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A hybrid of Theravada ethics and Mahayana pragmatism in a capitalist framework

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Sri Lanka’s Economic Identity:

As described in last week’s column, Buddhism, beyond its spiritual teachings, has deeply influenced socio-economic life across Asia. Theravada and Mahayana, the two main branches of Buddhism, offer contrasting views not only on religious practice but also on economic principles. Both schools emphasise ethical behaviour, compassion, and non-attachment to material possessions. However, their divergent philosophical outlooks lead to varying interpretations of economic activity, wealth accumulation, and societal roles.

Foundations of Economic Thought

in Buddhism

The core teachings of Buddhism emphasise the Middle Path, which seeks a balance between indulgence and asceticism, ultimately aiming to reduce suffering dukkha. This principle informs both Theravada and Mahayana perspectives on wealth and economics. Central to this framework is the Buddhist understanding of interdependence and the moral implications of actions karma. Consequently, economic activities should adhere to ethical principles that promote collective well-being rather than personal greed.

Theravada Economic Concepts

Theravada Buddhism, prominent in countries like Sri Lanka, Thailand, Myanmar, and Cambodia, emphasses personal responsibility in the accumulation and use of wealth, focusing on individual liberation Nirvana. While wealth is not condemned, it is seen as a potential obstacle if it leads to attachment. Theravada promotes mindful use of resources through “right livelihood,” avoiding harm and supporting ethical professions. Wealth is valued when used for virtuous purposes like family support, charity, and donations to religious institutions. The practice of dana (generosity) is central, fostering spiritual growth. The laity supports the monastic community Sangha in exchange for spiritual guidance, creating an economic interdependence that limits materialism.

Mahayana Economic Concepts

Mahayana Buddhism, prevalent in East Asia, promotes a more inclusive spiritual practice through the Bodhisattva ideal, where individuals seek not only their own enlightenment but also the liberation of all beings. This collective outlook shapes its approach to wealth, viewing it as positive if used altruistically for the benefit of others. Mahayana emphasises collective well-being, encouraging large-scale philanthropy, social welfare, and efforts to reduce inequality. A key feature is its focus on compassionate action karuna, motivating wealthy individuals to address poverty’s root causes, contrasting with Theravada’s focus on personal morality in economic behaviour.

Wealth, Ethics, and Capitalism

In both Theravada and Mahayana Buddhism, wealth is viewed through an ethical lens, but with key differences. Mahayana emphasises social responsibility, making it more compatible with modern capitalist systems, where wealth creation can serve the greater good if aligned with ethical goals. In contrast, Theravada promotes a simpler lifestyle and cautions against excessive material accumulation, with the Sangha serving as a moral check on economic inequality. Mahayana’s focus on compassionate economics has led to socially conscious businesses in East Asia, prioritising sustainability, fair labor practices, and ethical products, aligning with the Bodhisattva ideal of serving humanity.

Comparative Critique

While Theravada and Mahayana both uphold the core Buddhist principles of ethical behaviour and compassion, their divergent views on wealth accumulation and economic activity offer distinct paths for addressing economic challenges.

Theravada’s Strengths: Its focus on personal morality ensures that economic actions are deeply rooted in individual ethical responsibility. It encourages a frugal lifestyle and mindful consumption, which can be a powerful antidote to modern consumerism. However, Theravada’s individualistic approach may be less equipped to address systemic inequality and economic injustice, as it emphasises personal liberation over societal transformation.

Mahayana’s Strengths: By contrast, Mahayana’s collective approach to enlightenment supports structural changes in economic systems. Its Bodhisattva ideal inspires a sense of social responsibility, motivating the wealthy to act for the benefit of society. This inclusive approach can lead to broader initiatives aimed at reducing poverty and inequality. However, it may also open the door to a more relaxed attitude toward wealth accumulation, as long as it is justified by altruistic intent.

Sri Lanka, as a predominantly Theravada Buddhist country, has a long history of intertwining its religious principles with governance and economic policies. However, a critical examination reveals that the country’s modern economic policies, shaped by globalisation and capitalism, increasingly diverge from traditional Theravada Buddhist concepts. While Sri Lankan society continues to emphasise Buddhist values in various aspects of life, its capitalistic economic structure suggests a closer alignment with the broader, more flexible economic interpretations found in Mahayana Buddhism.

Theoretical Theravada Economic Principles

Theravada Buddhism promotes the Middle Path, avoiding both extreme poverty and excessive materialism. Economic activity should follow ethical principles, particularly “right livelihood,” which discourages harmful or exploitative industries. While wealth isn’t inherently wrong, it can lead to attachment and suffering dukkha, so individuals are encouraged to use resources mindfully, focusing on supporting family, charity dana, and the monastic community Sangha. The Sangha serves as a moral guide, counterbalancing materialism, while laity supports monks through donations and alms, fostering mutual dependence that limits wealth concentration and promotes ethical resource use.

Sri Lanka’s Capitalistic Economic Policies

Since Sri Lanka’s economic liberalisation in 1977, the shift toward free-market principles and deregulation has moved the country away from a state-controlled economy toward a capitalist model focused on global trade and market competition. The rise of private enterprises, multinational corporations, and consumerism marks a significant departure from traditional Theravada Buddhist values of simplicity and non-attachment. Rapid urbanisation, tourism expansion, and increasing wealth inequality further highlight the alignment with capitalist ideals, prioritising profit and material success over ethical concerns of wealth distribution and social equity, creating tension with Sri Lanka’s cultural and religious values.

Closer Alignment to Mahayana

Economic Principles

Theravada Buddhism promotes personal restraint in wealth usage, whereas Mahayana Buddhism, particularly in East Asia, adopts a more flexible approach. The Bodhisattva ideal encourages wealth accumulation if it’s used for societal welfare, aligning with capitalism when wealth is directed altruistically. Similarly, Sri Lanka’s capitalist policies embrace wealth accumulation, entrepreneurship, and international trade, with an increasing emphasis on corporate social responsibility (CSR) and philanthropy. Large corporations and wealthy individuals frequently contribute to charitable causes, echoing Mahayana principles of using wealth for the greater good, without necessarily limiting personal accumulation.

Consumerism and Buddhist Values

Sri Lanka’s growing consumer culture reveals a conflict between traditional Theravada values and the capitalist economy. The rise of materialism and status competition, especially in urban areas, contradicts Theravada’s teachings of contentment and non-attachment. Advertising and media drive the desire for luxury goods, fostering a consumption-driven lifestyle that opposes the Middle Path. Similar trends are seen in Mahayana Buddhist countries like Japan and China, where Buddhism has adapted to modern economic realities by emphasising charitable giving and social responsibility rather than strict asceticism.

Social Welfare and Wealth Redistribution

Sri Lanka’s current economic policies deviate from traditional Theravada teachings on wealth distribution, which emphasise supporting the Sangha and charitable acts to reduce inequality. Despite this, the country has experienced growing wealth disparities, with urban elites benefiting more from economic growth while rural and marginalised communities remain in poverty.

Sporadic welfare programs and redistributive policies, reflecting aspects of Mahayana Buddhism’s Bodhisattva ideal, attempt to address these issues. However, inefficiencies, corruption, and a capitalist system focused on profit over equity often undermine efforts like free education and healthcare.

The Role of Religion in Economic Life

Religion remains influential in Sri Lanka’s socio-economic landscape, with most citizens practicing Buddhism and engaging in acts of generosity (dana). However, a gap exists between these religious ideals and the realities of the capitalist economy. While donations to temples and acts of charity persist, they often reinforce existing socio-economic structures rather than challenge capitalism. Temples have increasingly become tied to capitalist enterprises, relying on donations from wealthy patrons who benefit from the system, reflecting a shift toward accepting wealth accumulation if it supports societal and religious welfare, resembling Mahayana Buddhist practices.

(The writer, a senior Chartered Accountant and professional banker, is a professor at SLIIT University, Malabe. He is also the author of the “Doing Social Research and Publishing Results”, a Springer publication (Singapore), and “Samaja Gaveshakaya (in Sinhala). The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the official policy or position of the institution he works for. He can be contacted at saliya.a@slit.lk and www.researcher.com)



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Digital transformation in the Global South

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AI Summit, India

Understanding Sri Lanka through the India AI Impact Summit 2026

Artificial Intelligence (AI) has rapidly moved from being a specialised technological field into a major social force that shapes economies, cultures, governance, and everyday human life. The India AI Impact Summit 2026, held in New Delhi, symbolised a significant moment for the Global South, especially South Asia, because it demonstrated that artificial intelligence is no longer limited to advanced Western economies but can also become a development tool for emerging societies. The summit gathered governments, researchers, technology companies, and international organisations to discuss how AI can support social welfare, public services, and economic growth. Its central message was that artificial intelligence should be human centred and socially useful. Instead of focusing only on powerful computing systems, the summit emphasised affordable technologies, open collaboration, and ethical responsibility so that ordinary citizens can benefit from digital transformation. For South Asia, where large populations live in rural areas and resources are unevenly distributed, this idea is particularly important.

People friendly AI

One of the most important concepts promoted at the summit was the idea of “people friendly AI.” This means that artificial intelligence should be accessible, understandable, and helpful in daily activities. In South Asia, language diversity and economic inequality often prevent people from using advanced technology. Therefore, systems designed for local languages, and smartphones, play a crucial role. When a farmer can speak to a digital assistant in Sinhala, Tamil, or Hindi and receive advice about weather patterns or crop diseases, technology becomes practical rather than distant. Similarly, voice based interfaces allow elderly people and individuals with limited literacy to use digital services. Affordable mobile based AI tools reduce the digital divide between urban and rural populations. As a result, artificial intelligence stops being an elite instrument and becomes a social assistant that supports ordinary life.

Transformation in education sector

The influence of this transformation is visible in education. AI based learning platforms can analyse student performance and provide personalised lessons. Instead of all students following the same pace, weaker learners receive additional practice while advanced learners explore deeper material. Teachers are able to focus on mentoring and explanation rather than repetitive instruction. In many South Asian societies, including Sri Lanka, education has long depended on memorisation and private tuition classes. AI tutoring systems could reduce educational inequality by giving rural students access to learning resources, similar to those available in cities. A student who struggles with mathematics, for example, can practice step by step exercises automatically generated according to individual mistakes. This reduces pressure, improves confidence, and gradually changes the educational culture from rote learning toward understanding and problem solving.

Healthcare is another area where AI is becoming people friendly. Many rural communities face shortages of doctors and medical facilities. AI-assisted diagnostic tools can analyse symptoms, or medical images, and provide early warnings about diseases. Patients can receive preliminary advice through mobile applications, which helps them decide whether hospital visits are necessary. This reduces overcrowding in hospitals and saves travel costs. Public health authorities can also analyse large datasets to monitor disease outbreaks and allocate resources efficiently. In this way, artificial intelligence supports not only individual patients but also the entire health system.

Agriculture, which remains a primary livelihood for millions in South Asia, is also undergoing transformation. Farmers traditionally rely on seasonal experience, but climate change has made weather patterns unpredictable. AI systems that analyse rainfall data, soil conditions, and satellite images can predict crop performance and recommend irrigation schedules. Early detection of plant diseases prevents large-scale crop losses. For a small farmer, accurate information can mean the difference between profit and debt. Thus, AI directly influences economic stability at the household level.

Employment and communication reshaped

Artificial intelligence is also reshaping employment and communication. Routine clerical and repetitive tasks are increasingly automated, while demand grows for digital skills, such as data management, programming, and online services. Many young people in South Asia are beginning to participate in remote work, freelancing, and digital entrepreneurship. AI translation tools allow communication across languages, enabling businesses to reach international customers. Knowledge becomes more accessible because information can be summarised, translated, and explained instantly. This leads to a broader sociological shift: authority moves from tradition and hierarchy toward information and analytical reasoning. Individuals rely more on data when making decisions about education, finance, and career planning.

Impact on Sri Lanka

The impact on Sri Lanka is especially significant because the country shares many social and economic conditions with India and often adopts regional technological innovations. Sri Lanka has already begun integrating artificial intelligence into education, agriculture, and public administration. In schools and universities, AI learning tools may reduce the heavy dependence on private tuition and help students in rural districts receive equal academic support. In agriculture, predictive analytics can help farmers manage climate variability, improving productivity and food security. In public administration, digital systems can speed up document processing, licensing, and public service delivery. Smart transportation systems may reduce congestion in urban areas, saving time and fuel.

Economic opportunities are also expanding. Sri Lanka’s service based economy and IT outsourcing sector can benefit from increased global demand for digital skills. AI-assisted software development, data annotation, and online service platforms can create new employment pathways, especially for educated youth. Small and medium entrepreneurs can use AI tools to design products, manage finances, and market services internationally at low cost. In tourism, personalised digital assistants and recommendation systems can improve visitor experiences and help small businesses connect with travellers directly.

Digital inequality

However, the integration of artificial intelligence also raises serious concerns. Digital inequality may widen if only educated urban populations gain access to technological skills. Some routine jobs may disappear, requiring workers to retrain. There are also risks of misinformation, surveillance, and misuse of personal data. Ethical regulation and transparency are, therefore, essential. Governments must develop policies that protect privacy, ensure accountability, and encourage responsible innovation. Public awareness and digital literacy programmes are necessary so that citizens understand both the benefits and limitations of AI systems.

Beyond economics and services, AI is gradually influencing social relationships and cultural patterns. South Asian societies have traditionally relied on hierarchy and personal authority, but data-driven decision making changes this structure. Agricultural planning may depend on predictive models rather than ancestral practice, and educational evaluation may rely on learning analytics instead of examination rankings alone. This does not eliminate human judgment, but it alters its basis. Societies increasingly value analytical thinking, creativity, and adaptability. Educational systems must, therefore, move beyond memorisation toward critical thinking and interdisciplinary learning.

AI contribution to national development

In Sri Lanka, these changes may contribute to national development if implemented carefully. AI-supported financial monitoring can improve transparency and reduce corruption. Smart infrastructure systems can help manage transportation and urban planning. Communication technologies can support interaction among Sinhala, Tamil, and English speakers, promoting social inclusion in a multilingual society. Assistive technologies can improve accessibility for persons with disabilities, enabling broader participation in education and employment. These developments show that artificial intelligence is not merely a technological innovation but a social instrument capable of strengthening equality when guided by ethical policy.

Symbolic shift

Ultimately, the India AI Impact Summit 2026 represents a symbolic shift in the global technological landscape. It indicates that developing nations are beginning to shape the future of artificial intelligence according to their own social needs rather than passively importing technology. For South Asia and Sri Lanka, the challenge is not whether AI will arrive but how it will be used. If education systems prepare citizens, if governments establish responsible regulations, and if access remains inclusive, AI can become a partner in development rather than a source of inequality. The future will likely involve close collaboration between humans and intelligent systems, where machines assist decision making while human values guide outcomes. In this sense, artificial intelligence does not replace human society, but transforms it, offering Sri Lanka an opportunity to build a more knowledge based, efficient, and equitable social order in the decades ahead.

by Milinda Mayadunna

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Governance cannot be a postscript to economics

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Kristalina-Georgieva

The visit by IMF Managing Director Kristalina Georgieva to Sri Lanka was widely described as a success for the government. She was fulsome in her praise of the country and its developmental potential. The grounds for this success and collaborative spirit go back to the inception of the agreement signed in March 2023 in the aftermath of Sri Lanka’s declaration of international bankruptcy. The IMF came in to fulfil its role as lender of last resort. The government of the day bit the bullet. It imposed unpopular policies on the people, most notably significant tax increases. At a moment when the country had run out of foreign exchange, defaulted on its debt, and faced shortages of fuel, medicine and food, the IMF programme restored a measure of confidence both within the country and internationally.

Since 1965 Sri Lanka has entered into agreements with the IMF on 16 occasions none of which were taken to their full term. The present agreement is the 17th agreement . IMF agreements have traditionally been focused on economic restructuring. Invariably the terms of agreement have been harsh on the people, with priority being given to ensure the debtor country pays its loans back to the IMF. Fiscal consolidation, tax increases, subsidy reductions and structural reforms have been the recurring features. The social and political costs have often been high. Governments have lost popularity and sometimes fallen before programmes were completed. The IMF has learned from experience across the world that macroeconomic reform without social protection can generate backlash, instability and policy reversals.

The experience of countries such as Greece, Ireland and Portugal in dealing with the IMF during the eurozone crisis demonstrated the political and social costs of austerity, even though those economies later stabilised and returned to growth. The evolution of IMF policies has ensured that there are two special features in the present agreement. The first is that the IMF has included a safety net of social welfare spending to mitigate the impact of the austerity measures on the poorest sections of the population. No country can hope to grow at 7 or 8 percent per annum when a third of its people are struggling to survive. Poverty alleviation measures in the Aswesuma programme, developed with the agreement of the IMF, are key to mitigating the worst impacts of the rising cost of living and limited opportunities for employment.

Governance Included

The second important feature of the IMF agreement is the inclusion of governance criteria to be implemented alongside the economic reforms. It goes to the heart of why Sri Lanka has had to return to the IMF repeatedly. Economic mismanagement did not take place in a vacuum. It was enabled by weak institutions, politicised decision making, non-transparent procurement, and the erosion of checks and balances. In its economic reform process, the IMF has included an assessment of governance related issues to accompany the economic restructuring process. At the top of this list is tackling the problem of corruption by means of publicising contracts, ensuring open solicitation of tenders, and strengthening financial accountability mechanisms.

The IMF also encouraged a civil society diagnostic study and engaged with civil society organisations regularly. The civil society analysis of governance issues which was promoted by Verite Research and facilitated by Transparency International was wider in scope than those identified in the IMF’s own diagnostic. It pointed to systemic weaknesses that go beyond narrow fiscal concerns. The civil society diagnostic study included issues of social justice such as the inequitable impact of targeting EPF and ETF funds of workers for restructuring and the need to repeal abuse prone laws such as the Prevention of Terrorism Act and the Online Safety Act. When workers see their retirement savings restructured without adequate consultation, confidence in policy making erodes. When laws are perceived to be instruments of arbitrary power, social cohesion weakens.

During a meeting between the IMF Managing Director Georgeiva and civil society members last week, there was discussion on the implementation of those governance measures in which she spoke in a manner that was not alien to the civil society representatives. Significantly, the civil society diagnostic report also referred to the ethnic conflict and the breakdown of interethnic relations that led to three decades of deadly war, causing severe economic losses to the country. This was also discussed at the meeting. Governance is not only about accounting standards and procurement rules. It is about social justice, equality before the law, and political representation. On this issue the government has more to do. Ethnic and religious minorities find themselves inadequately represented in high level government committees. The provincial council system that ensured ethnic and minority representation at the provincial level continues to be in abeyance.

Beyond IMF

The significance of addressing governance issues is not only relevant to the IMF agreement. It is also important in accessing tariff concessions from the European Union. The GSP Plus tariff concession given by the EU enables Sri Lankan exports to be sold at lower prices and win markets in Europe. For an export dependent economy, this is critical. Loss of such concessions would directly affect employment in key sectors such as apparel. The government needs to address longstanding EU concerns about the protection of human rights and labour rights in the country. The EU has, for several years, linked the continuation of GSP Plus to compliance with international conventions. This includes the condition that the Prevention of Terrorism Act (PTA) be brought into line with international standards. The government’s alternative in the form of the draft Protection of the State from Terrorism Act (PTSA) is less abusive on paper but is wider in scope and retains the core features of the PTA.

Governance and social justice factors cannot be ignored or downplayed in the pursuit of economic development. If Sri Lanka is to break out of its cycle of crisis and bailout, it must internalise the fact that good governance which promotes social justice and more fairly distributes the costs and fruits of development is the foundation on which durable economic growth is built. Without it, stabilisation will remain fragile, poverty will remain high, and the promise of 7 to 8 percent growth will remain elusive. The implementation of governance reforms will also have a positive effect through the creative mechanism of governance linked bonds, an innovation of the present IMF agreement.

The Sri Lankan think tank Verité Research played an important role in the development of governance linked bonds. They reduce the rate of interest payable by the government on outstanding debt on the basis that better governance leads to a reduction in risk for those who have lent their money to Sri Lanka. This is a direct financial reward for governance reform. The present IMF programme offers an opportunity not only to stabilise the economy but to strengthen the institutions that underpin it. That opportunity needs to be taken. Without it, the country cannot attract investment, expand exports and move towards shared prosperity and to a 7-8 percent growth rate that can lift the country out of its debt trap.

by Jehan Perera

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MISTER Band … in the spotlight

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MISTER Band: For the past four consecutive years, they have performed overseas, during New Year’s Eve

It’s a good sign, indeed, for the local scene, to see artistes, who have not been very much in the limelight, now making their presence felt, in a big way, and I’m glad to give them the publicity they deserve.

On 10th February we had Yellow Beatz in the spotlight and this week it’s MISTER Band.

This outfit is certainly not new to our scene; they have been around since 2012, under the leadership of Sithum Waidyarathne.

The seven energetic members who make up MISTER Band are:

Sithum Waidyarathne (leader/founder/saxophonist/guitarist and vocalist), Rangana Seram (bass guitarist), Vihanga Liyanage (vocalist), Ridmi Dissanayake (female vocalist), Nuwan Cristo (keyboardist/vocalist), Kasun Thennakoon (lead guitarist), and Nuwan Madushanka (drummer).

According to Sithum, their vision is to provide high quality entertainmen to those who engage their services.

“Thanks to our engaging performances and growing popularity, MISTER Band continues to be in high demand … at weddings, corporate events and dinner dances,” said Sithum.

They predominantly cover English and Sinhala music, as well as the most popular genres.

And the reviews that come their way, after a performance, are excellent, they say, and this is one of the bouquets they received:

It was a pleasure to have you at our wedding. Being avid music fans we wanted the best music, not just a big named band, and you guys acceded that expectations. Big thanks to Sithum for being very supportive, attentive and generous.

The best thing is the post feedback from all the guests. Normally we get mixed reviews but the whole crowd was impressed by you.

MISTER Band was one of our best choices for our wedding.

What is interesting is that for the past four consecutive years, this outfit has performed overseas, during New Year’s Eve, thereby taking their music to the international stage, as well.

The band has also produced a collection of original songs, with around six original tracks composed by the band leader, Sithum Waidyarathne, including ‘Suraganak Dutuwa,’ ‘Landuni,’ ‘Dili Dili Payana,’ ‘Hada Wedana,’ and ‘Nil Kandu Athare.’

Two more songs are set to be released this month: ‘Hitha Norida’ and ‘Premaye Hanguman.’

In addition to their original music, they have also created a strong online presence by performing and uploading over 50 cover songs and medleys to YouTube.

“We’re now planning to connect with an even wider audience by releasing more cover content very soon,” said Sithum, adding that they are also very active on social media, under the name Mister Band Official – on Facebook, Instagram, YouTube, and TikTok.

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