PM wows investors in Beijing :

UNP infuses young blood into the party leadership

Nearly 15 months after the victorious Presidential election campaign, the United National Party, the ruling coalition’s main stakeholder, shuffled its senior positions in a bid to give more responsibilities to the party’s second and third tier politicians.

The most significant outcome of the UNP Working Committee meeting last Tuesday was the new appointment given to Minister Daya Gamagé as the party’s new Senior Deputy Chairman. The National Organiser’s position, the post previously held by Gamagé, was abolished.

Some in the UNP Working Committee, commenting on Gamagé’s new post, said the Minister had been ‘kicked upstairs’. Although Gamagé has been moved to a higher place in the party hierarchy, the post of national organiser offered him a greater opportunity to serve the party on a wide range of matters. They think the post of Senior Deputy Chairman may confine the minister to a nicer but less-functional office, at least to some extent.

However, it is also fair to assume that Daya Gamagé being ‘kicked upstairs ‘ has already been compensated for by the appointment of his wife, Anoma Gamage, the Chairperson of the Eksath Lak Vanitha Peramuna, the women’s wing of the UNP. Anoma Gamagé was appointed to Parliament from the national list and was given a deputy ministerial portfolio in September. Former Parliamentarian Rosy Senanayake, who is now attached to the Prime Minister’s staff at Temple Trees, held the women’s wing position before.

Controversy

Minister Akila Viraj Kariyawasam, who was recently at the centre of a controversy over his AIDS remarks was appointed chairman of the Jathika Sevaka Sangamaya (JSS), the UNP’s trade union arm.

Many were under the impression that Kariyawam was being groomed for the General Secretary’s post in the party. However, offering him a key responsibility on the trade union front will strengthen Kariyawasam’s position in the party, bringing him one step closer to key national level responsibility.

The move has been made at a time when the UNP is exploring ways to revive its trade union sector, one of the party’s most active and vibrant arms under the J.R. Jayewardene administration. Many UNP-affiliated trade unions faced numerous issues under the Rajapaksa rule and now the party is in the process of consolidating its position on the trade union front.

Minister Harin Fernando, a dynamic minister in the current administration, was appointed as the Chairman of the Jathika Wathu Kamkaru Sevaka Sangamaya, the UNP’s trade union for the estate labour force.

Fernando made a great sacrifice for the party when he opted to be the UNP’s Chief Ministerial candidate for the Uva Provincial Council election, stepping down from his parliamentary seat. Fernando’s move instilled confidence among the UNP supporters who were discouraged and disheartened at that point due to various internal divisions in the party.

The winning streak, initiated by Fernando, culminated with the victory at the Presidential election early last year. Fernando’s new appointment can be interpreted as an instance where his sacrifice was rewarded by the party leadership.

Among others who received new positions were MP Kavinda Jayawardane who became the Chairman of the National Youth Front and, Deputy Minister Dr. Harsha de Silva, who was elevated to the position of an Assistant Secretary. Alongside de Silva, State Minister Ruwan Wijewardene was also made an Assistant Secretary of the party.

The new appointments made by the UNP Central Committee show a shift in the party’s strategic thinking. It is all too evident that the UNP, one of the oldest political parties in the country, has decided to empower its youth leaders to take national level responsibilities.

According to the provisions of the 19th Amendment, the next Parliamentary election will be held in 2020 and it gives the young politicians the opportunity to demonstrate their strength and earn their places in the party within the next four years.

Meanwhile, there was speculation that the posts of Deputy Leader and Leadership Council Chairman would be abolished in the near future. Commenting on the matter, a senior UNP parliamentarian told the Sunday Observer that some positions were created in the past to avoid internal power struggles when the party was in the opposition and the current political situation did not need such measures. However, nothing was discussed on the matter at the Working Committee meeting last Tuesday.

China and Port City

The UNP’s Working Committee meeting was held while the Prime Minister was preparing for his first official visit to China. Even though China has been a long-standing friend of Sri Lanka, the country’s foreign policy shifted after the Rajapaksas fell out of power last year.

In the wake of the political change, the Sri Lankan government saw the importance in repairing and re-strengthening its ties with China, the second largest economy in the world and an emerging global super power.

On the other hand, China was heavily involved in Sri Lanka’s infrastructure and economic developments projects under the Rajapaksa rule and the new government had to maintain its strategic link with China, while managing other important partners in the international domain. Against this backdrop, international media attached a great importance to the Prime Minister’s interaction with the Chinese government.

As Prime Minister RanilWickremesinghe left for Beijing, many political observers said the tour would make a significant impact on the future of the Colombo Port City project.

The proposed offshore city built on a reclaimed land adjacent to Galle Face Green, was causing troubles for the government, not only on the political front, but also on the economic and financial front.

Soon after coming to power in January, last year, the government announced that it would re-negotiate the Port City agreement with the Chinese company and re-assess its environmental impact. This process took more time than expected due to multiple reasons.

Apart from the Chinese parties and the Sri Lankan government, there were many stakeholders involved in the issue. Some NGOs raising serious questions about the environmental impact of the project turned out to be a force to reckon with. On the other hand, there was a political dimension to the issue as the UNP, when it was in the opposition, slammed the Port City project on multiple grounds.

But, when they came to power, the UNP-led alliance came to terms with the fact that the Port City project was a reality they had to deal with, and it was not possible to scrap the project overnight.

The most serious bottleneck concerning the Port City project was the issue in the Environmental Impact Assessment. Breaking what seemed to be a deadlock over the matter, the Chinese company handling the project has now agreed to the dredging conditions set by the Coast Conservation and Coastal Resource Management Department (CC&CRMD).

Conditions

“The company has also agreed to the other 70 conditions set out by the environmental approval document,” authoritative government sources said earlier this week, adding that this would end the EIA issue between the government and the Chinese company.

The environmental approval for the Port City has been granted by CC&CRMD under strict conditions that no dredging will be done in Site 1 of the designated areas which came under the Supplementary Environmental Impact Assessment (SEIA).

The area, a total of 46,000 square metres, has been declared a no-go zone by the government and all dredging movements will be tracked by Global Positioning Systems (GPS) and all records would have to be made available to the CC&CRMD.

The SEIA published in December 2015 had indicated that there were fishing grounds in the designated area and with the public outcry by NGO groups, the government had decided to re-consider this option. The project has now been given the environmental approval and dredging will be done from Site 2 which is 5 km away from the coastline.

The approval has been given by the CC&CRMD which is the project approving agency, after studying the Environmental Impact Assessment report of April 2011 and the Supplementary Environmental Impact Assessment report (SEIA) of 2015 and taking into consideration public comments.

The conditions also stated that modern dredging methods should be applied to minimise the amount of suspended sediment released on to the sensitive marine environment such as reefs, hard bottom areas located in the vicinity of the dredging site as indicated in the SEIA report. Furthermore, precautionary measures should now be taken to minimise overflow of extracted sand and contaminants from machinery and vessels.

It said in the environmental approval given that sand dredging activities should be avoided in areas close to reef habitats, spawning areas, breeding areas and areas that are more sensitive and productive as well as sites having unique habitats, or threatened or endangered species.

According to the conditions, any additional extracted sand for reclamation should be obtained from the existing sand extraction site allocated to the Sri Lankan Land Reclamation and Development Corporation (SLLRDC) as proposed and identified by the Project Proponent.

Compensation

However, there are yet many questions over the amount of money the Sri Lankan government has to pay to the Chinese party for delaying the port city project for nearly 15 months.

Although there was no public announcement on this payment, many in the political circles speculated that it would be around US $ 125 million. It does not need a lot of wisdom to understand that the Sri Lankan government, at this stage, cannot afford to pay US $ 125 million to China as compensation for delaying the project.

When contacted by the Sunday Observer, a highly placed government spokesman who is involved in the interactions between the government and the Chinese company said the actual amount might be less than 125 million US Dollars.

“What was presented in the news media was an exaggerated figure. In my view, the actual figure would be less than 100 million US Dollars. But still it is a huge amount for the Sri Lankan government in a problematic situation such as this,” he explained.

It was in this context that Prime Minister Ranil Wickremesinghe and the Sri Lankan delegation held discussions with the Chinese President, the Prime Minister and other top-brass of that country’s administration. As a result of this dialogue, China made a Yuan 500 million outright grant (about US$ 77 m.) to Sri Lanka.

The Sri Lankan Prime Minister outlined his plans for the Port City project in Beijing when he addressed the Chinese business community on the same day he met the Chinese President.

Wickremesinghe said: “The Colombo Port City will be considered a special jurisdiction area enabling it to function as the country’s financial and business hub.”

‘Two economies’

He said the monetary laws would be changed to achieve this and business could be carried out in a more relaxed environment with exchange controls laws being relaxed. The Prime Minister also added that with the commencement of operations of the Port City Sri Lanka would be country with two economies.

Addressing the business forum hosted by the China Council for the Promotion of International Trade at the World Hotel in Beijing, the Prime Minister said that it was the first time that the two major parties in Sri Lanka came together in a delegation to determine the strategic economic cooperation between our two countries in the next decade, a period of importance for both our countries because both our countries are involved in the next level of economic re-structuring for integration and prospect.

“It was also important to note that the relations are now shifting from government to government and between government institutions to institutions into private enterprises on both sides.

“At a time when both sides are looking at how we could engage with the world trade and get a greater share of trade to our countries. Both countries have come up with two concepts in which China has one belt and one road concept and we have the hub for Indian Ocean.

“After all in the ancient days this silk route came in to Sri Lanka and from Sri Lanka it went via the Indian Ocean you can see that historical synergies are there and it is a matter as to how we could cooperate. I have searched and read and I have been informed about China’s modern silk route and maritime silk route and one belt one road strategy.

“I would tell what Sri Lanka is planning to do: the potential of the Indian Ocean for economic development has to be fully exploited. It has not happened. We have Europe on one side and East Asia on the other side. The potential of the Indian Ocean is enormous.

“The Bay of Bengal constitutes of larger countries. The population of the whole of South Asia put together equals that of China. Imagine what masses of people on the verge of economic development could do.

“There is Indonesia, Thailand, Myanmar and, the whole African east coast. Within this important geographical milieu Sri Lanka is strategically positioned as its hub. Sri Lanka’s objectives are clear that it wants to become the business hub, logistics hub and, platform for competitive value addition.

“In this regard we are carrying out a series of structural reforms to make it easy for business and certainly our rules on monetary affairs would be changed to make it more competitive and this would be announced in June this year. In brief what we are trying to do is to convert Sri Lanka into that hub.

“Firstly, we would convert the Western Province into a megapolis of eight million people. It would be the largest city in the Indian Ocean and above us would be Chennai, Bangalore and the new city of Amaravathi. We certainly have a dominant role in the Bay of Bengal.

“We are in touch with the authorities of Andhra Pradesh who had apparently made contacts with the same Singaporean consultants that we have been working with for the Western Province megapolis,” the Prime Minister said.

It is now clear that the government is determined to move ahead with the Port City project, probably under tough conditions. The Prime Minister’s explanation also showed that the government had the political will to proceed with this giant project amidst a myriad of obstacles.

Fonseka’s car

Just before the Prime Minister left for his visit to China, he attended the weekly Cabinet meeting at the Presidential Secretariat. Wishing the Premier all success on his visit, the President said the Prime Minister would be able to bring “a lot of gifts” to Sri Lanka. This brief remark encapsulated the government’s expectations of the Prime Minister’s China trip.

Meanwhile, yet another verbal battle occurred between Field Marshal Sarath Fonseka and Justice Minister Wijeyadasa Rajapaksa over a remark the former made about a Buddhist monk. After Fonseka’s remark, the Justice Minister went on to apologise to the monk on behalf of the Cabinet and that, needless to say, irked the former Army Commander.

Fonseka said that by apologising to the monk, the Justice Minister had violated the collective responsibility of the Cabinet and urged the President to take action against Rajapaksa. It looked like none of the senior members of the Cabinet, including President Sirisena, took Fonseka’s request seriously.

Fonseka, who was made a minister two months ago, also made a request to the Cabinet to buy a super-luxury car, whose price exceeded the standard allocation for Cabinet ministers. Fonseka then suggested a second choice but that too was beyond the limit.

At this time, the President requested the former Army Commander to sort out the matter after discussing with the Finance Ministry. Although Fonseka seemed unhappy, he had no other option but to comply with the President’s request.

Cooray takes over Hilton

Ending a much-talked-about controversy, the Chairperson and the board of Directors of Hilton resigned last week, making way for Krishantha Prasad Cooray to become the company’s new Chairman. The board meeting held on Friday endorsed Cooray’s appointment and he is expected to assume duties after the New Year holidays.

Even the Prime Minister had to intervene to resolve the controversy over the Hilton board. When Cooray’s appointment was made a few months ago, Sagarika Delgoda and other directors stood in his way, without stepping down from their posts. At this point, the Prime Minister summoned them for a meeting and they requested the Prime Minister to allow them to remain in the board until March 31.

On March 31, Delgoda and her directors resigned as per the Prime Minister’s request and Cooray was asked to take over the affairs of the company. However, Dheeshana Amarasekera, the daughter of corporate finance expert and anti-corruption activist Nihal Sri Amarasekera, is yet to resign from the board.

Cooray is a private sector executive counting years of experience in the corporate sector and an academic background in Political Science and Law.

Completing his schooling at St. Thomas’ College Mount Lavinia, Krishantha read for a Bachelor of Arts (Honours) in Political Science and Law at the University of Middlesex, UK.

In the corporate sector, he held several executive positions in leading, innovative private sector companies, including the Ceylinco Group, Richard Peiris Group and the Maharaja Organisation.

He joined the Richard Peiris Group as the Head of Business Development and went on to found the first completely independent publishing house owned by a public-quoted company.

He was instrumental in setting up Rivira Media Corporation (Pvt) Ltd. under the Richard Peiris Group and served there as founding director and Chief Executive Officer.

The two flagship newspapers launched under his direction, Rivira and The Nation, continue to be widely read national newspapers in Sri Lanka. During his stint at the Maharaja Group, Krishantha worked as a Consultant, supervising, streamlining and ensuring executive coordination of news broadcasts by the TV and Radio stations belonging to the company.

His long-standing association with the media includes the contribution of articles to several national newspapers. Presently, he is a Board Director of DFCC Bank.