Features
Whither Meritocracy? Reimagining the Grade Five Scholarship examination in Sri Lanka
Prime Minister and Minister of Education, Higher Education and Vocational Education Dr. Harini Amarasuriya citing a 2024 survey, highlighted that 20,000 students left school with no trace, 80,000 were chronically absent, and of the 300,000 children admitted annually, only 40,000 or 13.3% enter government universities while 150,000 or 50% exit into vocational or private education, leaving the futures of many unaccounted for.
She further noted that the current system fails to adequately prepare students—especially girls—for employment, despite their academic strengths, with female workforce participation lagging 50% behind males. Dr. Amarasuriya stressed the need to move beyond exam-centric selection and embrace more holistic evaluation methods. She said that the reforms will begin next year with Grade 1 and Grade 6, marking the start of a transformative journey in Sri Lanka’s education system. She also said they propose to move away from exam-centric selection toward more holistic and flexible evaluation systems, and the reforms will begin in Grade 1 and Grade 6 starting next year. This article focuses exclusively on the Grade 5 Scholarship Examination, given its central role in shaping forthcoming educational reforms. While recent policy discourse—particularly as articulated by the Prime Minister—emphasises a shift away from exam-centric selection toward more holistic and flexible evaluation systems, I argue that this framing overlooks the deeper, structural issue at hand. The core problem is not the format of the examination itself, but the entrenched socioeconomic inequalities that manifest starkly across rural and urban school settings. Rural and estate schools continue to suffer from a lack of essential facilities, placing their students at a significant disadvantage and undermining the promise of equitable access to educational opportunity.
Primary education in Sri Lanka marks the foundational phase of formal learning, spanning Grades 1 to 5 and typically enrolling children between the ages of 5 and 10. This stage, made compulsory since 1999, emphasises holistic child development through activity-based and student-centered pedagogies that nurture cognitive, social, and emotional growth. The curriculum integrates core subjects such as language, mathematics, science, and environmental studies, aiming to build essential literacy and numeracy skills while fostering curiosity and creativity. Along with the Year 5 examination, during this period, there are two more public examinations, namely, G.C.E. (O/L) examination (at the end of Grade 11), and G.C.E. (A/L) examination (at the end of Grade 13), which are compulsory stages in the academic journey of a student. These examinations attract the excessive attention of students, parents, and schools. Combined with parental pressure to ensure that their children perform well, each of these examinations has placed students under intense stress. Candidates who successfully complete these examinations become eligible for placement in state universities aligned with their chosen field of study.
Further, now, as an incentive to successful candidates a bursary of Rs. 750 per month per student is given to economically disadvantaged but academically gifted students (communicated to me by Professor Sarath Ananda). In the 2024 examination there were 323900 candidates sitting for the examination and only 51244 had above the cut off marks, which is around 15%. This limited eligibility criterion of getting passing marks results in a significant barrier, excluding numerous qualified students from underprivileged backgrounds.
Historical Legacy of the Grade 5 Scholarship Exam
The Grade 5 Scholarship Examination, focus of this paper is a nationally administered, highly competitive test introduced by educational reformer Dr. C. W. W. Kannangara in 1947 (Christopher William Wijekoon Kannangara. Born on October 13, 1884, in the village of Randombe near Ambalangoda, he is widely celebrated as the Father of Free Education in Sri Lanka). Conducted annually by the Department of Examinations under the Ministry of Education, the exam serves dual purposes: identifying academically gifted students in rural, less developed areas for placement in prestigious national schools and awarding financial scholarships to support their continued education and enabling social mobility for children from economically disadvantaged or geographically marginalized communities. Over the years, this assessment has become a central component of Sri Lanka’s education system, significantly influencing the academic paths of thousands of students annually.
Kannangara’s concept was innovative in prioritising merit over wealth or location as the basis for quality education. His reforms aimed to remove socio-economic barriers, allowing disadvantaged students with strong academic abilities to access elite national schools through a scholarship exam. These schools offered better resources and opportunities, making the exam a key tool for expanding educational access across different social groups.
Its launch coincided with the establishment of Madhya Maha Vidyalayas, or Central Colleges, which were strategically situated in semi-urban and rural regions. These schools were more than just administrative expansions; they embodied Kannangara’s philosophy of equity and decentralisation. By placing high-quality institutions in areas often neglected by colonial education planning, Central Colleges created a new axis of academic excellence outside urban, Colombo based hubs in rural centres. The Grade Five Scholarship Examination served as the bridge connecting promising students to these institutions, weaving together policy, infrastructure, and individual aspiration.
In practice, the exam’s early years saw thousands of children—many from farming families, coastal communities, and remote villages—catapulted into the nation’s academic mainstream. For many, it was the first and only chance to transcend inherited limitations. The psychological value of the exam, too, should not be underestimated; it instilled belief in the idea that talent could triumph over circumstance. Over time, it became deeply embedded in the national consciousness, not just as an assessment, but as a rite of passage and a symbol of upward mobility.
While later decades saw the exam evolve in form and consequence—often criticized for its competitiveness and pressure—it remains a cornerstone of Sri Lanka’s educational ethos. Its origins, rooted in the transformative aspirations of Kannangara and his allies like A. Ratnayake, reflect a time when education was seen not just as a service but as a social equalser. Today, revisiting that founding vision offers both inspiration and critique, urging policymakers to ask whether the exam still serves its original purpose, and how it might be reimagined to meet the changing needs of an unequal world.
At the inception of the Central College programme in Sri Lanka, spearheaded by Dr. Kannangara, 54 Central Colleges were established between 1943 and 1947. These schools were strategically placed across electorates to decentralise access to quality education and serve as the backbone of Kannangara’s free education reform. The very first Central College established under Dr. Kannangara’s free education initiative was Akuramboda Central College, located in the Matale District, which is now called Weera Keppetipola Central College. It was founded in 1943, marking the beginning of a transformative era in Sri Lankan education. These institutions, including well-known schools like Horana Taxila, Polonnaruwa Royal, and the C. W. W. Kannangara Central College in Matugama, was designed to decentralize educational opportunity and provide quality schooling beyond the urban centres. Together, they served as the backbone of the Central College system, laying the foundation for widespread access to education and becoming pivotal in advancing social mobility and regional equity throughout Sri Lanka.
A. Ratnayake (Ratnayake Wasala Mudiyanselage Abeyratne Ratnayaka) was crucial in developing the Grade Five Scholarship Examination during its early years. As a senior administrator working closely with Dr. Kannangara, he helped implement the vision of free and equitable education in Sri Lanka by establishing and expanding Central Colleges. Ratnayake designed systems to identify talented students from rural areas, making the scholarship exam a pathway to school admissions and financial aid. He promoted merit-based selection to maintain the credibility of the process. Though less celebrated than Kannangara, Ratnayake’s administrative leadership ensured the scholarship program became a lasting fixture in Sri Lankan education reform.
Although no comprehensive public record exists of all notable individuals who have benefited from the Grade Five Scholarship Examination, numerous prominent Sri Lankans have credited it with shaping their educational trajectories. Historically, the examination has functioned as a critical gateway—enabling students from rural or economically marginalized communities to enter elite schools, thereby unlocking pathways to higher education and professional advancement.
The Grade Five Scholarship Examination, originally created for rural students, is now a major national competition, administered by the Department of Examinations to 9- and 10-year-olds in their final primary year, it is offered in both Sinhala and Tamil throughout the country. High performers of this examination gain access to elite schools, like Royal College and Ananda College and financial bursaries, offering many families a pathway to upward mobility.
Controversies and Calls for Reform
The 1981- Education White Paper, the 1988 – Kingsley Report, the 1993 – School Development Bill, the 1997 – Jayathilaka Committee Report, the 1999 – School Review Proposal (plan to close 3000 schools), the 2005- Tara Harold Report, the 2007 University Status Review Commission etc. were all proposals that have been widely debated but, have not been implemented. However, in each of the above cases, no matter how much public protest the reforms were subject to, there was a specific official document presented that could be discussed.
The exam has now become highly competitive, prompting debates about the stress it places on children and its shift from a student milestone to a parental pursuit. Increased tuition and rote learning have distorted its purpose, raising questions about its effectiveness in measuring ability. Only about 10% of candidates receive scholarships or school transfers annually, showing its limited impact.
Additionally, disparities in primary education—such as differences in resource allocation, availability of qualified teachers, and infrastructure—have impacted the intended equity of the exam. Students from under-resourced schools may encounter disadvantages, regardless of their aptitude. As a result, there have been proposals for reform, such as making the exam voluntary and increasing quotas for admissions to popular schools. Some view the exam as encouraging perseverance and discipline, while others believe it increases stress and maintains socioeconomic differences.
Currently, the Grade Five Scholarship Examination is at the centre of debates on educational equity and reform in Sri Lanka. The Prime Minister has proposed replacing it with a modular evaluation system to reduce pressure on students and parents. As the nation seeks a more inclusive and effective education system, the exam’s future remains uncertain, though its impact as both an opportunity and a point of controversy is well established.
Socioeconomic status and academic performance and deeper structural
inequities in access to quality education:
The current implementation of the examination deviates from the original goals and principles of the programme, as evidenced by candidate performance in the 2023–24 cycle, which is analysed in the following section. Data for this section were obtained from Year Five examination reports from the Department of Education. (See Graph 1)
The 2024 Grade 5 Scholarship Examination data from Sri Lanka (above graph) reveals a stark correlation between socioeconomic status and academic performance, underscoring the persistent inequities embedded within the education system. Socioeconomic status emerges as a strong predictor of performance, as evidenced by the disproportionate representation of upper-income students in the highest score bands. In the 91–100 and 81–90-mark ranges of Paper II, upper-income students—particularly females—consistently outnumber their lower-income counterparts, suggesting that access to resources, parental education, and enriched learning environments significantly influence outcomes. Conversely, lower-income students are heavily concentrated in the 41–60-mark range, with a steep drop-off in representation beyond the 70-mark threshold.
This disparity is especially pronounced among lower-income males, who are underrepresented in scholarship-qualifying bands and face compounded disadvantages due to both economic constraints and gendered patterns of academic disengagement. The cumulative frequency data further illustrates that most of the lower-income students fall below the competitive cutoff, raising urgent questions about the fairness of a system that rewards privilege while overlooking structural barriers. These findings call for a recalibration of scholarship criteria and targeted interventions to ensure that merit is not narrowly defined by socioeconomic advantage.
In 2024, the performance of candidates in the Grade 5 Scholarship Examination shows mixed results compared to previous years. While 77.96% of candidates obtained marks 70 or above, slightly higher than 77.75% in 2023, this is still lower than the 82.97% in 2022 and 86.83% in 2020. The percentage of candidates obtaining marks 100 or above dropped to 37.70% in 2024, which is lower than 45.06% in 2023, 47.81% in 2022, and significantly lower than 66.11% in 2020. However, there was an improvement in the percentage of candidates meeting the cut-off, with 16.05% qualifying in 2024 compared to 15.22% in 2023 and 14.64% in 2022. The mean marks in 2024 were 107.25, showing a decline from 111.74 in 2023 and 115.11 in 2022, while the standard deviation of marks was 30.88, indicating slightly less variability compared to 34.98 in 2023 and 32.17 in 2022. Overall, while there is a slight improvement in the percentage of candidates meeting the cut-off, the performance in terms of higher marks and mean marks has declined compared to previous years. (See Graph 2)
To be Continued
By ProF. Amarasiri de Silva ✍️
Features
Sri Lanka’s rice conundrum: Time to stop managing crises and start fixing the system
Prof. Ranjith Senaratne,
Emeritus Professor in Crop Science and former Vice-Chancellor,
University of Ruhuna and General President of the Sri Lanka Association for the Advancement of Science (2023) and
Prof. Prasad Jayaweera,
Dean, Faculty of Computing, University of Sri Jayawardenapura
Rice is not merely another crop in Sri Lanka. It is our staple food, an integral part of our history and culture, and a foundation of the civilisation that flourished around our ancient hydraulic systems. Revered as Buddha Bhogaya, the Buddha’s crop, rice has sustained our people for more than two millennia. Yet, remarkably, a country with such a profound relationship with rice continues to lurch from one rice crisis to another.
At one time, we have a surplus. At another, we face shortages. Prices rise sharply, consumers complain, farmers struggle to obtain remunerative prices, millers and traders become the focus of public attention, imports are hurriedly arranged, and governments announce yet another set of measures to contain the crisis. Then, after the immediate problem subsides, the matter recedes from the national agenda, until the next crisis arrives.
Why does this keep happening despite decades of agricultural research, policy interventions, expert committees and public debate?
Perhaps because we have been asking the wrong question. The fundamental problem is not simply how to produce more rice. Nor is it merely a question of prices, imports, fertiliser, farmers, millers or markets. The rice conundrum is a complex national systems problem.
We cannot solve a system by fixing its parts in isolation
Sri Lanka’s rice sector is an intricate web of interconnected systems involving agriculture, land, water, climate, technology, finance, energy, transport, markets, trade, governance, institutions and consumer behaviour. A decision made in one part of this system can have consequences, sometimes unintended, in another.
A change in fertiliser policy, for example, can affect productivity and production costs, which in turn influence farmer profitability, market prices and the need for imports. Irrigation decisions affect not only production, but also water availability, energy use and environmental sustainability. Guaranteed prices influence farmers’ cropping decisions, while import policies can simultaneously protect consumers and weaken incentives for domestic production. Likewise, market concentration can affect both the price received by farmers and the price paid by consumers. This is precisely why isolated interventions so often produce disappointing results. We keep treating symptoms while leaving the underlying system largely untouched.
For decades, we have generated valuable scientific knowledge on individual aspects of rice production and marketing. But knowledge generated within disciplinary and institutional silos does not automatically translate into solutions to complex real-world problems. What is needed now is a fundamentally different way of thinking.
From a “rice crop” to a “rice system”
The first step is to stop looking at rice simply as something that is grown in a paddy field.
The rice system begins with land, water, seed, inputs, technology and finance. It extends through cultivation, harvesting, drying, milling, storage, transport, wholesale and retail marketing, and finally to the consumer’s table. At every stage, there are different interests, incentives, constraints and actors: farmers, farmer organisations, input suppliers, machinery operators, millers, traders, wholesalers, retailers, financial institutions, government agencies, researchers and consumers.
And hovering over the entire system are climate change, changing consumer preferences, technological transformation and national economic conditions. A weakness anywhere in this chain can compromise the performance of the whole system.
Consider post-harvest losses. If significant quantities of rice are lost because of inadequate drying, storage or processing facilities, increasing production alone cannot solve the problem. Similarly, if farmers produce efficiently but face weak markets and poor bargaining power, productivity gains may not translate into improved livelihoods.
The question, therefore, should not be “How much rice can we produce?” but “How can we make the entire rice system work better?”
That requires us to see the connections.
The missing ingredient: reliable, real-time information
There is another fundamental weakness that deserves urgent attention: we still lack a comprehensive, integrated, interoperable and reliable national information system for rice. Information is scattered among different institutions, often collected using different methodologies and not necessarily available when decisions need to be made.
How much rice will actually be produced? How much is in storage? What is the likely demand? Where are the emerging production shortfalls? What are the stocks held by different actors? How are prices moving along the value chain? What are the likely consequences of climate conditions? Without timely and reliable answers to such questions, policymakers are forced to make critical decisions with incomplete information. This is not merely an administrative inconvenience. It is a national food-security vulnerability.
Sri Lanka should therefore seriously consider establishing a National Rice Intelligence and Decision Support System (NRIDSS), an integrated digital platform that brings together relevant real-time information from agriculture, meteorology, irrigation, markets, trade, statistics and other institutions. Such a system could support production forecasting, market monitoring, import decisions, early warning and evidence-based policy formulation. In an increasingly uncertain climate and volatile global economy, this should no longer be regarded as a luxury. It is becoming an essential component of national food-system governance.
The deeper problems cannot be ignored
A systems approach would also force us to confront some uncomfortable structural realities. Why does productivity remain relatively low despite decades of research? Why are so many holdings too small to achieve economies of scale? Why are modern technologies and precision agriculture not being adopted more rapidly? Why do farmers often have limited bargaining power? Why do substantial losses occur after harvesting? Why can market power become concentrated in a relatively small number of actors? Why are guaranteed prices sometimes announced too late to influence farmers’ production decisions? Why are policy interventions so often reactive rather than proactive? And how will droughts, floods, temperature extremes, changing rainfall patterns and emerging pests affect the stability of rice production in the years ahead? These are not separate questions. They are parts of the same system.
From crisis management to systems governance
Sri Lanka does not need another isolated discussion about rice. What is needed is a national policy dialogue and action forum that brings all relevant actors together, not merely to exchange speeches, but to develop a shared understanding of the system and agree on what needs to be done. Such collaboration must go beyond consultation or the exchange of views. The different parties need to work together from problem definition through to implementation, bringing their diverse knowledge, perspectives, interests and practical experience into a common process.
Farmers bring contextual and experiential knowledge; industry actors understand market realities and operational constraints; scientists contribute evidence and analytical capabilities; policymakers bring institutional and regulatory perspectives; while technology and data specialists can provide new tools for understanding and managing the system. When these different perspectives are brought together systematically, they can reveal interdependencies, challenge assumptions, identify feasible interventions and generate solutions that are evidence-based, practically implementable and socially acceptable.
This is the essence of a transdisciplinary systems approach: not simply working across disciplines, but bringing together multiple stakeholders and multiple forms of knowledge to co-create solutions and share responsibility for outcomes. The process should therefore go beyond presentations and speeches. It should involve systems mapping, causal analysis, stakeholder dialogue, scenario planning and the participatory identification of the critical bottlenecks and leverage points in the rice system. Most importantly, it should distinguish between what is urgent and what is important, and between interventions that merely alleviate symptoms and those capable of changing the underlying behaviour of the system itself.
We need an implementation roadmap, not another report
There is, however, one important caveat. Sri Lanka has no shortage of reports, recommendations and policy documents. What we often lack is sustained implementation. Any national initiative on the rice conundrum must therefore end not with another set of broad recommendations but with a prioritised national action roadmap. It should identify short-, medium- and long-term actions, assign institutional responsibilities, establish timelines and define measurable indicators of progress. The ultimate objective should be to move Sri Lanka from reactive crisis management to proactive systems governance.
A national opportunity
The rice conundrum may, in fact, provide Sri Lanka with an opportunity that extends well beyond rice to deal with other important crops. If we can demonstrate that a complex national problem can be addressed by bringing together science, policy, stakeholder knowledge, real-time information and systems thinking, the approach could become a model for addressing other persistent challenges, from climate resilience and water security to energy, food systems and disaster risk.
The choice before us is therefore quite stark. We can continue responding to each rice crisis as it emerges, adjusting prices, arranging imports, appealing to millers, reassuring consumers and supporting farmers, only to repeat the cycle later. Or we can step back and ask a more fundamental question:
What is it about the way our rice system is structured and governed that continually produces these crises?
That is the question that needs to be answered. Sri Lanka has the scientific expertise, institutional capacity and stakeholder knowledge required to do so. What is needed now is the willingness to bring these fragmented sources of knowledge together and examine the rice sector as one interconnected system.
Our ancient civilisation understood the importance of interconnectedness: land, water, agriculture and society were organised as parts of a larger whole. Perhaps, in confronting the modern rice conundrum, we need to rediscover that systems wisdom, this time supported by modern science, technology, real-time data and transdisciplinary thinking. The time has come to stop merely managing the rice crisis. It is time to fix the system that keeps producing it.
It is against this backdrop that the Sri Lanka Association for the Advancement of Science (SLAAS) proposes to convene shortly a “National Policy Dialogue and Action Forum on the Rice Conundrum in Sri Lanka”, bringing together the key stakeholders across the rice system. The Forum is intended to provide a platform for moving beyond piecemeal and reactive interventions towards a coordinated, evidence-based and transdisciplinary systems approach, one capable of generating lasting and pragmatic solutions to what has become an “island-shaking national issue”.
Features
This curse of partisan politics in Sri Lanka
78 Years of Demagoguery, Not Democracy
by Brigadier Ranjan de Silva
rpcdesilva@gmail.com
On the 4th of February every year, we raise the lion flag and speak of democracy. We speak of 78 years of “self-rule.” But honesty demands we ask: what kind of rule have we actually had? It was not democracy. Democracy is government for the common good, constrained by law, informed by reason, and accountable to truth.
What Sri Lanka has had for 78 years is demagoguery — government by manipulation, by party, and by passion.
Defining the Curse:
The dictionary defines demagoguery as “political activity that seeks support by appealing to the desires and prejudices of ordinary people rather than by rational argument.” Its tools are simple: divide the people, promise the impossible, demonize the opponent, and govern for the next election, not the next generation. That is the political culture we inherited in 1948 and perfected since.
78 Years of Evidence:
The record is not ambiguous. Policy by Pendulum – 1948–2024. Instead of a national development plan, we got a partisan wrecking ball. 1956: The “Sinhala Only Act” was passed not after linguistic study, but as an election mobilization tool. 1970-77: The SLFP nationalized private enterprise and imposed import controls. 1977: The UNP reversed course with an open economy overnight. 2005-2014: Mega infrastructure was built on Chinese loans with no feasibility transparency. 2015-2019: Those same projects were called “white elephants” and stalled. 2020-2021: The organic fertilizer ban was announced as a populist “green” policy, reversed 6 months later after it collapsed agriculture and food prices. The Colombo Port City, Hambantota Port, and the Central Expressway all followed the same pattern: started, stopped, rebranded. The country pays twice. The party takes credit once. Economics as Election Candy. Demagoguery is expensive. 1960s: Subsidized rice to win rural votes, leading to the 1971 food crisis.
2005-2014:
Fuel subsidies and public sector hiring sprees that doubled the wage bill. 2019:
Unfunded tax cuts that removed Rs. 500 billion in annual revenue with no offset. By April 2022, external debt hit $51 Billion and we defaulted for the first time. The party that cut taxes was not in power to manage the IMF program. The party that inherited it was blamed for the austerity. This is the cycle. Institutions captured. A democracy needs referees. We turned them into party cadres. The 17th Amendment 2001 created independent commissions. The 18th Amendment 2010 abolished them. The 19th 2015 restored them. The 20th 2020 gutted them again. Police transfers, university vice-chancellors, and state bank chairmen have all been decided by party headquarters, not merit.
When the institution serves the party, the citizen gets leftovers.
Identity over Ideas: From 1956 to 1983 to 2009 to 2022, our elections have been won on fear, not spreadsheets. “They will erase your language.” “They will sell the country.” “Only we can protect Buddhism/the minorities/the nation.”
Rational debate on debt, productivity, or climate adaptation never wins a rally. Prejudice does. That is demagoguery by definition.
Party Interest subverted the National Interest. The core damage of 78 years of partisan politics is this: the nation became secondary to the party. Need power sector reform? Impossible, because our unions will strike. Need to cut 300,000 ghost employees? Impossible, because our voters will defect. Need a 20-year education and export plan? Impossible, because it won’t show results before the next election. So, we borrowed. We patched. We lied. The result: a railway system that still runs on 1950s engines, hospitals without paracetamol in 2022, and a brain drain of 300,000+ skilled workers since the crisis. The parties rotated. The country declined.
The Opposition’s Original Sin and here, all parties share guilt equally. In opposition, the job is not to govern. It is to destroy. The UNP in the 60s called the SLFP “communist.” The SLFP in the 70s called the UNP “imperialist.” The JVP called both “traitors.” The SJB, SLPP, and NPP today use the same script with new logos. Every tax is “anti-people.” Every reform is “a sell-out.” Every crisis is proof the other side is evil and must be removed at any cost. Then they win. And implement 80% of what they opposed. Because demagoguery has no principles, only positions. 78 years of unmerciful, bad-faith criticism has not produced accountability. It has produced cynicism. The public now believes all politicians are the same — because for 78 years, they have behaved the same.
Breaking the Curse:
Changing the party in power will not end this. We must change the incentives that reward demagoguery. Three reforms are non-negotiable: Bind future Parliaments to national policy. Pass 10-year frameworks for energy, education, and public debt with 2/3 majority protection. Infrastructure and fiscal rules should outlast one government, as they do in Chile and New Zealand. Depoliticize the state. Independent commissions for police, elections, public service, and bribery must have constitutional budgets and appointment panels that exclude MPs. No more 18th/20th Amendment style rollbacks. Demand better from voters We must stop rewarding the best slogan and start demanding the best spreadsheet. Town halls over rallies. Costings over promises. A 5-year plan over a 5-minute speech.
In 1948, we did not inherit democracy. We inherited an election. For 78 years we have used that election to choose our favourite demagogue. The prize has been debt, division, and decay. The curse of partisan politics will only end when citizens and leaders agree on one principle: Party second. Country first. Until then, February 4th will remain a ceremony, not a celebration.
Features
Developing markets for fruits, vegetables and flowers in the Gulf
Export diversification – Missing the wood for the trees – Part II
by Gomi Senadhira
Sri Lanka established its diplomatic presence in the Gulf region only in the early 1980s. First, a small embassy was opened in Abu Dhabi, covering the UAE. Then in 1982, embassies were opened in Jeddah and Kuwait. The embassy in Jeddah covered Saudi Arabia while Kuwait was responsible for Kuwait, Oman, Qatar and Bahrain. Commercial Diplomats were also assigned to these two embassies. A senior private sector executive, with experience in marketing, was posted to Jedda as the commercial counsellor. I was posted to Kuwait as a second secretary (Commercial). Our instructions were very clear. Focus not only on traditional exports. Product diversification was a priority.
Developing Markets for Agricultural Products
At that time, Minister Lalith Athulathmudali had just launched his Export Production Villages (EPV) programme. He believed that the EPVs working closely with the exporters would provide an ideal opportunity for rural households to directly benefit from the government’s new open trade policy. Agricultural products, particularly fruits and vegetables, were a key component of this approach and the ministry thought that the Gulf countries, with large Sri Lankan communities, would have a ready-made market for these items. Thus, from day one we were compelled to explore the market for nontraditional exports; fruits and vegetables (F&Vs) were on the top of our priority list.
From cane baskets to cardboard boxes
Fortunately, the market for the F&Vs products in the region was at a very early stage of development. That provided an opportunity for Sri Lankan exporters, who were also inexperienced, to work with the importers and grow together. For example, in Kuwait, one of our first customers for F&Vs was a small supermarket where the manager was a Sri Lankan. After the first shipment arrived, he invited me to inspect the shipment. I visited the supermarket and was shocked by what I saw. While produce from other countries was packed nicely in cardboard boxes, our packaging mirrored transport to Manning market, cane baskets! As a result, fresh produce had suffered significant damage. A long report, with photographs, to the trade ministry produced an immediate response. After all, this was a pet project of the Minister. Within weeks, shipments were packed in cardboard boxes. Immediately afterwards, an expert on packaging from the Commonwealth Secretariat was sent to Kuwait with an official from the EDB to study the problem.
By then, we had also managed to develop a friendship with the management of the Salmiya supermarket, a large upmarket supermarket patronised by wealthy Kuwaitis and expats. It was a cooperative and the chairman was a Kuwaiti public servant. I could only meet him after 6 PM when his large office functioned as a diwaniya, a cherished cultural space in Kuwaiti society. Guests moved in and out the room. I had to spend time with them sipping many cups of tea. Though that meant at least two hours on each visit, it helped greatly to develop a close relationship. The general manager was an efficient and friendly Palestinian. After many visits we had succeeded in getting an order for F&Vs. The day after the first shipment arrived, I got an urgent call from the GM to come and inspect it. Once again, I was in for a surprise. Inside the cold room, the consignments from other countries were stacked neatly on top of each other, while vegetable boxes from Sri Lanka had collapsed once placed on top of each other, crushing the produce within.
Fortunately, our packaging experts arrived in Kuwait soon after this incident. They spent two days in the Salmiya Supermarket, studying the packaging from other origins. We were also successful in assuring the GM our packaging would improve. After that, packaging improved and exports moved smoothly. With that, Sri Lanka emerged as a small but reliable supplier to the mainstream market, not just the ethnic segment of the market.
Export of Fresh Vegetables by Sea
Towards the end of my tour, a Sri Lankan businessman requested me to find a buyer for cabbages, which he was prepared to export in large quantities by sea. I introduced him to the largest fruit and vegetable importer in Kuwait. Their regular suppliers of similar vegetables were Jordan, Lebanon and Syria. Luckily, the company was keen to diversify the supply sources. A few weeks later, the first container load of cabbages from Sri Lanka arrived in Kuwait. Immediately after the arrival of the container, I visited the company. They were pleased with the quality and the price and were looking forward to importing more fruits and vegetables. Unfortunately, that turned out to be a one-off event. Later on, when I was back in Sri Lanka, the exporter informed me that he couldn’t continue with it due to the problems with the local supply chains.
Floriculture
During the period I was asked by the EDB to explore the market for floricultural products, more particularly for cut flowers. At that time Kuwait was a relatively large importer of cut flowers and live plants. The main suppliers were the Netherlands and Colombia. Importers were also reluctant to move out of the established supply chain, particularly due to “snob value” associated with the product from Europe. However, after some difficulties, one importer agreed to place a pre-paid trial order. After the arrival of that shipment, he was impressed by the quality of the product and the orders expanded rapidly. As a result, by the end of 1985 Kuwait had become a major buyer of Sri Lanka’s floricultural products.
From village to global markets
As a result of the proactive promotional work undertaken by the EDB and the embassies in the region, by 1985, Sri Lanka had managed to acquire a small but significant share of the F&V and floriculture markets in the GCC countries. We had also identified domestic supply chain issues that hindered exports. All that was done, long before Southeast Asian or African countries even entered into that market. In fact, my Southeast Asian colleagues used to contact me often to reserve “durian” for them at the “Sri Lankan supermarket”.
Most importantly, a substantially large share of produce from Sri Lanka in Kuwaiti supermarkets originated in the EPVs. Of course, that didn’t just happen. The ministry (or the minister) using the carrot and stick approach “encouraged” exporters to buy the produce directly from the newly established EPVs. (The writer can be reached at senadhiragomi@gmail.com)
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