Sweeping powers for Basil Rajapaksa
Nine-page Gazette notification sets out wide ranging subjects and functions for SLPP’s chief strategist Overnight Basil has become the Government’s most important personality after President Gotabaya Rajapaksa; New FM’s tasks also involve reconciliation
Prime Minister Mahinda Rajapaksa gets back some of his subjects given to Basil
Atwo-minute promotional video of Basil Rohana Rajapaksa’s political achievements did the rounds just days before he returned from Los Angeles. Though in black and white, the discerning were able to observe a succinct ending, too good to be an accident. The screen froze for seconds with the words BRAIN. Later the words AIN softly faded from the mobile phone screen leaving the words BR. The Sinhala commentary about 51 years of his political life went silent at that point.
If one wondered, at least momentarily, that it was kudos for Basil Rajapaksa for single-handedly forming the Sri Lanka Podujana Peramuna (SLPP), winning presidential and parliamentary elections leading to the ruling alliance, that was not to be. Praise for reaching such achievements has been made ad nauseum earlier. This time, however, it was for taking over as the country’s powerful Minister of Finance last Thursday. The propaganda video had the marketing theme, subtle and suave, that Basil Rajapaksa had the brains. What was thus left unsaid, after all the good virtues through Uthuru Vasanthaya resurgence in the North and developed villages through Divineguma, and Nagenahira Navodaya, he was now ready for a bigger role.
He had wrapped up a deal to be Finance Minister though most social media speculated he would be given the post upon his return. It is thereafter that he flew to Los Angeles largely for medical reasons. Upon his return, there was only a need to cross the t’s and dot the i’s over the areas he would inherit. That exercise was delayed. His close aides said there were occasions when he remarked upon being told of additions or changes being made later, he had responded “I will wait until they are sorted out. I am in no hurry.” At one point, he had also noted that he was joining the Cabinet of Ministers to do a job of work and not in the belief of merely seeking a post. It must be said in favour of Premier Rajapaksa that he did not yield to pressure from so near and afar.
A few outside the SLPP, who are in the ruling alliance, were piqued by Basil Rajapaksa’s possible entry. A whisper campaign got under way. There were others who spoke openly like State Minister Dayasiri Jayasekera, the General Secretary of the Sri Lanka freedom Party (SLFP). He noted that it was now clear that it was Basil Rajapaksa who had chosen unusual titles for some ministries. Jayasekera is State Minister for Batik, Handloom and Local Apparel Products.
Other than a mere ministerial change, there are incredibly significant connotations in the appointment of Basil Rajapaksa as Minister of Finance. Firstly, Prime Minister Mahinda Rajapaksa received this key portfolio after the August 2019 parliamentary election victory of the SLPP. He has served as Finance Minister three times. The new minister is on top of the ruling alliance leaders who are acceptable to the international community. That such a disposition will shape new foreign policy initiatives in the region and internationally will now
be known publicly. He has, though not in the glare of limelight, been interacting with key countries in the past. That, however, was glossed over then. And now, it has come as clear as clear could be. So very soon, yesterday’s perceived enemy in the international front will be today’s friend. What of today’s friends?
This time, however, ceding the Finance Ministry to younger brother Basil is significant. The economy is in a perilous state. Sri Lanka’s foreign reserves have hit the lowest, pushing the US dollar to 215 per rupee unofficially. The advent of COVID-19 has contributed to economic damage and left thousands unemployed. Many business ventures, both large and small, have been forced to shut down. Apparel industries face the prospect of closure as the European Union has threatened to withdraw GSP Plus tariff concessions. The tourism industry is at a virtual standstill with no arrivals. Though a politician of great fortitude, Mahinda Rajapaksa has remained popular and articulate. He is easily a catalyst not only among the Rajapaksa brothers alone in politics but also among those in the opposition. Thus, he has chosen to shed the greater responsibilities in his political journey. That he would pursue a resilient course became evident on Thursday night when a Gazette notification reversed to him the Buddha Sasana Ministry, the Central Cultural Fund and the Renaissance Fund. They had also been handed over earlier to Basil Rajapaksa in the recent changes. Of course, he has also been tasked Minister of Economic Affairs with the Department of Plan Implementation being placed under his charge.
Overnight, Basil Rohana Rajapaksa (69) has become the most important personality after President Gotabaya Rajapaksa. Until Thursday, his official designation was Chairman of the Special Presidential Task Force for Economic Revival. Politically he was National Organiser of the Sri Lanka Podujana Peramuna (SLPP) and often operated from an office in Battaramulla. It was the third time that he returned to Parliament last Thursday, this time as Minister of Finance heading 27 statutory institutions and public corporations.
What most Sri Lankans were not aware of was a move to affect a complete Ministerial re-shuffle soon after Basil Rajapaksa was sworn in as Finance Minister. The move has been put off by a week or two, mainly because Energy Minister Udaya Gammanipila faces a vote of no-confidence in Parliament. The likelihood of at least two ministers losing their portfolios is not being ruled out.
Herein lie the sum and substance of the most important political development this week. For some time now, the Presidential Secretariat has been making a study of the performance of various ministers and senior officials. Such a study has also focused on the conduct of procurement procedures. Basil Rajapaksa is not venturing in just as a new Finance Minister for a course correction of the economy and finances of Sri Lanka. There is little there except impose controls of sorts or serve as a moderating influence in the light of the lack of money. There is plenty more. With the powers that have been conferred on him, and the personality he depicts, the task is to strengthen the SLPP, now the party of the Rajapaksas. In this task, the key players in the SLPP are convinced that
SLFP to wait and see before taking decision on whether to remain in the ruling alliance
‘smaller’ parties were trying to usurp their role.
This scenario played out when Basil Rajapaksa was away in Los Angeles. After the fuel prices were increased steeply, triggering an issue. It was Basil Rajapaksa’s confidant (now Deputy Government Whip) and SLPP General Secretary Sagara Kariyawasam, who raised voice. He urged Gammanpila to resign. A caucus including three ministers – Gammanpila, Wimal Weerawansa and Vasudeva Nanayakkara – ganged up. They said in a statement on June 14 (after the fuel price hike): “There is a great effort taken to divert the responsibility of taking the unpopular decision of increasing fuel prices on the Energy Minister. The decision was taken by the Cabinet Sub Committee on Cost of Living which was presided over by the President as well as attended by the Prime Minister. On a previous day, the President’s Media Division too has confirmed this fact. However, even though that is the backdrop, the General Secretary of the SLPP MP Sagara Kariyawasam has diverted responsibility of the unpopular decision to Minister Udaya Gammanpila and placed the government in an uneasy position in the eyes of the people. Apart from that, the SLPP General Secretary has challenged the President and the Prime Minister’s decision and made people suspect that there is sectarianism.” The statement suggested that sectarianism should be defeated – a move which meant that Kariyawasam should be dealt with. However, the remarks appear to have boomeranged on them. Kariyawasam remains and has been made Deputy Chief Whip.
One minister among the detractors, found a state corporation under him, taken over and given to the Ministry of Agriculture. Just last Thursday, that body, where there had been alleged malpractices, has been brought under the purview of the Minister of Finance (Basil Rajapaksa). One of those who have brought to the attention of President Gotabaya Rajapaksa the wrong doings was a secretary who quit in disgust. Further investigations into the case are to commence.
The dilemma of the SLPP in some ways appears like the fate that befell the Sri Lanka Freedom Party (SLFP) whose political finale was the yahapalana government from 2015 to 2020. Though no final decision was made, the subject of discussion at the SLFP Central Committee meeting on Thursday at the party’s Darley Road headquarters was on whether to continue as an ally in the government. Several speakers raised issue whether they should continue in the government which has brought immense hardships to the people. Vice President Rohana Lakshman Piyadasa charged that programmes intended to emancipate the people were failures. He said that the time had come for the party to take a decision on the future of its alliance. Others who were strongly critical were Dr Somaratne Dissanayake and Ajith Basnayake. Interesting enough, Ministers and State Ministers serving in the government were silent at the meeting. Former President Maithripala Sirisena who chaired said that the party would watch the situation.
It is not only domestic financial issues that Basil Rajapaksa will deal with primarily. Being a moderate in outlook, he is expected to undertake the government’s reconciliation efforts with the Tamil National Alliance (TNA). A government source said yesterday that was why President Gotabaya Rajapaksa put off talks scheduled last month.
This brings us to a very decisive question -- do the policies, programmes, and other measures the government wants to undertake, particularly with the help of the new Finance Minister, reflect a change in its outlook in policy with regard to the economic, financial, diplomatic, and international face of Sri Lanka? For example, reconciliation is a task re-iterated in the latest United Nations Human Rights Council resolution in Geneva. With less than two months to go for the Sri Lankan issue to be taken up again at the UNHRC, such a change in approach, together with other measures, could resonate well.
A nine-page Gazette notification issued on Wednesday sets out the subjects and functions of the finance minister. They are:
1. Formulating policies in relation to the subject of economic policies and plan implementation, in conformity with the prescribed Laws, Acts and Ordinances, implementation of projects under the national budget, state Investment and National Development Programme, and formulating, implementing, monitoring and evaluating policies, programmes, and projects, related to subjects and functions under below-mentioned State Corporations and Statutory Institutions for “economic policies & plan implementation” based on the national policies implemented by the government, and in accordance with the policy statement “Vistas of Prosperity and Splendour”.
2. Facilitating of carrying out relevant development activities while coordinating all ministries with the Presidential Task Force for Economic Revival and Poverty Alleviation and the Presidential Task Force to transform Sri Lanka into a Green Socio economy with Sustainable Solutions for Climate Change.
3. Coordinating with the Presidential Task Force for Gama Samaga Pilisandara Rural Development.
4. Monitoring and reviewing the cost of living and the flow of goods and services among the community of consumers, making periodic requests to the Cabinet Committee on Cost of Living to ensure that consumers as well as local producers and suppliers receive goods and services at the reasonable prices.
5. Implementing people-centric development activities by coordinating the development activities of District and Divisional Development Committees and Provincial Councils. The following have been listed as special priorities for the Finance Minister:
1. Formulation and implementation of national development programmes and projects to achieve the sustainable development goals in accordance with the Policy Statement; “Vistas of Prosperity and Splendour.”
2. Formulation of national policies
3. Co-ordination of State, Private and Co-operative sectors for facilitating the private sector participation in economic development.
4. Implementation of rural and regional economic development policies and strategies.
5. Co-ordination of all Ministries and other relevant institutions for directing the infrastructure development, investment promotion, regulation of organic fertiliser production and other Government flagship development programmes towards the expected goals.
6. Take necessary measures to consolidate International Banks, funds, and local Banks to uplift the rural and regional economy while strengthening grassroots level network of service delivery network.
A new Finance Minister, with newer powers in his office as well as more clout outside it, will, however, not mean a magic turnaround either in the country’s economy or finance. To the contrary, what Finance Minister Basil Rajapaksa has undertaken is to stem further deterioration of the economy. In that exercise, it will not be surprising if he continues to prescribe bitter solutions that are hard to stomach.
In this landmark political transition, it seems the main opposition in Parliament, the Samagi Jana Balavegaya is missing the bus. Other than lacklustre protests, it is no secret that the main opposition party has failed to win substantial public support. As COVD-19 is raging uncontrollably, the economy is in peril. To their credit, the trade unions are taking up issues. Some are arrested or sent to quarantine. However, the SJB remains to protest another day.