’s overseas envoys last week for their lack of compassion and understanding on how to treat Sri Lankan migrant workers.

It is a well known fact that our workers are poorly treated by Sri Lankan missions in the Middle East.

There are two sets of rules at our embassies in labour-receiving countries - one for normal visitors and the other for workers. Missions in the Middle East must remember that are running on the sweat and tears of our workers.

Oil prices
The falling oil prices are a boon to a government struggling to cope with rising prices. For the second time in over a week, petrol and diesel prices were reduced providing some cheer to consumers groping in the dark for some relief from high living costs.