All-party meet on Sri Lanka: Opposition MPs slam Centre for discussion on fiscal health of states

Mention of debt and fiscal condition of states such as Telangana, Andhra Pradesh and West Bengal were met with stiff objections from the MPs of parties ruling these states. The TRS, YSRCP, DMK and the Trinamool Congress, among others, demanded the Union government confine the meeting to the ongoing crisis in Sri Lanka.

Some of the slides in the Finance Ministry presentation concerned the power dues of states, outstanding guarantees, off-budget borrowings, outstanding liabilities, and committed expenditure to revenue receipt.

Centre “politicised” the meeting

Several leaders who participated in the all-party meeting slammed the Centre for trying to politicise the meeting by taking up for discussion the fiscal condition of states.

The all-party meeting convened by the Union Government to discuss the Sri Lanka crisis saw opposition MPs panning the Centre for discussing the states’ fiscal issues. Credit: Dr S Jaishankar/ Twitter

Taking to Twitter, AIMIM MP Asaduddin Owaisi said that the Union government took the opportunity of the all-party meeting to raise the “unrelated issue” of state finances.

“Dr S Jaishankar in his initial remarks said that there’s a “misinformed campaign and comparison between India and Sri Lanka.” If so, why did DEA have to make a presentation? Many opposition parties opposed this politicization (Sic),” he said.

1. @DrSJaishankar in his initial remarks said that there’s a “misinformed campaign & comparison between India & Sri Lanka”. If so why did DEA have to make a presentation? Many opposition parties opposed this politicisation. 2/n

— Asaduddin Owaisi (@asadowaisi) July 19, 2022

Another MP from the opposition ranks questioned why the fiscal health of the country was not discussed. “When they are discussing about financial condition of states, why not talk about the economic parameters of India as a whole? Why did the Centre not do that?” he asked while speaking to South First.

About the Sri Lankan crisis

The Centre’s presentation on the turmoil in Sri Lanka highlighted some of the most important problems affecting the country today — political turbulence and protests, economic downfall, and a sharp decline in its foreign reserves.

On the support extended to Sri Lanka, Jaishankar said that no other country has helped the island nation as much as India with respect to fuel, food, life-saving medicines and other essentials.

Government’s approach to Sri Lanka was explained in great detail. Appreciate the concerns expressed and suggestions made in the deliberations.

— Dr. S. Jaishankar (@DrSJaishankar) July 19, 2022

He also listed out the assistance provided to Sri Lanka since January 2022, including a currency swap of $400 million, line of credit worth $1.55 billion for food, fuel and other essential items, a debt deferral of more than $1.5 billion, and other support extended by the Centre and the Tamil Nadu government.

When asked if India’s help to Sri Lanka had come too late, the External Affairs Minister pointed out that no formal request was made earlier by the island nation for assistance, and added that India had warned the Sri Lankan government about its perilous economic condition on several occasions.

Importantly, minister Jaishankar also highlighted that India has not in any way helped former Sri Lankan President Gotabaya Rajapaksa to flee from the island to the Maldives and later to Singapore. “It was decided by those countries,” he said.

Tamil parties raise concern

Most of the political parties in Tamil Nadu have been expressing serious concerns about the turn of events in Sri Lanka and have demanded the Centre extend all possible support to the people of the country who are suffering severe economic distress.

During the all-party meeting, the Centre was also asked as to whether the relief items given to Sri Lanka were being equitably distributed to all areas, especially the northern parts of the island, where Sri Lankan Tamils are in a majority.

“The government is also watchful of this issue. They assured us that they are taking efforts to ensure that the aid materials are distributed evenly among Sri Lankan Tamils without any discrimination,” GK Vasan, MP and President of Tamil Maanila Congress, told South First.

Refugee influx

The DMK informed the all-party meeting that so far 115 persons belonging to 43 families have fled Sri Lanka and landed up on the shores of Tamil Nadu due to the economic crisis and shortage of food. The refugees have been housed in the Mandapam transit camp, said the DMK, which was represented at the meeting by Parliamentary party leader TR Baalu and Rajya Sabha MP Tiruchi Siva.

The DMK also underlined the need to retrieve Katchatheevu and restore the traditional fishing rights of Indian fishermen.

The Tamil parties, including the DMK and AIADMK, also took up the issue of harassment faced by Tamil fisherfolk by the Sri Lankan Navy on the pretext of crossing the International Maritime Boundary Line.

“During the past 11 years, 3,743 fishermen were arrested by the Sri Lankan Navy and 3,725 of them were released. There are still 18 fishermen who are awaiting repatriation,” DMK pointed out during the all-party meeting.

Most of the parties urged the Centre to find a permanent solution to this problem.