Features
Barking up the wrong tree
Economic downturn due structural weaknesses and not ‘open economic’ policies
by Jayampathy Molligoda
This article makes an attempt to present few socio-economic factors and indicators reflecting Sri Lankan economic downfall and examine whether it has some bearing on our failure to address serious structural weaknesses in the economy for the last 45 years.
My view is it’s not the open economic policy that has contributed to the downfall of our economy. It’s due to the fact that successive governments have failed in undertaking much needed structural reforms in the economy. As a result, our export performance has drastically declined and thus widening the trade deficit. It should be clearly understood that large fiscal (government budget) and external ‘current account’ deficits, popularly known as the ‘twin deficit’, are the two key structural problems in Sri Lanka identified as core weaknesses of the economy for many decades. In addition, the socio-political issues also would have contributed to the deterioration of the quality of life of the majority of people and thus eroding ‘rich value systems’ prevailed in the Sri Lankan society for a long period of time.
Socio-political issues:
The political analysts had been critically commenting on the manner in which President JRJ managed the country’s political system and governed the country during the initial period of the Presidential system under 78 Constitution. His governance style had created some kind of impression that JRJ government had made attempts to use tactics to undemocratically oppress the legitimate opposition by, first taking out the civic rights of the Leader of opposition, Mr Sirima Bandaranaike and suppress the trade union instigated general strike in 1980 and then postpone the Parliamentary elections by six years through a referendum, thus playing into extreme terrorism of LTTE, JVP and breakdown in law & order.
As a result, there has been a gradual deterioration of the economy of this country, although, both President JRJ and later President Premadasa were able to transform the socio-political system in the country and spur economic growth paving way for employment creation through private investments. Since 1978, the government of the day has been following an aggressive open economic policy framework and until 2014 there has been some progress in much needed infrastructure development with the participation of foreign and local enterprises in the private sector. However, no attempt has been made to evaluate the efficacy & effectiveness of such investments to the economy. Even after the war was successfully ended by 2009, we couldn’t establish trust & understanding among communities to establish a long- lasting peace and sound national security & defence system and political stability which are necessary pre-requisites for economic development on a sustainable basis.
Examine few key economic indicators:
(A) Government debt and depreciation of rupee:
Our total government debt was only Rs. 80 billion by end 1982, which includes some of the foreign loans obtained for the acceleration of Mahaweli development programme completed within six years. As for rupee depreciation- by end 1977, it was Rs 15.56, and by end 1982, it was Rs 21.32 for one US $. As can be seen, it was a gradual upward movement of the value of US $ and not very high rupee depreciation during the period-1977 to 1982. Since then, government debt had been increasing at a much faster rate and at the end 2014, it has gone up to Rs. 7, 486 billion, and by end 2019, it has further increased up to Rs. 13,031 billion. Our total external debt as a % of GDP by end 2010 was only 38% and it had increased to 67% by end 2019. As for rupee depreciation- by end 2004, it was Rs. 104.61 for one US$ and by end 2014 it was Rs. 131.05, now it’s Rs. 204/ but in the black market, it’s around Rs235-Rs 240/=.
(B) Poor export performance:
Compared to other regional counterparts, Sri Lankan export performance has been declining and it can be concluded that the investments made in infrastructure projects are giving diminishing returns. During the two decades in 1980’s and 90’s, we saw our export performance commencing from 1980 at one billion US$ (in the year 1980) going up to US$ 4.6 billion in the year 1999 and US $ 11.9 billion in 2019. The export performance reflects 26% of the GDP during the two decades ending 1999. However, the next two decades commencing 2000 to end 2019, the export performance of Sri Lanka has drastically declined to 16% of the corresponding GDP figures. (See table)

As can be seen, our trade deficit during the period 2010 to ‘19 has widened to 78% of total exports and our exports as a % of GDP has also decreased from 28% during the period 1990-99 to 14% during the ‘10 years period’ of 2010 to ‘19. In fact, it was an average of only 13% during the period 2015 to ‘19. The export revenue has been stagnating at an average of US$ 10. 9 billion and the trade deficit has widened to an average of US $ 8.5 billion during the period 2010 to ‘19. Repeated attempts to offset the trade deficit through tourism proceeds and remittances have not been successful without having corresponding forex inflows from export proceeds and FDI. Further, the exchange rate policy has created competitiveness issues for exporters, as external trade counterparts have become more competitive at the global market place due to their currencies are getting depreciated at a faster rate. Just to give an illustration, one cannot hold by his two hands four rubber ball in the water simultaneously for a long period of time; similarly, (i) our bank interest rates, (ii) inflation rate, (iii) rupee exchange rate and (iv) expecting large inflows of FDIs, cannot be held back for a long period of time – it’s a recipe for disaster in economic sense. These factors have adversely contributed to current macro- economic situation lowering the economic growth & development of the country.
From the above economic indicators, it can be seen that during the last seven years, the economic situation got badly affected, out of which during the last two years, it was mainly due to Covid-19 and the year-2019, it was partly due to Easter Sunday attack. Up to now, our economy would have lost nearly US $ 10 billion as opportunity cost on account of tourism proceeds from May 2019 to end November 2021. It is expected that tourist arrivals will pick it up, targeting some 100,000 arrivals per month for the next 12 months ending 2022. It’s unfortunate the ‘political party blame culture’ also contributed to the deterioration of society’s values. Because of these events, the international community lost confidence in supporting SL and even private sector FDIs have failed to come. One can also conclude that inward looking policies will not offer solutions to foreign exchange crisis, although there is nothing wrong in promoting domestic production, smart agriculture and industrial revolutions, which covers ICT development. We cannot find solutions by simply blaming the present government or previous governments, instead the key opinion leaders (KOLs) could get the government of the day to bring in much needed financial discipline through government budgetary process and instil new political culture and demand the government to bring in much needed structural reforms in order to reverse the declining trend.
Radical changes are needed to address structural weaknesses:
During the Presidential elections in November ‘19, a massive mandate was given by masses to the incumbent President, GR to undertake much needed ‘system change’. The economic situation would improve, if we are able to make some structural reforms in the economic front and undertake radical changes in the socio-political front which include changes to some areas of the foreign policy implementation. The solution lies with the Government taking some bold decisions – however they need to be mindful to the political realities and maintain policy consistency, until we are able to overcome difficulties and improve credit rating.
Key structural reforms and radical changes:
a.The present $$$ crisis needs to be resolved immediately.
i.Trade deficit for a long period of time has been around US 10 billion per year.
ii.Expected tourism earnings may not be sufficient to offset deficits in the short term.
iii.External foreign exchange reserves are low- US $1,6 Billion by end November.
iv.Banking system is faced with severe foreign currency shortage for essential items.
b.Under a revolutionary Land reforms and proper land use plan, we need to identify uncultivated land parcels, which includes Mahaweli land to fast track cultivation and development work which could be handled under PPP models by inviting private sector participation with proper monitoring of progress through an effective regulatory mechanism.
c.Use ‘National Sustainable Development Council of Sri Lanka’ as the institutional vehicle to drive green economic policy changes, whilst the Council continues to focus on 17 SDGs.
d.Existing guarantees given by Multilateral agencies for some credit lines may not be available for fuel, diesel, petrol, but only for renewable energy sources. Therefore, if we continue to have diesel plants, sourcing foreign exchange without such credit lines, that becomes a serious issue, that’s why it is necessary to focus more on renewable energy.
e.Structuring mega projects have to be in line with international trends i.e.; Sustainable development goals, COP 26 Glasgow- ‘Climate change’ to attract the right investors for our projects. Indirect costs in delaying our mega projects. Colombo East Terminal (ECT), 300MW convertible power plants, Northern/Central Highway, Port access road etc. are examples resulting from delays. However, there should be a mechanism to ascertain whether the investments made in infrastructure projects are yielding desired, expected returns.
f.Drive against drugs & underworld operations, action against corrupt practices and improve public sector service efficiency. Maintain government fiscal deficit around 7% by increasing direct taxes and restructuring SOEs, thus further reducing the burden of high expenditure.
g. Focus on FDI led ‘export oriented’ growth strategy coupled with increase in domestic production, light industries, SMEs, ICT applications.i.e.; Grama Niladhari tabs etc. and a mechanism to reduce cost of living rise, provide relief packages, and paddy/rice value chain.
h.Within the framework of non- aligned movement, Sri Lanka could slowly shift our foreign relations towards India Japan and the US. This would enable FDIs and bi lateral funds to flow in from these countries including UAE, South Korea, Vietnam to attract funds and resolve US sanctions imposed through western banks. Even the IMF will facilitate structural adjustments and rating will improve.
Therefore, it is suggested the government to appoint an ‘Expert Council’ to look into these areas mandating them to recommend a short- term solution within a set of ‘medium term’ strategic plans for the next three -five years.
Features
‘The devil is in the details’ in West Asian peace
It is obviously too early for an outpouring of joy over the seeming cessation of hostilities between the main antagonists in West Asia. While the prospect of there being a measure of calm in the region is being welcomed by considerable sections of the international community, what is ‘on the table’ currently is only a Memorandum of Understanding between the US and Iran to give peace a chance. The hard part in the peace effort remains to be achieved.
In the Middle East of today we have one of the most complex conflicts to break out in modern international politics and the observer would be naive in the extreme to expect a facile and early closure to the tangle. Yet, for the sake of the world’s publics who have been hurting badly in the prolonged hostilities one could only hope that the US-Iran MoU that is expected to be signed by the sides on Friday would lead eventually to a substantive peace. The world’s thanks are due to Pakistan in this connection for its sustained support in the peace drive.
While the sides have agreed to a ceasing of hostilities in the most general terms and have reached accord on the facilitation of uninterrupted oil and gas supplies to the rest of the world, for instance, the ‘devil will prove to be in the details’ in an envisaged comprehensive peace settlement. It is these details that would make or break peace if the negotiations go on in earnest.
Nevertheless, the details would need to be worked out consensually in a spirit of compromise with an eye to the greater good of the world community. Realpolitik or a narrow focus on solely the national interest among the protagonists, for example, would need to give way to a measure of humanity that would encompass within it a consideration of the overall well being of the world. In other words, it is statesmanship that would crucially matter.
The next few weeks would establish whether humanists are ‘asking for far too much’ when they broach the questions at issue in these terms. Yet it is essentially self interest and national security considerations of the first importance that drove the conflict from even prior to February this year and these questions would need to be taken up and resolved to the satisfaction of the US and Iran in the main if some headway is to be made towards a durable settlement.
The nuclear issue would prove to be the proverbial Gordian Knot. From a realistic viewpoint, Iran could not be expected to be without a potential nuclear deterrent in the face of perceived nuclear threats emanating for it from the West and Israel. In the short term, Iran would need to possess this deterrent to a measure, within a mutually agreed international legal framework maybe, until wide agreement is reached on the nuclear tangle. Specifically, Iran’s immediate threat perceptions with regard to her nuclear-powered rivals would need to be defused during initial negotiations.
Ideally it is a world free of nuclear weapons that must be aimed at but since this goal cannot be achieved in the near or medium terms, unfolding negotiations would need to ensure Iran’s absolute security in a world of powers that continue to swear by the nuclear deterrent, if it is to give up the suspected latter capability.
However, it is to the degree to which the present nuclear powers divest themselves of this capability that Iran could be put at ease on this score. Accordingly, it is nothing short of a complete elimination of nuclear weapons from the world that could dissuade keenly security conscious states from developing nuclear weapons of their own with a mass destruction capability.
This is the number one dilemma the international community needs to grapple with going forward and it is to the extent to which it resolves it that a nuclear weapons free world could be envisaged. No doubt, an uphill challenge.
Compelling Israel to support the present negotiatory process constitutes another grueling challenge for the US. Currently the Iranian position essentially is that a Middle East peace is inseparable from a normalization of the security situation in Lebanon. That is, the present Israeli attacks on the Hezbollah presence in Lebanon must cease if a comprehensive peace is to be realized in West Asia.
However, Israel is showing no signs of drawing back from its attacks on Hezbollah strongholds in Lebanon since the security of the Israeli state is being seen as threatened by the militant group. Co-opting Israel into the negotiatory effort therefore would turn out to be a matter of paramount concern for the US.
Moreover, elements in the rightist administration in Israel are seeing the current peace efforts as a ‘sell out’ to the enemies of Israel. They would have none of it. It is left to be seen how the US would be managing these virtual storm centres in the diplomatic process that could very well bring down the overall purported peace drive.
A recent pronouncement by US Vice President J.D. Vance points to yet another problem area in the US’ current peace overtures. He said that, ‘Regional peace and stability includes stopping the funding of terrorist organizations.’ He was obviously referring to the support extended by Iran to Hezbollah when he mentioned ‘terrorist organizations’ but he has given fresh life to the age-old conundrum of ‘Who is a terrorist?’ by these words.
To the Netanyahu government the Hezbollah and other militant organizations fighting Israel are ‘terrorists’ but from the viewpoint of the Iranian regime they are ‘freedom fighters’. This seemingly insurmountable definitional issue would not only stubbornly bedevil the peace effort but could even figure in bringing about its collapse, unless judiciously handled.
Thus, it’s the thorny details that need to be watched to keep the West Asian peace process afloat, once it gets going in earnest. There is no doubt that US President Trump would be receiving a considerable amount of support from the G7 in this historic peace undertaking and his personal appeals to the grouping currently meeting in France for continuous support are likely to elicit a positive response from it.
Likewise, Trump would need to appeal to also the BRICS countries if almost total global support is to be garnered for the peace drive in West Asia. BRICS’ solidarity with the US and the West is likely to carry considerable weight with Iran and other Eastern actors who are key to a sustained peace drive in the Middle East.
Features
Sri Lanka’s elephant paradox: Govt. counts tourism dollars while playing a dangerous numbers game: Expert
At a time when Sri Lanka is enjoying a resurgence in wildlife tourism, with elephants remaining the undisputed stars of the country’s national parks and one of its most marketable natural assets, elephant conservationist Supun Lahiru Prakash has sounded a stark warning: the nation is in danger of losing the very species that helps attract millions of tourism dollars while sustaining some of the island’s most important ecosystems.
Supun says repeated claims by authorities that Sri Lanka’s elephant population is increasing, despite the absence of a final survey report and amid continuing elephant deaths, risk creating a misleading narrative that could undermine conservation efforts and encourage retaliation against elephants.
According to Supun, the issue is not merely about numbers. It is about political priorities, scientific credibility and the future of one of Sri Lanka’s most iconic species.
“Repeatedly claiming that the elephant population is increasing appears to be an attempt to hide the Government’s inability to manage the rising annual elephant death rate and the complications of human-elephant conflict,” Supun said.
For decades, the Sri Lankan elephant has been a symbol of the country’s rich natural heritage. It is the centrepiece of wildlife tourism, drawing visitors from across the globe to national parks such as Yala, Udawalawe, Minneriya, Kaudulla and Wilpattu. International wildlife documentaries, tourism campaigns and social media promotions frequently place elephants at the heart of Sri Lanka’s nature tourism brand.
Yet, according to Supun, the country’s conservation policies do not reflect the value of the species.
“On one hand, the Government is enjoying increasing tourism revenue, and elephants remain one of Sri Lanka’s most important wildlife attractions. On the other hand, narratives are being promoted that could encourage retaliation against the very species that contributes significantly to the country’s tourism industry,” Supun said.
According to the First Countrywide National Survey of Elephants conducted in 2011, Sri Lanka had 5,879 elephants. However, official statistics show that 4,167 elephants died between 2012 and 2024.
Supun stressed that these figures represent only the deaths officially recorded by the Department of Wildlife Conservation.
“In a context where more than 70 percent of the country’s elephant population reported in 2011 has died within 13 years, it is difficult to accept claims that the population has increased,” Supun said.
The conservationist pointed out that elephants have the longest gestation period among land mammals and that scientific studies have reported increasing interbirth intervals among female elephants together with high calf mortality.
“When such biological realities are taken into consideration, claims of a dramatic increase in elephant numbers become difficult to understand,” Supun said.
Supun believes that repeated references to increasing elephant populations risk fuelling public hostility towards elephants, particularly among farming communities already affected by crop raids and property damage.
“Such claims can create the impression that elephant populations are exploding and thereby promote retaliation against elephants as well,” Supun said.
According to Supun, Sri Lanka’s elephant crisis cannot be understood solely through population estimates. The real issue lies in the country’s failure to address human-elephant conflict through long-term, science-based solutions.
Sri Lanka continues to record among the highest levels of human-elephant conflict in the world. Every year, hundreds of elephants and dozens of people lose their lives as competition for land and resources intensifies.
Despite the scale of the crisis, Supun says authorities continue to rely on strategies that have repeatedly failed.

Lahiru Prakash
These include driving elephants into protected areas, strengthening electric fences to confine them there and allocating additional manpower to maintain fencing systems.
Supun was also critical of several proposals that emerged from district-level discussions on conflict mitigation, including the sowing of paddy and corn using Air Force drones and the planting of fruit orchards within protected areas.
“Such proposals fail to address the real ecological and social dimensions of the conflict,” Supun said.
While welcoming reports that the Government intends appointing a national-level mechanism to tackle human-elephant conflict, Supun said the challenge required intervention at the highest level of government.
“Given the gravity, complexity and geographical spread of human-elephant conflict, appointing any committee other than a Presidential Task Force is not useful,” Supun said.
He argued that a Presidential Task Force chaired by either the President or the Secretary to the President would be better positioned to overcome the bureaucratic delays and institutional fragmentation that have hindered previous efforts.
Supun also stressed the urgent need to restore and protect elephant corridors and home ranges that allow elephants to move safely across landscapes.
He cited the Koholankala elephant corridor in Hambantota as one example where removing obstacles could help reduce conflict while improving habitat connectivity.
At the same time, Supun questioned policies that permit the allocation of forest lands in areas identified by environmental assessments as crucial elephant ranges and movement corridors.
“The opening of elephant corridors and the protection of elephant home ranges must be carried out scientifically and consistently if they are to succeed,” Supun said.
Beyond tourism, Supun emphasised the ecological importance of elephants.
“Elephants are ecosystem engineers. Through their feeding habits and movements, they help maintain habitats that support numerous other species. In many ways, they create safer and healthier environments for wildlife,” Supun said.
According to Supun, protecting elephants means protecting entire ecosystems and the biodiversity upon which Sri Lanka’s wildlife tourism industry depends.
“By protecting elephants, we are also protecting the biodiversity that makes Sri Lanka one of the world’s premier wildlife tourism destinations,” Supun said.
As Sri Lanka seeks to expand tourism earnings and strengthen its reputation as a wildlife destination, Supun believes the country faces a defining choice: continue with policies that have failed to stem elephant deaths and human-elephant conflict, or embrace a science-based conservation strategy that safeguards both people and wildlife.
Without a fundamental shift in policy and political will, Supun warned, Sri Lanka risks losing not only one of its most iconic species but also the ecological and economic benefits that elephants continue to provide.
“The suffering of both farmers and elephants will only intensify unless meaningful action replaces rhetoric,” Supun said.
By Ifham Nizam
Features
Top Model of the World 2026
Back-to-back victory for Colombia
Katherine Castaño of Colombia claimed the Top Model of the World 2026 crown, securing a historic back-to-back victory for her country. Angelica Sanchez of Puerto Rico was named first runner-up, and Eunice Deza of the Philippines finished as second runner-up.
Katherine was crowned by outgoing titleholder Natalia Garizabal Vera of Colombia.
Several special category awards, and subsidiary titles, were also presented during the Top Model of the World 2026 pageant.
These awards recognised excellence in modelling, peer support, and regional representation.
Primary Subsidiary Titles

Sri Lanka’s Netalie Withanage: Top 16 at
the grand finale
Miss Globe 2026: Valentina Tabares (Ecuador) — Awarded to the contestant who perfectly balances fashion modelling with traditional beauty queen qualities.
Queen of Europe 2026: Mia Danielle Williams (United Kingdom) — Given to the highest-ranking candidate from a European nation.
Special Awards Recognition
Audience Iconic Award: Charly (Dominican Republic) — Won via the official public online vote, granting her a fast-track direct entry into the Top 6.
Exotic Model of the World: Angel Emeka (Nigeria) — Awarded for exceptional editorial presence and strong runway performance.
Best Body Award: Thailand — Voted directly by fellow contestants at the Flow Spectrum Hotel. The highest-ranking runners-up for this category included Zambia, South Africa, Colombia, and Ghana.

Angelica Sanchez (Puerto Rico): 1st Runner-up
Final Placement
Winner: Katherine Castaño (Colombia)
1st Runner-Up: Angelica Sanchez (Puerto Rico)
2nd Runner-Up: Eunice Deza (Philippines)
Top 6 Finalists: Included contestants from the Dominican Republic, Romania, and Germany.
The pageant, known for focusing on professional modelling careers over just beauty, brought together 36 models from around the globe for two weeks of runway, photoshoots, and cultural events.
Sri Lanka’s Netalie Withanage walked among 36 of the world’s best and powered her way into the Top 16 at the grand finale.
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