Sri Lanka Perspectives – November 2013

Col R Hariharan

Highlights

CHOGM: Sri Lanka President Mahinda Rajaksa heaves a sigh of relief as the Commonwealth Heads of Government Meeting (CHOGM) he hosted concludes on November 17 despite the campaign against holding it by international NGOs and human rights and Tamil activists in Canada, EU, India and UK. Indian Prime Minister’s decision not to attend the CHOGM exposes the vulnerability of India’s Sri Lanka policy making to pressures from Tamil Nadu.

Sri Lanka budget levies: Sri Lanka’s budget for 2014 raises tax levy on telecom services, vehicles and cigarette, levies import taxes on a series of food items and removes value added tax exemptions (VAT) granted to a host of equipment including tractors in a bid to increase revenue, while projecting an economic growth of 7.5 percent.

CHOGM highlights

The CHOGM was held as scheduled from November 15 to 17. Twenty seven heads of government of the 53-member countries attended the meet. Notable absentee-heads of government were India, Canada, and Mauritius which was to host the next CHOGM in 2015. Canada had been a major critic of Sri Lanka over its lack of accountability to investigate allegations of war crimes and human rights aberrations and its decision to downsize its representation was known in advance.

Mauritius Prime Minister Navin Chandra Ramgoolam announcing his decision not to attend the CHOGM said there was total lack of accountability during the Sri Lanka ethnic conflict. He said as a result of the boycott, Mauritius would no longer host the next CHOGM. The reason for Indian PM staying away from the meet was not made public. However, President Rajapaksa, who received a letter from Dr Manmohan Singh informing of his decision, made light of Indian PM’s absence and said he was satisfied with Indian representation. Answering a specific question whether the Indian PM’s absence was in response to Tamil sentiments, the President said, “He did not say that to me; the letter said something different.”

Indian Prime Minister’s decision to stay away was taken barely a week before the CHOGM. Obviously, this was influenced by protests against Indian participation snowballed in Tamil Nadu particularly after the state assembly passed a unanimous resolution demanding India \boycott the CHOGM. All parties including the Congress supported for the resolution. Even after the PM decided not to attend the meet, the assembly in an emergency session criticised the PM’s decision to send an Indian delegation under the minister for external affairs.

The handling of the CHOGM episode showed the increasing inability of the national leadership of the Congress party to assert itself and manage its own party and coalition members which is being exploited by regional satraps wanting to shape Central policies to their political advantage. This is a disturbing trend; if continued in the case of Sri Lanka it could have far reaching effects on national security and India’s Indian Ocean security.

In contrast to Dr Manmohan Singh's silence on his CHOGM decision, Finance Minister P Chidambaram addressing the 2nd South Asian Diaspora Convention 2013 held at Singapore on November 21 demanded a proper inquiry into alleged human rights violations. He said, "The Sri Lankan government owes a responsibility and a duty to its own people and the people all over the world to investigate the allegations of human rights violations and punish those who are responsible." This highlighted strong differences existing within the Indian cabinet on how to handle Sri Lanka issue.

We can expect the government to face yet another wave of protests on the issue when the U.S. proposes to review the progress on its 2012 resolution on Sri Lanka in the forthcoming meeting of the UN Human Rights Council (UNHRC) in March 2014. As it would be held too close to the general elections, we can expect another political crisis to cramp the leadership in New Delhi. 

British Prime Minister David Cameron who decided to attend the CHOGM in the face of opposition to do so at home, made a stopover at New Delhi on his way to Colombo probably to understand Indian stand. He demanded Sri Lanka to initiate a proper inquiry in his interaction with the media in New Delhi. He continued with this refrain in all his speeches on the sidelines of CHOGM. He made it clear to Sri Lanka that unless Sri Lanka initiates an investigation Britain will have to move the UNHRC for an inquiry by the Rights Commissioner. He is said to have explained the British stand in his meeting with President Rajapaksa.

The British PM visited Jaffna and met all sections of society including the Northern Province Chief Minister Wigneswaran. Wigneswaran highlighted the three problems faced by the people – the intimidating presence of military, slow progress in returning lands occupied by the army to rightful owners, and unaccounted disappearances. The last issue got international exposure when Cameron’s convoy was stopped by relatives of disappeared persons who wanted to hand over petitions to him. The British PM’s visit and his strong support for international inquiry have earned him instant popularity among Tamil Diaspora. He became an instant hero to even Tamils who were critical of his decision to attend the CHOGM. 

Departing from its stand of not commenting on internal issues of, China called upon Sri Lanka to “make efforts to protect and promote human rights.” Asking other nations to provide constructive assistance to Sri Lanka, China’s spokesman said it was important for Sri Lanka to protect human rights. This statement assumes importance as China has become a member of the UNHRC where Sri Lanka will be facing the flak in March 2014. Also significant is the statement was made when international spotlight was on Sri Lanka’s human rights aberrations triggered by the CHOGM.

Though President Rajapaksa put up a brave face at the criticism, with both UK and the U.S. becoming members of the UNHRC, Sri Lanka is likely to have a tough time in the next UNHRC meeting.

Sri Lanka Budget 2014

President Rajapaksa projected an economic growth of 7.5 percent in the budget for 2014 he presented in parliament on November 21.To make up for revenue shortfalls and reduced the budget deficit by 3.8 percent, he increased taxes on a whole range of items including telecom services, vehicles, cigarette and imported food items and machinery, and removed value added tax (VAT) exemption to imported food commodities like rice and wheat as well as on tractors and machinery for tea and rubber industry. Banks will have to pay 2 percent nation building tax. However, VAT has been reduced by half to retailers.

Opposition United National Party’s (UNP) seasoned parliamentarian and former minister for commerce and consumer affairs Ravi Karunanayake commenting on the economy said the debt crisis in Sri Lank had become “intolerable” due to financial indiscipline. According to him in the 57 years from 1948 to 2005 Sri Lanka’s total debt was SL Rs 1784 billion which has increased three-fold in the last eight years to SL Rs 6800 billion due to bad policy planning. He said this was due to Sri Lanka moving from half a percent interest regime of collateral lending agencies such as IMF, ADB and the World Bank and countries to Chinese ‘commercial vultures’ who lend at 7.5 percent and 8 percent interest without any conditions or the international community which bought treasury bonds at 9.5 percent with short term payback. He quoted the example of military was SL Rs 159 billion in 2009 budget was getting  almost twice SL Rs 311 billion in 2014.

Written on November 24, 2013

 Courtesy: South Asian Security Trends, Vol 7 No 11 December, 2013 URL: www.security-risks.com