
By Naveen Kapoor (ANI)| Sify News
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The 13th amendment came into being after India and Sri Lanka signed a pact in 1987 under which New Delhi urged Colombo to devolve powers to provinces in a bid to placate the restive minorities, mainly Tamils.
Sri Lankan Foreign Minister GL Peiris on Friday said: "It is impossible to talk of exact time frame for implementing the 13th amendment, it is a great mistake to do because if you talk of timeframe and then you are not able to complete the process, it is bound to be conjecture, speculative, then there is erosion of credibility."
"In these constitutional processes things cannot be telescoped into clearly defined time frame we don't think that's the way to go about it," Peiris told reporters after delivering the R.K. Mishra Memorial Lecture on 'Growth, Equity and Security:Constitutional Imperatives of South Asia'.
The Lankan Foreign Minister also said that President Mahinda Rajapaksa is in touch with Tamil political parties on the issue of devolution and have met leaders of National Tamil alliance on more than two occasions.
"Government of Sri Lanka is committed to the implementation of 13th amendment except of one feature of it. What we want to do is engage in discussions with important stakeholders you know what has happened in the past is a 'top down approach' in which the government announced what it wishes to do and that approach was not succeeded so this time around we want to do differently," Peiris said.
"The Sri Lankan president has started discussion with different political parties, we want to carry forward that discussion get ideas from stakeholders and that should be the starting point of meaningful process that could culminate in implementation," he added.
Peris also said about restructuring the electoral process in Sri Lanka and creating a space for democratic and legitimate Tamil leadership.
"Sri Lanka is resurrecting its electoral process to empower people and provide political space for minority Tamils so that they emerge as credible interlocutors for the community on the issue devolution of powers," Peiris said.
Asked to explain 'democratic Tamil leadership', Peiris said: "Tamil leaders that are thrown up by political process, many of them were wiped out like leader of opposition was assassinated by the LTTE, there is a gap to be filled."
President Rajapaksa has time and again assured India on the implementation of 13th amendment and even promised its electorates of devolving powers to minorities articularly Tamils in pre election rallies.
© Sify News
Saturday, October 16, 2010
Rajpaksa Govt unwilling to set timeframe for devolving powers to Tamils
Saturday, October 16, 2010
Sri Lankan government to intensify austerity measures

By Saman Gunadasa | World Socialist Web Site
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In a press statement on September 24, IMF deputy managing director Murilo Portugal focused on next month’s budget, declaring that “the 2011 budget will be key to demonstrate the government’s continued commitment to the [IMF] program’s goal”. He called for “broad-based structural and financial sector reforms” to ensure “higher levels of private investment”.
In its letter of intent, the Sri Lankan government reiterated its intention to cut the budget deficit to 8 percent of the country’s Gross Domestic Product this year, then reduce it to 6.8 percent and 5 percent over the next two years. The cutting of the budget deficit from 9.9 percent last year already has been at the expense of public sector jobs, conditions, services and price subsidies.
There has been a severe impact on working people. Prices for basic items have risen sharply. Last month, the government slashed the price subsidy on flour by two thirds, from 225 rupees to 75 rupees ($2 to $0.67) per 50 kilograms. As a result, the price for one kilogram of flour went up by 12 rupees. The price of a 450 gram loaf of bread went up by 6 rupees twice in the past four weeks. During the past five months, the price of bread has shot up by 28 percent.
The government has dismissed public criticism, declaring that people should eat rice, rather than imported flour, to help the farmers. Speaking to Sirasa TV on October 11, Cooperatives and Internal Trade Minister Johnston Fernando declared: “We are self sufficient in rice. Our priority is to protect the farmer and thus we have no intention of providing relief in this regard [on wheat prices].”
The government knows full well that flour products are, along with rice, staples for the poorest layers of society, particularly the plantation workers. For them, higher prices mean eating less. As for the price increases, the profits will not go to paddy farmers, who struggle to survive each year, but to the various intermediaries that thrive by trading in rice.
The government’s letter of intent foreshadowed the “rationalisation of the tax system for trade taxes, VAT and income taxes”. As in other countries, the IMF’s prescriptions will mean a lowering of taxes on businesses and the income of the wealthy through increases in consumption taxes, such as VAT, that impact disproportionately on the poor.
The government pledged to improve “the performance and efficiency of loss-making, state-owned enterprises” by implementing an “ambitious plan” toward privatisation. As reported on October 4 in the Daily Mirror, State Resources and Enterprise Development Ministry secretary W. Gamage reported that the government would set up a State Resources Management Corporation to absorb 17 loss-making state enterprises and restructure them over three years. The corporation will be run as private-public partnership as a prelude to full privatisation.
Gamage did not name the 17 enterprises. But the government had earlier identified the Ceylon Electricity Board, the Ceylon Petroleum Corporation, the National Water Supply and Drainage Board, Sri Lankan Airlines, the Sri Lanka Transport Board, and the railway and postal service departments as major loss makers. The restructuring of these enterprises will inevitably mean major cutbacks to jobs and conditions for workers, on top of increased prices and charges for consumers as subsidies are wound back. The government has assured the IMF that subsidies for electricity tariffs will be ended by 2011.
The government’s letter of intent promised that the “government stands ready to take additional measures” and would “continue to liaise” with the IMF. President Mahinda Rajapakse, who is also the country’s finance minister, is seeking IMF backing to obtain further loans. Recently the international credit rating agencies Fitch Ratings and Standard & Poors upgraded the country’s ratings because of the IMF’s assessment.
The government is deeply in debt due to heavy military spending in its civil war against the Liberation Tigers of Tamil Eelam (LTTE), compounded by the global financial crisis. Over the past two years, it has raised $2 billion through sovereign bond sales, including $1 billion last month. The money is being used to pay off expensive commercial loans—one of the only sources of credit during the war that ended in the LTTE’s defeat in May 2009.
Total public debt continued to rise from 4,161 billion rupees ($37 billion) in December to 4,293 billion rupees in May. Interest and principal repayments together amount to more than the total budget revenue, forcing the government to take out new loans to repay the old. Noting the high level of public debt, the Sunday Times economic columnist recently warned: “In this context the government resorts to further borrowing to meet its recurrent as well as capital expenditure. This results in further increases in debt servicing costs. The country is caught up in this vicious cycle of a debt trap.”
The government boasts about the supposedly miraculous economic recovery at the end of the war, pointing to an estimated growth rate of 8 percent this year, and a stock market that is “the best performing in the world”. In the last week of September, the Colombo stock exchange passed the 7,000-point mark. Central Bank Governor Nivard Cabraal dismissed concerns about financial speculation, declaring “we are not unduly worried about that”.
However, the hothouse character of the economic expansion highlights the vulnerability of Sri Lanka to sharp shifts in the global economy. The recovery of the country’s foreign reserves from mid-2009, when the country faced an acute balance of payments crisis, has been dependent on foreign loans, increased remittances from workers employed overseas, and a marked improvement in tourism and commodity export prices.
Remittances were up by 12.5 percent over the first seven months of the year, reaching $2.1 billion, compared to the corresponding period of 2009. Income from tourism rose 68.8 percent in the first seven months of this year to $301 million. Agricultural exports grew by 23.5 percent, with tea up 20.6 percent. Industrial exports increased by only 7.9 percent, affected by a fall in garment exports of 3.7 percent. Imports, however, grew far faster, widening the trade deficit to $3.3 billion or by 103 percent during the first seven months.
Foreign investors are treating the “world’s best performing stock market”—which has risen by 110.9 percent so far this year—with extreme caution. Over the same period, net foreign investment in Sri Lankan shares has fallen 16 billion rupees. There is a speculative frenzy by domestic investors, reflecting a ready availability of bank credit and a lack of alternative, profitable investment opportunities.
Price earnings ratios for Colombo shares have blown out to levels not seen since the 1993 share market collapse in Sri Lanka. Analyst Amal Sanderatne told Lanka Business Online: “In my opinion the market is overheated. The valuations are the highest in Asia. Forward multiples are 19 times earnings; far higher than we have ever been, except perhaps in 1993.” Such speculative bubbles inevitably burst, sending shock waves through the economy.
Some business sectors may temporarily be making profits but the majority of working people confront falling living standards. That is certain to worsen after the Rajapakse government announces its next budget, scheduled for November 22, in line with the dictates of the IMF and global finance capital.
© WSWS
Saturday, October 16, 2010
UK promotes bilateral trade and investment in Sri Lanka

Colombo Page
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Addressing the National Chamber of Commerce of Sri Lanka (NCCSL) Friday, the British Deputy High Commissioner, Mark Gooding, has said that the British High Commission in Colombo provides extensive market support to British companies wishing to invest in Sri Lanka and Sri Lankan companies wishing to do business in the UK.
To promote bilateral trade with the former colony, the British Government has also increased its level of export credit cover for UK companies wishing to invest in Sri Lanka from $150 million to $200 million, he said.
According to Gooding, the British Government in addition is developing a new business express visa programme for Sri Lankan companies whose staff needs to travel regularly to the UK.
The diplomat highlighted the advantages of doing business in the UK, including its open business environment, its history of sustained growth, its stable and well-regulated business environment - one of the least corrupt in the world its flexible labour market and the fact that it is a global trading centre and a gateway to the European market.
"The close historical ties between the UK and Sri Lanka make us natural partners in prosperity. Already Sri Lankan exports to the UK are worth $1 billion a year, UK companies provide $300 million in foreign direct investment in Sri Lanka, and over 100 UK affiliated companies operate in Sri Lanka," Gooding said.
The end of nearly thirty years of civil war in Sri Lanka and the economic recovery in the UK have given the UK and Sri Lanka an historic opportunity to create new business partnerships and further increase two way trade and investment, the deputy High Commissioner pointed out.
Reiterating the British High Commission's assistance, Gooding said the High Commission is committed to supporting this process, and stands ready to assist UK and Sri Lankan companies in building prosperity together.
© Colombo Page
Tuesday, October 12, 2010
Sri Lanka leader to be guest at close of Commonwealth Games

By Jason Burke | The Guardian
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Diplomatic sources and protocol officials in Delhi today confirmed that Rajapaksa had accepted a "joint" invitation from the Indian government and the event organisers, and would be flying to India on Wednesday.
His presence next to Prince Edward, who will close the games on behalf of the Queen, will spark anger from campaigners who have accused Rajapaksa of failing to protect many thousands of civilians who died in battles which ended the long civil war against Tamil separatists last year, and of flouting international human rights law.
In January, the 64-year-old politician won a second six-year term in a landslide victory and recently pushed through a constitutional amendment that will allow him to stand an unlimited number of times.
Rajiva Wijesinha, a Sri Lankan member of parliament and former minister, said that it would have been "rude and improper" not to accept the invitation.
"We've moved on. A lot of people are now aware that the allegations against us were not correct and the new government in the UK have made it clear that they are not continuing the patronising attitude of their predecessors," he told the Guardian.
Aslam Khan, head of protocol for the games, confirmed that the choice of guest for the closing ceremony in the Jawaharlal Nehru stadium in Delhi was a "joint venture between the Indian government and the organising committee". Rajapaksa is not expected to speak at the event, Khan said.
Tamil campaigners expressed outrage. "It is a shame. The Commonwealth is mainly composed of developing countries and needs to apply international law and humane standards," said Suren Surendiran of the Tamil Global Forum.
Sri Lanka was blocked from hosting the next meeting of Commonwealth leaders in 2011, after Britain and Australia joined forces last year to protest at alleged human rights abuses. "It is unfortunate that the heads of state says one thing and then there is inconsistency," said Surendiran.
The head of the Commonwealth is the Queen but due to an overcrowded travel schedule, Prince Charles opened the games.
The presence of Rajapaksa among the senior dignitaries in front of 65,000 spectators and hundreds of millions of television viewers will renew criticism of the Commonwealth for avoiding tackling tough issues.
Last week, the Guardian revealed that the current secretary general, Kamalesh Sharma, had told his staff that it was not the organisation's role to "speak out" against abuses by the 54 member states.
David Cameron and the foreign secretary, William Hague, have both said they will put new emphasis on the Commonwealth in Britain's foreign policy.
India's invitation is part of a charm offensive aimed at countering diplomatic inroads made by China in Sri Lanka in recent years. The two Asian powers are both investing much effort in wooing Rajapaksa, who remains popular with the Sinhalese majority in the island state, with economic aid packages, technical help with infrastructure projects and other initiatives.
The Sri Lankans are considering their own bid for the Commonwealth Games. Rajapaksa is hoping to win the 2018 event for Hambantota, the southern Sri Lankan port, which is his home town.
© The Guardian
Monday, October 11, 2010
Protests at jailing of Sri Lankan leader

AAP | Yahoo News
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Activists led by Fonseka's Democratic National Alliance (DNA) and his wife Anoma marched to the maximum security Welikada prison in Colombo, witnesses said. They were dressed in black as a sign of protest.
"End this cruel vendetta," said a placard carried by those leading the march.
It was the biggest protest since Fonseka began his prison sentence on September 30 after a military court martial found him guilty of irregular procurements when he was the head of the army.
"This is an effort to bring justice to our wronged war hero," DNP legislator Tiran Alles said.
Fonseka has accused the government of seeking revenge for his decision to stand against the president at January polls.
Fonseka, 59, was initially hailed as a national hero the military victory over Tamil Tiger rebels that ended nearly 40 years of ethnic war in the Indian ocean island republic.
However, he fell out with his commander-in-chief President Mahinda Rajapakse soon after defeating the guerrillas. He was arrested shortly after losing the presidential polls, but won a seat at April parliamentary elections.
A fresh legal battle has erupted over whether Fonseka can remain an MP following his jailing by a military court.
The former top commander was being held in virtual solitary confinement and had to sleep on the floor in a mosquito-infested cell, but he was not prepared to seek clemency, Anoma Fonseka has said.
The government has maintained that it would consider a presidential pardon if Fonseka or an immediate family member made an appeal on his behalf.
The Tigers' defeat ended nearly 40 years of separatist conflict in Sri Lanka but rights groups, led by Amnesty International, say thousands of civilians were also killed in the final onslaught.
Fonseka was stripped of his rank and pension following another court martial that found him guilty in August of dabbling in politics while in uniform.
© Yahoo News
Monday, October 11, 2010
Sri Lanka Tamil Tiger spokesman 'missing after arrest'

BBC News
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LTTE spokesman Rasiah Ilantherian and head of the Tiger intelligence wing in Batticaloa, Prabha have not been seen since being detained, they said.
The two wives were among hundreds of Tamil and Muslims testifying to the panel in Batticaloa, eastern Sri Lanka.
Many Tamil civilians complained about missing relatives.
The government has made no comment about these cases, but has previously rejected accusations of abductions by human rights groups.
The Lessons Learnt and Reconciliation Commission has been conducting hearings over the weekend.
Punitharuban Vanitha, the wife of the Tamil Tiger spokesman Ilantherian said her husband was taken away by the army on 17 May 2009, just before the Tigers suffered their final defeat.
She was told, she said, that he would be returned after treatment for minor injuries. Ms Vanitha says that she has not seen her husband since then.
Bobitha Prabhaharan, the wife of Prabha, also said her husband was detained in May last year, and has heard nothing from him since.
Muslims' lands 'occupied'
Representatives of the Muslim community, meanwhile, told the panel that Muslims are yet to resettle in their ancestral lands as Tamils are still occupying it.
They warned of renewed conflicts if steps were not taken to give back land captured by the Tamils during the conflict.
The panel was appointed by President Mahinda Rajapaksa to investigate events from 2002 to end of the conflict in May last year, and recommend measures for reconciliation.
Critics, however, have questioned the credibility of the investigation and whether its report would ever be published.
© BBC News
Monday, October 11, 2010
Sri Lanka: US trade delegation to visit Jaffna

Photo courtesy: Rose Tuttle | Foreign Policy
By Franklin R. Satyapalan | The Island
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Governor of the Northern Province Maj. Gen. (Retd) G. A. Chandrasiri said the visiting US business delegation will be ceremonially welcomed by Minister Douglas Devananda, District Secretary Mrs Emelda Sukumar and the Mayoress of Jaffna in the Jaffna peninsula.
The delegation would visit many areas in the North and hold talks with the Jaffna Chamber of Commerce as well as many others to discuss emerging investment opportunities in the Northern province, he said.
Governor Chandrasiri said the US delegates will explore investment opportunities in the spheres of agriculture and livestock, eco- tourism, hotel industry, trade and other allied industries
Meanwhile, the Indian Minister for External Affairs Shri S. M. Krishna is scheduled to visit the Northern province on Friday, October 29 to ceremonially inaugurate the relaying of the railway lines by the Government of India from Omanthai to Palai and Madhu to Talaimannar under the first phase of this project .
At the request of President Mahinda Rajapaksa, the Asian Development Bank (ADB) had come forward to provide a loan for the Iranamadu Tank water supply project to supply water to the residents of the Jaffna district as well to the Pooneryn area.
© The Island
Monday, October 11, 2010
Indian Naval ships in Sri Lanka

By B. Muralidhar Reddy | The Hindu
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While INS “Tir”, INS “Shardul” and ICGS “Varuna” arrived at the port of Trincomalee, INS Tarangini arrived at the port of Colombo.
The ships were ceremonially welcomed in accordance with naval traditions and are scheduled to stay till October 15.
A special programme has been arranged for the group of 160 Indian Naval officer cadets while 150 officer under trainees from Naval & Maritime Academy—Trincomalee are scheduled to board the ships for a session of training.
A statement by the Sri Lankan Navy said the crew of the Indian ships is expected to participate in a series of special training programmes organised to enhance the relationship between the two neighbouring navies.
Loan scheme
Separately, it has been announced that a special loan scheme is introduced for the rehabilitated ex-combatants of the LTTE.
According to the Commissioner of Rehabilitation Sudantha Ranasinghe, the Ministry of Rehabilitation has set up a centre for the purpose at Vavuniya Government Agent Office.
Loans will be provided up to a maximum of Rs. 250,000 for any livelihood project proposals submitted by them. “This is not only for the ex combatant, even the IDPs who have been resettled can apply for this” Said Brigadier Ranasinghe.
Of the 11,696 detenus held at the conclusion of the war in May last year, over 4,000 LTTE cadres had been released in batches following rehabilitation.
Several ex-combatants including child soldiers were released to their parents by the government. These ex-combatants, mostly the adolescent children, were provided with vocational training while some other school going children were helped to complete their secondary education. Some 500 rehabilitated ex-child soldiers sat for the GCE A/L examination in August 2010.
According to the Commissioner, once a business proposal is submitted the loan facility will be granted at an interest rate of 4 per cent through state banks.
© The Hindu
Monday, October 11, 2010
Three children raped daily in Sri Lanka

The Sunday Times
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Statistics available at Police Headquarters reveal that 480 cases of child rape were reported between January and June this year, while 925 such cases were reported last year. An officer at Police HQ said Ratnapura district had the country’s highest number of child rape cases – 79 in 2009, and 47 in the first six months of this year.
Most of the victims lived on tea estates, in line rooms, where sexual molestation of underage children is not uncommon. Families on tea estates often marry off daughters who are underage. Last year, at least 55 and 53 child rape cases were reported from Kegalle and Anuradhapura respectively, and 46 cases were reported from Tangalle in the first six months of this year.
During the chena cultivation season, farmer parents in Anuradhapura district go out to work in the fields, leaving their children alone at home and exposed to danger.
“A lack of parental care, attention and supervision is one major reason children get sexually abused, and in most cases the wrongdoer is a close relative of the victim,” the Police officer said. “Going by the number of cases reported to the Police, it would seem that girls in the 14-to-16 age group are becoming regular targets for rape.”
The officer added that the number of rape cases that go unreported may be much greater than the number that gets reported.
Meanwhile, according to the Police officer, sex is becoming common practice among schoolchildren in Colombo, who said that easy access to pornography on the Internet was a contributing factor.
© The Sunday Times
Saturday, October 09, 2010
Army says resettlement in Valikaamam North High Security Zone not possible

Photo courtesy: Ross Tuttle | Foreign Policy
Tamil Net
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Prof. Pon Balasundarampillai, former VC of Jaffna University and S. Paramanathan representing the Welfare Association for Uprooted Persons were among the participants in the meeting.
Meanwhile, responding to questions raised as to why only Sinhala pilgrims are permitted to use Tho’ndaimaanaa’ru-Chelvachchannithi road while local people are not allowed Mahinda Hathurusinghe said that he will soon make transport arrangements for the local people to travel along the said road.
Sinhala Buddhist pilgrims from South are allowed by SLA to use the road on their way to Keerimalai and Maathakal.
SLA had opened the road for a few days for public use during the Chelvachchanithi temple festival but had again blocked it for local people.
© Tamil Net
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