Will the puritans – Media and Central Bank – now step forward and cast the first stone at Sakwithi Ranasinghe?

Sakwithi Ranasinghe is virtually crucified. Stable gates are tightened. That should make everybody happy – at least till next such event. Time to wipe out the entire episode from mass reminiscence and move to cricket, if not Kilinochchi.

So this might be my last post on Sakwithi. (BTW, I will appear in TNL’s Bihidora on Wednesday 9.30 pm to speak on the subject.)

Nalaka Gunawardene disrobes the media prostitution. The very media now chastise Sakwithi sir, once willingly slept with him to build his larger than life image. Media moguls could have been a bit more discretionary on advertisements to minimize the damage. Apparently they did not care and the gullible mice followed the Pied Piper. So how ethical is it for media to wash its hands and shed crocodile tears now? (Ironically, ‘Lankadeepa’ of Sept 28 simultaneously brands D. K. Udayasiri of Sakwithi’s ilk as a bogus or ‘hora’ investor in its lead news, and carries a half page ad for him inside!)

Let me take on the other puritan – The Central Bank of Sri Lanka.

I do NOT – repeat NOT – blame Central Bank for not playing the role of the regulator, it isn’t. Central Bank ‘s mandate is limited only to supervise registered finance companies, and Sakwithi sir was not within that category. He should have been taken care by the Police, but what use blaming a force headed by an IGP who expects video clips from rape victims? I hear few SPs and ASPs are among those who were taken for a ride by Sakwithi sir. I am not surprised.

I blame Central Bank for a different reason – creating the breeding ground for Sakwithis.

It is simple arithmetic. Inflation is as high as 25-30%. Maximum interest commercial banks pay for fixed deposits is 16-18%. Registered finance companies go a little further but still cannot catch the inflation demon. So even a fifth grader can figure out if you leave your money at a bank, by the end of the year you are worse off.

Investing in real assets is the only intelligent option to beat inflation, but not everyone is wise. Plus there are issues with real assets. Lands do not come in customizable sizes and gold is difficult to protect. So when Sakwithi says he offers Rs. 4,000 per month for a deposit of Rs. 100,000 (that is about 50% annual interest) they jump in without thinking twice.

It is not that they are greedy. They are made to run non-stop for mere survival. When the formal financial sector cannot address their needs they turn for informals. Sakwithi Ranasinghe, strictly speaking, might not have been a crook- he could have been an investor who failed by taking risks too high. (not that I endorse it) An interest rate of 50% is not as high it seems for an investor in construction industry. Minus inflation it is about 20% and building material prices escalate at a higher rate.

If Central Bank thinks they can stop Sakwithis by placing advertisements in newspapers and exposing few like him once in a while they are badly mistaken. It is like trying to control Dengue by killing mosquitoes. No matter how many killed, mosquitoes will be there as long as their breeding grounds exist. So do risky investments.

None other than W. A. Wijewardene, the very Deputy Governor of Central Bank, recently equated ‘Inflation’ to ‘terrorism’. If so, Sakwithi is a suicide bomber. Sheer vigilance is necessary, but not adequate to prevent him. Death of one suicide bomber does not prevent others. It is a larger game. Whether it likes or not Central Bank should take the inflation bull by its horns, sooner than later. Unless it does so, there is little use in blaming Sakwithi Ranasinghes.

Edwin Ariyadasa: A naive victim or a willing accomplice in ‘Sakwithi Ranasinghe’ scam?

I am sad to pen this post.

Edwin Ariyadasa, as an intellect and a writer once made a profound impact on my life. Our generation, unlike the youngsters today, had no Internet or even TV. It was all books, radio and newspapers. Ariyadasa’s realm was the last two.

He was an excellent presenter. Precise and concise in facts, he knew exactly what the readers looked for.

What made Ariyadasa unforgettable were the contributions to ‘Navayugaya’ and ‘Silumina’. I still remember him explaining in mid 1970s how future generations would start their days by reading newspapers electronically delivered to homes. Then it was unthinkable – I wouldn’t have then believed it to happen even in the west – let alone here. Strangely that is what we do today. May not be at home, but most of us read online versions of news early morning. Suffice to describe the visionary he once was.

Unlike most writers of the time he never tried pushing a political ideology. A true unbiased ‘walking encyclopedia’ – no more, no less. I cannot be the only one who then saw the future in his eyes.

So how would the news of his ‘partner’ (or employer – as Ariyadasa emphasizes, saying he was paid Rs. 100,000 per month for the services) running away with billions of hard earned rupees sound to his once fans like myself?

Personally, I am disappointed. Not because I think Ariyadasa was a part of anything that happened, but no denial that he endorsed a dubious character. An irresponsible act – to say the least. What does Ariyadasa now say about his name appearing in full page advertisements in Lankadeepa inviting depositors? Can he claim unawareness? What about the claims by depositors that Ariyadasa encouraged them to deposit? Does he deny that?

Those who sleep with dogs will get up with lice. (Ballan samaga nidagath vita mekkan samaga negiteemata siduve) A wonderful saying attributed to a famous Sinhala journalist. Sad that Edwin Ariyadasa had to learn it the hard way.

Ariyadasa is not alone. This episode also brings the story of a certain Computer professor into our minds. No need for a name as he is no more. Just like Ariyadasa he too had a credibility built up for a lifetime which he risked for seemingly minor benefits.

After his retirement from the University this Computer Professor had a comfortable life ahead him with no worries. He had no financial issues because both his sons were then employed by two international IT firms. Still his sheer unwillingness to give up power once yielded made him accepting a chair at a government organization for a compensation of Rs. 100,000 per month – exactly the same thirty pieces of silver Ariyadasa received.

This power, of course came with a price tag. His political masters wanted him to manipulate a tender of USD 15 million so that a firm represented by a close relative of a VVIP wins it. This was no easy task, as the other party offer was both technically and financially superior. The offer of VVIP’s close relative was USD 1 million more and not represented by a local partner – a mandatory condition in tender. Still this stupid old man did the honurs and awarded the tender to the wrong party – whose offer should have not even been short listed in the first place.

What got him was the media. Revelations by ‘Sunday Leader’ and ‘Ravaya’ perhaps added to his guilty consciousness. That guilty feeling finally took his life. A stupid man, who could have lived for another ten years easily, lost his life being a pawn of a much bigger political game.

Thanhaya jaayati soko – greed generates sorrow. This is something both Ariyadasa and the said Computer Professor should have known. Latter is now dead, buried and conveniently forgotten even by his closest disciples – but we hope Ariyadasa is still not too late.