New diplomatic postings, current priorities and challenges

Defeated UNP candidate among new appointees

Sri Lanka’s growing dependence on bilateral assistance in addition to the anticipated USD 2.9bn credit facility from the International Monetary Fund (IMF) is frightening. A statement issued by the Indian High Commission, in Colombo, on Dec 23, 2022, after the handing over of 125 Sport Utility Vehicles to Public Security Minister, Tiran Alles, emphasized the seriousness of the economic crisis. The supply of the first batch of altogether 500 vehicles, to be procured under a USD 100 mn credit line, made available, some time ago, should be examined against the backdrop of the following: (1) Concessional credit lines worth USD 3.2 bn provided by Delhi in diverse sectors including railways, infrastructure, defence, renewable energy, supply of petroleum products, fertiliser, etc. (2) In addition, Sri Lanka received another concessional credit facility amounting to USD 1 bn, through the State Bank of India, for the procurement of essential items.

By Shamindra Ferdinando

The Foreign Ministry, in a press release dated Dec. 27, 2022, announced the appointment of 14 heads of diplomatic missions, and two heads of posts. The new appointees included 13 members of the Sri Lanka Foreign Service (SLFS).

The statement issued by the Public Diplomacy Division appreciated President Ranil Wickremesinghe for giving the lion’s share of appointments to the SLFS. There hadn’t been a previous instance of the Foreign Ministry issuing such a commendation to any of Wickremesinghe’s predecessors.

The FM says it has conducted an orientation programme (Dec. 16-23, 2022) for the group with Foreign Affairs Minister Ali Sabry, PC, discussing his Ministry’s current priorities and foreign policy challenges. Sabry, a close confidant of the ousted President, received the Foreign Affairs portfolio at the expense of academic Prof. G. L. Peiris.

Foreign Secretary Aruni Wijewardane has discussed the leadership role of heads of missions, whereas the orientation programme included discussions on economic, political, security, cultural and consular matters and field visits to the Northern Province, as well as to other government institutions.

Political appointees in the group are Admiral Jayanath Colombage (Indonesia), Udaya Indrarathna (UAE) and Sandith Samarasinghe (Consul General in Melbourne). Sandith Samarasinghe represented the UNP, in Parliament, (2015-2020/Kegalle district). Samarasinghe was one of the few MPs who remained loyal to Wickremesinghe, in the wake of the formation of the Samagi Jana Balavegaya (SJB), in early 2020. Samarasinghe, like all other UNPers, failed to retain his Kegalle district seat, at the last general election, held later that year. Even Wickremesinghe only managed to enter Parliament, through the sole seat the party secured, via its National seat.

One-time Navy Commander, Colombage, who served as the Additional Secretary (Foreign Affairs) to the then President Gotabaya Rajapaksa, since Dec., 2019, received the appointment as Foreign Secretary till August 2020. Wimal Weerawansa and sevearl others accused Colombage of pursuing an agenda inimical to Sri Lanka. Colombage earned the wrath of some over his affiliation with the Pathfinder Foundation, founded by our High Commissioner in New Delhi, Milinda Moragoda. It focuses on bilateral relations with China and India. Colombage has strongly denied any wrongdoing.

The incumbent FS Wijewardane was brought in as FS in May, 2020 amidst unprecedented political turmoil, triggered by violent protests, directed at the then President. Wijewardane succeeded Colombage, who has now received a diplomatic posting, to Indonesia, after he lost an opportunity to secure the ambassadorship in Japan.

Had President Gotabaya Rajapaksa realised the gravity of the situation, he wouldn’t have allowed his media team to declare those who launched high profile protest campaign, most probably instigated by hidden hands on March 31, 2022, outside his private residence, at Pangiriwatte, Mirihana, as extremists seeking to stage an ‘Arab Spring’ type revolution without an inclination to stand up to them. The government’s overall lackadaisical response emboldened protests, while the core reason for the crisis, the lack of foreign currency to finance basic needs, remained unaddressed, as it was beyond its means.

Governor of the Central Bank Dr. Nandalal Weerasinghe, in the second week of April, 2022, declared what he called a pre-emptive negotiated default as Sri Lanka made unilateral announcement that it wouldn’t repay foreign loans. Dr. Weerasinghe earned the appreciation of the public for making the declaration of bankruptcy, regardless of the consequences. Sabry, who served as the Finance Minister at that time had the courage to accept responsibility for Dr. Weerasinghe’s statement.

However, the declaration of bankruptcy also accelerated anti-government protests. The US threw its weight behind the campaign. US Ambassador to Sri Lanka Julie Chung interfered with the government strategy so much so that she issued a statement on May 09 as well organised mobs with specific intelligence, went on the rampage across the country, mainly against government politicians and their properties, calling on law enforcers not to crack down on peaceful protesters. Lawmaker Wimal Weerawansa, both in and out of Parliament, alleged that President Gotabaya Rajapaksa hesitated to suppress the protest campaign as he didn’t want to antagonize the US.

The current crisis cannot be examined without taking into consideration the overall failure of successive governments, particularly President Mahinda Rajapaksa’s war-winning administration (2005-2014) and the Yahapalana government (2015-2019) and the disastrous President Gotabaya Rajapaksa rule (2019-July 2022). This is not to say that the Chandrika Kumaratunga administration was any better as, under that dispensation, the country, for the first time, even recorded a negative growth.

UNP leader President Ranil Wickremesinghe in July last year received a parliamentary mandate to lead the economic recovery. As President, and the Minister in charge of the Finance portfolio, Wickremesinghe should address political, economic and social issues with an open mind. The continuing crisis is extraordinary, the executive needs the unstinted support of the legislature to ensure successful economic recovery in a reasonable time.

But the Executive President must also ensure that ‘robber barons’ are not allowed to exploit the situation, in the name of capitalism, which he wholeheartedly backs, and he must ensure greater discipline and adherence to fair play by the private sector while it continues to be the engine of growth. Particularly, he must ensure that exporters who have surreptitiously stashed export proceeds abroad bring them back to the country as such practices have exacerbated the foreign exchange crisis here, He also must stamp out the underground banking system that has been stealing billions in foreign exchange, earned by our expatriate workers, through punitive punishment and active crackdown by the law enforcers and the Central Bank. Then there are the professional tax dodgers who with the help of unscrupulous firms of Chartered accountants, have been robbing the country, with the help of the lax legal system, while the honest tax payers are often harassed to the limit.

Unfortunately, the executive and legislature seemed to be pulling in different directions, as underscored by the failure on the part of President Wickremesinghe and his parliamentary sponsor, the Sri Lanka Podujana Peramuna (SLPP) to reach a consensus on Cabinet appointments.

As many as 12 vacancies remained in the 30-member Cabinet-of-Ministers. Wickremesinghe named his first set of ministers, on July 22, 2022, soon after the SLPP overwhelmingly elected the UNPer as the first President appointed by Parliament.

Irreversible damage

The Foreign Ministry’s success largely depends on the overall political strategy adopted by the government. There is no point in denying the fact that those who caused irreversible and catastrophic damages never accepted responsibility for their actions. The Yahapalana government decision to co-sponsor an accountability resolution against Sri Lanka, in Oct., 2015, is a case in point.

The then Prime Minister Wickremesinghe and President Maithripala Sirisena never absolved themselves of the responsibility for betraying the war-winning armed forces. The Yahapalana government co-sponsored the US-led resolution, in spite of then Sri Lanka’s Permanent Representative, in Geneva, Ravinatha Aryasinha, rightfully, and spontaneously, taking a strong stand against it. The career diplomat was, however, ordered by Colombo to toe the then government’s line, soon after, which came as strange news to many, like how the UNP government signed a disastrous one sided ceasefire agreement with the LTTE, in 2001, unknown to many in that regime, including then President Chandrika Kumaratunga, who was the country’s Defence Minister.

Sri Lanka is firmly on the Geneva agenda, though Gotabaya Rajapaksa’s government tried to deceive the public by high profile pronouncement that it withdrew from the controversial resolution. The Rajapaksa administration absolutely did nothing to set the record straight, in Geneva. Regardless of promises and accusations, the then Joint Opposition (breakaway faction of the UPFA, led by Mahinda Rajapaksa) directed at the Yahapalana leadership over the handling of Geneva issue, the Rajapaksa administration treacherously refrained from defending the military. The government ensured that the powerful ‘ammunition’, provided by Lord Naseby, way back, in Oct. 2017, and other available ‘evidence’, was never properly utilized. May be the Rajapaksas did not have the required backing from our career diplomatic service as it had been much compromised, especially since 1977.

Rudderless diplomatically, the Rajapaksa administration allowed the Western agenda to continue. In other words, Sri Lanka fully cooperated with those who mercilessly exploited unsubstantiated war crimes allegations to advance their cause. The declaration of Sri Lanka’s bankruptcy status, in April 2022, should be examined against the Western agenda that continuously harassed the country over eradication of terrorism. Some couldn’t obviously stomach Sri Lanka’s triumph over terrorism, hence the persistent campaigning at the UNHRC.

Western powers will unashamedly use trumped up war crimes and unprecedented economic fallout to pressure Sri Lanka to give in. Foreign Minister Sabry never denied Rear Admiral Sarath Weerasekera’s accusation that the President’s Counsel pushed for 21st Amendment on the basis that the finalization of the IMF’s USD 2.9 bn loan depends on the enactment of the new law. What else would the Western powers/IMF demand to help Sri Lanka recover from the economic turmoil?

Premier’s advice

Prime Minister Dinesh Gunawardena’s Office, in a statement issued on Dec. 26, 2022, quoted the MEP leader as having told a group of newly appointed heads of missions that “traditional diplomacy has changed and today’s top priority is economic diplomacy.”

Addressing the group at Temple Trees, the Premier has stressed the importance of attracting investments, promoting exports, tourism and enhance Sri Lanka’s image as a ‘non-aligned neutral country with friendship towards all.’ The Premier was quoted as having declared: “We have not deviated from that policy and our ports are open to everybody and it is your duty to get this message across to the world.”

SLFS members are Permanent Representative designate to the UN in Geneva Himalee Arunathilaka, Ambassador designate to Bahrain Reethi Wijeratne, High Commissioner designate to Australia Chitranganee Wagiswara, Ambassador designate to Vietnam Dr. Saj Mendis, Ambassador designate to France Manisha Gunasekera, Ambassador designate to Kuwait B. Kandeepan, Ambassador designate to Ethiopia and the Africa Union Theshantha Kumarasiri, Ambassador designate to Germany Varuni Muthukumarana, Ambassador designate to Lebanon Kapila Jayaweera, Ambassador designate to Jordan Priyangika Wijegunasekara, Ambassador designate to the Philippines Dr. Chanaka Talpahewa, Ambassador designate to Israel Nimal Bandara and Consul General designate to Milan Dilani Weerakoon .

Let me appreciate and congratulate Dr. Chanaka Talpahewa again for ‘Peaceful Intervention in intra-state conflicts: Norwegian Involvement in the Sri Lankan Peace Process.’ His work. while being in SLFS, is perhaps the most courageous and fearless response of a career diplomat to a treacherous project that was meant to weaken the Sri Lankan State. Although Sri Lanka emerged victorious in that ‘war’ to save its unitary status, an utterly corrupt and reckless lot had destroyed the country.

Sri Lanka shouldn’t expect a significant improvement in the Foreign Service, regardless of new appointments. That should be obvious. The Wickremesinghe-Rajapaksa government cannot be so stupid as to believe that a change of heads of missions/filling vacancies may result in major changes. Regardless of President Wickremesinghe repeatedly assuring his administration wouldn’t take sides, in international and regional ‘conflicts,’ controversy over high-tech Chinese research ship, Yuan Wang 5, visit to the Hambantota Port, last August, underscored Sri Lanka’s predicament, with India kicking up a fuss, trying to treat Sri Lanka as a vassal state.

Colombo struggling to cope up with political turmoil, in the wake of Gotabaya Rajapaksa’s ouster, delayed the visit by about a week following India’s objections. Debt-ridden Sri Lanka needs to address concerns of both India and China, two major bilateral creditors and generous donors, whose cooperation is vital for the successful conclusion of debt restructuring talks. In fact, the whole process, in spite of this being Sri Lanka’s 17th IMF facility, has been delayed for want of approval by New Delhi and Beijing.

India’s membership, in the US-led four-nation grouping, meant to counter China, has further complicated matters for hapless Sri Lanka. Sri Lanka recklessly caused irreparable damage to her relations with Japan by unilaterally cancelling the Japan-funded light train transit system, in Sept. 2020. An angry Japanese leadership, smarting from that incident, ignored Sri Lanka’s plea for urgently required financial assistance, at the onset of the financial crisis, though Tokyo seemed to have changed its approach, after the change of government. The four-member grouping, includes the US, Japan, Australia and India.

Sri Lanka’s relations with Australia remain quite friendly with both countries, in spite of political upheaval here, cooperating closely to block illegal refugees. Australia has extended extraordinary support for Sri Lanka’s efforts by paying for fuel required by the cash-strapped Navy, and Air Force, to maintain sufficient patrols.

However, India’s stand on the continuing Ukraine war should be a case study for poorly led Sri Lanka. After gaining independence, over seven decades ago, the country is in the hands of a pathetic lot whose capabilities are highlighted in the Auditor General’s reports to Parliament.

Necessity for reappraisal of policy

Sri Lanka needs to reappraise the whole gamut of issues, ranging from continuing destructive Indian fishers, poaching in Sri Lankan waters, to humiliating failure to convince Singapore to extradite former Governor of the Central Bank of Sri Lanka, Arjuna Mahendran, despite President Wickremesinghe wanting to go ahead with the hastily concluded free trade agreement between the two countries.

Sri Lanka’s stand on the Access and Cross Servicing Agreement (ACSA), that the Yahapalana government entered into, in August 2017, as well as Millennium Challenge Corporation (MCC) Compact and Status of Forces Agreement (SOFA), should be made public. Although the previous UNP-led administration discussed MCC and SOFA, they never materilized. The possibility of the US seeking to revive MCC and SOFA cannot be ruled out as the developing situation can take a turn for the worse.

The signing of an energy agreement with the US-based New Fortress Energy, in September 2022, under controversial circumstances, and the subsequent declaration made by the then CEB Chairman M.M.C. Ferdinando, regarding Indian Premier Narendra Modi’s intervention, on behalf of the Adani Group, should prompt a thorough examination of such ‘deals’ to prevent recurrence. The deal with New Fortress Energy led to the breaking up of the SLPP parliamentary group, with a small section of the Cabinet-of-Ministers moving the Supreme Court, unsuccessfully, against the transaction whereas Ferdinando denied making allegations against Modi on the basis of what President Gotabaya Rajapaksa had told him.

The signing of the one-sided Ceasefire Agreement, in Feb. 2002, co-sponsorship of accountability resolution, in Oct. 2015, as well as the Singapore-Sri Lanka Free Trade Agreement (SSLFTA), in January 2018, highlighted the absence of at least basic decision-making process. Perhaps, the Foreign Ministry, at least now, should undertake a study of its failures/inadequacies with the focus on major developments over the years.

The cancellation

No less a person than Foreign Minister Sabry has disclosed how President Gotabaya Rajapaksa, on the advice of those near and dear to him allowed the collapse of the economy.

The Minister didn’t mince his words when he named the culprits by their positions during an exclusive live interview on Swarnavahini, in June, last year. But, that doesn’t clear him of the often repeated collective responsibility of the Cabinet-of-Ministers in case relevant issues had been taken up therein.

The reckless ban on fertiliser, agrochemicals, cancellation of the Light Train Transit System and refusal to engage the IMF on the 17th loan facility, needed by Sri Lanka at the correct time led to the ruination of the economy.

Having ruined the economy, those at the helm now expect a miracle to save the country. The much-touted economic diplomacy seems part of the deception as the crisis deepens with no tangible solutions in sight.