Col R Hariharan | 30-11-2017
Sri Lanka PM’s visit to New Delhi
Prime Minister Ranil Wickremesinghe visited to New Delhi on
November 23-24, 2017. During his talks with Prime Minister Narendra Modi and
External Affairs Minister Sushma Swaraj speeding up decisions related to
India-Sri Lanka joint venture projects in Sri Lanka to solve “problems that have
emerged” topped the agenda.
The projects discussed included India developing the Trincomalee
harbor including the Oil Tank farms project as well as the Indian bid to lease
and manage the heavily loss making Mattala airport in Hambantota.
In April 2017, India and Sri Lanka had signed the Cooperation in
Economic Projects agreement and had set up a Joint Working Group (JWG) to
discuss the development of a port, petroleum and other industries in
Trincomalee on the eastern seaboard. The Trinco Oil Farm Project under which
the Indian Oil Corporation taking over more than 70 storage tanks in possession
of Sri Lanka was to be sealed in April; however, the announcement was put off
oil company employees went on a flash strike.
Indian aided projects in Sri Lanka have invariably been delayed
for variety of political and bureaucratic reasons. Bureaucracies on both
sides of the Palk Strait are rigid and act slowly. Moreover, political
corruption and financial priorities bedevil all projects in Sri Lanka as in other
South Asian countries.
With environmental priorities and land acquisition issues
getting politicized, time delays are often the rule than the exception. These
are more so, if India is involved in them due to hate India-love China lobbies
at work. But PM Modi is in a hurry to show results just as both President
Sirisena and PM Wickremesinghe have political and economic compulsions to get
going with the projects to trigger economic activity.
PM Wickremesinghe during his visit to New Delhi addressed the 5th Global
Cyberspace Conference. He said he was against state orchestrated blocks and
restrictions on cyberspace and the national unity government was to facilitate
unhindered access to the internet. He drew attention to his own experience as
an opposition political activist before January 2015 when the government had
blocked ISPs to prevent dissident voices from speaking freely online. Now
“every segment of society was encouraged to speak freely online. As we
understood it was one important way of building inclusivity not only on
cyberspace, but also in society at large.”
Politics of local government elections
The local government (LG) elections have been delayed for long
due to a lot of political, legal and bureaucratic confusion. The delay suited
both the shaky ruling national coalition to resolve its internal differences
and faction-ridden Sri Lanka Freedom (SLFP) trying to resolve factional
differences to unitedly fight the LG polls. So the Election Commission’s notice
announcing the holding of elections for 93 councils triggered hectic political
activity across the national spectrum.
The talks between the SLFP led by President Maithripala Sirisena
and the Joint Opposition (JO) group loyal to former President Rajapaksa reached
feverish, without yielding tangible results so far.
Any compromise made by President Sirisena with the JO would, not
only enable former President Rajapaksa to stage a comeback to national
political mainstream, but also threaten the survival of the unity government. The
United National Party (UNP both SLFP’s partner is concerned as the memorandum
of understanding Siriena and Wickremesinghe had signed to jointly work together
for the good of the country is due for renewal as it is set to expire in
December 2017. This MoU paved the way for the two parties to jointly form the
national unity government. The UNP would like to continue with the cohabitation
formula for yet another term till 2025.
Civil society fears such a compromise could put an end to the
SLFP-UNP cohabitation government’s efforts to carry out further structural
reforms for good governance (Yahapalana). Civil society also feels that if it
happened pro-Rajapaksa elements would further delay the completion of
investigations and prosecution of those involved in cases of massive corruption
during the Rajapaksa regime.
President Sirisena has assured a delegation of civil society
representatives that the efforts to re-unify the SLFP ahead of the LG elections
would not be at the cost of the national unity government. He had also assured
that the terms set for unity by Rajapaksa were not acceptable to him. In
response to their fears about the government not acting against cases of
corruption, he assured them that he would establish presidential commissions,
similar to the one that inquired into treasury bond scam, to probe state
enterprises such as Sri Lanka Airlines.
Budget
proposals
Finance
Minister Mangala Samaraveera’s budget proposals for 2018 presented in
parliament have generally been welcomed by media analysts. Highlights of the
budget include liberalization of restrictive laws, promotion of exports,
expansion of tourism, fiscal consolidation, fostering start-ups and opening up
investments to achieve 5% growth in 2018. The Budget aimed to achieving
ambitious medium-term targets such as per capita income of $ 5000, one million
new jobs, FDI inflows of $ 5 billion and doubling exports to $ 20 billion, as
outlined in Vision 20-25.
The
Excise and Customs Ordinance, Rent Act, Paddy Lands Act, Agriculture Lands Act,
Shop and Office Employees Act and bankruptcy laws were among the list of laws
the Government plans to either repeal or amend. The minister said,
“In 2018, we envisage GDP growth of 5%, inflation of around 6%, and we hope to
achieve for the first time in almost six decades primary surplus of 1% of GDP and
a Budget deficit of 4.5% of GDP.” Proposals for a “Blue-Green” economy include
introduction of environmental safeguards and decision to phase out fuel
vehicles by 2040.
Col R Hariharan, a retired MI officer, served as the head of
Intelligence of the Indian Peace Keeping Force in Sri Lanka from 1987 to 90. He
is associated with the Chennai Centre for China Studies and the International
Law and Strategic Analysis Institute, Chennai. E-mail: haridirect@gmail.com Blog:
http://col.hariharan.info
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