Features
Lanka is bankrupt because of the Rajapaksas, says Chandrika Kumaratunga
By Meera Srinivasan
Sri Lanka’s economic crisis is a consequence of the corruption over two Rajapaksa regimes, said former President Chandrika Bandaranaike Kumaratunga, admitting she is “thrilled” by the aragalaya or people’s movement that overthrew them recently.
“When our systems have crashed and been destroyed consciously, how do you change things…the only way to change is through a socio-political upheaval, a revolution,” she told The Hindu, in an interview on the dramatic changes that Sri Lanka witnessed in recent months, amid a crippling economic crisis.
In her view, the island nation had reached the stage where, with two Rajapaksa regimes, “everything that was bad and hateful was stabilised in power…today we are bankrupt only because of the corruption of the [Rajapaksa] family and their acolytes,” said the two-term President and survivor of an attempted assassination by the LTTE.
Observing that she would “wait and watch” how President Ranil Wickremesinghe, who relies on the Rajapaksas’ party in parliament, fares, Ms. Kumaratunga contended that his government must opt for an economic model that combines a social welfarist model with a liberal economic logic.
While Colombo might have challenging foreign policy choices ahead, especially while negotiating external assistance, the government must opt for a “dynamic non-alignment” policy, she noted, accusing the Rajapaksa administrations of “veering too much towards one country”.
“I am personally very thankful that India has come in, giving us all this aid when they could have stood back and waited because they were not very happy with the Rajapaksa government’s policies,” she said.
For over 15 years now, former two-term President of Sri Lanka Chandrika Bandaranaike Kumaratunga has stayed out of active politics. She re-emerged as a key player in the formation of the Yahapalanaya [good governance] coalition — of Maithripala Sirisena and Ranil Wickremesinghe — in 2015, only to witness the Sri Lanka Freedom Party of the Bandaranaike clan collapse after the Rajapaksas carved out their own party from it. Speaking to The Hindu at her Colombo residence recently, Ms. Kumaratunga reflects on the staggering developments in Sri Lanka over the last few months, and the way forward for the country’s political and economic progress.
Excerpts…
Q; As a senior political leader in Sri Lanka, what are your thoughts on the developments over the last few months – the Janatha Aragalaya (people’s struggle), the dramatic ousting of the Rajapaksas, the and the political changes since.
A; To start with, I can say I am thrilled by the Aragalaya. Not the violence that was perpetrated by the extremist minority there, but the whole concept of the Aragalaya, the way it started, and the vision of the good people leading it.
Because the country had reached the stage where, with two Rajapaksa regimes, everything that was bad and hateful was stabilised in power. Like corruption.
Today we are bankrupt only because of the corruption of the [Rajapaksa] family and their acolytes. There was no proper governance, no vision for the countryexcept to enrich themselves. They consciously turned everybody into crooks, be it the ministers, MPs, provincial council members, those in local government, as well as public servants, so that they could carry on robbing with no objections. Corruption had seeped from the top, right to the bottom, Vertically, horizontally, it had spread everywhere, whether it was in the public sector or private sector.
When our systems have crashed and been destroyed consciously, how do you change things? Even if you go for elections, the same lot of crooks get elected like they have for over 20 years. Then, the only way to change is through a socio-political upheaval, a revolution.For instance, the French Republic and the USA came into being by effecting radical change through revolutions, so with many other countries.
What about the aragalaya did you find striking?
What was really exciting and positive about the Aragalaya was that they had a vision. They were not just saying we want to chase out the Rajapaksas. They said this is not enough, we want an honest government, transparent governance, and that the robbers be brought to book. They issued a 10-point programme, which was quite good even if it needed further work, but the general direction of that programme was excellent.
I met a group of Aragalaya youth at a time they were chasing other political leaders out, as they sent me a message saying they wished to meet me.I jumped at their request. I presented my proposals to them.
I told them that I fully agree that all 225 MPs must go and a new government with new faces and the right kind of vision must come to power. I said that I have been saying the same thing for more than four years, having failed to change much under the Yahapalanaya government. However, I explained to them that the present Constitution does not permit anyone other than members of parliament to be appointed to the cabinet. I suggested an interim arrangement where the few good MPs from all political parties be selected to form a cabinet whilst a Council of State comprised of representatives from major civil society organisations, private sector professionals, academics, major NGOs as well as respected individuals,be created to review the work of the government.
40% of the total number should from among the youth, with a further 40% being women. All major policies and laws of the government would first be reviewed by this Council before implementation. The proposed constitutional amendments would include this concept.
They had taken on board my proposal in their 10-point programme and even gave it a much better name, calling it the ‘People’s Council’. They had a vision, they were brilliantly well organised, and they were honest about contributions coming in.
At least two surveys done at that time indicated that 90 % of our people supported them. I don’t know anybody who did not go to Galle Face [agitation site at Colombo’s sea front] except politicians like us who were scared to go.
The entire political stage has been swept clean by the Aragalaya. Now it remains for the people to collectively unite and formulate the contours of the new regime with new systems and procedures. I don’t believe for a moment that representatives of the old system, strongly entrenched in the destructive vision, attitudes, and practices of the regime that has been rejected by the vast majority of Sri Lankans, will ever wish or be able to effect any change in the system; the system that brought them to power and gave them unlimited possibilities of robbing the country dry, while employing state terror against anyone who challenged them.
I would say that the 225 MPs are hanging on by force. They do not have the people’s mandate anymore.Some people are idiotically arguing that they were elected for five years and that they should not be sent home early. They were elected by the people, and because those people were not given the opportunity to express their views at an election,they have expressed it in a democratic, peaceful manner. If there is no election, how are they supposed to voice their views if they don’t want to suffer the ignominy of a bad government? So, they expressed their views at Galle Face. I don’t agree with the violence, I am talking about the rest of it.
By that you mean the retaliatory violence by sections on May 9?
Yes, and later too. There is some idea of who burnt the MPs houses [on May 9], but there is much doubt about who burnt Ranil’s house [on July 9]. We don’t condone any of that in anyway. Honest politicians, if there are any left in the country, and there are a few, cannot ignore the entire essence of what happened in the Aragalaya. It swept through the whole country like a tsunami. We must take that into account, and factor that into our political vision and political programmes. I don’t know whether those in power right now are capable of doing it.
Sections within Sri Lanka see the election of President Wickremesinghe, a senior politician, through a parliamentary vote, heralding some stability for Sri Lanka. In your view, is Sri Lanka stable now?
It has definitely brought in a certain amount of stability. Fuel is being distributed in a logical and better fashion. The way the Rajapaksas did it was totally anarchic. Ranil seems to have understood, because he understands the economy and is an intelligent man, that the IMF programme is an absolute must. Even before that I have been saying we have to invite PPPs [Public Private Partnerships] into loss-making institutions.
My government initiated PPPs with Sri Lanka Telecom, Airlines, part of the port, part of power generation. We had a lot of objections, but I was able to handle it. Having worked with Ranil in two governments, I am waiting and watching. I wish him well, for the sake of the country.I really wish he can do it. But I don’t know whether he can translate his thoughts into action.
While the country is waiting to see how the government might set off economic recovery, there is also mounting concern from rights advocates who accuse this government of resorting to repression to stifle dissent, especially in the wake of the recent arrest of student leaders under the Prevention of Terrorism Act.
Totally unnecessary. Leaders have to possess communication skills to engage with those young people. They said they would leave Galle Face one morning and that morning before they left, they were attacked. What they should have done was conversed with them. Ranil himself. But I don’t know whether he has the communication skills. He has not proved such a thing for a long time.In crisis situations like this, leaders must have a very generous heart. When I congratulated him, I said that. They must be able to open their arms, hearts, and minds, and talk to the people, look at the problem from the people’s point of view.
They are starving today. They have been standing in queues for 48 hours, with some people dropping down dead. We have to feel with them, suffer with them, and then talk to them. I think they willnot refuse if leaders communicate properly with them. Now he has already muddied the waters.
Your own proposal recommended forming an interim government under the Prime Minister with just 12 Ministers. Now the cabinet is being expanded and efforts to form an all-party government are yet to succeed, with the opposition appearing sceptical. Do you think the opposition is justified?
He [Mr. Wickremesinghe] has convicted criminals and well-known thugs and robbers in his cabinet. Only a few are convicted, the others managed to persuade a subservient judiciary to let them off during the Rajapaksa regime. If the many cases against the Rajapaksas had been handled properly, there would have been numerable convictions.The Yahapalanaya government went to courts with cases, but they were thrown out for reasons unknown to us.
In such a situation, the younger politicians don’t want to sully their names. And what some of them say is that they would like the President to prove that he can keep his word and bring in the 21st Amendment or at least restore the 19th Amendment [aimed at clipping the President’s executive powers and in turn empowering parliament], and then bring in honest people into the cabinet and implement laws, systems and procedures to prevent corruption. Then they will join the government.
On the one hand, the ruling Sri Lanka Podujana Peramuna [SLPP or People’s Front which the Rajapaksas carved out of the SLFP] appears divided. On the other, the SLFPis grappling with divisions within. Now that the Rajapaksas are out of power, do you see the SLFP having a chance to regroup and revive itself?
Sri Lanka, like India, had two major parties. A left of centre party [SLFP], and a right of centre party [United National Party or UNP]. Both those forces have now been decimated. The SLFP is in pieces, a major part of it went to the SLPP. A considerable number has left the SLPP again and are calling themselves independent. Others who would lie on the ground for the Rajapaksas to walk over them are now with Ranil, as his greatest supporters. I suppose Ranil cannot help it, if they vote against him in an impeachment motion, he is finished. I have been asked if I would help the government. I will wait and watch. I have not been hooted at, stoned, nor spat upon [by protesters]. My good name is all I have earned in politics I don’t want to lose that.
Did the President himself invite you to help him?
I have had messages sent. I wish him well, but I will wait and watch because the situation is so horrendous and those in power must prove they can change it. I have had several disappointing experiences working with them.
The UNP may not be as decimated as the SLFP, but it is split.Ranil was the party’s only MP, but he is now building up [support] because he has power. And then there are different groups within the SJB as well [main parliamentary Opposition that broke away from UNP]. So, it’s a bit of a mess.
You were heading the Office for National Unity and Reconciliation. Post-war reconciliation and a political solution to the Tamils are still pending, and some are demanding a new constitution now. The draft constitution of 2000, when you were in power, is often cited as the draft that went farthest in terms of devolution. Do you think it’s a good time to revisit that?
Definitely. I worked on reconciliation for a long time, even before I came into positions in politics. Never before have I seen the people, of their own will, people of different ethnic, religious communities, working like brothers and sisters together, like they did in the Aragalaya. That is another reason I am thrilled by it.
While we did all kinds of programmes to encourage reconciliation, and they were successful, here it happened spontaneously. So, this is the moment to go forward. However, I don’t see any thinking about it.
The political tumult in the last few months was essentially triggered by an economic crisis. In your view what economic model must Sri Lanka choose now to set the country on a path of recovery?
I would say something like what I brought in between 1994 and 2005. Retain the sort of “socialist” aspects such as free education, free health while reducing the excessive subsidies, and slim down and rationalise government because we are dead broke.
A lot of people who are well to do receive subsidies through patronage networks of MPs. Introduce Voluntary Retirement Schemes in government institutions where the workforce is excessive and encourage them to start enterprises by making cheap credit available.
On the other hand, we need to adopt liberal economic policies, in some sectors.The state cannot insist on managing enterprises especially in countries like Sri Lanka, where the public service is incapable of managing state owned enterprises profitably. They are not trained for it. A different set of skills are required to profitably manage enterprises. In addition, corruption reigns supreme in the public enterprises. I see no alternative to bringing in private sector management to state owned enterprises.The ownership remains with the state, while the management is done by the private sector investor. We need a social welfarist approach with the liberal economic logic.
You earlier mentioned that IMF support will be crucial, but it looks like the process will take several months. There are foreign policy choices and geopolitical dynamics that come into play when it comes to debt restructuring and international assistance. How should Sri Lanka navigate this complex terrain?
Sri Lanka, I would say has no other choice than a policy of non-alignment. Dynamic non-alignment, as was followed by all the Bandaranaike governments. I am not saying it because it is my family, but it was very successful. And when once or twice, my mother’s government went against some of our major friends, they suffered.The Rajapaksa government veered too much towards one country, which tried to eliminate every other country from the Sri Lankan scene, and we are suffering the consequences.
I am personally very thankful that India has come in, giving us all this aid when they could have stood back and waited because they were not very happy with the Rajapaksa government’s policies. Whether we like it or not, we are a small country. Our major assets are our strategic location and human resources. We can be a major services hub in the whole region, not only South Asia, but all of Asia.
I think we should welcome all the major players in the region into this country for investment. We don’t have to sell our country to them as some say. It is more important than ever before because the country is insolvent. We need their financial participation, we need their skills. We are losing our skilled people. Some 140,000 young people have left the country this year. It is very tragic. A lot of people will then come back because the quality of life in Sri Lanka, until this crisis, is usually better than in many other places in the world. We have one of the mildest climates the whole year, most beautiful natural surroundings, water, soil.
One of the responses of the government to this crisis, both when President Gotabaya Rajapaksa was in power and more recently under President Wickremesinghe, has been to restrict imports. This move, for many, invokes memories of the 1970s under Prime Minister Sirimavo Bandaranaike, when shortages and long queues were common. How do view this comparison?
Of course, we must be self-sufficient in major products, major food products at least, and maybe small industrial products. But to say we must stop all imports and produce everything in Sri Lanka is not realistic. We are not big enough to do that.
You know, we Sinhala Buddhists, who comprise 70% of the population, are a majority with a terrific minority complex. Right through history, we have had this. One must analyse why. I suppose one reason is that we have a massive neighbour,and we have had a conflictual relationship with that country since ancient times, we were invaded 52 times by Indian kings. When a majority has a minority complex, you try to put down everybody around you to feel that you are important. That is a collective weakness of our nation.
The roots of the ethnic conflict also lie there, then?
It is certainly one of the major roots.And there is also another reason, which is not related, is that somehow, since the 1970s and 1980s, the type of persons who came into parliament were rascals, I wouldn’t let through my gate under normal circumstances.Those who got their houses burnt, except a few of them, were the known crooks. I don’t say that was the solution, that should have never been done. But they are so shameless. When people don’t have one square meal a day, they shamelessly demand they be given compensation immediately. Every one of them has made enough money illegally to build themselves two, three houses, and a large number of them already have many other houses, I can vouch for that.
Earlier, we had decent people in parliament, with principles and commitment irrespective of their background or education. But little by little that changed, especially with J.R. Jayawardene opening up the economy indiscriminately. Unlike in the West where capitalism took centuries to evolve, allowing systems and structures to adjust, the change in Sri Lanka came so abruptly, all our social structures burst asunder.
So all kinds of rascals came into Parliament, uneducated, not skilled. Everybody doesn’t have to be educated. There are lots of top business peoplein Sri Lanka and all over the world, who don’t have much education but possess the skills and commitment to engage in honest business. Our present politicians come into parliament thinking that parliament is going to be the best business to earn the largest amount of money with the least effort.
As you said, President Wickremesinghe is reliant on the SLPP in parliament. Do you see this dynamic changing with the attempted all-party or multiparty government?
He is very keen to have all the political parties in government, but even if he gets all of them, SLPP still has the majority. Some in opposition are fearful that even if they join, the SLPP will dominate. So they don’t want to dirty their hands and be the target of public hate. It is a dilemma.
The President must bring in the new Constitution, ask the well-known crooks to move out, bring in better politicians, and present a people-friendly development programme. Then the whole country will support him.
What about the Rajapaksas? Do you think the game is over for them, as some say, or can they make a comeback especially since the opposition is still weak?
All those possibilities are there. If a government, not a Ranil-SLPP government, but a government led by Ranil and all other parties, an honest government, solves the country’s problems, history will put the Rajapaksas in their due place.That is also why I say the Aragalaya movement was brilliant and extraordinary. The Rajapaksas have harassed me. They did that in cheap, horrible ways. Mahinda [Rajapaksa] and Basil [Rajapaksa]. Anyway, those are details that do not influence my political priorities. I dislike them for what they did to the country and our party.
So I am delighted that the Aragalaya was able to chase them out in a peaceful manner I think it is a great thing that happened, otherwise they would never have gone. I am also surprised by their shamelessness, by the fact that they are still clinging on. I would have taken a straight dive into the Indian Ocean if the people had reacted one-tenth as badly against me.
Do you see yourself returning to active politics?
No. Definitely not.
Why?
I have done enough. Unlike most Sri Lankan politicians, I have a lot of other interests in life.
What keeps you busy these days?
I am enjoying writing vision statements for political groups who want help. Quite a few young politicians who don’t want to be part of the Rajapaksa cabal come and ask me for advice. I still chair a few foundations.Then, I have started a leadership academy at the Bandaranaike Centre for International Studies to train young people to be good leaders, not only in politics, but also for society at large. I take care of my personal finances. I have a lot more time for my friends. I love reading, cinema, and theatre. I was utterly frustrated when I was President that I couldn’t read enough.
What are you reading currently?
I read quite a few books in the last three years after I pulled out of active politics. Chimamanda Adichie, I love her. I actually met her once at the Galle literature festival. I like Kazuo Ishiguro; I have a lot of his books. I read some of the Indian authors. In the last few years, I have been fascinated with the Tudor period in England.
There are several female writers, all English, who are history scholars who have studied that period. They have written historical novels. Two of them won Booker prizes. Being a political person, I enjoy reading about political machinations, Henry VIII’s thinking, how they broke up the Catholic Church and started the Anglican Church,really fascinating!
Then there was a very good book on Marie Antoinette, also by one of those English authors. I read two, three books at a time and keep switching. Now I am into some books by Ben Macintyre. He is a good writer, who has studied documents about the Soviet spy system. One was called Agent Sonya.Another writer I enjoy is Sebastian Faulks, he writes fiction based on the two World Wars. Once in a way I read a nice funny book. Just nice things. I also paint, I used to. When I was living in England for a few years after retirement, I started painting again. But 2015 [efforts to form national unity government] sabotaged all that.
You are also trained in Kandyan dance, aren’t you?
Oh, I danced a lot. On stage too. When I was in Paris [as a university student] I went for modern ballet classes, Greek dance, and all that. I used to write poetry, but not anymore. For that you must have your mind at ease. And then when I get dragged back into politics, even if I am not actively engaged in it, I become too stressed to engage in nice activities. (The Hindu)
Features
From stability to transformation: What Sri Lanka’s industrial policy experience teaches us
“The best way to predict the future is to create it.” — Peter Drucker
By Prof. Asoka S.Seneviratne
Introduction
Sri Lanka has never been without industrial policy. For decades, successive governments have attempted, in different forms, to promote manufacturing, protect domestic industries, attract foreign investment, develop exports, create employment and move the economy towards higher value-added production. Yet the country has struggled to transform these individual initiatives into a sustained process of industrial upgrading.
This raises a fundamental question: why has Sri Lanka found it so difficult to convert industrial policy into industrial transformation?
A recent International Monetary Fund working paper provides a particularly useful framework for examining this question. Rather than viewing industrial policy simply as a collection of subsidies, tariffs, tax concessions or government programmes, the IMF paper focuses on the institutional capacity required to make industrial policy work. Its central framework is the “4A” model: Ambition-Agency, Autonomy, Accountability and Adaptability.
This framework provides an opportunity to look at Sri Lanka’s industrial experience through a different lens.
The deeper issue is whether the institutions implementing those policies possessed the characteristics required to learn, coordinate, discipline, experiment, and adapt.
This question has become particularly important today.
Sri Lanka has spent the past several years dealing with an extraordinary economic crisis. Macroeconomic stabilisation, fiscal consolidation, debt restructuring, reserve accumulation and monetary discipline have been necessary foundations for recovery. But stability is not the same thing as transformation.
The next stage must therefore be different.
Sri Lanka now needs to move from stabilising the economy to transforming its productive capacity. This is why the 2027 Budget should not be regarded merely as another annual exercise in taxation and expenditure. It should become a Budget for Economic Transformation, with industrial policy at its centre.
The IMF’s 4A framework helps explain both Sri Lanka’s past difficulties and what institutional changes may be required for the future.
Sri Lanka’s Industrial Policy Has a Long History — But Not a Continuous Transformation
Sri Lanka’s industrial-policy experience can broadly be understood through several different phases.
Before 1977, the country followed a strongly interventionist development model. (i) Import substitution, (ii) quantitative restrictions, (iii) state enterprises, (iv) licensing, and (v) protection were used to encourage domestic production and reduce dependence on imports.
The objective was understandable: build domestic productive capacity. But protection alone does not necessarily create international competitiveness.
An industry can survive behind tariff walls without becoming productive enough to compete internationally. Domestic firms may acquire production capacity while remaining dependent on imported technology, protected markets and administrative support.
The economic liberalisation that began in 1977 represented a major change. Sri Lanka moved towards greater openness, private investment, export orientation and integration with international markets.
This created important successes.
The development of the apparel industry is perhaps the clearest example. Export-oriented manufacturing, foreign investment, the free-trade-zone model and integration into global production networks created employment and foreign-exchange earnings.
Yet another question emerged: why did this success not generate a much broader transformation of Sri Lanka’s industrial structure?
The country developed internationally competitive pockets of production, but industrial diversification remained limited. Manufacturing did not generate the scale of technological upgrading seen in some successful East Asian economies such as S. Korea & Japan.
The lesson is therefore not simply that protection failed and liberalisation succeeded. That would be too simplistic.
The more important lesson is that neither protection nor liberalisation, by themselves, constitute an industrial strategy.
Successful industrialisation requires institutions capable of (i) identifying opportunities, (ii) coordinating investment, (iii) encouraging technological upgrading, (iv) demanding performance and (v) changing policies when they do not work.
That brings Sri Lanka directly to the IMF’s 4A framework.
Ambition and Agency: Does Sri Lanka Know What It Wants to Become?
The first question for an industrial policy is not how much money the Government should spend. It is: what kind of economy does Sri Lanka want to become?
Ambition means having a clear development objective. Agency means having an institution capable of translating that ambition into coordinated action. Sri Lanka has often had ambitious policy statements.
There have been plans for export development, industrialization, investment promotion, technology development, regional industrialization and value-added production. More recently, the government has articulated objectives to raise manufacturing’s contribution to GDP, increase merchandise exports and strengthen industrial competitiveness.
The National Export Development Plan 2026–2030, for example, places export expansion, diversification and integration into global value chains at the centre of the country’s trade strategy, with a stated ambition of total exports of US$36 billion by 2030, including US$28 billion in merchandise exports.
The Ministry of Industry has separately set a target of increasing manufacturing’s contribution to GDP from 16.4% in 2024 to 20% by 2030 and merchandise exports from US$12.7 billion to US$28 billion.
These are significant ambitions.
But ambition becomes meaningful only when accompanied by agency.
The IMF’s argument is important here. Successful industrial policy requires a leading institution capable of accumulating sector-specific knowledge, learning from markets, coordinating policies and continuously experimenting with different approaches. This is precisely where Sri Lanka’s institutional fragmentation becomes important.
Industrial development involves finance, trade, taxation, energy, ports, customs, skills, land, technology, infrastructure, research and development and foreign investment. If each ministry and agency operates independently, an industrial strategy can become a collection of disconnected programmes.
Sri Lanka therefore needs more than another policy document.
It needs an institutional agency capable of implementing the policy.
The proposed Industry Transformation and Innovation Authority is potentially relevant to this institutional question. The Government has been working towards consolidating existing industrial and enterprise-development institutions into a more integrated authority.
But establishing an institution is only the beginning.
The real test will be whether it has the authority, expertise and institutional independence to coordinate policy across government and to learn from the private sector and international markets.
Autonomy: Industrial Policy Must Serve the Economy, Not Individual Interests
The second “A” is autonomy.
This is one of the most important lessons for Sri Lanka.
Industrial policy necessarily involves government intervention. But intervention can produce two very different outcomes.
In one case, government works with firms to solve genuine coordination failures, develop infrastructure, promote technology, and enter new markets.
In another, policies become instruments for protecting inefficient firms, distributing privileges or maintaining politically connected interests.
The difference is institutional.
Autonomy does not mean that policymakers should operate without democratic accountability. It means that an industrial-policy institution must have sufficient professional independence to make decisions based on economic evidence rather than short-term pressure from individual firms or interest groups.
Sri Lanka’s historical experience demonstrates why this matters.
Protection can sometimes be necessary during the early development of an industry. But protection without performance requirements can become permanent.
The crucial question should therefore be: What does an industry have to achieve in return for government support?
If a firm receives assistance, should it increase exports?
Should productivity rise?
Should local value addition increase?
Should technology be transferred?
Should workers acquire new skills?
Should the firm penetrate new markets?
Should the support expire after a defined period?
These are not merely technical questions. They determine whether industrial policy becomes a mechanism for productive transformation or permanent protection.
A future Sri Lankan industrial policy should therefore be conditional, transparent and measurable.
Government support should not be regarded as an entitlement.
It should be regarded as an investment by the nation in productive capacity.
Accountability: Industrial Policy Must Be Judged by Results
The third “A” — accountability — may be the most important lesson of all.
Sri Lanka has historically produced numerous plans, institutions and incentives. But the country has not always maintained a sufficiently rigorous mechanism for asking whether those interventions actually delivered the intended results.
An industrial policy should therefore establish measurable performance indicators from the beginning.
The question should not be:
How much did the Government allocate?
The question should be:
What economic transformation resulted from the allocation?
This changes the entire philosophy of policymaking.
For example, an industrial programme should be judged by whether it increases:
productivity;
exports;
investment;
technological capability;
domestic value addition;
skilled employment;
research and development;
foreign-exchange earnings; and
real household incomes.
This approach is directly connected to the broader argument I have made about Sri Lanka’s 2027 Budget.
The success of Budget 2027 should not be judged solely by revenue collection or expenditure control. Those are important instruments of fiscal management. But the ultimate test must be whether public policy increases the economy’s productive capacity. A country cannot tax its way into prosperity.
Nor can it borrow its way into prosperity. Nor can monetary stability by itself create a productive economy.
The sustainable answer must ultimately be higher productivity, greater investment, stronger exports and higher real incomes.
This is why industrial policy belongs at the heart of the transformation agenda.
Adaptability: Sri Lanka Must Learn from What Does Not Work
The fourth “A” is adaptability.
This may be the most difficult characteristic for a government bureaucracy.
Industrial development takes place in an uncertain world. Technologies change. Consumer preferences change. Global supply chains change. Trade agreements change. Energy prices change. Artificial intelligence is changing production itself.
A policy that was appropriate ten years ago may be completely inappropriate today.
Therefore, successful industrial policy cannot be a five-year document that remains unchanged regardless of circumstances.
It must be a learning system. If a programme fails, government should be able to modify it. If an industry does not become competitive after receiving support, assistance should be reconsidered. If a new technology creates an opportunity, policy should respond quickly.
If a global value chain becomes accessible to Sri Lankan firms, infrastructure and skills policy should adjust accordingly. This is where the IMF’s institutional approach becomes particularly relevant.
The IMF paper argues that successful industrial-policy institutions accumulate knowledge through continuous experimentation and feedback from markets. Sri Lanka needs precisely such a mechanism.
The private sector should not simply be treated as a recipient of government policy. It should become an important source of information about international markets, technology, production costs, skills shortages and emerging opportunities.
Government, in turn, must retain the capacity to distinguish between genuine information and requests for permanent protection.
That is the institutional challenge.
From Industrial Policy to Economic Transformation: The 2027 Budget Test
This brings Sri Lanka to the most important question.
What should industrial policy achieve in the next stage of Sri Lanka’s economic development?
The answer cannot simply be to increase the number of factories.
Sri Lanka needs a transformation in the quality and productivity of production.
This means moving from relatively low-value production towards higher-value manufacturing and services; from imported technology towards greater domestic technological capability; from fragmented small enterprises towards globally connected SMEs; and from dependence on a narrow range of exports towards diversified and sophisticated export production.
The Government’s own 2026 Budget has recognised the importance of productivity, innovation, private-sector investment, export diversification and global value-chain integration, while setting an objective of sustained growth above 7% within the next few years.
The challenge is now implementation. This is where Budget 2027 becomes critical. The Budget should connect macroeconomic stability with a coherent national transformation programme.
The first mission should be raising productivity.
That requires investment in technology, automation, artificial intelligence, energy efficiency, logistics, digitalisation, research and development and workforce skills.
The second mission should be mobilising investment.
Macroeconomic stability is essential, but stability alone does not automatically produce investment. Sri Lanka needs predictable regulation, faster approvals, better infrastructure, deeper capital markets, stronger public-private partnerships and a genuine single-window investment mechanism.
The third mission should be improving living standards.
Industrial transformation is ultimately about people.
If productivity increases but real wages do not improve, if exports increase but employment quality does not improve, or if growth is concentrated without broader income gains, transformation remains incomplete.
The objective must therefore be an economy capable of generating higher productivity, higher real wages and higher household incomes. But this transformation cannot be meaningful to ordinary households if the cost of living continues to rise faster than their incomes. Keeping the cost of living manageable must therefore be a fundamental objective of economic policy, so that higher productivity and incomes translate into genuine improvements in living standards.
The above assertion is fundamentally important for policymakers.
Sri Lanka’s New Industrial Policy Must Be Different from the Old One
Sri Lanka should therefore avoid two extremes.
The first is a return to indiscriminate protectionism.
The second is the assumption that markets alone will automatically generate the industrial transformation the country needs.
The experience of successful Asian economies suggests a more sophisticated approach.
The state must create the conditions for private investment and competition, while actively addressing coordination failures that individual firms cannot solve alone.
That means infrastructure. It means reliable and competitively priced energy. It means efficient ports and logistics. It means modern customs systems. It means technical and vocational education linked directly to industry. It means research and development. It means access to finance for productive investment. It means export-market intelligence. It means integration into global value chains.
And it means institutions capable of continuously evaluating whether these interventions are actually working.
Sri Lanka’s geographical position provides an important opportunity. The country can combine manufacturing with logistics, maritime services, tourism, digital services, agriculture and knowledge-intensive exports.
But geography is an opportunity, not a strategy. A strategy requires institutions. That is why the 4A model is so relevant.
Sri Lanka needs ambition to define where it wants to go; agency to coordinate the journey; autonomy to prevent industrial policy from becoming captured by narrow interests; accountability to measure whether public support produces results; and adaptability to change course when circumstances change.
Stability Is the Foundation — Transformation Is the Destination
Sri Lanka’s economic crisis has taught the country a painful but important lesson: macroeconomic instability can destroy decades of development. The stabilisation process was therefore unavoidable.
Fiscal discipline, monetary stability, debt restructuring, reserve accumulation and stronger institutions provide the foundation upon which the next stage of development must be built.
But foundations are not buildings. Stability is necessary. It is not sufficient.
The next challenge is economic transformation.
This is why Sri Lanka’s industrial-policy debate should no longer be confined to the traditional question of whether the Government should intervene more or intervene less.
The more important question is:
Can Sri Lanka build institutions capable of making intervention smarter, more disciplined, more accountable and more adaptable?
The IMF’s 4A framework offers a valuable way of asking that question.
Sri Lanka’s historical experience suggests that industrial policy can create capacity without competitiveness, protection without productivity, and institutions without sufficient coordination. The experience also shows that openness can generate remarkable export successes without necessarily producing broad-based industrial diversification.
The lesson is therefore not to choose between the state and the market. It is to build a state that can work intelligently with competitive markets. That is the real challenge for Budget 2027.
Sri Lanka should not use the 2027 Budget simply to consolidate the achievements of stabilisation. It should use those achievements as the platform for the next stage — raising productivity, mobilising investment, diversifying exports, developing technology, upgrading skills and increasing real household incomes.
The country’s current industrial and export strategies already contain important ambitions. The National Export Development Plan seeks substantial expansion and diversification of exports, while the Government’s industrial strategy aims to raise manufacturing’s contribution to GDP and merchandise exports by 2030.
The decisive issue, however, will not be the targets themselves.
It will be institutional capacity to deliver them.
Sri Lanka therefore needs to move from an era of policies to an era of policy learning; from protection to performance; from isolated projects to coordinated transformation; and from short-term programmes to a sustained national productivity strategy.
The IMF’s 4A model provides a useful institutional lens.
Sri Lanka’s own experience provides the evidence. And Budget 2027 provides the opportunity.
The ultimate objective should be nothing less than a transformation from an economy that has repeatedly struggled to recover from crises into an economy capable of sustaining high productivity, competitive exports, productive investment and rising real living standards. That is the point at which stability becomes meaningful.
Stability should not be the destination of Sri Lanka’s economic journey. It should be the platform from which transformation begins.
As Peter Drucker reminds us, “The best way to predict the future is to create it.” For Sri Lanka, the time has come to create that future through a new generation of disciplined, accountable and adaptive industrial policy.
(The writer served as the Special Advisor to the President of Namibia from 2006 to 2012 and was a Senior Consultant with the UNDP for 20 years. He was a Senior Economist with the Central Bank of Sri Lanka (1972-1993). He can be reached via asoka.seneviratne@gmail.com.)
Reference
:
IMF Working Paper
Institutions for Industrial Policy: The Foundation of Economic Development -Prepared by Reda Cherif, Fuad Hasanov, Gary Xie
March 2026
Features
The first woman in the foreign service or Ceylon Overseas Service it was then called
(Excerpted from Madame-Sir, the autobiography of Manel Abeysekera)
On my return home from Oxford, I felt I should look around for a job. The first offer I had was made by Mr. J.L.M. Fernando, the then Chairman of Air Ceylon, who urged me to apply for an Executive Post with the Airline. I was about to do so when my eye caught a notification in the Ceylon Daily News, reproducing a Gazette notice calling for applications for the Ceylon Overseas Service (COS). Reading down the lines, a particular requirement set me thinking. It was that a married woman must obtain special permission of the Public Service Commission to join the Service. This made me realize that women could apply for a Service which had hitherto been a male bastion because recruitment was through the Civil Service Minute and Examination in which, as I have said earlier, the word “Man” did not embrace “Woman”.
So I obtained my parents’ permission to apply. I believe that Mother gave hers not really expecting me to be selected [no mother likes a daughter to go out into the world] while Father gave his in the fervent hope that I would be selected as that would be the next best thing to following in his footsteps and being in his own Ceylon Civil Service which I could not, being a woman. I remembered the Indian Foreign Service joke about our Foreign Service and hoped I could prove them wrong! I also hoped to do what Dame Janet wanted me to do and do what my women Indian Foreign Service friends were doing.
What I learnt after I joined the COS was that Mr. S.W.R.D.Bandaranaike, when he became Prime Minister and Minister of Defence and External Affairs in 1956, wanted young people to join the COS for its own sake as he himself was extremely interested in foreign affairs and, as in his domestic policy, desired to steer a new course which he believed would be for the good of the country. He had already changed our foreign policy of following British norms and practice and established relations with Eastern Europe, China, Africa, Latin America and the other countries of the Non Aligned Movement.
I was first interviewed by a panel of three Permanent Secretaries of which the Chairman was the Secretary of the Ministry of Defence and External Affairs, Mr. Gunesena de Soyza, who was subsequently appointed High Commissioner to Britain and who had earlier accompanied Mrs. Bandaranaike to Oxford as recounted by me. The other two were Mr.Alvapillai and Mr. Shelton Fernando. They welcomed me as the first woman to be interviewed for the service.
I recall Mr. Alvapillai being rather inclined to think that, since my parents had taken me abroad as shown in my application, I had acquired a taste for travel and wanted to see the rest of the world through the COS. When he enquired if that was so, I rather cheekily said that if I did want to merely travel abroad more, [there were no Exchange Control restrictions on obtaining foreign exchange for travel then], I could do so at father’s cost and not run the risks and hazards of the COS to do so. Again, when I was asked whether, should they take me in and train me at government cost, what would be the case if I decided to get married and leave the Service, it really put my back up and was perhaps the first time I felt a feminist! My reply was that any man they recruited could also leave at will and that there was no stipulation in the conditions of the Service that a woman could not marry and remain in the Service and that the choice was left to me and whoever I married!
I feel that my candour perhaps got me in, thanks to the fairness of the panel which did not resent my frank responses. [Initially, the India Foreign Service had the requirement that female officers had to retire on marriage and my IFS friend from Somerville Mira Malik, who was quite brilliant, had to do so though not so my other friend Soonu Kapadia who may have married later after the rule was rescinded. I like to think that I saved my female colleagues from the fate that befell Mira.
Mr Shelton Fernando, who had been up at Oxford, asked me whether I had not been tempted to caricature some of my lecturers and I am not surprised he did so as many of them were ideal subjects but, as I told him, I did not have the talent for it! I was also asked some foreign affairs questions which were not difficult to answer. The Chairman, Mr. Soyza had subsequently told Father that he had not seen such fine certificates as my Somerville Principal and Tutors had given me, for a long time-no doubt that they would have gone a long way in getting me into the COS and I am deeply grateful to them.
Next came the Public Service Commission interview. But before it, Mr. Eardley Gunewardena, Secretary to the Commission had called (my brother) Lakshman as a friend, to enquire whether I was really serious about wanting to join the COS, because I was the only woman who had qualified for interview and it would be a waste of the Commission’s time if I was not really keen. Lakshman informed him that I was quite serious about it as I had got my parents’ approval to apply for the Service.
This interview was more formal and less formidable than the previous one by the three Permanent Secretaries and I was fortunate to pass it and qualify for appointment to the COS as the first woman to do so. The medical examination that followed included a VD test which Mother strongly felt was degrading for me and I recall Father explaining to her that it was a rule that had to be complied
with and was no reflection on me! In order to pacify her, he said he would accompany me to the clinic so that everyone would see that I was not going there in secret!
Although I was rather quiet with people I did not know and my male colleagues did not quite know what to make of this puduma satha, they soon found out that I could take quite a lot of teasing and also give as good as I got! So we got on famously especially my batch of seven “Samurai” and me, who had busted the male bastion and become the first woman in the COS.
Briefings
The first “pep” talk we got was from the Permanent Secretary of the Ministry, Mr. Gunasena de Soyza. Something he said on that occasion has always remained with me. He informed us that we had been selected on certain criteria and for some special aptitude and individuality which the selectors had seen in us which they felt would be good for the Service. So he cautioned us that the Service did not expect us to become some kind of stereotype and that we should be ourselves and not think that even a cocktail party meant having a drink in one hand and making polite conversation alone they were intended to be avenues to make useful contacts, to engage in business where possible in a friendly, sociable way.
One of my batch mates’ name was Maurice Rabot and Mr. Soyza’s parting shot was: “I do not want the Rabots of the Service to become robots!” Anyway, I do not think that any of my batch mates could have ever become stereotypical diplomats as we were far too individualtistic for that! However, (my brother) Lakshman fondly called me a “diplomutt” and I do not think he would have called me that if I really were one; or rather I would like to think so!
Our next important briefing was by the Prime Minister and Minister of Defence and External Affairs himself, Mr. SWRD Bandaranaike. Before going to the Ministry that morning Father who had worked with the Premier as Commissioner of Local Government and later as Permanent Secretary when he was the Minister of Health and Local Government in the first Government at Independence under Premier Mr. D.S Senanayake as I have recounted, knowing him well, predicted that he would be in a bad frame of mind as he had placed senior members of the Federal Party, including Dr. E.M.V Naganathan, its Secretary, under house arrest and that it may impact on our meeting with him.
As we were about to enter the Premier’s Conference Room, my colleagues who had hitherto not politely stood aside for me as a woman now did so as they expected that then I would have to sit next to the Premier! But, when I entered the room and saw Mr. Soyza seated next to him I boldly walked up and sat next to Mr. Soyza causing one of my colleagues to have to sit next to the Premier!
How right Father was! The Premier made short shrift of us. Luckily he directed his question to my colleague seated on his left (where all of them had failed to manoeuver me!); he was asked to define his foreign policy and, before the poor man could stutter anything out, the Premier went on to the next and to the next! Finally, he sternly bade us read the recently published book on it and come back in a week’s time and we were only too glad to make our escape!
When the appointed day arrived, Father became the oracle again! This time he predicted that the Premier would be in a relaxed, expansive mood as the Federal Party members had been released and how right he was! As we walked in and sat down at the conference table, the Premier turned to Mr. Soyza and remarked: “Gunasena, I see you have taken a woman into the Service and that you are going to train them in foreign languages: I do hope the Tower of Babel will not become one of babble!” Everyone laughed including myself, suppressing the thought, “so much for gender equality and equity”, since my colleagues chattered as much as I did! His next remark was even more pointed: he asked Mr. Soyza “Who is the famous woman in international affairs with enormous fat legs?”
Of course it was Ms. Golda Meir, Foreign Minister of Israel at the time and later Prime Minister. Wasn’t I glad that my saree covered my own legs which I considered shapely “gams” in Hollywood jargon! I always thought that God had a sense of humour seeing that He had given me small hands and feet with what was in between being quite out of proportion! After Mother’s death as Father was heartbroken, he and I went on a trip to the Holy Land and, when we were in Israel [for which we had to have a separate passport so as not to have any evidence of it in the Arab countries], Father was invited to an Evening Reception by Foreign Minister Golda Meir to which I accompanied him where there were several dignitaries from Africa.
Each invitee was asked to stand to be introduced to the others and Father was introduced as the “Little Boy Scout from Ceylon”! But what fascinated me were her legs which were just as our Premier had described them! I also recall meeting Mr. Bandaranaike at a wedding reception and his speaking to me in French which he knew I would have learn to speak at Oxford for my Modern History course and my just getting away with it by replying that I was good at understanding French though not at speaking it. To my relief, he replied “Moi aussi”, meaning, ” Me too”!
Training
After these jokes, to my great relief, the Premier went on to discuss foreign affairs and his policy of non-alignment for Ceylon. These were the days of Sputniks and astronauts and the Premier had decided to give our batch [probably the first intake after he became Premier and Minister of Defence and External Affairs a really good training. In Parliament he stated that we should rise like Sputniks]. Perhaps he may have had ideas on how we should be placed as, except myself, all the others were over the normal maximum age for the joint Civil and Overseas Examination and maybe he thought we should be placed at a step higher than the first step of the Service depending on how we fared in our training. Be that as it may, we were assigned foreign languages and were to be sent to Oxford, Cambridge and London Universities to study them as well as diplomatic history, international relations, international law and other related subjects.
In my case, the assigning of a language and getting placement in a British University proved amusing. We were asked to indicate our first, second and third preferences from French, Italian, German, Russian and Chinese and I gave my choice as Chinese, Russian and German with an eye on being assigned to those countries, little knowing that logic did not always prevail in Foreign Services! I was first assigned German and then, for reasons unknown to me, I was assigned Italian. Now when the languages had first been assigned, the Foreign Ministry official entrusted with obtaining placements had got them and, when the languages were re-assigned, naturally re-assigned the names against the placements that had been obtained.
I was assigned Balliol College, Oxford, which the poor man was unaware was a men’s College [Oxford and Cambridge Colleges became co-ed comparatively recently] My batch mate Mahen Vaithianathan [son of Sir Kanthiah Vaithianathan, the first Permanent Secretary of the Ministry of Defence and External Affairs] who had been a year senior to me at Balliol and who had a puckish sense of humour, had taken the letter addressed to me as I happened to be on leave when they were handed out and, with great amusement, handed it to me the next day. It said, in typical “officialese” that I “should proceed to Balliol College, Oxford to study Italian”.
Equally amused as he, I took the letter to my senior colleague in charge of Overseas assignments, Arthur Basnayake of the first batch of officers and, with a very straight face, told him that I could not possibly “proceed to Balliol” although I would love to do so as Balliol had some showers as opposed to the rather unhygienic, traditional “English bathtubs”. Arthur was quite puzzled and asked me why not, especially as I had been at Oxford already.
My reply was that that was precisely why not and laughingly explained that Balliol would not have me as I was a woman! He laughed heartily and in a confidential whisper told me not to tell the press and of course I did not! The Ministry then quickly made amends and looked for a place and found one at New Hall [since -2008 re-named Murray Edwards College after its distinguished Founder President Dame Rosemary Murray – under whom I was privileged to be an alumnae – and the Refounders who made the endowment for its expansion]. I was delighted at not only having the joy of being at Cambridge but also because it was renowned for its School of Modern Languages. So I “proceeded to New Hall” to enter the Michaelmas [autumn] Term for one academic year.
Before we went abroad to our respective Colleges at the Universities of London, Oxford and Cambridge, we were sent to some of the important Government Departments relevant to our work such as Immigration and Emigration, Commerce, Tourism et al to orient us to their work and their relevance to our own work. Unfortunately, we were not able to go out into the provinces to be oriented to Kachcheri work as civil strife had broken out over the Tamil language issue. In the Ministry, our superb Consellor of training was the witty Glannie Peries who, I believe, was a Civil Servant who “manned” the Ministry before specific recruitment was made to it but preferred to continue in the foreign service. He imparted to us the finer points of foreign affairs including conduct at cocktail parties to which he had us invited for the purpose.
Features
They Came. They Ruined. They Left
by Nilantha Ilangamuwa
They came. They ruined. They handed us back to the same old enemies. This is how a war supposedly fought for security can end, with a country left carrying the consequences long after the soldiers who invaded it have gone.
Twenty-five years after September 11, 2001, the American-led wars in Afghanistan and Iraq offer a record of military intervention that is impossible to separate from the destruction of institutions, displacement, sectarian violence and the weakening of societies that were supposedly being protected. Brown University’s Costs of War project estimates that the post-9/11 wars produced between 4.5 million and 4.7 million direct and indirect deaths and that more than 38 million people were displaced. Iraq remains the clearest example of how quickly the promise of security can become a prolonged political and human disaster.
The 2003 invasion was justified through the claim that Saddam Hussein possessed weapons of mass destruction and represented an urgent danger. The weapons were not found. The Iraq Survey Group did not discover an active Iraqi WMD stockpile, while later official investigations exposed serious failures in the intelligence used to support the pre-war case. Saddam’s dictatorship and previous use of chemical weapons were real. What collapsed was the proposition that Iraq possessed the active WMD capability used to justify invasion. Yet the war went ahead, and once it did, the United States faced the far more difficult question of what would replace the state it had destroyed.
The occupation did not simply remove Saddam Hussein and preserve Iraq’s governmental machinery. Coalition Provisional Authority Order No. 1 imposed sweeping de-Ba’athification, while Order No. 2 dissolved the Iraqi military and other state institutions. These were occupation decisions, not inevitable consequences of removing Saddam. The dissolution of the army was especially consequential. Hundreds of thousands of trained personnel suddenly lost employment, authority and their place in the new state. Not all had been committed Ba’athists. Many had joined the army as a profession. Removing the institution therefore did not remove military knowledge or political grievances. It scattered them into a country already filled with weapons, uncertainty and anger.
Former soldiers, Ba’athists, nationalists, Islamists, criminals and foreign jihadists became part of an expanding insurgency. Sunni resistance and al-Qaeda in Iraq grew amid the disorder, while sectarian militias expanded. The bombing of the al-Askari shrine in Samarra in 2006 helped unleash an extraordinary escalation of Sunni-Shia violence, turning Baghdad into a city of checkpoints, kidnappings, assassinations and death squads. The occupation had dismantled one of the state’s principal instruments of order without possessing a credible substitute.
The United States changed strategy. The 2007 surge, the Sunni Awakening and changes in military tactics reduced violence, but they did not create a durable political settlement. Sunni tribes that had fought al-Qaeda alongside American forces later felt marginalized by the government in Baghdad, creating grievances that were among the conditions exploited by the organization that evolved into Islamic State. It would be simplistic to say that America directly created ISIS. Its rise also depended on the Syrian civil war, the collapse of Syrian state authority, sectarian politics and decisions by Iraqi and Syrian actors. But the chain linking the 2003 invasion, the destruction of Iraqi institutions, the insurgency, al-Qaeda in Iraq and the later rise of Islamic State is part of the documented history of the organization. The irony is brutal. America invaded partly in the name of preventing terrorism, fought an insurgency that produced al-Qaeda in Iraq, later returned to fight the organization that emerged from that movement, and ultimately fought Islamic State in a country whose political order its own invasion had helped destroy.
The human cost extended beyond battlefields. On November 19, 2005, after a US Marine was killed by a roadside bomb at Haditha, Marines killed 24 Iraqi civilians, including women and children. The initial account did not accurately describe what had happened, and subsequent investigations produced criminal proceedings with varying outcomes. Abu Ghraib exposed an even wider crisis of detention, abuse and accountability. Photographs of prisoners being humiliated became symbols of an occupation that claimed to be constructing a democratic order.
Reconstruction brought another contradiction. The Coalition Provisional Authority controlled approximately $23 billion in Iraqi revenues and assets between May 2003 and June 2004, while the United States separately appropriated billions for reconstruction and security. The evidence does not support the crude claim that America simply stole Iraq’s oil, but the occupying authority exercised extraordinary control over a sovereign country’s finances while its institutions were being rebuilt. A huge contracting system followed, involving construction, logistics, security and maintenance, with oversight struggling to keep pace with enormous spending. The result was an economy dependent on oil and foreign-supported reconstruction. The World Bank estimates that in 2025 oil represented about 53 per cent of real GDP, 88 per cent of government revenue and 91 per cent of merchandise exports.
The consequences reached far beyond government accounts. The World Bank puts Iraqi unemployment at about 15.5 per cent in 2025 and identifies youth employment as a major structural challenge, while women remain dramatically underrepresented in the labour force. UNICEF says close to 3.2 million Iraqi school-age children are out of school and links the educational crisis to decades of conflict and under-investment. More than one million Iraqis remained internally displaced years after the territorial defeat of Islamic State.
The fact, however, is that Saddam’s Iraq had been a hostile barrier to Iranian regional influence. Its destruction removed that barrier, allowing political parties, religious networks and armed groups connected to Iran to become deeply embedded in the post-Saddam system. Some militias that fought American forces eventually became part of Iraq’s political and security architecture. Washington therefore removed an enemy of Iran and spent years confronting forces that benefited from the new order.
Here one cannot forget the irony in Afghanistan, the chokepoint of Bush-era war on terror policy, although its history is not identical to Iraq’s. America entered Afghanistan in 2001 to destroy al-Qaeda and remove the Taliban, remained for 20 years, built and armed Afghan security forces and spent enormous sums attempting to construct a new political order, only to withdraw in 2021 as the Taliban rapidly returned to power. In 2026, more than 2.6 million Afghan girls remain excluded from secondary education, while humanitarian agencies continue to report severe poverty and child malnutrition. Military force can achieve battlefield objectives. American forces defeated Saddam’s army within weeks, helped destroy Islamic State’s territorial caliphate and inflicted major losses on armed groups. The deeper failure was the inability to translate battlefield victories into political orders capable of surviving without foreign military power.
Iraq today is not the Iraq of 2006. Its government functions, cities have been rebuilt, its security forces have fought ISIS, and millions of Iraqis have rebuilt their lives. That resilience belongs to Iraqis themselves. But the dead cannot return, the displaced cannot recover the years they lost, children cannot reclaim the childhoods they spent amid violence, and institutions dismantled in 2003 cannot simply be restored to what they were before the invasion. The weapons that made the invasion supposedly urgent were not found. The urgency became war, the war became occupation, the occupation helped produce insurgency, and the insurgency helped produce another generation of extremists. The American military left, but the consequences remained. And after more than two decades, after the deaths of thousands and the destruction of a political order Washington claimed it could replace, American boots came off Iraqi soil last week, not as the triumphant conclusion of a successful mission, but as the final, deeply disgraceful image of a war whose consequences Iraqis will carry long after the last American soldier has gone.
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