SLFP-UNP Joint Co renew "National G

SLFP ministers say MOU likely to be renewed from December, despite rumbli Heavy criticism over delays in probing high profile cases of corruption, killings Deep concern over skyrocketing cost of living also, minister wants increase in p SriLankan board co

The Joint Council of the Sri Lanka Freedom Party (SLFP) and the United National Party (UNP) will begin talks next week to renew their Memorandum of Understanding (MoU) for the remaining tenure of the “National Government.”

These talks, expected to take place this week, have been moved for the coming week on days when Parliament is in session. The first MoU was signed on August 21, 2015 by Duminda Dissanayake, then acting General Secretary of the SLFP and Kabir Hashim, General Secretary of the UNP. It came minutes after Prime Minister Ranil Wickremesinghe was sworn in. Also on the agenda is the conduct of local government elections.

Though no specific reason is attributed, senior SLFPers say they have time till December this year to reach accord on a new MoU. This position was confirmed to the Sunday Times by the United People’s Freedom Alliance (UPFA) General Secretary and Minister Mahinda Amaraweera and Minister Anura Priyadarshana Yapa who once served as SLFP General Secretary. His successor Duminda Dissanayake was not available.

“We have a few months to decide on the MOU between the SLFP and the UNP. The SLFP members have already met President Maithripala Sirisena and held a discussion on this issue,” Amaraweera said. Yapa added, “There was a meeting scheduled for this week of the Joint Council, but at the last minute we were informed that it was postponed. However, reasons were not given. We have time till December to decide.” No formal reason has been given so far by the SLFP on the December deadline.

The Joint Council is made up of: SLFP - Mahinda Amaraweera, Duminda Dissanayaka, Anura Priyadharshana Yapa, Susil Premjayantha, S.B. Dissanayake, Lasantha

There have been rumblings within both the SLFP and the UNP over the two elections that are due. On both sides of the divide, there is growing opinion, that each should contest separately and re-establish their respective identities. That represents the majority. There are also rumblings within the SLFP. A few ministers, unhappy over different issues involving the coalition, speak privately of functioning as an independent group with no links to the ‘Joint Opposition.’ However, their colleagues dub them as those who are not happy with their current portfolios and claim they were using “pressure tactics.”

Alagiyawanna. UNP - Kabir Hashim, Malik Samarawickrema, Mangala Samaraweera, Ravi Karunanayake, Harin Fernando, Akila Viraj Kariyawasam, Ranjith Madduma Bandara, Ravindra Samaraweera and Thalatha Athukorale.

There is little doubt that the two sides would eventually reach finality on an MoU. However, it is by no means a political cake walk. Firstly, the new MoU would have to encompass a programme of work as the coalition crosses the mid-term mark. In doing so, they will have to do stock taking on the existing MoU to determine what has been achieved and what are outstanding. They would have to then build on that as well as agree on other programmes. Secondly, they would have to be mindful of the next elections. Here, particular attention would be required when it comes to the next presidential election in the highly unlikely event of the Executive Presidential system is abolished. The other is the parliamentary elections due in 2020.

There have been rumblings within both the SLFP and the UNP over the two elections that are due. On both sides of the divide, there is growing opinion, that each should contest separately and re-establish their respective identities. That represents the majority. There are also rumblings within the SLFP. A few ministers, unhappy over different issues involving the coalition, speak privately of functioning as an independent group with no links to the ‘Joint Opposition.’ However, their colleagues dub them as those who are not happy with their current portfolios and claim they were using “pressure tactics.”

Indications on how the UNP will set about with its agenda will emerge when the planned re-organisation of the party structure by party leader and Premier Ranil Wickremesinghe. He is known to have put off the move until the ministerial re-shuffle was over. “We are prepared to work towards national goals. It all depends on the SLFP,” UNP General Secretary Kabir Hashim said yesterday. He, however, did not elaborate.

The current SLFP-UNP Memorandum of Understanding, which is essentially a marriage of convenience, prohibits members from one party crossing over to the other and centres on ten points. The first was to develop the economy. Among the steps to be taken towards this was a state-administered system where prices will be regulated. Another highlight was the decision to establish an independent commission to crackdown on corruption “in accordance with internationally accepted anti-corruption norms whilst calling for a review on regulations on financial crimes and money laundering.”

At least on these key aspects, the coalition’s report card seems to be poor. Though not altogether its fault, a rapid turnaround in the economy became difficult. It virtually put paid to the plans to provide a million jobs. Rising prices of essential consumer goods skyrocketed the cost of living. Just last week, an increase in cess for imported sugar led to retail prices of sugar and sugar-based products going up. This is in marked contrast to claims by the Finance Ministry that the increase in cess by ten rupees would not lead to the rise of retail sugar prices.

Another area which has drawn heavy criticism against the coalition is over investigations into high profile cases involving bribery, corruption, alleged murders and even assaults on media personnel. Barring a handful of cases, the game of buck passing continues with the investigators pointing the finger at the Attorney General’s Department while the latter in turn saying the material gathered is hardly adequate for an indictment.

Just this week, Public Enterprise Development Minister Kabir Hashim warned his ministerial colleagues that an upward revision of LP Gas (Liquefied Petroleum Gas or commonly known as Cooking Gas) prices would be inevitable. This is how he explained the situation: “The Litro and Laugfs are the only two LPG suppliers in the market and 72 percent of the market share is dominated by Litro. If the price of LPG domestic cylinder is not increased with the current global trend, Litro Gas Company will come into a crisis situation. Further, it is predicted that the control price (CP) will be on a rising trend. Therefore, if the company continues at current retail selling price without attending to an immediate price revision, the company could end up making a billion rupees loss for 2017. The Litro Gas Company was performing a profitable business until the end of January 2017 (according to the draft accounts) and has paid more than six billion rupees dividend within 2015 and 2016.” Litro Gas is fully owned by the Government of Sri Lanka.

Hashim says he has sought an increase since the company loses Rs 109.53 per cylinder. In the alternative he has recommended that the Treasury makes available financial assistance to cover up the actual financial loss to the company. This, in effect, is a call to subsidise the sale of LPG which the Government’s lenders like the International Monetary Fund (IMF) would not be in favour. Hence, a price increase has become inevitable. Such a move would snowball into price increases in a whole variety of consumer items.

These developments come in the backdrop of mounting concerns over Public Debt. Government debt could be categorised as inter-