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Playing blind man’s bluff with tariff man

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President Trump unleashing the tariff tsunami

While the whole world was waiting anxiously for President Donald J. Trump, a self- proclaimed “tariff man”, to present his plan for “reciprocal tariffs” on his “Liberation Day”, an American commentator Jon Stewart declared on “The Weekly Show” podcast that he knew what “Donald Trump’s whole plan” was. Since Trump was elected, I have been closely following the developments in Washington but didn’t come across any other such claims. Yet, I was not surprised by Jon Stewart’s claim because he is a highly paid comedian and his podcast was recorded on the day before President Trump unveiled his plan. But now I know Jon Stewart was not the only person who knew how Trump’s plan for “reciprocal tariffs” would unfold. Most of our politicians (other than those in the government) had known what the plan was, much in advance of the official announcement. Now they are on our evening TV news blaming the government for not taking measures to pre-empt Trump’s move and providing their expert advice on how the government should engage with the US!

Tariff Tsunami

Unlike these politicians and their advisers, I did not expect President Trump to slap punitive tariffs of 44 percent on our exports. Our garment exports to the United States expanded from the early 1980s to December 2004, due to a very generous textile and apparel quota extended by the United States under the now-defunct Agreement on Textiles and Clothing. It was a clear and very successful example of providing trading opportunities as development aid by a development partner. However, we were also paying high tariffs for these exports but remained competitive in the US market as quotas ensured a reasonable market share. But after 2004, with the end of the quotas, the Sri Lankan exporters started to face strong competition in the US market, particularly from countries that had duty-free market access. So, in December 2004, Sri Lanka was hit by two tsunamis, the Asian Tsunami and the Tariff Tsunami.

On 06 January 2005, The Wall Street Journal published on its op-ed page an opinion piece titled, “Tariff Tsunami,” highlighting this: “… some eye-popping statistics showing how U.S. tariffs discriminate against world’s poor, including in particular those in Sri Lanka. The duties paid on Sri Lankan garment exports to the US in 2003 were $238.5 million – which was more than the total duties ($227 million) paid that same year on every product exported to the U.S. from all six countries of Scandinavia. That’s despite the fact that Scandinavia exports roughly 12 times more to the US than does Sri Lanka – $23.8 billion versus $1.8 billion in 2003. The average US duty rate from products from those rich nations of Northern Europe is about 1%, while the average rate on Sri Lankan goods is 13.8% and 16.6% on the bulk of its exports, which happens to be clothing.”

Twenty-one years later, if one checks the US Customs data for 2024 a similar pattern will be observed, as our exports’ basket to the US and the import duties in the US have not changed much. Though, some of our exports, like tea, gem stones and rubber products, have duty free access. for some apparel products we pay 25% tariff resulting in very high average tariff.

When Trump promised, during his campaign for the White House, a 10 percent tariff on all imports from all countries and a higher tariff on China, I expected Sri Lanka to improve her competitiveness and anticipated a shift in sourcing from China to other Asian countries. I also believed that the “slow surge in orders” received by Sri Lankan apparel exporters after the US elections, as well as the investment by an American engineering technology group at Wathupitiwala, could have resulted from this discreet shift of sourcing. (Please read my article published on 8th January in “The Island.”). It also appeared that when US Ambassador Julie Chung stated, last October, at the foundation stone laying ceremony for a new American factory at Wathupitiwala, “SHIELD’s decision to shift its facility in China to establish a manufacturing facility here in Sri Lanka is a testament to the growing interest of US investment in Sri Lanka …. If the new government can strengthen the investment climate, implement anti-corruption measures, and strengthen business-friendly governance and transparency, there is potential for even more manufacturers to make similar moves,” she, too, didn’t expect that, six months later, the United States would hit us with punitive tariffs. Because no American investor would ever think of investing in Sri Lanka with an over 44% tariff.

A guessing game on the tariff plan

When President Trump announced, in early February, his “Fair and Reciprocal Plan” on Trade, he did not provide much information about the plan. Then a few weeks later, the Director of the National Economic Council, Kevin Hassett, stated that 10 to 15 countries accounted for America’s “entire trillion-dollar trade deficit” and the Treasury Secretary, Scott Bessent, mooted a plan for a higher tariff for the ‘Dirty 15’, a group of countries that have large trade imbalances. But they did so without naming the countries they were planning to target. Based on these two statements a guessing game started all over the world on the composition of this group. Still, most of the observers expected these countries to be those with highest goods trading deficit with the United States. In 2024, the United States faced highest trade deficits with China ($291 billion), the EU ($236 billion), Mexico ($172 billion), Vietnam ($124 billion), and Taiwan ($74 billion). Compared to these countries, Sri Lanka’s trade deficit with the United States is relatively insignificant.

However, with these declarations, there was a remote possibility of Sri Lanka getting hit by a higher tariff due to our relatively large trade deficit as a percentage of the total trade. For many years this was always raised by the American negotiators during the negotiations at bilateral multilateral levels. Though we had always managed to settle it amicably, with mutually acceptable explanations, the issue had remained as an irritant in our bilateral relations. Therefore, the Sri Lankan Embassy in Washington, and appropriate government agencies in Colombo, with inside knowledge of the views of the US trade officials on the bilateral trade deficit, should have prepared for this worst-case scenario, however remote it was, and strategised on possible responses.

Highest tariff on countries “which nobody has ever heard of”

A few weeks after the American elections, at a birthday party, I bumped into a Sri Lankan expert on the United States who works on these issues for the government. During our conversation I raised Trump’s proposed tariff with him, and inquired whether they had initiated any study on it, particularly any possible adverse impact on Sri Lanka. “Don’t worry,” he quipped, “…

Trump doesn’t know where Sri Lanka is. So, we will be the last to get hit!” As we were standing at the bar, sipping our first round of drinks, I didn’t take the conversation any further. But what he said reminded me of my first visit to the office of the United States Trade Representative, in Washington. That was in January 1998. After examining my freshly issued State Department diplomatic ID, the security guard inquired, very politely, where Sri Lanka was. And I explained, with the help of a quick sketch, where we are located. During the next three years, during my frequent visits to that building, she always welcomed me with a broad smile and remembered my name and where I was from. During my tour in the United States, I met few other people who had never heard of a country called Sri Lanka.

Unfortunately, predictably unpredictable Donald J. Trump had decided to impose the highest reciprocal tariffs on countries “which nobody has ever heard of,” Lesotho and the French Archipelago of Saint Pierre and Miquelon! Both got 50% tariffs under the new reciprocal tariff plan. Since the beginning of the century, Lesotho, a tiny landlocked African country, managed to expand her exports to the US under the African Growth and Opportunities Act (AGOA) and is considered as one of the success stories under that programme. But during his annual address to Congress last month, President Trump, while defending his extensive cuts in the US aid budget, singled out a past aid project of “eight million dollars to promote LGBTQI+ in the African nation of Lesotho … a country that nobody has ever heard of.” In spite of its size, Lesotho refused to ignore the comment or take the matter lightly.

Foreign Minister Lejone Mpotjoane declared that the Lesotho government was “shocked and embarrassed” by the comments because Lesotho “… did not expect a head of state to refer to another sovereign nation in such a manner” and had sent an official protest note. Now, Mr. Mpotjoane must be a contented man. With the highest tariffs in place, the entire world has heard of a country called Lesotho! Saint Pierre and Miquelon, with a population of roughly 6,000 people and very limited trade with the US was the other country to get hit by 50% tariff. However, for this a tiny French archipelago, located off the shores of Canada, the time under the global limelight was short-lived as soon after the announcement the US administration made a U-turn and reduced the tariff to 10%.

Some of the other countries in this group with highest tariffs are not so tiny and are more well known. The table illustrates the United States imports from these countries and trade balance (in USD million) during 2023. (See Table 1)

Although President Trump has declared that these reciprocal tariffs are necessary to tackle America’s massive $1.2 trillion goods trade deficit, from this group of countries only Vietnam with $109 billion surplus and Cambodia with $11.8 billion surplus can contribute meaningfully towards a reduction of that deficit. The US trade deficit with all other countries in the group are minimal and together accounts for less than $5 billion. Based on 2023 statistics it is difficult to even understand Syria’s inclusion in the list. Then how did these countries end up with highest reciprocal tariffs?

Calculation of reciprocal tariffs

President Trump, while presenting his new tariff plan, stated that “reciprocal means they do it to us, and we do it to them. Very simple. Can’t get simpler than that,” and according to his Executive Order on the reciprocal tariffs, these are based on the average tariff rate charged to US exports, plus currency manipulation and other trade barriers. However, in many countries it is very difficult to quantify the tariffs, currency manipulation and other trade barriers. So, the calculation was simply done for each country by taking its trade in goods deficit for 2024, then dividing that by the total value of imports which provides the size of the trade imbalance in percentage terms. The US administration simply presumes that persistent trade deficits are due to a combination of tariff and non-tariff factors that prevent trade from balancing. Therefore, it divided that percentage number by 2 to fix the amount of reciprocal tariff. If the presumption on which the tariff is fixed is inaccurate then the burden of proof is with the country affected by the tariffs.

Way forward – ‘Make Haste Slowly’

With a 90-day grace period, Sri Lanka has sufficient time to move forward thoughtfully, appropriately, and discreetly. However, it is essential to negotiate with the American Administration the removal of the reciprocal tariffs, and if that is not negotiable, then reduce them to the global average. As the livelihood of thousands of poor workers are dependent on it, the government should act fast without making any wrong moves. In other words, it is time to make haste, slowly. But it is important to understand, as of now, it is a guessing game like blind man’s bluff, with modified rules: only two players at a time, and you are blindfolded. You have to guess where the other player stands and catch him, while the game is played on a cliff edge.

By Gomi Senadhira

(The writer, a former public servant and a diplomat, can be reached at senadhiragomi@gmail.com)



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Trump’s Delinquent War Game: No Early End in Sight

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Iranian Frigate sunk by US Submarine near Galle

It is fruitless analyzing US President Trump’s reasons for going to war with Iran or the conflicting outcomes he says he is looking to have in the end. It is quite possible that he may have made the decision to attack Iran after being cajoled by Israeli Prime Minister Benjamin Netanyahu. It is a good time to attack because Iran is at its weakest moment yet posing an imminent threat warranting a pre-emptive attack. Strange and circular reasoning is needed to justify unnecessary wars.

True to form, Trump did not consult any of his western allies the way his predecessors did in similar situations. He ignored NATO as much as he ignored the UN. Nor did Trump go through the internally established broad consultation and focused decision making processes that US presidents usually undertake before committing American forces abroad. The Congress, the institution under Article I of the American Constitution, was also habitually ignored .

It is likely that Trump secured tacit support from other Middle East governments, especially the Gulf states of Kuwait, Saudi Arabia, Bahrain, Qatar, UAE and Oman that are Iran’s neighbours. The latter may seem to have been hoping to have it both ways – letting US and Israel take out Iran’s reprehensible regime while appearing to stay neutral in the fight. That calculation or miscalculation explosively backfired when Iran started firing drones and missiles not only into Israel but practically into every Arabian (Persian) Gulf country, hitting not only American bases but also civilian centres. The welcoming reputation of the Gulf countries as secure oases for foreign investment, tourism, sports and entertainment has been seriously shattered.

Escalating War

In addition to the six Gulf states, Iranian missiles have reached Iraq, Jordan and far away Cyprus. Even Turkey and Azerbaijan have been targeted. Israel has been hit and has suffered casualties far more in the few days of fighting than it has in all the past aerial skirmishes. The US outposts are under attack as well. The Embassy in Kuwait was hit on Monday. The next day two drones fell on the US Embassy in Riyad, Saudi Arbia, apparently the most fortified American outpost abroad. This was followed by drone attacks on the US Consulate in Dubai and on the American military base in Qatar, the largest in the region. Six American servicemen have been killed and 18 injured in the first four days of the war.

The Trump Administration that has been notorious for picking countries to deny US visas, is now asking Americans to return home from 14 Middle East countries for the sake of their own safety. Washington has closed its embassies in Riyadh and in Kuwait and has ordered non-emergency staff and families to depart from its other embassies in the region. But leaving the embattled region is not easy with flights cancelled and air space closed. Belatedly, the State Department is scrambling to make arrangements to help stranded Americans find their way out by air or by land to neighbouring countries. It is the same story with governments of other countries whose citizens are living and working in large numbers in the Middle East. The monarchs of Middle East depend on migrants of many hues to do their blue collar and white collar labour while keeping their citizens in cocoons of comfort. That equilibrium is now under threat.

Iran’s losses are of course significantly higher, already hit by over 2,000 Israeli and US missiles reaching multiple targets in 26 of Iran’s 31 provinces. Over a thousand people have been killed including 180 students in a girls’ school in the south. Buildings and infrastructure and installations are being devastated. Israel has opened a full second front in Lebanon using the thoughtless Hezbollah’s aerial provocation as excuse for once again badgering Beirut and its suburbs. A week into the war there is no early end in sight. Only escalation.

Not only Iran but even the US is extending the waves of war. A US submarine torpedoed without warning and sank the IRIS Dena, a Moudge-class Iranian frigate, in the Indian Ocean not far from Galle. The frigate had about 130 sailors on board and was sailing home after participating in the International Fleet Review (IFR) and multilateral exercise, MILAN-2026, organized by the Indian Navy at Visakhapatnam. The frigate was reportedly not carrying weapons in keeping with the protocol for international naval exercises. Also, according to reports, Americans were in the know of the Fleet Review in India and its participants. Yet the US Secretary of War, Pete Hegseth, went on public television to say: “An American submarine sunk an Iranian warship that thought it was safe in international waters,. Instead, it was sunk by a torpedo. Quiet death.” How tragically surreal!

It fell to little Sri Lanka to respond to the distress call of the sinking sailors. Sri Lanka’s navy and emergency services have done an admirable job in fulfilling their humanitarian responsibilities. The Sri Lankan government has also handled a difficult situation, complicated by a second Iranian ship, with poise and purpose. On the other hand, unless I missed it, I have not seen any official reaction by the Indian government to the reckless sinking of one of its guest ships. An opposition parliamentarian of the Congress Party, Pawan Khera, has been cited as asking on X, “Does India have no influence left in its own neighbourhood? Or has that space also been quietly ceded to Washington and Tel Aviv?”

India is not the only one that has ceded space and time to the bullying whims of Donald Trump. With the exception of Spain, the entire West is literally genuflecting for fear of getting hit by tariffs. Notwithstanding the US Supreme Court ruling much of Trump’s tariffs to be illegal, and a Federal Court now ordering that the collected monies should be paid back to those who had paid them. The situation is a far cry from the European reaction and the public lampooning of Bush and Blair when they went to war in Iraq two decades ago.

The Missile Math

Two factors may objectively determine the course and the duration of Trump’s war: weapons stockpiles and the oil and natural gas markets. Higher prices of oil and natural gas will increase domestic pressure on Washington to find an offramp to the war sooner than later. Other countries may have to suffer not only higher prices but also shortages of fuel. The weapons are a different matter.

The ongoing aerial warfare involves the use of drones and missiles to attack as well using defensive missiles to detect and destroy incoming projectiles before they hit their targets. After the beating it took last year and this week, Iran has no missile defense system to speak of, but it has both a stockpile of drones and missiles and capacity for rapidly producing them. The military question is whether Iran’s stockpile of offensive drones and missiles can outlast the combined defensive missile stockpile of the US, Israel and the Middle Eastern countries. There is no clear answer, only speculations about Iran and US concerns over its own stockpile.

The “troubling missile math,” as it has been called is underscored by the concern expressed by US Secretary of State Marco Rubio, that Iran has the capacity for “producing, by some estimates, over 100 of these missiles a month. Compare that to the six or seven interceptors that can be built a month.” The worry is also about the depleting impact that the extended use of interceptors against Iran will have on American stockpiles elsewhere in the world, especially in areas involving China. That is part of the standard military calculation. What is bizarre now is that after starting the war on a whim last Saturday, Trump is convening a meeting within a week on Friday with weapon manufacturers to urge them to produce more.

Secretary Rubio also added that destroying Iran’s missile capacity is the goal of the US campaign. Iran’s missile capacity involves different missiles with different flight ranges. The shorter the range the larger the stock. Iran does not have the standard two-way intercontinental ballistic missile, and it is nowhere near developing them. The current Administration has recklessly claimed that Iran is capable of launching missiles to hit America and has unfairly named and blamed all previous presidents for not doing anything about it.

Trump’s predecessors were fully aware of America’s unmatched military superiority and Iran’s utter limitations. They were also aware that going to war with Iran to destroy its drones and limited range missiles will create more problems without solving any. The Obama Administration in consort with China, UK, France, Germany and Russia produced the Joint Comprehensive Plan of Action (JCPOA) committing Iran to have nuclear programs for peaceful uses only. Trump tore up the Obama plan and instead of using the opportunity this year to create a new and stronger program, chose to start a war instead.

As things are, unless the US-Israel axis succeeds in literally obliterating all drones and missile production resources in Iran, Iran will retain the capacity to produce drones and short-range missiles with which it could torment its neighbours for long after Trump and Netanyahu declare the war to be over. It may never be a long-range menace – in fact, it never was – but it could become an even greater short-range nuisance.

The US is no longer indicating a time limit for the war to end. For Netanyahu, it is not going to be an endless war. Of the two, Israel might be having some clear objectives to be achieved before ending the war. For Trump and his Administration, on the other hand, the objectives of the war are chaotically evolving on a daily basis, and the world will have to wait till the man of the deal finds some outcome or outcomes that can be shown as success and call it quits.

Regime Change: Insult after Injury

Iran’s Supreme Leader and forty or so other top Iranian leaders were taken out in the first minute of the fight by “pinpoint bombing”, as Trump boasted in his auto-poetic truth social post. But the Iranian regime has not collapsed. It has shown remarkable structure and durability despite the death of its Supreme Leader. It is America that is showing its inability to contain its Supreme Leader from going berserk on the world through tariff and bombing terror – in spite of all the checks and balances that Americans thought they have constitutionally practised and honed over 250 years. It is also poetic comeuppance for the Iranian regime that, after 47 years, it should now face its undoing by an unhinged American hegemon for theocratically subverting the 1979 revolution from realizing any of its secular possibilities.

Trump now wants to add insult to injury by forcing himself into the succession process for selecting a successor to Ayatollah Ali Khamenei. Iran has a well-established succession process, almost akin to the conclave in the Vatican, in which a body of 88 elder clerics, the Assembly of Experts, are convened to elect through a secret vote the new Supreme Leader. Over the last few days, it has been widely reported that the late Khamenei’s 56 year old son Mojtaba Khamenei has emerged as the leading candidate to succeed his father as the next Supreme Leader. His political strength and leadership claim are reportedly based on his close connections to the powerful Islamic Revolutionary Guard Corps (IRGC).

Mojtaba is said to have been the shadow Supreme Leader in recent years making decisions in place of his ageing father. For that reason, he is reviled by Iranians who are opposed to the regime and who have been oppressed by the regime. There are also allegations and rumours about his amassing wealth and investing in properties and opening bank accounts in London and Geneva. At the same time, there could also be sympathy for him in the ruling circles because it was not only his father and his mother who were killed in the first minute bombing but also his wife and his son. While ideologically he has been a hawk, Mojtaba is also described as a “pragmatist.” Being pragmatic in the current context, according an unnamed Tehran academic, would imply that Mojtaba Khamenei will be seeking revenge for the US-Israeli attacks on his family and his country – not through victory in war but by ensuring “the survival of the Islamic Republic.”

President Trump is not bothered about the dynamics and nuances of Iranian leadership politics and has no hesitation in inserting himself into the succession process. In an interview with the American news website Axios, Trump has declared that he wants to be personally involved in the Iranian succession process, and that the selection of the younger Khamenei would be “unacceptable” to him, because “Khamenei’s son is a lightweight.” “I have to be involved in the appointment, like with Delcy [Rodríguez] in Venezuela,” Trump went on, because “we want someone that will bring harmony and peace to Iran.”

Comparing Venezuela and Iran is no less preposterous than the Bush Administration’s decision to invade Iraq in addition to Afghanistan in order to punish Al Quaeda for 9/11. Trump now appears to be seeking not a wholesale regime change but a retail leadership change in the old regime. This is only the latest addition to his lengthening wish list for the war with no method or plan to achieve any of them. Add to the growing list the news that the CIA is putting together a Kurdish insurgent force to foment “a popular uprising” within Iran.

That would be back to the future and the return of the CIA, but in a totally different situation from what it was 73 years ago when the CIA, in partnership with Britain’s MI6, staged the 1953 coup that ousted the government of then Prime Minister Mohammad Mosaddegh and reinforced the monarchical rule of Mohammad Reza Pahlavi, the Shah of Iran. The purported plan now is to arm and organize Kurdish forces in Iran and Iraq to engage the Iranian security forces and thereby to create internal spaces for Iranian civilians to come out to the streets and take over their country. Those who are entertaining this plan are also aware of its inherent dangers and cross-border and pan-ethnic implications for Iraq and even Turkey and Syria. Trump is reportedly aware of the plan but may not be bothered about its unintended consequences.

by Rajan Philips

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How Helmut Kohl braved the tsunami, P-TOMs and Kadirgamar assassination

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Delegation at World bank meeting in Washington

This is the place to introduce the episode of ex-Chancellor Helmut Kohl of Germany. “This legendary unifier of post war Germany was at a small hotel in Hikkaduwa undergoing Ayurveda treatment when the Tsunami struck. A German Minister who owned a house in Hikkaduwa and visited Lanka regularly had recommended Ayurveda treatment to The Chancellor and head of her party- the Christian Democrats.

The German Embassy was at its wits end because Kohl had disappeared without a trace. They contacted us and we activated our Grama Sevaka network to find that Kohl had been taken to the safety of his home by a hotel employee. When we offered to send a helicopter to bring him to Colombo the Chancellor had replied that it was not necessary as he was well looked after by his host. He came by car the following day in order to thank CBK for her help.

I went to President’s House with Kohl who seemed quite relaxed in his coloured shirt, crumpled pants, a grey seersucker coat and rough boots. He was full of praise for the Sri Lankan people who had helped him and all the tourists in distress due to the Tsunami. Kohl said that he wanted to help in the rehabilitation of the south in his personal capacity. When he got back to Germany he set up a group of rich friends called “Friends of Helmut Kohl” who sent money to build a hospital in Mahamodera, Galle.

The money was lodged in the German Embassy. But the usually lethargic Health department dragged its feet on the construction work on the guise that the money was not sufficient for their grandiose hospital plans ignoring the value of the superb gesture by Kohl. Unfortunately he died before the completion of the project and therefore could not keep his pledge to come to Galle for its opening.

Later in time I was a member of a Parliamentary delegation led by Speaker Karu Jayasuriya which included Sampanthan, Rauf Hakeem, Anura Dissanayake and several others. I suggested to our group that we pay a belated tribute to Helmut Kohl who had died a few months previously. This was immediately welcomed by the parliamentarians and the organizers of the tour and we jointly paid our heartfelt tribute to a great friend of Sri Lanka who was an eye witness to the success of our rehabilitation effort.

Post Tsunami Operational Management Structure (P-TOMS)

The Tsunami was particularly harsh on the eastern and northern coastline because it was directly in the way of the giant waves created in Indonesia and deflected to our shores. It also created a transformation of the political scene and the nature of the war. The LTTE had invested considerable resources in building up its “Sea Tigers”. They wanted control of the northern seas in order to increase their supply of weapons and ammunition. The Sea Tigers established a presence in east Thailand so that arms could be purchased from Cambodia, Vietnam and Thailand. The fighting in the Indo-China theatre was over and the cut rate weapons market was flourishing.

Our embassy in Bangkok had an army officer who was monitoring terrorist activities but he was helpless because Thai officials in the lower echelons were in the pay of the LTTE. In addition to that problem, the mediocre officials of our Foreign Ministry were no match for the determined LTTEers one of whom had married an influential Thai lady. With money coming in from expatriates they had even set up a shipping line which was so well run that they could finance weapons buying for the LTTE with its profits.

We had received intelligence that the LTTE was preparing for a major “Sea Tiger” operation from their base in Mullaitivu. This base area concept shows the advanced thinking of the LTTE which was attempting – then unsuccessfully – to even manufacture a low cost submarine. Fortunately for us the Tsunami wiped out the base of the “Sea Tigers” together with many of their assets such as boats, proto-type submarines and diving gear.

True to form they sent signals for talks which they had earlier broken. Their diaspora had mounted a campaign to collect funds for rehabilitation. At this stage the UN got into the act and with the World Bank and IMF persuaded the CBK government to consider a power sharing arrangement principally for the rehabilitation of the North and East. It was to be called P-TOMS. CBK appointed Jayantha Dhanapala as the head of SCOPP – a secretariat to coordinate the relief effort in the North and East. The World Bank appointed Peter Harrold, its representative in Colombo, to coordinate the P-TOMS effort with SCOPP.

Estimates were made by SCOPP regarding the amount necessary for the rehabilitation of the North and East. This budget became the talking point of several successive regimes who promised to allocate such funds in exchange for Tamil votes in the North. Mahinda Rajapaksa’s agents held this figure as a bait to promote a boycott of the Presidential poll in 2005 which threw the election which was in Ranil’s pocket to MR thereby changing the destiny of the LTTE as well of the country. [MR cleared the 50 percent hurdle by only 25,000 votes].

Perhaps to strengthen the push for P-TOMS, Kofi Annan the Secretary General of the UN arrived with a large contingent of staffers and I was asked to meet and greet him in Katunayake. We gave Annan a grand welcome but he seemed distracted and was only interested in getting his Swedish wife who was hanging back, into the spotlight. CBK had several discussions with him but we ran into a snag in that he wanted to visit the North and meet Prabhakaran.

Perhaps some of the big powers had got to him as he was in the midst of a scandal about his son from his first marriage who was facing charges of corruption. The scandal was rocking UN headquarters. Annan who was elevated from his earlier status as a UN functionary to satisfy African members, was according to several biographers, indebted to the west and could not end his tenure to the satisfaction of the majority of the UN membership.

CBK, already under pressure for mishandling the P-TOMS campaign, was adamant that Annan should not meet the LTTE which would have given the terrorists parity of status with the SL state. Since such an interpretation was circulated by virtually all political parties in the South she was pushed to a very difficult position. After much discussion Annan settled for a helicopter tour of the North. I found that he was a weak leader who was led by his nose by Mark Mallock Brown – his chief of staff, who had been in charge of UN operations even during its disastrous forays in the Congo.

Mallock Brown was later identified as a camp follower of the West who compromised the credibility of the UN. I have memories of Mallock Brown holding forth on their next step here while Annan and Dhanapala were mere passive listeners. This Western initiative of P-TOMS did not finally see the light of day. But it split the ruling coalition of the PA and JVP irrevocably and Mahinda Rajapaksa burnished his credentials as an opponent of the project. He became popular with the PA and its allied parties over and above CBK.

When the P-TOMS project was to be placed before Parliament Mahinda as Prime Minister refused to present it on the floor of the House. CBK was too weak to dismiss him partly because Lakshman Kadirgamar also was a strong opponent of P-TOMS. Instead she got Maithripala Sirisena to present the proposal. But the Opposition which was joined by the JVP including its functioning Ministers, took to the streets. The JVP members demonstrated and disturbed the proceedings from the well of the House and then resigned “en masse” from the government putting its majority in jeopardy. Mahinda’s anti-P-TOMS stand endeared him to the JVP, which had earlier preferred Kadirgamar to him, and helped him to garner votes which went a long way in ensuring his ultimate victory. He had become so powerful that CBK had no option but to accommodate him.

Assassination of Lakshman Kadirgamar

Another blow was struck at CBK and the government by the I TTE when they assassinated Lakshman Kadirgamar near the swimming pool of his house. He had a successful kidney transplant in India – with a Buddhist monk from Balangoda donating a kidney – and was asked to swim regularly as exercise by his doctors. I knew of this arrangement because when we travelled together he always asked the Foreign Office to put him tip in a hotel with a heated swimming pool.

He was about to enter the water in the swimming pool when a LTTE sniper shot him through a window in a neighbourhood flat. This dastardly crime wits condemned unanimously by the international community. India sent her Foreign Minister to attend the funeral. Ksdirgamar’s death brought CBK’s Government to the brink of collapse. The JVP though leaving the Government respected LK and paid a tribute to him by arranging for their leaders to follow his hearse on foot to Kanatte.

It must be mentioned here that LK nearly pipped Mahinda for the post of PM in 2004. He had the backing of the JVP who wanted CBK to appoint LK and in the alternative appoint Maithripala Sirisena as PM. He was also supported by India but CBK was afraid that Mahinda will break up the party if he was deprived of the Premiership. After LK’s demise she undertook a mini reshuffle and Anura Bandaranaike had his ambition of being Foreign Minister realized.

To succeed him as Minister of Industries and Foreign Investment she appointed me in addition to my portfolio of Minister of Finance. Arjuna Ranatunga was the Deputy Minister of Industries and I left most of the administrative work to him. When we had an investment promotion meeting in Delhi I invited Arjuna and Aravinda de Silva to be our delegates and they stole the show among the cricket mad Indian investors. All the tables at dinners hosted by us were taken and we had many friends appealing to us to get them reservations even at the last minute.

We had such good relations that I was invited to take part in popular TV talk shows. I remember that Shekhar Gupta invited me for a discussion on our health services with Kajol – the top Hindi film actress who was brand ambassador for Narendra Modis “clean Bharat” campaign. She was a charming young lady who recounted her enjoyable stay in Sri Lanka when she accompanied her mother Tanuja who was shooting a film in Colombo with Vijaya Kumaratunga as her co-star.

After LKs murder the fear of the LTTE was so strong that CBK could not even attend the funeral ceremony. PM Mahinda Rajapaksa represented her. This death was a bitter blow to me because as an old Trinitian friend he would always consult me on party matters. I still have a letter he wrote to me about a coffee t able book on the art of Stanley Kirinde which he sponsored in honour of our mutual college friend.

(This book is available at the Vijitha Yapa bookshops)

(Excerpted from vol. 3 of the Sarath Amunugama autobiography)

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The amazing biodiversity of Sri Lanka:

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Lyre-headed Lizard - Sinharaja

Nations Trust WNPS Monthly Lecture

An overview of the plants & animals on this magical island

Thursday 19 March 2026, 6.00 pm, Jasmine Hall, BMICH

In the first part of this talk, Author-Photographer Gehan de Silva Wijeyeratne points out that Sri Lanka is disproportionately rich in species. He presents possible reasons for this and then makes the case that Sri Lanka is one of the best all-round wildlife destinations in the world. In the second part of the talk, he takes a whirlwind tour of several branches of the tree of life from bacteria to elephants. He uses this tour of life forms as a framework to showcase the richness of biodiversity in Sri Lanka.

He points out that very little has been done on the study of groups such as fungi and mosses and remarks how his proposal for a special visa for exchange programs, internships and volunteering could enable local academics to gain access to expertise and experienced volunteer hours from people overseas who have a passion for these areas of natural history.

With plants, he outlines the major groups of plants which are the bryophytes, lycopods, ferns and spermatophytes. The latter also knows as seed plants include the conifers (gymnosperms) and flowering plants (angiosperms). He makes reference to what is found in Sri Lanka to illustrate the importance of certain groups, such as the dipterocarp trees which are the giants of the rainforest. His photographs will illustrate examples such as carnivory, because plants employ a wide range of life strategies.

The talk will provide a very brief outline of the animal kingdom with its vast and sprawling evolutionary tree. Starting with animals that evolved early such as the sponges, he will draw attention to a few of the phyla which holds larger animals. Not surprisingly, more attention will be given to the vertebrates which command most of the popular attention. However, he will also reference invertebrate groups such as the butterflies and dragonflies, the two most popular groups of insects. Although Gehan de Silva Wijeyeratne was the first to brand Sri Lanka for big game safaris, in this talk, he will bring in many of the other plant and animal groups which although lacking ‘safari appeal’ are nevertheless important in terms of biodiversity and being the subjects of research.

As Sri Lanka positions itself as a destination for high-value, experience-driven tourism, the conservation of its natural heritage becomes not just an environmental priority but an economic imperative. This lecture will be especially valuable for tourism professionals, hospitality leaders, policymakers, conservationists, students, photographers, and nature enthusiasts seeking to understand the true asset underpinning Sri Lanka’s future.

by Gehan de Silva Wijeyeratne

According to Rohan Pethiyagoda, ‘Gehan de Silva Wijeyeratne is without question the most celebrated field naturalist the country has produced’. Bill Oddie (British TV Naturalist) has said no single individual has done so much to publicise a country for its wildlife. The speaker has authored and photographed more than 25 books and 400 articles and has played a pivotal role in branding Sri Lanka as a wildlife destination.

The WNPS Monthly Lecture Series, established in 2000, is one of Sri Lanka’s longest-running and most respected conservation knowledge platforms. Featuring leading local and international experts, the series addresses critical environmental issues through science-based insights and open public dialogue. Beyond the lecture hall, these sessions foster collaboration, inspire research, and often seed conservation projects and advocacy initiatives. The series remains a cornerstone of Sri Lanka’s conservation community—connecting knowledge with action

The Lecture is supported by Nations Trust Bank and is open all, entrance free

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