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Sri Lanka’s exports to the US subject to 46% tariffs

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Liberation Day retributory tariffs imposed by Trump impact 185 countries

Donald Trump declared Wednesday, April 2 “Liberation Day”, the day Trump unleashed a massive flurry of reciprocal tariffs impacting 185 nations. Exports from Sri Lanka had tariffs of 46% levied on exports, mainly from the apparel industry, which accounted for nearly 70% of the estimated $ 3.4 billion in exports to the United States last year.

Sri Lankan exporters fear that such an increase in tariffs will suppress demand for our products among price-sensitive US retailers and consumers. Major players in the apparel industry like MAS Holdings, Brandix and Hirdaramani will face pressure on their profit margins; smaller exporters may be forced out of business.

There is little doubt that these tariffs will have serious adverse consequences to Sri Lanka’s already fragile economy.

In the preamble to his announcement detailing increased tariffs at the Rose Garden, Trump said that this Liberation Day “is one the most important days in our nation’s history, the day we declare our economic independence”.

Trump warned against retaliation against these increased tariffs, threatening that “you will suffer more than us”. Treasury Secretary Scott Bessent also advised victims of the increased tariffs to take a deep breath, bend over and enjoy the Trump tariff experience without trying to fight back.

Despite these threats, Trump’s tariffs will certainly be met with retaliatory action from allies and adversaries alike. As the head of the European Union, Ursula von der Leyen said, “the European Union, the world’s largest single market, must also defend itself against profound disruptions to global commerce that would result from Trump’s isolation of the United States, adding, “If you come against one of us, you come against all of us”.

Trump continues to ignore the advice of economists, who have already predicted that the trade war likely with the unilateral imposition of these tariffs will most likely precipitate a global recession. This illiterate economic strategy will devastate the economies of not only nations worldwide, but of the United States itself. There will be increased inflation and higher consumer prices in the United States, at least in the short term, thus making a mockery of the basic election promises which won Trump the 2024 election.

The likely economic chaos follows an intelligence breach of historic proportions perpetrated by the most senior members of the Trump Cabinet, including Vice-President Vance, Defense Secretary Hegseth, Secretary of State Rubio, Treasury Secretary Bessent, Director, National Intelligence Gabbard, Senior Advisor Stephen Miller, CIA Director John Ratcliffe and National Security Adviser, Michael Waltz.

Waltz committed the original sin of “inadvertently” inviting Jeffrey Goldberg, Editor-in-Chief, The Atlantic, to a top-secret cabinet meeting on a Signal chat group, an encrypted channel for text messaging. The use of such an unsecured service for discussion of highly classified communications is the epitome of criminally negligent stupidity. Defense Secretary Hegseth initially lied, immediately confirmed by Trump, that no classified information was discussed at this top-level meeting on an unsecured channel.

The Atlantic immediately exposed this lie by publishing copies of the actual transcripts of the meeting that these senior Cabinet officials were discussing, on the Signal channel. Top-secret information about a strike against the Houthis in Yemen. War plans, timing of attacks, aircraft and weapons systems to be deployed, targets and other sensitive information, available even to the enemy, two hours BEFORE the attack. The release of this information served to put the lives of American soldiers in harm’s way, and the whole operation in jeopardy.

As Late-Night Talk Show host Stephen Colbert joked, it’s as if Winston Churchill said, “We will fight them on the beaches at precisely 3.05 p.m. 30,000 of our troops will fight them on the landing grounds at these exact coordinates. We will never surrender!

“Hey, how did the Germans get here so fast?”

To date, no one has been held accountable for what has been probably the most egregious release of top-secret intelligence information in the nation’s history. And no one probably will, following the Trump time-tested mantra of Distract, Delay and Deny.

None of the nation’s allies will share sensitive intelligence information with such a fractured intelligence community in the future. What with Trump’s threats of retributory tariffs and invading sovereign nations, the US will not be America First, as Trump has promised. It will be America Alone.

At a time when the Trump administration is losing the confidence of the American voters, as evinced by the vast number of Town Hall meetings held in protest; when even some Republican members of Congress are beginning to feel a faint stiffening of their spines; the Democratic Party is still running at all-time low national approval rate of 27%. Even the approval of registered Democrats for their own party is barely above sea level.

Elon Musk, the richest man in the world, helped Trump win the presidency with campaign contributions exceeding $280 million in the last few months before the election. He has been awarded the powers of Co-President and is the head of the newly and unconstitutionally formed Department of Government Efficiency (DOGE), given the task of eliminating government waste, fraud and abuse.

Musk has promised to uncover $1 trillion in federal waste within six months. After two months, he has found waste amounting to $8 billion, a multitude of zeros still to come! And these items of “waste” he claims to have eliminated include the immediate suspension of funding for US AID, the main source of US assistance of food and medicines to poverty-stricken nations worldwide, a universally admired wellspring of US compassion and soft power. All the while, companies owned by Musk and his billionaire buddies are making hundreds of billions of dollars with the award of government military and other contracts.

Musk is especially aiming at dismantling and privatizing Medicare, Social Security and other federal programs vital to the welfare of the nation’s students, the ailing, the vulnerable and the elderly.

The stock market is at the lowest levels since 2020, and sinking on a daily basis; inflation and grocery prices are rising. US Immigration authorities are deporting undocumented immigrants purely on suspicion, without due process, flouting the rulings of the judiciary with impunity. The nation’s international reputation is in shambles with Trump’s threats of acquiring sovereign nations by military force, the imposition of retributory tariffs which threaten to precipitate a trade war to rival the Great Depression. All this in just over two months. Where the nation will end at the end of Trump’s second term, a long 46 months looming ahead, is everybody’s nightmare.

The only countries applauding Trump’s policies are Russia and Israel. Russian President Putin is certain that Trump will force Ukraine to surrender unconditionally, and leave him free to achieve his dream of the old Union of Soviet Socialist Republics. Israeli Prime Minister Netanyahu is equally confident that his great buddy will continue to help him with the genocide/displacement of Palestinians in Gaza and the West Bank, when the One-State solution of the Promised Land of Israel would finally have become a reality.

So what are the Democrats doing while all this chaos, corruption, stupidity, cruelty and sheer incompetence are being paraded in public? Nothing. Actually, less than nothing. Which is the advice given by one of their most senior advisers, James Carville, who suggested that the Democrats should roll over and play dead while the Republicans commit Hara Kiri. The only problem with this strategy is that while the Republicans will certainly destroy the nation’s middle class and democracy if left to their own devices, they will also ensure the billionaires will continue enjoying their lifestyles in a kleptocracy run by Trump/Vance and the oligarchs. Just like Putin’s Russia.

The results of last Tuesday’s local elections in Wisconsin and Florida gave Democrats some reason to celebrate. They won a vital Wisconsin Supreme Court seat convincingly, in spite of Elon Musk spending a record $26+ million, which made this state election the most expensive in the nation’s history. The Republicans held two ruby-red House seats in Florida with greatly reduced margins. Results perhaps not quite strong enough to predict an immediate and violent backlash against two months’ performance chaos of Trump and Musk. But results indicating that the majority of voters, Democrats, Independents, even some Republicans are deeply concerned about where the country is headed. There are rumors that Congress is considering bipartisan legislation to rein in Trump’s ill-conceived tariff policies.

The Democratic Party may at last be rediscovering a voice to progress towards the logical conclusion to The New Deal of Frederick Delano Roosevelt, who introduced the germ of the concept of Socialist Democracy during the Great Depression in the 1930s. An ideology which blends the most creative, productive features of capitalism with the compassion of socialism. An ideology currently followed by every developed nation in the world, the progress towards which was abandoned by the United States in 2016.

I am not going to waste any time on the myriad felonies Trump committed after his defeat in 2020. I am also not going to dwell on the ineptitude of the Democrats on their failure to persuade President Biden to keep the promise he made in 2020, that he would run as a transition, one-term president, and hand over the leadership of the Party to the younger generation of Democrats in 2024.

When it became publicly obvious that Biden no longer had the physical nor mental capacity to cope with the toughest job in the world, and was finally “persuaded” to withdraw, it gave even his excellent replacement, Vice-President Kamala Harris too little time to mount a successful presidential campaign. And a convicted felon, the worst president in the nation’s history, was amazingly elected to the presidency for a second term.

The past is done, but the Democrats are still making the same mistakes, still playing nice, still taking knives to a contest which has escalated from a gunfight to one in which the enemy will use military might, if necessary.

Senator Bernie Sanders, who is today an evergreen 83-year-old, miles more mentally and physically agile and millennia ahead in integrity and patriotism than The Demonic Donald, has teamed up with the future of the Democratic Party, Congresswoman Alexandra Ocasio Cortez (AOC). They are rallying the Democrats, exhorting them to fight harder, with more purpose, to be more ruthless, if they are to defeat this existential threat, not only to the nation’s democracy, but to the future of the planet.

New Jersey Democratic Senator Cory Booker set a good example of the necessity for Democrats to fight harder, by filibustering for a record 25 hours on the Senate floor, explaining the dangers the nation is facing. A brave effort, but the time for words is over. It’s now time for nationwide action.

All the Democrats are asking for is a just and equitable society with a safety net to cover all the citizens of the nation, the rich and prosperous, the white and colored and the poor and vulnerable, alike. A society akin to the other 29 of the world’s developed nations, which rank as happier nations in which to live than the richest and most powerful country in the world.

A demand for an equitable society which the Christians of America are reviling as being too “woke”. They are too stupid to understand that the God they worship, Jesus Christ, was the “wokest”, the kindest of them all.

The United States, bursting with sanctimonious hypocrisy, calls itself a Christian, God-fearing nation, but it is the one that has completely betrayed the sacred Gospel of Jesus Christ. While those other, happier nations, which, thank God, are fast espousing the realities of science and atheism, are the ones that observe those enlightened and compassionate teachings.

by Kumar de Silva



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Partnering India without dependence

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President Dissanayake with Indian PM Modi

Indian Prime Minister Narendra Modi once again signaled the priority India places on Sri Lanka by swiftly dispatching a shipload of petrol following a telephone conversation with President Anura Kumara Dissanayake. The Indian Prime Minister’s gesture came at a cost to India, where there have been periodic supply constraints and regional imbalances in fuel distribution, even if not a countrywide shortage. Under Prime Minister Modi, India has demonstrated to Sri Lanka an abundance of goodwill, whether it be the USD 4 billion it extended in assistance to Sri Lanka when it faced international bankruptcy in 2022 or its support in the aftermath of the Ditwah cyclone disaster that affected large parts of the country four months ago. India’s assistance in 2022 was widely acknowledged as critical in stabilising Sri Lanka at a moment of acute crisis.

This record of assistance suggests that India sees Sri Lanka not merely as a neighbour but as a partner whose stability is in its own interest. In contrast to Sri Lanka’s roughly USD 90 billion economy, India’s USD 4,500 billion economy, growing at over 6 percent, underlines the vast asymmetry in economic scale and the importance of Sri Lanka engaging India. A study by the Germany-based Kiel Institute for the World Economy identifies Sri Lanka as the second most vulnerable country in the world to severe food price surges due to its heavy reliance on imported energy and fertilisers. Income per capita remains around the 2018 level after the economic collapse of 2022. The poverty level has risen sharply and includes a quarter of the population. These indicators underline the urgency of sustained economic recovery and the importance of external partnerships, including with India.

It is, however, important for Sri Lanka not to abdicate its own responsibilities for improving the lives of its people or become dependent and take this Indian assistance for granted. A long unresolved issue that Sri Lanka has been content to leave the burden to India concerns the approximately 90,000 Sri Lankan refugees who continue to live in India, many of them for over three decades. Only recently has a government leader, Minister Bimal Rathnayake, publicly acknowledged their existence and called on them to return. This is a reminder that even as Sri Lanka receives support, it must also take ownership of its own unfinished responsibilities.

Missing Investment

A missing factor in Sri Lanka’s economic development has long been the paucity of foreign investment. In the past this was due to political instability caused by internal conflict, weaknesses in the rule of law, and high levels of corruption. There are now significant improvements in this regard. There is now a window to attract investment from development partners, including India. In his discussions with President Dissanayake, Prime Minister Modi is reported to have referred to the British era oil storage tanks in Trincomalee. These were originally constructed to service the British naval fleet in the Indian Ocean. In 1987, under the Indo Lanka Peace Accord, Sri Lanka agreed to develop these tanks in partnership with India. A further agreement was signed in 2022 involving the Ceylon Petroleum Corporation and the Lanka Indian Oil Corporation to jointly develop the facility.

However, progress has been slow and the project remains only partially implemented. The value of these oil storage tanks has become clearer in the context of global energy uncertainty and tensions in the Middle East. Energy analysts have pointed out that strategic storage facilities can provide countries with greater resilience in times of supply disruption. The Trincomalee tanks could become a significant strategic asset not only for Sri Lanka but also for regional energy security. However, historical baggage continues to stand in the way of Sri Lanka’s deeper economic linkage with India. Both ancient and modern history shape perceptions on both sides.

The asymmetry in size and power between the two countries is a persistent concern within Sri Lanka. India is a regional power, while Sri Lanka is a small country. This imbalance creates both opportunities for partnership and anxieties about overdependence. The present government too has entered into economic and infrastructure agreements with India, but many of these have yet to move beyond initial stages. This has caused frustration to the Indian government, which sees its efforts to support Sri Lanka’s development as not being sufficiently appreciated or effectively utilised. From India’s perspective, delays and hesitation can appear as a lack of commitment. From Sri Lanka’s perspective, caution is often driven by domestic political sensitivities and concerns about sovereignty.

Power Imbalance

At the same time, global developments offer a cautionary lesson. The behaviour of major powers in the contemporary international system shows that states often act in their own interests, sometimes at the expense of smaller partners. What is being seen in the world today is that past friendships and commitments can be abandoned if a bigger and more powerful country can see an opportunity for itself. The plight of Denmark (Greenland) and Canada (51st state) give disturbing messages. Analysts in the field of International Relations frequently point out that power asymmetries shape outcomes in bilateral relations. As one widely cited observation by Lord Parlmeston, a 19th century prime minister of Great Britain is that “nations have no permanent friends or allies, they only have permanent interests.” While this may be an overly stark formulation, it captures an underlying reality that small states must navigate carefully.

For Sri Lanka, this means maintaining a balance. It needs to clearly acknowledge the partnership that India is offering in the area of economic development, as well as in education, connectivity, and technological advancement. India has extended scholarships, supported digital infrastructure, and promoted cross border links that can contribute to Sri Lanka’s long term growth. These are tangible benefits that should not be undervalued. At the same time, Sri Lanka needs to ensure that it does not become overly dependent on Indian largesse or drift into a position where it functions as an appendage of its much larger neighbour. Economic dependence can translate into political vulnerability if not carefully managed. The appropriate response is not to distance itself from India, but to broaden its partnerships. Engaging with a diverse range of countries and institutions can provide Sri Lanka with greater autonomy and resilience.

A hard headed assessment would recognise that India’s support is both genuine and interest driven. India has a clear stake in ensuring that Sri Lanka remains stable, prosperous, and aligned with its broader regional outlook. Sri Lanka needs to move forward with agreed projects such as the Trincomalee oil tanks, improve implementation capacity, and demonstrate reliability as a partner. This does not preclude it from actively seeking investment and cooperation from other partners in Asia and beyond. The path ahead is therefore one of balanced engagement. Sri Lanka can and should welcome India’s partnership while strengthening its own institutions, fulfilling its domestic responsibilities, and diversifying its external relations. This approach can transform a relationship shaped by asymmetry into one defined by mutual benefit and confidence.

by Jehan Perera

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The university student

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A file photo of a university students’ protest against private medical colleges

This Article is formed from listening to university students from across the country for two research initiatives, one on academic freedom and another on higher education policy. In speaking with students, the fears they carry could not be ignored. Students navigate university education, with anxieties about their future and fears that they and their university education are inadequate, all while managing their families’ daily struggles. I explore students’ anxieties and the extent to which we, the public, and higher education policies must take responsibility for their experiences.

The Neoliberal University

For decades, universities have been transforming. Neoliberal policies, promoted by the World Bank, have reduced public education expenditure and weakened the State’s commitment to public institutions. These policies frame individuals as responsible for their success and failure, minimising structural realities, such as poverty and precarity. They instrumentalise education, treat students as “products” for a “competitive’ job market, while education markets feed on students’ insecurities. Students are made to feel lacking in “soft skills”, or skills seemingly necessary to navigate classed-corporate structures, and lacking in technical skills, or those needed to operate technologies used within the private sector.

Student activists and, sometimes teachers, have challenged this worldview, demanding State commitment to free education. Governments sometimes yield but also fear the consequences of student politics and have long waged campaigns to discredit student activism. It is within this context that students pursue education.

Portrayal of students

A Peradeniya student told me student-organised events must meet “high standards”, because of the negative public perceptions of university students. I understood what she meant; I had heard of our ‘ungrateful’, ‘wasteful’, ‘unemployable’, and ‘entitled’ students. The media and decades of government propaganda have reinforced these depictions.

About 10 years ago, when government moves to privatise higher education were strong, a corporate executive, complaining about traffic caused by “yet another useless protest”, was unable to explain why they protested. News coverage, I realised, framed these protests as public inconveniences, rarely addressing students’ demands. A prominent advocate, of neoliberal educational policy, reinforced this narrative, saying “state university students make up just 10 percent of their cohorts”, gesturing dismissively as if to say their concerns were insignificant. Such language belittles student activists and youth, renders them voiceless and allows their concerns, such as classed worldviews, and access barriers to and privatisation of education, to be easily dismissed.

It is in this environment that the conception of the useless university student, fighting for no reason, has developed. Students must carry this misrepresentation, irrespective of their own involvement in activism.

Not being good enough

Attacks on free higher education and the absence of meaningful reforms designed to address students’ problems, now weigh on students’ minds. Students question whether their education is relevant and current, pointing to outdated equipment, software, and curricula. University administrators acknowledge these constraints, which reflect Sri Lanka’s ranking as one of the lowest in the world for the public funding of education and higher education.

Rarely has the World Bank, so influential in driving educational policy, highlighted the public funding crisis and, instead, emphasises technological deficiencies, the public sector’s “monopoly” of higher education and limited private sector involvement. It downplays the reality that few families can privately afford such funding arrangements.

Students are also bombarded with fee-levying programmes, promising skills and access to jobs, preying on students’ insecurities. Many, while struggling to make ends meet, enrol in off-campus pricy professional courses, such as in accountancy, marketing, or English.

The arts student

Some students worry their education is too theoretical and “Arts-focused.” A student from the University of Colombo described having to justify her decision to pursue an arts degree. The public, she said, saw this as a waste of her time and the country’s resources. She courageously wore this identity, yet questioned if she was, in fact, unemployable as she was being led to believe.

She does not, however, draw on the fact that arts education has long been the “cheap” option that governments have offered when pressured to expand higher education. While arts education may need fewer laboratories and equipment, they require adequate investments on teachers, strong on content and pedagogy, to closely engage with individual students; aspects of arts education which have systematically been disregarded.

As access broadens, particularly in the arts, more students from marginalised backgrounds have entered universities; students who may feel alien in systems aligned with corporate interests. Thus, students quite different from the classed conception of the “employable graduate,” whose education has systematically been under-funded, graduate from arts programmes frustrated, diffident, and ill-suited for jobs to which they are expected to aspire.

The dysfunctional university

Students voice criticisms of their teachers, as myopic, unworldly, and unfair. Their perspective reflects the universities’ culture of hierarchy and its intolerance of difference, on the one hand, and the weak institutional structures on the other. They are symptoms of years of neglect and attempts by governments to delegitimise universities, to shed themselves of the burden of funding higher education through anti-public sector rhetoric.

Some students, marginalised for being anti-rag, women, or ethnic minorities, feel an added layer of burdens. Anti-rag students, or more often, students who do not submit to university hierarchies, whether enforced by students or staff, are ostracised, demeaned and sometimes subjected to violence. Students unable to speak the institution’s dominant language face inadequate institutional support. Women describe being ignored and silenced in student union activities and left out of student leadership positions.

Furthermore, quality assurance processes rarely prioritise academic freedom or students’ right to exist as they wish, except when they complement the process of creating a desirable graduate for the job market. These processes focus on moulding professionals and technicians, as one would form clay, disregarding students’ anxieties from being alienated from themselves by such efforts.

Problems at home

Beyond the campus, parents face debt, illness, and precarious work. Students are acutely aware of these struggles. Some describe parents collapsing from the strain and sometimes leaving them to carry the family’s difficulties. A student described feeling guilty for being at the University while his family struggled to survive. To ease the burden on their families, students earn incomes by providing tuition, delivering food, and carrying out microbusinesses.

Tied to their concerns over having to depend on their families, is their fear of being “unemployable”, a term that places the blame of unemployment on students’ skill deficiencies. Little in this discourse connects the lack of decent work and jobs for them and their parents to the weak economy and job markets into which successive batches of graduates must transition. Much of the available jobs in the country are those that require little in the form of education, and those, too do little to provide a living wage. Students must, therefore, compete for a limited number and breadth of frankly not very desirable work. Yet, it is they who must feel the weight of unemployability.

Committing to students

Universities frequently fail to recognise students’ worries. Instead, we, coopt neoliberal discourses, telling students to become more marketable and competitive, do and learn more, be confident, improve English, learn to inhabit those classed spaces with ease; often without the support that should accompany these messages.

We expect these students, insecure and anxious, to think critically, and demonstrate curiosity and higher-order analyses. When they collapse under the pressure, universities respond by providing mental health services. While such services are needed, they risk individualising and pathologising systemic problems. They represent yet again the inherent flaws with solutions that emerge from neoliberal ideological positions that treat individuals as the source of all success and failure. Such perspectives are likely to reinforce students’ anxieties, rather than address them.

As Sri Lanka revisits education policy reforms, there is an opportunity to change our framings of education and to recognise these concerns of students as central to any policy. The state must renew its commitment to free education and move from the neoliberal logic that has guided successive reform efforts; we, as the public, must restore our hope and expectations from free education. Education across disciplines, the arts, as well as STEM (science, technology, engineering and mathematics), must be strengthened. Students’ freedom to inhabit university spaces as they wish, must be respected and protected by institutions. Education policies must be tied to broader economic and labour reforms that ensure families can safely earn a living wage and graduates can access a rich range of decent meaningful work.

(Shamala Kumar teaches at the University of Peradeniya)

Kuppi is a politics and pedagogy happening on the margins of the lecture hall that parodies, subverts, and simultaneously reaffirms social hierarchies.

by Shamala Kumar

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On the right track … as a solo artiste

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Mihiri: Worked with several top local band

Mihiri Chethana Gunawardena is certainly on the right track, in the music scene.

The plus factor, where Mihiri is concerned, is that she has music deeply rooted in her upbringing, and is now doing her thing in the Maldives.

Her father, Clifton Gunawardena, was a student of the legendary Premasiri Kemadasa and former rhythm guitarist of the Super 7 band.

Mihiri took to music, after her higher studies, and her first performance was with her father, while employed.

Mihiri Chethana Gunawardena

After eight years of balancing both worlds – working and music – she chose to follow her true calling and embraced music as her full-time profession.

Over the years, Mihiri has worked with some of the top bands in the local scene, including D Major, C Plus from Negombo, Heat with Aubrey, Mirage, D Zone Warehouse Project and Freeze.

In fact, she even put together her own band, Faith, in 2017, performing at numerous events, and weddings, before the Covid pandemic paused their journey.

What’s more, her singing career has taken her across borders –performing twice in Dhaka, Bangladesh, with the late Anil Bharathi and the late Roney Leitch, and multiple times in the Maldives, including a special New Year’s Eve performance with D Major.

In the Maldives, on a one-month contract

Last year, Mihiri was in Dubai, along with the group Knights, for the Ananda UAE 2025 dance.

She continues to grow as a solo artiste, now working closely with the renowned Wildfire guitarist Derek Wikramanayake, and performing, as a freelance musician, travelling around the world.

Right now, she is in the Maldives, on a one-month contract, marking a new chapter in her evolution as a solo vocalist.

On her return, she says, she hopes to create fresh cover songs and original music for her fans.

Mihiri believes in spreading joy and positivity through her singing, and peace and happiness for everyone around her, and for the world, through music.

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