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Death of Lalith Kotelawala, Karu J’s resignation and winning the Vanni

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With Lalith and his wife

Lalith Kotelawala

As I write this I get news of the death of Lalith Kotelawala, an outstanding entrepreneur. He was born with a silver spoon in his mouth as he was the only son of Justin Kotelawala, a pioneer Sri Lankan businessman and the younger brother of Sir John Kotelawala. Justin K started a successful insurance company in the face of competition from British insurers who dominated the field before independence. He also set up a finance company which catered to the rising native middle class in addition to owning large swathes of real estate partly acquired by his marriage to an heiress from one of Colombo’s richest families.

Gamani Corea was his nephew being his aunt’s only son. However with the change of regime in 1956 Lalith K, Justin’s son, lost most of his fortune due to the take over of the family insurance company and other assets. He had to start from scratch and build up his own companies including a Bank – the Seylan Bank and a finance company-Golden Key – both of which became very successful. His diversified group named Ceylinco entered into tourism, gem and jewellery, health and many other fields which had not been exploited by Sinhala businessmen.

His great success and penchant for publicity brought challenges to the Kotelawala business house for the second time. Lalith’s publicly declared appetite for political leadership either as President or Minister of Finance in a UNP regime brought on him the wrath initially of Nivard Cabraal and later the Rajapaksas who were in no mood to brook such a rich and powerful rival who had impeccable UNP credentials.

I had no qualms about supporting him as Investment Minister especially when he wished to set up a five star hotel in the “golden mile” of hotels on Galle road. He had successfully negotiated with the Hyattt group to partner him in this enterprise. Since his businesses were cash rich at this stage he saw no difficulty in financing this mega venture. He invited me and a few others to inaugurate this venture by participating in the groundbreaking ceremony. The building was just intruding onto the Colombo skyline when calamity hit him.

When the real economy contracts and legitimate business returns decline, small time savers are badly affected and they tend to go to get rich schemes and risky financial institutions which give them a bigger return. Lalith’s Finance company “Golden Key” provided such a refuge with high interest payments and a trustworthy name (Kotelawala) to guarantee the safety of their investments. Another problematic factor was that many politicians of the MR government saw in Lalith’s company a safe haven for their ill gotten gains away from the prying eyes of the tax authorities.

It must be said that he too was complicit in that he would have pandered to those crooks happy in the knowledge that big money was flowing into his coffers which would help to sustain his ever increasing promises of interest payments which were way higher than what was offered by the regular banking system. It soon became a Ponzi scheme. No wonder then that the Governor of the Central Bank was apprehensive of these developments. His objections were summarily dismissed by Lalith leading to a verbal battle between him and Cabraal. That undid him in the end. MR preferred to stand by Cabraal.

Lalith’s bravado irked many powerful politicians who were afraid he would take to “the family business” of politics like his uncle Sir John. MR who first befriended him, abandoned him when the Central Bank warned him of a possible financial catastrophe. This became a reality when a senior politician who had amassed a large sum of ill gotten money and deposited it with “Golden Key” was assassinated by the LTTE. Soon after that tragedy his relatives pulled out their money sending the finance company into a liquidity crisis.

The manager of the company whom Lalith trusted had released the money without informing him. There was a run on the company as soon as news of a large scale withdrawal became public. On previous such occasions the Central Bank would intervene to prevent a collapse. But in this case they did not and Golden Key had to be liquidated leaving tens of thousands of small depositors penniless. It was a mega scandal and with his wife embroiled in a money laundering charge Lalith fell from grace.

He was remanded in Welikada prison with his health ruined and his reputation in tatters. Later I visited him several times in his home to find that he was a broken man. With his premature death a pioneer mega local investor was lost and the local investment scenario received a heavy blow.

Karu resigns

At about this time a dispute flared up between the President and Karu Jayasuriya. Numerous complaints were directed to MR that Karu as Minister of Public Administration was favouring UNP official, particularly Grama Sevakas, who were appointees of the UNP from the time of JRJ and Premadasa. If there was one thing MR was sensitive about it was the need to keep his backbenchers happy. On the other hand, Ranil succeeded in luring Karu back with the promise of making him the Deputy leader of the UNP.

Karu who was a great believer in Sai Baba and other assorted soothsayers, realized that he could not make much headway in the PA which was already full of ambitious and unscrupulous politicians. Karu’s departure led to a mini reshuffle and I was sent back to the Ministry of Public Administration while my friend, Anura Yapa, became the new Minister of Investment Promotion.

Back in my old Ministry I found that the northern war was intensifying with our armed forces regaining the initiative for the first time. This was largely due to the efforts of Gotabaya and Sarath Fonseka who at that time had the confidence of the President. MR used all his famous PR skills to ensure that he got the adulation of the public for the advances of the army. He visited the newly liberated areas and encouraged the soldiers for which he deserved the highest praise as none of his predecessors had visited the battle front.

Says Chandraprema, “The President visited Vakarai on February 3, 2007 soon after the area had been cleared. This ready willingness to visit the war zone despite the risk of attacks from infiltration teams was what gave the armed forces the feeling that this was a President to whom the war was a national priority and not just a regrettable necessity”. He posed for a photo op with the Special Forces that liberated Vakarai and visited a Kovil. The Hindu priest who garlanded him was shot dead a few days later by the LTTE showing that MR had bravely taken a mighty risk.

The rolling successes of the army meant that my Ministry had to bend its energies to maintain civil administrations in the North and East. It became challenging because the LTTE were forcing the inhabitants in the contested northern areas to follow them while retreating in the Vanni leaving “ghost towns” behind. The LTTE had even carried away furniture and roofing from homes in order to create a mobile “human shield” to save themselves from attacks by the armed forces. They also used civilians to dig large trenches along the way to impede the advance of heavy weapons and transports of the army moving into the LTTE held areas.

I was in touch with my Government Agents who had a difficult time often caught in the crossfire between the army and the LTTE. The I TTE brutalized the public servants. For instance the AGA of Tirukkovil in the east was murdered by the LTTE because he did not help the insurgents. But once the army secured strategic points like Kilinochchi and Vauniya the local administration was able to function effectively again. The Tamil parties raised issues in Parliament, probably on the instigation of the LTTE, and I had to answer them in the House after consulting my GAs and Defence Secretary Gotabaya Rajapaksa.

Gota was always courteous and keen to brief us about the latest developments in the theatre of battle. We had to keep in mind that the LTTE was keen to recruit public servants to their cause. When a joint committee was to be setup after the signing of the Indo-Lanka agreement, the LTTE insisted on appointing an AGA of ‘Trincomalee – Pathmanathan, who was a hall mate of mine at Peradeniya, as their nominee and Chairman of the committee. Since we refused to recognize a public servant as a nominee of the LTTE this project was abandoned despite the best efforts of the Indian High Commission.

Winning in the Vanni

After the clearing of the east and establishing the local administration there, the army launched a pincer attack on the extensive LTTE held territory in the Vanni. One army group extended the defence line from the west of Vavuniya towards Mannar bringing that area under government control. The army initially faced stiff resistance from LTTE fighters. The traditional army approach of moving in large formations on a broad front which was the “Sandhurst trained” army leaders strategy was not working since the LTTE could break through the thinly manned army lines.

Chandraprema describes well the change of tactics under SF and GR which brought success to the army; “The army had learnt the hard way during the ‘decade of darkness’ in the 1990s that moving in large formations presents an easy target for LTTE artillery. After assessing where they went wrong in the past operations, the army stopped operating in traditional formations like platoons, companies and battalions and split up instead into small groups, the eight-man team being the norm. After the monsoon ‘stand still’ the army resumed its advance along the hinterland of western Vanni. Another task force operated along the coastal belt and captured the strategic town of Silavaturai which had earlier been a major camp of the army to prevent smuggling and illicit immigration, being the closest to the Port of Colombo.”

However the next objective of capturing LTTE bases Adampan and Anandakulam in the “rice bowl” was an arduous undertaking. To break the impasse the army followed the tactic of opening up many fronts to break up the LTTE forces which earlier had the opportunity of deploying in strength on a few strategic points. After heavy fighting, Adampan was captured in May 2008. By the end of November 2008 the vital point of Pooneryn was captured and the threat to the Jaffna encampment from LTTE long range artillery was eliminated thereby releasing the troops in Jaffna fort for the Mullaitivu offensive.

On January 2, 2009 the symbolically crucial town of Kilinochchi was captured and the fighting moved to Muhamalai which was considered a “jinx” for the army which had in the past failed to go beyond it. This time around the army adopted a strategy of attrition wearing down the LTTE formations through RPG attacks and close range encounters. Another set of troops came down from Jaffna and breached the LTTEs second line of defence of Muhamalai. By the first week of January 2009 Muhamali was in army hands and troops could move down to Elephant Pass via Palai where the LTTEs resistance was overcome. The LTTE cadres then retreated towards the jungles of Mullaitivu where the final battles were destined to take place.

Diplomatic games

Once the LTTE together with their hostage Tamil civilians, were driven into an increasingly small quadrant in Mullaitivu, they launched a publicity and diplomatic campaign to stop hostilities and rescue the remaining leaders and their families including Prabhakaran and his wife and children. It was a multipronged effort which included mobilizing the UN, the diaspora and NGOs, the UK and USA and especially India. It was a formidable combination and it stands to the credit of MR and GR that they dlid not succumb to their threats as well as blandishments.

In many ways it was MR’s finest hour. Each of these interlocutors were fully engaged and it was made clear that no compromise was possible. Credit must be given also to the Foreign Minister Rohitha Bogollagama who resisted the advice of his officials and fully backed MR in his approach to the interlocutors. The biggest pressure came from India. Fortunately the Indian High Commissioner in Colombo Alok Prasad stood by the Sri Lankan government and the “Troika” of three representatives of each side which met regularly kept each other informed of the ground situation.

The Secretary-General of the UN sent his special envoy Satish Nambiar to broker a ceasefire. MR and GR stood firm against it and dismissed the possibility of sending a UN fact finding mission to Mullaitivu. The NGOs were represented by a high level delegation led by Bernard Kouchner of France and David Milliband of the UK. Fortunately MR was able to call their bluff by taking a tough stand that their advice was not warranted by the facts on the ground.

An interesting side line was MR’s decision not to dignify their visit. He moved to Chandrikawewa which was close to his ancestral home in Medamulana. In this he was influenced by his experiences with Gaddafi in Libya. When he visited Libya, Gaddafi, a Bedouin, had pitched camp in the desert and MR was received in that encampment. He emulated Gaddafi and the visiting firemen from Europe had to be driven, sweating profusely in their western clothes to the humid dry zone hotel veranda for their audience with MR.

It was not a lesson that they would easily forget. By a coincidence both these selfish do gooders were not able to achieve their ambitions of high office in their countries and faded ultimately from public view. All these interlocutors were under the impression that the civilians trapped in the quadrant were attacked by our army. Actually the reverse was the case. The army literally held their fire and when the civilians began to cross the lagoon they were welcomed and even fed on army rations which were meant for the soldiers.

It was the LTTE that tried to prevent the civilians from leaving them as their human shield was being eroded. Fortunately Indian officials who monitored the evacuation saw this and stood by us even though Tamilnadu which was facing an election, as expected, used the Sri Lanka situation as a popular rallying cry. To help in this dire situation we agreed to issue a statement that heavy artillery would not be used to fire on the shrinking LTTE quadrant. These were astute and professionally sound Foreign Ministry moves for which MR, GR and Bogollagama should be given the credit.

There is another “inside story” which attests to MR’s luck during this period. When the post of Sec. Gen. of the UN fell vacant with the retirement of Kofi Annan, Jayantha Dhanapala was a candidate to succeed him. He had the backing of the west because he had handled discussions on the non -proliferation of strategic weapons to their satisfaction. US President Bill Clinton supported him. “This pro west tilt alarmed the Non Aligned countries and India promoted Sashi Tharoor as a rival candidate. Jayantha’s candidature was dead in the water as MR had been persuaded by local businessmen to throw our country’s support behind Ban Ki Moon who eventually got the job. It was no secret that the South Koreans threw a lot of money around to get this job for their countryman since they had been poorly received in the UN system.

MRs decision turned out to be a lucky one as Ban Ki Moon adopted a soft line with our government. After he and MR issued a joint statement the UN did not bully the Sri Lankan government. All in all this episode was handled astutely and the war was concluded on our terms. Prabhakaran and nearly all of the top leadership were killed together with large numbers of their terrorist fighters. It was the only instance at that time in the whole world where terrorism was comprehensively defeated.

Speaking at a meeting to felicitate GR at that time I drew attention to the need to tell the world about the humane way in which the civilians who crossed the lagoon were treated. The Sunday Observer of May 27, 2012 reported the following: “Senior Minister of International Monetary Cooperation said Sri Lanka’s humanitarian mission of rescuing over 150,000 Tamil civilians from the clutches of the LTTE’ was the greatest humanitarian operation in modern times. He said, “our heroic forces crossed the lagoon at Pudumathalan and went through difficult terrain to cross the earth bund built by the LTTE. Then they facilitated the crossover of 150,000 civilians to the government controlled area. It was a heroic effort and one of t he greatest of humanitarian operations”.

He said that our case has not been properly presented to the global community. “We are only talking about what happened at the Nandikadal lagoon. Nobody talks about what happened at the lagoon in Pudumathalan”.

(This book is available at the Vijitha Yapa Bookshop)

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



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Features

Sri Lanka’s rice conundrum: Time to stop managing crises and start fixing the system

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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”.

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This curse of partisan politics in Sri Lanka

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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.

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Developing markets for fruits, vegetables and flowers in the Gulf

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Image courtesy Export Development Board)

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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