ICG blames LTTE for resumption of fighting

By Amantha Perera

The Tigers should take the blame for the resumption of fighting with the government forces that has led to hundreds being killed within the first two months of this year, the International Crisis Group (ICG) said in a report last week.

The ICG also faulted President Mahinda Rajapakse for allowing the extremist parties to dominate his policies.

"Much of the blame for the resumption in violence lies with the LTTE; its ceasefire violations and abuses of the population under its control pushed the government towards war," ICG said in a report titled Sri Lanka's Return To War: Limiting The Damage.

The Brussels based ICG said that the Tiger strategy to provoke the government into retaliatory strikes may have worked too well for their own good.

"The Tiger strategy was to shore up internal support by provoking a Sinhala nationalist reaction; it worked, although the insurgents may come to regret their approach."

The report also said that President Mahinda Rajapakse had allowed nationalists parties to dominate his policies. "President Mahinda Rajapakse has also overplayed his hand. Relying on support from Sinhala extremists, he has let them set an agenda that allows only for a military approach."

The report said that donors and the international community should move beyond limiting their criticism to statements. "Governments and multilateral organisations that have traditionally supported Sri Lanka should move beyond expressions of displeasure at the abrogation of the ceasefire agreement."

The ICG also warned that the current phase of the war was the worse ever with a brutal counter insurgency and the total militarisation of areas under Tiger control - "The current conflict is worse than what preceded the 2002 ceasefire. The government's counter-insurgency campaign is more brutal and indiscriminate, the terror and criminal activities of its Tamil proxy forces more extensive and blatant."

The ICG also said, "The Tigers have fully militarised life in areas under their control and returned to brutal attacks on Sinhalese civilians, intent on provoking even worse retaliation."

The ICG added that the 2002 ceasefire had run its course and recommended a fresh approach to negotiations and possible dialogue. It said that, "The Co-Chairs of the Tokyo Donors Conference (Norway, Japan, the US and the EU) no longer have, as such, a clear peacemaking role; and there needs to be deepened cooperation between India, the EU and the US, with the goal of eventually developing a more politically powerful contact group."

The report also sought international cooperation to close down the LTTE international financial network and to gather evidence for possible prosecution of Karuna in the UK.

ICG also called for target sanctions against the Tigers and the TMVP for continued child recruitment.

PC poll in east in August

By Dilrukshi Handunnetti

The government will hold a separate provincial council election to elect members to a newly established Eastern Provincial Council by August, Local Government and Provincial Councils Minister, Janaka Bandara Tennakoon said.

He told The Sunday Leader that holding the Batticaloa local election was only a precursor to 'test the waters' and promised to make all arrangements to hold a 'free' PC poll by August. "That will be a historic moment. It will also complete a process that we have just begun.

"It began with the liberation of the east. Next comes the election process. It will also be the first time in 21 years that a separate PC would be created in the east. It will be a separate entity that reflects the ethnic balance of the unique province," he said.

Minister Tennakoon added that all these years the northeast were amalgamated under the 13th Amendment and was considered a single entity, much against the wishes of the Sinhalese and Muslims. "The required referendum was never held in 21 years and now the Supreme Court has decided to separate the two provinces," he added.

The Minister further explained that fruits of economic development, long denied to the people of the east since war broke out would now become possible when power is devolved to the province.

Mihin loses A-321 due to default

Mihin Lanka has lost one of its aircraft due to non-payment of the lease.

Mihin has lost an A-321 aircraft taken on lease from Best Air, Turkey as the owners had taken back the aircraft for non-payment of the lease. Mihin Lanka leased the aircraft registered under I-TUB in Turkey on March 26, 2007.

Meanwhile, it is also learnt that the A-320 aircraft leased out by Mihin from Bulgaria registered under Z-BHB, is also to be taken back by its owners in April for the non-payment of dues.

Business sector against electricity hike

By Shezna Shums

The business community has warned of the adverse impact the proposed high electricity tariffs would have on the country's export and local markets.

Chairman, National Chamber of Commerce, D. Easwaran told The Sunday Leader that the increasing cost of electricity will affect the exports sector badly.

Sri Lanka being one of the leading exporters of tea bags will see its production costs go up steeply because the increase in electricity rates will increase the costs of tea processing, packing, printing and also packaging.

"If it is a 40% increase in electricity rates then the price of everything that depends on power will also increase in cost by that margin," explained Easwaran. The increase in electricity prices would have an impact on exports such as garments, tea and other items heavily dependent on electricity, he said.

"This in turn will make Sri Lankan tea more expensive and thus be in a difficult position in the world market," Easwaran added.

He explained that given the present high prices of materials, an increase in electricity costs would make local exports even more expensive.

"Sri Lanka is number one when it come to the exporting of tea bags, and this position will be vulnerable if production costs increase steeply," said Easwaran.

Chairman, Federation of Chambers of Commerce and Industry, Nawaz Rajabdeen said that people were finding it difficult to bear even the present electricity rates.

"If electricity is to be increased again, this will cause a series of increases and will affect the cost of almost everything. The government needs to find a solution or appoint experts to find a solution to provide cheaper electricity," he said.

"If electricity prices are to be increased, Sri Lankans may become the highest paying electricity users in the Asian region," highlighted Rajabdeen.

The increase in electricity tariffs will affect a cross section of people as even the prices of food will increase in price.

Rajabdeen urged the government to find a solution to bring the cost of electricity down, or to bring in experts from some of the neighbouring countries to help find ways of reducing the cost of electricity.

He added that the Ceylon Electricity Board should bring down experts to help revamp the institution as well as to help find a solution to reduce the increasing cost of electricity in the country.

By Nirmala Kannangara

Despite the decline in world oil prices, domestic gas prices are to be increased once again in March, The Sunday Leader learns.

Managing Director, Laugfs Holdings Limited, Thilak de Silva told The Sunday Leader that although the global oil prices have been on the decline, another price hike in domestic gas cylinders was inevitable.

"Although the fuel prices in the world market is declining since the end of January, Laugfs made an application to the Consumer Affairs Authority (CAA) requesting for another price hike from March according to the pricing formula. The gas price revision takes place once in two months and the January price revision was based on the October and November fuel prices in the world market," de Silva said.

According to de Silva, although the fuel prices started declining since end January the price of a domestic gas cylinder still has to be increased in line with the December and January prices in the world market.

"In December and January the prices of fuel reached its peak and hence our request for another price increase. The CAA would give their approval during the course of this week," de Silva further stated.  

However, de Silva said that the impending price hikes would be much lesser than that of the January price revision.

Meanwhile, Director Finance, Shell Gas Company, Rimoe Saldin told The Sunday Leader that Shell Gas too has made an application to the CAA according to the pricing formula but declined to comment on the decision.

 "Since Shell does not know the CAA decision I am not in a position to comment on domestic gas prices. I  could comment by the end of this week, once we hear from  CAA," added Saldin.

Escalation of violence could effect half a million people in 2008 - UN

By Amantha Perera

The escalation of attacks and clashes between government forces and the Tigers could effect as much as half a million people within this year, the latest assessment report prepared by the UN country team in Colombo said.

"The document calls for a preparedness level for up to 500,000 conflict-affected individuals comprising IDPs, returnees and economically-affected persons," the Common Humanitarian Action Plan (CHAP) report compiled by the Inter Agency Standing Committee (IASC) country team and released on February 22 said.

The report said that the UN and other agencies require an additional US$ 145 million for projects proposed in consultation with the government. "The funding requirements for 105 projects (proposed by 25 non-governmental organisations (NGOs), 12 UN agencies, and the International Organisation for Migration [IOM]) total US$ 175.4 million, out of which $29.2 million has already been committed." A fortnight back the World Food Programme said that it required US$ 44 million to keep its Protracted Relief and Recovery Operation (PRRO) that provides food to close to a million in the north east functioning without a breakdown. The CHAP report said that fighting in 2007 had displaced 308,000 and said that there were fears of similar displacements this year.

"While it is hoped that a political settlement can be found to end the conflict in the coming months, the CHAP is based on the planning assumption that there will be significant returns during 2008, alongside displacements similar in scale to those in 2007," it said.

"In the latter part of 2007, as the conflict affected more of Sri Lanka's northern districts, the risks increased for IDPs and other conflict-affected groups in those areas. The CHAP is based on the assumption that as the Government acts on its stated intention to disarm the Liberation Tigers of Tamil Eelam (LTTE), the conflict in Sri Lanka will continue and intensify, and even if it were to slow down or end during the year, there would remain very significant humanitarian needs to be met in the areas of conflict," the report added.