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Sri Lanka’s development and big businesses

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Anila Dias Bandaranaike, Ph.D.

There is universal agreement that Sri Lanka is in an economic mess on several fronts. Even those in government, playing ostrich until recently, are beginning to articulate this reality. We cannot get out of this mess in a hurry. It will take prioritisation, commitment and time. It will require government, Big Businesses, small businesses and the people, working together in the national interest, to pull us out of it. As to whether that will happen, remains to be seen.

Qualified professionals with knowledge, acumen and experience, have spoken and written in the public domain on addressing our macro-economic problems – slow economic growth, low government revenue, wasteful expenditure, misaligned interest, exchange and tax rates and parlous levels of foreign earnings, reserves and debt. Some have suggested a clear macro-economic path to start the recovery process with debt restructuring. Is anyone listening?

Development Goals vs. Indicators

When the mess gets critical, we lose sight of the forest for the trees. We forget what these economic terms (trees) and statistics are really about. So, focussing on the forest, this article attempts to connect those terms to the human and environmental aspect of this mess.

Sri Lanka has 2 key resources – its people and its environment.

In that context, economic indicators used to measure development – GDP, FDI, export earnings, inflation, exchange and interest rates, foreign reserves and debt – are merely means to an end. That end goal is to improve human well-being, through sustainable development, which protects the environment for future well-being. Economic indicators are just measures of whether Sri Lanka provides adequate jobs, incomes and domestic and foreign goods and services, at reasonable prices, to its people, to improve their well-being. In that process, if all goes well, corporates grow their businesses and shareholders get better returns on their investments.

However, all households have to earn living wages to feed, clothe, house and educate their families and keep secure and healthy. If the majority are struggling to make ends meet, they will leave Sri Lanka, or take to the streets, or plunder the environment for short term gains. Then, businesses suffer from labour shortages, strikes and social instability, governments from low revenue and overall instability and everyone from environmental degradation and inadequate goods and services for their well-being.

In addition to the problems identified by economic indicators (trees), focussing on the forest conveys that Sri Lanka has two more problems. First is Sri Lanka’s severe brain drain. Professionals, skilled and unskilled workers are leaving the country in frustration and despair. Second is under-valuing our fragile biodiversity, resulting in ill-conceived projects destroying it all over Sri Lanka? One example is the Minneriya “Gathering” of elephants. This can earn massive tourism dollars.

Currently however, high water levels, from excess water being diverted from the Moragahakanda irrigation project into Minneriya tank, threatens the “Gathering”. Tourism earnings and other economic benefits from the “Gathering” are estimated to be several orders of magnitude higher than from the irrigation project’s agricultural output. Does government care? Reducing Sri Lanka’s spectacular St. Clair’s waterfall to a trickle, for hydropower, is another example.

So, just as important as regaining macro-economic stability, is the need to value and grow our human and environmental resources.

Environmental Resources

We must recognise and prioritise our incredible marine life, beaches, rainforests, mangroves, wetlands, water-bodies, and the flora and fauna they hold. We must protect them from ill-conceived and damaging construction, landfills, waste-dumping and sand-mining, as well as from over-using, poaching, illicit-logging and deforestation.

Let’s take tourism as an example. Sri Lanka has two strong competitive advantages. First, its biodiversity, just described. Second, its diverse, sophisticated, cuisine – upcountry and low country Sinhala; Northern, Eastern and upcountry Tamil; and Muslim, Malay and Burgher specialities. However, most roads leading to our environmental and culinary treasures cannot handle large coachloads. So, we should target tourist earnings, rather than numbers, and strategise to attract smaller numbers of high-end, high-spending tourists, who love nature, food and new experiences. We should show-case and promote our unique, local cuisine and brews, rather than serve them imported cheese, salmon and wines, which they can get elsewhere. That way, we raise value addition, reduce imports and promote backward linkages.

Innovative entrepreneurs, including foreigners who operate under the radar, are doing just that – offering community and nature-based tourism and local food, from small, exclusive hideaways, at various price levels. But what of our corporates? They build large hotels in resort areas, catering to coachloads of two-week package holidays for Europe’s low-spending workers. When bombs, tsunamis and pandemics occurred, they begged a debt-riddled government for handouts to recoup their ill-thought investments.

Our wild life parks suffer from irresponsible over-crowding and undisciplined safari vehicles. Yet, has the collective corporate voice raised these issues adequately? Government has even sanctioned baby elephants in private captivity for the influential, with little protest from collective Big Business. Tourism is one example, among many.

Human Resources

We urgently need labour market and education system reforms. Labour market reforms must address labour shortages, low wages and inflexible labour laws that hurt both employers and employees. Big Business has not put adequate collective effort into reforming archaic labour laws for longer term benefits, rather choosing, with a short-term horizon, to forever work around them. Education system reforms must address inadequate skills in problem-solving, in language and communication, and in computer use. Big Businesses complain about employee quality, but only some put their money where their mouth is.

Let’s take private company wages as an example. Salaries of the few who meteorically rise, are phenomenal. But for the bulk of qualified young executives, salaries are just about enough to live with their parents and take public transport to work. Can we blame brain drain to greener pastures? What about cutbacks during the pandemic? Many businesses were hit by it. But some – health care, online consumer sales and other online activities – thrived. Although social life was curtailed, none at high income levels suffered any material change in their levels of creature comfort. The worst hit were lower income workers, especially daily wage earners. Some had no work and no income at all. Yet, some big companies, even those which thrived, prioritised their bottom lines, and cut wages and benefits to the most vulnerable.

Big Businesses changing gear and thinking in the longer- term interests of their human resources could mean less focus on the immediate bottom line, as well as paying higher non-regressive taxes and higher living wages, training costs and social security benefits to their employees, if they wish to retain them. There is no easy way out.

Big Business Input

Published national data, on the output and employment structure of the Sri Lankan economy, show that large formal businesses total less than half of Sri Lanka’s economic output and about a third of employment. However, their collective voice wields much more influence than their share of those pies. Government and Big Business need each other to survive and to move forward for their own and the national interest. Hence, the collective voice of Big Business can, if they choose to do so, push for better governance and informed investment and development decisions.

But do they? The last 2021 Budget was clearly a disaster, and later proved itself so. However, at a public webinar, along with corporate leaders, a senior EDB official praised it highly. Yet, he resigned his post very soon thereafter. I was once at a formal reception of big business leaders, where some, who had been poking fun at the Central Bank Governor, fawned over him when he joined their group. I may not have agreed with the Governor’s policies, but he did not deserve such blatant hypocrisy. In the last 15 years, I have not seen the Chambers take a strong collective stand against any ill-conceived government decision on any issue.

One example was the Act allowing government takeover of “Non-Performing” companies. Another is the current foreign exchange debacle. The Central Bank Governor cited exporters not converting their earnings to rupees as the reason why banks are facing exchange shortages which, in turn, affects their ability to open LCs. Export groups publicly denied these allegations, but none bluntly stated the real reason – Central Bank’s unofficial directive to banks to artificially hold the exchange rate at Rs. 203/dollar, when it should be much higher! This ill-conceived directive has also affected migrant worker remittances to Sri Lanka. They now resort to alternate unofficial mechanisms to ensure a realistic conversion rate for their hard-earned dollars sent to Sri Lanka. Will business Chambers speak out, before the Governor cites migrant workers too, like exporters, of being unpatriotic?

If Sri Lanka is to get out of this mess, there has to be a paradigm shift in thinking and action among the Big Business community, away from rent-seeking, to pushing for longer-term collective development that will benefit, not just them, but all stakeholders. Straight talk from Big Business may be the only way to get governments to listen and act. If companies fear to speak out individually because of retaliation from government, they must do so collectively, disagreeing and providing constructive criticism, when necessary, through their various Chambers and other business groups. No government can penalise Big Business working together, without detrimental consequences to itself.

Sri Lanka should focus, in the shorter term, on macro-economic stability, and, as importantly, in the longer term, on safeguarding and growing our human and environmental resources. The Big Business community must collectively push for this, in their own longer-term interests.

The “Road Map” presented recently for Sri Lanka to get out of this mess, was definitely a map – it showed us ALL roads to ALL places. Its presentation of 85 colourful slides, each crammed with graphs, charts and words, only conveyed utter, obfuscating, confusion. If meant to show the way forward, 20 succinct slides could have done it. I sympathise with the officers who were commissioned to prepare that “Road Map”. I hope members of the Big Business community, including business chambers and relevant organisations, will use their influential, collective voice for some straight talk, to help the architects of that “Road Map” find their way back into the light and lead Sri Lanka out of the darkness we are currently in.

(The author retired as Assistant Governor of the Central Bank of Sri Lanka (CBSL) in 2007. As Director of Statistics, CBSL, she spearheaded the compilation of Provincial GDP data and the collection of survey data on living conditions in all nine provinces, following a lapse of 20 years since 1983. From 2015 to 2020, she was a member of the three-member Independent Delimitation Commission)



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Illegal solar push ravages Hambantota elephant habitat: Environmentalist warns of deepening crisis

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Land earmarked for the project

A large-scale move to establish solar power plants in Hambantota has triggered a major environmental and social crisis, with more than 1,000 acres of forest—identified as critical elephant habitat—cleared in violation of the law, environmental activist Sajeewa Chamikara said.

Chamikara, speaking on behalf of the Movement for Land and Agricultural Reform, said that 17 companies have already begun clearing forest land along the boundaries of the Hambantota Elephant Management Reserve. The affected areas include Sanakku Gala, Orukemgala and Kapapu Wewa, which are known to be key elephant habitats and long-used movement corridors.

He said that what is taking place cannot be described as development, but rather as a large-scale destruction of natural ecosystems carried out under the cover of renewable energy expansion.

According to Chamikara, the clearing of forests has been carried out using heavy machinery, while large sections have also been deliberately set on fire to prepare the land for solar installations. He said that electric fences have been erected across wide stretches of land, effectively blocking elephant movement and fragmenting their natural habitat.

“These forests are not empty lands. They are part of a living system that supports wildlife and nearby communities. Once destroyed, they cannot be easily restored,” he said.

The projects in question include a 50 megawatt solar development undertaken by five companies and a larger 150 megawatt project implemented by 12 companies. The larger project is reported to be valued at around 150 million US dollars.

Chamikara stressed that these projects are being carried out in a coordinated manner and involve extensive land clearing on a scale that raises serious environmental concerns.

He further alleged that certain companies had paid about Rs. 14 million to secure support and move ahead with the projects. He said this points to a troubling failure of oversight by state institutions that are expected to protect forests and wildlife habitats.

“This is not only an environmental issue. It is also a serious governance issue. The institutions responsible for protecting these lands have failed in their duty,” he said.

Chamikara pointed out that under the National Environmental Act, any project of this scale must receive prior approval through a proper Environmental Impact Assessment process.

He said that clearing forest land before obtaining such approval is a direct violation of the law.

He added that legal requirements relating to archaeological assessments had also been ignored. Under existing regulations, large-scale land clearing requires prior evaluation to ensure that sites of historical or cultural value are not damaged.

“The law is very clear. You cannot go ahead with projects of this nature without proper approval. What we are seeing is a complete disregard for legal procedure,” Chamikara said.

The environmental impact of these activities is already becoming visible. With their natural habitats destroyed, elephants are increasingly moving into nearby villages in search of food and shelter. This has led to a sharp rise in human-elephant conflict in several areas.

Areas such as Mayurapura, Gonnooruwa, Meegahajandura and Thanamalvila have reported increasing encounters between humans and elephants. According to Chamikara, more than 5,000 farming families in these areas are now facing growing threats to their safety and livelihoods.

 

He warned that farmers are being forced to abandon their lands due to repeated elephant intrusions, while incidents involving damage to crops and property are rising. There have also been increasing reports of injuries and deaths among both humans and elephants.

“This is turning into a serious social and economic problem. When farmers cannot cultivate their lands, it affects food production, income and rural stability,” he said.

Chamikara also raised concerns about the broader environmental consequences of clearing forests for solar power projects. While renewable energy is promoted as a solution to reduce carbon emissions, he said that destroying forests undermines that goal.

“Forests play a key role in absorbing carbon dioxide. When you clear and burn them, you are increasing emissions, not reducing them. That defeats the purpose of promoting solar energy,” he explained.

He added that large-scale deforestation in dry zone areas such as Hambantota could also affect local weather patterns and reduce rainfall, which would have further negative impacts on agriculture and water resources.

Chamikara called for a shift in policy, urging authorities to focus on more sustainable approaches to solar power development. He said that rooftop solar systems on homes, public buildings and commercial establishments should be given priority, as they do not require clearing large areas of land.

He also recommended that solar projects be located on degraded or abandoned lands, such as areas affected by past mining or other low-value lands, rather than forests or productive agricultural areas.

“Renewable energy development must be done in a way that does not destroy the environment. There are better options available if there is proper planning,” he said.

Chamikara urged the Central Environmental Authority and the Department of Wildlife Conservation to take immediate action to stop ongoing land clearing and investigate the projects. He stressed that all activities carried out without proper approval should be halted until legal requirements are met.

He warned that failure to act now would lead to long-term environmental damage that could not be reversed.

“If this continues, we will lose not only forests and wildlife, but also the balance between people and nature that supports rural life. The consequences will be felt for generations,” he said.

The situation in Hambantota is fast emerging as a critical test of whether development goals can be balanced with environmental protection. As pressure grows, the response of authorities in the coming weeks is likely to determine whether the damage can still be contained or whether it will continue to spread unchecked.

By Ifham Nizam

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Why Mahatma Gandhi’s teachings need to be at the heart of conflict resolution

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Mahatma Gandhi

All credit to the Tamil Nadu government for taking concrete measures to perpetuate the memory of the renowned Mahatma Gandhi of India, who on account of his moral teachings stands on par with the likes of Socrates, Plato, Aristotle, Confucius and Jalaluddin Rumi, to name a few such all-time greats. The time is indeed ripe to draw the world’s attention to the Mahatma’s humanistic legacy which has resonated in the hearts of peace-oriented sections the world over down the decades.

Under its mega developmental blueprint titled ‘ Tamil Nadu 2030’, the Tamil Nadu government, among other things, intends transforming villages into centres of economic growth in conformity with the Mahatma’s vision of making the village the fundamental unit of material and spiritual advancement. Thus will come into being the ‘Uttamar Gandhi Model Villages Project’, which will be initially covering 10 village Panchayats. (Please see page 3 of The Island of March 11, 2026).

The timeliness of remembering and appreciating anew the teachings of Mahatma Gandhi resides in the utter lawlessness that has been allowed to overtake the world over the last few decades by none other than those global powers which took it upon themselves to usher in a world political and economic order based on the UN Charter and the Universal Declaration of Human Rights. Mainly in ‘the dock’ in this regard are the permanent members of the UN Security Council.

As is plain to see, the international law and order situation has veered out of control. Principal priorities for the international community or what’s left of it is to prevent the current mainly regional war in the Middle East from degenerating dangerously into another world war, coupled with the task of eliminating the possibility of another nuclear holocaust.

The most scorching of ironies is that the world’s ‘number one power’, the US, has virtually lost its way in the ‘Global Disorder’ it has been party to letting lose. For instance, instead of making good its boast of militarily neutralizing Iran and paving the way for the constant flow of fuel and gas from the Strait of Hormus by itself and Israel, it is now appealing to the rest of the West to come to its assistance. Not surprisingly, US allies are indicating their unwillingness to help pull the US’ ‘chestnuts out of the fire’.

Oil and gas are the veritable life blood of countries and going ahead it should not come as a surprise if impatience gets the better of the major powers and the nuclear option is resorted to by some of them under the dangerous illusion that it would be a quick-fix to their growing economic ills and frustrations.

All the above and more are within the realms of the possible and the need is pressing for humanistic voices to take centre stage in the present runaway crisis. As pointed out in this column last week, Realpolitik has overtaken the world and unless the latter is convinced of the self-destructive nature of the major powers’ policy of ‘meeting fire with fire’ to resolve their disputes, annihilation could be the lot of a good part of the world.

For far too long the voice of humanity has been muted and silenced in the affairs of world by the incendiary threats and counter-threats of the big powers and their allies. No quarter has been bold enough in these blood pressure-hiking slanging matches to speak of the need for brotherly love and compassion among nations and countries. But it’s the language of love and understanding that is the most pressing need currently and the Mahatma in his time did just that against mighty odds.

At present the US and Iran are trading threats and accusations over military-related developments in the Gulf and it’s anybody’s guess as to what turn these events will take. However, calming voices of humanity and moderation would help in deescalating tensions and such voices need to go to the assistance of the UN chief and his team.

The Mahatma used the technique of ‘Satyagraha’ or the policy of non-violent resistance to oppose and dis-empower to a degree the British empire in his time and the current major powers would do well to take a leaf from Gandhi. The latter also integrated into the strategy of non-violent resistance the policy of ‘Ahimsa’ or love and understanding which helped greatly in uniting rather than alienating adversaries. The language of love, it has been proved, speaks to the hearts and minds of people and has a profoundly healing impact.

Mahatma Gandhi defined the ideal of ‘Ahimsa’ thus: ‘In its positive form, “Ahimsa” means the largest love, the greatest charity. If I am a follower of “Ahimsa”, I must love my enemy or a stranger to me as I would my wrong-doing father or son. This active “Ahimsa” necessarily includes truth and fearlessness.’ (See; ‘Modern Indian Political Thought; Text and Context’ by Bidyut Chakrabarty and Rajendra Kumar Pandey, Sage Publications India, Pvt. Ltd., www.sagepub.in).

In the latter publication, the authors also defined the essence of ‘satyagraha’ as ‘protest without rancour’ and this is seen as ‘holding the key to his entire campaign’ of non-violent resistance. From these perspectives, the teaching, ‘hatred begets hatred’ acquires more salience and meaning.

Accordingly, the voice of reason and love needs to come centre stage and take charge of current international political discourse. The UN and allied organizations which advocate conflict resolution by peaceful means need to get together and ensure that their voices are clearly heard and understood. The global South could help in this process by seeing to the vibrant rejuvenation of organizations such as the Non-aligned Movement.

An immediate task for the peace-oriented and well meaning is to make the above projects happen fast. In the process they should underscore afresh the profound importance of the teachings of Mahatma Gandhi, who is acclaimed the world over as a uniting and healing political personality and prophet of peace.

If the Mahatma is universally acclaimed, the reason is plain to see. Put simply, he spoke to the hearts and minds of people everywhere, regardless of man-made barriers. The language of peace and brotherhood, that is, is understood by everyone. The world needs more prophets of peace and reconciliation of the likes of the Mahatma to drown out the voices of discord and war-mongering and ensure that the language of humanity prevails.

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Exciting scene awaits them …

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The Future Model Hunt extravaganza, organised by Rukmal Senanayake, and advocacy trainer Tharaka Gurukanda, held in late January 2026, has brought into the limelight four outstanding contestants who will participate, at the international level, this year – Sandeepa Sewmini, Demitha Jayawardhana, Diwyanjana Senevirathna, and Nimesha Premachandra.

Nimesha took the honours as Mrs. Tourism Sri Lanka 2026 and was featured in The Island of 05th March,

Sandeepa Sewmini was crowned Miss Supranational 2026 and will represent Sri Lanka at the big event to be held in Poland later in the year.

A Business Management and Human Resources student, she will be competing under the guidance of Rukmal Senanayake from the Model With Ruki – Model Academy & Agency.

The Mister Supranational Sri Lanka crown went to Demitha Jayawardhana, a 20-year-old professional model and motocross rider.

Apart from modelling he is engaged in his family business.

Demitha Jayawardhana: Mister Supranational Sri Lanka 2026

Demitha is also a badminton player with a strong passion for sports, fitness and personal growth.

In fact, he is recognised for his strength, discipline, and passion for fitness.

A past student of Wycherley International School and St Peter’s College, Colombo, Demitha is currently in his second year of Economics Management at the Royal Institute of Colombo.

He will represent Sri Lanka at the 10th edition of the Mister Supranational pageant, in Poland, in August, 2026.

Mister and Miss Supranational are annual international beauty pageants, held in Poland, and are designed to discover new talent for the modelling and television industries and produce instant celebrities.

The competition focuses on elegance, intelligence, and social advocacy, with contestants, representing their countries.

The newly appointed Miss Teen International Sri Lanka 2026 is Diwyanjana Senevirathna.

She was crowned at the Future Model Hunt and will represent Sri Lanka at the Miss Teen International 2026 pageant in India.

Diwyanjana is noted for her grace and dedication to representing the country at this prestigious event that aims to celebrate talent, intelligence, charm, and individuality, and provide a platform for young girls to showcase their skills.

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