Presidential Election

Tilt toward China is at stake in Sri Lanka's presidential election

Originally appeared in Nikkei Asian Review

By Ravi Ratnasabapathy

Candidates' foreign policy platforms have sharply different economic consequences

Sri Lanka votes Saturday to elect a new president, yet the family names of the leading candidates are familiar. The top contenders are Gotabaya Rajapaksa, whose brother held the presidency from 2005 to 2015, and Sajith Premadasa, whose father led the country from 1989 to 1993.

In terms of foreign policy, the two candidates crudely represent a choice between the continuity of current policies under Maithripala Sirisena, who repaired strained relations with India and the West, and a return to a more China-centric policy.

Rajapaksa heralds the return to China. A former soldier who served as Secretary to the Ministry of Defence during his brother's regime, he oversaw the military strategy that resulted in the annihilation of the leadership of the Tamil Tigers and the ending of the long-running civil war in 2009.

His brother, Mahinda Rajapaksa, had got into office on the back of hostility to the West, which had underwritten a putative peace process in 2002. As a part of the peace settlement, in 2003 the U.S., EU, Japan and Norway pledged $4.5 billion in reconstruction aid, but emphasized that assistance was linked to progress in the peace process, which involved concessions to the Tamil Tigers.

In the election of 2005 Rajapaksa capitalized on public disquiet over violations of the current cease-fire and heavy foreign involvement to portray the peace deal as a sellout to the Tamil Tigers and the West. When the fighting resumed the next year, it was particularly brutal, earning the condemnation of Western nations.

Rajapaksa's foreign policy, which already viewed the West negatively, gravitated further toward countries which were less critical. Leaders such as Russia's Vladimir Putin who stood up to the West were seen as models, and China, carrying a large checkbook, was viewed as particularly useful.

Following the end of the conflict in 2009, Chinese companies became involved in infrastructure development, building ports, airports, power plants and much else. Relations with India soured over extensive Chinese involvement in what it regards as its own backyard. This is the legacy Gotabaya Rajapaksa bears.

The shock defeat of the Rajapaksa regime in 2015 by Sirisena saw a change in foreign policy. The victory was hailed as triumph of democracy and welcomed by the West and India. Relations with the West and India improved and China was effectively sidelined.

Large China-backed projects were put on hold and the government threatened to renege on Chinese contracts. Economic pressures have meant that some of these projects have now resumed but the attitude to China remains lukewarm. China itself is generally thought to view the current regime as unfriendly and welcomed an abortive constitutional coup in October 2018 that temporarily installed Mahinda Rajapaksa as prime minister.

Thanks to term and age limits placed by the new government, neither Mahinda Rajapaksa nor his son is qualified to run for president, so Gotabaya Rajapaksa, who had to give up his U.S. citizenship in order to run for office, is seen as proxy.

Mahinda Rajapaksa is likely to contest the parliamentary election due next year with a view to obtaining the now powerful office of prime minister, thus he would be influential in shaping policy in his brother's government.

In any case, both are believed to share a similar worldview. A change in regime now would lead to a foreign policy realignment more favorable to China, although for economic rather than political reasons.

Battered by war, Sri Lanka faces periodic balance of payments crises and in 2016 received a $1.5 billion bailout from the International Monetary Fund -- the fourth bailout since 2001. Election giveaways mean the current IMF program is unlikely to be completed.

A pivot to China does not necessarily mean upsetting the West. The Rajapaksas are shrewd politicians and, while critical of the West, have shied away from open confrontation, not least because several key members of the regime are either foreign citizens or have permanent residency there.

The international landscape today is also very different from the previous Rajapaksa era.

Trump's foreign policy is distrustful of U.S. allies, scornful of international institutions and indifferent, if not downright hostile, to the liberal international order. In the immediate aftermath of the war in 2009 questions over atrocities, accountability and reconciliation were dominant. Ten years on, in a new global landscape, this is no longer the case.

The Rajapaksas are likely to seek accommodation with Trump, pointing to the Isis-inspired attacks on churches in Sri Lanka to present a case for alliance against a common threat from Islamic terror. India's Narenda Modi is likely to be courted in similar terms.

A Europe distracted by Brexit may be less willing to pursue difficult questions on Sri Lanka unless some serious new problems arise.

The new foreign policy is therefore likely to be more nuanced than the previous Rajapaksa era, but China will remain the first friend. For a floundering, debt-ridden economy, China's deep pockets present a far more attractive partner than the strictures of an IMF bailout.

Where is the money behind our politicians from?

Untitled design (1).png

In this weekly column on The Sunday Morning Business titled “The Coordination Problem”, the scholars and fellows associated with Advocata attempt to explore issues around economics, public policy, the institutions that govern them and their impact on our lives and society.

Originally appeared on The Morning


By Thiloka Yapa and Aneetha Warusavitarana

infographic 10.jpg

Election campaigns tend to be one of the driving forces behind corrupt practices even after candidates are elected.

Therefore, with a monumentally significant presidential election just over a month away, conversations around the issue of campaign finance and corruption in public office should be gathering steam.

Running a campaign in Sri Lanka is a costly affair; an aspiring candidate needs to connect with people on a grassroots level as well as a policy level. This exercise requires a great deal of manpower, posters, social media engagement, travel, and lots of “buth packets” – none of which come cheap. As a result, adequate campaign finance is a prerequisite for a successful election bid.

The problem lies in the issue of who is providing this finance and whether there are strings attached. If money is being funnelled into an election campaign on the understanding that once the candidate is in power, the financier will be afforded special privileges and benefits, this is when citizens need to be concerned.

Of course, campaign finance is not the root of all evil in the world of corruption. Regulating campaign financing would not address blatant theft within the government, nepotism, irregular procurement procedures, and the handing out of government jobs to political supporters. However, it is a step in the right direction and, interestingly, is something that Sri Lankan law has addressed in the past.

Regulating campaign finance

The Ceylon (Parliamentary Elections) Order in Council of 1946 specifies that a candidate would have to appoint an agent known as the “election agent”. This agent is responsible for the accounting and reporting of all expenses spent on elections, along with a declaration by the candidate. These financial reports have to be submitted within 31 days of the result of the election being published in the gazette. If it is not conveyed within the stipulated time period, the candidate would not be given the chance to sit or vote as a member in the House of Representatives, until such a conveyance is made.

However, this was repealed by the Parliamentary Elections Act No. 1 of 1981. Under this law, the sources of campaign financing would have to be tracked and reported. The fact that non-compliance would prohibit an individual from taking their seat in Parliament provides a strong and effective incentive for candidates to ensure that reporting is completed in the stipulated time period. While this law did not provide caps on spending during campaigns, making these declarations open to the public would provide another avenue through which elected officials could be held accountable.

However, this accountability mechanism is no longer in place. Under the Parliamentary Elections Act No. 1 of 1981, the entire section on reporting campaign finance was repealed, thus removing this avenue of accountability.

Bringing regulations back

The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has detailed the National Action Plan 2019-2023, aimed at tackling corruption in its various forms. The section on policy suggestions for proposed legislative amendments is all the more relevant in the context of elections. While the amendments proposed to the Bribery and Corruption Act aim to strengthen the powers of CIABOC and increase their ability to tackle corruption across the board, the proposals on campaign finance and asset declarations aim to curb opportunities for corruption in public office.

The proposed legislative framework for campaign finance puts in restrictions and accountability mechanisms on the finances of candidates. This ensures that when an individual comes into office, they do not bring with them the strings and influence of external parties, and are free to prioritise the needs and requirements of their electorate.

While the suggestions do include a cap on campaign financing, the amendments which prevent conflicts of interest and introduce accountability mechanisms may be more practical to enforce.

Restrictions on donations extend to donations made by government departments, companies registered under the Companies Act in which the government owns shares, donations from foreign governments, and organisations registered outside Sri Lanka. The proposed reform also includes a section on accounting and auditing of campaign finances, making this a prerequisite for an individual to come into power and acting as an accountability mechanism.

Beyond campaign financing

Through the proposed amendments to the Declaration of Assets and Liabilities Law, the checks on financing of elected officials continue once they enter office, expanding the scope of the law to encompass the President, private staff of elected officials, provincial council members, and members of local government authorities, to mention a few. The amendments specify that officials would have to submit asset declarations at the point of their initial appointment on a yearly basis while they hold office, at the point of retirement, and for two years post-retirement.

Additionally, asset declarations of the elected official’s spouse, dependent children, and other persons who live with the elected official or have similar ties are also required.

Tackling corruption is a mammoth task, but these reforms could form the backbone of a culture where citizens hold their representatives responsible and demand increased transparency and accountability.