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An unstable and unusual new world survival strategies for lanka

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by Kumar David

The only crime that is committed in broad daylight is politics, all others are done in secret. This is true whether it be Trump’s America or the ruling cohorts of Sri Lanka. No need to elaborate, it is universally known. Trump brags about his tax evasions and encourages his compatriots to do likewise.

This country is trapped in a strange syndrome. It argued that Ranil Wickremesinghe (RW) may be able to win over the IMF and thereby stabilise the currency, deleverage debt (make it easier to borrow from commercial markets again), improve the import-export trade (on a capitalist basis) and negotiate a compromise between the Treasury and the Central Bank (limit money printing and enforce a degree of fiscal discipline). But at the same time economic pain will be inflicted on the poor and the lower middle-class. His budget proposals include raising income tax, increasing VAT and broadening the company tax but the costs will all filter down. RW hopes to reach a primary surplus (that is excluding interest payment on state debt) of 2.3% of GDP by 2024. This involves raising fuel and electricity prices. At present a part of these are sold far below production cost since they include large subsidies to low income households. The CEB and the Petroleum Corporation show huge losses on their books – it’s all politics.

Social spending and a safety-net m1itigating the impact of the current crisis on the poor and vulnerable by raising social spending is envisaged. However, inflation and high interest rates (spurred by the US Federal Reserve Bank) is beyond control in most countries, therefore achieving price stability is a pipedream. The IMF which has promised technical help and the government say they are both committed to a new Central Bank Act, reducing corruption and achieving good financial management. On the whole these plans can be called a conventional capitalist economic programme and like a curate’s egg is good in parts.

However, here’s the rub. Ranil has from time to time shown himself to be a ruthless opponent of democratic and human rights. In the last three months he has encouraged his goons, several times, to attack peaceful anti-government protesters, human rights campaigners and women’s groups. The Police Minister who urged the force to break up peaceful democratic protests against government policies (some democracy!) continues to ply his ugly trade. You ask me which is the real Ranil? I say both; that is the fact of the matter; that is why there is no set-piece response to Sri Lanka’s paradox. Furthermore, this needs to be placed in the context of a deeply contradictory and fractured global scene. The world is upside down and since the financial crisis of the early 2000s is mostly standing on its head.

A daunting economic scenario faces global capitalism in the wake of the financial crisis of the early 2000s. The theology of the success of uncontrolled free-market capitalism has been shattered. Capitalism is kept alive by the STATE, yes that’s right, the state has diverted trillions of dollars, Euros and Yen into keeping capitalism alive. The principal role of the state in metropolitan nations is not subsidising bankrupt state enterprises, it is bankrolling insolvent capitalism. All this is no longer disputed. In 2008 the US Congress approved a $700 billion bailout known as the Troubled Asset Relief Program and in February 2009 Obama delivered a $787 billion economic stimulus to avert a global depression. This $1.5 trillion has been supplemented by a further $5 trillion post-Covid, post supply-chain-disruption stimulus monies in the US alone. Add the other capitalist nations and the increase is substantial, but I agree that not all of it can be attributed to propping up failed capitalist market economics.

The Great Recession began with a subprime mortgage crisis in 2006 when banks drove American households into rotten Mortgages and fake instruments known as Derivatives. The housing bubble burst and subprime borrowers defaulted. The capitalist state declared banks (Lehman Brothers, Merrill Lynch) and giant corporations (GM and insurance giant (AIG) “Too big to fail” when they turned worthless. The stock market crash of 2008 was accompanied by one of the largest points drop in the history of the Dow. Global capitalism needed to avert a second Great Depression; this is not disputed. The myth of stable free-market capitalism has been shattered; the state has been exposed as a committee to oversee the activities of the capitalist class to a degree that even Marx did not foresee.

Free-market capitalism not only went belly-up as an economic system but we have now entered an era of extremism and social instability the likes of which we last saw in the 1930s in Europe in the period of the rise of fascism in Italy, Germany, Eastern Europe and Spain. The return of a Trump presidency, near civil war over women’s rights to an abortion in consultation with their doctors, the possible overthrow of Putin (good riddance you are entitled to say) and dangerous instability on the “eastern front” are the setting to a very unstable global situation. Sri Lanka needs to play its cards both wisely and craftily to navigate these waters.

The one issue that I would like to address today instead of ploughing on with generalities is the economic role of the state. Therefore, I will focus of the most important global example of state involvement in economic development at this time, China. China’s economy whether measured by a PPP (Paycheck Protection Program) yardstick or in nominal dollar is likely to surpass that of the United States within a decade. The benefits of competent state direction in the initial decades of post-colonial modernisation are bearing fruit. Decades of high single-digit and some years of two-digit GDP growth pulled 800 million people pulled out of poverty, created a middle-class whose numbers exceed the population of the USA and saw infrastructure improvement that is hard to believe. State-direction built railways, airports, highways, industries and encouraged massive soulless public housing projects by private developers. This is all known; some people call it the greatest economic explosion in history. Nevertheless . . . be patient!

Whether under the leadership of the Communist Party, or in Singapore, Taiwan or South Korea for different reasons, the directive-modernising role of the state has been paramount. Size is not the only attractor; technology, investment, military focus and other crucial aspects. The bread-and- butter technology picture is mixed. China is pulling ahead in Artificial Intelligence and hard technology for industrial expansion. Though the West is hell bent on denying it access to the best in computer-chip and military know-how there were ways round this such as joint-ventures and theft of intellectual property. Russian science-technology is no pushover; China-Russia cooperation can one day yield huge results.

A friend and former professor at the Open University, Nawala known as Eich, sent this pessimistic note to me a few days ago: “There is a major fallacy in your (KD’s) assumptions; given the insatiable desires and greed of people (ordinary people, capitalists and political leaders) this is never going to pass. The present state of technology is sufficiently advanced to allow people to lead decent lives and engage in enjoyable occupations. If you wish to you may speculate how much longer the Chinese capitalists will tolerate the dictatorship of the CPC without taking over decision-making themselves”.

But protests are erupting in Shanghai and other Chinese cities over heavy handed Covid controls. For the first time in decades, thousands of people have defied the authorities at universities and on the streets of major cities, demanding to be freed not only from incessant Covid tests and lockdowns, censorship the Communist Party’s tightening grip over all aspects of life.

Across the country, “We want freedom” has become a rallying cry of a groundswell of protests led by a younger generation too young to have taken part in previous anti-government dissent. As numbers swelled in multiple major cities over the weekend, so too have the range of grievances. Among protesters hundreds have called for the removal of Chinese leader Xi Jinping, who has overseen a strategy of mass-testing, lockdowns, enforced quarantine and digital tracking. Crowds chanted “Give me liberty or give me death!” according to videos circulating online in vigils to mark the death of 10 people in a fire in Xinjiang. By Sunday (27) evening, protests had spread to Beijing, Chengdu, Guangzhou and Wuhan, where thousands called not only an end to Covid restrictions, but remarkably, for political freedoms. Residents in some locked-down neighbourhoods tore down barriers. Protests on campuses included prestigious Peking U, Tsinghua U and the Communication University, Nanjing.

Nevertheless, there remains a nagging question. What after the dirigisme phase has served its purpose and is past its use-by date? How is post-dirigisme society, technology and innovation to organise itself? Productivity in China is falling, innovation is stifled and raises questions about the freedoms essential for the future. Society has to be set free to flourish. What was the great failure of the USSR? The state, far from withering away, became an ever more determining force. But socialism is unimaginable if men are dominated by the state. Somewhere along the road the state must wither away if as envisaged by socialists a society of plenty and freedom is to be realised. Society has to be free to flourish. The lamp illustrates the leap into the sphere of human freedom and innovation that is a precondition for socialism.

This brings me to my closing remarks pertaining to the role of the state in Sri Lanka. At the present time it

Has to play a directive role in economic development but it can do so only if it is not a predator in the hands of corrupt political classes. Marx speculated that “in place of the old bourgeois society, with its class antagonisms, we shall have an association, in which the free development of each is the condition for the free development of all”. Leave aside the flowery language, in the final analysis the state is only a temporary instrument, human liberation demands that eventually we must be rid of it.

A few days ago, I polled my liberal and intellectual friends about who will they would vote for in a presidential election in 2023/24. I gave them a wide choice; Sajith, Ranil, any Sajith-Ranil combo, various Rajapaksa options such as Dullas and Namal, the JVP/NPP and Peratugami (Front Line Socialists). Believe me I am not saying this because I am an NPP member, but over half choose the NPP/JVP while the other half distributed themselves all over. The challenge then is to take forward the debate within the JVP (the NPP is fine) on the longer-term economic role of the state and my “The nagging question, what after the dirigisme phase as served its purpose and is past its use-by date?” Looks like we have a busy work schedule cut out for years to come.



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Digital transformation in the Global South

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AI Summit, India

Understanding Sri Lanka through the India AI Impact Summit 2026

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

People friendly AI

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

Transformation in education sector

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

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

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

Employment and communication reshaped

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

Impact on Sri Lanka

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

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

Digital inequality

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

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

AI contribution to national development

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

Symbolic shift

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

by Milinda Mayadunna

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Governance cannot be a postscript to economics

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Kristalina-Georgieva

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

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

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

Governance Included

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

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

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

Beyond IMF

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

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

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

by Jehan Perera

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MISTER Band … in the spotlight

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

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

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

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

The seven energetic members who make up MISTER Band are:

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

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

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

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

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

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

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

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

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

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

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

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

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

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