Sri Lanka Brief (7/16)

Internal Developments:

1. Port City Project to re-commence:

Work on the Colombo Port City Project will begin in May this year. State Minister of National Policies and Economic Affairs said that the earlier arrangement to give a portion of reclaimed land from the sea was being changed. According to the new agreement, land would now be given on a 99-year lease. He also said that foreign investors from countries other than China will also be invited to invest in the project.

2. Construction of 65,000 houses to commence soon:

The construction of 65,000 houses for conflict affected families in the North-East will begin in the next two months. Selection of beneficiaries was currently being carried out by District and Divisional Secretaries of the two provinces. Also, there would be no calling of new tenders or revisiting of tender offered to Arcelor Mittal Construction in France as requested by the Joint Opposition.

3. Total Ministers up to 92:

The government formally informed the Parliament on April 8 that there were as many as 92 Ministers, deputy ministers and state ministers, and doors were open to accommodate more members if necessary.

4. Basil Rajapaksa summoned at PRECIFAC:

Former Economic Development Minister Basil Rajapaksa was summoned by the Presidential Commission of Inquiry to investigate and inquire into Serious Acts of Fraud, Corruption and Abuse of Power, State Resources and Privileges (PRECIFAC). He was summoned to the commission to record a statement over an allegation of misusing flights carried out by the Air Force. His wife Pushpa Rajapaksa had also been asked to report to the commission over the same matter on April 07 but she did not make it as she was out of the country.

5. Joint Oppossition gets COPE, PAC slots:

The Joint Opposition secured two slots in the Committee on Public Enterprises (COPE) and Public Accounts Committee (PAC) of Parliament. Accordingly, its MPs Prasanna Ranatunga has been nominated to COPE and Mahindananda Aluthgamage to the PAC.

6. Military Security of MR and Gotabhaya to be replaced:

Defence Secretary has revealed on April 07 that military personnel deployed to provide security to former President Mahinda Rajapaksa and former Defence Secretary Gotabaya Rajapaksa would be removed and replaced gradually, as deploying military personnel for VIP security is illegal. Police and Special Task Force personnel, who are responsible for the security of VIPs would be deployed for the security of the former President and former Defence Secretary in a phased manner.

7. Chinese, local workers clash:

A clash between the Chinese and local workers at a Mirijjavila five star hotel project in Ambalanthota, had erupted on April 04 following an argument between the two groups. At least four Chinese workers were hospitalised following the clash.

8. No-Confidence motion against Champika:

A no-confidence motion with signatures of 42 Joint Opposition MPs against Minister Champika Ranawaka were handed over to Speaker Karu Jayasuriya. The motion seeks Parliament to declare that the Minister was not fit to hold that office because of his alleged involvement in the hit and run accident in Rajagiriya.

External Developments:

9. Third party cannot harm China-Lanka friendship- Xi Jinping:

While claiming that the Chinese government only considers Sri Lankan people and its policies and not personalities and political parties when assisting Sri Lanka, China’s President Xi Jinping said that no third party can harm the friendship between Sri Lanka and China. Appreciating the foreign policy of President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe, President Jinping expressed happiness over re-commencement of the Colombo Port City Project. He appreciated the Sri Lankan government’s decision to make it a special economic and financial zone.

10. PM Ranil seeks equity swap for China debt:

Prime Minister Ranil Wickremesinghe, during his China visit from April 07 to 09, 2016, asked China to swap some of the $8 billion it owes China for equity in infrastructure projects. He offered to sell stakes in Sri Lankan companies to Chinese interests since Sri Lanka was suffering because of global economic uncertainty. International Trade Minister Malik Samarawickrama added that Sri Lanka would also like additional funds from China, though no amount was specified.

11. MR Commends PM’s China visit:

Addressing a gathering at Angunukolapelassa, former president and MP Mahinda Rajapaksa commended the official visit of Prime Minister Ranil Wickremesinghe to China. MR stressed the need to maintain good relationships with neighboring countries. He said the government members continued to blame the previous government for its development projects started with Chinese funds, but today it had turned towards China. He added that it was not advisable to halt the development projects because it would devalue the project.

12. Three Indian Naval ships in Colombo

The Indian Navy’s ‘First Training Squadron’ comprising Indian Naval Ship INS Tir, INS Sujatha and Coast Guard Ship Varuna, arrived at the Port of Colombo on April 15 on a training visit. Apart from imparting sea training to Indian naval and coast guard trainee officers, they have also been providing training to personnel of friendly foreign navies for over four decades up to now. The three Indian ships are scheduled to depart Sri Lanka on 19th April 2016 having conducted a joint-naval exercise (PASSEX) with the Sri Lanka Navy.

13. Sri Lanka interested in Sea Bridge:

Sri Lanka has expressed interest in a project to build a bridge connecting the two countries. This was stated by Indian Road Transport, Highways and Shipping Minister Nitin Gadkari on April 11. Gadkari said that the discussions have been held on the issue with Sri Lankan President Maithripala Sirisena and Prime Minister Ranil Wickremasinghe. Even the Asian Development Bank has made a recommendation regarding the project. However, earlier on March 23, PM Wickremasinghe had said that no formal talks between India and Sri Lanka had started on the project. The issue had figured in the Sri Lankan parliament as well.

14. US vows continual support to SL:

U.S. Ambassador Atul Keshap on April 06 said in a statement that the United States extends support the Sri Lankan people at this critical juncture as they pursue constitutional reforms and a peaceful, prosperous, and reconciled future. The statement issued at the conclusion of the visit of Special Coordinator for the U.S. Department of State Office of Global Criminal Justice Todd Buchwald and Deputy Assistant Secretary of State for South and Central Asian Affairs, Manpreet Anand (DAS) for Sri Lanka. .