• RW holds post-Budget lunch instead of tea party; no show by Sajith, few more
• Govt. Parliament group meets post-Budget; sings and cuts b’day cake for Shehan
• Namal slams RW’s budget, MR says some good and will support the good ones
• Basil convenes SLPP meet, says Budget aimed at polls and gears for convention
• Pressure on RW to act against Rajapaksas; Sajith wants RW to cancel civic rights
• IMF’s second EFF tranche on hold over three conditions and debt treatment plan
• Paris Club consortium debt framework by end of this month, waiting on Indian ok
• Govt. once again in talks with China over Xiang Yang Hong 3 vessel’s visit in Jan.
• Roshan walks into Prez Secretariat for Cabinet after saying won’t drink water there
• Sabry committee to respond to ICC today; SLC’s Shammi to attend ICC Board meet

President Ranil Wickremesinghe’s choice of date to present his second budget as Finance Minister seems quite interesting, since the number 13 is considered to be numerologically unlucky. Therefore, only time will tell if Wickremesinghe’s Budget for 2024 presented on Monday (13) will be unlucky for the Wickremesinghe Government or the country and its people. However, going by the presented Budget for 2024, the masses seem to be in for another round of ‘belt tightening,’ with middle-class Sri Lankans yet again becoming the worst hit.

However, the 2024 Budget has once again been eclipsed by the Sri Lanka Cricket (SLC) saga that commenced the previous week and a Supreme Court verdict that named individuals including former presidents, former finance ministers, former governors of the Central Bank of Sri Lanka (CBSL), and former ministry secretaries as being responsible for the economic crisis faced by the country.

Nevertheless, President Wickremesinghe’s main focus in the past few months has been on preparing the 2024 Budget, given the delay in the International Monetary Fund (IMF) announcing the release of the second tranche under the Extended Fund Facility (EFF).

With the IMF facility hitting a snag over several conditions, the delay in finalising the debt restructuring programme, and the Government looking at uplifting its image among the masses given that 2024 will be an election year, Wickremesinghe and the Government decided to provide a Rs. 10,000 increase in the cost of living allowance given to State sector employees. The cost burden on the Government as well as the decision to pay the increased amount from April 2024 has resulted in the Opposition calling out the Government’s political game targeting next year’s elections.

Wickremesinghe noted while delivering the 2024 Budget that he had managed in the past year to bring Sri Lanka’s collapsed economy back on track.

IMF conditions

The Wickremesinghe Government is continuing its efforts to get IMF Executive Board approval for the release of the second tranche.

The IMF, it is learnt, has made three key recommendations to be implemented by the Government prior to the disbursement of the second tranche. Two of the recommendations are already in the process of being implemented – the further empowering of the independent Bribery Commission and the declaration of assets and liabilities of ministers and parliamentarians.

However, one of the recommendations continues to pose a problem for the Government since it clashes with the Legislature. The condition is for the President to appoint an advisory council to advise the parliamentary Constitutional Council.

President Wickremesinghe and the Government, it is learnt, had informed the IMF that this condition could not be met since it directly clashed with the Legislature. It has been pointed out that the Executive could not carry out such an action with regard to a legislative process and that it was an action purely up to the Legislature. The IMF, however, remains adamant on this condition.

The other key factor delaying the second tranche is the progress made in the debt restructuring programme.

China shares deal

One of the main issues that delayed the finalising of the framework for Sri Lanka’s restructuring of bilateral debt was the delay in China agreeing to share the initial framework agreed on debt treatment between Sri Lanka and China’s Export and Import Bank (Exim Bank).

However, following much persuasion by the Wickremesinghe Government, China had last week agreed to share the deal on treating the $ 4.2 billion debt with Sri Lanka. The Wickremesinghe Government had immediately shared this with the Sri Lanka creditor consortium led by Japan, India, and the Paris Club.

“We hope the official creditors will also respond with their support so that we can go ahead with the IMF’s funding programme,” CBSL Governor Dr. Nandalal Weerasinghe had told Bloomberg News.

Waiting on India

However, it is also learnt that the Paris Club consortium had accepted the Chinese deal and had shared it among the rest of the bilateral creditors. Informed sources said that the rest of the bilateral creditors were ready to finalise the collective framework of the consortium, but were waiting on India to respond to the Chinese deal.

There is no doubt that India is going through Sri Lanka’s deal with China with a fine-tooth comb before expressing any agreement to a framework.

However, the Sri Lankan Government is hopeful that the Paris Club consortium will share its debt restructuring framework by the end of the month, enabling Sri Lanka to seek IMF Executive Board approval for the second tranche by next month.

Chinese envoy’s visit

Meanwhile, Chinese President Xi Jinping’s Special Envoy and State Councilor Shen Yiqin, who visited the Maldives from Wednesday (15) to Saturday (18) and attended the inauguration ceremony of the new President of the Maldives held on Friday (17), arrived in Sri Lanka on an official visit on an invitation of the Sri Lankan Government yesterday. 

She will be in Sri Lanka till Tuesday (21) and is expected to meet with senior Government members during her stay.

Another Chinese vessel

Interestingly, following last month’s visit to Sri Lanka by Chinese research vessel Shi Yan 6, which conducted research in the seas off Sri Lanka’s western coast, another Chinese vessel, the Xiang Yang Hong 3, is to arrive in Sri Lanka in January 2024.

However, highly-placed Government sources noted that the dates of the visit were yet to be finalised as the Government was yet to grant official approval. Details and technicalities related to the visit are still under discussion.

Defence experts have been quoted as giving two reasons for the frequent presence of Chinese ships in Sri Lankan waters: one, to create a route for its submarine warships at sea, and two, to find minerals in the sea.

Pre-Budget Cabinet

President Wickremesinghe meanwhile addressed a gathering of Cabinet Ministers on Monday morning prior to the 2024 Budget presentation scheduled for 12 noon that day. The President had presented the Budget proposals to the ministers and explained the focus of next year’s Budget.

Meanwhile, all eyes of Cabinet Ministers had been on Sports Minister Roshan Ranasinghe when he had walked in for the gathering. Ranasinghe had a few days earlier stated at a news conference that he would not visit the Presidential Secretariat and that he would not even drink a glass of water from the Secretariat due to the threat to his life following his clash with Sri Lanka Cricket.

Ranasinghe had been met with a less-than-friendly welcome by several members of the Cabinet. In fact, one member had asked Ranasinghe whether he would feel more comfortable drinking from his glass of water rather than the one laid out for the Sports Minister.

During the meeting a decision had been made that any future dealings with the ICC would be handled by the Cabinet Sub-Committee headed by Foreign Affairs Minister Ali Sabry appointed to look into the matter. While Ranasinghe had attempted to voice opposition to this matter, the rest of the Cabinet had been resolute in this decision, stating that the mismanagement of the game had resulted in the suspension. 

Highly-placed sources indicated that the sub-committee has been empowered to present the Chitrasiri Report to the ICC. The hope is that, upon assurances by the Cabinet, this report will be implemented and the ICC will consider lifting the ban and allowing Sri Lanka to host next year’s U19 World Cup.

Ranasinghe however claimed later on Monday that such a decision had not been taken at the Cabinet meeting and that the President’s Media Division (PMD) was publicising false news.

“The Minister of Sports says the media report by the President’s Media Division needs to be corrected as there was no discussion or Cabinet directive as to the future appointments of interim committees,” the Sports Ministry said.

Breakaway faction

According to Opposition sources, Ranasinghe has been meeting with several members of the Opposition to discuss the possibility of him leading a breakaway faction. However, the response appears to have been less than favourable, with several Opposition MPs voicing concerns that at this stage the public was more focused on the economy and this would portray the Opposition as being distracted during the Budget. 

Meanwhile, security measures for Sports Minister Ranasinghe have been enhanced after Government intelligence agencies alerted authorities about potential threats to the Minister’s life. Ranasinghe recently confirmed to Parliament that he had been subjected to various threats following his recent exposure of corruption, fraud, and irregularities within Sri Lanka Cricket.

Losing Namal

However, an interesting incident had taken place when Minister Bandula Gunwardana had told the ministers’ gathering that he had recently met with Sri Lanka Podujana Peramuna (SLPP) Parliamentarian Namal Rajapaksa and explained what the 2024 Budget would entail. Gunawardana had added that Namal now had a better idea of the Government’s Budget.

Nevertheless, after hearing Gunawardana’s statement and the confusing nature of some of his explanations, several senior members of the Cabinet had told each other that now Namal might also be confused. “If we had his support, now we might have lost it since he must be confused,” one senior minister had said, making the others laugh.

Post-Budget lunch

Following the presentation of the 2024 Budget, the traditional tea party hosted by the Finance Minister was replaced by a lunch this time around.

While the Government MPs were in full attendance, there were notable absentees from the Opposition, including Opposition Leader Sajith Premadasa and some SLPP dissidents. However, Samagi Jana Balawegaya (SJB) MPs Dr. Harsha de Silva, Eran Wickramaratne, Dr. Rajitha Senaratne, and Mayantha Dissanayake, and Tamil National Alliance (TNA) Parliamentarian M.A. Sumanthiran had attended the lunch. 

While Sumanthiran was seen spending time with members of the diplomatic corps, Dr. de Silva and Wickramaratne were seen discussing the Budget in earnest with several members of the Government. 

SLPP group meet

Following the presentation of the Budget and the post-Budget lunch, a Government parliamentary group meeting was held in the Parliamentary Complex. Headed by the President and with SLPP Leader, former President Mahinda Rajapaksa (MR) in attendance, focus was on the Budget and the way forward. Interestingly, Sports Minister Ranasinghe had attended the meeting and was heard telling several of his colleagues that he would ensure the Budget was passed, as it was only as the Sports Minister that he could break the SLC mafia.

During the group meeting it was explained that the privatisation drive of the land leases and low-income housing projects would have to be a major selling point for the Government. The President had stated that this would ensure anywhere between Rs. 500 billion and Rs. 1 trillion worth of assets entering the market through these initiatives.

Birthday boys

The group meeting was certainly a light-hearted affair, with the members all singing happy birthday to State Minister of Finance Shehan Semasinghe. 

However, SLPP General Secretary Sagara Kayiyawasam, who was also celebrating his birthday, appears to have missed out on a piece of cake as he was absent from the meeting.

RW with MR

Meanwhile, President Wickremesinghe, who returned to the country from the Maldives yesterday morning, had visited former President Mahinda Rajapaksa soon after.

Wickremesinghe had joined MR’s family, brothers, and well-wishes to sing ‘Happy Birthday’ and cut MR’s birthday cake.

A video of the event was shared on social media.

Namal’s fairy tale

Meanwhile, SLPP MP Namal Rajapaksa opted to take a tough stand on the 2024 Budget, saying that many of the proposals put forward by the President this time around were those that had been presented in the previous Budget.

He had noted that the previous proposals had not been implemented and the Government had therefore presented them again. “After studying the proposals, we will present our views during the parliamentary debate. Let’s see if the President accepts them,” Namal had said. 

Pointing out that the President was serving as the Finance Minister of the SLPP-led Government, Namal said the party’s policies should be in the Budget proposals, adding: “Fairy tales are of no use if they don’t work in practice.”

As for whether the SLPP would vote to defeat the 2024 Budget, Namal had observed that the matter was up to the Opposition led by the Opposition Leader.

SLPP to support

Meanwhile, MR when asked about the 2024 Budget soon after the presentation said that the SLPP was yet to make a decision in that regard and that the party would make its decision shortly. Speaking to the media, he said the SLPP would support the proposals that it could agree upon and would not support those it could not approve of.

When asked whether the SLPP had discussed the Budget proposals with the President, Rajapaksa said that he had not attended any discussions and was unaware whether others in the party had attended any such discussions.

Basil’s meeting

SLPP National Organiser Basil Rajapaksa on Tuesday (14) convened a meeting at the Party Headquarters, chaired by MR.

The meeting was focused on discussing President Wickremesinghe’s 2024 Budget and the SLPP’s national convention that is to be held on 15 December at the Sugathadasa Indoor Stadium. Basil had explained to the SLPPers that Wickremesinghe’s Budget was a clear indication of the elections to be held next year and that the party should therefore be prepared.

The first step in the preparation process will be the SLPP convention next month. 

On the 2024 Budget, the SLPPers had discussed that while there were several positive proposals in the Budget, there were many proposals that were not clear on implementation.

Later last week, Basil made his first comment to the media on Wickremesinghe’s Budget. When asked if the President would provide the relief promised, Basil had said: “Yes, yes, you will get them” and laughed.

Roshan to CID

Despite President Wickremesinghe’s belief that the 2024 Budget will take attention away from the ongoing cricket drama, the incidents that took place last week indicated that there was still much focus on the SLC crisis as well as the political crisis that has arisen as a result.

Ranasinghe on Monday, after attending the pre-Budget Cabinet meeting, complained to the Criminal Investigation Department (CID) against the SLC and handed over several documents to support his claims. He later told journalists that his complaint was based on threats to his life and matters pertaining to cricket.

Ranasinghe also submitted a motion to the Appeal Court, seeking the annulment of the 14-day suspension stay order on the Interim Committee for Sri Lanka Cricket, led by Arjuna Ranatunga. Justices D.N. Samarakoon and Neil Iddawela will sit for the consideration of the motion hereafter, after Appeals Court President, Justice Nissanka Bandula Karunaratne recused himself from the consideration of the motion filed by Ranasinghe.

The SLC Board meanwhile has initiated legal action against Ranasinghe, demanding billions over the alleged defamatory statements made by him against the SLC members.

Working on ban

However, the Cabinet Sub-Committee and the SLC Board are both making representations to ICC to get the temporary suspension lifted.

The ICC Executive Board is scheduled to meet on Tuesday (21) and SLC President Shammi Silva is to attend the meeting.

The Sabry committee is also in the process of preparing the Government’s response to the ICC allegations and is expected to submit it today (19).

RW calls Jay

Meanwhile, President Wickremesinghe had last week held a discussion with Asian Cricket Council President Jay Shah to discuss Sri Lanka’s cricket crisis.

Minister Kanchana Wijesekera, who is a member of the Sabry committee, has said Wickremesinghe had spoken to Shah on Thursday (16).

He had said this in response to Opposition Leader Premadasa’s claim that Shah’s father is the right-hand man of Indian Prime Minister Narendra Modi. 

Shammi to meet RW

Meanwhile, SLC President Silva has claimed that he will meet President Wickremesinghe to discuss the ongoing cricket crisis.

“Political interference has to be stopped. I am asking the President. The President needs to intervene. Even in Parliament he said that this might happen,” Silva had said, adding that assurances would be required from the highest office in the country for the ICC to lift the suspension. 

According to Silva, SLC will incur a $ 50 million loss for next year due to the ICC suspension.

Meanwhile, SLPP’s Namal had last week weighed in on the cricket saga, saying politicians and SLC officials should resolve whatever disputes that had arisen between them. 

“SLC and the politicians should resolve their disputes for the sake of sports and for the betterment of the players. It is Sri Lanka’s cricket which is going to be affected as a result of disputes,” Namal had said.

Namal Rajapaksa, who was one-time Minister of Sports, said he had managed to resolve whatever issues that arose between sports bodies and politicians.

COPE controversy

However, the ongoing cricket drama also hit the boundaries of the parliamentary Committee on Public Enterprises (COPE), with COPE Chairman Prof. Ranjith Bandara becoming the centre of much controversy.

While the SLC went before COPE on Tuesday (14), Opposition Leader Premadasa on Wednesday (15) told Parliament that the Speaker should investigate Bandara over what had transpired at the committee meeting the previous day.

Premadasa had said that a video frame showed the Chairman gesturing to a certain person with his finger over his mouth, apparently asking him to refrain from answering. He had added that it meant the COPE Chairman was leading how evidence presentation should take place at the meeting.

However, Bandara had said that he was only trying to bring order to the meeting since there were many questions being directed by MPs at the same time.

Bandara’s son

Premadasa’s statement in Parliament that took to task the COPE Chairman had resulted in the Opposition Leader receiving a lot of information from people claiming that Bandara has had various dealings with SLC in the past few years.

It was during one of these conversations that Premadasa had found out that Bandara’s son, one Kanishka Bandara, had attended the COPE hearing with SLC.

This news had angered Premadasa since he had not been permitted on a previous occasion to sit in a meeting of the Committee on Public Finances (COPF) in his capacity as Opposition Leader of Parliament while the COPE Chairman had got his son to sit in at a hearing. Premadasa had also learnt that Bandara’s son had sat in several other COPE meetings as well.

After gathering relevant information, Premadasa decided to raise the issue in the House on Thursday (16). 

During his statement on Thursday, Premadasa had claimed that Bandara has had several previous dealings with SLC. The Opposition Leader had then asked the Speaker whether the COPE Chairman’s son had been given permission to sit in the COPE meeting.

The Speaker had responded saying that outsiders could not be allowed to sit in COPE meetings and that he would look into the matter.

However, it was later revealed that one R.W.T.M.D.K. Bandara bearing ID no. 1999******** had been granted permission by the Parliament’s Sergeant-at-Arms on 13 October 2022 to attend COPE meetings along with Bandara as his coordinating secretary.

Premadasa and members of the Opposition have called for Bandara’s removal as the Chairman of COPE and for another parliamentarian to be appointed instead.

COPE no-balled

However, the controversy over the actions of the COPE Chairman resulted in Speaker Mahinda Yapa Abeywardena stating that all meetings of COPE had been cancelled until further notice. 

The Speaker had told the House on Friday (17) that the COPE would not be convened until issues concerning its Chairman were resolved. He had noted that the final decision on the COPE Chairman would be taken by its members who were vested with the necessary powers and as per Parliament protocol. 

This was announced after Opposition Leader Premadasa had alleged that the COPE had convened a meeting at 1 p.m. (Friday), knowing that it was a time at which two of its Muslim members, S.M. Marikkar and Rauff Hakeem, could not attend. 

Premadasa had accused the COPE Chairman of having purposefully called for the COPE members’ meeting knowing that these two members could not attend due to Friday prayers. 

No confidence

The main Opposition SJB had also made a decision to act against Bandara in the event the Speaker of Parliament fails to take necessary action to appoint a new COPE chairman.

The SJB has accordingly decided to present a no-confidence motion against Bandara to the COPE in such a scenario. Signatures for the no-confidence motion are expected to be collected this weekend for it to be presented to COPE this coming week.

MR’s conflicting comments

Be that as it may, another focal point in the country’s political scene last week was the Supreme Court verdict on Tuesday that former President Gotabaya Rajapaksa and certain officials from his Government were responsible for the economic crisis faced by Sri Lanka.

The court had held that former President Gotabaya Rajapaksa, former Finance Ministers Mahinda Rajapaksa and Basil Rajapaksa, former CBSL Governor Ajith Nivard Cabraal, and several others were responsible for the economic crisis.

The five-judge Supreme Court bench had given a majority ruling that the above-mentioned individuals were liable for the economic crisis, as they had mishandled the economy and violated the fundamental rights of the people.

However, Chief Justice Jayantha Jayasuriya had observed that it would not be appropriate to issue an order that the respondents pay compensation to the petitioners since they had not claimed so in their petitions. 

The Supreme Court had therefore not issued an order for compensation, but ordered that each petitioner would be entitled to a legal cost of Rs. 150,000 by the respondents.

Interestingly, SLPP Leader MR, who was among the individuals held responsible for the country’s economic crisis by the Supreme Court, made conflicting statements last week about the court verdict.

MR, when asked about the court verdict on Wednesday (15) evening, said that everyone should respect the court decision since the Judiciary had to be respected. “We cannot go against the court. We have to respect the court. I’m also a lawyer,” MR had said.

However, on Wednesday night, MR had said that he did not agree with the court decision. “I do not accept the verdict. I have to state it very clearly. We will receive the opportunity to respond to these allegations and we will then respond,” the former President had said.

Dissolving SLPP

The historic court ruling that named the individuals responsible for mismanaging the economic crisis has also resulted in calls for the SLPP to be dissolved since the leaders of the party were responsible for the country’s economic crisis.

Opposition MP Patali Champika Ranawaka had claimed that the individuals named in the court verdict were enjoying State properties and that such perks should be withdrawn from them.

“Leaders of the SLPP can no longer give excuses,” Ranawaka had said, adding that the people’s Aragalaya in 2022 had been given legal justification by the verdict as well.

Focus on civic rights

Meanwhile, Opposition Leader Premadasa has called on President Wickremesinghe to commence protocols against those held responsible for the country’s economic crisis.

He had told Parliament on Friday that the whole country was of the view that those found responsible for the economic crisis must not be provided civic rights. He had further said that the procedure for the cancellation of civic rights was by appointing a Special Presidential Commission and that such a commission could only be appointed by the President.

The Opposition Leader had requested the President to initiate the necessary measures on behalf of the citizens of the nation.

Mahinda relieved

The Supreme Court on Tuesday (14) also dismissed two contempt cases lodged against Treasury Secretary Mahinda Siriwardana. Filed by SJB General Secretary Ranjith Madduma Bandara and National People’s Power (NPP) Parliamentarian Vijitha Herath, the cases alleged non-compliance with a court order related to the release of funds for Local Government Elections.

The dismissal, based on preliminary objections raised by the Treasury Secretary, was backed by the bench, including Chief Justice Jayantha Jayasuriya and Justices Buwaneka Aluwihare, Priyantha Jayawardena, Vijith K. Malalgoda, and Murdu Fernando.

During earlier proceedings, Senior Counsel Eraj de Silva, representing the Treasury Secretary, had argued that constitutional constraints required a finance minister’s warrant for fund release, emphasising that funds were released based on general ministerial authority before 14 February 2023. 

The Cabinet’s subsequent decision to allocate funds only for essential expenses altered the Treasury Secretary’s authorisation to release funds for election expenses.