• Paris Club creditors’ group on SL to take more time, China continues to wait and see
• RW prepares to visit China in October, both sides in the process of finalising agenda
• No date fixed for China’s Shi Yan 6 to visit Colombo; Govt. says Nov., China says Oct.
• Indian Defence Minister’s last-minute cancellation of visit to SL due to indisposition
• RW to take two SJB MPs to New York for UNGA, SJB leadership displeased with move
• SLPP MPs join ministers’-State ministers’ clash, plan to boycott Keheliya’s NCM vote
• RW issues missive for all Govt. MPs to be in Parliament; no guarantees on all, says SLPP
• Lanza clashes with Sagara over SLPP’s history, challenge made for open debate on TV
• SLFP convention amidst clashes; no changes in party positions, says Sirisena with Nimal
• Sirisena says ready to lead the country again; no invite for MR for convention, only CBK

While gearing for the pending International Monetary Fund (IMF) review of the Extended Fund Facility (EFF) scheduled for this month, the Ranil Wickremesinghe Government is looking at a possible delay in the finalising of the country’s debt restructuring programme.

The debt restructuring programme was supposed to be finalised this month, with the Sri Lankan Government preparing its proposal to be presented to bilateral creditors in mid-September.

However, it is now learnt that finalising the debt restructuring programme could get delayed until October with the Paris Club also seeking more time to reach a final stage on the programme. Hence, the debt restructuring process with bilateral creditors will take a few more weeks than previously anticipated while the Domestic Debt Restructuring (DDR) programme is also facing delays. 

The Chinese side, meanwhile, seems to have adopted a wait-and-see attitude by continuing to remain silent on its commitment to the debt restructuring programme, other than to say that China will support Sri Lanka to overcome the economic crisis.

Meanwhile, President Wickremesinghe is expected to engage on his first official visit as President to China in October. The three-day visit is expected to take place between 15 October and 20 October and the Sri Lankan and Chinese officials are currently in the process of finalising the agenda for the President’s visit.

Budget preparations

Amidst the delay in finalising the debt restructuring programme, the Government last week commenced initial preparations for the 2024 Budget.

State Finance Minister Ranjith Siyambalapitiya had said that the review of the Budget proposals would start from Monday (28 August).

He had said during a meeting in Yatiyantota that the proposals received for the 2024 Budget had been reviewed until 22 August.

Siyambalapitiya had further noted that a strong and challenging budget would have to be presented for 2024 given the challenging conditions faced by the country at present.

Meanwhile, Capital Alliance Ltd. (CAL) has said that it expects a further policy rate cut by the Central Bank of Sri Lanka (CBSL) ranging from 200-250 basis points before the end of 2023, while the Average Weighted Prime Lending Rate (AWPLR) is expected to reach 14.5% by the end of October.

Speaking at a webinar by CAL Sri Lanka on 27 August, CAL Head of Research Trisha Peries said they expected a further policy rate reduction of 200-250 basis points, adding to the 450 basis points already reduced, due to inflation coming off at a much faster pace and being expected to be at very low single-digit levels in Q3 and Q4 of 2023.

However, Opposition political parties have criticised the Government’s handling of economic affairs, with National People’s Power (NPP) MP Dr. Harini Amarasuriya recently stating that the Government did not even have a cohesive plan to prevent the brain drain.

She has noted that the migration of academics was in turn denying children the opportunity of having a higher education.

Singh’s cancellation

The last-minute cancellation of India’s Defence Minister Rajnath Singh’s two-day visit to Sri Lanka on Saturday (2) and today (3) came as a surprise to even Sri Lankan Government officials on Friday (1) night.

However, Government sources noted that the visit had been deferred since the Indian Minister was indisposed and that dates for the visit would be fixed depending on his schedule.

The visit of the Indian Defence Minister was being coordinated by Sri Lanka’s Defence Ministry and the Indian High Commission in Sri Lanka had organised a reception in honour of Minister Singh onboard Indian warship INS Delhi, scheduled for last evening. INS Delhi docked in Colombo on Friday, ahead of what would have been the Indian Defence Minister’s visit.

Singh’s visit to Sri Lanka this weekend was last week announced in a news report published in The Hindu, which quoted two defence sources.

As per media reports, Singh was expected to visit Trincomalee, where India is jointly investing in the joint development of the oil tank farm under an agreement signed in January 2022.

Shi Yan 6 saga continues

Meanwhile, the controversy surrounding the Chinese geophysical and seismic survey vessel Shi Yan 6 continued last week, with the Sri Lankan authorities yet to reach an agreement with the Chinese side on when the vessel would call at Colombo and the area marked for the surveying.

Government sources noted that the Sri Lankan Government had requested the Chinese vessel to call at Colombo in November while the Chinese side continues to insist on an earlier date in October. Also, the area of surveying is also under discussion, with the Sri Lankan Government looking at permitting surveying the sea around the Western Province.

Hence, there has been no final agreement reached on the Chinese vessel’s visit to Sri Lanka.

Meanwhile, the National Aquatic Resources Research and Development Agency (NARA) has said that all data collected by Shi Yan 6 will be in the possession of the NARA and that the data will be considered as a property of the Sri Lankan Government.

According to sources within the Ministry of Defence, approval has been given for the vessel to carry out research in Sri Lankan waters with NARA, on request by NARA and the Foreign Affairs Ministry.

NARA Chairman Prof. Jayantha Wijeyaratne has told the media that this is not a new scenario as many parties claim, since a number of Chinese vessels have conducted similar research activities during the past few decades. He had noted that this had been routine for Sino-Lanka research activities. 

The Foreign Affairs Ministry has maintained that it has not made any objection to the request made by China since it looks at this request in the context of a research vessel which had previously conducted research in Sri Lanka with the participation of NARA’s scientists.

However, the foreign policy of the Sri Lankan Government was criticised by Sri Lanka Podujana Peramuna (SLPP) dissident Parliamentarian and Freedom People’s Council (FPC) member Prof. Charitha Herath.

Herath claimed last week that Sri Lanka would soon become the “Ukraine of South Asia” due to wrong foreign policies and diplomatic management. He told the media on Tuesday (29) that the Government and the President were trying to make Sri Lanka a colony of India.

SJBer to NY with RW

President Wickremesinghe, meanwhile, is preparing to attend the United Nations General Assembly (UNGA) this month, while Opposition and Samagi Jana Balawegaya (SJB) Leader Sajith Premadasa has expressed concerns over traditional practices in the President’s UNGA visit and is attempting to change it. 

It is the norm for a head of state, when attending the UNGA, to take Members of Parliament (MPs) from both government and opposition benches along with the delegation. However, on this occasion, the Opposition Leader has reportedly urged his members not to accompany the President on the visit, claiming it would lend legitimacy to the President.

SJB Parliamentarian from Monaragala W.H.M. Dharmasena, who is due to accompany the President, has raised this concern with members of the President’s staff. It is learnt that he had been informed that as a first-time MP and a backbencher, this would be a golden opportunity for him to be given some recognition on a national level. SJB MP Vadivel Suresh is also due to accompany the President to New York. 

Ministers under fire

Meanwhile, the clash between Cabinet and State ministers continues, with disgruntled MPs from the ruling SLPP also joining the drama.

The first salvo against Cabinet ministers was fired by State Minister Premalal Jayasekara, who claimed recently that his Cabinet Minister and senior ministry officials were preventing him from carrying out his duties.

Jayasekara last week claimed that several State ministers including himself have been hindered from fulfilling their duties and responsibilities due to the actions of the respective Cabinet ministers and said that the affected State ministers would soon inform President Wickremesinghe of the matter.

He had noted that even though it had been several months since he had assumed office as the State Minister of Ports and Aviation, he had not had the opportunity to perform any significant work or responsibilities.

“I previously held many ministerial positions, including the post of the Deputy Minister of Power and Energy. The people repeatedly elected me to the Parliament because I served the country and the people on all those occasions. Therefore, there is no use in enjoying the privileges of a State minister without being able to work. We should have the opportunity to do something for the people, but I haven’t had such an opportunity so far,” he charged.

According to Jayasekara, in addition to him, several other State ministers have been unable to fulfil their duties and responsibilities due to the actions of the relevant Cabinet ministers. “It is not only for me, as several other State ministers also face this problem. We learned that the President will meet the State ministers next week. We hope to inform him and request his intervention to reach a solution,” he added.

It is also learnt that five Cabinet ministers had come under strong criticism by a group of SLPP MPs during a recent meeting of the Government parliamentary group. This group, which is said to include 11 State ministers and backbenchers, had warned Prime Minister Dinesh Gunawardena that they would vote against the votes of three of these ministries during the upcoming Budget.

Among the group that has raised objections against Government ministers are Madhura Withanage, Janaka Thissakuttiarachchi, Jayantha Ketagoda, Upul Mahendra Rajapaksha, Samanpriya Herath, Sumith Udukumbura, Kumarasiri Rathnayake, Jagath Samarawickrama, Piyal Nishantha, Milan Jayathilake, and Geetha Kumarasinghe.

This group has urged the Prime Minister to raise their concerns with the President as soon as possible or face the consequences.

MPs plan boycott

It is in such a backdrop that the Government will be facing the debate and vote on the no-confidence motion against Health Minister Keheliya Rambukwella that is scheduled to be taken up in Parliament this week.

A group of disgruntled SLPPers are considering boycotting the no-confidence motion against Rambukwella.

After learning about the possibility of a group of SLPPers boycotting the vote on the motion in Parliament this week, President Wickremesinghe has directed the Chief Government Whip to issue a missive to all Government side MPs to refrain from leaving the country this week when the motion is taken up for debate. The motion will be debated from Wednesday (6) till Friday (8).

SLPP General Secretary Sagara Kariyawasam, when asked whether the SLPP would vote to defeat the no-confidence motion against Rambukwella since he was an MP of the SLPP, said that the party would definitely stand by Rambukwella.

However, when asked whether some SLPPers would not support the Government to defeat the motion, Kariyawasam observed that there were some SLPP MPs who had declared their independence and that there was no knowledge about how they would cast their votes.

No letter from SLPP

Meanwhile, the SLPP last week faced several questions from the media following a statement by the Election Commission, where the commission had denied receiving a letter from the SLPP calling for the holding of Local Government Polls without any further delay.

A commission official was quoted in the media on conditions of anonymity that the commission had not received any such letter. The commission however had maintained that the Local Government Elections had been delayed solely due to the delay in the Treasury releasing funds and not due to any decision of the commission.

However, Kariyawasam last week disputed the commission’s claim, stating that he had sent the said letter on 22 August. He had noted that the letter had sought the Election Commission’s intervention in addressing the issues and difficulties faced by the candidates for the Local Government Elections due to the indefinite postponement of the polls.

After dismissing the claim by the Election Commission that the SLPP had not sent a letter, Kariyawasam had released a copy of the letter to several news websites that had published the commission’s comment on the said letter.

Lanza challenges Sagara

Amidst the many issues currently occupying the ruling SLPP, ranging from more internal splits and pushing for Local Government Polls, while on the other hand being the main coalition partner of the Wickremesinghe Government, SLPP General Secretary Kariyawasam has been challenged to an open debate by dissident SLPP MP Nimal Lanza.

Lanza had challenged Kariyawasam to an open debate on any television channel to respond about the history of the SLPP, claiming that the latter had made several incorrect remarks about the party’s history.

Lanza and Kariyawasam have engaged in verbal clashes following Lanza’s move to push for the formation of a new political alliance led by a group of dissident SLPP MPs.

According to Lanza, Kariyawasam has been making various statements personally targeting him as well as the new political alliance. “I’m ready to publicly respond to all those allegations levelled against me,” Lanza had said, adding that certain individuals who had not been there when the ‘Pohottuwa’ (SLPP) had been formed were now behaving as if they owned the party.

Bandara’s temporary monkhood

Meanwhile, former President Gotabaya Rajapaksa’s (GR) Private Secretary Sugeeshwara Bandara, who is also said to be a member of the new political alliance mooted by Lanza and other dissident SLPPers, had reportedly entered temporary monkhood in Thailand.

According to reports, the event had coincided with a series of activities at Wat Huay Mongkol temple in Hua Hin to mark 270 years since Sri Lanka had received higher ordination from Thailand. Bandara was one of the many who had entered temporary monkhood (lay monkhood) for a limited period as part of ongoing religious observances there.

Soon after news of Bandara’s role in the new alliance was made public in the media and GR received several messages from his family members of the threat posed to the SLPP by Bandara’s action, Bandara issued a statement denying any involvement in a political alliance.

Candidate issues

However, one of the main topics that seem to be dominating discussions among Opposition parties is preparation for the Presidential Election next year and the possible candidates.

While a majority of the Opposition party members believe that the Opposition should field a common candidate at the next election since securing a majority by a single candidate in the event of multiple candidacies seems highly unlikely, several Opposition parties have already declared the presidential candidates of their respective parties.

The SJB was the first party to announce that Party Leader Premadasa would be its candidate at the Presidential Election and the SJB has also noted that Premadasa should also be the common Opposition candidate in the event a joint Opposition alliance is formed.

However, it is in such a backdrop that Janatha Vimukthi Peramuna (JVP)-led NPP Leader Anura Kumara Dissanayake has said that he has been chosen as the candidate of the NPP for the upcoming Presidential Election.

Speaking at a political programme on television, Dissanayake had said that the decision had been made after a lengthy discussion within the NPP’s Executive Council. He had said that a proposal for his candidacy had been presented during the council meeting and officially approved on Monday (28 August) evening, he had said.

Dissanayake had been chosen as the NPP’s presidential candidate amidst rumours that NPP MP Dr. Harini Amarasuriya was likely to be named the party’s candidate at the polls.

Be that as it may, the naming of Opposition candidates by the SJB and NPP seem to have posed a stumbling block in the formation of an Opposition alliance. SJB MP S.M. Marikkar had told the media last week that his party was willing to join an Opposition alliance, but Premadasa had to be the common candidate since he was seen as an alternate leader.

The NPP meanwhile has stated that the SJB can be part of an Opposition alliance, but the party has already decided on its presidential candidate.

Meanwhile, Freedom People’s Council Co-Leader Dullas Alahapperuma had noted that the focus of his group was to form a common Opposition alliance to protect democracy and the decision of the SJB and NPP to name presidential candidates was irrelevant at the moment.

“Our effort to form a common Opposition force is done with the theme ‘stand for democracy’. Therefore, we believe that all Opposition parties should come together to ensure that democracy is restored. We don’t talk of elections as there is no point if elections are postponed. Talking of presidential candidates at this time is irrelevant in this context,” he had said.

“We will be talking to the Uttara Lanka Sabhagaya, the Tamil National Alliance (TNA), Sri Lanka Muslim Congress (SLMC), All Ceylon Makkal Katchi, and Tamil Progressive Alliance (TPA) in the coming days,” Alahapperuma had added.

SLFP clash

The SLFP meanwhile prepared to hold its annual convention at the Monarch Imperial Hotel in Thalawathugoda this weekend amidst internal conflicts.

SLFP Leader, former President Maithripala Sirisena played a key role as an intermediary in getting the two conflicting factions together – one led by SLFP General Secretary Dayasiri Jayasekara and the other led by the SLFP MPs who had joined the Government.

Friction between the two factions started when Sirisena decided to cancel the suspension of the SLFP dissident MPs who had joined the Wickremesinghe Government and to reinstate them in their former positions in the party. The group led by Jayasekara maintained that the SLFP should stand by its policies and not be pushed towards an extension of the Government.

The clash intensified when Jayasekara’s move to hold the party convention in Kurunegala was changed and a decision was reached by party seniors to hold the convention in Colombo. Jayasekara expressed his displeasure at this decision, claiming he was unaware till the last minute that the venue of the party convention had been changed.

The party leadership had to then meet with Jayasekara and several other seniors who had opposed the recent decisions taken by the Government.

It was interesting to see Sirisena, flanked by National Organiser Duminda Dissanayake and Jayasekara, inspecting the hall at the hotel where the convention is to be held. 

However, Sirisena was yesterday (2) seen seated between SLFP MPs, Ministers Nimal Siripala de Silva and Mahinda Amaraweera at a press conference at the Party Headquarters.

Sirisena yesterday claimed that there was no conflict in the SLFP and that all members of the party were together. “These are all stories fabricated by the media. Why should anyone get angry when in politics? There are no permanent enemies or friends in politics,” Sirisena claimed.

However, Jayasekara had told the media last week that there seemed to be a conspiracy within the party to remove him from his post in the party and that there were many decisions being made in contravention to the party policies.

However, when questioned if there would be any changes to party positions at the annual convention, Sirisena and de Silva both denied that there would be any such changes since changes to party positions could only be made at an Executive Committee meeting.

Sirisena further noted that while former President Chandrika Bandaranaike Kumaratunga had been invited to the convention, former President Mahinda Rajapaksa had not been extended an invitation.

Maithri’s aspiration

Meanwhile, Sirisena last week said that his party was prepared at any time to take over governance of the country, adding that he was also prepared to lead the country once again if given the chance.

While walking out of the Monarch Imperial Hotel on Friday (1), Sirisena was seen smiling and saying that there could once again be a “Maithri era”. The SLFP Leader also took a swipe at the ruling SLPP, saying that the flower bud was no longer blooming and that the SLPP was no match for the SLFP.

Sirisena had also expressed his willingness to contest another Presidential Election during a political discussion on television last week.  “I have no difficulty in taking on the role once more,” Sirisena had said. “I am equipped with the experience gained during my previous presidency and I am ready to take on the role of president again.”

Sirisena also mentioned that he considered his period of governance to be successful, mentioning the positive reception he had received internationally.

Protocol deviation

Meanwhile, eyebrows were raised among Government higher-ups last week when United Nations Resident Coordinator Marc-André Franche held an official meeting with JVP Leader Anura Kumara Dissanayake.

Accordingly, with the JVP Leader not holding any official position within the political structure in the country, it appears that this meeting by the Resident Coordinator was a deviation from the accepted practice.

Highly-placed sources have indicated that this was not the first time the newly-installed Resident Coordinator had overstepped his mark. During interactions with several senior Government members, he has been noted as stating that he is prepared to liaise between the Government and the diplomatic corps. This is usually the role of the ‘Dean of the Diplomatic Corps’ – a position held by the senior-most foreign diplomat in the country. This has certainly ruffled feathers among the diplomats, who do not view the Resident Coordinator as being on par with their official standing. 

In fact, it was further learnt that the UN Resident Coordinator’s Office had been attempting to have his credentials presented to the President and not the Minister of Foreign Affairs, which is yet another deviation from protocol. This was previously started during President Maithripala Sirisena’s time, but has since been halted.

Hosting a senator

President Wickremesinghe hosted US Senator Chris Van Hollen at the Sri Dalada Maligawa Perahera last week. The Senator, who was visiting the country, accompanied the President for the event. 

During discussions prior to the event, the Senator had indicated that members of the US political system were in support of the President’s initiatives in tackling the economic crisis. He further added that America would continue to support Sri Lanka’s recovery efforts.

The Senator is the son of Christopher Van Hollen Sr. who served as US Ambassador to Sri Lanka from 1972-’76. It was during this period that his son, the Senator, lived and schooled in Sri Lanka. In fact, during his visit to the country, the Senator visited his old school, Overseas School in Colombo. 

The Senator, who is a powerhouse within the Democratic Party, will certainly play a substantial role in the US Government’s attitude towards the country. However, as a vocal proponent of human rights, Van Hollen has not been silent previously on the Sri Lankan Government’s conduct during the war.

Issuing a statement last week, his office stated that “in visiting Sri Lanka, the Senator will focus on ways the United States can further assist efforts to overcome its economic crisis, strengthen our partnership on maritime security and climate change issues, and discuss the way forward on human rights and reconciliation to ensure that all the people of Sri Lanka can participate fully and fairly in the democratic process. He will also join the people of Sri Lanka in celebrating 75 years of friendship between our two nations.

“The goal of the trip is to strengthen the bonds between the United States and each of these countries, including through enhanced security cooperation, deepening economic ties, combating climate change, and advancing democracy and human rights.”