Myanmar white rice controversy: House probe on, Trade Ministry claims agreement rescinded

By Shamindra Ferdinando

Chairman of the Committee of Public Finance (COPF) Anura Priyadarshana Yapa, MP yesterday (27) said that for want of proper Finance Ministry supervision, cash-strapped Sri Lanka suffered staggering losses in both local and foreign transactions. Rebel SLPP MP Yapa said that an agreement with Myanmar for the importation of rice this year to meet the shortfall in the supply attracted their attention as Sri Lanka was reported to have paid USD 450 per metric tonne of rice without even bothering to check the quality whereas other countries bought the same variety for USD 350 per tonne. If not for the Myanmar media revelation the matter might have escaped their attention, the former SLFP Minister said.

Lawmaker Yapa said that the issue at hand should be examined against the backdrop of the deepening forex crisis. Responding to another query, lawmaker Yapa said that COPF recently raised the issue with the Finance Ministry. Unfortunately, the Finance Ministry representative, who had appeared at the COPF meeting, responded that the Trade Ministry handled the transaction though they provided the required funds. Lawmaker Yapa said that COPF expected the Finance Ministry to inquire into this matter without delay.

The then Trade Minister Bandula Gunawardena in early Feb this year announced plans to import 100,00 metric tons of white rice through Sri Lanka State Trading (General) Corporation. Lawmaker Yapa said that the Trade Ministry would have to be summoned before the COPF to inquire into the Myanmar deal. However, the Trade Ministry claimed that though the government entered into an agreement with Myanmar for the import of 100,000 metric tonnes of rice, it was rescinded. The ministry official said that they, too, inquired into Myanmar media reports regarding Sri Lanka paying USD 100 more than for a tonne of white rice. According to him, the trade ministry had sought an explanation from the Myanmar diplomatic mission here as regards the discrepancy in prices offered to Sri Lanka and other countries. Asked to explain how the country bridged the shortfall in the local supply of rice, the ministry official said that rice stocks were only imported from India. The official acknowledged that the Finance Ministry might have been unaware of the cancellation of the agreement with Myanmar.

COPF Chairman Yapa emphasized that the country was in such a desperate situation whoever wielded political power now as well as those in authority years before should be held accountable. Responding to another query, lawmaker Yapa said that proceedings of parliamentary watchdog committees showed a bleak picture. Waste, corruption, mismanagement and irregularities seemed to be the order of the day, lawmaker Yapa said, calling for remedial measures without further delay.

The former minister said that the current political crisis could make matters worse. The MP pointed out how the forex issue quickly developed into an unprecedented political crisis now threatening the country. Meanwhile, Secretary to the Trade Ministry Badrani Jayawardena has been replaced by Neil Bandara Hapuwinna. President Gotabaya Rajapaksa has made the new appointment in the wake of Shehan Semasinghe succeeding the trade minister Bandula Gunawardena. Bandula Gunawardena’s tenure as the trade minister was marred by the exposure of the garlic racket.