US proposes fund cut to Sri Lanka

By Ruan Pethiyagoda

The US State Department has proposed to slash its total funding to Sri Lanka for the second consecutive year.  In its draft budget for foreign operations in 2009, presented to the US Congress, the State Department has only requested US$6.5 million for work in Sri Lanka, down from US$7.4 million estimated for 2008.

The decline follows a dramatic slash witnessed last year, as US$ 23.2 million was put aside for aid work in Sri Lanka in 2007. Funding for counter-terrorism operations has been slashed over fourfold from US$ 893,000 in 2008 to a proposed US$ 200,000 for 2009. Aid to the financial sector has been cut off completely. The budget justification opines that the ethnic "conflict has weakened Sri Lanka's democratic institutions and civil society and contributed to increased human rights abuses." It further states that the north and east of the country "have lagged or even regressed in terms of growth and development, largely due to the presence of armed conflict."

It warns that "continued divergence between economic and social indicators in the Western Province from those in the rest of the country will only prolong hostilities."

A spokesman for the US Embassy in Sri Lanka, Terry White, said however that the current  were "just preliminary figures" and could change in many ways due to "political pressure" among other factors, given that it is a general election year in the US.

"There are several months to go before the US $3 trillion budget is finalised and we will only have a clear picture of the amount of money allocated to Sri Lanka in the coming months."

"I don't want to say that the decline in this draft is in any way linked to factors specific to Sri Lanka. It is too early to make such an assumption," he said.

Israel holds back arms supplies over Iranian connection

By Sonali Samarasinghe

Israel has informed Sri Lanka it is unlikely to sell arms to the country because of concerns over its connections to Iran and the fear of Israeli technology falling into enemy hands.

The Israeli concerns were communicated to Prime Minister Ratnasiri Wickremanayake during a recent visit where a special request was made for arms supplies to fight the LTTE threat.

The Sunday Leader learns the Israeli position was communicated to Wickremanayake by the country's Defence Minister Ehud Barak.

"The Defence Minister Barak told the Sri Lankan Prime Minister because of Sri Lanka's connections with Iran, Israel is unlikely to sell arms to Sri Lanka because of fear that secret technology will fall into Iran's hands," a top Israeli source said.

Israel's concerns come following a visit by President Mahinda Rajapakse to Iran where he lobbied for defence and oil support.

The Iranian President Mahmoud Ahmedinejad is due in Sri Lanka later this week where economic and defence cooperation are to figure prominently.

Prime Minister Wickremanayake also faced an obstacle when he sought to make  arms purchases bypassing the Israeli agent for procurement, Zvika.

Earlier in March Prime Minister Wickremanayake was on a four day visit to Israel and included in the delegation was Jayantha Wickremasinghe the chairman of Lanka Logistics Company of which Defence Secretary Gotabaya Rajapakse is a director.

Sources in Israel told The Sunday Leader Wickremasinghe had stayed behind till March 28 even after Wickremanayake left on March 26 and attempted to approach several Isreali government bodies like the Israeli aeronautical industries and Israeli military industries to secure appointments.

However these bodies, sources said, work on a strict protocol and declined to meet merely through a telephone call and insisted on liaising only through their designated agent in Sri Lanka.

Following the visit Israeli sources said a large consignment of spares and other equipment for the Sri Lanka Navy and armed forces had been stopped by the Israeli authorities. Usually these spares and other equipment are fast tracked through channels that bypass strict regulations including SHIBAT or Defence Authority approval. Any military software or hardware from Israel has to usually get SHIBAT approval and such regulatory measures will delay consignments for up to two and a half months. Defence Minister Barak told Prime Minister Wickremanayake, Israel will only deal through Zvika.

The Israeli source said the Prime Minister's visit was a big success except for the dampener in the form of the forthcoming visit of the Iranian President which had a negative impact on full Israel cooperation.

Sajin to resign

CEO of Mihin Lanka Sajin Vaas Gunawardena will resign from his post at the end of this month to pave the way for a tie up with SriLankan Airlines and his brother Manoj Vaas Gunawardena to take over as CEO of the national carrier.

The Sunday Leader learns Sajin Vaas Gunawardena will continue to serve in the board of Mihin Lanka while Manoj Vaas Gunawardena will assume the CEO post of SriLankan Airlines from next month.

It is learned that Aviation Minister Chamal Rajapakse will forward to cabinet a memorandum outlining the proposed tie up between SriLankan and Mihin.

Sajin Vaas Gunawardena last Friday posed for a photograph with his staff and announced his resignation as CEO, but said he would continue as a board member.

A source at Mihin Lanka said Sajin's resignation will only be on paper and he would continue to be in charge from behind the scenes. The source said the resignation was aimed at muting a conflict of interest that the two brothers were both CEOs of government owned airlines.

Sajin after attending a meeting Friday with his board members and senior managerial staff, took a group photo after which he announced that he would resign by end of the month.

He had also announced that someone better would take over as CEO of Mihin and that he would still be on the board.

Minister Rajapakse has already signed a memorandum to be presented to cabinet outlining the commercial agreement Mihin is to sign with SriLankan. The memorandum was to be presented at last week's cabinet meeting, but the cabinet did not meet.

According to the cabinet memorandum SriLankan Airlines and Mihin will have a close working relationship in which Mihin will operate the routes that are more profitable to a budget airline while SriLankan will continue to develop its already established routes.

The memorandum also states that the government has recognised that there are structural and managerial deficiencies in Mihin and has attributed Mihin's failure to return an operational profit to structural and managerial deficiencies and not to any problems with capacity or the number of passengers.

Mihin has regained control of its aircraft after receiving an additional Rs. 250 million from the Treasury, wrangled out in a hurry after an incident in Bombay where one of the aircraft was grounded following  an emergency landing and passengers were delayed for as much as six hours.

Speculation is rife that Lalith Silva, already a director of SriLankan may be appointed CEO of Mihin. In fact sources say President Mahinda Rajapakse had earlier wanted Silva to take over as CEO of SriLankan but he had turned down the offer. 

Silva was formerly a director of Mobitel, in which Australian telecom giant Telestra had shares. Silva was apparently a key figure in negotiating Telestra's departure from the state-owned mobile telecom company, ultimately being appointed as CEO of Mobitel. Government sources say that they hope that Silva could perform a similar feat with Emirates. He is a Ministry favourite as they feel he has 'integrity and highly valued financial probity' sources say.

'We don't really need GSP+' Cabraal tells BBC

In an interview with the BBC's Steven Sackur on its Hard Talk programme, Central Bank Governor Ajith Nivard Cabraal dismissed the EUs GSP+ trade concession to Sri Lanka as a "subsidy" that "we don't really need" in order to "do certain things."

The stunned Sackur asked: "Let me be clear about what you are saying because it is very important. You are suggesting to me that you don't care whether the EU reviews its special trade deal with Sri Lanka which allows you to export hundreds of millions of Euros worth of clothes to the EU every year?"

To this Cabraal replied that "there will come a time when Sri Lanka will have to stand on its own," and that there were many positive factors in the country's garment industry. The Central Bank Governor went on to downplay the garment industry's dependence on the EU trade concession.  

"It's like a subsidy. We don't really need subsidies to do certain things. The moment you rely on concessions on your own, productivity falls and that's something we don't want," the Governor said. (See pages 8 and 9  for the full interview.)

In response to the Central Bank Governor's  stance, spokesman for the Joint Apparel Association Forum (JAAF) and Director, Brandix, Ajith Dias, told The Sunday Leader that the garment industry has managed to grow "under the most trying conditions" and it is essential to do the "utmost to get the GSP+ status to continue."

"With our manufacturing cost increasing due to high inflation and interest rates, and an appreciating rupee, we need all the concessions available to sustain the industry. It is due to increased productivity, and modern management techniques that business has managed to grow, under the most trying conditions. Business with USA is decreasing because we have no concessions. Therefore we must do our utmost to get the GSP+ status to continue," he said.   

The JAAF spokesman said that they were working closely with the government and the ministers concerned to ensure that Sri Lanka manages to maintain the GSP+ trade preference from the European Union, as it was vital to the stability of the garment industry.

JVP blames govt. for party split

By Mandana Ismail Abeywickrema

The government was instrumental in creating a split in the party and hampering its election campaign in the east, the JVP charged last week. JVP General Secretary Tilvin Silva has said that it was now evident that the government was instrumental in creating the rift within the JVP.

He made this statement in an interview with a private TV station last week.

Silva also added that one example for the government's involvement in the whole issue was the security provided by the Presidential Security Division (PSD) to the JVP defectors.

The JVP defectors were provided security and in some instances even transport facilities by the PSD. Soon after the defection, the PSD was reported to have provided security and transport to several defectors.

JVP Kalutara District Parliamentarians Piyasiri Wijenayake and Jayantha Samaraweera were provided transport facilities as well as PSD security to escort another defector, Sujatha Alahakoon back to her residence following the defection of several party members the week before.

Wijenayake told The Sunday Leader that since his vehicle was nabbed by 'certain parties' and since Alahakoon had no way of returning home, he and Samaraweera escorted her back home with PSD officials. However, Silva in the interview also accused the government of trying to hamper the JVP's election campaign for the forthcoming provincial council elections in the east.

He said that the arrest of JVP Trincomalee District Parliamentarian Jayantha Wijesekera was part of the government's plan to hamper the party's campaign.

Silva said that since the party's Muslim  Parliamentarian, Mohomad Musammil, who would have carried out the party campaign in the Ampara District was among the defectors, the other parliamentarian to carry out the campaign was Wijesekera.

"The government thinks that by arresting the party's legislator from the east, the JVP's eastern election campaign could be hampered," Silva said. A senior party source also told The Sunday Leader that Weerawansa's defection along with the others were caused by the government.

He also said that the true nature of the defectors led by Weerawansa would be witnessed in the near future when they openly join the government by accepting ministerial portfolios.

However, the JVP defectors later stated that they were willing to rejoin the party if the leadership was willing to take strict disciplinary action against three conspirators in the party.

They have also said that a written request would be made on the matter to Party Secretary Silva. However, spokesperson for the JVP's Wimal Weerawansa faction Jayantha Samaraweera has said that it was not possible to reveal the names of the conspirators, whom he said were among the highest rankers in the party. When contacted by The Sunday Leader Samaraweera was unavailable to comment.

Meanwhile, the JVP has rejected reports that its foreign funds have been discontinued by the party's network of international branches. The party's International Affairs Secretary Vijitha Herath was quoted in the media saying that claims by certain media that the party's international funds were running low as a result of its internal strife were false.

Herath had also commented that the party's foreign supporters do not consider individuals when giving funds. "It is the party that they support. Therefore, the party faces no problems regarding foreign funds," Herath had said.

Lankan diplomats in Canada under fire

The Sri Lankan Mission in Ottawa and the Consul General in Toronto, have come under fire for failing to communicate effectively with the Canadian government to promote the interests of Sri Lanka and the role of all Sri Lankan communities.

The criticism follows a statement by Canadian Prime Minister, Stephen Harper, specifically wishing only the Tamil community for the Sri Lankan New Year.

After extending his "warmest greetings to all those celebrating the Tamil New Year," the Prime Minister said that the "New Year celebration affords us the opportunity to reflect upon the notable contributions members of the Canadian Tamil community are making to Canada."The pro-LTTE TamilNet website capitalising on the Canadian Prime Minister's error, referred to his message as a "warm  greeting" to "the Canadian Tamil community on the occasion of the Tamil New Year."

Fein prepares draft indictment against Rajapakse bros. and Fonseka

US Attorney Bruce Fein is preparing a criminal draft indictment against the Rajapakse brothers and General Sarath Fonseka for alleged genocide, crimes against humanity, extra-judicial killings, and torture, it is learned. Fein served as Deputy Attorney General under President Ronald Reagan's administration.

UNP MP Ravi Karunanayake said that the message was a "severe indictment on the Sri Lankan foreign service and the diplomats representing the country in Canada both in Ottawa and Toronto." He added that "an ally as close to Sri Lanka as Canada" should be "more attuned to the cultural background of Sri Lanka."

"To refer to only any single one of our multitude of communities shows a poor understanding of Sri Lankan culture on the part of the Canadian government. Unfortunately this comes as just yet another example of how confounded our own government's foreign policy and communication with the outside world have become," the MP lamented.

The Rajapakse-Fonseka indictment will be modeled on the indictment against Slobodan Milosevic issued by the prosecutor of the International Criminal Tribunal for  former Yugoslavia, a source working close to Fein told The Sunday Leader. The indictment will rely substantially on the doctrine of command responsibility. It makes a superior responsible for the acts of his subordinates if he knew or had reason to know that they were about to commit such acts or had done so and the superior failed to take the necessary and reasonable measures to prevent such acts or to punish the perpetrators thereof, the source charged.

The Rajapakse-Fonseka indictment, which will implicate a United States citizen (Gotabaya Rajapakse) and green card holders (Basil Rajapakse and General Fonseka), will be presented to the Attorney General, the United States Congress, and the International Criminal Court for appropriate action, The Sunday Leader learns.

UNP has no faith in PAFFREL

By Nirmala Kannangara

The UNP last week said that it had no faith in the election monitoring mission, People's Action For Free and Fair Elections (PAFFREL) as there were doubts over its actions as an independent monitoring mission.

UNP Colombo District Leader and Parliamentarian Ravi Karunanayake said that the UNP would not recognise PAFFREL as an independent monitoring group.

"The UNP does not have faith in PAFFREL and we do not consider them as an independent monitoring group," he said.

Karunanayake however said that Elections Commissioner Dayananda Dissanayake during a meeting with representatives of political parties contesting in the forthcoming eastern elections had suggested extending invitations to foreign election monitors for the eastern provincial council elections.

According to Karunanayake, the UNP had concured with Dissanayake's suggestion and the Commissioner had agreed to invite independent foreign monitors to observe the eastern provincial elections scheduled for May 10. "At the first meeting we had with the Election Commissioner soon after the conclusion of handing over the nominations for the eastern provincial council elections, Dissanayake queried whether we would like to have foreign election monitors to monitor the election which is to be held on May 10," Karunanayake said.

However, Karunanayake also said that the monitors who would be invited to observe the elections should not arrive as tourists just interested in paying a visit to the country on a sight seeing mission, but as election monitors who are capable of monitoring the situation very closely.

"We do want the best monitors to monitor the election and also to observe the pre and post election related violence but not the leisure seekers," Karunanayake further said.

He said that it was up to Dissanayke to extend the invitations and said the UNP hoped  the country would get the best election monitors.

Crisis in UPFA over CM post for east

A crisis is brewing in the UPFA over the Chief Ministerial candidate for the Eastern Provincial Council with both the armed TMVP Leader Pillayan and SLFP nominee M.L.M. Hizbullah claiming the top post and refusing to accept the other.

Confusion over the chief ministerial candidate followed with Pillayan and M.L.M. Hizbullah claiming that they would be made CM in the east.

Hizbullah, who broke away from the Sri Lanka Muslim Congress (SLMC), told The Sunday Leader that the government would decide on him to be appointed as the chief minister following the polls on May 10.

The TMVP however has insisted on a Tamil chief minister for the east. TMVP spokesperson Azath Moulana earlier said that the party was contesting under the UPFA banner on the agreement that its leader Pillayan would be appointed the chief minister in the event the UPFA emerged victorious.

The TMVP also opposes a separate Muslim unit in the east. The Pillayan-led party said that the east belonged to all three communities and that a separate unit for the Muslims was not acceptable. The TMVP has already begun its campaign in the east on the basis that Pillayan would be the chief minister if the UPFA wins the polls. The polls are scheduled to be held on May 10.

Call to disarm TMVP falls on deaf ears

Continuous calls by several political parties for the disarmament of the Pillayan-led Tamil Makkal Viduthalai Pulikal have so far fallen on deaf ears with the TMVP still carrying arms while campaigning for the Eastern Provincial Council elections.

Several political parties including the UNP and JVP had called upon the government to ensure that the TMVP was disarmed to ensure a free and fair election. The government however has not taken any steps to disarm the group.

The TMVP has stated that it would not disarm  until terrorism is totally wiped out of the country.

It however stated that the TMVP carrying arms did not mean that the state-provided security was insufficient. The TMVP claimed that its armed cadres were present in their offices for the personal protection of its party members.

TMVP spokesperson Azath Moulana earlier stated that the armed cadres continued to be in the jungle areas, except for those in the offices. "There are only two to three armed persons in our offices for our personal protection," he had said.The TMVP has stated that it would not disarm  until terrorism is totally wiped out of the country.

It however stated that the TMVP carrying arms did not mean that the state-provided security was insufficient. The TMVP claimed that its armed cadres were present in their offices for the personal protection of its party members.

TMVP spokesperson Azath Moulana earlier stated that the armed cadres continued to be in the jungle areas, except for those in the offices. "There are only two to three armed persons in our offices for our personal protection," he had said.

Railway workers irked over salary issue

By Nirmala Kannangara

The Sri Lanka Railway's failure to pay the April remuneration before the Sinhala and Tamil New Year has irked its employees, the All Ceylon Railway Employees' General Union (ACREGU) said.

Although the SLR paid salaries to some of its employees before the New Year most of the work force had been deprived of their dues to celebrate the national festival according to Secretary ACREGU Sumathipala Manawadu.

"Most of the railway employees did not receive their salaries before the Sinhala New Year although the Railway Department claims that they had remitted the salaries to the banks. But the respective banks have informed the railway employees that their salaries have not been sent to the banks," claimed Manawadu.

According to Manawadu the employees are now puzzled as to who they should believe as it is learnt that the money deposited in state banks are sent to government coffers to avert any financial crunch. "We understand that all moneys at state banks are sent to government coffers and in that backdrop we still cannot point the finger either at the bank or the SLR," added Manawadu.

Meanwhile accusing Railway Minister Dulles Alahapperuma of failing to increase the number of journeys during the festive season as promised, Manawadu said that it was a result of poor coordination with the railway station masters (SM).

Several attempts to rescue Action Against Hunger (ACF) workers trapped in Muttur during the first week of August 2006 were thwarted by the prevalent security conditions or due to refusal of security clearance to proceed to the besieged coastal town, ACF said last week while calling the murders of the 17 staff members ‘a war crime.’

In a note to journalists circulated by its press officer Lucile Grosjean, the organisation that has pulled out of Sri Lanka, detailed the several attempts made by its Trincomalee office to rescue the staff and added that military and civilian authorities in Trincomalee were aware of the workers’ presence in Muttur when the massacre took place.

ACF said that workers had reached Muttur on August 1, 2006 by ferry from Trincomalee with the intention leaving the same way the same afternoon. Their departure was thwarted by the suspension of the ferry service.

It added at least two rescue missions had to be suspended due to refusals to proceed to Muttur. According to ACF it had to make two attempts before succeeding in retrieving the bodies. "On the 6th, hopes to find the workers alive in Muttur were gone but ACF insisted on reaching the town in order to collect the bodies. Another road expedition was organised together with the ICRC. Then again, the convoy had to turn back after having been blocked by a mob in a village on the road. Afterward, some of the organisation’s staff members took the initiative to get on the ferry which service was restored. The boat had however to turn back before reaching Muttur when shells felt in front of the boat just before docking.

At the same time, the CHA succeeded to get through Muttur by road and went to ACF compound. They discovered the slain workers lying in front of the gate and gave ACF the confirmation that the staff had been executed.

Ultimately, on the 7th, the collection of the bodies was organised from the ACF base in Trincomalee

IDPs flee to govt. controlled areas

Civil authorities in Mannar have warned that the lack of proper mechanism to deal with the influx of IDPs from un-cleared areas is hampering assistance and slowing down participation of international INGOs. They also said that a proper system was urgently needed before hundreds of thousands flee into government areas.

"I have faced difficulties in mobilising INGOs to help those who are reaching government held areas," A. Nicholaspillai the government agent for Mannar told The Sunday Leader.

Some of the civilians who flee to government controlled areas are sent to an IDP centre at Kallamoddai, in the Nanattan Division while others are staying with relatives. So far there are around 200 persons living in the Kallamoddai camp, according to the GA.

Nicholaspillai however warned that as many as 25,000 could flee into government controlled areas of Mannar if fighting spread north, closer to the strategic Vidathalthivu bay area.

"There are at least 40,000 persons in the Mantai west area where there is fighting and we had made plans to accommodate 25,000 if they fled," Nicholaspillai said.

UN and other agencies have sought clarification from military authorities over the status of the Kallamoddai camp before they commit to provide assistance.

"Indications from the authorities (through the Sri Lanka Army), are that their policy from now on would be to continue sending newly arrived IDPs to this site until it is full, then they would continue with another nearby site, Jeevanagar. Once this is full it was reported that the SLA intended to use three sites that have been identified in Vavuniya," minutes of the last emergency shelter meeting attended by UN and other INGOs working in the north east said.

"UNHCR in Vavuniya is seeking clarification on this latest report on the SLA intentions for IDPs. They have requested at Colombo level that this is followed-up with the authorities to clarify their policy for IDPs as well as to raise their concerns over this policy and its apparent disregard for the ‘Ladder of Options’ including the refusal for IDPs to stay with host-families and concerns about access restrictions for IDPs to and from these new sites," the minutes of the meeting that was held in end March said.

No complaints on election related violence have been reported since nominations were filed, People’s Action for Free and Fair Elections (PAFFREL) Chairman, Kingsley Rodrigo last week said.

He stated that the parties contesting the provincial council polls had started to campaign on a small scale.

"It may be due to the fact that the parties have not started their campaigns on a big scale," he said. However, Rodrigo stated that the situation could change during the latter part of the month.

He stated that the parties would most likely widen their campaigns as the election date draws near. "We expect that the parties would increase and widen their political campaigns during the latter part of this month and early next month. Therefore, the situation might change during these days," he said.

Speaking further on armed cadres in the east, Rodrigo said that the parties such as the TMVP were not using armed cadres in their campaigns.

"The TMVP is using armed cadres for their own protection and not using them for their political campaigns. Therefore, it would not hamper the political campaigns of other parties in the east," Rodrigo further said.

The UNP on Friday said that two instances of violations had occurred and were reported to the Elections Commissioner’s Department.

Themiya L.B. Hurulle of the UNP Election Incidents Unit told The Sunday Leader that Batticaloa Mayor Shivageetha Prabaharan had invited the Grama Niladharis in Batticaloa for a political briefing to be held yesterday, which she was not entitled to do. "She is in charge of the Batticaloa town. She is not entitled to invite Grama Niladharis in the Batticaloa District," he said.

JVP convention on May 27

The JVP has decided to hold its fifth national convention on May 27 at the Sugathadasa Indoor Stadium.

A large number of party members from party branches from all over the island are expected to participate at the event.

New office-bearers to the party are to be elected at the convention while the current political situation and the party strategy and future programmes will also be decided.