Price cut for New Year, but

Supermarkets passing on 15 per cent tax to consumers but Govt may reduce prices for Avurudu season India negotiates with US on resolution against Lanka but likely to support it eventually Commonwealth conference call soon to decide on SL issue despite GL'

The threat of a second United States resolution at the on-going United Nations Human Rights Council (UNHRC) sessions in Geneva is not the only issue to preoccupy the Government this week.

There was another. It is the issue of rising prices of consumer items and the impact it is having on Sri Lankans, particularly those in the middle and lower classes. President Mahinda Rajapaksa recounted his experience during a visit to Moneragala early this week. He asked a woman "Jeevana Viyadama Vedida" or is the Cost of Living high? She shot back "Vedi vunaata api merenney nehe ney" or though high, we (meaning people) do not die now. She was of course alluding to the military defeat of Tiger guerrillas - a feat to which Rajapaksa gave political leadership. The woman was conscious that there was no fear psychosis due to bomb explosions or assassinations thereafter. Yet, she politely made clear living costs were high.

The discussion was intense in view of the National New Year next month. The discussion focused on many areas. One was how it was claimed that small traders were being badly hit by the proliferation of supermarket chains countrywide. In fact, this was the reason why the Government introduced two different taxes on these chains from April 1 this year. The idea was to slow down their growth. Supermarkets having a gross turnover of more than Rs. 500 million a quarter will have to pay a Value Added Tax (VAT) of 12 per cent. In addition, there is also a 3 per cent Nation Building Tax. Most supermarkets have decided to pass on the new levies to the consumer, not by way of adding them separately in their bills as Government taxes. Instead they are to be reflected in the items they buy, thus keeping the consumer unaware that the taxes have been passed down to them.

On the other hand, supermarket chains are also making a strong case for their increasing role. One of them said that more than 35 per cent of their consumers came from the middle class. More of them spent just over Rs. 1,200, the per consumer ratio they needed to stay afloat as a commercially viable venture. "They had the option to buy, for example two potato spuds, a handful of capsicum, chillies or similar item, get it weighed and pay for it. At smaller outlets, they do not have that option and have to settle for a quarter, half or a kilo of some item. Here again, the weight may not be accurate," the Manager of a large supermarket in the outskirts of the City said. He argued that the new levy would only punish the consumer and force them to mostly unreliable outlets. Since supermarkets were buying consumer items in bulk, it was possible for them to market them at a more competitive price than most retail outlets, he pointed out. In marked contrast, he said, a vast majority of other outlets obtained their requirements not from wholesalers. Hence, the price mark-ups were higher.

The cabinet appointed a ministerial team to identify ways and means of reducing the prices of essential consumer items. It is headed by Economic Development Minister Basil Rajapaksa. It was only a week earlier that he was named the National Organiser of the Sri Lanka Freedom Party (SLFP), the main partner in the ruling United People's Freedom Alliance (UPFA). The ministerial team has already got down to business identifying the consumer items on which price reductions could be made and the mechanisms for it. Thus, the weeks ahead of the New Year will see official announcements of price reduction of a variety of items. However, if one is to go by past practices, for how long such lower prices will remain is a critical question. Moreover, they will not lead to hotels, restaurants and other outlets consequently reducing prices of consumable products.

The urgent need to give people relief for the National New Year came as the United States intensified diplomatic efforts in Geneva this week over its second resolution. The harden- ing US stance was reflected in a statement issued in Colombo by the US Embassy. It came in the wake of a report that a large group of families of those who disappeared had been stopped in Vavuniya and prevented from heading towards Colombo. The protest has been organized by Mano Ganesan, Leader of the Democratic People's Front (DPF). At the news briefing after Thursday's weekly cabinet meeting, official spokesperson and Media Minister, Keheliya Rambukwella said allegations had been made by the US Embassy. "I read them in the newspapers. I will have to check and let you know why they were stopped," he added.

Asked whether he contested the veracity of the embassy statement, Rambukwella replied, "As for now, I have not got any information. I'll need to check and let you know. And if the reason to stop them is not a valid one, then we'll have to investigate it. They (the Police) have said that this is for their own safety (the reference is to the protestors)and advised them not to cross certain areas….."

The US Embassy statement on Wednesday said: "The U.S. Embassy is concerned about reports that hundreds of Sri Lankan family members of the disappeared were blocked in Vavuniya by Sri Lankan authorities while travelling to Colombo. These family members are calling for information about their missing loved ones. The Embassy calls upon Sri Lankan authorities to allow free movement of these citizens. The right to freely express opinions is universal and protected under Sri Lankan and international law. The United States is constructively working with international partners to support these basic freedoms through the United Nations Human Rights Council (UNHRC) resolution in Geneva.

"We continue to urge the Government of Sri Lanka to follow through on its own commitments to its people by implementing recommendations made in their Lessons Learnt and Reconciliation Commission (LLRC) Report. The LLRC recommends thorough investigations into disappearances as well an establishment of a mechanism to address cases of the missing and detained. Since last year's UNHRC resolution the United States has grown increasingly concerned by the lack of progress on these issues, as well as backsliding on other important areas of fundamental democratic rights. All Sri Lankans should enjoy the same rights and live in dignity, sharing a democratic, secure, and prosperous future."

Though seemingly routine, the statement did contain a strong message. It is one of the toughest from the US Embassy in recent years. One was the expression of increasing US "concern" by the lack of progress since the last UNHRC resolution. This is a forerunner to the second resolution and the reasoning behind it. The other is the charge that the Government was "backsliding" on "important areas of fundamental democratic rights." Though the group from Vavuniya could not reach Colombo, another group of next of kin turned up outside the UN compound in Colombo on Wednesday. They staged a protest and handed over a letter to a local staffer. Earlier, they staged a protest outside Nelum Pokuna Theatre.

Military spokesperson Brigadier Ruwan Wanigasooriya circulated to the media a statement. It said:" This morning a group of over 1500 parents/next of kin of missing persons staged a protest in Colombo and handed over a letter to UN office requesting the UNHRC to account for their loved ones. This is a demonstration of only a fraction of the reality of terrorism that we defeated in Sri Lanka and the international propaganda spearheaded by the GTF and its allies has conveniently left out thus obscuring the real picture. This list does not contain tens of thousands of Navy, Air Force, Police, Civil Security Department persons and most importantly the civilians killed, missing as a result of terrorist acts of the LTTE. (If a complete list were to be provided to the UN this association of the parents of the missing persons would have had to hire an 18 wheeler truck.)

"Names of over 3000 persons who have gone missing was (sic) handed over to the UN and I have got scanned copies of the covering letter and is attached herewith. In that letterhead the address, email and telephone number of the 'Dead and Missing Person's Parents Front' are given, and you may get more information from them.Sharing for your general information please."

Brigadier Wanigasooriya's note to the media raises an all important question. On the one hand, the Government has publicly questioned the propriety of countries and non-governmental organisations calling on the UN Human Rights Council to probe alleged war crimes against troops. Such calls have also been accompanied by demands that disappearances be probed. These issues, the Government has maintained, had received their attention. However, here is an instance where the UN Human Rights Council is being called upon to account for those who have disappeared. Arguably the call is being made by the "Dead and Missing Persons Parents Front" and not officially by the military. Yet, there appears a clear contradiction apart from the fact that the comments have come from the spokesperson. The only logical way the UNHRC could provide answers to such a request would be after an investigation.

US and Indian diplomats in Geneva were locked in consultations over the provisions in the draft second resolution. The full text of that draft was revealed exclusively in these columns on February 24. Here is the latest draft as it stood yesterday (Saturday March 9). It is likely to undergo more changes. The US diplomats in Geneva held an informal meeting on Friday at the Palais des Naciones in Geneva where the latest draft of the resolution was officially made known.(See below for full text.)

Sri Lanka's Ambassador to the UN in Geneva, Ravinatha Aryasinha, who attended the event, said the resolution was not acceptable to Sri Lanka. Though present the Indian envoy did not make any comments.

Draft resolution HRC 22 Promoting Reconciliation and Accountability in Sri Lanka

The Human Rights Council, PP1 Guided by the Charter of the United Nations, the Universal Declaration of Human Rights, the International Covenants on Human Rights and other relevant instruments, (PP1 19/2)

PP2 Recalling Human Rights Council Resolution 19/2 on Promoting Reconciliation and Accountability in Sri Lanka,

PP3 Reaffirming that it is the responsibility of the Government of Sri Lanka to ensure the full enjoyment of all human rights and fundamental freedoms of its entire population,

PP4 Reaffirming that States must ensure that any measure taken to combat terrorism complies with their obligations under international law, in particular international human rights, refugee and humanitarian law, as applicable,(PP3 19/2)

PP5 Taking note of the Government of Sri Lanka's National Plan of Action to Implement the Recommendations of the Lessons Learnt and Reconciliation Commission (LLRC) and its commitments as set forth in response to the findings and recommendations of the LLRC,

PP6 Noting with concern that the National Plan of Action does not adequately address all of the findings and constructive recommendations of the LLRC,

the constructive recommendations contained in the LLRC's report, including the need to credibly investigate widespread allegations of extra-judicial killings and enforced disappearances, demilitarize the north of Sri Lanka, implement impartial land dispute resolution mechanisms, re-evaluate detention policies, strengthen formerly independent civil institutions, reach a political settlement on the devolution of power to the provinces, promote and protect the right of freedom of expression for all and enact rule of