Opinion
A Postscript to ‘Political Crisis: A Way Out’
By Chandra Jayaratne
The Island of Saturday 14th May 2022, published a proposal, submitted by the former President Chandrika Bandaranaike Kumaratunga, to leaders of political parties and civil society organisations, wherein, admirably, the essential need for adequate representations, by youth and women in governance, are given recognition. Prior to that, the Bar Association of Sri Lanka (BASL) had submitted a 13-point proposal to restore economic and political stability in Sri Lanka. The writer respectfully recognizes the aforesaid proposals are caring leadership initiatives of significant value in the current socio-political and economic crisis risking the stability and future of Sri Lanka and its people.
The writer agrees with the short-term focus as set by the BASL stating as its objective:
* To create political, economic and social stability in the country.
* To create an environment to address the fundamental problems that have brought about the current crisis (and imperil future reforms).
* To restructure external debt and enter into appropriate programmes with multi-lateral institutions, including the IMF, and for that purpose to appoint the financial and legal advisers and negotiate a debt standstill pending debt restructuring.
* To obtain bridging finance. The bridging finance together with the savings arising from the debt standstill to be used to procure uninterrupted supply of essentials to the People until such time the debt restructuring, and the IMF programme is in place. This will eliminate the shortages in power, fuel, gas, medicines, food, etc.
* To create an environment to combat corruption and to ensure accountability and strengthening independent institutions.
And towards an overarching requirement of a stable government with the ability to implement reforms, domestically, and the ability/credibility to negotiate with the IMF, other multilateral agencies, and friendly countries to help Sri Lanka get out of the economic crisis.
However, this proposal has failed to take account of the need to use this crisis as an opportunity to introduce critical systems changes demanded by the ‘Aragalaya’ and implement critical change management options for long term good governance with democratic rights, equity, equality, and the rule of law being strengthened.
The writer wishes to take this opportunity to add a postscript to the submission by the former President; which appears to have inadequately focused on the severe economic crisis, threatening Sri Lanka and its people; and disregarded some key demands of the stakeholders of the ‘Aragalaya’ relating to governance failures, rejection of the leaders of the present regime, control of corruption, recovery of proceeds of crime; as well as address important unresolved national questions and the need for strengthening fundamental rights, equity and the rule of law.
The highlights of the post scripts are briefly outlined hereinafter and sets out amendments required to the proposal by the former President, whist incorporating some of the excellent suggestions in the 13-point proposal of the BASL:
1. The Interim Government to be for a maximum period of 18 months, in order to re-establish a stable and solvent governance structure, at the end of which the interim administration stands dissolved, enabling a people’s choice-based new government to be elected
2. The governing party and the leading opposition party to get one nominated member from each of their parties to resign and make way for the nomination, with the concurrence of the Parliament, of (a) a retired Chief Justice with judicial integrity, independence, impartiality and track record of acceptance and (b) a mature politician with public acceptance, integrity, independence and track record of achievement and no allegations of corruption and moral turpitude
3. The incumbent President to resign immediately post 2 above and the nominated member of parliament elected under 2(a) above be elected as the President by the Parliament and such appointee to not engage in executive decision-making nor be a member of the Cabinet: whilst the nominated member elected under 2 (b) be appointed the Prime Minister and bound by a Code of Prime Ministerial Conduct and Ethics, having transparently established the capability (knowledge, skills, attitudes and values) and having duly declared publicly the appropriate declarations of assets/liabilities and all interests of the Prime Minister and his immediate family: with the vacancy in the nominated members created by election of the President being filled in by a economist with extensive experience in public finance and macroeconomic management, who in addition being a person with integrity, independence and track record of achievement and no allegations of corruption and moral turpitude; and such nominee be appointed as the Minister of Finance and Economic Affairs Management. These new appointments to take place at the earliest option.
4. An interim Cabinet be appointed charged with the responsibility and accountability regards the direction and control of the government, being collectively answerable to Parliament and be bound by a Code of Ministerial Conduct and Ethics; with appropriate amendments to article 52 (2) of the constitution where “the Secretary to the Ministry shall be the chief accounting officer of the Ministry and answerable to Parliament and bound by a Code of Conduct and Ethics, and to function in such capacity, subject to the policy direction and guidance of his Minister; and such Secretary shall exercise the control and supervision over the departments of Government or other institutions in the charge of his Minister and be accountable for professional good governance and effective decision-making and implementation, within the functions assigned”.
5. The Cabinet comprising of 15 Ministers be appointed by the President on the recommendation of the new interim Prime Minister and endorsed by a majority of members of the Parliament, post such nominees having established their capability (knowledge, skills, attitudes and values), integrity, independence and track record of achievement with no allegations of corruption and moral turpitude and having duly declared publicly their declarations of assets and a interests of the ministers and their immediate family. The Interim Government, in consultation with all relevant independent groups, including the youth representatives currently leading protests and apolitical Professional/Trade/Civil Society organisations to appoint, with the concurrence of Parliament, an independent Advisory Council, consisting of 15 qualified professionals from disciplines corresponding to the 15 Ministries or relevant to the national economy priorities (as recommended by the BASL); and such Council to be formed in place of the Council of State for National Policy recommended in the former President’s proposal; and this Independent Council should act as advisors of the Cabinet and be consulted on all major policy decisions of the government; the interim government will seek every option to build consensus and support of all parties represented in Parliament and the Advisory Council and where possible key stakeholders of the economy; the interim government will endeavor to publish White Papers on all major policy changes and restructure options proposed and will use such publications to build awareness and debate amongst citizen groups; and take heed of any positive and value adding suggestions emerging from such consultations and public advocacy.
6. The interim government should take immediate steps in resolving to the best of its ability, the shortages of essential goods, medicines and fuel supplies and services experienced by citizens.
7. The currently functioning selected three overseas resident advisors charged with advisory on debt restructure, etc., together with two younger economists resident in Sri Lanka working outside the public services, be appointed as accredited ambassadors of Sri Lanka with Cabinet Ranking; and the five-member team will collectively with the Sri Lanka High Commissioner in India, the Governor of the Central Bank, Secretary to the Treasury and the newly appointed Minister of Finance be responsible to negotiate with the IMF, International Financial Organizations and Donor Countries; and also agree the essential fiscal consolidation measures, steps leading to stability of the financial and banking systems, bridging finance arrangements, agreeing a strategic plan to ensure debt sustainability by 2027, gaining acceptable sovereign ratings for the country and agreeing with creditors a programme of debt restructure; supported where necessary by external consultants and advisors with international expertise; and recommend such measures and action plans to be adopted by the new interim cabinet. The said team may appoint sub-committees made up of technocrats and persons with requisite expertise to support the development of reform agendas covering raising revenue to GDP to 12-15% over the next three years and enhance it to 18% by year six, where the ability to pay by those with capacity to contribute, bear the brunt of the enhanced taxes; and over time the ratio of indirect to direct taxes should move from 80/20 to 60/40;
State expenditure rationalisation, (with special focus on defence, administration and nonessential projects and capex), embedding strict austerity measures, national resource allocation prioritizations and justification assessments on economy, efficiency and effectiveness of approved spends seeking positive socio economic outcomes; and develop key long term budget assumptions, fiscal outcomes and fiscal responsibility key performance targets;
Develop plans to optimize value adding growth in GDP, gradually reaching 5-8% by 2027, with enhanced and diversified export incomes, promoting savings and local and foreign investments; to develop essential reform options, including policy and regulatory changes, digitization, fiscal adjustments and factor productivity enhancements along with other change management restructure options for long term growth and stability
designing an effectively administered ICT driven ‘Aadhaar’ type scheme for establishing a strong social “Safety Net” targeting to protect the interests of the elderly, poor, marginalized and vulnerable segments of society;
Identifying change management and restructure options for improved productivity, technological advancement, human resource development for the next generation of value optimization, quality and outcomes in the operations of ministries, departments, state establishments and state-owned enterprises.
8. The interim Government will be accountable for undernoted legal and regulatory reforms:
a. Promptly bring back the 19th Amendment to the constitution with appropriate amendments that remove well established weaknesses and operational lacunae for effective good governance; with democratic rights, rule of law and justice systems strengthened, whilst enhancing the operational scope and framework, financial independence, transparency, accountability with appropriate checks and balances of the Constitutional Council, Independent Commissions, the Central Bank and the Auditor General.
b. Introduce a new Constitution that abolishes the Executive Presidency replaced with a head of state; strengthens the system of governance with appropriate checks and balances and enhancing accountability of the executive; with no immunity for any actions of governance violating democratic rights, equity and equality of citizens, rule of law, mismanagement and failing to place the interests of the nation and its people first, in all executive decision-making; promoting equitable resource allocations, protection of the environment and recognizing the interests of the poor and vulnerable segments of society; introducing a bill of rights expanding and updating the Fundamental Rights chapter (including Socio Economic Rights): Resolving the National Question and facilitating the devolution of power going beyond the 13th Amendment; equating the rights of all citizens irrespective of race, religion or status and making way for a truly harmonious and peaceful plural society, with equity and equality in all respects enabling the establishment of a truly Sri Lankan identity, that celebrates unity in diversity; and change the electoral system to a mix of first past the post and proportional representation.
c. Introduce required law/regulatory reforms connected with combating corruption and recovery of proceeds of crime, by enacting a Proceeds of Crime Act (including powers of Civil and Criminal Forfeiture and Asset Management); Serious Financial & Organized Crime Agency Act; Company Law Reforms-(Expanding the Provisions of Part XXI- Offences of the Companies Act No. 7 of 2007) and incorporate changes and update bribery and money laundering laws and the criminal procedures code (including incorporating new offences identified in the United Nations Convention on Anti-corruption, e. g. Trading influence; Abuse of functions; Illicit enrichment; Embezzlement of property; Concealment (both private and public sector); Bribery in private sector; Bribery of foreign public officials): Networking the Inland Revenue, Customs, Excise, BOI, SEC, Central Bank and Financial Intelligence Units with a newly established Directorate of Revenue Enforcement and an Independent Office for Serious Financial Crimes prosecution, for collective initiatives in the Recovery of Proceeds of Crime and Illicit Financial Flows;
d. Enact and enforce Codes of Conduct and Ethics governing elected representatives and regulations governing conduct of election campaigns and campaign finances; and introduce necessary amendments to the Declaration of Assets and Liabilities Law enabling the publication of the declarations of Assets and Liabilities of elected officials; and a system of recall where any such elected member with established charges of engaging in any acts of corruption and/or acts of moral turpitude;
e. Enact necessary amendments to the Monetary Law or promulgate new legislation to strengthen the independence of the Central Bank of Sri Lanka and amend the Audit Act to empower the Auditor General to direct law enforcement units to investigate and take action against any acts of Corruption or mismanagement in the state and state-owned enterprises.
f. Set up a Parliamentary Budget Office and strengthen the powers of the Committee on Public Finance, COPE and COPA, empowering them to make recommendations to the law enforcement authorities for action or for the Auditor General to impose surcharge under the Audit Act (duly amended to include the Ministry Secretaries as well). Proceedings of above Committees as well as Consultative Committees of Parliament and Sectoral Oversight Committees be open to the public;
g. Introduce Codes of Conduct and Ethics binding high post holders and senior management in state services and state-owned enterprises and make all public servants and legislators bound by compulsory reporting of noncompliance with Laws and Regulations (NOCLAR)
h. Update the Right to Information Act and Victims and Witness Protection Act avoiding the present shortcomings;
i. enact necessary amendments to the Monetary Law or promulgate new legislation to strengthen the independence of the Central Bank of Sri Lanka
9. All persons appointed to the Constitutional Council, Advisory Council and by the Constitutional Council and other High Post holders be persons with public acceptance, integrity, independence and track record of achievement and no allegations of corruption and moral turpitude:
10. Enact law/regulatory reforms and undertake change management leadership initiatives which improve factor productivity including labour, educational, technological and administrative reforms which enhances opportunities for export of goods and services led growth, foreign direct investments, diversify export basket, improve labour productivity and quality improvements, transparent and cost effective procurement systems and tender awards ( including rationalization of public holidays and lay off commitments)
11. Adopt a foreign policy which supports the long-term national interests;
12. Appoint a Special Presidential Commission of Inquiry to investigate into and report on the persons directly and indirectly responsible for the present state of the economy and purported bankruptcy of the nation, causing so much suffering, losses, mental trauma with disrupted the lives and livelihoods of the stakeholders of the society; and recommend what action should be taken against them in terms of the law and regulations; and what damages can be recovered from them.
Former President’s “Political Crisis: A Way Out” proposal amended as above, read together with the BASL proposal can be taken up by the ‘Aragalaya Group’ in developing the proposed “Galle Face Declaration” to be endorsed by the new interim government as a precondition to the protestors ending this youth led struggle for a system change, combined with a regime change and a new option to select the post struggle a new governance structure and peoples chosen representatives.
Opinion
Sri Lanka’s national security: Justice, reconciliation, and forward-looking vigilance
Sri Lanka stands at a defining juncture where the pursuit of accountability for the 2019 Easter Sunday bombings intersects with fragile economic recovery, communal sensitivities, and renewed demands for political devolution. The arrest of former State Intelligence Service chief Retired Major General Suresh Sallay in February 2026, and subsequent high-level statements linking him to directing aspects of the attacks that killed 279 people, mark a significant escalation in the investigation. Actions such as the impounding of passports of key figures, including former President Gotabaya Rajapaksa and Defence Ministry Intelligence officers, signal seriousness. Yet the process risks being derailed by partisan politics, social media manipulation, and selective narratives. True national security demands that this remains a forensic, evidence-based exercise rather than a political spectacle.
The visible participation of Muslim communities in demanding justice for the victims while articulating long-suppressed grievances represents one of the most important developments. Many within the community are increasingly recognising that they were subjected to a calculated, gradual anti-Muslim agenda in the aftermath of the attacks, one that collectively stigmatised an entire faith group, portrayed them as inherent extremists, and created fertile ground for the radicalisation of vulnerable youth. This manufactured climate of suspicion and marginalisation did not enhance security; it damaged social cohesion and inadvertently aided the very extremist narratives it claimed to counter.
The current government’s handling of the Easter investigations appears to be fostering cautious but noticeable confidence among sections of the Muslim community. When investigations target individuals based on evidence rather than community affiliation, and when senior figures from previous regimes face scrutiny without fear or favour, it sends a powerful message that the state is capable of impartial justice.
This emerging trust is a vital asset in the broader battle against radicalisation. It must be nurtured through consistent, transparent action rather than undermined by political grandstanding or social media campaigns that seek to reignite old fault lines. The Catholic Church’s measured support for the process while insisting on its integrity offers a constructive template that political actors and online platforms would do well to follow.
Parallel to these developments, another significant demand has resurfaced with renewed vigour: calls from the Tamil community, the diaspora, and sections of the international community for the holding of long-overdue provincial council elections. This is not a peripheral governance issue; it is intrinsically linked to national security, reconciliation, and the prevention of future instability in the North and East. Prolonged delays in devolution fuel perceptions of centralised neglect, provide ammunition for external actors seeking to internationalise domestic matters, and risk allowing legitimate grievances to be exploited by fringe elements.
Conducting credible provincial elections would demonstrate the government’s commitment to democratic decentralisation, strengthen local legitimacy, and reduce the space for both domestic radicalisation and foreign interference. Conversely, further postponement risks turning a constitutional requirement into another source of communal tension and international pressure.
The government must therefore treat these calls with strategic seriousness rather than tactical delay. Provincial council elections, conducted fairly and on schedule, can serve as a confidence-building measure that complements the pursuit of justice in the Easter case. Both processes, accountability for past security failures and meaningful devolution, are essential components of a holistic approach to preventing the recurrence of violence, whether from Islamist extremism, ethno-nationalist mobilisation, or hybrid threats amplified through social media.
Economic constraints continue to form the underlying substrate of national vulnerability. While the current administration has maintained a degree of macroeconomic stabilisation under the IMF programme, poverty levels remain elevated, youth unemployment is a persistent concern, and investor sentiment is sensitive to political noise. High-profile investigations that are perceived as selective or politically motivated will deter the very Foreign Direct Investment the country needs to generate sustainable growth and employment. Security and economic resilience are mutually reinforcing; prolonged political turbulence or loss of institutional credibility directly undermines the ability to attract capital and create opportunities that reduce the appeal of extremist ideologies.
On the geopolitical front, the recent visit of General Kevin Schneider, Commander of the United States Pacific Air Forces, for the Indo-Pacific Safety Air Forces Exchange, and US Assistant Secretary of State for South and Central Asian Affairs S. Paul Kapur, who arrived in the island on an official visit, met with the President. Newsfirst.lk highlights both opportunity and the need for careful navigation. Discussions on maritime domain awareness, cybersecurity, and disaster response offer tangible avenues for capacity enhancement. At the same time, Sri Lanka must maintain a balanced engagement with India and China while monitoring broader regional dynamics, including Pakistan’s active mediation role in the US-Iran talks underway in Switzerland. These developments underscore the interconnected nature of Indian Ocean security and the importance of professional intelligence assessments that transcend partisan domestic agendas.
Drug trafficking remains a persistent and serious national security threat. Despite consistent detections at arrival points, particularly at Bandaranaike International Airport (BIA), and within the country, attempts to smuggle narcotics continue unabated. These detections clearly demonstrate that the menace is far from over: demand persists and supply networks remain active. The State Intelligence Service has played a pivotal role in several major detections through its strategic networks and effective fusion of intelligence, enabling more qualitative and targeted operations. However, the operational environment at BIA arrival terminals becomes highly complicated when multiple aircraft land simultaneously.
Many passengers proceed through the “nothing to declare” channel, while customs officers conduct random checks that often create complications for both travellers and enforcement personnel. It would be prudent for authorities to undertake a comparative study of the number of random checks conducted against the number of successful detections achieved, in order to objectively evaluate the effectiveness of this approach. The optimal strategy lies in combining modern technology with intelligence-led operations. In parallel, a sustained public awareness campaign should be launched among travellers, strongly discouraging them from carrying baggage belonging to others, whether known or unknown persons.

Perhaps, the most under-appreciated dimension of contemporary national security is the rise of non-traditional threats. The recurring effects of El Niño and broader climate variability, erratic monsoons, agricultural stress, water scarcity, and potential displacement, carry direct implications for social stability and resource competition. The persistent challenge of Dengue outbreaks further strains state capacity and public health resilience. These are not peripheral issues for intelligence agencies; they are core components of a modern threat landscape that includes hybrid warfare, disinformation campaigns, and climate-induced instability.
National intelligence agencies must expand their analytical frameworks beyond traditional kinetic threats to integrate climate intelligence, health security indicators, and the monitoring of disinformation campaigns that exploit economic hardship or communal grievances. The Easter Sunday tragedy was itself a catastrophic failure of intelligence coordination and threat assessment. Repeating such blind spots in an era of hybrid and non-traditional risks would be inexcusable.
The professional intelligence community has a clear duty at this moment. Its role is to provide objective, evidence-based assessments to the state, insulated from political pressure and focused on protecting the nation rather than serving transient interests. This requires rigorous focus on the actual threat picture: monitoring attempts to exploit the Easter investigations for divisive ends, tracking foreign influence operations, assessing the intersection of economic distress with radicalisation pathways, and integrating climate and health stressors into strategic warning. Inter-agency coordination, professional training, and institutional autonomy are not optional luxuries; they are prerequisites for credible national security.
Sri Lanka cannot afford another cycle in which legitimate demands for justice and devolution are hijacked by partisan actors or amplified into communal polarisation by social media. The emerging recognition within the Muslim community that past anti-Muslim campaigns contributed to radicalisation, coupled with tentative confidence in the current government’s approach, represents a narrow but valuable window. Similarly, addressing the long-standing call for provincial council elections offers a pathway to strengthen democratic legitimacy and reduce external leverage points. Both require the government to demonstrate consistency, transparency, and strategic vision.
Conclusion
Sri Lanka’s national security will not be secured by half-measures or political expediency. The time has come for decisive, professional, and coordinated action across all fronts. The pursuit of justice in the Easter Sunday investigations must remain evidence-driven and impartial, not a tool for partisan score-settling. Meaningful devolution through timely provincial council elections and the full implementation of the 13th Amendment within the unitary framework must be delivered without further delay, as unresolved grievances remain fertile ground for division and external interference.
Drug trafficking and other hybrid threats demand the immediate fusion of modern technology with superior intelligence-led operations, supported by robust public awareness campaigns. Non-traditional threats such as climate-induced instability and public health risks must be elevated to the core of national security planning.
True national security is built on institutional integrity, social cohesion, economic resilience, and strategic foresight. Sri Lanka has paid an unbearably high price in the past for allowing political calculations and institutional failures to override professional security management. The current moment offers a rare opportunity to break that destructive cycle. The government, intelligence community, political parties, religious and community leaders, and all stakeholders must rise above narrow interests. They must choose evidence over expediency, unity over division, and long-term national interest over short-term political gain. Anything less would be a betrayal of the sacrifices made and the future that belongs to the next generation. The choice is clear, and the time to act with courage and clarity is now.
Mahil Dole, SSP (Retired), is fthe former Head of the Counter-Terrorism Division of the State Intelligence Service of Sri Lanka, and has served as Head of the Sri Lankan Delegation at three BIMSTEC Security Conferences. With over 40 years of experience in policing and intelligence, he writes on regional security, interfaith relations, and geopolitical strategy.
This opinion draws on public records and professional experience. The views expressed are personal
By Mahil Dole
Senior Superintendent of Police (Retd.)
Former Head of Counter Terrorism,
State Intelligence Service.
Opinion
Ranasinghe Premadasa: The man who would not take ‘No’ for an answer
Had former Sri Lankan President Ranasinghe Premadasa lived to celebrate his 102nd birthday, it would have fallen on June 23, 2026. Premadasa, a politically self-made leader from humble beginnings, served as the second Executive President of Sri Lanka from 1989 until his assassination in 1993. He was the first non-aristocratic “commoner” to rise to the nation’s highest office, breaking the long-standing dominance of the landed elite, high-caste aristocracy, and wealthy political families. Emerging from modest social origins, Premadasa represented a rare example of social mobility in Sri Lankan politics. He often marked his birthdays in remote villages through the “Gam Udawa” (Village Reawakening) programme.
It is fitting to begin this column with an anecdote connected to Gam Udawa. Following the Gam Udawa ceremony in Buttala, Premadasa took a helicopter ride with several officials and identified a site in Mahiyangana for the next programme. He instructed the Director of Town and Country Planning to prepare a sketch plan for the location.
When the Director later returned to Colombo and met the President, Premadasa asked, “Where is the sketch plan?” Instead of producing a plan, the Director handed over a small piece of paper and said, “Sir, when I stepped out of the vehicle, a youth handed me this note.”
Premadasa brought the note to a meeting at Sethsiripaya attended by nearly one hundred officials and read it aloud. The message stated: “If you visit again, you will not leave alive.”
Holding up the note before the gathering, Premadasa asked sharply: “If a mere threat is enough to stop an officer from carrying out his duty, what use are such officers to the country?”
Ascendency to the Presidency
Premadasa assumed office during one of the most turbulent periods in the country’s post-independence history. Sri Lanka was engulfed in twin civil conflicts while still grappling with the consequences of the sweeping economic and constitutional changes introduced through the open economy reforms and the 1978 Constitution. Poverty had deepened, export growth had slowed, balance-of-payments pressures persisted, and external debt continued to mount. The nation stood politically divided, economically strained, and socially unsettled.
At a public meeting, Premadasa once remarked that the Presidency was not “a crown placed upon my head, but a melting pot.” He believed governance should not remain the preserve of a privileged few. Ordinary people, in his view, had to participate in every aspect of governance — from policymaking to implementation. Citizens should share both the responsibility and the benefits of development.
Premadasa often argued that the root cause of unrest was the reduction of people into “mere voting machines operating once in five years.” It was within this philosophy that he introduced the concept of poverty alleviation into Sri Lanka’s national development agenda. He frequently observed that while institutions existed for every crop, few truly existed for the people themselves.
Janasaviya (People’s Strength) Programme
Out of this thinking emerged the people-centred programme Janasaviya, which combined welfare with production-oriented development. Its objective was not merely to help the poor survive, but to enable them to rebuild their lives with dignity and self-reliance. Purpose was alleviating poverty and empowering low-income households. Initially, Janasaviya beneficiaries received baskets of essential goods, many of which consisted of inexpensive imported utensils and crockery purchased through cooperative channels. Premadasa quickly recognised the contradiction and directed that the baskets instead contain locally produced items such as brooms, pottery, serviettes, and other village products. In this way, he envisioned the village not only as a marketplace, but also as a centre of production and economic self-sufficiency. Approach was to combine welfare assistance with credit, livelihood support, and production-oriented activities aimed at self-reliance.
Landmark 200 Garment Factory Programme
Thereafter, he launched the 200 Garment Factory Programme with the purpose of decentralising industrialisation and create rural employment. Approach was to Utilize U.S. garment quotas while offering incentives and infrastructure support for investors willing to establish factories outside major urban centres. Transformed apparel into a major foreign exchange earner while creating employment opportunities, particularly for rural women. At the time, many mocked the idea, questioning whether the country could survive by “selling underwear to Western markets.” Premadasa, however, remained undeterred. Within a few years, garment factories emerged across rural Sri Lanka, bringing investment, employment, and economic activity to regions long neglected. For the first time, investors moved decisively beyond Colombo into the country’s remote periphery.
Those who attended his weekly review meetings at the BMICH would remember the relentless follow-up that characterized his leadership. Secretaries and heads of institutions responsible for urban development, housing, electricity, telecommunications, water supply, and roads rushed from office to office to ensure they could report back to the President with a simple answer: “Yes, Sir, it is done.”
One incident became emblematic of his problem-solving style. A Ceylon Electricity Board official informed an investor that electricity could not be supplied because there were no poles available in the area. Premadasa summoned the official and asked a single question: “Are there coconut trees in the area?” When the answer was yes, he immediately ordered that the lines be drawn using the coconut trees until proper poles could be installed. The issue was resolved within minutes.
Premadasa personally inspected garment factory construction sites and monitored even the smallest details. During one visit, he noticed that several roofs in the adjoining village remained uncovered. Turning to the factory manager, he instructed that by the time he returned to declare the factory open, every roof must be properly covered.
Other Key Programmes
Gam Udawa (Village Reawakening) Movement
Purpose: To provide housing for the poor and improve rural living conditions.
Focus: Development of model villages with housing, roads, schools, water supply, and health facilities. The programme was Sri Lanka’s most ambitious rural housing initiative that drew international recognition leading to the United Nations’ declaration of International Year of Shelter for the Homeless.
Presidential Mobile Service
Purpose: To reduce bureaucratic delays and bring government services directly to the people.
Method: Ministers, secretaries, and senior officials travelled to the provinces to resolve public grievances on the spot creating direct engagement between the state and rural communities.
Industrial, Educational, and Cultural Initiatives
Established the Koggala Free Trade Zone and transformed the Greater Colombo Economic Commission into the Board of Investment of Sri Lanka (BOI), helping attract export-oriented investment.
Introduced free school uniforms to ease the burden on low-income families.
Established the Tower Hall Foundation to support theatre and music and introduced pension schemes for elderly artists.
Job Bank
On a concept introduced by President Premadasa, the Government established a “Job Bank” with the objective of eliminating arbitrary recruitment practices and political patronage in public sector appointments. Unemployed youth were invited to register with the Job Bank, and President Premadasa directed that vacancies in the public sector be filled from among those registered candidates through competitive written examinations and interviews rather than through ministerial recommendations or political influence.
Resource Profile
On the instructions of President Premadasa, a Resource Profile for every Divisional Secretary’s Division (DSD) was also prepared. These profiles contained detailed information on the resources, development potential, issues, and opportunities within each DS Division. The system became an important planning and development tool and continues to be updated and maintained in DSDs across the country.
Independent Verification of Information
He was also known for independently verifying information rather than relying on a single source. Soon after assuming office, a tragic accident occurred at an unprotected railway crossing in Ahangama, where a train collided with a school bus, killing and injuring students. Deeply disturbed, Premadasa ordered the General Manager of Railways (GMR) to ensure that within two weeks no unprotected railway crossing remained in the country.
When the GMR later submitted a report confirming completion, Premadasa sought independent verification from police stations around the country. One station confirmed that a crossing still remained unprotected. The GMR then faced his day of reckoning.
On another occasion, Premadasa invited opposition political parties for discussions on proposals relating to District Development and Coordination. Arriving early for the meeting, I quietly peeped into the room and saw a man rearranging furniture and shifting chairs. As he turned, smiling, he said, “Ah, you have come.” It was President Premadasa himself.
Impatience with Negativity
His impatience with bureaucratic negativity was legendary. During a discussion on land alienation and ownership, officials repeatedly explained why his proposals could not be implemented. Finally, in visible frustration, he remarked: “I have asked you to do 101 things. Is there not even one thing that all of you can do?” The officials understood the message immediately.
On another occasion, he promised every local authority a set of maintenance machinery before the Sinhala and Tamil New Year. Procurement was entrusted to a senior minister, who failed to secure the equipment in time. Yet once the President fixed the date for the handing-over ceremony, “No” was not considered an acceptable answer.
At the time, I had imported several maintenance machines for distribution among Divisional Secretariats. The minister contacted me urgently and requested that I lend him the machinery for one week. Trusting his assurance, I agreed. The following day itself, the machines appeared at Galle Face Green, where an elaborate ceremony was held with local authority chairmen from across the country. President Premadasa commended the minister for the “prompt completion” of the task and ceremonially handed over the equipment. The following day, the relieved minister telephoned me and said gratefully: “Mr. Maliyadde, you saved my neck.”
Visionary Driven by Action
Premadasa was a visionary driven by action. Under his leadership, garments emerged as Sri Lanka’s first major industrial export, transforming an export economy that for more than a century had depended overwhelmingly on tea, rubber, and coconut. Even decades later, apparel remains the country’s principal industrial export sector.
Though not formally trained as an economist, Premadasa instinctively understood concepts that economists often confined to seminars — growth nodes, export diversification, value addition and forward and backward linkages. He transformed these concepts into practice.
He believed the economy could not depend solely on garment assembly. Garment factories, in his view, had to become centres of wider economic activity that stimulated industrial and social development. He encouraged textile production for local supply to garment factories, while also seeking to integrate Janasaviya beneficiaries into these expanding economic networks. For Premadasa, the garment factory programme was not merely an export initiative; it was a bridge linking the village poor, local entrepreneurs, and international markets within a single chain of opportunity.
Right Man for the Right Job
He also possessed a remarkable ability to identify the right man (not the right-hand man) for the right job. Political loyalty, caste, or creed mattered less to him than competence and commitment. That was why he appointed Susil Siriwardane, a prominent JVP activist who was involved in 1971 insurrection, for which he was detained and convicted by the courts, as the first Commissioner of Janasaviya. Many individuals chosen to lead his programmes came not from his own party, but from outside it.
President Premadasa held office for only four years. Yet within that brief period, he launched programmes with the scale and impact of decades of development.
Leadership Style
Premadasa’s leadership style was defined by relentless follow-up, strict monitoring, and an uncompromising belief that obstacles existed to be overcome. Officials knew they had to be prepared for action at any hour of the day. He cultivated a reputation as a leader who refused to accept the words “cannot” or “impossible.”
His vision sought to combine social welfare with a regulated market economy, pursuing what many viewed as a distinctly Sri Lankan “third path” of development. He remains remembered as a determined and action-oriented leader whose policies left a lasting imprint on Sri Lanka’s social and economic landscape.
(Chandrasena Maliyadde is a former Secretary, Ministry of Plan Implementation. He can be reached at chandra.maliyadde@gmail.com)
by Chandrasena Maliyadde
Opinion
The Plunder of Sri Lanka Through Trade Misinvoicing
A Case Study on Sri Lanka-Thailand Trade
In March 2026, a Washington-based think tank, Global Financial Integrity (GFI), released its report on “Trade-Related Illicit Financial Flows in Developing Asia” for the 2013–2022 period. The report calculates the possible misappropriation of 20.51% of Sri Lanka’s total trade value through trade misinvoicing.
A calculation of Sri Lanka’s exports to Thailand in 2024, using the same GFI methodology, shows a possible misappropriation of 207% of the export value by Sri Lankan exporters and Thai importers
The phrase “plunder of Sri Lanka” normally refers to resource extraction through violent foreign invasions with swords and guns. This article is not about them. This article focuses on a more discreet and genteel version of plunder through illicit financial flows and the stashing of foreign exchange earnings offshore through trade misinvoicing.
What is Trade Misinvoicing?
Trade misinvoicing is the fraudulent recording of key invoice information for the purpose of facilitating illicit cross-border financial flows. One of the easiest ways to identify possible misinvoicing is the study of “mirror trade” data, that is, the comparative analysis of partner-country trade data with Sri Lankan trade data. If this flags discrepancies (value gaps), those are indicators of misinvoicing. These gaps could be due to overinvoicing imports, underinvoicing exports, or phantom imports.
Overinvoicing imports occurs when Sri Lankan importers and their foreign counterparts artificially inflate invoice prices for goods. The importer remits foreign currency abroad to settle the bogus invoice amount in full, and the surplus cash is subsequently split or retained in offshore accounts.
Similarly, underinvoicing exports happens when exporters ship high-value goods (for example, gems) out of Sri Lanka but state a considerably lower price on the customs invoice and the importer pays the low price through official channels. Then the actual market balance is paid directly into foreign bank accounts.
Phantom imports occur when bogus companies are set up to execute telegraphic transfers to foreign suppliers under the pretext of importing goods, which never physically enter Sri Lanka. The recently uncovered large-scale foreign exchange fraud totalling around US$85 million linked to fictitious imports revealed by the Public Security Minister Ananda Wijepala is an example of phantom imports. However, what he revealed was just the tip of the iceberg. The annual loss from overinvoicing imports and underinvoicing exports is much larger and may be as high as US$ billion or higher.
So, whenever value gaps occur in mirror data, they should be treated as risk indicators. If the gaps are significantly large, then the authorities should immediately investigate the relevant invoices with the partner countries to find out the reasons for the disparities.
Misinvoicing in Sri Lanka
In 2017, the Washington, D.C.-based think tank Global Financial Integrity (GFI) released a landmark investigative report exposing massive gaps in Sri Lanka’s trade data due to trade misinvoicing during the period 2005–2014. The estimated amount that may have been misappropriated during the period is US$36.83 billion. This report received wide publicity in Sri Lanka. It is not clear if the authorities had initiated any investigations into this foreign exchange hemorrhage. In March 2026 the GFI released its report on “Trade-Related Illicit Financial Flows in Developing Asia” for the 2013–2022 period. The report calculates Sri Lanka’s trade value gap at 20.51% of total trade.
Underinvoicing in Sri Lanka – Thailand Trade
Why a case study on Sri Lanka – Thailand Trade?
Thailand is a relatively small export market for Sri Lanka and ranks 47th as an export destination. As per Sri Lankan customs data, in 2024 Sri Lanka’s total exports to Thailand were valued at US$ 41 million. However, according to Thai customs data, in 2024 Thailand’s imports from Sri Lanka were valued at US$ 126 million. This is a value gap of US$ 85 million. That is a massive 207% value gap… ten times larger than the global average for Sri Lanka. As the table below illustrates, these large value gaps have been growing over the years. (See Table)
A closer look at the data would reveal that the largest value gaps are under gemstones (HS 710391). It is common knowledge that the Sri Lanka–Thailand gem trade suffers from prevalent underinvoicing, resulting in millions of dollars in lost export revenue. Yet, it appears that Sri Lanka Customs and the National Gem and Jewellery Authority (NGJA) have not intervened to curtail this practice. One may argue that the trade ministry, the NGJA, or the customs do not routinely analyse mirror data. However, as Thailand is the third-largest market for Sri Lankan gems, the NGJA should have a very good knowledge of that market, including Thai customs statistics. In-depth analysis of Thai customs data is also a main responsibility of the Sri Lanka embassy in Bangkok.
Sri Lanka-Thailand Free Trade Agreement (SLTFTA)
In addition to that, Sri Lanka commenced negotiations for the Sri Lanka-Thailand Free Trade Agreement (SLTFTA) in 2018. After multiple rounds of negotiations covering trade in goods, services, investments, and customs cooperation, both nations officially signed the SLTFTA in February 2024. While preparing for these multiple rounds of negotiations, Sri Lankan trade negotiators and the embassy in Bangkok should have extensively analysed the Thai customs data. They should have also known Sri Lanka’s export data like the back of their hands. Then, didn’t they discover these massive discrepancies in data sets? If they did, did they address them during the negotiations?
Whatever happens, the gaps keep growing.
So, now it is time for the appropriate agencies to start investigating these enormous value gaps … after all, a massive US$ 85 million, 207% value gap is simply not loose cash.
(The writer can be reached at enadhiragomi@gmail.com) )
By Gomi Senadhira
-
News6 days agoCreditor receives USD 2.5 mn as Lankan public bears loss from theft of Treasury funds
-
News5 days agoCreditor not yet paid
-
News5 days agoConsumers bearing 22% tax burden despite 18% VAT claim: Dr. Harsha de Silva
-
Opinion7 days agoBeyond diagnosis: A strategic design for 7% growth by 2029 (Part I)
-
Features4 days agoNanda Pethiyagoda Wanasundara as three generations of family saw her
-
Opinion6 days agoSriLankan Airbus struck by lightning
-
Features3 days agoSri Lanka developing independent hydrographic capabilities
-
Latest News3 days agoSooryavanshi thumps fastest List A fifty as India A win tri-series
