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As superpower America falls into chaos, being small is beautiful for Sri Lanka

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Donald Trump and Elon Musk

by Rajan Philips

“You may not be interested in the world order-but it is interested in you,” opines The Economist in its latest lead editorial, entitled “Dealing with the Don.” It is about America’s new Godfather, aka Don Corleone, aka Donald Trump, and the blitzkrieg beginning of his second presidential term that is causing, what the editorial calls, “the rupture of the post-1945 order.” It may be that the post 1945 order has run its course and needs a radical overhaul. But not for the reasons that seem to be motivating President Trump, and certainly not for whatever endgame he has in his mercurial mind. More than anything, in his second term Trump is presiding over America’s implosion into chaos and its spillover onto the world at large. It is super power devolving into super chaos.

Whether or not the world order is interested in Sri Lanka, the island country is in a fortuitously good place while other countries and polities are caught up in one way or another in the global waves emanating from the American vortex. Being small as island countries go, to recall Bishop Lakshaman Wickremesinghe’s felicitous phrase, has its benefits. There was a time, in the 1970s, when Ernst Friedrich Schumacher visited Sri Lanka touting his new, and over time very popular, book, “Small Is Beautiful: Economics As If People Mattered,” which included a chapter on “Buddhist Economics;” the island’s socialist intellectuals quietly laughed at him.

But the concept – small is beautiful – struck a chord in more ways and places than one. It strikes for Sri Lanka now quite meaningfully as people in bigger countries are struggling to make sense of Trump and to avoid being hit by debris from his erratic executive orders. Sri Lanka has had its ordeals – too severe and too many of them, in fact, for its size and endowments. Yet after a tumultuous overthrow of a government that had gone awry, the people have helped themselves to a new government that for all its innocence in governance is a perfect fit for a small country caught in the topsy turvy world of Donald Trump. For all its shortcomings, the NPP government has shown a remarkable restraint in the rhetoric of foreign policy, a temptation that almost none of its predecessors were able to resist. It is wise to be non-aligned without the rhetoric of non-alignment.

It could also be argued that there is nothing remarkable about showing restraint to Trump, because every government in the world is showing not merely restraint but are even faking deference to avoid the pain of whiplash Trump tariffs. It does not matter whether you are neighbours like Canada and Mexico, or if you are separated by oceans, like China and India. Europe is picked on with disdain. Africa is irrelevant and the Middle East could be managed with the Israeli military doing Washington’s bidding. Only Russia is spared, with inexplicable deference shown to Vladimir Putin. Only China has simply said that it is ready for any war, trade or any other, that Trump might be fancying.

White House or Fight House

The first leader of any other country not to fake deference to Trump and not fail to call out his Vice President, the insufferable JD Vance, is Ukrainian President Volodymyr Zelensky. He paid the price for it by being bundled out of the White House last Friday. Taking turns to insult and humiliate their Ukrainian guest, the American President and Vice President accused Zelensky of being disrespectful and ungrateful to their country while also accusing him of showing a preference for the Biden Admisnistration. Contentious meetings using colourful language do take place between word leaders and their teams, but they are always behind closed doors and spicy details come out years later in retirement memoirs for historical amusement. What happened in Washington last Friday was unprecedented; but, true to form, Trump called it “good for TV” – the be-all and end-all of his persona.

As usual, Trump’s Republican loyalists have been praising their fearless leader and his VP for standing up for their country, as if America needs some standing up to the beleaguered leader of a battered country. Trump’s main pique against Zelensky was the latter’s first refusal to sign a ransom agreement bartering away in perpetuity Ukraine’s critical minerals for half a billion dollars without any assurance for Ukraine’s security. A modified agreement was then drafted and Zelinsky flew to Washington for its signing last Friday. But things went off script as Zelensky chose to speak his mind. A return visit is now being planned for next week, with Zelensky going to Washington accompanied by French President Macron and British Prime Minister Starmer to show respect to the Don.

The Economist sees a new hierarchy in a new world order that are in the making. Number one, apparently, is America. The second tier below belongs to countries with resource endowments and unaccountable leaders – Russia, China, and Saudi Arabia. And the third rung goes to the old West of Europe and erstwhile American allies and longstanding neighbours like Canada. The unmentioned are the rest even though India looms from the shadows, too populous to ignore.

Sri Lanka can stay where it is unseen and hopefully untouched by reciprocal tariffs. And the opposition can make noise for the recall of the current Ambassador from Colombo to Washington. That will eventually happen but not due to any local political noises. The UNHRC like all of UN might be in a quandary. But the Council is going through the motions in Geneva and the government is playing its part. The real answer to the proceedings in Geneva could and should come out of genuine changes at home. A systematic and retroactive crack down to eradicate the country’s criminal infrastructure, and nationally inspired political change whether it comes through Clean Sri Lanka or a New Constitution, or both.

Trump’s Achilles Heels

There is also a new hierarchy in the making within America, and that could ultimately prove to be the Achilles heel of the Trump presidency. The world can only watch and wait. At the top are President Trump and First Buddy Musk. The hegemon and the henchman. There are cracks yet between the two, but few checks are emerging. After weeks of nonstop savaging of the US institutions of government and foreign aid by Elon Musk and his handful of laptop storm troopers going by the name of the Department of Government Efficiency (DOGE), there are signs of slowdown and rethinking. Not surprisingly.

Achieving efficiency in government is always a necessary and laudable goal. President Clinton eliminated about 400,000 jobs during his presidency, but that took several months of effort and selectivity spearheaded by Vice President Al Gore. Not some buddy like Musk. Musk’s method is to be random and reckless, and that has created chaos and the need to recall retrenched employees in essential services. A second reason for the slowdown is growing judicial restiveness towards Musk’s operations.

In a small but not insignificant setback to the Administration, the Supreme Cout by a 5-4 majority sided with a Federal District Judge who had ordered the Trump Administration to lift the funding freeze on USAID operations that Trump had imposed on his very first day in office. The judge’s order was for the government to pay for projects and contractors whose work had been completed, and payment approved, before Trump assumed office.

The constitutional question as to whether Trump has the authority to override laws and disband institutions like the USAID, just on an executive whim, is still being battled in lower federal courts. The Trump team’s expectation is to let the cases go to the Supreme Court and ultimately get a favourable verdict from highest court with its 6-3 conservative majority.

The setback this week was on an appeal that Trump rushed to have the Supreme Court stop the lower court order to make payment for completed work some of which involved humanitarian relief operations. Delayed payments and non-payment to subcontractors has been Trump’s modus operandi in his real estate business. Musk did that with employees at Twitter before he turned it into X. They were extending their method to government’s contractual payments.

The case drew attention with Oxfam that gets no money from USAID, joining other agency plaintiffs against the government cuts. A remarkable nugget about the case is the District Judge who ordered the government to pay for completed work. His name is Amir Ali, a 40 year old Arab-Canadian-American. Born in Kingston, Canada, he completed a degree in Software Engineering at the University of Waterloo, and went on to do Law at Harvard. He made a quick name as a civil rights and constitutional lawyer, winning over half dozen cases he argued before the Supreme Court, and winning over even conservative judges.

Obviously, Ali and other judges who are ruling against Trump have got their detractors and their share of threats. That reportedly includes a reportedly racist taunt by Musk that Ali should be doing software engineering instead of helping non-existent NGOs receiving government payments. That is America. There is room for Amir Ali just as there is room for Elon Musk. Who prevails depends on the day of the week. Literally, for as Canadian Prime Minister Justin Trudeau said, when asked by a reporter about his handling his battles with Trump over tariffs, “It’s Thursday!”

Tariffs are another area where Trump is mercurially insistent but is being forced to reverse course from one day to another. He arbitrarily imposed a flat 25% tariffs on all imports from Canada and Mexico, in addition to further taxes on steel and aluminum imports. All in clear violation of the free trade agreement between the three countries, which Trump renegotiated and signed on during his first term.

Prime Minister Trudeau called Trump’s tariffs a trade war that is aimed to cripple the Canadian economy and ultimately achieve the annexation of Canada as the 51st state of America. Trump has been obsessively musing about annexing Canada ever since he started his second term, in addition to his musings over Gaza, Greenland and the Panama Canal. But the annexation talk has riled up Canadians across the political spectrum and at every social level.

The federal and provincial governments in Canada are all on board for retaliatory tariffs against American goods until Trump removes the tariff threat altogether. And the Canadian public is gung ho about boycotting American goods and ceasing travel to America as tourists. The Trump Administration may not have quite expected the Canadian backlash, which comes on top of market turbulence and investor panic within America. The upshot has been almost daily announcement of tariffs and their withdrawals the next day – with a face saving pause until a future date.

There is no one actually in support of tariffs, in America or anywhere, except Trump himself. His cabinet of lackeys have no backbone to tell him what they really think about the idea, and so they are left to soften the blow by securing postponements from the Don. April 2 is the next date to watch for universally reciprocal tariffs that Trump has so far threatened to impose against all countries. Sri Lanka will have to be watchful, but there is still too much time left for Trump to change his mind multiple times. There is no point on betting on what he is going to do next. It is better to enjoy being small and not caught in the crossfire.



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The challenge of being positive about SAARC

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The RCSS forum addressed by SAARC Secretary General Ambassador Md. Golam Sarwar in progress. (Pic courtesy RCSS)

It was a few years back that a former President of Sri Lanka took it on himself to pronounce SAARC ‘dead’. Since then there have been other sections of Sri Lankan opinion that have joined the critics of SAARC and taken the solemn stance that SAARC has indeed died what may be called a natural death.

Their fatalism is understandable. SAARC has failed to meet at heads of government or state level for the past several years to take the SAARC process notably forward. Regional cooperation has more or less been only an appealing idea. No substantive concrete projects have taken off to make the idea a hard reality. ‘Inner paralysis’ seems to be SAARC’s lot. Hence the fatalism in these circles.

However, being one of the worst cash-strapped regions of the world and a teemingly populated one with people virtually left to their devices, what choices do the ‘SAARC Eight’ have other than to try their best to band together and continue with their cooperation efforts, however small they may be?

There is no escaping the mounting debt trap for many of these countries and bankrupt Sri Lanka is a glaring example, but ‘throwing in the towel’ and abandoning themselves entirely to the diktats of the strongest economies and their agencies will prove a ‘living death’ for many countries in the SAARC fold.

The gains may be meagre but giving-up on SAARC cooperation in full would prove self-defeating for the organization and South Asia. Right now, the collective intention ought to be to salvage what the region could from the tenuous cooperative efforts. Moreover, such initiatives could go some distance to generate a degree of goodwill among the Eight and help in sustaining a dialogue process.

Given this backdrop it proved ‘a stich in time’ for the Regional Centre for Strategic Studies (RCSS), Colombo, to recently host the SAARC Secretary General Ambassador Md. Golam Sarwar to a round table discussion on the unifying potential of SAARC and its future possibilities, besides other related issue areas.

Held on June 24th and moderated by RCSS Executive Director and former ambassador Ravinatha Aryasinha, the forum brought together a vibrant, wide ranging audience comprising academicians, diplomats, senior public servants, civil society activists and many others. Following the presentation by Ambassador Golam Sarwar titled, ‘Reigniting SAARC: Achievements, Challenges and the Way Ahead’, a lively Q&A followed.

The above forum could be described as an act of lighting the proverbial ‘candle’ rather than ‘cursing the darkness.’ It surely is a ‘darkness’ that could be seen as daunting considering that the region’s pivotal powers, India and Pakistan, are failing to act in a spirit of accord but are engaged in bitter finger-pointing on a number of questions of vital importance to SAARC.

On the other hand, what is the rest of the region doing to bring the above sides together? It is disappointing that to date the rest of SAARC has failed to launch a major diplomatic drive to bring peace between the feuding regional heavyweights. It needs to act without delay and establish its earnestness and this effort would need to prove SAARC’s staying power in the unfolding months and even years.

In assessing SAARC’s seeming failure local opinion in particular has failed to factor in what could be described as weak leadership. Since Sheikh Mujibur Rahman of Bangladesh, the founding father of SAARC, the region has failed to produce a visionary leader who could advance the SAARC cause with charisma and drive.

Among other reasons, weak leadership accounts considerably for the faltering and stuttering status, as it were, of SAARC. Badly needed are leaders who could go the extra mile, think less of narrow national interests and work diligently towards the collective well being of the region but SAARC’s millions of ordinary people have been made to wait in vain for leaders of such stature. Instead, they have been burdened with politicians who seem to be relishing the apparently moribund state of SAARC.

Looking back, it could be said that it was the dynamic leadership factor that led to the launching of the Non-Aligned Movement and for its sustenance for a few decades. True, it could be seen in some quarters that NAM is no more, but as in the case of SAARC, the former too has been unfortunate to be burdened over the years with politicians who lack the vision and drive to unflaggingly advance the fortunes of the South. NAM and SAARC lack the dynamism and vision of leaders of the stature of Jawaharlal Nehru, for example, to give them the required guidance and intellectual depth.

The reasons are complex for there not being among us currently political leaders with the vision and the steadfast commitment to advance the legitimate interests of the South. However, it could be stated with conviction that the majority of Southern leaders have too easily caved in to the demands of the global North and its financial agencies.

These leaders have failed to see, for instance, that the largely market economy oriented Northern governments would not view with favour a centrist economic model that attaches priority to the interests of the dis-empowered publics of the South. This realization ought to have dawned on the current government in Sri Lanka, for instance, some while ago but it has no choice but to abide by IMF dictates since economic survival at present is unthinkable without the latter’s succour.

Accordingly for SAARC this should be the time for some soul-searching. Priority needs to be attached to ending the feuding between India and Pakistan since at present the material fortunes of the region hinge largely on these regional giants giving peaceful relations among them a try. This is no easy challenge to meet but some daring, visionary diplomacy needs to take hold among the rest of SAARC.

There is some sense in SAARC bringing the peoples of the region together through programs that address their best collective interests. A meeting of minds among SAARC nations could enable SAARC and its agencies to build a region-wide people’s movement for progressive political and economic change that could in turn lead to the region’s political leaders sensitizing themselves more to the neglected needs of their publics.

However, the time is ‘now’ for the initiation of these progressive changes and the voice of SAARC well wishers would need to drown out those of their critics.

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OPA seminar examines Sri Lanka’s economic recovery, resilience and growth pathways

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(L to R) Dr Achinthya Koswatte, Anushan Kapilan, Dr Harsha Aturupane, Bhanu Wijeyaratne, Vice President, OPA and moderator of the discussion, and Eng Chamil Edirimuny, General Secretary, OPA, at the head table.

A seminar, “Sri Lanka’s Economic Crossroads: Navigating Recovery, Resilience and Growth” was recently held by the Organisation of Professional Associations of Sri Lanka (OPA) at the OPA Auditorium, bringing together economists, OPA members, and professionals from diverse fields for an insightful discussion on Sri Lanka’s economic recovery and future growth prospects.

The event was held under the patronage of Jayantha Gallehewa, President of the OPA, and was jointly organised by the National Issues Committee (NIC) and the Seminars, Workshops and Programmes Committee of the OPA. The event reaffirmed the organisation’s commitment to advancing professional excellence, fostering insightful intellectual engagement, facilitating interdisciplinary knowledge exchange and creating a constructive platform for informed dialogue on issues of national importance.

The panel of speakers comprised Dr. Harsha Aturupane, Lead Economist and Programme Leader for Human Development at the World Bank for Sri Lanka and the Maldives; Dr. Achinthya Koswatta, Senior Lecturer in Economics at the Open University of Sri Lanka, and Anushan Kapilan, Lead Economist at Verité Research.

In his welcome address, the President of the OPA emphasised that Sri Lanka was at a critical juncture in its economic recovery journey where sustained reforms, effective implementation, and collective national commitment are essential to achieving long-term stability, resilience and inclusive growth. He noted that the country had experienced one of the most severe economic crises in its history with the economy contracting by 7.8 percent in 2022 and a further 11.5 percent in 2023, resulting in significant economic and social challenges.

Delivering his introductory remarks Bhanu Wijeyaratne, Vice President of the OPA and Chairman of the National Issues Committee, underscored the need to move beyond short-term economic stabilisation towards a comprehensive agenda of structural transformation. He observed that the economic crisis had revealed deep-rooted weaknesses within the economy, including persistent fiscal pressures, rising public debt, foreign exchange limitations, and insufficient diversification of the export base. He stressed that addressing these challenges through strategic reforms, institutional strengthening and long-term economic planning would be essential to establishing a more resilient and competitive economy.

While acknowledging recent positive developments, including improved inflation management, tourism recovery and signs of economic stabilisation, Wijeyaratne stressed the need to advance reforms aimed at strengthening fiscal discipline, enhancing productivity, improving competitiveness, developing human capital and reinforcing governance and institutional effectiveness.

He further highlighted the important role of professionals, businesses, academia and other stakeholders in contributing to evidence-based dialogue and supporting Sri Lanka’s journey towards a resilient, inclusive and sustainable economic future.

Delivering the keynote presentation, Dr. Harsha Aturupane provided a comprehensive assessment of Sri Lanka’s economic prospects within the broader context of global economic transformation. He argued that Sri Lanka functioned as a small open economy whose performance is significantly influenced by developments in the global marketplace. External factors could not be controlled, and the country must strengthen its domestic capacity and resilience to respond effectively to international economic shifts, he noted.

Tracing the evolution of global economic systems, Dr. Aturupane highlighted the transition from ideological divisions between state-controlled and market-oriented economies towards increasingly pragmatic approaches focused on growth, competitiveness and development. He noted that Sri Lanka’s own economic journey reflects a similar evolution, with contemporary policy debates now centred on practical solutions for sustainable economic progress.

The presentation also examined the transformative impact of globalisation. Dr. Aturupane observed that global economic integration had enabled several East Asian economies, including South Korea, Singapore, Taiwan and Hong Kong, to achieve remarkable economic advancement through export-led growth strategies. Sri Lanka similarly benefited from this process through the expansion of its apparel industry and increased integration into global value chains.

Turning to Sri Lanka’s recovery programme, Dr. Aturupane emphasised that the ongoing stabilisation process should be viewed as a national programme supported by the International Monetary Fund rather than solely as an IMF initiative. He observed that strong worker remittances, improved tourism earnings, enhanced government revenue mobilisation and prudent import management have contributed significantly to economic stabilisation.

Despite this progress, he cautioned that rebuilding foreign exchange reserves and meeting future debt obligations remain major challenges. He underscored the need to strengthen export performance, attract investment and generate sustainable foreign exchange earnings to ensure long-term economic resilience.

The discussion also focused on monetary stability, inflation management and exchange-rate policy. Dr. Aturupane stressed that maintaining price stability was fundamental to sustainable growth and household welfare, while sound monetary policy remains essential for preserving economic confidence.

Looking beyond stabilisation, he argued that Sri Lanka must transition towards a broader economic transformation agenda. Sustainable growth, he noted, will depend on expanding productive capacity through investment, technological advancement, innovation, skills development and structural reforms.

Among the key constraints identified was the high cost of energy, which continues to affect competitiveness and investment attractiveness. Dr. Aturupane emphasised the importance of improving efficiency and affordability within the energy sector to enhance Sri Lanka’s business environment.

He further highlighted the social dimensions of the crisis, noting the rise in poverty and economic vulnerability among households. Strengthening social protection systems and ensuring inclusive growth, he argued, must remain central components of the national development agenda.

Another critical challenge identified was Sri Lanka’s demographic transition. With an ageing population, outward migration and evolving labour market dynamics, the country is increasingly confronting labour shortages in several sectors. Dr. Aturupane suggested that greater automation, increased labour-force participation and strategic workforce planning would be necessary to address these emerging realities.

Concluding his presentation, he emphasised the need to improve governance, strengthen institutions, enhance competitiveness and create an enabling environment for private sector investment. Sri Lanka’s future success, he noted, will depend on its ability to move decisively beyond crisis management towards a development model founded on resilience, innovation, productivity and inclusive growth.

Dr. Achinthya Koswatta reiterated the importance of policy consistency and predictability in fostering investment and industrial development. She observed that frequent policy changes create uncertainty and discourage long-term investment decisions, whereas stable and coherent policy frameworks build confidence and support sustainable economic transformation.

Meanwhile, Anushan Kapilan highlighted the substantial progress achieved in restoring macroeconomic stability following the recent crisis. He noted significant improvements in fiscal performance, including increased government revenue, reduced reliance on debt financing and a historically low fiscal deficit.

He further observed that public debt levels are declining faster than anticipated, economic growth has exceeded expectations and inflation has been brought under control more rapidly than forecast. Nevertheless, he cautioned that the recovery remains uneven, particularly within the industrial sector and that many households have yet to experience a meaningful improvement in living standards.

The seminar was expertly coordinated by Eng. Chamil Edirimuni, Vice President of the OPA and Chairman of the Seminars, Workshops and Programmes Committee, while the technical moderation and interactive discussion session were facilitated by Bhanu Wijeyaratne, Vice President of the OPA and Chairman of the National Issues Committee.

The event was attended by Tisara De Silva, President-Elect of the OPA, Eng. Ravi Rupasinghe, General Secretary, Past Presidents, members of the Executive Council, representatives of the General Forum and professionals representing a wide range of disciplines.

The seminar concluded with a vibrant exchange of ideas and perspectives, reaffirming the importance of evidence-based policy dialogue, institutional collaboration and collective national commitment in advancing Sri Lanka’s economic recovery, resilience and sustainable growth.

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Her roots run deep in Sri Lanka

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Samantha Kay: Now based in the UK Samantha’s biggest passion is helping people, especially women, build confidence and believe in themselves Today, her focus is on radio, podcasting and coaching women Whenever she visits Sri Lanka, she says she loves spending time on the beautiful south coast, especially Hikkaduwa and Mirissa She released a song with 90s music icon Angie Brown, which reached No. 9 in the UK Club Charts

Yes, for UK-based presenter and artiste Samantha Kay, home is where the heart – and the roots – are. And her roots run deep in Sri Lanka.

In an exclusive interview with The Island, Samantha says “I’m proud to be Sri Lankan. My mum is from Kandy and my dad is from Colombo, so Sri Lanka has always held a very special place in my heart.

“Whenever I visit Sri Lanka, I love spending time on the beautiful south coast, especially Hikkaduwa and Mirissa. It’s somewhere I always feel connected to my roots and completely at peace.”

Now living in Bournemouth, on the south coast of England, where, she says, she is lucky to be close to some of the UK’s most beautiful beaches, including the iconic Sandbanks, Samantha has built a career that refuses to fit into one box.

She is a radio presenter, podcast host, singer-songwriter, personal trainer and life coach.

“I genuinely love the variety because every role allows me to connect with people and, hopefully, make a positive difference in someone’s day.”

Of course, music has taken her far.

One of her proudest achievements, she says, was releasing a song with 90s music icon Angie Brown, which reached No. 9 in the UK Club Charts.

She also reached the final stages of The X Factor and performed at Wembley Stadium in front of thousands.

Beyond music, Samantha competed in bikini bodybuilding across the UK, winning several titles. “It taught me discipline, resilience and self-belief,” she recalls.

Today, her focus is on radio, podcasting and coaching women. Her podcast encourages people to live life on their own terms rather than feeling pressured to follow society’s expectations.

Says Samantha: “Whether someone is single, changing careers, travelling solo or simply trying to find their purpose, I want them to know that it’s never too late to create a life that feels authentic. If you’ve ever felt like you don’t fit into the box, maybe you were never meant to.”

Samantha Kay also spent a year in Dubai, performing at five-star hotels, including FIVE, and coaching at the iconic outdoor gym on Palm Jumeirah.

“I taught strength and conditioning classes, and hosted wellness retreats, combining my passion for music, health and inspiring others.”

However, with family matters calling her back to the UK, she made the choice to return. “Family comes first,” she says.

Looking ahead, Samantha plans to grow her radio and podcast work, release more music, and expand her wellness retreats.

“My biggest passion is helping people, especially women, build confidence and believe in themselves,” she says.

“Wherever my career takes me, I hope to continue inspiring others to live with courage, kindness and authenticity, while never forgetting my Sri Lankan roots.”

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