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Pathfinder Foundation to develop a blueprint to double Sri Lanka’s growth rate

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The Pathfinder Foundation has formed a Study Group of Experts to develop a blueprint and framework aimed at doubling Sri Lanka’s economic growth rate through accelerated economic integration and infrastructural connectivity with India. The framework document is expected to be formally launched in March 2024. Most economic forecasts place Sri Lanka on an average growth trajectory of 3% per annum for the next decade.

Such an anaemic growth rate will not help resolve Sri Lanka’s daunting social and economic challenges by any stretch of the imagination. Sri Lanka needs to think big and shift paradigms if the country is to find a way out of a seemingly hopeless predicament. As growth in the rest of the world including China continues to slowdown, India is expected to grow at above 6% per annum and will remain one of the best-performing economies in the world for the foreseeable future.While foreign investment into many regions is falling, investors are flocking to India due to its large market and emerging middle class.

Through an accelerated economic integration and physical connectivity strategy with India, Sri Lanka could take advantage of this momentum and easily double its economic growth to 6% per annum. India is already the largest source market for Sri Lankan tourism.

For example, at the end of the Second World War, the Netherlands seized the opportunity to develop its air, sea, rail, road, and energy sectors to become Europe’s distribution centre. Today, Rotterdam is the largest port in Europe, and Amsterdam is a principal global aviation hub. In fact, Singapore, too, used the Netherlands as a model for its own planning during its early stages of development. As windows of opportunity open and close quickly, it is essential for Sri Lanka to rapidly move towards becoming the principal gateway to South Asia, the Middle East, the Far East, and beyond before circumstances evolve and Sri Lanka is left behind.

Sri Lanka’s modern historical landscape has been littered with many missed opportunities. During the 1970s, in the heyday of US and European global expansion, Sri Lanka chose to nationalise Western multinationals operating in the country and as a result lost out on potential foreign investment opportunities to East Asia. Subsequently, President J.R. Jayewardene opened the economy and worked with the West and Japan to attract funding and investment for large-scale projects such as the Accelerated Mahaweli programme, port development, export-processing zones, and other infrastructure projects.

Unfortunately, Sri Lanka’s inability to grasp and manage the realpolitik of the Cold War period especially in terms of the Indian relationship, ultimately contributed to an intractable war that lasted nearly thirty years. In the 1980s when Japanese investors started to look abroad to relocate their industries for competitiveness, Sri Lanka was very high on the shortlist.

However, despite the excellent bilateral relationship between the two countries, due to persistent civil unrest during that period, in Sri Lanka, Japanese industries chose to relocate to Malaysia, Thailand, and other East Asian countries instead. In many ways, Sri Lanka also missed the opportunities presented during the early stages of China’s economic rise. Today, China is an important investment partner for Sri Lanka, although geopolitical realities will frame how this relationship can be managed.

India’s dramatic transformation into a fast-growing global economic powerhouse presents Sri Lanka with yet another chance to get the country onto a fast-economic growth trajectory that will integrate it with the global economy on a competitive footing. The Pathfinder Foundation Study Group blueprint and framework will conceptually present the key requirements for infrastructure connectivity between Sri Lanka and India including land, rail, ports/shipping, airports/airlines, electricity, energy/oil, telecommunications, and digital infrastructure. It will also identify other requirements that would facilitate speedy economic integration.

The Study Group will delineate an accelerated programme to achieve physical connectivity between India and Sri Lanka, while ensuring that Sri Lanka’s national security, territorial integrity, sovereignty, and unique cultural identity are safeguarded. It will also advocate an ambitious programme like the Accelerated Mahaweli programme that will seek to mobilise funding on a global level from bilateral, multilateral and international private-sector sources.

There is no doubt that this is a very auspicious time for such an initiative and international support and resources will be available, Sri Lanka must have the political will to seize this rare advantage that would put Sri Lanka on track. Besides the obvious medium and long-term advantages this program will have, there will also be many short-term spin-off benefits to the local economy as well. These will help create employment and opportunities in sectors such as construction.

Once this blueprint is complete, Pathfinder will present it for discussion in Sri Lanka and internationally. Earlier this year, the Pathfinder Foundation launched a report entitled ‘Medium and Long-term Strategy for Indo-Japanese Collaboration to Support the Economic Transformation of Sri Lanka’, which was launched in both Colombo and New Delhi.



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President proposes; Speaker disposes

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Dr. Wickramaratne

AKD’s request to Harsha:

Speaker Dr. Jagath Wickramaratne has frustrated an attempt by Chairman of the Committee on Public Finance (CoPF) Dr. Harsha de Silva, MP, to intervene to settle the continuing dispute over the appointment of a new Auditor General.

Dr. De Silva yesterday told The Island he had recently written to all members of the Constitutional Council (CC) drawing their attention to the urgent need to address the issue at hand. The AG’s position remains vacant since 08 Dec, 2025. AG W.P.C. Wickremanayake retired in April and since then there have been a couple of Acting appointments. The CC has declined to endorse any of President Dissanayake’s nominees as the AG.

Asked whether he had taken up the issue with the CC following President Anura Kumara Dissanayake soliciting his support in this regard, MP de Silva said that he had written to CC members as agreed with the President.

The former UNPer and one-time State Minister said: “I did so, giving due respect to CC’s independence, underscoring the critical importance in them working with the President to resolve the crisis. I alluded to the need to have transparency in public financial management during this post-cyclone period where large amounts of funds are being transacted on multiple fronts, both domestic and foreign.”

Responding to another query, Dr. De Silva emphasised that he had clarified that the President must send the names of qualified and experienced persons to the CC for consideration. “However, these letters were returned to me by the Speaker, without being delivered to members of the CC. The Speaker didn’t give an explanation. Thus, except for members who are MPs who had been copied via email by my committee office, others never received my letter of concern. Even though I questioned, in Parliament, the basis of his refusal to forward my communication to the members of the CC of which he is Chairman, no answer was given.”

The CC consists of Dr. Jagath Wickramaratne, Speaker and Chairman of the 10-member body. Dr. Harini Amarasuriya, Prime Minister, Sajith Premadasa, Leader of the Opposition, Bimal Rathnayake, Aboobucker Athambawa, Ajith P. Perera, Sivagnanam Shritharan, and three civil society members namely Dr. Prathap Ramanujam, Dr. Dilkushi Anula Wijesundere and Dr. Dinesha Samararatne. None of the President’s nominees could obtain CC’s approval as all of them were rejected by the CC.

The present CC was introduced by the 21st Amendment to the Constitution which was endorsed on 31 October 2022.

Both the Bar Association of Sri Lanka (BASL) and the Transparency International Sri Lanka Chapter recently requested President Dissanayake, in writing, to propose a suitable person to the post of AG. The BASL, in another statement that dealt with the forthcoming vacancies in the CC due to three civil society members completing their terms, declared its concern over possible attempts by the President and the NPP government to fill the vacancies with rubber stamps.

The three civil society members will complete their terms on 18 January. In terms of Article 41E of the Constitution, the CC meets at least twice every month, and may meet as often as may be necessary. The Chairman presides at all meetings of the CC and in the absence of the Chairman, the Prime Minister, and in the absence of the Prime Minister, the Leader of the Opposition presides at the meetings of the CC.

Asked whether the CC could be disrupted due to the end of civil society members’ terms, an authoritative official pointed out that in case new appointments were not made the current members could continue.

The Parliament has not so far called for applications to fill the forthcoming vacancies.

by Shamindra Ferdinando ✍️

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Sri Lanka loses Rs.7.5 bn due to coal tender irregularities: FSP

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Pubudu

The NPP government’s coal procurement process has once again come under scrutiny following allegations by the Frontline Socialist Party (FSP) that substandard coal has been imported for power generation and that tender procedures were manipulated to favour a specific supplier.

Addressing the media after a party meeting in Maharagama on Saturday, FSP Education Secretary Pubudu Jagoda said a test report issued by the government laboratory at the Lakvijaya Power Plant had confirmed that the latest coal shipment unloaded in Sri Lanka did not meet the required quality standards. According to the report, the coal’s calorific value ranged between 5,600 and 5,800 kilocalories per kilo, below the 5,900–6,200 kCal/kg range specified in tender requirements.

Jagoda warned that lower calorific value coal would require higher volumes to generate the same amount of electricity, increasing costs significantly. Preliminary estimates, he said, indicated an additional financial burden of around Rs. 7,500 million, which might eventually be passed on to consumers through higher electricity tariffs.

The FSP also accused the government of tailoring procurement rules to benefit the Indian supplier, which has deposited bonds for long-term coal supply for the upcoming season. Jagoda alleged that tender conditions had been altered to accommodate the company, pointing to changes in coal reserve requirements. Under the 2021 Sri Lanka Coal Registration Document, suppliers were required to maintain a minimum reserve of one million metric tonnes with a gross calorific value of 5,900 kCal/kg. This threshold, he said, had been reduced to 100,000 metric tonnes in the 2025 document which is a 90% reduction raising serious concerns.

He further cited past allegations against the Indian company, including findings in a 2016 Auditor General’s report that the company violated procurement guidelines regarding a rice supply contract with Sathosa in 2014. Jagoda also referred to legal issues involving individuals linked to the company, and the suspension of a representative by the International Cricket Council in 2019 over match-fixing allegations.

Beyond company-specific concerns, Jagoda criticised what he described as systemic manipulation of the coal tender process. He questioned why the coal tender, typically called in February or March, was delayed until July, despite electricity being declared an essential service. He also alleged that the tender submission period had been progressively shortened from the internationally accepted six weeks to five weeks, and now reportedly to three giving an unfair advantage to suppliers with existing stock.

The Ministry of Energy has recently issued an amended tender to procure 4.5 million metric tonnes of coal for the Lanka Coal Company for the 2025/26 and 2026/27 periods, following the cancellation of an earlier tender.

Jagoda warned that delays and irregularities could lead to coal shortages, higher spot market purchases, increased electricity costs, and even power cuts if hydropower generation falls short. He called for urgent investigations into the procurement process, insisting that the burden of alleged mismanagement and corruption must not be transferred to the public.

by Chaminda Silva ✍️

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CID summons SJB MP for criticising education reforms

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Prasad

SJB Gampaha District MP Prasad Siriwardhana has been summoned to the CID today (12) for questioning in connection with a statement he made on a private television channel regarding education reforms.

He was earlier asked to report to the CID on 10 January to make a statement. However, as Siriwardhana had notified the authorities that he was unable to appear on that day, he was subsequently asked to come today.

Siriwardhana is one of the critics of the shortcomings of the education reforms introduced by the NPP government.

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