Midweek Review
How former CID Chief Shani ended up in Geneva agenda and clampdown on Ranjan’s tapes

By Shamindra Ferdinando
Many eyebrows were raised when the Geneva-based UK Mission to the WTO, UN and other International Organizations recently referred to one-time Director of the Criminal Investigation Department (CID) Gnendra Shani Abeysekara.
In a brief statement, dated June 22, 2021, that dealt with Sri Lanka, the UK, on behalf of the literally self-appointed Sri Lanka Core Group (whether we like it or not), comprising Canada, Germany, North Macedonia, Malawi, Montenegro and the UK, demanded the safety of Abeysekara. The grouping told the world: “We call for former CID director Shani Abeysekara’s safety to be ensured.”
The Geneva statement was made ahead of Abeysekara’s retirement. At the time Abeysekara retired on June 30, 2021, he was on bail having been arrested, in July 2020, in connection with the alleged fabrication of evidence against former DIG Vass Gunawardena and several others. The latter group had been arrested over the alleged abduction and killing of Mohammed Shyam, on May 22, 2013. Along with Abeysekara, the Appeal Court bench consisting of Justices Nissanka Bandula Karunaratne and R. Gurusinghe on June 16, 2021 also granted bail to former Sub Inspector of CID Sugath Mendis. Both were subjected to strict bail conditions.
Attorney-at-Law K.W. Janaranjana, the editor of Annidda, has meticulously dealt with the killing of Mohammed Shyam, investigations conducted by Abeysekara, the 2019 change of government, the probe taking a new turn, Abeysekara’s arrest and, finally, the Court of Appeal granting the former CID Director and SI Sugath Mendis bail. The full page article authored by the civil society activist, formerly with Ravaya, carried on its June 27, 2021 edition, is a must read.
The UK-led Core Group addressed the Abeysekara’s arrest, pertaining to the alleged fabrication of evidence. Yahapalana Justice Minister Thalatha Atukorale, too, called for an end to what she called persecution of Abeysekara. The Sri Lanka Core Group wouldn’t have taken up Abeysekara’s case in Geneva without being pushed by the Colombo-based civil society group. There had never been such a Western intervention on behalf of a law enforcement officer here, though there were intrusions by individual countries. Switzerland accommodating Abeysekara acolyte Chief Inspector Nishantha Silva and his family in its asylum programme is a case in point. CI Silva, accompanied by his family, left the country just over a week after the 2019 presidential election. Their departure to Switzerland paved the way for those who had been involved in the conspiracy to accuse newly elected President Gotabaya Rajapaksa’s government of abducting local Swiss Embassy employee, Francis Garnier, formerly Sriyalatha Perera.
The London headquartered Amnesty International, in late Nov 2020, expressed concerns over Abeysekara’s safety, in prison, after he was tested Covid-19 positive. According to the AI, the police officer who had been interdicted over alleged fabrication of evidence, in respect of Mohammed Shyam’s case, earned the wrath of the second Rajapaksa government for exposing human rights abuses implicating top politicians.
SC endorses HC ruling
One of the high profile cases, handled by Abeysekara, was the killing of four persons, including former lawmaker Bharatha Lakshman Premachandra, who had been assigned to handle the UPFA trade union activity. The then Attorney General filed 17 indictments against 13 defendants for the murders of Bharatha Lakshman Premachandra, Damitha Darshana Jayathilake, Jalaldeen Mohamed Azeem and Manuel Kumaraswamy, on October 8, 2011, the day of the Local Government Elections, at Himbutana, Angoda. Following an extensive trial, High Court judges Padmini M. Ranawaka and M.T.B.S. Moraes (believed to be in Fiji as a judge) sentenced the defendants to death on Dec 8, 2016. However, the President of the trial-at-bar, Judge Shiran Gooneratne (now in the Supreme Court) disagreed. He acquitted 13 defendants from all charges filed against them whereas Judge Padmini Ranawaka, with Judge M.T.B.S. Moraes, agreeing, acquitted 08 of the 13 defendants from all charges.
At the time of the Himbutana incident, Duminda Silva had been Colombo District lawmaker and Monitoring MP for the Defence Ministry. The other Monitoring MP in that Rajapaksa administration was Sajin Vass Gunawardena, assigned to the Foreign Ministry.
The Supreme Court, on Oct 11, 2018, dismissed an appeal filed by Duminda Silva and the three others. The SC bench comprised five judges. Duminda Silva and the three other accuseds, filed an appeal against the death penalty imposed by the High Court on Dec 8, 2016. At the SC proceedings, the 01st accused, Police Constable Anura Thushara de Mel was acquitted of all charges by the bench consisting of the then Chief Justice Priyasath Dep, Justices Buwaneka Aluvihare, Nalin Perera, Priyantha Jayawardena and Vijith Malalgoda. Thereby the SC reaffirmed the death penalty imposed on Duminda Silva, Srinayake Pathiranage, Chaminda Ravi Jayanath alias Dematagoda Chaminda and Dissanayake Mudiyanselage Sarath Bandara.
However, the releasing of audio tapes of conversations among Abeysekara (he hadn’t been appointed Director CID then), Deputy Minister of Social Empowerment Ranjan Ramanayake, the then High Court judge Mrs. Padmini Ranawaka and President Maithripala Sirisena, in the wake of the 2019 Presidential Election, sent shock waves through political parties, the judiciary, the police and the civil society. Controversy still surrounds the circumstances under which the police received the recordings, secretly made by Ramanayake. Selected tapes were released to both the print and electronic media. Social media prevented efforts to hush up the shocking revelations, pertaining to the Himbutana killings, and the subsequent judgment.
Those in authority conveniently refrained from conducting a proper investigation into the scandalous interventions made by Ramanayake, as well as the conduct of HC judge Mrs. Ranawaka, and Abeysekara, though the police recorded some statements, including that of Mrs. Ranawaka. Parliament, through a statement issued by its Director Department of Communication, Shan Wijetunga, explained its position. That statement dated Feb 7, 2021, based on the decisions taken by the Committee on Parliamentary Business, as regards Ramanayake’s tapes, is reproduced here: “The CDs containing the recorded telephone conversations which were handed over to the Hansard Department of Parliament by MP Ranjan Ramanayake was taken into a lengthy discussion during the Committee on Parliamentary Business held today (Feb. 07, 2021).
Accordingly, the Committee Members directed Parliament officials to submit the alleged CDs to the Speaker of Parliament, Karu Jayasuriya, to examine matters concerning national prejudice, insults directed at elite persons and words which are inconsistent with Parliament.
The Committee then decided that the Speaker should examine it further and take appropriate action. The decision to table the CDs and give access to the MPs was deferred for later consideration.”
Parliament never released the CDs. Karu Jayasuriya’s recent call to grant presidential pardon to Ramanayake should be examined against the backdrop of how Parliament responded to the disturbing revelations and the suppression of CDs.
Meeting press outside Temple Trees
Ramanayake got into trouble for a statement he made outside Temple Trees, on August 21, 2017, following a parliamentary group meeting of the then ruling party. A simmering controversy erupted over the leaked tapes in the wake of the Supreme Court sentencing Ramanayake on January 12, 2021. A three-judge bench, comprising Justices Sisira de Abrew, Vijith Malalgoda and Preethi Padman Surasena, sentenced Ramanayake to four years rigorous imprisonment after convicting him of contempt of court. The Attorney General filed the case following a complaint filed in the Supreme Court by Ranawaka Sunil Perera of 43/11, Walawwatta Road, Gangodawila, Nugegoda. The case has been in terms of Article 105(3) of the Constitution.
Ranawaka Sunil Perera moved the Supreme Court on the day after Ramanayake accused lawyers and judges of being corrupt.
Rasika Dissanayake, with Sandun Senadhipathi, appeared for the petitioner, on the instructions of Sanath Wijewardena, whereas Tamil National Alliance lawmaker M.A. Sumanthiran, PC, with Viran Corea and J.C. Thambiah, appeared for the respondent on the instructions of D. Vithanapathirana. Sarath Jayamanne PC ASG, with Suharshi Herath SSC, represented the Attorney-General.
But, interventions made by Ramanayake, throughout 2016, in respect of judgment in the Himbutana killings, had never been properly investigated, though Parliament, and the police, received the tapes well over a year ago. The bottom line is that the appalling disclosures in audio tapes had never been subjected to judicial proceedings.
Now Karu Jayasuriya, in his new capacity as the Chairperson of the NMSJ (National Movement for Social Justice), pioneered by the late Ven Maduluwawe Sobitha wants President Gotabaya Rajapaksa to pardon Ranjan Ramanayake, the way he freed Duminda Silva. Following the last parliamentary election, in August 2020, Prof Sarath Wijesuriya gave up the NMSJ leadership for Jayasuriya’s entry. Those who are genuinely interested in good governance and accountability should listen to those tapes and take tangible measures to conduct a thorough investigation into the whole affair. The conversations involving Abeysekara and Ramanayake, President Sirisena, Ramanayake and Judge Mrs. Ranawaka depict a pathetic situation.
Before the writer dealt with the leaked conversations, it would be pertinent to mention that Abeysekara received promotion to the rank of SSP on August 8, 2016, and appointed as Director, CID, in the first week of Sept 2017. Abeysekara served as CID Director till he received a transfer, on Nov 21, 2019, as Personal Assistant to DIG, Galle.
Did Ramanayake speak to High Court Judge Mrs. Ranawaka to influence the murder conviction against Duminda Silva, sans permission from the party leadership? Did the then top UNP leadership ask him to approach judges in respect of various cases? Ramanayaka is also on record phoning High Court judge Gihan Pilapitiya and Magistrate Dhammika Hemapala. Following the disclosure of a fraction of the tapes secretly recorded by Ramanayake, the police compiled statements from Mrs. Ranawaka (retired), Pilapitiya and Hemapala. Let me focus on the conversations involving Mrs. Ranawaka, Ramanayake, Abeysekara and President Sirisena (now SLPP Polonnaruwa district MP. Sirisena remains the SLFP leader).
How Prez’s intervention
sought for promotion
Mrs. Ranawaka had no qualms in declaring that she had no confidence in President Sirisena though she subsequently directly pleaded with him to promote her to the Court of Appeal. Mrs. Ranawaka expressed doubts about President Sirisena when Ramanayake phoned her on July 14, 2016, in the wake of Abeysekara expressing serious concerns over the way the Duminda Silva matter, and related issues, were being handled. Nearly two dozen conversations, involving Ramanayaka and Abeysekara, should be examined without taking them in isolation. According to conversations now in public domain, Mrs Ranawaka asked Ramanayaka to intervene on her behalf when the latter pressed her on the pending judgment on the Himbutana killings. The judge also made reference to the then lawmaker and Attorney-at-Law Ajith P. Perera during her conversation, initiated by Ramanayake. The way the conversation continued, clearly indicated that the call taken by Ramanayake, on July 14, 2016, couldn’t have been the first and they knew each other very well. Mrs. Ranawaka, obviously exploited Ramanayake’s intervention to explore the possibility of moving up the ladder with unbridled political patronage.
Let me stress that Ramanayake didn’t mince his words when he repeatedly sought assurances from Mrs Ranawaka and Abeysekara, in separate conversations, whether they were sure of a guilty verdict in respect of the Himbutana killings. Abeysekara repeatedly assured Ramanayake he was convinced of a guilty verdict. At one point, Abeysekara declared all three judges would take a common stand. Abeysekara had been so confident of the impending ruling, at one point he assured Ramanayake that he was 10,000 percent sure of the verdict. Abeysekara warned Ramanayake of dire consequences if he made any further direct interventions, particularly with Mrs. Ranawaka.
Abeysekara, however, pointed out to Ramanayake that calling Mrs Ranawaka was nothing but a mistake but he cut a sorry figure by pleading with the UNP Deputy Minister not to discuss the issue at hand with anyone, including President Sirisena. Ramanayake ignored Abeysekara’s advice.
After the three-member bench delivered judgment on the Himbutana killings, Ramanayake, on Sept 12, 2017, arranged for President Sirisena to talk with Mrs. Ranawaka. She unashamedly sought President Sirisena’s intervention to secure a promotion to the Court of Appeal. Having repeatedly assured good governance and accountability, the yahapalana grandees caused unprecedented turmoil. In the absence of a proper inquiry at any level, Ramanayake’s interventions in judicial matters were never dealt with.
In spite of Ramanayake’s deplorable conduct, the Samagi Jana Balavegaya (SJB), the breakaway faction of the UNP, had no misgivings in accommodating him on its Gampaha District list at the August 2020 General Election. The SJB cannot absolve itself of the UNP’s culpabilities, ranging from Treasury bond scams, perpetrated in Feb 2015 and March 2016, to failure to prevent the 2019 Easter Sunday attacks, despite being forewarned with precise intelligence.
Former Speaker Karunaratne Jayasuriya, despite always being clad in immaculate lily white national attire, like most shrewd politicians, however failed to inquire into Ramanayake’s sordid vigilante type justice. What we should understand is that he is foremost a politician. Jayasuriya, one-time UNP Deputy Leader and a member of the 2015 UNP parliamentary group, was named the Speaker, therefore his actions/failures can be explained. However, the pathetic failure on the part of the SLPP to initiate an inquiry into the Ramanayake affair, nearly a year after the last general election, is an indication of the utterly irresponsible Parliament, where many a backroom deal is made.
All parties represented in Parliament, particularly the SLPP, and the SJB, with nearly 200 lawmakers in Parliament should take a clear stand on political interventions in judgments. Whatever the shortcomings, those drafting a new Constitution, at a great cost to the taxpayer, should do away with constitutional provisions in respect of presidential pardons and formulate a mechanism for judicial review of previous rulings in case of the emergence of fresh evidence. Presidential pardon shouldn’t be a ‘tool’ available for the executive, under any circumstances. Political parties should reach a consensus on the need to abolish the presidential pardon, as such powers make a mockery of democracy.
But, in the so-called greatest democracy, the USA, even if we leave aside the erratic and unscrupulous behaviour of President Trump and take for example the actions of President Obama, one of the darlings of the liberal media there, he pardoned nearly 2000 felons before he left office At least in the local instance of Duminda Silva, the presidential pardon managed to undo a grave injustice to a man, who was shot first in the head. So the President overturning his murder conviction for the other killings that took place after he was incapacitated, amidst shenanigans involving Ranjan Ramanayake, Shani Abeysekara and Judge Padmini Ranawaka, was the right thing to do.
The government should go for a thorough inquiry into Ramanayake’s tapes. Let us hope Parliament, without further delay, makes all tapes available to its members and takes tangible measures to facilitate no holds barred investigations. The way Abeysekara used Ramanayake to target Brigadier Suresh Salley of the Directorate of Military Intelligence (DMI) is evidence how all stakeholders exploited various situations to their advantage. Abeysekara wanted Ramanayake to set the stage for Salley’s removal. Whatever the circumstances, the then Premier Wickremesinghe unceremoniously removed Salley.
Perhaps, the Foreign Ministry should make available certified translations of all available telephone conversations among former High Court judge Padmini Ranawaka, retired SSP Shani Abeysekara, former lawmaker Ranjan Ramanayake and former President Maithripala Sirisena to members of Sri Lanka Core Group. The Foreign Ministry should seriously consider briefing the Core Group members, particularly the UK, Canada and Germany, to prevent them from further exploiting Abeysekara’s case.
Midweek Review
Courtroom killings:From Attanagalle to Aluthkade

By Shamindra Ferdinando
Since the mid-1970s this country has seen so much bloodshed, beginning with the cold blooded killing of SLFP Jaffna Mayor Alfred Duraiappah on 27 July, 1975, by the LTTE, that even many of us journos, who have lived through and recorded much of that gory past, too, have literally lost the exact count from our memories, so no wonder having read last week’s midweek piece ‘A second killing in a courtroom, a question of national security and overall deterioration of law enforcement’ former Irida Divaina editor and one time colleague in our sister paper, Anura Soloman, reawakened the writer’s memory to the Wavulkelle killings. The writer inadvertently failed to at least refer to the Wavulkelle massacre that was also a grim reminder of the direct nexus between the party in power and law enforcers that had also become a cancer in this country, whether the rulers are corrupt capitalists or fake Marxists and opportunists or those somewhere in between.
We must also note that over the years our rulers also exacerbated feelings of resentment among Tamils as a result of many rotten cops, or those deemed politically undesirable, being posted to faraway places on punishment transfers. One can imagine how they would have taken out their own frustrations when discharging their duties in such places if they were so bad here, to start with. And that practice ironically continues to this day.
Sub Inspector Dhammika Amarasena, who had been interdicted over the Wavulkelle massacre, was shot dead inside the Attanagalle Magistrate court in Nov. 1991. Amarasena, who had been one of the accused in the Wavulkelle carnage where 12 persons were shot dead in late Feb. 1990, was the first suspect to die in a courtroom. Among the Wavulkelle victims had been a young woman who, according to the only survivor, was sexually abused by several male prisoners at the behest of a posse of bestial policemen before being killed.
The media reported at that time that the victims had been stripped naked and shot in single file by two gunmen. Amarasena had been among the gang of policemen responsible for the heinous crime that was carried out after the eradication of the Janatha Vimukthi Peramuna’s second armed uprising 1987-89. The victims were believed to be sympathizers of the then main Opposition Sri Lanka Freedom Party (SLFP).
Of the 13 people abducted and taken to a clearing, 12 had been shot dead and their naked and charred bodies were found by villagers. The crime would have remained a mystery if not for one of the abductees managing to flee from the clutches of those killers.
Solomon emphasized that the recent high profile courtroom killing of Sanjeewa Kumara Samararatne aka Ganemulle Sanjeewa, the fourth inside a courtroom, couldn’t be discussed without examining the killings carried out in the Attanagalle Magistrate court. Amarasena’s father-in-law, who had been seated next to the interdicted policeman, was also killed. The killer escaped.
Of the 14 suspects attached to the Weeragula and Attanagalla police taken into custody in connection with the CID investigation, the Attanagalle Magistrate discharged seven of the suspects and the remaining were charged with unlawful assembly, abduction, murder and lesser charges. The mastermind was never punished.
The Wavulkelle killings and the subsequent Attanagalla courtroom killing attracted international attention. The London headquartered Amnesty International (AI) dealt with this issue. It would be pertinent to stress that the Wavulkelle killings were carried out several months after the arrest and the execution of JVP leader Rohana Wijeweera and the elimination of its top leadership, barring Somawansa Amarasinghe, who managed to escape with clandestine Indian help.
The Nov. 1991 Attanagalle courtroom killings, during Ranasinghe Premadasa’s presidency, were followed up by the elimination of Dhamamika Amarasinghe in January 2004 during Chandrika Kumaratunga presidency, inside the Hulftsdorp court complex, and the most recent killing of Ganemulle Sanjeewa (Anura Kumara Dissanayake presidency/Aluthkade court complex).
The Attanagalle hit is widely believed to have been ordered by a businessman whose family happened to be among the victims of the Wavulkelle massacre. During the second JVP-led insurgency (1987-1990) both the government and the insurgents perpetrated heinous crimes. There cannot be any dispute that the ruling UNP exploited a murderous counter insurgency campaign to eliminate its political rivals as well. However, courtroom killings have to be thoroughly investigated and perpetrators (read masterminds) arrested and punished. The Attanagalle courtroom killings mastermind must have taken the law into his own hands as he felt the perpetrators of the Wavulkelle carnage wouldn’t be punished.
Parties in Parliament, as well as those not represented, have conveniently forgotten the murderous political culture that prevailed during that time. The Wavulkelle carnage never received the public attention it deserved. The police and successive governments never made an honest effort to investigate law enforcement officers’ alleged involvement in extrajudicial killings.
The second Aluthkade hit
Over the past three decades, the law and order situation has deteriorated to such an extent, that the corrupt elements in the police are now directly enmeshed in the underworld. Ganemulle Sanjeewa’s killing underscored the responsibility on the part of the National People’s Power (NPP) government to conduct a no holds barred investigation, particularly against the backdrop of the disclosure that the Colombo Chief Magistrate Court hadn’t directed the Prions Department to produce Ganemulle Sanjeewa in court on the morning of 19th February.
Colombo Chief Magistrate Thanuja Lakmali is on record as having questioned the senior Prisons Department officer present in court as to why Ganemulle Sanjeewa was produced in court in the absence of a specific court order in that regard.
Let me remind you what police constable Hewapathiranage Tharanga told the inquest into Ganemulle Sanjeewa killing held before Colombo Chief Magistrate Thanuja Lakmali on 24th February. PC Tharanga, of the Keselwatta police, said that the gunman, who had been dressed as a lawyer, fired several shots in rapid succession at Ganemulle Sanjeewa the moment Magistrate Thanuja Lakmali asked for an explanation from a Prisons’ Department officer. What the Colombo Chief Magistrate said was that Ganemulle Sanjeewa had been brought to Hulftsdorp from maximum security Boossa prison without a court order.
The Magistrate’s shocking declaration should be examined taking into consideration IGP Priyantha Weerasooriya revelation that he intervened to prevent Ganemulle Sanjeewa being produced in the Gampaha court the previous week following intelligence warning of a possible attempt on the underworld kingpin’s life. Therefore, the crux of the matter is who decided to produce Ganemulle Sanjeewa in court without any such order. That issue has to be addressed without further delay.
The possibility of the assassin – a legally discharged soldier who had undergone the basic commando training course – having access to those in charge of Ganemulle Sanjeewa’s security cannot be ruled out. If notorious underworld figure Kehelbaddara Padme, operating from overseas, had ordered the elimination of Ganemulle Sanjeewa to avenge the killing of his father, as alleged by some, targeting him while being escorted by a squad of elite police commandos wouldn’t have been feasible. In addition to police commandos, Ganemulle Sanjeewa ostensibly also received armed protection from the Prisons Department.
The latest underworld hit exposed glaring shortcomings in security. The police and the Bar Association of Sri Lanka (BASL) owed the public an explanation why lawyers weren’t subject to routine security checks before entering courtrooms during high profile cases.
Especially against the backdrop of IGP Weerasooriya’s disclosure that they had been aware of an attempt that was to be made on the life of Ganemulle Sanjeewa on the previous week at the Gampaha court, why were not special security arrangements made on 19 February?
Perhaps, the Justice Ministry, the police and the judiciary should reach consensus on the deployment of armed police within courts for the protection of criminals under threat. It would be pertinent to mention that police assigned to provide security to judges are authorized to carry side arms in courts.
The Aluthkade killing, coupled with the Middeniya triple murder where the one-time henchman of the Rajapaksas was killed with two of his children, and two deaths in police custody, placed the NPP government in an extremely difficult situation.
Twelve persons have so far been taken into custody in connection with the Aluthkade killing. However, the woman accomplice of the assassin, who smuggled in the weapon into the courtroom, remains at large.
The recent issuance of an order by the Matara Magistrate to arrest eight policemen, including ex-IGP Deshabandu Tennakoon, over an alleged conspiracy to commit murder with regard to an incident at W 15 hotel in Weligama on the night of 31 Dec., 2023. If it is true that further underscores the deterioration of law enforcement. The predicament of a once powerful cop on whose behalf the previous President went to the extent of clashing with even the judiciary stresses the responsibility on the part of all parties to exercise caution.
Midweek Review
Truth and Reconciliation

By Lynn Ockersz
Ill-concealed by the sands of time,
Skeletons continue to scramble out,
Telling inconvenient, face-reddening truths,
Of smoking guns never brought to justice,
Of equity undelivered or miscarried,
Pointing to the error of the land’s ways,
But also warning it to be reconciled ere long,
Lest the Isle wanders dangerously once again,
Down blood-splattered tracks of self-harm,
And drives home the brutal truth of nation-breaking.
Midweek Review
The price of losing economic sovereignty

by Shiran Illanperuma
On 17 February, President Dissanayake delivered his maiden budget speech. The second reading was passed by a majority of votes on 25 February, and a vote on the third reading will be taken up on 21 March.
Amid the day-to-day politicking surrounding budget debates, it is important to remind ourselves of the socioeconomic context in which this budget has been presented. It has now been three years since Sri Lanka experienced its worst economic crisis in the modern era. In May 2022, Sri Lanka defaulted on its external debt for the first time in history. In September 2022, the country entered into a staff-level agreement with the IMF for a 2.9 billion US dollar bailout.
The effects of the austerity measures undertaken in order to earn the IMF bailout were plain to see in 2023. According to recent research the Centre for Poverty Analysis, poverty in Sri Lanka soared from 26% in 2022 to 31% in 2023. In raw numbers, this means that about 7.1 million people fell into poverty. To put this into perspective, 7.1 million people is a population greater than the entire Western Province (which was about 6 million according to the last census in 2012).
It would be unreasonable to expect a single budget to resolve the colossal humanitarian crisis brought about by the 2022 default and ensuing IMF programme. However, what is reasonable to expect is a contextual analysis of the factors, both local and global, that brought us here, and an outline of the way forward. Unfortunately, such analysis was entirely missing from the President’s maiden budget speech. In its place was the pronouncement of some lofty, but admirable, principles.
No democracy without sovereignty
During his budget speech, President Dissanayake said, “What is needed going forward is for a greater democratisation of the economy” – a noble goal given the socialist aspirations of Sri Lanka’s republican constitution. In this same speech, Dissanayake also said that achieving economic sovereignty was necessary to implement the NPP’s agenda.
Two days later, at a post-budget forum organised by the MBA Alumni Association, University of Colombo, and Daily FT, Dissanayake conceded, “Our economy is running on conditions. There is no economic independence or sovereignty – it is under probation and being monitored.” The implication is stark: Sri Lanka has no economic sovereignty, and therefore the mandate of a democratically elected government cannot be carried out.
What is left out of this equation is that the mandate of the NPP was to fight for the very economic sovereignty needed to carry out its programme – that is, to renegotiate the unfavourable debt-restructuring deal which would see Sri Lanka carrying a public debt-to-GDP burden of up to 95% even in 2032. This mandate was reneged in November 2024 when President Dissanayake endorsed the IMF programme, arguing that, “This is not the time to discuss if the terms are good or bad.”
One does not need a political science degree to understand that there can be no democracy without sovereignty. Any pretences of democracy in conditions of non-sovereignty are a façade. Economic sovereignty is not something that will magically reappear once the current IMF programme comes to an end. Rather, active work will be required to undo the worst of the policies undertaken under the auspices of the programme.
In other words, the confrontation with capital required to restore economic sovereignty is inevitable. To pretend otherwise is either naïve or dishonest. To say now is not the time is to ignore that there will likely never be a good enough time, especially as all forecasts point to Sri Lanka enduring a heavy debt burden to private foreign creditors even after the IMF programme concludes.
Citizen’s budget or creditor’s budget?
This budget was promoted as a citizen’s budget. The implication is that it is a budget that prioritises the mass of people, workers, farmers, fishers etc. over the interests of big business both local and foreign. To that end, there are many welcome proposals, including the move to increase public investment as a share of expenditure from 13% of GDP in 2024 to 18% of GDP in 2025.
However, this pales in comparison to the mammoth 41% of expenditure taken up by interest payments. Sri Lanka had one of the highest interest burdens in the world before defaulting on its external debt in 2022. This was predominantly due to the shift in borrowing from multilateral and bilateral creditors to private creditors. According to data from the World Bank, private bondholders accounted for 36% of Sri Lanka’s outstanding debt but 70% of interest payments in 2021.
In fact, the greatest fiscal burden for the governments is not the public sector wage bill or subsidies, but interests’ payments, particularly those from foreign debt. In the past decade or so, Sri Lanka has made the reckless move of borrowing externally to finance its domestic budget deficit. This creates massive exchange rate risks in serving that debt, as Sri Lanka maintains a yawning trade deficit due to its underdeveloped industrial base.
The Central Bank Act, a key condition of the IMF programme, and one that even the US ambassador seemed keen Sri Lanka adopt, will exacerbate this trend. With the newly ‘independent’ Central Bank unable to finance the government’s budget deficit, the government must rely even more on private creditors, both local and foreign, in the event of an external shock to the economy. This loss of monetary sovereignty remains the single most damaging element of the IMF’s conditions.
Changing international order
A void in the President’s budget speech was any reference to the implications of a changing international economic order to the future trajectory of the Sri Lankan economy. With the second inauguration of President Donald Trump in the US, there is an ongoing tactical shift in the US ruling class’s approach to maintaining a preponderance of power in a world where the economic centre of gravity is shifting to Asia.
First, the suspension of foreign aid leaves several government programmes without funding. Second, the combination of diminished consumer sentiment and a rise of protectionism in the Global North leaves the future of Sri Lanka’s exports highly uncertain. Third, the Global North’s attempts to reshore and “friend-shore” industrial production, leaves prospects for productive FDI uncertain. Fourth, NATO’s tactical withdrawal from the Ukraine’s proxy war in order to consolidate a US-EU defence industrial base and contain China, poses serious security threats to Sri Lanka which is situated at the heart of the Indo-Pacific Strategy.
The key countervailing force to these trends is the new mood in the Global South, characterised by a return to ideas of as South-South cooperation. In purchasing power parity terms, BRICS members account for around 37% of world GDP, surpassing that of the G7. Sri Lanka’s position in these ongoing conversations about restructuring the international economic order remain vague and uncertain. To argue for greater engagement is not a mere moral or theoretical imperative.
Going back to the question of economic sovereignty, the fact is that Sri Lanka was never going to be able to negotiate a better deal on its own. That would require coordinated multilateral action, through the formation of something like a debtor’s club. While it is not immediately clear whether forums such as BRICS will provide a platform for this, what is undeniable is that these forums are where the important conversations are happening.
(The writer is a researcher at Tricontinental: Institute for Social Research and a co-editor of Wenhua Zongheng: A Journal of Contemporary Chinese Thought. He is also a co-convenor of the Asia Progress Forum.)
(Asia Progress Forum is a collective of like-minded intellectuals, professionals, and activists dedicated to building dialogue that promotes Sri Lanka’s sovereignty, development, and leadership in the Global South. They can be contacted at asiaprogressforum@gmail.com).
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