Editorial
Debating fait accompli
Friday 21st April, 2023
Parliament is going to debate the government’s agreement with the IMF, which has approved USD 3 billion for Sri Lanka under the Extended Fund Facility Arrangement. The debate is scheduled to take place from 26 to 28 April, we are told. Public finance is the province of Parliament, which should scrutinise the country’s agreements with international lending agencies, etc. But the one between the government and the IMF is now a fait accompli, and there is absolutely nothing that Parliament can do about it, at this stage, even if it is found to be detrimental to the country’s interests. There’s the rub. So, what is the use of having a debate thereon, one may ask.
The government dipped into the country’s meagre foreign exchange reserves, expecting a deus ex machina from Beijing, and finally opted for a shameful debt default. Having blundered by refusing to seek the IMF’s help in time and thereby bankrupted the economy, the government had no bargaining power when it chose to beg for a bailout. It was left with no alternative but to agree to anything to secure a loan. Beggars are said to be no choosers, and it is only natural that the IMF has imposed constricting aid conditions. The Opposition has been blowing hot and cold on IMF assistance. It urged the government to seek an IMF intervention, and now it is finding fault with the loan conditions. What one gathers from the utterances of the Opposition bigwigs is that they expect the IMF to grant loans without conditions; some of them have even warned that they will not honour some of the loan conditions if they form a government. These worthies are living in cloud cuckoo land. They seem to be believing in their own rhetoric. They should stop trying to hoodwink the public. The blame for the present economic crisis should be apportioned to the Opposition MPs as well because they were in the governments that were notorious for reckless borrowing, waste and corruption.
The country is in the current predicament because Parliament neglected its fiduciary duties. It should have taken up the debt crisis years ago and discussed ways and means of sorting out the economy. Some of its members have had the chutzpah to claim that they had been unaware of the parlous state of the economy until the government decided to default on debt! They are not fit to be legislators! There is no need for special briefings for them on the state of the economy; Central Bank and Finance Ministry reports are available to them, and anyone with a nodding acquaintance with economics and statistics would have known that something was terribly wrong with the country’s foreign reserves.
It is not difficult to predict the outcome of the parliamentary debate to be held on the government’s agreement with the IMF. The House is very likely to be divided along party lines with the government MPs supporting the agreement and others opposing it for the consumption of the public. A division will be called and the ayes will have it because the government can still muster a simple majority in the House. The possibility of some Opposition MPs backing the government with a view to securing ministerial posts cannot be ruled out.
What Parliament should take up for debate urgently, in our book, is the delay in taking legal action to secure compensation for the unprecedented environmental disaster caused by the sinking of X-Press Pearl ship in 2021. It is being claimed in some quarters that Sri Lanka will be able to obtain as much as USD 6.2 billion from the shipping company concerned if a case is filed post-haste. Legal experts have warned that time is fast running out. No less a person than Minister of Justice Dr. Wijeyadasa Rajapakse has alleged that someone capable of influencing the litigation process has received USD 250 million in a questionable manner. Parliament must take up this issue of national importance urgently, and ensure that legal action will be initiated forthwith to obtain compensation for the X-Press Pearl disaster, and a high-level probe conducted into the Justice Minister’s serious allegation.
Editorial
Zimbabwe, here we come?
Monday 6th July, 2026
President Anura Kumara Dissanayake’s recent attempt in Parliament to defuse the ongoing controversy over his government’s plan to extend the retirement ages of the judges of the Supreme Court (SC) and the Court of Appeal (CA) has been in vain. He spoke at length, offering excuses for his failure to initiate action to fill judicial vacancies, but they did not sound convincing. They have only prompted the Bar Association of Sri Lanka (BASL) and other lawyers’ associations to reiterate their opposition to the prospect of a constitutional amendment being moved to raise the retirement ages of the SC and CA judges.
Addressing a public forum, on Saturday, BASL President Rajeev Amarasuriya reiterated his association’s opposition to the proposed move to change the SC and CA judges’ retirement ages arbitrarily. The BASL’s position has been endorsed by several legal associations, including the Colombo Law Society, the Colombo High Court Lawyers’ Association (CHCLA), LAWASIA, and the Commonwealth Lawyers’ Association (CLA).
CLA President Steven Thiru has gone to the extent of warning that Sri Lanka risks repeating Zimbabwe’s judicial crisis if it goes ahead with its controversial plan to extend the retirement ages of sitting superior court judges arbitrarily. Stating that the CLA did not object to the extension of the mandatory retirement age of judges, given changing demographic realities, Thiru pointed out that the danger lay in the politicised context and particularised application of the proposed move by the sitting executive and the legislature to alter the tenure of a few judges. He stated that Sri Lankan leaders had to heed “the sobering lesson of the Zimbabwean crisis; when a ruling government alters the rules of judicial longevity mid-stream, the damage to the legal fabric is severe. “If Sri Lanka proceeds with an ad hoc, non-transparent extension of Superior Court judges’ tenure without a broad consultative process, it risks plunging its legal system into a similar crisis of legitimacy,” he warned, noting that a structural policy matter must not be perceived as a personalised intervention; to do so would fundamentally invite public cynicism, compromise the appearance of judicial neutrality and shatter the very institutional stability that is to be protected.”
It is hoped that the JVP-NPP government will heed the concerns of lawyers’ associations, abandon its plan at issue and ensure that constitutional reforms follow proper consultation, without undermining judicial independence or public confidence in the judiciary. The JVP/NPP came to power promising a new Constitution and not politically motivated piecemeal constitutional amendments. It said in its election manifesto, inter alia, “A new constitution will be drafted and passed through a referendum with necessary changes, if any, after going through a public discourse” (A Thriving Nation: A Beautiful Life, 2024, p. 109).
As the CHCLA, in a letter to President Dissanayake, has rightly pointed out, “the Judicial Service of Sri Lanka is constituted by officers who ascend through a rigorous hierarchy … This progression is not merely a career ambition; it is a legitimate expectation, recognised and protected by the principles of natural justice and the law governing public service. Officers of the Judicial Service plan their professional and personal lives around the reasonable anticipation of such advancement.” The CHCLA’s views deserve serious consideration.
Meanwhile, Chief Justice Preethi Padman Surasena, addressing a group of newly recruited Magistrates, at Sri Lanka Judges’ Institute, recently, stressed the need for judicial officers to do their best to preserve public confidence in the judiciary. A country could be destroyed by a bad judiciary in the same way it could be devastated by natural disasters, the Chief Justice said, stressing the need to safeguard the integrity, independence and dignity of the judiciary. His message was loud and clear.
However, some factors that erode public confidence in the judiciary are beyond the control of judges. The alleged government move to extend the retirement ages of the judges of the SC and the CA is a case in point. It is widely seen as an instance of political interference with the judiciary. One can only hope that the Sr Lankan legal fraternity and international lawyers’ associations will be able to knock some sense into the JVP-NPP government, and prevent this country from facing the same fate as Zimbabwe, where a serious constitutional crisis erupted in 2021, when its Constitution was arbitrarily amended to change the judges’ retirement ages. That issue raised broader concerns about the separation of powers and judicial independence. The constitutional amendment undermined public confidence in courts and amounted to political interference with the judiciary. Another crisis is the last thing Sri Lanka needs at this juncture.
Editorial
Income status: Reality and challenges
The World Bank’s annual income reclassification, which takes effect every July 1, has placed Sri Lanka, Vietnam, the Philippines, Jordan and the Pacific state of Micronesia in the upper-middle income bracket.
Sri Lanka’s elevation to the upper-middle income status has gladdened many a heart. It is no mean achievement for a country emerging from a crippling economic crisis that led to foreign currency reserves woes, shortages, queues, prolonged power cuts, a steep rise in inflation, and unprecedented political upheavals. However, one should not lose sight of the fact that although the reclassification is a marker of resilience, Sri Lanka only narrowly crossed the threshold, according to economic analysts.
Sri Lanka will now face some challenges. The upper-middle income status generally indicates economic progress and can help improve investor confidence, which Sri Lanka perhaps needs more than anything else to rebuild its forex reserves and be ready to resume foreign debt repayment in earnest. However, a higher income category could reduce Sri Lanka’s access to concessional loans, grants and some forms of international assistance. Commercial borrowing generally carries higher interest rates and shorter repayment periods than concessional development loans.
Trade preference schemes such as the EU’s GSP and GSP+ have stood developing countries, such as Sri Lanka, in good stead. These trade concessions are based on specific eligibility criteria, not income classification alone, but moving into higher income categories can eventually affect eligibility under some preferential trade arrangements, as some economists have pointed out. There’s the rub.
The biggest challenge for Sri Lanka is to ensure that its economy will become more productive, competitive and resilient so that it can lessen its dependence on international assistance, with the help of sustainable growth and investment, as countries like Vietnam have done.
Policymakers should reflect on the state of the economy and ordinary Sri Lankans’ lot, which has not improved despite the country’s income classification upgrade. Such categorisations based on credible data may be technically sound and useful in making economic decisions, but they cannot be considered realistic and reliable yardsticks where the wealth distribution is concerned.
The upper-middle income status usually masks inequality. There are economic tools to gauge income inequality, which affects social stability, poverty levels, and access to education and healthcare, but they too have limitations. It is imperative that the issue of income inequality be addressed as a matter of national priority.
Sri Lanka faced an economic crisis in 2022, despite a previous income classification upgrade, mainly because it did not get its macroeconomic fundamentals right, and acted in a reckless manner. True, the Easter Sunday terror attacks and the Covid-19 epidemic took a heavy toll on the economy, but Sri Lanka would have been able to overcome their impact if its economic imperatives had not been subjugated to the political agenda of the government in power at that time.
If action had been taken to prevent a sharp drop in state revenue by keeping taxes at a realistic level and rationalising pandemic relief while seeking IMF assistance at the first signs of trouble, the economy may have been able to withstand internal and external shocks without going into a tailspin.
Sri Lanka should emulate Vietnam, whose income classification upgrade follows a different track and is a story of growth. Vietnam’s gross national income per capita exceeded the USD 4,636 threshold because of manufacturing export growth. Its GDP expanded at approximately 8 percent in 2025, driven by electronics and consumer goods assembly. Vietnam has reportedly set an ambitious goal of achieving the coveted high-income status by 2045. Sri Lanka, too, should raise the bar for itself and work towards achieving its economic goals.
Editorial
Reward cops, probe Excise officers
Saturday 4th July, 2026
The Police Department has its fair share of rogue elements who have brought the law enforcement authorities into disrepute and make them get bad press. But the police are not short of personnel who even go above and beyond the call of duty to nab lawbreakers and ensure public safety. Sadly, their good work often goes unappreciated.
Unit 2 of the Western Range (North) has done the police proud. On 28 June, its men and officers raided a house in Malabe, where illicit liquor was bottled, and arrested six suspects with as many as 18,000 bottles of illicit liquor.
The bottles of counterfeit arrack complete with security stickers and ready for distribution were virtually indistinguishable from the genuine products, according to investigators. Nobody knows how many bottles of counterfeit arrack had been produced there and how injurious the illicit brew is to health.
Under interrogation, the suspects revealed that the illicit brew had been distributed in the Eastern Province. On Thursday, the police team that conducted the Malabe raid rushed to Batticaloa, where they seized a large number of bottles of illicit liquor transported from Malabe. The police officers who took part in the raid deserve praise.
While the police were busy packing the bottles of illicit brew taken into custody and doing necessary paperwork, a group of Excise officers materialised, and claimed that the police had made a documentation error. Their intervention led to a recount of the bottles of counterfeit liquor in custody, but the allegation turned out to be baseless. Obviously, the Excise Department personnel did not take kindly to the police raid.
One of the police officers told the Excise officers some home truths, one being that the police were doing what the Excise Department should have done. One cannot but agree with him.
The police had to move in as the Excise officers had failed to carry out their duties and functions. The latter should have been able to trace the untested brew transported and sold illegally in liquor outlets in the East. It is possible that the Malabe brew, as it were, was distributed in other parts of the country as well.
Illicit liquor has claimed many lives in this country during the past several years and therefore the brew, seized in Malabe and in some parts of the Eastern Province, must be tested urgently to see if it contains harmful substances. One may recall that in January 2026, six people died in Wennappuwa after consuming arrack purchased from a licensed liquor outlet. Such tragedies occur due to contamination, counterfeit infiltration and supply-chain frauds.
As for the police raids in Malabe and the East, there is reason to believe that so many bottles of illicit liquor could not have been distributed and sold in licensed outlets, unbeknownst to the Excise Department personnel, who are paid with public funds to keep a watchful eye on liquor retailers, among others, and act on any transgressions. That the police had to do their job is an indictment of the Excise officers, especially those under whose nose the illicit brew was sold in the East.
A member of the police team which conducted the raid in the East has asked how the security stickers meant for the legally produced bottles of liquor got into the wrong hands. A thorough investigation should be conducted to ascertain whether Excise officers were involved in the liquor racket and why they confronted the police in the East instead of cooperating.
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