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Opinion

Accountability needed to make debt restructuring more equitable

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by Jehan Perera

President Ranil Wickremesinghe notched up another achievement when Parliament ratified the Domestic Debt Restructuring (DDR) programme with a majority of 60 votes, with 122 members voting for and 62 against, with 40 abstentions. Parliamentarians who would need to think about their re-election prospects would have been reluctant to vote for a programme that imposes more burdens on an already burdened population.

But the President stood his ground, and by his vision of the country’s economic future, and the rest of the government acquiesced. The President has been successful in steering the ship of state into calmer waters. He is also setting in place laws, like the proposed Anti Terrorism Act, the Broadcasting Authority Bill and the anticipated NGO Act, which could be used in a sophisticated way to silence critics and to immobilize them.

Now that the ship is nearing safe harbour, and the necessary second tranche of IMF support, the challenge for him will be to ensure that some of the more ambitious members of the crew do not think they can manage without him. It is frightening to think of how the Anti Terrorism Act, the Broadcasting Authority Act and the NGO Act could be used if that arsenal of repressive laws was to be in the hands of those who may choose to act in the manner of pirates.

President Wickremesinghe took charge of the ship of state after it had been driven into the midst of a cyclone by another skipper and his crew. In both 2001-04 and again in 2015-19, the President over-estimated his ability to outwit and outmaneuver the others he was sharing power with. On this occasion, too, there is a danger of a repeat. A foretaste of things to come was displayed by the absence of some of the top leaders of the ruling party when the vote was taken.

The passengers on the ship of state need to be treated better so they will not support a change of skipper in the case of a revolt by the crew. There is no question that the burden of the DDR programme has been laid on the masses of people. It comes after an initial inflation rate of 70 percent last year that virtually halved the savings of the people has been followed by continuous inflation although now at a lower rate, said to be around 12 percent last month. In its DDR plan, the government has taken care to safeguard the remaining half of the people’s savings by treating the banks favourably.

In so safeguarding the banking system, the government has also safeguarded the interests of the corporate sector who generate new wealth. It has also acquiesced in the unjust argument of international creditors that the local population should shoulder the pain of losing part of their wealth. The international creditors knew the risks they were taking when they invested in Sri Lankan bonds, they did so voluntarily because of the huge profits they could make. By way of contrast, the Sri Lankan people who are now called upon to share the burden of debt restructuring with them had no such options while those who were responsible for bringing Sri Lanka to this sorry state are continuing to benefit from the reforms being instituted.

INEQUITABLE TARGETING

It appears that the main casualty of the DDR programme are the pension funds (EPF and ETF) which the government established as one-time payments made at the time of retirement and as an alternative to providing people with a lifelong pension. Although Sri Lanka has long prided itself on being a welfare state that provided everyone with free health, education and foodstuffs (at one time), it never provided universal social security so that those who have no jobs or who are too old to have jobs can survive with a measure of dignity.

The government’s decision to target the EPF and ETF pension funds for a 30 percent tax is unjustifiable, even though the government has tried to justify it. The government has stated that the pension funds have only been taxed at 14 percent whereas the banks have been taxed at 50 percent. The pension funds are being offered a Hobson’s choice.

Thomas Hobson (1544–1631), a horse owner in England, is reputed to have offered customers the choice of either taking the horse in his stall nearest to the door or taking none at all. The pension funds are being offered the option of having their income taxed at 30 percent which is more than double their current rate or agreeing to have their investments in government bonds receive much lower interest payments.

The problem with giving the pension funds the option of paying high tax rates or obtaining low interest rates is that pension funds consist of aggregates of individual entitlements which, if they were taxed individually, would be subject to only a low level of tax. This is as it should be, as these relatively small EPF and ETF entitlements, a few million rupees for the vast majority of EPF and ETF holders, are going to be their only savings for them to live the rest of their lives. Sri Lanka does not provide lifelong social security or pensions (other than to public servants) like most other civic-minded countries do.

In addition, contributions to EPF and ETF have been made after paying taxes prior to making remittances. From this perspective, contributors are being taxed twice.

The unfairness of using the EPF and ETF funds as the way to reduce the government’s debt obligations is made worse by two omissions. The first omission is that the government is not taking measures to recover the massive loans given by banks, particularly the state banks, to errant corporate entities and politically connected individuals. The second omission is not taking measures to recover stolen assets. This was a key demand of the protest movement last year that brought President Wickremesinghe unexpectedly and serendipitously to power.

NO ACCOUNTABILITY

A key opposition leader Prof G L Peiris has summarized the injustice of the government’s DDR programme. He has said of the investors who are being protected that “Their motive was to make use of the perilous state of our economy to make a killing. They sought unconscionable profits in as short a time as possible. While the rates payable to these wealthy investors are left untouched, interest to be earned by the working people who are beneficiaries of the EPF has been reduced by the rate of income tax payable by the EPF being increased from 14 percent to 30 percent if fund declined to participate in the seriously flawed DDO exercise,”

Newspaper editorials have made these points. The Sunday Times has said “These economic reforms will need to extend for many years to come for favourable results to be seen. This may be only phase one of the DDO. The question every citizen asks, however, is; why are the twin ‘untouchables’ – the ten big debtors – the big boys, the local Robber Barons, who have borrowed multiple billions from local banks and not settled their loans but who continue to laugh all the way to the banks are not touched; and is it because of their political connections. And why those responsible for the country’s economic misery are issued with a ‘Get out of Jail’ card as well?”

The Island

newspaper in its editorial has said “The EPF by statute was required to invest a vast majority of their funds in government securities which till Thursday were considered gilt-edge investments. The shenanigans of the EPF in investing in the stock exchange and being used as a victim of pump-and-dump scams are well known. No one has been brought to account for those misdeeds, but millions of taxpayers are once again asked to share the pain of nursing a bankrupt nation to viability.” What is notably missing in the government DDR programme, and in its overall governance, is accountability.

Since the war ended bloodily on the military battlefield, Sri Lanka has been hauled over the coals in international human rights forums, especially the UN Human Rights Council in Geneva. The missing dimension there, too, is accountability for serious human rights violations. The point of going through the transitional justice process of truth, accountability, reparations and institutional reform is to ensure non-recurrence.

The same holds true for economic crimes, such as those that brought down the economy of a country that had reached upper middle income status in 2018 by those who showed no responsibility in terms of protecting national security and the national economy. The ship of state needs a new crew who would be accountable to the passengers so that the vicious cycle of inefficient and dishonest governance, corruption and economic collapse will not recur.



Opinion

Appeal for tobacco-free generation policy in Sri Lanka

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Open letter to President Anura Kumara Dissanayake

We respectfully call on Your Excellency and the Honourable Minister of Health to adopt a Tobacco-Free Generation policy, that prohibits the sale of all tobacco products to any person born on or after 01 January, 2010.

It is a futuristic, step-wise commitment to the children of our nation. Tobacco is the most destructive commercial product in the world, engineered deliberately by an industry that profits from it. Our children deserve to inherit freedom from this substance that kills one of two of its users. This appeal is based on the following grounds.

* In Sri Lanka it is estimated that tobacco kills 20,000 people annually, in addition to causing widespread economic losses which was estimated to Rs. 214 billion in 2019. This is in addition to the misery that tobacco causes to its users and families due to dependence, expenditure, economic loss and from diseases caused by tobacco. These diseases range from heart disease, strokes, and cancers to dementia and blindness. It is also a gateway drug to other substances including cannabis and heroin.

* It is well known that the tobacco industry deliberately and systematically targets young people through digital media, point of sale displays and product design. Children initiated into tobacco use during adolescence bear lifelong health consequences, contributing to reduced workforce productivity, increased healthcare costs and preventable premature death. Sri Lanka’s ageing population and declining birth rate make the health of younger generations a matter of direct national economic relevance. A Tobacco-Free Generation policy addresses these harms at source, with long-term benefits to public health, workforce capacity and health system sustainability.

* This is also a policy grounded on international commitments of Sri Lanka, as well as its own national laws. Sri Lanka is a State Party to the WHO Framework Convention on Tobacco Control (FCTC) – being the first country in Asia to ratify it – as well as the Convention on the Rights of the Child, the International Covenant on Economic, Social and Cultural Rights, and International Labour Organisation Conventions. Collectively, these instruments require states to protect children from preventable harm, uphold their right to the highest attainable standard of health, and shield them from commercial exploitation. Sustainable Development Goals further commits all signatory nations, which includes Sri Lanka, to strengthen FCTC implementation as a specific development obligation.

* The National Authority on Tobacco and Alcohol Act No. 27 of 2006 already mandates discouraging tobacco use among children and curtailing their access to tobacco products. The proposed policy is consistent with and is a direct extension of these existing obligations of this Act.

* This policy is by design a long-term measure. Its public health impact will be realised progressively as successive groups reach adulthood, free from tobacco initiation. Similarly, any effects on tobacco-related employment, revenues, retail and cultivation will unfold gradually over many years, providing ample time for affected industries and livelihoods to adapt other alternatives.

* The Tobacco-Free Generation model has gained significant momentum internationally. The Maldives became the first country in the world to enact such legislation, prohibiting tobacco sales to all persons born after 01 January, 2007. The United Kingdom followed, with the Tobacco and Vapes Act in 2026, permanently banning tobacco sales to anyone born on or after 01 January, 2009, Canada, Denmark, Singapore and the European Union are each at various stages of discussing, examining or adopting comparable measures. The policy is no longer at the margins of tobacco control debate.

Sri Lanka is no newcomer to this fight against this killer substance. In 2003, Sri Lanka ratified the WHO Framework Convention on Tobacco Control (FCTC) as the first country in Asia and the fourth in the world to do so. The Sri Lanka National Authority on Tobacco and Alcohol Act has been considered one of the best examples of comprehensive tobacco control laws during the last 20 years. As you are aware, this law was enacted, despite strong and sustained opposition from the tobacco industry.

Every day this policy is delayed, another group of Sri Lankan children are exposed to an industry whose profit depends on recruiting them. As around 50 people are killed by tobacco use each day in Sri Lanka, the industry needs to snare at least 50 new users daily to maintain its profits.

Sri Lanka has the legal framework, the international standing and consensus to act. Therefore, we earnestly urge Your Excellency and the Honourable Minister to take this step not only as a matter of sound public health policy, but also as a demonstration of your commitment to the wellbeing of the of children and young people who will define Sri Lanka’s future.

The Presidents of the following professional Colleges and Associations have strongly endorsed and signed this appeal to Your Excellency. This list is annexed for your perusal.

We assure that we stand ready to support Your Excellency in this effort in every way we can.

Dr. Manilka Sumanatilleke

President, Sri Lanka Medical Association

Dr. Anula Wijesundere

Chairperson, Expert Committee on Tobacco, Alcohol and illicit Drugs

President of Ceylon College of Physicians

Prof. Namal Wijesinghe

President of The College of Surgeons of Sri Lanka

Prof. Ajith Malalasekera,

President of Sri Lanka College of Obstetricians & Gynaecologists

Prof. Rukshan Fernandopulle,

President of College of Peadiatricians of Sri Lanka

Prof. Pujitha Wickramasinghe,

President of Sri Lanka College of Pulmonologists,

Dr Sumana Handagala,

President of Sri Lanka College of Cardiology

, Dr Asunga Dunuwille,

President of Sri Lanka College of Oncologists

, Dr Sanjeewa Gunasekera,

President of Ceylon College of Critical Care Specialists,

Dr A. D. Mudalige,

President of Association of Sri Lankan Neurologists,

Dr Dilum Palliyaguruge,

President of Sri Lanka College of Haematologists,

Dr T. Sooriyakumar,

President of the College of Ophthalmologists of Sri Lanka,

Dr K. R. Dayawansa

President of Sri Lanka College of Psychiatrists,

Dr Dasanthi Akmeemana

President of Sri Lanka College of Endocrinologists,

Dr Tharanga Samarakoon,

President of the College of General Practitioners of Sri Lanka,

Dr Pushpa Weerasinghe,

President of the College of Community Physicians of Sri Lanka,

Dr Vindya Kumarapeli,

President of Sri Lanka College of Radiologists,

Dr. Nayana Samarasinghe,

President of Sri Lanka College of Dermatology and Aesthetic Medicine,

Dr. Nayani Madarasingha,

President of the College of Dentistry and Stomatology,

Dr Pemith Liyanage

CC: Hon. Dr Nalinda Jayatissa, Minister of Health, Dr Anil Jasinghe, Secretary, Ministry of Health

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Opinion

Prisoners are human beings

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In developed countries such as US, prisons are normally built, far away from City Areas because of the risk of prison breaking as happened recently in Negombo. For an example, just imagine what would be the fate of people around Colombo, if an attempt to break the jail in Welikada become a success. Therefore, it is necessary to introduce strategies to discipline our prisoners to behave as humans rather than simply displaying above message to the people living outside of the prison, as happened in Sri Lanka. To materialised above idea. it is necessary discipline prisoners mentally before they are released. As a Buddhist country we could develop our own model based on Buddhist Stanza such as Wanaropa Sutta to mentally discipline the prisoners. According to that Stanza, people would naturally get self-disciplined themselves while growing trees

The World Health Organization (WHO) reports, that the food not only affects physical and mental health, but is also key to successful rehabilitation and resettlement after release of prisoners. Recognizing this, many organisations and correctional facilities are striving to create a stronger and more sustainable food system among prison populations, which totaled more than 10.35 million globally in 2016, according to the World Prison Brief.

Based on above observations, we could creatively plan to relocate our prisons outside cities. For an example, already ecologically damaged area adjacent to Wilpattu Sanctuary could be used to build an ecofriendly prison. It should be designed with qualified Landscape Architects specialized in designing ecofriendly prisons as adapted in other countries. Those projects should be a joint effort with prisoners because the prisoners themselves should also become the partners of the project while rejuvenating original forest cover after project completion. While creating the forest cover, in the case of Wipattu, we could also use our traditional Chena Cultivation approaches which are now treated in developed countries as most sustainable land use method, to produce healthy foods without damaging eco systems.

By that approach, we could also transform whole prison premises to Organic Food Production Farm, managed by the prisoners themselves. This is very common in developed countries. In my view, the prisoners serving long term jails are ideal for this effort. After their release, they would definitely duplicate their experience in their residence areas rather than repeating crimes as happening now days. They also could be entitled for any profits generated from the project which takes about 5 years for completion. Income generating from farms could be deposited into the bank accounts of prisoners in order to use it after their release.

Another potential area for this intervention is Kandakadu Prison, which was an Agriculture Farm before it was transformed to a rehabilitation camp. Being located adjacent to an area with elephant population and the Beach in Batticaloa, eco-tourism hotel might be the best option for this area. Income generation from tourism is the return on investment which could be used to duplicate same concept to similar locations. Another potential area is the Right Bank area of Maduru Oya located near an Army Camp. Animal Husbandry is ideal for this area. Another potential area is Manthieu island, Batticoloa.

Capital required to invest for this type intervention could be generated by selling the urban areas currently allocated to prisons. Sri Lanka Army could be the ideal implementation agency mainly because of possible reluctances of Prison Officers to work in remote areas such as Wilpattu.

Mahinda Panapitiya

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Opinion

Resplendent isle in transit: The misery of getting from A to B

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Train service in Sri Lanka

For centuries, many travellers have waxed eloquent about Sri Lanka, the “Resplendent Isle.” They spoke of lush tea estates, golden shores, and a spirit of much-admired spontaneous hospitality that defined our Pearl of the Indian Ocean. But today, the residents of this isle know a different reality; one not of postcards, but of grease, grit, and the grinding misery of a transport system, virtually in terminal collapse. To move from Point A to Point B in modern Sri Lanka is no longer a simple errand; it is a “Herculean effort” of survival against a backdrop of state incompetence, private-sector thuggery, total disregard for human decency and a government that seems to have outsourced its conscience to the highest bidder.

For the millions who call this thrice-blessed island home, the daily reality of navigating it by any form of transport has become a “major catastrophe” of Dickensian proportions. To move from Point A to Point B in 2026 is no longer a simple logistical task; it is a distasteful test of human endurance, a drain on the spirit, and a gamble with one’s own safety. The current transport status of Sri Lanka is not merely “poor”, a terminology that defies even proper definition. It is a monumental systemic failure, a toxic cocktail of state negligence, private-sector extortion, and a total collapse of regulatory oversight.

The Iron Horse in Decay: A Rail Service in Tatters

At the heart of our transit woes is the state-run surface rail service. As the only transport entity exclusively handled by the government, the railways should be the backbone of our economy. Instead, they have become a testament to nonchalant and omnipresent bureaucratic apathy. The carriages, many of which look as though they have not seen a lick of paint or a structural repair since the mid-20th century, are in a state of advanced decay.

The statistics tell a grim story. Derailments have become so frequent that they are no longer headline news but a daily footnote in the lives of commuters. These “accidents” are rarely the acts of God; they are the inevitable results of poor maintenance of tracks and rolling stock. Unacceptable delays are now the standard operating procedure. A journey that should take an hour often stretches into three, leaving students, office workers, and labourers stranded on sweltering platforms while the authorities offer nothing but silence or hollow excuses. While other nations race toward high-speed travel connectivity, our “Queen of Jaffna” and “Udarata Menike” crawl through a landscape of systemic neglect.

The symptoms are visible to any commuter: rusted carriages with leaking roofs, seat upholstery that has not seen a deep clean since the 1970s, and an electrical system prone to sparks and darkness. But the issues run deeper than aesthetics. We are witnessing a terrifying frequency of derailments, often blamed on “technical faults” that are actually the predictable results of poor track maintenance and a lack of spare parts. Accidents at unprotected crossings continue to claim lives, while “unacceptable delays” have become the only predictable feature of the timetable. For the office worker in Colombo Fort or the student in Peradeniya, the train is no longer a vessel of progress; it is a gamble with time and safety.

The Bus “Mafia” and the Ransom of the Commuter

If the rail service is a ghost of a bygone era, the fee-levying bus service is a modern-day war zone. The landscape is split between the state-run Sri Lanka Transport Board (SLTB), burdened by a very poorly maintained fleet of ageing buses and a massive and aggressive fleet of private buses, which outmatch and outperform the state-run flotilla, not by efficiency but by sheer intimidation. It is absolutely crucial to note that neither serves the public. The SLTB really operates a skeletal, poorly maintained fleet that barely scratches the surface of demand. The private buses are a law unto themselves.

At the heart of the private transport sector lies an association that critics have aptly dubbed a “Mafia.” Headed by the influential figure colloquially known as “Bus G”, this association holds the entire nation’s commuters to ransom. At the drop of a hat, they can paralyse the country with “trade union action” that are little more than unsophisticated blackmail. In a telling ransom note, whenever a policy change or a fuel hike threatens their bottom line, the buses disappear from the roads. The result? Thousands of citizens are stranded in the blistering heat, watching their productivity and dignity evaporate while the “association” negotiates with a government that appears to be absolutely terrified of their political muscle.

There is a dark irony in the politics of it all. The kingpins of this “bus mafia” openly boast that they were instrumental in bringing the current political powers into office. Consequently, the government appears not just toothless, but complicit. While the public suffers, the state turns a blind eye to overcrowding, reckless driving, and the use of nasty, addictive drugs by the staff, which turns our highways into graveyards. The powers-that-be do not have the gumption to call a spade, just that, a spade, and rein in the miscreants, using the finest employment of the laws that govern this country.

The Law of the Tuk-Tuk: A Free-for-All on Three Wheels

Descending further into the chaos, we find the omnipresent three-wheeler and taxi services. Once a convenient alternative, the “Tuk-Tuk” has become a law unto itself. In a country where the cost of living is already spiralling, these unscrupulous operators have created a “free-for-all” fare system. There is no central control over rates; instead, passengers are forced to haggle or succumb to whatever arbitrary figure the driver decides upon. For those who can afford to bypass the buses, the totally inconsiderate charges of three-wheelers and private taxis offer no sanctuary. What was once a convenient last-mile solution has devolved into a predatory racket. The tuk-tuk services have become stallions of self-importance, operating without any meaningful oversight of rates or conduct.

Commuters are met with the nonchalant refusal of short-distance hires. Drivers, seeking to “make a fast buck,” prioritise long-distance hauls where they can extort exorbitant, unmetered fares. In the absence of a standardised digital fare system enforced by the state, the passenger is always the loser. The arrogance is palpable, and respect for fellow humans has been thrown out the window. These operators behave as if they own the asphalt, often claiming that their collective vote base was the kingmaker for the current political establishment. This perceived “immunity” has bred a culture of impunity where the commuter is treated as a nuisance rather than a customer.

For the elderly trying to reach a hospital or a worker trying to get home during a rainstorm, the “refusal” has become a standard, insulting rejection. The fee-levying taxi services, though slightly more professional in appearance, operate with a similar mercenary mindset, exploiting the desperation of a public that has no other choice.

The RMV Mess, the Registration Trap and the Police Ambush

For those who have attempted to escape the public transport nightmare by purchasing their own vehicles, a different kind of trap awaits. The government has allowed the mass import of private vehicles, including two-wheelers, but the Registrar of Motor Vehicles (RMV) has become a black hole of inefficiency. Delays in vehicle registration now run into several months. Despite a surge in private vehicle imports, the bureaucracy has ground to a resounding halt. Vehicle owners face “blatant delays” in registration that extend for several months, leaving them in a bureaucratic and legal limbo.

The situation is worsened by the government’s decision to halt the private-sector issuance of number plates, centralising it into a system that is currently a “total mess.” Tens of thousands of vehicles are forced to ply the roads displaying only engine and chassis numbers, a temporary measure born of necessity. Yet for all that, and totally against even a minuscule iota of any consideration, the Police Department seems to have missed the memo and become a set of hungry predators. Officers wait in ambush, charging these owners with hefty fines for being on the road without official number plates; plates that the state itself has failed to provide. It is an avaricious cycle, where the state fails to register your car or motorcycle, and then the state’s law enforcement arm punishes you for that very failure. Rather than focusing on the blatantly reckless bus drivers or the lawless Tuk-Tuks, Police Officers wait in ensnarement to pounce on these “unregistered” vehicles. Even when owners produce documents proving the delay lies entirely with the RMV, they are charged and fined. The message is clear: the citizen must pay for the government’s failure.

The Prohibitive Cost of Mobility

Overseeing all of this is the crushing weight of fuel prices. The government continues to raise the cost of petrol and diesel with scant regard for the downstream consequences. These so-called “cost-reflective” adjustments may look good on a balance sheet in Washington or at the International Monetary Fund, but on the ground in Colombo and Kandy, they are prohibitive. Every hike in fuel prices triggers a “ripple effect” that raises the price of bread, vegetables, and, of course, the very transport that people use to get to work to pay for those goods.

Finally, a Nation at a Standstill

The transport crisis is not just a logistical problem; it is a moral one of utter social degradation. It reflects on a government that has abandoned its primary duty: to provide the infrastructure for a functioning society. We are living on a “glorious isle” where the beauty of the landscape is now obscured by the soot of a broken bus and the stress of an uncertain commute. Going from Point A to Point B has become a major travail of unbelievable misery.

Overseeing this chaos is a government that views the fuel pump as an Automated Teller Machine (ATM). The cost of all fuel types, from petrol to the diesel that powers the nation’s mobility has reached “absolutely prohibitive” levels. With scant regard for the domino effect on the cost of living, the authorities and the powers-that-be continue to raise prices, fuelling a major catastrophe of economic inflation.

For the average Sri Lankan, the “travail of unbelievable misery” is now constant. We are a nation on the move, but we are moving towards a cliff from which we are likely to fall into an abyss of no return. Until the transport sector is stripped of its political “protectors” and returned to the service of the people, this “Resplendent Isle” will remain a beautiful prison for those trying to get from Point A to Point B.

If the current administration continues to protect the infamous “mafias”, ignore the decay of the rails, and profit from the administrative chaos of the RMV, and totally fail to get their act together, they are not failing just the transport sector; they are in fact failing the very heart of the nation for sure. Our Motherland, Sri Lanka, deserves a whole lot better than a state of an ever-present and unending transit catastrophe. All the rhetoric about a rich country and a beautiful life that was promulgated in the not-too-distant past remains only as unbelievable wishful thinking.

By an Aficionado

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