The Island News

Lead Story
PC polls to be called off?

By Franklin. R. Satyapalan
There were strong indications that the provincial council elections will be called off under an islandwide Emergency when nominations closed for the North Central Provincial Council closed at noon yesterday.

Social Services Minister Berty Premalal Dissanayake was widely tipped to lead the PA list in a bid to win the chief ministry of the province. His candidature had in fact been announced. But when nominations closed yesterday, Mrs. Dissanayake led the PA list.

Many observers regarded this as a clue that the PC elections will not be held for the time being. They point out that there are no election posters (except for a few by the JVP agitating against a possible postponement) or election feeling in the air.

When nominations closed, nine recognised political parties and one independent group remained in the fray. A total of 248 candidates are vying for 33 seats including two bonus seats.

The parties running are the UNP, JVP, New Left Front, PA, MEP, Muslim United Liberation Front, Sri Lanka Progressive Front, the Liberal Party, Sinhala Maha Sammatha Bhumiputra Pakshaya and one independent group. The papers of another such group were rejected.

The former chief minister, Mr. Jayasena Dissanayake, is leading the UNP list. A former MP, Mr. Themiya Hurulle was earlier mentioned as a possible candidate.

Nominations for the Western and Sabaragamuwa PCs which opened on July 8 will close next Wednesday (July 15) when the elections commissioner will announce the polling day.

"That will, of course, depend on whether or not the government decides to go ahead with the elections,'' a political analyst said. "If the decision is not to go ahead, an islandwide Emergency must be proclaimed.''

The UNP, MEP, JVP and the New Left Front comprising the Nava Sama Samajists and some other minor parties are firm in their demand that the election goes on. UNP General Secretary Gamini Atukorale said yesterday that their working committee is due to meet on Tuesday.

"Any moves to postpone the elections and our response will be discussed there,'' he said. He said that s the government ``is trying a fast one,'' they have not named any chief ministerial candidates.

The JVP too will be holding a Colombo rally on Tuesday to agitate for the PC elections.

Sri Lanka’s economic progress: model or fairy tale

Sri Lanka’s economic progress is either a model for most in Asia or a fancy fairy tale depending on whom you talk to, but if the stock market is any indication, not many are buying the story.

Central Bank of Sri Lanka data showed a robust 5.8 percent growth in gross domestic product (GDP) in the three months to March compared with the corresponding period last year.

Central Bank’s research director R. A. Jayatissa said trends so far suggest the country will achieve an overall GDP growth of 5.5-to-6.0 percent this year compared with 6.4 percent in 1997 and 3.8 percent in 1996.

However, inflation was creeping up, with the cost of living index rising 14.1 percent in June compared with 3.9 percent last year.

Sri Lanka has managed to so far weather the East Asian currency crisis, accelerating the depreciation of the local currency against the dollar by about six percent in the first six months of the year.

The rupee fell by 7.1 percent against the dollar in calendar 1997, though economists say the local currency is 23-to-24 percent overvalued.

Tight control over monetary policy helped insulate the country from any speculative attacks against its currency, Jayatissa said.

Judging by official statements, Sri Lanka appears to be the only country unfazed by the East Asian crisis, with growth rates steadily rising, unemployment falling and per capita incomes up.

Deputy Finance Minister G. L. Peiris recently said Sri Lanka’s 18.3 million population "ate more, dressed better and had more money in their hands" than it did four years ago.

Former finance minister Ronnie de Mel disagrees.

He said the economic data was "massaged" by the Central Bank to suit the government in power. The opposition maintains the economy is in dire straits, a charge denied by the government.

One Central Bank economist told reporters recently that they were not responsible for economic growth but merely interpreted the numbers given to them.

The robust economic performance has been possible despite the government spending a hefty 5.1 percent of GDP to finance a dragging war against Tamil Tiger rebels in the northeast of the island.

Despite the government reporting impressive growth in agriculture, manufacturing, construction and the services sector in the first quarter of the year, the Colombo Stock Exchange is a different story.

The government was claiming that a 12 percent growth in share prices at the Colombo bourse in the first four months of the year was a vote of investor confidence in their prudent fiscal management policies.

Jayatissa said the country’s budget deficit was down to 7.9 percent of GDP in 1997 compared with 9.4 percent in 1996 and inflation slowed to 9.6 percent in 1997 compared with a cost of living increase of 15.9 percent in 1996. In 1998, the inflation rate is estimated at about seven percent.

Interest rates were falling and many had expected deposits with commercial banks to be diverted to the stock exchange. However, that was not to be.

Instead prices started falling sharply at the Colombo Bourse and ruling party politicians and central bankers started pointing fingers at regional instability caused by Indian nuclear tests.

But the fall in the Colombo market began a week before India carried out its first round of nuclear explosions.

The tit-for-tat tests carried out by Pakistan subsequently may have triggered a flight of foreign capital from regional markets that affected Sri Lanka too.

The director general of the Colombo Stock Exchange, Hiran Mendis, said foreign investors appeared to be getting out of Colombo, driving prices down. The All Share Price index shed 25 percent between May and June.

The blue chips sought after by foreign buyers took a heavier beating, with some losing 50 percent of their value in a couple of weeks.

The trend, brokers said, appeared to be bearish with investors unimpressed with otherwise impressive economic numbers.

Amnesty for hoarders of undeclared money

By Walter Nanayakkara
An amnesty is in the offing for those who are hoarding undeclared moneys within or outside the country.

Authoritative sources have estimated the value of undeclared moneys at around Rs. 5 billion.

During the Budget speech in November last year Minister of Justice, Constitutional Affairs, Ethnic Affairs and National Integration and Deputy Minister of Finance Prof. G. L. Peiris announced government’s decision to grant an amnesty to those hoarding undeclared moneys in local or foreign currencies, to encourage them to invest them locally or to deposit them in a bank.

The legislation is now before Parliament and is scheduled to be approved during the last session of the House in July.

The amnesty applies to three classes of persons, namely persons who are liable for income tax for any year ending on or before March 31, 1996 in respect profits or incomes accrued before that date, but failed to furnish a return of income for any such year of assessment, those who have not disclosed any such profits or income in any return and those who hold any relevant foreign currency outside Sri Lanka.

To be entitled to the Amnesty any person holding undeclared moneys as stated above should either invest the moneys in the purchase of shares of an undertaking specified by legislation or should deposit such moneys in a bank.

In the case of investments in shares of specified undertakings, investments should be made between November 5, 1997 and June 30, 1999.

Deposits in a bank however have to be done between November 5, 1997 and December 31, 1998.

Those wishing to deposit their undeclared moneys in a bank should pay an Amnesty Tax which is 15 percent of the moneys so deposited.

The Bill does not speak about any Amnesty Tax in the case of investments in shares of specified undertakings.

The Bill before the Parliament, titled "Tax and Foreign Exchange Bill" also requires that when foreign currencies are either invested in shares or deposited in a bank they should first be converted to local rupees.

For the purpose of investment in shares the specified undertakings are (1) Manufacture or assembly of electronic products or components for such products, (2) Manufacture of rubber products using local rubber, (3) Manufacture of ceramic products or glassware, (4) Manufacture of jewellery, (5) Cutting and polishing of gems and diamonds, (6) Light or heavy engineering, (7) construction and sale of houses, (8) Manufacture of any articles or goods or provision of a service designated by the Board of Investment (BOI) as being of a pioneering nature.

The companies which carry on such business should be companies which have entered into agreements with the BOI.

The Amnesty entitled to those investing their undeclared moneys in specified shares or deposits in banks, is an indemnification against liability to pay income tax, Wealth Tax and Business Turnover Tax against such investments or deposits and indemnification against prosecution under Income Tax Laws, the Finance Act or the Exchange Control Act.

The legislation will not apply to cases in respect which investigations are in progress.

Both the investors in specified shares and depositors in Banks should make a declaration to the Commissioner General of Inland Revenue.

International Alert causes uproar among Sri Lankans in Norway

From Sisira Wijesinghe in Oslo
The dismissal of Ms. Frederica Jansz from her correspondent post in the British charity, International Alert (IA) after her interview with the Colombo-based Norwegian ambassador has evoked an uproar among a section of Sri Lankans based in Scandinavia and those using the Internet's Sri Lanka Web news section.

The IA has been in the limelight during past few months following its controversial roles in Sierre Leone and Sri Lanka. The Norwegian Christian Michelsen Institute in an evaluation of the IA criticised it recently for its role in Sri Lanka and Sierre Leone.

Mr. Kapila Fer-nando, president Sri Lanka-Sweden Friendship Association said that his association would be sending a strong-worded letter to relevant IA donors, including Norway, Denmark, Sweden, the Netherlands, and a couple of other international NGOs requesting them to seek clarifications from IA regarding this dismissal.

"The IA appears to be concerned only what the Tigers want, not the majority of Tamil people or the Sinhalese in the country. This organisation has been accused and suspected of assisting the rebels in Sierre Leone and elsewhere, and it is rather mysterious to learn that IA has now turned out to be a cat's paw of the world's deadliest terrorist group," he said.

"Many international organisations, some of which are funded by the church or by Scan-dinavian governments are behind the unfortunate situation in Sri Lanka. Norway has been sympathetic to Tamil terrorists ever since this conflict commenced in Sri Lanka, and our organisation has been made to understand that the terrorist who blew up the Air Lanka aircraft in Colombo is now a citizen in Norway. My question is simple; "Does Norway allow a Norwegian terrorist to live freely in Sri Lanka, if he/she had migrated, having committed a crime of that magnitude," he questioned.

Mr. Anura Devage, a spokesman for the Sinhalese Association in Denmark, expressing his outrage, told this correspondent that IA's sacking of this journalist justifies the potential suspicion many in Sri Lanka were harbouring regarding the role of IA in Sri Lankan context.

"All Sri Lankans and the members of the government must very carefully respond to the good Samaritans in the west. Why is this organisation so bothered about Sri Lanka and who are they, after all, to dictate terms to a sovereign state " he asked. "Our organisation will keep Danish authorities informed about these atrocious gestures," he added.

Meanwhile, the Internet's Sri Lanka Web News has reproduced a conversation Ms. Frederica Jansz has had with Mr. Tris, South Asia Program manager for International Alert on the eve of her departure from IA. This was published by a Sunday paper in Sri Lanka.

Island Capers
Facts and figures

The SLBC which usually accepts government handouts at face value and dutifully records His Master's Voice worked a little bit on a story filed out of Colombo by the French news agency, Agence France Presse (AFP) (see story on this page).

Using an AFP story on a Central Bank press conference as its base, it asked a few questions from knowledgeable people and produced its own story that seems to have raised some hackles at the Central Bank. A statement on the subject was the result.

Nobody will quarrel with the assertion that the bank now provides much more timely economic data than it used to not so long ago and its efforts at publicising national economic data on a quarterly basis deserves the highest commendation. But it sometimes does get its facts wrong.

The latest statement talks of the 237 companies currently listed on the Colombo Stock Exchange. The number, as of last week was 243 and 239 as at December 31, 1997 covered by the latest CSE annual report.

It also claims that the AFP reporter had not noticed that the Colombo stock market had picked up during the first quarter of the year when the GDP too picked up. Wrong again. The AFP report has a clear reference to the 12% growth in share prices in the first four months of this year. What happened later is another story.

Tamil questions: Do it the proper way challenges Kumar

Tamil Congress leader Kumar Ponnambalam has challenged President Chandrika Kumaratunga to meet a Tamil "adversary who does not dance to her tune or cannot be bought over'' on national television and debate the present status of the Tamil problem.

Ponnambalam issued this challenge in response to the announcement that the president will answer questions from Tamil speaking people "live'' on radio and television at 8.45 p.m. on July 25.

The state media has reported that questions are being received "in plenty'' by post and fax.

Ponnambalam said in a statement that the Tamil problem is by far the most important issue facing the country. Since August 1994 todate, the president had not been interviewed nor has she granted an interview to a local Tamil print or electronic media person on the Tamil problem.

"This is a most telling indictment on the president. Of course, early in her regime she was interviewed by Mr. V. Vasantha Rajah who was then her best friend. But that was in Sinhala and was not on the Tamil problem. It could be said that she was interviewed then by a 'friendly hand','' Ponnambalam said.

Asking whether the planned programme is going to be of any use, he wanted to know how 'live' a programme can be if questions are sent days ahead. "Such an insistence completely takes away from the credibility of the whole exercise and makes it counter-productive and a farce and a fix,'' he said.

He said that the programme he suggests could be done in English in the first instance ``for the benefit of the international community, since it means so much to the present Sinhala government.'' Thereafter, it can be translated into Sinhala and Tamil on subsequent dates. Doing so will not make it lose its impact.

"If the president is not prepared to face her adversaries in an unprepared, unrehearsed, spontaneous and live programme, where questions are not given in advance so they would be picked and chosen and prepared with many heads putting their one-cent bits, then what is the use of such a person as the president of any country?'', he asked.

Ponnambalam concluded: "Do it the proper way which is the only honest way or do not do it at all because you are not fooling anybody, much less the Tamils.''

Mass grave allegations to be followed up

The military yesterday reacted to allegations that that 400 to 500 people are buried in a mass grave at Chemmani in the Jaffna peninsula. These allegations were made by a non commissioned officer sentenced to death in the Krishanthi Kumaraswamy rape and murder case.

Northern Military Commander, Major General Lionel Balagalle, said yesterday that he had taken note of these allegations and would refer them to the appropriate authorities.

"This is a matter for the judiciary and the National Human Rights Commission. Since the allegations have been leveled against the military, it is not appropriate to investigate it ourselves,'' he said.

The major general confirmed that the EPDP's Jaffna district organiser, K. Jegan, had taken this matter up with him on the telephone. (FRS)

Representation on Rent Act called

Public representations on proposals to amend the Rent Act are now being received by the committee appointed by the Minister of Housing and Urban Development to go into this matter.

A member of the public who had communicated with the authorities in this regard had received a letter from the Commissioner of National Housing to this effect.

The Commissioner, Mrs. C.A. Weerawardene, who is secretary to the committee, has said in her letter that such representations must be in on or before July 30. Communications may be addressed to the Commissioner of National Housing and Secretary to the Committee, Ministry of Housing and Urban Development, Sethsiripaya, Battaramulla.

Both tenants and landlords have long had problems with the Rent Act and amendments are considered long overdue.

Defamation suit against Jeyaraj Fernandopulle
Time given till August 1 to file answer

by V. Varathasuntharam
Plan Implementation and Parliamentary Affairs Minister Jeyaraj Fernandopulle was granted time till August 25 to file answer in the 500 million-rupee defamation suit instituted against him by Parliamentarian Ravi Karunanayake when the matter came up before Additional District Judge Colombo Sunil Rajapakse on Friday.

Plaintiff Karuna-nayake UNLF MP, in his plaint alleges Minister Fernandopulle made statements defamatory of him in an interview telecast over Rupavahini on May 20, this year.

The statements made by the Minister conveyed the impression that he (the MP) had vested interest in opposing the sale of shares and the handing over of the Management of Air Lanka.

Consequent to those defamatory statements (the plaintiff) suffered grave injury and loss to his good name, reputation, character and credit as a person, professional a politician and as a Member of Parliament.

Attorney at Law G. G. Arulpragasam appeared for the plaintiff. Mrs. Chathuraratne instructed by Wijesinghe Associates for the defendant.

Parliamentary Children’s Rights Lobby intends to set a new political culture

By Indika Wickramaratne
The Parliamentary Lobby for Children’s Rights is a pioneering effort in establishing a new political culture, one where the people of Sri Lanka can see that members of the different political parties can work together for a national cause, said
Dr. Jayalath Jaya-wardane, MP.

In an interview with ‘The Island’, Dr. Jayawardane, Chairman of the Parliamentary Lobby for Children’s Rights, formed officially on June 12, 1998, stressed its importance in a country such as Sri Lanka, where reports of abuse of children was growing in number daily.

According to the Convention on the Rights of the Child (CRC) adopted by the General Assembly of the United Nations in 1989, a child is recognised as " a person under 18, unless national laws recognise the age of majority earlier."

In Sri Lanka, said Dr. Jayawardane, a person under 18, a child, is not an eligible voter and therefore the politicians do not address their problems. He added that although the Constitution of Sri Lanka states that the physical, mental, moral, social and religious development of a child must be ensured and that a child should be protected from exploitation and discrimination, the guarantee is limited to the written form.

Citing an example, Dr. Jayawardane said of the total 4.2 million school going children in Sri Lanka, almost 60 per cent are suffering from malnutrition. " If this rate of malnutrition continues, Sri Lanka in the 21st Century will consist of mentally and physically retarded adults." Constructive action is needed immediately to rectify this pathetic situation, he said. "We must not limit ourselves to the written word."

The CRC, the only human rights document to be ratified by more than 190 countries has taken a step further in Sri Lanka, said Dr. Jayawardane. In addition to being one of the first countries to ratify the convention, Sri Lanka adopted the Children’s Charter in 1992 and a National Monitoring Committee was also established to monitor the realisation process. Although several steps have been taken to make to realise the principles of the CRC, the political will to realise these rights for children is insufficient, said Dr. Jayawardane.

" This is the main reason that we as people’s representatives of this country have come together to motivate and give momentum to this political will. Our main objective is to shoulder the responsibility. In a country like ours where political issues take precedence, this important national issue of Children’s Rights must be addressed immediately."

According to Dr. Jayawardane, the main aims of the Lobby are to create an awareness between the parliamentarians and other provincial and local level politicians on the CRC, to be alert on the legislative enactments which could have an impact on children’s lives and find out whether they comply with the CRC. If they do not comply, lobby for changes, advise the government to apply the principles of CRC when making policy decisions that have an impact on children’s lives. They must also raise questions in Parliament regarding CRC implementation, monitoring and reporting, making the government more active in the CRC realisation and reporting process, creating links with provincial and local level politicians to have regular feedback on the situation of children in their respective areas and to inform relevant authorities on those situations and influence them to take prompt action and finally to create links with Parliamentary Lobbies in other countries and share experiences with them.

As immediate action, the members of the Lobby will visit and investigate the situation of children in both cleared and uncleared areas, refugee camps, tourist areas, remote and vulnerable villages, said Dr. Jayawardane. "We are one country and we must not forget the children in the remote areas, some who have no facilities at all." Members will meet and discuss with Minister at all levels, religious leaders, Heads of NGOs, both local and foreign and also the Attorney General’s Department to obtain feedback. Dr. Jayawardane added that support of all political leaders are required in order to successfully implement the CRC principles and protect the children of Sri Lanka."

With regard to long term remedial action, Dr. Jayawardane added that the Lobby will be canvassing to establish a Select Committee for the Rights of Children, to help formulate new laws and legislation. " The existing legislation formulated in 1800s are not appropriate for the present time and situations." In addition the Lobby will campaign for the establishment of a separate Ministry, a separate Ombudsman and for the establishment of a complaint system for juvenile justice.

Wins SAARC Youth Award

Dr. Najmul Hasnain Shah of Pakistan has won the SAARC Youth Award - 1998 under the theme, "New Inventions and Discoveries". The Award carries a Gold Medal, cash prize of US $ 500,00, and a citation in English. Dr. Shah has been awarded the honour for his discovery regarding the virulence of Haemorrhagic Septicaemia (HS) causing bacteria of cattle and buffalo. This discovery describes the production of vacuolating cyrotoxic activity by Pasteurella multocida serotype B and E, affecting macrophages. It explains why these bacteria are not removed from the blood and tissues of animals suffering from haemorrhagic septicaemia.

The 30-year-old Dr. Shah is a Veterinary Doctor currently serving the Centre of Animal Biotechnology Veterinary Research Institute, Peshawar (Pakistan). Dr. Shah's study on the Haemorrhagic Septicemia virulence me-chanisms and vaccine development was carried out during a twelve-month-period in 1995/96 as part of his PhD study at the Free University Amsterdam, the Netherlands.

The SAARC Youth Awards Scheme was initiated last year aimed at encouraging the young talent in the Member States to excel in different fields. The first Award presented in 1997 was on the theme of "Outstanding Service in Community Welfare." A Selection Committee composed of personalities from three Member States with the SAARC Secretary-General acting as facilitator meets annually to decide on the recipient for the Award from amongst applications received from SAARC countries. The Selection Committee recently met at the SAARC Secretariat in Kathmandu for SAARC Youth Award 1998.

The Award will be presented to the winner at the forthcoming Session of the SAARC Council of Ministers in Colombo on July 27 and 28.

Rosie, goodwill ambassador for UNFPA

by Namini Wijedasa
Former Mrs. World, Rosie Sena-nayake, has been appointed goodwill ambassador for the United National Population Fund (UNFPA) with a mandate to support and propagate reproductive health.

Mrs. Senanayake, who said she felt "very honoured and proud" about the honorary post, received the letter of appointment on June 26. She accepted it on July 1. She is to travel to New Delhi on July 20 for her first task as goodwill ambassador when she will participate in the South Asian Conference on Ado-lescence. The conference will take place from July 21 to 23. Upon her return, Mrs. Senana-yake is to visit the Free Trade Zones in Sri Lanka to address men and women on reproductive health. "There is a large need for education in this area," she commented.

Among the duties Mrs. Senanayake will be entrusted with is the spreading of awareness about reproductive health among the local population, particularly in the interiors of the country. ‘Reproductive health’, according to a UNFPA spokesperson, embraces the total reproductive cycle of women but also includes gender equality, men’s participation in reproductive health, breast and cervical cancer in elderly women, etc.

"She will deal mainly with work relating to the improvement of the status of women," the spokesperson explained, "She is expected to be a symbol and conduct a face-to-face campaign with the public". As such, Mrs. Senanayake will participate in a variety of national and international events relating to women’s rights, reproductive health of adolescents, general reproductive health and the male role. The target groups would be the most vulnerable groups such as the Free Trade Zone workers, those in war-affected areas, and those in underprivileged segments of the society.

Mrs. Senanayake told ‘The Island’ she will reflect the views of all parties, including parliamentarians, on these issues when she represents the country abroad in her capacity as UNFPA goodwill ambassador. She expressed satisfaction and confidence that she would be able to reach people at all levels with her message on reproductive health. "I feel honoured to have this opportunity to go down to the interiors and spread knowledge," she said.

A UNFPA spokesperson told ‘The Island’ Mrs. Senana-yake had been singled out for the post due to her activities in fund-raising. She noted that Mrs. Senanayake has organised and participated in social work with particular reference to women and children. There is no particular time limit on the length of her service, which is voluntary. The spokesperson also hinted that the UNFPA will appoint a male goodwill ambassador in the near future.

Disappearances Commission
Call for extension of mandate

By Franklin. R. Satyapalan
Three Tamil political parties are now pressuring the government to extend the mandate of the disappearances commission to investigate incidents that have occurred since the election of the present administration.

The three parties are the TULF, PLOT and EPDP all of whom support the government in parliament. The TULF, however, does not vote with the government on the monthly extension of the Emergency.

Mr. Joseph Pararajasingham, the TULF parliamentary group leader wrote to President Chandrika Kumaratunga last week pointing out that three commissions have been appointed to probe the involuntary removal or disappearance of persons. The warrant mandates such inquiries to cover the period Jan. 1, 1988 to Dec. 31, 1994.

The president has now appointed a commission headed by Mrs. Manouri Muttetuwegama to probe the removal or disappearance of over 11,000 cases not covered by the previous inquiries.

"It is regrettable that none of these three commissions, including the present presidential commission of inquiry, is mandated to inquire into the removal or disappearances of persons after Jan. 1, 1995.'' (The present government was elected in Aug. 1994 and the president in October of the same year)

He alleged that there have been a large number of disappearances in the northern and eastern provinces since Jan. 1995. "It is on record that there were over 600 removals or disappearances of Tamil youth in the Jaffna peninsula from July to December 1995 including over 100 cases in the eastern province from May 1995,'' he said.

Pararajasingham also drew attention to the statement made by the one accused in the Krishanthi Kumaraswamy rape and murder case following his conviction. This lance corporal claimed that he could point out over 400 graves of Tamil youth who had disappeared in Jaffna.

The MP has asked the president to enlarge the terms of reference of the present commission headed by Mrs. Manouri Muttetuwegama to cover the subsequent period. "Otherwise the political history of the country will record that President Kumaratunga has conveniently covered up the involuntary removal or disappearance of Tamils that occurred during the period of your government,'' he said. "The Tamil community will neither forgive nor forget (such an omission).''

PLOTE's vice-president and commander of the military wing, N. Manikkadasan, has also appealed to the president on the same subject.

Meanwhile S. Selvaraj representing an organisation looking after the interests of disappeared persons in the north has handed a petition to the Jaffna co-ordinator of the National Human Rights Commission chaired by retired Justice O.S.M. Seneviratne.

Between 10 -15 disappearance complaints are being received daily by the Jaffna office of the National Human Rights Commission. Most of these are from people who have returned from the Vanni.