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Delisting of former proscribed entities

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By Neville Ladduwahetty

A media release issued by the Ministry of Defence (MoD) says, “The ban was lifted after a study was conducted by a committee consisting of the Ministry of Foreign Affairs, the Attorney General’s Department, intelligence agencies, law enforcement agencies, and the Financial Intelligence Unit of the Central Bank of Sri Lanka.”

The report also states: “According to the Ministry, 577 individuals, and 18 organizations, had been blacklisted, in 2021, for financing terrorism, under the United Nations Regulations No. 01 of 2012. However, following lengthy considerations, it was decided to delist 316 individuals, and six organisations as they no longer continue to fund terrorist activities, the Ministry said” (Daily FT, August 17, 2022).

According to the above statement, by the MoD, the reason for delisting some individuals and organisations on the basis that “they no longer continue to fund terrorist activities”. However, United Nations Regulations No. 01 of 2012, referred to in the MoD release, is based on “the Minister of Foreign Affairs promulgating the United Nations Security Council Resolution 1373 (2001) designating individuals, and entities, related to terrorism and terrorist financing, in national level. Accordingly, Institutions are obliged to have measures, in place, to identify and freeze funds, financial assets or economic resources of such designated persons, and entities, upon order by the Competent Authority who is Secretary to the Ministry of Defence. The Secretary to the MoD is appointed as the Competent Authority for the implementation of UNSCR 1373 and its successor resolutions in Sri Lanka.

When the Minister of Foreign Affairs promulgated UNSC Resolution 1373, it was limited ONLY to “identify and freeze funds, financial assets or economic resources”. This is too limited because it misses the full scope of 1373. The scope of UNSCC Resolution goes beyond to “any form of support, active or passive, to entities”. Therefore, since these provisions cover activities far beyond funding terrorist activities, the comment in the MoD release that those delisted “no longer fund terrorist activities” is too limited a basis for delisting; a fact that is evident from the UNSCR 1373 provisions presented below. This is a serious lapse in the interpretation of UNSC Resolution 1373, by the Minister of Foreign Affairs, and followed by the MoD, and all those organizations, and individuals, who participated in making the decision to delist some individuals and organizations, however rigorous their investigations were.

PROVISIONS of UNSCR 1373

SC Resolution 1373 states as follows:

1. Decides that all States shall: (a) Prevent and suppress the financing of terrorist acts; (b) Criminalize the wilful provision, or collection, by any means, directly, or indirectly, of funds by their nationals, or in their territories, with the intention that the funds should be used, or in the knowledge that they are to be used, in order to carry out terrorist acts; (c) Freeze, without delay, funds and other financial assets, or economic resources, of persons who commit, or attempt to commit, terrorist acts or participate in or facilitate the commission of terrorist acts; of entities owned, or controlled directly or indirectly by such persons; and of persons, and entities, acting on behalf of, or at the direction of such persons and entities, including funds derived, or generated, from property, owned or controlled directly or indirectly by such persons and associated persons, and entities;

(d) Prohibit their nationals, or any persons and entities, within their territories, from making any funds, financial assets or economic resources or financial or other related services available directly or indirectly for the benefit of persons who commit, or attempt to commit, or facilitate, or participate in the commission of terrorist acts of entities owned or controlled, directly or indirectly by such persons and of persons and entities acting on behalf of or at the direction of such persons;

2. Decides also that all States shall: (a) Refrain from providing any form of support, active or passive, to entities or persons involved in terrorist acts, including by suppressing recruitment of members of terrorist groups and eliminating the supply of weapons to terrorists; (b) Take the necessary steps to prevent the commission of terrorist acts, including by provision of early warning to other States by exchange of information; (c) Deny safe haven to those who finance, plan, support, or commit terrorist acts, or provide safe havens; (d) Prevent those who finance, plan, facilitate or commit terrorist acts from using their respective territories for those purposes against other States or their citizens; (e) Ensure that any person, who participates in the financing, planning, preparation or perpetration of terrorist acts or in supporting terrorist acts, is brought to justice and ensure that in addition to any other measures against them, such terrorist acts are established as serious criminal offences in domestic laws and regulations and that the punishment duly reflects the seriousness of such terrorist acts; (f) Afford one another the greatest measure of assistance in connection with criminal investigations or criminal proceedings relating to the financing or support of terrorist acts, including assistance in obtaining evidence in their possession necessary for the proceedings; (g) Prevent the movement of terrorists or terrorist groups by effective border controls and controls on issuance of identity papers and travel documents, and through measures for preventing counterfeiting, forgery or fraudulent use of identity papers and travel documents;

This interpretation is amply demonstrated in the judgment given by the United States Supreme Court in the case of Holder v Humanitarian Law project cited below.

According to the Court “material support” to terrorist means “even when offerings are not money or weapons but things such as ‘expert advice or assistance’ or ‘training’ intended to instruct in international law or appeals to the United Nations”.

The United States Supreme Court, in the case of Holder v Humanitarian Law Project, when the “…court voted 6 to 3 to uphold a federal law banning ‘material support’ to foreign terrorist organizations. The ban holds, the court explained, even when offerings are not money or weapons but things such as ‘expert advice or assistance’ or ‘training’ intended to instruct in international law or appeals to the United Nations” (Washington Post, June 22, 2010). Chief Justice John G. Roberts Jr. in writing the majority opinion said that those challenging the ban “simply disagree with the considered judgment of Congress and the Executive that providing material support to a designated terrorist organization – even seemingly benign support bolsters terrorist activities of the organization… (the law) is on its face, a preventive measure – it criminalizes not terrorist attacks themselves, but aid that makes the attack more likely to occur…” (Ibid).

EFFORTS to REVIVE the LTTE

The Island of January 31, 2022, carries a report that states: “The Indian National Investigation Agency (NIA) has registered a case and launched a probe in connection with the arrest of three Sri Lankan nationals with fake passports who are allegedly involved in raising money to revive the LTT ….”

The amended Prevention of Terrorism (Special Provisions) Act No. 48, 1979 of Sri Lanka that is tabled in Parliament does not adequately address the act of “raising money” by terrorist entities such as the proscribed LTTE. Instead, the amended PTA addresses mainly the rights and entitlements of perpetrators of terrorism, and NOT those who advise and support the many facets of LTTE activities. However, proscribing entities is not a sufficient deterrent to discourage terrorism. Instead, the breadth and scope of the legal provisions that exist need to be strengthened in order to prevent and suppress terrorism.

According to The Island report, the action taken by the NIA is under provisions of “Unlawful (Prevention) Act and Foreigners Amendment Act among others of the Penal Code”. Whether these instruments cover only terrorist acts or are sufficiently wide in scope to cover not only fund raising but also material support, needs to be established if they are to prevent and deter terrorism. If not, they need to be extended beyond, into activities such as selecting, training, fund raising and engaging the perpetrators of terrorism, if the legal provisions are to have an impact. Since the Security Council Resolution 1373 is sufficiently wide in scope to address these issues, it is imperative that ALL Member States incorporate its provisions because they are specifically designed to prevent and suppress terrorism. Since those arrested are now engaged in the revival of the LTTE, it is absolutely vital that Sri Lanka takes immediate action to implement the full scope of Security Council Resolution 1373, if terrorism is not to recur.

CONCLUSION

The press release issued by the Ministry of Defence states: “577 individuals, and 18 organizations, had been blacklisted in 2021 for financing terrorism under the United Nations Regulations No. 01 of 2012. However, following lengthy considerations, it was decided to delist 316 individuals and six organizations as they no longer continue to fund terrorist activities the Ministry said” (Daily FT, August 17, 2022).

This means nearly 55% individuals and 33% organizations were delisted from a list as recent as 2021. According to the press release, this decision was taken after a study was conducted by a galaxy of individuals representing the Ministry of Foreign Affairs, the Attorney General’s Department, intelligence agencies, law enforcement agencies and the Financial Intelligence Unit of the Central Bank of Sri Lanka on the basis that “they no longer continue to fund terrorist activities”

However, United Nations Regulations No. 01 of 2012 referred to in the MoD release is based on “the Minister of Foreign Affairs promulgating the United Nations Security Council Resolution 1373 (2001)”. The promulgation of UNSC Resolution 1373 by the SL Minister of Foreign Affairs is limited ONLY to prohibiting fund raising for terrorist activities. Section 2 of Resolution 1373 prohibits “any form of support, active or passive to entities or persons involved in terrorist acts…”. Therefore, the basis for delisting is NOT in keeping with the provisions of UNSC Resolution 1373. This reflects poorly on Sri Lanka’s obligations to the Security Council.

Despite the fact that the grounds for delisting cannot be justified on the basis claimed that “they no longer continue to fund terrorist activities”, the reason for doing so appears to be a measure adopted by the government to encourage the participation of the diaspora “as it is a strength and source of investment”, as stated by the President. In fact, the President went on to suggest that Sri Lanka should “set up a Special Diaspora Office” (Ceylon Today, August 18, 2022).

While the intention to set up a Special Diaspora Office to attract diaspora funds has merit, by delisting first and hoping the diaspora to respond by way of investments is too much to expect in the absence of a quid pro quo. Therefore, the diaspora is bound to expect a political solution to gain their confidence, as suggested by the TNA (The Island, August 21), before they become a “source of investment”. Under the circumstances, the grounds for investment would become a bargaining chip to extract the most expansive of political solutions such as a federal arrangement as indicated by one of the delisted entities. Since such an outcome would be a certainty, it would have been more prudent to delist only those who invest, instead of opening the flood gates without any assurances in place.

The reason for such caution is twofold. The unhindered access to Sri Lanka by those delisted could present opportunities for them to engage in active and/or passive support to encourage the revival of the LTTE as reported by the Indian National Investigation Agency. No amount of vigilance by the security establishment would reveal clandestine arrangements as took place with the activities that precipitated the Easter Sunday terrorist attack. The other is that the front runner for the Prime Ministerial post in the UK, Rishi Sunak, has at a meeting with British Tamil conservatives stated: “the UK will continue to play a central role to bring about justice and accountability” (The Island, August 21, 2022). “In his statement, he stressed his support for the latest UN Resolution on Sri Lanka, which mandated the collection of evidence that may be used in a future war crimes tribunal” (Ibid).

To delist 55% individuals and 33% organisations from a year-old list in the expectation of attracting diaspora investments against the background of the support of a future UK government, and the expectation of a federal arrangement as a political solution without assured commitments is beyond any sense of reality because it would be too high a price for the People of Sri Lanka to accept. Instead, what the MoD should have done was to delist only those who have shown or show good faith by investing to build a prosperous Sri Lanka.



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Sri Lanka’s rice conundrum: Time to stop managing crises and start fixing the system

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Prof. Ranjith Senaratne,
Emeritus Professor in Crop Science and former Vice-Chancellor,
University of Ruhuna and General President of the Sri Lanka Association for the Advancement of Science (2023) and
Prof. Prasad Jayaweera,
Dean, Faculty of Computing, University of Sri Jayawardenapura

Rice is not merely another crop in Sri Lanka. It is our staple food, an integral part of our history and culture, and a foundation of the civilisation that flourished around our ancient hydraulic systems. Revered as Buddha Bhogaya, the Buddha’s crop, rice has sustained our people for more than two millennia. Yet, remarkably, a country with such a profound relationship with rice continues to lurch from one rice crisis to another.

At one time, we have a surplus. At another, we face shortages. Prices rise sharply, consumers complain, farmers struggle to obtain remunerative prices, millers and traders become the focus of public attention, imports are hurriedly arranged, and governments announce yet another set of measures to contain the crisis. Then, after the immediate problem subsides, the matter recedes from the national agenda, until the next crisis arrives.

Why does this keep happening despite decades of agricultural research, policy interventions, expert committees and public debate?

Perhaps because we have been asking the wrong question. The fundamental problem is not simply how to produce more rice. Nor is it merely a question of prices, imports, fertiliser, farmers, millers or markets. The rice conundrum is a complex national systems problem.

We cannot solve a system by fixing its parts in isolation

Sri Lanka’s rice sector is an intricate web of interconnected systems involving agriculture, land, water, climate, technology, finance, energy, transport, markets, trade, governance, institutions and consumer behaviour. A decision made in one part of this system can have consequences, sometimes unintended, in another.

A change in fertiliser policy, for example, can affect productivity and production costs, which in turn influence farmer profitability, market prices and the need for imports. Irrigation decisions affect not only production, but also water availability, energy use and environmental sustainability. Guaranteed prices influence farmers’ cropping decisions, while import policies can simultaneously protect consumers and weaken incentives for domestic production. Likewise, market concentration can affect both the price received by farmers and the price paid by consumers. This is precisely why isolated interventions so often produce disappointing results. We keep treating symptoms while leaving the underlying system largely untouched.

For decades, we have generated valuable scientific knowledge on individual aspects of rice production and marketing. But knowledge generated within disciplinary and institutional silos does not automatically translate into solutions to complex real-world problems. What is needed now is a fundamentally different way of thinking.

From a “rice crop” to a “rice system”

The first step is to stop looking at rice simply as something that is grown in a paddy field.

The rice system begins with land, water, seed, inputs, technology and finance. It extends through cultivation, harvesting, drying, milling, storage, transport, wholesale and retail marketing, and finally to the consumer’s table. At every stage, there are different interests, incentives, constraints and actors: farmers, farmer organisations, input suppliers, machinery operators, millers, traders, wholesalers, retailers, financial institutions, government agencies, researchers and consumers.

And hovering over the entire system are climate change, changing consumer preferences, technological transformation and national economic conditions. A weakness anywhere in this chain can compromise the performance of the whole system.

Consider post-harvest losses. If significant quantities of rice are lost because of inadequate drying, storage or processing facilities, increasing production alone cannot solve the problem. Similarly, if farmers produce efficiently but face weak markets and poor bargaining power, productivity gains may not translate into improved livelihoods.

The question, therefore, should not be “How much rice can we produce?” but “How can we make the entire rice system work better?”

That requires us to see the connections.

The missing ingredient: reliable, real-time information

There is another fundamental weakness that deserves urgent attention: we still lack a comprehensive, integrated, interoperable and reliable national information system for rice. Information is scattered among different institutions, often collected using different methodologies and not necessarily available when decisions need to be made.

How much rice will actually be produced? How much is in storage? What is the likely demand? Where are the emerging production shortfalls? What are the stocks held by different actors? How are prices moving along the value chain? What are the likely consequences of climate conditions? Without timely and reliable answers to such questions, policymakers are forced to make critical decisions with incomplete information. This is not merely an administrative inconvenience. It is a national food-security vulnerability.

Sri Lanka should therefore seriously consider establishing a National Rice Intelligence and Decision Support System (NRIDSS), an integrated digital platform that brings together relevant real-time information from agriculture, meteorology, irrigation, markets, trade, statistics and other institutions. Such a system could support production forecasting, market monitoring, import decisions, early warning and evidence-based policy formulation. In an increasingly uncertain climate and volatile global economy, this should no longer be regarded as a luxury. It is becoming an essential component of national food-system governance.

The deeper problems cannot be ignored

A systems approach would also force us to confront some uncomfortable structural realities. Why does productivity remain relatively low despite decades of research? Why are so many holdings too small to achieve economies of scale? Why are modern technologies and precision agriculture not being adopted more rapidly? Why do farmers often have limited bargaining power? Why do substantial losses occur after harvesting? Why can market power become concentrated in a relatively small number of actors? Why are guaranteed prices sometimes announced too late to influence farmers’ production decisions? Why are policy interventions so often reactive rather than proactive? And how will droughts, floods, temperature extremes, changing rainfall patterns and emerging pests affect the stability of rice production in the years ahead? These are not separate questions. They are parts of the same system.

From crisis management to systems governance

Sri Lanka does not need another isolated discussion about rice. What is needed is a national policy dialogue and action forum that brings all relevant actors together, not merely to exchange speeches, but to develop a shared understanding of the system and agree on what needs to be done. Such collaboration must go beyond consultation or the exchange of views. The different parties need to work together from problem definition through to implementation, bringing their diverse knowledge, perspectives, interests and practical experience into a common process.

Farmers bring contextual and experiential knowledge; industry actors understand market realities and operational constraints; scientists contribute evidence and analytical capabilities; policymakers bring institutional and regulatory perspectives; while technology and data specialists can provide new tools for understanding and managing the system. When these different perspectives are brought together systematically, they can reveal interdependencies, challenge assumptions, identify feasible interventions and generate solutions that are evidence-based, practically implementable and socially acceptable.

This is the essence of a transdisciplinary systems approach: not simply working across disciplines, but bringing together multiple stakeholders and multiple forms of knowledge to co-create solutions and share responsibility for outcomes. The process should therefore go beyond presentations and speeches. It should involve systems mapping, causal analysis, stakeholder dialogue, scenario planning and the participatory identification of the critical bottlenecks and leverage points in the rice system. Most importantly, it should distinguish between what is urgent and what is important, and between interventions that merely alleviate symptoms and those capable of changing the underlying behaviour of the system itself.

We need an implementation roadmap, not another report

There is, however, one important caveat. Sri Lanka has no shortage of reports, recommendations and policy documents. What we often lack is sustained implementation. Any national initiative on the rice conundrum must therefore end not with another set of broad recommendations but with a prioritised national action roadmap. It should identify short-, medium- and long-term actions, assign institutional responsibilities, establish timelines and define measurable indicators of progress. The ultimate objective should be to move Sri Lanka from reactive crisis management to proactive systems governance.

A national opportunity

The rice conundrum may, in fact, provide Sri Lanka with an opportunity that extends well beyond rice to deal with other important crops. If we can demonstrate that a complex national problem can be addressed by bringing together science, policy, stakeholder knowledge, real-time information and systems thinking, the approach could become a model for addressing other persistent challenges, from climate resilience and water security to energy, food systems and disaster risk.

The choice before us is therefore quite stark. We can continue responding to each rice crisis as it emerges, adjusting prices, arranging imports, appealing to millers, reassuring consumers and supporting farmers, only to repeat the cycle later. Or we can step back and ask a more fundamental question:

What is it about the way our rice system is structured and governed that continually produces these crises?

That is the question that needs to be answered. Sri Lanka has the scientific expertise, institutional capacity and stakeholder knowledge required to do so. What is needed now is the willingness to bring these fragmented sources of knowledge together and examine the rice sector as one interconnected system.

Our ancient civilisation understood the importance of interconnectedness: land, water, agriculture and society were organised as parts of a larger whole. Perhaps, in confronting the modern rice conundrum, we need to rediscover that systems wisdom, this time supported by modern science, technology, real-time data and transdisciplinary thinking. The time has come to stop merely managing the rice crisis. It is time to fix the system that keeps producing it.

It is against this backdrop that the Sri Lanka Association for the Advancement of Science (SLAAS) proposes to convene shortly a “National Policy Dialogue and Action Forum on the Rice Conundrum in Sri Lanka”, bringing together the key stakeholders across the rice system. The Forum is intended to provide a platform for moving beyond piecemeal and reactive interventions towards a coordinated, evidence-based and transdisciplinary systems approach, one capable of generating lasting and pragmatic solutions to what has become an “island-shaking national issue”.

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This curse of partisan politics in Sri Lanka

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78 Years of Demagoguery, Not Democracy

by Brigadier Ranjan de Silva
rpcdesilva@gmail.com

On the 4th of February every year, we raise the lion flag and speak of democracy. We speak of 78 years of “self-rule.” But honesty demands we ask: what kind of rule have we actually had? It was not democracy. Democracy is government for the common good, constrained by law, informed by reason, and accountable to truth.

What Sri Lanka has had for 78 years is demagoguery — government by manipulation, by party, and by passion.

Defining the Curse:

The dictionary defines demagoguery as “political activity that seeks support by appealing to the desires and prejudices of ordinary people rather than by rational argument.” Its tools are simple: divide the people, promise the impossible, demonize the opponent, and govern for the next election, not the next generation. That is the political culture we inherited in 1948 and perfected since.

78 Years of Evidence:

The record is not ambiguous. Policy by Pendulum – 1948–2024. Instead of a national development plan, we got a partisan wrecking ball. 1956: The “Sinhala Only Act” was passed not after linguistic study, but as an election mobilization tool. 1970-77: The SLFP nationalized private enterprise and imposed import controls. 1977: The UNP reversed course with an open economy overnight. 2005-2014: Mega infrastructure was built on Chinese loans with no feasibility transparency. 2015-2019: Those same projects were called “white elephants” and stalled. 2020-2021: The organic fertilizer ban was announced as a populist “green” policy, reversed 6 months later after it collapsed agriculture and food prices. The Colombo Port City, Hambantota Port, and the Central Expressway all followed the same pattern: started, stopped, rebranded. The country pays twice. The party takes credit once. Economics as Election Candy. Demagoguery is expensive. 1960s: Subsidized rice to win rural votes, leading to the 1971 food crisis.

2005-2014:

Fuel subsidies and public sector hiring sprees that doubled the wage bill. 2019:

Unfunded tax cuts that removed Rs. 500 billion in annual revenue with no offset. By April 2022, external debt hit $51 Billion and we defaulted for the first time. The party that cut taxes was not in power to manage the IMF program. The party that inherited it was blamed for the austerity. This is the cycle. Institutions captured. A democracy needs referees. We turned them into party cadres. The 17th Amendment 2001 created independent commissions. The 18th Amendment 2010 abolished them. The 19th 2015 restored them. The 20th 2020 gutted them again. Police transfers, university vice-chancellors, and state bank chairmen have all been decided by party headquarters, not merit.

When the institution serves the party, the citizen gets leftovers.

Identity over Ideas: From 1956 to 1983 to 2009 to 2022, our elections have been won on fear, not spreadsheets. “They will erase your language.” “They will sell the country.” “Only we can protect Buddhism/the minorities/the nation.”

Rational debate on debt, productivity, or climate adaptation never wins a rally. Prejudice does. That is demagoguery by definition.

Party Interest subverted the National Interest. The core damage of 78 years of partisan politics is this: the nation became secondary to the party. Need power sector reform? Impossible, because our unions will strike. Need to cut 300,000 ghost employees? Impossible, because our voters will defect. Need a 20-year education and export plan? Impossible, because it won’t show results before the next election. So, we borrowed. We patched. We lied. The result: a railway system that still runs on 1950s engines, hospitals without paracetamol in 2022, and a brain drain of 300,000+ skilled workers since the crisis. The parties rotated. The country declined.

The Opposition’s Original Sin and here, all parties share guilt equally. In opposition, the job is not to govern. It is to destroy. The UNP in the 60s called the SLFP “communist.” The SLFP in the 70s called the UNP “imperialist.” The JVP called both “traitors.” The SJB, SLPP, and NPP today use the same script with new logos. Every tax is “anti-people.” Every reform is “a sell-out.” Every crisis is proof the other side is evil and must be removed at any cost. Then they win. And implement 80% of what they opposed. Because demagoguery has no principles, only positions. 78 years of unmerciful, bad-faith criticism has not produced accountability. It has produced cynicism. The public now believes all politicians are the same — because for 78 years, they have behaved the same.

Breaking the Curse:

Changing the party in power will not end this. We must change the incentives that reward demagoguery. Three reforms are non-negotiable: Bind future Parliaments to national policy. Pass 10-year frameworks for energy, education, and public debt with 2/3 majority protection. Infrastructure and fiscal rules should outlast one government, as they do in Chile and New Zealand. Depoliticize the state. Independent commissions for police, elections, public service, and bribery must have constitutional budgets and appointment panels that exclude MPs. No more 18th/20th Amendment style rollbacks. Demand better from voters We must stop rewarding the best slogan and start demanding the best spreadsheet. Town halls over rallies. Costings over promises. A 5-year plan over a 5-minute speech.

In 1948, we did not inherit democracy. We inherited an election. For 78 years we have used that election to choose our favourite demagogue. The prize has been debt, division, and decay. The curse of partisan politics will only end when citizens and leaders agree on one principle: Party second. Country first. Until then, February 4th will remain a ceremony, not a celebration.

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Developing markets for fruits, vegetables and flowers in the Gulf

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Image courtesy Export Development Board)

Export diversification – Missing the wood for the trees – Part II

by Gomi Senadhira

Sri Lanka established its diplomatic presence in the Gulf region only in the early 1980s. First, a small embassy was opened in Abu Dhabi, covering the UAE. Then in 1982, embassies were opened in Jeddah and Kuwait. The embassy in Jeddah covered Saudi Arabia while Kuwait was responsible for Kuwait, Oman, Qatar and Bahrain. Commercial Diplomats were also assigned to these two embassies. A senior private sector executive, with experience in marketing, was posted to Jedda as the commercial counsellor. I was posted to Kuwait as a second secretary (Commercial). Our instructions were very clear. Focus not only on traditional exports. Product diversification was a priority.

Developing Markets for Agricultural Products

At that time, Minister Lalith Athulathmudali had just launched his Export Production Villages (EPV) programme. He believed that the EPVs working closely with the exporters would provide an ideal opportunity for rural households to directly benefit from the government’s new open trade policy. Agricultural products, particularly fruits and vegetables, were a key component of this approach and the ministry thought that the Gulf countries, with large Sri Lankan communities, would have a ready-made market for these items. Thus, from day one we were compelled to explore the market for nontraditional exports; fruits and vegetables (F&Vs) were on the top of our priority list.

From cane baskets to cardboard boxes

Fortunately, the market for the F&Vs products in the region was at a very early stage of development. That provided an opportunity for Sri Lankan exporters, who were also inexperienced, to work with the importers and grow together. For example, in Kuwait, one of our first customers for F&Vs was a small supermarket where the manager was a Sri Lankan. After the first shipment arrived, he invited me to inspect the shipment. I visited the supermarket and was shocked by what I saw. While produce from other countries was packed nicely in cardboard boxes, our packaging mirrored transport to Manning market, cane baskets! As a result, fresh produce had suffered significant damage. A long report, with photographs, to the trade ministry produced an immediate response. After all, this was a pet project of the Minister. Within weeks, shipments were packed in cardboard boxes. Immediately afterwards, an expert on packaging from the Commonwealth Secretariat was sent to Kuwait with an official from the EDB to study the problem.

By then, we had also managed to develop a friendship with the management of the Salmiya supermarket, a large upmarket supermarket patronised by wealthy Kuwaitis and expats. It was a cooperative and the chairman was a Kuwaiti public servant. I could only meet him after 6 PM when his large office functioned as a diwaniya, a cherished cultural space in Kuwaiti society. Guests moved in and out the room. I had to spend time with them sipping many cups of tea. Though that meant at least two hours on each visit, it helped greatly to develop a close relationship. The general manager was an efficient and friendly Palestinian. After many visits we had succeeded in getting an order for F&Vs. The day after the first shipment arrived, I got an urgent call from the GM to come and inspect it. Once again, I was in for a surprise. Inside the cold room, the consignments from other countries were stacked neatly on top of each other, while vegetable boxes from Sri Lanka had collapsed once placed on top of each other, crushing the produce within.

Fortunately, our packaging experts arrived in Kuwait soon after this incident. They spent two days in the Salmiya Supermarket, studying the packaging from other origins. We were also successful in assuring the GM our packaging would improve. After that, packaging improved and exports moved smoothly. With that, Sri Lanka emerged as a small but reliable supplier to the mainstream market, not just the ethnic segment of the market.

Export of Fresh Vegetables by Sea

Towards the end of my tour, a Sri Lankan businessman requested me to find a buyer for cabbages, which he was prepared to export in large quantities by sea. I introduced him to the largest fruit and vegetable importer in Kuwait. Their regular suppliers of similar vegetables were Jordan, Lebanon and Syria. Luckily, the company was keen to diversify the supply sources. A few weeks later, the first container load of cabbages from Sri Lanka arrived in Kuwait. Immediately after the arrival of the container, I visited the company. They were pleased with the quality and the price and were looking forward to importing more fruits and vegetables. Unfortunately, that turned out to be a one-off event. Later on, when I was back in Sri Lanka, the exporter informed me that he couldn’t continue with it due to the problems with the local supply chains.

Floriculture

During the period I was asked by the EDB to explore the market for floricultural products, more particularly for cut flowers. At that time Kuwait was a relatively large importer of cut flowers and live plants. The main suppliers were the Netherlands and Colombia. Importers were also reluctant to move out of the established supply chain, particularly due to “snob value” associated with the product from Europe. However, after some difficulties, one importer agreed to place a pre-paid trial order. After the arrival of that shipment, he was impressed by the quality of the product and the orders expanded rapidly. As a result, by the end of 1985 Kuwait had become a major buyer of Sri Lanka’s floricultural products.

From village to global markets

As a result of the proactive promotional work undertaken by the EDB and the embassies in the region, by 1985, Sri Lanka had managed to acquire a small but significant share of the F&V and floriculture markets in the GCC countries. We had also identified domestic supply chain issues that hindered exports. All that was done, long before Southeast Asian or African countries even entered into that market. In fact, my Southeast Asian colleagues used to contact me often to reserve “durian” for them at the “Sri Lankan supermarket”.

Most importantly, a substantially large share of produce from Sri Lanka in Kuwaiti supermarkets originated in the EPVs. Of course, that didn’t just happen. The ministry (or the minister) using the carrot and stick approach “encouraged” exporters to buy the produce directly from the newly established EPVs. (The writer can be reached at senadhiragomi@gmail.com)

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