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A golden opportunity missed due to communal mindsets

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By Rienzie Wijetilleke
(rienzietwij@gmail.com), and
Kusum Wijetilleke
(kusumw@gmail.com)

There was a period in the late 80s and early 90s when Sri Lanka’s banking sector was beginning to expand its correspondent relationships around the world and strengthening these relationships through carefully structured facilities was critical. As the CEO of HNB, I was obliged to meet officials and counterparts of various banks around the world in order to negotiate our institutional relationships and thus expand and facilitate the growing import/ export industry as well as finalizing credit lines to Sri Lanka. On quite a number of occasions, I attended meetings in the UK and in various parts of Europe with heads of some of the leading banks in that region. We would discuss Sri Lanka and its economy, politics, the threat of terrorism whilst also working out trade products and negotiating funding lines. Every so often, I would hear remarks from the British and the Europeans regarding the size of our balance sheet. They would jokingly ask whether there are any zeroes missing from our balance sheet, implying that HNB was not of an adequate size to be considered a major financial player internationally.

 

A Sri Lankan Regional Financial Force

 

When I studied the local industry at the time, it became apparent that culturally, the banking industry had an issue. The State owned and controlled banks such as BOC and People’s Bank had a major advantage due to their large deposit base and state backing, yet their loan portfolio was much weaker, mainly due to lending to State Owned Enterprises. At that time, due to state ownership, these banks viewed risk differently to private commercial banks. HNB was lending to a myriad of industries which were in their infancy but with a much smaller deposit base. Many of the private commercial banks had the necessary expertise to lend to large projects and new industries, but the institutions themselves were not large enough to participate in some of these transactions. This meant that a lot of the lending had to be syndicated with a foreign bank as well as with a state bank.

Thus, it became clear that HNB would have to grow its funding base in order to compete against the state banks and eventually against foreign banks in the region. Over many decades, Sri Lanka’s banking sector has evolved into a stable industry with an equally effective regulator and sound policy management. There was no reason why Sri Lanka’s finance industry could not find success in markets such as India, Pakistan, Bangladesh, Vietnam and Cambodia. My dream was that HNB would grow into a truly regional powerhouse, but this would require consolidation within the Sri Lankan industry to create a financial force that could compete regionally with a balance sheet large enough to entice investors.

HNB needed to buy over a competitor and perhaps through an amalgamated entity, try to enter foreign markets at least with basic financial products before expanding into infrastructure funding and investment banking. If we could start small and get our foot in the door in countries like Bangladesh and Vietnam, this Sri Lankan financial giant could open itself up to new opportunities in markets spread throughout the burgeoning South East Asian region. As the CEO of HNB, I had already overseen the purchase of the local branches of IndoSuez, Emirates Bank and Habib Bank and thus had the necessary confidence to oversee a larger, more meaningful acquisition/merger.

I engaged a few trusted advisors and we decided on presenting some preliminary numbers to key Board Members in private meetings. I had anticipated and received the unqualified support of the Chairman, the late Mr. Chrishantha Cooray and Director and one of its major shareholders: Mr. Harry Jayawardena (DHSJ). As Chairman, Mr. Cooray had always supported me, he was a thorough gentleman and always kept the organization’s best interests at heart. In DHSJ, I was always assured of the steadfast support of the country’s pre-eminent businessman and industrialist, someone that shared my vision. One sticking point was the need to raise fresh capital to partly finance the take-over. Mr. Cooray’s shareholding interest through Brown and Co. was unable to raise significant capital, but DHSJ was ready and willing to infuse the necessary capital. As CEO I had to walk a fine line, as both Mr. Cooray and DHSJ were dear friends of mine and at Mr. Cooray’s request, I had to agree not to take any action that might lead to a dilution of Brown and Co’s share-ownership.

 

Insecurity of the Regulator

 

Furthermore, many within the regulator were very much against what they perceived as an attempt by myself to promote individual ownership and domination of the banking industry in Sri Lanka. Personally, this was not a consideration for me, as I was responsible for the bank; a merger or acquisition was very much in the best interests of the organization. However given the sensitivity of the situation on all sides, I needed to be extremely tactful. It seemed obvious to me that the regulator was willing to forego international expansion to restrict individual domination of the industry and prevent a concentration of power. However, I was of the view that a consolidation would not only align with HNB’s vision, but was undoubtedly in the national interest.

Despite some reticence by members of the Board and Senior Management, I received the green light to do whatever needed to merge with or acquire Sampath Bank, even if it was interpreted as a hostile takeover. We opted for Sampath because of the enormous potential it showed at that time. I admired some of their senior management and indeed I even counted as friends some amongst their directorate, but our vision was more important than personal relationships. HNB had an opportunity and the entire country and economy would benefit from a consolidation which would have been unprecedented in Sri Lanka.

At the time, it was my expectation that the regulatory authority would have backed the creation of a Sri Lankan regional financial entity, given the obvious advantages it would bring to Sri Lanka. However, during the initial negotiations, it became apparent that Sri Lanka’s communal divisions had poisoned the hearts and minds of so many Sri Lankans: there was resistance from unexpected quarters.

 

Communal Divisions come to the Fore

 

Hatton National Bank, with its roots in the hill-country town of Hatton, was initially known to be a bank that served the plantation industry. Over the years, through the efforts of many, we successfully shed this image and created a new one. HNB came to be known as a “Partner in Progress” to all Sri Lankans and one of the things I am most proud of from my time as CEO was the Gami Pubuduwa scheme which was targeted at Sri Lankans around the country living outside urban areas, to provide them with lines of credit that were sorely lacking. I was also proud that HNB, especially during the mid-90s, had hired some of Sri Lanka’s brightest sportsmen and women, especially cricketers, both household names and up and coming youngsters with enormous potential. At HNB we celebrated all cultures and we would not spare any expense for Bakthi Gee and Christmas events for staff. HNB had become a truly multicultural organization.

To my surprise and utter disappointment, many people involved in the negotiations seemed to consider HNB a “Tamil Bank”. Thus, any potential takeover of Sampath was suddenly viewed through the lens of communal division. The idea of creating a regional powerhouse was now framed as a hostile acquisition of a ‘Sinhala’ Bank by a ‘Tamil’ Bank.

 

Personal Attacks and Posters

 

During the coming months, some enterprising members of the Sampath Bank Union began printing “kalapathara” (posters) making various allegations about HNB, its Directors and its management, myself included. HNB’s attempted takeover of Sampath was seen as part of a movement to dilute the Sinhalese culture, and I was viewed as the foremost villain in this story; the Sinhala Buddhist CEO who was selling his people out. There were various threats issued to me and my family. The Board of Directors at HNB was so concerned that they arranged a special security detail for me. We had to shuffle some of the staff that were working under me due to allegations that they were involved. I had to warn my wife that only specific staff would be allowed to enter my residence. On many evenings we received phone calls, with a variety of threats made against me personally and against my family, some of the language used I dare not repeat. On one occasion my youngest son, who was barely a teenager at the time had answered the telephone when my wife and I were not in the house. He conveyed to us that a man had called asking for me had then proceeded to scold my son in filth and warn him that his father’s limbs would be broken soon.

Senior officials of the Central Bank would call me at odd hours and we would discuss the move at length. The accusation was that HNB was trying to take over the banking industry, but I kept repeating that we were trying to consolidate, not dominate. Many at the CBSL were worried about monopolies and I sensed they had been listening to other industry professionals who were against potential domination of the industry by HNB. I can state as fact that I know of some very prominent bankers who despite seeing the obvious advantages, did not want to see HNB succeed in this venture.

 

The Dream that Died

 

As the war went from bad to worse, with bombs striking in the business district in Colombo and the government of Sri Lanka not having adequate means to respond, the temperature was starting to increase. The pressures were immense, the negative publicity around the merger/acquisition plus my additional responsibilities were starting to take its toll and I could not in good conscience endanger my family any further. Whilst I had the support of most of the Directorate at HNB, I realized that politically, the transaction would be painted by the communal narrative; the well had been poisoned.

As I think back, the idea to build a major regional financial player would most certainly have succeeded and the rewards would have been handsome. Take the example of Mr. Ishara Nanayakkara and the recent $600 Mn transaction involving the sale of shares in his Cambodian finance company, PRASAC. LOLC and Mr. Nanayakkara are reaping the rewards of taking a long-term view and diversifying into frontier markets with immense growth potential.

In the 90s, South East Asia and the Asian region as a whole was on the cusp of an economic boom. Young economies such as Vietnam and Bangladesh were starting to get organized and open up for trade and investment. An entity with the expertise of HNB and Sampath Bank with a large balance sheet would have taken a foothold in many of these markets and would have enjoyed a stake in their shared prosperity.

Unfortunately, small minds prevailed and Sri Lanka’s communal divisions would continue to dictate the country’s policies and initiatives, it might be argued that this sorry state of affairs still continues to this day.



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Opinion

Dulip F.R. Jayamaha, PC – “A man for all seasons”

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Twelve months, still feels like yesterday. A void in our hearts and minds that could never be filled. The world changed the day I lost you and suddenly, every lesson you gave by example, made sense.

Thaththi was a man of integrity and character, wisdom and intelligence, honesty and simplicity and most importantly a man of unwavering faith in Jesus Christ. His smile, witty humour and his ability to converse with almost anyone regardless of their age or status, was no doubt a rarity that set him apart. It was often said, that Mr. Jayamaha had an answer to any question and a solution to every problem, offering his wisdom with a calm assurance that brought comfort to those around him. A sing song with a whiskey in his hand and impromptu piano sessions will always be the fondest memories to those who were lucky enough to know him as he truly was. In other words, as my late maternal grandfather described Thaththi as “a man for all seasons”.

Thaththi worked tirelessly to give us the best, showering us with fatherly love and made us feel like royalty. Whatever duty he undertook, he made sure he did it to the best of his ability, in both his personal and professional life. When the days’ work was completed he made sure that everything was meticulously put away to its place.

Thaththi held my hand when afraid, cheered me in victory and listened without judgement. He was a man of quiet strength, wisdom and unconditional love. He treasured Ammi in a quiet way and was an exemplary husband.

We watched old movies and were introduced to actors of his time, enjoyed walks on the road and on the beach, listened to his achievements and stories of old, and laughed a lot. A weekly swim at the SSC and the daily practice of Yoga was a discipline he maintained throughout his life. Music was also a form of relaxation to him and at times all four of us would take turns on the piano and the violin.

Thaththi was always ready for adventure and vacation. During the civil war conflict in Sri Lanka when local travel was restricted, our vacations were mostly overseas. We were privileged to have travelled abroad at a very young age and explored the world together. Strangely Thaththi never forced us to study. After school we would always be taken out to
visit family or friends, to a dinner or a concert. Shows at the Lionel Wendt and the annual Christmas concert by the Symphony Orchestra of SL and Shakes were regular events we attended together as a family.

He had a passion for recording life as it happened, always behind the JVC GR-AX27 vintage camcorder, quietly capturing the excitement of our most meaningful moments be it, birthday parties and Christmas parties organized at our home, first holy communion, holidays overseas and out of Colombo and ballet concerts where my sister and I performed at the Lionel Wendt under the guidance of the late aunty Oosha and even my cousins’ wedding to name a few. It was a time before Instagram, when moments weren’t shaped for an audience but simply captured for the joy of remembering.
He was blessed to have enjoyed the special moments when Akki and I completed our professional exams. He especially enjoyed the box seat at the Royal Albert Hall for the 25th Anniversary performance of The Phantom of the Opera as well as attending the final rehearsal of the Opening ceremony of the 2012 London Olympics, at which Akki was a volunteer dancer. Thaththi’s career in the legal profession began soon after the untimely demise of his late father Don Hector Nicholas Jayamaha Proctor SC & Notary Public. To Thaththi his profession was never about the number of cases or the clients, neither did he want to put up a sign board at his office.

All that mattered was the service he rendered, with commitment and dedication irrespective of who the client was. He was one of a kind that never insisted on pomp and pageantry. In my brief years at the office I was lucky to have been introduced to many of his colleagues, friends and clients and observed the strong relationships and trust he built with them, which was indeed remarkable.

Thaththi was one who never hesitated to share his knowledge with anyone seeking clarity on legal matters. A telephone call was all that took, to get my father initiating a conversation. To me it was a sign of humility and a gift of being able to give back without being afraid of losing anything. An abundance mindset we rarely see in today’s society. What else could one expect from a legal luminary with 56 years at the Bar. I am grateful to have had my apprenticeship under my own father’s guidance.

During his distinguished years of service, he was appointed Director of the Ceylon State Hardware Corporation in 1980 and later served as a Director of the Ceylon Petroleum Corporation, where he also held the position of Chairman of the Audit Committee from February 2002 to April 2004. He went on to become the first Chairman and Managing Director of Ceylon Petroleum Storage Terminals Limited, serving on its Board from November 2003 to April 2004. In addition, he was a Director of Lanka Cement Limited and chaired its Audit Committee from March 2002 to April 2004. Most recently, he served on the Board of Directors of Lake House Printers and Publishers PLC.

One of the most meaningful lessons I will carry with me is to always have faith and trust in the Lord, even in the most difficult moments. Thaththi made it a habit to say a prayer before leaving home, upon returning, and throughout the day. No matter how long or tiring the day had been, the family Rosary was never missed. The greatest gift he gave my sister, my mother, and me is the gift of faith. He passed away on the Feast of Divine Mercy last year, and we rejoice knowing he is in heaven and find comfort trusting that he is our guardian angel guiding us from above.

Priyanti and Lasika (akki) Jayamaha

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Opinion

Ranasighe Premadasa: Man of the Masses

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Premadasa

I was struck by the article written by MDD Pieris in The Sunday Island, under the title, “Free school uniform decision taken in minutes on a platform in Bakamuna” by President Premadasa. I am penning this piece as a tribute to this remarkable visionary in social development and grassroots economic policy, who was tragically assassinated by an LTTE suicide bomber in Colombo exactly 33 years ago.

The term of Sri Lanka’s first Executive President, J. R. Jayewardene (JRJ), was ending in 1989. As the constitution required, JRJ decided to call a presidential election. After some uncertainty within the United National Party (UNP) about who should be the next candidate, then-Party Chairman Ranjan Wijeratne and JRJ’s security advisor Ravi Jayewardene (JRJ’s only son) thought the best candidate was Prime Minister Ranasinghe Premadasa. They realised that the country was moving from elite-centred, Colombo-focused politics toward a more populist, grassroots and security-dominated phase.

They advised the President JRJ and party stalwarts accordingly.

At a UNP Parliamentary Group and Working Committee meeting, J. R. Jayewardene proposed Premadasa’s name. To maintain party unity and avoid an internal contest, he also arranged for Premadasa’s main political rivals from the UNP, Lalith Athulathmudali and Gamini Dissanayake, to second the nomination. This move made Premadasa the unanimous party choice.

Premadasa played a key role in the UNP’s landslide victory in the 1977 parliamentary election, boosting its grassroots membership through his “Man of the Masses” image. He was then appointed deputy leader of the party.

The second Presidential Election took place on December 19, 1988, amid severe unrest. The Janatha Vimukthi Peramuna (JVP) called for a boycott and staged a violent protest in the south.

Despite a low voter turnout and violence, the election went ahead, and Premadasa won a clear majority of valid votes, defeating main opposition candidate Sirimavo Bandaranaike from the SLFP. Ranasinghe Premadasa was sworn in on January 2, 1989, as Sri Lanka’s second executive president.

Premadasa was a strong nationalist who campaigned for the withdrawal of the Indian Peace Keeping Force (IPKF), whose presence was unpopular among the Sinhalese majority. He saw the Liberation Tigers of Tamil Eelam (LTTE), actively fighting the IPKF, as a potential ally in this effort.

His predecessor JRJ did argue that the Tamil issue was a very ancient problem and therefore external mediation might be necessary, which partly explains why he accepted Indian involvement leading to the 1987 accord.

In a pointed critique of India, Premadasa believed that the ethnic conflict could be resolved internally without foreign intervention.

He invited the LTTE and the JVP for talks as part of a strategy to end the prevailing dual insurrections, bring the groups into the democratic process, and secure the withdrawal of the IPKF from Sri Lanka. The LTTE accepted the offer and sent a delegation to Colombo for talks.

The LTTE delegation was transported by helicopter from the Mullaitivu jungles to Colombo. Premadasa arranged for LTTE ideologue Anton Balasingham and his wife, Adele, to fly to Colombo from London via Air Lanka at government expense. The LTTE team was provided with tight security managed by the Special Task Force (STF). During their stay in Colombo, LTTE cadres were permitted to retain their personal weapons as part of the security arrangements.

During the Premadasa–LTTE talks, the LTTE visited the homes of key traditional Tamil democratic leaders, such as A. Amirthalingam and V. Yogeswaran, for discussion and assassinated them, effectively destroying moderate Tamil parliamentary politics.

Both the JVP and Premadasa were opposed to the Indo-Lanka Accord and the IPKF presence, which provided a shared point of interest. He called an All Party Conference (APC) to resolve the problem through dialogue. JVP, however, refused to attend this conference. He then launched a brutal crackdown on the JVP using extreme counter-insurgency methods under the direct supervision of State Minister for Defence General Ranjan Wijeratne.

A period remembered for severe human-rights abuses and some opposition members even took the matter to the UN Commission on Human Rights. The crackdown ended with JVP leader Rohana Wijeweera being killed.

At the request of the President Premadasa, India withdrew the IPKF between September 1989 and March 1990.

Rural Unemployment and 200 Garment Factory Programme

Premadasa was from a humble, urban, working-class background, rose through grassroots politics in Colombo and had a better understanding of the grievances and aspirations of people of rural areas compared to JRJ. He knew the main problem was the unemployment of rural youth. He also knew that developing agriculture alone would not help solve this problem. He therefore decided to take industries to rural areas and embarked on the famous 200 garment factory programme.

He logically explained what his objective was when a prominent university professor of the time asked him what he was aiming to achieve through the programme.

He said one of the main problems Sri Lanka faced was rural unemployment, especially among the youth. Unless this issue was addressed, there would be no meaningful development in the country, as these youths would become pawns of political activists.

He identified unemployment as the root cause of political violence. Therefore, he wanted industrialisation to reach rural areas.

But he said there are obstacles. Sri Lanka, being an agriculture-based country, has most people not used to “industrial discipline.” It had been largely an Agricultural, Public-sector oriented and Plantation-based economy and society since colonial era and even after independence. The majority Sinhalese are accustomed to an easy life working in the paddy fields and practing Chena cultivation for thousands of years.

A common feature of the few factories established since Independence, both public and private, was the high absenteeism during the paddy harvesting periods, which left the management in a precarious situation.

Many rural youths had never worked in a factory environment with fixed working hours, meeting production targets, strict quality control and assembly-line work.

Without industrial discipline among the rural folks, no investor would risk his money setting up factories in rural areas. Some rural girls working in the Katunayake FTZ faced significant problems. They face isolation and lack of support, sexual risks and exploitation, language barriers, and more. When they work in a factory close to their homes, most of these issues could be resolved, Premadasa said.

On the other hand, garment manufacturing isn’t too complicated technology-wise. So, it was easy to train mechanics in preventive and break-down maintenance and operators in operational aspects.

He also knew it would help integrate rural areas into the export economy, and into a global value chain (GVC) moving beyond traditional free trade zones like Katunayake and Biyagama.

World Textile and Apparel (T&A) production went through three main phases, mostly based on production costs. First, in the 1970s in Hong Kong, Singapore, the Republic of Korea, and Taiwan, and during 1985-1990, they (Factory owners) reduced production and moved operations to the Philippines, Indonesia, Thailand, and Malaysia. The third phase involved shifting to countries like Bangladesh, Pakistan, Sri Lanka, Laos, Nepal, and Vietnam during the early 1990s. Premadasa aimed to take advantage of this trend.

His target was to create about 100,000 jobs, with factories typically employing at least 500 workers and giving employment opportunities in rural areas. Preference was deliberately given to economically disadvantaged families, helping spread incomes beyond urban centres.

Structural changes initiated to facilitate 200 garment factory programme

The Greater Colombo Economic Commission (GCEC), established in 1978 under JRJ, was originally created to manage Free Trade Zones (FTZs) like Katunayake and attract export-oriented foreign direct investment (FDI) into specific zones.

Premadasa transformed the GCEC into a national-level investment facilitator and renamed it the Board of Investment of Sri Lanka (BOI). It was more of a functional transformation and expansion of the GCEC role. With BOI, he established a centralised decision-making structure to expedite project approvals and reduce bureaucracy.

BOI effectively served as a “one-stop shop”, which was crucial because garment investors required speed and predictability.

President Premadasa Meeting the Potential Investors

\Working out the strategy with his handpicked officials, President Premadasa convened a meeting of potential investors at BMICH. The first meeting played a key role in launching the garment factory programme and demonstrated his hands-on, interventionist approach to economic development.

There were many would-be investors, mainly locals and entrepreneurs from countries like South Korea, Singapore and other Newly Industrialised Countries (NICs).

Premadasa personally addressed attendees and explained his vision of moving investment into rural districts. He said there are tax holidays on offer (the length varies by location, especially for rural/”difficult” areas), duty-free import of machinery and raw materials would be allowed, and guaranteed access to U.S. garment quotas under the Multi-Fibre Arrangement (MFA). The quotas would be allocated based on location: 10,000 dozen for non-difficult areas, 25,000 dozen for difficult areas and 50,000 dozen for the most difficult areas.\

He also said land, electricity, water, roads, and telecommunication would be provided by the state through the Board of Investment (BOI), the government agency responsible for promoting and facilitating investment. On the finance side permission to open foreign currency accounts would be allowed, and access to loans (including foreign currency banking units) would be available.

Premadasa requested investors to set up their factories to employ around 500 workers per factory and prioritise recruitment from low-income rural families. He also requested to provide meals (or subsidised food) to workers. It was however not a formal legal requirement written into BOI agreements.

He also offered duty-free import of a luxury vehicle (e.g., Benz car) after project completion.

Premadasa then concluded the meeting, assuring them that he will meet in a month or so to assess the progress.

At the progress review meeting held at the same venue, Premadasa asked if anyone had problems. About 10% of the attendees raised their hands, and the president asked them to move to the side. Then he said, “I will work with those who don’t have problems,” and asked the others to leave the chamber. This was how Premadasa achieved his goals.

Opening of factories under the programme

Premadasa personally supervised the progress of the programme. All initial problems reported to him by investors through his officials were quickly resolved.

He often had a clock tower built near many factories opened under the “200 Garment Factories Programme.” He believed that factory workers—mostly young people who had previously worked in agriculture or informal jobs—needed to adapt to strict working hours and punctuality. The clock tower served as a visible public timekeeper for workers and the surrounding community and it symbolized the transition from a village lifestyle to an industrial work culture.

Although Sri Lankan youth initially lacked technical skills and industrial discipline, they were able to assimilate into the garment industry relatively quickly because training requirements were short, production systems simplified tasks and strong factory training programs were introduced with the public institutions like Sri Lanka Institute of Textile & Apparel (SLITA). Above all literacy levels among the Sri Lankan youths were high.

This adaptability is one reason why Sri Lanka became a major garment exporter in the 1990s.

He attended numerous factory opening ceremonies from the late 1980s to the early 1990s, especially in less underdeveloped areas like Matale, Polonnaruwa, and Monaragala. Some factories launched under this programme have now grown into large conglomerates with factories in many other countries.

Success of the garment factory programme The 200 Garment Factories Programme played a pivotal role in transforming Sri Lanka into a global hub for apparel manufacturing, while also introducing modern industrial employment to rural districts for the first time.

Today, the garment industry continues to be Sri Lanka’s largest export sector, underscoring the lasting impact of this initiative.

J.R. Jayewardene’s modernisation strategy

It was JRJ who attempted to modernise Sri Lanka after coming to power.

Although JRJ’s government (1977–1989) achieved many successes in modernising the country, leading to economic development and improved living standards through major economic liberalisation and constitutional changes, it also faced numerous failures.

The benefits of the open economy concentrated in urban and Western Province areas. Expansion of the private sector and open economy did not absorb educated youth from rural areas. As a result, there was a huge mismatch between the education system and job market contributing to youth frustration and radicalisation, especially in the south.

Premadasa, after coming to power as Executive President of Sri Lanka, attempted to correct many weaknesses under the previous president, while taking forward the “Modernisation Programme” launched by him. Through “200 Garment Factories Programme” he attempted to take “National Development” to rural areas.

Another area he attempted to rectify was the recruitment process in public employment, which was often based on political patronage and arbitrary appointments made based on party loyalty. He directed that vacancies—particularly for non-technical jobs in the public service and state institutions—be filled through competitive written examinations and interviews, rather than ministerial recommendations.

Unfortunately, Premadasa’s main failure was underestimating the LTTE’s long-term goals. He only sought a political opening with the LTTE, mainly to achieve one objective: the withdrawal of the IPKF. Although he succeeded, the LTTE quickly turned against the government and launched the Second Elam War in June 1990 after attacking police and military targets.

Premadasa was assassinated in an LTTE suicide bomber attack in Colombo exactly 33 years ago.

The LTTE continued its insurgency until its defeat in 2009.

by Rohan Abeygunawardena
abeyrohan@gmail.com)

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Opinion

The pointer who showed the moon: Professor Y. Karunadasa (1934–2026)

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Prof. Karunadasa

On 27 April 2026, Sri Lanka lost a quiet giant. Professor Y. Karunadasa, one of the world’s foremost scholars of Abhidhamma and Buddhist philosophy, passed away in Colombo. He was 92.

For those who never sat in his classroom, the name might sound distant. But for anyone who has ever wondered what the Buddha really meant by anatta (no‑self) or sabhāva (intrinsic nature), Karunadasa’s work was a lantern in the dark. He did not write to impress other academics. He wrote to make the Dhamma clear.

Born in 1934, he graduated with First Class Honours in Pali from the University of Ceylon in 1958. A decade later, his PhD thesis from the University of London became his landmark book, The Buddhist Analysis of Matter. One reviewer called it “the final word on the subject for many years to come.” He later served as Dean of Arts at the University of Kelaniya and founded its Postgraduate Institute of Pali and Buddhist Studies. The nation honoured him with Sri Lanka Sikhamani in 2005.

Yet his true gift was teaching. He once said he loved students who knew nothing about Buddhism. “It’s more adventurous,” he explained. “For those already exposed, it’s not so fascinating. In a way, it’s easier because they carry no prejudices.” He taught at SOAS, Toronto, Calgary, and Hong Kong, but he always returned to Sri Lanka – because, he said, “the Dhamma lives best where the language of the texts is still spoken.”

What exactly made his scholarship so special? Before Karunadasa, Western, and even some Asian scholars, often dismissed Abhidhamma as dry scholasticism – a medieval invention far from the Buddha’s original words. Karunadasa spent four decades proving otherwise. He showed that Abhidhamma is not a later corruption but a natural extension of the early suttas. His analysis of sabhāva (intrinsic nature) was revolutionary: he demonstrated that the Abhidhamma schools never posited eternal substances, only conditioned, momentary realities. In doing so, he rescued the entire Abhidhamma tradition from the charge of being “proto‑Hindu” or essentialist. Philosophers in London and Chicago began citing him alongside Western phenomenologists. Yet he never lost his Sri Lankan accent or his habit of drinking plain black tea while discussing citta and cetasika.

His most profound contribution was to Abhidhamma, the analytical heart of the Buddha’s teaching. Western scholars often dismissed Abhidhamma as dry scholasticism. Karunadasa showed it was a living philosophy of mind and matter, free from eternalism and nihilism. He argued that the Buddha’s refusal to posit a permanent self was not a mere negation but an invitation to see reality as a process – a stream of conditioned moments, luminous and awake.

What made him rare was his humility. He never claimed to be a meditation master or a saint. He was a reader of texts, a lover of words, a man who believed that truth shines brightest when pointed at, not possessed. “I present what I find,” he said. “Whether one decides to accept it is an individual matter.”

I recall a small story that students often told. Once, a young monk asked him after a lecture, “Venerable Professor, after all this analysis, does the self exist or not?” Karunadasa smiled. “That question,” he said, “is like asking whether the flame in this oil lamp is the same as the flame a moment ago. The Buddha’s answer is neither ‘yes’ nor ‘no’ but ‘it is not proper to say so.’ Learn to live with the question, and you will be freer than any philosopher who claims to have an answer.”

Students remember him not for grand speeches but for small kindnesses – a patient explanation of a Pali compound, a gentle nod when a young scholar stammered through a seminar. He never raised his voice. He never needed to.

The Buddha once said that the Dhamma is like a finger pointing to the moon. Do not stare at the finger, he warned. Professor Karunadasa spent a lifetime perfecting that finger – polishing it, straightening it, making sure it pointed true. We may now look at the moon and remember the hand that showed us where to turn.

May his passing be his final lesson: that even the greatest scholar must one day let go. And in that letting go, become the silence from which all teaching first arose.

May he attain the supreme bliss of Nibbana!

Dedicated to the memory of a teacher who never stopped learning.

K.L. Senarath Dayathilake

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