Midweek Review
Where have millions of USD invested in good governance and accountability projects et al gone?
USD 73 mn down the drain?
The US Embassy is on record as having said that USAID conducted a project at a cost of USD 73 mn during the Yahapalana administration (2015-2019) to enhance the efficiency of lawmakers and be responsive to the people they represent. In terms of this project, 50 Research Assistants of the Sri Lankan Parliament participated in a US-supported workshop meant to help MPs better hear and address the concerns of their constituents. The then US Ambassador Atul Keshap was quoted in an Embassy statement as having declared: “Developing the skills of Parliamentary staff helps MPs better serve the people” said US Ambassador Atul Keshap.“In turn, this will foster and strengthen the principles of good governance”, Ambassador Keshap added.
Both USAID and Sri Lanka Parliament should examine whether this particular project, as well as other programmes conducted since 2015, improved the quality of MPs and Ministers.
By Shamindra Ferdinando
At least on paper the subject of public finance is under the total control of Parliament. Chapter XVII of the Constitution forms the foundation of Parliament’s powers over all public finances. Parliament powers and authority over public finance are dealt by Article 148, Article 149, Article 150, Article 151, and Article 154R.
In terms of the Right to Information (RTI) Act (12 of 2016), The Island sought information from Parliament as regards projects implemented by external sponsors for Sri Lanka’s benefit over the years.
These foreign-funded projects were essentially meant to strengthen good governance, accountability, build civil society capacity et al. The publication of a clarification was requested on Sept. 05, 2023, in the wake of Parliament claiming, the day before, that it would receive USD 300 mn through a new cooperation framework for development programmes over the next five years. The announcement was made on Sept. 04, referring to newly appointed United Nations Resident Coordinator to Sri Lanka Marc-André Franche congratulating Speaker Mahinda Yapa Abeywardena on the adoption of the Anti-Corruption Act and the establishment of the Parliamentary Budget Office. They met on Oct. 01, 2023 with the participation of the Secretary General of the House Kushani Rohanadeera.
Despite having to eat humble pie, the House issued a clarification to correct its exaggerated communique when it was published in The Island, under the heading ‘Parliament to receive UN funding amounting to over USD 300 mn’ (Sept. 05, 2023 edition, The Island). Its Director, Legislative Services/Acting Director (Communications) Janakantha Silva on Sept. 06 stated that the USD 300 mn referred to in the previous statement, dated Sept. 04, 2023, was meant for all development programmes, not only for Parliament. The official didn’t indicate the amount allocated to Parliament.
As per our separate request for information, Parliament responded to five out of eight questions submitted in Sinhala by the writer. Of the three unanswered, the one that referred to Parliament was considered irrelevant by it, while declining to respond to the remaining two. The Island also sought information from the US Embassy in Colombo, as well as the EU mission here, as regards the funding made for various projects. Let me examine their responses against the backdrop of harsh criticism of Parliament for its failure to ensure control over public finance. Justice Minister Dr. Wijeyadasa Rajapakshe, PC, and Mahindananda Aluthgamage, MP, both elected on the Sri Lanka Podujana Peramuna (SLPP) ticket at the last parliamentary election in Aug. 2020, accused Speaker Mahinda Yapa Abeywardena (SLPP) of neglecting his duties and responsibilities as Chairman of the Constitutional Council (CC). They lambasted the CC as an utterly useless corrupt body. The CC consists of the Speaker, Premier Dinesh Gunawardena, Opposition Leader Sajith Premadasa, Nimal Siripala de Silva (President’s nominee), Sagara Kariyawasam (PM’s nominee), Kabir Hashim (Opp. Leader’s nominee), Dr. Prathap Ramanujam (nominated by PM and Opp. Leader), Dr. Mrs. Anula Wijesundere (nominated by PM and Opp. Leader) and Dr. Dinesha Samararatne (nominated by PM and Opp. Leader).
The CC hasn’t been able to appoint the 10th member due to disagreement between the Tamil National Alliance (TNA) and the rebel members of the SLPP parliamentary group. Lawmakers Rajapakshe and Aluthgamage went to the extent of declaring that those who had set properties, belonging to members of Parliament, ablaze in May last year should target CC members hereafter. They should be reminded that of the 10 members of CC, seven represented Parliament. The duo lambasted the Commission to Investigate Allegations of Bribery and Corruption (CIABOC) over its failure to address the issues at hand while also targeting revenue collecting authorities, namely the Inland Revenue, Customs and Excise Department. Dr. Rajapakshe declared that the country didn’t have to depend on the USD 2.9 bn bailout package if those responsible for revenue collection achieved what they were duty bound to do. Both lawmakers alleged that the entire revenue collection setup was corrupt at every level. The former President of the Bar Association charged that even junior employees of above-mentioned state institutions are procuring luxury apartments, while Aluthgamage accused a department head of owning property in the US and living a super luxury life.
- Mahinda Yapa (Since 2020)
- Ex-Speaker Karu Jayasuriya (2015-2019)
Parliament responds
(1) The Island: Would it be possible to know the agreements Parliament reached with foreign governments and organizations following parliamentary polls in 1989, 1994, 2000, 2004, 2015 and 2020 and the estimated worth of those projects?
Parliament:We work with the following partners since 2016, namely United Nations Development Programme (UNDP), Westminster Foundation for Democracy (WFD), United States Agency for International Development (USAID), SLPP-Sri Lanka Parliament Project (concluded in Sept. 2016), Strengthening Democratic Governance and Accountability Project (concluded in Nov. 2016), Inclusive Participatory Processes Project (IPPP), National Democratic Institute (NDI), International Republican Institute (IRI) and Friedrich Naumann Foundation for Freedom (concluded). Projects were carried out in line with agreements sans funds made available to Parliament. (Their response meant that there hadn’t been such projects prior to the advent of the UNP-SLFP coalition aka Yahapalanaya)
(2) The Island: What were the purposes of these projects and the years of implementation?
Parliament: With the backing of the UNDP, we implemented a three-year project (2017-2019) to meet /strengthen constitutional requirements within the parliamentary system and the same was extended for a further three-year period (2020-2023). (Interestingly, Parliament made no reference to high-profile USAID funds to strengthen accountability and democratic governance. The US Embassy is on record as having said the three-year project worth USD 13 mn – Rs 1.92 bn – announced in late Nov. 2016 was meant to broaden their support to the independent commissions, Ministries, and provincial and local levels of government as well as equal participation by men and women and other underrepresented groups in politics and leadership.)
(3) The Island: Were those foreign- funded projects subjected to audits and, if so, by whom?
Parliament: There was no need for an audit as sponsors provided experts for relevant programmes intended to improve and enhance knowledge and capacity of lawmakers and other parliamentary workers, foreign tours and other required services.
(4) The Island: Why weren’t they audited?
Parliament: Irrelevant as explained earlier.
(5) The Island: Is there a laid down procedure to finalize projects funded by external partners?
Parliament: The UNDP funded project, launched in June 2016, was meant to achieve seven objectives while also working with other development partners. There objectives were (1) strategic plans for Parliament (2) strengthening of Oversight Committee System and enhancement of lawmakers’ skills development (3) improvement to parliamentary procedures and their use (4) strengthening of research and policy examination (5) public relations and public participation in law process (6) strengthening of constitutional and administrative systems/structures and (7) increase in women representation in Parliament and thereby increase their role in the decisionmaking process.
(6) The Island: How many computers were received from China for members of Parliament and House officials during Yahapalanaya and their cost?
Parliament: We received 268 computers worth USD 287,491.64.
(7) The Island: India provided SLR 300 mn to build a village in memory of the late Ven. Maduluwawe Sobitha Thera who passed away in late 2016, having played a significant role in the 2015 change of government. The money was provided on a request made by Yahapalana Speaker Karu Jayasuriya. Were you able to complete that village building project?
Parliament: As Parliament didn’t have information regarding the said project, therefore the question cannot be answered.
(8) The Island: Did Parliament reach an agreement to spend UNDP funds (funds allocated from the USD 300 mn to be spent over a five-year period) with the participation of political parties represented in the current Parliament?
Parliament: As Parliament didn’t have information regarding the said project, therefore the question cannot be answered.
US Embassy explains
The US on Sept. 20, 2023 announced a further commitment of more than USD 19.23 mn (Rs 6.2 bn) in additional funds for bankrupt Sri Lanka. The US Embassy in Colombo declared that fresh funding made through USAID would support economic growth and democratic governance activities. The US has provided more than $2 billion (nearly Rs. 720 billion) in assistance to Sri Lanka since 1956. The writer sought to clarify some issues with the US Embassy.
Q: Would you please explain /describe ‘democratic governance activities’ referred to in the press release, dated Sept. 20, 2023. Have you reached consensus with the government on a set of such activities?
Embassy spokesperson:
USAID works in partnership with Sri Lanka and its government to strengthen inclusive governance, build a robust civil society, and promote the rule of law. USAID also works to improve Sri Lankans’ access to balanced and reliable news and partners with the government and the people of Sri Lanka to strengthen dialogue between multi-ethnic communities. In addition, USAID builds local capacity for disaster response and risk reduction.
Q: The USAID and Sri Lanka Parliament signed an agreement worth USD 13 mn in late 2016 to strengthen accountability and democratic governance. It was implemented over a period of three years. Did that project achieve anticipated objectives?
Embassy spokesperson:
The Strengthening Democratic Governance and Accountability Project (SDGAP) was a three-year (October 2016 to September 2019) USD13 mn project funded by USAID. It was developed and implemented in close consultation and collaboration with the government and Parliament of Sri Lanka. SDGAP helped the government to strengthen public accountability systems, improve government strategic planning and communication, policy reforms and implementation processes and, increase political participation of women and underrepresented groups in democratic governance. It also supported the government to strengthen communication with citizens and incorporate public participation in policymaking.
Q: If possible, please let me know the funds the US spent on the MCC project though it was not implemented
Embassy spokesperson: The United States did not sign an MCC compact with Sri Lanka in 2020 due to a lack of partner country engagement. The grant funds that had been intended for Sri Lanka were later reallocated to other eligible countries with economic development priorities to reduce poverty and stimulate growth.
Massive investments made by the UNDP and US through Parliament and elsewhere to strengthen democracy, good governance and accountability here appeared to have made no impact. The declaration of bankruptcy in May last year and the country having to bend its knees before the IMF for the 17th occasion proved that the Parliament hasn’t learnt a thing at all. Recent allegations that the CC had pathetically failed in its duties and responsibilities underscored the responsibility of the donors to be tough with utterly corrupt political leadership here. They, too, should be responsible for their taxpayers without using such funds to sabotage those countries by way of getting rid of regimes their own ‘Deep State’ find not to their liking or on other diabolical plans, especially to get those poor countries to toe their line.
Intrepid former Auditor General Gamini Wijesinghe said that Parliament should be held accountable for the ruination of the country. Wijesinghe, who held that post from Nov. 2015 to April 2019, said that the Sirisena-Wickremesinghe coalition diluted the National Audit Bill to such an extent that the enactment of the new law in July 2018 didn’t make any difference though that was a promise given by the Yahapalana campaign at the 2015 presidential election.
Wijesinghe recalled that despite the then government claiming foreign investment in various projects to strengthen good governance and accountability, hadn’t achieved anything at all. Declaration of bankruptcy in May 2022 amidst unprecedented turmoil proved the Parliament hadn’t met two primary responsibilities, namely control over public finance and enactment of new laws. Instead, the Yahapalana government abolished the time-tested 1953 Foreign Exchange Act in 2017and enacted a new Act that diluted regulatory powers exercised by the Central Bank. The accusations made in Parliament and outside that export proceeds amounting to over USD 50 bn that had been “parked abroad” should be examined taking into consideration the Parliament created an environment conducive for such unscrupulous practices.
Wijesinghe warned that further foreign investments would be wasted unless required constitutional amendments and new laws were enacted.
BASL action
The Bar Association, during Saliya Pieris’ tenure as its President, filed two fundamental rights applications in late March 2022 to pressure the then government to take tangible measures to address the developing economic crisis. The SC was moved against the government a few days before violent protests erupted outside the then President Gotabaya Rajapaksa’s private residence at Pangiriwatte, Mirihana. The BASL made the Attorney General, the Cabinet of Ministers, the Governor of the Central Bank, the Secretary to the Treasury, Secretaries to several Ministries, the Ceylon Electricity Board, the Ceylon Petroleum Corporation and the State Pharmaceutical Corporation as respondents. There hadn’t been similar action against the government before. These petitions were filed by Saliya Pieris PC, Deputy President Anura Meddegoda PC, Secretary, Rajeev Amarasuriya, Treasurer, Rajindh Perera and Assistant Secretary Pasindu Silva. By late Oct. 2022 however, the BASL decided to suspend action taken against the government. When the writer sought an explanation from the BASL as to why the cases that had been filed over the deterioration of the economy as the situation remained critical, Pieris said on Nov 02, 2022: “It was laid by not withdrawn. Our Counsel thought that at the moment there is nothing the court can do further. It can be revived again.” The BASL move eased pressure on the Wickremesinghe-Rajapaksa government.
The IMF prerequisites for the resumption of the bailout package meant that the government hadn’t taken measures to prevent those in authority from continuing waste, corruption, irregularities and mismanagement. That is the undeniable truth. State Finance Minister Shehan Semasinghe’s explanation does not hold water at all. The Anuradhapura district lawmaker should realize that the economy is in such a messy situation his efforts both in and outside Parliament sounds hollow. He is trying to defend the indefensible. The IMF prerequisites underscored that the lending body had absolutely no faith in the powers that be at every level. In fact, the IMF declared that the international community didn’t have confidence in the system in place.
The IMF’s Governance Diagnostic Assessment report is nothing but an indictment on Sri Lanka at every level and the most significant roadblock to financial recovery lies in Sri Lanka’s persistent failure to address its deep-rooted corruption. The following are the IMF’s demands (1) Establishment of an Advisory Committee by November 2023 to nominate commissioners for the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) (2) Disclosure of asset declarations of senior officials by July 2024 (3) Enactment of proceeds of crime legislation by April 2024 (4) Amendment of the National Audit Act (5) Finalization of implementation of regulations for beneficial ownership information and creating a public registry by April 2024 (6) Enactment of Public Procurement Law by December 2024 (7) Publishing reports on increasing competitive tendered procurement contracts, targeting agencies with low levels of competition (8) Requiring the publication of all public procurement contracts above LKRs 1 billion (9) Implementing the State-Owned Enterprise Reform Policy to ensure ethical management (10) Abolishing or suspending the Strategic Development Projects Office Act until a transparent process for evaluating proposals is established (11) Amending tax legislation to prevent unilateral tax changes without parliamentary approval (12) Implementing short-term anti-corruption measures within revenue departments to enhance oversight and sanctions (13) Exploring options for new management arrangements for the Employees Provident Fund to avoid conflicts of interest (14) Revising legislation, regulations, and processes for stronger oversight in the banking sector (15) Establishing an online digital land registry and ensuring progress in registering/titling-state land and (16) Expanding the resources and skills available to the Judicial Service Commission to strengthen justice.
It wouldn’t be fair to blame the Wickremesinghe-Rajapaksa government for the economic fallout. In fact, the SJB MPs who previously served the UNP and SLPP rebels, too, should be held accountable as all political parties, including the TNA and JVP, also contributed to the crisis but in varying degrees.
Actually, high profile foreign-funded projects are a mystery as the executive and legislature continued to cause further economic deterioration. A few months before the “public” chased out President Gotabaya Rajapaksa, the Justice Ministry, with funding from the EU, along with the UNDP and the United Nations Children’s Fund (UNICEF) launched a high profile Justice Reform (JURE) programme. That project was finalized in Feb. 2022 and to be implemented over a period of four and half years, received EU funding to the tune of EUR 18 million (approx. LKR 4 billion) and the UN for EUR 1 million (approx. LKR 225 million). Would it help change Sri Lanka?
Devastating accusations directed by the Justice Minister last week at the all-powerful Constitutional Council over its failure to do its duty despite being legislatively armed to the teeth highlighted the crisis Sri Lanka is in. One cannot forget that the Bar Association, too, received substantial amounts of US funding over the years without any independent audits, but the overall situation remains the same. Let me stress again that the IMF prerequisites indicate that regardless of big anti-corruption talk, Sri Lanka remains in the grip of an utterly corrupt political party and bureaucratic systems. While we like to concede that politicos are now to some extent circumspect due to the glare of the local and international spotlight directed at them and the fear of a fresh Aragalaya targeting all of them, the less we say about the corrupt bureaucracy that works hand in glove with them the better. The MPs even if they are all corrupt to the core are limited to just 225 in number, but the unscrupulous bureaucracy ever ready to point the finger at politicos to cover their sins are far worse and found at every turn in places like the Inland Revenue, Customs, Excise, RMV, police, courts, local authorities, ports etc., etc., is insurmountable. So CC better get cracking before the people go berserk because of their unbearable suffering reaching breaking point.
And most of all we must watch out for foreign elements working in not so mysterious ways to exploit our weaknesses to their ends, especially after what happened since the Pangiriwatte riots of last year followed by much more vicious acts on May 09 and July 09 of that year and just as mysteriously melting away, thereafter, like a thief in the night. If someone says it was the spontaneous reactions of an enraged public, some of it may be. But such persons should go and “tell that to the marines”!
Midweek Review
NPP drowning in sea of scams
The Opposition is pressing for a one-day debate on USD 2.5 mn Treasury theft, which is more like a daylight robbery that had been kept under wraps by Treasury mandarins till ‘Free Lawyers’ made it public. However, the government is strongly opposed to the Opposition proposal. The Opposition is seeking consensus among
different parties to intensify the campaign against the government, struggling to cope up with a spate of controversies. Against the backdrop of the devastating debate on the coal scam, the NPP seems reluctant to face another over the theft of Treasury funds.
By Shamindra Ferdinando
USD 2.5 mn brazen heist at the Treasury several months ago and the bigwigs there obviously dragging their feet over the matter till it was brought to light recently, thanks to the Free Lawyers movement, which has dampened the NPP’s enthusiasm for May Day. The Treasury fiasco humiliated the cocky NPP leadership against the backdrop of damning report issued by the National Audit Office (NAO) that found fault with the government for awarding the coal tender for 2025/2026 period to Trident Champhar Limited of India in violation of tender procedures. The NAO emphasised that the Indian company shouldn’t have even been considered for the tender.
Even after the exposure of the scandalous handling of the coal tender, the NPP, in spite of some rumblings within the party, remained confident of overcoming the growing accusations regarding governance issues. But, the sudden revelation of the loss suffered by the Treasury, and pathetic efforts made by the NPP to suppress the truth, has caused irreparable harm to the ruling party. The arrogant NPP will have to use May Day to defend the government. Instead of preaching to the masses ad nauseum the corruption allegations against previous administrations, the NPP would have to explain such massive failures/corruption, particularly the loss of USD 2.5 mn.
There hadn’t been a previous instance of such an incident at the Treasury. The NPP will have to answer questions posed by ‘Free Lawyers,’ a civil society group that first raised the Treasury issue. On behalf of ‘Free Lawyers,’ its President Maithri Gunaratne, PC, former Governor of several provinces Rajith Keerthi Tennakoon, and Attorney-at-Law Shiral Lakthikala, targeted the government over the unprecedented Treasury heist. The Opposition, too, censured the NPP, with SJB leader Sajith Premadasa, MP, Chairman of Public Finance Committee (CoPF) Dr. Harsha de Silva, MP, and United Republican Front (URF) taking the lead.
The NPP’s excuses, based on claimed raids carried out by hacker/hackers targeting the Treasury, are untenable. The NPP’s position cannot be defended or supported against growing criticism. The coal scam and Treasury fiasco dominated social media, with the Opposition, as well as ordinary citizens, having a field day at the expense of the NPP, a political party that accused its opponents of waste, corruption, irregularities and mismanagement. Its successful propaganda campaigns, at the presidential and parliamentary polls, in September and November, 2024, respectively, were centered on fighting corruption.
Their anti-corruption platform appealed to the people for obvious reasons. Against the backdrop of bankruptcy, declared in May, 2022, after failing to meet debt commitments, the electorate rallied around the NPP that thrived on waste, corruption, irregularities and mismanagement, perpetrated by previous governments. Having bagged the executive presidency in September, 2024, the NPP assured the electorate that the Parliament would be cleansed of evils at the general election. President Anura Kumara Dissanayake declared that the people have been vested with the responsibility of cleansing the Parliament. Dissanayake went a step further when he addressed a public gathering at the 18th mile post on the Negombo-Colombo road. The NPP leader, who also leads the JVP, asserted that there was no need for an Opposition in Parliament and the House should be filled with NPPers.
Dissanayake based his assertion essentially on two failed No-Confidence Motions (NCMs) moved against Ravi Karunanayake and Keheliya Rambukwella in 2016 and 2023, respectively. The NPP/JVP leader found fault with Yahapalanaya and the Wickremesinghe-Rajapaksa government for protecting the two wrongdoers, hence the call to cleanse Parliament.
The results of the parliamentary election proved that the electorate responded very favourably to Dissanayake’s call. Of the 225-seat Parliament, the NPP secured 159 seats, including 18 National List slots. Having accused previous governments of shielding wrongdoers, Dissanayake easily directed the NPP’s steamroller parliamentary group to defeat the NCM moved against Energy Minister Punyakumara Dissanayake (National List) on 10 April, just a few days after the NAO report exposed the coal scam.
First ex-MP as Treasury Secy.
If its own hands are clean, there is no doubt that the NPP now deeply regrets the appointment of ex-NPP National List MP Harshana Suriyapperuma as the Secretary to the Treasury and the Finance Ministry. That appointment was made in June 2025 to fill the vacancy created by the retirement of Mahinda Siriwardana who, along with Governor of the Central Bank Dr. Nandalal Weerasinghe, played a significant role in the country’s post-Aragalaya recovery programme.
Suriyapperuma, who had served as Deputy Minister of Finance and Planning for just seven months, before being appointed the Treasury Secretary/Finance Ministry Secretary, is under heavy fire for suppressing the truth. No less a person than CoPF Chairman Dr. de Silva publicly accused Suriyapperuma of trying to undermine his committee. The SJB has demanded Suriyapperuma’s immediate resignation. Dr. Anil Jayantha succeeded as Deputy Minister of Finance and Planning.
Those who inquired into the crisis-hit Treasury are of the belief that 53-year-old Suriyapperuma lacked the much required experience to fill the shoes of Mahinda Siriwardana. Perhaps, the breach at the Treasury could have been averted if an outsider was not brought in place of Siriwardena. The recent reportage of the incident revealed that Suriyapperuma had been aware of the breach and sought to avoid appearing before the CoPF. The NPP could have responded to the developing situation differently if an ex-MP hadn’t been entrusted with the task of steering the Treasury/Finance Ministry. To make matters worse, President Dissanayake holds the Finance portfolio.
Although the government declared that the theft of USD 2.5 mn had been reported to the Criminal Investigation Department (CID) after initial detection made in January this year, controversy surrounds the failure on the part of law enforcement authorities to bring it to the notice of the courts. Maithri Gunaratne, appearing in Hiru last Saturday (25), questioned why the police failed to inform the relevant Magistrate if the government lodged a complaint in that regard.
Australia has confirmed irregularities in payments owed to their government. Regardless of NPP efforts to blame it on hacker/hackers, the truth is clear. Payments have been made to an account that hadn’t been in the original agreement between the governments of Sri Lanka and Australia. That is the undeniable truth that the NPP cannot suppress by propaganda.
The NPP should be ashamed that such a fraud had been perpetrated on a country still struggling to cope up with the economic destruction caused by the UNP- and the SLFP-led governments with the help of “mission impossible” type roles played by outside interests, especially during Gotabaya Rajapaksa’s tenure using the JVP/Aragalaya.
The world knows how the UNP perpetrated the Treasury bond scams with the direct involvement of the then Governor of the Central Bank Arjuna Mahendran, in February 2015 and March 2016. Regardless of that intolerable scam, the UNP made a desperate attempt to retain the services of the Singaporean as the Governor of the Central Bank. Party leader and the then Prime Minister Ranil Wickremesinghe demanded the re-appointment of Mahendran. That despicable move had to be dropped due to massive Opposition protests and growing public discontent over the Treasury bond scams.
The first Treasury bond scam carried out on 27 February, 2015 caused a direct loss of approximately Rs. 2 billion. On the instructions of Mahendran, the Treasury suddenly and arbitrarily changed the process of issuing Treasury Bonds. According to media reports at that time, higher interest payments, over the next 30 years, caused a further loss of around Rs. 145 billion.
Then Mahendran struck again. Caused further direct losses of more than Rs. 4 billion to the government through the fraudulent increase in interest rates as a result of the Treasury Bond issues on 27th March, 2016 ,and 29th March, 2016, in order to provide an undue advantage to connected primary dealers by indulging in further pre-meditated bond scams.
NPP on back foot
The ruling party put on a brave face with lawmakers and various others trying to play down the incident at the Treasury. Some pathetically tried to compare various accusations directed at the Rajapaksas with the incident at the Treasury which they conveniently blamed on hacker/hackers.
The NPP is facing an explosive mixture of issues. Both the coal and Treasury scams have brought immense pressure on the national economy and caused automatic deterioration. The resignation of Punyakumara aka Kumara Jayakody over the coal scam indicated that defeating the NCM moved against him was a strategic political blunder. Had the NPP asked the tainted first time Minister to step down and appoint a Presidential Commission to go into the coal scam, the NPP could have averted a major disaster. However, the Energy Minister and the Energy Secretary Udayanga Hemapala had to resign before the Parliament took up the NCM. Had the top NPP leadership bothered to peruse the executive summary of the NAO presented to Parliament on 7 April, the Party wouldn’t have tried to defend the minister.
Having championed a corruption-free political party system and then won both the presidential and parliamentary polls on that platform, the NPP executed the shocking move to move 323 containers out of the Colombo Port, in January 2025, without even any cursory checks. Those who perpetrated that operation used continuing port congestion as an excuse to clear red-flagged containers without mandatory physical checking. The NPP recently thwarted a bid by Opposition lawmakers, representing a parliamentary committee inquiring into the illegal release of containers, to summon President Dissanayake.
That committee, headed by Justice Minister Attorney-at-Law Harshana Nanayakkara, owed an explanation as to why President Dissanayake, in his capacity as the Finance Minister, shouldn’t appear before a House committee. President Dissanayake very often addresses Parliament on crucial issues. As the Minister in charge of Finance, the President should offer an explanation regarding the high profile container issue that tarnished the NPP’s image.
Three major issues in hand, namely the release of 323 containers, coal scam and theft at the Treasury, regardless of what various apologists say on mainstream and social media, have caused irrevocable damage to the party, let alone escapades involving the likes of Speaker Jagath Wickramaratne, Minister Lal Kantha, etc. The impact on the NPP can be ascertained only at an election. With the public increasingly aware of the growing accusations against it, the ruling party will do whatever possible to put off long delayed Provincial Council elections. Facing the electorate against deepening discontent among the public seems to be a frightening situation. It would be interesting to observe how a House committee, headed by Foreign Minister Vijitha Herath, appointed to explore ways and means to conduct Provincial Council polls, address the issue at hand.
When compared with the three major issues, the resignation of Asoka Ranwala, as the Speaker, in December, 2024, over his failure to produce the much-touted educational qualifications, seems unnecessary. Of course, Ranwala’s case attracted tremendous public attention at that time as the public really believed the NPP wouldn’t deceive them. Ranwala’s lie shocked the public. NPP theoretician Prof. Ranjith Nirmal Dewasiri had no qualms in publicly attacking Ranwala in the wake of the NPP defending the Speaker. But, subsequent NPP actions revealed massive manipulations that shamed the first post-Aragalaya government.
Having accused Ranil Wickremesinghe of squandering as much as Rs 16 mn to join his wife Prof. Maithree in the UK in September, 2023, the NPP has ended up facing far more serious accusations. The incident at the Treasury should be sufficient for the Opposition to move NCM against the government. Of course, the NPP got the numbers in Parliament to easily defeat the NCM but the consequences would be devastating. Those who still talk of recovering the missing USD 2.5 mn must be living in a dreamland. The UNP is labelled with Treasury bond scams (2015 and 2016) and the SLPP faulted with tax cuts (2019) and sugar tax scam (2020). The NPP will have to live with the coal scam and Treasury theft. The NPP will no longer be able to parade on political platforms as paragons of virtue. It would be pertinent to mention that the Presidential Commission appointed to probe the procurement of coal, since 2009, would be able to produce a report to meet the NPP’s expectations. All indications point to that and 2026 is going to be far more challenging, both in and outside Parliament, than the previous year.
NDB fraud
Examined together, the massive fraud at the National Development Bank (NDB), perpetrated during the 2024-2026 period, and the Treasury incident, they underscore the vulnerability of the entire banking system. The 13.2 bn NDB fraud and theft of USD 2.5 mn from the Treasury exposed the regulator, the Central Bank of Sri Lanka, in respect of the NDB. The situation at the NDB cannot be examined without taking into consideration that Ernst & Young is the external auditors of the NDB and its Managing Partner Duminda Hulangamuwa functions as Senior Economic Adviser to President Dissanayake. People haven’t forgotten that Hulangamuwa had been mentioned as the possible successor of Mahinda Siriwardena before the NPP brought in Suriyapperuma. The Central Bank and Securities Exchange Commission (SEC) come under the purview of the Finance Ministry now embroiled in the expanding Treasury fiasco.
The Board of Directors at the NDB consists of Sriyan Cooray (Chairman), Kelum Edirisinghe (Director / Chief Executive Officer (Executive), Bernard Sinniah (Director /Non-Independent), Sujeewa Mudalige (Director /Independent), Kushan D’Alwis (Director/Independent), Kasturi Chellaraja (Director/Independent), Shweta Pandey (Director /Independent), Hasitha Premaratne (Director/Independent), Sanjaya Mohottala (Director (Non-Independent) and Shanil Fernando Director (Independent).
The issue at hand is how such a fraud went unnoticed for a considerable period of time and whether the top management simply ignored warning signs and the failure on the part of the regulator to intervene. Those who have read Mahinda Siriwardana’s ‘Sri Lanka’s Economic Revival: Reflections on the Journey from Crisis to Recovery’ would know the circumstances leading to the 2022 economic collapse. Soft spoken Siriwardana meticulously discussed how the then Central Bank leadership as well as the so-called economic leadership of the Pohottuwa party deliberately deceived President Gotabaya Rajapaksa. Siriwardena’s narrative is explosive. The book, launched before his retirement, with the participation of President Dissanayake, underscored the responsibility on the part of the political leadership and those running the banking system. Obviously Siriwardena’s work had no impact on the current dispensation as well as the top banking management.
The Opposition sees an apparent opportunity to heap pressure on the NPP as it contemplates counter measures. Their challenge is how to take remedial measures without jeopardizing the government. The IMF declaration that it is closely watching the theft of USD 2.5 mn from the Treasury must have added pressure on the government, ripped apart by the situation at the Treasury. Let us hope the government and the Opposition reach consensus on ways and means to improve financial discipline. Overall, the Parliament cannot absolve itself of the responsibility for enactment of laws and ensuring financial discipline and the fact that Sri Lanka needs to start repayment of debt in 2028.
Midweek Review
Is language social or psychological phenomenon?
This essay was presented at The Philosophy Group of the University of London about 20 years ago. The thought provoking essay published in The Island on 22 April by Usvwatte-aratchi- Some languages confine you; some languages free you prompted me to try to get this essay published if possible. It may help the readers to further their ideas about the importance of usage of language.
Personally, I have firsthand experience in this subject. I was exposed to two different cultures and two languages. In my formative years I was brought up in a certain culture and spoke the language pertaining to that culture/language (Sinhalese -Sri Lanka). I spent all my studying and working life (55 years) using a different language in a different culture (English -England). I must mention that this was not recently. It was the early 1960’s. I can claim that I have enough knowledge and experience to justify this essay topic. In this essay I shall be investigating some of the social aspects of language with the aid of some opinions put forward by some philosophers. Then I shall be making an attempt to see what psychology has to offer before I draw my own conclusions. I am treating social aspects as part and parcel of the culture. In my view these are inseparable entities, unless one chooses to forget his or her cultural upbringing to suit a particular society.
Adoption of different culture
Socially, learning a different language and adopting a different culture is quite possible. In this case what dominates is one’s attitude or the circumstances. Attitude is psychological. I am convinced that circumstances may lead to a change of attitudes. Having said that, we must not forget that there are individuals who have not taken the trouble to learn the language of the culture in which they live. This has created a lot of socio-psychological problems in the community in which they live. It is obvious that the problem is one of communication. The main tool of communication is language. Philosophers and psychologists have spent many years investigating how language helps us to communicate and also how it may lead us to misunderstand our own fellow human beings. Understanding others (family members, members of the community in which we live, and the strangers we meet) is one of the most important aspects of living.
An awareness of the problem of language goes back to the early Greek philosophers. Parmenides gave us the first example of an argument from language to the world, saying that if we speak of a thing it must exist, since we speak of a thing at various times, it must continue to exist in a particular form. It is recently that language itself has come to be studied in a systematic way. The two landmarks in this respect were the development of Linguistics and the philosophy of language in the 20th century. The great philosopher Bertrand Russell (1872-1970) has admitted that until he became a middle-aged man, he did not think about language per se, but regarded it as ‘transparent’. I am sure this is true with most of us although we are not of Russell’s caliber when it comes to philosophy. And one may not have to wait until one reaches one’s middle age.
Linguistics and philosophy of language
It will help us if we understand the difference between Linguistics and philosophy of Language. What linguists discover may be applied to philosophy, sociology, psychology, anthropology or physiology. But as a discipline of study, it remains independent of them. The philosophy of language is different. One of the modern philosophers John Searle (1932-2025) thought, by contrast to linguistics, philosophy tries to solve philosophical problems by analyzing the ordinary use, meaning and relations of words in a particular language. Searle goes on to say that language is crucial to understand human experience. In my opinion this is a very valid comment. At a very practical level we spend a lot of time sharing our experiences. Verbal communication is vital in this area. According to Canadian philosopher Ian Hacking(1936-2023) the influence of language on philosophy has been profound and almost unrecognized. He indicates, if we are not to be misled by this influence, it is necessary to become conscious of it, and to ask ourselves deliberately how far it is legitimate.
It is appropriate to bring in Ludwig Wittgenstein(1889-1951) at this point. He brought in the subject predicate theory of language. For example, if we say “John is king”. Where John is the subject and king is the predicate. Here existence requires substance. For Aristotle, forms do not exist independently of things—every form is the form of something. A “substantial” form is a kind that is attributed to a thing, without which that thing would be of a different kind or would cease to exist altogether. Wittgenstein supports Saint Augustine’s view that words are names of objects and that combinations of words have the sole function of describing reality. For example, if we point at a certain object, say a table and try to say to a child “this is a table”, the child will be confused as to what we are pointing at. Is it the colour, the tabletop or one or more of its legs This is called the ostensive definition method of teaching. Ostensive definitions lead to a variety of interpretations. The child may understand a particular case of this definition but there is no guarantee that she will be able to make a transition from one case to others like it.
Plato’s theory
J G Herder (1744-1803) pointed out the object to which we make reference may be defined by numerous different terms. How then can we justify direct, one to one correspondence-either of so many to one, or of one to so many? How are we going to deal with situations where a term describes something non-existent or only possible? Plato’s “Forms” theory cannot be applied here as anything that we can speak of already exists as a Form. Critics of this theory ask the question: “how can the world be crowded with so many imaginary objects?” We use words to describe and define. Is there any room for slang language? This comes in handy in our day to day social communication. Ostensive definition raises the questions that require a constant selection of what counts as relevant. In Aldous Huxley’s novel Chrome Yellow, the character Old Rowley is confused as to: Does ‘pig’ refer to the quality of having a curly tail? Or standing in rows to eat? Or being pink skinned and fat? Or wearing no clothes? When we use the word “piggishness” is it something inherent to pigs, or simply, a matter of how we choose to describe them?
How can we relate the above ideas and theories of language to our daily living? Daily living is a psychosocial activity.
Perceptions
The nature of language reflects the nature of our perceptions, and these are far from straight forward. Franz Brentano (1838-1917) developed his theory of intentionality: that every mental phenomenon has a relation of direction to its object, i.e. perceptions, desires, imagination etc. are related to what is perceived, desired or imagined. I presume this can be applied to any language irrespective of the culture (our social conditioning). Say for instance the images of art and the writings are given the ability to represent objects by imposing the intentionality on the object. Thus, when we assert that we see or believe something, we impose, by convention and intention, (that is true if and only if it is the case) on the statement, and these conditions are not contained intrinsically in the sounds that make it up, but in our perception of belief about the fact. I begin to wonder how this can be applied to non-physical and unseen situations. Sometimes our feelings and attitudes are unknown to the observer. A person may shout because he is angry but you cannot see the anger, only its physical expression. We will not be able to see the prior event that has led to the anger and the utterance. This shows that there is a limit to how much is revealed simply by observing a word and its context; there is often more than that can be said.
How can we account for unexpected linguistic behaviour? This has both social and psychological implications.
For a long time behavioural theorists believed that every development of the human being was controlled by environmental and social factors. This is similar to an ostensive explanation of meaning. It implied that everything was learnt through training and association. But Noam Chomsky (b.1928) was not happy with this idea. He thought language is a complex phenomenon and which is not taught bit by bit or systematically to infants. It is successfully acquired by (almost) everybody. From my own experience it is true to say that the difficulty in learning a second language is a very different process from that experienced with the first language. Chomsky argued that the first language is not in fact learned, but rather acquired through exposure to a particular language. According to him all languages share the same basic structure, and he called this “deep structure”, which may be expressed as surface structures through a process called ‘transformation’. Chomsky’s theory helps us to assume a universal system of grammar, which may generate an infinite number of particular sentences within a language. This explains how we may create sentences within a language we have never encountered before from a limited set of grammatical rules and this appears to be a rational scientific approach.
Social or psychological phenomenon
The argument/discussion whether language is a social or a psychological phenomenon requires much more investigation than this essay warrants. I have briefly brought in various philosophers’ work, which are invaluable to this topic in terms of philosophy of language. In conclusion I am tempted to state my own experiences as a bi-lingual person. When it comes to my first language, which is Sinhalese I don’t think I learned it. I heard my parents speaking it and I picked up a few words and I constructed my own sentences and gradually became proficient by accumulating more words. Of course, the proper grammatical use of even my own language was taught in school and not by my parents. Learning my second language i.e. English took a different form. I was taught to speak, read, and write English at school and I had to work harder at this than my first language, because my English was confined to the classroom situation only, i. e. I learnt English in a non- English environment. First language came naturally and the second one I had to learn to fit into the social and the education structure that prevailed at that time. Compulsion can motivate us to learn!I had no choice but to adopt myself culturally and linguistically as a university student in England and then as a university teacher in England. Apart from the native English students, I have taught students from different countries. European, African and Asian. I had the opportunity to intermingle with them and learned various different cultural and linguistic aspects. After almost a half a century in England, I am back to my own culture (language, customs, food etc) where I was born and started my life. I am still proficient in my own language Sinhalese. No conscious effort needed.
After all the foregoing arguments and philosophy that I have put forward, my own conclusion is Chomsky’s theories are more plausible to me than other theories on this issue. It is difficult to be exact and say whether language is a social or psychological phenomenon. From the above arguments, we can see that culture and language of a given society are tightly bound. This leads us to psychological adjustments in order to fit into a society. Who can deny that even the philosophers mentioned above have not been subjected to their own cultural environment?
by Prof. Sampath
Anson Fernando
Formerly University of
The Arts London
Midweek Review
Birthing a Nation
Thanks to community centres,
Taking root and flowering Down-Under,
Sri Lankans have finally given shape,
To a truly National New Year,
Where communities meet and greet,
Partake of the same bubbly pot of rice,
Spread cheer under the same banner,
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