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Tuesday, December 31, 2024

மோடி அரசின் எல்லை தாண்டிய அரச பயங்கரவாதம் : அம்பலமாக்கிய Washington Post

In India’s shadow war with Pakistan, a campaign of covert killings

Prime Minister Narendra Modi has cast himself as more willing to take on India’s enemies beyond its borders than any other leader since independence.

 (Illustration by Rob Dobi for The Washington Post)

Gerry Shih- New Delhi South Asia Washington Post


LAHORE, Pakistan — Shortly after 12:30 p.m. on a sweltering day last April, two masked gunmen walked into a working-class home in Lahore, identified a 48-year-old man known as Tamba and fired three shots at close range into his chest and leg, according to a Pakistani police report. The assailants then sped off on a Honda motorbike, leaving Tamba in a pool of blood on the second floor.

Tamba, whose real name was Amir Sarfaraz, had old enemies. The gangster had been accused of beating an Indian intelligence agent to death inside a Lahore prison in 2011 while both men were serving time on death row, but he was released, cleared of charges. Outraged Indian authorities suspected that Pakistan’s Inter-Services Intelligence agency, or ISI, had hired Tamba to carry out the jailhouse murder, according to a former Indian official, and now, thirteen years later, they seemed to get their revenge.

Soon after, Pakistani Interior Minister Mohsin Naqvi told reporters that there had been several recent killings that showed signs of “India’s direct involvement.” Referring to the Tamba case, he added, “The pattern is exactly the same.”

The incident appeared to be the most recent example of what Pakistani officials call a striking development in the long-running shadow war between the two South Asian rivals. Although India and Pakistan have long used militant groups to sow chaos in each other’s country, India’s intelligence agency, the Research and Analysis Wing (RAW), has since 2021 deployed a methodical assassination program to kill at least a half dozen people deep within Pakistan, according to Pakistani and Western officials.

A street vendor calls out to local tourists flocking around the Delhi gate in Lahore on March 31. (Amna Yaseen/AFP/Getty Images)

Indian Prime Minister Narendra Modi has cast himself as tougher and more willing to take on India’s enemies than any other leader since Indian independence. Since last year, India’s relations with Western governments have been rocked by allegations that RAW officials also ordered the assassination of Sikh separatists in Canada and the United States — operations that appeared to be an outgrowth of a campaign first tested and refined in Pakistan.

Repression’s long arm

The murder-for-hire operations India used to target dissidents in the West were tested and refined in Pakistan, a Washington Post investigation found. The Post is investigating a global surge in campaigns of cross-border repression. The US and other Western governments have struggled to stem this phenomenon. As a result, sanctuary for those fleeing persecution is shrinking on nearly every continent.

The Washington Post examined six cases in Pakistan through interviews with Pakistani and Indian officials, the militants’ allies and family members, and a review of police documents and other evidence collected by Pakistani investigators. They reveal the contours of an ambitious Indian assassination program with marked similarities to the operations in North America.

In Pakistan, the killings were carried out by Pakistani petty criminals or Afghan hired guns, never Indian nationals, officials said. To aid deniability, RAW officers employed businessmen in Dubai, a regional commercial hub, as intermediaries and deployed separate, siloed teams to surveil targets, execute killings and funnel payments from dozens of informal, unregulated banking networks known as hawalas set up in multiple continents, according to Pakistani investigators. But the RAW also at times used sloppy tradecraft and poorly trained contractors, mirroring what was observed by U.S. and Canadian law enforcement.

The killings in Pakistan typically targeted the alleged leaders of two United Nations-designated terrorist groups — Lashkar-e-Taiba and Jaish-e-Muhammad — which have been accused by India of attacking Indian troops or, years ago, Indian citizens. The Sikh separatists who were targeted in Canada and the United States, Hardeep Singh Nijjar and Gurpatwant Pannun, were also designated as terrorists by India, although Western officials and analysts have disputed the persuasiveness of the Indian evidence against them.

Many details of the Indian operations in Pakistan have not been previously reported. Pakistani and Indian officials spoke on the condition of anonymity to discuss sensitive intelligence activities and ongoing investigations.

Pakistan controlled Kashmir policemen investigate after the 20 detainees staged a prison break in Poonch district jail. (-/AFP/Getty Images)

The killings are a delicate subject in Pakistan because they call into question the counterintelligence capabilities of its security services — and Pakistan’s claims that it does not shelter terrorists. But some Pakistani officials now argue that as India under Modi grows into a world power, it should be exposed for carrying out extrajudicial killings with impunity.

Even before the U.S. and Canadian allegations came to light, ISI’s director general, Nadeem Anjum, in 2022 had raised serious concerns about Indian assassinations to CIA Director William J. Burns, said a former Pakistani official.

“Our concerns arose independent of the U.S. and Canadian investigations,” said a current Pakistani official. “Can India rise peacefully? Our answer is no.”

An injured paramilitary soldier is taken to hospital for treatment, during an encounter, in Khanyar area, on Nov. 2 in Srinagar, India. (Waseem Andrabi/Hindustan Times via Getty Images)

India’s Ministry of External Affairs declined to comment for this article. But in the past, Indian officials have neither confirmed nor denied their role in specific killings and maintained that assassinations are not part of Indian policy. These officials, at the same time, often point out that Pakistan and Western countries have refused to extradite terrorists despite India providing evidence of their crimes and that numerous Islamist militants in Pakistan have been killed by the United States, primarily in drone strikes.

After India passed a stringent anti-terrorism law revision in 2019, its home ministry began publishing a list of designated terrorists, which has occasionally been updated. A review by The Post found that 11 out of 58 names on the current list have been reported killed since 2021 or were targeted since then. The Post counted at least ten other men who were not on the most-wanted list but have been accused by India of militancy and died under similar circumstances: bullets fired at close range by unknown gunmen.

The Tamba case demonstrates the difficulty of penetrating the shadowy struggle between the two rival intelligence agencies with certainty. While the police report said Tamba had been killed and some Pakistani officials said so as well, several others familiar with the case reported he had survived, and one person who said he had been briefed by security officials even said that Pakistan had faked Tamba’s death to fool an RAW handler into divulging the next target on the hit list.

Since the late 1990s, when India and Pakistan both declared themselves to be nuclear weapons states, each country has pondered how to undermine the other with plausible deniability and without risking an all-out war.

In 2014, the current Indian national security adviser, Ajit Doval, said it was unrealistic to invade Pakistan but that India should use covert means to punish Pakistan for backing militant groups that attack Indian troops and civilians. “We can defend ourselves by going to the place from where the offense is coming,” Doval told a university audience. “Pakistan’s vulnerability is many, many times higher than India’s.”

People stand on the debris of the house which was razed to ground during the gunfight between militants and Indian security forces in south Kashmir on Oct. 16, 2021. (Faisal Khan/Anadolu Agency via Getty Images)

A violent history

The conflict between India and Pakistan reaches back to the bloody partition of British India in 1947, when both of the newly independent countries laid claim to Kashmir. In the ensuing decades, Pakistan backed Islamist extremists who sought to drive India out of that mountainous, Muslim-majority region, while India tried to undermine Pakistan by arming ethnic separatists in its Baluchistan and Sindh provinces.

In the late 1990s, Indian Prime Minister I.K. Gujral curbed many of India’s covert operations inside Pakistan as bilateral relations thawed. But Lashkar-e-Taiba, a militant group widely believed to be backed by Pakistani intelligence, carried out an attack in 2008 that killed 175 and wounded more than 300, and U.S. Special Forces assassinated Osama bin Laden in Pakistan in 2011. After that, senior RAW officials pushed for operations to kill high-level individuals inside Pakistan, said a former Indian official and a senior government adviser.

In 2012, V.K. Singh, an Indian Army general who led a group that conducted small-scale bombings inside Pakistan, sought to assassinate the Kashmiri militant leader Syed Salahuddin in Pakistan, a former Indian official said. (Salahuddin remains alive.) One former Pakistani official said Pakistan believed India also played a role in the 2013 shooting outside an Islamabad bakery that killed Nasiruddin Haqqani, who had been suspected of bombing the Indian embassy in Kabul.

But it wasn’t until 2021, two years after Modi had won reelection while touting his tough-on-Pakistan bona fides, that a spate of targeted killings began.

That June, a Pakistani man hired by Indian intelligence in Dubai detonated a car bomb outside the security perimeter of a Lahore compound that housed Hafiz Saeed, the Lashkar-e-Taiba leader, but the blast failed to reach Saeed, according to Pakistani and Indian officials.

After that, the operations gained pace and precision. Instead of bombs, the RAW seemed to prefer pistol-wielding gunmen. Instead of top leaders, India pursued less guarded militants.

Relatives of the passengers held on the hijacked Indian Airlines flight in Afghanistan, which took off from Kathmandu bound for New Delhi, cry and shout in protest in front of Prime Minister Atal Behari Vajpayee's residence in New Delhi in 1999. (AFP/Getty Images)

Covert killings

Eight months after the blast targeting Saeed, assassins shot Zahoor Mistry, who had murdered an Indian passenger during the hijacking of an Indian Airlines flight in 1999. Pakistani officials, citing confessions extracted from four suspects apprehended later, said the operation to kill Mistry was elaborate: A woman calling herself Tanaz Ansari, believed to be an alias for an Indian intelligence officer, recruited two Pakistanis to track Mistry, two Afghan nationals to shoot him and three people living in Southeast Asia, Africa and the Middle East to funnel at least $5,500 to Pakistan to pay those involved.

In the hours before the slaying, Ansari urged her Pakistani agent on the ground, Sheraz Ghulam Sarwar, to confirm Mistry’s identity and precise location. Sarwar bombarded Mistry with WhatsApp video calls, claiming to be a customer service agent from a ride-hailing app, according to screenshots from Mistry’s phone reviewed by The Post.

Mistry rejected several video calls and replied, “I didn’t book any ride.” Minutes after that, Ansari messaged Mistry herself.

Five days later, Ansari struck again, killing Syed Khalid Raza, a militant leader active in Kashmir in the 1990s, according to Pakistani officials. This time, they said, Ansari tapped Muhammad Ali Afridi, a Pakistani man she had first recruited in 2018 over Facebook, to track Raza’s routine for several days, purchase a pistol for two hit men and finally, bury the weapon in a riverbed after Raza was slain.

In tense WhatsApp exchanges that were obtained by Pakistani authorities after they apprehended Afridi and reviewed by The Post, Ansari agonized over whether it was risky for Afridi to approach a security guard in Raza’s building to ask about his whereabouts. But she demanded that Afridi send photos confirming Raza’s identity, saying she otherwise lacked “permission” from higher-ups to green light the operation and pay him. At one point, the two discussed another target Ansari was struggling to locate within the Defence Housing Authority neighborhood of Karachi, Pakistan.

Pakistani officials say they never ascertained Ansari’s real identity. (Neither Afridi, who is awaiting trial, nor Sarwar could be reached for comment.) But Raza’s murder, which was carried out in February 2023, seemed to foreshadow at least two operations that Western officials say were launched by Indian intelligence that spring.

Memorial posters for members of the Sikh Nation including Hardeep Singh Nijjar, who was killed at the Guru Nanak Gurdwara. (Alana Paterson for The Washington Post)

Plots in the West

Around the same time, according to details laid out in a U.S. federal indictment, a RAW officer in New Delhi named Vikash Yadav directed an assassination attempt on Pannun, a Sikh separatist living in New York. The officer instructed his agent, a businessman named Nikhil Gupta, to hire a local assassin. Like Ansari, Yadav directed from afar, seemed pressured for time and made remarks that suggested the existence of an extensive operation to eliminate a long list of targets.

But unlike in Pakistan, U.S. prosecutors said the New York plot was quickly foiled after Gupta unwittingly asked a DEA informant to introduce him to a hit man.

Canadian officials, at the same time, said they also uncovered a sprawling Indian campaign to surveil, intimidate and even kill Sikhs. While criminal elements were employed, as in Pakistan, Indian diplomats stationed in Canada were also enlisted to monitor members of the Sikh diaspora, according to Canadian officials, who cited the diplomats’ private electronic conversations and text messages. It’s unclear how those conversations were obtained.

Christopher Clary, a professor of political science at the State University of New York at Albany who has studied the alleged Indian operations, said the RAW’s record with targeted killings seemed to mirror that of Israel’s external intelligence agency, the Mossad, which successfully carried out assassinations in less-developed countries but whose agents were caught by hotel surveillance cameras while carrying out a 2010 operation to kill a Hamas leader in the modern city of Dubai.

“One read is [the RAW] had been succeeding in Pakistan for a full year before they start developing this effort in the West,” Clary said. “But the tactics, techniques and procedures that worked pretty well in Pakistan didn’t necessarily work in the West.”

Indian army soldiers patrol near the site of gun battle between suspected militants at Ishber Nishat in Srinagar. (SOPA Images/SOPA Images/LightRocket via Getty Images)

Kashmiri tensions spike

Ever since U.S. and Canadian officials discovered the alleged plots in their countries, Western officials and analysts have wondered why India would take the risk of assassinating Western citizens associated with a Sikh separatist movement that poses no immediate threat of violence.

The calculation concerning Pakistan, security analysts and Indian officials say, was different. In several cases, India targeted the Lashkar-e-Taiba and Jaish-e-Muhammad and their rebranded offshoots, which remain active in the Kashmiri insurgency.

Since 2019, Indian Army officials say at least 50 Indian soldiers have been killed by fighters from Pakistan who infiltrated the mountainous areas near Kashmir, including the Poonch River Valley. These incursions ticked up shortly after Modi infuriated Pakistan and many Kashmiris by fulfilling a long-sought promise of his Hindu nationalist movement by revoking Kashmir’s semiautonomous status and bringing it under New Delhi’s direct control.

A key financier of the attacks, said an Indian counterinsurgency official, was a Kashmiri named Mohammed Riyaz Ahmed, who fled to Pakistan in 1999 and raised funds through Islamic charities associated with Lashkar-e-Taiba. In September 2023, a young man fired a bullet into Riyaz’s head as he knelt to perform predawn prayers inside a mosque in the portion of Kashmir controlled by Pakistan, and five days later, the Resistance Front, the group allegedly funded by Riyaz, struck back.

On Telegram, the group released a video denouncing Riyaz’s assassination and celebrated their revenge attack in Anantnag, in Indian-controlled Kashmir, that killed an Indian policeman and three army officers, including a colonel.

Kashmiri protesters burn an effigy of India's Prime Minister Narendra Modi in 2023. (Sajjad Qayyum/AFP/Getty Images)

Pakistan goes public

And yet the RAW was undeterred. Four weeks later, a group of men led by a laborer named Muhammad Umair shot Shahid Latif, whom Indian officials had accused of carrying out a raid against an Indian Air Force station in 2016 that derailed a diplomatic outreach between Modi and his Pakistani counterpart, Nawaz Sharif.

This time, the RAW faced a different kind of blowback. After his arrest, Umair confessed that he had been dispatched from Dubai to personally kill Latif after his co-conspirators had become frustrated with several failed attempts, said two people with knowledge of the matter. According to them, Umair gave up the location of a Dubai safehouse, and before long, Pakistani agents in Dubai broke into the apartment, where they obtained a trove of intelligence but didn’t find its two Indian tenants: Ashok Kumar Anand Salian and Yogesh Kumar. (Umair could not be reached for comment.)

Until that point, Pakistan had rarely acknowledged the Indian operations. But at a news conference in February, Pakistani Foreign Secretary Muhammad Syrus Sajjad Qazi held up scans of passports belonging to Salian and Kumar and accused them of directing the murders of Latif and of Riyaz one month earlier. India dismissed Qazi’s claims as “false and malicious anti-India propaganda.”

Attempts by The Post to locate Salian were unsuccessful. In April, he made his only public appearance in an interview with a pro-government Indian television channel. Wearing dark sunglasses inside a spartan New Delhi apartment, Salian said he was an ordinary business owner in Dubai and employed a Pakistani worker at his cybercafe who might have done things without his knowledge. He denied any connection to the RAW.

“After Pakistan arrested him, they must have seen who was his sponsor in Dubai,” Salian said. “I feel aggrieved that my details are being highlighted and my reputation damaged.”

Salian’s alleged accomplice, Kumar, also could not be located. Anmol Gora, a dairy business owner from the village in Rajasthan state that is listed as Kumar’s birthplace, said Kumar had not been seen there in five years. Residents said he was living in Dubai, Gora said.

“People in the village say he was involved in some shady business, which is why he just disappeared,” Gora said.

Paramilitary soldiers stands guard near the site of encounter, in the Khanyar area, on Nov. 2. (Waseem Andrabi/Hindustan Times via Getty Images)

Domestic dividends

Pakistan began to publicly call out India this year after what Pakistani officials said was a series of assassinations that seemed to pay domestic dividends for the Modi government.

By late last year, many Indian pro-government television channels were running glowing programs marveling at the RAW’s extraterritorial reach and efficiency. Pakistani officials were particularly galled by Indian news reports that emerged almost immediately after some slayings. “In many cases they celebrated before even our police knew they were killed,” an official said.

A day after the Guardian published a report on assassinations in Pakistan this year, Modi — without explicitly confirming any slaying — boasted during a campaign rally of “entering [India’s enemies’] homes and killing them.” Indian Home Minister Amit Shah, who Canadian officials say was named by Indian diplomats in their private conversations as the senior government official who directed the covert efforts, was similarly blithe. “Whoever did the killings, what’s the problem?” Shah said in a television interview. “The agency will do their jobs. why should we interfere?”

Srinath Raghavan, a prominent Indian military historian and former army officer who served in Kashmir, said the Modi government has publicized special forces raids inside Pakistan and encouraged the production of Bollywood films that glamorize India’s clandestine operators.

“The whole tagline is, ‘This is the New India,’” Raghavan said. “The Modi government came in with the view that you need to strike back, and you need to signal publicly that you’re doing it. It’s aimed at telling Pakistan that we’re willing to come and hit hard, but it also has a domestic component.”

Kashmiri militants at the heart of the conflict say that Indian officials have an incentive to exaggerate their own lethality, and nor can Pakistani officials be taken at a face value. Regardless, analysts say, Indian officials have more than demonstrated their long and lethal reach to Pakistan and the Indian public.

Asad Durrani, a former director general of Pakistan’s ISI intelligence agency, said it may be in the interests of some officials in both India and Pakistan to carry on their shadow war, both to destabilize the other and to reap political dividends.

“Any state, or non-state actor, that can get away with an act would do so,” Durrani said. “Neither side is willing to pay the price of peace.”

Mohammad Zubair Khan in Lahore, Shaiq Hussain in Islamabad, Pakistan, Shams Irfan in Srinagar, India, and Anant Gupta in New Delhi contributed to this report.



Displaced Gaza newborn freezes to death

Displaced Gaza newborn freezes to death and twin fights for his life as rain floods tents

No more talks with India at fishermen-level

No more talks with India at fishermen-level

  • Minister says only official-level engagement will continue

By S. Rubatheesan

The Fisheries Ministry has decided to scrap future Indo-Lanka talks at the fishermen level on the ongoing issue of illegal mechanised bottom trawling by Indian fishermen in Sri Lanka’s Northern waters while sticking only to official-level engagement between the two countries on technical assistance and support.

“There will be no talks between fishermen groups of the two countries anymore. Those were concluded a long time ago. Talks at official levels are currently underway between respective institutions on technical assistance and support,” Fisheries, Aquatic, and Ocean Resources Minister R. Chandrasekar told reporters on Friday in Jaffna.

The minister’s response came following President Anura Kumara Dissanayake’s recent New Delhi visit, during which the illegal bottom trawling of Indian fishermen entering Sri Lankan waters was taken up.

The joint statement released after the top-level talks between the two leaders noted that “the leaders agreed on the need to continue to address these in a humanitarian manner. They underscored the need to take measures to avoid any aggressive behaviour or violence.”  During his visit, President Dissanayake also stressed the “irreparable ecological damage caused by bottom trawling, a banned practice in both countries” and urged Indian authorities to take measures to stop the practice and curb illegal, unreported, and unregulated (IUU) fishing practices.

In 2017, the bottom trawling practice was designated as a banned fishing practice, punishable under the law through an amendment introduced to the Fisheries and Aquatic Resources Act.

The sixth Joint Working Group meeting between the two countries took place on October 29. It stressed that the “highest priority should be accorded to addressing the various issues faced by fishermen in a humanitarian manner as they pertain to livelihood concerns on both sides.

Northern fishermen also repeatedly stressed that several previous fishermen-level talks ended inconclusively as Indian fishermen failed to stop engaging in bottom trawling practices as agreed in 2014, followed by a two-year grace period to switch to alternative fishing methods.

“Other than this [official-level talks], we will not be seeking any humanitarian basis assistance, either giving or securing it from them [India]. This would be our humanitarian basis,” Minister Chandrasekar said.⍐

‘Kiribath’ in jeopardy as rice shortage hits

《 By Pushpakumara Mallawaarachchi- Mirigama correspondent 31 December 2024 

With the shortage of Nadu and white raw rice varieties in the market, Sri Lankans will find it difficult to prepare traditional milk rice to welcome the dawn of New Year, a trader said.

According to Maradagahamula Rice Traders’ Association’s member S.S. Ranasinghe, there is a severe shortage of such local rice varieties in the market. White raw variety is widely used to make Kiribath, a traditional meal prepared by people on the occasions of national festivals.

Earlier, in the wake of rice shortage and allegations about leading mill owners hoarding stocks, President Anura Kumara Dissanayake directed rice traders to sell Nadu rice to consumers at a wholesale price of Rs.225 per kilo and a retail price of Rs. 230 per kilo. These two mostly consumed varieties in the country. Rice is also the staple of Sri Lanka.

The government also removed restrictions on rice imports. So far, over 75,000 tonnes of rice have been imported.

However, there are complaints about shortages of some varieties because traders refuse to sell at regulated prices.

Mr. Ranasinghe said rice trading has been politicized. He said though the current government is not responsible for the shortage, it was not taking practical steps to address the issue.

“It is natural for rice prices and interest rates to increase in November, December and January. The absence of a proper mechanism to manage the crisis resulted in the current predicament. It is difficult for us to find local varieties to prepare milk rice for the New Year,” he said.

Traders also demand the reduction of import duty on rice, which is now Rs.65 a kilo.

Association’s President B.K. Ranjith said there is a severe shortage of raw rice and Nadu rice, and other varieties are also sold above the regulated price rates.

A spokesman for the Association of Essential Items Importers and Traders Association said sufficient stocks had been imported but wholesale traders are resultant to purchase because of price controls in retail trading.

“We have imported enough stocks and stored them. Yet, wholesalers are hesitant to buy because of price controls,” he said.⍐

Vegetable prices skyrocket due to festive season

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By Naalir Jamaldeen

Vegetable prices are skyrocketing in the dedicated economic centres at several places across the country including the Dambulla Centre, accompanied by the increased demand for vegetables during this festive season, in comparison to the last.

Accordingly, the whole price of 1 kg beans had gone up from Rs 350 to Rs 400 and 1 kg green chillies from Rs 800 to Rs 900. In addition, the price of some other vegetables such as carrots, lady’s fingers and tomatoes had gone up significantly.

As per the market situation on 29 December, the price of both local and upcountry vegetables had gone up by a significant amount, the vendors at the Dambulla Dedicated Economic Centre said. 

One kilogram of pumpkin, which was sold at Rs 160, has gone up to a range from Rs 300 to Rs 400 and the price of other upcountry vegetables too are fluctuating between Rs 500 and Rs 800, the Dambulla Economic Centre officials said.

In addition, 1 kg green chillies fluctuates at a retail price of between Rs 1,400 and Rs 1,500 and 1 kg tomato at a retail price of between Rs 600 and Rs 800. The market officials pointed out that such a situation is routine after Christmas.

This situation is expected to normalise within the next few weeks in the New Year. The prices of vegetables can also be expected to drop.

Female entrepreneurs seek electricity fare relief

31 Dec 2024 | BY Sumudu Chamara TM          

The National Women’s Unity organisation urged the authorities to take immediate measures to reduce the cost of electricity, underscoring that the existing electricity fares have dealt a heavy blow to entrepreneurs.

Presenting a set of proposals to the Public Utilities Commission of Sri Lanka (PUCSL) to be taken into account in the first electricity fare revision next year (2025), the organisation stressed that fair price revisions are the right of every citizen. Presenting both national-level and provincial-level proposals, they said that electricity should be priced including only the costs of generation and distribution, while the excess profit earned through the sale of electricity should be distributed among electricity consumers, the expenses should be slashed with a low-cost generation plan, the Government should take over power plants that do not meet standards, and the programme for providing 100,000 solar panels for low-income groups which has come to a halt should be resumed.

The organisation’s President, Hashini Silva, told The Daily Morning that these proposals should be taken into account without delay as many small-scale businesses are on the brink of collapse. “The majority of those involved in domestic and small-scale entrepreneurship are women. Even those engaged in such efforts at a small-scale, which require electricity, are giving up these efforts or have reduced their efforts.” She added that high electricity fares have resulted in a negative impact on sectors such as apparel, food manufacturing, and agriculture, and that overall, these issues prevail in almost all areas of the country. 

In addition, explaining that the social, economic, and environmental factors prevailing in various provinces are not the same, she explained that the authorities should therefore go beyond merely looking into fare revisions and take decisions in a manner that takes into account these diverse factors.

Monday, December 30, 2024

Syria eyes 'strategic' ties with Ukraine

Syria's de facto leader Ahmed al-Sharaa, also known as Abu Mohammed al-Golani looks on as he meets with senior Ukrainian delegation led by Ukrainian Foreign Minister Andrii Sybiha, after the ousting of Syria's Bashar al-Assad, in Damascus, Syria, December 30, 2024. REUTERS/Khalil Ashawi

Ukraine's foreign chief pledges support for a new Syria on a trip to Damascus

DAMASCUS, Syria — Ukraine’s foreign minister met with Syria’s de facto leader Ahmad al-Sharaa in Damascus on Monday, days after Kyiv announced the delivery of a large shipment of wheat flour to the country following the ouster of Bashar Assad, Russia’s ally.



Syria is gradually shifting away from Iran and Russia and rekindling ties with Western and Gulf Arab nations that had opposed Assad’s rule, as well as Turkey, which backed opposition forces during the civil war.


President Volodymyr Zelenskyy said that Ukraine will send 500 tons of wheat flour to Syria through the U.N. World Food Program to help improve the country’s food security and economic crisis. About 90% of Syrians live in poverty, while over half don’t know where their next meal will come from, according to the U.N.


“The Ukrainian delegation held important talks with the Syrian administration, leader Ahmed Al-Sharaa and ministers. We support the Syrian people in overcoming decades of dictatorial rule and restoring stability, security, and normal life in Syria,” Zelenskyy wrote on X.


Foreign Minister Andrii Sybiha said he hopes “that a new Syria would become a country that respects international law.” He said Ukraine is ready to share its experience in gathering evidence and conducting investigations to hold war criminals accountable.


“The Russian and Assad regimes supported each other because their foundation is violence and torture,” he said.


Syria eyes 'strategic' ties with Ukraine, Kyiv vows more food aid shipments

Resurfacing ETCA in negotiations with India

Resurfacing ETCA in negotiations with India

AKD and ETCA with India: Trap or opportunity?

Daily FT Monday, 30 December 2024 


According to the 34-point agreement which President Anura Kumara Dissanayake, AKD for short, had with Prime Minister Narendra Modi or simply Modi, the two countries have agreed to promote, among others, trade and investment between them1. There are three agreements that are strikingly prominent and promising. One is that they have agreed to continue discussion on economic and technological agreement, shortened as ETCA, which is now in an abortive state. Another is the direct use of Indian Rupee or INR and Sri Lanka Rupee or LKR for transactions thereby avoiding the intermediate exchange currency, the US dollar. The third is for India to invest in sectors that will increase Sri Lanka’s export potential. All these are interrelated and should naturally form the core of any ETCA to be negotiated.

AKD’s criticism of ETCA in 2016

But this is not an easy task for AKD, given that the political force behind him, namely, Janata Vimukthi Peramuna or JVP, had taken an anti-ETCA stand in the past2. Speaking at an anti-ETCA seminar hosted by JVP in January 2016, AKD, while appreciating the beneficial impact for Sri Lanka from globalised economic relations with other countries, is reported to have objected to the proposed ETCA with India. He had pronounced at this seminar: “Our opposition depends on whether such an agreement is advantageous to the country or not.”3 He is reported to have further elaborated on this point relating to ETCA with India: “There is a political gamble here. India is trying to intervene in politics in our country. Already, there are many RAW spies in Jaffna. Before our country is made a political play-ground India wants to gobble our economy. Already India has a monopoly in the vehicle, medicine and construction sectors. Already, they are controlling our economy. Through that they manipulate politics in our country. It is this political need that jumps out of Ranil’s mouth. We would never allow this agreement to be signed,”4.

AKD should not treat ETCA as a trap but an immense opportunity for Sri Lanka to get out of the current problems in the medium to long run. In that context, the previous ETCA should be expanded further by incorporating educational affiliations by local universities with those high-ranking Indian counterparts. It will pave way for Sri Lankan universities to improve the academic standards as well as research capabilities. India is expanding its investments heavily in technology and Sri Lanka should seek to harness benefits out of those tech advancements. Hence, AKD should immediately set to business by setting up a competent negotiation team to negotiate, finalise and implement ETCA as early as possible


Pragmatic AKD’s new view of ETCA

Eight years after this public denouncement of India and its ETCA, pragmatic AKD has realised that India is indeed a friend, not a rival, and a force to be reckoned with. The political transformation of a leader in this manner considering the best interest for his people is a salutary development. But to make this agreement a reality, AKD should now field a competent team from Sri Lanka to negotiate with their Indian counterparts on an equal footing so that those so-called dangerous components will not penetrate the final version of ETCA.

Praises and brickbats over new initiative

The announcement in the joint press statement drew praises as well as brickbats for AKD immediately. Ex-President Ranil Wickremesinghe who had made two abortive attempts at upgrading Indo-Sri Lanka Free Trade Agreement or ISLFTA to a comprehensive economic partnership agreement or CEPA in 2004 and rebranding the same as an economic and technological cooperation agreement or ETCA in 2017 had praised AKD for his bold stand on a new ETCA5. Meanwhile, those who had got their political training through hard JVP ideology have been up in arms against any attempt at rescuing ETCA by AKD. 

Former student leader Wasantha Mudalige who struggled against Wickremesinghe government has told a media briefing that if ETCA is allowed, about a half a million unemployed doctors from India may invade Sri Lanka drawing on its adverse consequences6. Critics are reported to have informed a national newspaper that the proposed move will adversely affect the country’s small and medium enterprises and its services sector, implying that both these sectors are still unable to compete with more advanced Indian counterparts7. 

Taking cue from the critics, foreign minister Vijitha Herath is said to have denied that Sri Lanka has either signed or implemented an ETCA with India8. This is a ‘move for neutralising political opponents’, but it does not augur well for the country intending to enter into an important trade and investment agreement with another country. It seems that AKD’s political backers, namely, National People’s Power or NPP, is buying time.

Indo-Sri Lanka trade relations in the past

Sri Lanka and India being close neighbours, it is natural that both these nations should have a vibrant trade relation with each other. In early days, merchants from Far East visited South Indian ports to buy export goods from Sri Lanka9. But during the latter part of the first millennium, this entrepot trade shifted from south Indian ports to ports in Sri Lanka making it an important trading centre along the East-West marine route10. Sri Lankan numismatist, Osmund Bopearachchi has established through archaeological findings the presence of Sri Lankan traders in South India and Tamil traders in Sri Lanka11. 

Hence, historical evidence has revealed that, as in under trade agreements, it has been a two-way traffic and not trade from India to Sri Lanka alone or vice versa. Both the previous CEPA and ETCA had elaboratively identified these goods to be traded between the two countries under duty-free conditions. But this list may need further updating today and it is the responsibility of the ETCA negotiators from each country to make a hard negotiation of same.

Promising outcome of ISLFTA

Sri Lanka has only a four-and-a-half-decade experience of trade with India under trade agreements. The first Indo-Sri Lanka Free Trade Agreement or ISLFTA, signed in December 1998, was in effect since January 2000. This trade agreement covers only the visible merchandise goods and not services. But why should Sri Lanka go for a free trade agreement with India when the global trade has become almost free with the average global tariff rate has fallen to 2% by 2022? Several reasons. 

The global trade as a share of the world gross domestic product or GDP has increased from 20% in 2000 to 29% in 2022. But Sri Lanka’s share of exports in the world’s GDP has declined by about 38% during this period and it has remained even less than 0.1% over these years. In contrast, India’s share has increased by about 176% from 0.7% to 1.8% during this period12. 

Given this perilous state, Sri Lanka should naturally jump the bandwagon of India and seek to harness the positive outcomes that would emanate from that relationship. What this means is that though the global tariff rates have declined, Sri Lanka had not been able to benefit from it by competing independently with its competitors. Hence, the support which it can marshal from a dynamic and expanding nation like India is to be utilised fully by developing bilateral trade relations.

Sri Lanka should naturally jump the bandwagon of India and seek to harness the positive outcomes that would emanate from that relationship. What this means is that though the global tariff rates have declined, Sri Lanka had not been able to benefit from it by competing independently with its competitors. Hence, the support which it can marshal from a dynamic and expanding nation like India is to be utilised fully by developing bilateral trade relations


Trading with individuals and not countries

The purpose of trade agreements is to promote trade, both imports and exports. It will therefore enable the two agreeing nations to exchange the surplus goods, while filling shortages at zero or preferential tariff rates. This is true for ISLFTA too. But there are two objections to bilateral trade relations. One relates to the big-small country syndrome like India is big and Sri Lanka is small and, therefore the two countries cannot do trading on an equal footing. This objection is based on unfounded logic since trade takes place not with countries but with individuals or firms. If the big-small logic is valid, a small nation like Singapore can never have trade relations with a giant like USA. But Singapore does trade with USA well because the firms which do trading are guided not by the size but by the quality, price, and the mutual satisfaction.

Protection of domestic industries through a negative list

The other objection relates to the superior competitive advantage which one party may have over the other. In the case of ISLFTA, India is viewed as an economy with higher competitive advantage over those in Sri Lanka. Hence, Indian competition is feared by Sri Lankan counterparts because they, still being infants in business, cannot successfully compete with Indian products. As a result, it is feared that Indian goods will flood the market displacing Sri Lankan producers. This fear has an element of validity, but it had been successfully addressed in ISLFTA by having a list of goods which do not come within the agreement. This list, known as negative list, is longer in the case of Indian goods coming to Sri Lanka containing 1,180 goods and shorter in the case of Sri Lankan goods going to India covering only 429 goods13. This negative list does not enjoy tariff relief and, hence, should be traded under normal trading conditions. 

According to EDB, on average, about 70% of Sri Lanka’s exports to India during 2000-13 had been made under ISLFTA, while Indian products coming to Sri Lanka under the agreement had been only 17%14. Hence, the fear that ISLFTA has caused a free flow of Indian goods to Sri Lanka is not warranted. These negative lists were introduced to ISLFTA to protect domestic industries and thereby allay the fears of local producers. However, an economic analyst has found that the list has negatively contributed to the growth of the protected industries harnessing both the comparative and competitive advantages and preventing both countries to get the maximum benefit from trade liberalisation initiative15. What is suggested here is that countries should expose themselves to free trade arrangements without prohibitive strings attached to them.

India’s signing of trade agreements with all the countries

It is in this background that both India and Sri Lanka planned to graduate themselves to the next stage of economic relations by commencing negotiations for a wider trade agreement in the style of a comprehensive economic partnership in early 2000s. These negotiations produced a basic document for sanctioning by both countries by 2004. However, the change in the Government in Sri Lanka aborted that attempt. CEPA has been India’s style of developing economic relations with the rest of the world which it says is being done with all the countries in the world. So far India has signed comprehensive or enhanced trade partnership agreements with UAE, Australia, Canada, Israel, UK, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, South Africa, Botswana, Lesotho, Swaziland, Namibia, Japan, South Korea, Singapore, Malaysia, Thailand, Nepal, Bhutan, Mauritius, covering the entire world16. Sri Lanka remaining outside this net has been a loser in the trade.

There are two objections to bilateral trade relations. One relates to the big-small country syndrome like India is big and Sri Lanka is small and, therefore the two countries cannot do trading on an equal footing. This objection is based on unfounded logic since trade takes place not with countries but with individuals or firms. If the big-small logic is valid, a small nation like Singapore can never have trade relations with a giant like USA. But Singapore does trade with USA well because the firms which do trading are guided not by the size but by the quality, price, and the mutual satisfaction


Rebranding of CEPA as ETCA in 2015

The Ranil Wickremesinghe Government of 2015-9 sought to correct the situation by rebranding the previous CEPA as an economic and technological cooperation agreement or ETCA in 2015. When there was growing opposition to ETCA, I clarified the position in a five-part article series in this column17. I argued in this series that the wrong perception about ISLFTA has been misconceived since the outcome has been for the country’s benefit. The Government should place the ETCA plan before the people so that the critics can be argued out in intellectual forums and not in streets. The fear that Indian professionals in IT, Law, Medicine, and Engineering will flood Sri Lanka is not based on actual inflows but on the fear to face competition. 

The Government should break the silence on the entire ETCA affair and subject itself to review by people, a good practice under the democratic economic governance. Sri Lanka should link its products to global markets through supply chains developed with Indian counterparts. Sri Lanka will benefit by opening its services sector, especially, education, healthcare, and ICT, to Indian partners. ETCA is a way forward for Sri Lanka to harness the benefits of international trade for creating prosperity to Sri Lankans.

ETCA not a trap but an opportunity

It is this aborted ETCA which has resurfaced in the joint statement by the Indian and Sri Lankan leaders after they met in December 2024. In my view, AKD should not treat ETCA as a trap but an immense opportunity for Sri Lanka to get out of the current problems in the medium to long run. In that context, the previous ETCA should be expanded further by incorporating educational affiliations by local universities with those high-ranking Indian counterparts. It will pave way for Sri Lankan universities to improve the academic standards as well as research capabilities. India is expanding its investments heavily in technology and Sri Lanka should seek to harness benefits out of those tech advancements. Hence, AKD should immediately set to business by setting up a competent negotiation team to negotiate, finalise and implement ETCA as early as possible.

Footnotes:

1https://mfa.gov.lk/india-sri-lanka-joint-statement/ 

2https://www.jvpsrilanka.com/english/jvp-would-not-allow-ranil-to-subdue-mass-struggles-with-his-arrogance/ 

3Ibid. 

4Ibid.

5https://www.ft.lk/front-page/Ranil-praises-AKD-for-advancing-ETCA-with-India/44-770633 

6https://www.thecolombopost.org/2024/12/5-lakh-indian-doctors-to-sri-lanka-with-etca-agreement/ 

7https://www.sundaytimes.lk/241222/business-times/indo-lanka-etca-talks-revived-after-presidents-indian-visit-581107.html 

8https://srilankamirror.com/news/vijitha-clarifies-govts-stance-on-etca/ 

9De Silva, K M, 2005, A History of Sri Lanka, Vijitha Yapa, Colombo p 45.

10Siriweera, W I, 1994, A Study of the Economic History of Pre-modern Sri Lanka, Vikas, Delhi, p 133. 

11https://books.openedition.org/ifp/7871#:~:text=Tamil%20Nadu%20and%20Sri%20Lanka,a%20different%20and%20important%20context. 

12https://ourworldindata.org/grapher/share-of-global-merchandise-exports?tab=table&time=earliest..latest&country=Africa+%28UN%29~Asia+%28UN%29~Europe+%28UN%29~Northern+America+%28UN%29~Latin+America+and+the+Caribbean+%28UN%29~Developing+regions~Least+Developed+Countries+%28LDCs%29~Northern+Africa+%28UN%29~Sub-Saharan+Africa+%28UN%29~Oceania+%28UN%29~LKA~IND 

13EDB, 2014, Indo-Sri Lanka Free Trade Agreement, unpublished mimeograph, Colombo.

14Ibid. p 5.

15Perera, M S S, 2008, Impact of the Indo-Lanka Free Trade Agreement on the Sri Lankan Economy: A Computable General Equilibrium Analysis, South Asia Economic Journal, 9:1, p 1-50.

16https://pib.gov.in/Pressreleaseshare.aspx?PRID=1781867 

17They can be accessed at: https://www.ft.lk/columns/sri-lanka-faces-crucial-tests-ahead-with-growing-opposition-to-etca/4-525181 ; https://www.ft.lk/columns/etca-is-not-cepa-in-all-respects-but-it-should-be-made-public-to-allay-fears/4-526676 ; https://www.ft.lk/columns/management-of-economic-policy-3-sri-lanka-should-tap-global-unbundling-opportunities-of-services-und/4-527941 ; https://www.ft.lk/columns/padeniya-chinthana-on-etca-govt-should-fight-it-in-intellectual-forums-not-in-the-streets/4-529777 ; and https://www.ft.lk/columns/etca-or-any-other-policy-is-destined-to-fail-if-not-properly-managed/4-530899 .

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