Implications of the cultural crisis of Sri Lanka

(July 30, 2009 - Lanka Polity) Sri Lanka's rulers are entangled in a knot of cultural issues in a multiplity of sectors and taking various measures according to their whims and fancies creating a vicious circle.

In one scenario, the government has decided to ban the 'adults only' movies even for the adults of Sri Lanka. Before that, the government also initiated legal action against 12 websites the CID had identified containing 'obscene' material. It was not clear why these sites were handpicked among the hundreds of the thousands of websites of that genre. Some critics said that they were the mostly visited sites by the CID officials.

Meanwhile, the state-sponsored commodity worship that is highly exhibited via the ways the mobile phones are used in Sri Lanka took the life of a grade 9 student of Museus Girls' College, a leading private school in Colombo city. The girl was caught by school prefects with a mobile phone in her possession and the sources say that it contained some 'obscene' images. The embarrassed girl hanged herself in a school toilet and was admitted to hospital to succumb a day after.

The Ministry of Education issued a circular banning mobile phones in schools by students.

Meanwhile, the education sector came under severe criticism with the great number of errors in the mid-year test papers provided by the Education Departments of the Provincial Councils. The test papers were full of errors and the testing process also had many faults. Media and the critics pointed the fingers to the highly politicized bureaucracy in the education sector. The government is completely failing to uphold the standards of the education sector since most of the administrators and the senior educators are counter-productive political henchmen.

The government's 'pious' policy is questioned also in its war against the underworld goons sparing one section that is known run by a notorious Minister close to the highest echelon of the rule. Many criminals including the underworld goons are being killed by police and the 'unknown groups' while the people have resorted to street justice against certain offenders.

Meanwhile, the Minister of Justice is polishing the old dialogue on the need of the implementation of the death penalty. Sinhala Buddhist religious leaders are also backing this policy that is condemned by the civilized world. They are ignoring the non-violent principles of the Lord Buddha as they did in many other cases also.

In this context, no wonder they are cruel to elephants as media reported two elephant cubs that were forcibly separated from their mothers living in Pinnawala elephant orphanage had been chained in a garage in Temple of Tooth in Kandy. The reports angered the chief prelates of the Buddhist Malwaththa and Siyam chapters and they accused the environmentalists that raise voice against cruelty against animals are the elements against the Buddhist cultural practices like holding parades for which the elephants are needed. Sri Lanka has only 120 tamed elephants while 90 of them are aged and the cabinet had approved offering the two elephant cubs, the chief prelates said in a statement.

What is the reason behind the clash between two Muslim sects in Beruwala, Sri Lanka?

(July 26, 2009 -Lanka Polity) Two people were killed and around 40 were injured in a clash between two groups of Muslim sects in Beruwala. The clash was between the laymen of the ancient Buhari mosque (Jamaeth of Buhary Thaikiya) and the new Rahuman mosque (Sunnath Ansaary Jamaeth).

"Buhari mosque had its 135th annual Kandoory on last Wednesday and the Rahuman mosque apart from criticising the Kandoory had also conducted the Friday Jummah prayer (Sermon) on this issue angering the Buhary Thikiya Jamaeth party.The party of Jamaeth of Buhary Thaikiya went to the Masjidul Rahmaniya mosque of Sunnath Ansaary Jamaeth at the Mahagoda road in Beruwala and attacked the mowlavi who conducted the Friday Jummah prayer and others who were with him. Later they set fire to the mosque," reported Lanka Muslim Guardian website.

Weekend English newspapers reported the incident highlighting various causes that are contradictory to each other. 

The story of the Sunday Times was different from the Muslim Guardian. "clashes erupted over critical remarks made by an Imam (a cleric) who was leading Friday's Jumma prayers at the Buhari mosque against a Muslim group who style themselves as Thawheed. The group's members are strongly opposed to Muslim shrines and the conduct of feasts in mosques and are calling upon traditional followers of Islam to shed those habits," it said.

The Nation newspaper said, "Muslims who were attending Buhari Mosque had been holding a pooja for three days with the participation of a mass of devotees from 18 areas. Apparently, Muslims from Rahuman Mosque had questioned why Buhari Mosque was not allowing Muslim women to participate in the pooja that was being held there. And both partied had argued over the matter, which ultimately culminated in a clash that left two people dead and eight others injured."

According to Lakbima News, "The clash is the latest showdown in a long standing rivalry between the two Islamic sects, identified as Ahal Sunnat Jamaat and Thauhid. The latter strictly adheres to Islamic fundamental principles and regularly complained against the Ahal Sunnat Jamaat, which practices a ritual related to alms-giving involving meat, at a Mosque situated near the seaside."

Police imposed curfew to control the situation. Meanwhile, some people blame police for its inaction to control the situation.

Greed of Standard Chartered Bank officials and the folly of Sri Lanka state officials lead to fuel hedging

(July 26, 2009 - Lanka Polity) Today's Sunday Leader reproduced a document that explained some vital facts related to oil hedging deal between the Ceylon Petroleum Corporation (CPC) and the Standard Chartered Bank (SCB). The affidavit filed on July 24 by Kimarli Fernando, formerly of Standard Chartered Bank, in the Supreme Court last week was published by Sunday Leader with the permission of Ms. Fernando.

In the affidavit, Ms. Fernando cites that the SCB local office projected a commission of approximately one billion rupees in Sri Lanka, and looked at commissions to be booked at one billion rupees overseas.

Recalling her discussions with Mr. Asantha De Mel, the former Chairman of CPC at his office on the 24th of October 2007, Ms. Fernando says that he informed her that he had no appetite to lose money and he had no interest on one year structures and looked for short tenors. He also had said that he expected the banks to guide him daily to ensure that the transaction had value and profits.

However, she cites, "I noticed that the CEO Mr. Clive Haswell was very adamant that the oil hedging deals were concluded as soon as possible given the commissions for the bank. This was mainly because the bank’s earnings are directly linked to the CEO and the other top management’s bonus. I was aware that the CEO Mr. Clive Haswell did not have prior experience of working in risk management, corporate or as a CEO and explained to him at least the following as I recall.

"The oil hedging transaction can expose CPC to unbearable losses if the oil prices decline because there was no down side protection for CPC. I explained that CPC did not have the understanding and expertise to consider the risks involved.

"I highlighted that CPC and Sri Lanka can be exposed to severe foreign exchange exposure and repayment will need capital outflow from the country, which requires the approvals of the Central Bank of Sri Lanka as per exchange control guidelines.

"I explained that no sensible private sector company will enter into such risky oil hedging instrument which appeared to me one sided and that to me the transactions appeared extremely speculative.

The affidavit is filed as directed by the Suprem Court in relation to Case No. 404/2009 filed on May 25th 2009, by public interest activist Nihal Sri Amarasekara. The petition states regardless of specific directions given in or about December 2008 by the CB’s Monetary Board, Standard Chartered Bank has remitted in valuable foreign exchange a sum exceeding US$100 million between December 2008 and April 2009, and was endeavouring to remit a further sum exceeding US$20 million on ‘Back to Back Agreements’ entered into with one or more foreign parties.

In another petition filed in June 2009, Nihal Sri Amarasekara seeks an interim order from the Supreme Court to restrain the Ceylon Petroleum Corporation (CPC) and the Treasury Secretary from participating in any arbitration proceedings or litigation with any of the banks involved in the hedging contracts until a final determination is made on the application. He is also asking that the interim order be converted into a permanent order upon the final determination of the application.

Mr. Ameresekere cited that he understood Standard Chartered Bank had instituted legal action in the UK High Court, making a claim against CPC, while Deutsche Bank has filed for arbitration in the International Center for Settlement of Investment Disputes (ICSID) in the US, and Citibank has instituted arbitration proceedings in the U.K, in the London Court of International Arbitration. He said that to date, he understood the arbitration (defence) alone had amounted to around Rs.25 million which is public money.

Sweden to close down embassy in Sri Lanka

(July 25, 2009 - Lanka Polity) Sweden, one of the main development partners for Sri Lanka in the 1980s has decided to to close down its embassy in Colombo. 

The Swedish Embassy in Colombo is scheduled to be closed by March 31, 2010, said Xinhua news agency quoting diplomatic officials.

Sri Lanka and Sweden were embroiled in a diplomatic row in April this year when Sri Lanka denied visa for its Foreign Minister Carl Bildt who was intending to join British Foreign Secretary David Miliband and French Foreign Minister Bernard Kouchner in a visit to Colombo during the last stages of the government's military campaign against Tamil Tiger rebels. 

The Sri Lankan government claimed Bildt was welcome to make a separate visit.

Indian film maker Ram Gopal Varma lies about his new film

(July 25, 2009 - Lanka Polity) Indian filmmaker Ram Gopal Varma boasted that he shot his upcoming film "Agyaat" in Sri Lankan forests at a time when the war against the Liberation Tigers of Tamil Ealam (LTTE) was on.

"We shot when the war against LTTE was on in Northern part of the country. My unit was naturally scared. Btut, I told them that if we had to die, it can happen while we are dining at the Taj hotel in Mumbai as well," the filmmaker told PTI.

However, the film was shot in Sigria jungles of central Sri Lanka, hundreds of miles far away from the real battle field.

The film, which revolves around a group of people stuck in a jungle while they struggle to survive an unknown entity, is slated to release on August 7, reported PTI.

Electricity to Northern Province of Sri Lanka

(July 24, 2009) M.M.C. Ferdinandos, the Secretary of the Ministry of Power and Energy says that the high tension power lines of Northern Province that were demolished during the period of conflict will be renovated with the assistance of the Japan (JAICA) and the Asian Development Bank (ADB).

Tenders are to be called before September, he says.

US official visits Sri Lanka as IMF loan is released

(July 24, 2009 - Lanka Polity) Immediately after the IMF emergency loan was approved for Sri Lanka, the newly appointed United States Assistant Secretary of State for Population, Refugees and Migration, Eric P. Schwartz is to arrive arrive in Sri Lanka tomorrow (25), US Embassy in Colombo announced. US was earlier accused of delaying the loan for Sri Lanka.


Schwartz has worked with Sri Lanka earlier as UN Deputy Special Envoy for Tsunami Recovery from 2005 to 2007. 

He is scheduled to visit the IDP camps in the North and will meet with senior government officials and civil society representatives.

This tour is significant as Sri Lanka looks improving its diplomatic ties with US and the West that are worried about the developing close ties of the island nation with China.