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Editorial

The axe falls

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The signs have been ominous for the past several weeks and finally the axe has fallen. Plagued by both mismanagement and bad governance by the ruling Rajapaksas, aggravated by an ineffective opposition, the bad news is now very much here and the people have to face the harsh reality. Last week’s sharp devaluation of the rupee against the dollar, long resisted by the Central Bank and its Governor, has been forced upon the Sri Lanka economy and a population that moved from gas queues to milk powder queues and then to long lines to refuel their vehicles interspersed by blackouts and power outages countrywide will, hopefully, be spared such torment in the near term. But at a price and a very heavy price at that, that most people would not be able to afford. But for how long? We can only hope that a benevolent deity will smile down on this tormented land.

The economic indicators are grim. The foreign exchange liabilities of the Central Bank exceeded its reserve assets by Rs. 662 billion (USD 3.29 bn.) in January this year, up from Rs. 386 billion (USD 1.9 bn.) a month earlier. The situation today must necessarily be worse with the country struggling to repay debt and being compelled to utilize reserves to pay for vital imports. We have been printing money as though there is no tomorrow and this has been going on for a long time. Cash savings of people have been wiped out in value terms in a country that had long been advocating savings as a means of strengthening the economy. Those who held what funds they had in fixed income instruments like fixed deposits have taken a heavy blow while those who invested in real assets like land and property or even a vehicle have been relatively unscathed. However, it is still too early to say whether capital appreciation of real estate in the current scenario will continue as in the past.

Government leaders have been urging patience on a population that is running out of that, or more correctly, already run out of it. No less than the president assured that the power problem will be over by March 5. But that was not to be. Ministers Lokuge and Gammanpila kept making contradictory statement with the ground situation proving Gammanpila right. The Lanka Indian Oil Company (LIOC), the Indian player in Sri Lanka’s oil import and distribution market, raised prices four times since Dec. 21 last year. The Ceylon Petroleum Corporation (CPC) which controls the larger market share did not follow suit though both players have been stridently claiming that they are selling below procurement cost. The obvious result of LIOC fuel, both petrol and diesel, being much more expensive than CPC’s, consumers tanked-up at CPC filling stations unless they were forced to do otherwise. The net result is that already high CPC losses swelled further.

The grim reality is that CPC must raise its prices sooner than later. The government, obviously, is all too aware of the ramifications of a fuel price increase which is all encompassing. Public transport fares must go up; so also the price of produce that must be moved to markets. The implications are far and wide but the evil day will soon be with us. The CPC, initially, would hike prices to be on par with LIOC, and thereafter both companies needing to match their sale prices with the cost of procuring supplies will demand further price increases. These no doubt will be granted. There is a Tamil proverb that the man who is already wet does not feel the rain. People hit with price rises for all essentials, leave apart the few luxuries that makes life tolerant, may (hopefully from the rulers’ viewpoint) like the man who got wet in the rain not feel the effect of this one too badly. We need not labour the fact that the impact of the devaluation will be all pervading.

There have been indication that the hard line resistance towards going to the IMF for assistance is weakening. A structural adjustment facility (SAF) from the Fund in 1978 greatly assisted President J.R. Jayewardene’s big bold stroke of freeing the economy shackled for decades by state controls. There were conditions for that including a sharp depreciation of the rupee from then prevailing exchange rates. Older readers may remember that the National Savings Bank (NSB) at that time paid as much as 22% for one-year fixed deposits. There was a surge in imports and demand pent-up over several years was satisfied. So much so that Mr. Lalith Athulathmudali, then minister of trade and shipping, once declared that people may tolerate high prices up to a point, but never again scarcities. Fifty years later they have been forced to tolerate both.

The IMF has warned that the Central Bank may lose control of money and the economy could implode unless money printing was stopped. There are signs that this advice is now being taken, although late. It said in a statement that Sri Lanka’s public debt, including Central Bank liabilities, has risen to 119 percent of gross domestic product (GDP). The bank is yet carrying debts to the tune of USD 1.2 billion to the IMF from previous currency crises. The president will chair an All Party Conference, something it was hitherto reluctant to do, within the next few days. As SJB front-liner Harsha de Silva, a knowledgeable economist recently said, “We’re all in this together.” Now is not the time for the cheap politics that has long plagued this country. The right thing must be done. But do we have the leaders to do it? That is the question.



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Editorial

‘Cops and Robbers’: Role reversals

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Wednesday 22nd April, 2026

The Opposition is in overdrive, attacking the JVP-NPP government, left, right and centre, over the coal procurement scam, which has resulted in a huge increase in the cost of power generation and electricity tariffs, besides bleeding the Treasury. The government has said the additional cost of burning diesel to produce electricity to meet the Norochcholai generation shortfall will not be passed on to the public, but the funds it is spending on diesel liberally for power generation belong to the public, and not to the JVP or the NPP. It is the people who bear the losses and the cost overruns in power generation caused by the coal procurement scandal.

What we are witnessing is a textbook example of the link between unbridled power and corruption. Allegations of corruption against the incumbent government, which came to power promising to usher in good governance, remind us of a rhetorical question in Juvenal’s Satires: Who guards the guards? (Quis custodiet ipso custodes?) It is being argued in some quarters that self-policing is the way out, but what Juvenal has highlighted is the problem of ensuring accountability at the top as well as the need for effective checks and balances. Guards simply do not care to guard themselves. Acton’s dictum about the correlation between power and corruption also points to the fact that those who wield unchecked power tend to believe they are above the law, beyond criticism and always right. Hence, steamroller parliamentary majorities and the overconcentration of power in one or two political institutions are detrimental to the interests of a country that lacks robust democratic safeguards. This has been Sri Lanka’s experience.

A collective of Opposition parties has pledged to defeat the JVP-NPP government, probe the coal procurement scandal, etc., and throw the corrupt elements in the current dispensation behind bars. Some Opposition bigwigs appeared on television yesterday and made a pledge to that effect. The corrupt no doubt must be brought to justice, but pity a nation that has to rely on the corrupt to punish the corrupt, one may say with apologies to Brecht. Most of the self-righteous Opposition politicians on a crusade against corruption are tainted. They faced serious allegations of corruption while in power. If their corrupt deals and ill-gotten assets had been properly probed, they would have been in jail.

The Opposition politicians who are out for former Energy Minister Kumara Jayakody’s scalp for his involvement in the coal scam and hauling President Anura Kumara Dissanayake over the coals for shielding him, also have a history of defending the corrupt. SLPP politicians are at the forefront of the Opposition’s anti-corruption campaign. During the previous government, they unashamedly shielded the then Health Minister Keheliya Rambukwella, who was embroiled in a procurement racket, and even defeated a no-faith motion against him. They are demanding to know how some JVP full-timers have acquired valuable assets including houses. They themselves are well-heeled, full-time politicians, aren’t they? They have bigger houses than the JVP leaders. How have they acquired their wealth?

Some of the Opposition grandees campaigning against corruption and condemning the incumbent rulers for corrupt deals had the chutzpah to deny the Treasury bond scams (2015) and go so far as to defend the culprits during the UNP-led Yahapalana government. They went to the extent of trying to dilute the COPE (Committee on Public Enterprises) report on the bond scams by having a slew of footnotes incorporated into it. They also sullied their reputations by defending the Yahapalana administration accused of various questionable deals. Interestingly, from 2015 to 2019, they were in league with the JVP leaders who are currently in power. The JVP propped up the Yahapalana government despite the latter’s involvement in the Treasury bond scams and failure to prevent the Easter Sunday carnage. The SLPP, which came to power, vowing to have the UNP leaders jailed over the bond scam, joined forces with the latter in 2022 to retain its hold on power.

Thus, it may be seen that the ruling party politicians and their Opposition counterparts are driven by expediency and not principle; they are ready to do anything to safeguard self-interest despite their moral grandstanding and rhetoric.

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Editorial

Of masterminds

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Tuesday 21st April, 2026

‘Mastermind’ has become a household term in this country since the Easter Sunday terror attacks (2019). The last seven years have seen several investigations, conducted by the police, committees and a presidential commission, into the carnage that shook the world, but there has been no general consensus on who actually masterminded the terror strikes. There are several schools of thought and various conspiracy theories about the terror attacks and the mastermind(s) behind them, and how long it will take to put the matter to rest is anybody’s guess.

The Easter Sunday carnage has caused Sri Lankans’ attitudes towards terrorism to undergo a sea change. Everyone has condemned the heinous crime unequivocally, without trotting out anything in extenuation of it. This, we reckon, is something positive.

Terrorism must be condemned and eradicated in all its forms and manifestations. It has no place in the civilised world, regardless of the various causes the perpetrators of it flaunt to justify their crimes and gain legitimacy. Terrorism is no means to an end; it is both the means and the end.

Unfortunately, while the LTTE and the JVP were going on killing sprees, opinion was divided on their terror campaigns and causes. The mastermind behind the LTTE’s terror attacks on civilians was obviously Prabhakaran, but some political and religious leaders and foreign diplomats had no qualms about meeting him and even posing for pictures with him, thereby allowing him to gain legitimacy. There are thousands of JVP members, including the current government leaders, who commemorate Rohana Wijeweera, who masterminded the JVP’s terror campaign. Prabhakaran is commemorated in a similar manner in the North and the East. Thankfully, no such public events are held in memory of Zahran Hashim, who led the National Thowheed Jamaath (NTJ), which carried out the Easter Sunday attacks, killing more than 275 people and injuring about 500 others.

Failure to prevent terror attacks despite the availability of actionable intelligence is also a criminal offence that must not go unpunished. Whoever masterminded the Easter Sunday bombings, lives could have been saved if the police, the then government and the intelligence agencies had acted swiftly upon being warned of impending attacks. Only a few of those who failed to prevent the carnage have faced legal action and been made to pay compensation to the victims. All recommendations made by the Presidential Commission that probed the Easter Sunday terror attacks must be implemented.

Curiously, prominent among those tasked with probing the Easter Sunday carnage afresh in a bid to trace the mastermind(s) behind it are two individuals who were at the helm of the CID in 2019, when it failed to prevent the terror attacks. They are retired SSP Shani Abeysekera and retired SDIG Ravi Seneviratne. They are currently serving as the Director of the CID and the Secretary to the Ministry of Public Security, respectively. Their political affiliations with the ruling NPP, as members of its Retired Police Collective, and the fact that the incumbent government brought them out of retirement and elevated them to their current positions for political reasons have compromised the integrity of the ongoing investigations into the Easter Sunday carnage.

Some of those seeking justice for the victims of the Easter Sunday terror attacks have demanded that Deputy Defence Minister Maj. Gen. (Retd.) Aruna Jayaskera resign forthwith, as he was the Security Forces Commander (East) at the time of the carnage, and some military intelligence officers facing investigations for their alleged links to the NTJ served under him. They insist that there is a conflict of interest on his part. Their argument is tenable, but it defies comprehension why they have not likewise called upon Abeysekera and Seneviratne to step down, thereby helping preserve the integrity of the investigations into the terror attacks.

Meanwhile, the masterminds behind some financial crimes have also not been identified. The Treasury bond scams (2015) were blamed squarely on the then Central Bank Governor Arjuna Mahendran although it is public knowledge that he acted at the behest of his political masters. Neither the Presidential Commission of Inquiry that probed the bond scams nor the COPE (Committee on Public Enterprises), headed by JVP MP Sunil Handunnetti, revealed the mastermind. The JVP was honeymooning with the UNP at the time. The mastermind behind the coal procurement scam, which has caused staggering losses to the Treasury and sent the power tariffs up, must also be identified and brought to justice. It is not possible that Kumara Jayakody, blamed for the scam, acted of his own volition.

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Editorial

Coal racket and pickpocket ruse

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Monday 20th April, 2026

Several salespersons have been arrested and remanded for forcibly cutting the hair of a woman as punishment for shoplifting. But neither Kumara Jayakody nor Udayanga Hemapala has been arrested over a mega coal procurement scandal that has caused massive losses, amounting to billions of rupees, to the state coffers. The government had them resign as the Minister of Energy and the Secretary to the Ministry of Energy, respectively, as a face-saving exercise.

The fraudulent procurement of low-grade coal causes a generation shortfall of more than 150MW at the Norochcholai power plant, according to power and energy experts, and hundreds of thousands of litres of diesel have to be burnt daily to prevent power cuts. The government has increased fuel prices and electricity tariffs to make up for the losses caused by the coal scam. Some former ministers have been sentenced to prison for misusing fuel allowances and state-owned vehicles, but Jayakody is seen in the exalted company of the JVP/NPP leaders. So much for the change the NPP promised.

When a Grade Six English language module was found to contain a link to an adult website, a few months ago, the CID was swiftly called in to conduct a probe. But no such action was taken against those involved in the coal procurement scam. This alone is proof that the government has qualms about protecting the corrupt.

A wag might say the JVP/NPP government has got blundering down to a fine art. It blundered by defending Minister Jayakody and defeating a no-confidence motion against him over the coal procurement racket. It has made an even bigger blunder by trying to muddy the water in a bid to open an escape route for Jayakody; President Anura Kumara Dissanayake has appointed a special presidential commission of inquiry to investigate coal procurement since 2009. (Thankfully, the probe does not cover the steam-locomotive era, when coal was imported!) Desperate to cover up the coal scam and shield Jayakody, the JVP-NPP government has resorted to a familiar ruse used by pickpockets who, while fleeing, shout ‘Pickpocket, Pickpocket’, to mislead onlookers into believing that they are also good guys pursuing thieves. But it is highly unlikely that the government will be able to fool all the people all the time.

The coal scandal and the despicable efforts of the JVP/NPP leaders to save Jayakody have revealed a political leadership with a faulty moral compass. Ironically, the JVP-led NPP is popularly known as Malimawa (compass), which is its symbol. The self-righteous JVP/NPP leaders have made a mockery of their commitment to upholding accountability and the rule of law. They find themselves in the same predicament as the proverbial cat that fouled a rock and scrambled to cover it up.

Not even President Ranil Wickremesinghe, vilified by the JVP/NPP for shielding the corrupt, stooped so low as to appoint a presidential commission of inquiry to probe all procurement issues since the establishment of the Health Ministry when the then Health Minister Keheliya Rambukwella and some senior officials were exposed for fraudulent procurement of substandard medicines. True, the SLPP-UNP government unashamedly defended Rambukwella and defeated a no-faith motion against him, but he and his bureaucratic lackeys were arrested, remanded and prosecuted. Shame on the JVP/NPP leaders who are making a determined effort to save Jayakody and other cronies involved in the coal scandal.

President Maithripala Sirisena appointed a special presidential commission of inquiry to investigate the Treasury bond scams (2015). He did not order that all bond issues under previous governments be investigated. President Dissanayake has resorted to smoke and mirrors. His government is now without any moral right to be critical of the corrupt.

While the Treasury bond probe was on, former Central Bank Governor Arjuna Mahendran, went overseas. He never returned. The JVP-NPP government has not cared to have him extradited despite its platform rhetoric. There is no guarantee that Jayakody and others involved in the coal scam will not emulate Mahendran. Hence the need for them to be arrested and prevented from leaving the country.

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