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Monday September 25th, 2023

New twists to Sri Lanka ruling party’s factional theatrics as alliance partners cry foul

The Rajapaksa Brothers, President Gotabaya, Prime Minister Mahinda and Basil at a felicitation

ECONOMYNEXT  – Partner parties of the Sri Lanka Podujana Peramuna (SLPP)-led alliance have issued a joint-statement criticising attempts from within to heap blame for a staggeringly unpopular fuel price hike on Energy Minister Udaya Gammanpila.

In a statement signed by, among others, National Freedom Front (NFF) leader and Industries Minister Wimal Weerawansa and MPs Vasudewa Nanayakkara, Prof Tissa Vitharana and Athuraliye Rathana Thero June 14, eight out of 11 parties representing the government rejected the attempt to blame the decision on their colleague.

SLPP general secretary MP Sagara Kariyawasam on June 12 demanded the resignation of Energy Minister Udaya Gammanpila accusing him of conspiring to bring the party leadership to disrepute by increasing prices.

Related: Sri Lanka ruling party kindles resignation drama over fuel price hike

Criticising the move, the alliance partners said in their statement: “The decision to increase fuel prices was taken by a cabinet sub-committee on cost of living chaired by the president and participated by the prime minister, as recently confirmed by the President’s Media Division. By assigning blame for this “unpopular” decision to Mr Gammanpila, SLPP General Secretary MP Sagara Kariyawasam has thrown the party into an unnecessary crisis before the public.”

The general secretary of the party openly challenging a decision made by the president and the prime minister has led to the public wondering if there is factionalism in the government, the party representatives said.

“We would like to point out that such clannish and immature actions ultimately result in the people losing confidence in the government. It is the duty of the president and the prime minister to to defeat this trend,” they said.

Meanwhile, in a new twist to the saga, State Minister Nimal Lansa has said SLPP architect and national organiser Basil Rajapaksa would not have allowed a fuel price hike at this juncture.

Fielding questions from reporters June 14, State Minister Lansa said people are facing immense difficulties due to the COVID-19 epidemic and the increase in fuel prices couldn’t have had come at a more inconvenient time.

“For about a year and a half people have been facing job losses, pay cuts and inability to pay loans. A hike in fuel prices affects all goods and services. This is not the time for it,” said Lansa.

The government had raised prices in a bid to bolster the cash-strapped state energy firm, ending an election promise to fix oil prices. Gammanpila had said the previous day (11) that the price hike was decided by the cabinet subcommittee as the state-run Ceylon Petroleum Corporation (CPC) had 330 billion rupees of accumulated losses and over 3 billion US dollars in foreign exchange which was in short supply.

“People have gone out from the pan to the fire. They’re already suffering. Though I’m in the government, I must say we interact with people in our communities. Some in Colombo can say various things, but when we go to the village, people tell us they find it difficult to live,” Lansa said on June 14

Asked if Basil Rajapaksa was behind the move to blame Gammanpila for the price hike, the Gampaha district MP said: “Basil Rajapaksa is someone who speaks directly. If he were here, he would not have permitted an oil  price hike. What we ask the energy minister to do is to intervene and reduce prices.”

Lansa claimed Kariyawasam was under pressure to voice the frustrations coming from the party’s lower ranks.

“If Basil Rajapaksa wanted to, he would speak to the president or the prime minister,” he said.

Rajapaksa, younger brother of President Gotabaya Rajapaksa and Prime Minister Mahinda Rajapaksa, is currently on a visit to the US, where he is a citizen.

There had been simmering tensions between Kariyawasam and a faction represented by Gammanpila and Weerawansa.

Gammanipla has gone on record referring to a benign “internal struggle” to course correct the alliance and reverse some of its more problematic decisions.

In April 04, 2021, the minister said there was a conspiracy afoot to undermine President Gotabaya Rajapaksa’s administration and destroy the alliance from within.

“We know there are certain provisions in the 20th amendment to the constitution that go against the mandate. The 20th amendment wouldn’t have come out in the form that it did if the goal was to serve the mandate,” he said.

In his June 12 statement, Kariyawasam alluded to attempts to deliberately sabotage the government to make the party leadership unpopular in the eyes of the public.

Kariyawasam had previously levelled similar allegations at Industries Minister Wimal Weerawansa.

Tensions between Weerawansa and sections of the SLPP can be traced back to early February when he refused to retract a remark he had made to a Sinhala-language weekly on February 7 that President Rajapaksa must lead the SLPP.

His comment drew the ire of Kariyawasam who demanded an apology and a retraction from his colleague.

Previously, on February 2,the SLPP secretary criticised Weerawansa for going public with his party’s opposition to the now-scrapped East Container Terminal deal. His actions, Kariyawasam said, were detrimental to the unity within the ruling coalition. (Colombo/June14/2021)

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Sri Lanka sells 2028 bonds at 14.52-pct

ECONOMYNEXT – Sri Lanka sold all offered bonds in 2026 and 2028 maturities raising 220 billion rupees from an auction Monday, data from the state debt office showed.

The debt office sold 135 billion rupees of 1 June 2026 bonds to yield 15.64 percent.

Another 85 billion rupees in 01 July 2028 bonds were sold to yield 14.52 percent.

The 2028 bond is offered on tap at the weighted average yield. (Colombo/Sept25/2023)

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Sri Lanka’s stocks end down on Monday after slow day of trading

ECONOMYNEXT – Sri Lanka shares were down at close of trading on Monday.

Turnover was 550 million rupees.

The main All Share Price Index was down 0.36 percent or 40.02 points to 11,216.50, while the S&P SL20 was down 0.44 percent or 14.07 points to 3,164.52.

Trading in the Capital Goods Industry (174,037,134) drove turnover.

Commercial Bank, Expolanka Holdings, and Aitken Spence plc saw losses, while National Development Bank, John Keells Holdings and Melstacorp saw gains in the day’s trading.

The market saw a net foreign inflow of 13 million rupees, while the yearly net foreign inflow was 429 million rupees. (Colombo/Sep25/2023)

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Sri Lanka rupee closes at 324.75/324.90 to the US dollar

ECONOMYNEXT – Sri Lanka’s rupee closed at 324.75/90 to the US dollar on Monday, from Friday’s close at 324.70/325.00 dealers said.

Bond yields were up.

A bond maturing on 01.07.2025 closed up at 15.55/15.70 percent on Monday, after closing at 14.95/15.30 percent on Friday.

A bond maturing on 01.08.2026 closed up at 15.50/15.65 percent up from 14.95/15.10 percent.

A bond maturing on 15.09.2027 closed up at 14.75/15.50 percent from 14.55/15.00 percent.

A bond maturing on 01.05.2028 closed up at 14.25/14.60 from 14.00/14.30 percent.

A bond maturing on 15.05.2030 closed stable at 13.00/13.50.

A bond maturing on 01.07.2032 closed at 12.95/13.45 percent from 13.00/13.45 percent. (Colombo/Sept25/2023)

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