Coordinator of the UNP’s trade union, the Jathika Sevaka Sangamaya, parliamentarian Ravi Karunanayake says that the strike action called by hundreds of trade unions on the 21st demanding the withdrawal of the electricity tariff hike would be a success since it is done by the people for the people. He observed that everybody is fully motivated in taking the message to the people and they would take to the streets until the government is defeated. “This government is trying to collect money from the people for inefficiency, incompetence, irregularities and corruption,” Karunanayake said, adding that the agitation campaign would continue until a good governance system is established in the country.

Following are excerpts of the interview:

Q: What role will the UNP and its trade unions play at the strike that has been called on the 21st?
A: The UNP is on the move and there’s no looking back. Radical changes for the party were mentioned on December 2, 2012 and we are now working according to it. With that we have awakened, thrown away our slumber and are moving forward. So whether it is the party or the JSS, every single person has to work now. All this was fully demonstrated in the protest that was held on the 15th and the strike that will take place on the 21st. We will show that a government that tries to steamroll their will on the people will not be allowed to do so.

Q: Do you believe that the nation-wide strike action would be a success?
A: It has to be a success. This is done by the people for the people. We are political parties interceding on the requirement of the people and coming out against the terror of the government that is justifying every illegal act they want to achieve for their ulterior motives. The electricity tariff hike is unwarranted, unfair and should be eliminated, not reduced.

Q: How does the UNP plan to continue with the campaign to get the electricity tariff hike withdrawn?
A: First of all, we have shed the unnecessary element of doubt that existed in some people and we have got them to realize of the necessity for change. Everybody is fully motivated in taking the message to the people and will take to the streets until this government is sent home. The issue over the electricity bill was a fantastic uniting factor where all different shades of political beliefs were made to work together to achieve a difficult task for the people.

Q: Will the UNP continue to struggle for people’s rights as a joint front with the JVP?
A: We have always been doing it. Our situation would have been looked at differently, but we have always been voicing our dissent against the government’s anti-people and anti-democratic actions. We will stand with anybody and everybody to protect this on behalf of the people. We have seen enough nonsense going on and now it is time to call for a stop.

Q: Governing party supporters have criticized the UNP saying it’s responsible for the current crisis at the CEB. How do you respond?
A: It is a baseless, misrepresented statement which is a convenient excuse to put the blame on the UNP. In 1995 when the UNP lost power and handed over the CEB, it had a Rs. 1,900 million reserve and was a highly profit making institution. From then up to now, the institution has lost Rs. 750 billion. Is this the fault of the UNP? It is the act of spineless people who cannot blame the Minister in-charge who conveniently wants to put the blame on the UNP. People like Wimal Weerawansa speak of economic mafias, economic hit men and mafias in ministries instead of saying what the cause of the problem is. At least Wimal Weerawansa is admitting to problems in the government.

Q: There’s also criticism over the joint protests by the UNP-JVP trade unions. What are your views?
A: It would only be the Cabinet and government stooges engaged in such actions because all opposition parties have one common agenda and that is to topple this undemocratic, unethical governance of the UPFA and to bring a decent good governance system in to the country.
So it is not surprising that the government would have its stooges acting in this manner because it infuriates them to see that parties they never through could work together are presently working together.

Q: The CEB has said that it wants a higher tariff hike than the current 16% increase. How do you see this development?
A: For the CEB even a 28% increase won’t be enough, or even a 280% increase for that matter. First of all, this is a mythical exercise of increase in expenditure. When fuel prices came down in the world, this government increased the local prices. So it has artificially increased the cost of production of the CEB. Effectively it should have come down with the decline in world fuel prices. As a result this entire process starts from a wrong notion. This government is trying to collect money from the people for inefficiency, incompetence, irregularities and corruption. Now the government is trying to place a massive loss on the people. The government is getting consumers to pay even for the people who don’t use electricity.

Q: Do you believe that the people could prevail in getting the government to withdraw the tariff hike?
A: I think the message is loud and clear but whether it would get through to the thick hide of the government is to be seen. There’s a financial problem and the government needs to rectify it. The grave irregularities that have gone on has created a huge economic burden on the two state banks – the People’s Bank and the Bank of Ceylon – due to the actions of the CEB and CPC. Even though the message will get communicated, whether they (government) will be able to come out of it is a problem since the IMF and the World Bank are pushing very hard calling on the government to remedy the current crisis if it needs money. These are dictates of the IMF and the World Bank the government is dancing to.

JVP politburo member and head of the National Trade Union Center (NTUC), K. D. Lalkantha says that the strike called on the 21st by the Coordinating Committee for a Joint Trade Union Alliance demanding the withdrawal of electricity tariff increase is a unique campaign where everyone could join. He observed that from putting up a black flag to staying away from activities like daily shopping and other chores, people can decide how they want to join the protest campaign on the 21st. “The government will not stop its unprogressive actions and it is only a broad public struggle that could help the current situation,” Lalkantha said. He added that the joint trade union alliance would continue with the struggle to bring victory to the people.

Following are excerpts of the interview:

Q: How prepared are the trade unions for the nation-wide strike on the 21st?
A: The decision to strike was taken by a group of trade unions including the JSS, NTUC, FUTA and Free Trade Zone (FTZ) unions. The Coordinating Committee for a Joint Trade Union Alliance decided on the strike and wrote a letter to the President on April 29 stating the demand of the trade unions. We said that the working people cannot bear the increased electricity tariffs and to bring back the prices to its formal position. We said other ways of addressing the CEB losses could be considered. We said that the increased electricity tariffs should be withdrawn by May 20 or the trade unions would call for a strike on the 21st. The President’s statement on May Day about the tariffs confused the people. However, on May 5 we wrote to the President saying that the so-called relief provided to the people is a lie and to withdraw the tariff increase without giving ‘relief.’
The NTUC trade unions in the public, private and estate sectors have taken steps to ensure that the strike on the 21st will be a success. We are prepared for the strike. Other trade unions have also taken similar steps. Trade unions that are not connected to us have also been asked to support the strike. Some have said they do not have time to prepare, which is their problem. We will stand by our decision and continue with the strike. The JVP and the UNP have expressed their support for the strike and the TNA said they would get back to us after discussing the matter. We have asked other political parties as well to support the strike. Farmers, three wheeler drivers, bus operators and lawyers have also agreed to support us. The Coordinating Committee has set up committees at district level to make the strike a success island wide.

Q: How do you see the people’s response towards the strike action?
A: Some have telephoned us and extended their support. No one has said anything against the strike. We have made a public request asking them not to use public transport or purchase anything from shops on the 21st and support the strike. A programme like this one has been initiated in order to enable the public also to participate in a national struggle. The JVP commenced a protest campaign carrying torches in Maharagama and it has now spread island wide. On April 24 the party started a campaign to sign a petition and to distribute leaflets. On May 15, trade unions, political parties and civil society held a protest march in Colombo. However, the public does not have the chance to join in most of these campaigns. Nevertheless, people could join the next action on the 21st. People can put up black flags as a mark of protest. Farmers can support by not taking their produce to the economic centers that day, three-wheeler drivers could stay away from work even for a few hours. It is a sacrifice. People can decide how they want to join the protest campaign on the 21st. We have given the leadership now and people have a responsibility to come forward.

Q: The UNP and the JVP seem to be on a joint struggle after many years. Will this continue in future struggles as well?
A: There have been lots of factories that have shut down since the government took over, but the mud slinging factory is hard at work. According to them, the strike on the 21st is a joint action by the JVP and the UNP. I categorically say that this is not an action by the JVP and the UNP. In fact this sort of action should not be limited to such a small area. The decision to strike was taken by the trade unions and it is a public struggle. We as trade unions share the right to speak to any one seeking their support for the public struggle. The UNP and the JVP cannot have any political alliances since the policies of the two parties are completely different. Even in the future, the JVP and the UNP will not join as political entities.

Q: There have been much criticisms by persons affiliated to the government that the JVP does not have any moral right to protest against the electricity tariffs after destroying assets of the CEB during the 1989 insurgency. How do you respond?
A: Let’s speak of what happened in 1987. J. R. Jayewardene’s pro-American foreign policy and the separatist agenda resulted in India invading Sri Lanka. People who speak of foreigners invading us don’t like to say that India also tried to invade us in the 1980s. The Indian air force forcibly entered Sri Lanka’s air space and it is an invasion. JR was then forced to sign an agreement by the Indians. India then brought its forces to the North and East of the country and Sri Lankan forces were limited to the South. JR gave official status to the Indian invasion. In 1818 and 1845 there were insurgencies against foreign invasions and it was the same in 1987. The insurgency was against the invasion and those who knelt before it. The JVP supported the political struggle and the armed struggle was carried out by the Deshapremi Jathika Vyaparaya.

State assets were attacked as part of the struggle to defeat the invasion and the ruler who supported it. They say that we burnt agrarian services centers, but at the time they were military camps behind the agrarian services board. It is similar to the attacks in the North where in some instances schools where LTTE cadres were housed were attacked. There’s nothing wrong in such attacks. Transformers were destroyed since they supplied power to the military camps. All these actions are justifiable when you look at the struggle. ID cards were collected due to security reasons. When the security forces started to surround villages to hunt down people, they could not arrest anyone without identification papers. When you look at history, heroes like Keppetipola and Weera Puran Appu have also attacked state assets. In 1988-89 transformers that powered military camps were destroyed but that cannot take away our right to speak of the CEB and the people’s rights.

Q: The trade unions have called for the withdrawal of the electricity tariff hike. How do you propose the CEB could overcome its current crisis?
A: There’s a clear solution. The government policy is to palm the losses on the people. It is wrong. The policy should be to make institutions efficient and reduce costs. If the government wants to give a good message to the people, it should stop immediately the using of public funds to pay for the electricity bills of government ministers’ houses. Secondly, agreements with the diesel plant owners that have caused these losses to the CEB should be cancelled. The CEB, people and investors should all get a fair treatment through new agreements. The government could go further and take over the private diesel power plants by paying compensation to the owners since the CEB has the know how to operate such plants. It is the problems with the private diesel power plants that have made the CEB purchase thermal power even when reservoirs are full. The government should also renovate the Sapugaskanda oil refinery and increase the capacity of oil refined in the country. This will reduce the spending of money to purchase refined fuel at higher costs. Also, a new refinery should be set up to meet the entire fuel requirement of the country. There would also be an added advantage of producing good quality fertilizer and agro-chemicals as by-products.

Q: The CEB Chairman has reportedly said that the current 16% increase in electricity tariffs is insufficient and that there needs to be a 28% hike. What are your views?
A: The people are now being given the dividends of the failed economic policies of the UNP, Chandrika Bandaranaike Kumaratunge and Mahinda Rajapaksa. It was decided in 1982 to set up a coal power plant but it was not implemented. Japan came forward in 1992 to build a coal plant for the country, but the government did not want it. When Ranil Wickremesinghe took over the government in 2001, the Japanese ambassador in Sri Lanka was summoned and asked to set up two thermal power plants instead. Ranil Wickremesinghe is also responsible for the current crisis. However, the agreements signed by the then government expired in 2007, but this government extended them. They said the power crisis would be resolved with the Norochcholai power plant, but instead an old power plant was imported and fixed causing constant breakdowns. We want to tell the rulers to make institutions efficient and get profits. The easiest way out is to increase tariffs and burden the people. This is an IMF proposal since they have called on the government to resolve the crisis. The current crisis is not a problem of the CEB alone. The devaluing of the rupee and wrong economic policies are all connected to it. The wastage on white elephants like the Mattala airport, the Sooriyawea stadium and the Hambantota port should be stopped.

Q: Do you believe that continuous agitation campaigns would result in the government withdrawing the tariff hike?
A: The government will not stop its unprogressive actions and it is only a broad public struggle that could help the current situation. Some will join the struggle on the 21st and some won’t. However, we will continue with the struggle even after the 21st and work towards getting the support of those who were not part of the struggle on the 21st. If we stop after the 21st, then there’s no way forward for the people. We will continue to struggle to bring victory to the people. Our responsibility is to give leadership to the people. Earlier people said there was no opposition in the country. The trade unions have now given a solution to the people’s problem, and it’s now up to the people to join the struggle.

Q: What action would be taken in the event the government ignored the demand?
A: A government cannot ignore the public. If the government ignores, that is because the public is silent. This struggle is a public struggle and not an individual struggle. We ask the people if they would do their part, if everyone does their part, this government can be defeated and we will prove it from this battle.

Attorney at Law and Central Committee member of the JVP, Sunil Watagala says that people have to use their civil rights to struggle. He observed that since the people have seen how the judiciary has been ignored, the option is for the people to struggle and agitate for their rights. “We want to request the Bar Association to intervene and study the matter to look at the kind of legal action that could be initiated,” Watagala added.

Following are excerpts of the interview:

Q: The electricity tariff issue has posed a great problem to the people. What legal action could be taken by the people?
A: Before speaking of legal action, it is important to say that the government’s actions are similar to a pickpocket where Rs. 1,000 has been robbed from the people and giving back Rs. 25 out of it. The government has stolen money surreptitiously from the public and is trying to publicly give back a paltry sum out of it. People are now facing the brunt of the government’s actions. The issue of the electricity bill is the latest one.

The President has said that he would give a concession to consumers who use up to 95 units in order to allow the consumers of 90 units to have an occasional party. However, the increase from 90 units to 91 units is Rs. 1,065. People using up to 60 units also face this problem. This time around, there were mass protests and the government was forced to take action. Despite the President’s statement, the Public Utilities Commission has said there are practical issues in implementing the President’s pledge. When the President said he would not increase electricity tariffs up to 60 units, the Public Utilities Commission said they could only look at not increasing up to 30 units and that they need to further study the matter.

I don’t think the people are going to tolerate these issues any further. If the government has acted against the Public Utilities Commission and the Electricity Act, there is no obstacle for the people to resort to legal action. We are looking at requesting the Bar Association of Sri Lanka to intervene in this matter. When the Bar Association’s president assumed office, he said that the association would intervene in national issues. The electricity tariff issue has now reached a national level. We want to request the Bar Association to intervene and study the matter to look at the kind of legal action that could be initiated. The Bar Association could help study the matter and take legal action on behalf of the people.

Q: Do you think that legal redress is the only solution to address the electricity tariff hike?
A: No. Looking at the past would give any one a clear impression of the outcome of legal action. The law is not carved in stone. The judiciary is expected to give a fair judgment based on natural justice. There was a court directive issued on local fuel prices. The court directed that fuel be sold at Rs. 100 per liter, but the rulers chose to ignore the verdict. The fuel prices were increased instead. People have less faith in the judiciary since the rulers are ignoring court verdicts. Nevertheless, necessary legal action has to be taken. A case where the legislature ignored the judiciary was when the Court of Appeal summoned the Speaker and legislature, the Speaker announced that the legislature did not have to heed court verdicts. The Speaker and the governing party members of the parliamentary select committee that heard the allegation against the Chief Justice refused to appear before court when the Court of Appeal judge ordered them to come before courts. When the rulers do not heed court verdicts, it becomes an issue about the rule of law and democracy in the country.

Q: There has been a Supreme Court verdict on electricity tariffs given on a case 2006. Can the government ignore a court verdict on electricity tariffs?
A: No, but it is the absurdity of the Constitution that is shown in these actions. The Constitution has placed one person above the law and the rest under it. The Constitution states that the President is exempted from any legal action. Clause 35 of the Constitution has placed one person above the law. It is the executive that gives orders to the Cabinet, which in turn orders the other institutions. Under the current system, it is the people who are defeated while the powerful politicians are powerful.

Q: How do you think the people could prevail in this issue?
A: People can win and people have shown how their power has won struggles. People have seen how the judiciary has been ignored. Therefore, people have to use their civil rights to struggle. When the government tried to introduce a pension scheme for the private sector to pilfer monies in public funds, the employees in Katunayake took to the streets and protested. In a similar manner, people protested against the electricity bill. When there are mass protests the rulers cannot ignore it. This gives hope that the people’s power could prevail. Therefore the only option is to struggle and agitate.
The government boasts of a two-thirds majority in parliament that has been constituted in an illegal manner. It does not reflect the mandate of the people. The two-thirds majority was made by giving perks and privileges to opposition MPs. People now know that the government is committing fraud. We have seen in other countries where leaders have ruled like in our country and how the people have ousted them. We call on the government to listen to the people.

Q: The government is reportedly looking at introducing a 19th Amendment to the Constitution. Do you see a necessity for such a move?
A: Not a Constitutional amendment, but the entire Constitution needs to be re-drafted. There have been 18 amendments passed to the Constitution. So many amendments were not introduced even in the US Constitution during a short period. All these amendments are aimed at continuing with the political power play of the rulers. The executive presidency is destroying the country.
Former President Chandrika Bandaranaike Kumaratunge said she would abolish the executive presidency and Mahinda Rajapaksa also said the same thing. It has now become a family rule, which is why the limit on the number of times a president could hold office was removed. The plan now is to ensure that the entire family holds on to power. The 18th Amendment is aimed at it. Usually when there’s a limit on the number of terms a president could hold office, people start looking at another person during the second term of a Presidency. But in this instance people are scared to support another person due to the fear of losing their perks and privileges. The 18th Amendment is a violation of democratic principles. Ven. Maduluwawe Sobitha Thero has drafted a Constitution abolishing the executive presidency. The UNP is also speaking of drafting a Constitution. A new Constitution should be based on protecting democracy and respecting the law. A discussion should be held with the people and the Constitution should be drafted with the people’s ideas. That is what is needed and it is a challenge before us to draft a new Constitution. The 1978 Constitution has contributed to destroying the country. People must work towards achieving a people’s Constitution.

Q: Do you feel that the government would address the issues faced by the country and people?
A: The government is clearly unable to resolve the issues faced by the country. The government’s actions during the Geneva sessions were a clear indication of this. When there’s a discussion on human rights violations and violations of the rule of law, there was an attack on the Uthayan newspaper. Media personnel and institutions have been attacked and killed. There is no freedom of expression. The issue of the Chief Justice is another instance.
In the Chief Justice’s issue, the Supreme Court and all other courts said the impeachment was illegal, but finally the legitimate Chief Justice was sent home. It showed that the country had failed. After all, the Chief Justice is the fourth citizen of the country. It is hard to believe that such a government could give any relief to the people on anything, leave alone the electricity bill. The government cannot face economic challenges. The development projects initiated in the country are not connected to the economic process. The government has failed with the economy, democracy and the rule of law.

Q: UNP has also spoken of drafting a new Constitution. How do you see this move?
A: They pushed the country into this situation in 1978. They introduced the Prevention of Terrorism Act (PTA) and attacked people’s democracy. I don’t think the UNP could bring a people friendly Constitution in place of the current Constitution. The UNP and the government are two sides of a coin. The government is now implementing the UNP’s Regaining Sri Lanka policies.
The main point is to privatize key sectors. The education sector is now being privatized. The country’s economy is based on the private sector. We are not against the private sector, but people’s rights have been suppressed. We cannot accept the UNP’s move to try and come to power through a new Constitution.
The open economy has shown its failures the world over. Economies that have given priority status to the private sector have failed. Even powerful countries like the US have been unable to pay their workers’ salaries. Socialism is now the option.
A new Constitution would have to focus on it.

UNP Badulla District parliamentarian Harin Fernando says that the government’s move to marginally reduce the electricity tariffs that were increased last month is yet another media gimmick done to divert people’s attention from the issue and to convince that the government is genuine in addressing the people’s issues. He observed that people should not endorse the government that promotes aimless development projects. “What people in this country can do is to stand up for their rights and demand,” Fernando said, adding that the UNP is always prepared to fight along with the people.

Following are excerpts of the interview:

Q: Do you believe that the government has actually provided relief to the people through the recent reduction in electricity tariffs?
A: Not at all! I would personally say that it was yet another media gimmick done to divert people’s attention from the issue and to convince that the government is genuine in trying to support the majority of the poverty stricken individuals in keeping their cost of living in some sort of control. However, it’s interesting to note that although the President on May Day stated that he would reduce the electricity tariffs, it has not been done. It is only the method of calculation that was changed. Therefore it only increased the price and also the slab of which over 60 units will be charged. As a result, a much higher price than was originally decided would be slapped on the consumer. Hence over two thirds of the general population will be subjected to very high electricity prices in the coming months. People are going to realize this situation sooner than later and the government would then have to face the people’s wrath.

Q: What action do you think the people could take to force proper relief from the government?
A: People in this county should force the government not to waste the general public’s funds for unwanted, so-called development projects without any destined aim. It is in fact a deep tragedy to see certain heads of the government living in luxury spending and wasting taxpayers’ monies to fulfill their personal fantasies. Therefore what people should not endorse is the government that promotes this kind of aimless development.

Q: Do you believe that a people’s action could prevail upon the government?
A: To an extent, but a government of this nature could care less for the people’s voice and that alone would bring about their downfall one day. The government will witness this situation when they are facing crunch time. The government can keep avoiding its voters for a while, especially when people vote them aimlessly to win a majority. The government after receiving a majority manipulated its way to distorting the people’s mandate to illegally make for themselves a two-thirds majority in parliament. Once that happens the chances the general public could get involved becomes minimal because it has absolute power to change the policies within the frame. Sadly once an overwhelming majority or power is given, the voters become helpless and have to remain till an election again to show their displeasure. What people in this country can do is to stand up for their rights and demand. However, any strong government feels vulnerable when people take to the streets because it can erode their image, which is the key to their success at elections.

Q: What role is the UNP playing in demanding a withdrawal of the electricity tariff hike?
A: We have currently organized a few demonstrations and supporting a few strikes as a joint opposition and from within the party, all parliamentarians, provincial council or and local government representatives have demanded the government to provide relief. As a party it’s very little we can achieve unless the general public understands the gravity of this situation. It’s a great disaster when it comes to people’s daily expenditure, the electricity tariff hike is going to cause enormous hardships for people since this will have a direct impact to all sectors. All that the UNP can do is to mobilize the people to stand against the unreasonable increase, which is done by the govenrment in order to cover debts and its mismanagement. I believe we the UNP have suggested and explained in various forums how the prices could be reduced and what has to be done. It is also up to the people to come out and join a common struggle to win their rights and relief. The UNP is resolute in its stance of standing by the people and providing them with the leadership to achieve their goals.

Q: There’s now talk of introducing a 19th Amendment to the Constitution. Do you think there’s currently a necessity for a Constitutional amendment?
A: No, it is very clear that the UNP has no faith in the government. This kind of exaggerated amendments are introduced to hoodwink the people to show its genuineness to solve matters. The UNP stance is for the government to first implement the 17 Amendment, which is of utmost necessity for this country, and it’s future. There is no need to introduce amendments when the existing amendments haven’t been even implemented.

Q: In the event the government is looking at a 19th Amendment, what areas do you think it should be focused on?
A: Purely focusing on national integration and reconciliation.  And most importantly, if there is any sincerity in the pledges given prior to election, abolish the executive presidency. Also establishing racial and religious harmony and thereby bringing in strict legal procedures to curtail such extremism.

Q: The UNP has spoken of drafting a new Constitution for the country. What made the UNP decide on such a move? What are the key areas that would be focused in this Constitution?
A: UNP, in my personal thinking, has realized our own mistake in the constitution we introduced. Therefore learning from the past the UNP is now in a better situation or a position to understand the need of the hour and for the future. The key to all is changing the executive presidency, which has caused immense damage to the beautiful nation, which all politicians have taken to their advantage. We need to have a head of state who is answerable to the people and who will be on check. We must remember that power corrupts and absolute power corrupts absolutely. We will also concentrate on a permanent solution to the still lingering ethnic issue that is still prevalent in the country. Also include clauses that ensure transparency in spending public funds.

UNP Colombo District parliamentarian Ravi Karunanayake says the government that promised subsidies and cuts in water and electricity bills is now playing with the future of the people. He noted that the UNP’s demand is nothing else but ensuring no increase in electricity tariffs. “We always said that there was no free meal and it is now evident that somebody has to pay for it and ultimately it is on the people,” Karunanayake said, adding that that it is now evident that this is a government of a few for the benefit of even a fewer people at the expense of the majority.

Following are excerpts of the interview:

Q: What is the UNP’s take on the government’s move to reduce the increased electricity tariffs?
A: This was in the offing since the last budget. It was part of the IMF’s conditions and in short it was aimed the restructuring of state owned enterprises. The losses of the state owned enterprises, especially the CEB and CPC have resulted in the balance sheets of state banks like the Bank of Ceylon and People’s Bank becoming delinquent since they have to fund these loss-making institutions. All these conditions resulted in the IMF rejecting a request made by the government. As at end March, the total public debt stood at Rs. 7,300 billion. The government has now decided to go back to the World Bank and IMF for funding. The UNP was very vocal, focused and determined to show that the government was lying through its teeth. Last year, the CEB loss was Rs. 135 billion and CPC was Rs. 88 billion after doctoring the accounts. The government increased the electricity prices in order to get IMF loans. The President as the head of the government and Cabinet increased the prices. The Rajapaksas and their lackeys approved this increase. The pressure that followed has now made the person who approved the increase to give a discount of 25%. It is similar to robbing Rs. 100 from a person and giving Rs. 25 back and asking the person to be content with it. There’s something more invidious in the matter. When the world oil prices are declining, the local market prices are increased. Out of the local fuel prices, 85% are various tax components. When the oil prices are high, the cost of production of the CEB also increases. The artificial increase in fuel results in high costs on electricity. The government has created a double whopper and is now passing its sins on the people. It is the corruption, wastage and over burdened economy that has resulted in the government burdening the people. Once the electricity prices are increased, the government is trying to make profits all over. Although the government has not increased the tariff between 1.60 units, the cost of living will see an overall increase.

Q: Is the UNP satisfied with the reduced electricity tariffs?
A: Absolutely not. We responsibly say that if the government hoodwinks the people, the UNP if elected to power tomorrow will bring down the price of a liter of oil to Rs. 90 and there would be a 43.5% across the board reduction in electricity prices. It would be an efficiency oriented price that would give decent returns to the government. There were eight hour power cuts in 2001 when the UNP took office, but we managed to address the situation and resolve the crisis. There should be an efficient delivery of promises.

Q: How do you think the government should address the issue of increasing losses of the CEB?
A: The government that promised subsidies and cuts in water and electricity bills is now playing with the future of the people. The government is trying to show that all losses are due to the subsidies. It has added subsidies as losses. We always said that there was no free meal and it is now evident that somebody has to pay for it and ultimately it is on the people. The government is now trying to show that the all price hikes are the price of development. All the armchair critics who supported the government have now awakened and have realised that it is no longer a Bollywood film anymore.

Q: Why do you think the government has failed to address the issue of losses in state institutions, especially the CEB?
A: Rs. 70 billion was invested in the Hambantota Port that does not have any ships calling at it, Rs. 41 billion was spent to build an airport in Mattala that has elephants crossing its tarmac, the Norochcholai power plant has experienced 21 breakdowns in two years and the electricity prices have increased, Rs. 98 billion was spent on the Southern Highway and one year later has incurred only losses. Then there’s SriLankan Airlines that incurs a Rs. 30 billion loss annually while its younger sister, Mihin Lanka loses Rs. 2 billion. All these endeavors have wasted taxpayers’ monies. All these show the gross duplication of capital expenditure. It is similar to a family that earns Rs. 50,000 spending Rs. 500,000. Then finding a way to bridge the deficit is a problem. This government is acting the same way. Amidst world economic chaos, Sri Lanka is coming out as a sore thumb by proving that the economy has become a disaster. This is what the UNP has continuously said. What is important is that it is the national economy.

Q: Will the UNP go ahead with the no-confidence motion against Power and Energy Minister Pavithra Wanniarachchi?
A: Absolutely. The motion was given at the end of the last parliamentary sessions. We stated that the government was on the wrong path of misleading the people. This was shown when Power and Energy Minister Pavithra Wanniarachchi in order to exonerate herself from any blame for the electricity tariff increase blamed her predecessor Champika Ranawaka for the hike. Ranawaka in turn denied and challenged Wanniararchchi to prove her statement. This clearly indicates that there is an attempt to mislead.

Q: Will the UNP continue with its campaign to demand a further reduction in electricity tariffs?
A: Our demand is nothing else but ensuring no increase in electricity tariffs. There would be no need for an increase if there’s no robbing, hedging, over staffing of state institutions and engineering mafia in electricity. The likes of Wimal Weerawansa who could remove the World Bank and IMF plug and couldn’t shut Ban Ki-moon’s mouth with his fast says there’s an economic mafia. Since he cannot blame the Finance Minister who is the President, he is trying to blame the ministry secretary. The government that removed the chief justice in 24 hours could easily remove a ministry secretary is there was such an issue. This government is running with the hare and hunting with the wolf and trying to pull wool over the public’s eyes.

Q: The increase in electricity tariffs saw many political forces fighting for a common cause. Will the UNP work towards making this a more formidable force to continue struggling for relief for the people?
A: We have never divorced the activity of fighting for people, but the people were glossed over by the government that they would be provided with subsidies from womb to tomb. Until this situation was proven wrong, we could not do anything. Every one waited for subsidies for the transport sector and fishermen, pension for farmers and reductions in water and electricity bills. Instead the education sector has been ruined and there’s no free health care. Where are our taxpayer’s monies being spent? They are spent on maintaining the Cabinet of ministers and on the duplication of capital expenditure. It is a lavish and vulgar display of wastage. Now we are willing and able jointly with the people to take to the final element of nothing less than a regime change.

Q: Opposition and UNP Leader Ranil Wickremesinghe has said that the time to plead with the government for relief has now ended. What does this mean for the UNP?
A: We have proven to the people that this is a government of a few for the benefit of even a fewer people at the expense of the majority. It is now time to work for the national interest and people’s interest. There needs to be a joint well organised people’s movement to protect the people’s interest. When the going gets tough, the tough get going.

JVP politburo member and parliamentarian Anura Kumara Dissanayake says the President and the government is trying to mislead the public by saying that the electricity tariffs have been reduced. He blamed the government for the losses incurred by the Ceylon Electricity Board (CEB), which has been attributed for the increase in electricity prices. “The people should not be burdened with an electricity tariff hike due to the faults of the government,” Dissanayake said. “The current government is unable to solve the country’s economic issues or the electricity issue, but that an organised people’s struggle can push back the government,” he added.

Following are excerpts of the interview:

Q: How does the JVP view the President’s decision to reduce the electricity tariffs that were increased last month?
A: It is a complete attempt to mislead the public. The President has said that there would not be any increase up to 60 units, but the so-called reduction in the rest of the areas is quite baffling. He has said that the fuel surcharge would be reduced by 25% in the other areas. The entire concept of the fuel surcharge is faulty in the first place. The fuel surcharge was introduced when the government had to depend more on thermal power due to the decline in hydropower at a time when world oil prices were high. Therefore, the President has now said that he would reduce from an area that is not proper in the first place. The reduction of electricity tariffs is the last act of the drama written by the President on the electricity tariff increase.

Q: How much does the JVP think the government should reduce from the increased tariffs?
A: The electricity tariffs were not increased due to decisions taken by the people. It is said that the electricity tariffs were increased to cover a loss of Rs. 59 billion incurred by the CEB. The reason for this loss is the devaluation of the rupee according to conditions laid down by the IMF. The rupee that was 110 against the dollar fell to 130. Since 60% of the country’s power is generated from fuel and coal, payments for the imports have to be made in dollars. The country has to pay more rupees due to the depreciation of the rupee for these imports. This has resulted in a Rs. 33 billion loss to the CEB. Another area is the agreements signed by the government with independent power producers. The agreements include a capacity charge that the CEB has to pay these companies regardless of whether they purchase power from them or not. Even if the CEB does not purchase electricity from them, they have to pay Rs. 11 billion to these companies.

Therefore, the loss from these two areas is Rs. 44 billion. Also, the government estimated the Kerawalapitiya power plant, which is to produce 300MW, at US$ 225 million. However, when the project was completed, the plant had cost US$ 346 million with a 270MW capacity. The Norochcholai coal power plant also has problems and is constantly broken down. All these have added to the losses incurred by the CEB. It is the government that is responsible for the CEB losses. The people should not be burdened with an electricity tariff hike due to the faults of the government.

Q: The government speaks of losses incurred by the CEB. How do you think the government could address this issue?
A: The rupee should be taken under the control of the Central Bank, the agreements with power producers have to be reassessed and resigned, investigations have to be conducted into the failed projects and the persons involved in corruption and wastage have to be dealt with.

Q: Does the JVP believe that the government would effectively address the issues of CEB losses and the electricity tariff hike?
A: This government cannot solve the issues faced by the economy, leave alone the electricity issue. One thing that is clear is that the government can be pushed back by people’s struggles. The only way to win any demand of the people is to carry out an organised struggle. It is very clear that the Rajapaksa government won’t give anything by feeling sorry for the plight of the people. It is the people who have to struggle and demand for what they need.

Q: What action would the JVP take to counter the increases in electricity tariffs?
A: We will join the people and protest. It was done when the government announced the increase in electricity tariffs. We also carried out an awareness campaign on the real plight of the CEB and who was to be blamed for the situation. Trade unions are now looking at a stern action as a joint force. As a party, we have taken the full responsibility of fighting for the people, but it is up to the people to also join these struggles.

Q: Will the JVP support the no-confidence motion presented by the UNP against Power and Energy Minister Pavithra Wanniarachchi?
A: Pavithra has been made the scapegoat for the President’s actions. We need to be aware of the real situation and the actions of the President. We need to look at whether the UNP had presented this no-confidence motion with the intention of exonerating the President of any wrongdoing while blaming the Minister for the electricity tariff increase.

Q: The increase in electricity tariffs saw all opposition political parties fighting a common battle. Will this be taken forward?
A: The issue of the electricity bill is a short-term one. But there needs to be a long-term solution to address the current issues. There needs to be a change in the current system. There should be a struggle on common slogans. Currently there are various slogans and erratic struggles. All these have to be brought together for a common cause. It should not be for a change in the government or the leadership, but for a change in the system.

Head of the UNP’s Jathika Sevaka Sangamaya (JSS) and parliamentarian Dr Jayalath Jayawardena says the rising cost of living is the result of the sins of the UPFA government that include bribery, corruption and inefficient management of finances. He observed that workers should come out and agitate against the present dictatorial, undemocratic government. “There are so many common areas that all trade unions could come together if genuinely interested in the working people,” Dr Jayawardena said.

Following are excerpts of the interview:

Q: What is the current strength of the trade union wing of the main opposition UNP?
A: President J. R. Jayewardene started the JSS, which is the largest trade union affiliated to the UNP, when he was the Opposition Leader. Later the estate sector trade union was established. I’m the head of the JSS that has representations in the public and private sectors. A majority of the members have been subject to political victimization and harassment. They have been transferred, not granted extensions and promotions. Therefore, we are struggling to protect the membership and their rights. One of our key challenges is to keep members of the JSS and to protest them. I want to hold a membership drive for the JSS. The UNP has been in opposition since 1994 so most people don’t know what has been done by the JSS. We want to do a leaflet of what the JSS has achieved for the workers. The JSS has been responsible for getting some of the key rights of the working people that are enjoyed even today.

Q: How do you view the current position of the working masses in the country?
A: There’s nearly 8.3 million working population in the country. Out of this amount, 1.3 million are employed in the estate sector. There are about 5.5 million in the private sector and the remaining people are mostly self-employed.

Q: What action has the JSS taken to win the rights of the working masses? What are they?
A: All the acts that have been enacted by parliament in relations to workers’ rights have been pushed by the JSS. There are about 10-15 acts that have been passed. Some of the issues that have been pushed by the JSS are the ETF for the private sector employees, gratuity payment, maternity leave, etc.

Q: Workers from all sectors are suffering from the rising cost of living. What action has the JSS initiated?
A: We are not just a trade union we are trying to make sure that all Sri Lankan citizens get a reasonable and affordable income to face the cost of living. We are also aware of the plight of the workers’ children, human rights, fundamental rights and trade unions rights of the people. We also pay attention to the workers’ right to information. As for the cost of living, we feel that it is the result of the sins of the UPFA government that include bribery, corruption and inefficient management of finances. Unfortunately, everything is rallied around one person and one family. According to the Opposition Leader’s vision, we have invited all opposition trade unions to join hands for a struggle to win the rights of the working people and a reasonable salary.

There has been a positive response from a majority of the trade unions. We were able to go to the Supreme Court with 10 recognized trade unions to protect the EPF. Unfortunately, the case was thrown away. But there was no surprise, given the present situation of the judiciary. I don’t believe there’s independence in the judiciary, police, elections and public services commissions. There’s political interference in all sectors. The UPFA government has not taken any action to gazette the cost of living index. If the value of the cost of living unit is gazetted, then some of the workers will be entitled to an increase in their pay. The Finance Ministry and the Labour Ministry are not taking the responsibility for it. The government has not taken the initiative to give the benefits promised even to the public sector.

Q: Do you think that workers could win their rights through agitations?
A: Workers should come out and agitate against the present dictatorial, undemocratic government. We are ready to give the leadership. It should be a united effort of all opposition trade unions. We don’t want any credit. What we want is a well-organized, well-planned agitation led by all opposition, democratic trade unions without any ulterior motives.

Q: Why is the country’s trade union movement so divided?
A: As you know major trade unions are affiliated to political parties. Those parties are not united. Therefore, the trade unions are not united. It is a pathetic situation. Political parties should leave trade unions to take their own decisions. Of course the trade union’s actions should be in line with the vision of the political party, but trade unions should be able to fight together.

Q: What are the common areas that all trade unions could work together?
A: There are so many common areas that all trade unions could come together if genuinely interested in the working people. Everyone can work together to protect democracy, human rights, workers’ rights, good governance, independence of the judiciary, police, public service and the elections commission, depoliticization of the human rights commission and the bribery commission. All trade unions could fight for the right to information for the public of Sri Lanka. They could fight against corruption, wastage, inefficient administration, suppression of rights of trade union leaders and the dictatorial rule in the country. These are common matters that all trade unions could work for.

Q: Do you believe that the trade unions could help win relief for the working people?
A: Definitely. Trade unions have a big role to play and a social responsibility towards civil society. The aims of trade unions are not only to fight for the rights of the workers, but the entire population of the country. For example, the ILO at its 100th session in June 2011 unanimously adopted Charter 109 to protect the rights of migrant workers. Sri Lanka earns over US$ 5 billion annually from migrant workers, mainly from the Middle East. Out of the migrant workers, a majority are females. The present government has given a very attractive name to the migrant workers, “Rata Viruwo.” I ask the government, whether it is really interested in the welfare and protection of migrant workers. Other than Rizana Nafeek, there are many other cases of rape, assault and sexual harassment to our female workers in the Middle East. However, Sri Lanka has not ratified and signed Charter 109. The other Asian country that sends migrant workers to the Middle East, the Philippines, has ratified the Charter. Countries like Mauritius, Uruguay and Italy have also ratified the Charter. This shows the interest the government has on the migrant workers. If Sri Lanka ratifies the convention, our workers will be entitled to protection over physical and mental trauma, have specific working hours, holidays, freedom to keep their passports and travel documents with them and receive salaries according to contracts.

Q: What action has been taken in relation the electricity tariff hike?
A: We have already gone before the Public Utilities Commission (PUC) and made oral and written submissions. Almost 100% of the representations made to the PUC opposed the tariff hike. Professionals and intellectuals who made submissions gave sensible, reasonable, justifiable reasons why the commission should not grant permission to the tariff hike. But the commission ignored them and permitted the tariff hike. The CEB move to increase tariffs is unethical, immoral and unjustifiable. We are aware that there’s no judicial independence, but still there’s no other option other than go before the Supreme Court. The real increase for the tariffs is the corruption and wastage by the government and CEB. The CEB has not given audited accounts to parliament for 2011 and 2012. There’s no accountability. The public should have the right to information. This is why we need media freedom. Media institutions and journalists are targeted. Even private media and institutions are being threatened and forced to fall in line with the government. No media is allowed to criticize Mahinda Rajapaksa and his family.

JVP politburo member and Head of the National Trade Union Center (NTUC), K.D. Lalkantha says that the trade union movement has been able to fight and win the demands of the working people. However, he noted that organized struggle could win and there’s a need to bring all struggles to one broad platform. “We need a programme where there’s a joint trade union struggle to win common demands,” Lalkantha said, adding that such a programme is being planned at the moment.

Following are excerpts of the interview:

Q: How do you see the current situation of the trade union movement in the country?
A: At a time when political parties have been weakened and the person called the Opposition Leader has not done anything to win anything for the people, it is the trade union movement that has been able to fight against the government and win rights for the working people. The government has silenced most people by giving perks and privileges to them, but the trade union movement has been able to still continue with the struggles and we have managed to protect the trade union movement.

Q: Why is the trade union movement divided in the country?
A: The trade union movement has been divided since its inception. It is so in other countries as well. There are trade unions affiliated to the government, which is the Sri Lanka Nidahas Sevaka Sangamaya. Most leaders in this trade union have been appointed to key posts in state institutions and are directors in the boards of such companies. Therefore, they remain silent when the working people are burdened. The UNP has several trade unions the Jathika Sevaka Sangamaya (JSS) and the estate sector union. They are now trying to somewhat commence a struggle to win people’s rights. The Communist Party also has its trade unions. However, most of these trade unions have been silent in the past few years since they are in the government. The NTUC has representations in the public, private and estate sectors and we work separately. Then there are several other separate trade unions and they work independently. Most of these trade unions have political agendas and there are divisions when you work according to these agendas. You cannot win workers’ rights by working according to different agendas and trying to safeguard one’s perks. This is why there’s a division in the trade union movement.

Q: Do you believe that the country’s trade union movement could win rights for the workers?
A: Yes, it has the strength. The trade union movement showed its strength when the government tried to use a pension for the private sector to extort monies from the pension funds. It was the most powerful protest since President Mahinda Rajapaksa assumed office in 2005. The government was brought down to its knees. The struggle against the government’s move to extort monies from the private sector pension scheme was initiated by a considerable number of trade unions. It was a clear indication that an organized struggle could win demands.

Q: The JVP is known to have a strong, active trade union movement. The union has not carried out an effective campaign although there has been a severe increase in the cost of living and people have been continuously burdened. Why?
A: The trade union movement works inside the existing political system. A large number of people in the country had faith in the government. They thought Mahinda Rajapaksa will give them salaries according to the rising cost of living, give a pension scheme to the private sector, give lands to the estate sector workers and the higher education sector and all others thought their issues would be addressed. Due to these reasons a lot of people did not join us when we carried out struggles. But we carried out struggles on our own. But today people say that even after the war has ended, Mahinda Rajapaksa cannot address their problems. People, who thought that Mahinda Rajapaksa could develop the country after winning the war, know that he cannot do so. When we say development is not limited to constructing a road or a building, development should take place economically, politically and socially. When Mahinda Rajapaksa assumed office all these areas had fallen, but now they are in the doldrums. The burdens of the economy that has fallen due to the wrong policies of the government have been placed on the people. The burden of loans taken to develop white elephants has been put on the people. Before constructing the Mattala Airport, the government should have looked at upgrading the country’s oil refinery. Only 30-35% of the oil that is brought to the country is refined locally, the rest of the fuel requirement is imported as refined products at high costs to the people. The country could have saved money if the refinery had been upgraded. The government instead joined hands with the private sector mafia and purchased power from them burdening the people. People are now aware of this situation. They are now committing suicide. Children have started to rob and parents are killing their children. Communalism has increased and there is no unity in the country. People are now looking at the trade union movement for action. Last year we demanded a salary hike of Rs. 13,442.50 and it was because the workers agitated that the government was forced to give at least Rs. 750 in the budget. We have fought and continue to fight for rights of the working people. Apart from the national level agitation campaigns there are continuous struggles in the power, transport, health, port and other sector. There have been no victories to the struggles, but they are on-going. We need a programme where there’s a joint trade union struggle to win common demands.

Q: Are you satisfied with the current actions of the trade union?
A: No. We need a much broader programme. We have continued our struggle and have given leadership to such struggles. The people also have a responsibility to join in these struggles. They cannot just wait expecting someone else to fight their battles. We can give the leadership like we have been doing all this while, but the people also need to support the struggles. We can now point a finger at the people because they are also responsible for the current situation. It is their silence that has led to this situation. When we carried out struggles to win the rights of the working masses, some people even ridiculed us and spoke against us. Today, they have understood their mistake. People need to at least at this late stage come out and support.

Q: The JVP trade unions in the past have successfully challenged successive governments and even won some demands. Do you feel that the situation is still the same?
A: When you take the entire trade union movement, we have a majority of the support. We can carry out some struggles and we have done that. However, we need a joint trade union struggle. University lecturers carried out a strike for 100 days, but if it was a common fight, then the struggle could have been successful. We are struggling to get the minimum salary of the private sector increased, but we haven’t been able to win it. There is also a struggle to get the government to gazette the value of a cost of living index, which is Rs. 280 per unit. A lot of workers both in the public and private sector have been affected due to the non-gazetting of the cost of living index point. There are salary anomalies in the railway sector and Sri Lanka Transport Board employees have not been paid their salaries. The Treasury has allocated monies to pay part of the salaries. So there are struggles that are continuing and that are yet to end in victories. As you can see there are separate struggles and all these should be brought together. A public perception needs to be built on the matter.

Q: What are the common areas that the trade union movement could put forward a united front to win demands?
A: A fair salary for the public sector, increase in the minimum salary of the private sector, a pension scheme for the private sector, lands for estate sector workers, gazetting of the cost of living index and a 6 percent budgetary allocation for the education sector are some of the areas. However, there are much broader areas as well like media freedom. Our messages would not go out if there’s no media freedom, it is therefore essential. There is also the issue of judicial independence. This issue has affected badly on many efforts of the trade unions. The independent commissions also need to be established. All these issues could be taken into account.

Q: How will this united front be formed?
A: The NTUC and other trade unions have agreed in principle to the need to form a broad front to fight for common demands. Trade unions that have worked on diverse views have discussed on the need to form a broad coalition to fight for common causes. This is a positive sign. The JSS and trade unions affiliated to it have discussed of a joint trade union action with the JVP. No one would have earlier believed such a situation could take place. Nevertheless, it has happened. A programme is now being drawn up for the purpose and it will be made public after the May Day.

Q: The JVP trade union last year demanded a Rs. 13,442.50 salary increase before the budget, but is now demanding a salary hike of Rs. 10,463. Has the union given up the previous demand?
A: The Rs. 13,442.50 salary hike was requested before the budget last year for the public sector workers. The government presents the budget and since the public sector is under the government we made the demand based on the cost of living. Private sector salary hikes happen differently. Some institutions grant salary hikes every two to three years while some other increase after reaching agreements between the employer and trade unions. Out of the 6.54 million workforces in the private sector, a majority is not part of any trade union. There are shops and small hotel employees who are also private sector employees that are getting very low salaries. The minimum salary of a private sector worker is Rs. 9,625 while the minimum salary of a public sector worker is a little over Rs. 20,000. There should not be such a disparity. The demand for a Rs. 10,463 is for the private sector employees. Our demand for a salary hike according to the cost of living will continue.

Q: What action does the JVP plan to take against the electricity tariff hike?
A: Electricity tariff hike is not an issue limited to the trade unions. It is problem of all people. Therefore, a broad people’s agitation is needed with the participation with all stakeholders. Salaries are considered an issue of the trade unions, but this is a public issue. There’s a campaign planned by the JVP and the trade unions, but all details cannot be revealed since this is not a democratic state and there’s state suppression.

UNP parliamentarian Ravi Karunanayake says that the proposed 20 percent aid cut by the US to Sri Lanka has come at a time when the country’s economy is in a precarious situation. He observed that Sri Lanka seems to be losing aid from many areas and that it was mostly from the country’s friends. “There have been cuts happening for a while. The country lost the labour GSP and now this,” Karunanayake said, adding that the only remedial action would be for the government to first deliver its promises made to the international community and the people of the country.

Following are excerpts of the interview:

Q: How do you see the 20 percent aid cut by the US to Sri Lanka?
A: The country seems to be losing aid form all areas. There have been cuts happening for a while. The country lost the labour GSP and now this. The world seems to be turning against Sri Lanka. This is of concern and it is the innocent people who are losing the aid. It is important to note that most of the aid that was coming into the country is getting halted.

Q: What impact do you think this aid cut would have on the economy?
A: It is not a significant factor. However, the point is that Sri Lanka is losing the ability to obtain world support.

Q: The government says that the proposed US aid cut would not have a great impact on the country’s economy since the US is not a major donor to Sri Lanka. What are your views?
A: The government has some excuse, but why is the government of Sri Lanka losing aid? It is easy to say we got it and now we are not getting it anymore, but what justification can the government give for such a situation?

Q: How has the loss of EU’s GSP Plus affect the country’s economy?
A: The loss is about US$ 1.2 billion, which is around Rs. 160 billion. This concession was not given as a handout. It was a duty reduction enjoyed by the exporters. However, the loss of the GSP Plus trade concession has made Sri Lankan exporters lose US$ 1.2 billion. Who is going to pay this amount to the exporters now?

Q: The EU’s withdrawal of the GSP Plus facility and the proposed 20 percent aid cut by the US, what more do you think is in store for Sri Lanka?
A: The government’s antagonistic policy towards all Sri Lanka’s friends is now having negative repercussions. You could see that the cuts that are coming are from good friends. The EU and the US are good friends of Sri Lanka. It is a matter of concern. Even when you take Japan, they (the government) went to get US$ 2 billion, but got only US$ 500 million.

Q: How worried should the Sri Lankan government be?
A: It is not the government, but the people who are losing out these opportunities. The government is now going for commercial loans at higher interest rates, pushing the country more into a debt trap. These are facilities that could be obtained as concessionary loans. That is where the concern is. Today there’s a debt trap because the revenue is fast dwindling and the costs are escalating. The result is that the innocent people are going to be the ones to suffer the consequences.

Q: What remedial action can the government take to address the situation?
A: All that needs to be done is to deliver the promises that have been made by the President and the government. There’s no need to go too far. What they have promised should be delivered and that would be a starter.

Q: What is the real state of the country’s economy at present?
A: Precarious. It is only the Central Bank Governor who says that the economy is doing well. All others including the business community are finding it to be a tough situation. Inflation is out of control even though they say it is single digits, reserves are dangerously placed and the balance of payment is in a crisis situation. The country’s revenue is insufficient to pay its debts. Basically you are having an alarming situation.

Q: How different do you think the country’s economy would be under a UNP government?
A: Every single person would confess that there has been an economic boom under every UNP government. Cash and investments come into the country. This was manifested even in 2001 when the UNP took over the government at a time when the country was experiencing a negative growth rate. The UNP managed to get the economy back on track. That’s what the people remember.

President of the Inter Company Employees’ Union (ICEU), Wasantha Samarasinghe says that the people are now feeling the economic crisis faced by the country. He noted that the government has failed to properly administer the economy. “The country’s economy is now defunct and the people are being burdened as a result,” he said, adding that the US proposal to cut 20 percent of its aid to Sri Lanka would have an impact on other countries’ approach to Sri Lanka as well.

Following are excerpts of the interview:

Q: What do you have to say about the current state of the country’s economy?
A: I can’t explain it in one line. It is not easy to say. The country is functioning without any idea of what is going on and what is to be expected. The Cabinet and the persons handling the country’s economy do not have a proper sense. This is a capitalist crisis and Sri Lanka is facing a severe fall in its economy. The country has been pushed into a great debt trap. The production process has declined and the people’s purchasing power has also declined. The capital market is being used to cover state debt. Our country is still not based on a production economy. The economy mostly depends on the farmer’s produce and other businesses for its survival. The government has failed to properly administer the economy. People have to pay more for fuel when the global oil prices are on the decline. The Public Utilities Commission had granted permission for an electricity tariff revision when about 95 percent of the country has opposed it. The country’s economy is now defunct and the people are being burdened as a result. We believe that the crisis is due to the market economy.

Q: Do you think that the people are aware of the real state of the economy?
A: Since 1948, people have appointed governments to free the country from foreigners, but not to bring freedom to themselves. Successive governments since 1948 have handled the economy using different methods. As a result, people are now dressing differently and are using telephones, but the core issues remain unchanged. However, people have been very complacent thinking that is their fate. Nevertheless, I feel that the people are now feeling the economic crisis. The farmers have lost their seed paddy and the market to sell their produce. A kilo of paddy is sold between Rs. 22 and 24, which sometimes doesn’t cover their costs. They have to buy a loaf of bread by selling three kilos of paddy. The working masses, the self-employed and farmers are facing the pressure of the economic downfall. Their responses to the problems have shown their frustrations. The school has become a business institution and so is the health sector. When you go to a state hospital you find that most of the facilities are assigned to the private sector. It is the responsibility of social movements to rally the people and take the issue to the forefront. It is a problem with the current system and that needs to be changed. Given the current situation, it would not be long before the people take to the streets and demand for a change in the system.

Q: What impact do you think the proposed 20 percent aid cut by the US would have on the country’s economy?
A: Various members of the government make different comments. The Cabinet says the economy is well planned and strong, the Central Bank Governor says there’s no problem and the Finance Ministry Secretary says there’s a problem but it could be resolved. Some countries give aid to Sri Lanka while some other give loans and some give monies in both these forms. However, the government’s stances with regard to the economy should be serious. The government thinks that the people are still enjoying the thrill of winning the war in 2009. But the country lost the GSP Plus concession that is valued at US$ 1.5 billion. It was value to our exporters. The government is now speaking of earning US$ 1.5 billion through tourism in the future after losing the same amount in a different sector. The government devalued the rupee following an IMF condition. Look at the impact the country is faced with by the government’s actions? When you speak of the aid cut, you must look at the impact. Such action would have an impact on other countries’ approach to Sri Lanka as well. The government has to find monies for all monies that are borrowed. All this would have an impact on the ordinary people in the country. This situation could have been avoided if the government had closely monitored its policies and repercussions. The government would have been able to foresee such an eventuality. It seems like the government is trying to live with an isolated mentality.

Q: How will the JVP intervene in addressing this issue?
A: The JVP criticism is that the government does not have a solution. The situation now is like a flu turning out to be pneumonia. Now a surgeon is needed to address the issue. The US has slashed aid to Sri Lanka mostly because of the crisis in that country. Many countries in the world are experiencing several economic downfalls. It is evident that it is the fault of the system. Therefore, Sri Lanka is also affected. The government is trying to find a solution to the crisis by implementing policies of Regaining Sri Lanka part by part. The government is trying to get away by imposing all the burdens on the people. The electricity, fuel, transport bills are being increased. Mahinda Rajapaksa is playing the second innings of the market economy started by JR. Rajapaksa is now finding it hard to save the wicket. There’s no solution to the crisis in the current system. The government has been making wrong decisions. When the world was going into an economic crisis it started an aviation company, Mihin Lanka, which is now being maintained at a loss. However, when the crisis deepens the officials might actually flee the country.

Q: What impact has the loss of the EU’s GSP Plus had on the economy?
A: The loss of the GSP Plus has resulted in a huge problem with some companies moving out of the country. They have shifted to other countries in the region. By December last year, some companies had closed down their operations in Sri Lanka because they were losing their markets in the EU. Market prices are decided by many conditions related to the sector. When Sri Lanka lost the GSP Plus, the price of the goods manufactured in Sri Lanka also increased. However, an industrialist cannot face such a scenario since he would lose the market. It is people who are unaware of the real impact of the loss of the GSP Plus that make foolish comments saying it would not have an impact on the economy. The current situation in the country does not help attract investors. How many foreign direct investments have reached the country last year? Were any new factories that employ over 1,000 persons opened in the country recently? The loss of the GSP Plus has resulted in the loss of investments, industries and jobs. The import and export figures show the real situation of the country. Exports and imports have declined and the authorities have failed to conduct a proper study to determine the reasons for such a situation and address it.

Q: The government has resorted to taking commercial loans. How do you see this development?
A: The country’s production process is dependent on the private sector. Therefore, the manufacturers and investors work closely with the country’s banking sector. It is the banks that lend to the private sector to carry out their businesses. The private sector use the monies borrowed from banks for the production process. However, the government has now taken Rs. 410 billion at a 17 percent interest rate from the banks. These monies borrowed by the government are not used for any production purpose. They are mostly used to pay state sector salaries. Banks then don’t have money to lend to the private sector. The government and institutions like the CPC and CEB have taken loans from the banks and even cashed in on fixed deposits. For example, Lanka Mineral Sands Limited had a Rs. 1,250 million fixed deposit that gave the company Rs. 75 million as annual interest and it was used to pay the staff salaries. This fixed deposit was taken and the company is now heading towards a financial crisis.

Q: How do you think the country can overcome the current economic crisis?
A: Mahinda Rajapaksa and the family cannot overcome the crisis. The crisis would be pushed further. If you are really keen in finding the answers to the crisis, you can. But the government is not in the mentality of finding the answers. You cannot fool everyone all the time. Inflation is increasing and the country is on a debt trap and the people are feeling it. The monthly expenditure of a family of four is estimated at Rs. 47,800, but a public sector worker’s minimum salary is Rs. 20,088 and a private sector worker is Rs. 8,625. Families are finding it hard to survive even with two members being employed. Using loans to build roads is not sufficient. Monies should be used for the production process. The government has estimated its revenue to be at Rs. 1,274 billion and the loan and interest payments at Rs. 1,196 billion. Only Rs. 80 billion will be remaining. The government has to spend Rs. 396 billion for annual public sector salaries and Rs. 150 billion for health. Every person in the country is in debt to the tune of Rs. 65,000 as a result of the loans taken by the government. The per capita loan is over Rs. 400,000 now. One must see where the country is heading? In order to salvage the country from the current crisis, the country’s production process must be strengthened, the people must be involved in the development process and the people should enjoy the benefits of development. But the economy at present is functioning according to the needs of one family. The current system must be changed and the JVP has a properly planned programme that would help increase the production process and get the people involved in it.