Col R Hariharan
Sri Lanka Perspectives June 2024 | South Asia
Security Trends, July 2024 | https://www.security-risks.com
The
month of June was a busy one for President Ranil Wickremesinghe. He announced
his candidacy for the presidential election, cashing on his success with the restructuring
of debtors achieved in the Paris Club meeting that satisfies the International
Monetary Fund (IMF) debt relief package.
President
Ranil Wickremesinghe announced his carefully orchestrated entry into the
presidential fray with a TV address. He said, “Today makes a significant milestone
in the recent history of our country….Our country is now reaping the positive
results of our persistent endeavours over the past years. This morning in Paris, Sri Lanka reached a
final agreement with our official bilateral creditors. Similarly, we signed
another agreement with China’s Exim Bank today in Beijing.” He was announcing
the successful clinching of a deal with key bilateral lenders including China
and India covering up to $10 billion in debt. This was a critical step towards
recovery after Sri Lanka’s 2022 financial crash.
“Sri
Lanka won” Wickremesinghe said after saying, “Sri Lanka concluded negotiations
with the Official Creditor Committee (OCC) and the Exim Bank of China.” The President was referring to the agreement
Sri Lanka had signed in Paris on June 26 with the OCC co-chaired by Japan,
India and France that have lent a combined $5.8 billion. A separate agreement
was signed with China’s EXIM Bank in Beijing to rework $4.2 billion to ensure
compatibility between debtors. Th IMF had laid restructuring
of bilateral debt agreements as one of the key conditions for its US$ $2.9
billion bailout program to improve Government finances. Sri Lanka’s total
external debt is US$ 37 billion.
The International Monetary
Fund (IMF) said on June 27 that Sri Lanka’s agreements with China and other
creditor nations to restructure about US$ 10 billion in bilateral debt took the
island nation a step closer towards restoring debt sustainability. Welcoming
the news, IMF’s Senior Mission Chief for Sri Lanka Peter Breuer said “We hope
that there will be swift progress on reaching agreements with external private
creditors in the near future.”
The
parliament is set to meet on July 2 and 3 to debate the implementation of
foreign debt restructuring agreements and vote on proposals contained in the
Resolution for the Implementation of External Debt Restructuring Agreements
bill. Opposition parties and section of the ruling Sri Lanka Podujana Peramuna
(SLPP) are getting ready to question some of the tough measures taken by the
President to conform to IMF conditions. He has doubled taxes,
removed energy subsidies and is set to sell off loss-making state enterprises
to shore up state revenue under that deal.
The President in his speech
focused on the positive aspects of his approach. He said the debt restructuring
is a condition of the IMF bailout. “Sri Lanka has sought IMF assistance on 16
previous occasions, each ending in failure. Why? We consistently failed to meet
the conditions set, neglected our commitments, and lacked financial discipline.”
Wickremesinghe reminded that
this was the first instance in Sri Lanka’s history where an IMF program has
been successfully implemented. At the same time, he hoped the IMF bailout of $2.9
billion he secured last year would be the country’s last. He emphasized “unlike
the earlier16 instances, we approached the IMF…. as a country facing
bankruptcy. Given this context, I pose a crucial question: Will you move forward
with me, who comprehended the problem from its inception, offered practical
solutions, and delivered results?” In a snide reference to his detractors, he
asked “Or will you align with those grappling in the dark, still struggling to
grasp the issues? Will you stay the course towards a brighter future for
yourself and the nation? Or will you opt for a different path?” Cautioning the
people against the perils of veering off course or choosing the wrong path,
Wickremesinghe appealed to the people to make the right decision.
Striking an emotional tone, he
highlighted his achievement. He said, “The future does not merely belong to
Ranil Wickremesinghe; it pertains to the country, to your future, and the
future of our children. In just two years, without a parliamentary majority,
without my appointed Government officials or ministers, I successfully elevated
our country from bankruptcy and economic turmoil to a position that astonished
the world.” Even as he spoke, his supporters in Colombo celebrated by setting
off firecrackers.
On June 30, Wickremesinghe
held his first Ekva Jayagamu (Victory through unity) rally at Mattara. The core
theme of his speech was the need for the unity of a coalition committed to the
nation’s interest, regardless of political affiliation for the collective
effort for the country’s success. The President also went on to explain some of
the welfare measures to help marginalised people like the ‘Awesuma’ programme
for free distribution of rice and ‘Urumaya’ programme for giving deeds for
freehold lands.
He extended an invitation to
the opposition, urging them to prioritise national interest over partisan
politics. Present on the stage were some MPs who belonged to SLPP and SLFP-New
Alliance. Practitioners of political shenanigans were
equally busy as debate over the presidential poll hotted up.
Illegal
fishing in Sri Lanka waters
India’s
woes on fishermen from Tamil Nadu poaching in Sri Lanka waters went a notch up
with the tragic loss of life of a Sri Lanka Navy (SLN) senior sailor due to
critical injuries suffered on night June 25. The incident occurred when the SLN
craft patrolling off Kankesanthurai chased an Indian trawler poaching in Sri
Lankan waters. It is a timely reminder to both countries to resolve the long
pending dispute over traditional fishing areas against maritime boundaries. The
issue has been aggravated by use of illegal trawl nets by fishermen banned by
Sri Lanka.
According to The
Morning, in March, President Wickremesinghe instructed
authorities to urgently find a definitive solution to the recurring issue of
Indian fishermen encroaching into Sri Lankan waters. In order to find a
permanent solution to this issue, President Wickremesinghe sent a delegation
under his Chief of Staff Sagala Ratnayaka to New Delhi despite in March to
discuss this issue with his counterparts. However, so far, the poaching issue
continues to remain elusive.
With
Indian Prime Minister Narendra Modi back in power for the third time,
anti-Indian elements in Sri Lanka are back in play. Sri Lanka government’s
discussion with India on increasing energy and land communication linkages are
already on the card of anti-India lobby. They are likely to increase their
decibel levels when presidential electioneering gets under way. Indian
fisherman poaching in Sri Lanka waters is already a major issue in Northern
province. This is likely to provide additional fodder to flog India during the
run up to the presidential election.
Obituary
R Sampanthan
It is a sad moment for Sri
Lankan politics. One of the veteran Tamil leaders Rajavarotham Sampanthan, who fought
for a just solution for the equitable treatment of Tamils all his life, passed
away in Colombo late on Sunday (June 30). A veteran Tamil politician and long
time leader of the Ilankai Tamil Arasu Kadchi (ITAK), his political career
spanned six decades. His first stint in the Sri Lankan parliament starting in
1977. Sampanthan was the incumbent MP for Trincomalee District and has served
in five parliaments since 1977. His speeches in parliament were known for his
incisive analyses and eloquence.
[Col R Hariharan, a retired MI
specialist on South Asia and terrorism, served as the head of intelligence of
the Indian Peace Keeping Force in Sri Lanka 1987-90. He is associated with the
Chennai Centre for China Studies. Email: haridirect@gmail.com,
Website: https://col.hariharan.info]