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Page 2
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| A. Z. N. M. Marikar Sasiri Book Shop
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December 1993
Politics
Images
COVER STORY 10 What began as a case of a multimillion dollar fraudby reducing, illegally, the number of hotel rooms at the Hilton has turned into Sri Lanka's biggest scandal of recent times, its cover up implicating politicians, foreign and local financiers, professionals, statutory bodies and the legal establishment.
A series of exposes on the comuption, mismanagement and nepotism that is part of Counterpoint's continuing coverage. Detailed reports on the Duty Free Complex at Katunayake, the Tea Research Institute and the Swiss MultiNational Nestles highlight different aspects of this raging political disease.
TamilView ................................................22
Media Watch.......................................29
December 1993
Соитter
 
 

v, VA* Vol 1 Issue 9
18 BATTLE LINES The new Army Commander takes over at a crucial juncture in the war, and faces the challenge of re-organising and re-inspiring the entire military effort.
be wished away, and the need
of the hour is to present practical solutions to redress the damage already done, as well as toplan for the future. .
స్లభళ్ల
oint
、
31 BUSINESS

Page 4
Comment
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December 1993

Page 5
With the 6th SOUth Asian Federation Games to be commenced in Bangladesh in December, the President of Sri Lankahasappealedtotheprivate sector to be actively involved in the sponsorship of athletes and sportsingeneral. This attemptat sports promotion directly related toalackoffundinghashistorically plagued amateur sports with the possible exception of Cricket and rugby. For the private Sector, or essentially big business, sports promotion is viewed mainly as a publicity gimmick.
With foreign teams visiting the country, local teams on foreign tours, and numerous challenge trophies being awarded at a multitude of competitions, sports is a thriving Social phenomenon. At least, predominantly in urban areas. Especially for the NICdirected, competition-minded urban capitalist elite, sports is an essential facet of "high" culture, illustrated by membership at prestigious sports clubs. Consequently it is this group that canderive the ultimate benefit by promoting sports in this marketOriented accumulation process.
This historically emergent dominant mode of accumulation along with the increase in productivity has afforded a
Surplus Consciousness which is
not necessarily limited to a small elite of the leisure class. Even the unemployed, partially by destitution as well as by default, demonstrate this surplus consciousness. But this Critical energy of the people, which looks for alternatives is Suppressed by various means. Therefore, the values of the system are forcefed through state-terrorism of
hamlessly channelled through
entertainment. In a benign form of Coercion, Sports can be effectively utilized to further market Orientation.
The apparent Social benefit of sports, in a national realm, is its
capability to spontaneously
advocate the patriotic, populist
ports in al m
ideology of unity, especially at a low cost. This may be simply denoted by the radio and television audience that converge during a Cricket test match, some of whom may have a disinterest in the game itself.
The Second visible reason is that the unemployed and frustrated youth can be productively engaged (also strategically distracted from any anti-establishment protest) in a self-satisfying, socially interactingactivity. With ruraland urban unemployment between the ages 15and 19closeto.35%, not tO mention underemploymentsportsänbe mobilised as a form of appeasement for their marginalisation from mainstream economic activity.
But a principal unrevealed benefit of sports, especially in this political-economic transition from state paternalism to freemarket capitalism is its potential to foster the spirit of self-interest and competition that is a fundamental feature of the present articulation of the social production process.
Sports can be effectively
0ne more question
- Counte
December 1993
 
 
 
 

Letters
mobilised as an impetus to promoting a market System, where fair competition is honoured rather than the ruthless accumulation of profits by any means. In the Socio-economic Context of Sri Lanka, the approach must be targeted towards, and Solicit the participation of rural youth, men and women, that are economically constrained of and Culturally isolated from participationinsports.Asaresult, marketed sports must be broadbased in participation, low in material investment, with ease of access to facilities and equipment. Moving away from
the urban-based Cricket and
rugby, this may include track and field, cycling, volleyball, netball, possibly swimming. The ideal would be games such as "Gudu" or Kabbadi, aminexpensive group game to be held as an official event at the SAF games this year.
Significant principles that complement and reinforce a
marketConsciousness must also
be emphasized through sports promotion.Thus, the ideology of the system, as opposed to the actualimperfect mechanism and
ket transition
its seriously flawed logic, will reflect the utopian economic convention of perfect competition.
The SAF games are to be held in Bangladesh this December and at present the poor in Dhaka are under Severe threat of increased water-bome disease due to excessive rainfall and lack of access to Sanitary living conditions. But the Government is willing to spend valuable and Scarce resources which can be productively used for the benefit of the Vulnerable segments right there in Dhaka. But, the Games will go on, sustaining and escalating contradictions in society.
The irony of glorifying sports in mass poverty conditions has been a reproduced structure in society that complements the prevailing social consciousness which reflects the dominant mode of accumulation. Since sports manifestthatcapacitytosocialise a market consciousness, the capitalist and bourgeois must focus their energy in enhancing those structures that promote mass-based sports. Specific sports, because of their historical continuity and the popularity propagated by the media have maintainedasuperiorstatus.The macho brutality of rugby and the gentlemanly finesse of cricketboth have enjoyed these privileged positions purely by default, regardless of the absurdities of the games. Thus, the impetus to transform the existing structures to include more mass-basedsports activity must remain a key concern. Although the competition in Sports can never be paralleled with Social structures of the market place, at least the ideological framework can be socialisedespeciallytotransform those precapitalist structures which resist capitalist transformations.
M. Rajya, Colombo 5
3.

Page 6
inhala nationalism periodically needs a bogeyman. On whom they can heap all their fears and anxieties. It is almostasif trapped in the endless war and haunted by the phobia of Tamils over-running the land, Sinhala nationalism, often degenerating into shrill jingoism, needs to regularly rejuvenate itself by burning SOme Scapegoat ritually at the stake. Once it was MI. Amirthalingam. Later it was Mr. Varatharaja Perumal. Mr. Prabhakaran is never absent from the picture. And last month it was the turn of Mr. Thondaman. Clerics and agitators, Jathika Chinthanaya ideologues and vociferous editorialists, they all band together to hound Mr. Thondaman.
Mr. Thondaman, of Course, derives his enormous political clout from the undisputed sway he holds over the plantation workers. Neither his offshoot the late Mr. Abdul Aziz, northe traditional left nor the UNP's Lanka Jathika Estate Workers Union has been able to break his grip on the plantations. When Mr.D.S. Senanayake disenfranchised the workers of Indian Origin little Would that wily old patriarch of the UNP have imagined that by this single action he would be making Mr. Saumyamoorthy Thondaman the messiah of a powerful bloc capable of decisively determining the politics of the hill country.
In his autobiography, MyLife and Times Mr. Thondaman traces the development of his father's life from its humble beginnings as a personal servant to a distant relation in the Gampola area. Atayoung age he had run away from his family in India and come to Ceylon where he adopted the name Karuppiah. By the time Thondaman came to Ceylon in 1924 after his eleventh birthday Karuppiah was a wealthy man, the OWIner of Wavendon Estatein the Nuwara Eliya district where he had Once Worked as a labourer at 13 cents a day. In Thondanan's own words: "Even more remarkable was the fact that he was
Sinhala nationalis
Prosl
able to do this abol century when the B of policy never allc become an OWner C higher elevations p Nuwara Eliya districi therefore unlike h suffered from any S.
Currently Audohis bete noire, 77hondo to be walking a tig, nationally as well/
рartу.
Heisin fact that curi much derided by
plantation owner plantation trade uni all humbug? Not E One does get the
privations suffered touch and inspire th public life. Being a SE Indian Tamil, educa head and shoulders
Counter
 
 
 

ut the turn of the ritish as a matter Wed a native to fan estate in the articularly in the ..'Mr. Thondanan is father never
ense of privation. سسسسسسسسسسسسسسسسسسسسسس
f national/sn's man appears
trope both s W/th/7//s
busphenomenon
the old left, a who is also a Onist. But is this ntirely perhaps. feeling that the by his father did e Son to take to Cond generation 'ed, wealthy and above the mass
point
of the plantation proletariat, the wretched of the earth on the surplus produced by whom the urban bourgeoisie was having its postindependence ball, Mr. Thondaman was ideally equipped for his role. The plantation Workersidentified with him as they never did with any left leadership.
Mr. Thondaman was happily bereft of an ideology. His was the practical pursuit of goals On this earth rather than the formulation of ethereal philosophies in outer space like his Marxist antagonists on the plantations. In the sixties in particular CP(Peking) leader N.Shamuganathan was able to make some headway in Organising the Red Flag unions along With his campaign against Wellala domination in the North but finally it was Mr. Thondaman's primal Tamil Sway which held against Shan's sophisticated theorising. With his charismatic personal appeal Thondaman, kept the mainstream plantation working class safely within the movement whose only godhead Was Thondaman.
Bereft of any ideology and solely committed to Mr. Thondaman the Ceylon Workers Congress was an Organisation the potential of which most Sinhala politicians disCOvered only belatedly. In 1947 at the first General Election he was elected as MP for Nuwara Eliya but was kept out of Parliament until 1960 because of the legislation disenfranchising the workers of Indian origin. In 1960 he was made an Appointed MP by the SLFP to represent Indian interests and voted to defeat that Government in December 1964 whereupon he was nominated by the UNP Government of 1965 which succeeded it. This itself was an acknowledgement by the country's two most powerful political parties of his undisputed
position in the plantations. But it is to
Mr. J.R. Jayewardene that Mr. Thondamanowes his present position as king-maker. The former President whose hand writing can be detected
December 1993

Page 7
in much of the sad and shabby happenings of the last two decades successfully exploited Mr. Thondaman's quite justified chagrin and anger Over the reorganisation of the plantation sector after nationalisation by the United Front Government by Mrs. Bandaranaike. Following the appropriation of plantation land particularly by the Udarata Wathu Sanvardhana Mandalaya (USAWASAMA), thousands of helpless plantation folk Were driven Out into
of their disc autobiography argues that the labourers were ne from which the were uprooted C plantations....It is these lands may the Kandyan King: The junglelandst could show as
possession were le companies for Ient
the inhospitable 窦 ・ streets. Exploiting this MI. Jayewardene ******** ဝှိုgt; Co-opted hondaman the pli . Thondanan as a . - major figure in the ۔۔۔۔۔۔ ۔۔۔ doctleby, ца. Satyagraha move- booths to electrun Inent he launched governments. against the then Go ts. Government. One of Jayешardene and histmasterstokes deferential to him
after capturing power in 1977 was to win MI. Thondaman's support for his Government and make him a Cabinet Minister which he has remained since.
This support has been crucial to the UNPparticularly after the franchise was restored to the plantation WOrkers. Under the leadership of Mr. Thondaman the plantation workers have docilely walked into polling booths to elect UNP Presidents and Governments. Both Presidents Jayewardene and Prenadasa were deferential to him but when he saw that Mr. Wijetunge was less than Iespectful Mr. Thondaman began rocking the boat.
Mr.Wijetunge's problem is typical of the Kandyan mentality. The President is a middle-class Kandyan belonging to the drawer between the peasantry and the Yaristocracy and like all Kandyans is seized with a sense of historical grievance. The Kandyans have always been purblind enough to see the Indian plantation workers rather than the British Raj
whichsettled them hereas thesource
that Mr. Wijetun, respectful Mr. Th
did not see it t reluctant to visit English King in h Civil Service man« they chose the fal Karuppiahs who And Karuppiah N father.
Itis this kongstar petty Sense of grie against the far mol of the day, whic Wijetunge sidelin Buoyed by his con Bandaranaike (a fe Nuwara EliyaPresident seems t he can Win the Kandyan creientia of course, is not Gamini Dissanaya to seize the Opport cost of enhancing biggest political
Count
December 1993
 
 
 
 
 
 
 
 

ontent. In his Mr. Thondaman "Indian immigrant ver settled on land Kandyan peasants r evicted by the Iue that nominally have belonged' to and nobles intrust." leKandyan radalas
in their actual ased' by plantation "But the Kandyans
hat way. Timidly their wrath on the is Palace and the arins in Whitehall easier target, the Nere closer home. Awas Thondaman's
ding but ultimately Vance, if One SetSit epressing realities h had made Mr. 2 Mr. Thondanan. quest of Mr. Anura ormer Third MP for Maskeliya) the o be thinking that hills on his own s. Mr. Thondaman, amused and Mr. ke has been quick unity though at the | his image as the opportunist of the
"rpoint
Politics
year. Not that there was any love lost between the two in the past. As first MP for Nuwara Eliya-Maskeliya and the President of the UNP's answer to the CWC, the LJEWU, Mr. Dissanayake and Mr. Thondaman competed for years on the same turf but now to Mr. Dissanayake Mr. Thondaman is his steadfast ally.
Mr. Thondaman has been like a gnarled old banyan tree under which nothing else could grow. Swarthy, rough-hewn, straight-spoken to the point of incoherence, he has been a singular phenomenon in Sri Lanka's politics. His present moves to make an opening towards the Opposition is entirelyinkeeping with his lifelong devotion to political bargaining and the enhancement of his own career. He has been quite ruthless in the pastin Suppressing any incipientopposition as in the case of Mr. Chandrasekeran. But Mr. Thondanan at the end of the day seeks in vainforasuccessor from the family. His son, who is anyway pushing on himself in years, is not interested. Perhaps agrandson but the
'ambitious Mr. Sellasamy is fidgeting in
the Wings.
As the foremost representative of plantation politics and the major conduit to India Mr. Thondannan, occupies a powerful position in Sri Lanka's politics. That is what drives the fear of Moses into a Congenitally nervous Sinhala nationalism. But Mr. Thondaman is also a moderate who eschews the extremism of Tamil nationalism. Though nota Sri Lankan Tamil he is perhaps SriLanka's leading Tamil politician who has often offered to bargain with the LTTE. He would like to keep the plantations free from extremist influence. This is why SucCumbing to atavistic Sinhalafears and antagonising Mr. Thondaman might mean Compounding the Country's problems still further.

Page 8
The election y.
Uncertain a unwilling
riLanka has gone through many turbulent years in recent times, but none of them have been characterized by the degree of uncertainty that grips the nation as it enters 1994.
The importance of the new yearlies primarily in the fact that it will be an election year, and much of the action as well as the inaction that follows, will no doubt, be a result of this prime focus. What can be expected then is anyear in which the nation as a whole Will beina State of flux, as individuals, factions and political parties jostle for positions of power in the forthcoming electoral contests, whee 10.5 million will qualify to vote. That this contest will be ruthless, bitter, violent and of a no-holds-barred nature can also be expected, given the Conte that none of the political parties seem confident of their policies or their strength. In fact what is clear from the recentacts of desperation exhibited by all sides of the political spectrum is that in facing up to the election year, what each has of themselves, is the 'image Of a loSer'.
The greatest uncertainty in the imminent Contest will be the manner in which the (one million plus) estate Tamil population will cast their vote. In the past they have voted enbloc for the UNP. Presently, the Opposition has made no apologies in Courting them to support its Candidate, a proposition MI. Thondaman had lured the Opposition to believe they were On the verge of doing.
But what the recent Crisis in the Central hills has underlined is that not on has the unassailable Mr. Thondaman lost his grip on the flock he controlled so tightly, but also that no longer can it be expected that the estate Tamils will vote enbloc for any
Ora
particular candida these Situati JnS aggravated in Chandrasekeran N behind bars for all with the LTTE, is t pursue active polit context it would se Thondaman is pres is a battle to sa position rather tha: principle. Althoug him from the embar) his party men going through the reje Confidence Motion Minister of the Cer showdown within t
political party in Sri
-- has not ended,
pOstponed.
Another importal
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Iliances and
&
Dedfellows
cle
e or party. Both Will b3, further he event that who is presently }ged invoyement ) be uileashed to CS. In he pręse n em that What Mr. ently engaged in, eguad his OWn Sor any significant the UNP Saved aSSment of having Jagainst his Whip tion of the No against the Chief tral Province, the he last monolithic Lanka -- the CWC but merely been
nt COinStituency all
parties will try to woo is the 0.8 million Sri Lc kan Tamil vote. In the absence of any significant democratic Tamil les fership which this group may rally around, what this Section will ultimately do also remains an uncertainty. However, two obstacles lie in the way of effectively counting them as part of the vote banks "up for grabs". Unlessnormalcy is restored in the North and East the Conduct of elections in these areas is itself a dilemma. Also given that the mainstream political parties have continued to pay mere lip Service to the urgent need to solve the thmic problem but have dones nothing towards this goal, this may resultina sizeablè section of thė Sri Lankan Tamil voter being disinterested in the electoral process itself.
President Wijetunga's line that the present crisis is merely a terrorist problem, and his emphasis on military victory has no doubt hurt the Tamil pSyche and may deflect Sri Lankan Tamil Voters from Casting their lot with the ruling party. It is no doubt Sensing the potential of harnessing these dissatisfied Tamil Votes that the SLFP appears to be taking on the slogan of "seeking a political solution to the ethnic problem". However, judging by what happened at the recent Nugegoda rally, where except for Chandrika there was hardly a mention about the theme of the meeting, it appears that in spite of picking On the Achilles Heel of the UNP, in the absence of an alternate strategy the Opposition is incapable of making any inroads. This attitude by the tWO mainstreampolitical parties to place the ethnic issue on the back burner is particularly unfortunate given the opportunities that could have been opened up towards
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Det ber 1993

Page 9
reconciliation with the appointment of the more professional Gerry Silva as Army Commander and Lionel Fernando, a man who is held in high esteem by the minority Communities, as Governor of the North-Eastern Province. It is a pity that Fernand in particular Will be preaching peace and racial amity on the ground in the North-East, While the Centre COntinues to bomb the hell Out Of these areas from the Skies. A
IY. Ο Θ Cohesive Strategy aimed at redressing the genuine grievances of the Tamil community While marginalizing the LTTE, is desperately needed if We Want to keep this country united. In this Sense Lionel Fernando may in fact be the last train to Jaffna.
AS for the Sinhalese voter, it is likely that it is the economic issueS that will primarily determine the direction in which S/ he Will Cast his/her lot, COme election time. However, the pOSSible disruption Of WOrk. On the estates and the eScalation Of the separatist War Will COntinue to take its toll On this Variable. The UNP's Calculation that taking a tough stand against Mr. Thondaman and Opting for a strident nationalistic line in relation to the North-East COnflict would endear the party to the Sinhala Voter, and Compensate for any loss of Sri Lankan Tamil and Estate Tamil votes that it mightlose in the process, may prove faulty. FOI it is well known that the SuCCeSSive VictOrie:S the UNP has enjoyed in the past few years
have been possible party's ability marginalized S population. AS fo Still to get its ac de Cide Whether tC Card as the UNP Se to project itself asa around which the leSS groupSCan rally roller-COaster ride
e minorities have tra
UNP, but is this alia
apparent "Sour towards the UNP DUNF de CideS Presidential elect factor the two n. Will have tO tak galvanizing Sup Sinhalese.
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December 1993
 

largely due to the O appease the actions of the the SLFP, it has together and to play the 'Sinhala ems to be doing OI Secular alternative many now patrOn. Given the DUNFS Nith the SLFP and
ditionally voted with the
亨
grapes" attitude
which horse the O back Come a On Will also be a tainstream parties 2 into a CCOunt in port among the
point
Politics)
AS for the Muslims, following the recent PC polls with Ashraff having given up his quest to assert an independent political Constituency among them, few surprises can be expected. However, the fallout of the separatist struggle will Continue to be a factor that Willinfluenceparticularly the Muslims of the Eastern PIJVince in deciding between the ruling party
and the Opposition. The Muslim vote
will also be important in the local government elections(Schéduled to take place in Certain areas in the North-East early in 1994. If the referendum on the merger is to Come up, then this Constituency can be expected to become even more Crucial. By focusing Some attention the plightofth suslims in the East, as of noW it would ppear that the SLFP is attempting to WOO them as Well.
Amidst all these un Certainties and a situation where nothing Canbe taken for granted there is of Course ol.e certainty. That irrespective of race, religion, caste or class what the Sri Lankan voter would be confronted with is not a choice between political personalities -- for there are no 'big' leaders left who can be expected to lead Sri Lanka into the 21st century. As such, the focus will more likely be on the party and its policies. Whether this is desirable or not one cannot quite judge, for given the degree of perSonalized politics thathas prevailed in Sri Lanka Since independence, this Sue is a novel Situation.

Page 10
ollowing on the heels of the Welioya, Kilali and Pooneryn military setbacks suffered by the Government, the November 12 - report of the Parliamentary Select Committee appointed "to recommend ways and means of achieving peace and political stability in the Country", is analogous to "Nero fiddling while Rome was burning".
The failure of the Committee to deliver appearsall thenOre distressing when one considers the circumstances under which it was appointed. Despite the feeling insome Circles that the Government's agreement to appoint a
President Prema October 1991, but time on 20th Novel members, this Wa: Committee in th Parliament of Sri
253 memoranda f parties, other O. individuals some before the Conr Several public s access to informat knowledge were the committee anc
- કિ
Select committee for this purpose following a proposal made by and SLFP MP Mangala Moonesinghe on 9th August, 1991 was targeted at foxing the SLFP and buying time, there was genuine satisfaction that there was a fleeting chance of arriving at a political settlement to the ethnic problem. Not only were all major political actors in the Country aparty to
this process, there was even the expectation that it might be possible to draw in the views of
ff Mangala Moonesinghe M
hand by diffusing the
settlement, did Srin,
the LTTE, a necessary factor to any Settlement of the Crisis. The agreement of the SLFP to actively participate in the deliberations, for the first time since it walked out of the All Party Conference in 1984 and the appointment of One of its members, the genial Mangala Moonesinghe as Chairman of this committee, also increased expectations that a serious attempt will be made to arrive at a national Consensus that would either draw thenin Orelse Create the political clinate within which the LTTE WOuld be marginalized.
The setting up of the committee was delayed somewhat due to the impeachment moved against
in the report that from the evidenc Se IV an tS that Contemplated ir relating to the P had not been fully
In March 1992
LTTE sent throug Committee of the delegation of the would be welcom begging, when the in return informed the same char representation frol be welcone". T materialize.
Count
 
 
 

dasa in August
... it sat for the first
nber 1991. With 45 S the largest select Le history of the Lanka. It received rom MPs, political Iganizations and of whom appeared nittee in perSon. ervants who had ion and specialized also invited before i it has been noted
The deliberation also Suffered a Inajor Setback in that neither of the major parties, the ruling UNP nor the leading opposition SLFP presented any proposals, an event that effectively made the process largely impotent.
The seven Tamil political parties (EPRLF, ACTC, TELO, DPLF, EDF/ EROS, ENDLF and TULF) and the CWC jointly submitted "a four point formula". It embodied permanent merger of the North-Eastern Provinces, substantial devolution of power ensuring meaningful autonomy to that unified unity, institutional arrangements within the merged North-East Province for
the Muslims for ensuring their Cultural identity and Security and for the Sinhalese people to enjoy all the rights that other minorities have in therest of the country.
Subsequently, 8. "concept paper" was presented by Committee chairman Mangala Moonesinghe in a bid to Seek a Compromise formula. It sought to provide for tWO Separate Councils for the Northern
as playing into the UWP's pressure for a politica/ fVasar 7 Abe//f/fire Caf?
and Eastern provinces, and an apex assembly Consisting of members of the two Councils to
"it was apparent e of these public the devolution the legislation Iovincial Councils
implemented".
an offer from the h the International Red Cross, that "a Select COInnittee e O Jafna" Wet a Select Committee the LTTE through nel, that any in the LTTE would 'his too did not
plan common policies and co-ordinate programmes. This was however rejected by the TULF and the CWC.
A further "option paper" which sought to expand the area of devolved subjects and to incorporate the salient features of hitherto- submitted proposals ained at arriving at a settlement, begining from the "Bandaranaike-Chelvanayakam Pact, also did not make much headway.
The much talked about "Srinivasan Proposals" were brought to the attention of the Committee at this juncture. The thrust of his ten proposals was the Conversion of Sri Lanka into aś Federal State and the de-linking of the Northern and Eastern
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December 1993

Page 11
provinces. The hitherto unknown personage of K.Srinivasan, la London based businessman who was on the TULF list and the proposals themselves which provided significant opportunity for quid pro quoS/ Compromise, prompted One to believe that in actuality they were the proposals of the Government. Although the Tamil parties opposed it on the grounds that it Sought to delink the North-Eastern Province, these proposals Ieceived Support from both the UNP and SLFP. Upon being told at the PSC meeting on 26 November 1991. By Chairman Moonesinghe that "Mrs. Bandaranaike had accepted this formula" Minister Hameed was to declare that "if that was the position of the SLFP, then he on behalf of the UNP, was prepared to say that the UNP also accepts the "Srinivasan proposals".
However, insubsequent weeksboth the UNP and SLFP back-tracked On their position regards the acceptance of the federal principle and at the meeting of the PSC held on 11 December 1992, a majority decision was reached on the following: a) on the establishment of two separate units of administration for the Northern and the Eastern provinces b) to adopt a scheme of devolution on lines similar to those obtaining in the Indian Constitution and, C) to devolve more subjects that are in list III (con current list) or to dispense with the list.
Members of the UNP, SLFP, SLMC, the CP, the LSSP as well as independent members K.Sirinivasan of Jaffna District and Basheer Segudawood of Batticaloa District supported this agreement. This was subsequently conveyed to the Speaker în an interim report of the select committee". MPs belonging to six Tamil political parties and the CWC who served on the select Committee and who had opposed this decision resigned from the committee with effect from 24th March, 1993.
After many long months the final Ieport of the select committee submitted to Parliamentin November, 1993, does no more than to merely
Ieiterate the threep the majority On 11 additionally notes 1993 members of "that wherever the permited, prepara elections in the should Commence'
Criticism can be this report On Seve
Firstly, in prese the signatoriestOth have not only failec any tangible solutic they have also displ and total lack of un full dimensions of hand. Even the denominations Wh Party Conference C
, ,
Firstly, in present the signatories committee haven come up wi-fy to the problem, displayed their n lack of understal dimensions oft har
sensitive to the p( the times and wer more far-reaching p of ending the pro
peISOnS.
Secondly, it is í ambiguity Containe particularly with IE above, as regards a of devolution as C and (c) above, p Concurrentlist, arec to hide the lack InOvement in meet aspirations of the people.
Thirdly, with re. above which IE establishment of t of administration and Easten provinc that rather than tryi in reconciling the C
Counte
December 1993

Polics i
oints agreed toby )ecember, 1992. It that, on 21st July the PSC agreed security situation tions to hold local Eastern province
levelled against ral CountS:
nting their report eSelectCommittee d to come up With on to the problem, ayed their naivety derstanding of the the problem at clergy of all O Sat. On the All of 1984 were more
ing their report
to the select
of only failed to tangible solution : they have also aivety and total iding of the full he problem at
olitical realities of eable to agree on IOposals, like that blenn of stateless
apparent that the ?din the proposals spect to point (b)
dopting a Scheme.
btaining in India ertaining to the leliberate attempts
of any forward ing the legitimate 2 Tamil-speaking
spect to point (a) Commends the wo separate units for the Northern xes, itis regrettable ng to move forward onflicting points of
rpoint
views on the Crucial issue of the 'unit of devolution', what the Committee has done is to go back on the points of view presented by the UNP and SLFP through the Indo-Sri Lanka Accord of 1987 and the DPA manifesto respectively. It will be recalled that the Indo-Sri Lanka Accord provided for atemporary merger to be followed by a referendum which left the possibility of the continuance of a single province in the hands of the people. The Programme of the Democratic People's Alliance (DPA) which was the manifesto of SLFP leader Sirimavo Bandaranaike in the Presidential Contest in December, 1989 was emphatic that "there shall be a predominantly Tamil unit comprising of what is the combined Northern and Eastern Provinces but excluding the area covered by the predominantly Muslim unit' and that "thereshallbeapredominantly Muslim Unit comprising the predominantly Muslim areas in the Amparai District as the base and identified predominantly Muslim areas in the Batticaloa and Trincomalee districts". It is also noteWOrthy that as disclosed recently, at the time of the impeachment in August, 1991 the SLFP and the DUNF had agreed that the present Northern Province and the predominantly Tamil areas in the Eastern Province that lay Contiguous would comprise a 'new North-East regional council, the predominantly Muslim areasin the Eastern Province were to come under a separate regional council while the predominantly Sinhalese areas in the Eastern Province Were to be linked to the Central and Uva PIOVinces.
All this forward movementhas been lost overnight with the select committee's "non-report. The only good that has Come from its presentation however, is that it has ended months and years of false expectation, that it had the magic formula that could help end the prolonged war and evolve a lasting political settlement to the ethnic problem. Mr. Mangala Moonesinghe should be ashamed of himself for having helped the Government drag on this farce.

Page 12
The Hotel, The Sca
ight from the beginning it was clear that the Hilton was destined for preferential treatment. The SevenaCIeSoflandon which the hotel is sited in Echelon Square was a "gift from the late President Premadasa. Howelse canone describe the 99 year lease at a total cost of Rs 125million, amounting to Rs 110,000/ - a perch, to be paid back over 33 years with no interest levied at all?
The fact that even these absurdly
easy terms have not been adhered to by HDL, who haven't paid the Urban Development Authority a penny is further evidence of the spiritin which this transaction took place.
MitsuiofJapan, whose local agents are closely related toformer President Jayewardene, Were a shoo-in for the Construction COntract for the Hilton. In fact, to this date the Hilton remains the One and Only private Sector enterprise which has receivedagovernment guarantee of its liability to Mitsui and Taisei (another Japanese m ult in a tional specialising in civil engineering Work) to Construct, equip and furnish the hotel. For
can be altered at Profitability for forecasts with W cost of building hotel were in Internationaland basis of these receiving the gove Mitsui/Taisei e agreements with of Construction deemed loans to
The basis for all the guarantees, t profitability analy the 452-room approved by the B March 1984 and
the UDA. Const
AVIha/ S7Ameresekere lr7 cor7su. AsVaran, APC, anosat
instance, none of the other hotels in similar circumstances received such COncessions.
The Hilton Hotelis owned by Hotel Developers (Lanka) Limited HDL who, in March 1984, issued a prospectus to solicit public funds on the basis of their plans to build a twintower 22 storey, 452 room hotel with basement parking for 400 vehicles. It mustbenoted that such a prospectus is a legal document and not one that
Taisei began short of these building the UDA. These b Submitted to the 1983 and ratified i The hotel was handed over in Ap operations in Jul October 1987 that that the hotel ha "evised'* Set of pli been approved or
Count
0
 
 

Indal, The Cover up
Will
casts and cashflow
ich to finance the and equipping the ade by Hilton WitSui/Taiseion the specifications. On Innent guarantees, intered into loan HDL where the cost und Supplies wese he Company.
these agreements, he prospectus, the sis and SO On Was plan which was oard of Directors in duly submitted to uction by Mitsui/
ration with his lawyers aneg orney Harsha Cabral
notice of the Board of DirectOIS. The changes can only be described as drastic. Instead of 452 rooms (known as bays) there were now Only 357, and the underground parking had been dispensed with altogether. Obviously, the hotel's ability to generate revenue to pay baok its loans was adversely affected by these changes. Most troubling, however, was the fact that neither the architects nor the Contractors had informed the Board of Directors or anyone else for that matter about these Crucial changes. In addition, the circumstances in whichtheoriginalplans were allegedly lost is hard to believe. The plans (Mitsui/Taisei's, the architects and even HDL's own copy) were supposedly destroyed in a fire at the site at 2.38 a.m. On 18/10/ 1985. The Fort Police Report on this fire is aS Strange a documentaSany. The Report which is undated does not. evenindicate the date of the fire, but states that the "Ieport submitted to us Fort Police by you Mitsui/ Taisei Consortium has been found to be completely accurate
y after On the basis plans approved by lilding plans were UDA in October
MaICh 1984. completed and il 1987 and began . It was Only in it was discovered been built to a ns which had not Yen brought to the
and honest." However, no copy of this report alluded to is attached, but the reporthas been certified and endorsed by the Police to be used "as evidence to the relevant authorities, Government Departments and also your Head Office in Tokyo." Such a
thoughtful and all-encompassing
endorsement must have really touched Mitsui/Taisei to the quickl Particularly since fires like this are gettingtobemore and morenecessary
point
December 1993

Page 13
'poqsisquiso uɔɔq stų ɔsɛɔ ɔsɔŋ tusid eJəŋv~
!sjoɓəJIGI Jo Kisloseu əų) |||| susodde opurusajojoissuswə ŋɔɔuỊsajouạų || Ist: 'sitoÁ Jnos Joao əsuɔdxə wÁIaestues auņuɔ引权, ș əųı urısı adolu ɔIIqnd əų, 1soɔ ŋosui qosqa ||ă*M:冰輯鱷) pnej otsi joj ɔIq|suodsol Ásoleunin sỊ oụA행, ,シスぶ so|-[1]IIIļul OZI əų) szÅ}
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Q}(\|)/, sŻ}}\'(s|ss) o aez
| nasınırız so urząrae sārt,
Counte,
December 1993
 

Cover Story
;suoquạtu sų jo ɔuo 1supeŝt. aoțießøst, ut susito|prispo uț [t]uedius 9q OTS øų, Uto Jesuɔppɔɛ potuð0p 0q spurputus suņumoɔɔɛ jo uosiesoļA əų, upp ɔx|rısır sısɔŋɔnus suņɔIŲu0ɔ Åŋɛŋuɔŋod puɛ əỊdņȚntu ņIA メ&ns0101ư| 8uŋɔIŲuopųısa stlusjoA11|pne Åslepiedus joispne ɔuoueo ;slunoɔɔŋ guðsmpntaj ŝuļÁJsliðɔ Joy Ál]]|q|suodsɔɔ ɔxt:1 ssnui olỊA 0:15 aðqtuotu pub botipus g7 401004, TGH os suosipny suostuoụlosopotspuo' 'totiputadoņuos otsussə[lA'q'0'0'uW
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•••• • • • • • • • a^a^ , , ay maauu un fo sr. , & sewn irne
II
point

Page 14
in Japan.
To make matters worse Tokyo claimed that it had lost its Copy and the UDA, MI. Premadasa's first love, had just as mysteriously lost its Hilton file. Thus, it was not possible to compare the new plans with the Original Ones, though it does seem more than a little strange that the old plans went up in Smoke just a month after unauthorised new plans had been surreptitiously sent to the UDA for approval in September 1985. There is a minute on file at the HDL office to say thatits plan copy was "boIIowed by the Japanese architects" and was
of whom Conel and Managing D an interest in aIO
Mr. G. C. B. Partner, Ford R. (FRT) who are au not disclose that responsible for au. of Mitsui/Taisei. F. of L. B. Finan Substantial intere There is clearly ac Mr. Wijesinghe's ments here. Thus, the Directorate We the reliability of
Sir
2_ *盔 . fa: È AB AF AMWACE. AMMt މ<&ވ.it/4
(€C›/ ሥ సడిసే O/498 MMAumet^ gomaeos
VG3d
台 ! -92 سن نسبت به حساسیس سنت
-*ržY-~--~
ب – سير جعجع./ - /
- بجیحته سیست
عنہمســـــــــــــــــــ
* 実ー之
ーン一つ\ حسمبر
"burnt in the fire in 1984" which is more than one year before the actual fire om record
FAMILYTIES
Mitsui had long since made Delmege Forsyth & Co.Ltd.itsagents for its business activities in Sri Lanka, whose Chairman is Ricky Mendis, married to Charmaine -- the mother of J. R. Jayewardene's three grandchildren by an earlier marriage to Ravi Jayewardene. Delmege through its subsidiary Company L. B. Finance, purchased 2 million rupees worth of shares in Hotel Developers Limited (HDL), the owning Company of Colombo Hilton which is approximately 0.5% of the totalissued share capital, the rest being owned by the Treasury (64%), Mitsui (28%) and about 1000 public shareholders,
Annual Report for 3/1990 of Hotel Dev was blithely audite FRT despite the Wijesinghe was
Company with St. interest in HDL. On a partner of the au other. During the
Counte
2
 

Perera, Chairman ector of HDL, has hd 1.25%. lijesinghe, Senior des & ThOIntOn itors to HDL, did his firm was also iting the accounts is also a Director e which has a in this Company.
accounts, a Director of HDL, Nihal Sri Anneresekere had challenged the value of the building Stated in the balance sheet, and this was brought in as Supplementary Note 19 in its final form. The auditors had advised HDL to also include, as a post balance sheet event, the fact that the change in the value of the buildings and fittings would also affect the total figureshown as liability to the lender,
nflict of interestin which instead reads in the annual multiple commit- report as "This may also affect the na Context wheIe
sitself split about he accounts, the
total figure shown as liability to the Contractor under the Construction agreement dated 31/1/84." This is a
RANSool... Maig airb Abo* 8-مايو، ومن
Ko. 0. CF:RS
s
2|307. |727-FMB/g|O/Sog| రంల CAIXA-S9 eratreg» * osso. 1425. Sawarx. ఈ9లిడ. 227A72A Arts rece> دع ! 257-2 2 (242 (262).
ーエ>るー 。目○/5 ヌ
--
zaseosub గAు *zeター ** :-...' saoa ..... : : ra-Cas 3ee - -- - 3. S, 石x→ー・。ー/ラkづ |fcce రిడ >ഷത്ത foඳව ܝܵܕ݂.ښې سند ستا نه • ግን•ouፍù ነPF፤%፣ calist
sHAREsi_リごご---一て ***جحاجی جمہ:خ TE I no of St. 一 ーーー t ? جبر مبن 狮 is
92 300 22.50 0.50 o1.愛空 リ説 魏器 o1.92 裳 of .92. 360 26o oil.92. 13,899 ነ : 26.oo : of .92 2,600 2£66 of 92. 3、999 リé a 1.32 2009 oo ot. 92 2099 soo o1.92. 3, oor oo , oi.. 2 ; 2,099 o.o.o. of 92 5,599 : ; ; oox ; 》。ó。92、 39o, 5 of 32 2009 too j.et..923 $ 40. o. o0. so 1-92. to 59 c. 25. o.ö! : 92. 09ه به . . | oo --92. 39 too
2,399 {{ 3.01-92 io9 . . . is 3. ο ι : 32 και 9 - so 3ol. 32. 4,999 t - 26.-ში # is...ot .92* 5509 too to .32 2.99 is .92 250 - ; * oo
29.99 3.
o: , Ao.998; eyear ending 31/ clear case of misrepresentation for in lopers Ltd. (HDL) ... the mind of any person there cannot and endorsed by
fact that Mr.
Director of a Stantial sharee One hand, and ting firm on the eparation of the
point
be any doubt regarding the degree of Certainty conveyed through "would" and "may". Substitution of "Contractor" instead of "lender" furthermore shows a keen interest in
the Contractor Mitsui, and raises questions on the all-consuming role
December 1993

Page 15
played by the Contractor in this controversial project. Moreover, the liability to the "lender" directly affects the Company (HDL) since the lender must be given the money back at Some point, whereas liability to "the contractor" distances the liability of HDL.
It is interesting to note that this Concern for the Contractor by HDL is given new meaning when the Chairman LB Finance, Mr Eric Amarasinghe appeared as lawyer for Mitsui, in the Subsequent Court action instituted on behalf of HDL itself by a shareholder against the ContractOIS and architects
When Nihal Si AmeeSekere appealed to the Government to investigate what appeared blatant fraud to all but the other DirectOIS of HDL, the State brought Justice JFA Soza out of retirement to Conduct an inquiry into Ameresekee's allegations. Whilst the choice may never be ideal, it is nonetheless astonishing that the learned gentlemanaccepted the briefknowing full well that his son, Harsha Soza, married to Ricky Mendis's niece, was a Director of two Companies in the Delmege Group, who in general have been agents for Mitsui products. Moreover, Mendis himself was one of those cited in the plaint as having aided and abetted the Japanese multinationals to perpetrate the fraud on HDL...NotSurprisingly, having taken en the assignment, he found "no irregularities in the implementation of the project". In the next phase of the Court action brought against Mitsui by Ameresekere, Harsha Soza was to appear for Mitsui, confirming, beyond a shadow of a doubt, his loyalties in this Conflict.
AND THE COWER UP
More recently, Continuing alonely Crusade, Ameresekere wrote to the Director General, SEC through his lawyer, in August 1992 drawing attention to 10 letters written to the Commission during the period August 91 to March 92, calling for their intervention in matters that clearly contravened Sri Lankan law. He
charged that the deliberately failed take action again investigate these C the interests of the public in general judicial power to lo all safeguard this v In addition to thi taking any action a financial misIepes published annual the attention of the for the years 198: were Rs 393m,
respectively. In ea the interest costs turnover. In other w Could not generate interest COStS, expenditure. Hes. 9/92, the Cumulat company, at RS 19 four times its shaI Inagrave case of he points out that metassets at 31/3/9 171m, whereas i massive deficit ( investing public misled regarding 1 position of the con months following published, the shlí Rs 10/- per sharet LB Finance, of Wijesinghe, Seni auditorSFRT, is a DelmegeForsythi of their holding of the public, a
December 1993
Count
 

Commission had and neglected to st HDL, and to Implaints made in nvestOIS, and the y using its Senibk into, and above ery interest.
Commission not
tall regarding the
entation in HDL's eports, he draws SEC to the losses ) to 1991, which 43m, and 395m
oga ce sěgo os- c sa
22e3ascd c:à àco (L> حاا e رد Cع ) Gcuoç Gò
Cover Story
unconscionable profit, before theprice plummeted when the actual position was revealed. G. C. B. Wijesinghe is also a member of the SEC, and in an earlier letter to the Director General SEC, Mr Stanley Jayawardene, Ameesekere had questioned the propriety of G CB Wijesinghe sitting in at meetings convened to look into his allegations, ofacompanyin which he had a financial interest.
In his letter to Stanley Jayawardana, Chairman SEC, dated 28/12/1991, Nihal Sri Ameresekere charges the Chairman with failure to respond to
డని విశిద్దితి బతిచేులి "
rఐ8ఐరి 3.ucleo Gశ్రీ బగా మారగ్ర
గిదిలి గ్రాటియాబd oణితి రిedరిగా ఎరిd, లే ఖరి జిల్లింlad బఐGబkooులిబ 4GE5
deణుర బుడా6లి Gమిలిటీగార్మలిటీGd qటె6ణిని లరిణ్య బm qటిడిపో" లయరద బరు
- N-N-N-
hyear mentioned, exceed the total 'Ords, the company Sales evento cover let alone other ates that upto 30/ ve losses of the AAN, S NOTEe Nam e Capital. misrepresentation, y misreporting the 0 as a surplus of Rs reality it was a f Rs 1306m, the were deliberately he actual financial pany. In the three the report being re price IOse from ) Over Rs 40/-, and Which G. C. B. ) Partner of the Director, as well as selfunloaded much 00,000 shares onto what is an
rpoint
Several Serious irregularities in the published company accounts of 90/ 91. In particular, he refers to the fact that the company has understated its Current liabilities in contravention of accounting standards that give the company a surplus of Rs 171 million
NStead of We aCVal defiCA. O RS 1,231 million. The regulation which is legally binding by gazettenotification clearly stipulates the Condition under which the Current liabilities falling within the forthcoming 12 months may be excluded from the statement of Current liabilities, for example in the case of refinancing. This requirement attempts to safeguard both existing and potential investors, to convey unambiguously, the liquidity position of the Company, its ability to service its long term debt and remain an on-going concern.
Instead, HDL has misstated its true position to show a COInfortable financial state when, in fact, on its OWIn admission, its inability to service
13

Page 16
debt had defaulted in both Capital and interest, circumstances under which noImally winding-up proceedings would be instituted.
The effect of misleading the public has been to sustain their interest in the share as a financially sound business, and permit Continued trading of share in the stock market. The movement in share price cannot be disregarded in the events immediately after the publication of thein-effect falsified annual accounts. The price moved from Rs 10/- to Rs 22/50, an increase of 114% following the ColomboStockExchangessletter Overriding Ameresekere's objections, and, for all intents and purposes, confirming that there were no inregularities. AS mentioned above, the share price went upto Rs 40/-, and LB Finance disposed of its shares in the Company in a steady stream of instalments, making a handsome profit at the expense of the deceived public. The recordshows, for instance, that on January 9, 1992 just as the controversy was at its height, L. B. Finance sold 31,700 shares at just over 40/- per share. When the Company, in an undated circular admitted that they had Contravened the accounting standards, the price fell to what they were considered worth, by which time LB Finance and its sister-Companies had made a killing. One can hardly envisage a 300% price increase on hearing that the Company had a deficit of Rs 1.2
billion, nor even that it couldn't.
generate sufficient funds to meet its loan interest, let alone capital plus interest. Can anyone under these circumstances honestly say that these amazing events were Simply a miracle via the Fairy Godmother's wand?
Despite drawing to the notice of the Chairman, SEC, this gross matter of misrepresentation in the annual report, the Commission did nothing, although its own gazetted rules Iequired the share to be suspended from being traded. In other, less influential instances, the SEC has been known to "interfere" as in the case of Kelani Cables and of Cargo Boat Company. What compounds this shocking state of affairs is the attitude
(HR0N0I
Preliminary Agreen of the Colombo H agreement. Proje Profitability forecast original plans Letter of award for C Original Plans subn 99-year lease of 7 ac Investment Agreeme Supplies Contract Supervision Agre by the Attorney C Government Guaran Plans approved by U Prospectus issued by Construction by Mit Agreement Signed Requests for Progres New set of Plans sui Board approval di Fire at Construction including HDL's C Architect's compl M/T. Change in p Hilton Hotel opened Mitsui SubmitS reviS
original plan of 4 Discrepancy in numbe. Mitsui profitability fo
actual number of Memo to Board by Am
serviced even with Final Inspection by Request of independ
inspection by Di between architect Choksy upholds arch Final Inspection Cert Still no reference 1 Mortgage of hotel pr done despite Boa Commitment to mot Secretary/Finance DirectOI AmeeSekeI writing to any pa fron architects. H nnonies should be Choksy accompanies Paskaralingam wł of which $1m fro Choksy's second lett despite Ameresek Illegal Substitution Ol reported to the BC Government Directo
guarantees Were Ameresekere's Men
14
Counter

OGY OF EVENTS OF THE SCANDAL
nt signed with Mitsui/Taisei for construction ilton. All costs and supplies defined in this t Plans of July 1980 reconfirmed March 1983
by Hilton International and Mitsui based on
March 1983 onstruction to Mitsui/Taisei March 1983 tted to UDA October 1983 es at Echelon Square January 1984
int, Construction Agreement,
ioan Agreement and Design and ment entered into as approved
eneral January 1984 ees granted ی February 1984 DA March 1984 f HDL March 1984 jui/Taisei begins Makch 1984 April 1984 s Reports on construction July 1985 Dmitted to UDA, without scovered in March 1990) ܫ ܫ September 1985 Site Office at which all plans, 'opy "bortowed" by Architect, bunt October 1985 etion certificate given and hotel handed over by N
lans not indicated April 1987 for operations میر M July 1987 ed profitability forecasts on the basis of
2 rooms July 1987 of IOOms discovered by Director Ameresekere October 1987 recasts changed to tally with
rooms (387) October 1987 eresekere stressing that loans can't be 100% occupancy at a rate of $100.00 per day December 1987 Architects conducted March 1988 ent engineering examination and ** ector (Govt) Fernando who alleges connection
;S and construction companies March 1988 itect's Completion certificate August 8, 1988 ificate by Architects submitted.
(O change of plans August 25, 1988 operty to Mitsui/Taisei,
d's rejection July 1989 gage hotel to Mitsui/Taisei discovered. ................. -
directs deletion from Agreement November 1989
e raising discrepancies objected in yments to M/T until clarification received estates, unless matter properly resolved
refunded to private shareholders December 1989 ! Cornel Perera and Mitsui/ Taisei to meet ere $2 million paid to Mitsui/Taisei,
in govt funds January 1990 er ratifying Architects' Inspection Certificates, ere's detailed protests February 1990.
plans discovered by Ameresekere and
ard MC 1990
Shanmugalingam reiterates that fiven on the basis of original plans March 1990
to the Board indicating the serious nature
int DO December 1993

Page 17
of the problem and suggesting arbitration HDL admits that it does not have Bills of Ouantities &
Final Measurements to support Architects' certificates Cabinet-appointed committee assigned to negotiate with
Mitsui/Taisei J.F.A. Soza (retd. Supreme Court Judge) appointed by
Finance Ministry as one-man-committee to investigate this and finds no irregularities Deletion of nortgage clause surreptitiously included in Agree. UDA discovers that it doesn't have original building plans
approved in March 1984 HDL admits not possessing owner's copy of original plans HDL admits not possessing Original schedules of furniture,
fixtures and equipment of the Supplies contract with Mitsui Ameresekere institutes legal action on behalf HDL against Mitsui/Taiseiaided and abetted by Some Directors, before the District Court. The derivative action is premised on fraud by wrong-doers controlling the company. Judge issues Enjoining Orders preventing payment to M/T Accounts for year ending 31/03/1990 certified by Auditors (F. despite serious discrepancies brought to their notice by A Accounts in violation of AG and Enjoining Orders of Court Ameresekere removed from HDL Board of Directors Ameresekereinstitutes Accounts Action in District Court preventing HDL from adopting the certified annual accounts of 31/3/1990 Wijeratine J issues Enjoining Orders preventing any payments
Mitsui/Taisei After having considered the objections of M/T District Judge
issues Interim injunction preventing any payments to M/T as there was no basis for such payinent Second of many complaints (in over 12 letters) by Amereseke to Stock Exchange and Securities Council regarding acco violations. No action to date Application to Court by Ameresekere to conduct architectura
inspection of hotel premises Solicitor General Shibley Aziz appearing for HDL opposes app Ameresekere for an independent architect's inspection an examination supervised by Court on grounds that it would affect interests of M/T Interrogatories filed in District Court by Ameresekere M
Justice Palakidnar, President Court of Appeal allows Mitsui/Taisei and the Japanese Architects leave to appeal against the Interim injunctions. Choksy and Shibley Aziz S this application. مح۔ Arneresekere allowed Special Leave to Appeal to the Suprem
by Justice Bandaranaike. Choksy and Aziz refused pernission to participate Supreme Court presided by Chief Justice G.P.S. de Silva uphic
District Court order and issuance of Interim injunctions. : The judgement states that Ameresekere has established a prima facie case of fraud with real prospect of successe the light of the defence. The Interim Injunctions were gra to prevent "syphoning out of money" from the Company a the Country Repeated requests supported by specific charges and
evidence by Vasudeva Nanayakkara, MP, to President to an inquiry into this fraud (In addition to letters dated 08/8/91, 05/9/91, 18/11/91, 17/12/91) Jan, Choksy resigns from HDL Board of Directors on becoming a Cabinet Minister
Counte
December 1993
 
 
 

April 1990
April 1990
April/May 1990
: issue,
May 1990 ment May 1990
June 1990 July 1990
September 1990
September 1990 RT) meresekere. November 1990 December 1990
January 1991 to
January 1991 Wijeratine
October 1991
e inting
October 1991
March 1992
lication by
March 1992 arch, April 1992
upport
January 1992
e Court
May 1992 lds
ven in
inted
d December 1992
nitiate
eb, March 1993
June 1993
point
Cover Story
of the Chairman of the Securities Council, Stanley Jayawardana, and the Council's careless Callous disregard for its own mandate in the face of the fraud taking place and being brought to their notice. Jayawardana adduces a host of excuses which are merely alibis for inaction and evading an investigation into the Complaint because of obvious vested interests. For example, inadequate staff, pleaded by him, cannot be a valid excuse when a three member committee should look
into the complaint.
Clearly, if the Commission did not intend to investigate Such cases it really has no raison d'etre. Moreover, he states in the DailyNews of 9/8/91 "I would like to assure investOS that the SEC is deeply conscious of its responsibilities toprotect the interests of investors and invite investors who have Complaints or constructive comments or suggestions to write to the SEC." And later in the third of a Series of press advertisements, "most certainly, you can expect that all valid complaints will be looked into indepth, by either the Stock Exchange or the Securities & Exchange Commission, who will make a full inquiry and take the necessary action."
Jayawardana is his reply to Ameresekere of 3/12/91 then tries to justify his inertia by using the popular dilatory stratagem of "subjudice". As Ameresekere points out this refers to a Court action brought against Mitsui/ Taisei for an injunction against payment of dues by HDL because
they had not completed the
construction of the hotel according to its proSpectus and the Original plan, allegedly burnt and lost, at the hotel site and at Tokyo and the Urban Development Authority respectively Misrepresentation of company accounts and the Construction Con are clearly two different matters, but it is in their Coming together that they Constitute the cover up of the decade.
As the matter had been On the agenda for discussion at the immediately-following meeting of the Securities Council, it is important to note that G. C. B. Wijesinghe, who had already allowed the inaccuracies
15

Page 18
and misrepresentations to pass, was present as a II e Iber. He Was also a Director of LB Finance at the time whose Group Chairman's activities Were being called into question here. In keeping With Section 9 of the Securities Council Act No:36 of 1987, he should have disclosed his statusas an interested and affected party and Withdrawn from the proceedings, AImeresekere and his battery of distinguished lawyers have established a pioneering action in the Court proceedings against the directors of the company for aiding and abetting Mitsui Taisei in their alleged attempt to defraud the shareholders, the chief of whom is the Government. The lengthy a Ild detailid CCITespondence undertaken by and on behalf of AIIleresekere with the SEC shows clearly, through the SEC's shallow and Ewa SiWe Ieplies, that What h:15 happened at that end is its deliberate and determined endeavour to do nothing at all. The additional questio I foi OIdinary CitizEINSCOICE IIIs the fact that if Ameresekere -- a man of resources and temacity, a fullyqualified accountant of stature and seniority in the professioncannot make himself heard by the SEC, what can the rest of us expect of this institution which has been set up to "protect the interests of investos"
Mr.K.N. Chok sy’siirwolvement in the cover up is perhaps the IIlost shocking of all. A Director of HDL, Choksy acted as a Cat's paw of the Japamf:GE: Cợntract0I8. Sr}[]T. afLET AImeresekere informed the Board of DirectDIs that the ColoImbÖ Hiltol Hotel had been Constructed on the basis of a reduced number of IOOIns (387 instead of 452) without prior approval oI Ievised profitability forecasts, the Japanese Executive Director had inti Inated that the Japanese architects had conducted their final inspection in March 1988. In the light of the serious discrepancies that had Come Lo light by then, a gOWeIII lent-appointed Director,
chartered accoul Fermando had u IgE an iпdependеп examination and ins Out, stressing thcob between the Japa Mitsui Taisei and Architects.
It is a telling ir
Situation the Japa: Executive Director h seek refuge in Ch MIber of Parliailler legal luminary in OIC do his dirty Work. Ci advised the Boar Directors by letter ( 8/8/88 that it was Ille-Cessary to COmduli independent inquiry that Mitsui"Taisei WM Flotbebound by it. CF als 0 Städted Lihat
architect's "inspectio CerlificationisäTade to both the Board and
I
CoIιηίεημ
 

tant M. T. L. that the Construction is in OIdar in il the Board that every respect." All this on the basis of engineering a "Completion Certificate" submitted Xection be carried by the architects Kanko Kikako ious Connections Sekkeisha Yozo Shibata & Associates, ese COntractors a two paragraph letter dated 30/04/ the Japanese 1987 without Bills of Ouantities or Final MeasuIeIII lents to Suppo It it. It ny that in this does not take an accountant, much
less a legal Thind, to discell that such a Certificateis inadequate in the best of CiICULII StaInCeSS. In the light of the charges le Welled by AI Imeresekere at Board Meetings and in Wiiting, Choksy's beh aʼWiO uI is inexplicable except. On the grounds of personal gain. In fact, On 28/02
N
li ripetti
IIIB5E ad LJ
還
Çık:y, -
la Indi it to hoksy d () iated
i IlԱԼ
tal and ould Lok Sy
lhe land
(ta t. ༣ཐོ་
guate protection 1990 he Writes reiterating his positioI1 the shareholders that both the Certificate of Practical
றil
December 1993

Page 19
Completion and the Final Certificate (dated 25/8/1988) issued by the architects "are adequate COverage that the Hotel Construction work is in conformity with all the stipulations of the Contract" despite the fact that he is responding to Ameresekere's Memorandum to the Board of 13/12/ 1989 in which he quotes the construction agreement with reference to the number of floors (22), IOOms (452) and floor area (39,042.3Sq.metres), and expresses his dissatisfaction with the
Completion Certificate in that it has
neither numberS or quantities in violation of conventional practice. If Choksy were to be deemed honest and non-partisaninthismatter, One would have to credithin with such coloSSal stupidity and Crass ignorance that is beyond belief. Then, there is the evidence of Choksy's active intervention in obtaining payments
for Mitsui/Taisei despite Board
opposition and his gratuitous pleadings in the Appeals Court, all of which irrevocably tamish his boma fides.
Choksy is also disqualified from being an MP according to Section 91 (1) (e) of the Constitution where it states that "No perSon Shall be qualified to be elected as a Member of Parliament Or sit and Vote in Parliament if he has any such interest in any such contract made by or on behalf of the State or a public Corporation as Parliament shall by law prescribe". The Government guarantees given to HDL make for precisely the type of Contract that would disqualify a member under this rule.
The most blatant and direct case of bribery associated with this deal involves the payment of 340 million Japanese Yen (about 120 million rupees) by Mitsui to a dummy company in the United Kingdon for Certain Services rendered in connection with the realisation of the hotel project. The drequired services areidentical With what was COntained in Article 17 of the Investment Agreement which Cornel & Co., Ltd. were required to fulfill. More importantly, the requirements VNθΙΘ those that only the Government of Sri
Lanka Could delive exemption from CO for the Company ( the total exempt interest to be paid to be made by HI Agreement, the tot import duty On
equipment, the fav the Attorney Gene MitSui, and the Le by the Governmen Conditions for pa met and Mitsui pa tWO in Stallment December 1984 to S. C. S. Cloppenbu
Asian Bank, Ho million rupee ques that Could Only ha the Government v payment of mon acCOunt operated It is interesting tC that the then M. advised by the At recommended b' 1984 that no waiv be granted to the Constrained, the dissenting Opinio one wonders) o basis of which the
The Governme the Hilton Hotel
Coun
December 1993
 

(, Such as the total porate income tax HDL) for 10 years, ion from tax on or other payments L under the Loan al exemption from all materials and Ourable Opinion of rall as required by tters of Guarantee t of Sri Lanka. The yment were duly id this amount in S in April and the account of Mr. Ig at the EurOpean
ngkong. The 120 :tionishOW Services
We been granted by were ensured by the ey to a Hongkong
by a UK company note in this regard nister of Planning, torney General, had letter dated 2/3/ 8r Of Customs duties project. Choksy was refore, tO Write a n (in what capacity, in 6/3/1984 on the waiver was granted. nt's involvement in S two-fold. First, as
terpoint
Cover Story
the controlling shareholder with 64% of the share capital invested, it is a Concerned party to all dealings of the owning Company, HDL. Secondly, as guarantor to the loans taken by HDL, the Government must see to it that the Company is not in default or in danger of going bankrupt. Six of the eleven Directors of HDL areappointed by the Minister of Finance who is mone other than thePresidenthimself. The Memorandum and Articles of ASSOciation of HDL stipulate that the appointment of Government DirectOIS be made directly by the Minister of Finance who has the sole power to remove them at his discretion. The * Silence Of this majority Cannot be taken to mean anything less than the full and self-conscious Condoning of all that has taken place So far, and, by simple implication, the Covering approval of the man who has appointed them. and whom they continue to represent at the Boardroom.
The Supreme Court in its judgement observed in December 1992 that "it might be pointed out that it could not entirely be amatter of indifference to the Government". MOIe tham One year later this Governr intremains indifferent, not merely to its liability to the Ten Thousand Four Hundred Million Rupee (Rupees 10.4 Billion which is slightly less than the entire cost of Janasaviya for the past four years) claim made by Mitsui/ Taisei, but also to the Supreme Court itself.
In their written submissions to the District Court, Hotel Developers (Lanka) Limited, whose major shareholderis the Government, states "that in the event that this Court finds that the averments made by the plaintiff Ameresekerel are legitimately entitled to succeed, this defendent will as a matter of Course take immediate action to protect its interest and those of its shareholders as circumstances WOuld deem fit" emphasis added). By its own admission, then, HDL stands indicted Since "immediate action" has taken the form of utter inaction at best, and Collusion to defraud at WOISt.
17

Page 20
ìe Sri Lankan military goes into the 12th year of thē wai With a new Commander, Major General Gerry Silva. In a year that the military as a whole and the Army in particular faced a Series of disasters, the appointment of the new Commander with years of experience in the battle front and highly respected by his men is the Only bright spot in what was a bleak year for the military.
The Army suffered major setbacks in Weli-Oya, Pooneryn, Kilali and Wettilaikeni without any success in the Northern theatre during the year. The Kilali Operation aimed at improving the morale of the soldiers backfired. Other than for Some Successes in the Easten theatre the Army has little to celebrate in 1993. To make matters worse despite being on the defensive the whole year and losing around 400 million rupees worth of military equipment to the Tigers the Army also suffered heavy casualties. .
A time for realistic
. Waruna Ka
Killed in action i
Amy - 601 Navy - 27 Air FoIce 04 Police/STF 51 Home guards O3
Total 686
One of the main setbacks is the Go first policy which d any military sense can keep the LTTE Northern theatre at This is a difficult ta that has already OV itself holding on to important areas in common sense for
Unlike these ruins of Jaffna if helped create, the Arn
77he new Commander's task is to forge a more
Counte,
8
 
 
 

runatilake
Missing Wounded laction in action
340 1276 100 81 00 06 01 54 00 07
441 1424
reasons for the
fernment's East oes not make unless the Amy occupied in the the Sane time. sk for an army er stretched strategicallyunthe North. It is the Army to pull
ong-term planning
Out of these areas Such as Pooneryn and the Wettilaikeni-Elephant Pass COIridor now held for reasons of prestige rather than for strategy. It is up to the new Army Colinaide
to persuade the politicians to
accept it whether the Sinhala chauvinist lobby in Colombo likes it OI not. WaIS are not. WOn On prestige but on strategy and tactics
and the ability of the Generals to
use their troops to the maximum advantage. Tying down thousands of Soldiers to hold on to these areas
has deprived the Army of its ability
to launch offensive Operations as well as rest and give refresher training to the fighting battalions which have served in the battle areas continuously since June 1990. No army can keep on fighting at this intensity without rest and this is one of the main reasons for the high rate of desertions and the slack in discipline. General Silva, the first infantryman to command the Army since General
y appears fo be lin a shambles of lits own makling.
umane, Vermore profess/ona m//tary force.
point
December 1993

Page 21
Weeratunga will know better than anyone else the importance of training and of keeping morale at a high level for the foot soldier. No amount of Sophisticated weaponry is going to help the AImy in battle unless the infantrymen are motivated and well-trained to fight. The unbelievably short training given to SoldierS merely to increase the numbers in the AImy has proved to be a disaster already. It will be Suicidal for the Army to continue this policy. It is better to have less numbers of Well trained well motivated soldiers than larger numbers of badly trained Soldiers Who Cannot be blamed for running away from a fighting force as fierce as the LTTE. Therefore, much longer training for recruits would be the answer rather than throwing them into battle after just six weeks of basic training.
In this background General Silvas extensive experience both in the North and the East which he Commanded and the respect he commands from his officers and men Will come in handy in COIIecting the fundamental weaknesses in the Army. General Silva, an officer who was ear-marked for the top job in the Amy for years but was always in the shadow Of his charismatic batchmate General Denzil Kobbekaduwa will have his hands full in putting the Army back into an efficient fighting force. His undoubted financial honesty in a country where Generals, politicians, bribed by businessmen make hundreds of millions of dollars by buying either sub-standard or over-priced military equipment at the COst of providing
basic Comforts to frontlines, and his fairness not only i men but also ind ethnic Crisis as a
not going to gett the doldrums it hi post Kobbekaduw period.
General
challenge will war on the ba
priorities
prio
politician
short-term Pleasing pe cost oj
soldiers and t
guarante ea
General SilvaS
will be to fight th of military prioriti priorities Set up their own short-t Pleasing politicia alienating the Sol officeIS is a guara
Coun,
December 1993
 

Battle Lines
the Soldier in the
Ieputation fOI in dealing with his ealing with the Nhole alone, is he Army out of LS fallen to in the a-Wimalaratna
豪 毅
Silvas biggest
towards early retirement. It is the soldiers who are fighting this war and dying because of it, and not politicians and the war mongers in the south. It is better for an AImy Commander to get sacked for Iefusing to bow down to political pressure when it has negative consequences on the AI my rather
than lead it to One disaster after the other, which is inevitable if the military hierarchy is willing to please a bunch of not SO Smart politicians at any cost just to get their next extension of service. That would be a sure way for General Silva to lose the great amount of goodwill that has been generated within and Outside the Army following his appointinent.
Since 1983 every Army Commander preceding General Silva were men in a hurry who rather than taking a realistic long term view of the War Were aiming to end the War
be to fight the
asis of military
rather than on rities set up by s for their own political gains.
liticians at the f alienating the
he officers is a
during their time, to Satisfy their own egOS. General Silva would do a great service both to the Army and to the country by not making promises to end the War in "six months" and instead put the fundamentals in place and prepare the Army for a long battle. In the unlikely event of the politicians
dway towards rly retirement.
Seeing the stupidity of fighting the LTTE without a political package to COIIect the legitimate Tamil grievances it would
biggest challenge e war on the basis es rather than on y politicians for
erm political gains.
ls at the COst of diers and the inteed way
strengthen the military and drastically improve the chances of ending the War SOOner than expected. But to Count on this Would be foolhardy. The ultimate test for General Gerry Silva will be when he hangs his boots after over three decades of army life, whether he can do so with his reputation intact.
erpoint
19

Page 22
THE SAFEST HIDE ONE'S
The discovery On January 3, 1994, of a mass grave a electorate approximately 150 km from Colombo, is aware that similar sites are not uncommon in the the location of the bodies just beside the TeleCom Suriyakanda (elevation 4400 feet above Sea level) heayily guarded and policed day and night for the that the bodies were dumped by those whose acC question. The road is difficult at the best of times, requirement of personal transport. Second, Suriya Embilipitiya, the location of arguably the most mea a period of meaningless and inhuman massacres' allegedly abducted and murdered for no apparent remains of these children. The Embilipitiya inciden Outrage has so far not resulted in any prosecution, known, due, it is said, to the absence of physicale at Suriyakanda, in ɛn abundance that indicates tha buried than will probably ever come to light.
A panoramic view of the terrain that takes in bot Towers, showing that the perpetrators could not,
Coun, 20
 

PLACE TO SKELETONS
Suriyakanda, in the Kolonne significant even for those who are Outh and East of the Country: First, and Rupavahini towers at in a restricted area that has been last seven or eight years indicates Šs to such places was beyond Ombining a steep incline and the Kanda which is just 45 km from ningless and inhuman massacre in Nhere 31 School children Were reason in 1989, may unearth the t which caused an international though the perpetrators are Well vidence. Physical evidence there is at many many more brutalities lie
the mass grave and the Telecom and Rupavahini ave chosen this site by accident.
rpoint
December 1993

Page 23
This tell-tale Saffron robe is all that is left of a bhikku, one of many who disappeared during this period.
Ahotographs Chandragupta
Amarasinghe
The bodies, mostly of young people, appear to have been killed elsewhere and dumped in heaps, perhaps 300 in all.
Coun
December 1993
 
 

Images
The mother of one of the missing children from Embilipitiya is seen crying as she thinks she recognises herson's clothes among the remains.
erpoint
rp 2.

Page 24
OW are the tWO apparently distinct tragedies of the Handapangala elephant herd and the North-East Conflict related? The former is about 150 or so elephants displaced from their habitat by the over-extended Pelwatte Sugar Company, which have since posed a threat to local villagers in the Moneragala district (see Counterpoint of October). Both man and beast have died. One of the singular and noblest . traditions observed by a number of Buddhist sovereigns is the protection they afforded to animals, which included a recognition that they too had a right to an equitable share of space and IeSources to lead a fulsome life. In the Mauryan and Gupta Empires of India at the height of their glory, the slaughter of animals was banned. So too it was under Several kings in this Country. An instance that Concerns uS relates to Padaviya Tank lying in a region that Comprises one of the
very different value Whom despite Seve failings, tried to CO with the ideals of a Themselves COInin mixed origins, and Culture, the height differences of mod have been very alie
With "modernisa changed dramatica ACCumulation and maximisation tend Iestraints of an ear
intractable issues of
the Current War.
It is recorded that
King Nissanka Malla
77fs dead elephant can b egregious violence of c elephants are more
(A.D. 1187-96) successor to Parakramabahu the Great, declared 'Padaviya' a sanctuary for animals. Sir Emerson Tennant who was guided to 'Padivil Kulam' by the Udayar of the area in the 1840s testifies to the abundance of wildlife in the environs of the breached tank. Our ancient Buddhist kings lived in times of
nationalist mass pi root in the early y century, it has bee reflected these val modern age. It ap Symbols of langua adapted to clothe interests. Its narro Communal appeal
Count
22
 
 

Hoole repressive character.
es, and many of Communalism often
ral personal OverShadoWed COlonisation mbine kingship Schemes for marginalised | Bodhisattva. peasantry, particularly from areas in g from very the South where large tracts of land
living in a plural were given over to Commercial 2ned communal Crash Crop cultivation. Against this
entimeS INUSt backdrop the question posed was in to them. whether Padaviya and its northern ion', Values reaches, Manal Arti or Weli Oya, lly. belonged to the Tamils or to the profit Sinhalese. The state answered it ed to eclipse all unilaterally by using its amed lier era. The fOrCes tO drive Out the formes.
Although the Current politics holds the
ancient kings in formal veneration, their wisdom is Seldom respected. It was never asked if Padaviya belonged to the elephants and Other wildlife, as NiSsanka Malla had intended.
The region has now become One of conflict, maSSaCIeS and impoverishment, with the displaced Tamils draWIn into the LTTE's "Volunteer FOI Ce". The area, like Handapangala after - it, became of little e taken to symbolise the use to either man or purtimes Wheresome beast. The Pelwatte eợưa/ than others. . Sugar Company
became an exercise in replacing real olitics which took elephants with a White One.
ears of this The Handapangala elephants also in ably argued, bring into focus some baneful ues Of the features of current nationalist Dealed to ancient politics. The fate of the Kandyan ge and religion, peasantry in the aftermath of the dominant group British suppression of the Kandyan WneSS and rebellion of 1817 ConneS Out in masked its pithy, but graphic detail in Dr. John
erpoint
December 1993

Page 25
Davy's first hand account. He speaks of 'traits of parental attachment among the natives, and of Cool resignation to their fate, that have seldom been surpassed. He estimates at 10,000 the civilian losses killed in the field, executed or died of disease and famine'. Its effects are quantitatively
for the past. The ' been punished Wi disenfranchiseme. Violence. But ther genuine effort to of the values of th assess Options the justice to all and 1
COmparable with the Ongoing ethnic conflict, and qualitatively far InOIe Severe, OWing to the Smallness of population at that time and the absence of any international machinery Or relief. As for military behaviour, little has changed.
From the 1840s, using the Waste Lands Ordinance, the plantation economy was introduced to the Kandyan regions. Tamil labour brought in from India formed the new underclass. The
Aike the elephants be sofoffers Who died a Moneragala. Ae/wate an this sense, str.
land Owning Kandyan upper classes found the new breed of Low Country Sinhalese entrepreneurs a greater threat to themselves than the oppressed Tamil labour. They had to often transfer land to these entrepreneurs to redeem their debts. It is also significant that Anagarika Dhamapala, the leading nationalist at the beginning of this century, did not object to Tamil labour from either a Buddhist Critique of the new values transplanting the old, or from an understanding of the alienating nature of the modern political economy. His objections were rather based on the Tamil labour coming from the lowest strata of Indian Society.
To this day politicians and nationalists have faulted the British
these into a new the current unfort between the Kant and the Tamili pla show that 'divide and rule) neither British nor ended The 36,000 acIt Company among agribusineSS inve that little has Cha instituted in the I salmost the same plantations unde 1840s. ACCountal denied to the nat
peasantry who la
protests. Their di secured by force The fate of the has been parallel Sons of these na
December 1993
Count
 

TamiVieW
Tamil labour has th nt and physical e has been no make a reappraisal Le modern age, to at Will bring O incorpOrate
disillusioned peasants, who were drawn into the armed forces. Among the 300 raw IeCruits killed recently in Pooneryn were many from the Moneragala district. They had been sent for training on the front as a preventive measure against desertion. Such is the
reality behind the Iuling ideology
which makes a travesty of nearly all its benign pretensions.
The Tamils tOO owe it to their Weaker Sections now being sacrificed to ask themselves how much their OWn fate OWes to a rejection of the gentler and WholesOne influence from the past, while adopting values exalting a ruthless drive for material
fore them, many young
f Aooneryn were
Pad/ the var have become, sin
ange bedfe//ows.
success -- values which are therefore Conflict-prone. The blow received by the Kandyans has
from
politics. Indeed, unate relations dyan peasantry Intation labour
et impera' (divide began with the -
With them. e Pelwatte Sugar
Other similar Stments shows inged. It was mid 1980s in
ae aS the British in the bility was again ive Kandyan unched mass Splacement was and intimidation. native elephants 2d by that of many
Iginalised and
kept them down for more than 150 years. Can the Tamils afford the methods of their would-be-leaders that have closed all healthier options?
Coming back to the theme, the knowledge that peace between man and man Cannot be exclusive of peace between man and beast goes back before 700 BC: "The wolf also shall dwell with the lamb, and the leopard shall lie down with the kid; and the calf and the young lion and the fatling together; and a little child shall lead them... They shall not hurt nor destroy in all my holy mountain: for the earth shall be full of the knowledge of the LOd, as the WaterS COver the Sea".
These seasonal words of the Prophet Isiah were uttered when another Society was on the brink of a social and a moral Catastrophe.
erpoint
23

Page 26
irport and Aviation Services Limited, the state-owned Company that runs the Colombo International Airport in Katunayake is losing Over 500 million rupees on its duty free , l pping COmpleX folloWing political pieSSure to give further its to shop OWineIS who have used their political connections and pay-offs to highly placed officials to force the COmpany to make unprecedented COncessions after tenders were finalised.
In late 1989 Airport and Aviation Services Limited called for tenders for Operating duty free shops within the terminal building Of the Colombo AirpOrt. There Were Six Shops in the departure lounge and eight in the arrival lounge on offer. The tender specified a minimum monthly rental (the tendered offer had to be above this amount) of 350 rupees a Square foot a month and called for bids. The tender also specified a yearly 5% increase Onthetendered rental during he five year Contract. Another clause was that if 12.5% of the turnOver Was higher than the monthly rent the shop
OWnerS had to pay the higher amount.
The tenders wereopened on August 31st 1989 and the highest tender for each of the shops was well above the minimum price set in the tender. Those who bid for the tender say the rentals tendered would have been even more if not for the 20 percent
24.3 جيو Complex
selling shop-space foi
Business Turnovel
on all Sales and
charges that had t pOrt handling cha
Forexample, Sie - a month for a Shc of 78,050/- and Ab – a mOr Jh fOr a Sh( of 78,050/-. Uni-W for a bid of 75,0C rate Was RS 46,200 Companies made running duty free been profitable ev COnSideration the place.
The RS515,000) paid for theirs downto ameri no point did Air Services limite for fresh tende otherpräates would be inte more than this did the compan unfair on oth tenderers to m: decision withou tenders if the si not pay the
2d
Coun
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

r a Song
Tax (BTT) imposed the high landing obe paid, including
geS. Idles bidRS 515,000/ }p With a flOO'r price ans bid RS278,050/ }p with a floCrprice alkerS got OneShop 0/-. The minimum )/-. Obviously these these bids because shops would have en after taking in to taxes that Were in
- a month Siedles hop was brought eRs 31,2201. At port and Aviation ithink of calling Isto see whether ector companies 'ested in paying absurd price, nor think that it was er unsuccessful ke this arbitrary t calling for fresh op Owners could agreed rental,
9
The Shop Owners got a bonanza when in the 1989 budget the 20% BTT On Sales at the duty free shops was removed. Following representation by the owners' association the Government made more COnceSSionS. They were given Concessionary rates for the landing charges of the Port Authority which was 4.2% of the CIF value of the goods. The Government also removed the 2% stamp duty payable when Opening an LC for imports to the duty free shops. These StepS increased their profit margins dramatically.
However, the lessons of the open economy -- the never ending greed of the private Sector to make large profits at unbearable Cost to both customers and the COuntry --came into play in this instance as Well. The asSOciation using its Connections to the Late President Ranasinghe Premadasa lodged a Complaint that the rentals were too high. Amidst accusations of pay-offs to highly-placed officials the President Ordered Airport and Aviation Services Linited to re-negotiate the rents. By the end of 1990 the new rents were finalised and to every ne's Surprise they were fixed at RS 120/- a Square foot for the shops in the departure lounge and at Rs 140/- a Square foot in the arrivalloul ge. This is a 65% reduction on the minimum price demanded by the COmpa y in the tender. The real reduction on the tendered rentals goes to up to an unbelievable 93% for Some shops. The Rs 515,000/- a month Siedles paid for their shop was brought down to a mere Rs 31,220/-. At no point did Airport and Aviation Services Limited
think of Calling for fresh tendersto See
whether other private sector Companies WOuld be interested in
paying more than this absurd price, nor did the Companythink that it was unfair on Other unsuccessful tenderers to make this arbitrary decision without
alling for fresh tenders if the shop Owners Could not pay the agreed
rental. Counterpoint has tabulated
the loSS to the Airport and Aviation Services Limited from 6 of the 14
hopS during the five year period from 990 to 1994. When the Contract XpireS.
terpoint
December 1993

Page 27
Tendered amounts that sl
1991 '883 Add5% 55000.00 540750.00 175000.00 1837.50.00 200000.00 20000.00 12560000 1318000
76000.00 10000000"
1991
990 55000.00 39025 175000.00 23100 200000.00 39025 Singhagiri 25600.00 28000 Easwaran 7600000 28000 * St. Anthony's 100000.00 28000
Loss to Government per month
1990 1991 Siedles 501.725.00 528762.50 Uniwalkers 160650.00 169837.50 Abans 170975.00 181475.00 Singhagiri 103880.00 1047400 Easwaran 5,800.00 5579000 St. Anthony's 77000.00 82250.00
This
Despite this massiveloss of revenue the airport. The to the Government due to pay-offs complex is that in and political pressure brought on by have to bring goo the shop Owners association the duty free allowanC Government last month signed an They can buy duty agreement with them to open a new new complex up ti duty free shopping complex outside their arrival. A sim
Counte
December 1993
 
 
 
 
 
 
 
 

Expose
hould have been paid to date
1992 Add 5% 567787.50 192937.50 220500.00 13847400 83790.00 iO250.00
1992 39025 23100 39025 28000 28000 28000
1992 557.151.88 179484.38 192500.00 117397.70 59979.50 87.762.50
iiiiiiiiiiiiiii
(ationale for this OW the returnees is to match their e On their return. free goods at the ) One month after lar duty free shop
售993 1994 Add 5% Add5% 5967688 62595.72 202584.38 212713.59 231525.00 i 24301.25 145397.70 152667.59 87979,50 92378.48 5762.50 255063
1993 1994 39025 55750 2300 33000 39025 55750 28000 བ་40000 28000 40000 28000 40000
1993 Total Per year 157639,38 190567280 50997.88 6119662.50 54495000 65394.00.00 331751.70 3981020.40 167569.50 200834.00 247012.50 296.4150.00
40366739.40
iiiiiiiiiiiiiiiiiii
set up in the early 1980s in Colombo 3 was closed down after massive leakage to the open market. Even now if one has the right connections one can buy goods at duty free prices
from duty free shops in the airport.
The new complex will be built by the association and shop owners at the airport Will have the right to un duty free shops in this new Complex for 15 years without paying Iental. The basics of the Open economy -- free and fair competition-- is thrown out of the window to please politicallyconnected businessmen and those who make pay-offs to high officials. The fact that the country is losing InillionSofrupees amonthis, of course, not a problem for these politicians or businessmen -- both of whom WOrk on the basis of making the most amount of money for themselves while the going is good.
25

Page 28
nanopen letter
Ο those
C On Ce In ed
about the tea
industry, the Progressive Front of the TRI Staff ask whether the TRI has become the door Wedge in the path of progress of the tea industry. They cite numerous instances of defections from the scientific staff, in the face of ad-hoc appointments, favouritism by the Directors, and an Over-riding Sense of frustration and
low InOIale. Further more, they charge that professional envy and lack of direction has
Te a Rese a r
TeaCup il
resulted in research with interest only to the scientific community. Several cartoons too have also emerged from the local TRI Wit, in One alleging COIIuption in high places, and in another, depicting the quality of TRI researchina collection ofdogs Sniffing each others' posterioIS.”
In January this year an inquiry Was made into a TRI decision last year to recommend, and subsequently withdraw, the application of the fertilizer SUL-PO-MAG, thereby seriously affecting the Credibility of the Institute. The Consultant's report concluded that the basis of Iecommendation was not in accordance with normal procedures, that the test trials were not in the latest annual report of the TRI, and also made the general observation that a breakdown in communication between the Director and certain Heads of Divisions was apparent, causing Confusion in the industry.
Sensing belatedly that all was not
well with this im prestigious Institu Plantation Indus committee to rev This report was Minister in Augus IeCOmmendatiO COnsideration. Ti chaired by Mr. Pa Health Secretary, late Dr Balasuriya UGC and Chairma Board, Dr L. H Director TRI, Prol Faculty of Agric and several Di Department of Ministry of Planta Terms of re COmmittee includ *Review of reseal TRI in the shor
ΒΙΕΥ) o review of man
projects, progri * evaluation of pl
Coun
26
 

: h Institute
the management of staff * evaluation of Criteria adopted in allocation of resources for reseach programmes and balance in Ielation to the needs of the tea
SeCtOI * evaluation of the impact and usefulness of projects and progIannes
and many others COvering assessment of quality controlof IeSearch undertaken, effectiveness of advisory aid extension
a storm
portant and Once te, the Minister of Iies appointed a 'iew its activities. submitted to the it this year, and its
S ae e COmmittee Was nambalana, former and included the Deputy Chairman nRubber Research Fernando, former GunaSena, Dean, lture, Peradeniya, ectors from the Agriculture and tion Industries. erence for the ed: hobjectives of the medium and long
gement of reseach mmes and policies }cedure adopted in
under
and linkages to the industry, ensuring adequate staff t I a in in g, COn pet en Ce mOtivatiOn etC.
The TRI was established in 1925 with a mandate to research into and investigate all problems and matters relating to tea, to provide and publish information on the subject, and to provide facilities to students in tea research. Its stated mission is "to assist. in the achievement of an increase in the total income from tea growing in the country". The TRI has its main laboratories at St.Coombs Estate, Talawakelle, whose factory is Well equipped for research in tea technology. In addition, the Institute has a low Country station in St. Joachim Estate, Ratnapura, and Advisory and Extension Centres at Talgampola, Deniyaya, and Passara. There is a total of about 200,000 hectares of land under tea Cultivation, with an annual production of 250m kgs, and despite adiversification from the traditional tree Crop export sector, tea still generates the highest value added (income less material Costs),
erpoint
December 1993

Page 29
accounts for 21% of total exports, and far exceeds Garments in importance, which in any case remits over 70% abroad in fabric and accessory Costs.
Although Sri Lanka has a long history of being one of the two largest exporters of tea in the World, it is facing severe competition from India and several East African Countries. This is attributed to both nationalisation and all it entailed in the 1970s, and heavy taxes imposed on the industry, eroding producer margins. The resultis that the average Sri Lankan yields have remained at 1200kg/Ha, whilst India and Kenya achieve yields in excess of 2000kg/ Ha. This enables those Countries to remain profitable even when world market prices for tea are low.
It is vital then that the local industry is ably assisted and Supported by an effective TRI to introduce high yielding, drought Iesistant clones, more economical replanting methods, improvements in disease and pest Control, development of cost effective fertilizers, development in new value added teas to penetrate world markets, and savings in the CCSt of manufacture. Unfortunately however, this support has been lacking, and many professional planters blane the inadequate response of the TRI for much of the deterioration in the industry.
Interestingly enough according to a document "Views on the activities of the Tea Research Institute of Sri Lanka", by the Secretary General of the Planters Association of Ceylon (PA), Sepala Ilangakoon, addressed to the Committeein May 1993, the PA had requested a Presidential Commission of Inquiry into the affairs of the TRI way back in 1987. It had taken 6 years and privatisation for the Government to realise the urgency of the Iequest.
The 40 page report is a harsh indictment of the Institute's affairs, and confirms the views of the Association. Summarizing the Committee's observations is a list of shortcomings, permitting only a few concessions to a golden era which
ended in 1976. Not is that there "is n( provided by the T ...lacking Specific On pruning, Shade plucking". It criti and Compartner undertaken by the of the Institute, Ie and little OI no integ in cases of obviou research. It also
Critical evaluatio
undertaken to en adds that althoug Journal of Tea Scie the TRI, Containec articles during the had Ielevance tC
December 1993
Counte
 

ble in their findings strong leadership RI to the industry, recommendations manufacture and cises the isolated talized research
Various divisions Sulting in Overlap, rationOI COntinuity inter-disciplinary observes that no n of research is
uIe quality, and
h the Sri Lanka
hce, published by Several valuable last 8 years, few the Subject of
Expose
manufacture.
In its recommendations the Committee has sought to place the Institute as an organisation of prime importance Serving the national interestsinacrucialindustry. Therefore, research programmes should in future Conform to needs and strategies of the industry, and this too. On a prioritised basis. The question of quality is to be monitored, through periodic internal reviews, and economic evaluation for cost effectiveness. Restructuring of Some of the sub-divisions is also IeCOmmended to avOid u Innecessary waste, and strong emphasis is placed On a inter-disciplinary approach to projectS.
Several recommendations are also made to address much of the ad hoc and irregular staff management procedures adopted, through setting up a transfer Board, and standard procedures for recruitment and promotions. In the penultinate note, they place responsibility for Several lapses that have Contributed to the state of affairs at the TRI, on the Deputy Director (Administration) MI. Munindradasa, who does not appear to have had the knowledge nortraining in the required fields of finance OI perSonnel administration. Finally, the Connittee ends by questioning the ability of the present Director, Dr Sivapalan, to meet the challenges of the emerging industry, and recommends that the term of appointment of future Directors be limited to 5 years.
This report clearly now places the onus on the Ministry of Plantation industries, to either accept the report in its entirety and act aCCOIdingiy, or to simply proceed on a piecemeal fashion, perhaps, even appoint another task force of inquiry, and in effect, do nothing. However, with a marked change in direction by the private Sector management Companies, the TRI will have to metamorphOSe radically to meet the challenges of the day, or face extinction, Since it is unlikely that the CeSS, paid Out of estate revenue, that funds the TRI can continue to be justified, if only to keep a few fighting Scientists in clover.
point
27

Page 30
The milk of hu
estles has neverhad anything like a spotless Ieputation in the international community interms of its business practices. In fact, it's Ilot So longagQ that NestlES faced severe reprimands for its misleading advertising, particularly in the third World. However, even given this unenviable history, Nestle Länka seems to be in a class by itself. -
First, there -- Was the horre dous CircuIsta rice of the Contaminated milk imported from Central Europe. Only One container load Wasidentified as Containing radioactive substances, but Counterpoint reliably understands that 9. Ilmore hawe been inwoiced from the Sarne supplie in Poland. In the light of the following Ievelations and of their On-going labour practices, the most profuse of apologies from Nestle Lanka 围 يقتله - مسلسلة هي قلبية would ring hollow. 堕氢_奎
Certainly, contaminants donothave F. to be brought from abroad because 馨 ف= Nestle apparently specialisesin cutting
Corners which may have similarly disastrous consequences for Consumes. Take, for instance, the manner in which the Company cuts Costs that result from milk spoiling at
the various chilling Centres. Hydrogen F - Peroxide is allegedly used in large |- quantities to retard the spoiling of milk, thusensuring the largest possible - profit tle COIT, p} & W,
notwithstanding what Hydrogen EE Peroxide will do to the hundreds of thousands--- of people, from infants to Octogenarians, Who. drink the milk treated in this mannel. The . Nestle factory at Gonawila uses 1200 kgs of - Peroxide per week which means that consumers pay for and ingest Rs 50,000/- worth of this chemical 52 times a yearl
In the Case of Nestomalt, Milkmaid, Lactogen and Everyday, Nestle allegedly substitutes the cheaper Coconut oil for the less unhealthy butter oil, vegetable or palm oil. Thus it is that one can explain Nestle's monthly purchase orders for arould 25 metric tÖlles of Refined Bleached Dedderised Coconut Oil at a cost of Rs 1.5II illion. The reason why the coconut oil has to be refined, bleached and deoderised becomes obvious when you consider that it has to masquerade as, say, butter oil. The relationship between coconut oil consumption and cholesterol levels is clearly nota concern for the company. In fact, a Nestle product, Everyday, had to be virtually withdrawn from the Imarket after research analysts found that the Whitening substance used WaStaken from COCOIlut III ilk extI3Gt, İÖf precisely this reason. Heretoo the consumer was given no
Count 28
 
 
 

霹
man blindness
inkling as to the potential health hazards in the product, and this is anta Ino Inti to deliberately. Inisleading the ordinary citizen of this country.
ACCCIding to regulations, the ingredientSofall products Inust be included in the label and most people take it for granted that what is on the label is in fact included. A Nestum packet available in the market lists rice flour' aIIOng its Compone elements.
Evidence provided to Counterpoint indicates that "Wheat flour" has been surreptitiously and illegally substituted instead. For instance, Nestle purchased 30.15 metric tonnes of wheat flour from Prima Ceylon Limited on October 28, 1993 at a cost of Rs 341901- Whereas rice flour would have been much more expensive to the *| | COITETY. ت
The company produced Coconut Milk Powder |- and Lactogen using the same Inachines until March 1993. Even after that, though new machines have been brought into service, this practice continues PWhenever the Ilanagement sees fit to do so. When it comes to treating their own Workers, however, not even the lost tyrannical feudal chieftain can teach Nestle Lankal. Some workers have been on the payroll continuously for as long as six years on a daily paid basis, though the hiring of Casual labour for a period exceeding six months is illegal according to the nation's statutes. The bulk of Nestle Workers are "pe IIanently casual employees which frees the COIpany from providing leave and other financial benefits. In addition, the threat of immediate termination acts as a strong deterrent to legitimate union activity and to the agitation for basic rights and privileges due to Workers. Even clerical Workers are dangled for years as daily paid employees. Anyone who complains or Iocks the boat with get sacked. For instance, LL LLaLLLLL LLLLLLa LLLLLL LLTLS LL LLLLLLL LLLLLLL S which would hawe Teant that he would have had to work continuously for 16 hours -- was terminated.
The most frightening prospect for a Nestle worker is, however, his/her Ieward for long years of Service. It is reported that some of those who have completed over 5 years in the milik powder processing plant have lost the power of hearing and have gradually become blind as well. Even if such a claim inade by workers is somewhat exaggerated, it demands a scientifically thorough and inpartial inquiry by the authorities and not a callous dismissal because of Nestle's high-profile publicity campaigns.
:гроілІ —
December 1993

Page 31
or those who demand that the Country be placed on a war footing there can now be a great deal of satisfaction. The Governmentis strengthening the war on democracy on all fronts. If the firstsalvos were fired with the conniving abduction in the South, it did not take long for the battle lines to be extended to the Central hills. If Mr. Thondaman warned that the war in the North and East may spread to the hills, the Government has made Sure that the War On demoCracy Would come there from the South before that.
For a country which still unashamedly boasts of a half-century of universal franchise, the administration of Dingiri Banda Wijetunga seems to have reached the nadir in its Contempt for the choice of the people. If One believed that the appointment of UNP chief Ininisters to the South and NWP after the party's defeat at the provincial polls was Inere pique at being rejected by the people, the Subsequent Iecord shows the Government is not ready to tolerate even the mildest challenge to its writ. Although heading a party which introduced provincial councils to the Country, Mr. Wijetuna makes nosecret of the fact that he would rather not have then if they are not under the direct controland manipulation of the Central government. His thoughts on
thematterare quitesimple. Provincial
Councils, if they do exist, should live on the leash of the central government. If they do not, they should be brought under the rein of the Government by hook and by Crook.
So, the open war on provincial democracy complete with the amoury of manipulative abductions and
emergency Iegulat of war is extended Will that is the ene long before we are terIOriSminthe COU devolution, which : With the Weapons
There seems to depths the Wijetun Could reach in the its Contempt for the We saw it well in COInVersations W Udugampola, a ma police and the Cour even WOISein the C. Francisco. It would almost at the time t of the Southern Pro a COmplaint to thi IniSSing Franciscu, in pleasant conve) Wijetunga, and get back for his chical instance, the Preside to defend the law WE With a man who we justice. In the latter,
December 1993
Counter
 
 

Media Watch
ions. The theatre . It is the people's my. It will not be old there is a new Intry. The terror of should be Crushed of War and deceit.
be no limits to the ga administration demonstration of norms of decency. the presidential 'ith PremadaSa un wanted by the ts. We now see it Onversations with noW appear that he Chief Minister Jince was making e IGP about the he was engaged (Sation with Mr. ting a pat On the nery. In the first 2nt who has SWOIn as in Conversation as a fugitive from the man who has
SWOIn to uphold the Constitution, devolution and all, is in Conclave and Conversation with a willing abductee in the Crude game of toppling an elected administration.
All this apparently fits well with the chorus of voices and editorials that See the flaws in the provincial Councils and not in the central government. There is a Curious logic which seems to say that the fault for the "abduction" of Francisco or the designs of Thondaman and Dissanayakelie with the Provincial Councils themselves, and not with the Government and its determination to Suppress the democratic expression of protest through the provincial Councils.
Ridding the Country of provincial Councils or confining such an experiment i devolution to the North and/or East may fit well With the political thinking of those who
See O diversity of interest in the different regions of the country. These are people who fail to observe the Significance of a ten-year-long War, except to look at it from the point of view of the over-arching rights of the Sinhalese majority. There is little doubt that in such a majoritarian view there is no Ioom for devolution at all.
The Wijetunga led war on democracy that is now being waged is the logical follow-up to that majoritarian view. There is on the One hand the theme that the problem in the North and East is one of terrorism and nothing else, and the problems that lie elsewhere are all those of the terror of democracy and devolution. So be done with the two in One fell blow, if that be possible. Who says it is not, with an Opposition that the Country does not deserve?
point
29

Page 32
Don't ask for more is the theme of the Wijetunga Chintanaya. Not in the Courts, not from the platforms, not through the provincial COuncils, not through the Press. The President Certainly lives up to the WOIds of his first public intervention in the provincial Council elections. It is he Who has the Spoon and it is he Who knoWS how to Serve. He has a clear fixation with the image of the ladle. At the Iecent 39th annual celebrations of the UNP, with Mr. Thondaman sitting beside him, he once again served a spoonful of his thoughts. He said that to aperson who pleads for a plate of rice his government would give it, but if anyOne asks for tWO, then the answer is certainly not.
There is nothing strange in the leader of the UNPlooking at all national and regional issues from the point of view of the plate of rice. It is fully in keeping withhow the UNPersearned the jibe of being "bath-gottas". But there is a bigger danger in Mr. Wijetunga's idea of dishing Outplates of rice. It does not take into consideration how much of rice a person may need. It is not impossible to heap on to One plate the quantity held by two or to give on one plate, what is hardly sufficient to keep the pangs of hunger at bay. The problem seems to be that Mr. Wijetunga and those of his chintanaya do not Seen to believe that dishing out involves both the server and the Served, and the purpose of the ladleistoServe and not to be used on the head of those who seekmore. Obviously in this age of political correctness one has to shift the adage of the mind being as short as the handle of "handinita" to Mr. Wijetunga.
There is a sense of the farce that all this becomes while Some newspaperS are raising funds for the fallen heroes of war and the banners and White flags that went up after Pooneryn are being discoloured with the dust and grime of time. The Government which has exhorted people to Cut Short On Christmas and New Year festivities because of the War, SeenSquite happy to go on its great celebration of the destruction of democracy. It is the
idea of the ladle again. It is quit government at the people to Cut down it is matter of a mir one will ever Cry foi festival is Celebra midst of burningb( Vulgarity of flas Carousing IevelleIS
It is time indee plead fora war footi
s Some
to ask they those un soldiers uv, Poomerym they sent
to the fra Francisca uvholly viul tete uuvi President, 1 bring do lau fully administra Southern
Сои1
prosecution of the What this War is a much the emotiv banners, the Rar Heroes Funds call of the heroes of W they are fast being the dust heap of h
who have added
who have died b needs to be done why they fell and Can be prevented.
Count
30

and plate all Over e in order for a Centre to tell the onfestivity when hority feast. But no ul when a majority ted, even in the odies, full of all the hing bulbs and
On the StreetS.
2d for those who ng and the tougher
оте пееas families of
tradmed ho died at uvihether their sons omt to let и have a gartete-d- th the in a plot to Dun the elected tion of the Provincial
İncil.
war to be asked about. HOWever e slogans on the a Viru Gee and
for remembrance ar, the fact is that pushed back into
istory. Many more to the thousands
efore them. What now is to find out how such killings
2rpoint -
Why did they fight or why were they sent in to battle, while others made their fighting Speeches and wrote their martial lyrics from a safe distance? What in fact were they sent to defend? Is it the right of the central government to serve one plate of rice and nothing more? Did those who died at Pooneryn die for the SuCCeSS of political abductions? Did they die for the central government to silence the voices of protestin the South? Did they die for Mr. Wijetunga to be able to tell the plantation workers that it is thus far and no further?
Someone needs to ask the families of those untrained soldiers who died at Pooneryn whether they sent their Sons to the front to let Franciscu have a wholly vulgar tete-a-tete with the President, inaplot to bring down the lawfully elected administration of the Southern Provincial Council.
In all this there must be a happy observer. All those who see the flaws in the Provincial Councils for the horrors of government political manipulation, seem to ignore the One truth that this is more than What Velupillai Prabhakaran is asking for On his plate. There is nothing that Dingiri Banda Wijetunga could give Prabhakaranand the LTTEleadership, that is better than what he and his ministerial Cohorts are doing to democracy in the South.
One can almost imagine the Smirk on the face of Prabhakaran as he disCuSSes the Current issues in the South with his fighting cadres.
"They want us to give up arms and come for negotiation. See What they do to democracy in the South. See how they treat their opponents, among their own people, who speak their own language. Seehow their trample of the rights of the Voters over there. Do you think they will do anything better with us? Would it not always be something WOISe? See what Thondaman gets for all his Support. Just a single plate of rice. So why don't we tell them to keep the plates and the rice and hold onto our guns?"
Anybody for a plateful of the "Bath pinganchintanaya"stepforward with your plates.
December 1993

Page 33
Airlanka in a g
irlines are one way of Countries, especially Ielatively new ones, advertising their presence to the World. Among the first things a newly independent Country does, Once it has a national flag is to paint that on the side of a shiny new aircraft and start Services to its nearest neighbour and/or former Colonial Overlord. In the heady postWar years, loss-making airlines were ararity, with world capacity nowhere near full and profits were an accepted fact. Every Country Seemed to have an airline and amazingly most of them were reasonably profitable. On top of that, leaders loved the idea of flying into aforeign country under their dwin flag, Surrounded by sycophants of their own choosing and they sought comfort in the fact that their every whim would be met by a Crew over whom they held enormous power. JRJ was a classic victim of this ego trip and it is largely in his own image that Sri Lanka's national airline Airlanka was Created. The brave new World of the late Seventies has passed and we are now under the Colder, harsher light of the nineties. The time has Come, especially in the Context of the very costly recent debacles inflicted on the state by the LTTE, to debate whether Our impoverished Country can continue to afford such a drain on its resources such as the unprofitable Airlanka.
The airline industry in general has changed beyond all recognition in just the last decade. Invented by the Americans largely to bring together their vast and rich country, their modern airline, (although many ex-colonial companies who started life in the nineteen twenties will argue otherwise) came into being as a result of the huge Surplus of aircraft and trained airCrew Created by the Second World War. Due in part to the complexity of the task and its technological requirements, airlines remained immune from the changes that had effected most other businesses in the fifty years since. Until recently, airlines remained proudly under the protection of thestate, with archaic"bilateral agreements" guaranteeing their market share and airline employees among the highest paid in the land.
Counter
December 1993
 

Business
lobal context
The "Deregulation" initiative by the Carter administration of America changed all this forever. From being completely under government protection for most aspects of its business, including routes and ticket prices, the industry was suddenly allowed to compete under market forces. Though many vested interests Warned of a catastrophe, this did not happen, and in fact the Americas' airline industry is the WOrld's healthiest, withinefficient producers being driven to bankruptcy and airfares the lowest in the world. The recession of the nineties brought reality to another market, Western Europe. Home to many of the World's pioneering international airlines, Europeans paid the highest fares in the
World to Companies withstrongly unionized workforces. That looks to change very quickly, as anyone who has followed the recent fortunes of the major European carriers can vouch for. It is quite likely that, in the coming years, many countries the World over will no longer have a "national Carrier" in the true sense, but rely on a large airline conglomerate serving their transportation needs. The only expansional sectors left in the industry are in the Pacific Rimand, possibly, the Indian Subcontinent. Whether we in Sri Lanka can seize this Opportunity or if it, like most others offered to us in the recent past, will be lost still Iemains to be seen.
At the time of its inception, Airlanka came under a lot, of Criticism, as there was very real doubt if the Country needed a glamorous company of the type it obviously hoped to be. In the fifteen years since,
Joint
31

Page 34
though, themarketplace, the competition and Airlanka itself has changed beyond recognition.
Today, the flood of tourists that was to transform our economy has just recovered to 1983 levels. The airline that was supposed to bring hordes of Sun worshippers to our shores has in fact survived due to the Vast gIOwth in the expatriate labour market in the Middle East. The yields from this sector and the associated cargo market far outstrip those from the tourist trade. That the airline's standards have fallen (in respect of the Competition) has gone largely unpunished due to the uncomplaining nature of the (mainly poor) Sri Lankans who form the majority of passengers to the Gulf. But to assume that this will go on for ever is foolish thinking and inept management policy. Hungry newcomers to the market are gobbling up Airlanka's market share, whilethe airline Squabbles incessantly with itself. One of the newest to the Scene is Emirates Airlines based in-Dubai. Recognising the value of the labour market and using the yields to subsidize vacation fares to and from Europe, Emirates has managed to seize a considerable slice of a market that was once Airlanka's own. Offering astandard that is reminiscent of Airlanka's at its vanished best, and airCraft equipped in keeping with the latest standards of technology, this sort of competition is hard to beat. Gulf Air, based in Bahrain, is also busily cleaning up its act, with a new fleet on Order and more routes in the offing. In the meantime more conservative outfits such as Saudia and Kuwait Airways continue toholdsmarketshareintheir, more protected, routes. The only sector of probable growth is the Subcontinent, but given the strict protection of Indian aviation and our lack of diplomatic rapport, this is Only likely to worsen not improve. A number of private airlines are giving the government-owned (and very inefficient) Indian Airlines fierce Competition Ondomestic routes. When this spills over to international routes, as it must, Airlanka Will have a serious problem Onits hands. The time totackle the problem is now, while the Company is still profitable (albeit marginally) rather than when the situation WOISenS.
The major difference between a loss making and profitable airline is very hard to ascertain. AirCraft cost basically the same (provided the purchasing teams know what they are doing and are honest). Fuel costs
Counter

have to be bone by all competitors, so the COStofoperating and maintaining the aircraft is what is Crucial. (While older aircraft burn more fuel, at current price of oil the saving in finance costs equalizes the difference) Europe's giant airlines are Suffering from Spiralling payIolls, imposed by a heavily Jnionised Workforce. The carriers from the Gulf offset expensive, largely expatriate Crews with cheap Asian labour and almost unlimited state Coffers. Airlanka falls in between these extremes, with unskilled abour costs among the lowest in the World and a literate, skilled and trainable Workforce at hand, but has proven itself unable to compete even with these advantages.
So what should be done? Productive 2mployment is one of the key requirements of this country. Airlanka, even in its present Sorry state, provides almost 4000 direct ObS, many thousands more indirectly and pumps billions into the country. Closing down the company is a drastic step and
would result in a terrible shock to the 2COnomy, soit shouldbe Considered Onlyas a last IeSOrt. There is sufficient potential and, most importantly, enough motivated people in the Company to Still turnitaround. Doing so, however, is a long hard road and will take a few years to accomplish.
The first step is to rationalise the IOute tructure. To this day, the Gulf routes are reated as a mere stopping point on to Europe. As such, passengers bound to the Middle East are forced to show up at nearthly hours of the night at both ends. that most of these people either set off from I are travelling to destinations far outside Solombo seems to have somehow escaped he notice of the airline management. A Onvenient arrival tine in Europe translates o the wee hours of the morning in the Gulf nd tremendous inconvenience to the assengers who generate real profits for the ompany. It is high time that these two
oint
December 1993

Page 35
geographically related, but very diverse markets are separated. The European routes are SeaSOnaland capacity should bemodified to reflect this. The Middle East Ioutes are usually fullallyear Iound, with extra services Iequired during the Christmas and Lunar New Year periods which coincide with the tourist Season and lead to a shortage in Capacity. Schedules should be arranged to reflect these trends, rather than sticking to asetpatternofserviceslikeamoretraditional ti airline. le Cargo capacity should also be increased W significantly. This is one of the fastest i S growing segments of the industry and A generates huge profits. Airlanka's older a Tristarshave a relatively Small cargo capacity a C
M
and the new Airbus320's have almost none. The fleet should be added to, or existing aircraft modified, so that an increase in lic capacity is available. iest ti All this would be to no avail, if the aircraft u do not fly in time. Nicknames such as "Usually Late" have dogged the carrier since itSinception and reflect an abysmal On-tine reCOrd. While SOne of this is due to the Lockheed Tristar's maintenance needs, many other airlines operate the same aircraft to much betterstandards. There is obviously something amiss on the Engineering side and it should be addressed quickly. The next generation of aircraft are even more Complex and a "Panchikawatte" approach to the problem will not suffice.
The problem of a new fleet should be addressed more openly. The Airbus 340's which are on OIder are not the most Suitable type, as has been highlighted in this journal. The only reason to operate a four-engined aircraft is to CIOSS vast Oceanic spaces. With the Australian route off the schedule, Airlanka has no such requirement. To fly this type om a shorter distance is not profitable. In fact, two of the most efficient airlines in the world, American and Delta refuse to operate four engined types, regarding themasaliability. Aswift decision must be made to purchase appropriate aircraft before interest rates rise again to prohibitive levels. A wide-bodied two engine type should be introduced for the profitable Gulf routes assoon as possible, offering this key market a quality aircraft. The Tristars Can Continue to serve the European routes for some years, while a replacement is sought Out at leisure. All possible steps must be taken to ensure that market share to the Gulf is not frittered away. This is the
Counterp
December 1993
 

Business
ly sector that Airlanka has a competitive lvantage in, as the passengers are verwhelmingly Sri Lankan. European or ar Easten tourists can only be wooed way from their national airlines or charter perators by Suicidally low prices, which at into the botton line and Only serve to lbsidize the hotel industry. The European hd Far Eastern tourists are far more fickle, ith Colombo more often than not being a ansit point to other destinations. This ads to reduced yields, which Coupled 'ith the already low fares charged to this agment of the market, make it unprofitable. irlanka should be transformed into the line of choice to Sri Lankan, Maldivian nd South Indian destinations. To try to Ompete with the likes of Singapore, alaysian and Thai through-traffic is a sing battle. Airlanka's inability to fly on me also makes transfer passengers
nhappy.
The new Board of DirectOS seems to be
ying hard to rationalize the meSS the Ompany is in, but more needs to be done. 'osts have been steadily rising, with Salaries f outstation staff (so called "country hanagers" in particular) being astronomical, nd not tied to results. Too many expatriates represent in the technical branches, while ualified Sri Lankans work in many airlines broad. The national carrier should be made to a magnet of excellence, attracting the est from all branches of the private and ublic Sectors as a focus of international tandards and competition. Instead, it has ecome a refuge for charlatans and fools, with no "espirit de corp" at all, but amazing hefficiency in its place. Airlanka Seems to ave lost direction completely over the last ew years, with eventhestandards of service, nce the Company's pride, Suffering as a asult. If something drastic is not done Oon, it will be a case of the "Taste of 'aradise Lost".
'oint
33

Page 36
A crisis of credibil
he United National Party of J.R. Jayewardene attached a great deal of importance to stability and the need to promotestability. Javewardene and his admirers claimed that the Constitution of 1978 was designed primarily to pIOmote stability. The "stability for development" thesis was preached to Sri Lankans in the late 1970s by Lalith
VAR. Jayewardene
Athulathmudali and even Lee Kuan Yew, andat thereCentannual SeSSions of the U.N.P. by Prime Minister Wickremasinghe. We have now come to realise, however, that, to Jayewardene and his CIOnies, Stability was Synonymous with Strong government and that a different, more Sophisticated notion of Stability is what is necessary for the political and economicdev lopment of the COuntry.
One of the essential features of a stable liberal democracy is public COnfidence in important institutions. It is crucial that institutions. Such as the Parliament, the Judiciary, the Executive, Provincial Councils and the Media Command public confidence and that democratic processes, including elections, and Officers in charge Of these processes too, are not perceived as biased or politically partisan. When such confidence and respect is lost, the biggest beneficiaries are the extraparliamentary, anti-demOCratic fOrCeS.
— ROhan E
Who slourish in Si apathy and Cynicis was more difficult moral authority, t
J.V.P., after the
undemocratic Res as compared with Situation in 1971. Til had been brought never before and Parliament too undermined. The those who in the p lip-Service tO Stabil the most dangerous by Creating a Crisi liberal democratic institutions.
A Vigidant publ ensure that this ext trend begun by t Government and a Ja ya War den e a Governments doe HOWever, recent de done little to revive in basic democrati
Parlia One adverse CO Executive PreSide shift away from P fOCus Of the politiC that the Constitutio Court recognise th еXert COntIO OVе reduction of parlia Over finance follo Budget have exace However, the m Parliament had exe power has been far The role of Parliame assembly in which action and legislat to rigorous and enli has not been perfo The Opposition unCOInstitutional le the National Trans
Act to be pass
34
Counte
 

ity and confidence
driSinha
uations Of public n. For example, it to COunter, with he claims of the unCOnstitutional, Iendum of 1982, for example, the eelectOral proCeSS into disrepute as he legitimacy of WaS Seri Ou Sly efore, is Onically,
Ost-1977 era paid
ty, Contributed to form of instability, of Confidence in : processes and
ic Opinion muSt remely dangerOuS he United Front cCelerated by the nd Premadasa 'S not COntinue. evelopments have public confidence
institutions.
ment insequence Of the cy has been the arliament as the al arena. The fact and the Supreme at the party can MPS and the mentary SCIutiny wing the recent rbated this trend. anner in which cised its qualified from Satisfactory. ltasa deliberative poliCy, eXecutive On are subjected ghtened Scrutiny, "med adequately. haS allOW ed islation Such as port Commission d. The Select
point
Committees and Standing Committees of Parliament are not as effective as they should be. The Select Committee appointed to frame a political solution to the North-East crisis, despite widespread initial optimism and the tenacity of Mr. Mangala MoOnesinghe, failed to COme even near to achieving its objectives.
Manga/a/Moonesinghe
The Executive
The proliferation of Ministries Couped paradoxically with the Concentration of power in One exalted office, a public Service which is either appointed by the President or the Cabinet Of Ministers, and which holds office at their "pleasure" and, a relatively impotent and devalued Public Service Commission inspire little public confidence. Tha public bickering and division in the military high Command which has COntinued from the time of the Premadasa Administration, Presider tWijetunga's simplistic and g(OSSly insensitive pIOnOuncementS On the national Crisis, his utterances on other important public matters including devolution of power and the widespread belief that he lacks Presidential stature have increased public Cynicism and diSenchantment.
The LaW
The legal institutions recognised
December 1993

Page 37
D.B. Wijetunga
by the Constitution too have Suffered from the same malaise. Despite SOme welcome exceptions in recent times, the Supreme Court remains a Conservative institution. The bestowing by the Government of land to judicial officers for housing, and photographs in the press of judicial officers receiving keys to vehicles from Ministers at a time when several sensitive issues were before the courts, did little to enhance public confidence in the judiciary. The Attorney-General's Department whose credibility considerably during the Premadasa impeachment fiasco, received several blows in the past few months: the Udugampola affair, the controversial rape case, and the Solicitor-General's questionable involvementin Airlanka.
Suffered
P. Udugampola
John Amarafung
Provincia
The 13th An COnstitutio i ar Councils Act strengthened the devolution and C the country. It abundantly clear not devolved po have Only appear power. It is ther that there disillusionnent V Council System another unne
gOVernment, polit
and a ColoSSal W net result is th. devolution iS di aSpirationS are ni beCome more fr and ultimately t "Pol PotistS" Of þOC South are Streng
The
State Controlov eXCeSSive and W is that the Mini Tyronne Ferna Minister A.J. Ra With bizarre, irre, Crazy statement all One Of the mc liberal democrat of expression an most people hav Ranasinghe Se
Соит
December 1993
 
 
 

aW
ክá
Tyronne Fernando
Councils
hendinent to the id the Provincial Seem tO ha Ve claims of the antihauvinist fOrCes in is now becoming hat these laWShave Wer in reality, but ed to have devolved 2fore not Surprising iS Widespread NWith the PrOVinCial which is seen as cessary tier of ician and bureaucrat aste Of money. The at the COncept of Scredited, minority Dt met, their leaderS Strated and bitter, he positions Of the th the North and the hened.
Media
er tae media remains hat seems amazing Ster Of Information, do, and his State hasinglhe, get away ponsible and almost abOut What is after St Vital features of a iC SOCiety: freedom d information. While stopped taking A.J. iously, (and it is
terpoint
Opposition
shocking that the Government keeps him in his position), Mr. Fernando's recent pretentious pronouncements Suggesting thatjournalists should only be allowed to speak "the truth" and his nonchalant and unconvincing defence of the ban on the production Of news programmes and telecasting OfneWS items On SriLanka On"private" television channels, suggest that Minister Fernando is singularly unqualified to protect the citizens' rights to freedom of expression, thought and right to information. The fact that the Government-imposed restrictions have failed to provoke public Outrage and the inability of the to pulverise the Government for its clumsy and blatant. censorship of news is an indication of the political listlessness that afflicts Our Country. How dare a government or a Minister or a government official tell people what they can or cannot See On television? How dare a governmentor a Minister oranofficial permit private television channels to telecast subject to capricious conditions? Fundamental political and ethical questions are involved, but Sri Lanka's politicians, both government and Opposition, seem oblivious to them.
Policy Making The public also lacks confidence in the manner in which decisions are made on important issues.
Recent legislative initiatives to
35

Page 38
G.L. Paris
Iespond to the serious challenge posed by the HIV/AIDS epidemic illustrate the shortcomings in this area. Last year a group of academics from the Faculties of Medicine and Law of the University of Colombo who set up a Working group (of which I Was a Thember) to study issues pertaining to medical ethics heard of attempts to introduce legislation to provide for mandatory testing for HIW AIDS. Studies conducted in a number of countries hawe indicated that apart from the hIlla Il rightSimplications of such testing, it has indeed been counterproductive as it sends HIWW AIDS patients underground and inhibits then from obtaining treat III et ad other al SSistance, The most effective method of combating this dreaded disease, on the contrary, is to provide for accessible centressor Voluntary testing and safeguards for the confidentiality of those undergoing the tests.
To the amazement of the gIOup, ħOWewer, ittra Inspired that mandatory testing was to be intIOduced. Efforts to obtain clarification and further infor Ination On the Subject met with negativa responses from Officials in the Ministry of Health. Many officials avoided IIleeting With members of the group, others passed the buck to aspecial AIDS Task Force but no one claimed responsibility for the initiative. The Ilanner in which the legislation was to be introduced (by an amendinent to the Cuaran fine and
Prgy Eglfijo OfD No.3 of 1897) st Secrecy. When I an official who h; amend Ilent, he пe a copy but a in his office. It c inadequate pi protection of C would have alloy de LėIII i Illa Who. Finally, Professo Nalaka Mencis C, to which MinistI judges, doctors a invited and til presented a Critic initiative, No One The II latte Was,
The campaig IThandato II y te
r─────────────────---
The c. Credibi
сопар faced institut the cyni apath fostered Serious
Sri La politica
unfortunately did 1993, Mr.Srinath TIOWEd LWOPrivatE iIi Pālià Tg Ilti mandatory testing 1.That this Parlia that the Depa should lake Il Subject in Tigri fOrā lēdiCal Ch Whether those Suffering from Deficiency Synd Other infectious 2."That Lihli Parli
Corte
36
 

Seases Ordirlan Cé Jgested Stealth and inally tracked done da Copy of the draft Was Scared to give owed me to read it intained hopelessly Wisions for the nfidentiality, and "ed a bLIEau CEat t0
Would be tested. S. G. L. Peiris and Wened a TE:Teti Ing. officials, lawyers, 1d'ECadernics Were 2 Working group Lle Cf the proposed spoke in its favour. hereafter, dropped. In to ir1 tIQ duce tiTng, " h ) WE WEI,
risis of lity and
efter Ce by our ions and cism and y it has l, poses a threat to
nka's system.
Ot end On 9th July uTarasinghe M.P. Members' motions which advocated
ment is of Copiniol rtment of Health cessary steps to Its into the Island eck up to as Certain immigrants are Acquired III mune come (AIDS)OIany digeage." ment is of Opinion
Гроіл!
Worl7a/Wickreer177 shraghe
that every citizen of Sri Lankashould be subjected to Special Medical Investigations to ascertain whether he/she is suffering from Acquired Immune Deficiency Syndrome (AIDS) to enable the Health Authorities to take necessary steps to eradicate AIDS from the Island." The notions were seconded by the Minister of State for Muslim Religious and Cultural Affairs, MI. A.H.M. Azwe I and the Ministe II Of Environment and Parliamentary Affairs, Dr. Wimal Wickremasinghe, respectively. AIIlazingly, both поtiопs received support fтопn all sides of the House, and there was no opposition to the motions Whatsoever
The CIisis of credibility and Competence faced by Our institutions and the Cynicism and apathy it bas fostered, poses a serious threat to Sri Lanka's political system. The fact that the Competition for votes in elected legislatures in Sri Lanka today and political discourse seems to be based not on ideology, political debate or persuasion, but rather on abduction, blackmail and bribery is a sad reflection on the current state of Sri Lanka's politics and political institutions. The absence of public outrage, the conplacency and indifference of public opinion, and the lowering of public expectations of its leadership and institutions are SyImptomatic of a moIe fundamental Cancer that afflicts ou I body politic.
December 1993

Page 39
ineteеппіпеtуthгеепауwellbe ICInernbered as the year in which the peace process advanced in a Il LllbEI Of COrifictS. Il
Cambodia, Palestine, South
Africa, even Somalia and Bosnia, conflict Iesolution has been initiated, albeit, With II lixed TS Lulit S. Nevertheless, that enmity is not eter Ilal and that agreements can be Inade between govern Ilents and teIIOIistsilmutualacknowledgeIIIent of the futility of Conflict, is a corol element. Northern Ireland, the latest addition to this list is no exception. The IEWelatiQIls Of the British Gower IIIleIlt's talks about talks With the Provisional Irish Republican Army (IRA) and the Anglo-Irish Declaration of 15 December attest to this and provide additional insights into the conflict resolution
pDIOCESS.
It is now known that the British Government, despite denials by Illinisters including the Prime Minister, hawe had SeCIet contacts with the IRA since March and that these exchanges Came to within 10 Weeks of initiating official talks with Sinn Fein -- the political Wing of the IRA.
A ceasefire which Would have been unofficial or undeclared at the outset, was the basic precondition. This quid pro quo still exists, but only if the cessation of violence is permanent. What is clear is that the Government was adamanton an end to violence before the talks and that the IRA needed a corresponding action on the part of the Government to satisfy its political constituency,
The Government's version is that contacts followed the IRA message that the 'conflict is Ower" and "We wish to hawe an unannounced ceasefire in order to hold dialogue'. Accordingly, the contacts proceeded to the point when on 5 November the Government was ready to agree to 'a first meeting for exploratory dialogue' in the Week of 11-18 January, if its precondition of
Paikiasothy
BT EIli tČð WiCl2ICE:
Fortunately, alth happelgd, the pea been completely de Irish declaration el Militers Brit:
Republic OI 1. the
5Wr7r7 Fe/r7 Mapg7afar Gerry
Settle II helt, has
momentum for cons
though it has also frOIT hard-liIlles.
In the Declarat Government agree: people of the islanc by agreement Wit
- Cαι πιει
December 1993
 
 

Perspective II
జెర్క్తో
ALKUNG ABOUT
BOUT PEACE
ara Wanam uttu respectively, to exercise their right of Self-determination on the basis of COI sent, freely and concurrently given, lough this has not North and South, to bring about a Cep IOCESS hag Tot united Ireland, if that is their Wish". 3railed. The Anglo- Britain also reiterates that it will .eased by the Prine respect the democratic wish of the
Hajority in Northern Irelard.
The Taoiseach (II ish Prime Minister), expresses his hope for eventual Irish unity and COIII Titi Tent to this objective. He also pIOI mises the Unionists i.e. essentially the пajority PIOtë Starit Community irl" NortherIn II cela Ild Who Warıt the province to IIIain a part of Britain, that mutual confidence-building Ireasures would ensure that the ideal of Irish unity would Iot be pursued either by threat or COICiOI)'. He acknowledges that there åre SFC:lt iOS of the II ishill Constitution. Which are entirely una CCeptable to the lJrioThistS -- articles 2 and 3 claim Northern Ireland--and pledges that in the event of ATOWäll SettleII helt, the Irish Govern Ilent Will propose COIstitutional change which "Would fully reflect the ÐIlfl[:lplE. Df CUT186Ilt in Nothern Ireland".
,"`");
Wäs II et iIl full.
il, and the Irish principles of a
Adars, a cere of The Irish Government Will 'ersy. also foster dialogue between
democratic parties about the political future and the Taoiseach hopes that this Will include the setting up of a Forum for Peace and Reconciliation. is, the British Whilst peace Will not come to that it is for the Northern Ireland in a couple of Weeks Cr even months ånd the Christmas Ceasefire may not last into the New
SLS tail the iç:tresolutione'''CI) JIOWoked Violette -
I of Ireland alone, h the two parts
ாய் р 37

Page 40
Year, what is significantis the change of perspective that is signified by these developments -- a change of perspective at the highest levels Without which peace will have no chance.
It was not so recently that the British Government banned the Sinn Feinleader Gerry Adams from entering the country to address MPs on the Northern Ireland situation, at the invitation of maverick Labour leftwing MP Tony Benn. Mr. Benn's invitation Was greeted with outrage by all parties including his own. We know that the Government was in contact with Mr Adam's colleagues at this time. More importantly, the reaction to Mr Benn's overtures stands in sharp contrast to that which followed the revelation about the
By all accounts Sir Patrick Mayhew, the Northern Ireland Secretary, successfully defended the British Government's approach in the Commons and WOn Vital Support from Iuling ConseIVative party backbenchers for expediting Conflict resolution as well as for his denial that the COnta CtS COn Stituted
negotiations'.
Of special importance was the reaction of Opposition parties -- Labour Criticisms of Sir Patrick were marginal and the crucial Official Unionistreaction omitted accusations of bad faith Or denunciation of British Government action.
The political relevance of this should not be underestimated. Since July, the Government has been courting the nine Official Unionist votes in the Commons to offset rebellious elements Within its own ranks. Significantly, the 10 week "fast-track' timetable mooted in the contacts is a World away from the Unionist demand that Sinn Fein be isolated for up to five years.
Predictably, the Reverend Ian Paisley leader of the diehard Protestant group the Democratic Ulster Unionists, roundly condemned the talks and was suspended from the House when he refused to withdraw accusations of "lies' against Sir Patrick. Therefore,
whilst the Official represented by its Molyneaux is hea
not lead to C
underestimation oí of the Reverend P.
For the moment the Reverend's ext to his local base. H proceSS has a long devil willie in the de Will Stalk it out and even derail the Moreover, the unfortunately is the political extremism the peace proces: inspite or because actions. Gerry Adar On record saying th
Government 'duplici of the Secret COntaC to 'forgive' and reSl What all this emergence of a fresh IeCOgnizes the limit the indispensabilit legitimacy to the c process.
Where military possible and whe buttressed by eve
popular Support, a
will entail Contact
38
Counte,
 

Unionist reaction leader Sir James tening, it should mplacency or he Consequences sley's wrath. , Would seem that 2mism is confined wever, the peace way to go. The tail. The Reverend in doing so could
whole process. .
RA, and this unholy alliance of in the context of Could Opt Out of the Reverend's h's nevertheless is at despite British
y'over disclosure S, he is prepared me talking.
uggests is the paradigm which of violence and of democratic onflict resolution
Victory is not e extremism iS
a modicum of end to Violence Iith the hitherto
Joint
unconscionable in the interest of peace. As reflected in the section of the Anglo-Irish Declaration regarding
the British Government's attitude
towards Irish unity, Iecognition of and a response to the Sources of political violence within the Confines of democratic nons and procedures, is crucially necessary. Furthermore, partisan political advantage has to be shelved, Constructive Criticism made and vital Support given.
The catalyst for all this, if the British version is accurate, was the IRA message that the 'conflict was over'. The reasonable interpretation of this must surely be that violent conflict can no longer serve political objectives. This is an estimation that can be made by both sides and communicated if there is a strong expectation of discretion and most important, receptivity. When difficulties arise to prevent protagonists from directly communicating this calculation to each other, the role of intermediaries is highlighted.
In the event that there isn't a Coincidence in this strategic calculus, the requirement is that political advantage be pushed through the peace process rather than through the resumption of violence. The challenge is to initiate this process and institutionalise it. The Situation thereby Created will be one in which attempts to abandon the peace process will risk the erosion of political capital. It is after all of the utmost importance in Conflict resolution to recognize the protagonistsaspolitical actors, even though the tactics and instruments they employ are terrifying and terrible.
What has been advanced in Northern Ireland and what needs advancing in other protracted and futile conflict situations including our own, is the re-humanising of the
conflict and the legitimation of the
peace process. Only then will the possibilities of politics be fully and productively explored.
In the ultimate analysis is not talking about talking preferable to fighting about fighting?
December 1993

Page 41
THE NEW! JOKE
With AJR sidelined the Oxford Cricketer (his claim) Seeins keen to
リ。
jump into AJR's shoes (OI is it slippers?) as the joker in the pack. To IIlake Tatters After the Moratuwa fiasco the days when the test President of the CB should hawe was unfit for play all done a "Cecil" and offered his in the city had full ( resignation instead of which he School and club Cric tried to justify his decision to play Ol:0W SE the only test against the West Ieplying to the lette
Il dies at the - paddy field named after him.
Long before the E West Indies tOLlir | WhEil =| aIIangements Wee being diaWThis up to host the inaugural test against the West Indies and Sri LäIkas 50th - the President had a been adamant that the match be played at MOTEtLIWE.
"We will play at Moratuwa -- t"- there's no debate about it." Was his Mrsiar arrorrarior7 IBIlaIk tO BOBId and Broadcast gy Officials who its 75rone Ferra tried to suggest SI Joaviousyhas Via ova
ஆந்த கசரத சேதசங்கிச
valid Cricketing Pygaring fils offier hat reasons Why Elsas President of the MOIatll Wa Was * LFWakef AGFarra7', /G/S Ilot a suitable gbaforo replojo f/76?r??A?/?yo W. | professeveed What should agafastia.oractee have bem a Il is has of helped EP, absorbing clash evered as a 777 between the ALIGE ØYAPWsFressed/7 SF57IS Davids and Jemala con weg. Goliaths of Cricket
WËS tLIIE it:0 autter fäTCe by this OutragEOS of almost all the II choice of Wenue. Choice Of Worlle al The Imatch didget into the IecoId a full time OCCupa books though as the Only test there have been I
IIlatch which could not be played foll Clicket follow despite blazing sunshine because LOuntry.
the previous day's Iain had Ilot Whät kind of a I drained a Way. who talks of lucki
Conte
1993
 
 
 
 
 
 
 
 
 

UN U
worse, On thë IIätch WBILB 1 other gIOLIIS lays' play for
ket IlätChES, Ilds his tille IS to the editos
Sропs
E PLACK
as key IBaSOIS for Selecting an important test venue?
Don't basic facilities like prope drainage systems in the Outfield, facilities for spectators and players ald II edia perSOIII el Tatte?
Moratuwa should be struck off the list of test Wenues until it can fullfill these basic IEKĻI i III hetS,
although this should happen
- automatically if
Richi FG/FG/FG/757f757/E, A767 Richardson's
Wesif AW7d/Wes" s Alfa27A2W, COIm Ilments each i ரசrதிரிசோ ரிசர்ச் tle ICC. wowceay falsallised/easure TE West
FC 7e PCC-Weert 577 ALAGSGEFAASTA PYfePSf Lege, e.gy of
Indies captain Was bittely
rTercassagri w wwa CagW disappointed that Lirik. they could not
do the IImain
hing that the W ------ had come to Sii Lanka for and 5 ¬¬ ܡ¬¬s¬ ܥ¬.
that WảS t0 pola W Cricket. Having
seen the playing facilities at the Other Wellies in the city he was furious that Moratu Wahad been selected as the Welug for a test Thatch.
Ah, blit then Richardson didn't know that this was ou I lucky ground where in 1979. We beat the West Indies if a One-day game (which incidentally Was
a hollow Win ܕܒܫܒܫ ܠܒܢ̈ܝܐ .
ewspapers on his li this Sould be Lice-CaLSe early 50 letters EIS around the
Tham is this IBally
Id CIOWd COItol
irpoint
EECalSg Our target was reduced due to RAIN).
1994 is Election year for the Cricket Board as Well and We hope that the Minister of Sport Will ensure that the new President is SOIIleone Who is close to Cricket than politiltisl
39

Page 42
IS THATELUSIVE OVERSEAS
SriLankagota lucky break when it receivedan invitation from India to fill in the breach created by Pakistan's cancellation of their tour to India. .
Sri Lanka will now play three tests and three one-day games on a six-week tour which begins on January 10th. A new sense of purpose seems to have been injected into the team with the advent of new Cricket Manager Bandula Wannapura.
This is a welcome move and one that we advocated some time ago. What now needs to be done is that Warnapura must be offered a long-term contract.
The team members who were all used to ten minute team meetings on the Sharjahand Indian tours were jolted by Wannapura who literally read the riotact to the players. Team meetings are far more lengthy and productive and morale is on the up again. It is now up to the selectors to give Wannapura alfighting handi ఖః There is a general feeling that we do not have enough back-upplayerstoreplaceanyinjured 'stars" but thisisnot quite the case. We don't have a whole host of top quality players but the cupboard is by no means bare. 接接
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40
 
 

TEST WIN CLOSE AT HAND 2
Duleep Samaraweera and Nisal Fernando could be groomed tostandinfor Roshan Mahanama and Chandika Hathurusinghe. Fennando's added wicketkeeping ability would be a bonus.
Marvan Atapattu will be an adequate replacement at number three if Asanka Gurusinha is not fully fit.
A team composed on the following lines could be the one to carry our future hopes and bring us that overseas test win which we cave for:
Roshan Mahanana, Nisal Fernando, Marvan Atapatu, AravindadeSilva Arjuna Ranatunga, Hashan Tillekeratne, Sanath Jayasuniya, Ruwan Kalpage, Dulip Liyanage, Pramodaya Wickremasinghe and Mutiah Muralidharan. Fernando'sinclusionallows ustoplayan extrabatsman. Alternatively Chandika Hathurusinghe and Pubudu Dassanayake play as opener and wicketkeeper which means that Atapattu, Jayasuriya and Tillekeratne willhave to contest for two placesintheside. The firststephowever should be the inclusion of Cricket Manager Warnapura in theSelection Committee. I
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December 1993

Page 43
NTHERENAISSAN
in the Renaissance of my life black-and-white films made in the Concentration
CampS
were shown, Dachau, Buchenwald, images and books fell like lead.
in the Renaissance of my life the Cubans had fought their revolution; the poor studied and With doctors and administrators Worked the plantations.
In the Renaissance of my life - Fanon had Worked to death, Lumumba killed, then heroiC Che Crucified
On metal, his dead faCe soaked in the brine of that photograph.
in the Renaissance of my life Lyndon Johnson and the Pope lived Well and poke each other in the ribs
and blessed the World, Mao blessed Nixon blessed the presidency blesse Brezhnev,
all blood-Smeared.
In the Renaissance of my life millions starved, millions exterminated, black millions, browns, yellows, millions Who WOuld have died anyway, their bodies sprawled across the T.V. sets.
Co

ཀ༽
J
IN THE RENASSANCE OF MY LIFE ENTERED THE LAND OF THE PIG.
In the Renaissance of my life that most beautiful name, Bangladesh, Was Cried Out by beggars for alms. Biafra, Bangladesh -- Heyond these What poetries?
Peasants were slaughtered, refugees ran in the Renaissance of my life.
ran from Blake to Marx to Buddha to the Renaissance of my life.
the blackSpenned, starved, tortured under
apartheid,
in the Renaissance of my life,
the Moratoriums clamped down between police d lines and horses;
the tanks rammed back a people along the streets.
In the Renaissance of my life the Cries of the damned CrOW(ded my ears, the Curses of the damned poisoned my mouth, the arms of the damned demolished my verse, the guilt of tWO generations hit like the plague and boarded up the own in the Renaissance of my life.
Peter Scharen
Interpoint

Page 44
IF YOUR NEW ROVER DC WE’LL GIVE YOU
We recognise that when you choose a ne car, you're making a real commitment.
Which is why, when you buy a new Rover, you' find we're making a real commitment ourselves.
If you're not completely satisfied with your ca within thirty days or a thousand miles, whicheve
occurs first, simply return it to your dealer.
There you'll be offered a replacement or you
 

ESN’T FIT INTO YOUR LIFE, YOUR MONEY BACK.
money back, without so much as a murmur,
For full details call o8oo o3O303. We're very happy to make this commitment
because we're sure that you and your new Rover
will, in fact, live happily ever after.
THE ROVER COMMIT MENT