With the abrogation of the CFA, operations of the  SLMM too have come to a halt. Picture shows office equipment belonging to the SLMM headquarters being assembled to be cleared                              Photo by Thushara Dassanayake

MP killed by LTTE claim Police     India rules out military solution to ethnic problem     Manmohan won't come for Feb 4 celebrations     APRC deadlocked over unitary state     SLMM starts packing up

Balakumaran says bloodbath waiting to happen

LTTE warns 2008 will bring 'clarity' to ethnic conflict

The LTTE has warned that they will bring 'clarity' to the ethnic conflict in 2008 through a demonstration of military strength.

The LTTE warning came in the backdrop of the government's decision to withdraw from the Ceasefire Agreement entered into with the LTTE in February 2002.

 Speaking to the 'National Television of Tamileelam (NTT),' senior LTTE member considered the organisation's ideologue, K. Balakumaran had said the international community including India have been indecisive in dealing with the Sri Lankan situation and that only the demonstration of military strength by the Tigers can bring clarity to the situation and get them to correctly relate their interests and assertively engage in the crisis.

"The international community has been vacillating in taking decisive actions on Sri Lanka because they are unable to relate their own interests to the chaotically unfolding political and military situation in Sri Lanka. Only the demonstration of military strength by the Tigers can bring clarity to the situation, for the international community to correctly relate their interests, and assertively engage," Balakumaran, was quoted by TamilNet as telling NTT.

Commenting on the military offensives launched by the security forces, Balakumaran has said in his view currently the Sri Lankan security forces are trying to enter Pooneryn through the A-32 or use the A-34 to advance through Oddisuddaan.

"One of these highways will result in being renamed as the highway of death. Whichever path Sri Lanka chooses to enter into Wanni, they have to directly confront our fighters. As a precursor to the anticipated battle, the SLA is trying to chip away the strength of the LTTE, as well as probing the LTTE strength through small-scale skirmishes at the periphery. We understand their tactics, we haven't underestimated their strength either," Balakumaran had said.

The security forces are waiting for an opportune moment to break through a highway. This reminds me of old times; then there was Indian intervention, and currently there is some international intervention; Tiger military resistance eventually determined the conflict resolution phase that followed. We are similarly waiting for the eventual SLA offensive. We are cognisant of the enormity of the possible disaster that can unfold, and bloodbath waiting to happen. Tamil people have no other option, except to face these possibilities. Once the fire of freedom is lit, there is no turning back; sacrifices are part of this decision, and our people fully understand this. We are confident of our strength to achieve our goals, Balakumaran had added.

Equating the situation in Sri Lanka to Sudan, Balakumaran further states China tried to deviate from the international community's attempts to resolve the Sudanese situation, but the international community put pressure on China to toe the line.

"We expect 2008 will be the year where we can overcome the diplomatic hurdles that confront us. In 2003, we proposed the ISGA (Interim Self Governing Authority) as a framework - our minimal requirement for power-sharing which will satisfy us.  So based on this, the international community cannot call us obstinate, or terrorists. Hilary Clinton also identified us when she articulated a more nuanced definition of terrorism. We expect in 2008, the Tigers will bring clarity to Sri Lanka's conflict," Balakumaran had also said.

Groundwork done for confession

MP killed by LTTE claim Police

Sleuths interrogating the suspect who allegedly shot UNP Parliamentarian T. Maheswaran have informed the Government that he had confessed to being a member of the LTTE.

The suspect identified as Wasanthan was arrested soon after the shooting after he too was shot by Maheswaran's bodyguard.

The UNP MP was shot dead while praying at a Kovil in Kotahena on January 1. The sleuths investigating the case have claimed they managed to break the suspect after intense interrogation and that he had claimed to have received orders from the LTTE to assassinate the MP.

According to the police the suspect had said Maheswaran made large financial contributions to the LTTE but had fallen out recently over a financial dispute with the full dues to the organisation not forthcoming. The suspect according to the police had also said the LTTE ordered Maheswaran's killing to pin the blame on the Government following the slashing of his security.

The Sunday Leader learns the suspect is still under interrogation and the police are yet to record his statement.

The UNP earlier called for an Interpol investigation into the murder alleging the Government would attempt to steer it in a direction that would absolve itself of any liability. The party also objected to the IGP Victor Perera visiting the suspect in hospital soon after the incident and identifying him of being a LTTE cadre whilst denying access to UNP MPs who were present at the hospital.

Calls for negotiations

India rules out military solution to ethnic problem

India has urged the Government to pursue a negotiated settlement to the ethnic crisis and said a military solution was not the answer to resolve the crisis.

The Indian statement came 48 hours after the Government announced its decision to withdraw from the ceasefire agreement (CFA) and pursue a military solution to the conflict.

Defence Secretary Gotabhaya Rajapakse last week called for the abrogation of the CFA while Army Commander vowed to kill 3000 Tiger cadres before August this year.

Indian Foreign Minister Pranab Mukherjee responding to the latest developments in Sri Lanka said India is encouraging the Sri Lankan Government to resolve the problem through dialogue and the implementation of a devolution formula.

"A military solution is not the answer. A solution has to be found through dialogue and discussion," Mukherjee had said.

He also said India has a policy of 'zero tolerance' towards terrorism.

The Indian response came 24 hours after the US, Canada, Norway and the UN expressed concern over the government's decision to withdraw from the CFA and the impact it would have on civilians.

Meanwhile, Foreign Minister Rohitha Bogollagama who met with Indian High Commissioner in Colombo Alok Prasad to brief him on the Government's decision to withdraw from the CFA was told of India's concern at the unfolding violence in Sri Lanka and the importance of an early presentation of a set of devolution proposals.

Manmohan won't come for Feb 4 celebrations

Indian Prime Minister Manmohan Singh will not attend Sri Lanka's Independence Day celebrations on February 4, The Sunday Leader learns.

The Government earlier extended an official invitation to the Indian Prime Minister to be the Chief Guest at the 60 years of independence celebrations in Colombo.

The Sunday Leader learns however that due to the escalating violence, the abrogation of the Ceasefire Agreement and the failure of the Government to submit a viable political package to resolve the ethnic conflict has prompted the postponement of a possible visit by the Indian Prime Minister.

The Government two weeks back asked former National Heritage Minister Anura Bandaranaike to vacate his official premises, 'Visumpaya' to house the Indian Prime Minister. Indian authorities however had informed Bandaranaike the Prime Minister will not stay at the Visumpaya even if he were to visit Sri Lanka on an official visit.

APRC deadlocked over unitary state

The All Party Representative Committee is deadlocked on key issues relating to its proposals resulting in the political package not expected to be finalised before mid February at the earliest. The Sunday Leader learns there is no agreement between the parties on the unit of devolution, the nature of the state, land issues and the electoral reforms.

Informed sources said the committee decided to delay discussing the contentious issues until the end but that they have now reached a deadlock with the JHU and SLFP insisting on a unitary state while the other parties have objected to the use of that terminology.

The APRC also rejected a proposal by EPDP Leader, Minister Douglas Devananda to evolve a solution within the 13th Amendment to the Constitution and had insisted on going beyond the 13th Amendment, which too had not found favour with the JHU and the SLFP.

President Mahinda Rajapakse told the cabinet of ministers on Wednesday, January 2 that he would submit a package based on the 13th Amendment to the Constitution.

However The Sunday Leader learns the LSSP, CP, CWC, SLMC, UPF, NUA and the UNP defectors have insisted on a set of proposals which goes beyond the 13th Amendment. The JVP on Friday warned that they would topple the government if any proposals resembling a federal formula is forwarded in February.

An APRC source said in view of the conflicting positions of the various parties in the committee there was very little prospect of any consensus package emerging through their committee.

SLMM starts packing up

By Arthur Wamanan

The SLMM stopped active monitoring on January 3, the day the government officially communicated its decision to pull out of the truce, SLMM Spokesperson Pia Hanssen said.

All activities of the SLMM are scheduled to come to an end by January 16.

Hanssen said that the all operations of the regional offices would be stopped by January 16.

She said that the monitors continued to receive complaints but had stopped active monitoring.

 In terms of the CFA,the parties should give 14 days notice before withdrawing from the CFA.

The government on Thursday officially announced that it was withdrawing from the CFA signed by the then UNP government and the LTTE in 2002.

The SLMM which was originally staffed by 60 monitors drawn from five Nordic countries, had seen its human resources dwindle to 37; 30 of them from Norway following the decision by the Tigers in August 2006 not to allow any national from the European Union to engage in monitoring.

HRW says greater need for UN monitors with exit of SLMM

The departure of the SLMM with the abrogation of the Ceasefire Agreement is likely to increase human casualties, US based Human Rights Watch (HRW) last week said.

HRW Deputy Asia Director Elaine Pearson said that the need for a UN monitoring mission was greater than ever, following the departure of the truce monitors.

The SLMM will stop all its operations by January 16.

"Civilians caught up in the fighting will have a harder time finding safety once the monitors have withdrawn," Pearson had said.

The HRW also stated that both the government and the LTTE restricted its activities and had ignored its recommendations.

The HRW also added the SLMM never had the capacity to play a stronger protection role even at full strength.

"Nonetheless, individual monitors often showed initiative at the local level that provided some measure of protection for those at risk," the HRW said. 

JVP led Petroleum Union to launch one day token strike

By Nirmala Kannangara

A token strike is to be launched by the JVP affiliated Petroleum Common Services Union (PCSU), within two weeks against the Treasury's failure to hand over the one third of the Ceylon Petroleum Corporation (CPC) shares and the 107 fuel stations back to the CPC, PCSU said.

JVP affiliate PCSU told The Sunday Leader that a crippling one day token strike would be launched within two weeks to save the corporation from falling into the hands of Lanka Indian Oil Corporation (LIOC).

"The impending strike action would be followed by a continuous strike if the government fails to hand over the shares and the fuel stations back to the CPC immediately as promised by President Mahinda Rajapakse in the 2008 budget,"  Convener PCSU, Lakshman Ananda said.

According to Ananda the CEB's failure to pay back the dues owed to the CPC has resulted in huge losses in the CPC. "We have learnt that the CEB has now approached LIOC to buy diesel for thermal power generation. If not for  Treasury approval the CEB wouldn't have approached the LIOC. On what grounds could the Treasury approve a government institution to purchase fuel from a foreign company despite the fact that the CEB has still failed to pay the overdue to the CPC?" questioned Ananda.

"Chief Executive Officer (CEO) LIOC has recently inquired from the Operations Manager CPC whether the corporation could provide storage facilities to store 'naphtha' that is to be given to the CEB. If the government tries to undercut another government institution by allowing the CEB to buy fuel from the LIOC the fall of the CPC is inevitable," added Ananda.

According to Ananda a fuel monopoly would be created in such circumstances and the government would not be able to control fuel price hikes in the country as that of Shell gas and Prima flour.

Block 2 still off limits

Security stepped up at Yala

By Kshanika Argent

Security measures have been steeped up after the reopening of Yala National Park this month with several army, civil defence force and police personnel being deployed.

The deployment is to Block 1 of the Yala National Park to ensure the safety of visitors to the area.

However, Block 2 of Yala National Park, where most bungalows and hotels are located, is still off limits to the public as the security forces have yet to clear the area.

Speaking to The Sunday Leader, Military Spokesperson Brigadier Udaya Nanayakkara stated that most of the incidents of violence have occurred in Block 2, while no incidents of violence have ever taken place in Block 1 and that the beefing up of security was to make sure that the trend remains that way. Nanayakkara said, "Arrangements have been made to ensure that people who visit the park will be safe, but there will be no overnight stays allowed."

The Yala National Park has been attracting many tourists after the re-opening according to tourism officials.

UN chief laments abrogation of CFA

UN Secretary General Ban Ki-Moon has expressed his concerns over the breakdown of the 2002 ceasefire and asked all parties to the conflict to ensure the safety of civilians.

"The Secretary-General regrets the decision made by the Government of Sri Lanka to terminate the 2002 Ceasefire Agreement with the Liberation Tigers of Tamil Eelam (LTTE)," the UN said in a statement adding, "he is deeply worried that the withdrawal from the agreement comes amidst intensifying fighting in the north and increasing violence across the country, including Colombo."

Ban Ki-Moon also emphasised on the effects the government's abrogation of truce was likely to have on civilians.

"The Secretary-General urges all concerned to ensure the protection of civilians and enable humanitarian assistance to be provided to affected areas. He underlines the urgent need to end the bloodshed in Sri Lanka through a political solution," the UN said.

Fowzie speaks out

Budget proposal to reduce fuel prices 'ineffective'

By Mandana Ismail Abeywickrema

President Mahinda Rajapakse's 2008 budget proposals to reduce the local fuel prices has been ineffective since even after its implementation, the Ceylon Petroleum Corporation still incurs losses amounting to millions of rupees.

Petroleum and Petroleum Resources Minister A.H.M. Fowzie told The Sunday Leader that the 10% reduction of VAT proposed by the President to reduce the pressure on local fuel prices does not help. The CPC incurs a loss of Rs. 3,442 million per month on diesel sales and the 10% reduction VAT only saves a sum of Rs. 400 million and there still remains a balance of Rs. 3,042 million to be recovered. "The CPC still incurs a loss after the VAT reduction on diesel," Fowzie said.

The waiving off of the Rs. 20 Excise Duty according to the Minister, would not make much of a difference as the loss incurred by the CPC for a litre of diesel and kerosene was higher than the amount proposed to be reduced.

According to him, the CPC was incurring a loss on the sale of fuel in the local market due to the freezing of fuel prices since August 2007. The government however is yet to decide on increasing the price of local fuel prices that would in turn have a cascading effect on the prices of consumer goods.

The CPC currently incurs a loss of Rs. 5.65 on a litre of petrol, Rs. 19.87 on diesel and Rs. 20.83 on kerosene.

The CPC also has Rs. 25 billion in outstanding dues from various state enterprises.

"I will make a request from the Treasury to look into the present situation. CPC needs its outstanding dues from other state enterprises settled if it is to continue without any price revisions, or else the CPC would have to be subsidised," Fowzie said.

As a move to curb the losses incurred by the CPC, it decided last month to stop providing fuel at a concessionary price to the CEB. A litre of diesel was provided to the CEB at Rs. 55 when the market price was Rs. 75. CEB also consumes 40% of CPC's diesel imports.

However, this has created the likelihood of an electricity tariff hike in the first few months of the year by the CEB.

SL travellers to Dubai hit by new regulations

By Kshanika Argent

The restrictions that have been clamped down on Sri Lankans visiting Dubai by the government of UAE will affect some 700 Sri Lankans who travel to Dubai every month according to the Foreign Employment Bureau (FEB).

Meanwhile Abu Dhabi imposed a restriction on Sri Lankans visiting the area unless they have close family ties there.

Speaking to The Sunday Leader, Chairman of the FEB Kingsley Ranawaka stated that the clamp down came as a measure to prevent job racketeers smuggling Sri Lankans to Iraq via Dubai, but that the situation was not as serious as that of Abu Dhabi due to the large number of business and leisure travellers Dubai attracts from Sri Lanka. 

Ranawaka however said that it was uncertain as to how the new restrictions would affect Sri Lankans or whether the process of getting business or travel visa's would be prolonged as the UAE will be screening the visa applications.

Recently a large group of Sri Lankans were prevented from leaving the country by the FEB and some 45 arrested after the FEB was tipped off of a plan to pack them off to Iraq.

Ranawaka stated that the FEB cannot at this time gauge how serious the smuggling of Sri Lankans to the Middle East is, as this is the first incident of smuggling that was discovered.

In order to prevent job racketeers smuggling Sri Lankans to Iraq, the government has taken a decision to be very strict when processing business and tourist visa applications to Dubai. 

TMVP wants civilians protected

The government should ensure civilians are not targeted following its decision to withdraw from the CFA, the TMVP last week said.

TMVP spokesperson Azath Moulana told The Sunday Leader that the party welcomed the government's decision to withdraw from the CFA, but stated that the government should now ensure that the civilians especially in the north and east would not be affected due to this decision.

CFA may have saved 10,000 lives

Nordic countries see an escalation of human suffering

Foreign Ministers of the five Nordic countries that were party to the formation of the Sri Lanka Monitoring Mission (SLMM) have in a joint statement following the Government's withdrawal from the Ceasefire Agreement said violence and human suffering will now escalate further and that the withdrawal of the SLMM would mean the end of an important mechanism that protected civilians and which gave a voice to the victims and their families. 

"The termination of the Ceasefire Agreement will only make it more difficult to find a way back to the negotiating table," the five Foreign Ministers have also said in their joint statement.

The statement was signed by the Foreign Ministers of Norway, Denmark, Iceland, Sweden and Finland, Jonas Gahr Store, Per Stig Moller, Ingibjorg Solrun Gisladottir, Carl Bildt and Ilkka Kanerva respectively.

The Foreign Ministers have also said the Sri Lankan Government's decision comes at a time when the Government and LTTE are engaging in a high level of hostilities in a war-like situation with large-scale displacement of civilians and repeated violations of human rights.

"The Nordic countries are deeply concerned about the worsening situation in Sri Lanka, an overall development which now have reached the point where one party terminates the Agreement," the statement adds.

"The Ceasefire Agreement had a number of positive consequences. During the first three years, conflict-related casualties dropped to almost zero, which means that as many as 10, 000 lives may have been spared. The agreement allowed for greater freedom of movement for all people in Sri Lanka, and opened for economic development. It also improved the human rights situation and the protection of civilians. However, violations of the Agreement have been particularly numerous and increasingly serious during the past two years," they have also said.

The Ministers add they believe only a political solution that addresses the grievances of all the ethnic groups in the country can provide a sustainable peace. The termination of the Ceasefire Agreement will only make it more difficult to find a way back to the negotiating table, it was also said.

Condominium industry hard hit

By Kshanika Argent

The rising cost of building materials, the high cost of living, the general economic condition of the country and a drop in the arrival of expatriates has brought the condominium industry to a standstill according to some industry sources.

Sam Vakeesan, chairman of Superior Palayakat (Pvt.) Ltd, a property developer, stated that coupled with that, banks are not supportive enough towards the construction industry at the moment with high interest rates making it impossible to obtain large loans.

Vakeesan said that the government too is not showing any signs of helping the construction industry. He said, "Private investments are the only way to go for business in this country at the moment. It's sad that companies like us who contribute immensely to the development of the country are neglected."

Meanwhile other condominium companies too are lamenting about the rise in the cost of building materials. One company stated that prices of most apartments double over time, due to unstable building material costs and therefore made the sale of the apartments difficult.

The sources also stated that most companies in the apartment business run at a massive loss unlike in other countries due to these factors and that early bookings in apartments have slowed down considerably compared to a few years ago. Sales have dropped, and the security situation too does not help the cause, according to one property developer.

No military solution to the conflict says UK

Govt. needs to address grievances of Tamil people

British Foreign Office Minister Lord Malloch-Brown, commenting on the end of the Ceasefire Agreement said that there could be no military solution to the conflict.

Issuing a statement Malloch-Brown also said that it was vital that the Government lived up to its commitment to address the grievances of Tamil people and emphasized the need for the final recommendations of the APRC.

"There can be no military solution to the conflict. It is vital now that the Government lives up to its commitment to address the grievances of Tamil people. It is essential that the final recommendations of the All Party Representative Committee issue soon and that the President urgently take a bold and courageous lead from this foundation to set out a framework for a just political solution. We look to the political parties in Sri Lanka to place the need to work together for peace above their narrow self-interests," he said in the statement.

Malloch-Brown has stated that he regretted the lack of a genuine commitment to peace from the Liberation Tamil Tigers of Eelam (LTTE) and the Government of Sri Lanka that has led to the end of the Ceasefire Agreement in Sri Lanka.

"I pay tribute to the tireless efforts of Norwegian facilitators and the Sri Lanka Monitoring Mission, often in very difficult circumstances, to further the cause of peace in Sri Lanka" he has also said.