• GR returns to Sri Lanka on Singapore Airlines flight from Bangkok via Singapore

• GR’s official residence on Malalasekera Mw. was earlier occupied by Wimal

• IMF condition on Central Bank could complicate issues for Govt. amidst crisis

• CBSL Governor’s workshop results in clash between Opposition and Govt. MPs

• MS turns dictator, amends SLFP Constitution vesting unlimited powers in himself

• SLFP MPs led by Duminda oppose amendments, vote in favour of Govt. Budget

• SLPP MPs displeased with delays in appointments, demand portfolios from RW

• Basil, Namal lead SLPP reforms; question where and why the party had failed

• Namal advises RW to stop chasing all-party govt., work with 134 MPs who voted

• GL-Dullas SLPP dissidents face conundrum in Opposition, no time for speeches

  Despite reaching an initial agreement on a Staff-Level Agreement (SLA) with the International Monetary fund (IMF), the Government led by President Ranil Wickremesinghe and Prime Minister Dinesh Gunawardena is on shaky ground, with the ruling Sri Lanka Podujana Peramuna (SLPP) facing a clear risk of losing its majority hold in Parliament. Last week’s decision by yet another group of the SLPP to sit independently in Parliament has resulted in the ruling party losing over 45 of its members, who are currently occupying Opposition seats in the House. The SLPP, which had the support of 157 MPs in the House, has now been reduced to around 119 MPs, while the numbers in the Opposition seem to have increased to around 105 seats. In the event that five more MPs decide to sit in the Opposition, the SLPP will lose its majority in Parliament. The actions of the SLPP, which led to the economic crisis presently faced by the country, will once again pave the way for political instability if there are more defections from the governing side in Parliament. President Wickremesinghe’s attempts to prevent such a scenario by appointing an all-party governance structure have also been obstructed by the SLPP’s demand for ministerial portfolios. It is in such a backdrop that the Wickremesinghe Government last week presented its first budget in the form of an interim budget to the House. Reading the interim Budget to the House in his capacity as the Finance Minister, President Wickremesinghe reiterated that a difficult path lay ahead for Sri Lanka and its people. He also said he believed the interim Budget would lay the foundation for the Government’s 2023 Budget, due later this year. At the end of his speech, the President concluded by reciting a line from a popular baila song from the 1980s – ‘Aju Thapara Lahila’. “I would like to remind you of the line in the lyrics of the song ‘Aju Thapara Lahila’ written by Bandara Eheliyagoda for a teledrama produced for the Mahapola Scholarship Fund – ‘Apa pamanada ekathena karakenne? Apa thanikara lokaya diva yanne’ (‘Are we the only ones who are going around in circles? The world will run off leaving us behind’). So, let’s get together for the country, without spinning in one place anymore. Let’s create a knowledgeable society with a strong economy that can run forward.” The interim Budget was approved by the Cabinet of Ministers on Tuesday (30 August). On Tuesday, the Cabinet Ministers had arrived for the meeting at around 9.55 a.m. and the draft interim Budget that was to be presented to them had not been finalised at the time and had only been distributed among the Cabinet Ministers a few minutes after the meeting had commenced. After a four-day debate, the interim Budget was passed with a majority of 115 votes, with 120 voting in favour and five voting against, while 43 MPs abstained from voting.   Chaos at Governor’s workshop   Following the presentation of the interim Budget by President Wickremesinghe last week, a workshop was held in Committee Room No. 1 in Parliament for legislators on the current economic situation in the country and the proposals in the interim Budget. The workshop was conducted by Central Bank of Sri Lanka (CBSL) Governor Dr. Nandalal Weerasinghe. However, it is learnt that the workshop had witnessed a clash between governing party and Opposition MPs when the floor opened for the Q&A session, with legislators from both sides trading charges over the country’s economic failures. At the outset of the presentation, the CBSL Governor had said that the foreign reserves in the country had dropped to $ 200 million when he had taken over as Governor. Chief Opposition Whip Samagi Jana Balawegaya (SJB) MP Lakshman Kiriella had then questioned why such a situation had not been recorded in the reports submitted by the CBSL to Parliament. Kiriella had noted that it was a serious issue when Parliament, which was responsible for public finances, was not informed of the real financial situation of the country. The Governor had tried to explain to Kiriella the possible reasons for such a situation. However, unhappy with Dr. Weerasinghe’s response, Kiriella had left the meeting. Afterwards, a heated exchange of words had taken place between SJB MP Dr. Harsha de Silva and several governing party MPs. De Silva had questioned the reason for CBSL’s failure to heed the concerns and warnings expressed by the Opposition Leader and himself of an impending economic crisis from a year ago. De Silva’s statement was denied by some governing party MPs. The heated exchange of words between the SJB and governing party resulted in the workshop drawing to the end. “The President keeps inviting us to join the Government, but how can we join the Government when governing party MPs behave in this manner?” de Silva had questioned. It was these disagreements that resulted in de Silva informing Parliament last Wednesday during his speech that President Wickremesinghe would never be allowed to carry out his economic programme by the SLPP MPs.   IMF’s conditional support   The IMF team – which recently visited the country – concluded its consultations last week, with the initial agreement being reached on an SLA. The team’s visit that was to conclude on Wednesday (31 August) was extended by an additional day till Thursday (1) in order to make an official announcement on the preliminary agreement reached between the IMF and Sri Lanka. The IMF last week granted conditional approval to provide $ 2.9 billion to Sri Lanka for a four-year period. Under the proposed Extended Fund Facility (EFF), Sri Lanka is likely to receive the funds in several tranches between $ 700-750 million each, released annually based on Sri Lanka’s progress evaluation. One of the key conditions was to make the CBSL void of any political interference and to make it a completely independent institution. “A new Central Bank Act is a cornerstone of this strategy,” the IMF stated. However, due to the fresh challenges such a move could pose to the Government – which is facing an unprecedented economic crisis – the Government delegation and the IMF team managed to reach an agreement on the matter by Thursday (1). While the Wickremesinghe Government carried out a campaign on its achievement in reaching an SLA with the IMF, the Fund’s delegation, which addressed the media last Thursday, explained in detail the many actions that Sri Lanka needed to take urgently. The IMF’s Peter Breuer noted that the IMF’s management and Executive Board approvals were also required for the agreement. The IMF continued to highlight the importance of reaching agreements on debt with bilateral creditors, indicating the importance of negotiations with India and China. Chinese Foreign Ministry Spokesperson Zhao Lijian told a regular press conference on Friday (2): “China has paid close attention to the difficulties and challenges faced by Sri Lanka and we have provided help to Sri Lanka’s socioeconomic development to the best of our capacity. China supports relevant financial institutions in consulting with Sri Lanka for proper solutions. We are ready to work with relevant countries and international financial institutions to continue to play a positive role in supporting Sri Lanka’s response to current difficulties and efforts to ease debt burden and realise sustainable development.” The IMF team last Tuesday (30 August) also met Opposition Leader Sajith Premadasa to discuss the country’s economic crisis. During this meeting, Premadasa had observed that Sri Lanka should adopt a reforms programme that was suitable to the country and not the IMF in order to obtain financial assistance from the international community. MPs Harsha de Silva, Kabir Hashim, Eran Wickramaratne, and Rauff Hakeem had also attended the meeting between Premadasa and the IMF. The IMF team met with the leaders of the Sri Lanka Freedom Party (SLFP) as well.   Japan’s denial   Meanwhile, Japan’s role in assisting Sri Lanka on its economic recovery plan by supporting its discussion with creditors on restructuring debt was under the spotlight last week, with foreign media reports stating that Japan had come forward to host a creditor conference for Sri Lanka and the Japanese Government later denying such reports. President Wickremesinghe recently told the foreign media that Sri Lanka would ask Japan to invite the main creditor nations to talks on restructuring bilateral debts. He said he would discuss the issue with Prime Minister Fumio Kishida in Tokyo later this month. “Japan will coordinate with other creditors to resolve Sri Lanka’s deepening financial crisis, Finance Minister Shunichi Suzuki said on Tuesday, urging all creditor nations to gather and discuss the South Asian nation’s debt at the same table,” Reuters reported on 30 August.  Japanese Minister of Finance Shun’ichi Suzuki has, in the meantime, urged all creditor nations to gather and discuss Sri Lanka’s debt at the same table. Suzuki was quoted as telling reporters that Japan would coordinate with other creditors to resolve Sri Lanka’s deepening financial crisis. Suzuki said Sri Lanka must accelerate bailout talks with the IMF and that all bilateral creditors, including China and India, must gather to discuss the issue. However, the Japanese Minister of Foreign Affairs had denied on Wednesday (31 August) claims that the Japanese Government was making preparations to host a debt restructuring conference on behalf of Sri Lanka. In response to a question posed by a journalist at a press conference held on Tuesday (30 August), Japanese Minister of Foreign Affairs Yoshimasa Hayashi had said there was no preparation to hold such a conference with Sri Lanka. “We are having various interactions with Sri Lanka. We are also carefully monitoring the grave economic situation in Sri Lanka. Given the economic crisis situation in the country, we are currently implementing plans to provide humanitarian aid in the form of pharmaceutical products and food to the country,” he had said. “We hope the Sri Lankan Government in coordination with the International Monetary Fund (IMF) and the Paris Club are trying to implement financial and economic solutions while ensuring transparency. Our country will carefully monitor the situation in Sri Lanka and discuss with Sri Lanka or other international donor organisations,” he had added. However, on Friday (2) Suzuki urged all creditor nations to discuss Sri Lanka’s debt restructuring. “It’s important for all creditor nations, including China and India, to gather to discuss Sri Lanka’s debt restructuring,” Suzuki told a news conference.   Demanding portfolios   Meanwhile, several meetings which were scheduled to be held under the President’s patronage were cancelled at the last minute. Key among them was the Government party leaders’ meeting and the parliamentary party leaders’ meeting, which were to be held in the Parliamentary Complex last Tuesday. The government parliamentary group meeting was another which was affected by the President’s absence. However, there was also talk last week among some governing party members to boycott the party’s parliamentary group meeting. The reason for the boycott talk was their displeasure at Wickremesinghe’s failure to accept the proposals presented by the SLPP on the appointment of ministers and state ministers to the Government. However, it is also learnt that apart from these meetings, the President had also cancelled all his appointments and travel that was scheduled for last weekend. This gave way to talk among political circles that Wickremesinghe was unwell and was therefore unable to engage in public events. Another question that then made the rounds was whether the President would be in a position to present the interim Budget that was slated for Tuesday. Wickremesinghe, however, put a stop to the side talk by arriving in Parliament on Tuesday and reading the interim Budget. Following the interim Budget, Wickremesinghe also met the SLPP parliamentary group. The President witnessed a lack of enthusiasm among the SLPP MPs at the meeting, while their usual welcome of him had also declined. Former State Ministers Shehan Semasinghe and Dilum Amunugama had met with the President after the group meeting and explained that most of the SLPP MPs were disgruntled that they have not received portfolios and that it would be better to appoint at least state ministers prior to the vote on the interim Budget. Wickremesinghe had once again explained that his intention was to form a national government to ensure political stability, and that the necessary environment had to be created for the purpose. He had also noted that given the current economic crisis, he (Wickremesinghe) could not increase the number of portfolios. However, the President had added that he would address the issues of the SLPP MPs. When Semasinghe had informed the rest of the SLPP MPs about the discussion with the President, they had objected saying they would vote against the interim Budget if Wickremesinghe did not appoint them to ministerial or state ministerial portfolios. The former SLPP state ministers had also informed General Secretary Sagara Kariyawasam of the issue. Kariyawasam had in turn informed Prime Minister Dinesh Gunawardena and Chief Government Whip Prasanna Ranatunge of this development. The former state ministers had also met with the Premier, seeking his intervention to address their portfolio woes. Gunawardena and Ranatunge had met the President last Thursday and explained the SLPP MPs’ woes. After listening to the two SLPP seniors, Wickremesinghe had said he would appoint 30 state ministers on Monday (9) and that the appointment of new cabinet ministers would be further delayed. The President had also noted that he intended to appoint a Cabinet of around 40 ministers, including the 18 ministers already appointed.   SLPP message to RW   The SLPP leaders during the series of discussions held at the Party Headquarters in Battaramulla last week also discussed the urgent need to ensure political stability in the country in order to prevent another string of people’s power protests. Party senior Basil Rajapaksa had noted that it was important for the economic crisis to be resolved through political stability and to bring about some semblance of normalcy to the people in order to ensure that the SLPP would be able to carry out its party reforms. “The sooner that there’s some stability, the sooner we can start our programmes in the grassroots,” he had observed. The rest of the SLPP seniors had also agreed with this statement and added that the SLPP needed to ensure that the party’s demands were also achieved under the Wickremesinghe Government. This sentiment was made public by Kariyawasam during a press conference last week. Addressing the media, Kariyawasam noted that political stability was key to addressing the economic crisis. The SLPP General Secretary called on the President to urgently appoint a stable government – which could be an all-party mechanism or take any other form – as long as it brought about much-needed political stability to the country. “The Government will otherwise be unable to win the confidence of the local and international communities,” Kariyawasam added. The President meanwhile continues to underline the importance of an all-party governance mechanism, saying that the prevailing crisis situation can be overcome only if all parties work together in unity with common consent. He has emphasised that it is essential to prioritise the necessities of the country and the nation and reiterated the invitation to all parties represented in Parliament to join an all-party government. “Some parties say that they will not join an all-party government due to actions by the Government, which they cannot condone. Others express a reluctance to join such a government due to their opposition to the policies. In this instance, I wish to emphasise that I am not the person who decides the actions or policies of an all-party government,” Wickremesinghe said during the interim Budget speech last week. “I request all of you in this House and all the citizens to put aside your personal political goals and unite in the context of the national cause of rebuilding the country and the nation. If we all come together, we will be able to uplift our motherland and create a nation that competes and moves forward with the ever-changing world. If we miss these opportunities, we will be marginalised globally.” Meanwhile, the SLPP’s Namal Rajapaksa also made a public statement on the proposed all-party government.   Namal advises RW   Namal last week also made several statements on the proposed all-party government. Making a public statement on the all-party government and the stance of the SLPP, Namal advised President Wickremesinghe to focus on forming a stable government with the 134 MPs who had voted for him at the presidential election in Parliament without trying to focus on all 225 MPs in the House. According to Namal, the SLPP had supported Wickremesinghe and given the opportunity for the President to discuss with other political parties to explore the possibility of forming an all-party government to ensure stability in the country. “However, this all-party government does not seem to be taking shape. Even those who had proposed the formation of an all-party government seem to be backing out of it. Therefore, the President should stop looking at all 225 MPs in Parliament and work towards setting up a stable government with the 134 MPs who voted for him,” he observed. “There is no deal, but the party decided that the best person to move forward with is only Ranil at the moment,” Namal said, in response to a question posed on an alleged deal between President Wickremesinghe and the Rajapaksas. He further noted that if the Rajapaksa family wanted to get rid of the court cases, the best time to have done that was under former President Gotabaya Rajapaksa (GR): “The best time to get rid of the cases would have been under uncle (GR) when he was President. All the cases filed against me are still before court and we have an independent Judiciary in the country.” SLPP ministers and members were part of the welcome retinue for GR when he returned to the country on Singapore Airlines flight (SQ 468) at 11:47 p.m. on Friday (2) night. The former President had travelled from Bangkok to Sri Lanka via Singapore, where he had been in transit for several hours. GR was taken from the airport’s VIP terminal amidst tight security to his official residence on Malalasekera Mawatha in Colombo 7. The house currently occupied by GR was formerly occupied by MP Wimal Weerawansa when he was a minister in the GR Government.   Maithripala’s dictatorship   While the SLFP celebrated its 71st anniversary last week, the party leadership continued to send out mixed signals about the party’s stance on the all-party government – which SLFP Leader Maithripala Sirisena earlier claimed his party would support – by saying the SLFP was now planning on leading an alliance that would take over the Government. These mixed signals have not only confused the rest of the Opposition political parties, but also a large number of SLFPers as well. Sirisena last week took steps to overhaul the SLFP Constitution by vesting unlimited powers in the party leadership, which is currently held by him. Key clauses in the SLFP Constitution with regard to the appointment and removal of officer bearers and other key positions were amended to vest all powers with the party leadership. The proposed amendments were first presented to the party’s Central Committee (CC), which met the day before the anniversary celebrations. When the CC met on Thursday (1), a group of SLFP MPs had already expressed their concerns over the amendments. Among those who spoke against the amendments were SLFP National Organiser Duminda Dissanayake and Ministers Nimal Siripala de Silva and Mahinda Amaraweera, as well as MPs Jagath Pushpakumara and Lasantha Alagiyawanna. It was Dissanayake who had first objected to the amendments, noting that they were against the party’s democratic principles. However, Sirisena had tried to downplay the issue by saying he would not take action to remove any member of the party without the CC’s approval. Dissanayake had then explained the impact such amendments to the party Constitution could have in the future under the leadership of another. “Are you anticipating a change in the party leadership?” Sirisena had then questioned Dissanayake. “The problems faced by the country as well as the party are because of decisions made by individuals to suit their requirements without considering future implications,” Dissanayake had continued. However, disregarding all the sentiments expressed by a majority of the party’s parliamentary group, Sirisena moved to take a vote asking all this in favour of the amendments to raise their hands. Apart from Dissanayake and the group that objected to the amendments, the rest had raised their hands. Sirisena called on his media team to ensure that the news that went out about the amendments stated that they were unanimously passed by the CC. Nevertheless, Dissanayake called on the CC to record the concerns raised by a group of CC members. “At least some day, when people look at where the SLFP went wrong, it should be recorded that at least a few party members spoke against them and stood for party democracy,” he said, adding that these words could be his last to the SLFP CC as the Party Leader could now remove any member from posts and decision-making bodies if he so wished. The constitutional amendments were then presented to the party’s anniversary convention on Friday (2) at the Youth Services Council at Maharagama for final endorsements. The group that refrained from voting for the amendments at the CC refrained from raising their hands for the proposal at the convention as well. However, five SLFP MPs led by Dissanayake showed further defiance to the party leadership by going to Parliament straight from the party’s anniversary celebrations and voting in favour of the Government’s interim Budget.   The dream alliance   Sirisena meanwhile claimed that a leftist coalition led by the party will form a government soon. Sirisena’s main line of thinking seems to be that if Ranil Wickremesinghe could become president with one seat in Parliament after being defeated at the 2020 General Elections, then the SLFP led by him (Sirisena) could also turn the tables and form a government. Sirisena made this observation about forming a leftist coalition during the meeting of the SLFP Maharagama electorate Bala Mandalaya at the Grand Monarch Hotel in Sri Jayewardenepura last Sunday (28 August). Sirisena also said he was not prepared to accept any position in the present regime that was being led by SLPP leaders. He further noted he had received information that another 30 members would be added to the Cabinet along with the appointment of 40 State ministers. According to Sirisena, the SLFP has not reached any decision to join the Wickremesinghe Government and no one in the SLFP has received party approval to join the Government or accept ministerial portfolios. Taking a swipe at Ministers Nimal Siripala de Silva and Mahinda Amaraweera, he observed that the two SLFPers who were holding ministerial portfolios were lying when they claimed they had received permission from the party to join the Government. Sirisena also vowed to try and resolve the multiple crises faced by the country as he understood the increase in poverty and suffering of the people. He claimed that minimising fraud and corruption in the country could help address the current economic crisis. Be that as it may, Sirisena’s speech came as a surprise to a majority of the SLFP as there had not been any discussion on forming an alliance with any other political party. Nevertheless, while Sirisena was eloquent about his plans to form a new government with a leftist alliance, no other political parties have yet expressed willingness to form an alliance led by the SLFP. However, a group of SLFPers continues to push for the party to join the Government, which will also help the party (SLFP) get back some of its members who had defected to join the SLPP. “The SLFP’s political plan should be to get the disgruntled SLPPers back to the fold and strengthen the SLFP in the electorates. But our (SLFP’s) indecisiveness and actions or inaction are all pushing them back towards the SLPP,” a disgruntled SLFPer said. Meanwhile, Sirisena’s decision to appoint his son Daham Sirisena as the SLFP Organiser for Polonnaruwa West was also criticised by party seniors since Sirisena was contradicting his own words as he had been critical of nepotism, especially during MR’s tenure.   Basil and Namal join forces   The SLPP is currently engaged in an aggressive programme to revive the party with the party’s National Organiser Basil and party senior Namal leading the way. Basil and Namal last week began to spend most of their time at the party’s Nelum Mawatha office, meeting with party activists and organisers from the districts. The SLPP also held a series of back-to-back meetings with SLPP leaders, activists, and organisers from several districts. The meetings were headed by Basil, Namal, and General Secretary Kariyawasam. Party seniors Rohitha Abeygunawardena, Mahindananda Aluthgamage, Pavithra Wanniarachchi, along with several others, also attended the meetings. The meetings were focused on getting the views of the party’s members in the districts on the ground realities, and the actions the party should engage in order to re-commence the SLPP’s electoral-level activities. The SLPP seniors had also held a session to discuss where the party had gone wrong. Basil had noted that it was important to take stock of the SLPP’s failure to carry out the functions of a government after receiving a mandate from 6.9 million voters and securing a two-thirds majority in parliament. However, it is learnt that six key reasons were attributed to the GR Government’s downfall. The areas identified were the ad hoc decision to ban the use of chemical fertiliser, Cabinet ministers failing to abide by the principle of collective responsibility, the Government’s failure to understand the people’s struggle, the resignation of the Cabinet after the people’s protest at Mirihana on 31 March, the Prime Minister having to resign from his post, and eventually the President having to resign. Meanwhile, an SLPP press conference, scheduled to be held on Tuesday (30 August) by party seniors S.B. Dissanayake and Siripala Gamlath, was cancelled at the last minute. The presser was to be held at 10 a.m. on Tuesday at the Party Headquarters. While the reason for the cancellation was not known, it was widely speculated that the SLPP leaders had thought it was better not to open up to the media at a time when the party was undergoing some serious transformation. However, a senior SLPP MP said that it seemed some party seniors preferred to avoid answering questions about the impending return of former President GR to Sri Lanka as well as the formation of a new political alliance by a breakaway faction of the SLPP led by Dullas Alahapperuma and Co. SLPP Leader former Prime Minister Mahinda Rajapaksa also joined the series of meetings last Thursday. He chaired several meetings, including the meeting of the Hambantota District. However, with GR’s return to Sri Lanka, the senior Rajapaksas, it is learnt, are worried over the possible impact GR could have on some groups in the SLPP. Mahinda and Basil fear that the SLPP might face another split, with pro-GR groups in the party also deciding to move away.   Breakaway group silenced   Despite attempts by Basil and his loyalists to keep the SLPP together without further splits and members joining the Opposition, Wednesday (31 August) saw a group of 12 SLPP MPs led by SLPP Chairman Prof. G.L. Peiris claiming independence in Parliament and requesting seats in the Opposition side.  Peiris noted that the SLPP’s policies and social contract had fallen apart. He addressed the House prior to the announcement and explained the reasons for the group’s decision to declare independence from the ruling party. Accordingly, Peiris, Dullas Alahapperuma, Dilan Perera, Dr. Nalaka Godahewa, Prof. Charitha Herath, Channa Jayasumana, K.P.S. Kumarasiri, Gunapala Ratnasekera, Udayana Kirindigoda, Wasantha Yapa Bandara, Upul Galappatti, Thilak Rajapakshe, and Lalith Ellawela joined the Opposition. When the group of SLPP MPs arrived in the Opposition side led by Peiris and Alahapperuma, they were welcomed by Opposition Leader Premadasa. However, the new SLPP dissidents’ group to join the Opposition is facing an issue in getting time allocated for them to speak in the House, with the Government and Opposition sides refusing on Thursday (1) to allocate time for the splinter group members to speak in Parliament. Members of the dissidents group were earlier allocated a collective 13 minutes each session to speak in the House. The issue was taken up for discussion at the parliamentary party leaders’ meeting held under the patronage of Speaker Mahinda Yapa Abeywardana. The GL-Dullas group had in writing informed the Speaker last week that the group would sit independently in Parliament and would use time slots from the governing side for their speeches. Chief Government Whip Prasanna Ranatunga and SLPP General Secretary Kariyawasam had both informed the party leaders’ meeting that the governing party could not allocate time for the dissident group. Chief Opposition Whip Kiriella had also said the Opposition was unable to allocate time for the dissidents.