{"id":858,"date":"2011-10-20T00:12:02","date_gmt":"2011-10-20T00:12:02","guid":{"rendered":"http:\/\/colombotelegraph.com\/?p=858"},"modified":"2011-10-20T00:12:02","modified_gmt":"2011-10-20T00:12:02","slug":"wikileaks-maitree-wickramasinghe-brings-up-economy-ranil-demurs","status":"publish","type":"post","link":"https:\/\/www.colombotelegraph.com\/index.php\/wikileaks-maitree-wickramasinghe-brings-up-economy-ranil-demurs\/","title":{"rendered":"WikiLeaks – Maitree Wickramasinghe brings up economy; Ranil demurs"},"content":{"rendered":"

By Colombo Telegraph –<\/p>\n

\"\"<\/a>\u201cThe UNP party is playing a dangerous game supporting General Fonseka, because the Sri Lankan Presidency is very powerful, and it is unclear what economic policies Fonseka would support as President\u201d the US embassy Colombo wrote to Washington.<\/p>\n

The Colombo Telegraph found the leaked US diplomatic cable from WikiLeaks database. The cable was classified as \u201cCONFIDENTIAL\u201d details the argument behind Fonseka\u2019s position on corruption.<\/p>\n

The cable written on 01, January 2010 by the ambassador Patricia A. Butenis says \u201cThe opposition presidential candidate General Fonseka is military man who has publicly admitted that he has little knowledge of economic issues, and other than clamping down on corruption, he has no apparent economic program.\u201d<\/p>\n

The ambassador Butenis wrote \u201c It will be extremely difficult for \u00a0him to advance a coherent economic policy because the opposition parties supporting him have diametrically opposed economic views. Instead, Fonseka plans to focus on corruption, where President Rajapaksa is weak, and blaming corruption and government waste for voters, tough economic times. While the economy is a high \u2013 priority for many voters, both campaigns have focused on personalities and past performance rather than on a solid economic and political platform for future.\u201d<\/p>\n

\"\"<\/a>

Maitree reminded Ranil that he and Fonseka should say something about the economy, but he demurred because the political parties backing Fonseka\u2019s candidacy had completely different economic policies<\/p><\/div>\n

Econoff met with opposition campaign strategist Harsha de Silva, who is a prominent opposition economist, said he was in charge of writing Fonseka\u2019s economic manifesto for his possible administration, but it was an impossible task because the UNP and JVP are diametrically opposed. Instead of a positive economic agenda, De Silva recommended attacking President Rajapaksa for corruption and waste. The ambassador Butenis further wrote \u201cThe corruption issue is a good one because while Fonseka is seen as clean, even the President\u2019s private polling shows 80% of the people think that President Rajapksa and his family are corrupt.\u201d<\/p>\n

She wrote \u201c Fonseka himself however, prefers not to discuss future economic plans. Parliament opposition leader and potential future prime minister under a President Fonseka, Ranil Wickramesinghe, and his wife had a private lunch with the DCM and Poloff. At the lunch, his wife reminded Wickramesinghe that he and Fonseka should say something about the economy, but he demurred because the political parties backing Fonseka\u2019s candidacy (primarily the liberal UNP and the leftist JVP) had completely different economic policies.\u201d<\/p>\n

\u201cThe opposition focus on corruption indicates that it believes that neo \u2013 liberal reforms, such as privatization, are too toxic to publicly advocate. Sri Lanka\u2019s economy could indeed benefit from both a good crusade against corruption and liberal reforms\u201d the ambassador further wrote.<\/p>\n

Read the full cable below for further details;<\/p>\n

VZCZCXRO3059\nPP RUEHBI RUEHCI RUEHLH\nDE RUEHLM #0002\/01 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a00041139\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\nZNY CCCCC ZZH\nP 041139Z JAN 10\nFM AMEMBASSY COLOMBO\nTO RUEHC\/SECSTATE WASHDC PRIORITY 1067\nINFO RUEHKA\/AMEMBASSY DHAKA PRIORITY 2226\nRUEHIL\/AMEMBASSY ISLAMABAD PRIORITY 9248\nRUEHKT\/AMEMBASSY KATHMANDU PRIORITY 7503\nRUEHNE\/AMEMBASSY NEW DELHI PRIORITY 3658\nRUEHCG\/AMCONSUL CHENNAI PRIORITY 9810\nRUEHKP\/AMCONSUL KARACHI PRIORITY 2632\nRUEHCI\/AMCONSUL KOLKATA PRIORITY 0492\nRUEHLH\/AMCONSUL LAHORE PRIORITY 0118\nRUEHBI\/AMCONSUL MUMBAI PRIORITY 7099\nRUCPDOC\/DEPT OF COMMERCE WASHDC PRIORITY\nRULSDMK\/DEPT OF TRANSPORTATION WASHDC PRIORITY\nC O N F I D E N T I A L SECTION 01 OF 02 COLOMBO 000002\n\nSIPDIS\n\nE.O. 12958: DECL: 01\/04\/2020\nTAGS: CE<\/a> ECON<\/a> PGOV<\/a>\nSUBJECT: OPPOSITION PRESIDENTIAL CANDIDATE HAS LITTLE\nECONOMIC AGENDA; FOCUSES ON CORRUPTION\n\nREF: COLOMBO 1145\n\nCOLOMBO 00000002  001.2 OF 002\n\nClassified By: A\/DCM Rebecca Cohn for Reasons 1.4 (B.D)\n\n\u00b6<\/a>1.     (C)  Summary.  The opposition presidential candidate\nGeneral Fonseka is a military man who has publicly admitted\nthat he has little knowledge of economic issues, and other\nthan clamping down on corruption, he has no apparent economic\nprogram.  General Fonseka has announced some populist\nmeasures to increase government employee salaries and\nincrease public pensions.   It will be extremely difficult\nfor him to advance a coherent economic policy because the\nopposition parties supporting him have diametrically opposed\neconomic views.  Instead, Fonseka plans to focus on\ncorruption, where President Rajapaksa is weak, and blaming\ncorruption and government waste for the voters, tough\neconomic  times.  While the economy is a high-priority for\nmany voters, both campaigns have focused on personalities and\nand past performance rather than on a solid economic and\npolitical platform for the  future.    End Summary.\n\nThe Candidate Has Little Economic Experience\n\n\u00b6<\/a>2.    (C)  General Fonseka is a military man who has little\nexperience with economics  or even any readily apparent views\non economic issues.  Fonseka has admitted publicly that he\ndoes not have any economic experience, and he has made few\npublic statements about the economy.  He has promised to\nincrease the monthly salary of public servants by 10,000\nrupees or approximately $ 90 USD per month (there are 1.2\nmillion government employees).  Fonseka also supports\nproviding 2,000 rupee monthly pensions to senior citizens\n(about $18 USD).  Econoff met with opposition campaign\nstrategist and economist Harsha de Silva, who said that\nFonseka plans to promise benefits to each economic segment of\nthe population in order to gain votes.   Fonseka himself,\nhowever, prefers not to discuss future economic plans.\nParliament opposition leader and potential future prime\nminister under a President Fonseka, Ranil Wickramesinghe, and\nhis wife had a private lunch with the DCM and Poloff.  At the\nlunch, his wife reminded Wickramesinghe that he and Fonseka\nshould say something about the economy, but he demurred\nbecause the political parties backing Fonseka's  candidacy\n(primarily the liberal UNP and the leftist JVP) had\ncompletely different economic policies.\n\nIrreconcilable Differences Between the Opposition Parties\n\n\u00b6<\/a>3.    (C)  General Fonseka is a common candidate supported by\nthe free market UNP and the far left JVP.  The UNP has\nsupported privatization of state industries, an open economy\nand an increased role for the private sector.  The JVP is at\nthe opposite end of the economic spectrum, has opposed\nprivatization and UNP reforms in the past,  supports a large\nrole of the state, opposes foreign investment, and advocates\nfor government welfare to protect society.  De Silva, who is\na prominent opposition economist, said that he was in charge\nof writing Fonseka,s economic manifesto for his possible\nadministration, but it was an impossible task because the UNP\nand JVP are diametrically opposed.  Instead of a positive\neconomic agenda, De Silva recommended attacking President\nRajapaksa for corruption and government waste.\n\nCampaign Strategy Focuses on Corruption and Government Waste\n\n\u00b6<\/a>4.    (C)  De Silva conducted a poll on behalf of the\nopposition which found that the Sri Lankan people were very\nupset about the cost of living, their declining ability to\nsupport their families, and corruption and government waste.\nThe poll also found that there was a split between support\nfor the GSL,s nationalist state-led policies and the UNP,s\ninternational trade private sector-led economic policies.\nThe government UPFA coalition and the UNP are seen as equally\ncapable of improving their personal economic situation.\n\n\u00b6<\/a>5.    (C)  De Silva recommended that Fonseka criticize\nPresident Rajapaksa on government waste and corruption issues\nand blame corruption for the high cost of living and the\ndifficult economic situation faced by many Sri Lankans.  The\ncorruption issue is a good one because while Fonseka is seen\n\nCOLOMBO 00000002  002.5 OF 002\n\nas clean, even the President,s private polling shows 80% of\nthe people think that President Rajapaksa and his family are\ncorrupt (see reftel).  De Silva plans to use a study,\nproduced by a prominent economist, that corruption costs Sri\nLanka 2% in annual GDP growth.   The opposition will try to\ntie President Rajapaksa,s alleged corruption to the rising\ncost of living and falling income for many Sri Lankans.\n\n\u00b6<\/a>6.    (C)  De Silva candidly admitted to econoff that the\nattack on corruption is primarily a campaign strategy.  De\nSilva said that 'as an economist' he understood that the\ngovernment of Sri Lanka needed to institute many economic\nreforms, but for campaign purposes the opposition needed to\nback away from the 'neo liberal' reforms attached to the UNP.\n After the election, De Silva hoped that the UNP would take\ncommand of economic policy and apply a toned-down version of\nits traditional policies.\n\n\u00b6<\/a>7.    (C)  Comment.  The UNP party is playing a dangerous\ngame supporting General Fonseka, because the Sri Lankan\nPresidency is very powerful, and it is unclear what economic\npolicies Fonseka would support as President.  The opposition\nfocus on corruption indicates that it believes that\nneo-liberal reforms, such as privatization, are too toxic to\npublicly advocate.  Sri Lanka,s economy  could indeed\nbenefit from both a good crusade against corruption and\nliberal reforms.  End Comment.\nBUTENIS<\/pre>\n","protected":false},"excerpt":{"rendered":"
 […]<\/p>\n","protected":false},"author":21,"featured_media":1230,"comment_status":"open","ping_status":"open","sticky":true,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[53,1,8,27],"tags":[6986,1274,1208,1205,1161,1174,1145,1135,1297,1185,1206,1257,1298,1172],"class_list":["post-858","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-global-politics","category-news","category-editorial","category-wikileaks","tag-anti-corruption","tag-economic-affaires","tag-election-monitoring","tag-elections","tag-foreign-affairs","tag-jvp","tag-left-politics","tag-mahinda-rajapakse","tag-neo-liberal-reforms","tag-patricia-a-butenis","tag-presidential-election-2010","tag-sarath-fonseka-in-wikileaks","tag-sri-lankans-in-wikileaks","tag-us-embassy-cables"],"yoast_head":"\nWikiLeaks - Maitree Wickramasinghe brings up economy; Ranil demurs - 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\/wikileaks-maitree-wickramasinghe-brings-up-economy-ranil-demurs\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"WikiLeaks - Maitree Wickramasinghe brings up economy; 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