The week's political events clearly show that the main opposition, the UNP, is making a headway in its efforts to re-organise the party while the government is embroiled in a controversy as to how it would manage its own affairs.
Amongst the Ministers, G.L. Peiris is faced with the most severe burden being unable to find enough finances to bridge the 96-97 budget.
The government's privatisation programme has not fetched enough money for this and it would be difficult for the government to bridge the deficit with the ever escalating defence expenditure.
The government has apparently lost its grip on the business leaders too since most of the businessmen find it difficult to exist in the current economic environment. Some firms have already begun retrenching staff on account of the constant power cuts and bad business turnover and this must result in a major socio-economic problem in time to come.
The future is bleak economically, so much so that it prompted the governmental authorities to invite the Treasury's former Deputy Secretary, the controversial K. Shanmugalingam, to advise the government on how to pull itself out of the economic quagmire. But the government believed his price to be too much and it ultimately had to drop the idea.
In this background, the UNP organised a seminar for the business leaders from July 15-17. This was attended by more than 125 leading businessmen.
The business leaders attended this meeting despite a news item published in the Sunday Observer under the caption "Government circles watch Opposition manoeuvres - UNP to meet business leaders," which was interpreted as a warning to the business community.
The Observer said the moves by the opposition UNP to mobilise support in the business community were being watched carefully since it was feared that the UNP may mislead business people over the devolution package and cause confusion over the current economic strategy.
However, the business community ignored the Observer warning and participated in the seminar in full strength though some of them thought that the venue, "Sri Lanka" was not suitable for such a seminar.
Among the business magnates who participated were: Ken Balendra, Ajith Jayaratne, Rienzie Wijetileke, R. Sivaratnam, Hemaka Amarasuriya, Mahendra Amarasuriya, Sunil Mendis, Chanaka de Silva, Lakshman Watawala, Mohan Pandithage, Professor A.T.M. Furkhan, Herbert Cooray, Rohan Hapugalle, Ananda Athukorale, Patrick Amerasinghe, Justin Meegoda, Susil Moonesinghe, Edgar Gunathunge, Richard Law, Tilak de Zoysa, Merryl Fernando, Soli Captain, Nigel Austin, Lakshman Hettiarachchi, Gilbert Jayasuriya, Sanath Ukwatte, Cubbie Wijetunge, Stanley Jayawardena, Ravi Thambiah, Cornel Perera, Mani Kundanmal, Ms. Amari Wijewardene, Lucille Wijewardene, Vajira Wijewardene, Ana Punchihewa, Capt. Vairasinghe, Malik Perera, J. Selvanayagam, Nimal Cooke, P.I. Pieris, Hari Selvanathan, N. Senathirajah, Asker Moosajee, Jagath Fernando, Astraff Omar, Rusli Hussain, Gamini Edirisinghe, Lalin Fernando, Pestomjee, Nivaard Cabraal and Mahinda Amarasuriya.
At the seminar UNP chairman Karu Jayasuriya spoke on the structure of the party. Charitha Ratwatte spoke on a new vision while Milinda Moragoda made a presentation 'on achieving a creative equilibrium - policy reforms in to-days UNP', which included a quote from Malaysian Prime Minister Dr. Mahathir Mohamed's speech at the silver jubilee celebrations of the Malaysian Institute of Engineers on April 13, 1984.
The quote said:
"We are what we deserve to be. If we are not prepared to work hard for ourselves, then we deserve to be left behind. So before we blame others, spare some thoughts for our own shortcomings and correct them."
He presented a balance sheet of the UNP's strengths and weaknesses at the time Ranil Wickremesinghe took over as party leader in 1994. He invited the audience to add to the list of weaknesses during the discussion.
Thereafter he put forward an illustration of a triangular model. The corner-stone of the UNP's approach, he said was political/social stability, economic prudence and a business friendly climate.
In the UNP's view Mossgod said, the ingredients required to obtain this equilibrium were 1) leadership 2) consenses 3) consistency and 4) management.
Thereafter he analysed the critical success factors required for Sri Lanka to reach NIC status under a UNP regime. Finally, the businessmen were trusted to develop on or criticise the presentation.
UNP MPs would be visiting private sector companies to see how they work.
He also included a survey conducted by the Research International on Political/Social viability. It said the government's privatisation programme was approved only by 26% of the people while 61% had disapproved it, a 13% had remained non-commital. The following are some of the RI results.
*Sale of Colombo Gas Company to Shell
Approve - 11%
Disapprove - 54%
No Opinion - 35%
*Workers' Charter
Approve - 32%
Disapprove - 11%
Don't know what it is - 53%
No answer - 4%
*Dissatisfied with government's handling of the economy - 58%
*Concerned about the unbearable cost of living - 72%
*Political Package
Approve - 37%
Disapprove - 59%
No Answer - 4%
The seminar included a high tech Stephen Spielberg style video presentation prepared by former journalist Irvin Weerackody, now a key player in the party's media outfit. Only yesterday he took wing to England to study the Conservative Party's media approach for the next elections.
UNP Leader Ranil Wickremesinghe told the businessmen it was the UNP which introduced market reforms to the country. "Our aim is to work for the welfare of the people and the country. In this effort, we should have a very strong business foundation.
"In the world market nations don't compete but firms do. Therefore it is necessary that Sri Lanka become a firm with a strong foundation in the world market," he said.
Asked about the political package, Mr. Wickremesinghe said the UNP would support greater devolution within a unitary constitution.
But when the UNP was called upon to act in a spirit of statesmanship and co-operate with the government in solving national crises, Mr. Wickremesinghe said statesmen were retired politicians and that he had no intention of becoming one. He said he had given the government two years to act on the pledges given to the people and now it's time for the opposition to act.
On the Workers' Charter, Mr. Wickremesinghe said it was left entirely in the hands of the government and the UNP did not have any interest to speak on the matter.
"Just prior to the elections, the government made a commitment saying that necessary laws would be enacted to safeguard worker interests and after the election the government promised concessions to the private sector and now we are watching what the government is trying to do, as to how they would implement the Workers Charter," said Mr. Wickremesinghe.
The merits and de-merits of the Workers' Charter were discussed elsewhere too.
Labour Minister Mahinda Rajapakse who was to present the Workers' Charter for approval of the Cabinet last week held it back after he learnt that a powerful minister was trying to oppose the move.
Further, President Chandrika Kumaratunga before she left the country on Sunday prepared a note to the Cabinet advising then to refrain from approving any cabinet paper, not endorsed by the Treasury with observations.
On Wednesday Minister S.B. Dissanayake told friends at an evening gathering at his residence, that the Workers' Charter should be thrown out as a useless piece of paper since it could deter foreign investors.
Mr. Dissanayake criticised the Workers' Charter as a piece of legislation which would put employers into great difficulties and warned that such a bill would not help the government in its task to generate employment for the youth.
At the Cabinet meeting the Workers' Charter was not discussed or taken up but many other matters were discussed, including Minister Ashraff's proposal to shift his ministry to the Bristol Building at Fort.
Mr Ashraff putting up a cabinet paper, said it should be considered urgent since he could not stay where he was at present.
Mr. Ashraff proposed that the building be rented out at Rs. 1.2 million a month. The proposal was however held back by the cabinet on the strength of the note by President Kumaratunga.
The matter is likely to be taken up at the next cabinet meeting.
During the previous UNP regime plans were afoot to sell this premises to the Employees Trust Fund (ETF) but after the change of government Minister Mahinda Rajapakse decided otherwise since he found a discrepancy in the valuation report.
In the absence of the President the cabinet did not discuss any matter at length other than the security situation. But soon after the meeting ended, Ministers discussed many things, including the indictment on Prime Minister Sirima Bandaranaike by a member of the Mulberry group Dilan Perera.
The Prime Minister looked sad when acting transport Minister Nandimithra Ekanayake discussed the matter with her. At this stage Minister Mahinda Rajapakse also joined the discussion and asked the Prime Minister as to who was trying to question her on her decision to send letters to the feuding Bangladeshi leaders through her son Anura.
Ms. Bandaranaike replying Minister Rajapakse said a person who joined the party recently was trying to question her on the matter.
Minister Rajapakse inquired whether there was anybody in the People's Alliance or for that matter in the SLFP who could ask questions on that matter from a highly respected personality such as Ms. Bandaranaike.
It is entirely left to Ms. Bandaranaike as to what she should do with her son Anura and it is nobody's business, Minister Rajapakse said while consoling the Prime Minister. Many Ministers agreed on the matter, expressing solidarity with her.
At this stage Ms Bandaranaike said "I know who is behind this", pointing her finger to a powerful minister.
When the matter relating to Dilan Perera's query was reported in the newspapers, Ms. Bandaranaike summoned the secretary of the Mulberry Group, Upali Gunaratne to ask more about Dilan Perera's move.
Though Mr. Perera has moved that certain questions should be raised on the matter the Mulberry group has apparently dismissed it saying that it was not proper for them to ask such questions from the Prime Minister.
The Mulberry group now suspects the involvement of a powerful Minister in this matter and is of the view that the party hierarchy has planted certain members in the Mulberry group in a bid to de-stabilise them. Some members spoke about the importance of weeding out this lot and cleaning the Mulberry group.
Ms. Bandaranaike's meeting with Mulberry group secretary was cordial and held in a very friendly atmosphere but the Prime Minister firmly said that she knew what to do if Dilan Perera wanted to raise questions on her decision to send letters to the Bangladeshi leader through her son, Anura.
Apparently after the meeting with Prime Minister Bandaranaike, Mulberry group secretary Upali Gunaratne decided to write to the newspapers.
The letter addressed to the Editor Sunday Times referring to last Sunday's Political column reads as follows:
"Your political correspondent has stated in your 'Sunday' 14th political column, that the Mulberry Group has decided to protest over the Prime Minister's decision to send two letters to feuding Bangladesh leaders through M.P. Anura Bandaranaike, her son, when there were other P.A. members going for the same event.
"It is true that Dilan Perera, M.P. brought this matter up and several MPs voiced their views regarding this issue.But in the end it was decided that we should leave this matter for the higher ups to decide, as many members expressed their respect for the Hon. Prime Minister and said it was too delicate a matter for our MPs to deal with.
"It is saddening to note that whenever an MP voices his free opinion (the Mulberry Group meetings are the only place to do so), newspapers carry it as "voiced by the Mulberry", and even worse; as "decided by the Mulberry" which has over 45 other MPs as members.
"I would be thankful on behalf of the Mulberry Group if you would make your good readers aware of the truth."
A similar incident took place in 1966 when the Ginger Group of the UNP sought an appointment with the then Prime Minister Dudley Senanayake to discuss certain issues.
Mr. Senanayake invited them to Temple Trees and over a cup of tea told them in plain language that there cannot be a group within a group and therefore he cannot listen to any representation.
An infuriated group of 22 MPs meekly walked out of Temple Trees.
The pertinent question is, will history repeat this time at Rosmead Place?
Similarly, some members of the Mulberry group made another blunder last week when Matara District MP Dallas Alahapperuma raised a matter with regard to an alleged irregularity in the Insurance Corporation of Sri Lanka.
He raised the matter which pertained a newstory which appeared in the Ravaya that Sunday involving the Insurance Corporation of Sri Lanka and the Union Bank.
Subsequently the Sunday Observer carried a lead story under the headline, "Insurance Corporation official, banking executive under investigation - probe in to Rs 700 million transaction.
When this news item appeared in the state-run Sunday Observer, the Colombo's influential bankers started their guessing game to ascertain the bank involved in the matter.
There were only two commercial banks opened in the country around one year ago - the Union Bank and the Pan Asia Bank. Pan Asia Bank later denied any involvement in the matter leaving the business circles to suspect the involvement of the Union Bank.
When the Managing Director of the Union Bank, S. Shanmuganathan, read through the news item, he thought of informing the Chairman and summoning a meeting of the directorate.
Later they consulted Romesh de Silva PC., through their lawyers Murugesu and Neelakandan and found that there was a prima facie case for libel.
Subsequently as per instruction a letter of demand was sent to the Chairman of Lake House stating that the Union Bank is the first to come out with some innovations in Sri Lanka and the first bank to establish four offices in its first year of operation.
It said that there was no placement of Rs 700 million in a current account with the Bank and there was no loss to the tune of Rs 75 million to the Insurance Corporation of Sri Lanka as claimed by the news item.
Furthermore, it stated that there was no request for withdrawal of monies deposited in the bank as alleged in the news item.
It was also pointed our that none of the banks executives was under investigation as sought to be made out in the story.
It said that the news item also carried in the Silumina and Thinakaran Vara Manjari has caused severe loss and damage, and estimated the loss as Rs. 100 million.
The Managing Director simultaneously wrote to the Chairman of the Insurance Corporation. His letter said:
"We refer to the various reports in the local press during the past few days, on certain financial transactions of your Institution with Union Bank where some reports have specifically named our Bank, where as others have described the bank as "private Bank opened one year ago" which clearly identifies the Bank as Union Bank.
"We are unaware of any investigation or report alleged in the news items. The recent press reports have been very damaging to the Bank, specifically the following which are totally false:
1. Rs. 700 million was lying with Union Bank in the current account for which no interest was paid.
2. When ICSL, requested withdrawals of the funds, the Bank was not in a position to do so.
3. A Bank official is being questioned in this connection.
4. A Bank official involved in the account relationship has fled the country.
"These statements are false and malicious and definitely impact the standing of the Bank. Certainly these statements would also have a negative impact on the reputation and standing of your Institution. In view of the Bank Secrecy Laws, we are unable to issue a statement which will clearly prove that the allegations made in respect of the transactions are totally false. In the mutual interest of our two organisations, we sincerely request that you release a statement to the press covering the two main issues which are:
1. "Rs. 700 million was never lying in the current account with Union Bank.
2. "When withdrawals are made, there is never delay or refusal from the Bank.
"We look forward to your kind co-operation."
Following the news item, Mr. Shanmuganathan had a private meeting with the Governor A.S. Jayawardena of Central Bank and handed over a letter setting out facts on the current account in question.
It said on several occasions the current account maintained by the Insurance Corporation had been overdrawn by several millions, and that the current account and a savings account were opened at the Union Bank with the approval of the Board of Directors of the Insurance Corporation in July 1995.
The bank also denied that they were not in a position to release the money withdrawn by the Corporation at any stage, and the ICSL had a current account running to Rs 700 million.
The Governor, having realized that the Bank was not at fault at any stage, telephoned the acting Chairman of the Corporation - since the Chairman is out of the country - and advised him to issue a press release stating the correct position. However, the acting Chairman appeared to be reluctant since it was not a matter coming under his purview and left it to be decided by the Chairman on his arrival.
But now some Mulberry MPs say that this was a result of a squabble between some members of the Board of Directors of the Insurance Corporation of Sri Lanka.
As a result of this episode the office of a Deputy General Manager of the Insurance Corporation has been sealed but it was not clear as to who has made this order pending investigation.
Among other matters, the President's tour abroad and the arrival of Miss World Jacqueline Augilera took a prominent place last week.
Media Minister Dharmasiri Senanayake was the most fortunate among the ministers who were present at a reception accorded to the Miss World in Colombo. The similing Miss World greeted the Minister with a kiss, on his cheek and this was discussed even by the Minister after Wednesday's cabinet meeting with a jovial remark by Deputy Defence Minister Anuruddha Ratwatte refering to the height of Minister Senanayake and to that of the Miss World.
He also quipped that the Minister fell ill after the reception accorded to the Miss World. The minister actually had to be treated for hypertension and the doctors advised him to rest.
As far as the President's visit is concerned only a few of her Cabinet Ministers and officials close to her knew about it. She made it a point to arrive at the airport in an Air Force chopper and informed the airport authorities on her way to the airport.
After she boarded the Dubai-bound Emirates flight she telephoned her mother, the Prime Minister, to inform her of her journey.
The story circulating in Colombo's political circles suggests that the President visited Cairo with her children for a holiday.
This was discussed at a function on Thursday to bid farewell to the outgoing Pakistani Ambassador in Sri Lanka.
Presidential Secretary, Kusumsiri Balapatabendi, was also present at this function and was seen speaking to Minister Mahinda Rajapakse and the SLMC MP, M M Zuhair.
Asked by a guest as to whether the President visited Cairo also, Mr. Balapatabendi said, "Don't you know when she goes on a holiday".
At this stage Minister Rajapakse said that Cairo is one of the best destinations for tourists and for holiday makers.
Everybody knows that tourists never forget to take a cruise along Nile and most of the guests who were there also thought the President would not be an exception.
They also discussed the attack on the Mullaitivu Army Camp and Mr. Balapatabendi put the death toll at just above 100.
He said that the LTTE had planned a massive attack sensing that the security forces were closing-in on them.
"In such a situation there could be more fatalities," he said.
However, he expressed confidence that the security forces would consolidate in no time after this temporary setback.
In a separate development, a constituent party of President Kumaratunga's PA government, the LSSP, is seeking separate debating time in Parliament in a bid to put its point of view across to the people.
The matter came up at the party leaders' meeting last week.
At this meeting, speaker K.B. Ratnayake said the LSSP had asked for separate debating time in Parliament.
It stems from the fact that the LSSP members have not been given time in the emergency debate.
Vasudeva Nanayakkara of the LSSP has asked for permission to attend the party leaders' meeting to present the LSSP's point of view.
Speaking at the meeting Mr. Nanayakkara said the speaker would be failing in his duty in protecting the rights of the members if he did not work out a fair solution. An agitated speaker said, "When you have problems inside your house you don't ask your neighbours to settle it."
Quipping in quickly, Ranil Wickremesinghe looking at the speaker remarked, "So now you are a neighbour".
Leader of the House, Ratnasiri Wickremanayake took up the position that the LSSP was a constituent party of the PA and therefore it had to abide by the decisions of the government.
Ranil Wickremesinghe, at this stage suggested to divide the time of the House according to the numerical strength of every party.
Former Minister A.C.S. Hameed said the LSSP's request could only be considered if it would withdraw from the government and establish its identity as a separate party.
However, the issue goes back to the PA and this development is a clear indication that all is not well within the family members of the PA.
The UNP also has similar problems, that is between those who are sympathetic to, and those opposing the government's political package.
The latest development is that the UNP leadership has decided to drop A.C.S. Hameed from their high-powered ethnic committee.
Mr. Hameed counts many years of experience in this field as a seasoned negotiator but political circles believe that Mr. Hameed's recent remarks at the UNP working committee would have been the cause for this removal.
At the same time some people believe that it is a victory to the Sinhala hardliners in the party. Mr. Hameed had always taken up the position that UNP as a national party should not take a communal line since they need the support of the minorities to be in power. But several UNPers disagreed with this position recently.
Mr. Hameed's removal from the high-powered ethnic committee of the UNP had also dismayed the minority political parties with whom he maintained a cordial relationship.
However, it seems that the UNP is gaining ground again in the Sri Lankan political arena, especially in reference to the UNP's Kandy meeting which had overwhelming response from the crowds.
At this meeting the UNP leaders did not forget to take few digs at Deputy Defence Minister Anuruddha Ratwatte. Anura Bandaranaike was prominent among them. He said that though it was nearly one week since the President has left the country, Minister Ratwatte has failed to go before Prime Minister Bandaranaike and take his oaths as the Acting Defence Minister.
Mr. Bandaranaike alleged that Minister Ratwatte did not want to visit the Rosmead Place residence of the Prime Minister and instead opted to take his oath at the Cabinet. But now it appears that the matter has ended in a stalemate and no acting Defence Minister has been appointed as a result.
As it stands today, it appears that internal squabbles are a common phenomenon in the People's Alliance, the latest being the controversy between Minister D.M. Jayaratne and Mahinda Rajapakse.
The venue was a Parliamentry committee room and the meeting was summoned to discuss with a delegation of the Bar Association of Sri Lanka, the government's plans to survey the existing lands owned by private individuals in the country.
As the meeting was in progress the BASL members felt that they were not given an opportunity to express their views. Minister Rajapakse having realized this whispered to his colleague, Minister Jayaratne, who was seated next to him to allow the BASL delegation to speak.
An agitated Minister Jayaratne turned round angrily and told Minister Rajapakse, "You shut up. You are not the President".
An embarassed Minister Rajapakse tendered an apology to Mr. Jayaratne in supplication and left the meeting. But when he met Mr. Jayaratne later, he asked as to why he did such a thing. "What ever it is I am also a Minister", Mr. Rajapakse told Mr. Jayaratne. Although the matter ended there, the incident has soured the relationship between two colleagues.
Though the political scene remained volatile the government could not give much thought to any of those issues owing to the situation in Northern Mullaitivu district. The scene has shifted from Colombo to Mullaitivu, one politico remarked. But then by Friday evening the government was unable to give a clear picture of what was happening over there, other than giving a rough casualty figure keeping the whole nation in suspense.
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