Basil Rajapaksa’s philosophy as the Minister of Economic Development was to borrow as much as he can and spend as much as he can on infrastructure projects, so he that his government could make political gains. Ironically, he has now returned to reap what he has sowed- a mountain of debt, an economy in crisis and a Treasury unable to meet its financial obligations.
A fter weeks of speculation, inspired leaks and some misinformation, the youngest of the Rajapaksa siblings of that generation – who is sixty-nine years old- returned to Parliament and cabinet last week.
Actor and Sri Lanka Podujana Peramuna (SLPP) National List parliamentarian Jayantha Ketagoda won the race among SLPP MPs to resign and make way for Rajapaksa. He is likely to be rewarded with an ambassadorial posting Down Under in Canberra. Not only did Basil Rajapaksa enter Parliament, he was also sworn in as Minister of Finance.
In the weeks leading up to all this, there was speculation that elder brother and Prime Minister Mahinda Rajapaksa would resist the allocation of the key Finance portfolio to Basil. There were similar stories in the lead up to Gotabaya Rajapaksa’s nomination as presidential candidate, claiming that he did not have the full backing of his family.
We disagree. The Rajapaksas have many faults but family squabbles are not among them. Whatever differences they may have, they have always been settled at the family dinner table. That is one aspect where they have proven to be head and shoulders above the Bandaranaike siblings.
There was one mishap, though. Three institutions- the Central Cultural Fund, the Buddha Sasana Fund and the Buddhist Renaissance Fund- were initially gazetted to Basil. This was more an administrative error; Basil was not interested in retaining control over them. They were promptly returned to the elder brother the next day.
Nevertheless, what exactly does all this mean? Will Basil Rajapaksa’s return to government change its trajectory- which is currently on a downward spiral-significantly, and if so, how?
There have been suggestions that Basil, as Minister of Finance, will be able to turn around the economy which is in the doldrums with foreign reserves at an unprecedented low level. The younger Rajapaksa has been hailed -just as much as brother Gotabaya was- as a ‘man who gets things done’ and there is hope that he will resurrect and revive the ailing economy.
There is hardly evidence that Basil Rajapaksa is an economic miracle maker. Yes, his tenure as Minister of Economic Development from 2007 to 2015 was marked by several high-profile infrastructure development projects- mostly in highways- that have served the country well.
However, those projects were for the most part serviced by loans, the majority of which were obtained at no so attractive terms. These loans are partly the reason why Sri Lanka is being squeezed by its debt repayment commitments now. This is also why the government is finding it difficult to balance its books and having cash flow problems.
Basil Rajapaksa’s philosophy as the Minister of Economic Development was to borrow as much as he can and spend as much as he can on infrastructure projects, so he that his government could make political gains. Ironically, he has now returned to reap what he has sowed- a mountain of debt, an economy in crisis and a Treasury unable to meet its financial obligations.
Therefore, if rigorous fiscal management is used as a yardstick, Basil Rajapaksa is no financial wizard that can usher is Gotabaya Rajapaksa’s ‘Vistas of Prosperity and Splendour’. To do so, he would have to abandon the many mantras chanted by this regime- including its policy on banning chemical fertiliser. He is extremely unlikely to do so because that would amount to undoing what Gotabaya Rajapaksa has done during most of his Presidency.
Why then is such a fuss being made about Basil Rajapaksa’s re-entry to Parliament? The reality is that it is not because he is the Messiah from Medamulana that will deliver Sri Lanka from the depths of despair but because of what he will mean to the ruling SLPP-led coalition and even more importantly, what he will do to ensure the continuation of the Rajapaksa dynasty and bring into fruition its plans for succession.
Basil Rajapaksa is no economic whiz kid but cunning political strategist he certainly is. In 2010, it was Basil Rajapaksa who engineered cross-overs from the United National Party (UNP) for the safe passage of the 18th Amendment which removed the two-term limit on an individual running for President, enabling Mahinda Rajapaksa to contest a third time. He also coaxed, cajoled and coerced leaders of the Sri Lanka Muslim Congress to support that effort.
More recently, it was his idea to start a separate political entity, the SLPP, when Maithripala Sirisena rather rashly took over the Sri Lanka Freedom Party (SLFP) after winning the election with UNP support. The ‘pohottuwa’ was his brainchild and it is now in full bloom, capturing state power at the expense of both the SLFP and the UNP. As a result, the SLFP is now forced to cling on to the SLPP saatakaya, suffering many insults in the meantime.
Basil is the political brains behind the ‘family firm’ that is now the government of Sri Lanka (as the New York Times said recently) and he will also ensure that it stays that way. The Rajapaksa brothers and Crown Prince Namal now hold five Cabinet portfolios- even the Royal family siblings in England don’t hold that many titles!
There are concerns, though. Prime Minister Rajapaksa is reportedly not in the best of health, President Rajapaksa underwent heart surgery prior to assuming office and former Speaker Rajapaksa is closer to eighty years than to seventy. Young Namal only celebrated his thirty-fifth birthday a few months ago.
This is why Basil Rajapaksa is needed in Parliament. He will not only be the glue that keeps together the unruly bunch that constitutes the backbench of the SLPP, he will also be the ‘go to’ person to sort out intra-party disputes in the SLPP and inter-party disputes in the ruling coalition. He will be the safety net, the obvious alternative if, God forbid, any health scare were to befall the older Rajapaksas.
In other words, Basil is the ‘spare wheel’ and he is now in place. So, the Rajapaksa bandwagon can merrily motor on safe in the knowledge that come what may, they will be still in the driver’s seat as they drive towards ‘Vistas of Prosperity and Splendour’- at least for their family.
