ISSUES

Ministerial interference in graphite sale By Frederica Jansz Another government minister appears to be interfering with national assets, wheeler-dealing with a government agency to sell a strategic mineral at a rock bottom price. Industries Minister Rohitha  Bogollagama, is alleged to have directly interfered with the sale of 60 tonnes of graphite from Sri Lanka to a Japanese buyer - defiantly ignoring specific instructions to the contrary, issued by the  Enterprise Development, Industrial Policy and

Investment Promotion Ministry under whose purview this subject is addressed.

Prof. G. L. Peiris presides as minister at this ministry and is Bogollagama's superior. Kahatagaha Graphite Lanka Limited, has sold 60 tonnes of Sri Lankan graphite to a Japanese company named, Kato & Company for a price of US $ 650 per metric ton.

This is despite the fact that Bogala Graphite Lanka Limited offered to buy this graphite at the rate of US $ 850 per ton. In fact as recently as  April this year,  Kato itself purchased 20 tons of graphite from Kahatagaha at a price of US $ 1,080 per ton and in November last year another 20 tonnes of the same grade of graphite was purchased by Kato for US $ 1200 per ton.

Kahatagaha is the official government agency to mine Sri Lanka graphite and market it for export. The Kahatagaha graphite mines are situated at Maduragoda, Dodangaslanda in the Kurunegala District.

Dhammika Gamaarachchi was appointed as the new chairman for Kahatagaha Graphite Lanka Limited on March 15, this year, on the recommendation of Minister Bogollagama. The controversy surrounding the graphite in question revolves around what is known as KC 97-99 for which usually the export market price is US $ 1,200 per ton.

As pointed out, as recently as November last year and April this year, Kato purchased 40 tonnes of KC 9799 Sri Lanka graphite for a price of US $ 1200 and US $ 1,080 per  ton. The issue here is why Gamaarachchi, as chairman, Kahatagaha Graphite decided when there were higher offers, to sell this particular grade of graphite for only US $ 650 per ton to the same Japanese firm that had previously paid over US $ 1000 for the identical grade.

Instructions bypassed

Also, why Gamaarachchi together with Rohitha Bogollagama chose to bypass specific instructions issued by the Enterprise Development, Industrial Policy and Investment Promotion Ministry  when finalising this sale is cause for concern.

Gamaarachchi has in fact directly snubbed and ignored an order by the Ministry Secretary, Ranjith Fernando, who on August 21, this year wrote a strongly worded letter to the Kahatagaha chairman reprimanding him for not carrying out the instructions of the ministry under whose purview such sales are authorised. Fernando on August 21 ordered Gamaarachchi to immediately stop all exports at the price of US $ 650 per ton to the Japanese buyer and instead sell the graphite for a price of US$ 1200 per ton, which Executive Director, Kahatagaha, J. Kaviratne had secured. This letter too Gamaarachchi ignored and in fact sold another shipment of KC 97-99 graphite at the rate of US$ 650 to Kato on September 5, 2002.

Kaviratne had secured an order on August 14, 2002, from the UK based firm, Branwell Graphite Ltd., who wished to buy 20 tonnes of KC 97-99 graphite at a purchase price of US$ 1200 per ton. Gamaarachchi however refused to deal with Branwell Graphite Limited. Together with Minister Rohitha Bogollagama, the Kahatagaha chairman was determined to sell only to Kato - who were buying the same grade of graphite at a price that is US $ 550 less on every ton, than that offered by Branwell which is the market price of the mineral. Ranjith Fernando meanwhile trying desperately to remedy the situation wrote to  Vice Chairman/CEO, Bogala Graphite Lanka Limited, Sydney Jayasinghe, on September 4, 2002 and confirmed that Kahatagaha Graphite Lanka Limited will not be selling 97-99 grade graphite at a price below US $ 850 per ton, which was the price offered by Bogala Graphite as opposed to the US $ 650 offer of Kato.

Fernando also told Jayasinghe in this letter that the ministry is interested in pursuing the proposal he has made to act as the company's agent for the selling of its product. He said however that such a decision would have to be taken at ministerial level.

Ordered to stop sale

Even after this letter, Kahatagaha on the instructions of Gamaarachchi sent another 60 tonnes of 97-99 grade graphite to Kato at a price of US$ 650 per ton. The tonnage was exported a day later on September 5, on which day another letter was sent by Fernando to Gamaarachchi ordering him to stop selling the graphite at this ridiculously low price.

Bogala Graphite had meanwhile made an offer to purchase KC 97-99 at the rate of US $ 850 per ton. Sydney Jayasinghe said their offer was to purchase 40 tonnes of KC 97-99 Sri Lanka graphite at a price of US $ 850 per ton, and purchase another 1,080 tonnes of the same grade, over a period of three months also for US $ 850 per metric ton. A purchase order to this effect in fact was made out on September 4, 2002 and addressed to Kaviratne in his capacity as executive director, Kahatagaha Graphite Lanka Limited. Jayasinghe said that their proposal however was subject to a conditional clause that Bogala Graphite Lanka Limited be appointed the sole agent for Kahatagaha in Sri Lanka. It was this clause that Ranjith Fernando said the ministry of Prof. G. L. Peiris was interested in, but would have to be discussed in the minister's presence. Meanwhile, Rohitha Bogollagama got wind of this offer the same day and summoned Sydney Jayasinghe on September 4, to his residence at Colombo 7, and had a discussion with him on this issue. This was the same day that Jayasinghe had submitted to Kahatagaha a purchase order for 40 tonnes of graphite at the rate of US $ 850 per ton. Jayasinghe said that Bogollagama in fact had two discussions with him on this matter. When asked why Bogollagama had done so, Jayasinghe said, "I don't know." He denied that Bogollagama had influenced him to withdraw his offer which was US $ 200 more on each ton than the Japanese buyer Kato.

Cancelled orders

Whatever it was that transpired between Bogollagama and Sydney Jayasinghe, finally resulted in Jayasinghe withdrawing his proposal to Kahatagaha Graphite Lanka Limited.

Two weeks after Jayasinghe met with Bogollagama, on September 16, 2002, Jayasinghe wrote to Kaviratne informing him that they are compelled to cancel the purchase order dated September 4, for 40 metric tonnes of KC 97-99 graphite. When asked why he cancelled his offer despite the Ministry Secretary, Ranjith Fernando informing him that this grade of graphite would not be sold for less than US $ 850 per ton, Jayasinghe said, there was no point in discussing the proposal any further as Kahatagaha continued to export the graphite in question for a price of US$ 650 per ton to Japan.

"We were informed that Kahatagaha via its Chairman, Gamaarachchi was continuing to sell to Kato for US $ 650 per ton and there was no point - as Kahatagaha was continuing to act in this manner despite the ministry's instructions to the contrary," Jayasinghe said.

Executive Director, Kaviratne and Chairman Gamaarachchi meanwhile locked horns over this issue. Kaviratne insisted the graphite should be sold for US$ 1200 per ton on short-term contracts and for US$ 850 per ton on long term contracts. Gamaarachchi refused to agree and insisted he had the backing of Rohitha Bogollagama to continue in this manner. When we spoke to Gamaarachchi he maintained the same stance. He reiterated that he is answerable only to Bogollagama who he insists is his immediate boss. If the ministry of Prof. G. L. Peiris has a problem over this matter "they should then sort it out with Bogollagama and not me," he asserted.

Gamaarachchi maintains that he agreed to sell this grade of graphite to the Japanese company Kato for US $ 650 per ton, "because it is to be a long term contract and they will purchase 600 tonnes from us." When pointed out that Bogala graphite had offered to purchase 1,080 tonnes for US $ 850 per ton, Gamaraachchi claimed that he had not seen any such proposal or form submitted by Bogala Graphite to this effect. Quizzed on why he is selling at US $ 650 per ton when Kato had as recently as April this year and November last year bought this same grade of graphite for US$ 1080 and US $ 1200 per ton respectively, Gamaarachchi said, Kato had only purchased 20 tonnes at a time - and this was why the price was high. In this instance however, he asserted, the contract is for 600 tonnes.

He claimed that Kato may also continue to purchase 100 tonnes of KC 97-99 graphite every month "which is almost our entire produce," Gama- arachchi said. "Isn't this a huge achievement?" he asked.

Critical financial position

He argued that China is selling the same grade of graphite to Japan for a maximum price of US $ 800 per ton and Sri Lanka has to compete with China. "This is why I sold the graphite for US $ 650 per ton," he said defensively. He added that Kahatagaha Graphite Lanka Limited was in a critical financial position when he took over as chairman this year and this was why he was forced to take this decision in order to pay salaries and ensure the company stays afloat. "We require Rs. 7.5 million a month in order to survive," he said. Meanwhile,  Ministry Secretary, Ranjith Fernando has once more written to Gamaarachchi on September 19, alleging that he is misappropriating public assets by his determination to sell this grade of graphite at a rock bottom price. In response to this missive, Gamaarachchi said, "I am answerable to the cabinet. My point is this. I acted with good intentions under these circumstances with the approval of Rohitha Bogolla- gama - if I have done anything wrong, Ranjith Fernando should verify as much from Rohitha Bogollagama and not me."

Rohitha Bogollagama and Ranjith Fernando could not be contacted for comment as they are  both overseas. 

Arousing Paradisians with murder talk . . .

By Thelma 

Darling Satty,

When I was told of your recent appearance on the telly, I justifiably thought you were merely memorising your daily irrational panic drill in front of a camera. But what got my shapely ear lobe really flapping was your grandiose estimate of the blue performances when in government. Borrowing some of the juicier phrases off your daddy's widely acclaimed pamphlet - 'How to talk baloney and get away with it,' you claimed that it was your government that fed the hungry. You sound a lot like another girl I know intimately. I mean of course that largely proportioned female of liberty who is yearning desperately for the huddled masses, as long as they don't wear beards and funny round cloth hats.

You reckon and who can fault you, that the masses of Sri Lanka were fed in your backyard and supped merrily each day on string hopper buriyani and chicken curry, made no doubt by your many domestic menikas. That you have been having hallucinations, a comfort zone Thellie herself has often been accused of  orbiting into,  is obvious.

But my curiosity is tickled dear. I ignore the nasty experience of the cat in the clich‚, as I am not a cat, and tell you again that I am curious. If you and your blue chaps did everything for the 'nethi beri aya' as you claim then why didn't they vote for you? Unless by nethi beri you mean your poor uncle Hotgarden. He certainly had millions of rupees worth of CDs in his many bank vaults. I can imagine why you would feel a tug at your heartstrings when you see your uncle. Have you seen his nose  lately? Besides,  those cousins of yours would need a lot of money to maintain the guns they seem to always fire in the air. Shooting clay pigeons no doubt. If the milk of human kindness has not been sloshing inside you, wanting to help the Bandas in their plight,  I don't know what  has been sloshing (except a few stiffish Martinis). I bleed darling simply bleed for your nethi beri relatives, and pray each day that you were able when you were in power to help them.

Your words though no doubt falling trippingly off your tongue, if I were to misquote the bard, closely resembled the words of  Walter Mitty when he was relating one of his riper tales. Both you and James, and I  mean Thurber not Bond, might have chatted over a limp biscuit and a saucer of tea writing a tall story together. But indulgent and extravagant in your day dreams of your own triumphs, as you are, to me it seems, that if anything is sloshing inside you it is a bucket full of green envy.

The problem dear is you have no real vision. Even your speeches are old and hacked. No creativity, just the same old gag. With your lack of artistic vision it's a good thing you weren't around when Ramses II was building his pyramids. They may have turned out square.

I refer dear lady to your speech in Kandy last week to commemorate Hector Kobbekaduwa. Breathing fire through flared nostrils and stamping your foot, you wiggled a long claw at the audience and made. well.threats. That's the only word for it. Threats. I tell you sweetie if the Grimm brothers had caught your act they would have immediately included  you in their dramatis personae as the large greedy dragon that devoured the beautiful girl. And let's not even begin to speculate who the beautiful girl is.

The greens you accuse are getting ready to clip your wings. I mean to say dear, that is only metaphorically speaking. Legally, through a parliamentary bill. You don't quite expect Ranil to be flitting around  with a pair of gold scissors trying to get  samples off your sari pota now do you?

For goodness sake darling, get real. You will fight it tooth and nail you say. Hmm.  As you are rather long in the tooth already, all you have to do is grow your nails and apply Lakme nail hardener for that final surge of strength.

Repeatedly, against all advice, you keep trying to arouse the Paradisians with talk of murder. Was it Friday the 13th? Was it Halloween? Did we ask for you to tell us ghost stories? No. And I say again no. You missed your vocation dear. You should have been one of those wrestlers in the WWF. You could have called yourself 'Flaming Filly.'  You certainly talk the talk.

But I shivered like an  unset jelly, when I heard you'd threatened to attack if attacked and not shy away like a scalded kitten. You will face your Nemesis, you said. Look death in the eye and take out 500 of your  enemies before you succumb.

Are you cracked dear? Really. You should have been in the movies. Possibly a bit part in Come Or Go Chicago.

I'll let you into a secret. No one is trying to bump you off. On the contrary  the whole country is  trying to talk peace. So stop baring your claws. I say old girl even the Tigers are behaving like kittens why can't you?

I'm also aware you requested the media minister to air your full speech on Rupavahini with strict instructions not to make any  mathematical additions or subtractions or technological distortions. Far cry from what your media minister did when the greens were in opposition and  Ranil's speeches were distorted, eh what? Seriously darling. After the negative responses to your speech aired in full as requested, methinks you would have been better off with the distortions. A final bit of advice. Kittens are  cute. Maybe if you behave like one you could gain a little much needed popularity.

Don't roar darling.

Incremental strategy for peace says G.L.

"These negotiations cannot be pursued on the basis that gain accruing to one party, involves reciprocal loss to the other. We emphatically reject that premise. We acknowledge that we both have a problem, destructive of the pulsating heart of our nation, which it is in our mutual interest to resolve together. This is very much the spirit in which we conceive of, and will carry through, our role in the ensuing discussions."

- Prof. G. L . Peiris (inaugural address at Thailand talks)

By D. B. S. Jeyaraj

"The Sri Lankan government of Prime Minister Ranil Wickremesinghe and the Liberation Tigers of Tamil Eelam (LTTE) led by Velupillai Prabhakaran have virtually formed a partnership to consolidate and further the on going peace process. The talks in Thailand will not be a zero sum exercise where the winner takes everything. There are no victors or vanquished here. The Sattahip proceedings were not adversarial or confrontational. We approached issues with sincerity, openness and candour. It was a joint exercise in peace-building. Both sides know that it is in their mutual interest to resolve the problem and both sides realise that prolonged war is not the answer."

Professor Gamini Lakshman Peiris summed up the preliminary phase of the Sattahip summit in this manner last week. The constitutional affairs minister who led the government delegation to the Thailand talks candidly disclosed the government perspective on the peace process and current talks in a lengthy conversation with this correspondent in Canada. Peiris took flight to the USA immediately after the first round of talks concluded on September 18. Thereafter he undertook a whirlwind two day visit to Ottawa during which he took time off from his tight schedule to explain the current situation in a direct conversation.

Prof. G. L. Peiris met Canadian Foreign Affairs Minister Bill Graham and Secretary of State (Asia-Pacific), David Kilgour in Ottawa in September 23.

The event was widely publicised by the Canadian media. Incidently Graham and Kilgour met Premier Ranil Wickremesinghe in New York on September 17. He also met the Canadian Minister for International Cooperation Susan Whelan and the Inter-Governmental Affairs Minister Stephane Dion in separate meetings. In addition there was also a roundtable discussion attended by Canadian governmental and non-governmental officials where Peiris explained in detail the ramifications  of the peace process with emphasis on the Thailand talks.

The chief negotiator on the government side also met the outgoing Canadian High Commissioner to Colombo, Ruth Archibald and the designated new envoy Valerie Raymond at a dinner meeting on September 21. A dinner in his honour was hosted by the Sri Lankan envoy in Ottawa Geetha de Silva on September 22.

The visiting minister also met members of the Canada based think tank Forum of Federations. The organisation sent a team of experts led by former Ontario Provincial Premier Bob Rae to conduct workshops and seminars in Sri Lanka in early September. Overseas Development Minister Whelan announced the grant of CDN $300, 000 to the forum for assisting the peace negotiations in Sri Lanka after her meeting with Peiris. Prof. Peiris also met several members of the Canadian mainstream media including representatives of the CBC, Globe, Mail and Toronto Star.

His busy programme in Canada was organised by Glen Hodgins of the South Asia division in association with High Commissioner Geetha de Silva who in turn was assisted by First Secretary Wimal Hemachandra and Third Secretary Chamari Rodrigo.

Peiris was seemed extremely satisfied about his Canadian visit. He said that Sri Lanka was expecting assistance of two types from Canada. The first was aid and assistance for rehabilitation, reconstruction and economic  development. "Both Prime Minister Wickremesinghe and I are emphasising to the international community that the peace process must pay immediate dividends if it is to succeed. The people affected by the war must see their situation improve as quickly as possible. For this we need external resources because the past war has virtually crippled our economy," he said.

Sense of disillusionment

"There is a school of thought within the international community that massive development aid should be given to Sri Lanka only after the negotiations reach a conclusive stage. Such an approach though well intentioned could be counterproductive because a sense of disillusionment may set in if the peace process fails to deliver on matters connected with the upliftment of people's  lives. We are telling the world that they could provide aid for large-scale or gigantic projects later on but that immediate assistance is needed for moderate or medium and low-scale projects," Peiris said. Canada had a track record of aiding humanitarian projects in Sri Lanka.

"What we request from Canada is aid to commence projects that would better the lot of the people. Basic amenities and infrastructure like water, electricity, schools, hospitals, roads and transport vehicles have to be restored and developed. We would appreciate Canada identifying such needs and fulfilling them by initiating related projects," Peiris said. "I also pointed out that the West need not have apprehensions about the process collapsing and pinpointed the continuing success of the eight month long ceasefire as proof of this."

Serious negotiations

The minister was optimistic about Ottawa's help in this respect in due course. The second type of help required was Canadian expertise to assist in the negotiating process. While Norway was doing an excellent job in facilitating the peace process, serious negotiations on constitutional reform or constitution making will have to take place in the future. "We are envisaging the setting up of a resource panel of experts to assist and advise both parties on constitutional technicalities and offer expertise on related issues including power sharing. We think that Canadian experts could be of yeoman service in that respect. Already two NGOs funded by Canadian International Development Agency (CIDA), the Ottawa based Forum of Federations and the Colombo based Centre for Policy Alternatives are engaged in pioneering work in this regard." he said.

Peiris also pointed out that both sides could learn many things from the Canadian experience. He said that inspiration could be drawn from several Canadian successes and failures like bi-lingualism, the various arrangements accommodating aspirations of the Canadian first nation communities (aboriginals), the Meech lake accord, Charlottetown summit, the Quebec referendum etc. "The recent Clarity Act presented by Inter-Governmental Affairs Minister Dion could be a model in several aspects" Peiris said.

Acknowledging that the process had not reached the stage of crucial constitutional reform yet, Peiris stressed that the Canadian experience as well as expertise provided by Canada could be invaluable at the appropriate juncture.

Asked about the preliminary round of talks in Thailand the government's chief negotiator was quite buoyant. "It went off very cordially and constructively. Apart from the formal discussions we interacted informally too. Anton (Balasingham) and I had several frank exchanges over coffee. Both sides were able to see and understand each other's points of view and perspectives. We could understand Tamil grievances and aspirations; they could appreciate Sinhalese' anxieties and fears. Both sides realised the constraints and compulsions on each other. I think the groundwork for profitable discussions in the future has been laid in Sattahip."

"As I pointed out in my inaugural address the talks went off well in a non-confrontational, non-adversarial atmosphere. The Norwegians with their wealth of experience in peacemaking were struck by the absence of rancour and hostility in the discussions. There were no heated exchanges, no harsh words, even our voices were not raised. Both sides conducted themselves with responsibility and dignity. I am personally delighted with the outcome and hopeful that a similar environment will prevail in the future also."

When asked whether the first round went off well because contentious issues were deliberately avoided, Peiris responded thus. "There is no question of avoiding contentious or prickly issues. All relevant issues were taken note of in our preliminary round. What we have done is to sequence them appropriately. No negotiating process can succeed if the most difficult and intractable issues are tackled first. What we are doing is to identify the problems and take up each specifically in a well planned sequence. We can build up mutual trust and confidence by resolving the easier problems first and then proceed to the difficult ones. I am confident that if we proceed on this basis even the most fundamental areas of disagreement could be  discussed amicably."

Past experiences

Peiris stated clearly that the so called core issues too will be taken up at the appropriate time. "There is no question of skirting around them or shirking. But we are not going in right now. If we adopt that course as some persons want us to, the talks will be disastrous. What we are doing is to go in one issue at a time . We will identify, discuss, resolve, implement and review them one by one. Past experience has demonstrated that a multi-level approach is unrealistic. It is the piecemeal approach that could work better."

Elaborating further, Peiris said that Prime Minister Ranil Wickremesinghe had given much thought to the matter before deciding upon this "incremental strategy" as the way to achieve a positive and constructive peace. "The step by step incremental approach is a reflection of his mindset and attitude. Illustrating this very clearly was his speech recently in Colombo at a function concerning the retirement of Catholic Archbishop Nicholas Marcus Fernando. Quoting the hymn Lead Kindly Light Ranil emphasised the line "one step enough for me." That was significantly illuminating," Peiris pointed out. "Fortunately the LTTE also subscribes to this incremental strategy for peace talks," he said.

Commenting on the future course of the talks Peiris said that the Sattahip Summit had firmly forged the foundation for a partnership of peace between the government and the LTTE. He drew attention to his inaugural address in Thailand in which he emphasised that the talks were not a zero sum game where the winner takes all. "These negotiations cannot be pursued on the basis that gain accruing to one party, involves reciprocal loss to the other. We emphatically reject that premise. We acknowledge that we both have a problem, destructive of the pulsating heart of our nation, which it is in our mutual interest to resolve together. This is very much the spirit in which we conceive of, and will carry through, our role in the ensuing discussions," he said.

Reiterating that peacemaking was a bilateral effort, Peiris said that the government and LTTE were now partners with an equal stake in the success of the peace process. A convergence of opinion had emerged at Thailand about the immediate priorities. It was mutually agreed that immediate efforts should be undertaken to restore normalcy to the war affected areas and improve the lot of the people living in the north-east whether they be Tamil, Muslim or Sinhala.  It  is  imperative that the suffering people should feel optimistic about the peace talks by seeing tangible benefits. It is only then that a proper environment for the talks to progress could evolve.

"The signing of the ceasefire and its implementation is one important phase of this process of normalisation. Both sides concurred at Sattahip that this process should be assessed, encouraged and promoted. A very important feature of this process would be the resettlement and rehabilitation of displaced people in their former habitation. Thereafter those affected areas have to be reconstructed and developed. Obstacles have to be rectified in this regard."

Outlining the methodology Peiris said that the implementation process of the ceasefire accord will be reviewed continuously and bottlenecks removed and defects remedied. A major problem was the presence of landmines numbering several lakhs being sown in various parts of the north and east. These had to be cleared. Work was already in progress but it had to be amplified and expedited. Canada was quite keen on this and had already allocated CDN $ 120, 000 to the Mine Action Resources Centre in Colombo. Peiris also said that Sri Lanka had not signed the Ottawa Treaty on landmine abolition yet. There was every prospect of Colombo signing it in the near future with the possibility of Prime Minister Wickrem- esinghe himself visiting Canada to do so.

Apart from the landmines, the LTTE had pinpointed another factor preventing the speedy return of displaced people to their former homes. This was the promulgation of security and high security zones by the armed forces in certain areas. A joint committee will be appointed to review issues concerning these zones. Apart from government and LTTE nominees there would be representatives from the armed forces in this committee too. Decisions arrived at would be implemented.

Joint task force

Consistent to the approach of ensuring normalcy was the decision to appoint a joint task force. According to Peiris this was the most commendable achievement at Thailand so far. This task force would coordinate and supervise all activity pertaining to resettlement, rehabilitation and reconstruction. Problems would be identified and rectified. Projects would be formulated. External assistance would be sought and obtained. Such projects would be closely monitored by the task force. It was possible that government and LTTE representatives may interact with donor agencies jointly to garner financial aid.

"The task force will be a novel mechanism that will expedite matters. We will do away with cumbersome bureaucratic red tape procedures delaying matters," Peiris said. The task force would have six members with government and LTTE having three each. The government trio would have a Muslim representative. The LTTE leader was likely to appoint three from the LTTE's political wing to this task force. Asked as to whether the joint task force would be an "unacknowledged substitute" for the controversial interim administration, the minister dismissed it. "Mr. Balasingham was specifically concerned about this. He did not want this task force to delay the interim council in any way," Peiris said.

Continuing further he pointed out that despite efforts to create a bogey out of the proposed interim administrative council for the north-east the government will go firmly ahead with it at the correct time. He said that Ranil Wickremesinghe and the government were firm about the peace process.

Calculated decisions

"Be it the ceasefire agreement or the de-proscription issue we took calculated decisions and implemented them boldly at the right time. Likewise, the interim administrative council will be constituted when the time is opportune. It is ironic that devolution is available in the southern provinces whereas the north-east which needs it most is deprived. The interim administration proposal has already been stated in the UNF manifesto. The people have endorsed it. The people are firmly behind us. So it will come into operation in due course," he said.

The minister declined to reveal details about the interim administrative council proposal because it had not been discussed yet. He envisaged concrete discussions on it taking place in the forthcoming rounds of talks. He was reluctant to put a time frame on it but only said it would be operational "as soon as  possible." The interim council will allow the people of the north-east to run their own affairs in defined spheres until an overall constitutional settlement is evolved. He also refused to speculate on the ultimate settlement saying it required much joint effort and had a long long way to go.

Elaborating further on the concept of devolution Peiris disclosed that the United National Front government was contemplating asymmetrical devolution on a needs based criteria. "If for example the Sabaragamuwa Province with its gems and rubber based economy requires special devolution not required by other parts of the country, then Sabaragamuwa will get special powers amounting to asymmetrical devolution for those specific purposes. Likewise the north-east with its peculiar socio-cultural and economic requirements may get asymmetrical powers not required for other parts of the country. The idea that all parts of the country require identical powers of devolution is no longer valid," said Peiris. "The whole island will be demarcated into five zones on the basis of economic development and integrated projects for economic generation will be underway," he added.

The constitutional affairs minister was also confident that President Chandrika Kumaratunga would not be able to undermine or sabotage the peace process. The forthcoming 19th constitutional amendment next month will curb her powers. Moreover, the power configuration in parliament would be transformed. Kumaratunga will realise that an impeachment motion could be a grim reality. This would be a restraining influence on her and it was very likely that she would in practice become a 'constitutional' president instead of being an 'executive' president as she is now.

International support

The minister was also jubilant about the preponderant international support for the peace process. While international pressure on both sides was a good thing it should not be blatant or exhibitionistic because no party would like to be seen as susceptible to external pressure. The positive aspect about this process was that both parties were seeking peace genuinely and voluntarily and not through external compulsions.

He was also confident that India too was firmly supportive of the peace process in Lanka. New Delhi had assured Colombo that it was firmly behind it. "Norway and we keep India briefed regularly and we see no problems emerging in that direction," he said. The views expressed by sections of the Indian media should not be perceived as being indicative of the official Indian line.

Asked about a hypothetical worst case scenario where the talks collapse and war erupts again, Peiris replied that in such a situation the peace process may be irretrievably doomed. It was highly unlikely that peace talks could be revived again in that context. Prof. Peiris however was strongly optimistic about the current talks. "It is my fervent belief that the talks won't collapse if we proceed cautiously and systematically.  Both sides are genuinely desirous of ending war and achieving a peaceful settlement. It is my hope that the valid aspirations of all our people could be accommodated in a  united Sri Lanka if a satisfactory power sharing structure is evolved."

Man with a mission

Professor Peiris also spoke 'off the record' about several matters including the reasons for his entering politics, his disappointment about conflict resolution during his stint as a PA cabinet minister, the disillusionment over Chandrika, the continuous war and the antics of certain former ministers, his crossover, Ranil's personality and professionalism, the government perceptions about the peace process and the chances for its success.

One thing that came through in the conversation was that the brilliant academic turned politico is a man with a missionary zeal. The mission is to end the war and usher in a just and honourable negotiated peace. Fortunately for the country this mission conforms to Prime Minister Wickremesinghe's vision. Hopefully this happy union will succeed in cementing a firm partnership for peace with the LTTE.

Games some cricketers play

By Amantha Perera, Mandana Ismail Abeywickrema, Marianne David

What went through Makhaya Ntini's mind when two sexily clad women kept giving him the looks while he sat with his teammates at the team hotel in Colombo, only he could describe. Whatever that was, his reaction was "oh yeah baby."

He was preparing for the following day's semi final against India but that did not deter him from approaching the two women. How Ntini, whose cricket career was almost finished till he was acquitted of rape charges back in South Africa approached the women is related elsewhere on this page.

The South African tear-way fast bowler should have thought twice before approaching the women, who were doing their job. That of a journalist, undercover, trying to get first hand evidence that cricketers at the leading sea front hotel were on the lookout for easy sex.

By the time Ntini made his move, stories had already appeared of cricketers and women. On September 17, the Ministerial Security Division (MSD) wrote to the Chief Executive, ICC, Malcolm Speed through the local cricket board bringing to his notice the detection of three women inside rooms of two officials of the West Indies team.

The letter said that the local women were in the rooms of team Manager Ricky Skerritt and Garfield Smith, the computer operator, on two days - September 14 and 15. Police sources told The Sunday Leader that there was no evidence to suggest that the women had spent the night in the rooms. The letter said that the police was checking into whether the women had prior criminal records. By end last week police were still unable to tell for sure whether the women were professional call girls.

Skerritt later denied that the women were professional hookers and said that all visitors to his room during his stay were of impeccable character. He however did not deny the details in the MSD letter regarding the visit. Skerritt said that the MSD had acted in a high handed manner and soon after the story broke, the West Indies requested that MSD cover be removed for them. In fact, the team stayed as normal guests during the last six days of their stay in Colombo.

The MSD was never on the hunt to prevent the cricketers from having a good time. "Oh, they can have sex, we have no problem with that," a very senior MSD officer said. However, it had received instructions from the ICC through the local board to carry out stringent access control to players and officials at both the hotel and the match venues. To do that the MSD deployed 300 officers.

It was while carrying out this part of the job that they ran into trouble with cricketers and officials. While the MSD took down names of all visitors to the rooms, at times it prevented visits. As was the case when a player tried to take three women to his room.

When entry was refused, he argued and took his 'friends' to another hotel.

The ICC instructions on access control was put in place to make sure that match fixers did not have any access to players.

It is the possible axis between prostitutes and bookies that has sent shivers down the cricket regulatory bodies. "In bed so much of information could be got," the MSD officer said.

Past investigations into match fixing has revealed that bookies are interested in everything from weather conditions to team strategy and compositions. MSD sources revealed that they had not monitored phone calls to and from rooms or in fact launched any other operation to check into details of possible match fixing. The MSD, according to officers, was just sticking to the mandate received from the ICC.

However there has been no evidence to prove or connect that women found in the rooms and loitering in the lobby were prostitutes or connected with crime rings.

"We did not come across any evidence. But bell boys and others at the hotel told our officers that some of the women were regulars and were call girls," the officer who wished to remain anonymous said.

The ICC had not replied the MSD letter and had not even reacted officially. And the players were devising new methods   to get around the MSD as the days passed. While some were taking the visitors to other more accommodative environments without the MSD, others were asking the women to take rooms in the same hotel. As in the case of Ntini. Though there was restrictions on visits to rooms of players and officials there was no prohibition of them visiting other rooms.

Threats of match fixing were hovering at the edges of the tournament that will conclude today.

One match, Pakistan's loss to Sri Lanka came under ICC scrutiny and the ICC had given a special number where the public could report any suspicions.

Some teams were under very strict control. The Pakistanis themselves were barricaded in the rooms soon after the defeat.

Economic stability on the horizon

  By Amantha Perera

Prime Minister Ranil Wickremesinghe’s visit to the US is anticipated by many to be the catalyst for investment in Sri Lanka.

Before the trip, Investment Promotion Minister Prof. G. L. Peiris said the government felt that the time had come for a two tier approach — one of peace and stability and the other on economic development. He observed that it was with this strategy in mind that while he and other government members were discussing peace in Thailand, Wickremesinghe was leading the drive on the investment front in the US.

Discussions in the US, signified a policy shift on the part of the government on foreign investments. In the past, attention was more on attracting foreign investment into light industries, like textiles. In the US, the government delegation elaborated plans to attract foreign investment into bigger projects, like infrastructure development, IT, railways etc.

During a presentation, Board of Investment (BOI) Chairman Arjunna Mahendran said the government was planing to introduce legislation that would allow oil exploration off Sri Lanka.

Renewed interest

In the aftermath of the trip, there is renewed interest, according to BOI Media Director, Dilip Samarasinghe, with potential investors not only from the US, but other destinations like Europe, the Far East and the Middle East.

“The visit was part of a much bigger event; in the sense the return of stability,” Samarasinghe observed. The BOI sent an investment promotion team to Japan on Friday (27). The visit is part of an on-going promotion effort. In Japan, the emphasis once again will shift to infrastructure development while also concentrating on traditional Japanese investments in ceramics, porcelain, IT, and software development.

However, despite the publicity, the trip has so far generated very little by way of real investments. The reactions have been limited to telephone calls and so far, no follow-up meetings have been scheduled. But, the BOI is expecting big things to happen, of that there is no doubt.

The BOI has set itself an investment figure of US $ 3 billion for this year — how far this would materialise is not clear. So far, the BOI is uncertain how much real investment has reached the shores of the country this year.

In any event, 2002 is not going to be as good as predicted. GDP growth that was expected to reach 3.5%  or above was lowered to 3% earlier this week. A rational decision, with some pessimistic analysts still predicting that it would not be possible.

When the predictions were made of 3.5%, the argument was that at best the country would just about get out of  the negative growth rate and that concentration should be focused on laying a solid foundation.

It looks like the government too has shifted attention to 2003. Defence expenditure is targeted to come down like never in history in 2003. The defence budget is expected to fall to Rs. 36 billion next year from Rs. 51 billion — a mega fall.

Return of stability

The budget deficit is expected to fall to 7.5% as well. How true these figures would be, only time will tell. But, some sort of stability has returned to the economy. The manner in which the stock market reacted last week was proof of it.

When the market went on a bull run the week before on sentiment,  brokers expected it to correct itself this week. It reached dizzy heights with a turnover of Rs. 700 million, the third largest in history and the fall was expected to be in tune with the yo-yo syndrome that has plagued the bourse — one day up next down.

However, despite the correction, the anticipated fall was never that steep in reality. The market stabilised with the All Share Price Index remaining above the 800 mark. “It will, maybe edge down a little bit because there was some junk that went up during the bull run, but would settle in the region of 800-840,” a broker said.

A month back, he put the figure around 700 or even below. His assessment is that some stability of sorts had returned to the economy. Not one set in iron-cast but the economic prospects look much better than six months back.

However, foreign investors have not begun to return to the market. And would not do so in substantial numbers unless clear signals go out that both warring parties — the government and the LTTE are dead set on peace and stability. A lot would depend on what comes out of the next round of talks.

The announcement by the international community that funds would be allocated to the reconstruction of the war ravaged areas following the first round of talks also augurs well. Once again, the prediction has come right that the peace divined would take time to materialise and by the looks of it, the economic fruits of the peace process would be tasted only in 2003.

On the international front, one significant development can turn all the gains domestically back by a mile. The continuing tension in the Middle East, with both the US and the UK beating harder on the war drums saw oil prices taking an agonisingly painful rise last week and Brent quoted prices as high as US $ 30 per barrel. They however, eased off by the end of the week.

Nevertheless, the fact remains that the US and the UK are interested in kicking Saddam’s butt. The butt kicking would have some serious repercussions on the Sri Lankan economy.

With fuel prices rising, costs would escalate across the board putting pressure both on consumers as well as industries.

War in the gulf would set back foreign investments as well as tourism. The UNF has been on a campaign to promote tourism with very limited success and missiles slamming down and GI’s running all over the Gulf would certainly keep the holiday makers closer to home.

Not out of the rut

Though improvement is made, Sri Lanka is by no means out of the rut. The budget to be presented on November 6 would show how far the government plans to go. In its latest assessment of Sri Lanka, the IMF said recently that though the government is on the right track, more decisive reforms have to be put in place.

The budget would be the signal whether the government is willing to Tango with the devil that is reforms. By year end, the government might also face revenue problems as the new tax reforms would take some time to settle in.

On top of all that hangs the possibility of elections, that can cost the country Rs. 600 million and literally take it back one year.

Prime Minister Wickremesinghe has indicated that if the 19th Amendment fails, then it would be elections that would turn the country into a virtual killing field.

The last three months of this year would more or less be like the rest. A wide-eyed public would be waiting in anticipation to figure out when the fighting finishes and rebuilding begins, politically and economically.

Talks in Thailand: Partnership not antagonism

The sentiments expressed by the government of Sri Lanka and the LTTE at the inaugural session and at the press conference at the conclusion of the Sattahip talks, constitute a promising start for the official peace process.  The emphasis is very clearly on partnership, not antagonism, to use Prof G. L. Peiris’s words, and the modalities preferred are the step by step, problem solving one. This is attested to in the agreement to set up a joint committee to deal with issues relating to the high security zones and a joint task force for humanitarian and recons-truction activities.

The joint committee is aimed at facilitating the return of internally displaced persons (IDPS) and the return to normalcy.  It will consist of senior representatives of both sides including military personnel.

The issue of high security zones and their connection to the return to normalcy has been one on the forefront of the agenda of people of the north and east and inextricably linked for them with normalcy. At the same time, the issue is important in security terms for the government, since it deals with the presence and location of the security forces in the north and east and accordingly sends messages regarding the government’s perception of the future of the peace process and its prospects for success. The government also has to deal with the constituency in the south that is eager to pounce on any information that could support its argument that the government is intent on “handing over” the north and east to the LTTE. That the two sides have agreed to a joint committee to handle this issue indicates that the emphasis is on partnership, empathy and understanding. There is no attempt to treat this issue as a self contained test case of sincerity and commitment, as far as the process is concerned.

The joint task force is in effect an ‘interim, interim’ arrangement, in advance of an interim arrangement which the two parties and the Norwegian facilitator now refer to as a “provisional administrative structure for the north and east.” The task force will comprise of representatives of all comm-unities.

It is very clear that there is a consensus on relief, recon-struction and development in the north and east as a matter of priority and with the LTTE as a partner. Dr. Balasingham stressed this in his opening statement. Furthermore, the consensus also prioritises assistance from the international community as a confidence building measure and reinforcement of the peace process. The issue confronting the international community can be couched in terms of moving away from the position of ‘doing no harm’ to one of ‘doing good.’ In other words, a proactive involvement in reinforcing the peace process and in ensuring its success, rather than one of waiting until the peace process succeeds before moving to strengthen it.  The Norwegians have been making this point in international fora and reiterated it at the opening ceremony as well as at the press conference.

3R framework

Certainly, the international community has concerns in respect of transparency and accountability in the disbur-sement of funds and these cannot be dismissed. Yet, the process in terms of delivery on the basic essentials and infrastructure for a normal civilian life crucially needs the assistance of the international community and without it, there is the risk of the process being retarded through loss of public support and legitimacy.

At the same time, there needs to be proper coordination between the various official government ministries and agencies involved in this process. An initial question that springs to mind is as to whether the relief, rehabilitation and reconciliation process comm-enced by the last government and continued by this one, popularly referred to as the ‘3R framework’ process, will be abandoned, absorbed or superceded by the joint task force. There has been TRO representation at 3R meetings, so far.

‘Joint’ nature

The joint task force too, will be in the nature of a confidence building measure and an important indication of the structure and design of the provisional administrative structure.  What is of special significance is the ‘joint’ nature of it — it will tie the two protagonists together as partners together with representatives of other communities and not be the springboard for unilateral initiatives.

Of especial significance in the overall context of peace building in Sri Lanka were the remarks made by the LTTE chief negotiator Anton Balasingham on whether the LTTE’s objective was a separate state and as to whether interim arrangements would be used by them as a stepping stone to secession. Critics of the peace process cannot dismiss these remarks lightly and have to address the new and positive realities. Whilst they were a reiteration of the LTTE position, what is significant is the context in which they were made and the occasion on which they were made.

Dr. Balasingham pointed out that the LTTE did not deal in categories and concepts of secession, but in categories and concepts of homeland and self-determination.  Self-dete-rmination, he acknowledged, had many dimensions including the ultimate right to secession. He reiterated the LTTE position that secession was a last resort, in the event oppression continued and there was no settlement which met the aspirations of the Tamil people including their right to self-determination and a homeland.

He spoke about regional self government and autonomy and in effect was declaring the LTTE willingness to explore a solution within the framework of a united Sri Lanka that met the aspirations of the Tamil people.  He repeatedly stressed that the LTTE saw interim arrangements as part of an organic process of negotiations and not as self contained arrangements or as the final settlement.  He also pointed out that issues of decomm-issioning and disarmament would be looked at, once a final agreement was reached.

Much to build

As indicators of commit-ment and seriousness of purpose, his answers were very positive and should be welcomed and acknowledged as such. Whilst it cannot be assumed that agreements will come quickly and easily — all sides have clearly indicated this — the process will not be nurtured by the persistence of entrenched stereotypes, negativity and suspicion. At the same time, what happens on the ground, the difference these deliberations make to the daily lives of the civilians who have suffered so much, is the ultimate test of the success of the peace process.

It is about words and deeds, and we have made a very positive start. There is much to build and much to build upon.