• EU’s Pampaloni meets RW to discuss reforms and PTA, RW pushes CTA
• RW to leave on 4-day visit to Egypt on Saturday to attend COP27
• Senior US Treasury official Kaproth makes second visit to SL in 4 months
• BB asks banks not to do transactions with SL through Asian Clearing Union
• SLPP’s pro-Basil group criticised by party seniors for creating a split over 21A
• After warning Opposition Leader, Sanath organises poonac for protesters
• Prasanna returns to SL, reveals outcome of secret vote held in Minuwangoda
• Wijeyadasa asks Speaker for PSC on electoral reforms, LG Polls to be delayed
• Opposition party leaders discuss Govt. plans on polls, consider boycotting PSC
• Sajith receives message from EC officials, says no plans by commission for polls

The celebrations over the passage of the 22nd Amendment Bill (now the 21st Amendment) in Parliament was a short one, with the realities posed by the ongoing economic crisis and the focus of the international community on President Ranil Wickremesinghe and his Government’s plans on addressing key issues taking centre stage once again. Wickremesinghe is also focusing on climate change and climate financing as a new area of development for Sri Lanka that would also help bring in foreign funding to the country. This will be on top of the President’s list when he leaves for Egypt on Saturday (5) on a four-day visit to attend the COP27 summit. Meanwhile, key US and EU officials were in Sri Lanka last week to discuss the country’s recovery plans, reforms, and pledges given to the international community.  It was also announced last week that Sri Lanka is to hold another crucial discussion with the country’s creditors on 3 November. Details of the Government’s plan were communicated to a delegation of International Monetary Fund (IMF) representatives by the President’s Chief of Staff Sagala Ratnayaka on Thursday (27). The discussion between Ratnayaka and the IMF officials was based on the ongoing debt restructuring programme, including prior action to be taken on the matter. Ratnayaka met with Sarwat Jahan, who has been appointed as the IMF Resident Representative for Sri Lanka, as well as Tubagus Feridhanusetyawan, who is the outgoing Resident Representative of the IMF for Sri Lanka. Concluding the meeting, Ratnayaka assured the IMF team that he would brief President Wickremesinghe on the matters that had been discussed and convey his response to the IMF.  US Treasury Department Deputy Assistant Secretary Robert Kaproth was also in Sri Lanka last week to further discuss the current economic challenges faced by the country with Sri Lankan authorities. It was Kaproth’s second visit to Sri Lanka within four months (26-29 June).  Kaproth met with Power and Energy Minister Kanchana Wijesekera as well as main Opposition Samagi Jana Balawegaya (SJB) MPs Dr. Harsha de Silva, Eran Wickramaratne, and Kabir Hashim. The key focus of Kaproth’s discussions was the way forward on economic recovery for Sri Lanka. With Minister Wijesekera, the discussion also focused on power and energy sector reforms.   EU official meets RW   President Wickremesinghe last week met with European External Action Service Deputy Managing Director of Asia and Pacific Paola Pampaloni. The discussions were a precursor to a group meeting with the Foreign Minister and Justice Minister over the progress being made by Sri Lanka with regard to key reforms. During the discussions with the President, Pampaloni had raised concerns over the arrests of two protesters under the Prevention of Terrorism Act (PTA). The President had explained that the arrests had been made as evidence had suggested that the two protesters had been part of a larger conspiracy to topple the Government that had been attempted on 13 July.  He had stated that on that Wednesday, protesters had attempted to take over Parliament in an attempt to prevent a vote by MPs in appointing the President following the resignation of Gotabaya Rajapaksa (GR). The President had further stated that the current PTA was slated to be replaced with the Counter Terrorism Act (CTA), which had been drafted in 2019 when he was last Prime Minister.  He had explained that due to the Budget this year, the CTA would only be taken up for debate in Parliament next year, with the target of adoption in March. The President had also stated that instructions had been given to release many of the former LTTE cadres who had been detained under the PTA, while also pardoning many others who had served over 14 years. He had drawn the group’s attention to the release of eight former LTTE cadres this previous week, two of whom were part of an assassination attempt of former President Chandrika Bandaranaike Kumaratunga. They were released with the consent of the former President. Discussions had then turned to the IMF and the measures being taken by the Government. The EU delegation had recognised the positive steps taken by the Government with regard to the economic reforms and expressed their willingness to support the Government in its efforts.   Economy critical   The Bangladesh Bank (BB) has meanwhile asked banks not to carry out transactions with Sri Lanka through the Asian Clearing Union (ACU) mechanism. “In response to the self-motivated decision by the Central Bank of Sri Lanka (CBSL) to remain temporarily suspended from the ACU mechanism with effect from 14 October 2022, all Authorised Dealers (ADs) are advised not to do any trade and trade-related transactions with Sri Lanka through the ACU mechanism,” a BB statement issued last week noted. The ACU is an arrangement through which participating countries settle import payments for intra-regional transactions. CBSL Governor Dr. Nandalal Weerasinghe has said that Sri Lanka’s economic recovery programme has now reached a critical juncture and there is no alternative other than getting assistance from the IMF. He has noted that the negotiations with the IMF are successful and it is now necessary to get a certificate of loan deferment from the parties who have given commercial loans, without which the IMF relief would not be received. Noting that 80% indirect tax and 20% direct tax should be evolved to 60% and 40%, respectively, in order to provide relief to low-income groups, the Central Bank Governor has proposed to continue the tax regime for at least one year.  “If the current tax policy is implemented for at least one year and if the economy stabilises as expected from next year, the tax revenue will definitely be higher than we think,” Dr. Weerasinghe has stated in an interview with President’s Media Division (PMD) Director General Dhanushka Ramanayake. Meanwhile, State Finance Minister Shehan Semasinghe, who made a statement to Parliament recently following his return to the country from Washington DC after attending the World Bank and IMF annual meetings, stated that during the meetings with the World Bank Executive Director, the IMF Executive Director, and other member countries, Sri Lanka had been assured of the IMF and World Bank Group’s complete support. He noted that the IMF’s Managing Director, during the plenary session of the annual meetings, had emphasised the severe challenges that the IMF’s 190 member countries face.   Post-21A developments   The post-21st Amendment scenario has, in a sense, created new developments and challenges for political parties in Government as well as in Opposition. Now that the bill has been passed in Parliament by a two-thirds majority plus votes, the focus is on putting in motion the work to set up the Constitutional Council and make appointments to independent commissions. Several members in the Opposition and sections of civil society have expressed concerns about the mechanism, questioning the independence of the independent commissions. However, the main Opposition SJB has maintained that it will give the Government the benefit of the doubt with hope that the true spirit of the 21st Amendment (21A) will be honoured by the Wickremesinghe Government. Meanwhile, it is learnt that President Wickremesinghe had recently had a discussion with former President GR at the latter’s residence. It is learnt that the discussion, which had gone on for over an hour, had been held in a highly-confidential manner and details were not immediately known. However, it is learnt that during the discussion, Wickremesinghe had also presented the 22nd Amendment Bill to GR, stating that the piece of legislation had first been mooted during GR’s tenure as President. This fact was further amplified by Sri Lanka Podujana Peramuna (SLPP) senior, former Minister Mahindananda Aluthgamage, who is now one of the few SLPP MPs to continuously keep in touch with GR and keep him informed of developments in the SLPP as well as overall political developments. Aluthgamage has time and again maintained that the 22nd Amendment Bill was mooted by GR and that the SLPP should support the legislation.   Multiple splits in SLPP   The post-21A scenario has left all SLPP MPs (those still remaining in the party) worried about the party’s political future, with the two remaining factions in the party engaged in a blame game. The pro-Basil group, it is learnt, is still reeling from the disappointment that the number of MPs in their group totals less than 20 legislators. A majority of SLPPers voted in favour of the 22nd Amendment Bill. The lead taken by the eldest Rajapaksa family member in politics – former Speaker Chamal Rajapaksa – has resulted in a power shift even among the Rajapaksa family members. It was Basil Rajapaksa who called the shots in relation to the SLPP until then and bargaining on behalf of the party was all based on Basil’s whim. However, with Chamal’s role in getting the SLPP parliamentary group to approve the 22nd Amendment Bill, power over the party has shifted to the senior member of the Rajapaksa family. It is learnt that Chamal had even informed the pro-Basil group at the SLPP parliamentary group meeting held prior to the voting on the bill that the Rajapaksa family members would take care of any issues among the family. “We will take care of our family issues among ourselves. The party should focus on getting the proposed bill passed in Parliament because the SLPP will otherwise be unable to go among the public. If the bill is not passed, we will be accused of blocking moves for political reforms,” Chamal had said. MP Aluthgamage had also said that the SLPP must support the bill. It is interesting to note that former Prime Minister Mahinda Rajapaksa (MR) had remained silent about the SLPP’s decision to support the 21st Amendment despite presiding over the meeting. MP S.B. Dissanayake, who has also publicly expressed views against the 22nd Amendment Bill, had said that the proposed constitutional amendment should not cause issues within the SLPP. The pro-Basil group led by MPs Sagara Kariyawasam, Ranjith Bandara, Sanjeewa Edirimanna, Jayantha Ketagoda, Pavithra Wanniarachchi, Sanath Nishantha, and several others staged a walk-out of the House in protest over the SLPP’s majority decision to support the constitutional amendment.  However, the remaining SLPP MPs are now further split into several groups – the group supporting Namal Rajapaksa and the group supporting Kariyawasam and the pro-Basil group. However, the leadership provided by Chamal to the SLPP during the 22nd Amendment Bill controversy has also resulted in a group of SLPP MPs who have maintained a neutral stance in the party siding with the senior member of the Rajapaksa family. Prior to the vote on the bill, Kariyawasam and Ketagoda had met Namal in the House and discussed the party’s stance during the vote on the constitutional amendment. “We won’t vote. But you better decide taking into consideration your political future,” the pro-Basil group had told Namal. It is also learnt that MP Edirimanna had given prior notice to President Wickremesinghe that he would not support the constitutional amendment. Meanwhile, Pivithuru Hela Urumaya (PHU) Leader, former Minister Udaya Gammanpila addressing a public rally in Ratnapura last week noted that the defeating of Basil by his own SLPP MPs and him being chased back to the US was a historic moment for Sri Lanka and that the era where Sri Lankan political developments were being controlled from the US had come to an end. “The defeat was the end of a struggle for freedom in modern-day Sri Lanka,” he said.   Bad precedent   Nevertheless, the SLPP MPs who supported the constitutional amendment had expressed their concerns to Party Leader MR that the division in the SLPP over the 22nd Amendment Bill had set a bad precedent. The group of MPs, consisting mainly of senior SLPPers, had explained to MR that the failure of the party to reach a unanimous decision on a key issue like a constitutional amendment and the move by a group of SLPP MPs to ignore the majority decision of the parliamentary group would not bode well for the SLPP’s future political path. MR had agreed with the MPs that the SLPP could not afford any further splits if the party was to carry out its reforms programme and prepare for elections next year. A senior MP among the group, who had openly criticised the pro-Basil group over their stance on the 22nd Amendment Bill, had urged MR that the issue be given some serious consideration as the group of party MPs who had opposed the bill could otherwise become problematic as they could operate as another group of errant SLPPers. “We cannot let a similar situation take place again. The SLPP is too vulnerable at the moment,” the senior MP had finally told MR.   Sagara’s predicament   Meanwhile, Party Secretary Kariyawasam continues to face criticism and attacks from within the SLPP. Kariyawasam had reportedly faced instances where two SLPP MPs had tried to physically assault him. One instance was when State Minister Prasanna Ranaweera had verbally attacked Kariyawasam, saying that he was responsible for the mess created within the party. The clash had been averted by the intervention of Prime Minister Dinesh Gunawardena. The second incident had occurred in Parliament on the day of the vote on the 22nd Amendment Bill. During this incident, former Minister Aluthgamage had verbally attacked Kariyawasam while another SLPP MP had threatened to assault him (Kariyawasam). The current crisis within the SLPP has resulted in the pro-Basil group of MPs coming under attack as those responsible for the defection of party MPs to the Opposition as well as the weakening of the party.   The denial   SLPP General Secretary Kariyawasam meanwhile has noted that he abstained from voting on the 22nd Amendment Bill to protest the primitive and tribalistic political culture of this country.  Speaking to the media on Wednesday (26), he said that through the bill, Sri Lanka had travelled backward despite the world moving forward toward greater development. “In many developed countries like the US and Canada, there is no restriction on a dual citizenship holder becoming a state official or entering Parliament.”  Commenting on Basil, who is a dual citizenship holder, Kariyawasam stated that the former had stepped down as an MP prior to the matter being raised in Parliament. The SLPP General Secretary also noted that the 19th and 21st Amendments were both introduced targeting the Rajapaksas. However, he refrained from mentioning the decision of a majority of the Rajapaksa family members to cast their votes in favour of the 22nd Amendment Bill. According to Kariyawasam, the SLPP is prepared to face any election at any time since the party’s base in the grassroots remains intact. He noted that despite defections from the ruling party, the SLPP’s base was unharmed. He further said that there was no division among the SLPP and that members were free to decide their allegiance. He added, however, that he believed no party members intended to join the United National Party (UNP).    Basil under pressure   Amidst the crisis brewing within the SLPP, the party’s theoretician and National Organiser Basil, who is currently in the US, is under pressure to return to Sri Lanka to get the party back on track. The pro-Basil group has already made several requests from Basil to renounce his US citizenship and return to the country in order to engage in active politics under the SLPP.  They have noted that the SLPP’s success in the future depended on Basil’s return to the country. However, a senior SLPP source said that Basil’s family members were of the view that he should forget about politics in Sri Lanka and focus on spending time with his family members in the US. It is learnt that Basil will not return to the country any time soon and will consider returning if Local Government (LG) Elections are to be held early next year. It is in such a backdrop that SLPP Leader MR had stated that Basil has no intention of contesting at an election in Sri Lanka or representing Parliament in the future. MR had further noted that there was no issue therefore in the non-inclusion of the dual citizenship clause in the 21st Amendment to the Constitution.   Meeting in Anamaduwa   Amidst the growing dissension within the SLPP, the party seniors put forward a joint front during the party’s third main rally held in Anamaduwa last Thursday (27). The rally was presided over by MR and was organised by State Minister Sanath Nishantha, who was among the SLPP MPs who boycotted the vote on the 22nd Amendment Bill. MR once again delivered the speech on the SLPP’s policy of aiding the progress and development of the country in a bid to engage the grassroot level SLPPers. The event organiser, Nishantha, was fully geared to meet any protests that could have been organised by the Opposition parties. The SLPP’s second rally that was held in Nawalapitiya witnessed a group of Opposition members holding a protest carrying placards and even grass, claiming it was to feed the ‘bulls’ (referring to SLPPers) who were to attend the meeting. However, it is learnt that Nishantha had even organised a stock of poonac to be sent out to protesters if there were any holding grass. It is also learnt that during the last parliamentary session, Nishantha had warned the Opposition Leader that he would not hesitate to attack any Opposition member if they carried out a protest against the SLPP rally in Anamaduwa.  Interestingly, unlike during the Nawalapitiya meeting, there were no protests during the Anamaduwa meeting.  During his speech, Nishantha noted that it was a certain animal that came to the minds of many when referring to Puttalam. The donkey has been affiliated with Puttalam with the famous Sinhala term ‘Puttalam booruwa’ (Puttalam donkey) being widely used by many. “For those who remember a certain animal when we refer to Puttalam, I would like to remind them that the Sri Lankan nationality was built in Puttalam. If anyone tries to criticise Puttalam, then they should remember that they belong to the animal species that they affiliate with Puttalam,” he stated, making everyone laugh.    Prasanna’s stand   Senior SLPP MP Minister Prasanna Ranatunga last week announced his political stance to support President Wickremesinghe following a secret ballot held by his (Ranatunga’s) supporters and officials at the Minuwangoda politburo. Reports on the vote taken at the Minuwangoda politburo were reported in some media as a move initiated by Ranatunga to defect from the SLPP and join the President and the UNP. However, Ranatunga managed to put rumours of his impending defection from the SLPP to rest by attending the SLPP rally in Anamaduwa on Thursday (27), presided over by MR. Ranatunga was overseas at the time the 22nd Amendment Bill was taken up for vote on 21 October. However, in a statement issued by him upon his return to the country last week, Ranatunga has noted that the dates for his overseas trip had been made much earlier since the 22nd Amendment Bill was to initially be taken up for debate and vote on 6 and 7 October. “Had the debate and vote taken place as planned on 6 and 7 October, I would have attended it,” he has noted. Referring to the vote taken in Minuwangoda, Ranatunga has stated that the vote had been cast by the politburo members on 20 October with his knowledge. “As a politician with a conscience, I have always sought the opinion of the politburo members of my constituency whenever a political decision had to be made. I joined the ‘Mahinda Sulanga’ campaign in 2015 with the knowledge of the politburo. I was one of the first to propose that a new political party should be formed under Mahinda Rajapaksa’s leadership. That too was done with the knowledge of this Minuwangoda committee,” the Minister has explained. Ranatunga has further noted that he had not sought his party members’ opinions when a decision was made to appoint Ranil Wickremesinghe as the Prime Minister and later President with the support of the SLPP due to the crisis situation in the country at the time. “I therefore had the need to inquire from my party members whether our (SLPP) action at the time was correct. That was another reason for the secret vote in Minuwangoda. It was not held to decide on leaving the SLPP,” he has observed, adding that the results of the vote had been handed over to him on Monday (24). “The majority decision is that we should work with the incumbent President without obstructing his work. Their (Minuwangoda politburo) stance is that we should support the President’s programme,” Ranatunga has added.   Focus on dual citizens   Meanwhile, the recently passed 21st Amendment has also created a new debate in political circles with regard to the sitting MPs who hold dual citizenships. Several Opposition parliamentarians have also publicly stated that there are around 10 MPs in the current Parliament holding dual citizenships and noted that they would lose their seats in the House since dual citizens are not permitted to represent Parliament under the new legislation. Speaker Mahinda Yapa Abeywardena has stated that he had also got to know of several MPs who hold dual citizenship. He had however maintained that he was not aware of the total number of MPs who were dual citizens. The Election Commission (EC) has meanwhile stated that decisions regarding dual citizenship can only be made through a court determination and not any other methods. The clause that enables dual citizens to hold public office under the 20th Amendment was repealed by the 21st Amendment. Therefore, MPs who hold dual citizenships cannot function as legislators. The EC had last week stated that a prompt decision could not be made on whether an MP held dual citizenship or not and had urged such individuals to immediately tender their resignations. The commission had further noted that inquiries would be conducted on dual citizenship holders when accepting nominations for future elections and that action would be taken only if such candidates made a statement in this regard. Cabinet Spokesperson, Minister Dr. Bandula Gunawardena stated at last week’s Cabinet news briefing that the Government did not have a way of finding the parliamentarians who were dual citizens. He further noted that the matter needed to be resolved in court. Meanwhile, Justice Minister Dr. Wijeyadasa Rajapakshe has called on the public to come forward and inform if they possess any information about dual citizens being represented in Parliament. The Minister has also stated that information received on dual citizens in Parliament will be informed to court. Speaker Abeywardena has meanwhile reportedly sent a list of names of the 225 legislators in the House to the Immigration and Emigration Department.   Electoral reforms   Amidst the continuing discussion on the implementation of the 21st Amendment, Opposition political parties continue to demand the holding of the delayed LG Elections by next March. The demand for elections has also united Opposition political parties in Parliament, sans the National People’s Power, on one platform.  However, it is in such a backdrop that the Wickremesinghe Government continues to send signals of further delaying LG Elections. The Government’s intention of delaying the elections was first indicated by President Wickremesinghe when he stated during a meeting with professionals a few weeks back that the current electoral system should be changed, especially at LG level.  This has now been followed through by the Justice Minister via a letter sent to the Speaker of Parliament last week. Justice Minister Rajapakshe has called on Speaker Abeywardena to set up a Parliamentary Select Committee (PSC) to amend the electoral system. In the letter, the Minister has noted that this committee, in line with the provisions of Standing Order 101 of Parliament, should not consist of more than 21 members. According to Rajapakshe, the committee members should be vested with powers to summon any individual, request any document, or report or obtain evidence verbally or in writing in order to conduct an extensive study into amending the electoral system. Opposition parties have meanwhile held a round of unofficial discussions to decide on an action to oppose the Government’s move to further delay the LG Elections. Several leaders of Opposition political parties have already discussed the issue and agreed that the Opposition should stand united in demanding elections. The view of the Opposition parties is that the appointment of the PSC is yet another delaying tactic and that some unified action will have to be taken in that regard, even if it means Opposition parties boycotting the proposed PSC.    Message to Sajith   Meanwhile, Opposition party leaders have also decided to keep a close watch on the EC, the reason being the EC’s slow pace in making the necessary arrangements to hold LG Elections next year – despite claims made by EC Chairman Punchihewa that the delayed LG Elections would not be further delayed and that dates for the polls next year would be announced once the latest electoral register was updated to ensure that the youth would not be deprived of their vote at the elections. It is in such a backdrop that SJB and Opposition Leader Sajith Premadasa had received a message from several officials at the EC that the commission had thus far not taken the steps required to plan for an election next year. The officials had pointed out that there were several initial steps to be taken in preparation for polls, such as requesting the Government to make the financial allocations required. They had further explained to Premadasa that the request for fund allocation should be sent to the Government now if elections were to be held early next year. Also, the LG Elections require more manpower than a Provincial Council Election or General Election, which in turn requires preparatory work as well.