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Friday December 8th, 2023

Members of Sri Lanka president, PM ruling family in Pandora papers

Former MP Nirupama Rajapaksa

ECONOMYNEXT – Two relatives of Sri Lanka President Gotabaya Rajapaksa and Prime Minister Mahinda Rajapaksa have been named in Pandora papers, a global investigative journalism group-led analysis on documents related to offshore financial companies, showed.

Nirupama Rajapaksa, the cousin of both Sri Lanka’s president and Prime Minister, and her husband Thirukumar Nadesan have been named in the leaked Pandora papers that were investigated by the International Consortium of Investigative Journalists (ICIJ) in collaboration with the BBC, the Washington Post, the Guardian, WDR/NDR (Germany) and others.

The cache includes 11.9 million files from companies hired by wealthy clients to create offshore structures and trusts in tax havens such as Panama, Dubai, Monaco, Switzerland and the Cayman Islands. According to international media reports, it is the world’s largest ever leak of offshore data to have exposed financial secrets of rich and powerful people.

The Pandora papers expose the secret offshore affairs of 35 world leaders, including current and former presidents, prime ministers and heads of state. They also shine a light on the secret finances of more than 300 other public officials such as government ministers, judges, mayors and military generals in more than 90 countries.

These include former UK Prime Minister Tony Blair, the King of Jordan, Azerbaijan’s ruling Aliyev family, Czech Prime Minister Andrej Babis, Indian cricket icon Sachin Tendulkar, and Pakistan’s political elite, among many others.

Nirupama Rajapaksa served as deputy minister of water supply and drainage in former president Mahinda Rajapaksa’s government from 2010 to 2015 and Nadesan has worked as a consultant and hotel entrepreneur.

“Nirupama Rajapaksa and Nadesan together controlled a shell company they used to buy luxury apartments in London and Sydney, and to make investments, according to leaked files,” the ICIJ said in its website after analyzing the document related to both Nirupama Rajapaksa and Nadesan.

“Nadesan set up other shell companies and trusts in secrecy jurisdictions, and he used them to obtain lucrative consulting contracts from foreign companies doing business with the Sri Lankan government and to buy artwork.”

In 2018, one of the companies, Pacific Commodities, transferred 31 paintings and other South Asian art pieces to the Geneva Freeport, an ultra-secure warehouse where assets are not subject to taxes or duties, it said.

“In confidential emails to Asiaciti Trust, a Singapore-based offshore services provider, a longtime adviser of Nadesan’s put his overall wealth, as of 2011, at more than $160 million. ICIJ couldn’t independently verify the figure.”

The ICIJ analysis showed Nadesan is connected with Concord Assets Inc, Pallene Investment Limited, Pacific Commodities Limited, Nadesan Trust, The Sri Nithi Trust, Pacific Trust, Challan Oil Exploration Limited, and Rosetti Limited.

Nirupama Rajapaksa had been connected with Challan Oil Exploration Limited, and Rosetti Limited, the analysis showed.

“Asiaciti Trust managed some of Nadesan’s offshore companies and trusts, with assets valued at about $18 million, according to an ICIJ analysis,” it said.

“The firm listed him as a politically connected individual because of his wife’s political position. Asiaciti kept the family as clients even after Nadesan was charged with embezzlement in 2016.”

On September 13, ICIJ journalist Scilla Alecci had written to both Nirupama Rajapaksa and Thirukumar Nadesan seeking some response on allegations against them. Alecci had inquired if Nirupama declared the Pacific Trust to tax authorities. She was found to be one of the beneficiaries of Pacific Trust which holds a $51 million art collection.

Alecci also asked for a source of wealth from Nirupama Rajapaksa’s husband Nadesan for 100 million pounds (USD 160 million), according to a 2011 document, and USD 18 million total in both the Sri Nithi Trust and the Pacific Trust in 2017.

The ICIJ analysis said both Nirupama Rajapaksa and Nadesan declined to answer the organisation’s questions about their trusts and companies.

Neither Nirupama Rajapaksa nor Nadesan was immediately available for comment.

Nadesan was arrested in 2016 in a luxury villa property that’s said to be linked to current Finance Minister Basil Rajapaksa and was charged with embezzlement in connection with the real estate deal.

Both Nadesan and Basil Rajapaksa have denied wrongdoing.

Nigel Green, CEO of deVere Group, one of the world’s largest independent financial advisory, asset management and fintech organisations, said the Pandora papers are not representative of the wider offshore financial industry which typically helps hardworking people looking for better returns and more flexibility.

“When it comes to those who are in or have previously held political or royal office, and/or those who are actively seeking to break the law by hiding or ‘washing’ money, busting sanctions or evading tax, there must be complete transparency with financial dealings,” Green said in the statement.

“However, the vast majority of the millions of people, who use companies providing offshore financial products and services, are not representative of those high-profile names that have been disclosed in the Pandora Papers.”

“Indeed, the overwhelming number are hard-working, law-abiding individuals using fully legal and compliant solutions in order to seek out better returns, more options and greater flexibility,” it added. (Colombo/Oct05/2021)

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SLPP enjoying “great demand” from potential presidential candidates: Namal

FILE PHOTO – President Gotabaya Rajapaksa with nephew Namal at the opening of the last part of the Southern Expressway/PMD

ECONOMYNEXT – The ruling Sri Lanka Podujana Peramuna (SLPP) enjoys “great demand” from potential presidential candidates, and the party will have to take a call on working with incumbent President Ranil Wickremesinghe, MP Namal Rajapaksa said.

Speaking to reporters on Thursday December 07, Rajapaksa claimed several names have come up concerning the SLPP’s candidate at next year’s presidential election.

“There is great demand: entrepreneurs, businessmen, politicians, are all there. There are presidents too, ready to come forward with our party,” he said.

“Out of all these people, we will put forward on behalf of our party the candidate that can take the country forward while stabilising the economy,” he added.

Commenting on continued support for President Wickremesinghe, Rajapaksa said the while SLPP at present works with the former in the present government, the party will have to decide whether that relationship continues going forward.

“The matter of whether we work with the United National Party (UNP) in the future – this is not a politics dependent on individuals; the SLPP is a party. We will talk as a party with other parties, but no discussions will be held centred around individuals,” he said.

Rajapaksa noted that Wickremesinghe was the only member of parliament representing the UNP at the time of his election by parliament following the resignation of his predecessor Gotabaya Rajapaksa .

“If we are to collaborate with the UNP in the future, we’ll have to discuss that. Once the party has decided on that, we can get a start on those discussions. Today, we work with the president in the present government,” he said.

Last month, when asked to comment on President Wickremesinghe’s 2024 budget, MP Rajapkasa sounded rather sceptical of the president’s ambitions for turning the crisis-hit economy around.

“We must study the budget. He had presented a lot of these proposals in last year’s budget too. They don’t seem to have been implemented,” Namal Rajapaksa said, speaking to reporters after the budget presentation Monday November 13 afternoon.

Rajapaksa’s father and leader of the SLPP former president Mahinda Rajapaksa, however, spoke in favour of Wickremesinghe’s budget.

Related:

Sri Lanka’s “forward-looking” 2024 budget will instill fiscal discipline: MR

While not without its shortcomings, the older Rajapaksa said, the 2024 budget is a forward-looking one that aims to ensure fiscal discipline and put Sri Lanka on the path to recovery. (Colombo/Dec07/2023)

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Sri Lanka ruling party MP contradicts poll to claim his party is overtaking president’s

ECONOMYNEXT – The ruling Sri Lanka Podujana Peramuna (SLPP) is rising from the ashes albeit at a slower than anticipated pace, while President Ranil Wickremesinghe’s United National Party (UNP) still commands only 1-2 percent of the vote, an SLPP legislator said.

MP S B Dissanayake, who is not a member of the cabinet of ministers headed by President Wickremesinghe, told reporters on Thursday December 07 that support for any major political party of the island nation is on a downward trend while the SLPP alone is gaining ground.

An independent poll by the Institute for Health Policy (IHP) however shows that this is decidedly not the case. Polling data for October showed that the leftist National People’s Power (NPP) had enjoyed support from 40 percent of likely voters, having dipped 2 percent from September, while the main opposition the Samagi Jana Balawegaya (SJB) stood at 26 percent, increasing four percent from 22 percent in September. President Ranil Wickremesinghe’s UNP’s support decreased marginally to 11 percent in October from September’s 13 percent. The SLPP also saw a decrease to 5 percent from the previous month’s 8 percent.

“You can’t gamble with elections. The election must be held. We always say electrons must be held. The presidential election must be held next year. There is no alternative,” said Dissanayake.

“Parliamentary elections can be called if needed. But that’s not how it is with the presidential election. Nominations for that will have to be called by September, October next year,” he added.

Asked by a reporter if the SLPP is ready for elections, Dissanayake acknowledged that support for his party had eroded, to nothing.

“We crashed to zero. We were turned to ashes. But we will rise from those ashes. We’re not where we thought we were. The 6.9 million [votes received at the 2019 presidential election] no longer applies. We’re at about half of that. But we’re rising, like this,” he said, gesturing upwards.

“As other major parties go in the opposite direction, we’re rising slowly. But the UNP is not. It’s still on the ground, and still at 1 to 2 percent,” he claimed.

“The SLFP is there too. Those who left us are the same. Even together they cannot form 1 percent. But we’re climbing,” he said. (Colombo/Dec07/2023)

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Sri Lanka president appoints main opposition MP advisor

ECONOMYNEXT – Sri Lanka President Ranil Wickremesinghe has appointed MP Vadivel Suresh as a Senior Advisor aimed at “fostering the integration of Hill Country Tamils into Sri Lankan society”, the president’s office said.

A statement from the President’s Media Divison (PMD) said Suresh’s “pivotal role will centre around overseeing the comprehensive integration of Hill Country Tamils, particularly focusing on the districts of Badulla, Nuwara Eliya and Rathnapura”.

“The Senior Advisor will play a key role in coordinating various initiatives related to the welfare of Plantation Companies, the promotion of women, safeguarding children, addressing disparities in Tamil schools and upgrading the delivery of health services,” the statement said.

In May this year, Suresh, who represents the main opposition Samagi Jana Balawegaya (SJB) in parliament and also serves as the general secretary of the Lanka Jathika Estate Workers’ Union, made headlines when he issued an ultimatum to opposition and SJB leader Sajith Premadasa, demanding an apology for a perceived slight on the Indian-origin Tamil community that Suresh represents. He also spoke favourably of President Wickremesinghe, hinting at a possible cross over.

Sri Lanka’s Indian-origin Tamils, most of whom have historically worked in the plantation sector and live in dire conditions on wages widely considered unacceptably low. Speaking at a May Day rally, the Badulla district MP said Premadasa must apologise to the estate Tamils for allegedly snubbing them at an event in Madulsima that he failed to attend.

“I would like to say to our leader, sir, do not take us for granted,” said Suresh.

“If you need us to stay with you, come right now to Madulsima and apologise to my people and then we shall restart our journey. Otherwise I won’t be part of that journey. There will be no Vadivel Suresh. If you don’t apologise to my people, I won’t be with the SJB,” he said.

Making matters worse, the MP also expressed a willingness to join President Wickremesinghe if he was able to raise the daily wage of plantation workers and resolve their grievances. He also said the president has been successful in containing the disruptions caused by the currency crisis.

“On this May Day, we say to both the opposition leader and the president, I and my people would join hands with a leader that worked to increase [estate workers’] wages and give them [access to the Samurdhi welfare scheme] and include them in national policy,” he said. (Colombo/Dec07/2023)

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