Opinion
Ravi: What I did as Finance Minister was like running a tavern without arrack
By Saman Indrajith
UNP Assistant Leader and former minister Ravi Karunanayake, in an interview with The Island conducted on July 30, says there is no significant threat from his party’s offshoot, the SJB, which he describes as only ‘a mere irritant factor.’ Excerpts of the interview:
Q: The country is going through very turbulent times. The economy is in the doldrums. Many developing countries, including Pakistan, have opted for requesting loan waivers from their lenders such as China, considering the impact realities of COVID-19. As a former Finance Minister do you think Sri Lanka should do likewise?
A: In the current situation we see the country’s revenue dwindling. There is a yawning gap between revenues and cost of living, and this gap has led to the widening of the budget deficit, which cannot be bridged with taxes. In the process of cushioning this impact you have to reduce either the recurrent expenditure or the country’s loan commitments. One of the two has to be reduced to make the fiscal space possible for the country’s economy to move forward. I do not see that happening. The revenue is dropping and expenditure increasing and this has caused the alarming fiscal imbalance. Economic disparities seem to be becoming more complicated by the day. In this situation, seeking loan waivers is not the answer. If you ask for waivers, you’ll lose the opportunity of getting loans in the future. The impact of loan waivers would vary on bilateral and multi-lateral loans which are a few and far between but not so on international sovereign bonds. It would lead to a negative economic outlook. When I took over the Finance Ministry, we had a negative outlook. We had to convert it into a positive outlook and we went forward. Under this government, such good work is being undone and the country is moving backwards. The World Bank has moved Sri Lanka from a medium-income earning country to a low-income earning country.
Q: What is the solution?
A: We have to navigate through these turbulent times. For that we need a strong national economic agenda, which should be able to address the issue of decreasing revenue and keep the economy afloat.
Q: The government has received encomia for handling the COVID-19 threat professionally. It is popularly thought that a UNP government would have made a mess of the battle against coronavirus and economic recovery. What would you say to this?
A: If we are elected, our immediate intention should be to restore confidence in the people, in the investors, in the local and foreign markets. We need to create a situation where people would get economic activities restarted. It is a matter of how you would be able to rekindle that confidence. For that you need consistent and coherent policies. At the moment we have policies that change by the day. When we were elected to office on Jan 8, 2015 the country’s economy was not better than this. In a way it is same with the post-COVID-19 situation.
The other factor is that the country’s economy had been in the doldrums well before the COVID-19. The impact of pandemic started on March 21, but economy had started experiencing trouble well before that. The main reason for that was because the government tried to reduce VAT from 15 to 8. And with many other things, the resultant loss was about 600 billion rupees. That amount is almost one third of the government revenue for the year 2019. When you don’t have revenue, there is no economic kick start. You lose 600 billion and the economy is going to tailspin. On the other hand, none in society would feel any relief from VAT reduction because of that increases that have taken place are so much more. With the 600 billion just thrown down the drain there has been no resultant economic gain.
Q: On the political front, the split within the UNP resulted in a confusion among UNP voters. The SJB has emerged a formidable political force. What do you think the impact of the split on the UNP’s electoral performance?
A: Our fight is with the SLPP and not any other party. This government has been in power for eight months. It’s almost one fifth of its full term. During this period, the cost of living has gone up dramatically and now it is almost 40 per cent. There have been job losses though the government promised to create many more. The SJB is a by-the-way party. Our main focus is to ensure that we are engaged with the main opponent rather than by-the-way parties. Every time when there is an election such by-the-way parties are formed by breakaway groups. It is like old leaves falling from a tree. New leaves will appear and fill the gaps. The UNP is such a strong party that it will not be affected by splits.
The people who have left the party have something in common. They are people who lost badly in their electorates at the last presidential election. Their leader lost that election. The SJB is only an irritant factor.
The UNP is a reservoir of talent. Whenever there is a slip-off we have lot of new talent to remedy it. The UNP is the oldest party in the country and it is getting stronger.
Q: Speculation is rife that the SJB members will join the UNP after the election. Some UNPers have said they will never allow them to return to the party’s fold. In your case, you were with Lalith Athulathmudali and Gamini Dissanayake when they left the UNP to form the DUNF and contest under the Eagle symbol. The DUNF was a splinter of the UNP like the SJB. Years later, DUNF members returned to the UNP’s fold. So, what’s wrong with the SJB members coming back to the UNP?
A: You cannot compare the two events. The bravest in the UNP at that time such as Lalith Athulathmudali and Gamini Dissanayake challenged what they saw as wrongs within the party. So, they were virtually thrown out of the party as a result of their struggle for democracy. In the present instance, some disgruntled party members have left the UNP as they could not achieve their ambitions.
I beg you not to compare the two events for it’s unfair by Lalith, Gamini and others of their calibre, who formed the DUNF.
The final outcome of an event is determined by the performance of a team. If you are a member of a cricket team, you have to be led. You cannot be led by the spectators outside the field. You can’t win the match by singing hosannas for his father or grandfather. Your success hinges on your performance.
The SJB lied to the people and they lied to the judiciary. That is why it lost the case. When it appealed to Court of Appeal and they had to pay Rs 25,000 fine as well. So, now the people can understand that their version of what happened at the Working Committee meeting of the party was not true.
With regard to the rumours of their return after the election, I must say the UNP is not a rest house where you come and go as you please.
Q: Some opposition parties have criticized the government’s handling of the COVID-19 crisis. Do you subscribe to this criticism?
A: COVID situation is something unprecedented. We would give our support to the government to face any such crisis for the sake of the people. I believe the government is doing its best, given the situation. But I cannot say the same about its handling of the economy.
Winning the COVID-19 war and winning the economic war are two different things. You cannot justify losing the economic war in post-COVID situation even if you fare well in your fight against COVID.
Q: The yahapalana government failed to prevent the Easter Sunday carnage. Don’t you think those terror attacks will have an impact on the outcome of the upcoming election as well?
A: If you say the Easter bombing had an impact on the then government’s electoral performance, then the COVID-19 pandemic will have a similar impact on this government. If people are guided by their emotions in casting their votes, then they will vote against this government. The economy is in tatters, companies are closing, cash flows are threatened and it is these major problems that will have an impact on the outcome of the upcoming election.
Q: The Easter Sunday carnage took place under a UNP government and the presidential election results show that people are concerned about national security and their safety. What would you say?
A: Well, it is unfair to say it happened on our watch because basically all security matters were in the hands of a single person, who is not in the government when this disaster occurred. It happened during the time of our government but everybody knows that the Prime Minister was not even invited to the national Security Council meetings. Everything was handled by the Presidential Secretariat. It was virtually one man show going on. We see the same now as investigations are on for eight months, but nothing new has been found out.
Q: What do you have to say about the disastrous MCC agreements with the US? Some opposition parties have already accused the government of duplicity?
A: They promised to dump the MCC agreement if they were elected. Have they thrown the MCC agreement? What a fuss they made prior to the presidential election. They said that the country would be under the dictates of America; the country would be divided and we would have to get visas to enter parts of our own country beyond Anuradhapura. We call upon the government to state its standpoint. If they reject the MCC agreement then they could tear it off and, if not, they have to admit that we did the right going ahead with it. It first started under the Mahinda Rajapaksa government; we went forward ahead because it was a grant in appreciation of good governance. What’s wrong with that?
Q: The SLPP is seeking a two-thirds majority to do away with the 19th Amendment to the Constitution. How do you propose to counter this campaign?
A: The 19th amendment was brought to do away with the 18th Amendment to the Constitution. The 18th amendment allowed the President to act according to his whims and fancies. So, the 19th Amendment had to be brought in. It was the will of the people.
At the time the 19th Amendment was introduced there were two opinions — either to do away with the presidential system or reduce its executive powers. I believed that we should do away with the executive presidency and give more powers to parliament. The 19th Amendment was introduced to pave the way for scrapping the executive presidency. People since 1988, have voted for its abolition but none of the governments care to respect their will.
Q: Treasury bond controversy had a huge impact on the UNP. Allegations have been levelled against you as well. What kind of impact this issue will have on the upcoming election?
A: This is a miscarriage of justice. I happened to be the Finance Minister, but the Central Bank was under the Prime Minister and other commercial banks were under Kabir Hashim. It was not the Prime Minister but his deputy Minister Harsha de Silva who did all the work at the Central bank. Both of them have been kept out of this issue while people who are not relevant were dragged into it.
There were five committees on the matter. First there was the Pitipana committee. There is nothing against me. Then there was DEW Gunsekera Committee. He was in the opposition then. His report does not say I was involved. Then there was Sunil Hadunnetti-led COPE investigation. They found nothing against me or the party. Then there was a presidential commission. There is nothing mentioned in their report about me with the issue at hand. They also found that Central Bank officials are responsible for this. Have any of them been questioned? Then there is another report of which 108 pages are missing. Why are they missing? Why hasn’t it been published? These were the things in the hands of the then President. It was a political witch-hunt. It was aimed at character assassination. Then there was a forensic audit report. It shows very clearly what happened during the period of 2005 to 2015. Why is that report not brought out and why action has not been taken on its findings? They have clearly stated that losses have occurred since 2005 onwards and that Central Bank had not got relevant approval for the implementation of private placements. When this question arose, I, as the finance minister, asked the Auditor General to compare what had been happening since 2005 to 2015. All are silent. They are trying to kill the messenger and distract public attention. That is an absolute national crime. At the moment those investigations have got nowhere, found nothing at all, and why are 108 pages missing? Why is that, not a single Central Bank official has been even basically mentioned? Because these are the guys- the central bank officials, not all of them but seven or eight people. They live luxurious lives. They are earning 2.5 or 3 million salary and dictate terms to people who get by on 25,000 to 30,000 a month. It is said that the monetary policy is being pursued by the Central Bank. The government’s or the financial minister’s role is to handle the fiscal policy. But the central bank was always at loggerheads with the government. We believe that the innocent people should have low interest rates on their borrowings, so that you could bring about an economic upturn, but the Central Bank officials pursue a high interest rate where they basically think that would ward off inflation. This is the problem that exists. And this menace must come to an end. These are the people who created it. Once again, I say I was not in charge of the Central Bank; I was not in charge of the commercial banks. Then why am I being accused of something I did not do? This is simple case of character assassination. That has to be corrected. When I was the Finance Minister, what I did was like running a tavern without arrack.
I was the Finance Minister but I did not have the banks under me. Even then we were able to bring economic stability. We were able to bring in financial discipline. We established the focus on right financial directions. That was during the three years I was in charge of the finance ministry. Some of them who are engaged in character assassination have left the party. They were responsible for the footnotes of the Sunil Handunnetti COPE report. Why do they hold me accountable for this? It was they who involved in it. People within the country did not recognize us, but outside world recognized us and that was how the Bankers’ Institution in the UK, which is highly respected one, voted me the best finance minister Asia Pacific for 2017.
Q: What plans does the UNP have for the future of the younger generation of the country?
A: Not that you cannot develop this country. It’s a matter of whether you want to develop this country or not. The talent is there, the opportunity is there and we do not apply ourselves in order to get to that. My best comparison is Sri Lanka in the time we got Independence 72 years ago, we had a per capita income of $ 49 and Japan had $ 48. Japan got battered in the Second World War and without any natural resources, they are basically today enjoying a per capita of 55,000 dollars while in Sri Lanka its 4,000 dollars.
Q: The UNP is doomed in the opinion of its critics. How do you counter this view?
A: Before talking of the party’s future, I should say we should talk of the present. We should handle it very dexterously. The UNP is very hierarchy-oriented, very seniority-oriented and competency-oriented party. In election times you hear various things from people who cannot even stand on their own feet. In the UNP, we have a leader in the party and our emphasis is on discipline. As for the party hierarchy Mr. Ranil Wickremesinghe is the senior most and next to him is John Amaratunga and I come next to him in order of seniority. I guess competency, discipline, loyalty, comradeship all would be put together and at the right time we will come as the right team.
Opinion
Sri Lanka’s national security: Justice, reconciliation, and forward-looking vigilance
Sri Lanka stands at a defining juncture where the pursuit of accountability for the 2019 Easter Sunday bombings intersects with fragile economic recovery, communal sensitivities, and renewed demands for political devolution. The arrest of former State Intelligence Service chief Retired Major General Suresh Sallay in February 2026, and subsequent high-level statements linking him to directing aspects of the attacks that killed 279 people, mark a significant escalation in the investigation. Actions such as the impounding of passports of key figures, including former President Gotabaya Rajapaksa and Defence Ministry Intelligence officers, signal seriousness. Yet the process risks being derailed by partisan politics, social media manipulation, and selective narratives. True national security demands that this remains a forensic, evidence-based exercise rather than a political spectacle.
The visible participation of Muslim communities in demanding justice for the victims while articulating long-suppressed grievances represents one of the most important developments. Many within the community are increasingly recognising that they were subjected to a calculated, gradual anti-Muslim agenda in the aftermath of the attacks, one that collectively stigmatised an entire faith group, portrayed them as inherent extremists, and created fertile ground for the radicalisation of vulnerable youth. This manufactured climate of suspicion and marginalisation did not enhance security; it damaged social cohesion and inadvertently aided the very extremist narratives it claimed to counter.
The current government’s handling of the Easter investigations appears to be fostering cautious but noticeable confidence among sections of the Muslim community. When investigations target individuals based on evidence rather than community affiliation, and when senior figures from previous regimes face scrutiny without fear or favour, it sends a powerful message that the state is capable of impartial justice.
This emerging trust is a vital asset in the broader battle against radicalisation. It must be nurtured through consistent, transparent action rather than undermined by political grandstanding or social media campaigns that seek to reignite old fault lines. The Catholic Church’s measured support for the process while insisting on its integrity offers a constructive template that political actors and online platforms would do well to follow.
Parallel to these developments, another significant demand has resurfaced with renewed vigour: calls from the Tamil community, the diaspora, and sections of the international community for the holding of long-overdue provincial council elections. This is not a peripheral governance issue; it is intrinsically linked to national security, reconciliation, and the prevention of future instability in the North and East. Prolonged delays in devolution fuel perceptions of centralised neglect, provide ammunition for external actors seeking to internationalise domestic matters, and risk allowing legitimate grievances to be exploited by fringe elements.
Conducting credible provincial elections would demonstrate the government’s commitment to democratic decentralisation, strengthen local legitimacy, and reduce the space for both domestic radicalisation and foreign interference. Conversely, further postponement risks turning a constitutional requirement into another source of communal tension and international pressure.
The government must therefore treat these calls with strategic seriousness rather than tactical delay. Provincial council elections, conducted fairly and on schedule, can serve as a confidence-building measure that complements the pursuit of justice in the Easter case. Both processes, accountability for past security failures and meaningful devolution, are essential components of a holistic approach to preventing the recurrence of violence, whether from Islamist extremism, ethno-nationalist mobilisation, or hybrid threats amplified through social media.
Economic constraints continue to form the underlying substrate of national vulnerability. While the current administration has maintained a degree of macroeconomic stabilisation under the IMF programme, poverty levels remain elevated, youth unemployment is a persistent concern, and investor sentiment is sensitive to political noise. High-profile investigations that are perceived as selective or politically motivated will deter the very Foreign Direct Investment the country needs to generate sustainable growth and employment. Security and economic resilience are mutually reinforcing; prolonged political turbulence or loss of institutional credibility directly undermines the ability to attract capital and create opportunities that reduce the appeal of extremist ideologies.
On the geopolitical front, the recent visit of General Kevin Schneider, Commander of the United States Pacific Air Forces, for the Indo-Pacific Safety Air Forces Exchange, and US Assistant Secretary of State for South and Central Asian Affairs S. Paul Kapur, who arrived in the island on an official visit, met with the President. Newsfirst.lk highlights both opportunity and the need for careful navigation. Discussions on maritime domain awareness, cybersecurity, and disaster response offer tangible avenues for capacity enhancement. At the same time, Sri Lanka must maintain a balanced engagement with India and China while monitoring broader regional dynamics, including Pakistan’s active mediation role in the US-Iran talks underway in Switzerland. These developments underscore the interconnected nature of Indian Ocean security and the importance of professional intelligence assessments that transcend partisan domestic agendas.
Drug trafficking remains a persistent and serious national security threat. Despite consistent detections at arrival points, particularly at Bandaranaike International Airport (BIA), and within the country, attempts to smuggle narcotics continue unabated. These detections clearly demonstrate that the menace is far from over: demand persists and supply networks remain active. The State Intelligence Service has played a pivotal role in several major detections through its strategic networks and effective fusion of intelligence, enabling more qualitative and targeted operations. However, the operational environment at BIA arrival terminals becomes highly complicated when multiple aircraft land simultaneously.
Many passengers proceed through the “nothing to declare” channel, while customs officers conduct random checks that often create complications for both travellers and enforcement personnel. It would be prudent for authorities to undertake a comparative study of the number of random checks conducted against the number of successful detections achieved, in order to objectively evaluate the effectiveness of this approach. The optimal strategy lies in combining modern technology with intelligence-led operations. In parallel, a sustained public awareness campaign should be launched among travellers, strongly discouraging them from carrying baggage belonging to others, whether known or unknown persons.

Perhaps, the most under-appreciated dimension of contemporary national security is the rise of non-traditional threats. The recurring effects of El Niño and broader climate variability, erratic monsoons, agricultural stress, water scarcity, and potential displacement, carry direct implications for social stability and resource competition. The persistent challenge of Dengue outbreaks further strains state capacity and public health resilience. These are not peripheral issues for intelligence agencies; they are core components of a modern threat landscape that includes hybrid warfare, disinformation campaigns, and climate-induced instability.
National intelligence agencies must expand their analytical frameworks beyond traditional kinetic threats to integrate climate intelligence, health security indicators, and the monitoring of disinformation campaigns that exploit economic hardship or communal grievances. The Easter Sunday tragedy was itself a catastrophic failure of intelligence coordination and threat assessment. Repeating such blind spots in an era of hybrid and non-traditional risks would be inexcusable.
The professional intelligence community has a clear duty at this moment. Its role is to provide objective, evidence-based assessments to the state, insulated from political pressure and focused on protecting the nation rather than serving transient interests. This requires rigorous focus on the actual threat picture: monitoring attempts to exploit the Easter investigations for divisive ends, tracking foreign influence operations, assessing the intersection of economic distress with radicalisation pathways, and integrating climate and health stressors into strategic warning. Inter-agency coordination, professional training, and institutional autonomy are not optional luxuries; they are prerequisites for credible national security.
Sri Lanka cannot afford another cycle in which legitimate demands for justice and devolution are hijacked by partisan actors or amplified into communal polarisation by social media. The emerging recognition within the Muslim community that past anti-Muslim campaigns contributed to radicalisation, coupled with tentative confidence in the current government’s approach, represents a narrow but valuable window. Similarly, addressing the long-standing call for provincial council elections offers a pathway to strengthen democratic legitimacy and reduce external leverage points. Both require the government to demonstrate consistency, transparency, and strategic vision.
Conclusion
Sri Lanka’s national security will not be secured by half-measures or political expediency. The time has come for decisive, professional, and coordinated action across all fronts. The pursuit of justice in the Easter Sunday investigations must remain evidence-driven and impartial, not a tool for partisan score-settling. Meaningful devolution through timely provincial council elections and the full implementation of the 13th Amendment within the unitary framework must be delivered without further delay, as unresolved grievances remain fertile ground for division and external interference.
Drug trafficking and other hybrid threats demand the immediate fusion of modern technology with superior intelligence-led operations, supported by robust public awareness campaigns. Non-traditional threats such as climate-induced instability and public health risks must be elevated to the core of national security planning.
True national security is built on institutional integrity, social cohesion, economic resilience, and strategic foresight. Sri Lanka has paid an unbearably high price in the past for allowing political calculations and institutional failures to override professional security management. The current moment offers a rare opportunity to break that destructive cycle. The government, intelligence community, political parties, religious and community leaders, and all stakeholders must rise above narrow interests. They must choose evidence over expediency, unity over division, and long-term national interest over short-term political gain. Anything less would be a betrayal of the sacrifices made and the future that belongs to the next generation. The choice is clear, and the time to act with courage and clarity is now.
Mahil Dole, SSP (Retired), is fthe former Head of the Counter-Terrorism Division of the State Intelligence Service of Sri Lanka, and has served as Head of the Sri Lankan Delegation at three BIMSTEC Security Conferences. With over 40 years of experience in policing and intelligence, he writes on regional security, interfaith relations, and geopolitical strategy.
This opinion draws on public records and professional experience. The views expressed are personal
By Mahil Dole
Senior Superintendent of Police (Retd.)
Former Head of Counter Terrorism,
State Intelligence Service.
Opinion
Ranasinghe Premadasa: The man who would not take ‘No’ for an answer
Had former Sri Lankan President Ranasinghe Premadasa lived to celebrate his 102nd birthday, it would have fallen on June 23, 2026. Premadasa, a politically self-made leader from humble beginnings, served as the second Executive President of Sri Lanka from 1989 until his assassination in 1993. He was the first non-aristocratic “commoner” to rise to the nation’s highest office, breaking the long-standing dominance of the landed elite, high-caste aristocracy, and wealthy political families. Emerging from modest social origins, Premadasa represented a rare example of social mobility in Sri Lankan politics. He often marked his birthdays in remote villages through the “Gam Udawa” (Village Reawakening) programme.
It is fitting to begin this column with an anecdote connected to Gam Udawa. Following the Gam Udawa ceremony in Buttala, Premadasa took a helicopter ride with several officials and identified a site in Mahiyangana for the next programme. He instructed the Director of Town and Country Planning to prepare a sketch plan for the location.
When the Director later returned to Colombo and met the President, Premadasa asked, “Where is the sketch plan?” Instead of producing a plan, the Director handed over a small piece of paper and said, “Sir, when I stepped out of the vehicle, a youth handed me this note.”
Premadasa brought the note to a meeting at Sethsiripaya attended by nearly one hundred officials and read it aloud. The message stated: “If you visit again, you will not leave alive.”
Holding up the note before the gathering, Premadasa asked sharply: “If a mere threat is enough to stop an officer from carrying out his duty, what use are such officers to the country?”
Ascendency to the Presidency
Premadasa assumed office during one of the most turbulent periods in the country’s post-independence history. Sri Lanka was engulfed in twin civil conflicts while still grappling with the consequences of the sweeping economic and constitutional changes introduced through the open economy reforms and the 1978 Constitution. Poverty had deepened, export growth had slowed, balance-of-payments pressures persisted, and external debt continued to mount. The nation stood politically divided, economically strained, and socially unsettled.
At a public meeting, Premadasa once remarked that the Presidency was not “a crown placed upon my head, but a melting pot.” He believed governance should not remain the preserve of a privileged few. Ordinary people, in his view, had to participate in every aspect of governance — from policymaking to implementation. Citizens should share both the responsibility and the benefits of development.
Premadasa often argued that the root cause of unrest was the reduction of people into “mere voting machines operating once in five years.” It was within this philosophy that he introduced the concept of poverty alleviation into Sri Lanka’s national development agenda. He frequently observed that while institutions existed for every crop, few truly existed for the people themselves.
Janasaviya (People’s Strength) Programme
Out of this thinking emerged the people-centred programme Janasaviya, which combined welfare with production-oriented development. Its objective was not merely to help the poor survive, but to enable them to rebuild their lives with dignity and self-reliance. Purpose was alleviating poverty and empowering low-income households. Initially, Janasaviya beneficiaries received baskets of essential goods, many of which consisted of inexpensive imported utensils and crockery purchased through cooperative channels. Premadasa quickly recognised the contradiction and directed that the baskets instead contain locally produced items such as brooms, pottery, serviettes, and other village products. In this way, he envisioned the village not only as a marketplace, but also as a centre of production and economic self-sufficiency. Approach was to combine welfare assistance with credit, livelihood support, and production-oriented activities aimed at self-reliance.
Landmark 200 Garment Factory Programme
Thereafter, he launched the 200 Garment Factory Programme with the purpose of decentralising industrialisation and create rural employment. Approach was to Utilize U.S. garment quotas while offering incentives and infrastructure support for investors willing to establish factories outside major urban centres. Transformed apparel into a major foreign exchange earner while creating employment opportunities, particularly for rural women. At the time, many mocked the idea, questioning whether the country could survive by “selling underwear to Western markets.” Premadasa, however, remained undeterred. Within a few years, garment factories emerged across rural Sri Lanka, bringing investment, employment, and economic activity to regions long neglected. For the first time, investors moved decisively beyond Colombo into the country’s remote periphery.
Those who attended his weekly review meetings at the BMICH would remember the relentless follow-up that characterized his leadership. Secretaries and heads of institutions responsible for urban development, housing, electricity, telecommunications, water supply, and roads rushed from office to office to ensure they could report back to the President with a simple answer: “Yes, Sir, it is done.”
One incident became emblematic of his problem-solving style. A Ceylon Electricity Board official informed an investor that electricity could not be supplied because there were no poles available in the area. Premadasa summoned the official and asked a single question: “Are there coconut trees in the area?” When the answer was yes, he immediately ordered that the lines be drawn using the coconut trees until proper poles could be installed. The issue was resolved within minutes.
Premadasa personally inspected garment factory construction sites and monitored even the smallest details. During one visit, he noticed that several roofs in the adjoining village remained uncovered. Turning to the factory manager, he instructed that by the time he returned to declare the factory open, every roof must be properly covered.
Other Key Programmes
Gam Udawa (Village Reawakening) Movement
Purpose: To provide housing for the poor and improve rural living conditions.
Focus: Development of model villages with housing, roads, schools, water supply, and health facilities. The programme was Sri Lanka’s most ambitious rural housing initiative that drew international recognition leading to the United Nations’ declaration of International Year of Shelter for the Homeless.
Presidential Mobile Service
Purpose: To reduce bureaucratic delays and bring government services directly to the people.
Method: Ministers, secretaries, and senior officials travelled to the provinces to resolve public grievances on the spot creating direct engagement between the state and rural communities.
Industrial, Educational, and Cultural Initiatives
Established the Koggala Free Trade Zone and transformed the Greater Colombo Economic Commission into the Board of Investment of Sri Lanka (BOI), helping attract export-oriented investment.
Introduced free school uniforms to ease the burden on low-income families.
Established the Tower Hall Foundation to support theatre and music and introduced pension schemes for elderly artists.
Job Bank
On a concept introduced by President Premadasa, the Government established a “Job Bank” with the objective of eliminating arbitrary recruitment practices and political patronage in public sector appointments. Unemployed youth were invited to register with the Job Bank, and President Premadasa directed that vacancies in the public sector be filled from among those registered candidates through competitive written examinations and interviews rather than through ministerial recommendations or political influence.
Resource Profile
On the instructions of President Premadasa, a Resource Profile for every Divisional Secretary’s Division (DSD) was also prepared. These profiles contained detailed information on the resources, development potential, issues, and opportunities within each DS Division. The system became an important planning and development tool and continues to be updated and maintained in DSDs across the country.
Independent Verification of Information
He was also known for independently verifying information rather than relying on a single source. Soon after assuming office, a tragic accident occurred at an unprotected railway crossing in Ahangama, where a train collided with a school bus, killing and injuring students. Deeply disturbed, Premadasa ordered the General Manager of Railways (GMR) to ensure that within two weeks no unprotected railway crossing remained in the country.
When the GMR later submitted a report confirming completion, Premadasa sought independent verification from police stations around the country. One station confirmed that a crossing still remained unprotected. The GMR then faced his day of reckoning.
On another occasion, Premadasa invited opposition political parties for discussions on proposals relating to District Development and Coordination. Arriving early for the meeting, I quietly peeped into the room and saw a man rearranging furniture and shifting chairs. As he turned, smiling, he said, “Ah, you have come.” It was President Premadasa himself.
Impatience with Negativity
His impatience with bureaucratic negativity was legendary. During a discussion on land alienation and ownership, officials repeatedly explained why his proposals could not be implemented. Finally, in visible frustration, he remarked: “I have asked you to do 101 things. Is there not even one thing that all of you can do?” The officials understood the message immediately.
On another occasion, he promised every local authority a set of maintenance machinery before the Sinhala and Tamil New Year. Procurement was entrusted to a senior minister, who failed to secure the equipment in time. Yet once the President fixed the date for the handing-over ceremony, “No” was not considered an acceptable answer.
At the time, I had imported several maintenance machines for distribution among Divisional Secretariats. The minister contacted me urgently and requested that I lend him the machinery for one week. Trusting his assurance, I agreed. The following day itself, the machines appeared at Galle Face Green, where an elaborate ceremony was held with local authority chairmen from across the country. President Premadasa commended the minister for the “prompt completion” of the task and ceremonially handed over the equipment. The following day, the relieved minister telephoned me and said gratefully: “Mr. Maliyadde, you saved my neck.”
Visionary Driven by Action
Premadasa was a visionary driven by action. Under his leadership, garments emerged as Sri Lanka’s first major industrial export, transforming an export economy that for more than a century had depended overwhelmingly on tea, rubber, and coconut. Even decades later, apparel remains the country’s principal industrial export sector.
Though not formally trained as an economist, Premadasa instinctively understood concepts that economists often confined to seminars — growth nodes, export diversification, value addition and forward and backward linkages. He transformed these concepts into practice.
He believed the economy could not depend solely on garment assembly. Garment factories, in his view, had to become centres of wider economic activity that stimulated industrial and social development. He encouraged textile production for local supply to garment factories, while also seeking to integrate Janasaviya beneficiaries into these expanding economic networks. For Premadasa, the garment factory programme was not merely an export initiative; it was a bridge linking the village poor, local entrepreneurs, and international markets within a single chain of opportunity.
Right Man for the Right Job
He also possessed a remarkable ability to identify the right man (not the right-hand man) for the right job. Political loyalty, caste, or creed mattered less to him than competence and commitment. That was why he appointed Susil Siriwardane, a prominent JVP activist who was involved in 1971 insurrection, for which he was detained and convicted by the courts, as the first Commissioner of Janasaviya. Many individuals chosen to lead his programmes came not from his own party, but from outside it.
President Premadasa held office for only four years. Yet within that brief period, he launched programmes with the scale and impact of decades of development.
Leadership Style
Premadasa’s leadership style was defined by relentless follow-up, strict monitoring, and an uncompromising belief that obstacles existed to be overcome. Officials knew they had to be prepared for action at any hour of the day. He cultivated a reputation as a leader who refused to accept the words “cannot” or “impossible.”
His vision sought to combine social welfare with a regulated market economy, pursuing what many viewed as a distinctly Sri Lankan “third path” of development. He remains remembered as a determined and action-oriented leader whose policies left a lasting imprint on Sri Lanka’s social and economic landscape.
(Chandrasena Maliyadde is a former Secretary, Ministry of Plan Implementation. He can be reached at chandra.maliyadde@gmail.com)
by Chandrasena Maliyadde
Opinion
The Plunder of Sri Lanka Through Trade Misinvoicing
A Case Study on Sri Lanka-Thailand Trade
In March 2026, a Washington-based think tank, Global Financial Integrity (GFI), released its report on “Trade-Related Illicit Financial Flows in Developing Asia” for the 2013–2022 period. The report calculates the possible misappropriation of 20.51% of Sri Lanka’s total trade value through trade misinvoicing.
A calculation of Sri Lanka’s exports to Thailand in 2024, using the same GFI methodology, shows a possible misappropriation of 207% of the export value by Sri Lankan exporters and Thai importers
The phrase “plunder of Sri Lanka” normally refers to resource extraction through violent foreign invasions with swords and guns. This article is not about them. This article focuses on a more discreet and genteel version of plunder through illicit financial flows and the stashing of foreign exchange earnings offshore through trade misinvoicing.
What is Trade Misinvoicing?
Trade misinvoicing is the fraudulent recording of key invoice information for the purpose of facilitating illicit cross-border financial flows. One of the easiest ways to identify possible misinvoicing is the study of “mirror trade” data, that is, the comparative analysis of partner-country trade data with Sri Lankan trade data. If this flags discrepancies (value gaps), those are indicators of misinvoicing. These gaps could be due to overinvoicing imports, underinvoicing exports, or phantom imports.
Overinvoicing imports occurs when Sri Lankan importers and their foreign counterparts artificially inflate invoice prices for goods. The importer remits foreign currency abroad to settle the bogus invoice amount in full, and the surplus cash is subsequently split or retained in offshore accounts.
Similarly, underinvoicing exports happens when exporters ship high-value goods (for example, gems) out of Sri Lanka but state a considerably lower price on the customs invoice and the importer pays the low price through official channels. Then the actual market balance is paid directly into foreign bank accounts.
Phantom imports occur when bogus companies are set up to execute telegraphic transfers to foreign suppliers under the pretext of importing goods, which never physically enter Sri Lanka. The recently uncovered large-scale foreign exchange fraud totalling around US$85 million linked to fictitious imports revealed by the Public Security Minister Ananda Wijepala is an example of phantom imports. However, what he revealed was just the tip of the iceberg. The annual loss from overinvoicing imports and underinvoicing exports is much larger and may be as high as US$ billion or higher.
So, whenever value gaps occur in mirror data, they should be treated as risk indicators. If the gaps are significantly large, then the authorities should immediately investigate the relevant invoices with the partner countries to find out the reasons for the disparities.
Misinvoicing in Sri Lanka
In 2017, the Washington, D.C.-based think tank Global Financial Integrity (GFI) released a landmark investigative report exposing massive gaps in Sri Lanka’s trade data due to trade misinvoicing during the period 2005–2014. The estimated amount that may have been misappropriated during the period is US$36.83 billion. This report received wide publicity in Sri Lanka. It is not clear if the authorities had initiated any investigations into this foreign exchange hemorrhage. In March 2026 the GFI released its report on “Trade-Related Illicit Financial Flows in Developing Asia” for the 2013–2022 period. The report calculates Sri Lanka’s trade value gap at 20.51% of total trade.
Underinvoicing in Sri Lanka – Thailand Trade
Why a case study on Sri Lanka – Thailand Trade?
Thailand is a relatively small export market for Sri Lanka and ranks 47th as an export destination. As per Sri Lankan customs data, in 2024 Sri Lanka’s total exports to Thailand were valued at US$ 41 million. However, according to Thai customs data, in 2024 Thailand’s imports from Sri Lanka were valued at US$ 126 million. This is a value gap of US$ 85 million. That is a massive 207% value gap… ten times larger than the global average for Sri Lanka. As the table below illustrates, these large value gaps have been growing over the years. (See Table)
A closer look at the data would reveal that the largest value gaps are under gemstones (HS 710391). It is common knowledge that the Sri Lanka–Thailand gem trade suffers from prevalent underinvoicing, resulting in millions of dollars in lost export revenue. Yet, it appears that Sri Lanka Customs and the National Gem and Jewellery Authority (NGJA) have not intervened to curtail this practice. One may argue that the trade ministry, the NGJA, or the customs do not routinely analyse mirror data. However, as Thailand is the third-largest market for Sri Lankan gems, the NGJA should have a very good knowledge of that market, including Thai customs statistics. In-depth analysis of Thai customs data is also a main responsibility of the Sri Lanka embassy in Bangkok.
Sri Lanka-Thailand Free Trade Agreement (SLTFTA)
In addition to that, Sri Lanka commenced negotiations for the Sri Lanka-Thailand Free Trade Agreement (SLTFTA) in 2018. After multiple rounds of negotiations covering trade in goods, services, investments, and customs cooperation, both nations officially signed the SLTFTA in February 2024. While preparing for these multiple rounds of negotiations, Sri Lankan trade negotiators and the embassy in Bangkok should have extensively analysed the Thai customs data. They should have also known Sri Lanka’s export data like the back of their hands. Then, didn’t they discover these massive discrepancies in data sets? If they did, did they address them during the negotiations?
Whatever happens, the gaps keep growing.
So, now it is time for the appropriate agencies to start investigating these enormous value gaps … after all, a massive US$ 85 million, 207% value gap is simply not loose cash.
(The writer can be reached at enadhiragomi@gmail.com) )
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