Wednesday, 26 March 2008

Warning: Eastern Province will become as Western Province-ENB

Warning: Eastern Province-The region could become as the Western Province!

Batticaloa Elections: Rejecting CFA, ISGA and P-TOMS
Wed, 2008-03-26 02:31
Dr Susantha Goonatilake
The Batticaloa District Local Government elections were a strong indicator that after nearly 35 years of the ethnic war, life was returning to normalcy to an area that
had missed it. Given the right circumstances, the Batticaloa District and the Eastern Province in general should now progress rapidly. The region could become as the
Western Province
- having both high growth rates and multiculturalism.
Fifty six per cent of the voters had cast their ballots for the nine local bodies. This figure is somewhat lower than the usual higher rates for Sri Lanka. But compared to
the United States where only 64% voted in its 2004 presidential election, and 60% in its 2000 election, this was good especially for an area traumatized for decades
by the LTTE. The Election Commissioner and many others declared that there were no serious violations. There was also no significant rigging or post election
violence.
The LTTE was however a hidden non-actor. The anti-LTTE armed Karuna groups' proxy TMVP had come to an agreement with the UPFA. The Karuna group had
had at least an informal relationship with the UPFA government in the successful campaign which militarily defeated the LTTE. The UNP, absent in this election, had
in contrast earlier signed a CFA with the LTTE giving them near sovereign rights. The other absent group in the election, the TNA had a much closer link with the
LTTE. It had come to Parliament because other groups had been silenced by the LTTE. The SLMC on its part had once signed a separate agreement with
Prabahakaran.
The TMVP got 72 seats in this election from a total of 101 and received 60% of the votes. Coming a distant second was the SLMC with a total of seven seats. In
1994 SLMC had got six seats.
In the 1994 local government elections the UNP had got 16 seats, while the Tamil Independent Group got 79. In the 2005 Presidential Elections the Eastern Province
had voted overwhelmingly for Ranil Wickremasinghe with 118,000 votes compared to 24,000 votes cast for Mahinda Rajapakse. In refusing to contest, the UNP
had made a major mistake. This disastrous decision was later regretted by S.B. Dissanayake. The UNP was now back tracking on the boycott as it prepares itself
for the Provincial Council elections
The composition of the newly elected Batticaloa Council is instructive. The incoming Mayor of Batticaloa Prabhakaran Sivageetha, who was heard speaking Sinhala
on TV, was the daughter of a politician assassinated by the LTTE. Another elected member is the son of another TNA supporter killed by the LTTE. Another was a
brother of a person assassinated by the EPRLF in 1988. All, victims of separatism’s fall out.
A Vote for Multicultural Development?
The Mayor Designate Sivageetha in an interview with the /Sunday Times /did not speak of ethnic politics in the way for example the SLMC did during the time of
Chandrika when it was part of her government. She spoke only of development. She admitted freely that she had already been in touch with key personalities and
departments of the government. In just a few days, she had obtained development proposals from 11 departments. The fish in the Batticaloa lagoon could perhaps
sing again.
The primary reason for the relative lack of development in the Eastern Province and the Northern Province was because the LTTE prevented the development
providers from the government to operate freely. There was no ingrained animosity to the area from ordinary people as was so vividly seen in the aftermath of the
tsunami on the Eastern coast. The very Buddhist temples that had been attacked by the LTTE rushed in immediately after the tsunami with their help. And soon after,
lorry loads of goods and well-wishers from the South poured in, while thousands of volunteers sponsored by the JVP camped out in the area for a few months.
The years of war have seen major demographic shifts in the Eastern Province including a drop in the population. What is now urgently required is a proper census
under strict government supervision. The Eastern Province has seen ethnic enclaves of Tamils and Muslims building up over the years along the coast suspicious of,
and sandwiched between, each other. The Sinhalese who once for example had many shops in some of the Eastern towns like Akkaraipattu had been squeezed out
in the process. This had also happened to some of the rice cultivators, for example along the Akkaraipattu road towards Ampara where I was told the original
Sinhalese allottees of the Gal Oya scheme had gone, illegally selling their properties to Muslims.
The Tamils and the Muslims who fled the Eastern Province and did not go abroad live today integrated lives in the Western Province especially in its Colombo
suburbs. The same multi-ethnicity that was there a few decades before in the Eastern Province should now be restored giving incentives to those that fled to return.
This would be like the government compensating for those affected by the 1983 riots.
Most of the voting in the Batticaloa District was probably by ethnicity and religion. This election result should not be seen as a simple continuation of ethnic politics.
We must ensure that multi-ethnicity and multiculturalism prevails. Past history could be a guide.
Most of the groups trained by India and sent to Sri Lanka in its proxy war in the early 1980s such as EPRLF, PLOTE, EPDP, EROS had already given up arms.
These, partly for their very survival from the LTTE, generally support whatever government is in power. This would be similar to the Up Country areas where the
CWC joins whatever government irrespective of the governing party label in order to get benefits. The present emergence of the TMVP would continue this trend.
They would be clients of the government whatever the latter’s party composition would be. Significantly, all the newly elected members came to Colombo to have
their swearing-in ceremony in front of the country's President.
Today's situation is also a far cry from the first North-Eastern Province government drawn up by the Indians and imposed on Sri Lanka against her will under the so-
called Indian Accord. One of the ministers of that Indian puppet government and once a vocal champion of separatism is now singing an entirely different tune as a
vocal diplomat. We have gone a long way.
TMVP head Pillayan in an interview with the Daily Mirror was looking forward to "decentralization" of power at provincial level a significant departure from the
NGO/FGO and the later, UNP refrain of "devolution". But he seems to be slipping back to bad authoritarianism when he spoke of being the "sole representative of
the Eastern Province". His other comment, that he was looking forward to handing over power to the Tamil people the majority in the Eastern and Northern
Provinces was still more ominous. It was traditional homelands back again. This would be like the Sinhalese saying that they were the majority in the whole country
and that total power should be handed over to the Sinhalese. No single person or single ethnic group can claim this multicultural country or any part of it. Those that
suggest are only inviting disaster for themselves. Even if a Big Brother might be putting suggestions into Pillayan’s mouth.
A Slap on ISGA, P-TOMS and NGOs
The peaceful elections owe themselves not to monitoring committees or to PAFFREL but to events that made the background for it. First was the clearing of the
Eastern Province militarily and the second was the separation of the Northern Province from the Eastern Province by the Supreme Court (through a JVP case).
Crucial was also the defeat of the conspiracy to hand over powers to an unelected LTTE through the Interim Self-Governing Authority (ISGA) and P-TOMS.
The election has given an elected real civil society, and concurrently a hearty slap on the ISGA and PTOMS. This raises questions of the future role of foreign funded
NGOs, phony civil society props who had advocated the ISGA and PTOMS. Their past record in supporting the LTTE and its dictatorial system must now be
recalled.
PAFFREL itself had supported and campaigned for both the ISGA and the PTOMS both of which would have handed over the region to the LTTE and denied the
free vote that now took place. The current elections took place not because of PAFFREL’s activities but in spite of it. PAFFREL had lived a double life closely
associated with groups that questioned Sri Lankan sovereignty.
PAFFREL is part of a heavily foreign funded interconnected nexus that included key officials in PAFFREL, the National Peace Council NPC, International Alert, and
Centre for Policy Alternatives, MIRJE and Berghof (which wanted to downsize the very army that liberated the East). These groups have consciously targeted Sri
Lankan sovereignty, often taking a pro-LTTE stand.
The National Peace Council whose secretary is PAFFREL’s Rodrigo had once participated in a march and rally of the Tigers in Geneva and spoken at the rally. The/
/rally ended "with [the LTTE] liberation song sung in chorus”. After the Indian Accord, Jehan Perera secretary of PAFFREL had threatened Sri Lanka with dire
consequences from the Indian army. He has questioned the need for sovereignty and had called for “shared sovereignty” and “two near-states”. The NPC launched
heavy propaganda for the ISGA which would have denied elections simply handing over the Eastern Province to the LTTE. It also lauded the then government in its
attempt to create P-TOMS which would have carried the separatist projectfurther. When P-TOMS was suspended by courts the NPC advocated that the UNP and SLFP together accommodate P-TOMS. And PAFFREL claiming to be a
guardian of free and fair elections had itself come out firmly for P-TOMS which would have prevented the present elections.
In March 2006, General Secretary of the Sri Lanka Muslim Media Forum Muzami publicly accused PAFFREL of being "hand in glove with the LTTE ".
PAFFREL’s Rodrigo had falsely claimed, shortly after Anton Balasingham had done so, that there were Muslim armed groups in the Eastern Province and that the
SLMC was in possession of firearms. The then IGP had denied both charges. Muzami noted that unlike the LTTE, the Muslims had "never resorted to armed struggle
in spite of genocides and ethnic cleansing carried out by the LTTE". PAFFREL was putting "the lives of innocent Muslims in jeopardy". Muzami hinted that Rodrigo's
statement could also be seen as pleasing foreign funders pointing out that PAFFREL had received US$1.4 million to monitor the last presidential elections and would
receive more millions to monitor Local Government elections.
The LTTE may have been defeated militarily but those who campaigned for some of its undemocratic ends through well funded propaganda should not be allowed
again to muddy the waters. All NGO money should now be channeled only through the newly elected members, real civil society.
- Asian Tribune -
TMVP sticks to its guns on CM post
By Wilson GnanadassThe Tamil Makkal Vidudalai Puligal (TMVP) that swept through eight of the nine local bodies in the March 10, local polls in Batticaloa, will not enter into any pact
with the government to contest the forthcoming provincial polls, unless the government nominated a TMVP candidate, for the post of Chief Minister.
This decision was taken by the party’s politburo last week, in Batticaloa, and the decision is to be conveyed to the government shortly. Thus, the TMVP is awaiting a
quick response, from the government.
A decision was also made to withdraw support to the government, if the government failed to recognise this demand.
The party’s contention is that, the party has now mustered the support of the majority in the East, and thus they should be recognised as a separate entity.
Party spokesman Azad Mowlana told The Bottom Line that having secured so many number of local bodies in Batticaloa, and subsequently, becoming another major
force, throwing a challenge to even some of the long standing political parties, it was too difficult to contest the election under another party, and also not being
recognised to hold the office of the Chief Minister.
According to Mowlana the party politburo is working hard, to find out,what is best for the party, given the present ground situation.
Mowlana said, if the government failed to give the party, to run for the Chief Minister’s post, then the party would contest the election independently, under its own
symbol.
“These are the decisions that are being taken by our politburo. We are trying to give due recognition to our own party, and at the same time, through this exercise,
give the people, who are with us, a better deal,” he said.
The Bottom Line, is of the view that, the government, has failed to woo the Sri Lanka Muslim Congress (SLMC), after the Congress in no uncertain terms informed
the government, that it would not join hands with the ruling party, to contest the election.
The government thereafter informed, the minority parties contesting the elections in the East, that the party candidate, who gets the highest number of votes would be
appointed, as the Chief Minister, if there was a pact with the government.
The Bottom Line understands that, to date, no independent party has so far indicated to the government, of its desire for any possible marriage, to contest the
election.
Meanwhile Mowlana also said that, the party decision will not be changed, unless there was a change of heart, on the part of the government, led by President
Mahinda Rajapakse.
===========
Property market staggered by state of economy
There has been a general slowdown of the number of apartment buildings coming up in the city By Nirmala Kannangara, Ranjith Jayasundera and Arthur Wamanan
The latest sector to be hit by the country’s swelling economic crisis is the Colombo real estate market, which has been plagued by a cocktail of negative
developments.
After an unprecedented 176 companies were forced to close in 2007 (the highest ever in this decade) redundant corporate offices now up for sale have flooded the
market, and buyers are scarce.
Out of the many mushrooming apartment complexes in Colombo, only the super-luxury category are seeing high sales, with development of complexes targeted at the
middle classes slowing due to the reduced purchasing power of buyers and rising interest rates for housing loans.
Estate agents speaking to The Morning Leader detailed the drop they have experienced in sales recently, and provided insights into the reason for the lack of
buoyancy in the real estate market. In recent years, most apartment complexes for middle income buyers mushroomed around the Bambalapitiya and Wellawatte
areas according to an agent who dealt with initial sales of apartment units in these buildings.
The agent told this newspaper that most of the apartments were bought by Sri Lankans who have migrated abroad, to provide homes in the city for their parents. As
most of these buyers were of Tamil origin, the deteriorating security situation and resulting persecution of ordinary Tamil citizens in areas such as Wellawatte led to a
dramatic decrease in sales in these areas, said the agent.
Arresting of Tamil people
"They are scared for their parents. Because they live abroad, with the white van abductions, and all of the searching and arresting of Tamil people, most are not happy
to risk their parents living alone in Colombo.
"Local residents too have been hesitant to invest in property, for fear that their savings had best be held back for a rainy day, and possible migration. This is not just
about the security situation. Even before, we had to deal with bombs going off all over, and strict laws. Now the fear of what will happen to the economy and the
falling value of the rupee seem to be affecting people. A huge number of people who were in the process of finalising purchases backed down towards the end of last
year," the agent said.
Some are also waiting for a situation similar to what has taken place in the US, hoping that property prices will plummet with a lack of buyers.
Apartment complexes depend on sales to finance their construction. When a potential owner buys an apartment, he usually pays an initial down payment before the
construction begins. The rest of the money is paid in stages whilst the construction of the building goes on. With sufficient sales, developers can avoid costly bank
loans, and complete an apartment complex with minimum investment.
Ground to a halt
However in the current situation where sales have all but ground to a halt, developers are stuck to foot the bill for completing the construction of their buildings. They
are then forced to reduce prices in order to try and spur sales. "There are several apartment blocks up for sale. The prices get lower. Therefore, the people wait for
the prices to drop further," said Managing Director, Lanka Land Exchange (Pvt) Ltd., Rajendra Prasudi.
Prasudi lamented that most agencies find it more difficult to sell properties than they have in the past, and properties in categories that once "sold like hot cakes" are
now firmly on ice due to a lack of interested buyers.
Speaking on the dearth in activity of the commercial property market, Prasudi said that the agents today find it hard to sell properties, which not long ago sold like hot
cakes. He feels that the reason for the downturn is a reluctance of potential business buyers to invest on these properties on a long-term basis. "Earlier, we used to
sell at least 10% of the properties with ease. Today even that is difficult," he said.
Parents to migrate
Lanka Land Exchange has noted a similar trend in the sale of apartments. Prasudi believes that Sri Lankans living abroad have largely given up on buying flats in
apartment complexes due to the prevailing instability. Families living in foreign countries who initially planned to send money to Sri Lanka for their parents to buy a
house in Colombo, have instead largely shifted to trying to coax their parents to migrate as well, taking out temporary accommodation in Colombo until such
arrangements could be made.
Prasudi has noticed that several potential property buyers living abroad have decided not to visit Sri Lanka and are turning away from their homeland out of fear. "The
people in foreign countries also do not come to Sri Lanka due to the prevalent situation," he said.
Sharp rises in the prices of fuel and building materials have had the effect of driving the prices of apartments up far higher than most people can afford to pay.
However, Prasudi has a gut feeling that developers, despite the difficulties will continue with plans for new buildings. In the short term, values may fall, however it
would be better in the long run to finish a building now than to have to cope with potentially staggering construction prices in later years.
More optimistic
However, apartments continue to come up despite difficulties in selling them. The prices of building materials also are on the rise, which is a reason for companies to
continue building apartments. "They know that the prices will anyway go up," Prasudi said.
Some developers are more optimistic. "Although we have increased our prices due to high material costs, still there is no decrease in the purchasing rate but since late
there is a slight delay for reservations. Hope this tendency is a direct result of price hikes and also due to the present economic state," a pair of leading property
developers told The Morning Leader.
They said that despite the current price hike in the construction field, which compelled some condominium developers to increase their prices, some property
developers and real estate companies are still happy over the high demand for their houses.
The sales manager of one leading property developer in Colombo however was far less optimistic. On the basis of anonymity, she told The Morning Leader their
sales have dropped by 43% due to the present economic situation in the country. "The purchasing rate has dropped enormously and if this trend continues it would
badly impact the industry.
Super luxury apartments
"Apartment sales at high end condominiums in the heart of the commercial hub are not so affected since most of their clientele are foreigners or business travellers. It
is the developers who have targeted the upper middle class that have found it difficult to sell their apartments," she further added.
According to the developers of Crescat Residencies, Asian Hotels and Properties Limited (AHPL), now a John Keells company, their most recent project, the
Monarch Apartments atop Crescat Boulevard in Kollupitiya has been very successful. According to AHPL, all 197 apartments in the Monarch complex have been
sold out.
Speaking of the company’s next project, a twin tower to the Crescat Apartments named ‘The Emperor’ that has yet to begin construction above ground, AHPL said
it has sold 80% of its 164 apartments. These super-luxury apartments however are aimed at expatriates and the Sri Lankan upper class, the sector traditionally least
affected by local economic downturns.
One developer building a complex aimed at upper middle class buyers told The Morning Leader that out of the six storeys to be constructed, several apartments on
the first and second storeys are still up for sale, despite the higher floors being sold out. The developer, Good Hope Property Developers (GHPD) expressed
confidence that they would be able to sell their apartments in time. "We have been in this field for quite a long time and we are happy as it is not a difficult task for us
to sell the apartments as we have earned a name in the field," a GHPD manager said.
"We are a BOI project and we use the correct material which we import duty free. That is why our projects have been successful for the past few years and we give
a one year guarantee period but if any structural defects are reported we take corrective action. Up to now we are not affected due to the present situation in the
country although there is a decline in the purchasing rate reported from other developers," he added.
The general trend observed in our enquiries was that property developers gave a more positive outlook of their sales situation as they were focusing on the prospect
of selling the apartments in their particular building. However, agents dealing with many properties on a more detached level, generally painted a darker picture of a
severe drop in property sales.
Whatever the reality of the current situation one thing is certain. Unless Sri Lanka changes its trajectory where citizens of all ethnicities feel safer in the capital, and the
community at large see light at the end of the tunnel, the worst is yet to come.

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