Eelam News Bulletin: 121007

Sri Lanka Navy fires at two LTTE boats and captures two remote controlled aircrafts in Mannar Sea
Thursday, October 11, 2007, 14:45 GMT, ColomboPage News Desk, Sri Lanka.

Oct 11, Colombo: Sri Lanka Navy confronted two LTTE Tiger boats early this morning off the northwestern Mannar sea and captured two remote controlled
aircrafts they were hauling along with many other sophisticated military equipment, the Defense Ministry said.
Naval sources said the Navy fired on the two boats in the sea, off Thalaimannar, after they failed to respond to warning shots fired. The retaliatory fire form the naval
vessels have made the LTTE cadres to jump overboard. One of the boats was partially sunk and the other was captured, sources said.
Searching the vessels the Navy found two remote controlled aircrafts, one fixed wing aircraft with about 6ft wingspan and the other a miniature helicopter, about a
foot in length. Navy also found a variety of sophisticated communication equipment in the boats.
There were reports recently that the residents in the north central region have spotted two small aircrafts flying at a low altitude.

LTTE smuggles in aircraft
By Sunil Jayasiri

Sri Lankan Defence authorities are disturbed as to how two suspected LTTE boats laden with two modern remote controlled air craft had managed to slip into Sri
Lankan waters from the South Indian seas despite heightened sea patrolling by Indian authorities.
Early yesterday, the Sri Lankan Navy attacked two LTTE boats carrying a stock of military items including two remote controlled aircraft about five kilometers off
Talaimannar.
In the ensuing clash four LTTE cadres including two seniors were killed while one of the rebel boats was damaged, the Navy said.
A senior naval official told the Daily Mirror, the Navy’s Inshore Patrol Craft (IPC) detected the two suspected boats moving towards the shore from the western
seas and ordered them to stop.
As they failed to respond, the Navy opened fire on the two boats causing severe damages to one of the boats.
The navy recovered a six and a half feet long remote control aircraft, a remote control helicopter (Toy), four Communication sets, ten Global Positioning Systems,
four satellite mobile phones and 45 Communication set antenna's from the two boats.
The Indian naval guard and the Indian Navy stepped up sea patrolling along the Palk Straits to prevent LTTE activities and the smuggling of weapons. However,
following the latest incident in the Talaiamannar seas the Sri Lankan defence authorities were probing how the rebels still managed to smuggle the military items using
the Palk Straits into the Sri Lankan waters.
Meanwhile, Navy Spokesman D.K.P. Dassanayake said Sri Lanka Air Force was also called in to assist the Navy in the investigations into the recovery of two
remote control air craft.
He also said the wing span of the fixed wing type air craft was 13 feet long and could be air borne together with considerable amount of explosives. “These air craft
can be used to carry out air attacks with explosives or be used for spying,” the spokesman said.
Commander Dassanayake said two senior LTTE cadres killed in the incident were identified as ‘Mani’ and ‘Koonam’. “

U.S. says no military solution to the Sri Lanka conflict
Wednesday, October 10, 2007, 15:04 GMT, ColomboPage News Desk, Sri Lanka.

Oct 10, Colombo: The United States reiterated that despite recent military victories both the Sri Lankan government and the Liberation Tigers of Tamil Eelam must
realize there can be no military solution to Sri Lanka's conflict.
U.S. Ambassador Robert Blake expressed this view addressing the American Chamber of Commerce members in Colombo yesterday.
Ambassador Blake said that The Sri Lankan military has achieved important victories in the past year, including the defeat of the LTTE in the east, and the sinking of
many LTTE tankers used to deliver military and other supplies to the Tamil Tigers.
“Such victories and U.S. support for Sri Lanka should demonstrate to the LTTE that they cannot hope to win this conflict,” he said.
However he noted that the military victories came at a high cost of human casualties and suffering as thousands have died in last year alone.
Blake commended the intensive efforts of Professor Tissa Vitharana and his colleagues in the All-Party Representative Committee to reach a southern consensus on
power devolution that will ‘also satisfy the aspirations of the Muslim and the Tamil communities.’
While welcoming the decline in forced disappearances in Colombo and the Western Province, Ambassador Blake said that the U.S is seriously concerned about the
violations in other parts of Sri Lanka, particularly in Jaffna.
“The number of extrajudicial killings in Jaffna has risen even higher in recent months. This is disappointing given the firm control the Sri Lankan military has over the
Jaffna peninsula,” he said.
Recognizing that Sri Lanka and the U. S. have made numerous positive moves in their bilateral relationship, Blake said serious concerns remain. Reiterating U.S.
government’s steadfast support to Sri Lanka he said Sri Lanka has the capacity to achieve much more.

'LTTE can’t solve conflict militarily'
Thursday, October 11,2007 COLOMBO:

The military says it will continue to crush terrorism to convince the terrorists that the conflict cannot be resolved through military means. “The Army will crush terrorism to convince the terrorists that their problems could not be solved through terrorist acts,” Army Chief Sarath Fonseka said while addressing the 58th Army Day at the Army Headquarters Wednesday.

The Commander said that all successes starting from the Mavilaru operation up to the liberation of Silavatturai remain concrete evidence in this connection.
“In the future too the Army would continue to march forward triumphantly,” he said.
The Army chief also said that while engaging in a bout of violent activities for many years on the pretext of abiding by a ceasefire agreement almost for four years, the
terrorists have unsuccessfully tried to defeat the security forces.
“Yet the Army realizing its role and responsibilities has acted with restraint drawing commendation from all quarters in the world. I feel happy about it,” he said.
Praising the soldiers who are now serving in UN peace keeping operations in several countries, the Army commander said corruption should be stopped.
“In no manner can any corruption or wastage be tolerated. All of you should work to preserve the dignity of the whole organization,” the Commander added.
The Army chief inspected the guard of honour given by the troops.
The 58th anniversary was celebrated yesterday with the participation of senior military officials.

Missing Tamil academic found dead in Colombo
[TamilNet, Wednesday, 10 October 2007, 18:39 GMT]

A senior lecturer of the Science Faculty of Jaffna University, Ponniah Mahinan, who was reported missing since Saturday evening in Colombo was allegedly abducted
and killed. The body of the victim with scratch injuries, located Sunday, was identified by his wife on Tuesday. The lecturer from the Department of Mathematics had
come to Colombo from Jaffna to supervise paper corrections of GCE Advanced Level examinations at the end of September and was staying at a lodge on Daya
Road in Wellawatte.He was scheduled to reach Jaffna Monday and his belongings were in packed state at the lodge Saturday evening when he was reported missing.
Relatives of the academic had lodged a complaint at Wellawatte Police Saturday at 10:00 p.m. Saturday as the family lost telephone contact with the lecturer, Police
said.
On Sunday, the relatives in Colombo were asked to identify a decomposed dead body with scratch wounds at the National Hospital in Colombo.
The body, recovered from Bambalapitiya coast, was identified Tuesday evening by the lecturer's wife who came from Jaffna.
The lecturer from Kokkuvil East, Jaffna, leaves behind his wife and two daughters.

Abductions on the increase in Trincomalee
[TamilNet, Tuesday, 09 October 2007, 18:45 GMT]

Eight Tamil civilians have been abducted during the first eight days of October in Trincomalee district, according to complaints received by the Human Rights
Commission of Sri Lanka (HRCSL). 27 Tamil civilians have been abducted in the month of September compared to 12 in August, HRCSL sources said.Human rights sources in the east port city said abduction is on the increase in the district in recent months.

Four tax bills passed amidst vehement protest of Opposition
(LeN, 2007 Oct 11, 4.00 PM)

Four of five tax bills that created pandemonium in the parliament on September 06 was brought back to committee stage today (11)
and passed amidst vehement protest of the Opposition. The Speaker briskly said that all of them were passed on September 06 but later changed his mind and
announced that only one of them were passed at that moment.
While UNP said that the bills should be passed according to parliamentary traditions, the JVP said that they should be brought in new proposals.
Stating that the other day he had to act extraordinarily, the Speaker asked to assist to pass the bills.
However, the Opposition Leader Ranil Wickramasinghe said that the procedure should be legitimate and urged the Speaker to call a meeting of the party leaders.
Minister Nimal Siripala de Silva urged the Speaker to allow the bills to be passed since the government had the majority and parliamentary activities should not be
confused through terrorist activities.
A heated environment erupted amidst the protest of the Opposition as the Speaker moved the four bills to the committee stage.
While the JVP MPs walked away protesting, the UNP objected the breach of standing orders.
The Finance (Amendment) Bills, the Regional Infrastructure Development Levy (Amendment) Bill and Excise (Special Provisions) (Amendment) Bill were passed at
the committee stage and the third reading. A vote was solicited at the third reading of the Special Commodity Levy Bill and 98 voted for them while 10 TNA MPs
voted against. UNP abstained.
All four bills were passed in the parliament amidst protest of the Opposition.

Appropriation Bill challenged in Supreme Court
By Susitha R. Fernando

Nihal Sri Ameresekere, Chartered Accountant and Management Consultant, a public interest activist, filed a Petition yesterday by himself to appear in person in the
Supreme Court challenging the Appropriation Bill for the Year 2008, which was tabled in Paliament by the Prime Minister on Wednesday. Ameresekere has invoked
the jurisdiction of the Supreme Court in terms of Article 121 of the Constitution.
In his 20 page Petition to the Supreme Court Ameresekere has analysed in detail the defects of the Appropriation Bill and the violation of the several Articles of the
Constitution by the Clauses thereof, pointing out that Parliament has been vested with full control over public finances by the Constitution, Ameresekere has asserted
that such Constitutional duty of Parliament cannot be alienated or transferred or usurped, and has asked the Supreme Court for several determinations, including a
determination that Clauses of the Bill are unconstitutional and cannot be enacted by Parliament.
Ameresekere points out that the Appropriation Act for the alleged Year 2006 had estimated expenditure of Rs. 609 billion, whilst the actual expenditure for the
Financial Year 2006, as per the Government’s own Financial Statements had been Rs. 1072 billion. The exchange parity rates would be much higher in 2008 than in
2006, and the price levels also much higher. Taking these factors into account, he puts into serious question, the total expenditure of Rs. 925 billion estimated for the
Financial Year 2008.
He has further pointed out that, whilst the total revenue for the Year 2006 has been Rs. 477 billion, the interest payments had amounted Rs. 151 billion i.e. 31% and
loan repayments had amounted to Rs. 295 billion i.e. 62%, making the total debt service 93.5% of the total revenue for the Financial Year 2006 and that the total
liabilities of the Government had risen by Rs 399 billion during the Financial Year 2006 to a level of Rs. 2578 billion as at December 31, 2006, disclosing that the
increase in total liabilities has been 83.7% of the total revenue for the Financial Year 2006. The Consolidated Fund as at December 31, 2006 had stood at a deficit of
Rs. 113 billion.
Ameresekere has also sought a determination that public finance cannot be put beyond the reach, supervision, direction and control of Parliament by the Government
investing funds, wholly or partly, in limited liability companies, excluded in the definition of ‘public corporations’ in terms of Article 170 of the Constitution, and that
the investment of public funds in any such company, wholly or partly, is prohibited in terms of the Constitution.

Defence expenditure for 2008 up by 19 percent
By Kelum Bandara, Yohan Perera and Gihan de Chickera

The government presented the Appropriation Bill in Parliament yesterday ahead of the budget, projecting Rs. 166 billion in Defence expenditure for next year, which
is 19.4 percent higher than the 2007 Defence allocation of Rs. 139 billion.
Projected recurrent defence expenditure alone for next year is Rs. 139 billion, while capital expenditure is Rs. 27 billion.
Total projected government expenditure from January 1st to December 31st 2008 stands at Rs. 925 billion, which is 15 percent more than last year’s total of Rs.
804 billion.
The Ministry of Provincial Councils and Local Government has seen a ten percent increase when compared with last year. The government has allocated Rs. 114
billion for the Local Government and Provincial Councils Ministry for next year. This is the second largest allocation for a single ministry, the largest being for the
Defence Ministry.
Funds for Nation Building and Estate Infrastructure Development stand at Rs. 54 billion while Urban Development has been slashed to Rs. 8 billion.
Allocations for Health, Education, Transport and Public Administration have been increased to Rs.57 billion, Rs. 45 billion, Rs. 38 billion and Rs. 78 billion
respectively.
Agriculture will receive Rs. 32 billion, Power and Energy Rs. 31 billion and Water Supply and Drainage Rs. 28 billion. Funds for Resettlement and Disaster Relief
Services stand at Rs. 4 billion while only Rs. 800 million has been set aside for Social Welfare.
The newly created Ministries of Special Projects and Supplementary Plantation Crops Development will receive Rs. 460 million and Rs 255 million respectively.
Expenditures allocated for other key sectors are Justice Rs. 8 billion, Irrigation Rs. 6 billion, Post & Telecommunications Rs. 6 billion, Environment Rs. 3 billion,
Media Rs. 1 billion, Sports and Public Recreation Rs. 1 billion and Science and Technology Rs. 2 billion.

LBO >> Economy
Borrowed Life
Sri Lanka gross borrowings to rise by Rs85bn next year

Oct 10, 2007 (LBO) – Sri Lanka will have to borrow 740 billion rupees in 2008, to bridge the budget deficit and roll-over existing debt in 2008, a bill put before
lawmakers this week showed. Last year the government got parliamentary nod to raise 655 billion rupees but lack of cheap concessional debt has pushed up 3-month treasury yields to 18.4 percent by this month.
Since April the government printed money or borrowed heavily from the central bank driving average inflation to a 17-year high of 17.5 percent.
Critics say the cash-strapped government has also dipped into the country's international reserves.
In order to recoup lost reserves, economic analysts say the central bank then has to keep the Sri Lanka rupee down and prevent its appreciation.
Sri Lanka is now trying to raise around 500 million dollars through a sovereign bond.
Sri Lanka had been warned by the International Monetary Fund not to borrow too much as the national debt was already over 90 percent.
The government said it was hoping to spend 925 billion rupees in 2008.
The 2007 budget planned expenses of 834 billion but the government later sought permission for additional spending from parliament after several new ministries
were created for opposition lawmakers that crossed over.
Sri Lanka now has more than a 100 ministers of various ranks.
The budget which shows how the spending set out in parliament today through the 'Appropriation bill' would be funded is expected in November.
Defence spending for next year was slated at 166 billion rupees up 19.2 percent from 139 billion.
Spending on ports was put at 19.8 billion rupees up from 9.1 billion rupees, and on highways 52 billion rupees up from 44.9 billion rupees.
Pensions would cost 68 billion rupees.
Salaries and pensions have emerged as the largest expenditure item in recent years with tens of thousands hired into the public sector in an unprecedented vote-buying
exercise.
In the first five months of the year, 57 cents out of every tax-rupee collected was spent on salaries and pensions. State workers get tax-free salaries.

President’s 2008 budget doubled
By Chandani Kirinde

The 2008 budgetary allocations for the Office of the President will be doubled to more than Rs 5.75 billion -- with about Rs. 1.43 billion of this going for a new
category called ‘development activities’. The Appropriation Bill for next year gives few if any details of new “development activities”.
The money will come by way of Rs. 2.54 billion in recurrent expenditure while capital expenditure has been divided into two categories with Rs 1.77 billion for
operational activities and Rs 1.43 billion for development activities. In 2007, the total amount allocated to the Office of the President was a little more than Rs 2.07
billion and there was no category called “development activities.’
Meanwhile more than Rs. 324.8 billion from next year’s budgetary allocations, more than one fifth of the total budget, will go for ministries coming under the purview
of President Mahinda Rajapaksa. These include the Ministries of Defence, Nation Building, Finance and Planning, Plan Implementation and Religious Affairs and
Moral Upliftment. Of this amount, the ministries of Defence, Public Security, Law and Order will get over Rs 166.4 billion compared to Rs 139 billion last year. This
includes allocations for the Army, the Navy, the Air Force, the Police and Civil Security Departments.
The Finance and Planning Ministry and departments coming under it will get nearly Rs 100 billion, up from 51.48 billion last year while the Ministry of Nation Building
which includes the Samurdhi and Upcountry Peasantry Rehabilitation Departments will get nearly Rs. 55 billion.
The Religious Affairs and Moral Upliftment Ministry under which the Public Trustee Department as well as the Departments of Buddhist, Hindu, Christian and Muslim
Affairs come will get Rs 1.2 billion slightly up from the Rs 1.07 billion last year. The Ministry of Plan Implementation will get nearly Rs 182 million for 2008 up from
around Rs 164 million in 2007. The recurrent expenditure for the Office of the Prime Minister is going up from Rs 123 million in 2007 to around Rs 143 million for
2008 but capital expenditure has come down from Rs 53.4 million this year to Rs 45.3 million for 2008.
The government has also allocated separate funds for the north and east provincial councils for 2008 with more Rs. 10 billion for the Eastern PC and Rs 9.8 billion
for the Northern PC. Last year about Rs. 17.1 billion was allocated for the single North East PC.
The Government is seeking parliamentary approval to raise Rs 925 billion for next year as it has already got approval for Rs 591.3 billion for its estimated total
budgetary expenditure of Rs 1,516 billion for 2008. The Appropriation Bill be presented to Parliament on Wednesday and the Budget on November 7.

CWC MPs sworn in as ministers
Thursday, 11 October 2007

While Mr Arumugam Thndaman took his oaths as Minister of Youth Affaires, the other three were given deputy minister posts in the ministries of Socio-Economical
development, Postal Service Estate Infrastructure and National Integration.
Accordingly their Offices are,
01. Mr. S.A.R. Thondaman - Minister of YouthAffaires and Socio-Economical development.
02. Mr. S. Selvasami - Deputy Minister of Postal Service.
03. Mr.Muththu Sivalingam - Deputy Minister of Estate Infrastructure
04.Mr.S.Jegadeeswaran - Deputy Minister of National Integration

Landmark US policy shift on India
"A base of stability" in South Asia - this is how the US, apparently, wants to conceptualise India in the emerging geopolitical landscape of this region. Such a
perceptual change amounts to recasting Indo-US relations on new, ground-breaking policy parameters.
The Island lk 121007

Zoo employees attack director
By Jayantha Samarakoon & H M Dharmapala The acting director of the Dehiwala Zoo was admitted to Kalubowila hospital yesterday after he was assaulted by several workers who stormed his office.
A large group of zoo employees had stormed the office demanding
answers to certain labour issues and later assaulted the acting director following a heated argument between the employees and the administration.The acting director was immediately rushed to Kalubowila hospital and police were summoned to the scene.
The zoo was temporarily closed as a result. Sports and Public Recreation Minister Gamini Lokuge later intervened and got the zoo reopened.
Large queues were seen outside the zoo while it was closed with many people who had come from the outstations waiting to get in.
The minister later held a meeting with the employees and asked the police to arrest the wrongdoers. Three employees were taken into custody.

Recognise self-determination right: TNA
The TNA said in Parliament yesterday that the responsibility was cast upon a Government to recognize the right to internal self-determination of a people with a
distinct identity, as they have clamoured for it for a long period.
TNA leader R. Sampanthan said this right was inalienable because the concept of internal self determination had developed to such a broad extent in the world today.
While speaking during the debate on the International Covenant on Civil and Political Rights, he asked what the policy of the Sri Lankan government was regarding
the Tamils’ rights for internal self-determination, which has been clamoured for since 1956.
He said that Tamil people had supported that idea democratically and overwhelmingly for over four decades.
Referring to the clauses of the Bill, Mr. Sampanthan queried is to how High Security Zones could be established in Sampur and Mutur denying people the lands which
they had inhabited for generations.
He requested the Government to disband these zones immediately.
“In recent times, Sri Lanka seems to think that international obligations should be observed only when it suits it,” he said.
He said it has been noted how persons holding responsible positions in the Government treated some UN officials who come here.

TNA would not support the UNP to topple the government
TNA not a tool of UNP or govt says MP

By Gihan de Chickera and Kelum Bandara

The Tamil National Alliance (TNA) said in Parliament yesterday that it would consider supporting the government if it agreed to resume peace talks with the LTTE
based on the 2002 Ceasefire Agreement.
“The government wants our support. We will consider its invitation and lend our support if the government agrees to start peace talks based on the 2002 CFA,” said
TNA Batticaloa district MP T. Ariyaneththiran while speaking during the debate on approving finance regulations.
The MP also said the TNA would not support the UNP to topple the government at the forthcoming budget as it (the UNP) had rejected a federal solution to the
ethnic conflict.
“The UNP, which for several years advocated a federal solution to the ethnic conflict, has now dropped the idea. The UNP wants our support to topple the
government at the budget. We can consider this request by the UNP only if it agrees to a federal solution”, he said.
However the MP asserted that the TNA was a Party that stood by its principals and could not be used by either the government or the UNP as a political tool to
topple or prop up governments.
Note: Highlights by ENB: Source, News Agencies