• Govt. confident of reaching initial agreement on IMF Staff-Level Agreement by 31st
• All-party govt. faces more issues, with RW advisors making several observations
• Some say make part of appointments this week, others say after interim budget
• RW looks at giving Cabinet powers to Parliament oversight committee heads
• Dullas and loyalists axed from parliamentary watchdog committees by SLPP 
• Sajith firm against joining Govt., group of MPs note need for SJB role in Govt.
• RW and MS have one-on-one meet; MS positive on getting SLFP to join Govt.
• GR likely to postpone return to Lanka from this Wednesday till 2 September
• Pro-GR factions push news of GR entering Parliament from SLPP National List
• Rajapaksa family not too keen on GR’s re-entry to politics, only seeks security

That the Government of President Ranil Wickremesinghe is stepping into a decisive week that will decide on Sri Lanka’s economic recovery is a definite understatement given the many areas that require attention before commencing discussions with the International Monetary Fund (IMF) delegation that is to arrive in the country this week. It is evident that Wickremesinghe is making all efforts to put forward a united front in a politically-stable environment for the IMF, with his moves to form an all-party government/governance to further strengthen the economic recovery plan. However, the proposed all-party mechanism is yet to take shape, with many backroom discussions still continuing to decide on the appointments to the proposed new mechanism. Another stumbling block faced by Wickremesinghe is the Sri Lanka Podujana Peramuna (SLPP), which played a key role in his ascension to power, now calling on the favour by making demands that the President is well aware would have an adverse impact on his Government’s life expectancy. To make matters worse, each faction of the SLPP (which has now split into around five factions – Sri Lanka Freedom Party (SLFP), group of 10 (G-10) party leaders, Dullas Alahapperuma group, Anura Yapa group, and the Basil Rajapaksa group) has its own set of demands being thrown at the President.  It is in such a backdrop that Wickremesinghe decided not to extend the Emergency Regulations imposed by him last month that gathered much fire from the Opposition and civil activists while also being challenged in court. Addressing an event at the Cinnamon Lakeside Hotel on Tuesday (16), President Wickremesinghe noted that Emergency Regulations would not be extended as there was no necessity for them since the country had now returned to normal. “As the country’s situation is back to normal, I will not extend the State of Emergency, which is scheduled to lapse by the end of this week,” he said. Accordingly, the Emergency Regulations that were declared in July lapsed last week. It is yet unclear whether the Emergency Regulations were allowed to lapse without extension due to Wickremesinghe’s sincere belief that there was now no necessity for it or whether he did not want to put it once again to a vote given the split in his SLPP support as well as the lack of Opposition support for it. However, the country’s economic woes seem to be further compounding, with President Wickremesinghe warning last week that Sri Lanka’s International Sovereign Bond (ISB) holders may push the Government to restructure the domestic debt, as they alone may not be keen to accept a steep haircut under a debt sustainability plan, which is a prerequisite to secure an IMF bailout.  “The more difficult issue is, how do you deal with private creditors? The money that is invested is not all by multi-billionaires. Lots of money is from pension funds and from other earnings and from banks and a haircut means that those pensioners have to take a dock. We know the situation we are in, where the EPF today is worth half of what it was three years ago. So will they take that cut? That is what we have to decide,” Wickremesinghe said at the same event at the Cinnamon Lakeside, where he claimed the Emergency Regulations would not be extended. The Sri Lankan Government, while negotiating debt restructuring with India, is also focused on discussing the same with China as the IMF has also laid much importance on Sri Lanka’s deal with the Chinese. “Now there are two groups – the West, which thinks of a haircut, and the Chinese, who would like to give additional loans to pay off these loans. So there has to be one approach and we are talking with Japan about how this could be achieved and we’ll talk with China,” the President said. It is in such a backdrop that international ratings agency S&P Global last Monday (15) slashed its rating on Sri Lankan bonds to ‘D,’ representing default, following missed interest and principal payments, as reported by Reuters. S&P said it did not expect the Sri Lankan Government, which remains in default on some foreign currency obligations, to make the bond payments within 30 calendar days after their due dates. The ratings agency affirmed its ‘SD’ long-term and ‘SD’ short-term foreign currency sovereign ratings on Sri Lanka, as well as reiterated the outlook for the island nation at ‘negative’. However, there was a welcome relief for Sri Lanka’s exports sector last week when the UK announced on Tuesday (16) that Sri Lankan exporters falling under select categories would be able to further benefit from trading with the UK. “The UK’s new Developing Countries Trading Scheme (DCTS) is one of the most generous sets of trading preferences of any country in the world and will benefit Sri Lanka by boosting the economy and supporting jobs,” British High Commissioner in Colombo Sarah Hulton said. “The new scheme, which replaces the UK GSP, will come into force in 2023 and the UK looks forward to future trading opportunities with Sri Lanka,” she added.   IMF delegation to visit   Nevertheless, one of the main components in Sri Lanka’s economic recovery continues to remain in the hands of the IMF. Although an IMF bailout alone will not help resuscitate Sri Lanka’s ailing economy, it plays a huge role in supporting the next steps Sri Lanka will have to make in the recovery programme. The highly-anticipated IMF negotiations are scheduled to recommence this week when a delegation will visit the country. The delegation is to arrive on Wednesday (24) and will be in the country till 31 August.  The IMF team will be led by IMF Monetary and Capital Market Department Debt Capital Markets Division Chief Peter Breuer and IMF’s Chief of Operations Masahiro Nozaki and will include several staffers. Both Breuer and Nozaki visited Sri Lanka in June this year as well for consultations with the Government. The first round of discussions with the Government will commence on Wednesday itself. Discussions will focus on finalising the Staff-Level Agreement (SLA) as well as receiving an update on the debt restructuring plans. Finance Ministry officials and an economic experts committee held several rounds of discussions last week in preparation for the meetings with the IMF delegation.  The IMF last week stated that it required “adequate assurances” from Sri Lanka’s creditors for a new programme. “Because Sri Lanka’s public debt is assessed as unsustainable, approval by the IMF Executive Board of the Extended Fund Facility programme would require adequate assurances by Sri Lanka’s creditors that debt sustainability will be restored,” the IMF has stated. Restructuring Chinese and Indian debt plays a key role in reaching any form of agreement with the IMF. It is learnt that the Government is also continuing its discussion with China’s Exim Bank on the issue of restructuring loans obtained from China following China’s decision that the Sri Lankan Government should first hold discussions with the individual financial institutions that had lent money to Sri Lanka before the intervention of the Chinese Government. The Wickremesinghe Government is to meanwhile ask Japan to invite Sri Lanka’s main creditor nations, including China and India, to talks on bilateral debt restructuring. India last week maintained that it would extend whatever support required by Sri Lanka at the IMF. “Any help we can give to Sri Lanka at the IMF, that we will naturally do,” Indian External Affairs Minister S. Jaishankar said. Jaishankar also stated that India had done its best to assist Sri Lanka. This year alone India had extended $3.8 billion of support to Sri Lanka, including lines of credit and swap arrangements, he added.   All-party issues   The setting up of the all-party government, which has now changed to an all-party governance, has run into issues even before the initial work is completed. The appointment of the all-party mechanism continues to be delayed, with Wickremesinghe stating that the appointments to the new government should be made before the end of the week. However, there are doubts over whether Wickremesinghe will be in a position to meet his own deadline given the continuous issues being raised by the SLPP side. Advisors to Wickremesinghe have also made two observations on when the all-party mechanism should be put in place. One group has maintained that the appointments to the new government should be carried out this week, at least to make several appointments, while the other group has noted that it is best for Wickremesinghe to delay the new appointments until the conclusion of the interim budget process in Parliament the following week in order to ensure the SLPP’s fullest support for the Government. However, it is likely that Wickremesinghe will look at appointing several ministers this week in order to build some form of stability with the IMF delegation also in town till the end of the month. Amidst obstacles faced due to the decisions of the main Opposition Samagi Jana Balawegaya (SJB) and other Opposition parties like the Tamil National Alliance (TNA) and National People’s Power (NPP) to not join the Government, President Wickremesinghe has turned to securing the support of individual MPs from these parties, especially the SJB. SLPP dissidents now seated independently in the Opposition side of Parliament are also split on joining the all-party governance mechanism. The SLFP, despite claims of supporting the all-party government, remains undecided and has refrained from making any firm statement. However, to add to the existing conundrum, Wickremesinghe is also under pressure from SLPP seniors to accommodate several former ministers in the new cabinet of ministers to be appointed as the all-party governance programme. Among the names that have been put forward by the SLPP to be appointed to ministerial posts are MPs Namal Rajapaksa, Johnston Fernando, Mahindananda Aluthgamage, and Rohitha Abeygunawardena. Along with several SLPP MPs who are already Cabinet Ministers, the SLPP has given a list of 12 names that it wants appointed to cabinet portfolios. It is learnt that the SLPP seniors had first prepared three sets of lists, with the first one containing 25 names of SLPP MPs for ministerial and state ministerial posts while the second list had contained 20 names, and the final one 16 names. Among the names that were included in all three lists were that of Namal Rajapaksa, Johnston Fernando, Prasanna Ranatunga, Janaka Bandara Tennakoon, Rohitha Abeygunawardena, C.B. Ratnayake, Pavithra Wanniarachchi, S.M. Chandrasena, Ramesh Pathirana, Bandula Gunawardena, Sanath Nishantha, and Kanchana Wijesekera. It is reliably learnt that many members of the Opposition who are in discussion with the President at present to join the all-party governance mechanism have expressed their explicit objection to the appointment of any of the former ministers being pushed by the SLPP as members of the cabinet in the new government. Among those who are vehemently opposed to the former SLPP ministers are members of the SJB, SLFP, and the SLPP independent group. President Wickremesinghe in response has noted that he will not proceed with the appointment of Namal, Fernando, and Aluthgamage to the new government, but will look at Abeygunawardena as a compromise. However, it is also learnt that the MPs in the Opposition, especially several SJB leaders, have objected to Abeygunawardena also, saying that he too cannot be appointed to the new cabinet. The Opposition MPs have also informed the President that Minister Prasanna Ranatunga could also not hold a ministerial portfolio since he had been found guilty in a financial case by court.  It is in such a backdrop that Wickremesinghe had met with SLPP’s National Organiser, former Finance Minister Basil Rajapaksa on Thursday (18) and the SLPP district leaders to discuss the all-party governance mechanism and the ministerial appointments.   SLPP clash with RW   The meeting between Wickremesinghe and Basil took place at a time when a group of SLPPers was building a case against the President over his decision to make certain appointments to key positions without consultations with the SLPP. This group’s claim was that the SLPP’s agreement to support Wickremesinghe in Parliament was based on the verbal agreement reached between the President and the SLPP that appointments to key positions would be made with the consent of the SLPP. However, Wickremesinghe by this time had already decided to appoint nine new governors to the provinces, including several UNPers like Navin Dissanayake, Daya Gamage, and Shamal Senarath. The SLPP meanwhile had asked Wickremesinghe to not replace several provincial governors appointed by the former President, including Willie Gamage, A.J.M. Muzammil, and Lalith U. Gamage. However, it is evident that Wickremesinghe is stuck in sorting out the SLPP, with several factions of the party making various demands. During the meeting with Basil and several SLPP seniors, Wickremesinghe had emphasised the need to receive the support of all parties in Parliament to the Government in order to resolve the ongoing crisis and that the SLPP demanding a majority of the portfolios within a limited number of portfolios needed to be reconsidered. Several SLPP MPs at the meeting had then reminded Wickremesinghe that it was the SLPP’s support that had got him the presidency. Basil however had played the role of ‘good cop,’ trying to follow a middle path. He had informed Wickremesinghe that he understood the situation and that they could hold a further discussion on the matter.   Pro-GR campaign   Basil and senior SLPPers also called on Wickremesinghe to assist former President Rajapaksa to return to Sri Lanka by providing him the entitlements as a former president. The pro-Gotabaya Rajapaksa (GR) group meanwhile started a new operation to test the waters on public sentiment towards the Rajapaksas by sending out news through social media that former President Rajapaksa would enter Parliament from the SLPP’s National List upon his arrival in Sri Lanka. In order to give more punch to the story, it was further stated that SLPP National List MP Seetha Arambepola, who was appointed as a member of the Viyathmaga organisation, would step down from her parliamentary seat to pave the way for GR to enter Parliament. All these news items are being planted despite GR expressing his desire of securing a US Green Card and settling down in the US with his family. Several social media reports stated that after entering Parliament, GR would be appointed as the Prime Minister of the Wickremesinghe Government. Hearing of the SLPP’s plan, several pro-GR members, especially some who played a role in his political entrance, launched a social media campaign by creating two new hashtags – #BringBackGota and #BringGotaHome. When several highly-placed Government sources were questioned about the veracity of the story, some laughed while the rest maintained that they were unaware. However, no one denied the story outright, giving the clear impression that no one was privy to the inner dealings between Wickremesinghe and the SLPP seniors. GR is expected to return to Sri Lanka on Wednesday (24) and it is learnt that his hotel booking in Thailand has been made only till the 24th of this month. The decision to return to the country, it is learnt, had been made following security concerns raised by the Thai officials who had already asked GR not to step out of his hotel in Bangkok. However, it is learnt that there had been a communication between GR and Wickremesinghe where the latter had been informed that Rajapaksa was likely to extend his stay in Thailand and would most probably return on 2 September. Several Rajapaksa loyalists in the SLPP also held discussions on planning a welcome for GR at the airport while exploring the possibility of building a new campaign similar to the ‘Mahinda Sulanga’ that was launched in the run-up to the formation of the SLPP, following former President Mahinda Rajapaksa’s defeat in 2015.  However, the rest of the Rajapaksa family members have remained silent on the news of GR’s return to politics and have instead decided to seek security for the former President from the Government. Basil’s request from Wickremesinghe was to only facilitate GR’s return to Sri Lanka and ensure the required security and included nothing on GR returning to politics.   Pressure builds in SJB   Opposition and SJB Leader Sajith Premadasa meanwhile continues to stand firm on his decision that the party will not join the Wickremesinghe Government, while a group of senior SJB MPs continues to maintain that the party should play a role in the all-party government. The names of SJB MPs Champika Ranawaka, Kabir Hashim, Dr. Harsha de Silva, Eran Wickramaratne, Ranjith Madduma Bandara, Dr. Rajitha Senaratne, and Thalatha Atukorale were among the list of SJB seniors who had proposed that the main Opposition play a role in the new government in order to resolve the current crisis. A discussion had been organised at Madduma Bandara’s residence last week to discuss the SJB’s role in resolving the economic crisis. Madduma Bandara had however informed the party leadership of the meeting he had organised with several of his colleagues.  Following the meeting at Madduma Bandara’s residence, several news outlets reported that 20 SJB MPs led by Madduma Bandara had decided to join the Government. A majority of the participants at the meeting had already decided by that time to hold a discussion with the party leadership to look at how best the SJB could support the Government. However, Ranawaka, Madduma Bandara, and Wickramaratne later announced that they had no intentions of joining the Government and accepting portfolios. They maintained that they would extend their support while being in the Opposition. De Silva meanwhile continued to push for the setting up of an all-party governance within Parliament and outside. He also claimed that he would effectively push for the implementation of his blueprint for economic recovery. Nevertheless, the news items that keep appearing in the media of SJB members, including members of SJB’s coalition partners, joining the Government have become an irritant to Premadasa. Despite assurances given to the contrary, it is learnt that Premadasa is already aware of several SJB MPs who are in negotiations with Wickremesinghe to join the Government.   RW’s plan   Given the increasing clashes and issues over the appointment of an all-party governance structure, President Wickremesinghe has decided to look at another option to address these issues. It is learnt that Wickremesinghe is exploring the possibility of assigning Cabinet powers to the heads of the parliamentary sectoral oversight committees that are to be appointed to increase the powers vested with Parliament on the matter of governance. Wickremesinghe’s plan is to get the chairmen of these proposed oversight committees to be part of the all-party governance structure without getting some of the members in the SJB directly to the Government by appointing them as cabinet ministers. It is evident that this plan is aimed purely at the SJB MPs who have expressed willingness to be part of the Government but are facing stiff resistance from the party leadership. Chairpersons for the oversight committees are therefore to be appointed from among members of the SJB and its alliance partners as well as other party leaders in the Opposition. Opposition Leader Premadasa, it is learnt, has not objected to his members taking the lead in the proposed oversight committees. While there were previously 17 oversight committees in Parliament, Wickremesinghe is looking at increasing the number to 19. The new committees are expected to be announced in the House during next week’s parliamentary sessions. Meanwhile, the SLPP has already started to cut out names of Alahapperuma loyalists from the parliamentary watchdog committees. So far the names of MPs Dr. Nalaka Godahewa and Dilan Perera have not been nominated by the SLPP to the Committee on Public Finance (COPF) while the names of Alahapperuma and Prof. G.L. Peiris have been removed from the party leaders’ committee. The Alahapperuma group believes that Prof. Charitha Herath will also be excluded by the SLPP in its nominations for the Committee on Public Enterprises (COPE).   SLFP’s change of heart   The SLFP meanwhile is facing a split over the party’s role in the all-party government. Party Leader, former President Maithripala Sirisena continues to send out mixed messages. During a public event last week, Sirisena had noted that he knew President Wickremesinghe well as he had governed the country with him for five years. He had further noted that all parties needed to cast aside their differences for the sake of the country and help it out of the current crisis. It is also learnt that a confidant of President Wickremesinghe, who had been silent during the past few years, had approached Sirisena to clear out the path for the SLFP to join the all-party governance. A meeting had then been organised between Wickremesinghe and Sirisena for Friday (19) morning. The Wickremesinghe confidant had also met Sirisena on Friday evening to ensure that the SLFP Leader was prepared to join the Government with the party. It is learnt that Sirisena had responded positively. However, he has remained tight-lipped on the matter thereafter, with the SLFP MPs deciding to meet with him for more clarity. Meanwhile, SLFP Senior Vice President Prof. Rohana Luxman Piyadasa has recently stated that the formation of an all-party would not take place as President Wickremesinghe and the SLPP-led Government did not seem capable of creating the necessary environment for it. “As the SLFP, we have informed the President that if an all-party government is to be formed, the number of cabinet and deputy ministers should be reduced as much as possible, especially considering the current economic situation. However, many parliamentarians in the current SLPP-led Government are hoping for ministerial positions and other privileges, so it is doubtful whether the President and the Government are ready to agree to our conditions,” he added. Speaking further, Prof. Piyadasa claimed that MPs representing certain political parties would be given ministerial positions, deputy ministerial positions, chairmanships of district coordinating committees, and certain other privileges in the near future.   Yuan Wang 5 in H’tota   The controversial Chinese tracking vessel, the Yuan Wang 5, arrived at the Hambantota Port on Tuesday (16) for a short call. The vessel was to initially dock at Hambantota from 11-17 August until the Sri Lankan Government temporarily rescinded permission. However, after further consultations with India and the US, the Government decided to permit the vessel to dock in Sri Lanka from 16-22 August. However, the Chinese vessel departed from Hambantota on Friday (19), several days prior to the departure date noted by the Sri Lankan Government.  To mark the occasion, the Chinese Embassy had invited leading officials from the Government including the Presidential Secretariat. Eyebrows were raised when at the event Member of Parliament Admiral Sarath Weerasekera was introduced as a representative of the President.  It is learnt that frantic calls were made to the Presidential Secretariat inquiring if Weerasekera was the President’s representative, only to be informed that the President had not sent any representative. Weerasekera was left further red faced when he was denied access to the vessel.  Another incident that had taken place at the Hambantota Port during the vessel’s welcome programme was a translation error in a statement made by MP Wimal Weerawansa at the event. When Weerawansa had said that the ‘Sri Lankan State should be protected,’ the translator had said ‘the Sri Lankan Government should be protected’. This had made even the Chinese invitees at the event turn to each other. Hearing of this error, Weerawansa had asked the translator to immediately clarify his comment.   Indian heat on SL   The arrival of the Yuan Wang 5 and talk of joint ‘war games’ of the Sri Lanka Navy and the Pakistani Navy coinciding with the docking of the Pakistani Navy vessel Taimur in Colombo has resulted in India taking a strong stance against the Sino-Pak influence in the Indian Ocean region. India’s External Affairs Ministry has also criticised any third parties that participate in the Sino-Pak dealings.  India’s NDTV on 12 August reported India’s External Affairs Minister Jaishankar saying that India-China relations cannot be normal unless the border situation is peaceful and that if China disturbs the peace and tranquillity in border areas, it will impact relations further. “We have maintained our position that if China disturbs the peace and tranquillity in border areas, it will impact our relations. Our relationship is not normal; it cannot be normal as the border situation is not normal,” Jaishankar has been quoted as saying in Bengaluru on the India-China issue. Jaishankar has also said that the big problem is the border situation and that the Indian military has been holding on to the ground. “We have made substantial progress in pulling back from places where we were very close to the Line of Control,” he has added. Moreover, Jaishankar while speaking on the Belt and Road Initiative (BRI) has noted: “There was a violation of our territorial integrity and sovereignty, the fact that a third country is doing things on sovereign Indian territory occupied by another country.” Earlier, India’s Ministry of External Affairs (MEA) had stated that the Government had seen reports about third countries participating in China-Pakistan Economic Corridor (CPEC) projects and that any such activity by any party was a direct infringement on India’s sovereignty and territorial integrity. MEA Spokesperson Arindam Bagchi had said India firmly and consistently opposed projects in the “so-called CPEC, which are in Indian territory that has been illegally occupied by Pakistan”. “Such activities are inherently illegal, illegitimate, and unacceptable, and will be treated accordingly by India,” the official statement had added. The response of the MEA comes amid reports that Pakistan and China have decided to invite any interested third country to join the multibillion-dollar infrastructure CPEC project, which they termed as mutually beneficial cooperation.   Appeasing India   With relations between Sri Lanka and India having taken a hit over the visit of the Chinese Yuan Wang 5, efforts were in overdrive to soothe relations between the two neighbours.  On Monday, the Indian Government gifted Sri Lanka a Dornier 228 maritime surveillance aircraft, which will be used to help enhance Sri Lanka’s maritime surveillance efforts. The arrival of the aircraft was also a personal achievement for President Wickremesinghe, who had begun discussions with India regarding this matter back in 2018. After four years, this was certainly a significant milestone for the two countries in terms of defence engagement.  Meanwhile, Wickremesinghe noted that history has brought India and Sri Lanka together like two sides of the same coin and the two countries must forge ahead together. The President also called for both countries to commit to further strengthening their relationship as India and Sri Lanka shared many commonalities and the two countries had to build on it. The President made this comment during an event to hand over the Dornier 228 reconnaissance aircraft to Sri Lanka by India.  “I have always said that we are two sides of a single coin. It is not possible to split a coin for one face to fall one way and the other face to fall the other way. For whatever it is, history has put us together and we have to stay together. What is this relationship? I haven’t got a word for it, but the closest I could come is the symbiotic relationship between the two countries. We are both marking our 75th anniversaries. I say let us commit ourselves to further strengthening our relationships,” he said. Following the event, an official lunch was hosted by Air Force Commander Air Marshall Sudarshana Pathirana for the President and Indian High Commissioner Gopal Baglay. Everyone in attendance had looked on in amusement seeing Wickremesinghe and Baglay in an animated chatt during the meal. In fact, conversations between the two groups carried on beyond the scheduled end, resulting in the weekly Cabinet meeting starting 30 minutes later than scheduled.   LTTE talk returns   Indian media meanwhile reported last week that India’s National Investigation Agency (NIA) had stated that an accused had been involved in activities of proscribed terrorist organisation Liberation Tigers of Tamil Eelam (LTTE) within India and abroad. The revelation was made following a case pertaining to the seizure of a huge quantity of narcotic drugs along with five AK-47 rifles and 9 mm ammunition numbering 1,000 from Sri Lankan fishing boats. The accused had also plotted to procure prohibited arms and ammunition, besides contraband articles. The NIA of India had filed the report in the Kerala High Court in response to the bail plea filed by Ramesh, a Sri Lankan native, and the eighth accused in the case. The Indian Coast Guard had intercepted the boat Ravihansi near Minicoy Island, Lakshadweep, on 18 March 2021. There had been no proper documents and six Sri Lankan nationals found on board had been arrested by the Kochi sub-zone of India’s Narcotics Control Bureau (NCB) on their arrival at Vizhinjam Port in Thiruvananthapuram. The Central Government had directed the NIA to take over the probe and later the seventh accused and his brother and the eighth accused had been taken into custody, allegedly for being members of the banned LTTE. Ramesh had revealed that he had stayed in India without a visa, violating the provisions of the Foreigners Act. According to the NIA, Ramesh and the other accused, including his brother, being a core cadre of the LTTE, had held secret meetings and conspired to carry out illegal activities of trafficking in drugs and also arms and ammunition with the intention of raising funds to revive and further the activities of the LTTE, both in India and Sri Lanka. They had formed a terrorist gang and transferred money through hawala channels for the procurement of drugs, arms, and ammunition. A witness in the case also spoke of the drug and unlicensed money transfer business carried out by the brothers and had specifically referred to Ramesh having collected such funds from a person named Faseel Bhai. While dismissing Ramesh’s bail plea, the Court had noted that the statements of the witnesses showed not only his inextricable connection with the illegal activities, but also his definite link with the LTTE.