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Fared ‘reasonably well’ despite daunting challenges
Worst economic crisis in 60 years — CB

by Amal Jayasinghe
COLOMBO, May 1 - Sri Lanka’s economy was facing the worst crisis since the 1930s but yet fared "reasonably well" to record a sharply lower growth rate of 4.7 percent last year, the Central Bank said on Saturday.

In the just released review of the economy for calendar 1998, the Central Bank said exports barely grew while the budget deficit ballooned beyond forecasts due to increased security-related expenditure.

The provisional growth rate of 4.7 percent for 1998 compared with an economic expansion of 6.3 percent in 1997 but the bank said the moderate growth was commendable because many other countries recorded slow or negative growth.

"Survival in a sea of turbulence became an achievement and the Sri Lankan economy could be deemed to have fared reasonably well during the biggest crisis it faced since the 1930s, the bank said in a 30-page report.

The country’s import bill fell because of lower international prices for oil and wheat, the bank said, but exports grew only by 0.1 percent.

"Prospects for 1999 are not very encouraging," the bank said, adding that although world trade was expected to improve, a complete recovery was unlikely within the next two years.

The country’s fiscal sector suffered a setback, with the budget deficit widening to 9.2 percent of gross domestic product, compared with 7.9 percent of GDP in 1997, the bank said.

This was due mainly to higher defence related expenditure to battle a Tamil separatist war in the north and the east of the country and lower tax revenues.

The new goods and services tax, introduced in April last year, had been set below the "optimal rate". The bank was also critical of generous tax exemptions, which eroded revenue collection.

The widening deficit put pressure on interest rates.

"Sri Lanka is already a high inflation country," the bank said. "A high budget deficit, high inflation and high interest rates discourage private investment and slow down economic expansion".

"There is an urgent need to bring down fiscal deficit reduction program back on track".

However, the bank said that inflationary pressures caused by the budget deficit was not clearly felt because of sharp reductions in import prices for oil, wheat, fertiliser and sugar.

The annual average inflation had declined to 10.2 percent during the past five years compared with 13.5 percent between 1989 and 1993, inflation should be brought down to below five percent, the bank said.

It said Sri Lanka’s rate of increase in prices was higher than that of its trading partners.

There was a slight increase in private investment, but the on-going Tamil separatist war coupled with high lending rates of more than 20 percent discouraged many investors, the bank said.

It said rigid labour laws were also inhibiting investments.

However, the bank said foreign direct investment inflows increased to 150 million dollars last year. However, public investment by the government had declined from 13 percent of GDP in 1985 to five percent of GDP by 1997, the bank said. (AFP)

As the country enters the new millennium
Govt’s priority to end war — President

By Sumadhu Weerawarne
President Chandrika Kumaratunga addressing the PA’s May day rally said that ending the war as being the priority as the country enters the new millennium.

The President dealt with the question of the implementation of the government’s political package which was called for by the General Secretary of the Federation of the State Sector Workers Unions allied to the Communist Party. She called on the workers to work together with the government to bring an end to what she described as the curse that faces the country - the war, as the country enters the 21st century.

"We must bring an end to the war that destroys lives and bring untold hardship to the people. This must be our priority. Once peace is established, resources spent on the war could be channelled to develop the country," she said. She added that a new constitution assuring the rights of people of all ethnic and religious groups to live with dignity would also be introduced once the war ends. She noted that it was the working sector that was least communal-minded.

The President however failed to address three specific issues raised by virtually all the trade union leaders at the PA’s May day rally at the Town Hall grounds - the fate of the workers’ charter, compensation due to the July strikers and the GST adding to the rising cost of living.

The trade union workers who spoke highlighted the problem but said that they would still stand by the PA which was the only party that offers hope to the working classes. "We will not cut off the nose to spite the face," one trade union leaders said.

The President while failing to specifically address these issues said that the country would enter the new millennium with a strengthened commitment to the protection of human rights and an economy stronger than the one inherited from the UNP four and a half years ago.

The President speaking at 7:30 pm one and a half hours after her arrival assured that the government would not do anything that would be to the detriment of the workers in any way. Economic policies she said were for the benefit of the workers and the development of the country. "There is no need to work to destroy the system." She added that the government had offered many concessions to attract foreign investors to set up factories. "Lots of factories are being opened under schemes launched both by the Board of Investment and the Ministry of Industries. A number of projects are also scheduled to commence at the end of this year and the beginning of the next," she said.

She explained that of the 800,000 persons without employment, 75 per cent had been found jobs, in small, medium and large scale industries that were being set up. On the question of those politically victimised during the UNP regime, an issue raised by virtually all trade union leaders who spoke, the President said that almost 95 per cent of them had been granted relief.

The rising cost of living — another issue raised by trade union leaders was attributed to the war situation in the country. "In other countries when there is an ongoing war the prices go up ten times, but we have been able to ensure that the rise is not so steep and have been able to arrest inflation, ensuring a certain ecomomic stability. Our economy was able to weather the storm during the East Asian crisis," she said.

She maintained that it was a weak economy that the PA had inherited from the UNP, along with a weak human rights situation. "We inherited complex problems some of which are in the process of being solved and others already solved. As a temporary measure we have given every concession we can to the masses - Samurdhi assistance, loan schemes for the self employed, almost a 100 per cent fertiliser subsidy, agricultural insurance and absolution from all loans owed by farmers." She added that by way of development the government would build three expressways and that a scheme had been launched to provide housing to those in the urban sector living in slums.

She added that when it came into power, the government had to contend with a corrupt and ineffective state service which had now been envigorated to a great degree.

On the question of recent strikes by bank employees the President said that the two state banks were virtually bankrupt when reins of power were taken over by the PA. She added that the bank employees who were receiving salaries that are far higher than those of even cabinet ministers were resorting to strike action.

Several Ministers and a number of trade union leaders also addressed the rally.

Carefully crafted plot to imprison Benazir – Anura

Mr. Anura Bandaranaike, MP, has issued a statement condemning the "disgraceful conduct’’ of the Nawaz Sharif regime in Pakistan for what he calls a "carefully crafted plot" to imprison Benazir Bhutto on trumped up charges and prevent her from holding office for seven years.

Bandaranaike said in his statement that it was ironic that it was the son of the judge who sentenced Prime Minister Zulfikar Ali Bhutto to death twenty years ago who had sentenced Benazir to 7 years imprisonment.

Following is the text of Bandara-naike’s statement:

"The first ever elected lady Prime Minister of an Islamic state, Madam Benazir Bhutto, who had held that office with great distinction has been the victim of a horrendous and carefully crafted plot to imprison her and prevent her from holding office for several years, on trumped up charges.

"This disgraceful conduct of the Nawaz Sharif regime, re-minds one of the conduct of his mentor and guide, General Zia Ul Haq, who conducted the most shameful trial in human history by hanging Benazir’s distinguished father, Prime Minister Zul-fikar Ali Bhutto twenty years ago. It is, indeed, ironical that the son of the judge who sentenced Bhutto to death, passed judgement on his daughter and sentenced her to 7 years of imprisonment.

"The manner in which the trial was conducted is a travesty of every norm of decency and justice.

"My own mother’s civic rights were unfairly removed 20 years ago at an unprecedented trial, hitherto unknown in any democracy, so that she may not pose a challenge to those in power. Those who inflicted that humiliation on her are dead and gone. Yet, she is still the Prime Minister of Sri Lanka, for the third time!

"Similarly, Benazir will prevail and without a shadow of a doubt will again rule the destinies of the people of Pakistan as she had done twice before.

"I have had the privilege of being personally acquainted with the Bhutto’s for three decades. Benazir is my friend and I value her friendship greatly.

"This is a family of great talent, dedication and total commitment. Despite the machinations of the Sharif regime, Benazir’s destiny will take her once again to the pinnacle of power.

"I wish her every success in her valiant and relentless battle for democracy against an inept and corrupt government."

Govt. bid to involve Mrs. Wijeweera in PC polls fails

By Shamindra Ferdinando
Slain JVP leader Rohana Wijeweera’s wife Chitrangani is not expected to get involved in the campaign for the Southern Provincial Council poll in support of the government, an infor-med official told The Sunday Island yesterday. "Chitrangani does not want to back PA’s campaign in the south," he said adding that she has no interest in ruling party or JVP politics.

Mrs. Wijeweera and her six children were in Colombo recently. During her brief stay here, she requested the government to provide better educational facilities for her children. The Wijeweera family returned to Trinco-malee Navy Base last Saturday where they have lived under naval protection for the past ten years.

Mrs. Wijeweera, had said that she would like to leave the Base and live in Colombo after her eldest daughter sits for the Advance Level examination next August. The government is expected to make arrangements for the family to move to Welisara navy camp this year.

The government, the sources said will seek to involve her in future campaigns even though it failed to persuade her to enter the Southern PC campaign.

The sources said that the government will continue to provide all necessary protection and facilities to the family particularly the school going children.

Except for her elder daughter other children study at Tissa Maha Vidyalaya situated within the Base. Children of armed forces personnel study there. The elder daughter attend Sinhala Maha Vidyalaya outside the base.

Mrs. Wijeweera wants to remain in Trincomalee until the southern elections are over, the official said. "She’s too wise to get involved in politics now," he said claiming as far as he was aware Mrs Wijeweera will continue to resist attempts to bring her into politics.

Earlier, a section of the government wanted to explore the possibility of involving Mrs Wijeweera in the campaign as part of efforts to counter the threat posed by the JVP to PA’s vote base in the south. "She could have helped the campaign in a big way," political sources said.

PA officials admit that the JVP which did not contest the May 1994 elections to the SPC will pose a significant threat to the PA this time. Mrs. Wijeweera, the sources explained could have attacked the UNP for killing her husband and thousands of youth while being critical of JVP’s current policies.

Western P.C."robot in our hands’’ says JVP

By Franklin. R. Satyapalan
Western Provincial Councillor of the JVP yesterday told the party’s May Day rally that those in power in the provincial councils have ``become mere robots in our hands’’ especially in the Western Provincial Council due to the support the people had given them.

``We can halt the working of the council by remote control and we have the power to prevent the passage of any proposal detrimental to the masses, the working class and the oppressed people of this country,’’ he said. ``Very soon this will be the case in the south also.’’

In the course of his half hour speech, he said that they were willing to welcome Rohana Wijeweera’s wife into their midst at any time. She was not a political activist in his lifetime. Why is the government so interested in trying to drag her into politics?

Weerawansa, who is the JVP’s propaganda secretary, told the well attended rally at the BRC grounds in Colombo it would not be a lie for anybody to say that the PA had given the people nothing but hunger, malnutrition and death. The ethnic problem has assumed serious proportions and the oppressed Sinhalese, Tamils and Muslims are fighting each other.

Representatives of several European Communist Parties attended the rally and addressed the gathering.

Pre-May Day incidents between CWC and anti-Tiger activists

Police yesterday denied that armed persons travelling in vehicles without number plates in Nuwara Eliya had obstructed the National Movement Against Terrorism (NMAT) from advertising their April 30 meeting to launch the publication of their `Action Plan’ to eradicate terrorism.

NMAT however insisted that there was ``organised and persistent resistance’’ from supporters of Mr. S. Thondaman to their campaign. ``Unknown persons either pulled down or defaced the posters no sooner they were put up. Banners were pulled down and destroyed. We kept on pasting posters and putting up the banners no sooner they were taken off,’’ an NMAT spokesman said.

Police admitted there was tension in Nuwara Eliya between CWC activists preparing for May Day and and those of NMAT with their own campaign. But they said that there was no use of unmarked vehicles or the carrying of arms.

``We caught one motorcycle and handed the rider over to police. They are taking their orders from Mr. Thondaman and othing came of it,’’ one NMAT spokesman claimed.

SSP Pujitha Jayasundera said that there had later been a meeting between the two parties. Security had been tightened.

Several Sinhalese-owned business premises were closed yesterday in protest at the previous day’s incidents and the public transport system heavily restricted. NMAT denied that they were responsible for the attack of some vehicles carrying CWC supporters at Bambarakelle. ``That was all internecine tension between Thondaman’s and Chandrasekaran’s supporters,’’ an NMAT spokesman said.

NMAT said that their banner displayed opposite the main post office bore the slogan ``Koti thrasthavadaya paradavana maga’’ (How to defeat Tiger terrorism). Mr. Thondaman’s supporters wanted the words ``Tiger terrorism’’ removed. NMAT informed police ``but they seemed impotent to act against the armed motorbike gangs,’’ the spokesman said.

Following yhe intervention of SSP Jayasundera, NMAT agreed to bring down their banner which came down about 4 p.m. on Friday. ``It was replaced by one with a picture of Mr.Thondaman, ‘’ (a May Day banner) NMAT claimed.

To curb use of domestic cylinders on automobiles
Shell Gas calls for legislation

By Suresh Perera
Shell Gas Lanka Limited has urged the government to introduce legislation to tackle the growing threat of the use of domestic Liquid Petroleum Gas (LPG) cylinders for automotive purposes.

‘We support the call by the Auto Gas Association to bring in laws to enforce safety standards as the hazardous conversions are continuing unabated’, says Soshana Wijeratne, Mana-ger, External Affairs and Brand Communications, Shell Gas.

‘It’s dangerous to use LPG cylinders which have been designed and tested only for domestic use as a ‘fuel tank’ in automobiles’, she warned.

‘We are lobbying for legislation to have internationally recognised safety standards in place to stem the precarious practice of misusing domestic LPG cylinders in this manner’, she said.

Wijeratne explained that domestic cylinders are equipped with a valve to discharge LPG if the gas pressure within the cylinder rises above the maximum designed level. This feature is part of the safety mechanism of all LPG cylinders and storage tanks.

Domestic cylinders are designed to be used in the upright position as when cooking and the valve, along with other safety mechanisms, are designed to function in the upright position, she said.

‘At the end of the day, we have sold our products. But, that’s not what matters. We want safety standards

legalised to ensure proper and legitimate use, Wijeratne said.

The central filling plant of Shell Gas at Mabima has a production capacity of 28,000 domestic, 1800 industrial and 1000 stand-by cylinders per day.

‘From the point of unloading, the entire process associated with re-filling is completed within 45 minutes’, manager of the facility, Cedric Fernando said.

He said that after the LTTE-enginereed bomb explosion at the plant in 1986, all empty cylinders are scanned prior to being placed on the production line.

Shell Gas is now carrying out an upgrading process in fuel station to meet the auto gas demand. This is being done according to Australian safety standards. Australia is one of the world’s leading markets for autogas.

British-Dutch Shell Gas which operates in more than 100 countries, has invested billions of rupees in Sri Lanka since its re-emergence under a privatisation agreement in December, 1995.

Currently, there are over 3000 users of autogas which is a safe, environmentally friendly and an efficient fuel. There are special tanks designed and tested for the safe use of LPG in automobiles, Wijeratne said.

Asked how these conversions were being done by a section of the trade at cut rates, she said lower prices are a compromise on safety. Sometimes, second-hand tanks are used.

With the completion of the 2000 MT Kerawalapitiya import and storage facility this year, the dearth of new domestic LPG cylinders will end, Wijeratne assured.

American surgeons here to help landmine victims

by Harini Dias Bandaranayake
A team of American medical specialists including surgeons are currently in Sri Lanka to perform operations especially on landmine victims of the on-going North-East conflict, Health Ministry sources said.

The five-member medical team of the US Navy and Air Force arrived in Colombo on April 19 to perform over 100 surgeries, a ministry official told the ‘Sunday Island’.

The visiting doctors who are a part of the Extended Relations Programme (ERP) between the US and Sri Lanka had by last week completed more than 50 of the planned operations, he said.

The team comprise of Captain Eric L. Thomas and Major John Andreshake, two Orthopaedic Surgeons and an Anaesthetist, Major John Reynolds of the US Air Force and Commander James Schneider, a Surgeon, and Lieutenant Thomas Easton, a Physiotherapist of the US Navy, the official said.

All operation theatre facilities and assistance of all four of the Orthopaedic Surgeons in service at the Colombo National Hospital will be granted to the visiting medical team, Dr. Hector Weerasinghe, Director of the hospital said.

The Ministry official said the visiting US team, the second to visit Sri Lanka under this programme, will also concentrate on bomb blast victims from different parts of the country. Dr. Weerasinghe said that although the surgeons would initially deal with civilian landmine victims as well as soldiers who may be in need of surgery, they would also engage in other operations if possible.

A third five-member team of medical specialists from the US military, are expected in Sri Lanka soon after the departure of the present team, Dr. Weerasinghe said.

Minister of Health and Indigenous Medicine Nimal Siripala de Silva during a meeting with the doctors now in the country said that the exchange of health services between the two countries provided an opportunity to exchange medical knowledge. It also consolidated the mutual relationship between the two countries.

The team will operate on landmine victims at the National Hospital in Colombo till May 11.

Senaka confident

From Sujeeva Nivunhella in London
Prof. Senaka Bandaranayake, Sri Lanka’s ambassador to France and UNESCO who is running for election to succeed Spain’s Frederico Mayor as UNESCO’s Director-General at an election in September hopes to build bridges of friendship between East and West.

He said in an interview here that he was confident of his ability to mount a credible campaign and that he would not have consented to run if he was a non-starter.

The accomplished Lankan archaeologist and academic with a string of qualifications that include a Ph.D. from Oxford has long experience working with UNESCO in his capacity as head of the Cultural Triangle and the Central Cultural Fund.

He said he had been working with UNESCO for the past 20 years and had pioneered work on ancient Buddhist monastery archeology in Sri Lanka. He is fluent in French, a factor considered important in the context of UNESCO’s location in Paris.

Asked about his campaign, he said that Colombo was pushing hard for his election but he did not wish to discuss strategy.

UNP was in a hurry to force me out – Wijayapala Mendis

By Shamindra Ferdinando
Veteran politician and former Chief Opposition Whip Wijayapala Mendis said that the party leader Ranil Wickremesinghe and the decision making Working Committee should have waited until the Supreme Court ruled on his petition challenging the verdict of the Special Presidential Commission [SPC] which found him guilty of misuse of power before they acted against him.

"They were in a hurry to force me out of the party," the 71 - year old Gampaha district MP told The Sunday Island, a day after the Supreme Court quashed the findings and recommendations made by the SPC.

Last Tuesday’s SC decision, he said, was a victory for him, his family, supporters and colleagues who stayed with him despite efforts made by a section of the party to ruin him.

Involved in UNP politics since the 50’s, Mendis held cabinet office from 1977 until the party lost the August 16, 1994 parliamentary poll. However, the present leadership, Mendis believes, wanted to force him out of the party using the findings and recommendations of the SPC.

The party, he said, wanted to reject findings and recommendations of the SPCs only when it suit the leaders. "In my case, they wanted me out."

When the party sought to take disciplinary action against him, he clashed with the leadership. He said, the trouble started well before the SPC revealed its controversial findings and recommendations early last year. The leadership wanted to get rid of him for some time. "They were waiting for a chance," he insisted adding that moves were made against him soon after the SPC made a series of allegations against him.

Acting under instructions, the General Secretary Gamini Atukorale wrote to Mendis in May 1997, requesting him to show cause why disciplinary action should not be taken against him as a result of SPC findings and recommendations. A deadline was set for him to answer Atukorale’s letter.

Angered by this, Mendis a former leader of the UNP’s Gampaha District Organisation, wrote to Atukorale pointing out that the three member committee headed by him [Atukorale] appointed by the leader to probe his conduct has no right to do so. He declined to accept the legality of the committee comprising of Working Committee members Henry Jayamaha and the late Uva Chief Minister Percy Samaraweera. In a 12-page letter, Mendis vigorously defended himself while explaining his work for the party.

"Fifty years of my life was spent on UNP politics," Mendis said reminding that his only Davinda Seth Wijaya died for the party.

Despite strong objections, Atukorale’s committee went ahead with the probe. But agreed not to discuss the report until the SC hears Mendis’ challenge.

However, the party wanted swift action against Mendis. His membership was suspended. He lost his seat in the Working Committee while the Chief Opposition Whip’s post went to W. J. M. Lokubandara.

"Now I have been cleared by the SC," Mendis said adding that he has no interest in posts. But the party must restore his honour. "What they did to me was wrong," he said.

In May 1997 Mendis launched an expensive advertising campaign to clear his name. "The party abandoned me and I had no alternative but to keep the people informed," he said.

The campaign was mounted against the SPC of Inquiry Act. Mendis said that on a recommendation of a similar commission, Mrs. Sirimavo Bandaranaike’s civic rights were abolished and the present parliament voided that order on April 8 last year. "Wouldn’t it be a sheer hypocrisy to bring in a motion in the same parliament on the recommendations of a similar commission to deprive me or any other person of his civic rights," Mendis said.

The people, he said protest against the use of SPC law for mud slinging campaigns. Millions had been spent on SPCs, he claimed pointing out that his own party should have pressed for the abolition of the controversial law. Instead the party wanted to use it against him, a man who had worked five decades for the party, he said.

The present UNP leadership too had rejected the SPC of Inquiry Act, Mendis pointed out. A three member committee headed by MP Tyronne Fernando comprising Messrs Rohitha Bogollagama and Daya Pelpola appointed along with the Atukorale’s committee that probed Mendis’s conduct, had recommended the abolition of the SPC law of February 1982. The committee has proposed the setting up of a mechanism [within the party] to deal with situations where allegations were made against members.

The Tyronne Fernando committee’s report to the Working Committee was accepted. "Despite that the party was keen to take action against me on recommendations made by a SPC," Mendis said.

Mendis said that SPC law is used against political opponents of the PA. He admitted that there was no difference in the way this particular piece of legislation was used since its introduction.

Although the SPC law was used extensively by the late President J. R. Jayewardene, both Ranasinghe Premadasa and D. B. Wijetunga did not do so. Was there any need to use SPC law if the Commission to Investigate Allegations of Corruption and Bribery is allowed to function freely, Mendis asked. The PA government, he said had cripled the commission for over a year.

Mendis pointed out that the UNP was divided over the Working Committee decision to suspend him. "Several senior members did not back the anti-Mendis move," he said adding that many seniors were aware of the campaign against him.

The former Attorney General and Working Committee member Tilak Marapona who defended Mendis before the SPC was among the officials who did not vote for suspension. Others were Anura Bandaranaike, A. C. S. Hameed, M. H. Mohamed, Susil Moonasinghe, Stanley Kalpage, R. M. Dharmadasa Banda, Nanda Mathew, A. M. S. Adikari and Festus Perera. They have been critical of the way the party treated Mendis. Some of them have said privately the move against Mendis was a part of the ongoing campaign to sideline former heavyweights.

Mendis said that the leadership had been proved wrong. "They really don’t know what is happening," he said blaming the top leadership of taking the party to destruction. "Many people stood by me," he said claiming that there were others who wanted him out.

Three Working Committees representing the Gampaha district organisation were among those who voted against Mendis. Messrs. John Amaratunga, Joseph Michael Perera and Dr. Jayalath Jayewardene were among those who supported action against him.

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"UNP committed to ideas of Premadasa"

by Saman Indrajith
UNP Chairman Karu Jayasuriya described President Ranasinghe Premadasa as a great leader at yesterday’s ceremony to mark the sixth death anniversary of the late leader near the Premadasa Statue at Hulftsdorf.

The wife of the late President, Mrs. Hema Premadasa, son Sajith Premadasa and the Chairman of the Premadasa Centre, Sirisena Cooray were also present on the occasion where floral tributes were paid to his statue — which was garlanded by Mayor of Colombo Omar Kamil.

"On behalf of the UNP, I would like to say that the party is committed and shall remain committed to the ideas and programmes of President Premadasa. We are always dedicated to the concept of creating a Sri Lanka that President Premadasa envisaged, fought for and devoted his life to," he said.

Ven. Elle Gunawansa Thera said that the late President Premadasa was unique among the other UNP leaders.

There is a crying need for a leader of the calibre of President Premadasa today, he said. Though he toiled for the common man of the country during his period of rule, some people tried to tarnish his name by slinging mud at him, Gunawansa Thera noted.

Dry rations were distributed to 1000 poor people near the ‘Premadasa memorial’ at Armour Street yesterday.

Export earnings drop due to poor tea prices

COLOMBO — Sri Lankan exports fell 7.8 percent in the first two months of this year because of a huge drop in the price of tea, the country’s main export commodity, Central Bank figures showed.

Exports in January and February were worth 653 million dollars compared to 708 million dollars during the same period last year, the bank’s economic indicators received here Saturday showed.

Industrial exports fell by 2.9 per cent but agricultural exports suffered a 25.4 percent decline, the bank said.

Unclassified exports had, however, improved from four million dollars to 12 million dollars this year, the bank said, while mineral exports remained static.

Imports were also down sharply during the first two months of the year. Imports fell 21.9 percent to 796 million dollars.

Economic analysts said the main reason for the falling exports was the poor price for tea since August last year. Tea prices have fallen more than 35 percent in dollar terms in the past year.

The drop in tea prices in rupee terms was 28. 89 per cent, reflecting a 10 percent depreciation of the rupee against the US dollar.

The bank said money held in foreign currency by the government and private individuals remained static at 2,856 million dollars at the end of February but the official reserves fell by 4.5 percent.

The poor export performance began in the second half of last year and slowed the year’s total exports to 4,735 million dollars, up just 2.0 percent from 4,639 million dollars in the previous year.

In 1997, exports grew 13.28 percent.

Imports grew by a mere 0.9 percent last year compared to an increase of 7.5 percent in 1977, the data showed.

The slower growth in exports was mainly due to poor tea prices from September when prices fell sharply due to the rouble crisis in Russia, a key buyer. (AFP)

Unite to oust capitalist rule — JVP

By Franklin R. Satyapalan
Tilvin Silva, General Secretary of Janatha Vimukthi Peramuna (JVP) said yesterday that he was certain that voters in the Southern Province cannot be fooled by the two capitalist parties UNP and PA.

He said if anyone was to say that the UNP and PA are the two major political parties in this country I would say that they were wrong, these two parties are the two parties who plundered the assets of this country, caused the most number of deaths of the suppressed and oppressed people, they have nourished the Mafia hoodlums, the underworld goons and drug barons.

I would say that I would believe it not to be a lie if anybody says that PA has given the people nothing but hunger, malnutrition and death. The ethnic problem has broken out into serious proportions, the Sinhala, Tamil and Muslim communities are fighting each other, the oppressed masses are fighting each other and there is no solution in sight to solve the national crisis.

I call upon all the masses, the progressive forces, clergy the working class, farmers, students, the people of all three communities to unite to defeat the two capitalist political parties at the South on June 10th 1999. The people of Ruhuna the birth place of our late leader Rohana Wijeweera should teach the UNP and PA a good lesson by defeating them.

I would say that this would be the first step towards getting rid of the Provincial Councils that is wasting a colossal amount of money that could have been used wisely for the development of the country.

Today the PA too is following the footsteps of UNP by selling state assets at a cheap rate to racketeers, best agricultural areas including the irrigation projects are to be sold, the working class including the farmers are betrayed to be exploited by the multinational companies, this massive Red May Day rally condemns those policies followed by the PA Government and demands that all progressive forces gather to defeat this danger.

The People’s Alliance (PA) having cheated the Sri Lankan people to come to power in 1994 after 17 years misrule of UNP is spending its fifth year in power having gone back on its promises.

Whilst we are on the verges of entering the new millennium once again call upon all progressive forces to unite together and vote the JVP into power to get rid of capitalist parties, General Secretary Tilvin Silva said yesterday.

Foreign delegates comrades Robert Peska (Revolutionary Communist League of Austria), Franz Winkler, "Miss Alessia Moterverdi (Workers’ Voice Italy), Moreno Pasquinelli (International Lininist Current — Italy), Karman Jean Jacques (Communist Party the Left Tendency of France and Mayor of Aubervillers) also addressed the gathering in their national languages which was translated into Sinhalese.

Propaganda Secretary and Western Provincial Councillor Wimal Weerawanse, National Organizer of Socialist Workers’ Union K. D. Lal Kantha, National Organizer Socialist Women’s Union, Miss Dumuthu Attygalle, National Organizer Socialist Students Union and Wayamba PC Councillor Bimal Ratnayake and Politburo Members and Sabaragamuwa Provincial Councillor Ajith Kumara, Nandana Goonetilleke, Anura Kumara Dissanayake, G. Kularatne and chief candidate for Southern Provincial Council Samantha Chandrasena Wijesinghe, also addressed the gathering.

Katunayaka, Biyagama export processing zones are more or less ‘slave zones’ — Dinesh

by Chittaranjan de Silva
The Peoples Alliance has failed miserably by failing to deliver on the promised ‘workers charter’ the leader of the Mahajana Eksath Peramuna Dinesh Gunawardena said addressing MEP’s May Day rally at Gampaha. Katunayake and Biyagama export processing zones are actually ‘slave zones’ said Mr. Gunawardena when we consider the unprecedented way in which the rights of the workers are exploited. We live in an age where the most number of liquor stores unparalleled in the country’s history have come in to being, while crime and lawlessness rampant everywhere he said.

If law and order are to be maintained there must be a true political system and dedicated politicians and the people are yearning for them today he said. The time has come to abolish the Presidential system of government, which is a hindrance to democracy and has become a bane to the people of this country he added. The local industries are fast reaching bankruptcy. The country needs medium and small scale industries to grow in order to provide youth employment he said. Some of the state owned enterprises sold to foreign companies such as the Steel Corporation, Veyangoda Textile Mills and Pugoda Textile Mills are failures too he said adding that the job losses in Veyangoda and Pugoda alone amounts to 5000.

The small scale industries are finding it difficult to compete with multinational companies and have become redundant. Around 70% of people in the age group between 15-29 are unemployed he said. The wealthy are mostly making use of the country’s resources he said pointing out that 20% of the population is using 80% of the wealth The Indo-Lanka Trade agreement entered into by the Chandrika Kumaratunga Government recently will further affect the local industries since low priced Indian imports will flood the Sri Lankan markets and our products will be at the receiving end. The Presidential system has failed to address the major issues faced by the country such as the rising poverty level, cost of living, crime, unemployment, and a need for a democratic political system he pointed out. The people are rejecting their votes more today because they need new systems to come into being he said. It would be a crime to sell the ‘port’ to a private company he said adding that privatisation had been a failure in the past.

Telecom objects to issue of two directories free of charge

by Lishanthie Siriwardena
Sri Lanka Telecom (SLT) has objected to a determination by the Telecommunications Regulatory Commission of Sri Lanka (TRCSL) that business and residential directories must be issued free of charge to all its customers.

SLT viewed as ‘unacceptable’ the Press notice published by the TRCSL on April 24, 1999 that SLT had contravened section 3 of its licence by not providing both residential and business directories to all the subscribers in Greater Colombo when the new rescoped telephone directories for 1999 were distributed, according to telecom sources.

SLT is expected to officially take up the matter with the commission shortly.

According to the notice published by TRCSL, SLT is obliged to issue both the residential and business directories free of charge to all its customers in the Greater Colombo region within two months.

TRCSL in its notice stated that SLT had also contravened its licence by not providing alphabetical listings of its subscribers to both residential and business subscribers in Greater Colombo .

Contravention of section 3 of its licence, as claimed by the TRCSL, is a misunderstanding, SLT officials said.

Although the business white pages (alphabetical listing) have not been included in the new rescoped 1999 residential directory given to its subscribers, they have access to all the numbers via the ‘yellow pages’, SLT claims.

Residential directories were given to business subscribers as well. Therefore, customers have access to all subscribers of SLT in the Greater Colombo region, SLT claims.

TRCSL has given thirty days from the date of publication of the notice to raise objections, if any.

Message from Bohra community leader

His Holiness Dr. Syedna Mohammed Burhanuddin, Head of the International Dawoodi Bohra Community, who arrived in the Country last week and was accorded a warm welcome by his followers and received as a State Guest of the Government of Sri Lanka, said in his discourse.

"We have come from Cairo to this beautiful Island of Serendib, Sri Lanka, which resembles a pearl, and is blessed with the birth of Prophet Adam, the father of mankind. Allah the Almighty has adorned this Island with plentiful natural beauty, trees, colourful gardens, green tea estates, gems, jewels and spices. My respected father, the late His Holiness Dr. Syedna Taher Saifuddin of revered memories, visited this Island a number of times. My followers in Sri Lanka and of many different countries and cities invited me to observe the ten days of the Martyrdom of Imam Hussain, the Grandson of Prophet Mohammed (Peace Be Upon Him). By Allah’s grace, we decided to observe the ‘ASHARA’, ten days of mourning, in Sri Lanka. My visit to Sri Lanka is after eight years. On this auspicious occasion we also inaugurated the newly and beautifully constructed ‘Masjid’ (Mosque) at the Burhani Complex at Bambalapitiya.

"We are sincerely thankful to President Chandrika Kuma-ratunge and Prime Minister Sirimavo Bandaranaike, and the Government for providing us and our followers, who are arriving in thousands from different parts of the world, all facilities and arrangements to make the visit successful and comfortable.

"Prophet Moham-med (Peace Be Upon Him) has said that love for ones country is an aspect of the Islamic faith. I always urge my followers to love and be faithful to their country of adoption. I advise them to abide by the rules of the country and maintain cordial relationships with the members of the bretheren communities, and to work for the betterment of the nation, its people and humanity at large.

"We pray to Allah the Almighty to bless the Government of Sri Lanka and its people with his bounties. May peace and harmony prevail in this land forever and may the nation and its people, under the able leadership of the President, progress and prosper."

Judge commends SP for investigative role in death inquiry

District Judge and Magistrate of Mannar, M. Elancheleyan who held the judicial inquiry into the death of five LTTE cadres at Uyilankulam, commended what he termed the ‘diplomatic role’ played by Mannar’s Superintendent of Police, Lalith Lekamge in transferring the bodies to the International Committee of the Red Cross (ICRC).

The five bodies of the Tigers were found along with a large quantity of military hardware and food items at the scene of a STF commando-led ambush at Uiylankulam on April 18.

The District Judge visited the scene of the confrontation and viewed the five bodies and arms, explosives, ammunition and other items which were found there. Postmortem reports indicated that their deaths had been caused by gunshot injuries.

According to evidence led by Inspector Anurashantha Jayasinghe of the STF and Chief Inspector Peter Duncan Pulle, OIC, Uyilankulam, these five men were killed during the confrontation between a joint STF-police team and LTTE terrorists.

Mr. Elancheleyan drew special attention to the excellent manner in which SP Lalith Lekamge gave evidence after visiting the scene, sandwiched between the cleared and uncleared areas and directed investigations.

SP Lekamge also placed before court a request made to him by ICRC Mannar field delegate, Karin Pistien to hand over the five bodies to the ICRC/SLRCS as they were being claimed by the LTTE.

Court ordered the District Medical Officer of the Mannar base hospital to hand over the bodies to the ICRC/SLRCS and the productions (weapons, explosives, ammunition and other items) be transferred to the central armoury of Police Field Force headquarters, for necessary action.

The District Judge expressed his appreciation at the manner SP Lekamge gave evidence in court, the high respect and honour he had for the administration of justice in Mannar and the excellent standard of the investigation and inquiry which was concluded within three days in this war-torn district.

Mr. Elancheleyan recommended the active role played by SP Lekamge and ordered that copies of this order be sent to DIG (Wanni range) and to the IGP.

(Suresh)

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