Protests: VAT relief
Ministers told to cancel overseas visits, go to their electorates and solve people’s problems Sirisena accuses media of being heavily against the Govt, takes measures to strengthen control over SLFP
Countrywide protests over living costs, the result of the increase in Value Added Tax (VAT), appear to have spurned the Government into action. President Maithripala Sirisena was to initiate a string of measures after Tuesday’s weekly ministerial meeting where issues arising out of this situation figured prominently. He told ministers that they should put on hold overseas visits, return to their electorates and counter the fallout from the protests.
For a second time this month, President Sirisena was responding to growing public opinion. It was only a week earlier, he heard civil society activists. The move led to the change of Central Bank Governor Arjuna Mahendran. The President picked Indrajit Coomaraswamy to succeed Mahendran.
A new trend with the advent of the United National Front (UNF) Government has been the proliferation of protests over different issues. The exercise seemed to have shades of the Arab spring, the uprisings that spread across West Asia in early 2011. Those in the Government say it showed tolerance on their part when the previous Mahinda Rajapaksa administration used brute force to suppress such protests. This is true though the self-congratulation itself is now pyrrhic. The protests highlight something significant – growing public discontent over mundane to serious issues. It reflects non-action or more pointedly less governance. Thus, Sirisena’s initiatives show the Government could no longer sit on its laurels and take delight that it has created new space for protests. To the contrary, yahapalanaya or good governance would have ensured there was little or no room for protests.
A sampling of such protests against VAT alone just this month: Western Province – July 7 - Panadura, Negombo, Maharagama, Kiribathgoda, July 8 Ja-ela, Kalutara Southern Province – July 7 - Tangalle, Hungama, Beliatte, Walasmulla, Weeraketiya, Katuwana, Middeniya, Elpitiya, Tissamaharama, Hambantota, Suriyawewa, Lunugamvehera, Ambalantota Uva Province – July 8 - Wellawaya Central Province – July 8 - Kandy Sabaragamua Province – July 7 - Kuruwita, Ratnapura, Balangoda, Opanaike, Nivithigala, Godakawala, Kalawana, Ehaliyagoda, Kiriella, Rakwana, Asgama, Weligepola, Kegalle, Embilipitiya, Udamaluwa Wayamba Province – July 7 - Kurunegala Eastern Province – July 8 - Ampara. The United National Party (UNP) staged a counter protest in Ratnapura on Thursday. Protests in other provinces including one’s mentioned here have been held in late June too. If they were backed by the ‘Joint Opposition’, the Janatha Vimukthi Peramuna (JVP) also launched a string of protests for six days. It will end today.
Besides agitation against VAT, there were other protests too. From dawn Friday, residents at Kosgama blocked the High Level Road demanding the promised compensation for the damage caused by the Salawa armoury fire. “They came to console us, made promises and went back. We are still waiting,” said a state service officer who did not wish to be identified because of the sensitive job he holds. His house and personal belongings were destroyed by the devastating fire at the Army’s Central Armoury last month. Then, along the rail track in the southern coastline, fishermen halted trains. They demanded that the Government fulfil an earlier promise to blast rocks near the shore to allow easy passage for their boats into the deep seas. Train services were disrupted. Students of the Sri Jayawardenapura University continued their protests in Nugegoda on Friday.
An adverse fallout of all these protests is the diversion of Police resources to cope with them. This is at the cost of other tasks related to maintaining law and order. Added to it is the inconvenience caused to the people as a result of traffic interruptions during peak hours.
Preceding Tuesday’s discussion was a meet- ing President Sirisena and Finance Minister Ravi Karunanayake had with a group of traders. These traders made clear they should not be viewed as anti-Government. All they had sought, they said, were revisions in the VAT to help both themselves and the consumers. Karunanayake acknowledged that the traders had helped Sirisena in the campaign for the presidential election on January 8 last year. He said they should be aware that the VAT then stood at 11 per cent and it has now been raised to 15 per cent. Later, President Sirisena had discussed areas where the VAT could be revised to exclude some sectors and include some new items. Different proposals including a possible revision in petrol prices are also being looked at. A formal announcement of the revision is to be made this month.
Discussions also extended to the cost of living which has further skyrocketed after the new VAT. It was decided to appoint a ministerial subcommittee to examine and recommend ways of reducing the prices of essential consumer items. In this regard, the team is to study the pricing structure resorted to by importers. This is to determine whether their profit margin could be pruned. The ministerial team comprises Karunanayake, Mahinda Amaraweera, Duminda Dissanayake, Malik Samarawickrema and Rishad Bathiuddin. Sirisena has advised MPs going to their electorates to report back to this Committee any suggestions they could offer.
Ministers also discussed on Tuesday moves to expedite different development projects, a means of providing employment. They noted that there were inordinate delays in procurements arriving in Colombo. This was despite such procurements being put through after a duly appointed Tender Board had examined them. It was decided to study the matter and take corrective action.
It was only the previous day (Monday), President Sirisena told the Government Parliamentary Group at a meeting at the Presidential Secretariat that he would not allow anyone to disrupt this administration. There would neither be an SLFP nor a UNP Government. He asserted that the present national unity Government would be protected. He said parliamentarians must be mindful that the media were not with them. He alleged that they (the media) were weighted against the Government. He was critical of the state run newspapers. Prime Minister Ranil Wickremesinghe who spoke next criticised the Sunday Times. He said the newspaper had asked him whether there was a tug of war between President Sirisena and himself. The Premier said he had replied that there was no such tug of war or Kamba adilla since there was no kamba or rope in the first place. Like Sirisena, he spoke in Sinhala.
People’s woes were not the only issue for President Sirisena. He was also concerned about an issue which he has been dealing with since assuming the Presidency. That was taking fuller control of the Sri Lanka Freedom Party (SLFP), His party stalwarts have been briefing him on the new developments that called for responsive action. Sirisena discussed the issue with Minister Mahinda Amaraweera, General Secretary of the United People’s Freedom Alliance (UPFA). Later, Amaraweera held a meeting of several senior members at his residence to discuss strategy. Two main factors seemed a cause for concern. One was steps taken by former Minister Basil Rajapaksa to launch a new political movement. Senior SLFPers believe it is a precursor to the launch of a new political party, perhaps when the local government elections are due. The other was the United National Party (UNP) launching a membership drive. The UNP has gone hi-tech by introducing a new app for this purpose. Senior SLFPers were worried that their party would be politically dwarfed by these developments.
This saw SLFP Deputy Ministers and State ministers holding a meeting at the Colombo Hilton last Wednesday night to discuss counter measures. Speaking at length was former UPFA General Secretary Susil Premajayantha. He noted that despite protests that would make it seem that the Government is unpopular, they were far from being in a position of facing defeat. After a lengthy discussion where several spoke, they decided that the SLFP should launch its own campaign in the districts to consolidate the party’s position and counter moves to split it. The first public meeting in this regard will be held in Kandy. Though several venues were suggested for subsequent meetings, no decision has been taken.
Another dimension to this development is the former President Mahinda Rajapaksa’s role in the ‘Joint Opposition’. It is becoming