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Staying alive in the long run

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A lot can happen in April. This April hasn’t been good for the government: coming in weeks after its Geneva defeat, it now faces a major issue with the pandemic, with India reportedly suspending exports of AstraZeneca. The dilemma, as it stands, reminds us of the dangers of relying on one vaccine, and on one source of procurement.

April hasn’t been good for the economy either. This is import season. Workers’ remittances are down. Tourism may be on its way up, but it is hardly enough. Trade will in all likelihood be greater than this time last year, and yet, with disposable incomes coming down, the New Year won’t look like it used to. The merchants are optimistic: “It’s important that people are preparing to celebrate the Sinhala and Hindu New Year enthusiastically,” one of them tells a reporter. But then celebration isn’t everything, nor is there much to celebrate.

Not even with the import restrictions currently in place have we been able to narrow the trade deficit by as much as we should. This is natural: a lot of economic activity takes place in the informal sector. Indeed, given the unreliability of statistics and the state of the informal sector even in normal times, it’s likely the numbers aren’t telling us the whole story.

The government has taken some steps to “go local”, ranging from shoes to cinnamon cigarettes (though promoting it didn’t do much good to Minister Weerawansa). Going local are endeavours to be welcomed. However, the question can be raised whether this entails the establishment of local industry, which is what it will take to stem the tide of widening trade deficits and depleting foreign reserves.

To state the painfully obvious, a global pandemic has failed to keep us from continuing to be a nation of merchants, financiers, and importers. It is a little unfair to blame the government over a problem built into the economy and hardly attributable to one party. Yet in all fairness to those running the show now, they just don’t seem to have recognised the need to make the transition from going local to local manufacture.

Of course, there are silver linings. Regardless of what critics may say, those at the top are taking vaccination seriously. Close to a million have already got the jab, and while doubts do exist as to whether the second jab will come, no one’s complaining too much. Though it has been riddled with shortcomings you usually expect, and get, from government programmes – a lack of planning, a failure to communicate, and rumours of “vaccination lists” – these pale once you consider that the country is, somehow, getting inoculated.

Thus, as far as vaccination is concerned, the government is doing what it can. I only wish one could say the same of what it’s doing with, for, and to the economy.

Looking at it in retrospect now, the November 2019 election brought to power the largest and possibly most diverse political grouping in recent history. Going by the election results, it even paled the 2018 local government polls. The sheer size of the SLPP-led coalition, not to mention its handling of the first wave ?????, contributed to a bigger electoral landslide nine months later. The latter cannot be marginalised: it was the first two-thirds majority an administration achieved, without enticing crossovers, in a post-war setting.

The problem with large majorities, of course, is that they’re easy to lose, even without a virus around. This one was no exception: slowly at first, then picking up speed little by little, one half of the coalition has found itself battling the other.

If the ECT deal was what brought up these dissensions, their origins can be traced to the 20th Amendment, which transferred what little power one of the most popular prime ministers of the country held to the most no holds barred president this country has seen since 1977. The Amendment signified more than just a consolidation of presidential power: it symbolised a transition from the left-populist faction of the SLPP, milling around Mahinda, to the Viyath Maga Eliya (VYE) politico-military-corporate faction, centring on Gotabaya.

The Sinhala nationalist vote – the main vote that counts, for both sides – has traditionally been limited to the heartland of the south: Rajapaksa territory. Yet as the elections of 2019 and 2020 showed clearly, the SLPP, thanks to the VYE coterie, managed to woo and win over the Kelani Valley middle-class while cutting into the UNP-SJB’s traditional base: the Catholic belt. In other words, a party that canvassed votes outside Colombo found itself winning by massive, even unexpected, margins from electorates along the suburbs of the capital.

In doing so, it achieved what Chandrika Kumaratunga did in 1994: a defection of Colombo’s corporate class – a class now involved in the SLPP’s economic programme – from a dying UNP to a more Bonapartist outfit. As with Bonaparte, the upper bourgeoisie opted for the younger Rajapaksa; they chose to see him as their salvation, discarding the old compradore class now split between the UNP and a section of the SJB. Comparisons with Napoleonic France don’t end there, incidentally: Rajapaksa’s November 2019 win happened almost exactly 170 years after Louis-Napoleon dismissed the Royalist Ministry, and 220 after his uncle took power as the country’s First Consul. Who says history has to occur only twice?

Once you see in the coalition an unwieldy mix of corporate heavyweights and trade unions, of estate owners and estate workers, it’s easy to understand the contradictions that make up the government’s economic policies, both in the short run and the long.

What are these policies? In a recent interview with the Daily Mirror, Mr Kenneth de Zilwa (a capital markets expert, business cycle economist, and member of the Monetary Policy Consultative Committee of the Central Bank) makes a convincing case against conventional economic theory: that money printing leads to inflation, that trade must be based on comparative advantage, that neoclassical economics promote growth, and that we must look up to the IMF. In other words, the choice is between letting consumer imports flood the economy, and gearing the economy towards local production; no two guesses for which of these alternatives Mr De Zilwa, and I, prefer.

If this is the underlying philosophy of the regime’s economic programme, then all I can say is, it’s about time. As the history of monetarist theory, comparative advantage, neoclassical economics, and Bretton Woods financing – IMF and World Bank – shows well, there is and has always been a rift between precept and practice with regard to conventional development paradigms: what you read in theory isn’t what comes out in implementation. De Zilwa is therefore correct: we need a new macroeconomic framework, home-grown and free of import rent-seekers. (I can safely say this is the first time I have read an economist refer to “import industry rent-seekers” critically.) That is the reset we should opt for.

And yet, however laudable such a reset may be, one thing keeps it from seeing the light of day: the class contradictions within the SLPP. In a context where policymakers allied with the current government want it to deviate from conventional paradigms and affirm policies that are geared towards domestic industries and markets, how practical would “home-grown” solutions be when the government has wooed, and won over, the same import rent-seeking conglomerate class – the same class that overwhelmingly voted the yahapalanists to power years ago – opposed to such policies? To invoke a metaphor of my own, how can you fight the lion when the lion’s in the den with you, and the meat’s in your hands?

If must, of course, be noted that the pandemic has, for a moment at least, brought all these contending classes together. This is nothing to be surprised at: in times of major recessions, corporations do not necessarily oppose state intervention. They didn’t oppose it in the US in 2008, and they haven’t done so in other countries implementing tough measures to ward off the fallout of the virus. The fact that the country’s corporate upper class has gone quiet over policymakers invoking local industry, despite its dependence on import-driven consumer-led growth, should hence point at how depressions tend, in the short term, to dampen corporate opposition to state intervention.

The time bomb will start to tick once recovery kicks in. For obvious reasons, we will not be seeing that for some time – two years in the least, if not four – but when we do, I won’t be the first to wager that despite the government’s laudable position on local industry, it will start to see its most fervent advocates from the corporate sector turn to the other side if it continues to indulge in anti-rentier rhetoric. In other words, in the short run we’ll see an alliance between the interventionists and the importers, and in the long, we’ll see a rupture.

As far as the regime’s policy of “localising” and “domesticating” the economy is concerned, then, the solution would be to go full speed ahead, setting up factories, shifting from light consumer goods to heavy capital goods, establishing an industrial ecosystem linking different parts of the economy, and orienting ourselves to production, and not just trade.

The sooner it does this, the better it will handle the clash of interests between the advocates of going local and the opponents of going local. That is not going to be easy, for in co-opting a corporate class, the regime co-opted the biggest obstacle it has in seeing through what may be the most ambitious set of reforms since 1970-1977. The government should hence ensure that not even its most powerful backers prevent it from enforcing them. Put simply, it can’t afford to appease those backers. Not in the short run, and certainly not in the long.

The writer can be reached at udakdev1@gmail.com

 

 



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Rebuilding the country requires consultation

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A positive feature of the government that is emerging is its responsiveness to public opinion. The manner in which it has been responding to the furore over the Grade 6 English Reader, in which a weblink to a gay dating site was inserted, has been constructive. Government leaders have taken pains to explain the mishap and reassure everyone concerned that it was not meant to be there and would be removed. They have been meeting religious prelates, educationists and community leaders. In a context where public trust in institutions has been badly eroded over many years, such responsiveness matters. It signals that the government sees itself as accountable to society, including to parents, teachers, and those concerned about the values transmitted through the school system.

This incident also appears to have strengthened unity within the government. The attempt by some opposition politicians and gender misogynists to pin responsibility for this lapse on Prime Minister Dr Harini Amarasuriya, who is also the Minister of Education, has prompted other senior members of the government to come to her defence. This is contrary to speculation that the powerful JVP component of the government is unhappy with the prime minister. More importantly, it demonstrates an understanding within the government that individual ministers should not be scapegoated for systemic shortcomings. Effective governance depends on collective responsibility and solidarity within the leadership, especially during moments of public controversy.

The continuing important role of the prime minister in the government is evident in her meetings with international dignitaries and also in addressing the general public. Last week she chaired the inaugural meeting of the Presidential Task Force to Rebuild Sri Lanka in the aftermath of Cyclone Ditwah. The composition of the task force once again reflects the responsiveness of the government to public opinion. Unlike previous mechanisms set up by governments, which were either all male or without ethnic minority representation, this one includes both, and also includes civil society representation. Decision-making bodies in which there is diversity are more likely to command public legitimacy.

Task Force

The Presidential Task Force to Rebuild Sri Lanka overlooks eight committees to manage different aspects of the recovery, each headed by a sector minister. These committees will focus on Needs Assessment, Restoration of Public Infrastructure, Housing, Local Economies and Livelihoods, Social Infrastructure, Finance and Funding, Data and Information Systems, and Public Communication. This structure appears comprehensive and well designed. However, experience from post-disaster reconstruction in countries such as Indonesia and Sri Lanka after the 2004 tsunami suggests that institutional design alone does not guarantee success. What matters equally is how far these committees engage with those on the ground and remain open to feedback that may complicate, slow down, or even challenge initial plans.

An option that the task force might wish to consider is to develop a linkage with civil society groups with expertise in the areas that the task force is expected to work. The CSO Collective for Emergency Relief has set up several committees that could be linked to the committees supervised by the task force. Such linkages would not weaken the government’s authority but strengthen it by grounding policy in lived realities. Recent findings emphasise the idea of “co-production”, where state and society jointly shape solutions in which sustainable outcomes often emerge when communities are treated not as passive beneficiaries but as partners in problem-solving.

Cyclone Ditwah destroyed more than physical infrastructure. It also destroyed communities. Some were swallowed by landslides and floods, while many others will need to be moved from their homes as they live in areas vulnerable to future disasters. The trauma of displacement is not merely material but social and psychological. Moving communities to new locations requires careful planning. It is not simply a matter of providing people with houses. They need to be relocated to locations and in a manner that permits communities to live together and to have livelihoods. This will require consultation with those who are displaced. Post-disaster evaluations have acknowledged that relocation schemes imposed without community consent often fail, leading to abandonment of new settlements or the emergence of new forms of marginalisation. Even today, abandoned tsunami housing is to be seen in various places that were affected by the 2004 tsunami.

Malaiyaha Tamils

The large-scale reconstruction that needs to take place in parts of the country most severely affected by Cyclone Ditwah also brings an opportunity to deal with the special problems of the Malaiyaha Tamil population. These are people of recent Indian origin who were unjustly treated at the time of Independence and denied rights of citizenship such as land ownership and the vote. This has been a festering problem and a blot on the conscience of the country. The need to resettle people living in those parts of the hill country which are vulnerable to landslides is an opportunity to do justice by the Malaiyaha Tamil community. Technocratic solutions such as high-rise apartments or English-style townhouses that have or are being contemplated may be cost-effective, but may also be culturally inappropriate and socially disruptive. The task is not simply to build houses but to rebuild communities.

The resettlement of people who have lost their homes and communities requires consultation with them. In the same manner, the education reform programme, of which the textbook controversy is only a small part, too needs to be discussed with concerned stakeholders including school teachers and university faculty. Opening up for discussion does not mean giving up one’s own position or values. Rather, it means recognising that better solutions emerge when different perspectives are heard and negotiated. Consultation takes time and can be frustrating, particularly in contexts of crisis where pressure for quick results is intense. However, solutions developed with stakeholder participation are more resilient and less costly in the long run.

Rebuilding after Cyclone Ditwah, addressing historical injustices faced by the Malaiyaha Tamil community, advancing education reform, changing the electoral system to hold provincial elections without further delay and other challenges facing the government, including national reconciliation, all require dialogue across differences and patience with disagreement. Opening up for discussion is not to give up on one’s own position or values, but to listen, to learn, and to arrive at solutions that have wider acceptance. Consultation needs to be treated as an investment in sustainability and legitimacy and not as an obstacle to rapid decisionmaking. Addressing the problems together, especially engagement with affected parties and those who work with them, offers the best chance of rebuilding not only physical infrastructure but also trust between the government and people in the year ahead.

 

by Jehan Perera

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PSTA: Terrorism without terror continues

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When the government appointed a committee, led by Rienzie Arsekularatne, Senior President’s Counsel, to draft a new law to replace the Prevention of Terrorism Act (PTA), as promised by the ruling NPP, the writer, in an article published in this journal in July 2025, expressed optimism that, given Arsekularatne’s experience in criminal justice, he would be able to address issues from the perspectives of the State, criminal justice, human rights, suspects, accused, activists, and victims. The draft Protection of the State from Terrorism Act (PSTA), produced by the Committee, has been sharply criticised by individuals and organisations who expected a better outcome that aligns with modern criminal justice and human rights principles.

This article is limited to a discussion of the definition of terrorism. As the writer explained previously, the dangers of an overly broad definition go beyond conviction and increased punishment. Special laws on terrorism allow deviations from standard laws in areas such as preventive detention, arrest, administrative detention, restrictions on judicial decisions regarding bail, lengthy pre-trial detention, the use of confessions, superadded punishments, such as confiscation of property and cancellation of professional licences, banning organisations, and restrictions on publications, among others. The misuse of such laws is not uncommon. Drastic legislation, such as the PTA and emergency regulations, although intended to be used to curb intense violence and deal with emergencies, has been exploited to suppress political opposition.

 

International Standards

The writer’s basic premise is that, for an act to come within the definition of terrorism, it must either involve “terror” or a “state of intense or overwhelming fear” or be committed to achieve an objective of an individual or organisation that uses “terror” or a “state of intense or overwhelming fear” to realise its aims. The UN General Assembly has accepted that the threshold for a possible general offence of terrorism is the provocation of “a state of terror” (Resolution 60/43). The Parliamentary Assembly of the Council of Europe has taken a similar view, using the phrase “to create a climate of terror.”

In his 2023 report on the implementation of the UN Global Counter-Terrorism Strategy, the Secretary-General warned that vague and overly broad definitions of terrorism in domestic law, often lacking adequate safeguards, violate the principle of legality under international human rights law. He noted that such laws lead to heavy-handed, ineffective, and counterproductive counter-terrorism practices and are frequently misused to target civil society actors and human rights defenders by labelling them as terrorists to obstruct their work.

The United Nations Office on Drugs and Crime (UNODC) has stressed in its Handbook on Criminal Justice Responses to Terrorism that definitions of terrorist acts must use precise and unambiguous language, narrowly define punishable conduct and clearly distinguish it from non-punishable behaviour or offences subject to other penalties. The handbook was developed over several months by a team of international experts, including the writer, and was finalised at a workshop in Vienna.

 

Anti-Terrorism Bill, 2023

A five-member Bench of the Supreme Court that examined the Anti-Terrorism Bill, 2023, agreed with the petitioners that the definition of terrorism in the Bill was too broad and infringed Article 12(1) of the Constitution, and recommended that an exemption (“carve out”) similar to that used in New Zealand under which “the fact that a person engages in any protest, advocacy, or dissent, or engages in any strike, lockout, or other industrial action, is not, by itself, a sufficient basis for inferring that the person” committed the wrongful acts that would otherwise constitute terrorism.

While recognising the Court’s finding that the definition was too broad, the writer argued, in his previous article, that the political, administrative, and law enforcement cultures of the country concerned are crucial factors to consider. Countries such as New Zealand are well ahead of developing nations, where the risk of misuse is higher, and, therefore, definitions should be narrower, with broader and more precise exemptions. How such a “carve out” would play out in practice is uncertain.

In the Supreme Court, it was submitted that for an act to constitute an offence, under a special law on terrorism, there must be terror unleashed in the commission of the act, or it must be carried out in pursuance of the object of an organisation that uses terror to achieve its objectives. In general, only acts that aim at creating “terror” or a “state of intense or overwhelming fear” should come under the definition of terrorism. There can be terrorism-related acts without violence, for example, when a member of an extremist organisation remotely sabotages an electronic, automated or computerised system in pursuance of the organisation’s goal. But when the same act is committed by, say, a whizz-kid without such a connection, that would be illegal and should be punished, but not under a special law on terrorism. In its determination of the Bill, the Court did not address this submission.

 

PSTA Proposal

Proposed section 3(1) of the PSTA reads:

Any person who, intentionally or knowingly, commits any act which causes a consequence specified in subsection (2), for the purpose of-

(a) provoking a state of terror;

(b) intimidating the public or any section of the public;

(c) compelling the Government of Sri Lanka, or any other Government, or an international organisation, to do or to abstain from doing any act; or

(d) propagating war, or violating territorial integrity or infringing the sovereignty of Sri Lanka or any other sovereign country, commits the offence of terrorism.

The consequences listed in sub-section (2) include: death; hurt; hostage-taking; abduction or kidnapping; serious damage to any place of public use, any public property, any public or private transportation system or any infrastructure facility or environment; robbery, extortion or theft of public or private property; serious risk to the health and safety of the public or a section of the public; serious obstruction or damage to, or interference with, any electronic or automated or computerised system or network or cyber environment of domains assigned to, or websites registered with such domains assigned to Sri Lanka; destruction of, or serious damage to, religious or cultural property; serious obstruction or damage to, or interference with any electronic, analogue, digital or other wire-linked or wireless transmission system, including signal transmission and any other frequency-based transmission system; without lawful authority, importing, exporting, manufacturing, collecting, obtaining, supplying, trafficking, possessing or using firearms, offensive weapons, ammunition, explosives, articles or things used in the manufacture of explosives or combustible or corrosive substances and biological, chemical, electric, electronic or nuclear weapons, other nuclear explosive devices, nuclear material, radioactive substances, or radiation-emitting devices.

Under section 3(5), “any person who commits an act which constitutes an offence under the nine international treaties on terrorism, ratified by Sri Lanka, also commits the offence of terrorism.” No one would contest that.

The New Zealand “carve-out” is found in sub-section (4): “The fact that a person engages in any protest, advocacy or dissent or engages in any strike, lockout or other industrial action, is not by itself a sufficient basis for inferring that such person (a) commits or attempts, abets, conspires, or prepares to commit the act with the intention or knowledge specified in subsection (1); or (b) is intending to cause or knowingly causes an outcome specified in subsection (2).”

While the Arsekularatne Committee has proposed, including the New Zealand “carve out”, it has ignored a crucial qualification in section 5(2) of that country’s Terrorism Suppression Act, that for an act to be considered a terrorist act, it must be carried out for one or more purposes that are or include advancing “an ideological, political, or religious cause”, with the intention of either intimidating a population or coercing or forcing a government or an international organisation to do or abstain from doing any act.

When the Committee was appointed, the Human Rights Commission of Sri Lanka opined that any new offence with respect to “terrorism” should contain a specific and narrow definition of terrorism, such as the following: “Any person who by the use of force or violence unlawfully targets the civilian population or a segment of the civilian population with the intent to spread fear among such population or segment thereof in furtherance of a political, ideological, or religious cause commits the offence of terrorism”.

The writer submits that, rather than bringing in the requirement of “a political, ideological, or religious cause”, it would be prudent to qualify proposed section 3(1) by the requirement that only acts that aim at creating “terror” or a “state of intense or overwhelming fear” or are carried out to achieve a goal of an individual or organisation that employs “terror” or a “state of intense or overwhelming fear” to attain its objectives should come under the definition of terrorism. Such a threshold is recognised internationally; no “carve out” is then needed, and the concerns of the Human Rights Commission would also be addressed.

 

by Dr. Jayampathy Wickramaratne
President’s Counsel

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ROCK meets REGGAE 2026

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JAYASRI: From Vienna, Austria

We generally have in our midst the famous JAYASRI twins, Rohitha and Rohan, who are based in Austria but make it a point to entertain their fans in Sri Lanka on a regular basis.

Well, rock and reggae fans get ready for a major happening on 28th February (Oops, a special day where I’m concerned!) as the much-awaited ROCK meets REGGAE event booms into action at the Nelum Pokuna outdoor theatre.

It was seven years ago, in 2019, that the last ROCK meets REGGAE concert was held in Colombo, and then the Covid scene cropped up.

Chitral Somapala with BLACK MAJESTY

This year’s event will feature our rock star Chitral Somapala with the Australian Rock+Metal band BLACK MAJESTY, and the reggae twins Rohitha and Rohan Jayalath with the original JAYASRI – the full band, with seven members from Vienna, Austria.

According to Rohitha, the JAYASRI outfit is enthusiastically looking forward to entertaining music lovers here with their brand of music.

Their playlist for 28th February will consist of the songs they do at festivals in Europe, as well as originals, and also English and Sinhala hits, and selected covers.

Says Rohitha: “We have put up a great team, here in Sri Lanka, to give this event an international setting and maintain high standards, and this will be a great experience for our Sri Lankan music lovers … not only for Rock and Reggae fans. Yes, there will be some opening acts, and many surprises, as well.”

Rohitha, Chitral and Rohan: Big scene at ROCK meets REGGAE

Rohitha and Rohan also conveyed their love and festive blessings to everyone in Sri Lanka, stating “This Christmas was different as our country faced a catastrophic situation and, indeed, it’s a great time to help and share the real love of Jesus Christ by helping the poor, the needy and the homeless people. Let’s RISE UP as a great nation in 2026.”

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