Features
Further on Budget Speech: Cost of living, public debt and collective responsibility
By Dr Laksiri Fernando
Minister of Finance Basil Rajapaksa is correct in identifying ‘international drug mafia,’ and ‘fraudulent business operations’ as challenges to the country, whether it should be stated in a Budget Speech or not. However, just after that and on the same breadth he is castigating ‘social activists’ and ‘civil society’ organisations as forces detrimental to the country, saying the following.
“Similarly, agents of foreign powers disguised as social activists are exerting a considerable pressure on our society to the extent that, today, such so called activism can overthrow strong and populist governments. It is not possible for a government alone to manage. Therefore, I invite all citizens of this country as responsible citizens to be vigilant about this situation.” (p.10).
While he characterises the social activists and civil society organisations as ‘agents of foreign powers,’ most worrying is the call for government supporters to act as ‘vigilante groups.’ That is the meaning of the last sentence. It is rather funny this is stated by an American citizen! Of course, no one should agitate to overthrow an elected government by force or violence. But call for harmful policies to be terminated, ineffective Ministers to resign, or for an early election to be held is within democratic parameters.
Cost of Living
The Budget speech has taken the price inflation, affecting the cost of living, as a major challenge. That is commendable. The answer given however is the following.
“We believe that matters, such as, changes in consumption patterns, inadequate increase in production yield, inability to adapt to modern technology, issues with transportation and storage, the impact of intermediaries, and the asymmetry of information, within the production chain have all contributed to rising commodity prices.” (Para 4.5).
“We have to accept that the increase in prices is due to a shortage of goods, the imposition of import restrictions, the overreliance on imports, the depreciation of the rupee together with the failure to adequately encourage manufacturers.” (Para 4.6).
It is simple economics to consider inflation in any country a function of demand (pull factor) and supply (push factor). If the first paragraph gives reasons in the domestic context, the second is primarily relates to external factors. However, it is wrong to begin with or blame ‘changes in consumption patterns’ for the ‘rising commodity prices.’
The author (whoever) should have made a distinction between the (luxury) demands of the rich, and the essential needs of the poor or the ordinary. The country’s problem at present is particularly the latter. Of course, there is a rising demand even on the part of the poor and middle classes because of population expansion and people’s desire to have healthy and quality foods and goods. Leisure and entertainment also are their needs.

It is not wrong to identify ‘inadequate increase in production, inability to adapt modern technology, issues of transportation and storage, interference (not impact) of intermediaries and asymmetry of information’ as contributory factors for the shortages of supplies. If we particularly refer to the agricultural sector (rice, grains, vegetables, fruits etc.), the Minister should have frankly admitted to ‘organic fertilizer’ blunder more than anything else for the present inflation and food crisis. That is not done. It was a blunder because of its unplanned and haphazard nature.
On the external side, there is nothing wrong in identifying ‘overreliance on imports, depreciation of the rupee, imposition of import restrictions’ as reasons for shortages and increase in prices. However, restrictions on the importation of luxury items not only necessary to soften the balance of payments, but also to ease the rupee deprecation under the present circumstances. These have not been in the horizon of the Budget Speech at all.
When we take the Consumer Price Index (CPI) even as a conservative reflection of people’s cost of living, the present conditions are appalling. From January to November this year, the CPI has increased from 138.7 points to 150.7 points, by 12 points.
Consumer Price Index, January-November 2021
In a budget speech when problems are identified, clear solutions also should be proposed or offered. Otherwise, there is no purpose of a speech. Unfortunately, this is not the case.
Public Debt and Foreign Exchange
It is partly understandable that public debt (foreign and domestic) going over 100 percent of the GDP during the civil war even though some of the loans and procurements were excessive and harmful to the country. This is something that had to be resolved thereafter. This was not done and in addition many new loans were procured mainly from China and others in the name of ports, airports, and roads. Benefits of these are long term.
There was no five-year plan or similar although this was requested by coalition partners of the UPFA (United People’s Freedom Alliance). Production, entrepreneurship, and businesses should have been promoted through public-private partnership, and through the private sector, before going into particularly largescale ports and roads. Promotion of production and infrastructure should go hand in hand, not one after the other. The partner parties, particularly the Left, also should be blamed for their lethargy or not taking necessary action to pressure or breakaway. Constructive independence is extremely important to the Left.
Of course, there are some developed or high capitalist countries who allow debt to go over the GDP. The US (128 percent) and Japan (235 percent) are two such countries. This is like big businesses taking loans even exceeding their assets and doing their rollovers. However small businesses cannot do so, or not allowed to do so, because their basic capacities are limited.
Likewise, the poor or just developing countries cannot afford to take major stakes in respect of loans and debt. They can easily get into a debt trap, to mean taking more and more loans to pay back the interests and loans. Sri Lanka at present is within this trap.
How has the Finance Minister explained the present debt question to the people? The following was his explanation:
“In 2014, when President Mahinda Rajapaksa handed over the country to the previous government, the total debt of the country stood at Rs. 7,487 billion. It was 72.3 percent of the Gross Domestic Product.
When the present President came to power at the end of 2019, public debt had increased to Rs. 13,032 billion. That is how the government of good governance had created debt.” (p. 14).
Is this correct or not? This is something that the Opposition should explain to the people frankly. Champika Ranawaka, a perennial political jumper, has at least tried an explanation (Colombo Telegraph, ‘Development and Loans,’ 2 December 2021). After arguing that Sri Lanka’s debt trap is mainly due to the high interest commercial borrowings with no concessions over repay period, he says the following.
“Accordingly, the 8% borrowings which were rigid and high interest at the start of Mahinda Rajapaksha regime became 47% by the end of 2015. As a result the country went in to a vicious cycle from 2016 to borrow from commercial lenders for a high interest without any concessional period to repay. by the end of 2019 the percentage became 58%. further, a sizable proportion of those borrowings were to repay previous debts.”
Collective Responsibility
When Ranawaka blames the Rajapaksa regime for taking high commercial loans during 2005-2015 period and increasing it from 8 percent of the GDP to 47 percent, he also should take the collective responsibility as mainly the Minister of Power and Energy during the period at the end.
Again, when he says the country went into a vicious cycle of commercial debt from 2016 onwards and it became 58 percent of the GDP in 2019 (excluding other and rupee loans), he again should take the responsibility as the Minister of Megapolis and Western Development. This is not to mention the Bond Scam.
I use the term ‘collective responsibility’ in this article not only in the traditional cabinet sense. On the question of debt trap, forex bankruptcy, high cost of living, balance of trade, balance of payments etc. both main parties of the so-called political divide are ‘collectively responsible’ to the country and the people. No one should or could escape from that responsibility.
At present, Sri Lanka’s external debt trap is mainly due to the commercial loans primarily obtained through International Sovereign Bonds (ISB) from international capital markets with high interest rates (around 6-8 percent) and without concessionary periods. The stubborn refusal to go before the IMF is another reason for the present debt crisis.
It was in 2007, during the Yahapalana regime, that the first ISBs worth $ 500 million was raised and then continued during the same period and by the present Rajapaksa regime to cover foreign expenses and previous loans. These commercial loans which was only 2.5 percent of all foreign loans in 2004, became 56 percent by the end of 2019 (See Umesh Moramudali, ‘Sri Lanka’s Foreign Debt Crisis Could Get Critical in 2021,’ 9 February 2021, The Diplomat).
Even in covering the day-to-day internal government expenses, both regimes had to rely on Treasury Bills and Bonds in auctions and allowing direct participation. Because the Treasury is always running out of funds, without a proper tax system in the country and almost all state enterprises are lost making entities. Since January 2020, over 150 auctions/issuances have been conducted for Treasury Bills and Bonds the final obligations running into billions and billions until 2015 and beyond. As a result, the government at present is bankrupt both externally and internally. This has been the fault of not one regime, but both regimes with ‘collective responsibility’ to this pathetic situation.
(Author a retired Professor of Political Science and Public Policy, University of Colombo, also served as Assistant Director of Commerce, Ministry of Commerce (1969), and a Director (academic) of the Colombo Stock Exchange (2010-2011).
Features
Rethinking post-disaster urban planning: Lessons from Peradeniya
A recent discussion by former Environment Minister, Eng. Patali Champika Ranawaka on the Derana 360 programme has reignited an important national conversation on how Sri Lanka plans, builds and rebuilds in the face of recurring disasters.
His observations, delivered with characteristic clarity and logic, went beyond the immediate causes of recent calamities and focused sharply on long-term solutions—particularly the urgent need for smarter land use and vertical housing development.
Ranawaka’s proposal to introduce multistoried housing schemes in the Gannoruwa area, as a way of reducing pressure on environmentally sensitive and disaster-prone zones, resonated strongly with urban planners and environmentalists alike.
It also echoed ideas that have been quietly discussed within academic and conservation circles for years but rarely translated into policy.
One such voice is that of Professor Siril Wijesundara, Research Professor at the National Institute of Fundamental Studies (NIFS) and former Director General of the Royal Botanic Gardens, Peradeniya, who believes that disasters are often “less acts of nature and more outcomes of poor planning.”
“What we repeatedly see in Sri Lanka is not merely natural disasters, but planning failures,” Professor Wijesundara told The Island.
“Floods, landslides and environmental degradation are intensified because we continue to build horizontally, encroaching on wetlands, forest margins and river reservations, instead of thinking vertically and strategically.”
The former Director General notes that the University of Peradeniya itself offers a compelling case study of both the problem and the solution. The main campus, already densely built and ecologically sensitive, continues to absorb new faculties, hostels and administrative buildings, placing immense pressure on green spaces and drainage systems.
“The Peradeniya campus was designed with landscape harmony in mind,” he said. “But over time, ad-hoc construction has compromised that vision. If development continues in the same manner, the campus will lose not only its aesthetic value but also its ecological resilience.”
Professor Wijesundara supports the idea of reorganising the Rajawatte area—located away from the congested core of the university—as a future development zone. Rather than expanding inward and fragmenting remaining open spaces, he argues that Rajawatte can be planned as a well-designed extension, integrating academic, residential and service infrastructure in a controlled manner.
Crucially, he stresses that such reorganisation must go hand in hand with social responsibility, particularly towards minor staff currently living in the Rajawatte area.
“These workers are the backbone of the university. Any development plan must ensure their dignity and wellbeing,” he said. “Providing them with modern, safe and affordable multistoried housing—especially near the railway line close to the old USO premises—would be both humane and practical.”
According to Professor Wijesundara, housing complexes built near existing transport corridors would reduce daily commuting stress, minimise traffic within the campus, and free up valuable land for planned academic use.
More importantly, vertical housing would significantly reduce the university’s physical footprint.
Drawing parallels with Ranawaka’s Gannoruwa proposal, he emphasised that vertical development is no longer optional for Sri Lanka.
“We are a small island with a growing population and shrinking safe land,” he warned.
“If we continue to spread out instead of building up, disasters will become more frequent and more deadly. Vertical housing, when done properly, is environmentally sound, economically efficient and socially just.”
The veteran botanist also highlighted the often-ignored link between disaster vulnerability and the destruction of green buffers.
“Every time we clear a lowland, a wetland or a forest patch for construction, we remove nature’s shock absorbers,” he said.
“The Royal Botanic Gardens has survived floods for over a century precisely because surrounding landscapes once absorbed excess water. Urban planning must learn from such ecological wisdom.”
Professor Wijesundara believes that universities, as centres of knowledge, should lead by example.
“If an institution like Peradeniya cannot demonstrate sustainable planning, how can we expect cities to do so?” he asked. “This is an opportunity to show that development and conservation are not enemies, but partners.”
As climate-induced disasters intensify across the country, voices like his—and proposals such as those articulated by Patali Champika Ranawaka—underscore a simple but urgent truth: Sri Lanka’s future safety depends not only on disaster response, but on how and where we build today.
The challenge now lies with policymakers and planners to move beyond television studio discussions and academic warnings, and translate these ideas into concrete, people-centred action.
By Ifham Nizam ✍️
Features
Superstition – Major barrier to learning and social advancement
At the initial stage of my six-year involvement in uplifting society through skill-based initiatives, particularly by promoting handicraft work and teaching students to think creatively and independently, my efforts were partially jeopardized by deep-rooted superstition and resistance to rational learning.
Superstitions exerted a deeply adverse impact by encouraging unquestioned belief, fear, and blind conformity instead of reasoning and evidence-based understanding. In society, superstition often sustains harmful practices, social discrimination, exploitation by self-styled godmen, and resistance to scientific or social reforms, thereby weakening rational decision-making and slowing progress. When such beliefs penetrate the educational environment, students gradually lose the habit of asking “why” and “how,” accepting explanations based on fate, omens, or divine intervention rather than observation and logic.
Initially, learners became hesitant to challenge me despite my wrong interpretation of any law, less capable of evaluating information critically, and more vulnerable to misinformation and pseudoscience. As a result, genuine efforts towards social upliftment were obstructed, and the transformative power of education, which could empower individuals economically and intellectually, was weakened by fear-driven beliefs that stood in direct opposition to progress and rational thought. In many communities, illnesses are still attributed to evil spirits or curses rather than treated as medical conditions. I have witnessed educated people postponing important decisions, marriages, journeys, even hospital admissions, because an astrologer predicted an “inauspicious” time, showing how fear governs rational minds.
While teaching students science and mathematics, I have clearly observed how superstition acts as a hidden barrier to learning, critical thinking, and intellectual confidence. Many students come to the classroom already conditioned to believe that success or failure depends on luck, planetary positions, or divine favour rather than effort, practice, and understanding, which directly contradicts the scientific spirit. I have seen students hesitate to perform experiments or solve numerical problems on certain “inauspicious” days.
In mathematics, some students label themselves as “weak by birth”, which creates fear and anxiety even before attempting a problem, turning a subject of logic into a source of emotional stress. In science classes, explanations based on natural laws sometimes clash with supernatural beliefs, and students struggle to accept evidence because it challenges what they were taught at home or in society. This conflict confuses young minds and prevents them from fully trusting experimentation, data, and proof.
Worse still, superstition nurtures dependency; students wait for miracles instead of practising problem-solving, revision, and conceptual clarity. Over time, this mindset damages curiosity, reduces confidence, and limits innovation, making science and mathematics appear difficult, frightening, or irrelevant. Many science teachers themselves do not sufficiently emphasise the need to question or ignore such irrational beliefs and often remain limited to textbook facts and exam-oriented learning, leaving little space to challenge superstition directly. When teachers avoid discussing superstition, they unintentionally reinforce the idea that scientific reasoning and superstitious beliefs can coexist.
To overcome superstition and effectively impose critical thinking among students, I have inculcated the process to create a classroom culture where questioning was encouraged and fear of being “wrong” was removed. Students were taught how to think, not what to think, by consistently using the scientific method—observation, hypothesis, experimentation, evidence, and conclusion—in both science and mathematics lessons. I have deliberately challenged superstitious beliefs through simple demonstrations and hands-on experiments that allow students to see cause-and-effect relationships for themselves, helping them replace belief with proof.
Many so-called “tantrik shows” that appear supernatural can be clearly explained and exposed through basic scientific principles, making them powerful tools to fight superstition among students. For example, acts where a tantrik places a hand or tongue briefly in fire without injury rely on short contact time, moisture on the skin, or low heat transfer from alcohol-based flames rather than divine power.
“Miracles” like ash or oil repeatedly appearing from hands or idols involve concealment or simple physical and chemical tricks. When these tricks are demonstrated openly in classrooms or science programmes and followed by clear scientific explanations, students quickly realise how easily perception can be deceived and why evidence, experimentation, and critical questioning are far more reliable than blind belief.
Linking concepts to daily life, such as explaining probability to counter ideas of luck, or biology to explain illness instead of supernatural causes, makes rational explanations relatable and convincing.
Another unique example that I faced in my life is presented here. About 10 years ago, when I entered my new house but did not organise traditional rituals that many consider essential for peace and prosperity as my relatives believed that without them prosperity would be blocked. Later on, I could not utilise the entire space of my newly purchased house for earning money, largely because I chose not to perform certain rituals.
While this decision may have limited my financial gains to some extent, I do not consider it a failure in the true sense. I feel deeply satisfied that my son and daughter have received proper education and are now well settled in their employment, which, to me, is a far greater achievement than any ritual-driven expectation of wealth. My belief has always been that a house should not merely be a source of income or superstition-bound anxiety, but a space with social purpose.
Instead of rituals, I strongly feel that the unused portion of my house should be devoted to running tutorials for poor and underprivileged students, where knowledge, critical thinking, and self-reliance can be nurtured. This conviction gives me inner peace and reinforces my faith that education and service to society are more meaningful measures of success than material profit alone.
Though I have succeeded to some extent, this success has not been complete due to the persistent influence of superstition.
by Dr Debapriya Mukherjee
Former Senior Scientist
Central Pollution Control Board, India ✍️
Features
Race hate and the need to re-visit the ‘Clash of Civilizations’
Australian Prime Minister Anthony Albanese has done very well to speak-up against and outlaw race hate in the immediate aftermath of the recent cold-blooded gunning down of several civilians on Australia’s Bondi Beach. The perpetrators of the violence are believed to be ardent practitioners of religious and race hate and it is commendable that the Australian authorities have lost no time in clearly and unambiguously stating their opposition to the dastardly crimes in question.
The Australian Prime Minister is on record as stating in this connection: ‘ New laws will target those who spread hate, division and radicalization. The Home Affairs Minister will also be given new powers to cancel or refuse visas for those who spread hate and a new taskforce will be set up to ensure the education system prevents, tackles and properly responds to antisemitism.’
It is this promptness and single-mindedness to defeat race hate and other forms identity-based animosities that are expected of democratic governments in particular world wide. For example, is Sri Lanka’s NPP government willing to follow the Australian example? To put the record straight, no past governments of Sri Lanka initiated concrete measures to stamp out the evil of race hate as well but the present Sri Lankan government which has pledged to end ethnic animosities needs to think and act vastly differently. Democratic and progressive opinion in Sri Lanka is waiting expectantly for the NPP government’ s positive response; ideally based on the Australian precedent to end race hate.
Meanwhile, it is apt to remember that inasmuch as those forces of terrorism that target white communities world wide need to be put down their counterpart forces among extremist whites need to be defeated as well. There could be no double standards on this divisive question of quashing race and religious hate, among democratic governments.
The question is invariably bound up with the matter of expeditiously and swiftly advancing democratic development in divided societies. To the extent to which a body politic is genuinely democratized, to the same degree would identity based animosities be effectively managed and even resolved once and for all. To the extent to which a society is deprived of democratic governance, correctly understood, to the same extent would it experience unmanageable identity-bred violence.
This has been Sri Lanka’s situation and generally it could be stated that it is to the degree to which Sri Lankan citizens are genuinely constitutionally empowered that the issue of race hate in their midst would prove manageable. Accordingly, democratic development is the pressing need.
While the dramatic blood-letting on Bondi Beach ought to have driven home to observers and commentators of world politics that the international community is yet to make any concrete progress in the direction of laying the basis for an end to identity-based extremism, the event should also impress on all concerned quarters that continued failure to address the matters at hand could prove fatal. The fact of the matter is that identity-based extremism is very much alive and well and that it could strike devastatingly at a time and place of its choosing.
It is yet premature for the commentator to agree with US political scientist Samuel P. Huntingdon that a ‘Clash of Civilizations’ is upon the world but events such as the Bondi Beach terror and the continuing abduction of scores of school girls by IS-related outfits, for instance, in Northern Africa are concrete evidence of the continuing pervasive presence of identity-based extremism in the global South.
As a matter of great interest it needs mentioning that the crumbling of the Cold War in the West in the early nineties of the last century and the explosive emergence of identity-based violence world wide around that time essentially impelled Huntingdon to propound the hypothesis that the world was seeing the emergence of a ‘Clash of Civilizations’. Basically, the latter phrase implied that the Cold War was replaced by a West versus militant religious fundamentalism division or polarity world wide. Instead of the USSR and its satellites, the West, led by the US, had to now do battle with religion and race-based militant extremism, particularly ‘Islamic fundamentalist violence’ .
Things, of course, came to a head in this regard when the 9/11 calamity centred in New York occurred. The event seemed to be startling proof that the world was indeed faced with a ‘Clash of Civilizations’ that was not easily resolvable. It was a case of ‘Islamic militant fundamentalism’ facing the great bulwark, so to speak, of ‘ Western Civilization’ epitomized by the US and leaving it almost helpless.
However, it was too early to write off the US’ capability to respond, although it did not do so by the best means. Instead, it replied with military interventions, for example, in Iraq and Afghanistan, which moves have only earned for the religious fundamentalists more and more recruits.
Yet, it is too early to speak in terms of a ‘Clash of Civilizations’. Such a phenomenon could be spoken of if only the entirety of the Islamic world took up arms against the West. Clearly, this is not so because the majority of the adherents of Islam are peaceably inclined and want to coexist harmoniously with the rest of the world.
However, it is not too late for the US to stop religious fundamentalism in its tracks. It, for instance, could implement concrete measures to end the blood-letting in the Middle East. Of the first importance is to end the suffering of the Palestinians by keeping a tight leash on the Israeli Right and by making good its boast of rebuilding the Gaza swiftly.
Besides, the US needs to make it a priority aim to foster democratic development worldwide in collaboration with the rest of the West. Military expenditure and the arms race should be considered of secondary importance and the process of distributing development assistance in the South brought to the forefront of its global development agenda, if there is one.
If the fire-breathing religious demagogue’s influence is to be blunted worldwide, then, it is development, understood to mean equitable growth, that needs to be fostered and consolidated by the democratic world. In other words, the priority ought to be the empowerment of individuals and communities. Nothing short of the latter measures would help in ushering a more peaceful world.
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