Midweek Review

The Order of the Rising Sun conferred on former Governor of Central Bank, Sri Lanka

Published

4 years ago

2022/09/7

Governor, CBSL, Dr. Nandalal Weerasinghe, responding to lawmakers. (From left:) Speaker Mahinda Yapa Abeywardena, Dr. Weerasinghe, SLFP MP Angajan Ramanathan and Deputy Secretary General of Parliament, Kushani Rohanadeera, who introduced the Governor, while acknowledging the parliamentary accountability for finance (pic courtsy Parliament)

For the first time in parliamentary history, the Central Bank of Sri Lanka has issued a dire warning to Parliament and political parties therein over the responsibility on their part to ensure financial stability and discipline. Their failure to do so would trigger public protests again, they were told. There hadn’t been such a public warning. The warning was issued by no less a person than Dr. Nandalal Weerasinghe, Governor of the Central Bank, when he dealt with ‘Sri Lanka’s current economic situation and way forward’ on Aug 31.

By Shamindra Ferdinando

The Government of Japan, on August 22, conferred ‘The Order of the Rising Sun,’ Gold Rays with Neck Ribbon’ on Deshamanya Prof. Weligamage Don Lakshman, former Governor of the Central Bank (Dec 2019-Sept – 2021). Prof. W.D. Lakshman received the Japanese honour at a ceremony held at the residence of Japanese Ambassador Mizukoshi Hideaki. Kalyani Siriseeli Lakshman, the spouse of the emeritus professor, was conferred ‘The Order of the Rising Sun, Gold Rays with Rosette.’

The Japanese Embassy declared they were honoured for their distinguished contribution in promoting mutual understanding and friendship between Japan and Sri Lanka, through education.

‘The Order of the Rising Sun’ is awarded by the Emperor of Japan to foreign nationals who have made a distinguished contribution to enhancing friendly relations with Japan. The Japanese Embassy statement, dated August 22, also made reference to his tenure as the Governor of the Central Bank.

Before The Island dealt with Prof. Lakshman’s CBSL leadership, it would be pertinent to mention that Sri Lanka’s diplomatic relations with Japan suffered irreparable damage during this tenure when the former unilaterally cancelled the Tokyo-funded Light Rail Transit (LRT) project, after much groundwork had been completed. Dr. P.B. Jayasundera, the then Secretary to President Gotabaya Rajapaksa, in September 2020, just weeks after the UPFA scored a landslide victory at the last general election, issued instructions to terminate the Japan International Cooperation Agency-funded LRT on the grounds that it was ‘very costly and not the appropriate cost-effective transport solution for the urban Colombo transportation infrastructure.’

Recently, the former Chairman of the Committee on Public Enterprises (COPE) Prof. Charitha Herath, MP, asserted, in Parliament, that the cancellation of the LRT project still remained a mystery. The SLPP rebel alleged that even the person (Dr. PBJ) who issued instructions, in that regard, is silent over the circumstances leading to the cancellation of the project. Did President Gotabaya Rajapaksa, the Cabinet-of-Ministers, the Finance Ministry, or Dr. PBJ, who functioned as the President’s chief advisor on economic affairs, consult Prof. Lakshman and then Attorney General Dappula de Livera, PC, before rushing to that decision?

The Governor of the Central Bank heads the five-member Monetary Board. At the time Dr. PBJ issued instructions, as regards the termination of the project, the Monetary Board consisted of Governor Prof. W.D. Lakshman, S.R. Attygalle (both ex-officio), Sanjiva Jayawardena, PC, Dr. Ranee Jayamaha and Samantha Kumarasinghe.

During the COPE proceedings, in May this year, chaired by Prof. Herath, the parliamentary watchdog committee established failure as well as the responsibility on the part of the Monetary Board, Prime Minister Mahinda Rajapaksa (he held the finance portfolio at that time), the Cabinet-of-Ministers, and Dr. PBJ, for the current crisis. The incumbent Governor, CBSL didn’t mince his words when he, in response to questions posed by Prof. Herath and opposition SJB lawmakers, Patali Champika Ranawaka and Dr. Harsha de Silva, named those responsible. Soft spoken Dr. Weerasinghe didn’t hesitate at all when he identified Dr. PBJ as the one who blocked an early agreement between the government and the International Monetary Fund (IMF).

Of course reform medicines, that the Fund prescribes, are very bitter to swallow for those seeking its assistance and it is not short of critics around the world. And many of its patients, especially in Latin America and Africa, are yet in dire straits after swallowing its medicines for years, if not decades. Many of those countries have got some glimmer of hope only after countries like China came forth with generous aid projects, especially in the form of massive infrastructure developments, like railways, housing, etc., often criticized by the West.

Playing politics with a bankrupt economy

Recently some members of Parliament demanded an inquiry into the failure on the part of Dr. Weerasinghe to inform Parliament of the status of the economy. They found fault with him for declaring Sri Lanka’s inability to service foreign debt before bringing it to the notice of the House.

A section of the media reported that Dr. Weerasinghe is in a soup for not duly informing Parliament about the ground situation. Perhaps, the lawmakers had conveniently forgotten that the then President Gotabaya Rajapaksa had requested Dr. Weerasinghe to take over the leadership of the CBSL after the country became virtually insolvent, even unable to pay for basics from abroad. At the time Dr. Weerasinghe retired, in January 2021, he held the post of Senior Deputy Governor and received the top post on April 08, about a month before a humiliated Mahinda Rajapaksa quit the premiership. Just 72 hours later, the UNP leader succeeded Rajapaksa. Less than two weeks later, Wickremesinghe secured the finance portfolio, too.

In fact, by the time Prof. Lakshman quit, in September 2021, to pave the way for Ajith Nivard Cabraal, who previously served as the Governor CBSL from 2006 to 2015, to return to the same top post, the economy was in tatters. Cabraal’s much publicized six-month roadmap didn’t change a thing. The ruling SLPP continued to engage in silly propaganda as the situation deteriorated, rapidly; by the time President Rajapaksa’s government approached Dr. Weerasinghe in Australia, the crisis was beyond control.

The retired political appointee Prof. Lakshman cannot absolve himself of causing unprecedented destruction and current turmoil though he simply succumbed to political pressure. What Prof. Lakshman actually did was the overseeing of the destruction of the economy in his capacity as the Governor and head of the Monetary Board.

Of course matters were exacerbated by some unforeseen events, beginning with the unprecedented terror attacks by Islamic terrorists here on Easter Sunday 2019, supposedly in retaliation for terror attacks on Muslims, in places like Christchurch, New Zealand, that delivered a body blow to the vital tourism industry here. Then before we could recover from that, there came the pandemic fear from the beginning of the following year with resultant lockdowns that also crippled the entire economy. To the credit of our rulers, we did weather the pandemic storm better than most countries, including India, where unknown numbers perished. We were also hit, like every other country, by the war in Ukraine, which could have been easily defused, like the 1962 Cuban missile crisis involving the then two super powers as now. But in our opinion what reduced us to being international beggars was the almost successful shutting down of our last lucrative foreign exchange earner, the remittances of our expatriate workers by illegal underground money transfer schemes, known as Hawala and Undiyal.

It was also the fault of the authorities, going back to possibly the 1990s, for allowing private foreign exchange traders to operate with hardly any controls that led to the bleeding of vital foreign currencies from the country. It has been a known fact that proceeds from the lucrative drug trade had been easily repatriated abroad by drug dealers, thanks to the free availability of foreign currency with those dealers, where no questions are asked. We wonder whether such anti-national decisions were taken at the behest of economic hitmen at the IMF and the World Bank.

Combination of these situations led to the country being reduced to an international beggar.

Hell-bent on appeasing his political masters, Prof. Lakshman, well past his prime, merely followed instructions. Those who remained as Monetary Board members, under Prof. Lakshman’s leadership, cannot absolve themselves of the responsibility for the current crisis. Had Jayawardena, a highly successful lawyer, and Jayamaha, a retired top Central Banker, and even headed private banks, were so concerned and opposed the conduct of Prof. Lakshman and Treasury Secretary Attygalle, they should have quit the outfit. Instead, they remained. And they continued to do so. Their declarations at the COPE proceedings of their failed bids to influence Prof. Lakshman cannot justify their failure.

Of course, the Japanese Embassy, in Colombo, shouldn’t be faulted for recommending the Order of the Rising Sun for Prof. Lakshman in the evening of his life for services rendered during better days. However, the Japanese Embassy caused quite a stir when Senior Professor Sampath Amaratunga, Chairman of the University Grants Commission (UGC) was conferred ‘The Order of the Rising Sun’ twice.

The academic received the award on 14 October 2021 from the then Japanese Ambassador in Colombo, Akira Sugiyama, at his official residence. For the second time, the UGC Chief received the same at Dharmavijayaloka Vihara in Rukmale in Pannipitiya at an event organized on January 22, 2022. The incumbent Japanese Ambassador Mizukoshi Hideaki and the then President Gotabaya Rajapaksa were present on the occasion.

Ali Sabry, PC, had the guts to defend Dr. Weerasinghe in Parliament. In fact, both Dr. Weerasinghe as well as Sabry, in his capacity as the Finance Minister squarely blamed those who had advised President Gotabaya Rajapaksa for the economic meltdown. Having held talks in Washington with the IMF and the World Bank in late May, Sabry, in an exclusive interview with Swarnavahini in early June disclosed how the advisors (Dr.PBJ, Governors of the CBSL, Treasury Secretary et al) deceived the President and the Cabinet-of-Ministers until it was too late.

No one challenged Sabry over his shocking declarations. Actually, Sabry basically repeated what Dr. Weerasinghe told the COPE.

Formidable challenge

Dr. Weerasinghe, obviously has earned the wrath of some lawmakers/political parties for taking an uncompromising stand against irresponsible governance. Addressing the Mps, on the invitation of Speaker Mahinda Yapa Abeywardena, in Parliament, the day after President Wickremesinghe, in his capacity as the Finance Minister presented an interim budget, Dr. Weerasinghe warned that the whole exercise, involving the IMF, could collapse if political parties didn’t change their strategies. Dr. Weerasinghe demanded a genuine acceptance of the agreement or warned political parties to prepare to face the consequences. Had the Parliament met its two primary obligations, namely financial responsibility and enactment of laws, the Speaker wouldn’t have found any justifiable reason to invite the Governor who indicated he would not stand any nonsense under any circumstances.

Whatever some unscrupulous politicians say, the vast majority of the public appreciated senior officials taking such a stand. It would be pertinent to mention the circumstances Dr. Weerasinghe received a six-year term on June 30 as the Governor, CBSL. Dr. Indrajith Coomaraswamy, who succeeded Arjuna Mahendran in June 2016, in the wake of the second far bigger Treasury bond scam, was unceremoniously asked to leave after Gotabaya Rajapaksa’s triumph at the Nov 2019 presidential election. Those who managed the President’s diary almost succeeded in depriving Dr. Coomaraswamy an opportunity to pay a courtesy call on the President before his retirement. Dr. Coomaraswamy’s six-year term was shared by Prof. Lakshman, Cabraal and Dr. Weerasinghe. Now that Dr. Weerasinghe has received a fresh six-year term, the government is not in a position to remove him, unless he left voluntarily.

At last a Governor of the CBSL has dared to take a principled stand vis-a-vis political interference. An utterly corrupt and reckless and irresponsible lot had been told in no uncertain terms that a bankrupt country couldn’t continue the way, those who represented the legislature wanted to exploit the electorate at the expense of the national economy.

The culpability of Cabraal, who represented Finance Minister Mahinda Rajapaksa cannot be disregarded. As the State Finance Minister for Money and Capital Markets and State Enterprise Reform (Aug 2020 to Sept 2021) Cabraal played a significant role in the overall financial management. Dr. Harsha de Silva has repeatedly raised Cabraal’s culpability as regards the current financial turmoil.

Reappraisal of perks and privileges

As the country struggles to come to terms with the growing difficulties, the government in consultation with all political parties represented in Parliament and trade unions representing key sectors should review the national economy. The need to reexamine and take tangible corrective measures cannot be delayed any further. Perks, privileges granted to all sectors, should be reviewed. If they are genuine, the issuance of much abused duty free vehicle permits can be examined as part of the overall measures to save foreign exchange. Thanks to anti-corruption campaigner, controversial Attorney-at-Law Nagananda Kodituwakku, the country got to know how our lawmakers brazenly abused the duty free permits. They had an absolutely wonderful scheme (wonderful to them and their associates) which allowed them to sell the ownership of the duty free vehicles imported by them to those not entitled to that facility the same day the vehicles were registered in their names.

Nagananda Kodituwakku has not been successful in his attempts to move Court against those lawmakers engaged in a lucrative trade/massive scam with the blessings of Parliament whoever won the general election. Only a few declined the offer to obtain a duty free permit for the sole purpose of financially benefiting at the expense of the national economy.

At the onset of the financial crisis in 2020, the Finance Ministry submitted a Cabinet paper to import duty free vehicles for all MPs. The move was later shelved amidst growing public resentment. Over the years, successive governments mercilessly exploited the country until the national economy deteriorated to such an extent, violent public protests erupted on March 31.

Incumbent CBSL Governor warned political parties represented in Parliament that public protests could erupt again if they repeated their habitual political strategies meant to win elections at any cost.

Dr. Weerasinghe quite cleverly used his speech to highlight how all political parties shamelessly undermined the national economy by promising relief in spite of the government whoever was in power lacking the financial strength to do so. The lawmakers were warned against undermining the economy by electioneering based on promises. There had never been such a fiery speech delivered by an outsider to members of Parliament since the shifting of Parliament, from Galle Face to Sri Jayewardenepura, 40 years ago. Members of Parliament, past and present would have been humiliated and ashamed of the way they managed the national economy, especially since 1977.

The Parliament released the link that gave access to Dr. Weerasinghe’s full speech. President Ranil Wickremesinghe, Prime Minister Dinesh Gunawardena, the Cabinet-of-Ministers, leaders of political parties represented in Parliament, the media and the civil society should pay attention to the Governor’s talk. The Executive, the Legislature and the Judiciary should heed the concerns raised by the Governor. There had never been such a straightforward criticism of an utterly corrupt system that thrived at the expense of the public.

Dr. Weerasinghe response to reckless, corrupt and irresponsible system can be examined against the backdrop of advice given by Dr. Coomaraswamy several years ago. In Nov 2018, Coomaraswamy advised the electorate as regards parliamentary elections. Dr. Coomaraswamy made the appeal before the Presidential Commission of Inquiry (PCol) on irregularities at SriLankan Airlines, SriLankan Catering and Mihin Lanka.

Dr. Coomaraswamy told the PCol almost prophetically that the country was facing a non-virtuous cycle of debt and it was a very fragile situation which could even lead to a debt crisis. “Of course my colleagues in the debt department have plans and capability to manage it. But it’s the duty of every citizen to act responsibly as regards the government policy”, he told the PCol. Dr. Coomaraswamy emphasized that people should elect MPs who were prudent enough to handle fiscal and monetary matters of the country. “I am not referring to any government, but it’s been the case ever since Independence”.

Obviously, the electorate didn’t heed Dr. Coomaraswamy’s call. Those who won the next general election in Aug 2020 simply allowed things to slip out of control. They couldn’t have done so without the support of those who managed the economy. Two of Dr. Coomaraswamy’s successors, Prof. Lakshman and Cabraal are under fire for their role in the current crisis. The Court has been moved against Cabraal.

Dr. Coomaraswamy is on record as having said that the failure on the part of successive governments to manage expenditure since the country gained Independence has caused the current economic instability.

Months later, in response to The Island query, Dr. Coomaraswamy declared Sri Lanka had been plagued by a toxic combination of populist politics and an entrenched entitlement culture among the people.

“Time and again, the electoral calendar has undermined fiscal discipline,” Dr. Coomaraswamy asserted.

All News Advertisement

Up Next

Proposed all-party govt: Prez wins support from unexpected quarters

Don't Miss

Weerasekera’s report on SLT pits Executive against Legislature

Click to comment

Midweek Review

NPP drowning in sea of scams

Published

6 days ago

2026/04/29

Sahan Weerasooriya

Outgoing Treasury Chief Mahinda Siriwardena congratulates his successor Harshana Suriyapperuma in late June 2025 at the Finance Ministry

The Opposition is pressing for a one-day debate on USD 2.5 mn Treasury theft, which is more like a daylight robbery that had been kept under wraps by Treasury mandarins till ‘Free Lawyers’ made it public. However, the government is strongly opposed to the Opposition proposal. The Opposition is seeking consensus among

different parties to intensify the campaign against the government, struggling to cope up with a spate of controversies. Against the backdrop of the devastating debate on the coal scam, the NPP seems reluctant to face another over the theft of Treasury funds.

By Shamindra Ferdinando

USD 2.5 mn brazen heist at the Treasury several months ago and the bigwigs there obviously dragging their feet over the matter till it was brought to light recently, thanks to the Free Lawyers movement, which has dampened the NPP’s enthusiasm for May Day. The Treasury fiasco humiliated the cocky NPP leadership against the backdrop of damning report issued by the National Audit Office (NAO) that found fault with the government for awarding the coal tender for 2025/2026 period to Trident Champhar Limited of India in violation of tender procedures. The NAO emphasised that the Indian company shouldn’t have even been considered for the tender.

Even after the exposure of the scandalous handling of the coal tender, the NPP, in spite of some rumblings within the party, remained confident of overcoming the growing accusations regarding governance issues. But, the sudden revelation of the loss suffered by the Treasury, and pathetic efforts made by the NPP to suppress the truth, has caused irreparable harm to the ruling party. The arrogant NPP will have to use May Day to defend the government. Instead of preaching to the masses ad nauseum the corruption allegations against previous administrations, the NPP would have to explain such massive failures/corruption, particularly the loss of USD 2.5 mn.

There hadn’t been a previous instance of such an incident at the Treasury. The NPP will have to answer questions posed by ‘Free Lawyers,’ a civil society group that first raised the Treasury issue. On behalf of ‘Free Lawyers,’ its President Maithri Gunaratne, PC, former Governor of several provinces Rajith Keerthi Tennakoon, and Attorney-at-Law Shiral Lakthikala, targeted the government over the unprecedented Treasury heist. The Opposition, too, censured the NPP, with SJB leader Sajith Premadasa, MP, Chairman of Public Finance Committee (CoPF) Dr. Harsha de Silva, MP, and United Republican Front (URF) taking the lead.

The NPP’s excuses, based on claimed raids carried out by hacker/hackers targeting the Treasury, are untenable. The NPP’s position cannot be defended or supported against growing criticism. The coal scam and Treasury fiasco dominated social media, with the Opposition, as well as ordinary citizens, having a field day at the expense of the NPP, a political party that accused its opponents of waste, corruption, irregularities and mismanagement. Its successful propaganda campaigns, at the presidential and parliamentary polls, in September and November, 2024, respectively, were centered on fighting corruption.

Their anti-corruption platform appealed to the people for obvious reasons. Against the backdrop of bankruptcy, declared in May, 2022, after failing to meet debt commitments, the electorate rallied around the NPP that thrived on waste, corruption, irregularities and mismanagement, perpetrated by previous governments. Having bagged the executive presidency in September, 2024, the NPP assured the electorate that the Parliament would be cleansed of evils at the general election. President Anura Kumara Dissanayake declared that the people have been vested with the responsibility of cleansing the Parliament. Dissanayake went a step further when he addressed a public gathering at the 18th mile post on the Negombo-Colombo road. The NPP leader, who also leads the JVP, asserted that there was no need for an Opposition in Parliament and the House should be filled with NPPers.

Dissanayake based his assertion essentially on two failed No-Confidence Motions (NCMs) moved against Ravi Karunanayake and Keheliya Rambukwella in 2016 and 2023, respectively. The NPP/JVP leader found fault with Yahapalanaya and the Wickremesinghe-Rajapaksa government for protecting the two wrongdoers, hence the call to cleanse Parliament.

The results of the parliamentary election proved that the electorate responded very favourably to Dissanayake’s call. Of the 225-seat Parliament, the NPP secured 159 seats, including 18 National List slots. Having accused previous governments of shielding wrongdoers, Dissanayake easily directed the NPP’s steamroller parliamentary group to defeat the NCM moved against Energy Minister Punyakumara Dissanayake (National List) on 10 April, just a few days after the NAO report exposed the coal scam.

First ex-MP as Treasury Secy.

If its own hands are clean, there is no doubt that the NPP now deeply regrets the appointment of ex-NPP National List MP Harshana Suriyapperuma as the Secretary to the Treasury and the Finance Ministry. That appointment was made in June 2025 to fill the vacancy created by the retirement of Mahinda Siriwardana who, along with Governor of the Central Bank Dr. Nandalal Weerasinghe, played a significant role in the country’s post-Aragalaya recovery programme.

Suriyapperuma, who had served as Deputy Minister of Finance and Planning for just seven months, before being appointed the Treasury Secretary/Finance Ministry Secretary, is under heavy fire for suppressing the truth. No less a person than CoPF Chairman Dr. de Silva publicly accused Suriyapperuma of trying to undermine his committee. The SJB has demanded Suriyapperuma’s immediate resignation. Dr. Anil Jayantha succeeded as Deputy Minister of Finance and Planning.

Those who inquired into the crisis-hit Treasury are of the belief that 53-year-old Suriyapperuma lacked the much required experience to fill the shoes of Mahinda Siriwardana. Perhaps, the breach at the Treasury could have been averted if an outsider was not brought in place of Siriwardena. The recent reportage of the incident revealed that Suriyapperuma had been aware of the breach and sought to avoid appearing before the CoPF. The NPP could have responded to the developing situation differently if an ex-MP hadn’t been entrusted with the task of steering the Treasury/Finance Ministry. To make matters worse, President Dissanayake holds the Finance portfolio.

Although the government declared that the theft of USD 2.5 mn had been reported to the Criminal Investigation Department (CID) after initial detection made in January this year, controversy surrounds the failure on the part of law enforcement authorities to bring it to the notice of the courts. Maithri Gunaratne, appearing in Hiru last Saturday (25), questioned why the police failed to inform the relevant Magistrate if the government lodged a complaint in that regard.

Australia has confirmed irregularities in payments owed to their government. Regardless of NPP efforts to blame it on hacker/hackers, the truth is clear. Payments have been made to an account that hadn’t been in the original agreement between the governments of Sri Lanka and Australia. That is the undeniable truth that the NPP cannot suppress by propaganda.

The NPP should be ashamed that such a fraud had been perpetrated on a country still struggling to cope up with the economic destruction caused by the UNP- and the SLFP-led governments with the help of “mission impossible” type roles played by outside interests, especially during Gotabaya Rajapaksa’s tenure using the JVP/Aragalaya.

The world knows how the UNP perpetrated the Treasury bond scams with the direct involvement of the then Governor of the Central Bank Arjuna Mahendran, in February 2015 and March 2016. Regardless of that intolerable scam, the UNP made a desperate attempt to retain the services of the Singaporean as the Governor of the Central Bank. Party leader and the then Prime Minister Ranil Wickremesinghe demanded the re-appointment of Mahendran. That despicable move had to be dropped due to massive Opposition protests and growing public discontent over the Treasury bond scams.

The first Treasury bond scam carried out on 27 February, 2015 caused a direct loss of approximately Rs. 2 billion. On the instructions of Mahendran, the Treasury suddenly and arbitrarily changed the process of issuing Treasury Bonds. According to media reports at that time, higher interest payments, over the next 30 years, caused a further loss of around Rs. 145 billion.

Then Mahendran struck again. Caused further direct losses of more than Rs. 4 billion to the government through the fraudulent increase in interest rates as a result of the Treasury Bond issues on 27th March, 2016 ,and 29th March, 2016, in order to provide an undue advantage to connected primary dealers by indulging in further pre-meditated bond scams.

NPP on back foot

The ruling party put on a brave face with lawmakers and various others trying to play down the incident at the Treasury. Some pathetically tried to compare various accusations directed at the Rajapaksas with the incident at the Treasury which they conveniently blamed on hacker/hackers.

The NPP is facing an explosive mixture of issues. Both the coal and Treasury scams have brought immense pressure on the national economy and caused automatic deterioration. The resignation of Punyakumara aka Kumara Jayakody over the coal scam indicated that defeating the NCM moved against him was a strategic political blunder. Had the NPP asked the tainted first time Minister to step down and appoint a Presidential Commission to go into the coal scam, the NPP could have averted a major disaster. However, the Energy Minister and the Energy Secretary Udayanga Hemapala had to resign before the Parliament took up the NCM. Had the top NPP leadership bothered to peruse the executive summary of the NAO presented to Parliament on 7 April, the Party wouldn’t have tried to defend the minister.

Having championed a corruption-free political party system and then won both the presidential and parliamentary polls on that platform, the NPP executed the shocking move to move 323 containers out of the Colombo Port, in January 2025, without even any cursory checks. Those who perpetrated that operation used continuing port congestion as an excuse to clear red-flagged containers without mandatory physical checking. The NPP recently thwarted a bid by Opposition lawmakers, representing a parliamentary committee inquiring into the illegal release of containers, to summon President Dissanayake.

That committee, headed by Justice Minister Attorney-at-Law Harshana Nanayakkara, owed an explanation as to why President Dissanayake, in his capacity as the Finance Minister, shouldn’t appear before a House committee. President Dissanayake very often addresses Parliament on crucial issues. As the Minister in charge of Finance, the President should offer an explanation regarding the high profile container issue that tarnished the NPP’s image.

Three major issues in hand, namely the release of 323 containers, coal scam and theft at the Treasury, regardless of what various apologists say on mainstream and social media, have caused irrevocable damage to the party, let alone escapades involving the likes of Speaker Jagath Wickramaratne, Minister Lal Kantha, etc. The impact on the NPP can be ascertained only at an election. With the public increasingly aware of the growing accusations against it, the ruling party will do whatever possible to put off long delayed Provincial Council elections. Facing the electorate against deepening discontent among the public seems to be a frightening situation. It would be interesting to observe how a House committee, headed by Foreign Minister Vijitha Herath, appointed to explore ways and means to conduct Provincial Council polls, address the issue at hand.

When compared with the three major issues, the resignation of Asoka Ranwala, as the Speaker, in December, 2024, over his failure to produce the much-touted educational qualifications, seems unnecessary. Of course, Ranwala’s case attracted tremendous public attention at that time as the public really believed the NPP wouldn’t deceive them. Ranwala’s lie shocked the public. NPP theoretician Prof. Ranjith Nirmal Dewasiri had no qualms in publicly attacking Ranwala in the wake of the NPP defending the Speaker. But, subsequent NPP actions revealed massive manipulations that shamed the first post-Aragalaya government.

Having accused Ranil Wickremesinghe of squandering as much as Rs 16 mn to join his wife Prof. Maithree in the UK in September, 2023, the NPP has ended up facing far more serious accusations. The incident at the Treasury should be sufficient for the Opposition to move NCM against the government. Of course, the NPP got the numbers in Parliament to easily defeat the NCM but the consequences would be devastating. Those who still talk of recovering the missing USD 2.5 mn must be living in a dreamland. The UNP is labelled with Treasury bond scams (2015 and 2016) and the SLPP faulted with tax cuts (2019) and sugar tax scam (2020). The NPP will have to live with the coal scam and Treasury theft. The NPP will no longer be able to parade on political platforms as paragons of virtue. It would be pertinent to mention that the Presidential Commission appointed to probe the procurement of coal, since 2009, would be able to produce a report to meet the NPP’s expectations. All indications point to that and 2026 is going to be far more challenging, both in and outside Parliament, than the previous year.

NDB fraud

Examined together, the massive fraud at the National Development Bank (NDB), perpetrated during the 2024-2026 period, and the Treasury incident, they underscore the vulnerability of the entire banking system. The 13.2 bn NDB fraud and theft of USD 2.5 mn from the Treasury exposed the regulator, the Central Bank of Sri Lanka, in respect of the NDB. The situation at the NDB cannot be examined without taking into consideration that Ernst & Young is the external auditors of the NDB and its Managing Partner Duminda Hulangamuwa functions as Senior Economic Adviser to President Dissanayake. People haven’t forgotten that Hulangamuwa had been mentioned as the possible successor of Mahinda Siriwardena before the NPP brought in Suriyapperuma. The Central Bank and Securities Exchange Commission (SEC) come under the purview of the Finance Ministry now embroiled in the expanding Treasury fiasco.

The Board of Directors at the NDB consists of Sriyan Cooray (Chairman), Kelum Edirisinghe (Director / Chief Executive Officer (Executive), Bernard Sinniah (Director /Non-Independent), Sujeewa Mudalige (Director /Independent), Kushan D’Alwis (Director/Independent), Kasturi Chellaraja (Director/Independent), Shweta Pandey (Director /Independent), Hasitha Premaratne (Director/Independent), Sanjaya Mohottala (Director (Non-Independent) and Shanil Fernando Director (Independent).

The issue at hand is how such a fraud went unnoticed for a considerable period of time and whether the top management simply ignored warning signs and the failure on the part of the regulator to intervene. Those who have read Mahinda Siriwardana’s ‘Sri Lanka’s Economic Revival: Reflections on the Journey from Crisis to Recovery’ would know the circumstances leading to the 2022 economic collapse. Soft spoken Siriwardana meticulously discussed how the then Central Bank leadership as well as the so-called economic leadership of the Pohottuwa party deliberately deceived President Gotabaya Rajapaksa. Siriwardena’s narrative is explosive. The book, launched before his retirement, with the participation of President Dissanayake, underscored the responsibility on the part of the political leadership and those running the banking system. Obviously Siriwardena’s work had no impact on the current dispensation as well as the top banking management.

The Opposition sees an apparent opportunity to heap pressure on the NPP as it contemplates counter measures. Their challenge is how to take remedial measures without jeopardizing the government. The IMF declaration that it is closely watching the theft of USD 2.5 mn from the Treasury must have added pressure on the government, ripped apart by the situation at the Treasury. Let us hope the government and the Opposition reach consensus on ways and means to improve financial discipline. Overall, the Parliament cannot absolve itself of the responsibility for enactment of laws and ensuring financial discipline and the fact that Sri Lanka needs to start repayment of debt in 2028.

Midweek Review

Is language social or psychological phenomenon?

Published

6 days ago

2026/04/29

Sahan Weerasooriya

This essay was presented at The Philosophy Group of the University of London about 20 years ago. The thought provoking essay published in The Island on 22 April by Usvwatte-aratchi- Some languages confine you; some languages free you prompted me to try to get this essay published if possible. It may help the readers to further their ideas about the importance of usage of language.

Personally, I have firsthand experience in this subject. I was exposed to two different cultures and two languages. In my formative years I was brought up in a certain culture and spoke the language pertaining to that culture/language (Sinhalese -Sri Lanka). I spent all my studying and working life (55 years) using a different language in a different culture (English -England). I must mention that this was not recently. It was the early 1960’s. I can claim that I have enough knowledge and experience to justify this essay topic. In this essay I shall be investigating some of the social aspects of language with the aid of some opinions put forward by some philosophers. Then I shall be making an attempt to see what psychology has to offer before I draw my own conclusions. I am treating social aspects as part and parcel of the culture. In my view these are inseparable entities, unless one chooses to forget his or her cultural upbringing to suit a particular society.

Adoption of different culture

Socially, learning a different language and adopting a different culture is quite possible. In this case what dominates is one’s attitude or the circumstances. Attitude is psychological. I am convinced that circumstances may lead to a change of attitudes. Having said that, we must not forget that there are individuals who have not taken the trouble to learn the language of the culture in which they live. This has created a lot of socio-psychological problems in the community in which they live. It is obvious that the problem is one of communication. The main tool of communication is language. Philosophers and psychologists have spent many years investigating how language helps us to communicate and also how it may lead us to misunderstand our own fellow human beings. Understanding others (family members, members of the community in which we live, and the strangers we meet) is one of the most important aspects of living.

An awareness of the problem of language goes back to the early Greek philosophers. Parmenides gave us the first example of an argument from language to the world, saying that if we speak of a thing it must exist, since we speak of a thing at various times, it must continue to exist in a particular form. It is recently that language itself has come to be studied in a systematic way. The two landmarks in this respect were the development of Linguistics and the philosophy of language in the 20th century. The great philosopher Bertrand Russell (1872-1970) has admitted that until he became a middle-aged man, he did not think about language per se, but regarded it as ‘transparent’. I am sure this is true with most of us although we are not of Russell’s caliber when it comes to philosophy. And one may not have to wait until one reaches one’s middle age.

Linguistics and philosophy of language

It will help us if we understand the difference between Linguistics and philosophy of Language. What linguists discover may be applied to philosophy, sociology, psychology, anthropology or physiology. But as a discipline of study, it remains independent of them. The philosophy of language is different. One of the modern philosophers John Searle (1932-2025) thought, by contrast to linguistics, philosophy tries to solve philosophical problems by analyzing the ordinary use, meaning and relations of words in a particular language. Searle goes on to say that language is crucial to understand human experience. In my opinion this is a very valid comment. At a very practical level we spend a lot of time sharing our experiences. Verbal communication is vital in this area. According to Canadian philosopher Ian Hacking(1936-2023) the influence of language on philosophy has been profound and almost unrecognized. He indicates, if we are not to be misled by this influence, it is necessary to become conscious of it, and to ask ourselves deliberately how far it is legitimate.

It is appropriate to bring in Ludwig Wittgenstein(1889-1951) at this point. He brought in the subject predicate theory of language. For example, if we say “John is king”. Where John is the subject and king is the predicate. Here existence requires substance. For Aristotle, forms do not exist independently of things—every form is the form of something. A “substantial” form is a kind that is attributed to a thing, without which that thing would be of a different kind or would cease to exist altogether. Wittgenstein supports Saint Augustine’s view that words are names of objects and that combinations of words have the sole function of describing reality. For example, if we point at a certain object, say a table and try to say to a child “this is a table”, the child will be confused as to what we are pointing at. Is it the colour, the tabletop or one or more of its legs This is called the ostensive definition method of teaching. Ostensive definitions lead to a variety of interpretations. The child may understand a particular case of this definition but there is no guarantee that she will be able to make a transition from one case to others like it.

Plato’s theory

J G Herder (1744-1803) pointed out the object to which we make reference may be defined by numerous different terms. How then can we justify direct, one to one correspondence-either of so many to one, or of one to so many? How are we going to deal with situations where a term describes something non-existent or only possible? Plato’s “Forms” theory cannot be applied here as anything that we can speak of already exists as a Form. Critics of this theory ask the question: “how can the world be crowded with so many imaginary objects?” We use words to describe and define. Is there any room for slang language? This comes in handy in our day to day social communication. Ostensive definition raises the questions that require a constant selection of what counts as relevant. In Aldous Huxley’s novel Chrome Yellow, the character Old Rowley is confused as to: Does ‘pig’ refer to the quality of having a curly tail? Or standing in rows to eat? Or being pink skinned and fat? Or wearing no clothes? When we use the word “piggishness” is it something inherent to pigs, or simply, a matter of how we choose to describe them?

How can we relate the above ideas and theories of language to our daily living? Daily living is a psychosocial activity.

Perceptions

The nature of language reflects the nature of our perceptions, and these are far from straight forward. Franz Brentano (1838-1917) developed his theory of intentionality: that every mental phenomenon has a relation of direction to its object, i.e. perceptions, desires, imagination etc. are related to what is perceived, desired or imagined. I presume this can be applied to any language irrespective of the culture (our social conditioning). Say for instance the images of art and the writings are given the ability to represent objects by imposing the intentionality on the object. Thus, when we assert that we see or believe something, we impose, by convention and intention, (that is true if and only if it is the case) on the statement, and these conditions are not contained intrinsically in the sounds that make it up, but in our perception of belief about the fact. I begin to wonder how this can be applied to non-physical and unseen situations. Sometimes our feelings and attitudes are unknown to the observer. A person may shout because he is angry but you cannot see the anger, only its physical expression. We will not be able to see the prior event that has led to the anger and the utterance. This shows that there is a limit to how much is revealed simply by observing a word and its context; there is often more than that can be said.

How can we account for unexpected linguistic behaviour? This has both social and psychological implications.

For a long time behavioural theorists believed that every development of the human being was controlled by environmental and social factors. This is similar to an ostensive explanation of meaning. It implied that everything was learnt through training and association. But Noam Chomsky (b.1928) was not happy with this idea. He thought language is a complex phenomenon and which is not taught bit by bit or systematically to infants. It is successfully acquired by (almost) everybody. From my own experience it is true to say that the difficulty in learning a second language is a very different process from that experienced with the first language. Chomsky argued that the first language is not in fact learned, but rather acquired through exposure to a particular language. According to him all languages share the same basic structure, and he called this “deep structure”, which may be expressed as surface structures through a process called ‘transformation’. Chomsky’s theory helps us to assume a universal system of grammar, which may generate an infinite number of particular sentences within a language. This explains how we may create sentences within a language we have never encountered before from a limited set of grammatical rules and this appears to be a rational scientific approach.

Social or psychological phenomenon

The argument/discussion whether language is a social or a psychological phenomenon requires much more investigation than this essay warrants. I have briefly brought in various philosophers’ work, which are invaluable to this topic in terms of philosophy of language. In conclusion I am tempted to state my own experiences as a bi-lingual person. When it comes to my first language, which is Sinhalese I don’t think I learned it. I heard my parents speaking it and I picked up a few words and I constructed my own sentences and gradually became proficient by accumulating more words. Of course, the proper grammatical use of even my own language was taught in school and not by my parents. Learning my second language i.e. English took a different form. I was taught to speak, read, and write English at school and I had to work harder at this than my first language, because my English was confined to the classroom situation only, i. e. I learnt English in a non- English environment. First language came naturally and the second one I had to learn to fit into the social and the education structure that prevailed at that time. Compulsion can motivate us to learn!I had no choice but to adopt myself culturally and linguistically as a university student in England and then as a university teacher in England. Apart from the native English students, I have taught students from different countries. European, African and Asian. I had the opportunity to intermingle with them and learned various different cultural and linguistic aspects. After almost a half a century in England, I am back to my own culture (language, customs, food etc) where I was born and started my life. I am still proficient in my own language Sinhalese. No conscious effort needed.

After all the foregoing arguments and philosophy that I have put forward, my own conclusion is Chomsky’s theories are more plausible to me than other theories on this issue. It is difficult to be exact and say whether language is a social or psychological phenomenon. From the above arguments, we can see that culture and language of a given society are tightly bound. This leads us to psychological adjustments in order to fit into a society. Who can deny that even the philosophers mentioned above have not been subjected to their own cultural environment?

by Prof. Sampath
Anson Fernando
Formerly University of
The Arts London