Beleaguered President grapples with political tsunami

Does Sri Lanka need a national airline?

 

Thousands of protestors have been thronging a makeshift village in the heart of Sri Lanka’s commercial capital Colombo as they try to oust the country’s ruling Rajapakse dynasty. The protests which started off as silent vigils for essentials, domestic gas, fuel and electricity have evolved with the people now asking for the Rajapaksas to step down.  They also allege that the Rajapaksas have been involved in multiple corrupt deals and want the alleged spoils returned.

The village Gotagogama or Gotagovillage is an extension of the Go Home Gota hashtag which protestors have been using for months and has united Sri Lankans of all ethnicities and religions against a common enemy- the Rajapaksas. They have known for long the Rajapakse affinity to divide and rule along ethno religious fault lines and see the support the communities draw from each other as a positive new development. Enterprising protestors even succeeded in putting the Village, which is strategically placed near the President’s office in the old parliament building, on Google maps. The Village is complete with food stands, a library, a kids play area and the Sri Lanka Red Cross Society has set up a first aid station. Big name Sri Lankan artists have shown their support by showing up at the venue.  

Despite the protests entering the nineth day, there hasbeen no letting up by the people nor the government. The Gotagogama was set up just before the holidaysfor the country’s Sinhala and Tamil new year.  It consolidated the protests and the government’s gamble on a week of holiday to buy time in the expectation that the protests will die down have not paid off.  Offshoots of the Village have already sprung up in Galle and Kandy and more are expected in other parts of the country. Meanwhile hordes of protestors from places like Kandy and Negombo have come to Colombo to join the protest at Gotagogama.

The government has come under fire for plans it purportedly has to deploy the army to break up the protest on Monday. A convoy of police trucks which had been lined up in the area of the Village were swiftly moved after news broke of the government’s plan.  The Army Commander Shavendra Silva was swift to distance the military from it.  He issued apublic statement asking the public not to be deceived by rumours which are attempts to discredit the army and assured that the military will not get involved in any violent activity. Silva has already burnt his fingersafter an episode two weeks ago where a group of army men from the special forces rode into a crowd of protestors near the parliament but were stopped by the police who are responsible for civil security.  He came under heavy public censure for interfering in the jurisdiction of the police.

Mid last week Prime Minister Mahinda Rajapakse made overtures to the protestors and invited them for a discussion. The protestors responded with theirdemands including two key ones which are for the President and Prime Minister to step down. Their other demands are that no one from the Rajapaksa family should hold positions in parliament, to bring back the 19th Amendment and set up an interim government for six months to restore crisis hit essential services, steps are taken for corrupt Rajapaksa family members, parliamentarians and government officials to return stolen public money and assets and that they are punished and for parliamentary and presidential elections to be held in six months.

There is speculation that early this week the government will swear in a cabinet with fresh faces after the last one resigned enmasse two weeks ago.  Since then the government and people have been in limbo and governance has stalled as the president grapples with the political tsunami. Except for four ministers who were re sworn almost immediately and handed back the portfolios they held before their resignation, key ministries such as health which is in crisis without forex to buy medicines and medical equipment, are without a minister.

It is also rumoured that an advisory council made up of senior ministers will be set up which will appease them and ensure their continuity.  The president and prime minister are expected to continue in their roles.  The prime minister’s long time ambition has been to install his son Namal as his successor but this will be an untimely move in the current political climate and is likely to get shot down by seniors in the Sri Lanka Podujana Party.  Shuffling SLPP MPs to form a new cabinet which will also include the Rajapaksas and the president also continuing in his role to boot, will not stop the peoples protest because their bottom line is that no Rajapaksa should be in government.

While the government struggles with the politics of the crisis the newly appointed governor of the Central Bank Dr Nandalal Weerasinghe and the Secretary of the Bank M. Siriwardene will be leaving for talks with the International Monetary Fund (IMF) to Washington next week. They will be accompanied by Finance Minister Ali Sabry whose presence is likely to be just a formality with the governor and the secretary who are experienced in dealing with the IMF, handling the meatier work.  A part of this will be to secure USD 4 billion to pay for essentials for the people. The governor has already announced a preemptive default of Sri Lanka’s external debt, a first in the country’spost- Independence history.  Although it will smoothen the path to the IMF, the political instability will rock the boat. Sri Lankans meanwhile continue to be without the steady supply of essentials which sparked the vigils and street protests.

Even as Sri Lanka scrapes the bottom of the barrel, state owned enterprise Sri Lankan airlines announced its decision to dry lease more than 40 regional jets, narrowbodies and widebodies.  According to Aviation News, Sri Lankan is doubling its flights to India to match pre covid levels as the India market opens up. The airline plans to lease aircraft which are less than 15 years old for 4-6 years and invited qualified bidders to respond to its tender. Sri Lankan airlines has listed up to 11 each of regional jets, up to 11 of Airbus A320 and Airbus A 321, up to ten of Airbus 330 and up to 10 more of New Generation Widebody aircraft.  Sri Lankan has reportedly never operated regional jets before even though plans are afoot for their lease.

Well known Sri Lankan scientist Dr Rohan Pethiyagoda who is also a commentator on matters of public interest warns that if the plan goes ahead the country’s forex crisis will worsen.

Sri Lankan has an unshakeable history of corruption and loss making. In 2020, the UK Serious Fraud Office fined Airbus, a French aerospace company, an amount running into millions US dollars for paying a commission of USD 2 million to the account of Priyanka Wijenayake for Sri Lankan to purchase aircraft from the company. Wijenayake is the wife of former Sri Lankan airlines CEO Kapila Chandrasena. The money from the fine went to the UK and Sri Lanka did not receive anything.  

Dr Pethiyagoda who is a respected public figurequestions the decision by the current CEO of Sri Lankan Ashok Pathirage to lease aircraft from Airbusdespite the fraud and against which Sri Lankan has not taken any punitive action so far.  ‘It is an insult to Sri Lankans’, he says.

At the end of 2020, the compete debt of Sri Lankanairlines was Rs. 4, 63820 million. It owed the Ceylon Petroleum Corporation more than Rs 5 billion,.  

Dr Pethiyagoda points out that the losses incurred by Sri Lankan are three times more than the country’s education budget and two times more than the health budget. The current economic crisis is a direct result of such wastage which in the end has to be borne by the people of this country.

Dr Pethiyagoda questions whether Sri Lanka needs a national carrier. In 2018, which was considered a successful year for tourism in Sri Lanka, 23 lakhs of tourists came to the country. Dr Pethiyagoda gives the example of Greece and Cyprus which received 330lakhs and 40 lakhs of tourists that same year.  These countries don’t have a national carrier. He is convinced the only purpose of having a national carrier is for higher ups and politicians to make money from bribes.

According to data from Planespotters.net and Airfleets.net the SriLankan Airlines’ fleet includes six Airbus A320s, four Airbus A321s and 11 Airbus A330s. In January, Smart Aviation Asia Pacific reported that Sri Lanka’s Fits Air is expanding beyond cargo into scheduled passenger operations and is seeking De Havilland Aircraft of Canada Dash 8-400s on lease. There is also would-be start up, Fly Lankan Asia, that is aiming to launch cargo and passenger services.  The report also said that Sri Lankan Air Force’s Helitours recently received its commercial air operator certificate. 

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