Features
IMF programme: Is there a way out?
by Garvin Karunaratne
The Sri Lankan government is finding it hard to fulfil the regulations agreed upon with the IMF in the Houses of Parliament on April 28, 2023. However, there was no other option but to agree. According to Professor Vasanta Atukorale, the increases in taxes amount to a staggering 441%. The IMF’s experts fail to understand that implementing these regulations will cause untold hardships to the public and may even lead to a severe recession. Perhaps, this is the ulterior motive of the IMF.
Sri Lanka was not a dollar in foreign debt in 1977. From 1948 to 1977, the country made strides in development, opening up land, colonisation schemes for people, building tanks, developing agriculture and industries, and implementing welfare measures. The country became self-sufficient in paddy production, its staple crop, and produced all its textiles. This development effort involved agricultural marketing, agricultural extension, small industry, and district administration. The golden era of Premier Dudley Senanayake’s rule, lasting 29 years, was where the people enjoyed freedom and development.
The IMF abolished many development programmes in 1978. The problem began with the Structural Adjustment Programme imposed on Sri Lanka by the IMF when President J. R. Jayewardene sought assistance from the IMF, which gave loans freely on condition that Sri Lanka follow neoliberal economics and allowed the rich to spend foreign funds that the country had obtained as loans. This led to foreign debt. Worse still, President Jayewardene and his Minister of Finance Ronnie de Mel were made to believe that this path would lead to development.
In 1978, the IMF even gave grace periods, when Sri Lanka did not need to pay the interest and repayment instalments on loans so that the leaders would not be burdened with the repayment. The burden was shifted to future leaders.
Many specialists have proposed alternative ways of dealing with the current crisis. The World Bank Country Director Fariz Hadad Zerous has said that the current crisis is not a temporary liquidity shock but the result of longstanding structural weaknesses, poor governance, and a public debt that is unsustainable. However, the World Bank Country Director needs to be told that it was the IMF itself that is to blame for taking Sri Lanka on this path of living on loans.
From Independence in 1948 to 1977, Sri Lanka’s development was done through various development programmes that involved people in production aimed at self-reliance. The IMF abolished all the developmental departmental activities and confined the administrators to the barracks while coming up with the ludicrous basis that the private sector was to be the engine of growth. It was this decision of the IMF imposed in 1978 that crippled the development of the country. The private sector has self-aggrandizement as its aim. The development of the country is not their concern.
Until 1977, the country had import restrictions in place to ensure that it could manage with its earnings. The development of the country was entirely run with local currency – the rupee – collected by taxes supplemented by money printing, while the foreign exchange that came in through exports and services was precisely collected and used for the purchase of importing essentials. Very small allocations were made for imports. The total expenditure of Sri Lanka in 1961/62 was Rupees 2013 million, all local rupees. The 1963 Budget Speech of Minister T. B. Illangaratne tells how imports of textiles were reduced by a third, powerlooms were imported, but imports of cars were banned.
The Budget Speech outlines the strategy to manage imports within the available expenditure, highlighting its potential as a developmental exercise. Minister Illangaratne said, “We stopped the import of coffee to increase coffee production” (p.1237). I met Minister Illangaratne in 1971, when I needed his approval for foreign exchange allocation to import dyes for my Crayon Factory in Morawaka. The Ministry of Industries refused to provide us with an import allocation because we were a cooperative. However, I learned that the Controller of Imports was about to allow an allocation of foreign exchange for the import of crayons. So, I intervened and convinced the Import Controller that by giving our Crayon Factory a foreign exchange allocation for the import of dyes, he could cancel all imports. I needed Minister Illangaratne’s approval as this procedure had never been done before. When I showed him the crayons we produced, I remember the gleam on his face. He insisted that I establish a Crayon Factory in Kolonnawa, his electorate, and ordered the total cancellation of all imports on crayons. That is how statesmen served the national interest.
Today’s economic meltdown, with foreign debt amounting to $56 billion, did not come without warning. In 1990, I began a series of lectures on Third World Studies at the Westminster Adult Education Institute, where I discussed how Sri Lanka’s foreign debt was increasing. By 1989, the foreign debt had increased to $5 billion. In 1992, the South Asian Forum of the University of London invited me to speak on Sri Lanka, and I commented that foreign aid could serve as an engine of growth if handled prudently. However, foreign aid could lead to chronic debt, poverty, high unemployment, and even uprisings if accepted in a non-developmental manner. I also mentioned that the healthy balance of payments achieved during the period of 1970-1976 turned into a nightmare of adverse deficits due to the governments that came into power since 1977 (From How the IMF Ruined Sri Lanka & Alternative Programmes of Success, Godage, 2006).
The foreign debt ballooned to $9.5 billion by the end of the UNP rule, $11.5 billion by 2005, $42.9 billion at the end of 2014, and $56 billion by 2019. Initially, the IMF gave loans, but it later backed out, and the country had to raise funds through other sources on less attractive terms. International sovereign bonds were obtained at high interest, as much as $4 billion during the Rajapaksa Regime of 2008-2015 and $10 billion ISB loans during 2015-2019. It is important to note that President Gotabhaya did not create the foreign debt. However, he made wrong decisions, such as providing a massive tax break to large enterprises and his infamous agricultural extension programme of using compost and banning the use of inorganic fertilisers, which led to massive crop failure. It is difficult to imagine a successful military commander failing to act forcefully in the interests of the country, but it did happen. The cause of Sri Lanka’s total economic meltdown lies in the salient features of the Structural Adjustment Programme imposed on Sri Lanka since the end of 1977. We have not used the loans for any purpose in development but lived extravagantly on loans, as dictated by the IMF. Corruption and politics in decision-making also aggravated distress, but the salient factor is that Sri Lanka started living on loans and abandoned development programmes. The IMF even disbanded the Planning Department and confined all development workers to the barracks.
It is unfortunate to note that the IMF’s $3 billion loan provisions for Sri Lanka do not include any measures to increase the country’s productivity and boost people’s incomes. The IMF’s focus is primarily on increasing the tax base, restoring price stability, restructuring debt, rebuilding reserves, and enabling the country to purchase essential goods from abroad in order to put it on a growth path. The Central Bank is expected to purchase foreign exchange worth $1.4 billion to rebuild reserves. According to the Financial Times, the reforms also involve addressing corruption and inefficiency at state-owned enterprises, combating inflation, recapitalising the banking sector, and overhauling the tax system, which currently sees half of the country’s taxpayers paying less than 5% of their income to the state.
However, the IMF seems to overlook the fact that taxes are collected in local currency and do not have any direct impact on the repayment of foreign debts. Therefore, Sri Lanka’s only viable option is to implement import substitution programmes that will reduce the country’s dependence on imports and simultaneously generate incomes for the people. The IMF has not prohibited such productivity-enhancing measures, and it is up to Sri Lanka’s leaders to devise programmes that can increase production.
Sri Lanka has previous experience with successful development programmes such as the Divisional Development Councils Program (DDCP) implemented by the government from 1970-1977. The DDCP provided employment training to 33,200 youths, established agricultural farms, and set up small industries. Many Districts also established small agricultural farms and industries, such as the Mechanised Boatyard at Matara, which produced 35 seaworthy fishing inboard motor boats a year and a Cooperative Crayon Factory, which had country-wide sales. These were established in a short period, within two to three and a half months, respectively.
Employment creation programmes that can also boost production have proven successful, such as the Youth Self Employment Programme established by the author in Bangladesh, which has created three million entrepreneurs and is now recognised as the world’s most successful employment creation programme.
It is worth noting that since Sri Lanka started following the IMF’s policies in 1977, no new development programmes have been implemented to reduce poverty, develop the country’s resources, or train people to make what is imported. The author highlights the work of previous statesmen in implementing successful development programmes, which can serve as a model for current leaders.
In conclusion, it is crucial for Sri Lanka’s leaders to establish programmes that will produce what is currently imported and create incomes for the people while simultaneously reducing the country’s foreign exchange expenditure on imports.
(Dr. Karunaratne is a former Government Agent and Commonwealth Fund Advisor to the Ministry of Labour and Manpower, Bangladesh 1981-1983.)
Features
Lasting solutions require consensus
Problems and solutions in plural societies like Sri Lanka’s which have deep rooted ethnic, religious and linguistic cleavages require a consciously inclusive approach. A major challenge for any government in Sri Lanka is to correctly identify the problems faced by different groups with strong identities and find solutions to them. The durability of democratic systems in divided societies depends less on electoral victories than on institutionalised inclusion, consultation, and negotiated compromise. When problems are defined only through the lens of a single political formation, even one that enjoys a large electoral mandate, such as obtained by the NPP government, the policy prescriptions derived from that diagnosis will likely overlook the experiences of communities that may remain outside the ruling party. The result could end up being resistance to those policies, uneven implementation and eventual political backlash.
A recent survey done by the National Peace Council (NPC), in Jaffna, in the North, at a focus group discussion for young people on citizen perception in the electoral process, revealed interesting developments. The results of the NPC micro survey support the findings of the national survey by Verite Research that found that government approval rating stood at 65 percent in early February 2026. A majority of the respondents in Jaffna affirm that they feel safer and more fairly treated than in the past. There is a clear improving trend to be seen in some areas, but not in all. This survey of predominantly young and educated respondents shows 78 percent saying livelihood has improved and an equal percentage feeling safe in daily life. 75 percent express satisfaction with the new government and 64 percent believe the state treats their language and culture fairly. These are not insignificant gains in a region that bore the brunt of three decades of war.
Yet the same survey reveals deep reservations that temper this optimism. Only 25 percent are satisfied with the handling of past issues. An equal percentage see no change in land and military related concerns. Most strikingly, almost 90 percent are worried about land being taken without consent for religious purposes. A significant number are uncertain whether the future will be better. These negative sentiments cannot be brushed aside as marginal. They point to unresolved structural questions relating to land rights, demilitarisation, accountability and the locus of political power. If these issues are not addressed sooner rather than later, the current stability may prove fragile. This suggests the need to build consensus with other parties to ensure long-term stability and legitimacy, and the need for partnership to address national issues.
NPP Absence
National or local level problems solving is unlikely to be successful in the longer term if it only proceeds from the thinking of one group of people even if they are the most enlightened. Problem solving requires the engagement of those from different ethno-religious, caste and political backgrounds to get a diversity of ideas and possible solutions. It does not mean getting corrupted or having to give up the good for the worse. It means testing ideas in the public sphere. Legitimacy flows not merely from winning elections but from the quality of public reasoning that precedes decision-making. The experience of successful post-conflict societies shows that long term peace and development are built through dialogue platforms where civil society organisations, political actors, business communities, and local representatives jointly define problems before negotiating policy responses.
As a civil society organisation, the National Peace Council engages in a variety of public activities that focus on awareness and relationship building across communities. Participants in those activities include community leaders, religious clergy, local level government officials and grassroots political party representatives. However, along with other civil society organisations, NPC has been finding it difficult to get the participation of members of the NPP at those events. The excuse given for the absence of ruling party members is that they are too busy as they are involved in a plenitude of activities. The question is whether the ruling party members have too much on their plate or whether it is due to a reluctance to work with others.
The general belief is that those from the ruling party need to get special permission from the party hierarchy for activities organised by groups not under their control. The reluctance of the ruling party to permit its members to join the activities of other organisations may be the concern that they will get ideas that are different from those held by the party leadership. The concern may be that these different ideas will either corrupt the ruling party members or cause dissent within the ranks of the ruling party. But lasting reform in a plural society requires precisely this exposure. If 90 percent of surveyed youth in Jaffna are worried about land issues, then engaging them, rather than shielding party representatives from uncomfortable conversations, is essential for accurate problem identification.
North Star
The Leader of the Lanka Sama Samaja Party (LSSP), Prof Tissa Vitarana, who passed away last week, gave the example for national level problem solving. As a government minister he took on the challenge the protracted ethnic conflict that led to three decades of war. He set his mind on the solution and engaged with all but never veered from his conviction about what the solution would be. This was the North Star to him, said his son to me at his funeral, the direction to which the Compass (Malimawa) pointed at all times. Prof Vitarana held the view that in a diverse and plural society there was a need to devolve power and share power in a structured way between the majority community and minority communities. His example illustrates that engagement does not require ideological capitulation. It requires clarity of purpose combined with openness to dialogue.
The ethnic and religious peace that prevails today owes much to the efforts of people like Prof Vitarana and other like-minded persons and groups which, for many years, engaged as underdogs with those who were more powerful. The commitment to equality of citizenship, non-racism, non-extremism and non-discrimination, upheld by the present government, comes from this foundation. But the NPC survey suggests that symbolic recognition and improved daily safety are not enough. Respondents prioritise personal safety, truth regarding missing persons, return of land, language use and reduction of military involvement. They are also asking for jobs after graduation, local economic opportunity, protection of property rights, and tangible improvements that allow them to remain in Jaffna rather than migrate.
If solutions are to be lasting they cannot be unilaterally imposed by one party on the others. Lasting solutions cannot be unilateral solutions. They must emerge from a shared diagnosis of the country’s deepest problems and from a willingness to address the negative sentiments that persist beneath the surface of cautious optimism. Only then can progress be secured against reversal and anchored in the consent of the wider polity. Engaging with the opposition can help mitigate the hyper-confrontational and divisive political culture of the past. This means that the ruling party needs to consider not only how to protect its existing members by cloistering them from those who think differently but also expand its vision and membership by convincing others to join them in problem solving at multiple levels. This requires engagement and not avoidance or withdrawal.
by Jehan Perera
Features
Unpacking public responses to educational reforms
As the debate on educational reforms rages, I find it useful to pay as much attention to the reactions they have excited as we do to the content of the reforms. Such reactions are a reflection of how education is understood in our society, and this understanding – along with the priorities it gives rise to – must necessarily be taken into account in education policy, including and especially reform. My aim in this piece, however, is to couple this public engagement with critical reflection on the historical-structural realities that structure our possibilities in the global market, and briefly discuss the role of academics in this endeavour.
Two broad reactions
The reactions to the proposed reforms can be broadly categorised into ‘pro’ and ‘anti’. I will discuss the latter first. Most of the backlash against the reforms seems to be directed at the issue of a gay dating site, accidentally being linked to the Grade 6 English module. While the importance of rigour cannot be overstated in such a process, the sheer volume of the energies concentrated on this is also indicative of how hopelessly homophobic our society is, especially its educators, including those in trade unions. These dispositions are a crucial part of the reason why educational reforms are needed in the first place. If only there was a fraction of the interest in ‘keeping up with the rest of the world’ in terms of IT, skills, and so on, in this area as well!
Then there is the opposition mounted by teachers’ trade unions and others about the process of the reforms not being very democratic, which I (and many others in higher education, as evidenced by a recent statement, available at https://island.lk/general-educational-reforms-to-what-purpose-a-statement-by-state-university-teachers/ ) fully agree with. But I earnestly hope the conversation is not usurped by those wanting to promote heteronormativity, further entrenching bigotry only education itself can save us from. With this important qualification, I, too, believe the government should open up the reform process to the public, rather than just ‘informing’ them of it.
It is unclear both as to why the process had to be behind closed doors, as well as why the government seems to be in a hurry to push the reforms through. Considering other recent developments, like the continued extension of emergency rule, tabling of the Protection of the State from Terrorism Act (PSTA), and proposing a new Authority for the protection of the Central Highlands (as is famously known, Authorities directly come under the Executive, and, therefore, further strengthen the Presidency; a reasonable question would be as to why the existing apparatus cannot be strengthened for this purpose), this appears especially suspect.
Further, according to the Secretary to the MOE Nalaka Kaluwewa: “The full framework for the [education] reforms was already in place [when the Dissanayake government took office]” (https://www.wsws.org/en/articles/2025/08/12/wxua-a12.html, citing The Morning, July 29). Given the ideological inclinations of the former Wickremesinghe government and the IMF negotiations taking place at the time, the continuation of education reforms, initiated in such a context with very little modification, leaves little doubt as to their intent: to facilitate the churning out of cheap labour for the global market (with very little cushioning from external shocks and reproducing global inequalities), while raising enough revenue in the process to service debt.
This process privileges STEM subjects, which are “considered to contribute to higher levels of ‘employability’ among their graduates … With their emphasis on transferable skills and demonstrable competency levels, STEM subjects provide tools that are well suited for the abstraction of labour required by capitalism, particularly at the global level where comparability across a wide array of labour markets matters more than ever before” (my own previous piece in this column on 29 October 2024). Humanities and Social Sciences (HSS) subjects are deprioritised as a result. However, the wisdom of an education policy that is solely focused on responding to the global market has been questioned in this column and elsewhere, both because the global market has no reason to prioritise our needs as well as because such an orientation comes at the cost of a strategy for improving the conditions within Sri Lanka, in all sectors. This is why we need a more emancipatory vision for education geared towards building a fairer society domestically where the fruits of prosperity are enjoyed by all.
The second broad reaction to the reforms is to earnestly embrace them. The reasons behind this need to be taken seriously, although it echoes the mantra of the global market. According to one parent participating in a protest against the halting of the reform process: “The world is moving forward with new inventions and technology, but here in Sri Lanka, our children are still burdened with outdated methods. Opposition politicians send their children to international schools or abroad, while ours depend on free education. Stopping these reforms is the lowest act I’ve seen as a mother” (https://www.newsfirst.lk/2026/01/17/pro-educational-reforms-protests-spread-across-sri-lanka). While it is worth mentioning that it is not only the opposition, nor in fact only politicians, who send their children to international schools and abroad, the point holds. Updating the curriculum to reflect the changing needs of a society will invariably strengthen the case for free education. However, as mentioned before, if not combined with a vision for harnessing education’s emancipatory potential for the country, such a move would simply translate into one of integrating Sri Lanka to the world market to produce cheap labour for the colonial and neocolonial masters.
According to another parent in a similar protest: “Our children were excited about lighter schoolbags and a better future. Now they are left in despair” (https://www.newsfirst.lk/2026/01/17/pro-educational-reforms-protests-spread-across-sri-lanka). Again, a valid concern, but one that seems to be completely buying into the rhetoric of the government. As many pieces in this column have already shown, even though the structure of assessments will shift from exam-heavy to more interim forms of assessment (which is very welcome), the number of modules/subjects will actually increase, pushing a greater, not lesser, workload on students.

A file photo of a satyagraha against education reforms
What kind of education?
The ‘pro’ reactions outlined above stem from valid concerns, and, therefore, need to be taken seriously. Relatedly, we have to keep in mind that opening the process up to public engagement will not necessarily result in some of the outcomes, those particularly in the HSS academic community, would like to see, such as increasing the HSS component in the syllabus, changing weightages assigned to such subjects, reintroducing them to the basket of mandatory subjects, etc., because of the increasing traction of STEM subjects as a surer way to lock in a good future income.
Academics do have a role to play here, though: 1) actively engage with various groups of people to understand their rationales behind supporting or opposing the reforms; 2) reflect on how such preferences are constituted, and what they in turn contribute towards constituting (including the global and local patterns of accumulation and structures of oppression they perpetuate); 3) bring these reflections back into further conversations, enabling a mutually conditioning exchange; 4) collectively work out a plan for reforming education based on the above, preferably in an arrangement that directly informs policy. A reform process informed by such a dialectical exchange, and a system of education based on the results of these reflections, will have greater substantive value while also responding to the changing times.
Two important prerequisites for this kind of endeavour to succeed are that first, academics participate, irrespective of whether they publicly endorsed this government or not, and second, that the government responds with humility and accountability, without denial and shifting the blame on to individuals. While we cannot help the second, we can start with the first.
Conclusion
For a government that came into power riding the wave of ‘system change’, it is perhaps more important than for any other government that these reforms are done for the right reasons, not to mention following the right methods (of consultation and deliberation). For instance, developing soft skills or incorporating vocational education to the curriculum could be done either in a way that reproduces Sri Lanka’s marginality in the global economic order (which is ‘system preservation’), or lays the groundwork to develop a workforce first and foremost for the country, limited as this approach may be. An inextricable concern is what is denoted by ‘the country’ here: a few affluent groups, a majority ethno-religious category, or everyone living here? How we define ‘the country’ will centrally influence how education policy (among others) will be formulated, just as much as the quality of education influences how we – students, teachers, parents, policymakers, bureaucrats, ‘experts’ – think about such categories. That is precisely why more thought should go to education policymaking than perhaps any other sector.
(Hasini Lecamwasam is attached to the Department of Political Science, University of Peradeniya).
Kuppi is a politics and pedagogy happening on the margins of the lecture hall that parodies, subverts, and simultaneously reaffirms social hierarchies.
Features
Chef’s daughter cooking up a storm…
Don Sherman was quite a popular figure in the entertainment scene but now he is better known as the Singing Chef and that’s because he turns out some yummy dishes at his restaurant, in Rajagiriya.
However, now the spotlight is gradually focusing on his daughter Emma Shanaya who has turned out to be a very talented singer.
In fact, we have spotlighted her in The Island a couple of times and she is in the limelight, once gain.
When Emma released her debut music video, titled ‘You Made Me Feel,’ the feedback was very encouraging and at that point in time she said “I only want to keep doing bigger and greater things and ‘You Made Me Feel’ is the very first step to a long journey.”
Emma, who resides in Melbourne, Australia, is in Sri Lanka, at the moment, and has released her very first Sinhala single.
“I’m back in Sri Lanka with a brand new single and this time it’s a Sinhalese song … yes, my debut Sinhala song ‘Sanasum Mawana’ (Bloom like a Flower).
“This song is very special to me as I wrote the lyrics in English and then got it translated and re-written by my mother, and my amazing and very talented producer Thilina Boralessa. Thilina also composed the music, and mix and master of the track.”
Emma went on to say that instead of a love song, or a young romance, she wanted to give the Sri Lankan audience a debut song with some meaning and substance that will portray her, not only as an artiste, but as the person she is.
Says Emma: “‘Sanasum Mawana’ is about life, love and the essence of a woman. This song is for the special woman in your life, whether it be your mother, sister, friend, daughter or partner. I personally dedicate this song to my mother. I wouldn’t be where I am right now if it weren’t for her.”
On Friday, 30th January, ‘Sanasum Mawana’ went live on YouTube and all streaming platforms, and just before it went live, she went on to say, they had a wonderful and intimate launch event at her father’s institute/ restaurant, the ‘Don Sherman Institute’ in Rajagiriya.
It was an evening of celebration, good food and great vibes and the event was also an introduction to Emma Shanaya the person and artiste.
Emma also mentioned that she is Sri Lanka for an extended period – a “work holiday”.
“I would like to expand my creativity in Sri Lanka and see the opportunities the island has in store for me. I look forward to singing, modelling, and acting opportunities, and to work with some wonderful people.
“Thank you to everyone that is by my side, supporting me on this new and exciting journey. I can’t wait to bring you more and continue to bloom like a flower.”
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