Opinion
Rising electricity tariffs: A national economic crisis beyond monthly bill
Tariff Increase: Visible and Real Impact
The recent increase in electricity tariffs in Sri Lanka has created serious social and economic concerns. The increase applies especially to consumers who use more than 180 units of electricity. Their bills may rise by more than 18%.
At first, this may look like a decision that affects only “high electricity users.” But in reality, the impact is much wider. It affects households, businesses, industries, services, inflation, investment, and national competitiveness.
Sri Lanka is now facing a situation where electricity bills continue to rise again and again. This should not be seen as a one-time tariff revision. If the price of one unit of electricity keeps increasing, the deeper problem is not only household consumption. The real problem is the high cost of electricity generation. Therefore, the unit price of electricity cannot be reduced in a sustainable way unless the cost of generation is reduced first.
The main concern is that Sri Lanka still does not seem to have a clear, practical, and measurable long-term plan to reduce generation costs. What we often hear are political explanations, temporary promises, and hopeful statements. But hope alone cannot reduce electricity tariffs. What the country needs is a realistic national plan. It must focus on low-cost power generation, efficient management, renewable energy investment, and serious reforms in the electricity sector.
Electricity is a basic foundation of a modern economy. When its price increases, it affects the cost of living, business costs, production, and national competitiveness. According to the Public Utilities Commission of Sri Lanka (PUCSL) announcements, the May 2026 revision applies especially to domestic consumers above 180 units, government institutions, large industries, and several GP2 and GP3 categories.
Direct Impact: Pressure on the Middle Class
The tariff increase directly affects middle-class and upper-middle-class families that use more than 180 units of electricity. In urban and semi-urban life, many electrical appliances are now part of daily life. These include refrigerators, water pumps, computers, internet devices, washing machines, fans, rice cookers, and other household equipment.
Many families exceed 180 units not because they live luxuriously, but because modern life requires electricity. Therefore, it is not realistic to say that this decision affects only the rich. Children’s education, online learning, work from home, small home-based businesses, water supply, communication, and basic household safety all depend on electricity.
According to PUCSL examples, a household using 210 units may see its bill increase from Rs. 9,570 to Rs. 11,330. This is an increase of about Rs. 1,760 per month, or nearly Rs. 21,000 per year. For families whose incomes are not rising at the same pace, this is a serious burden. It reduces savings. It affects education, health, food, and daily consumption. When electricity bills, food prices, fuel prices, and loan costs rise together, middle-class confidence falls. Families begin to cut non-essential spending. This also reduces market demand. Therefore, the electricity tariff increase is not just another monthly bill. It is a deeper pressure on living standards, savings, and economic security.
Impact on the Business Sector
The wider impact of electricity tariff increases is seen most clearly in the business sector. Factories, hotels, restaurants, supermarkets, cold storage facilities, bakeries, printing businesses, IT firms, and small and medium enterprises all depend heavily on electricity.
When electricity costs rise, production and service costs also rise.
In 2024, the industrial sector alone used 4,622 GWh of electricity. This was 30.4% of total electricity sales. The General Purpose category used 3,472 GWh, or 22.9%. This shows that a large share of electricity consumption takes place in the production and service economy.
For large industries, electricity is essential for machinery, refrigeration, lighting, packaging, water pumping, and quality control. When the unit price of electricity rises, the cost of producing each item also rises. Businesses then have only a few choices. They can pass the cost to consumers. They can reduce their profit margins. Or they can reduce production.
For small and medium businesses, the pressure is even greater. Large companies may be able to invest in solar power, energy-efficient machinery, or special credit facilities. But small businesses have limited options. For a bakery, salon, grocery shop, or small restaurant, a higher electricity bill directly affects daily cash flow. In the end, these costs enter the prices of goods and services. The price of food at a restaurant, goods at a shop, products from a factory, and services at a hotel can all rise because of electricity costs.
In the long run, this can also affect employment, wage increases, business expansion, and overall economic activity.
Inflation and the Cost of Living
Higher electricity tariffs can create a risk of rising inflation. Electricity is not only a household bill. It is also a key cost in food production, storage, transport, industry, hotels, hospitals, schools, and many services.
When electricity costs rise, that cost gradually enters the prices of goods and services.
Sri Lanka’s recent experience shows how dangerous this can be. In September 2022, annual inflation based on the Colombo Consumer Price Index reached 69.8%. Food inflation reached 94.9%, while non-food inflation reached 57.6%. This shows how quickly living costs can rise when fuel, electricity, transport, and exchange rate pressures come together. In April 2026, CCPI-based annual inflation also increased from 2.2% in March to 5.4%. Non-food inflation rose from 2.9% to 6.8%. This is an important warning.
Under the CCPI base year 2021=100, the category “Housing, Water, Electricity, Gas and Other Fuels” carries a weight of about 31.6% in the consumer price index. Therefore, higher electricity and fuel costs can have a direct impact on inflation. The risk is that an electricity bill increase does not stop with the electricity bill. It can later spread into food prices, medicine prices, school services, hospital services, restaurant prices, and transport costs. This is known as a second-round effect.
When inflation remains high, real household income falls. Even if salaries remain the same in numbers, people can buy less with that salary. There is another danger. If people and businesses expect prices to keep rising, businesses may raise prices early. Workers may demand higher wages. Suppliers may sign contracts at higher prices. This can create a wage-price spiral. Therefore, the inflationary impact of electricity tariff increases should not be treated lightly. The country needs more than tariff increases to cover institutional losses. It needs a long-term plan to reduce the cost of electricity generation, diversify the energy mix, and protect the cost of living.
Coal, Oil, and the Cost of Power Generation
One major reason for rising electricity tariffs is the way electricity is generated. Consumers see only the final bill. But behind that bill are fuel choices, power plant efficiency, import costs, exchange rates, and weaknesses in energy planning.
A major part of Sri Lanka’s electricity generation still depends on coal and fuel oil. In 2024, total electricity generation was 16,802 GWh. Coal accounted for 32.6%. CEB oil-based generation accounted for 9.3%. IPP oil-based generation accounted for 4.6%. Together, coal and oil-based generation made up nearly 46% of total generation. This is very important for tariff decisions.
Coal power plants such as Norochcholai provide relatively low-cost base power. But when such plants face maintenance problems, technical failures, or unexpected shutdowns, the country loses low-cost electricity. It then has to use more expensive oil-based power plants.
According to CEB 2024 data, the fuel cost of one unit of electricity from Lakvijaya coal power was Rs. 17.96 per kWh. But some diesel and LAD power plants cost more than Rs. 40 to Rs. 100 per kWh. This clearly shows how the generation mix affects the unit price of electricity.
Coal and oil are also imported fuels. They depend on foreign exchange. When global fuel prices rise, when the rupee weakens, or when geopolitical risks increase, electricity generation costs also rise. Therefore, a real discussion on reducing electricity tariffs must begin with reducing generation costs. Sri Lanka needs a practical plan to move towards lower-cost, reliable, and locally available energy sources.
Inefficiency and Policy Weaknesses
Another major reason for repeated tariff increases is long-term inefficiency in the electricity sector. Old transmission systems, power losses, delayed projects, inefficient procurement, political interference, and the absence of a stable energy policy have weakened electricity planning.
An efficient electricity system needs timely investment in low-cost power plants. Existing plants must be properly maintained. Transmission and distribution systems must be modernized. Renewable energy projects must be connected to the grid without unnecessary delay. When these steps are not taken on time, the country becomes dependent on expensive emergency solutions. Sri Lanka has natural advantages in solar, wind, and small hydro power. But delays in approvals, limited grid capacity, legal uncertainty for investors, and frequent policy changes have prevented the country from using this potential fully. This is a lost economic opportunity.
Another weakness is that decisions in the electricity sector are often driven more by politics than by technical and economic logic. Tariff decisions, power plant selection, project approvals, and institutional reforms should be based on professional judgment. When decisions are made for short-term popularity, the long-term cost is paid by the public.
Therefore, a plan to reduce electricity tariffs cannot be only a tariff announcement. It must be a full reform programme. It must reduce generation costs, reduce dependence on imported fuel, strengthen the grid, speed up renewable energy, and reduce institutional inefficiency. Without such a plan, electricity bills will continue to remain a burden on the people.
Impact on National Competitiveness
High electricity costs do not affect households alone. They also affect production costs, export prices, investment decisions, tourism costs, and the service economy. Therefore, electricity tariffs are a key factor in national competitiveness.
When electricity costs rise, it becomes harder for exporters to compete on price. Sectors such as apparel, food processing, rubber, plastics, packaging, printing, and light manufacturing all depend on electricity. International buyers are highly price-sensitive. If Sri Lanka’s production costs rise, its export competitiveness weakens.
Tourism is also affected. Hotels, restaurants, guest houses, and villas need electricity for air conditioning, lighting, laundry, kitchens, water heating, and digital systems. When electricity bills rise, room rates and service charges may also rise. This can make Sri Lanka less attractive compared to regional competitors. The IT, BPO, software, and digital service sectors also need reliable and affordable electricity. Higher power costs and uncertainty about supply can reduce the confidence of foreign clients and investors.
Foreign investors consider energy costs when choosing a country. They also look at labour costs, tax policy, legal stability, market access, and infrastructure. If electricity is expensive, the system is inefficient, and policy is unstable, investors see the country as risky. In the long run, this can affect new investment, jobs, wage growth, and economic growth. Therefore, electricity tariff increases must also be seen as a national competitiveness issue. If Sri Lanka wants to expand exports, strengthen tourism, attract investment, and create jobs, it needs a reliable electricity system at a reasonable cost.
A Positive Side: An Opportunity for Energy Efficiency
This situation should not be seen only negatively. Higher electricity prices can also encourage people to think more seriously about energy efficiency.
According to CEB 2024 data, electricity exported to the grid through rooftop solar increased from 632 GWh in 2023 to 867 GWh in 2024. This is a 37% increase. The number of rooftop solar accounts increased from 39,827 to 73,050, an 83% increase. This is a positive sign. It shows that people are looking for energy alternatives. But this alone is not enough. Individual solar adoption is useful, but the country still needs a reliable, coordinated, and long-term national energy plan to reduce overall generation costs.
What Should Be Done?
Sri Lanka cannot depend only on short-term solutions. The country needs a national policy that builds long-term energy security and economic stability.
Renewable energy must be accelerated. Sri Lanka has strong natural advantages in solar, wind, and hydro power. But delays in projects, policy instability, and investment barriers have prevented the country from using this potential fully. Households and businesses should be encouraged to use solar power. This can be done through affordable loans, tax relief, and a clear legal framework. If people can produce part of their own electricity, pressure on the national grid will also reduce.
Efficiency, Transparency, and Public Responsibility
To solve this problem, inefficiency and waste in the electricity sector must be reduced. Transmission losses, delayed projects, weak management, and political interference must be addressed. Financial transparency and professional management in institutions such as the Ceylon Electricity Board are also essential. This can help rebuild public trust.
The public also has a role. People should use electricity responsibly. They should use energy-efficient appliances, reduce waste, and change consumption habits where possible. But public responsibility alone cannot solve the problem. Even if people save electricity, the unit price cannot fall if national generation costs remain high. Therefore, responsible consumption by the public and a serious government plan to reduce generation costs must go together.
Rising electricity tariffs are not only about a higher electricity bill. They affect the entire economy. They influence household living costs, business costs, inflation, investment, and national competitiveness. The long-term solution is not repeated tariff increases. It is an efficient, diversified, and sustainable energy policy. The price of one unit of electricity can be reduced only when the cost of producing that unit is reduced. Political hope is not enough. Sri Lanka needs a practical national programme with clear targets, a timeline, investment support, faster renewable energy development, and reforms to reduce inefficiency in the electricity sector. Without such a programme, promises to reduce electricity bills will sound to the public like another political explanation and another hopeful statement.
by Prof. Ranjith Bandara
Opinion
Ranasinghe Premadasa: The man who would not take ‘No’ for an answer
Had former Sri Lankan President Ranasinghe Premadasa lived to celebrate his 102nd birthday, it would have fallen on June 23, 2026. Premadasa, a politically self-made leader from humble beginnings, served as the second Executive President of Sri Lanka from 1989 until his assassination in 1993. He was the first non-aristocratic “commoner” to rise to the nation’s highest office, breaking the long-standing dominance of the landed elite, high-caste aristocracy, and wealthy political families. Emerging from modest social origins, Premadasa represented a rare example of social mobility in Sri Lankan politics. He often marked his birthdays in remote villages through the “Gam Udawa” (Village Reawakening) programme.
It is fitting to begin this column with an anecdote connected to Gam Udawa. Following the Gam Udawa ceremony in Buttala, Premadasa took a helicopter ride with several officials and identified a site in Mahiyangana for the next programme. He instructed the Director of Town and Country Planning to prepare a sketch plan for the location.
When the Director later returned to Colombo and met the President, Premadasa asked, “Where is the sketch plan?” Instead of producing a plan, the Director handed over a small piece of paper and said, “Sir, when I stepped out of the vehicle, a youth handed me this note.”
Premadasa brought the note to a meeting at Sethsiripaya attended by nearly one hundred officials and read it aloud. The message stated: “If you visit again, you will not leave alive.”
Holding up the note before the gathering, Premadasa asked sharply: “If a mere threat is enough to stop an officer from carrying out his duty, what use are such officers to the country?”
Ascendency to the Presidency
Premadasa assumed office during one of the most turbulent periods in the country’s post-independence history. Sri Lanka was engulfed in twin civil conflicts while still grappling with the consequences of the sweeping economic and constitutional changes introduced through the open economy reforms and the 1978 Constitution. Poverty had deepened, export growth had slowed, balance-of-payments pressures persisted, and external debt continued to mount. The nation stood politically divided, economically strained, and socially unsettled.
At a public meeting, Premadasa once remarked that the Presidency was not “a crown placed upon my head, but a melting pot.” He believed governance should not remain the preserve of a privileged few. Ordinary people, in his view, had to participate in every aspect of governance — from policymaking to implementation. Citizens should share both the responsibility and the benefits of development.
Premadasa often argued that the root cause of unrest was the reduction of people into “mere voting machines operating once in five years.” It was within this philosophy that he introduced the concept of poverty alleviation into Sri Lanka’s national development agenda. He frequently observed that while institutions existed for every crop, few truly existed for the people themselves.
Janasaviya (People’s Strength) Programme
Out of this thinking emerged the people-centred programme Janasaviya, which combined welfare with production-oriented development. Its objective was not merely to help the poor survive, but to enable them to rebuild their lives with dignity and self-reliance. Purpose was alleviating poverty and empowering low-income households. Initially, Janasaviya beneficiaries received baskets of essential goods, many of which consisted of inexpensive imported utensils and crockery purchased through cooperative channels. Premadasa quickly recognised the contradiction and directed that the baskets instead contain locally produced items such as brooms, pottery, serviettes, and other village products. In this way, he envisioned the village not only as a marketplace, but also as a centre of production and economic self-sufficiency. Approach was to combine welfare assistance with credit, livelihood support, and production-oriented activities aimed at self-reliance.
Landmark 200 Garment Factory Programme
Thereafter, he launched the 200 Garment Factory Programme with the purpose of decentralising industrialisation and create rural employment. Approach was to Utilize U.S. garment quotas while offering incentives and infrastructure support for investors willing to establish factories outside major urban centres. Transformed apparel into a major foreign exchange earner while creating employment opportunities, particularly for rural women. At the time, many mocked the idea, questioning whether the country could survive by “selling underwear to Western markets.” Premadasa, however, remained undeterred. Within a few years, garment factories emerged across rural Sri Lanka, bringing investment, employment, and economic activity to regions long neglected. For the first time, investors moved decisively beyond Colombo into the country’s remote periphery.
Those who attended his weekly review meetings at the BMICH would remember the relentless follow-up that characterized his leadership. Secretaries and heads of institutions responsible for urban development, housing, electricity, telecommunications, water supply, and roads rushed from office to office to ensure they could report back to the President with a simple answer: “Yes, Sir, it is done.”
One incident became emblematic of his problem-solving style. A Ceylon Electricity Board official informed an investor that electricity could not be supplied because there were no poles available in the area. Premadasa summoned the official and asked a single question: “Are there coconut trees in the area?” When the answer was yes, he immediately ordered that the lines be drawn using the coconut trees until proper poles could be installed. The issue was resolved within minutes.
Premadasa personally inspected garment factory construction sites and monitored even the smallest details. During one visit, he noticed that several roofs in the adjoining village remained uncovered. Turning to the factory manager, he instructed that by the time he returned to declare the factory open, every roof must be properly covered.
Other Key Programmes
Gam Udawa (Village Reawakening) Movement
Purpose: To provide housing for the poor and improve rural living conditions.
Focus: Development of model villages with housing, roads, schools, water supply, and health facilities. The programme was Sri Lanka’s most ambitious rural housing initiative that drew international recognition leading to the United Nations’ declaration of International Year of Shelter for the Homeless.
Presidential Mobile Service
Purpose: To reduce bureaucratic delays and bring government services directly to the people.
Method: Ministers, secretaries, and senior officials travelled to the provinces to resolve public grievances on the spot creating direct engagement between the state and rural communities.
Industrial, Educational, and Cultural Initiatives
Established the Koggala Free Trade Zone and transformed the Greater Colombo Economic Commission into the Board of Investment of Sri Lanka (BOI), helping attract export-oriented investment.
Introduced free school uniforms to ease the burden on low-income families.
Established the Tower Hall Foundation to support theatre and music and introduced pension schemes for elderly artists.
Job Bank
On a concept introduced by President Premadasa, the Government established a “Job Bank” with the objective of eliminating arbitrary recruitment practices and political patronage in public sector appointments. Unemployed youth were invited to register with the Job Bank, and President Premadasa directed that vacancies in the public sector be filled from among those registered candidates through competitive written examinations and interviews rather than through ministerial recommendations or political influence.
Resource Profile
On the instructions of President Premadasa, a Resource Profile for every Divisional Secretary’s Division (DSD) was also prepared. These profiles contained detailed information on the resources, development potential, issues, and opportunities within each DS Division. The system became an important planning and development tool and continues to be updated and maintained in DSDs across the country.
Independent Verification of Information
He was also known for independently verifying information rather than relying on a single source. Soon after assuming office, a tragic accident occurred at an unprotected railway crossing in Ahangama, where a train collided with a school bus, killing and injuring students. Deeply disturbed, Premadasa ordered the General Manager of Railways (GMR) to ensure that within two weeks no unprotected railway crossing remained in the country.
When the GMR later submitted a report confirming completion, Premadasa sought independent verification from police stations around the country. One station confirmed that a crossing still remained unprotected. The GMR then faced his day of reckoning.
On another occasion, Premadasa invited opposition political parties for discussions on proposals relating to District Development and Coordination. Arriving early for the meeting, I quietly peeped into the room and saw a man rearranging furniture and shifting chairs. As he turned, smiling, he said, “Ah, you have come.” It was President Premadasa himself.
Impatience with Negativity
His impatience with bureaucratic negativity was legendary. During a discussion on land alienation and ownership, officials repeatedly explained why his proposals could not be implemented. Finally, in visible frustration, he remarked: “I have asked you to do 101 things. Is there not even one thing that all of you can do?” The officials understood the message immediately.
On another occasion, he promised every local authority a set of maintenance machinery before the Sinhala and Tamil New Year. Procurement was entrusted to a senior minister, who failed to secure the equipment in time. Yet once the President fixed the date for the handing-over ceremony, “No” was not considered an acceptable answer.
At the time, I had imported several maintenance machines for distribution among Divisional Secretariats. The minister contacted me urgently and requested that I lend him the machinery for one week. Trusting his assurance, I agreed. The following day itself, the machines appeared at Galle Face Green, where an elaborate ceremony was held with local authority chairmen from across the country. President Premadasa commended the minister for the “prompt completion” of the task and ceremonially handed over the equipment. The following day, the relieved minister telephoned me and said gratefully: “Mr. Maliyadde, you saved my neck.”
Visionary Driven by Action
Premadasa was a visionary driven by action. Under his leadership, garments emerged as Sri Lanka’s first major industrial export, transforming an export economy that for more than a century had depended overwhelmingly on tea, rubber, and coconut. Even decades later, apparel remains the country’s principal industrial export sector.
Though not formally trained as an economist, Premadasa instinctively understood concepts that economists often confined to seminars — growth nodes, export diversification, value addition and forward and backward linkages. He transformed these concepts into practice.
He believed the economy could not depend solely on garment assembly. Garment factories, in his view, had to become centres of wider economic activity that stimulated industrial and social development. He encouraged textile production for local supply to garment factories, while also seeking to integrate Janasaviya beneficiaries into these expanding economic networks. For Premadasa, the garment factory programme was not merely an export initiative; it was a bridge linking the village poor, local entrepreneurs, and international markets within a single chain of opportunity.
Right Man for the Right Job
He also possessed a remarkable ability to identify the right man (not the right-hand man) for the right job. Political loyalty, caste, or creed mattered less to him than competence and commitment. That was why he appointed Susil Siriwardane, a prominent JVP activist who was involved in 1971 insurrection, for which he was detained and convicted by the courts, as the first Commissioner of Janasaviya. Many individuals chosen to lead his programmes came not from his own party, but from outside it.
President Premadasa held office for only four years. Yet within that brief period, he launched programmes with the scale and impact of decades of development.
Leadership Style
Premadasa’s leadership style was defined by relentless follow-up, strict monitoring, and an uncompromising belief that obstacles existed to be overcome. Officials knew they had to be prepared for action at any hour of the day. He cultivated a reputation as a leader who refused to accept the words “cannot” or “impossible.”
His vision sought to combine social welfare with a regulated market economy, pursuing what many viewed as a distinctly Sri Lankan “third path” of development. He remains remembered as a determined and action-oriented leader whose policies left a lasting imprint on Sri Lanka’s social and economic landscape.
(Chandrasena Maliyadde is a former Secretary, Ministry of Plan Implementation. He can be reached at chandra.maliyadde@gmail.com)
by Chandrasena Maliyadde
Opinion
The Plunder of Sri Lanka Through Trade Misinvoicing
A Case Study on Sri Lanka-Thailand Trade
In March 2026, a Washington-based think tank, Global Financial Integrity (GFI), released its report on “Trade-Related Illicit Financial Flows in Developing Asia” for the 2013–2022 period. The report calculates the possible misappropriation of 20.51% of Sri Lanka’s total trade value through trade misinvoicing.
A calculation of Sri Lanka’s exports to Thailand in 2024, using the same GFI methodology, shows a possible misappropriation of 207% of the export value by Sri Lankan exporters and Thai importers
The phrase “plunder of Sri Lanka” normally refers to resource extraction through violent foreign invasions with swords and guns. This article is not about them. This article focuses on a more discreet and genteel version of plunder through illicit financial flows and the stashing of foreign exchange earnings offshore through trade misinvoicing.
What is Trade Misinvoicing?
Trade misinvoicing is the fraudulent recording of key invoice information for the purpose of facilitating illicit cross-border financial flows. One of the easiest ways to identify possible misinvoicing is the study of “mirror trade” data, that is, the comparative analysis of partner-country trade data with Sri Lankan trade data. If this flags discrepancies (value gaps), those are indicators of misinvoicing. These gaps could be due to overinvoicing imports, underinvoicing exports, or phantom imports.
Overinvoicing imports occurs when Sri Lankan importers and their foreign counterparts artificially inflate invoice prices for goods. The importer remits foreign currency abroad to settle the bogus invoice amount in full, and the surplus cash is subsequently split or retained in offshore accounts.
Similarly, underinvoicing exports happens when exporters ship high-value goods (for example, gems) out of Sri Lanka but state a considerably lower price on the customs invoice and the importer pays the low price through official channels. Then the actual market balance is paid directly into foreign bank accounts.
Phantom imports occur when bogus companies are set up to execute telegraphic transfers to foreign suppliers under the pretext of importing goods, which never physically enter Sri Lanka. The recently uncovered large-scale foreign exchange fraud totalling around US$85 million linked to fictitious imports revealed by the Public Security Minister Ananda Wijepala is an example of phantom imports. However, what he revealed was just the tip of the iceberg. The annual loss from overinvoicing imports and underinvoicing exports is much larger and may be as high as US$ billion or higher.
So, whenever value gaps occur in mirror data, they should be treated as risk indicators. If the gaps are significantly large, then the authorities should immediately investigate the relevant invoices with the partner countries to find out the reasons for the disparities.
Misinvoicing in Sri Lanka
In 2017, the Washington, D.C.-based think tank Global Financial Integrity (GFI) released a landmark investigative report exposing massive gaps in Sri Lanka’s trade data due to trade misinvoicing during the period 2005–2014. The estimated amount that may have been misappropriated during the period is US$36.83 billion. This report received wide publicity in Sri Lanka. It is not clear if the authorities had initiated any investigations into this foreign exchange hemorrhage. In March 2026 the GFI released its report on “Trade-Related Illicit Financial Flows in Developing Asia” for the 2013–2022 period. The report calculates Sri Lanka’s trade value gap at 20.51% of total trade.
Underinvoicing in Sri Lanka – Thailand Trade
Why a case study on Sri Lanka – Thailand Trade?
Thailand is a relatively small export market for Sri Lanka and ranks 47th as an export destination. As per Sri Lankan customs data, in 2024 Sri Lanka’s total exports to Thailand were valued at US$ 41 million. However, according to Thai customs data, in 2024 Thailand’s imports from Sri Lanka were valued at US$ 126 million. This is a value gap of US$ 85 million. That is a massive 207% value gap… ten times larger than the global average for Sri Lanka. As the table below illustrates, these large value gaps have been growing over the years. (See Table)
A closer look at the data would reveal that the largest value gaps are under gemstones (HS 710391). It is common knowledge that the Sri Lanka–Thailand gem trade suffers from prevalent underinvoicing, resulting in millions of dollars in lost export revenue. Yet, it appears that Sri Lanka Customs and the National Gem and Jewellery Authority (NGJA) have not intervened to curtail this practice. One may argue that the trade ministry, the NGJA, or the customs do not routinely analyse mirror data. However, as Thailand is the third-largest market for Sri Lankan gems, the NGJA should have a very good knowledge of that market, including Thai customs statistics. In-depth analysis of Thai customs data is also a main responsibility of the Sri Lanka embassy in Bangkok.
Sri Lanka-Thailand Free Trade Agreement (SLTFTA)
In addition to that, Sri Lanka commenced negotiations for the Sri Lanka-Thailand Free Trade Agreement (SLTFTA) in 2018. After multiple rounds of negotiations covering trade in goods, services, investments, and customs cooperation, both nations officially signed the SLTFTA in February 2024. While preparing for these multiple rounds of negotiations, Sri Lankan trade negotiators and the embassy in Bangkok should have extensively analysed the Thai customs data. They should have also known Sri Lanka’s export data like the back of their hands. Then, didn’t they discover these massive discrepancies in data sets? If they did, did they address them during the negotiations?
Whatever happens, the gaps keep growing.
So, now it is time for the appropriate agencies to start investigating these enormous value gaps … after all, a massive US$ 85 million, 207% value gap is simply not loose cash.
(The writer can be reached at enadhiragomi@gmail.com) )
By Gomi Senadhira
Opinion
‘The Voice of Hind Rajab’: A Truth That Cannot Be Unseen
“May their hard hearts soften towards you”- Voice on the phone to Red Crescent team trying to save Hind Rajab
Nothing really prepares one for the intense experience, for that is what it was, of sharing in the helpless anguish of the Palestine Red Crescent team at the emergency call centre in Gaza, making frantic efforts to rescue the 5 year old girl trapped for several hours in a car among the corpses of 5 members of her family, gunned down by members of the Israeli Defense Force. Nor was it easy to hear the pleas of the little girl, begging to be rescued in her sweet, child’s voice for hours on the phone, as the feature film dramatizing her last hours, played the original recordings of her voice made at the emergency call center, interspersed with actors playing the roles of the desperate Red Crescent team. After that searing encounter, deep reflection is an inevitable compulsion.
8 Minutes too far
Hind Rajab’s story was already well known, from the moment the Red Crescent call centre released the voice recordings on social media, in an attempt to pressure the Israeli authorities into giving a safe route for the ambulance to reach the child, hiding in a bullet riddled car. The distance between the closest ambulance and the child was 8 minutes, according to calculations of the call center. More than two hours later, they were still pleading for approval for a safe route, to ensure this ambulance crew wouldn’t join the rest of the names of more than a dozen rescue workers on their wall, killed by the Israeli forces while on rescue missions.
The feature film “The Voice of Hind Rajab” depicting those last hours of Hind Rajab’s precious life, premiered in Colombo at the Platinum Screen, Majestic City, sponsored by the Embassy of the State of Palestine, the Sri Lanka Committee for Solidarity with Palestine and Ceylon Theatres (Pvt) Ltd, on the 18th of June 2026.
Hind Rajab, the 5 year old Palestinian girl was murdered in Gaza in January 2024. The film, produced by Brad Pitt and Joaquin Phoenix among others, won several awards: The Silver Lion Grand Jury Prize at the Venice International Film Festival, CICT_UNESCO Enrico Fulchignoni Award, Audience Award at the San Sebastian Film Festival, and Audience Award for International Feature at the Middleburg Film Festival, as well as the Main Prize (Brussels section) at the One World Festival.
The system vs Red Crescent
In the film, the vantage point is that of the members of the Palestinian Red Crescent emergency call center team who were involved in the exchange with the little girl as she lay hidden in the car, after her cousin, another little girl a few years older, was killed while on the phone to them minutes earlier. The older girl said that there were tanks next to the car and that they were shooting at her. They heard the shots, then she fell silent.
Miraculously, Hind survived that spell of shooting, and the team was able to be in contact with her while they tried to get a rescue team to reach the car in which she was hiding. The family was in compliance with an Israeli order to vacate that area of Gaza where they lived and was on their way out when their car was attacked, killing most of the occupants, except for two girls. Their only hope for survival was the Red Crescent emergency response center.
What unveils in the film is the unbearable emotional rollercoaster the members of the Red Crescent team go through, as their humanity is repeatedly tested against the requirements of a brutally lopsided, oppressive system of administrative authority which is structured with layer upon layer of permissions, approvals, co-ordinations which delay and hamper their efforts to respond urgently to an emergency.
In a story that holds tragedy within tragedy, an accumulation of hopeless despair, some of the issues of the impossible conditions of existence of the people of Gaza are laid bare. As individual members of the Red Crescent team respond to these events, their own hearts are broken by the predicament of little Hind Rajab, as they helplessly promise they would come to her aid, desperately hoping they would be able to live up to their promise. Rana, a female member of the team, keeps her talking until Rajab herself says she is dying. Rana, overcome with grief, gets her to repeat a verse from the Holy Quran, with little Hind doing so beautifully and fluently. She urges Rana to come soon to save her, which Rana knows by then, is an impossible request.
The daily encounter with the conditions of a heartless occupation come alive, as the supervisor at Red Crescent bends over backwards to comply with the list of rules and regulations even to allow an ambulance crew 8 minutes away to save a child, in a convoluted process with arbitrary decisions at each stage. As the team continues the calls to get approvals, a safe route and coordination with the IDF, a doctor at the other end of the phone hearing that permission had still not been granted says with resignation, “May their hard hearts soften towards you”.
A knife’s edge
The dramatisation of the day’s events shows the knife’s edge their nerves have to balance on, with a younger employee’s patience and tolerance of an unfair system reaching their limits in the face of the callous disregard by the system of a little girl begging to be saved. The staff at Red Crescent survive the stress by having a trained counsellor on hand, to help them deal with the deaths while on the phone to victims. The counsellor herself is finally called upon to keep little Hind company in her last minutes, teaching her to breathe deeply while imagining her favourite places.
The tragedy is that their unrelenting efforts including the release of all tapes of the little girl appeals uploaded to social media eventually succeeded in getting a safe route for the ambulance to get to her, but still failed to complete the mission to save her. The ambulance itself was shot at when it got to within 50 meters of the car which held Hind Rajab still alive, killing both rescue workers and destroying the vehicle. The logic of a hostile occupation over the Palestinian population took its predictable course, having granted permission to arrive at the site, the rescue ambulance was nevertheless attacked, simply because the occupation force could, despite every effort to stick to the rules by the Red Crescent.
The younger man’s impassioned indictment of his law-abiding supervisor at one moment shouting “We are still occupied because of men like you!” as the supervisor continued to comply with every impossible rule set upon them even at the cost of delaying the rescue effort, revealed the churning depths of a subterranean sea of emotion an occupied people must endure, keeping it controlled in survival mode until it bubbles up in tidal waves of frustration and anger. The young man who was unable to hide his emotions that day, was reportedly arrested subsequently and was killed by the occupying authorities.
Not without consequence
It is impossible not to be shocked at the bullet riddled ambulance and the totally destroyed car shown at the end of the movie. For 12 days there was no news of what happened to the girl or where the car was, until the IDF left the area. Then they found her, with the other bodies, with almost three hundred bullets in Hind Rajab. Whatever those conducting atrocities may think at the time they celebrate such “triumphs” over innocents, such continued conduct clearly impairs their humanity.
The story being told from the perspective of the Red Crescent employees, brings home the fact that these are every day traumas borne by the people of Palestine, not isolated incidents of excesses. There were young people at the Majestic Cinema who were sobbing in shocked empathy. How is it that year after year, the Palestinians bear these tragedies, as their country keeps getting smaller and smaller, their lands taken over, their buildings destroyed, and their history reduced to patches of hopelessness in a sea of gray rubble?
We have watched it together with the rest of the world for decades. Some of our own leaders have prevented or tried to prevent, and even punished those who couldn’t be prevented from speaking out against the injustices carried out in broad daylight against the Palestinian people. Fortunately, they do not represent most of the people of Sri Lanka. The Security Council held an emergency session this week, called by all 10 non-permanent members and supported by 4 of the permanent members, to debate the prevention of humanitarian aid to Gaza. One permanent member didn’t sign it.
Given the current global dynamics facilitating a peace agreement, at least in the form of an MoU, between Iran and the United States, one can only hope that things will change and one day sooner than later, all members of the Security Council will speak with one voice on the situation of Palestine, and that the courage of the film makers and all those involved in its creation will be rewarded with justice for the incredibly resilient people of the State of Palestine. May their hard hearts soften towards the long-suffering Palestinian people, innocent civilians caught up in an unending war, who in helping each other have retained their humanity in the most trying of circumstances, while their occupiers are rapidly losing theirs.
by Sanja de Silva Jayatilleka
-
Features6 days agoKilling of Colombo’s ancient trees — a warning on UN’s World Desertification Day – 17 June
-
News4 days agoCreditor receives USD 2.5 mn as Lankan public bears loss from theft of Treasury funds
-
News3 days agoCreditor not yet paid
-
News3 days agoConsumers bearing 22% tax burden despite 18% VAT claim: Dr. Harsha de Silva
-
Opinion5 days agoBeyond diagnosis: A strategic design for 7% growth by 2029 (Part I)
-
News6 days agoIndia provides military stores worth USD 5.5 mn to SL
-
Opinion4 days agoSriLankan Airbus struck by lightning
-
Editorial2 days agoFuel crisis: Beyond price debate
