Vichara

The country is aware of several Mafiosi like the diesel mafia, rice mill mafia, and the drugs mafia which are a curse on the country. But it is very rare that people mention about the Pettah mafia which is the mother of all mafiosi. They have existed since colonial times and have grown in strength. They have non-national roots but have captured the native bureaucracy and politicians. Today they lead a cabal consisting of Customs, Banks, Import Control and Consumer Affairs. The strength and influence of the Pettah Mafia was demonstrated during the Black of July 1983 when Pettah was not touched by rioters although the neighboring Fort area was devastated. The secret is that Pettah was under the protection of the highest-level political powers.

No government has done a study of the control on wholesale trade of commodities, particularly the trade with India held by Pettah traders. This is in addition to their control of the gold and jewelry trade in Sea Street.

During the foreign exchange crisis, it was believed that they operated and controlled the ‘Undial’ system with impunity. They are suspected to be the major culprits of mis-invoicing at customs with the connivance of customs and commercial bank personnel.

The sugar scam was one of the recent maneuvers of the Pettah Mafia. It was evident that they had prior information of the substantial reduction of customs duty. Consumer Affairs Authority could have entered into a binding agreement in terms of CA Act Section 14 with the traders on the sale price. But they did not and allowed the traders to make exorbitant profits. The Finance Ministry is splitting hairs that there was no loss to the government and does not consider the imposition of a windfall tax as done in other countries.

The Pettah mafia has no competition. D.S. Senanayake established the Cooperative Wholesale Establishment (CWE) to cater to the cooperative sector. During the time Philip Gunawardena CWE was linked with the Multi-Purpose Cooperative scheme. It was the CWE and the cooperatives that served the nation during the 1983 riots when the private trade hardly functioned. But surprisingly during the Yahapalana regime, the wholesale function of the CWE was banned. This unwise and irrational move gave the Pettah a free run in the import trade particularly with India. It has become a profitable haven

Politicians and civil society organizations are concerned about the growing Indian influence with proposed Indian investment like that of Adani and Amul and their impact on the economy and security of the country. But no mention is made of the Indian enclave in Pettah.

It is deplorable that while India has made inroads or in the process of making inroads into strategic economic spheres of the country, they are griping over a barren piece of land in the Kacchativu. Sri Lanka may have to consider ceding Kacchativu Island to India regardless of the goodwill agreement with PM Indira Gandhi and invite China to take over Trincomalee on our terms.

It is proposed that the government appoint a Commission with clear terms of reference to investigate and report on the structure, role, and impact on the economy of this non-national (acquired national) enclave.

The original role of the CWE should be restored and given the funds to engage in wholesale import, storage, and distribution of essential commodities. One of the advantages that Pettah has is the well-established network of trade contacts in India. CWE should establish a unit in India to create such an effective network.

Vichara