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RW Govt. moves key financial laws setting the stage for crossovers while SLPP draws battle lines

RW Govt. moves key financial laws setting the stage for crossovers while SLPP draws battle lines

19 May 2024 | Black Box By Capt. Vasabha


  • SJB MPs supporting RW expected to make public their support during the vote on key econ bills
  • Lu focuses on CTUR Bill; asks Govt. to push bill despite criticism in order to start somewhere
  • Detractors of CTUR Bill asked to either proactively engage or present viable alternative to proceed
  • MR’s salvo on divesting State assets draws attention once again to Rajapaksas’ econ mismanagement
  • MR has unscheduled meeting with RW in Parliament; discussion focuses on Keheliya’s case, not SOEs
  • RW reveals racket behind calls for Parliamentary Polls; UNP in polls mode and appoints organisers
  • SLPP to begin election campaign with series of electoral-level rallies; first one in Kalawewa on 26 May
  • SJB’s legality issue cleared by EC; Senaka says will not allow Sajith to contest under ‘telephone’ symbol
  • Duminda files revised petition against Wijeyadasa’s party leadership; Colombo DC to take it up tomorrow
  • Focus on SLPP’s disciplinary action against Wijeyadasa; next in line Saman Lal asks SLPP to act fast
  • Maithripala accused of ‘selling’ party to raise funds to pay compensation; complaint before CIABOC
  • SLFP faction joins Yapa-Lanza alliance; to launch rally in Hambantota on 8 June organised by Amaraweera



The increased vigour with which the Ranil Wickremesinghe Government is pushing through new pieces of legislation is a clear indication that President Wickremesinghe has already commenced his campaign for the upcoming Presidential Election, although the official announcement of his candidacy is expected in June.

President Wickremesinghe last week claimed that his Government had introduced some 75 new pieces of legislation within a period of two years, with the key focus on combating corruption and other forms of irregularities. However, it is interesting to see the lack of action against those responsible for causing the country’s economic crisis even with a Supreme Court verdict on the matter.

It is in such a backdrop that the President has announced plans to introduce four key laws to propel the country’s economy towards rapid development, transitioning to an export-oriented economy.

“The first law, granting independence to the Central Bank, has already been enacted. Remaining laws include the Public Debt Management Law, Public Finance Act, and Economic Transformation Law, and the support of all parties has been sought,” the President’s Media Division (PMD) said in a statement.

Following Cabinet approval for the Economic Transformation Bill, Parliament last week announced that the proposed Economic Transformation Bill and Public Financial Management Bill were set to be presented to Parliament on Wednesday (22).

Be that as it may, the vote on these two pieces of legislation will play a decisive role in President’s Wickremesinghe’s campaign for the Presidential Polls. It is learnt that political manoeuvrings are ongoing to get some Members of Parliament (MPs) of the main Opposition Samagi Jana Balawegaya (SJB) to extend support to these bills as a mark of their support for President Wickremesinghe. 


Lu focuses on CTUR


While the political stage is fully active, US Assistant Secretary of State for South and Central Asian Affairs Donald Lu called on President Wickremesinghe last week. This is the Assistant Secretary’s second visit to Sri Lanka, highlighting the increased emphasis placed on the country by the US State Department.

While commending the reform efforts on the economic front, Lu made a special mention of the Government’s proposed Bill on the Commission for Truth, Unity, and Reconciliation (CTUR) in Sri Lanka. This bill had raised concerns from both sides of the aisle two weeks ago during a party leaders’ meeting in Parliament. While MP Wimal Weerawansa had objected to the bill, stating that it threatened members of the armed forces, Tamil National Alliance (TNA) MP M.A. Sumanthiran also flagged concerns about it, describing it as a tepid piece of legislation. 

However, during the discussions, Lu encouraged the President to push ahead with the legislation despite shortcomings, recognising that the efforts had to begin somewhere. A special mention was made about the detractors of the bill, with the Assistant Secretary stating that they should either proactively engage with the programme or present a viable alternative without sitting on the sidelines simply opposing it. 

Lu also welcomed the country’s continued engagement with the naval operations in the Red Sea. The Government delegation explained that not only were they concerned about the impact on the Sri Lankan economy from these attacks on the shipping lines but also that these operations were considered an opportunity for Sri Lanka’s naval officers to gain vital experience. 

With elections around the corner, the conversation also turned towards the President’s plans to contest. While Wickremesinghe remained elusive in his answer, he did indicate that a successful presidential campaign would have to be fought on the grounds of continuity of the reform programme the country was undergoing. Lu recognised this, expressing his hope that off the political stage, politicos would be able to come to an agreement on the economic reforms. 

He went on to comment on the unique nature of the country’s political environment, stating that across Asia, Sri Lanka was one of the very few countries where politicians from either side of the aisle were able to interact cordially outside of Parliament. He recognised that this would certainly play a role in ensuring sustainability of such programmes.


MR’s salvo


With much focus being placed on the impending elections, ruling Sri Lanka Podujana Peramuna (SLPP) Leader, former President Mahinda Rajapaksa (MR) fired a salvo at the Wickremesinghe Government’s public sector reforms agenda by calling for the postponement of the Government decision to privatise State assets.

MR said that as a measure to ease the widespread discontent over the Government’s divestiture drive, he proposed that all moves to sell off State-owned assets or enterprises be postponed until a new government was formed after the next Presidential Election.

“The new government will then be able to deal with State-owned properties and enterprises in accordance with the mandate they obtain at the election,” he said in his statement.

MR said that the Government’s plans to sell off certain national assets and State-owned enterprises had given rise to discontent among trade unions, political parties, and the general public.


Ignoring the cause


Nevertheless, MR had failed to acknowledge the reasons for the economic crisis faced by the country, which in turn had resulted in the programme to restructure State-Owned Enterprises (SOEs) to minimise the financial burdens on the State coffers.

While MR had called on the Wickremesinghe Government not to privatise State assets, he had ignored the actions of the respective Rajapaksa governments that had pushed Sri Lanka into a Chinese debt trap. Regardless of the explanations given by the former MR Government on several occasions in the past of the increase in Chinese debt during his tenure, the fact remains that the commercial borrowings from China at high interest rates while avoiding low interest rate borrowings from other multilateral financial institutions was a key cause for Sri Lanka’s economic woes.


Objection from within


However, it is interesting to see that the first to defy MR’s statement was none other than a Minister of the SLPP itself. Power and Energy Minister Kanchana Wijesekera said in Parliament on Monday (13) that the restructuring of the Ceylon Electricity Board (CEB) would continue as MR had not requested its postponement.

“Mahinda Rajapaksa has not requested the postponement of the restructuring of State enterprises. He has only asked for the postponement of selling State enterprises. We have no intention of selling the CEB. The restructuring of the CEB will continue,” Wijesekera said.

Wijesekera made these comments in response to a question posed by the SJB asking whether he [Wijesekera] was with President Wickremesinghe or with MR following the latter’s recent statement.


MR meets RW


Meanwhile, MR had met with President Wickremesinghe recently at the latter’s office in Parliament during last week’s parliamentary sessions. MR had been accompanied by former Minister Gamini Lokuge and State Minister Thenuka Vidanagamage.

Seeing MR walking into his office, Wickremesinghe had thought that he was meeting with him as a follow-up to the statement issued on the SOE privatisation matter. “I received your letter. I will look into it,” the President had said. 

MR had responded saying that he had not arrived to discuss his statement. The former President had then said that he had come to discuss the case regarding former Health Minister Keheliya Rambukwella. MR had gone on to explain that he was there to make representations on Rambukwella’s behalf after considering the plight of his family.

The President had noted that he had not seen the documents related to the case. MR had asked whether he could arrange for the documents to be given to him [Wickremesinghe].

Vidanagamage had then connected Rambukwella’s daughter through his mobile phone and handed it over to MR, who had told her that he was with the President discussing her father’s case and had asked her to bring over the documents related to the case. 


SLPP campaign


Meanwhile, the ruling SLPP has decided to commence its election campaign by holding rallies at electoral level islandwide. Accordingly, the first rally is scheduled to be held in the Kalawewa electorate in the Anuradhapura District next Sunday (26).

The SLPP, it is learnt, had decided to commence this series of rallies after President Wickremesinghe had failed to respond positively to the request by the party’s theoretician Basil Rajapaksa to hold the Parliamentary Elections prior to the Presidential Election.

It is also learnt that Basil had continued the push for Parliamentary Polls during his seventh round of discussions with the President held on Monday (13).

SLPP seniors are currently displeased that a majority of the party MPs are not supportive of holding early Parliamentary Elections and have instead opted to prepare for the upcoming Presidential Election.


Slamming RW Govt.


Meanwhile, SLPP Leader MR openly hit out at the Wickremesinghe Government last week, saying that the party did not endorse the Government’s current path.

He noted that the SLPP remained independent despite being a stakeholder of the Government and that the party would not betray its policies. “We don’t approve of the Government’s programme. We have not betrayed our independence although we are in the Government. We are ready to move out of the Government for the sake of the country,” he told the media. 

When asked whether the SLPP wanted a Parliamentary Election or a Presidential Election first, MR responded saying that the party was ready to face any election. “Some feel it is better to have a Parliamentary Election first and some others don’t agree with it. As a party, we are ready to face any election,” he added.


RW for Prez Polls


Meanwhile, President Wickremesinghe reiterated that the Presidential Election would be held as scheduled prior to the Parliamentary Elections, due next year.

This time around, Wickremesinghe made a public statement on elections while pointing out a dubious racket at play. He said at an event on Wednesday (15) that those trying to promote early Parliamentary Elections were engaged in a racket.

The President explained that those stating that Parliamentary Elections would be held first were targeting a fall in the stock market in order to purchase stocks at lower prices. “When there’s a feeling that there will be an early Parliamentary Election, there’s a downward trend in the stock market,” he said.

He claimed that once these elements purchased stocks at lower rates, they would hold on to them for a while until there was confirmation that there would not be early Parliamentary Elections and sell them off when the stock prices increased, making hefty profits for themselves.

Wickremesinghe added that there were close ties between economic rackets and political instability, and that the public should be aware of this.


UNP in polls mode


The United National Party (UNP) meanwhile stepped up its electoral preparations in the past week. Following the party’s successful May Day rally, its Management Committee set about finalising the names of organisers for the electorates around the country. 

The UNP will be hoping that the appointment of new electoral organisers, the first since its defeat at the 2020 Parliamentary Election, will further bolster its grassroots network. 

The decision to finalise the organisers also comes on the heels of members of the SLPP and the main Opposition SJB indicating to the UNP that they want to see a proper organisation back in play under the UNP banner. With the President likely to contest the upcoming election as a national candidate, the parties have indicated that the UNP’s presence is required to ensure his victory. 

These talks have come alongside the ongoing backroom discussions about the possibility of a dozen or so SJB MPs sitting as independent members in Parliament. With the frustration growing within the SJB ranks over Opposition and SJB Leader Sajith Premadasa’s perceived inability to stay loyal to the old guard of the party, talks within SJB circles have focused on their plan for the upcoming election. 

It is learnt that last week in Parliament, a message had been distributed among several SJB MPs that a discussion was required regarding the pros and cons of a Premadasa candidacy. Sources with knowledge of the discussions stated that the next round of internal talks with the SJB members was due to take place tomorrow (20).

It is in the backdrop of growing uncertainty over support for Premadasa that the Opposition Leader surprisingly decided to appoint Mayantha Dissanayake as District Leader of Nuwara Eliya. A sitting member for the Kandy District being given leadership over a different district raised numerous eyebrows in the party. 

Dissanayake himself had run afoul of Premadasa last year when he accepted the post of Chairperson of the Committee on Public Finance (COPF), which had unofficially been earmarked for SJB MP Dr. Harsha de Silva. While his tenure lasted only one meeting, Dissanayake found himself ostracised by the SJB group. 

Certainly, this change of heart on the part of Premadasa suggests that political bargaining is in full swing behind the scenes in the SJB camp. Dissanayake will be inheriting the seat his father and elder brother both held. 

With Navin Dissanayake being the current Governor of the Sabaragamuwa Province, it appears unlikely that the two brothers will clash on the electoral stage. Navin is reportedly eyeing the possibility of contesting from Kegalle. However, with a slew of crossovers expected and one of the State Ministers of Finance being from Kegalle, there doesn’t seem to be too much assurance that the seat is his for the taking.


No issues for SJB


The SJB is also now breathing easy after being cleared of facing legitimacy issues as claimed by former State Minister Diana Gamage.

The Election Commission (EC) has clarified that the dual citizenship status of individuals involved poses no obstacle during political party registration, indicating that there is no ‘apparent’ issue regarding the legitimacy of the SJB.

Former State Minister Gamage and Senaka de Silva had once held ownership of a political party named Ape Jathika Peramuna (AJP), which had been transferred to a faction led by incumbent Opposition and SJB Leader Premadasa ahead of the Parliamentary Elections in 2020, after which it was rebranded as the SJB. 

Gamage’s recent loss of her parliamentary seat due to her UK citizenship has prompted her to threaten to reclaim ownership of the SJB, sparking concerns about its legality.

EC Chairperson R.M.A.L. Rathnayake said that Gamage had once served as the AJP’s Secretary, but its ownership had then been transferred to another party (the Premadasa-led group), after making changes to the party’s Constitution and office bearers. 

“The AJP has been rebranded as the SJB and the EC has recognised it as the SJB. Nominations for current SJB MPs have been issued under the name of its incumbent General Secretary Ranjith Madduma Bandara, so there is no apparent issue with regard to it,” he said.

The Gamage saga has revealed that there is no impediment for a dual citizen to register a political party. The relevant legal provisions do not mention dual citizenship, and therefore, even a person who has come from abroad can register a political party.


Senaka’s threat


Meanwhile, former Leader of the AJP Senaka de Silva says he will wrest control of the SJB again.

De Silva claimed that Premadasa would not be allowed to contest under the ‘telephone’ symbol and added that Sajith’s leadership would not be recognised, with many court cases filed over the party’s ownership.


Sirisena’s chaos


However, the award for the most amount of political drama within a week goes to none other than the Sri Lanka Freedom Party (SLFP).

Last week saw Maithripala Sirisena – who was recently prevented from serving as the Leader of the SLFP by court – resigning from the position, leading to the election of Justice Minister Dr. Wijeyadasa Rajapakshe as the new SLFP Leader by the pro-Sirisena faction.

Meanwhile, following Rajapakshe’s appointment to the post, Keerthi Udawatte was appointed as Acting General Secretary of the pro-Sirisena faction of the SLFP. While Rajapakshe was earlier appointed as the Acting Leader of the SLFP by the pro-Sirisena faction, this time around, he [Rajapakshe] was appointed as the party’s Leader.

The Colombo District Court has issued injunctions preventing SLFP Leader Sirisena, Acting Chairperson (appointed by the Sirisena-led faction) Rajapakshe, and Acting General Secretary Sarathie Dushmantha Mithrapala from serving in the respective posts.

Against this backdrop, the SLFP Executive Committee convened at a function hall in the Kotte area last Sunday (12), where Sirisena, Rajapakshe, Mithrapala, and several others representing the Sirisena-led faction were in attendance.

The pro-Sirisena faction noted that Sirisena had submitted his resignation as Party Leader, citing concerns that various lawsuits against him could impede the SLFP’s preparations for the upcoming elections. He had added that he would however remain involved in party activities.


Wijeyadasa’s stance


Following his appointment as the SLFP Leader, Rajapakshe spoke to the media, expressing confidence in his new post despite ongoing court cases. The new Party Leader took many swipes at the opposing faction in the SLFP led by Minister Nimal Siripala de Silva, who also serves as the Acting Leader of the SLFP.

When the media asked about the split in the SLFP, Rajapakshe responded saying that there was only one faction in the party and the Executive Committee meeting had been held in a legal manner in line with the party Constitution. “There are no factions; less than 10 individuals are of a different opinion in the party. We believe that they will join with us and work for the party and country,” Rajapakshe said.

The newly-appointed SLFP Leader further maintained that the court enjoining order was against him [Rajapakshe] from holding the post of Acting Party Leader and not the post of SLFP Leader. When the media asked if such a new appointment would not pose an issue for the court case, Rajapakshe responded with a smile: “If it’s not a problem for us, why is it a problem to you?”

Rajapakshe made these statements with Sirisena by his side at the news conference held following the Executive Committee meeting. However, Rajapakshe avoided answering a question on whether he still remained a member of the ruling SLPP.


Meetings at Party Office


Meanwhile, the faction led by Minister de Silva, who was appointed Acting Leader of the SLFP by a group supported by former Leader of the SLFP and former President Chandrika Bandaranaike Kumaratunga (CBK), continued to hold a series of meetings at the SLFP Headquarters at Darley Road, Colombo. 

These meetings were chaired by SLFP Acting General Secretary Duminda Dissanayake, who was appointed to the post by the pro-de Silva faction. Dissanayake was accompanied at these meetings by Minister Mahinda Amaraweera and State Minister Lasantha Alagiyawanna as well as former Parliamentarian Weerakumara Dissanayake.

The meetings were with the SLFP organisers of each district. 

It is learnt that several party seniors had in writing informed Dissanayake that while they supported the party and would continue to engage in party activities, they would refrain from attending any meeting organised by the faction until the legal cases were resolved.


Illegal meeting


Dissanayake meanwhile claimed that the Executive Committee meeting held last Sunday by the pro-Sirisena faction had no legal basis. 

In a letter addressed to SLFP Senior Vice President Sarath Ekanayake, who is said to have called the said meeting, Dissanayake had noted that holding such meetings was a violation of injunction orders issued by court.

However, Sirisena maintained that the Executive Committee was convened in a legal manner.


Wijeyadasa’s court order


The Kaduwela District Court meanwhile on Monday (13) issued an enjoining order preventing any individuals from disrupting the new Leader of the SLFP Rajapakshe and the party’s new Acting General Secretary Keerthi Udawatte from functioning in their respective roles.

The order was issued after considering a petition filed with the court by two SLFP Executive Committee members, namely, Isuru Abeywardena and Sumith Wijayamuni de Zoysa, naming 20 Executive Committee members as respondents.


Duminda hits back


However, Dissanayake responded to the enjoining order obtained by Rajapakshe by filing another motion before court.

Dissanayake on Tuesday (14) initiated legal action before the Colombo District Court challenging Rajapakshe’s and Udawatte’s appointments as SLFP Leader and Acting General Secretary, respectively. The court took up the plaint on Wednesday (15) and Thursday (16). 

The plaintiff had sought an enjoining order preventing Rajapakshe and Udawatte from functioning in these posts and had further sought a declaration that all decisions taken during an Executive Committee meeting held on Sunday (12) be deemed not valid in law.

Dissanayake had alleged that the Executive Committee meeting had been convened illegally, contrary to the provisions of the SLFP Constitution, and that therefore, its subsequent appointments were not legally valid.

The court on Thursday however dismissed the petition seeking interim relief to prevent Rajapakshe from carrying out his duties as the SLFP Leader.


Refiling petition


The announcement of the dismissal of Dissanayake’s petition by the Colombo District Court was immediately circulated by the pro-Sirisena faction, including Rajapakshe supporters. However, they refrained from stating the basis on which the court had rejected the petition. 

After the initial hype of the dismissal died down, several inquiries were made by party members from the pro-de Silva faction including the petitioner, Dissanayake. It was then revealed that the court had dismissed the petition on a technical ground and had sought a fresh application.

Accordingly, a revised petition was filed by Dissanayake before the Colombo District Court on Thursday itself and it is now scheduled to be taken up tomorrow (20).


Bribery accusations


Meanwhile, a former member of the SLFP Executive Committee, Montague Sarathchandra, has filed a complaint with the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) against Sirisena.

Sarathchandra claims that SLFP supporters are speculating that Sirisena has paid compensation to the victims of the Easter Sunday terror attacks with an “advance obtained from selling the SLFP”. The complaint has been filed seeking an investigation in relation to how he had obtained the relevant funds. The former member of the SLFP Executive Committee further alleged that there was suspicion that Sirisena had been bribed by some party amidst the entire SLFP being in chaos. 

Sirisena paid a first instalment of Rs. 15 million (of the Rs. 100 million to be paid as compensation by him to the victims of the Easter Sunday attacks) on 11 July 2023. He had also made a payment of Rs. 15 million on 22 April and another payment of Rs. 13 million on 30 April. The total paid by him for court-ordered compensation payment is Rs. 43 million. The remaining amount to be paid by Sirisena now stands at Rs. 57 million.


Focus on SLPP


However, Rajapakshe’s latest actions have put the SLPP back in the spotlight. With Rajapakshe being named as the SLFP Leader and an enjoining order being issued by the Kaduwela Court accepting his post as SLFP Leader, he is in violation of the SLPP’s Constitution.

According to the SLPP Constitution, a member of the party cannot hold membership of another political party. 

The SLPP had earlier claimed that the party would initiate disciplinary action against Rajapakshe when the latter was announced as the Acting Leader of the SLFP by the pro-Sirisena faction. In fact, SLPP theoretician Basil had also communicated to President Wickremesinghe during one of their weekly meetings that the SLPP would take disciplinary action against Rajapakshe and that the Government would then have to determine its stance on the matter.

President Wickremesinghe had also warned Rajapakshe in one instance that he could lose his ministerial portfolio in the event the SLPP sacked him from the party, resulting in him losing his parliamentary seat.


Membership letter


Meanwhile, the pro-de Silva faction had acquired copies of the SLFP membership obtained by Rajapakshe as well as a letter issued along with the membership by Sirisena.

Sirisena on 2 April this year had issued a letter to Rajapakshe stating that he had been granted membership of the SLFP.

A copy of the letter seen by the ‘Black Box’ shows that it had been issued not with the letterhead of the SLFP but with Sirisena’s letterhead as the sixth Executive President of the country. It is learnt that Sirisena had issued the membership letter on his letterhead instead of that of the party since he could not gain access to a party letterhead, given that the SLFP Head Office at the time had been under the custody of the pro-de Silva faction and the Police had declared the building a ‘no-go zone’ following a complaint lodged with the Police by the party’s then Acting General Secretary Mithrapala.


Saman Lal’s plight


The delay in the SLPP’s action over Rajapakshe has now caused much frustration for Rajapaksa loyalist, former Mayor of the Moratuwa Municipal Council Saman Lal Fernando, who is next in line to enter Parliament under the SLPP’s Colombo District list.

It is learnt that Fernando has expressed his frustration over the SLPP’s failure to take disciplinary action against Rajapakshe and sack him from the party since the seat that falls vacant with Rajapakshe’s departure from Parliament will enable Fernando to enter the House under the party’s Colombo District list.


New alliance in June


Meanwhile, the political alliance that was formed by a group of SLPP dissident MPs led by Anura Priyadarshana Yapa and Nimal Lanza is to be launched on 8 June at a rally being organised in the Hambantota District.

The organising of the Hambantota rally is being led by SLFP Minister Mahinda Amaraweera.

The discussion last week was focused on the number of MPs who have confirmed their support for the alliance as well as the arrangements for the Hambantota rally.

A group of members of the alliance held a meeting on Tuesday (14) with representatives of the SLFP. Duminda Dissanayake, Amaraweera, State Minister Suren Raghavan, and Weerakumara Dissanayake represented the SLFP at the meeting.

The new alliance also has the support of several SLPP dissident ministers, such as Susil Premajayantha and Nalin Fernando, as well.



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