{"id":239953,"date":"2024-11-25T04:15:05","date_gmt":"2024-11-24T22:45:05","guid":{"rendered":"https:\/\/www.colombotelegraph.com\/?p=239953"},"modified":"2024-12-07T22:16:44","modified_gmt":"2024-12-07T16:46:44","slug":"a-pragmatic-ethical-president","status":"publish","type":"post","link":"https:\/\/www.colombotelegraph.com\/index.php\/a-pragmatic-ethical-president\/","title":{"rendered":"A Pragmatic Ethical President"},"content":{"rendered":"<p class=\"p2\"><span style=\"color: #ff6600;\"><strong>By <a style=\"color: #ff6600;\" href=\"https:\/\/www.colombotelegraph.com\/?s=Sarath+de+Alwis\">Sarath de Alwis<\/a> &#8211;<\/strong><\/span><\/p>\n<div id=\"attachment_201439\" style=\"width: 160px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-201439\" class=\"size-thumbnail wp-image-201439\" src=\"https:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2019\/05\/Sarath-de-Alwis-150x150.jpg\" alt=\"\" width=\"150\" height=\"150\" srcset=\"https:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2019\/05\/Sarath-de-Alwis-150x150.jpg 150w, https:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2019\/05\/Sarath-de-Alwis-45x45.jpg 45w\" sizes=\"auto, (max-width: 150px) 100vw, 150px\" \/><p id=\"caption-attachment-201439\" class=\"wp-caption-text\">Sarath de Alwis<\/p><\/div>\n<p class=\"p3\"><em>\u201cA clean, efficient, rational and predictable government is a competitive advantage<\/em>&#8221; ~ Lee Kwan Yew (Worl Ethics and Integrity Forum April 28 2005)<\/p>\n<p class=\"p6\">President of the Republic<span style=\"color: #ff6600;\"><a style=\"color: #ff6600;\" href=\"https:\/\/www.colombotelegraph.com\/?s=Anura+Kumara+Dissanayake\"> Anura Kumara Dissanayake<\/a><\/span> spoke without notes in his first policy statement in parliament. His unhesitating delivery in punctilious order was simultaneously translated in to both English and Tamil.<\/p>\n<p class=\"p6\">I rely on the English Translation of the speech for the purpose of this brief commentary. He described it as <span class=\"s1\">a \u201cmonumental moment in the history of Sri Lanka\u2019s Parliament.\u201d <\/span><\/p>\n<p class=\"p7\"><span class=\"s2\">Indeed, it will be remembered as a watershed moment, a turning point of our politics if only he succeeds in resolving his twin dilemmas \u2013 ensuring ethical governance, adopting pragmatic economics to break free from a <span class=\"Apple-converted-space\">\u00a0<\/span>\u2018Sovereign Debt Trap.\u201d <\/span><\/p>\n<p class=\"p7\"><span class=\"s2\">He defined his mandate with precision. <\/span><\/p>\n<p class=\"p7\"><span class=\"s2\"><i>\u201cUnder our country\u2019s established electoral system, this Parliament now includes the highest number of representatives ever elected under a singular mandate. This is a numerically significant achievement. However, beyond its quantitative value lies a qualitative strength: for the first time in a long while, the public mandate has brought about a political transformation that enabled the formation of a new government. People from all<\/i> <i>provinces\u2014North, South, East, and West\u2014representing diverse communities, contributed to this mandate.\u201d <\/i><\/span><\/p>\n<p class=\"p7\"><span class=\"s2\">I watched AKD\u2019s confident compelling performance.\u00a0<\/span><\/p>\n<p class=\"p6\">He would leave no room for racism. He accepted multiparty democracy. He would build a democratic state where justice and the rule of law prevailed.<\/p>\n<p class=\"p6\">On Moral Governance he was exceptionally candid and minced no words. On matters of economics, he was cautious and to my simple aging weary mind he skated on a grotesquely huge layer of very thin ice.<\/p>\n<p class=\"p9\"><span class=\"s3\">He amplified on <\/span><span class=\"s4\">Implementing Agreements with the IMF to Stabilize the Economy. <\/span><span class=\"s4\">\u201cWhen we assumed office, the discussions on debt restructuring, which had been on-going for nearly two years, were in their final stages\u2026\u2026We are now prepared to quickly formalize agreements with individual countries accordingly.\u201d <\/span><\/p>\n<p class=\"p7\"><span class=\"s2\">This is clearly a pragmatic position and a departure from ideological exactitude. It is a recognition of political reality. <\/span><\/p>\n<p class=\"p7\"><span class=\"s2\">Given the capricious consumerism of our burgeoning urban affluent class and the not so affluent but equally motivated middleclass, rocking the neo liberal boat decidedly adrift in an ocean of unsustainable debt is plainly unthinkable. <\/span><\/p>\n<p class=\"p7\"><span class=\"s2\">Measured steps after the 42% triumph at the presidential, induced the Skeptical to flock \u2018en masse\u2019 to<span class=\"Apple-converted-space\">\u00a0 <\/span>the NPP at <span class=\"Apple-converted-space\">\u00a0 <\/span>parliamentary elections giving them 159 seats in parliament, despite the haranguing of the triumvirate of SJB\u2019s economic punditry.<span class=\"Apple-converted-space\">\u00a0 \u00a0<\/span><\/span><\/p>\n<p class=\"p7\"><span class=\"s2\">The northern voter was impressed with AKD\u2019s conciliatory charm that signaled the dismantling of a garrison state switched allegiance with surprising speed. <span class=\"Apple-converted-space\">\u00a0 \u00a0<\/span><\/span><\/p>\n<p class=\"p7\"><span class=\"s2\">The president while tracing the trajectory towards economic recovery studiously avoided, the NPP\u2019s electioneering rhetoric on a revised \u2018Debt Sustainability Analysis\u2019 to renegotiate a better deal with the IMF. <\/span><\/p>\n<p class=\"p7\"><span class=\"s2\">In the policy statement in parliament the President asserted <i>\u201cTherefore, during the presidential and general elections, we promised the people that we would manage the economy in accordance with the parameters agreed upon with the International Monetary Fund.\u201d <\/i><\/span><\/p>\n<p class=\"p7\"><span class=\"s2\">I voted for AKD, the Presidential candidate. I listened to him regularly. I wrote in praise of his candidacy. <\/span><\/p>\n<p class=\"p7\"><span class=\"s2\">Maybe I am getting old. I don\u2019t recall him making a definite, steadfast unyielding commitment that the NPP would manage the economy within parameters agreed upon by Ranil Wickremesinghe\u2019s administration and the IMF.<\/span><\/p>\n<p class=\"p7\"><span class=\"s2\">The gloating smirk with which SJB\u2019s economic czar notes the NPP\u2019s compliance with the IMF\u2019s terms is classic \u2018schadenfreude\u2019 &#8211; the peculiarly Germanic expression for vicarious<span class=\"Apple-converted-space\">\u00a0<\/span>pleasure in watching the discomfiture of the opponent. <\/span><\/p>\n<p class=\"p7\"><span class=\"s2\">Ranil Wickremesinghe\u2019s debt restructuring negotiations were driven solely by his devilish desire to perpetuate his hold on power either by manipulating a constitutional impasse or when such infantile attempts failed, by persuading a petrified people that it was either him or economic apocalypse.<span class=\"Apple-converted-space\">\u00a0 \u00a0<\/span><\/span><\/p>\n<p class=\"p7\"><span class=\"s2\">If you have read John Le Carr\u2019s spy novels \u2018Smiley\u2019s People\u2019 and \u2018Tinker Taylor Soldier Spy\u2019 you would know of Bill Hayden \u2013 the mole. AKD\u2019s eventual success in the Presidential race was more due to the failure of Ranil Wickremesinghe\u2019s mole in the SJB! <span class=\"Apple-converted-space\">\u00a0 <\/span>But that is another tale for another day. <\/span><\/p>\n<p class=\"p9\"><span class=\"s4\">Now, the NPP has accepted the IMF program negotiated by Ranil Wickremesinghe\u2019s team of Economic expertsto restore <i>\u201c<\/i><\/span><span class=\"s5\"><i>the country\u2019s fiscal sustainability through a well calibrated revenue-based fiscal consolidation plan\u00a0<\/i><\/span><\/p>\n<p class=\"p10\">With Ranil Wickremesinghe directing the rescue team, Sri Lanka reached final agreement on its debt treatment with the members of the Official Creditor Committee (OCC) of Sri Lanka\u2019s major bilateral lenders, and Bilateral Debt Treatment Agreements in relation to the loans owed by Sri Lanka to Exim Bank of China on 26<span class=\"s6\"><sup>th<\/sup><\/span> June 2024.<\/p>\n<p class=\"p10\">Ranil Wickremesinghe\u2019s rescue deal was essentially an imperative dictated by the crony class he represents. It required an appallingly iniquitous appropriation of a sizeable chunk of the Country\u2019s largest pension fund \u2013 the EPF.<span class=\"Apple-converted-space\">\u00a0 \u00a0<\/span><\/p>\n<p class=\"p10\">It is not possible for the average citizen to comprehend how these concoctions are produced by financial alchemy practiced by <span class=\"Apple-converted-space\">\u00a0 <\/span>Central Bankers and institutional lenders in international capital markets.<\/p>\n<p class=\"p10\">I use the term financial alchemy advisedly. A preeminent academic and a former Governor of the Bank of England Mervyn King in his seminal tome \u201cEnd of Alchemy\u2019<span class=\"Apple-converted-space\">\u00a0<\/span>explains to ordinary people<\/p>\n<p class=\"p11\"><span class=\"s8\"><i>\u201cDuring the 20th century, governments allowed the creation of money to become the byproduct of the process of credit creation. Most money today is created by private sector institutions \u2013 banks. This is the most serious fault-line in the management of money in our societies today.<\/i><\/span><i><\/i><\/p>\n<p><span class=\"s8\"><i>But banks are also dangerous. They are at the heart of the alchemy of our financial system. Banks are the main source of money creation. They create deposits as a byproduct of making loans to risky borrowers.\u201d<\/i><\/span><\/p>\n<p class=\"p12\">I asked one of our respected commentators on matters economic, himself a seasoned Central Bankers how he assessed the two agreements Sri Lanka has concluded with our major bilateral lenders and the Exim Bank of China.<\/p>\n<p class=\"p10\"><span class=\"s9\">His nonchalant disdain was biting. <i>\u201c<\/i><\/span><i>Both restructuring agreements are flawed without a haircut; what\u2019s been done is to reduce interest rates and postpone repayment to after 2027; hence, it\u2019s like enjoying today having put the burden onto future; but given the current circumstances, AKD has no choice but to and go along with IMF \u201c <\/i><\/p>\n<p class=\"p10\">The new government is saddled with these two done deals. The agreement with the International Sovereign Bond holders is yet to be signed. While this agreement is also a \u2018done deal\u2019 the New Government will conclude it with \u2018eyes wide open\u2019.<span class=\"Apple-converted-space\">\u00a0 \u00a0 \u00a0 \u00a0<\/span><\/p>\n<p class=\"p10\">Sri Lanka raised its first Sovereign Bond Issue in 2007. The process is succinctly described by CJP Siriwardene in the CBSL\u2019s 60<span class=\"s6\"><sup>th<\/sup><\/span> Anniversary Volume.<\/p>\n<p class=\"p10\"><i>\u201cThe country was fighting a war against a terrorist group and at the same time, the main opposition political party opposed the sovereign bond issue strongly with a threat that they would not honour under their government, obligations arising from the bond issue.\u201d\u00a0<\/i><\/p>\n<p class=\"p10\">\u201cGas Cylinder\u201d Champ Ranil Wickremesinghe the then Leader of Opposition is reported in a Wiki Leaks cable as explaining to US Ambassador Robert Blake that he suspected MR would use the money to buy over his UNP members of parliament.<\/p>\n<p class=\"p10\">Perhaps a reasonable worry for Wickremesinghe given his current discomfiture over the National List slot of his Cylinder Party.<span class=\"Apple-converted-space\">\u00a0 \u00a0<\/span><\/p>\n<p class=\"p10\">To fast forward to present day, it baffles the simple mind of this writer to understand how our state banks and some private banks ended up with International Sovereign Bonds which made them hire foreign legal teams to negotiate with our own government as a part of the Bondholders Ad Hoc committee.<\/p>\n<p class=\"p10\">AKD has 159 members of Parliament. He may be saddled with the rotten deals that Ranil Wickremesinghe initiated with a sly wink from the SJBs Economic wizard (Api Kuhaka Wenda Honda Nehe Honda Deyata Hondai Kiyanawa)<\/p>\n<p class=\"p10\">With the unprecedent majority legislative power both quantitative and qualitative at his command President AKD can introduce fundamental reforms in the countries financial sector that will prevent wives of future finance ministers from acquiring roof top penthouses with an ocean view <span class=\"Apple-converted-space\">\u00a0 <\/span>while hubby takes us citizens on a roller coaster ride in the global park !<span class=\"Apple-converted-space\">\u00a0 \u00a0 \u00a0<\/span><\/p>\n<p class=\"p10\">Transparency demands a full disclosure of the ISB exposure of our local banks, both state and private.<span class=\"Apple-converted-space\">\u00a0 <\/span>Who holds how much, who bought ISBs from whom, What price was paid in the secondary market are questions that ordinary citizenry should know.<\/p>\n<p class=\"p10\">This is a land of paradoxes. The minder of inflation liquidity and Exchange Rate begins the day after playing nine or the full eighteen holes at the Golf Club. The teachers and school children in the remote hinterland between Puttalam and Anuradhapura begin their day by attending school, playing a dangerous game evading wild elephants on the prowl.<\/p>\n<p class=\"p13\">Market economics is rooted in rational choice theory that make us servile to paradox of incentives! Will that explain how our state banks and other Sri Lankan banks<span class=\"Apple-converted-space\">\u00a0 <\/span>ended up with Sri Lanka Government\u2019s International Sovereign Bonds?<\/p>\n<p class=\"p13\">Indeed, this is a monumental moment in our history. We should not be actors in a play written by others.<\/p>\n<p class=\"p13\">P.S<\/p>\n<p class=\"p14\">My take on President AKD\u2019s policy statement. His mathematics teacher \u2013 must be a very proud lady today.<\/p>\n<p class=\"p14\">A pragmatic mind focus on what needs to be done immediately and ask, \u201chow do we get this done? \u201d<\/p>\n<p class=\"p14\">Skeptics would sneer. But a mind disciplined by mathematics would take the linear practical path.<\/p>\n<p class=\"p14\">The pragmatic mind can see the big picture and can anticipate the hurdles and roadblocks ahead.<\/p>\n<p class=\"p14\">The idealistic mind is a visionary mind with big ideas. The idealist mind is focused on the result and is not discouraged by the arduous path that gets there. The idealist knows the goal and believes in the way to get there.<\/p>\n<p class=\"p14\">AKD is a pragmatic visionary president.\u00a0<span class=\"s2\"><span class=\"Apple-converted-space\">\u00a0\u00a0<\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p> [&hellip;]<\/p>\n","protected":false},"author":86,"featured_media":237778,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,46,8,2375],"tags":[],"class_list":["post-239953","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-colombotelegraph","category-constitutional-reforms","category-editorial","category-stories"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>A Pragmatic Ethical President - Colombo Telegraph<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.colombotelegraph.com\/index.php\/a-pragmatic-ethical-president\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A Pragmatic Ethical President - 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