Opinion
Alternatives in the Transition from Capitalism
Sumanasiri Liyanage (“Transcending Capital-Labour Relation:A Note on Social Entrepreneurship”, 10 November) makes an interesting point about “social enterprises”, co-operatives, worker-co-operatives and the like.
He argues that structurally, many of these enterprises are bureaucratic, and that “many social enterprises, having failed to make sociality their ‘inner’ and ‘outer’ characteristics, show a tendency for degeneration, putting aside their social characteristics and creating a strong permanent bureaucratic apparatus. The main concern of this bureaucratic apparatus is not profit, as in private enterprises, but ‘income’ as a revenue.”
There is a great deal of truth in what he says. In a capitalist system, social enterprises, by their very need to exist in that milieu, must look to profit. Indeed, as one participant in a recent online conference of worker-co-ops in the USA commented to me, they seem to be more concerned in their engagement with the capitalist system, rather than with expanding a socially-owned economy.
“Yes, I see the emphasis on ‘income’,” my informant tells me, “especially here as initial funding for co-ops,etc., comes from non-profit foundations that emphasise ‘entrepreneurship,’ also ‘social enterprise’ is just seen as for profits with some social mission, either corporate ‘responsibility’ or community contributions, or a social service abandoned by the State.”
However, exceptions to this rule do exist. My informant, who consults for worker-co-ops in the US, thinks that these are more concerned with social issues than with mere profit, although they do realise the need for surplus income, in order to survive and expand. Exemplifying this attitude, the newly-formed Rhode Island Political Co-operative, which won democratic primaries, as well as seven seats in the state’s General Assembly, and two city council seats, campaigned on socio-economic issues, such as a $15 minimum wage, the Green New Deal, single-payer healthcare, criminal justice reform, affordable housing, quality public education, immigrant rights, and getting money out of politics.
Liyanage should look at the problem as a Marxist. Historically, social change has taken place through the resolution of internal contradictions, but has been accompanied by the establishment of institutions which pre-figure the next social stage. In Hegelian terms, the transformation of quantity into quality.
In Europe, the transition from slavery to serfdom did not take place in a vacuum. For example, serf-based production emerged within the slave-holding Roman Empire, the collapse of which caused the transition to feudalism. Similarly, bourgeois institutions, such as banks and manufacturing concerns emerged in feudal society: joint-stock companies appeared (stillborn in the first millennium in China) in the 13th century in Europe. These proliferated within pre-capitalist societies, laying a transformative foundation until a cusp was reached, and the bourgeoisie seized power, carrying out a metamorphosis of economy, society and polity.
One could, realistically, expect a similar mechanism to occur prior to a transition to socialism. Indeed, the USSR, during the “New Economic Policy” period, encouraged the establishment of worker-co-ops and farmer-co-ops. Lenin believed that co-operatives, particularly producer-co-ops, held the key to building a socialist society. He wrote in 1923 (“On co-operatives”, Pravda, 26-27 May 1923) that the only task left was “to organise the population in co-operative societies.”
Apart from farmer collectives, Lenin also encouraged “Big Bill” Haywood, the US trade unionist, to set up the Kuzbass Autonomous Industrial Colony, which brought together American and European workers with Soviet ones in a giant worker-co-op: dissolved, unfortunately, in 1926. Hence, co-operatives, and particularly producer co-operatives, are part of the practical Marxist tradition.
The “father of socialism in Sri Lanka”, Philip Gunawardena, encouraged the creation of multi-purpose co-operative societies (MPCSs), both for the promotion of collective activity, and as potential units of rural democracy. During the 1970-75 United Front Government, several farmer co-operatives emerged in Sri Lanka, as well as a handful of worke-co-operatives (notably a steel-making co-op in Moratuwa). So the tradition exists on the Sri Lankan Left as well.
Of course, producer-co-ops by themselves cannot, as utopian socialists such as Robert Owen and Charles Fourier imagined, guarantee the transition to socialism (any more than the emergence of capitalist enterprises in pre-capitalist societies ensured the success of the bourgeois revolution). As both Marx and Lenin pointed out, the necessary condition for this transition lies in the class struggle.
However, these institutions may prove to be essential allies in the class struggle – their very existence contradicts the bourgeois idea of private property, as against collective property. “Under private capitalism,” Lenin pointed out, “co-operative enterprises differ from capitalist enterprises as collective enterprises differ from private enterprises.”
Marx (in his ‘Inaugural Address of the International Working Men’s Association”) had this to say about workers’ co-operatives:
“The value of these great social experiments cannot be overrated. By deed instead of by argument, they have shown that production on a large scale, and in accord with the behests of modern science, may be carried on without the existence of a class of masters employing a class of hands; that to bear fruit, the means of labour need not be monopolised as a means of dominion over, and of extortion against, the labouring man himself; and that, like slave labour, like serf labour, hired labour is but a transitory and inferior form, destined to disappear before associated labour plying its toil with a willing hand, a ready mind, and a joyous heart.”
On a practical level, the burgeoning Latin American “Solidarity Economy” movement has attempted to build alternatives to capitalist institutions, challenging capitalist property relations, as part and parcel of a class-based revolutionary process. Hence, rather than merely condemning actually existing worker co-ops as bureaucratically degenerated, commercialised enterprises, it may be more constructive to regard them as part of the solution to a transition from capitalism, and consider how these institutions may be reformed, structurally and ideologically, from within.
SAVITHRI GURUGE
Opinion
Sri Lanka’s geopolitical positioning for future prosperity
By Chula Goonasekera
For the LEADS Forum (admin@srilankaleads.com)
Sri Lanka’s future prosperity will depend on how effectively it positions itself within an increasingly complex global environment. At a recent LEADS Forum discussion (https://youtu.be/Bbr3e_qU1Fw), veteran diplomat Prasad Kariyawasam, former Secretary to the Ministry of Foreign Affairs, High Commissioner to India, Ambassador to the United States, Ambassador /Permanent Representative to the UN in New York and Geneva —outlined the strategic choices Sri Lanka must make to secure long term stability and economic advancement. Kariyawasam offered a rare blend of historical perspective, diplomatic experience and practical guidance.
His central message was clear: Sri Lanka must exercise strategic agency—engaging all major partners while safeguarding its national interests.
Foreign Policy as an Extension of National Aspirations
Foreign policy, Kariyawasam emphasised, is inseparable from domestic priorities. As your text notes, “foreign relations often reflect the medium- and long-term aspirations of a country’s people and its leadership.” Governments must therefore craft external relations that reflect the public’s economic and social expectations, avoiding short-term political impulses that undermine long-term national interests.
For a small nation, foreign policy cannot be symbolic or personality driven. It must be purposeful, pragmatic and directed towards the security and prosperity of the people.
A History of Global Connectivity
Sri Lanka’s history demonstrates that the island has never been isolated. From ancient ties with India and Southeast Asia to Arab, Persian and Chinese maritime networks, the island prospered when connected to the wider world. We must realise that “geography creates opportunity, but geography alone does not create prosperity.” Institutions, infrastructure and policy determine whether geographic advantage becomes economic success.
Colombo’s emergence as a cosmopolitan trading hub and Galle’s role as a resupply station for Indian Ocean shipping in colonial times , illustrate how deeply Sri Lanka has been embedded in global commerce for centuries.
Lessons from Asia’s High Performers
Kariyawasam highlighted the experiences of Japan, South Korea, Taiwan, Singapore and Vietnam. Their paths differ, but their success rests on common foundations:
• investment in human capital and infrastructure
• merit based institutions
• integration into global markets
• attraction of investment and technology
• export oriented industries
• strategic engagements with both China and Western economies
The lesson for Sri Lanka is not imitation but continuous adaptation and constructive integration with the global economy.
India: Sri Lanka’s Closest Major Partner
India’s transformation into a global economic power presents Sri Lanka with both opportunity and responsibility. India is already Sri Lanka’s largest source of tourists and a major investor. Kariyawasam states, “The larger question is how effectively Sri Lanka can participate in and benefit from India’s growth.”
A partnership should encompass modern, more open pathways for trade, investment, logistics, energy, technology, digital services, education and professional mobility—And asymmetry between the two economies must be handled with maturity and foresight, seeking special and differential treatment .
China and Other Global Partners
China remains a significant economic partner. Sri Lanka must avoid viewing this relationship through a zero sum lens. The goal should be productive and transparent engagement, ensuring better terms of trade and meaningful technology transfer.
Equally Important relations must be nurtured with the United States, European Union, United Kingdom, Japan, Australia, ASEAN and the Gulf.
All these relationships can be vibrant partnerships that does not lead towards , dependency but mutually beneficial pragmatic arrangements .
A Fragmenting International System
Global geopolitics is becoming more volatile. Trade tensions, wars, sanctions, supply chain disruptions, climate change and technological competition increasingly shape national security. We must realise, “foreign policy cannot be separated from economic policy.”
Sri Lanka’s recent economic crisis demonstrated the importance of international confidence, access to finance and resilient supply chains. Energy security, food security, cybersecurity and digital infrastructure are now core elements of national strategy.
Strategic Agency: The Guiding Principle
Sri Lanka must avoid becoming an arena for great power competition. Strategic agency means making decisions based on national interest, expanding Sri Lanka’s choices, not restricting them.
India is essential. China is important. The United States, Europe, Japan, Australia, ASEAN and the Gulf are important. The objective is a web of partnerships that strengthens resilience and autonomy.
Sri Lanka’s Strategic Assets
1. Location: Sri Lanka’s geography is a long standing advantage. Ports such as Colombo, Hambantota, Trincomalee and Galle can become specialised hubs—if connected to logistics, manufacturing, services and exports.
2. Digital Connectivity: Submarine cables, data centres, cloud services and cybersecurity are now as important as physical geography. Sri Lanka can turn its location into both a maritime and digital advantage.
3. Tourism and Natural Heritage: The focus should shift from tourist numbers to value creation—wellness, heritage, ecotourism, cruise tourism, education and MICE tourism.
4. Human Resources and Demographics: High literacy is no longer enough. Skills in technology, engineering, AI, logistics and advanced manufacturing are essential, especially with an ageing population.
5. Migrant Workforce: Migrant workers are a strategic asset, not merely a source of remittances. Bilateral labour agreements, skills recognition and diaspora engagement should be central to foreign policy.
Requirements for Sustained Prosperity
Sri Lanka’s future depends on:
• peace and security
• access to international markets
• productive investment
• a skilled, productive workforce
• modernised agriculture
• higher value tourism
• demographic preparedness
• climate resilience
• strong, predictable institutions
Please note that “foreign policy can open doors. Domestic institutions determine whether we can walk through them.”
The Role of the State
Sri Lanka does not need a larger state—only a more capable one. Policy continuity, professional institutions, predictable regulation and reduced corruption are essential. Geography does not change; long-term national interests do not change. Intentional relationships built over decades should not be reinvented with each election cycle.
Building Trust Internationally
Trust is a strategic asset. Sri Lanka must be known as a country that honours commitments and maintains predictable policies. This is vital not only for diplomacy but also for investment and long term partnerships.
Avoiding Zero Sum Geopolitics
Sri Lanka does not need to choose between India and China, or between Asia and the West. The task is to identify what each relationship can contribute to national development while protecting sovereignty and freedom of decision making.
Sri Lanka’s geography is an inheritance, but prosperity is not guaranteed. The world is changing rapidly—great-power competition, technological disruption, and climate vulnerability demand a foreign policy that is pragmatic, adaptive, and anchored in national interest.
Sri Lanka must build partnerships without dependencies, maintain strategic agency without isolation, and integrate with the global economy while strengthening domestic capacity.
“We cannot change where Sri Lanka is. We can, however, determine what Sri Lanka becomes because of where it is”
Opinion
A tariff deal with the US? Make haste slowly
by Gomi Senadhira
Sri Lanka’s former ambassador to the United States Mahinda Samarasinghe is back in Sri Lanka lobbying for speedier finalisation of a new tariff deal with the United States. According to news reports, delivering the keynote address at the Sri Lanka Institute of Directors’ Annual Meeting last week, he stated, “I have recommended very strongly to the government that we need to conclude the agreement so that we can lock in the very favourable tariff rate that Sri Lanka has got up to now“.
I do not understand why the former ambassador is urging the government to expedite the finalisation of a new tariff deal or what is “the very favourable tariff rate” he refers to in his speech. However, given the ongoing terrible tariff turbulence in the United States and the fragile economic situation in Sri Lanka, I believe, this is not the right time to rush into finalising any trade agreement with the United States. I am also of the opinion that at this juncture Sri Lanka should maintain strategic patience and explore all available options.
Lessons from the countries that rushed for trade deals
To better comprehend this, let’s look at experiences of the countries that rushed to conclude tariff deals with the United States after President Donald Trump declared his “reciprocal tariffs” under the International Emergency Economic Powers Act (IEEPA) in April 2025. As Samarasinghe stated in his keynote, “The bottom line on all these negotiations was that every country that finally agreed to sign the agreement had to give either complete duty-free access for American exports into those markets, or near complete duty-free access.” In exchange for these tariff concessions and other market access commitments these countries managed to get the newly introduced country specific “reciprocal tariffs” reduced.
However, in February 2026, the Supreme Court of the United States (SCOTUS) struck down these “reciprocal tariffs” under the IEEPA. With that, the market access gains these countries received in exchange for complete duty-free access for American exports into their markets evaporated under U.S. domestic law. By moving too fast to conclude bilateral tariff agreements with the United States these countries are now bound to strict obligations whereas the benefits they bargained from the U.S. administration are not worth the paper those were written on.
Sri Lanka’s experience
In April 2025, President Trump declared his “reciprocal tariffs” and labelled Sri Lanka as the worst offender, imposing one of the highest additional duties at 44%. Since then, Ambassador Samarasinghe and other negotiators have managed to negotiate this down to 20%. I do not know what the deal was through which Sri Lanka managed to reduce the 44% tariff to 20% or what we gave in return for this “concession.” However, what we received in return has absolutely no value after the decision by the SCOTUS.
Current state of US tariffs
After the decision by SCOTUS, the U.S. administration introduced a temporary 10% additional tariff on all countries for 150 days. At the end of that period, this 10% tariff was replaced by a new “forced labor tariff ” of 10% to 12.5% on all trading partners under Section 301 of U.S. trade law. Twenty-five U.S. states and several small businesses have already filed lawsuits against these tariffs in U.S. courts. This new “forced labour tariff ” on Sri Lanka was first fixed at 12.5%. Later, after President Anura Kumara Dissanayake issued a gazette notice prohibiting the importation of goods produced using forced labour, it was reduced to 10%. That means Sri Lanka has already made a substantial commitment to receive this “tariff concession,” and I presume our negotiators understand the implications of this commitment.
Make haste slowly
After President Trump imposed 44% “reciprocal tariffs” on Sri Lanka, through an article published in The Island on 25th April 2026 (), I urged the government to engage immediately with the US administration on these tariffs. However, I also emphasised that the best way to move forward was to make haste slowly.
Two millennia ago, Augustus Caesar, the first emperor of Rome, frequently used the phrase, “make haste slowly”, because he detested rashness and haste in his military commanders. It was the recurring guiding maxim that he emphasised throughout his 40-year imperial rule. After 2000 years, this classical oxymoron remains a definitive golden rule for professional trade negotiators. More importantly it is the exact blueprint required when navigating turbulence in trade negotiations with the Trump administration.
The endgame – The most dangerous moment in trade negotiation
Samarasinghe has also stated the agreement is 90% complete. Any experienced trade negotiator should know that the final 10% contains high-stakes provisions and is the most dangerous moment in a trade negotiation. A single misplaced comma or ambiguous product description in a tariff schedule can cost millions through unintended loopholes. Rushing this last stretch to secure a deal can permanently expose Sri Lanka to sudden shifts in American trade policy, heavy compliance costs, or strict enforcement under Section 301 regarding supply-chain labour standards. Hence, this is the time for strategic patience.
(The writer can be reached at senadhiragomi@gmail.com)
Opinion
Buddhist law and constitutional amendments
Upon reading the article titled “Prof. Pieris says Buddha Dhamma recognized as source of law under Constitution” (Island, September 12, 2026), the classical Sinhala idiom “Yanne Koheda? Malle Pol” immediately comes to mind. The expression, translating literally to answering “I have coconuts in my bag” when asked “Where are you going?”, underscores a complete disconnect in logic. Because it is uncertain whether the article accurately represents the professor’s precise words, the following critique addresses the contents of the report rather than the speaker himself.
The central premise of the report concerns a statement delivered by the Chief Justice regarding a petition filed against the 22nd Amendment to the Constitution. According to the report, the Chief Justice’s observation that the determination would be made strictly on the basis of established law rather than Buddhist teachings was characterised as a “cavalier dismissal” of the Buddha Dhamma. This assertion carries a host of unexamined assumptions. Had the writer specified precisely which tenets of the Buddha Dhamma were violated, a direct legal or philosophical evaluation could take place. However, no specific Buddhist tenet or law was identified as having been transgressed, and for good reason: no such statutory legal framework exists within the Buddha’s teachings.
To understand the flaw in this argument, one must examine the constitutional context alongside the canonical meaning of the terms involved. Article 9 of the 1978 Constitution of Sri Lanka mandates that the Republic shall give Buddhism the foremost place and that it shall be the duty of the State to protect and foster the Buddha Sasana, while guaranteeing the fundamental rights of all religions under Articles 10 and 14(1)(e).
While “Buddhism” and “Buddha Dhamma” are frequently used as interchangeable terms in casual dialogue, they represent distinct concepts. “Buddhism” is an umbrella term coined by 19th-century Western scholars to classify the global institutionalised religion, incorporating its diverse sects, cultural traditions, rituals, and socio-political histories. Conversely, Sasana is the ancient term designating the structural framework established by the Buddha to preserve and transmit his teachings, comprising the monastic order (Sangha) and its supporting institutions.
In classical Theravada commentarial literature, the Sasana operates as a functional three-tiered structure. It encompasses Pariyatti Sasana, the preservation and study of sacred texts; Paṭipatti Sasana, the practical execution of the doctrine through ethical conduct and meditation; and Paṭivedha Sasana, the direct experiential realization of ultimate truth, or enlightenment. This structural breakdown raises fundamental questions about state capacity. While a state can readily support Pariyatti Sasana through academic institutions, textual preservation, and educational funding, it cannot legislate or enforce Paṭipatti or Paṭivedha. Practical engagement and spiritual realisation are inherently internal, first-person experiences. Expecting the state to codify or guarantee enlightenment is a conceptual impossibility.
Furthermore, the Buddha Dhamma refers specifically to the unconditioned truths of existence and the teachings imparted to realize them, including the Four Noble Truths, the Eightfold Path, and Dependent Origination. As the late Venerable Professor Kotagama Wachissara Thera observed, there is no rigid ideologue or “ism” in the core Dhamma. The teachings do not constitute a system of divine commandments or a legal statute enforced through reward and punishment. Rather, Buddhist ethics function as self-directed guidelines for psychological clarity and moral inquiry. Even the Vinaya Pitaka, which contains explicit rules of conduct, functions as an internal monastic code rather than a civil or criminal law intended for the laity.
Throughout the Pali Canon, guidance regarding governance focuses on the moral character of leadership and the social duties of statecraft rather than rigid legal codification. In discourses such as the Cakkavatti Sihanada Sutta (DN 26), the Buddha observes that social instability and crime cannot be eliminated solely through punitive measures, emphasising instead that states must provide economic opportunities, fair wages, and resource distribution to maintain societal balance. Crucially, in the Maha Parinibbana Sutta (DN 16), the Buddha explicitly highlights the importance of respecting established laws and traditions rather than enacting arbitrary regulations.
The natural laws articulated in the Dhamma, such as the law of cause and effect or the three characteristics of existence, govern all phenomena universally, regardless of legal statutes or personal belief. They are not human laws to be applied or suspended by a court of law. Therefore, characterizing the Chief Justice’s adherence to constitutional jurisprudence over religious doctrine as a “cavalier dismissal” lacks logical and textual foundation. Framing the judiciary’s adherence to legal precedent as an attack on the Dhamma distracts from fundamental constitutional principles and risks misguiding the public for political ends.
Geewananda
Gunawardana,
Ph.D.
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