Dr Harsha De Silva MP speaking to The Sunday Leader

The principal opposition spokesperson on the economy, Dr Harsha De Silva (UNP MP) maintained that he is “not an economic hit man” whilst acknowledging that he is perhaps the principal outspoken Opposition Member speaking out about the economic ills the country is facing.
Dr Harsha De Silva, speaking to The Sunday Leader was of the view that the government was finding it impossible to maintain the rupee at the rate they would like it to be. The Rupee was held around the Rs 109 mark for a rather long time in a show of stability. It was Dr De Silva’s view that the Treasury Secretary ‘upset the apple cart’ by devaluing the rupee on the day of the budget. The Governor of the Central Bank maintained then that it was a one off devaluation and that the rupee would be maintained at around Rs 114. However policy measures taken to handle the currency including the plan to sell down the US dollar currency in reserves resulted in the shrinking of the rupee in the market place resulting in higher interest rates. This impacted on growth which slowed down, job creation becomes difficult and in answer to that Dr De Silva maintained that the Central Bank undertook a programme of ‘sterilization’ – mainly by increasing of the Central Bank holding of Treasury Bills. If this methodology was introduced when there was a run on the currency then it is a measure that would work – but it would not work when there was clearly a fundamental economic issue, was the UNP’s de-facto chief economists’ view.
“The fundamental problem was that Sri Lanka was not exporting enough. The shocking revelation is that Sri Lanka used to export about 38% of its GDP 10 years ago, now it is only around 18%. What we are seeing is that the focus has shifted away from exports. You see it on the ground as well. There is no surge in export orientated businesses. Focus has been more on construction projects, contracts where there is lot of quick money to be made”. Investors, Dr De Silva said, have also looked at easy avenues to making money. “Export expansion has taken a hit due to the withdrawl of the GSP+ facility, the slowdown in the growth of the Euro zone, the developed world in general and the uncompetitive over valued currency. The other ways of bringing in foreign currency is FDI. That has been sorely lacking. These indicate a fundamental problem in the economy which cannot be fixed by manipulating the currency. This is a fundamental problem and you can ask any economist and this is the answer that you will find.”
Speaking openly about the Central Bank Governor’s view that the currency is being hit by ‘economic hit men’ Dr De Silva was of the view that the sliding currency had nought to do with the pronouncements of so-called ‘economic hit men’.
“The Governor maintains that we do not see the value of the infra structure development the government is undertaking. It is not quite like that – we value these developments but it is the costs, so astronomically high, that is the part we do not agree with. Hardly any of these projects are tendered for and mainly given to Chinese companies under undisclosed terms. Some investments simply do not make sense.” The airport in Mattala, the Lotus Tower, Mihin Lanka and the Convention Centre in Hambantota were cited by Dr De Silva. He questioned the logic of reclaiming 500 acres of the Ocean in Galle Face for a F1 track and a Golf Course. “Some projects are good yes, others bad but the cost structure is not transparent. The funding mechanism is also ‘not optimum”.
“The government,” Dr De Silva maintained, “is of the view that the government has taken on itself to fund these projects as opposed to public private partnerships.” Dr De Silva bemoaned the fact that whereas in India airports are funded by the private sector, in Sri Lanka the government has taken it on itself but with highly expensive borrowed money, mainly from China. “This is not the optimum methodology. The government must open up certain sectors to private sector participation to fund sustainable infra structure development.”
Dr De Silva did not envisage a return to lower Dollar Rupee rates any time soon. He stressed the need to address fundamental economic issues as opposed to manipulative measures.
Turning his attention to the investments being made in the Tourism sector, the American qualified Economist said it was “best if the government stayed out of this area. Tourism has always been driven by the private sector and they had done well. It was best that it was kept that way. The Tourism Authority appears to be in complete disarray. We were the Small Miracle, then there appears to be no tag line. There must be a cohesive approach to promoting tourism. A number of issues need addressing like the granting of land. There was a need to go through powerful politicians to get land or else there was little chance,” charged Dr De Silva.
“I think the government should lay down the guidelines, regulate, promote and not interfere with the industry. The depreciation of the rupee will have a positive impact on the industry but the Eurozone recession will have a negative impact. We are told that big names are coming but we have not seen them. Shangrila under the Strategic Development Act (SDA) must complete by 2014. It is interesting to see if they don’t complete by then would the Expropriation Act then kick in if Shangrila does not complete by then? Unlike before the SDA has parliament approved performance targets. Therefore what we can see is that there is confusion. It is the same Ministry, the same people who are bringing in contradictory laws. Perhaps this is why larger investors have not come to Sri Lanka,” questioned Dr De Silva.
Challenged about his views on the EPF investments where Dr De Silva maintains that there are huge losses – Rs 12 Billion – and reminded that these were in fact ‘unrealised losses’ Dr De Silva responded by saying that the Opposition has an obligation to the people of this country to track these events. “The Central Bank is merely the custodian of the people’s savings of the private sector. It has nothing to do with a person or two but everything to do with the retirement monies of the working people of the country. “My critical comments on this issue started in mid-2010 when the market was beginning to boom. My interventions or pronouncements has been since then it is not a new phenomenon and it is incorrect to say that I am trying to make political mileage just because the market is down. The issue is whether we are doing the right thing or not. For instance there is an Investment Policy clearly setting out the guidelines in what one can or cannot invest in. Bank shares are prohibited from this.”
Dr De Silva was reminded that the Central Bank has maintained that the rules had been changed. Asked why the Opposition had not found out, Dr De Silva maintained that “the rules as far as we know are not changed”. We asked him if he thought that the government was ‘lying’. Dr De Silva responded by saying “I don’t want to say that but let us say that we are all confused. If it was changed then why was the market not openly told about it? We are talking of a Trillion Rupee investment fund. Very mysteriously the changes they say was changed in 2009. No reference made in their reports in 2009 or 2010. But they say it was changed in 2012. That is mysterious, many pronouncements and statements were made but no mention of this!” Dr De Silva questioned whether an opinion was sought between 2009 and 2011 from the Attorney General for any justification in those changes. According to Dr Amunugama, the EPF has Rs 61 Billion in the market, all belonging to the people for their retirement. The document highlights the cumulative losses as being Rs 12 Billion.
Dr De Silva stressed that they had no issue with the EPF investing in the stock market but it was the ignoring of the fundamental rules that was the real problem. The continuous ignoring of the guidelines is the problem – the impunity with which they carry these out is the worrying part. “My issue is their breaking the set investment policies. They are investing in banks, non-blue chips and the non main board. There is a right way and a wrong way. The Monetary Board is responsible for breaking the rules. We must be told as to who made those decisions and why and on what basis. The NSB TFC deal was nothing compared to the Laugfs or Grain Elevators transaction. I am criticizing them for making investments in ‘not so sound companies’ – breaking the set investment policies.”
Dr De Silva maintained that he was no ‘economic hit man’ but that he definitely was the Messenger, highlighting the fundamental flaws in the various policies of the Monetary Board. In an extensive chat on the economy Dr De Silva maintained that a future UNP government would have a professional Central Banker at the helm of the Central Bank, a position he maintained he would not seek himself.

A cheer squad pwerforming at the recent inaugaration of Sri Lanka Premier League Twenty20 Cricket.

Indian business enterprises showed keen interest in the inaugural edition of the Sri Lanka Premier League (SLPL) and bought all the seven contesting franchises on offer, even as the BCCI decided not to allow its players to participate in the Twenty20 league.
Last year too the Indian Cricket Board (BCCI) had prohibited its players from participating in the league, which forced the Sri Lanka Cricket authority (SLC) to abort the opening season of the SLPL.
While Wadhawan Holdings shelled out the highest bid — $5.02 million — for Wayamba, Number One Sports Consulting offered a bid of $4.98 million for Kandurata.
The Uva and Ruhuna went to Success Sports and Pearl Overseas respectively for an amount of $4.6 million.
Basnahira was bought by Indian Cricket Dundee at $4.33 million, while Uthura at $3.4 million went to Rudra Sports.
Varun Beverages, meanwhile, spent $3.22 million for Nagenahira.
The prices of the franchises represent a substantial increase over the cost of teams in the Bangladesh Premier League, where six teams were sold for $6.49 million, with none of them going for much more than the base price of $1 million. However, the figures still pale in comparison to the IPL, which had its first eight teams bring in $723 million.
One crucial difference between the SLPL and the IPL is that the teams have only been leased for an initial period of seven years and not sold outright. At the end of the period, the franchisees will need to sign a fresh agreement but will have the first right of refusal. The reserve price for the franchises had been set at $3 million.
In order to determine the teams, the franchises will take part in the player draft, to be held on July 5 and 6. A lottery will be held to determine the order in which players are picked. SLC will determine the value of the contract for each player in advance and the franchises will be made aware of the cost of the player.
The players are likely to be drafted in two groups – the first consisting of players from Sri Lanka and the second all the foreign players. The draft is being seen as the best way to ensure that players are evenly distributed among the teams, making it a level playing field.
The franchises will be allowed a maximum of 18 players, including six foreign cricketers, for registration. However, a team can play only two foreigners in the playing eleven which must also include a Sri Lanka Under 23 player.
The SLPL was supposed to kick off last year. However, the Sri Lankan board was forced to postpone the tournament after the BCCI refused to allow its players to participate at the last minute, causing a delay in the naming of the final composition of the teams and affecting overall preparations for the event.
In addition, SLC’s interim committee that signed the deal was subsequently replaced and there was criticism of some of the clauses in the contract with Somerset Entertainment Ventures by the parliamentary Committee on Public Enterprises (COPE). A new contract was subsequently signed earlier this year.
The debut edition of the SLPL is scheduled to commence on August 10, with the final to be held on August 31. There will be 24 games in total, split between Colombo and Kandy, Pallekele Stadium.

By Faraz Shauketaly

Harry Jayawardena

Controversial Sri Lankan businessman, Harry Jayawardena faces the prospect of appearing before magistrates in Colombo along with other Directors of Melstacorp Limited – one of many Harry Jayawardena associated companies. The billionaire businessman and others are charged by the Securities and Exchange Commission (SEC) over non-compliance in connection with the transfer of shares in Lanka Milk Foods to Melstacorp.
The SEC have filed action in the Fort Magistrates Court in case number S/74140/2012 and named 10 respondents including Melstacorp Limited, Don Harold Stassen Jayawardena and eight others all of Norris Canal Road, Colombo 10. The allegation is that having triggered off the Takeovers and Mergers Code the company and its officers failed to fully comply under those terms.
Melstacorp Limited however dispute that the Code was ever triggered off pointing out that Lanka Milk Foods was within the control of Milford Exports Ceylon Limited since 1991 – a full four years prior to the Takeovers and Mergers Code was passed into law. All the non-Independent Directors of Melstacorp Limited have been the nominees of Milford Exports Ceylon Limited. Milford Exports is the managing shareholder of DCSL (Distilleries Company of Sri Lanka).
The action arises out of virtually an ‘own goal’ when an officer of Melstacorp had informed the SEC – erroneously as it is now claimed – that the Takeovers & Mergers Code had been triggered by two recent transactions. Amongst these transactions were the transfer by DCSL of shares it owned in Beruwela Beach Hotels, Balangoda Plantations Plc and Madulsima Plantations Plc to Melstacorp in an apparent move to consolidate Harry Jayewardene’s entities under one entity. It is expected that Harry Jayawardena will then list Melstacorp as a holding company on the Colombo Stock Exchange.
Melstacorp have already got a matter pending in the Court of Appeal in matters related to the mandatory takeover. Sources close to the Securities & Exchange Commission stated that the SEC appears to have ‘jumped the gun’ by bringing in this action whilst matters were pending in the Court of Appeal.  However a legal source says, “it is very well permitted to have a parallel case going on in a lower Court – It depends on the circumstances and there are a number of precedents.”
Melstacorp line of argument is that there has been no change in the management control of Lanka Milk Foods since 1991 and that the transfer of shares is by the same (related) parties who are in effect the controlling shareholders; the question of triggering off a mandatory bid does not arise. They further argue that it was an erroneous notification sent by an officer of their own company that has caused this matter to arise.
Melstacorp further clarified that the Independent Directors of the company would not necessarily be aware of these transactions as they were routine in nature.
(faraz@thesundayleader.lk)

By
Faraz
Shauketaly

After the war three years ago there was an amazing sense of euphoria in the country and the eyes of the world were on us. Various article appeared in the international press such as the New York Times, Conde Nast and many others outlining the amazing prospects of Sri Lanka. The country too soon after the war coined itself as the ‘Wonder of Asia’ and seemed to have envisioned a path of prosperity. Infrastructure was planned and achieved to large extent i.e. the Southern Highway and airports, etc.
The country geared for the first time to a hub economy from a traditional agriculture economy, a Ministry of Economic Development rose like a phoenix from the ashes with all the important ministries gloriously packed in a gift box of candies so that they could melt together and coordinate each other to be an effective efficient body, to spearhead development the country and people so rightly deserve after a 33-year-old bloody war!!!
Alas it was not meant to be, once again the bureaucratic quagmire won the day and with petty differences, bureaucratic apathy, egos the size of jumbos, arrogance and the frills accompanying failure lifted its massive head. Policy infrastructure turned towards attack mode with policies such as the private pension bill and appropriation bill designed with very little consultation took centre stage – much to the consternation of the Maha Janathawa.
The world’s best stock market was taken to the lowest depths by a group of highway robbers. At the end no one could make money;  The wonder of Asia was taking the shape of a blunder of Asia!
As the saying goes people don’t plan to fail, they fail to plan!
With all these came the view from the Treasury that uncoordinated efforts by institutions was one of the main reasons – among many – if not the principle reason for the delay in economic development. A seemingly good intention – of kick starting development – has been stymied by a collection of decisions and the scenario where we saw an apparent ‘difference of opinion’ between Chairmen and Ministerial officials in more than one body. One corner blames the economic ills at the Treasury Secretary, another at the governments’ policy and yet others blame what they term the ‘all pervading corruption’ and nepotism. Dr Jayasundera for his part maintains that Chairmen must work within the terms of their reference and that serving government is by ‘necessity governed by a set of rules’ so that transparency is established and maintained. In the meantime of course the people still await some gratitude for enduring the ills of war! This can only be given by economic prosperity. It is almost the raison d’etre for the people of Sri Lanka to carry on.

Where have all the Malls Gone?
After the first post war budget the citizens of this country expected massive shopping malls as promised in the budget as a Mall City to emerge with the rising tourist numbers. Three years and many tears and no malls has given rise to the possibility that dwarfs could have built a mall in Timbuktu! Sri Lanka appears to have slowed down considerably and appears to have lost sight of the way forward.
Everyone expected tourism to grow not only during the season but even off season to have a more sustainable and long lasting income base from the industry. However claims that CESS and the Tourism Development Levy (TDL) funds are not spent adequately to market the country have been making the rounds. In a change of questionable strategy tourism offices in Berlin, London and Paris have been closed down. The BOI appears toothless and despite the powers bestowed upon it, has no bite. An Acting Chairman does not bode well but Sri Lanka expects a far better and fast-tracked arrangement at the BOI – the principal place and overtly so – for foreign investors to get started. The role of the BOI is almost nullified and appears to serve a role that an Essex girl would know about.
Policy infrastructure is still being thought of when the examples are prevalent around us within the economies of countries we compete with. Hence it is important to note that though Sri Lanka has all the right to design our own unique policies it needs to design policies that it can compete with. Our resources do not extend to cheap labour, or industry factor costs, neither does the country have a large population with a high per capita income nor does Serendib have massive deposits of natural assets at present to attract FDI. Sri Lanka does have something unique: its geographical location and our closeness to India and its 1 billion people. Clearly therefore for Sri Lanka to have unique policies as opposed to the ‘copy paste’ method is rather limited.
The regional landscape changes regularly and opportunities emerge thereby ‘host’ economies must be on their toes. Myanmar and other economies will soon share the limited investments coming into the region making it even harder to ‘fight for the FDI pie’.

HOPE
Should we just sit around a fire and sing freedom songs?
The title of The Audacity of Hope by Barack Obama (one time Senator now President, USA) was derived from a sermon delivered by Obama’s former pastor, Jeremiah Wright
In his speech addressing the Democratic National Convention in 2004, Obama said: “In the end, that’s what this election is about. Do we participate in a politics of cynicism or a politics of hope? John Kerry calls on us to hope. John Edwards calls on us to hope. I’m not talking about blind optimism here — the almost wilful ignorance that thinks unemployment will go away if we just don’t talk about it, or the health care crisis will solve itself if we just ignore it.
No, I’m talking about something more substantial. It’s the hope of slaves sitting around a fire singing freedom songs; the hope of immigrants setting out for distant shores; the hope of a young naval lieutenant bravely patrolling the Mekong Delta; the hope of a millworker’s son who dares to defy the odds; the hope of a skinny kid with a funny name who believes that America has a place for him, too.
Hope in the face of difficulty. Hope in the face of uncertainty. The audacity of hope!”.

President District 3220 Doulat Kundanmal receives the special award for the `Most Courageous President’ from District Governor, Gehan Siribaddana.

President of District 3220, Rotarian Doulat Kundanmal was honoured with a special award – the ‘Most Courageous President 2011-12’ at a recent ceremony in Colombo. This special award, which recognises Kundanmal’s unique contribution and determination, and is a first for Sri. Lanka Rotarians, was presented at the 22nd District Assembly by Rotary District Governor, Gehan Siribaddana, who extolled the recipient’s many years of service.
This new award, which raises the bar in terms of service and contribution, is yet another yardstick introduced by Rotary to honour the contribution and stellar work of notable Rotarians across the island.
Rotary Club of Colombo West has a rich tradition of producing some of the finest Rotarians of note, including immediate past President Pradeep Amirthanayagam, who was voted `Best Rotary Club President’ during his tenure as President of district 3220 for the year 2011-12.
RI District 3220 now consists of 58 clubs with a membership of 1,612 Rotarians, 1,500 Rotaractors and some 2,500 Interactors across Sri Lanka. Actively engaged in a series of community service projects. RI District, 3220 continue to focus on providing priority focus on water and sanitation, literacy and education, new generations, mother and child health care and peaceand conflict resolution/prevention.

Economists and opposition legislators recently drew parallels between some unsuccessful nations and Sri Lanka, which was recently ranked among a few other countries with an economic risk score of 8 and an industry risk score of 7, which puts it in a ‘very high risk’ assessment of economic resilience and a credit risk, and a ‘high risk’ valuation of economic imbalance according to Standards & Poor’s.
Sri Lanka, which is listed along with Nigeria, Tunisia, and Kazakhstan “is at the verge of collapse and problems are aggravating,” according to United National Party (UNP) Member of Parliament Dr. Harsha de Silva, who challenged the Rajapaksa regime and the Central Bank of Sri Lanka “to take full responsibility before things turn worse” and the fact that “Government can no longer fool the people as the cat is out of the bag.”
According to S&P, Sri Lanka’s economic imbalances can aggravate further if the credit growth continues at the current pace and the external position, which is considered to be moderately vulnerable, also worsens.
“Our assessment of Sri Lanka’s external position reflects the country’s weak external liquidity, and moderately high and increasing external debt. Moreover, we see a potential conflict of interest in the Central Bank’s role. In addition to policy formulation and supervision of banks, the monetary board of the Central bank also overseas Employee’s Provident Fund investments,” stated S&P.
However, the Central Bank noted the S&P ratings and the related comments on the Banking System are “factually incorrect, illogically analyzed, and is highly contradictory” adding that the Banking system is performing soundly and resilient. This fact is further justified with the performance of the banking industry improving over the past few years. According to the Bank, key financial soundness indicators of the banking sector, which accounts for 55 per cent of financial system assets, were and still are maintained at healthy levels.
“The Key Financial Indicators display a conspicuous improvement in the gross non performing advances ratio (NPA) from 5.2 per cent in 2007 to 3.8 per cent in 2011 with absolute volumes of NPA indicating only a relatively lower growth of 25 per cent in comparison to the overall credit growth of 69 per cent, during this period. This evidence is contrary to the comment on the existence of a ‘weak payment culture’. The capital base of the banking sector has increased nearly two fold since 2007 with the introduction of the Basel 2 capital standards and enhanced minimum capital requirement for banks. Profitability of the banking sector, which has continuously been on an upward trend, has further reinforced the levels of capital. These factors have contributed to the improvement in capital adequacy ratios despite the significant growth in banking assets. It is pertinent to note that the core capital ratio and total capital ratio of 5 per cent and 10 per cent, respectively, imposed by the Central Bank are more stringent than the international standards,” the bank claimed.
Meanwhile, Leader of the Opposition and the UNP, Ranil Wickremasinghe making a statement in Parliament raised concerns about the Employees’ Provident Fund (EPF) and Employees Trust Fund (ETF) and the involvement of the Central Bank as stated in the S&P report. “Full details of the investments made by these funds are not available to Parliament or its members In view of the media reports by the financial agencies and the reaction of Financial and Trade Union sectors it is imperative that the Parliament takes action to fulfill its obligations.
Otherwise we may be found fault for not exercising proper oversight in regard to these Funds. Inactivity on the part of this House will not be excused specially after the NSB scandal. Therefore this House requires details of all the transactions of the two Funds to make a considered decision regarding the truth or otherwise of these allegations and further action if any to secure the Funds.
“The Government has an obligation to this House to make available all the information required by the House to make its own determination on this matter. Not only the Ministers, even the Officials have a duty to keep the House informed of all the information required and give truthful answers.
“Article 4 (a) of the Constitution have vested this House with the powers to ensure compliance.
These two Funds and the Central Bank come under the Ministry of Finance. In these circumstances I request this Government to inform the House of the present position of the investments made by the Funds by tabling a detailed statement in the format given below of all EPF and ETF share purchases from 01 January 2010 to 30 April 2012 (inclusive) certified by the Secretary to the Ministry of Finance who is the Chief Accounting Officer of the Ministry under which the EPF and ETF operate,” said Leader of the Opposition, Wickremasinghe.
Minister of International Monetary Co-operation Sarath Amunugama who turned down the request for details stated that, “disclosure of such information has been considered detrimental to EPF’s investment team operation, and consequently to its members.”

Recently reading though some international reports I came across a description of the extreme high pressure atmosphere at the highest decision making levels of the US administration just prior to the commando raid on Osama Bin Laden’s hideout in Abbottabad, Pakistan.  Only a very few in the administration were aware of the intelligence which pointed to the largish compound near a Pakistani military complex as the probable hiding place of the most wanted terrorist in the world. The US had been combing that region of the world for him for nearly ten years. Getting Bin Laden would be an invaluable breakthrough for the US government.
The fact is that until the American commandoes burst in to the upstair bedroom where Bin laden was hiding, they weren’t certain who their quarry was. Between August 2010 and April 2011 more than 40 intelligence reviews were carried out on the Abbottabad compound.
Yet the administration was only able to surmise that there was a good probability of a high value target taking shelter there. And in the event of a raid, the high risk operation was being carried out in a third country which was only a nominal ally. In the circumstances the sensitivity of the information coming in to the controlling room of the whole operation could not be over emphasized. On the decision to launch the operation, President Obama was ‘betting his Presidency’. A failure or a mistaken identity would have been something from which the Obama Presidency would not have recovered easily. In the eyes of history he would become a matter of laughter.
Other than the President, those who were eventually privy to the highly sensitive information were just a handful. Among those was Hilary Clinton, his Secretary of State. As we know Obama overcame Hilary Clinton in a bruising battle for the Democratic Party nominations. Her husband Bill Clinton is a towering figure in the Democratic Party, having been a two term President. The subsequent nomination of Mrs. Clinton to the post of Secretary of State by Obama and her acceptance thereof were acts of high political idealism. Having accepted the vital post, Mrs. Hilary Clinton has served her country with admirable dedication. Such is her professionalism that she did not share any of the mouth watering details of the impending operation even with her husband Bill Clinton, the two times President of the United States. It was left to President Barrack Obama to break the news to the two ex-Presidents Bill Clinton and George Bush, who he called first after the successful commando operation.
We don’t know whether either the Clinton or Obama children are interested in politics. Despite the sterling careers of their parents the chances are that the children of these parents would not go that way.
In Sri Lanka on the other hand, we have many families who are apparently bitten by the bug to ‘serve their country and the people’. Some of them have been in the business of ‘serving’ the people for three generations now. These people are very recognizable. Generally, their choice of dress is a silky kurta top, at least for public events, and preferred colour white, apparently signifying purity.
One cannot mistake them on the road for they go about in speeding convoys which give the impression of significant matters, which cannot be delayed for a single moment, awaiting them. So the pilot cars and motorcycles clear the way with blinking lights and rude waving of hands. They alight from their limousines with an air of humbleness as if suggesting ‘how high we are and yet we mingle with you common folk, aren’t you blessed to have leaders such as us?’
We don’t have a single instance of any of these political families doing badly financially due to them serving the people day and night. On the contrary many of them have become very rich families while serving the people. Politics has become a definite way of elite formation. But unlike other paths to that status, the politician does not reach that due to his learning, exceptional skills or admirable qualities. The political culture that has evolved in this country is somewhat like the Mafia cult. To do well in that labyrinth of human garbage different skills are needed which situation suits our politicians very well.
In this county you can be sure that almost all relatives of the politician will be ensconced in employment at various public bodies. They may also serve in private institutions such as director boards of banks as the representatives of government controlled funds. If you look at a family like that of President Mahinda Rajapaksa almost every person connected to him in a family sense will be drawing an income from a public body. Some are elected, some appointed. Even the Chairman of SriLankan Airlines, which is a huge loss maker, is said to be a close relative. It is sad, but nevertheless a social phenomenon we cannot ignore.
Many of the Provincial Councilors today are children of parliamentarians. It was said during the period when Mrs. Sirima Bandaranaike was Prime Minister (1970-77) that the government structure represented a family tree. Today it has become a family plantation. Every tree, every branch, every bush and even a blade of grass have a family connection.
Ultimately, such ethics and mores is a matter for the people to decide. Recently we had the situation where the head of the Tourism Board was forced out of office for various reasons such as not submitting a corporate plan, etc. For sure these are very important requirements at that level of corporate responsibility, particularly with public funds. However in the context of our present power structure it is relevant that the man was not a son or a direct relative of a politician as far as we are aware. Would the Treasury Secretary or any other regulator be so lion like in insisting on compliance if the office bearer was a son of a politician? When they spend public money who will ask them to account for it?
We can be sure that the question of family monopoly or abuse of power by the family will never be put to the people by the political parties in that manner because both sides will have similar values when it comes to looking after family interests first. Although periodically people go to vote lamb like, everything else is decided before hand, in a top down process.
The people really do not have a say in such matters. The issues put before the people most likely will be such things as the price of a gas cylinder or the question of who is more patriotic, an absurdity.
When we compare the situation that prevails in developed democracies with countries like us with much weaker institutional integrity, it is a tale of two cities or to be more precise a case of two different sets of family values.