Business

The US occupation of the Indian Ocean ‘Zone of Peace’

Published

3 months ago

2026/06/30

Map of Trade in the Indian Ocean 15th-16th century

America’s war of choice on Iran has spread across the Indian Ocean World and maritime Silk Route. Starved of oil and gas South and Southeast Asia’s emerging economies have seen local currencies fall against the ‘exorbitantly privileged’ Petrodollar as public and private debt increased with soaring energy costs.

The US fifth fleet’s occupation and blockade of Indian Ocean trade routes targeting the Strait of Hormuz has shown the importance of the 1971 United Nations (UN) declaration of the ‘Indian Ocean as a Zone of Peace’ — for global security and prosperity.

55 years ago the United Nations General Assembly (UNGA) led by the world’s first woman head of state, Prime Minister Sirimavo Bandaranaike of Ceylon, declared the Indian Ocean a ‘Zone of Peace’. Resolution 2832 (XXV1) affirmed the vast Indian Ocean together with the airspace above and the subjacent ocean floor for all time a “Zone of Peace”.

The bold resolution by the world’s first woman head of state 55 years ago has never been more relevant: De-militarizing and de-colonizing the Indian Ocean in line with UNGA Resolution 2832 is vital to sustain and deepen the fraying 60-day peace pause between Iran and the United States brokered by Pakistan and Qatar.

The Indian Ocean World’s maritime Silk Route, where Iran, formally Persia sits, was the home of the world’s oldest and wealthiest sea-based trade system. For millennia the Silk Route of the Seas wherein the Straits of Hormuz is an integral part, connected the coastal regions and hinterlands of the Supercontinent of Asia with Africa and Europe– long before the US came into existence across the Atlantic Ocean in the “new world’.

European invaders of the Indian Ocean World fought bloody battles to access, control and colonize Indian Ocean sea lanes from the 17th century onward, much like the US today, which seeks to toll Indian Ocean shipping, wage hybrid economic warfare, and stymie the Asian 21st Century at this time.

Strategic islands and waterways like the Malacca Straits and Hormuz were vital to control of Indian Ocean supply chains and trade routes, in order to access and loot the great wealth of Asian civilizations, particularly, Persia/Iran, India and China.

Indeed, to this day the Indian Ocean remains to be fully de-colonized. Distant water fishing states or non-Indian Ocean countries, France, Spain, Japan, Taiwan PRC etc. are some of the biggest looters of Indian Ocean fishery with industrial trawler fleets according to data from the Indian Ocean Tuna Commission. Meanwhile littoral states fishery remains underdeveloped and “artisanal’; dependent on Foreign Aid for de-industrialization.

It was hence too that UNGA Resolution 2832 (XXV1) establishing the Indian Ocean Zone of Peace was spearheaded by the world’s first woman head of state, the Socialist Prime Minister Sirimavo Bandaranaike of Ceylon back in 1971 during the Cold War amid great power rivalry between the Soviet Union/Russia and the US.

Ceylon, now Sri Lanka is geo-strategically located at the center of the Indian Ocean World’s trade routes and supply chains. Hence, the county was perpetually in the cross-hairs of big power rivalry, and subject to neocolonial projects; most recently by the International Monetary Fund (IMF) which has upended economic sovereignty and Energy policy autonomy in the Eurobond debt-trapped country.

United Nations Mandate and IOZP

The Declaration of the Indian Ocean as a ‘Zone of Peace’ (IOZP), 55 years ago has never been more relevant to global security, growth and decolonization, which are Core Mandates, albeit seemingly forgotten at the UN.

The UNGA IOZP Resolution sought to ensure that the world’s busiest trade routes would be free of foreign bases, militarization, and nuclear weapons during the long Cold War between the US and Soviet Union/Russia. Big power rivalry had undermined development and de-colonization while driving proxy wars in Asia, Africa and South America.

Ceylon’s Sirimavo Bandaranaike was aided by stalwarts of the Non-Aligned Movement (NAM) and Global South: President Julius Kambarage Neyerere of the Republic of Tanzania in the western reach of the Indian Ocean later joined to co-sponsor UN Resolution 2832 (XXVI). It was a time of Afro-Asian, South-South cooperation.

India’s Prime Minister Indira Gandhi of the Congress Party was a close friend of Ceylon’s Bandaranaike and a supporter of Palestine, unlike the current pro-Israeli Modi regime in New Delhi.

UNGA Resolution 2832 called upon big powers to enter into consultations with the littoral States of the Indian Ocean with a view to halting escalation of their military presence, and to eliminate all bases, military installations and logistical supply facilities, nuclear weapons, and other weapons of mass destruction.

In the context, should not UN Secretary General Antonio Guterres invoke the IOZP at this time to aid and deepen the tenuous peace agreement between Iran and the US? However, Guterres has preferred to focus on twin global ‘polycrisis’ narratives- pandemic health and Anthropocene climate disinformation.

The IOZP Declaration was made when Burma’s U Thant was the highly respected UN Secretary General and Asian Buddhist Principles of Panchaseel (5 principle virtues in Sanskrit), underpinned NAM diplomacy. Indeed, the current UNSG would do well to call on US President Trump to remove the marine environment despoiling US fifth fleet “Armada” led by aircraft carrier Abraham Lincoln from the Indian Ocean in order to shore up the fraying peace agreement between Iran and the US at this time.

Prime Minister of Ceylon Sirimavo Bandaranaike speaks at the Belgrade Conference Non-Aligned Movement Archives (Yugoslavia)
TANJUG (Telegraphic Agency of the New Yugoslavia)

Priorities of the next UNSC: Return to Core Mandate amid New Cold War

The current US invasion and occupation of the Indian Ocean, far from America’s shores in the Atlantic and Pacific Ocean in order to blockade the Strait of Hormuz and starve Asian countries of energy violates UNGA Resolution 2832.

The US has used the rhetoric of a ‘free and open Indo-Pacific” and ‘freedom of navigation’ ironically to militarize and blockade Indian Ocean trade routes and reroute energy supply chains to control markets, benefit corporate interests and prop up the Petrodollar as the BRICS de-dollarize.

President Trump’s alternating sanctions on Russian and Iran oil seem designed to destabilize energy markets and sales. South and Southeast Asian countries meanwhile have been forced to buy expensive US oil and gas buttressing the Petrodollar, rather than source cheaper oil from Asian neighbours and pay in local currency.

It is vital that the US cease and desist from aggression and occupation of Indian Ocean trade routes and plans to levy tolls from ships in the Indian Ocean. Rather, the US Armada would best return to the Atlantic Ocean and where it came from, to restore the Indian Ocean as a’ Zone of Peace’ as envisaged by the world’s first woman head of state.

However, it appears that the legacy of Prime Minister Sirimavo Bandaranaike declaring the IOZP has been forgotten at the UN, ironically, even as its corridors buzz with debate on the gender/s of the next UN Secretary General as the current UNSG’s term thankfully draws to an end.

It is increasingly clear that the gender of the next UNSG is irrelevant to making the UN relevant again. What is clear at this time is that the next UNSG should be from the Global South and a strong voice for Economic Justice for the Global South. Likewise, the priority of the next UN Secretary general would be to Streamline the organization and its agencies, literally cull the fat, in order to focus on Core Mandates of de-colonization, peace and security.

Anxieties of the American Empire: Undoing Indo-Pac Com

The UN has evolved as a behemoth in recent times with proliferating development and humanitarian agencies funded and controlled by corporate interests wedded to Disaster Capitalism and the Deepstate. The current UN Secretary General Antonio Guterres meanwhile prefered to talk up ‘global polycrisis’ narratives of climate disaster that mask geoengineering and weather warfare, and health emergency while side stepping their real causes including awkward subjects like, Gain-of-Function research, Covid-19 origins in biowarfare labs, directed energy weapons and geoengineering for weather warfare in the fake Anthropocene.

A firm voice for peace, decolonization and Economic Justice for the Global South is needed from the august body and is solely missed the world over at this time. The UN seems to have abandoned its primary mandate of peace, security and de-colonization at this time.

By Darini Rajasingham-Senanayake

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Business

IMF talks conclude without staff-level agreement as Sri Lanka prepares November Budget

Published

15 hours ago

2026/09/24

Sahan Weerasooriya

Fund says discussions will continue on policies and parameters needed to complete the Seventh Review

By Sanath Nanayakkare

Sri Lanka’s latest talks with the International Monetary Fund (IMF) have concluded without a staff-level agreement on the policies and parameters required to complete the Seventh Review of its Extended Fund Facility (EFF), leaving further discussions ahead as the government prepares its next Budget.

An IMF team led by Mission Chief Evan Papageorgiou visited Sri Lanka from September 10 to 23 for discussions on the Seventh Review and the 2026 Article IV Consultation.

The Fund said the discussions with Sri Lankan authorities had been productive, but would continue in the near term towards reaching agreement on the parameters and policies needed to complete the Seventh Review.

The outcome therefore represents a delay in reaching the formal staff-level milestone rather than a breakdown in negotiations.

The latest mission comes as Sri Lanka moves from economic stabilisation towards longer-term structural transformation, while continuing to face external shocks and domestic fiscal pressures.

The IMF said economic activity expanded by 4.2 percent in the second quarter of 2026, marking the 11th consecutive quarter of growth. At the same time, the Fund cautioned that downside risks remained, particularly amid an uncertain external environment.

Gross official reserves had risen to US$6.9 billion by the end of August, while the banking sector remained well capitalised and profitable, providing some buffers against external pressures.

A major focus of the IMF’s latest assessment was Sri Lanka’s revenue position.

The Fund said developing and implementing a strong medium-term revenue strategy would be critical to sustaining revenue mobilisation and strengthening fiscal resilience.

It stressed the need to broaden the tax base, rationalise tax exemptions and incentives, and strengthen revenue administration and compliance.

The IMF also emphasised the importance of maintaining cost-recovery energy pricing and improving the efficiency and fairness of the tax system in order to reduce fiscal vulnerabilities.

These issues assume particular significance as the government prepares its next Budget, with the authorities seeking to balance revenue mobilisation and fiscal consolidation against the need to sustain economic recovery.

The Fund’s latest position does not indicate that negotiations have broken down. Rather, the IMF has said that discussions will continue towards reaching agreement on the remaining policies and parameters required to conclude the Seventh Review.

The latest talks follow the combined Fifth and Sixth Reviews, for which IMF staff and Sri Lankan authorities reached a staff-level agreement in April, subject to completion of the remaining requirements before consideration by the IMF Executive Board.

For Sri Lanka, the immediate challenge is therefore to preserve the gains made in macroeconomic stabilisation while addressing the remaining issues under the IMF programme and preparing a Budget capable of supporting longer-term fiscal and economic resilience.

With further discussions expected in the near term, the Seventh Review remains a work in progress as Sri Lanka enters another critical stage of its economic reform programme.

Notably, the IMF has yet to publicly specify the outstanding issues that remain to be resolved.

Business

UK digital expertise and Sri Lankan business leaders unite to explore growth through technology

Published

15 hours ago

2026/09/24

Sahan Weerasooriya

British High Commissioner Andrew Patrick

British High Commissioner Andrew Patrick hosted UK digital product consultancy Apadmi at Westminster House, his official residence in Colombo, for an invite-only forum bringing together senior business leaders from across Sri Lanka’s retail, banking, telecommunications, hospitality and public sectors.

The event, “Turning Digital Assets into Growth Engines”, marked Apadmi’s first official event in Sri Lanka since establishing its Colombo office in 2025, and was delivered in partnership with the British High Commission as part of ongoing efforts to strengthen UK and Sri Lanka commercial and technology ties.

Guests were welcomed by High Commissioner Andrew Patrick, followed by a keynote from Niresh Muthuratnanandan, Head of Omni Commerce, Digital & Loyalty at Keells Supermarkets, who spoke about the launch of the Keells Nexus app and the modernisation of a loyalty programme serving 2.9 million members.

A panel discussion followed, hosted by Mark Collin, Chief Growth Officer at Apadmi, and featuring Malik Induruwana, Chief Information Officer at HSBC Sri Lanka & Maldives; Jiffry Zulfer, Founder and CEO of PickMe; Uthpala Pinnaduwahewa of Hatton National Bank; and Marcus Hadfield, Chief Strategy Officer at Apadmi.

The discussion centred on the commercial opportunity created by Sri Lanka’s rapid mobile adoption. According to [source], mobile data usage in the country reached 1.03 million terabytes in Q2 2026, a 31% increase year on year, against 29.4 million mobile subscriptions. With 71% of devices now smartphones or tablets, speakers discussed how Sri Lankan businesses could convert growing digital engagement into customer loyalty, new revenue and operational efficiency.

British High Commissioner Andrew Patrick said:

“It was a pleasure to welcome Apadmi and such a strong group of business leaders to Westminster House for this event. The UK and Sri Lanka have a longstanding partnership, and digital innovation is an increasingly important part of that relationship. Apadmi’s decision to establish a base in Colombo reflects the confidence that UK companies have in Sri Lanka’s digital economy, and I look forward to seeing this partnership continue to grow to the benefit of both our countries.”

Mark Collin, Chief Growth Officer at Apadmi, said:

“Being hosted by the British High Commission was a real privilege, and a fitting way to mark the next stage of our commitment to Sri Lanka. To bring leaders from Keells, HSBC, PickMe and Hatton National Bank into the same room says a great deal about the ambition here. We opened our Colombo office because we believe Sri Lanka is at a genuine turning point; the talent is exceptional, and we are proud to be building here for the long term.”

Business

Planters’ Association Chairman proposes 5-point plan for industry revival at 172nd AGM

Published

15 hours ago

2026/09/24

Sahan Weerasooriya

Seated from left to right: newly elected Deputy Chairman of the Planters’ Association of Ceylon (PAC), Binesh Pananwala; Secretary General, Lalith Obeyesekere; newly elected Chairman, Shanaka Samaradiwakara; Governor of the Central Bank of Sri Lanka, Dr. Nandalal Weerasinghe; and Chairman of the Sri Lanka Tea Board, Raj Obeyesekere.

Malwatte Valley Plantations PLC Director / CEO, Shanaka Samaradiwakara was appointed as Chairman of the Planters’ Association of Ceylon (PAC), while Kahawatte Plantations PLC Director / CEO Binesh Pananwala, was appointed as Deputy Chairman at the Association’s 172nd Annual General Meeting (AGM) on 19 September at the Cinnamon Grand.

The event was graced by Central Bank of Sri Lanka Governor, Dr. Nandalal Weerasinghe and Sri Lanka Tea Board Chairman, Raj Obeyesekere as Chief Guest and Guest of Honour respectively.

In his inaugural address, Samaradiwakara outlined a five-point vision for the plantation sector, focusing on value addition, research and development, land-use and productivity, irrigation and long-term security of tenure. He emphasised that the future of commercial agriculture in Sri Lanka would hinge on how effectively all industry stakeholders could work together, while maintaining clear understanding of the ground realities faced by producers.

Value-added tea accounted for more than 50% of total tea export volumes in 2025. Samaradiwakara noted Regional Plantation Companies (RPCs) have accounted for the majority of that volume through continuous investments, including most recently in matcha, green tea and artisanal teas.

In that context, he sought the support of the Sri Lanka Tea Board and the export sector to protect this emerging high value segment, given that significant quantities of green tea and other high-value teas remain unsold at auction while similar products continue to enter the country. “We respectfully request the authorities to review this matter and introduce appropriate measures to support domestic production and value addition,” he stated.

On research and development, he observed that commercially viable alternatives to several essential crop protection products remain limited. Accordingly, he called on the Tea, Rubber and Coconut Research Institutes to lead the development of practical, scientifically proven alternatives, while stressing that disease threatening the rubber industry requires immediate attention. “We cannot afford to repeat the experience of the coffee industry, where coffee blight devastated the sector,” he added.

Turning to issues around land-use policies and productivity, he noted that RPCs have diversified for over two decades in response to changing rainfall patterns, introducing crops such as oil palm, pepper and avocado. He warned that these investments are increasingly threatened by unsupportive policy, agricultural theft and crop damage by wild animals, costing companies millions of rupees each month in security. “It is imperative that these investments are protected through strong enforcement, appropriate regulatory reforms, and effective measures to address both agricultural theft and crop damage,” he noted. On irrigation, he appealed to the Government to relax archaic restrictions on groundwater use and simplify approvals for drilling tube wells in order to enhance climate resilience.

Addressing security of tenure, he highlighted that replanting often takes more than a decade to generate meaningful revenue, and that uncertainty over lease extensions is making it harder for RPCs to attract foreign direct investment and long-term financing. “If we are to attract fresh capital, accelerate replanting, modernise our plantations and improve productivity, security and certainty of tenure are mandatory,” he added.