IMF gives mixed scorecard for SL

“Despite early signs of stabilisation, full economic recovery is not yet assured,” Breuer told journalists yesterday.

• Acknowledges Sri Lanka’s economic progress amidst challenges
• Says sustaining reform momentum critical to put economy on path towards lasting recovery
• Expresses concern over significant disparity between Govt. spending and tax collection
• Predicts revenue mobilisation gains will fall short of initial projections by 15% by year end
• Govt. is tasked to raise revenue equivalent to 12% of GDP by end-2024 
• Commends steady progress in implementing structural reforms
• Says no fixed timeline for second tranche of $ 2.9 b facility
• Notes banks will suffer from restructuring, despite financial stability maintained
• Opines people are experiencing consequences of past policies, significant tax cuts in 2019

By Charumini de Silva, Daily FT Thursday, 28 September 2023

 IMF Mission Chief Peter Breuer gestures 

during the media briefing held at the 

Central Bank yesterday 

– Pic by Pradeep Pathirana 

The International Monetary Fund (IMF) yesterday said Sri Lanka is showing ‘tentative signs of stabilisation’ but insisted concerted efforts are still required to steer the country towards a complete economic recovery.

This observation follows the conclusion of a visit by an IMF staff mission team led by Peter Breuer and Katsiaryna Svirydzenka to Colombo from 14 to 27 September to discuss economic and financial policies to support the approval of the first review of the program under the $ 2.9 billion Extended Fund Facility (EFF).

“Despite early signs of stabilisation, full economic recovery is not yet assured,” Breuer told journalists yesterday.

Noting that the people of Sri Lanka have shown remarkable resilience in the face of enormous challenges, he said the country made commendable progress in implementing difficult, but much-needed reforms.

“Growth momentum remains subdued, with real GDP in the second quarter contracting by 3.1% on a year-on-year (YoY) basis and high-frequency economic indicators continuing to provide mixed signals. Reserve accumulation has slowed in recent months. Sustaining the reform momentum is critical to put the economy on a path towards lasting recovery and stable and inclusive economic growth,” he added.

Breuer pointed out that the significant gap between Government expenditures and revenue collection remains a concern, adding that reforms in tax policies and administration are vital to bridge it.

Stating that the Government has met the program’s primary balance targets and remains committed to this important pillar of the program to support their efforts to restore debt sustainability, he said that revenue mobilisation gains are expected to fall short of initial projections by nearly 15% by year-end, in part due to economic factors.

“Tax collection is a concern. It is an important pillar of the program to sustain the essential expenditures of Government services like education, health, infrastructure and support for the poor and vulnerable with an appropriate amount of revenue. However, in Sri Lanka, there is a big gap between State revenue and expenditure. The expenditures are 19% of GDP and the revenue is 9% of GDP and that gap needs to be filled. To accomplish that objective, it is important to have the appropriate tax policies and tax administration systems in place that support this effort.

He explained the need to address missing tax revenues requires reforms to increase taxation, recognising the impact on the population’s financial burden.

“This extends beyond taxes, encompassing utility prices and inflation, which have significantly raised costs for citizens. The country is grappling with the consequences of past policies and shocks, particularly the massive tax cut in 2019 compounded by subsequent economic challenges. This culminated in a crisis last summer, necessitating the public to share in the financial responsibilities.

He emphasised that to increase revenues and signal better governance, it is important to strengthen tax administration, remove tax exemptions, and actively eliminate tax evasion.

“The objective for the Government in 2024 is to raise revenue, equivalent to 12% of GDP. So there is some way to go to get there. We are looking to the benefits of the tax reforms that were introduced last year to bear full fruit and to be supplemented with appropriate conditionals,” Breuer said.

He commended the Government’s steady progress in implementing structural reforms, including the enactment of crucial legislations like the Central Bank Act and the Anti-Corruption Act, noting that if implemented effectively, it could significantly enhance governance.

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• Commends steady progress in implementing structural reforms
• Says no fixed timeline for second tranche of $ 2.9 b facility

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It was also noted that the upcoming IMF Governance Diagnostic report is expected to further guide future reform strategies aimed at strengthening governance.

In the context of the IMF’s assessment process for the second tranche, Breuer said there is ‘no fixed timeline’.

“Two crucial conditions must be met: firstly, an agreement on policies and reforms to progress in line with program objectives, especially in light of identified shortfalls this year. Efforts are underway to address and compensate for this shortfall. Secondly, addressing the debt situation and reaching agreements with creditors is essential for sustainability. Once both conditions are satisfied, an administrative process follows, including the preparation of a performance assessment report. This report undergoes various stages before being reviewed by the Executive Board, which ultimately makes the final decision and publishes the findings for public access,” he explained.

Regarding debt sustainability, he acknowledged ongoing efforts to regain control through domestic debt restructuring and discussions with external creditors.

On the debt situation, he said the key lies in a process called ‘financing assurances’, relevant to both official and commercial creditors. “In Sri Lanka’s case, the debt is spread around quite a bit, externally and domestically. What we look for is to be able to move forward in this debt restructuring case is adequate progress in the negotiations with the creditors. That would give us confidence that this process will be concluded promptly with program objectives and deadlines,” Breuer said.

“From the IMF perspective, what matters to us is that debt targets are achieved. Remember, these are the targets concerning the debt stock on the floor. The gross financing needs the debt service on the external side and also the debt relief that is needed within the program period. The Government has chosen a particular way and the banks are not in there. While we care about the target, we also care, to some extent, how we get it to maintain financial and social stability because otherwise the problem could just become worse and then these targets do not apply anymore,” he added.

He said the financial stability is maintained, but the banks will nevertheless suffer from the restructuring through the exposure to the Government through domestic foreign exchange instruments, as well as external foreign exchange instruments.

The IMF’s mission reaffirmed its commitment to providing support during these challenging times, highlighting the dynamic nature of programs that may require adjustments to meet their objectives.

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Explainer: Why US-led Saudi-Israel normalization talks are doomed to fail?

 

PRESS TV Wednesday, 27 September 2023 By Reza Javadi

On Tuesday, two events took place simultaneously that highlighted Saudi Arabia’s misplaced foreign policy priorities, especially vis-a-vis Palestine and Israeli settler colonialism.

In the occupied West Bank city of Ramallah, Saudi Arabia's newly appointed envoy to Palestine Nayef al-Sudairi presented his credentials to Palestinian Authority President Mahmoud Abbas.

Palestinian foreign ministry had earlier welcomed the appointment of the Saudi ambassador, describing it as “a historic milestone for developing fraternal relations between the two sister countries.”

Israeli Foreign Minister Eli Cohen told Tel Aviv’s 103 FM radio station Sunday that the Saudi ambassador’s appointment comes amid “the advancement of talks between the US and the Saudis regarding Israel.”

On the same day, the Israeli tourism minister landed in Riyadh, in what was described as the first visit by a senior Israeli regime official to the Arab kingdom, to attend a World Tourism Organization event.

"I will work to create collaborations to promote tourism and Israel's foreign relations," Katz said in a statement as cited by various media outlets.

The two events, according to observers, lay bare the duplicity of some Arab states in keeping the channels of diplomacy open with the Israeli regime while claiming support for the Palestinian cause.

The farce of normalization

Speculation has been rife that the US is trying to mediate the normalization of ties between the Saudi government and Israel, even though previous normalization agreements under the Abraham Accords brokered by Washington have so far proved to be an exercise in futility.

Saudi Arabia reportedly has put specific conditions for recognizing Israel. In an interview with Fox News last week, Saudi Crown Prince Mohammad Bin Salman cited the Palestinian issue and asserted that it is very important and needs to be resolved.

However, he didn’t rule out normalization with the Tel Aviv regime, dismissing reports that the ongoing talks have been suspended. He said the two sides are coming closer every day.

Israeli Prime Minister Benjamin Netanyahu has also prioritized normalization with Saudi Arabia, but it remains uncertain how his right-wing coalition will respond to any Saudi demands.

Netanyahu told Bloomberg TV on August 7 that the Palestinian issue is “a lot less than you think” on the agenda of negotiating normalization with the Saudis and affirmed that his regime categorically rejects the idea of a viable Palestinian state.   

Addressing the UN General Assembly on Saturday, Saudi Foreign Minister Prince Faisal bin Farhan warned that regional security in West Asia hinges on a “just, comprehensive solution to the Palestinian issue” and appeared to criticize Israel for “unilateral measures that are a flagrant violation of international law”

“Security in the Middle East region requires the acceleration of… a just, comprehensive solution to the Palestinian issue; the solution must be based on resolutions in the international arena and must bring about a peace that allows [the] Palestinian people to have an independent state based on the 1967 borders with East Jerusalem as its capital,” he said.

In his speech to the UNGA, Palestinian Authority President Mahmoud Abbas warned against sidelining the Palestinian people's legitimate national rights in any potential normalization agreement.

“Those who think that peace can prevail in the Middle East without the Palestinian people enjoying their full legitimate national rights would be mistaken,” Abbas told the summit of world leaders.

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Netanyahu told Bloomberg TV on August 7 that the Palestinian issue is “a lot less than you think” on the agenda of negotiating normalization with the Saudis and affirmed that his regime categorically rejects the idea of a viable Palestinian state.   

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Normalization and conditions

Saudi Arabia's conditions for a potential normalization pact with the Israeli regime go beyond Palestine.

Riyadh is seeking several concessions from the US, including support for its nuclear program, expansion of trade (including a free trade agreement), and various commitments related to defense.  These defense commitments encompass security guarantees, access to advanced military equipment, and more efficient procurement processes.

Meanwhile, members of the US Congress are hesitant to grant significant concessions to Riyadh, adding complexity to the negotiations. In exchange for meeting Saudi conditions, the US seeks Riyadh's commitment to cease sensitive transactions with Beijing and align more closely with US interests.

The Saudis appear unwilling to downgrade their relations with China, as China has already made substantial investments in Saudi Arabia's economic infrastructure, including in telecommunications, the sale of advanced weaponry, and cooperation on drone and ballistic missile production.

Furthermore, China's Belt and Road Initiative (BRI), a Chinese-led infrastructure project connecting Asia to Europe, has bolstered its presence in Saudi Arabia, with the kingdom being a pivotal component of this project among the Persian Gulf states.

In his July 2022 Middle East tour, US President Joe Biden affirmed that the US “will not walk away and leave a vacuum to be filled by China, Russia or Iran” but this visit did not accomplish its objectives, neither in energy nor in strategy, beyond opening Saudi airspace to Israel.

Despite US efforts to counter China's influence in the region, China has strengthened its ties with Saudi Arabia through a series of agreements. During Chinese President Xi Jinping’s visit to Riyadh last year, China finalized over 40 deals with Saudi Arabia covering the climate, technology, and energy sectors.

These agreements are poised to enhance economic and investment cooperation between the two countries, aligning with Saudi Arabia's Vision 2030 and the Belt and Road Initiative.

Saudi Minister of Investment Khalid Al-Falih stated that the accords will “contribute to raising the pace of economic and investment cooperation between the two countries.”

In a recent interview with Xinhua, Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef highlighted the high complementarity between the two countries in the fields of economy and trade.

“The deep synergy between the Belt and Road Initiative and Saudi Arabia's Vision 2030 will bring advanced science, technology and ideas to the country, and boost its economic and social development,” Alkhorayef said.

“China is not only an important partner of our kingdom in the economic field but also in many other areas,” he added.

Betrayal of Palestinians

Amid reports of progress in normalization talks between Tel Aviv and Riyadh, Israeli atrocities continue in the occupied Palestinian territories, which have been quietly condemned by Riyadh.

Saudi Arabia issued a statement on Monday condemning incidents involving Jews praying on the Temple Mount, home to the al-Aqsa Mosque, the third holiest site in Islam.

“The Ministry of Foreign Affairs expresses the Kingdom of Saudi Arabia’s condemnation of the repeated provocative practices carried out by a group of extremists at al-Aqsa Mosque under the protection of the Israeli occupation forces,” the statement noted.

At the same time, they continue normalization talks with the Netanyahu regime, which have significantly increased in recent months, as confirmed by the highest officials on both sides.

Experts believe Saudi Arabia’s normalization with the apartheid regime in Tel Aviv, if it materializes, will represent another betrayal of the Palestinian cause and the Muslim world at large.

Iran’s President Ebrahim Raeisi, addressing a press conference on the sidelines of the UN General Assembly summit in New York last week, warned that any normalization deal between Saudis and Israelis would amount to a “betrayal” of the Palestinian cause.

“The initiation of a relationship between the Zionist regime and any country in the region, if it is with the aim to bring security for the Zionist regime, will certainly not do so,” the Iranian president asserted.

“We believe that a relationship between regional countries and the Zionist regime is a stab in the back of the Palestinian people and of the resistance of the Palestinians.”

Palestinians have also expressed concern and rage over the possible deal between Saudi Arabia and the Israeli regime, slamming it as a betrayal.

Failed normalizations

Before Saudi Arabia, the UAE and Bahrain formalized ties with the Tel Aviv regime in 2020 in what became known as the Abraham Accords. Sudan and Morocco also followed them. 

The normalization between the UAE and Israel is considered a failed exercise by regional experts, as the agreement has not yielded any results for the two sides.

More importantly, the accord has failed to bring any stability to the region and has had nothing more than entrenching Israeli settler colonialism.

When the UAE agreed to normalize relations with Israel in 2020 through the Abraham Accords, it faced criticism for betraying the Palestinian cause. 

The UAE defended its decision, claiming it served Palestinian interests by preventing Israel's annexation of the West Bank and preserving the two-state solution.

However, recent statements from Abu Dhabi's Ambassador in Washington, Yousef Al-Otaiba, suggest that the situation on the ground is different.

Al-Otaiba noted that Israel's actions in the West Bank are effectively annexing the territory, complicating the prospects for a two-state solution.

“It’s challenging because it’s ongoing. It’s happening subtly, which complicates the path to a two-state solution even further” Al-Otaiba said, adding that “our agreement had a specific timeframe, which is nearly over. Thus, we cannot influence decisions made beyond that period.”

Given the increasing Israeli violence against Palestinians under the current far-right regime, the UAE has condemned Israel's violations of basic Palestinian rights.

Three years into their relationship, the UAE faces significant challenges in dealing with Israel's most extreme right-wing regime ever, including the likes of Bezalel Smotrich, Itamar Ben-Gvir, and others.

A recent survey conducted by Arab Barometer, a research group affiliated with Princeton University, revealed that the majority of citizens across the Middle East/West Asia region oppose the normalization of relations between Arab states and Israel.

The extensive survey, conducted between October 2021 and July 2022, involved 26,000 participants from 11 populous MENA countries.

Participants were asked the question: “To what extent do you favor or oppose the normalization of relations between Arab states and Israel?”

In nine out of the 11 countries surveyed, fewer than one in five participants expressed support for normalization agreements with Israel, which shows how unpopular the move is.

Experts believe Saudi Arabia’s normalization, if it happens, will not only not serve the interests of any party but prove counter-productive for Riyadh and the region.

☝

China stresses need for WTO reform, high-level opening-up

 

SOURCE / ECONOMY

By GT staff reporters Published: Sep 27, 2023 

Nation’s 'dual circulation' policy doesn’t mean isolation: experts

China's top leadership has stressed efforts to actively participate in the reform of the World Trade Organization (WTO) and improve the ability to handle high-level opening-up. 

Xi Jinping, general secretary of the Communist Party of China (CPC) Central Committee, made the remarks while presiding over a group study session of the Political Bureau of the CPC Central Committee on Wednesday, Xinhua News Agency reported.

He urged efforts to fully participate in WTO reform and adjustments of international economic and trade rules, while promoting deep-level reform and high-quality development with high-level opening-up.

Historical changes have taken place in the relationship between China and the WTO, he said, noting that the country has gradually grown from a passive recipient of and an active adapter to international economic and trade rules, to an important participant in this field.

The facts have proven that China's decision to join the WTO was a perfectly right one, as the accession has not only accelerated China's own development but also benefited the rest of the world, Xi said.

He stressed the need to stick to the overall trend of economic globalization, champion free trade and true multilateralism, oppose unilateralism and protectionism, oppose politicizing, weaponizing and overstretching the concept of national security on economic and trade issues, and build an open world economy.

Experts have highlighted China's proactive engagement in WTO reform, its commitment to opening-up and contribution to multilateralism and free trade.

Dong Shaopeng, a senior research fellow at the Chongyang Institute for Financial Studies, told the Global Times on Wednesday that China's entry into the WTO has led to a boost in global trade, thanks to China's advantages in population, resources, and sophisticated industry system. 

Dong also highlighted that China's role as a world factory has helped balance global merchandise prices and ease global inflation.

Li Yong, a senior research fellow at the China Association of International Trade, told the Global Times on Wednesday that China's commitment to continuing high-quality opening-up will contribute to China's "standard-bearer" role for free trade and investment and globalization, which is facing headwinds under the complex global geopolitical situation.

As the world's largest trading nation, the second largest economy and the world's largest consumer market, China's further opening-up stands to benefit partner countries, Li said.

Since its accession to the WTO more than 20 years ago, China has become the world's largest trader for goods and a major trading partner for over 140 countries and regions, contributing an average of nearly 30 percent to the world's annual economic growth.

Experts also argued that China's development, centered on "domestic circulation," does not equate to a policy of isolationism or abandoning the international market, as hyped by some Western media.

"Dual circulation," the new development paradigm that China adopted in 2020, takes the domestic market as the mainstay while allowing domestic and foreign markets to reinforce each other.

Dong said that large economies like China, the US, and India should focus on domestic economic circulation, which is the basis for generating spillover effects to the outside world and driving global economic growth.

"China's 'dual circulation' strategy aligns with the regular trend of large economies and stigmatization against China from some Western media exposes their misunderstanding and ignorance," Dong said.

The "dual circulation" strategy will make China more proactive in its openness, effectively enhancing its resilience against risks, and is also a response to the Western "decoupling" from China, expert said.

In fact, China has been continuously exploring higher levels of openness, and the construction of pilot free trade zones (FTZs) serve as a proactive exploration.

Xi has recently delivered instructions on advancing the development of FTZs, Xinhua reported.

He called for being a pioneer to forge ahead and overcome difficulties, explore a wider field and at a deeper level, and strive to build higher-level pilot FTZs.

He said that it is essential to align domestic rules with international economic and trade rules by high standards, further promote institutional opening-up, strengthen overall planning and systematic integration of reform, and promote innovative development of the entire industrial chain.

Since the establishment of the first pilot FTZ in Shanghai in 2013, China has so far established 21 FTZs and the Hainan Free Trade Port.

In the past 10 years, 278 institutional innovations have been formulated in FTZs and then replicated nationwide, covering investment facilitation, trade liberalization, financial opening-up, among other fields, Xinhua reported.

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Who’s Gaining Ground in Ukraine? This Year, No One.

Less territory changed hands in August than in any other month of the war, according to a New York Times analysis of data from the Institute for the Study of War. While Ukraine made small gains in the south, Russia took slightly more land overall, mostly in the northeast.

Across the front line, every mile of territory has been a grinding fight, with no repeat of the rapid breakthrough that Kyiv managed in Kharkiv in September last year, when Russia’s defenses collapsed after a surprise Ukrainian counterattack.

Russia and Ukraine have faced similar challenges this year. Both sides are fighting for positions that have remained largely entrenched for months, or even years in some parts of eastern Ukraine. Seasoned troops and commanders who were killed earlier in the war have been replaced with new recruits who often lack sufficient training.

Ukraine’s counteroffensive has struggled to push forward across the wide-open fields in the south. It is facing extensive minefields and hundreds of miles of fortifications — trenches, anti-tank ditches and concrete obstacles — that Russia built last winter to slow Ukrainian vehicles and force them into positions where they could be more easily targeted.

When both sides’ gains are added up, Russia now controls nearly 200 square miles more territory in Ukraine compared with the start of the year.

Rather than seeking rapid gains, the Russian military appears to be comfortable holding the territory it already controls, according to Marina Miron, a postdoctoral researcher in war studies at King’s College London. “It’s not losing anything by not moving forward,” she said.

Russia’s forces outnumber Ukraine’s nearly three to one on the battlefield, and with a larger population to replenish its ranks, Russia could see a prolonged defense as in its interests.

“The whole strategy in Ukraine is for the Russians to let the Ukrainians run against those defenses, kill as many as possible, and destroy as much Western equipment as possible,” she added.

Russia controls about 18 percent of Ukraine — a swath of land larger than Switzerland. This includes Crimea and part of eastern Ukraine, which it has occupied since 2014.

The slowdown comes with huge risks for Ukraine. If it looks unlikely to recapture large areas of the country, Western support could wane, either through lack of political will or unwillingness to donate more weapons, especially given the yearslong wait for deliveries of replacement equipment.

“Russia is trying to wait out until the West turns its back,” said Dr. Miron.

Ukraine continues to battle through Russia’s defenses in the south. Last month it successfully recaptured the village of Robotyne, and in recent days moved armored vehicles past Russia’s main anti-tank defenses near Verbove, about eight miles to the west of Robotyne.

But the clock is ticking for Ukraine’s counteroffensive to make significant territorial gains. Heavy rains are expected next month, and muddy terrain could prevent the use of heavy vehicles, such as the newly arrived U.S. Abrams tanks and the Challenger tanks supplied by Britain. “When there is mud and you have a 75-ton Challenger, it will just sink,” said Dr. Miron.

Our Coverage of the War in Ukraine

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• The Future of Ukraine: The European Union and NATO have promised a path to membership for the country. But real partnership will hold risks and benefits.

• Photos: Photographers with The New York Times and other news organizations have been chronicling the war, capturing a slice of how soldiers and civilians have experienced it. Our photographers say some images will never leave them.

• Defying Isolation: After the invasion of Ukraine, the West tried to cut Russia off from the rest of the world. But wealthy Russians continue to rely on a network of middlemen to circumvent the restrictions.

• A Wartime Partnership: The alliance between President Biden and President Volodymyr Zelensky of Ukraine has become critical to the world order.

• Zelensky’s Rise: The Ukrainian president, once brushed off as a political lightweight, has become a household name, representing his country’s tenacity.

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Justin Trudeau Accuses India of a Killing on Canadian Soil

The Canadian leader said agents of India had assassinated a Sikh community leader in British Columbia in June. India called the accusation “absurd.”

Over the past number of weeks, Canadian security agencies have been actively pursuing credible allegations of a potential link between agents of the government of India and the killing of a Canadian citizen, Hardeep Singh Nijjar. Any involvement of a foreign government in the killing of a Canadian citizen on Canadian soil is an unacceptable violation of our sovereignty. In the strongest possible terms, I continue to urge the government of India to cooperate with Canada to get to the bottom of this matter. We’ve been clear we will not tolerate any form of foreign interference. As of today, and as a consequence, we’ve expelled a top Indian diplomat from Canada.

By Ian Austen and Vjosa Isai

Ian Austen reported from Ottawa, and Vjosa Isai from Toronto.

Sept. 18, 2023

Prime Minister Justin Trudeau of Canada said on Monday that “agents of the government of India” had carried out the assassination of a Sikh community leader in British Columbia in June, an explosive allegation that is likely to further sour relations between the two nations.

Speaking in the House of Commons, Mr. Trudeau said that he had raised India’s involvement in the shooting of the Sikh leader, Hardeep Singh Nijjar, directly with Prime Minister Narendra Modi at the Group of 20 summit meeting earlier this month “in no uncertain terms.” He said the allegation was based on intelligence gathered by the Canadian government.

“Any involvement of a foreign government in the killing of a Canadian citizen on Canadian soil is an unacceptable violation of our sovereignty,” Mr. Trudeau told lawmakers. He said Canada would pressure India to cooperate with the investigation into the killing of Mr. Nijjar, who advocated Sikh separatism.

Mélanie Joly, the foreign minister, later announced that Canada had expelled an Indian diplomat whom she described as the head of India’s intelligence agency in Canada.

India’s foreign ministry rejected the Canadian allegations on Tuesday morning as “absurd” and politically motivated, saying that Canada had long provided shelter to “Khalistani terrorists and extremists” who threaten India’s security. Khalistan is what Sikh separatists call the independent state they seek to create.

The ministry said that Mr. Modi had “completely rejected” the allegations when Mr. Trudeau presented them to him. “We urge the government of Canada to take prompt and effective legal action against all anti-India elements operating from their soil,” the ministry said in a statement.

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Canada’s Assassination Claim Against India

• A Stunning Accusation: Canada accused India of assassinating a Sikh leader in British Columbia in June, further souring relations between the two nations. “The Daily” explains the situation.
• U.S. Intelligence: American spy agencies provided information to their Canadian counterparts after the killing, but communications intercepted by Canada were more definitive in linking India to the plot.
• Biden in a Bind: The alleged assassination has left President Biden caught between U.S. allies — one of America’s oldest friends and the newer friend he has been cultivating.
• A Divided Diaspora: The allegation has revived long-simmering tensions within Canada’s Indian diaspora, pitting Hindu nationalists against supporters of the creation of an independent Sikh state.

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It later said that it had moved to expel a senior Canadian diplomat based in India.

The allegation that India’s government was involved in a political killing in Canada is likely to further corrode relations between the two countries. Earlier this month, Canada suspended negotiations on a trade deal with India that were scheduled to have been concluded this year — because of the assassination allegations, it now appears. During the G20, Mr. Modi excluded Mr. Trudeau from the list of leaders with whom he held formal bilateral meetings.

Mr. Trudeau said many Canadians of Indian origin — they make up about 4 percent of the population — had been angered by the killing and in some cases feared for their personal safety. There are about 1.4 million Canadians of Indian heritage, many of whom are Sikhs; they include Jagmeet Singh, the leader of the opposition New Democratic Party, which is keeping Mr. Trudeau’s minority government in power. Singh is a common surname and middle name in Punjab.

Mr. Nijjar, 45, was shot near a Sikh temple in Surrey, British Columbia. At a news conference in June, investigators from the Royal Canadian Mounted Police said he had been ambushed by masked men, but would not say whether the attack appeared politically motivated.

Mr. Nijjar was known for his advocacy of the creation of an independent Sikh nation, Khalistan, that would include parts of India’s Punjab state, and India had declared him a wanted terrorist.

Citing the police investigation, neither Ms. Joly nor Dominic LeBlanc, the minister of public safety, offered any details about Indian involvement in the killing. But Mr. LeBlanc said that Jody Thomas, Mr. Trudeau’s national security adviser, as well as the head of Canada’s intelligence service, had traveled over the past few weeks “to confront the Indian intelligence agencies with these allegations.”

It was unclear from the two minister’s remarks how forthcoming the Indian government has been or what cooperation, if any, it has offered.

Ms. Joly said she planned to discuss India’s actions during meetings with Canada’s allies after she travels to New York this week for the United Nations General Assembly.

The announcement came on the same day that a judge opened a public inquiry into interference by foreign governments. It was prompted by allegations that China is meddling in Canadian politics, but Mr. LeBlanc said that reviewing India’s actions are within the inquiry’s mandate. “Obviously these allegations are at a much more serious level,” he said.

Mr. Nijjar was vocal about the threats to his life, which were shared with Canada’s spy agency, the World Sikh Organization of Canada, a nonprofit, said in a statement.

“If these allegations are true, they represent an outrageous affront to Canada’s sovereignty,” said Pierre Poilievre, leader of the Conservative Party. “Our citizens must be safe from extrajudicial killings of all kinds, most of all from foreign governments.”

Mr. Singh, the New Democratic Party leader, broke with protocol to address the House of Commons in Punjabi as well English and said he had spoken with Mr. Nijjar’s son. “I could hear the pain of that loss in his voice,” Mr. Singh said. “I can only imagine how much more painful it is going to be knowing this potential connection.”

Rumors about possible retribution by India against those critical of its government have stoked fear within the Sikh expatriate community and discouraged many from returning to that country, Mr. Singh said. But Canada, he said, had been seen as “a beacon of safety.”

“That safety and security that so many Canadians feel has now been rocked,” he said.

Sikhs are a relatively small religious group, with about 25 million adherents worldwide, most of them in India.

A violent Sikh insurgency that took shape in India in the 1980s killed a number of government officials. The government responded with widespread human rights abuses, including torture and extrajudicial killings, according to human rights groups.

In 1984, Prime Minister Indira Gandhi sent the military to storm the Golden Temple in Amritsar, the holiest site in Sikhism, which had been fortified by heavily armed Sikh militants. The government said hundreds of people were killed in the clash, but others put the death toll in the thousands.

In retaliation, two of the prime minister’s Sikh body guards assassinated her, prompting riots in which thousands of Sikhs were killed.

In 1985 a bomb exploded on an Air India flight from Toronto to London, killing all 329 people on board. It remains Canada’s deadliest terrorist attack and worst mass murder.

After a prolonged investigation and trial, two Sikh separatists from British Columbia were acquitted in 2005 of murder and conspiracy in that explosion as well as a second blast that killed two baggage handlers in Japan. Many witnesses had either died — some were murdered — or apparently been intimidated out of testifying. Wiretaps by Canada’s intelligence agency had been erased before they could be used as evidence and physical evidence was destroyed in the blast.

A third Sikh man was found guilty of manslaughter for his role in making the bombs and, later, of perjury at the murder trial.

About a year ago, Ripudaman Singh Malik, one of the men acquitted in 2005, was shot to death. Two men were later arrested, but the killing rattled the Sikh community in British Columbia.

🔴Trudeau went public with India allegations because story was going to come out in the media: minister

Canada's minister of emergency preparedness says the prime minister publicly implicated India in the murder of a Canadian citizen because he learned the story was going to come out in the media.

Justin Trudeau stood in Parliament on Monday and announced: "Canadian security agencies have been actively pursuing credible allegations of a potential link between agents of the government of India and the killing of a Canadian citizen, Hardeep Singh Nijjar."

The Sikh leader was shot dead outside a Sikh temple in Surrey, B.C., on June 18. India has vehemently denied involvement in his death and called Canada's allegations "absurd."

Nijjar was a supporter of a Sikh homeland in the form of an independent Khalistani state. India branded him a terrorist and accused him of leading a militant separatist group. His supporters deny this.

Minister Harjit Sajjan, the Liberal MP for Vancouver South, says the investigation into Nijjar's death is still ongoing, but Trudeau wanted to ensure Canadians had "the accurate information" about the story before it made headlines. Here is part of Sajjan's conversation with As It Happens host Nil Köksal.

What evidence is there to support the allegations the prime minister is making?

First and foremost, there is a police investigation currently undergoing and they're independent to conduct their investigation. It would be very inappropriate for me to discuss anything about that.

Why not wait until after the RCMP has finished its investigation? Why did the prime minister come out with what he said before that?

It was important for the prime minister to make the statement that he did because some information was going to ... come out within the media.

The safety of Canadians is very important and making sure that they have the accurate information. And that's one of the reasons why the prime minister went out with this statement.

One day after explosive allegation, Trudeau says he's not trying to 'provoke' India

Questions mount about security precautions for Nijjar after India's government linked to killing

You can't share the evidence with us. But how specific [have] the prime minister and other officials ... been able to be with the Indian government? Because you've heard what they've said. They've called this all "absurd" and are rejecting it outright.

Our government officials at various agencies have spoken with their Indian counterparts on this, and the prime minister has also raised this.

And I also just want to clarify one thing based on your question. When it comes to the evidence, it's the police that hold the evidence. And they, alone, decide the next actions on this. 

Do you worry, though, that the prime minister coming out with this before that investigation is finished … has hampered any potential attempts to get the kind of co-operation you need from India in this?

I can assure you that the decision for the prime minister to go out … was done with the full consultation of the appropriate agencies involved. 

And, again, we would prefer not to have to come out, but because if there were stories that were going to be coming out, it's important for the prime minister to make it very clear what is taking place based on, you know, the amount of information that could be provided.

Making sure to give calm to Canadians is an absolute priority for us. And this is one of the reasons why the prime minister went out, is to give confidence and calm to Canadians — and just in case somebody is trying to use certain information to divide Canadians, which we have seen many times in the past.

A group of Sikh men speak informally to each other for a posed photograph.

What do you say, though, to Canadians who worry that things aren't calm and that they may not be able to be protected by police? Because, as you well know,  Hardeep Singh Nijjar was warned by CSIS. The community in British Columbia, the Sikh community, people at the heart of this story, have said they have repeatedly told your government that something like this could and would happen. So why wasn't more done to protect him?

First of all, these types of operational questions will have to be answered by the RCMP. But one thing I can tell you [is] when it comes to the work that is done, there's a lot of work that happens also behind the scenes. Some can be talked about, but most of it can't. And I can say with absolute surety that when there is credible information, a threat to someone, our intelligence agencies and our police agencies do act swiftly on this. 

And right now, because there is an ongoing investigation, we can't talk about the details of the case, obviously.

Prime Minister Justin Trudeau says India may be responsible for the killing of Hardeep Singh Nijjar, a prominent Sikh community leader in Surrey. Some of his supporters in Surrey say they hope justice will be served.

[Gurpreet Singh], an independent journalist who had interviewed Mr. Nijjar, told us last night on the program that {Mr. Nijjar] had been given a bullet-proof vest. He was allowed to use that. So were there not enough credible claims to protect him further?

I'm not going to get into details of what took place and what did not take place. But I can assure you and Canadians, when there is credible information by our intelligence agencies, they work very closely with the police agencies to make sure that the individual has the important information.

Former B.C. premier and former federal Liberal MP Ujjal Dosanjh was speaking to our colleagues at CBC News. And while he doesn't condone, he said, what has happened here and this killing, he said that your government has become, as he put it, a friend of the Khalistanis, not of India. 

So do you feel Canada is doing enough to draw a line between allowing freedom of expression in this country, but also making sure that it is not fuelling further conflict?

With absolute due respect to the former colleague, I absolutely disagree with his assertion on this. 

I'll be honest with you. My face turns blue [from] how many times we have said this. I don't know what else, sometimes, what we can do. The prime minister, myself, many other ministers, we've been very clear on our approach with this.

We absolutely will fight for the right for any Canadian to express their viewpoint peacefully. Anybody who crosses the line is absolutely unacceptable. 

We do not advocate for the break up of any other country, and especially India, and I've been very public about this in the past. 

I feel for all the Canadians who have constantly been questioned on their loyalty and who they are, and in some cases just because they bring up a certain viewpoint that they might have, and they do it in a peaceful manner, and they get labelled in a certain way.

Canada's allies aren't keen to take sides in confrontation with India over Sikh activist's death

We, as a very strong democracy, want to protect our independence, our police, our judicial system and freedom of the press and also the freedom to express their viewpoints peacefully. 

With files from CBC News. Interview produced by Morgan Passi. Q&A edited for length and clarity

Remembering LTTE ‘martyr’ Thileepan on his 36th death anniversary

 

The 26th of September has become an important day in Sri Lanka ever since the then Prime Minister Solomon West Ridgeway Dias Bandaranaike (SWRDB) was assassinated in 1959. Bandaranaike who was shot by Talduwa Somarama Thera on 25 September, succumbed to his injuries the following day. September 26th however is of particular significance to a substantial number of Sri Lankan Tamils also. For it was on this day in 1987 that a senior member of the Liberation Tigers of Tamil Eelam (LTTE) Thileepan died in Nallu after undertaking a fast unto death.

Although the Tigers have lost thousands of cadres during the many years it waged war against the Sri Lankan State, the death of Thileepan was entirely different from the deaths of other LTTE fighters. Thileepan’s demise was not due to direct violence but due to non-violent direct action. He engaged in a fast unto death protest on 15 September 1987 and died after 12 days of fasting without even drinking water. This was after the Indo-Lanka accord of 29 July 1987. The Indian army referred to as the Indian Peace Keeping Force (IPKF) was stationed in Jaffna then.

Thileepan’s fast and death has been etched into the collective memory of Tamils over the years. His death is commemorated on a wide scale every year. The period between 15 September and 26 September is marked with acts of memorialisation in many parts of Northern and Eastern Sri Lanka and also in many countries where there are substantial concentrations of Tamils.

Thileepan’s 36th death anniversary falls next week on 26 September 2023. It is against this backdrop that this column focuses on the LTTE “martyr” Thileepan in this two-part article. The first part will be about Thileepan the person and his role in the LTTE. The second will be on his death – fast and its aftermath.

Thileepan whose name was Rasiah Parthiban was born on 29 November 1964. His father Rasiah “Master” was a respected school teacher. Parthiban was the youngest of four children all boys. He lost his mother while an infant and was brought up by his father. The family hailed from Urelu a village about eight miles from Jaffna town in the Valigamam sector of the Jaffna peninsula.

Though Thileepan’s given name was Parthipan there is a mistaken impression that his real name was Amirthalingam. This is not correct. This mistake however arose due to many LTTE members themselves addressing Thileepan at times as Amirthalingam. Thus he was popularly referred to as Amirthalingam. Why was Thileepan called Amirthalingam?

This was because Thileepan was in charge of the LTTE’s political wing in Jaffna for a long time.  He was the Tiger political commissar for many years. Thus he was jocularly regarded as a “politician” and not a guerrilla by fellow Tigers. Since former Leader of the opposition and Tamil United Liberation Front (TULF) Secretary-General Appappillai Amirthalingam was the most important and well-known Tamil political figure at that time, Thileepan was also nicknamed Amirthalingam. It was a name that stuck.

Rasiah Parthipan alias Thileepan was a student at the well-known northern educational institution Jaffna Hindu College. During his school days he was the Jaffna district champion in chess and participated in all-island competitions. He sat for his G.C.E. A/L and obtained very good results that qualified him for admission to the medical faculty in 1983. Rasiah Parthiban did not enter university. Instead he entered the world of armed Tamil militancy by joining the LTTE.

Ravindran alias Pandithar

Initially he was recruited as a helper. Later he began assisting Ravindran alias Pandithar in recruitment. Thileepan did not receive any military training in North or South India. He received arms training locally in Jaffna. In those days former Jaffna LTTE commander Pandithar was in overall charge of both the military and political wings. Sathasivampillai Krishnakumar alias Kittu and Rasiah Parthiban alias Thileepan were placed second-in-command of the military and political wings respectively by Pandithar.

After Pandithar’s death in 1985 Kittu became Jaffna commander. Thileepan was placed in charge of the political section. He was given a comparatively free hand by Kittu. Soon Thileepan became a well-known figure in Jaffna. He interacted well with people and had a flair for public relations.

Promoted as LT. Colonel

LTTE supremo Prabhakaran who returned to Jaffna from India in January 1987 was greatly impressed by Thileepan’s ability and dedication. The LTTE leader promoted Thileepan as Lt. Colonel, a rank reserved only for district commanders in the LTTE hierarchy earlier.

Prabhakaran also appointed Thileepan in charge of all the LTTE political offices in the entire north-east. Thileepan’s headquarters was at Potpathy road in Kokuvil. After the first “Black Tiger” Capt. Miller’s death at Nelliaddi on 5 July 1987, the political headquarters was named “Miller Office”. A few months later, Thileepan himself like Miller was to court death voluntarily in September.

Although Thileepan was in charge of the political wing for a lengthy period of time, he was not a person who avoided actual combat. It was Kittu’s contention that there should not be a strict divide between the fighters and the political activists. Kittu felt that it would result in unwanted jealousies among the cadres and also nurture an unhealthy tradition where the fighter cadre would be “mutts” and political cadres “cowards”. Thus Thileepan actively participated in many military operations and was injured several times.

Once in Anaikottai the army stopped his motorcycle. The unarmed Thileepan lashed out at the soldiers with his bag and ran away. The soldiers fired and injured his arm. While scrambling through a fence, he lost his verti. Thileepan identified himself to an Anaaikottai resident and borrowed a “salvai” (shawl) from him and strapped it around his waist. Even as he was running away the strap on his rubber slipper gave way and he discarded it.

Thileepan got away with an injury on his arm. About a year later Thileepan held a political meeting at Anaikotai. After the meeting was over, an old woman came up to him and gave him a bag. It was the old rubber slipper with the ruptured strap carefully stitched back by the woman who had preserved it for nearly a year. Such was the esteem Thileepan had among the people then.

Thileepan also received wounds on his back in a skirmish outside the Jaffna fort. He was injured a third time in an operation in Thondamanaru. He received serious injuries on his stomach. Later seven inches of his intestines had to be removed.

The Tiger political commissar also had a brush with death when the vehicle he was driving was fired upon by a helicopter. Although the vehicle was riddled extensively Thileepan escaped without a scratch in typical Chuck Norris fashion.

Political chief of Jaffna

During Thileepan’s tenure as political chief of Jaffna he adopted new methods with the consent and concurrence of Kittu. The Jaffna peninsula was sub-divided by Thileepan into 23 political divisions with each division headed by a political commissar. All the political commissars would meet every Sunday at different locations under Thileepan’s Chairmanship. Reviews and reports were presented and all issues would be thrashed out in detail.

Another feature adopted by Thileepan was the introduction of a system whereby the people could convey their complaints to the LTTE through complaint boxes installed in various parts of the peninsula. People with grievances could write them and toss them into the boxes. Even anonymous complaints were entertained.

The people of Jaffna availed themselves of this opportunity and submitted complaints about LTTE cadres too. Disciplinary inquiries were initiated and consequent action was taken against LTTE cadres as a result of these complaints. This was the first time that the LTTE submitted itself to a partial degree of accountability to the people at least.

The LTTE political chief also travelled extensively throughout the peninsula and staged mass meetings and group discussions. He spoke fluent Tamil in a colloquial jargon without rhetorical flourishes. He also had a sense of humour and quickly related to people.

Once at Neervely the residents held a rally in protest against the thefts in the area. They set up road blocks and prevented traffic. All the Tamil militant movements sent their representatives. While all the other groups denied involvement in the robberies, Thileepan won the people over by saying, “I am not going to lie to you because you all know who is responsible.” Neervely became an LTTE bastion after Thileepan’s speech.

enb-poster 24-09-23

LTTE publication “Kalaththil”

Thileepan also edited the LTTE publication “Kalaththil” (in the field). He also started a journal “Suthanthirap Paravaigal” (birds of freedom) for the LTTE women cadres. It was edited by the woman fighters. Thileepan was a powerful and prolific writer. He also played a prominent role in the affairs of the LTTE Radio and Television network in Jaffna.

Trouble shooting was another positive aspect of Thileepan. He was on more than one occasion the LTTE trouble shooter. Thileepan maintained good relations with the other groups. Whenever incidents of frictions arose it was Thileepan’s lot to meet with the other groups and iron out differences. This was in the earlier days when the top movements were near equal in strength. Later when the Tigers became more powerful all differences were resolved through the barrel of a gun.

Thileepan also participated in important political discussions. He was a key member of LTTE delegations led by Kittu participating in talks with different people such as SLMP leader Vijaya Kumaratunga, Yatiyantota UNP Parliamentarian Vincent Perera, Lt. Col. Jayantha Kotelawela and members of the Buddhist clergy.

When LTTE supremo Prabhakaran was taken by helicopter to India for talks with the then Indian Prime Minister Rajiv Gandhi prior to the Indo-Lanka accord, Thileepan also accompanied the Tiger leader. Later Prabhakaran and others including Thileepan went by an Indian Air Force plane from Madras to New Delhi.

Thileepan under the guidance of Kittu was also responsible for setting up a political party for the LTTE named People’s Front of Tamil Eelam. This was in 1986. Twisted information passed by LTTE stalwart “Basheer Kaka” along with unfair criticism levelled by Anton Balasingham led Prabhakaran to view the exercise with suspicion. Kittu was ordered to abandon the project and Thileepan was summoned to Madras for questioning.

Thileepan could not go to Madras then as ordered because he fell ill and was later injured in combat. In 1989 the same People’s Front political project planned by Thileepan in 1986 was formally adopted by Prabhakaran after talks with the Government headed by President Ranasinghe Premadasa. The LTTE registered a political party named “People’s Front of Tamil Eelam” (PFLT) with Mahendrarajah alias “Mahathaya” as President and Narendran alias Yogi as Secretary.

“Reverse gear” motor cycle

Despite his remarkable political acumen, Thileepan was incredibly naive in mundane matters. He was the target of many a leg-pull. One story is about how Thileepan was told that another Tiger Ravi’s motorcycle had been equipped with “reverse gear”. Little realising it was a joke, Thileepan had remonstrated with Kittu that his motorcycle too should have the same.

Incidentally Thileepan’s motorcycle was perhaps the worst maintained within the LTTE. Kittu who was a stickler for proper vehicle maintenance tolerated laxity in this regard only from Thileepan.

The Indo-Lanka accord and subsequent events greatly troubled Thileepan. He felt that the Tamils had been betrayed and that it was only a matter of time before the Indian Army cracked down on the Tigers. He felt that the Sri Lankan Tamil people should be made fully aware of the impending doom. Political activity as in the past was not possible because of the pervasive Indian presence and also other Tamil groups. So Thileepan thought of a revolutionary concept.

Non-violent action

Thileepan knew that a violent response to India was to invite disaster as the Tamil people themselves would not be in favour of it. So he decided to adopt a non-violent course of action against India. What happened next will be related in detail in the second part of this article. 

(The writer can be reached at dbsjeyaraj@yahoo.com.)

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Note: Second part of this article (N/A)

President Ranil Wickremesinghe addressed the UN General Assembly

PMD-The Island on 2023/09/22

President Ranil Wickremesinghe addressed the UN General Assembly in New York on Thursday (21)  on the theme “Rebuilding trust and reigniting solidarity” and its relevance to Sri Lanka’s recent challenges.

He mentioned how Sri Lanka faced significant social, economic and political challenges in the past year, including threats to democratic traditions but has managed to achieve a democratic transition.

He highlighted efforts made to stabilize the economy, including economic reforms and foreign assistance and said that his intention is to lead Sri Lanka towards sustainable recovery and growth, benefiting all segments of society and ensuring peace, prosperity and reconciliation.

The President also discusses the global geopolitical landscape, emphasizing the inter-connectedness of various challenges, such as climate change, debt and sustainable development. He stresses the need for international solidarity and climate finance, particularly for smaller, climate-vulnerable and debt-ridden countries.

President Wickremesinghe mentioned Sri Lanka’s commitment to climate action, including renewable energy goals, forest conservation and emissions reduction while expressing concern about the impact of climate change on food security, clean energy and livelihoods, emphasizing the urgency of mobilizing climate finance.

The President called on developed countries to fulfill their commitments, provide assistance and assume their share of responsibility, while underscoring the importance of restructuring the international financial system to address climate change and sustainable development.

Additionally, the President emphasized the need for reform in multilateral institutions like the UN, particularly the expansion of the Security Council’s composition and the importance of disarmament and the impact of global military expenditures.

Overall, the President’s speech highlighted the challenges faced both by Sri Lanka and the world, and  emphasized the importance of solidarity, climate action, disarmament and multilateral cooperation in addressing these issues.

Following is the full speech delivered by President Ranil Wickremesinghe at the 78th session of the United Nations General Assembly;

“Rebuilding trust and reigniting solidarity“ is an appropriate point of departure not only for reflecting on the challenges before the multilateral today, but also for reviewing developments in my own country, Sri Lanka, over the past year.

At this time last year, amidst multiple global crises, Sri Lanka was experiencing its most challenging period in recent times socially, economically and politically, which had a devastating impact on people’s lives.

Even our Democratic traditions were threatened by attempts to occupy our Parliament and bring it to a halt. Nevertheless, we succeeded in bringing about a democratic political transition, due to our deeply entrenched and resilient democratic traditions.

 Resorting to the re-graduation of Sri Lanka’s economy, coupled with the gift of fertilizer from the United States’ Government which led to a bumper harvest, has assisted us in ensuring stability during that period.

The reforms I have since initiated in the economic, financial, institutional and reconciliation fronts have been directed on the one hand towards rebuilding trust and confidence between the people and the government; and on the other, towards laying the foundation for economic stabilization and recovery. Sri Lankans are already witnessing the positive outcomes of these measures in their daily lives and the revival of confidence internally and externally in the progress of the country.

It is my intention to lead the country towards sustainable and stable recovery and growth which will benefit all segments of Sri Lankan society in all parts of the country, ensuring a future of peace, prosperity and reconciliation for the present and future generations of women and men. In reaching this goal, we will be accompanied by the support, trust, and solidarity of our own people and of the international community.

As we turn the corner towards the 80th anniversary of the UN and prepare for the Summit of the Future in 2024, we see the fragmented geopolitical landscape of a multi-polar world where new centers of global power have emerged.

Accompanying this systemic change, are, on one hand, great expectations of development and human progress with millions of people rising out of poverty to prosperity.

On the other hand, we see a world where former big power rivalries and geopolitical tensions have reignited in open war, overlapping with new theaters of conflict and tension on land and in the oceans. Security Alliances have expanded and recent arrangements have been formed to deal with strategic threat perceptions in old and new theaters of conflict. North-South divisions are widening with the digital divide, the financial and debt crisis and the energy transition. Contrary to the promise of 2030, today we are seeing levels of poverty and hunger not witnessed since decades.

Neutral, nonaligned countries of the global South such as Sri Lanka are once again constrained in-between new global power configurations facing those who not respect the sovereignty of our nations.

In numerous recent Declarations in the UN and beyond including at the G20 in Delhi, the BRICS in Praetoria and G7 in Hiroshima, we have agreed that our challenges are interconnected, across borders and all other divides. We must grasp the opportunity to unite in order to build an inclusive future.

It is an appropriate reflection of this current global predicament, that the theme of this year’s general debate is “Rebuilding trust and reigniting global solidarity”.

This year, in parallel with the UNGA, we have participated in three interrelated summits dealing with accelerating the SDGs, Financing for Development and Climate Ambition where we agreed that international solidarity and collective action is needed to address these simultaneously.

Cross-border financial impacts of crises such as climate change and the pandemic are impeding the ability of smaller indebted countries such as mine, to make progress on SDG’s and climate adaptation and mitigation. Conflicts and tensions among big powers are complicating the policy environment for the rest by adding uncertainty to economic and macro-financial stability, disrupting supply chains and causing inflation as well as food and energy insecurity.

Long before the SDGs, Sri Lanka had achieved high human and social development indicators which ranked us in a category well above other middle-income countries. Neither has Sri Lanka shirked its responsibility to the planet. Last year at COP27 we outlined our Climate Ambition Plan. We said that by 2030 we will have 70% renewable energy in electricity generation, increase forest cover by 32% and reduce greenhouse emissions by 14.5%. We will phase out coal by 2040, and reach net zero by 2050.

Our low carbon development trajectory gave us one of the lowest per capita carbon emission rates for a lower MIC country.

This year as a result of exogenous shocks and debt, the incremental progress we were proud to have reached has been reversed. Food inflation reached putting significant pressure on food security amongst vulnerable communities. At the same time children’s education and nutrition have suffered due to the pandemic and the economic crisis.

In parallel, last month in Sri Lanka we were grappling with the driest weather spell seen in recent years followed by torrential rainfalls.

Adverse climate outcomes spilling over onto our tight fiscal space just as we begin to stabilize from last year’s economic crisis. As a climate vulnerable developing country in debt crisis, the urgency to mobilize climate finance is greater today than it was ever before. However, despite promises made to which we were all witness, rich countries are not delivering to expectation.

Developed countries must do their part and fulfill what they agreed – assume their share of the common but differentiated responsibility, provide assistance for mitigation and adaptation and compensation for loss and damage.

National efforts alone will not suffice to ensure the success of the SDGs and reverse climate change. The need for global solidarity to restructure the international financial architecture is paramount. This is articulated loud and clear in multiple global fora including in G20, and the BRICS. The Secretary General’s SDG stimulus highlights the interconnections between the achievements of the SDGs, combatting climate change and the concrete interventions required by creditors sovereign and private, as well as by IFIs including to mitigate the debt crisis.

It is estimate that the 2008 financial crisis has cost the U.S. economy $4 trillion. Recent studies in the U.S. have stated that the impact of the pandemic on the U.S. economy from 2020 to 2024 would reach $14 trillion. These numbers would more than double if the rest of the global economy is added. We have not faced an economic crisis of this magnitude any time before in our modern history. The cost of World War 2 in today’s USD would amount to $4 trillion, and the Marshall Plan would be $ 150 billion.

This is the magnitude of the challenge before us. Therefore if we are unable to restructure the global fiscal order, then certainly we will fail in the struggle to reverse climate change and achieve the SDG goals.

There is still time for course correction as the crisis has not reached its peak. At the same time, the Paris Summit for a New Global Financing Pact will come up with the funding requirements.

Therefore, the Summit of the Future should not be crafting new programs, but re-structuring the present financial architecture to suit the needs of climate change and sustainable development.

This must be the priority of this General Assembly; we cannot afford to allow divisions to drive focus away from this crisis.

While key issues such as the Bridgetown Initiative and the necessity to address the debt of low-income countries are being discussed in this assembly, it is not commanding the attention it deserves. Unfortunately, the Security Council has failed to give priority to these connected issues of climate change, debt relief and sustainable development. This impacts the future of mankind. The survival of the planet must be our priority, we cannot afford to go into this war with a divided high command. The future of all species on the globe is dependent on our ability to put aside our rivalries until this crisis is solved.

Multilateral machinery which reflects the world of the past century needs to be reformed to meet the challenges of the present and the future, a machinery which has failed to find a solution to the longstanding Palestine question. The composition of the Security Council must be expanded to be representative of current global diversity and decision-making. In parallel, the role of the UNGA must be strengthened.

We are asking that the permanent members engage in a credible dialogue which will lead to a unified approach to combat these threats ahead of the next sessions.

While we seek solidarity and financing to alleviate poverty and climate challenges, global military expenditures have risen today to record levels reaching $2.24 trillion. This reflects the strategic trust deficit among the powerful, key arms control frameworks which were instrumental in maintaining system stability in the past have collapsed and nuclear conflict is once again under open discussion, potentially and apocalyptically triggered by autonomous control. We urge restraint in the increase of military expenditure which leads to escalation of conflict.

Developing countries have been the voice of sanity and reason in this regard for decades. In keeping with Sri Lanka’s longstanding position supportive of disarmament of WMD and nuclear weapons, this year Sri Lanka ratified the Comprehensive Test Ban Treaty. Yesterday, we acceded to the Treaty on the Prohibition of Nuclear Weapons.

The war in Ukraine has far-reaching and severe financial and humanitarian repercussions on food, hunger and debt in all parts of the world including Sri Lanka. It is recalled that the UN Charter vests on powerful states in the Security Council the responsibility to maintain international peace and security and to deescalate rather than ignite conflict.

We need to halt the momentum where this and other big power tensions are spilling over into established areas of international rules-based cooperation forged over decades of multilateral negotiation, ranging from international trade to ocean governance.

This international system is today undergoing vast changes. At the same time, it is being confronted with unprecedented challenges. We come to the United Nations to demonstrate solidarity in arriving at common solutions. What is at stake is not the future of the United Nations, but of our planet as a whole. Member States will need to find new ways of working together despite the increasing mistrust that has permeated international relations.

We who have not been able to find a solution to the Palestinian question must now be able at least to find a solution to the questions which threaten the existence of the present global community.

This can be achieved through the willingness of the permanent members to work together in solidarity with the developing world. They must show the way”

President Wickremesinghe also extended his sincere condolences to the victims and families of the natural disasters that hit Morocco and Libya in recent days and pledged solidarity with Moroccan and Libyan friends during this difficult time.

(PMD)