We brought in a government, what do we have now? A reply

The writer of the above letter (24 October), preferring to remain behind the veil of anonymity, has made some inaccurate observations that have come into the public domain through your esteemed newspaper and needs to be countered to some extent to save the readers from being misled.

If I may quote from his letter, “One which surely takes the hat and the bulbous nose is the trumpeted blanket amnesty which will be given to those whose millions and billions, ill-gotten or otherwise, are brought into this country to fill the ever-widening deficit, with no questions, none whatever, being asked now and forever.”

What Ravi Karunanayake may have intended was to bring in funds held in foreign banks by Sri Lankan expatriates initially deposited abroad to avoid excessive taxes here and it certainly may not be to cover ‘ill-gotten’ earning as he tries to make out. The anonymous writer’s intention may have been to imply that the key personalities of the previous regime accused of siphoning huge amounts earned through kickbacks are to be allowed to ‘legitimise’ their ill-gotten earnings.

This could hardly be the case. The Minister went on further to say, “The money will come through the banking system in accordance with internationally accepted rules.” The Governor of the Central Bank added a rider to the Finance Minister’s comment to say: “What we are talking of is the legitimate funds which have been earned and saved by the Sri Lankans working overseas and not these monies which were alleged to be stolen.”

Even the banks in so-called tax havens such as Switzerland now operate under strict Anti-Money Laundering Laws (AML) and so are the other international banks using internationally traded currencies (e.g. US $), including those in China.

It would be interesting to know that the relevant information concerning illicit funds held by well-known terrorists, smugglers and arms dealers like Abu Nidal and Carlos were divulged by Swiss banks famous for secrecy, to authorities, long before the anti-money laundering measures were adopted. Under the AML laws, no US bank will allow money transfers through their banks (all US $ transfers usually have to get channelled through New York) unless proper bona fides are established.

So it is only a matter of presenting evidence to the authorities in those countries that the monies held in certain banks were illegally siphoned out and we would then be able to get the information from the banks holding such funds. It is for this purpose that a thorough investigation has to be carried out to collect evidence.

With regard to banks in Sri Lanka, it is a well-known fact that they operated under certain protectionist measures which led to the oft-repeated comment, “umbrella is not only for the sunshine” and certainly they need not be reminded about risk taking, etc., but unfortunately, their operational activities have not resulted in the desired economic development and they have to be given a gentle push to get on with their job.

The strains on foreign reserves, exchange rates and other sectors of the economy are not merely the result of ‘Yahapalanaya’ but more due to legacies of mismanaged economy in the recent past as reported in a leading Sunday paper which said: “The debt service payments (principal and interest) in the first four months of this year (after the Yahapalanaya Government took over) amounted to slightly over $ 1 billion” mainly due to periodical settlements on Chinese loans.

The mega borrowings on mega projects on high interest is a major factor causing these strains. It has therefore become necessary to spur the industry that can generate foreign exchange incomes in the shorter term, one of which is yourism. Whilst being about it, certain quick decisions have to be taken but occasionally, they may prove that they are not the right ones but such risks have to be taken.

I have no issue with the criticism on nepotism by certain individuals which is certainly against the principle of good governance and it is more the responsibility of the President to prevent and avoid such unacceptable conduct by his Cabinet members.

It is preposterous to accuse ‘Yahapalanaya’ on the increasing crimes committed such as rape, murder and robbery because this ‘criminal culture ’ was installed by the previous regime during its tenure which instead of taking stern action against massive drug smuggling, dealing and retail trade (only a few were apprehended) allowed the ordinary people, quite a number of young people, to become addicted.

Talking about rape, a certain local government politician in the south celebrated the deflowering of 100 virgins at a hotel which was allegedly attended by certain ministers of the previous regime. Such was the benign attitude of the then leaders on criminals. The addicts with warped mindsets engaged in those crimes to earn money for ‘purchases’ and to fulfil the carnal desires aroused by usage of drugs.

Major players were even given high responsibilities such as to overlook the operations of the Defence Ministry and when one such person was apprehended by the STF, the then Head of State flew over to pacify him. Sadly, the same person was appointed as the electoral organiser in the district and was elected and given a responsibility under this regime. This is another instance of bad governance under the ‘Yahapalanaya’.

The economic woes and the day-to-day problems faced by the ordinary people cannot be resolved ‘overnight’ meaning the in short term but they cannot be kept on the back burner for long. There is a huge responsibility on the Government to get the necessary legal and regulatory mechanisms in place, to get the development policy framework formulated and enhance the peaceful atmosphere that emerged after ‘Maithri Palanaya’ was established in January. So hold your laughter or anger for just a little while longer and see what happens.

If they do not live up to our expectations, let us get together and throw this lot out!

T. Mallawatantri