• Governor Nandalal warns of polls’ impact on economic recovery; bondholders concerned over changes
• RW blames Sajith for economic issues; Sajith angered, shouts after RW for walking out of Chamber 
• SC verdict on Diana’s citizenship opens a Pandora’s box; Diana blames Sajith, Ranjith for SC verdict
• Diana and Senaka to act on SJB’s legitimacy in line with SC verdict; no issues, say Mahinda, Ranjith
• VFS controversy causes clash in Cabinet with Harin threatening to quit; SLPP group also concerned
• RW decides to announce his candidacy at polls around 18 June; polls campaign also to start in June
• Milinda joins RW at meeting with Basil; RW firm again on Prez Polls, agrees to meet Basil weekly
• Basil and co. reiterate need for General Elections first; RW not agreeable with his push, says Basil
• SLPP opens new elections op centre; Basil says SLPP must decide soon on Prez Polls, already late
• AKD issues ultimatum to Sajith over debate; Lalkantha creates controversy, leaving NPPers to respond
• Dhammika gets RW and MR for his event; says he has not received invitation from SLPP to contest
• Pro-Maithri group shuns pro-CBK/de Silva group; Maithri goes to court, asks for his party leadership
• Govt. under fire by polls monitors in letter to EC; note development projects during polls period
• Complaint lodged with EC against Sagala; EC writes to President’s Secy. outlining concerns, actions

If the Ranil Wickremesinghe Government thought that the country was coming out of its economic danger zone and had built confidence in the minds of creditors and investors alike, it needs to think twice. The upcoming election period – Presidential and Parliamentary Elections – has now brought caution back to the minds of creditors and investors.

These sentiments were stated by none other than Central Bank of Sri Lanka (CBSL) Governor Dr. Nandalal Weerasinghe, who pointed out that the country’s tentative recovery from its worst economic crisis could be stalled by the Presidential Election due later this year.

Weerasinghe had told AFP on Tuesday (7) that the crisis-hit economy had stabilised thanks to tough reforms prompted by an International Monetary Fund (IMF) rescue package, but that the country was not completely out of the woods.

“Domestically, what I see as the challenge is to continue the same policies going forward, irrespective of the administration,” Weerasinghe was quoted as saying by AFP. “That is an important one.”

It is in such a backdrop that Sri Lanka is engaged in efforts to finalise the country’s debt restructuring programme with bilateral and private creditors.

Foreign Minister Ali Sabry stated that the Government expected the conclusion of the debt restructuring process in time for the next tranche of the IMF programme.

Sabry said on Wednesday (8) that upon the successful completion of the debt restructuring programme, Sri Lanka stood to gain a significant advantage of $ 17 billion throughout the entire restructuring process.

He also announced the Government’s expectation of finalising the foreign debt restructuring process by June.

Sabry further observed that negotiations with private creditors linked to sovereign bonds were expected to be completed by June, with a targeted finalisation before June.

However, it is learnt that private creditors have expressed concern over the sustainability of a restructuring programme given the possibility of changes being made in the event of a change in the current administration following the upcoming elections.

Meanwhile, the Financial Times reported that the inclusion of Gross Domestic Product (GDP)-tied payouts into bonds that are being considered in Sri Lanka’s debt restructuring is a big step forward in trying to develop debt structures that will lure international investors back to riskier emerging market nations desperately in need of financing.

Accordingly, the Financial Times stated that Sri Lanka and its bondholders had agreed in principle to replace its $ 13 billion debt in default, with so-called Macro-Linked Bonds (MLBs) that would track the country’s recovery. 

An independent observer of the discussions between Sri Lanka and the bondholders had told the Financial Times that the Sri Lankan proposal “sets a precedent to embed the contingency” into a bond that could be simple enough to be included in indices. “For this new wave of instruments to be good for everybody, you need to have one decision point and certainty afterwards” about levels of payments.

RW’s swipe at Sajith

Amidst the Government’s economic tightrope walk, President Wickremesinghe last week made a special statement in Parliament.

After presenting an overview of the country’s economy and the ongoing work on resolving the economic crisis, the President called for a unified approach to bring the country fully out of the crisis.

However, following Wickremesinghe’s parliamentary statement, there was a verbal clash between him and Opposition and Samagi Jana Balawegaya (SJB) Leader Sajith Premadasa.

Wickremesinghe claimed that it was the Opposition Leader’s fault for not taking on the responsibility of salvaging the country when it had been offered to him. “I think we better have a debate in Parliament over these matters. There are various opinions. If he had taken up the premiership on 10 April (2022), none of these issues would have cropped up. I performed to my capacity,” the President said.

Wickremesinghe also said that in 2022, he had willingly embraced the task of revitalising both the nation and its economy. “At that crucial moment, no one else volunteered to shoulder the responsibility of saving the country. Instead, they put forth different conditions. I unconditionally embraced the task of leading the country, despite my party holding only one seat in Parliament. I took on this mission amidst challenging circumstances,” he said.

Sajith slams RW

In response to the statement made by Wickremesinghe, Premadasa claimed that the President was misleading the public.

When the President walked away from the Chamber as Premadasa was making the statement, the Opposition Leader shouted out at President Wickremesinghe to stay and listen to his statement as he had done when the President was delivering his statement. 

“Are you afraid? Can you not answer the questions? Why isn’t he answering? I listened to the President’s statement. Why is he not answering our questions?” Premadasa directed the question to the Speaker.

Afterwards the Opposition Leader claimed that Sri Lanka needed a leader who would not walk away but was able to listen to criticism.

Diana’s Pandora’s box

The Supreme Court’s landmark judgment last week that former State Minister of Tourism Diana Gamage was not eligible to hold a seat in the Sri Lankan Parliament has caused a ripple effect in the country’s political landscape.

Opposition and SJB Leader Premadasa was in the Parliament lobby when he had received a telephone call informing him about the unanimous verdict of the three-member Supreme Court bench of judges against Gamage.

After the verdict, Gamage told the media that she could not accept the Supreme Court ruling which determined that she cannot hold a seat in the Parliament of Sri Lanka. “I am a person who respects the Judiciary. However, I cannot accept this ruling due to several reasons. There was a big political conspiracy behind this,” she said.

Gamage accused a section of the SJB, including Premadasa, of engaging in vindictive politics and being behind the Supreme Court case. However, she claimed that she would not quit politics.

Amidst the Supreme Court verdict, an overseas travel ban was imposed on her by the Colombo Chief Magistrate’s Court.

SJB’s legitimacy issue

During Gamage’s news conference, she also questioned the SJB’s legitimacy. “A court verdict has been given that says I’m not a citizen of this country. If you go by that argument, how legitimate is a party that was headed by a foreign national? It was I who handed over the Ape Jathika Peramuna to the SJB. If this verdict is followed, there is an issue of the SJB’s legitimacy as well,” the former Parliamentarian said.

Meanwhile, Ape Jathika Peramuna Leader Senaka de Silva noted that members of the SJB were also members of the United National Party (UNP) and that no individual could be a member of two political parties at the same time.

However, ‘Black Box’ learns that a majority of the members of the SJB have not renewed their UNP memberships since the constitutions of both the UNP and SJB note that party membership should be renewed annually.

De Silva further stated: “Neither I nor Diana sold the party. We gave the party for the sake of the country. I gave the party to Sajith and made him the Party Leader. Diana was the General Secretary of the party and she moved out, making way for Ranjith Madduma Bandara.” He also showed a document with the seal of the Election Commission (EC) where he [de Silva] and Gamage had signed the transfer of the party to Premadasa and Madduma Bandara.

De Silva threatened that further action would be taken by him and Gamage and that it could also lead to Premadasa’s leadership and Madduma Bandara’s General Secretary post being questioned.

Mahinda’s clarification

However, former Chairman of the EC Mahinda Deshapriya cleared the issue over the legitimacy of SJB legislators.

Deshapriya told the media that the SJB MPs would not lose their seats because Gamage had lost her parliamentary seat. “There has been no reason for the EC to check the citizenship status of office bearers of political parties. There has been no legal stipulation on the matter as well. I don’t think that Gamage’s position as General Secretary of the party would have a legal impact on the SJB.”

Meanwhile, Madduma Bandara claimed that the Ape Jathika Peramuna had originally been owned by the late Mangala Samaraweera and his confidante Ruwan Ferdinandez had been its General Secretary.

VFS explosion

Be that as it may, one of the key controversies to fall before the Wickremesinghe Government last week was the VFS Global saga over the issuance of Sri Lankan visas.

The issue over VFS visa issuance and the increase in visa prices was first taken up by Opposition Leader Premadasa followed by SJB MP and Committee on Public Finance (COPF) Chairman Dr. Harsha de Silva, and MPs S.M. Marikkar and Prof. G.L. Peiris.

The key point raised by the Opposition was the impact that increasing visa fees would have on the country’s steadily growing tourism industry and the possible financial fraud that could take place, amounting to billions of rupees.

However, the VFS saga that exploded with the viral video of an individual shouting at the outsourcing of visa processing to an outside company at the airport took a new twist with Tourism Minister Harin Fernando claiming that he was not aware of VFS operations. He palmed off the blame to Public Security Minister Tiran Alles, who was overseas at the time.

RW displeased

Fernando’s statement at the news conference had not gone down well with President Wickremesinghe, who saw that the issue was going to have an adverse impact on the Government.

The President had questioned Fernando as to why he had spoken against the VFS operations, saying he was not aware of it. The latter had responded saying that he was actually not aware of all the details of the agreement.

Wickremesinghe had then been informed by Alles from overseas that he would hold a news conference upon his return to the country. 

Tiran’s response

Alles, who had presented to the Cabinet of Ministers the proposal to hand over visa issuance to VFS Global, convened a media conference on Monday (6), soon after returning to the country. 

He told the media that there was no irregularity in the process as alleged, since it had received the necessary approvals and that it was only a technical issue.

Cabinet clash

However, the VFS saga turned out to be quite a headache for President Wickremesinghe given the hardline stance adopted by Tourism Minister Fernando that put him [Fernando] on a direct collision course with Minister Alles.

Fernando, it is learnt, had walked into the Cabinet meeting all ready to oppose VFS operations with his resignation letter also at hand. The Tourism Minister had pointed out that he was at the receiving end of many allegations over the VFS deal, although he had no clue about it.

He had also noted the impact on the tourism industry. Ministers Sabry and Ramesh Pathirana had also pointed out the issues concerning the VFS operations and the negative impact among the general public.

President Wickremesinghe had then said that action needed to be taken if there was so much opposition. He had explained that the $ 50 visa fee had been increased to $ 75 due to the $ 25 handling fee charged by VFS.

The President had noted that while the list of countries to receive visa-free entry to the country should be streamlined, the visas should be issued at the previous amount of $ 50 per visa.

SLPP group concerned

After the Cabinet meeting, the President attended the parliamentary group meeting of the ruling Sri Lanka Podujana Peramuna (SLPP).

Wickremesinghe had entered the meeting room with Ministers Fernando and Alles. 

The VFS saga had taken prominence at the meeting, with MPs Sarath Weerasekera and Madhura Vithanage questioning the issue. The loudest objections had been raised by State Minister Chamara Sampath Dasanayake. He had claimed that Government members were unable to go out in public with only a few months more for elections.

However, the President had intervened and explained the decisions reached at the Cabinet meeting to resolve the issues.

RW gives date

President Wickremesinghe is meanwhile continuing with his plans for the Presidential Polls and has decided when he will announce his decision to contest at the upcoming election.  

It is learnt that he is expected to announce his decision around 18 June. This fact was also revealed by SLPP theoretician Basil Rajapaksa during a recent party event.

Wickremesinghe’s Presidential Election campaign is also expected to commence in June, with the Political Committee for the polls also holding a meeting last week to make a decision on the campaign timeline.

The committee comprises Ministers Prasanna Ranatunga, Kanchana Wijesekera, Fernando, Manusha Nanayakkara, and Alles, and MPs Nimal Lanza, Anura Yapa, and Duminda Dissanayake.

The need to launch the campaign without delay was also discussed during Wickremesinghe’s meeting with Basil on 4 May.

The EC meanwhile said last week that by virtue of the powers vested in the commission to determine the date for the said election, it would hold the Presidential Election between 17 September and 16 October this year.

Milinda joins meeting

President Wickremesinghe and Basil had a round of talks at the former’s official residence at Paget Road, Colombo on 4 May, soon after the President’s meeting with Japanese Foreign Minister Yoko Kamikawa.

It was interesting to see the participation of one-time Wickremesinghe confidante, former Minister Milinda Moragoda at the 4 May meeting. Moragoda has at various times represented Wickremesinghe as well as the Rajapaksa camp. He also supported former President Gotabaya Rajapaksa and was in turn appointed as Sri Lanka’s High Commissioner to India.

Although Wickremesinghe had earlier invited several Government ministers to take part in his discussions with Basil, Moragoda’s presence at one such meeting was quite surprising.

The meeting that day had focused once again on the SLPP’s ‘wait-and-see’ stance regarding the Presidential Election and the need to consider holding Parliamentary Elections without delay.

Weekly meetings

It is learnt that both President Wickremesinghe and Basil have also agreed at this meeting to meet on a weekly basis to discuss the political developments. Accordingly, the sixth meeting between Wickremesinghe and Basil took place on Thursday (9).

The meetings are focused on also discussing the SLPP’s rebuilding efforts and the need for party members to be involved in the various programmes and projects launched by the Government.

It is also learnt that Basil had once again pushed for the holding of Parliamentary Elections prior to Presidential Elections since it would help Wickremesinghe and the SLPP build themselves. However, President Wickremesinghe had yet again noted that Presidential Elections would be held first and that his candidacy announcement would be made in June.

Basil’s strategy

Basil believes that holding a Parliamentary Election prior to the Presidential Election will be the best option for the SLPP’s rebuilding plan.

A group of senior SLPPers had recently discussed with Basil the need to prevent a further erosion of the party’s membership, including stopping party organisers from joining SLPP dissident groups and other political parties.

Basil had pointed out that the party reorganisation work could be carried out with the appointment of second-tier party organisers as the new group of electoral organisers after removing many SLPP organisers who were currently affiliated with other political parties and groups.

Meeting organisers

Accordingly, Basil on Tuesday (7) summoned all party MPs and organisers to the party’s Nelum Mawatha office for a meeting. The meeting scheduled at 11 a.m. was to discuss the party’s future political actions.

It is learnt that Basil had informed the SLPPers that although holding the Parliamentary Elections prior to the Presidential Election would be beneficial to the party, President Wickremesinghe did not share the same view.

He had noted that while the party’s MPs should also push for a Parliamentary Election first, a considerable number of SLPPers, especially MPs holding ministerial positions in the Government, were supportive of holding the Presidential Election first.

However, Basil had called on the MPs and organisers to be prepared to face any election as an election would be held this year.

Too late, says Basil

The SLPP last week opened its state-of-the-art elections operations centre in Battaramulla, stating that the party was prepared to meet any election. However, he noted that the SLPP had to make a decision on the party’s stance at the Presidential Polls as it was already too late in deciding.

It was interesting to see businessman-turned-politician Dhammika Perera also attending the event. Perera, who is also among the SLPP’s frontrunners to become the candidate at the Presidential Election, maintained that he had not yet received an invitation from the party to contest at the Presidential Polls. It is uncertain whether Perera is aware of the fact that if the SLPP decides on him as its presidential candidate, it will be the party’s last option in the event negotiations with Wickremesinghe fail.

Nevertheless, Perera last week got President Wickremesinghe and SLPP Leader, former President Mahinda Rajapaksa (MR) to attend an event of his DP Education in Colombo, where he was seen in close conversations with both Wickremesinghe and MR.

MR’s hint

Meanwhile, SLPP Leader MR once again echoed sentiments similar to that of the party’s National Organiser Namal Rajapaksa.

It is evident that Namal is not agreeable to supporting President Wickremesinghe at the upcoming Presidential Election. While MR had made a statement recently stating that the SLPP would field its own candidate at the Presidential Polls, he was seen making another statement last Tuesday that hinted of the SLPP’s hesitation to back Wickremesinghe.

When asked by the media whether the SLPP was looking at a future path with Wickremesinghe, MR responded saying: “No, there’s no need to do that. We have to think and make a decision independently.”

MR also noted that the SLPP would announce its candidate once the Presidential Polls were announced.

SLFP’s clear leadership

The Sri Lanka Freedom Party (SLFP) meanwhile continues its journey down a slippery political slope.

The faction supportive of Acting Leader, Minister Nimal Siripala de Silva gained what seemed like a victory against the group supportive of deposed Party Leader Maithripala Sirisena last week when the Court of Appeal dismissed a petition filed by the pro-Sirisena group-appointed SLFP Acting Leader, Minister Dr. Wijeyadasa Rajapakshe, seeking to suspend the interim injunction issued by the Colombo District Court preventing him from functioning as the party’s Acting Leader.

The SLFP’s legal battles started with the interim injunction issued by the Colombo District Court preventing Sirisena from functioning as the Party Leader. 

The SLFP has now split into two factions led by Sirisena and de Silva (supported by former Leader of the SLFP and former President Chandrika Bandaranaike Kumaratunga [CBK]). The two factions have made separate appointments to the SLFP’s key positions such as that of acting leader and acting general secretary, some of which have been challenged before courts.

Minister Rajapakshe was appointed as the Acting Leader during an Executive Committee meeting convened by the party’s then Acting General Secretary Dushmantha Mithrapala held on 21 April.

On 24 April, the Colombo District Court issued an injunction order preventing Rajapakshe from functioning as the SLFP’s Acting Leader as well as an order preventing Mithrapala from functioning as its Acting General Secretary. The court had also earlier issued an injunction preventing Sirisena from performing the role of SLFP Leader.

Maithri group shuns CBK

The pro-Sirisena group in the SLFP meanwhile has stated that it was not ready for a negotiation-based approach with the faction led by the pro-de Silva group that is backed by CBK.

Speaking at a recent media briefing, CBK expressed willingness to engage in discussions with those whom she claimed were non-corrupt members of the Sirisena-led group, aiming to collaborate on revamping the SLFP. She said that such members were welcome to join the group led by her and support rebuilding the SLFP, which was currently in a state of crisis.

SLFP Senior Vice President Prof. Rohana Luxman Piyadasa, who represents the Sirisena-led group, however said that they would not move to have any such discussion. “They are talking about non-corrupt members but how many corrupt politicians including ministers and state ministers are there in their group? Launching an investigation into the properties that they owned before and after entering Parliament could help the public gauge their level of corruption.”

Duminda slams Maithripala

Meanwhile, SLFP Acting General Secretary Duminda Dissanayake last week slammed deposed Party Leader Sirisena for splitting the party.

Speaking to the media after the Court of Appeal dismissed Rajapakshe’s petition, Dissanayake claimed that Acting Party Leader de Silva and his loyalists had refrained from organising any event to mark May Day since the pro-Sirisena faction had organised a meeting amidst the ongoing crisis and that holding two May Day events by the SLFP would have split the party.

Maithri goes to court

Deposed SLFP Leader Sirisena last week filed a motion before the Court of Appeal over the enjoining order issued against him by the Colombo District Court.

The petition was filed on Friday (10) seeking an order from the Court of Appeal to hold the enjoining order issued by the Colombo District Court that prevented him from serving as the Leader of the SLFP.

The interim order that was issued preventing Sirisena from functioning as the SLFP Leader has been extended until 29 May.

AKD’s final call

Meanwhile, the much-discussed debate between the Leaders of the main Opposition SJB and the Janatha Vimukthi Peramuna (JVP)-led National People’s Power (NPP) took a new twist with JVP/NPP Leader Anura Kumara Dissanayake (AKD) issuing an ultimatum to Opposition and SJB Leader Premadasa.

AKD stated that there would be no debate if Premadasa did not agree to have the debate prior to the 20th of this month. AKD claimed that the JVP/NPP had allocated 7, 9, 13, or 14 May for Premadasa to choose a date for the debate but that there had been no proper response from the SJB leadership. “This is the last chance being given to the Opposition Leader.”

Meanwhile, the SJB stated that its position was to hold a debate between the two Economic Committees of the SJB and the JVP/NPP, which should be held before the debate between the two Party Leaders.

JVP under fire

However, a statement made by JVP/NPP member K.D. Lalkantha at the party’s May Day rally has caused much trouble for the JVP/NPP, which is trying to chart a new political course. Lalkantha had claimed that a future NPP government would decentralise judicial powers to its cadres at the village level.

Meanwhile, NPP MP Harini Amarasuriya was questioned whether this was the opinion of their organisation. In Parliament, State Minister of Finance Shehan Semasinghe, stating that Lalkantha had pledged to decentralise judicial power to his party cadres at the village level, criticised the NPP over its attempts to sabotage the country’s Judiciary.

SJB MP Harshana Rajakaruna meanwhile played an audio clip of the speech in the House and raised the same issue. Responding to the allegations made by Semasinghe and Rajakaruna, Amarasuriya said that Lalkantha had never mentioned that judicial powers would be devolved to NPP cadres at the village level. “Lalkantha only ensured access to justice for all people,” she said.

Letter to EC

Meanwhile, the conduct of the Wickremesinghe Government in the run-up to elections was taken to task by election monitors, who expressed concerns over the various programmes being launched by the Government, claiming they could have an impact on the upcoming elections.

The People’s Action for Free and Fair Elections (PAFFREL) has urged the EC to address the alleged Government-run political promotion programmes disguised as development projects, occurring while the Local Government (LG) Elections have been called and the Presidential Election is expected to be announced soon.

In a letter addressed to EC Chairperson R.M.A.L. Rathnayake, PAFFREL Executive Director Rohana Hettiarachchi pointed out that even though the LG Elections had been postponed indefinitely, they had not been cancelled, meaning that pre-election laws were still in effect.

He also highlighted that political parties and candidates could gain unfair advantage from the planned implementation of development projects by political authorities, especially in the context of the upcoming Presidential Election, which, according to the Constitution, could be announced in August this year.

Hettiarachchi highlighted a circular bearing number MF/02/2023 allegedly issued by the Ministry of Finance instructing District Secretaries to finalise all development projects slated for completion in 2024 under the Decentralised Budget Programme 2024 by 31 July. He claimed that the circular suggested that projects initially planned to be completed over a year were now to be completed within seven months, which would allow the ruling party to claim credit for the projects ahead of the expected Presidential Election announcement in August.

He also notified the commission about another circular bearing number PS/FID/ID/Circular/1/2024 issued by the Presidential Secretariat under the theme of ‘Kandukara Dashakaya’ – Integrated Rural Development Programme 2024-2033.

Complaint against Sagala

Meanwhile, a complaint was also lodged before the EC against President’s Chief of Staff Sagala Ratnayaka.

The complaint lodged by journalist Lasantha Ruhunage has stated that Ratnayaka has violated election laws. It has been pointed out that the post held by Ratnayaka is a State position and therefore he cannot engage in politics.

The complainant has also questioned whether an individual holding a position in a political party could be appointed to a State position as Ratnayaka had been introduced during a public rally on 10 March in Kuliyapitiya as the National Organiser of the UNP.

The complaint has also stated that the UNP was engaged in promising goods for people during an election period (the LG Elections have been called and the UNP has also submitted nominations for the polls).

EC responds

The EC, which met on Tuesday (7), observed the points raised in the letter sent by PAFFREL and wrote to Secretary to the President Saman Ekanayake, asking him not to involve any politician in the implementation of such development projects.

The commission had noted that the LG Elections had been declared at the moment though the polls had been put on hold indefinitely. As a result, the EC has urged the Government not to have participation of candidates in any of the proposed development projects that are being implemented and has called on the Government not to have political participation in development programmes since the Presidential Election is pending.

However, the EC had maintained that it did not have the right to stall development projects.

Letter on LG Polls

The EC has also informed President’s Secretary Ekanayake and the other relevant authorities that it is better to hold the LG Elections rather than establishing community advisory committees to oversee development projects under LG bodies.

The Government recently announced plans to establish these committees, with the supposed intent of having them oversee development projects within LG bodies. Former LG representatives are also slated to be considered for inclusion as members of these committees.

EC Chairperson Rathnayake mentioned that the commission had examined the issue and sent a letter to the President’s Secretary outlining important considerations for setting up the committees in question. “We recommended that candidates who have submitted nominations for the LG Elections should not be included in these committees, given that the electoral laws are still in effect.”