Connect with us

Features

Trust begets trust

Published

on

Drivers push auto rickshaws in a line to buy petrol from a fuel station, amid Sri Lanka's economic crisis, in Colombo, July 29, last year

by Usvatte-aratchi

The president’s rhetorical claims on Galle Face Green on February 4, 2023, amplified in Parliament on February 8 that there have been no dehydrating long queues at petrol stations and no protests by peasants demanding fertilizer because of good economic management since he assumed office hid from the public many facets of the slide down to that ‘stability’ at a low level. The economy is in some temporary and unstable hysteresis. The policy changes that brought it about were implemented well before the present president’s accession to office.

Let us look closer at what happened. The country went into default on its foreign debt in April 2022, four months before the new president took office. That action saved for other uses the foreign exchange that we would have paid in interest and capital to foreigners up to that point. That relieved pressure on the balance of payments. By implication, it also saved the value in rupees that would have been necessary to buy the foreign exchange to pay the debt owed to foreigners. That helped to relieve the pressure on the domestic budget. Those resources were released for other uses, contributing to that temporary relief.

What we can expect for the next two years and more is about the same level of resources augmented with the first tranche of the Extended Funds Facility, after the Fund and our government agree on terms. The president’s promise of higher pay for public servants later in the year is pie in the sky. Consequent upon the default on foreign debt payments and the perceived higher risks of lending to Sri Lanka, interest rates on borrowing from banks rose beyond 35 percent per annum. Few enterprises could function with funds borrowed at those rates of interest.

Banks loans, renewed year after year, are a common source of capital for enterprises in this country, in the absence of developed capital markets. The economy shrank in response to higher interest rates as the monetary multiplier became effective in its own time. Bad loan books in banks bloomed. Business activity slowed down and will shrink further. The policy decisions that brought about these changes were made before the present president took office. The recent fluctuation in the value of the rupee is a minor play in speculation. Like all bubbles of this sort in markets, it will break in its short time. Ignore the share market. It does not matter to the economy.

The ratio of imports to GDP, about 40 percent, is a fairly constant number in this economy. Selected imports were banned and the economy necessarily shrank, again. Crop failures called forth mainly out of ignorance and prejudice (with viyath maga [Wise Guys] as partners of government!), severely cut down the income of farmers and peasants and the results of that fall in income worked themselves throughout the economy Major policies and programmes that depressed total income and total demand that brought about the so-called stability antedated the advent of the new president. The central bank cannot raise the supply response as that response is governed by other stimuli: high risks of lending to a bankrupt nation.

In 2022, remittances from workers overseas rose in some degree, with the rise in the rupee value of the dollar. (Elementary, Dr. Watson.) There was some increase in tourism but far too small to compensate for losses in the economy elsewhere. Tourists came partly because foreign currency could buy a lot more after the May 2022 devaluation than before it. A room priced at $100 in 2021 (Rs 20,000) is now available for $ 75, (Rs26,3750), a lower price to the tourist and a higher price to the hotelier. Along with the shrinkage in the economy, the demand for energy fell. The ratio of energy use to GDP is (again) fairly constant. (The former Prime Minister of China, Li Keqiang, devised his own index number for the growth of GDP in China using the quantity of electricity consumed, freight carried and another as guides.)

The sale of petrol in 2022 fell by about 30 percent of its use in (say) 2018, the last year when the economy worked close to capacity. The demand for energy also fell more steeply consequent upon the sharply higher domestic prices, reflecting the higher prices of petroleum and related materials in international markets. (Both price and income effects were at play.) The fall in the quantity of petrol and other fuel sold in 2022 accounts for the disappearance of dehydrating queues in petrol stations. At my neighbourhood petrol station, I have not seen a line of cars waiting to fill up for many months.

Casual evidence of the fall in demand is the sparse traffic on roads even at times of congestion, evident earlier. There were four three-wheeler drivers who, for many years, operated from the top of our lane and there has been none from about mid-2021. The total effects of all this will be evident in the rate at which the economy shrank in 2022 when the figures will come out later this year. (That funny neologism NEGATIVE GROWTH is a challenge to make nonsense intelligible.) These adverse developments were consequent upon policy decisions made by the Gotabaya Rajapaksa government and inherited by the Wickremesinghe government.

This government reversed some stupid decisions by the former president, who single-handedly and ‘beyond the call of duty’ (as touted to boost his candidacy), destroyed the livelihoods in agriculture including fisheries on a massive scale. Peasants who cannot afford the new high prices for transport with a lower total income are mournfully protesting still, not on the Galle Face Green in Colombo but in rice fields, which ought to be luscious green mid-maha, now sickly brown affected by infection with insects, viruses and bacteria. Infested compost used in rice fields after the ban on the import of chemical fertilizer introduced substituting chemical fertilizer may have introduced pests to fields. The devastation of crops, both rice and corn, is rampant in Ampara, Polonnaruva, Anuradhapura and Kurunegala, all districts that contribute heavily to the marketable surplus of rice and provide feed to poultry farmers.

While the present policy regime is a distinct improvement on the inconsistencies, ignorance and stupidities of the preceding half-military regime, it (the present policy regime) contains standard prescriptions dictated for situations of economic austerity necessary to bring down the level of economic activity to what is affordable; affordable with low import capacity. Following the Hippocrates oath, the government, mercifully, has not harmed the economy in contrast to the earlier regime. The economy cannot work at higher capacity without hitting the ceiling of foreign exchange resources available. Go to Greece a decade back, Thailand 16 years back, and Korea several decades back. (I had written about the impending disasters in this newspaper and spoken about them in other fora for several years. Read a clear warning as early as 2013 in my address to the Annual Sessions of the Sri Lanka Economic Association.)

In no instance, that I cited, was there a surgeon present. But there is work for a team of surgeons and a whole lot of other medics in this instance. WHO will need to send plane loads of surgical supplies. A carbuncle with foul-smelling wounds spread all over this economy and the body politic now presents a serious risk of septicaemia (sepsis). The death rate from sepsis, is 50 percent, more or less, of those affected. Clean up the foul infection of corruption generated and spread by former presidents and their family members, hordes of members of parliament and local government bodies, gangs of government employees and armies of private citizens who helped to spread the bacteria. Some need to be made harmless and others quarantined long-term. The large crowds that throng to hear Anura Kumara Dissanayake, I reckon, are attracted by their persistent, substantiated and convincing promises to eliminate corruption in this society.

Fail in that and the JJB had better find places to hide in. The promises by the president of a bill that will be presented in Parliament to cure these ills in the future is neither here nor there. Every government that came to office after 1994 promised to kill the wild beast of an executive president who still rages savagely, unmolested. The present president who was a powerful figure in the Parliament 2015 -2020 did promise with great solemnity and even more bombastic celebration, that he would revise the constitution to deprive that office of the very powers that he now exploits. So will this bill against corruption be ‘Great Expectations’? To change the entire scene metaphorically, ‘Who is Sinhabahu enough ( ‘kuriru, darunu mee saturaa maranata) to slay this ferocious and woeful foe?’

The time to act is now. The elimination of this gangrene and septicaemia is essential for the revival of the economy. From casual observation, most people will not accept the sincerity of ‘unpopular policies and programmes’ that the president foretold until the general public trusts policymakers’ sincerity. The claims made by politicians of the government and some senior civil servants that there is no money to hold local government elections is another way of saying that among all the payments the government may make in the financial year 2023, holding elections has the lowest priority.

These claims and activities betray a deep-seated distrust of democratic ways of government. All people in democratic societies ought to protest at that ghastly assertion. Most people in our society will be further convinced that this government should not be trusted. Few things will restore trust in government as a frontal attack on corruption in the economy would. Government cannot carry through programmes that hurt the public in the short term without reviving the trust of the people in government which the government had lost much earlier. (I wrote about this in early 2020.) That restoration requires surgery to eliminate the foul and deathly carbuncle. (Recall the ‘restoration’ after (the Short (1640) and Long (1640-1660) Parliaments, the execution of Charles I of England in 1649 and the death of Lord Protector Oliver Cromwell in 1659. The English throne, from which Charles III reigns now, has never been vacant ever since.)



Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Features

Cricket and the National Interest

Published

on

The appointment of former minister Eran Wickremaratne to chair the Sri Lanka Cricket Transformation Committee is significant for more than the future of cricket. It signals a possible shift in the culture of governance even as it offers Sri Lankan cricket a fighting possibility to get out of the doldrums of failure. There have been glorious patches for the national cricket team since the epochal 1996 World Cup triumph. But these patches of brightness have been few and far between and virtually non-existent over the past decade. At the centre of this disaster has been the failures of governance within Sri Lanka Cricket which are not unlike the larger failures of governance within the country itself. The appointment of a new reform oriented committee therefore carries significance beyond cricket. It reflects the wider challenge facing the country which is to restore trust in public institutions for better management.

The appointment of Eran Wickremaratne brings a professional administrator with a proven track record into the cricket arena. He has several strengths that many of his immediate predecessors lacked. Before the ascent of the present government leadership to positions of power, Eran Wickremaratne was among the handful of government ministers who did not have allegations of corruption attached to their names. His reputation for financial professionalism and integrity has remained intact over many years in public life. With him in the Cricket Transformation Committee are also respected former cricketers Kumar Sangakkara, Roshan Mahanama and Sidath Wettimuny together with professionals from legal and business backgrounds. They have been tasked with introducing structural reforms and improving transparency and accountability within cricket administration.

A second reason for this appointment to be significant is that this is possibly the first occasion on which the NPP government has reached out to someone associated with the opposition to obtain assistance in an area of national importance. The commitment to bipartisanship has been a constant demand from politically non-partisan civic groups and political analysts. They have voiced the opinion that the government needs to be more inclusive in its choice of appointments to decision making authorities. The NPP government’s practice so far has largely been to limit appointments to those within the ruling party or those considered loyalists even at the cost of proven expertise. The government’s decision in this case therefore marks a potentially important departure.

National Interest

There are areas of public life where national interest should transcend party divisions and cricket, beloved of the people, is one of them. Sri Lanka cannot afford to continue treating every institution as an arena for political competition when institutions themselves are in crisis and public confidence has become fragile. It is therefore unfortunate that when the government has moved positively in the direction of drawing on expertise from outside its own ranks there should be a negative response from sections of the opposition. This is indicative of the absence of a culture of bipartisanship even on issues that concern the national interest. The SJB, of which the newly appointed cricket committee chairman was a member objected on the grounds that politicians should not hold positions in sports administration and asked him to resign from the party. There is a need to recognise the distinction between partisan political control and the temporary use of experienced administrators to carry out reform and institutional restructuring. In other countries those in politics often join academia and civil society on a temporary basis and vice versa.

More disturbing has been the insidious campaign carried out against the new cricket committee and its chairman on the grounds of religious affiliation. This is an unacceptable denial of the reality that Sri Lanka is a plural, multi ethnic and multi religious society. The interim committee reflects this diversity to a reasonable extent. The country’s long history of ethnic conflict should have taught all political actors the dangers of mobilising communal prejudice for short term political gain. Sri Lanka paid a very heavy price for decades of mistrust and division. It would be tragic if even cricket administration became another arena for communal suspicion and hostility. The present government represents an important departure from the sectarian rhetoric that was employed by previous governments. They have repeatedly pledged to protect the equal rights of all citizens and not permit discrimination or extremism in any form.

The recent international peace march in Sri Lanka led by the Venerable Bhikkhu Thich Paññākāra from Vietnam with its message of loving kindness and mindfulness to all resonated strongly with the masses of people as seen by the crowds who thronged the roadsides to obtain blessings and show respect. This message stands in contrast to the sectarian resentment manifested by those who seek to use the cricket appointments as a weapon to attack the government at the present time. The challenges before the Sri Lanka Cricket Transformation Committee parallel the larger challenges before the government in developing the national economy and respecting ethnic and religious diversity. Plugging the leaks and restoring systems will take time and effort. It cannot be done overnight and it cannot succeed without public patience and support.

New Recognition

There is also a need for realism. The appointment of Eran Wickremaratne and the new committee does not guarantee success. Reforming deeply flawed institutions is always difficult. Besides, Sri Lanka is a small country with a relatively small population compared to many other cricket playing nations. It is also a country still recovering from the economic breakdown of 2022 which pushed the majority of people into hardship and severely weakened public institutions. The country continues to face unprecedented challenges including the damage caused by Cyclone Ditwah and the wider global economic uncertainties linked to conflict in the Middle East. Under these difficult circumstances Sri Lanka has fewer resources than many larger countries to devote to both cricket and economic development.

When resources are scarce they cannot be wasted through corruption or incompetence. Drawing upon the strengths of all those who are competent for the tasks at hand regardless of party affiliation or ethnic or religious identity is necessary if improvement is to come sooner rather than later. The burden of rebuilding the country cannot rest only on the government. The crisis facing the country is too deep for any single party or government to solve alone. National recovery requires capable individuals from across society and from different sectors such as business and civil society to work together in areas where the national interest transcends party politics. There is also a responsibility on opposition political parties to support initiatives that are politically neutral and genuinely in the national interest. Not every issue needs to become a partisan battle.

Sri Lanka cricket occupies a special place in the national consciousness. At its best it once united the country and gave Sri Lankans a sense of pride and international recognition. Restoring integrity and professionalism to cricket administration can therefore become part of the larger task of national renewal. The appointment of Eran Wickremaratne and the new committee, while it does not guarantee success, is a sign that the political leadership and people of the country may be beginning to mature in their approach to governance. In recognising the need for competence, integrity and bipartisan cooperation and extending it beyond cricket into other areas of national life, Sri Lanka may find the way towards more stable and successful governance..

by Jehan Perera

Continue Reading

Features

From Dhaka to Sri Lanka, three wheels that drive our economies

Published

on

Court vacation this year came with an unexpected lesson, not from a courtroom but from the streets of Dhaka — a city that moves, quite literally, on three wheels.

Above the traffic, a modern metro line glides past concrete pillars and crowded rooftops. It is efficient, clean and frequently cited as a symbol of progress in Bangladesh. For a visitor from Sri Lanka, it inevitably brings to mind our own abandoned light rail plans — a project debated, politicised and ultimately set aside.

But Dhaka’s real story is not in the air. It is on the ground.

Beneath the elevated tracks, the streets belong to three-wheelers. Known locally as CNGs, they cluster at junctions, line the edges of markets and pour into narrow roads that larger vehicles avoid. Even with a functioning rail system, these three-wheelers remain the city’s most dependable form of everyday transport.

Within hours of arriving, their importance becomes obvious. The train may take you across the city, but the journey does not end there. The last mile — often the most complicated part — belongs entirely to the three-wheeler. It is the vehicle that gets you home, to a meeting or simply through streets that no bus route properly serves.

There is a rhythm to using them. A destination is mentioned, a price is suggested and a brief negotiation follows. Then the ride begins, edging into traffic that feels permanently compressed. Drivers move with instinct, adjusting routes and squeezing through gaps with a confidence built over years.

It is not polished. But it works.

And that is where the comparison with Sri Lanka becomes less about what we lack and more about what we already have.

Back home, the three-wheeler has long been part of daily life — so familiar that it is often discussed only in terms of its problems. There are frequent complaints about fares, refusals or the absence of meters. More recently, the industry itself has become entangled in politics — from fuel subsidies to regulatory debates, from election-time promises to periodic crackdowns.

In that process, the conversation has shifted. The three-wheeler is often treated as a problem to be managed, rather than a service to be strengthened.

Yet, seen through the experience of Dhaka, Sri Lanka’s system begins to look far more settled — and, in many ways, ahead.

There is a growing structure in place. Meters, while not perfect, are widely recognised. Ride-hailing apps have added transparency and reduced uncertainty for passengers. There are clearer expectations on both sides — driver and commuter alike. Even small details, such as designated parking areas in parts of Colombo or the increasing standard of vehicles, point to an industry slowly moving towards professionalism.

Just as importantly, there is a human element that remains intact.

In Sri Lanka, a three-wheeler ride is rarely just a transaction. Drivers talk. They offer directions, comment on the day’s news, or share local knowledge. The ride becomes part of the social fabric, not just a means of getting from one point to another.

In Dhaka, the scale of the city leaves less room for that. The interaction is quicker, more direct, shaped by urgency. The service is essential, but it is under constant pressure.

What stands out, across both countries, is that the three-wheeler is not a temporary or outdated mode of transport. It is a necessity in dense, fast-growing Asian cities — one that fills gaps no rail or bus system can fully address.

Large infrastructure projects, like light rail, are important. They bring efficiency and long-term capacity. But they cannot replace the flexibility of a three-wheeler. They cannot reach into narrow streets, respond instantly to demand or provide that crucial last-mile connection.

That is why, even in a city that has invested heavily in modern rail, Dhaka still runs on three wheels.

For Sri Lanka, the lesson is not simply about what could have been built, but about what should be better managed and valued.

The three-wheeler industry does not need to be politicised at every turn. It needs steady regulation — clear fare systems, proper licensing, safety standards — alongside encouragement and recognition. It needs to be seen as part of the solution to urban transport, not as a side issue.

Because for thousands of drivers, it is a livelihood. And for millions of passengers, it is the most immediate and reliable form of mobility.

The tuk-tuk may not feature in grand policy speeches or infrastructure blueprints. It does not run on elevated tracks or attract international attention. But on the ground, where daily life unfolds, it continues to do what larger systems often struggle to do — show up, adapt and keep moving.

And after watching Dhaka’s streets — crowded, relentless, yet functioning — that small, three-wheeled vehicle feels less like something to argue over and more like something to get right.

(The writer is an Attorney-at-Law with over a decade of experience specialising in civil law, a former Board Member of the Office of Missing Persons and a former Legal Director of the Central Cultural Fund. He holds an LLM in International Business Law)

 

by Sampath Perera recently in Dhaka, Bangladesh 

Continue Reading

Features

Dubai scene … opening up

Published

on

Seven Notes: Operating in Dubai

According to reports coming my way, the entertainment scene, in Dubai, is very much opening up, and buzzing again!

After a quieter few months, May is packed with entertainment and the whole scene, they say, is shifting back into full swing.

The Seven Notes band, made up of Sri Lankans, based in Dubai, are back in the spotlight, after a short hiatus, due to the ongoing Middle East problems.

On 18th April they did Legends Night at Mercure Hotel Dubai Barsha Heights; on Thursday, 9th May, they will be at the Sports Bar of the Mercure Hotel for 70s/80s Retro Night; on 6th June, they will be at Al Jadaf Dubai to provide the music for Sandun Perera live in concert … and with more dates to follow.

These events are expected to showcase the band’s evolving sound, tighter stage coordination, and stronger audience engagement.

With each performance, the band aims to refine its identity and build a loyal following within Dubai’s vibrant nightlife and event scene.

Pasindu Umayanga: The group’s new vocalist

What makes Seven Notes standout is their versatility which has made the band a dynamic and promising act.

With a growing performance calendar, new talent integration, and international ambitions, the band is definitely entering a defining phase of its journey.

Dubai’s music industry, I’m told, thrives on diversity, energy, and audience connection, with live bands playing a crucial role in elevating events—from corporate shows to private concerts. Against this backdrop, Seven Notes is positioning itself not just as another band, but as a performance-driven musical unit focused on consistency and growth.

Adding fresh momentum to the group is Pasindu Umayanga who joins Seven Notes as their new vocalist. This move signals a strategic upgrade—not just filling a role, but strengthening the band’s front-line presence.

Looking beyond local stages, Seven Notes is preparing for an international tour, to Korea, in July.

Bassist Niluk Uswaththa: Spokesperson for Seven Notes

According to bassist Niluk Uswaththa, taking a band abroad means: Your sound must hold up against unfamiliar audiences, your performance must translate beyond language, and your discipline must be at a professional level.

“If executed well, this tour could redefine Seven Notes from a local band into an emerging international act,” added Niluk.

He went on to say that Dubai is not an easy market. It’s saturated with highly experienced, multi-genre bands that can adapt instantly to any crowd.

“To stand out consistently you need to have tight rehearsal discipline, unique sound identity (not just covers), strong stage chemistry, audience retention – not just applause.”

No doubt, Seven Notes is entering a critical growth phase—new member, multiple shows, and an international tour on the horizon. The opportunity is real, but so is the pressure.

However, there is talk that Seven Notes will soon be a recognised name in the regional music scene.

Continue Reading

Trending