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Big business, good profits from the port’s SPBM and Mahaweli heavy transport

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Single Point Mooring Buoy

(Excerpted from Simply Nahil: a maverick with the Midas touch, the Nahil Wijesuriya autobiography)

While operating the tugs ‘MT Sigiri’ and ‘MT Nilgiri’ through Off Shore Marine Services – an East West subsidiary – a Single Point Mooring Buoy or SPMB was installed off shore from the Colombo Port. An SPMB consists of a buoy that is permanently moored to the seabed by. utilizing multiple mooring lines/anchors/chains allowing cargoes of liquid petroleum products to be transferred from tankers out at sea.

An SPM contains a bearing system that allows a part of it to rotate around the moored geostatic subsea manifold connections and weathervaning tankers. SPMs are capable of handling ships of any tonnage, including the very large crude oil carriers when no alternative facility is available. In shallow water, SPMs are used to load and unload crude oil and refined products from onshore and offshore oilfields or refineries, usually through some kind of storage facility. These buoys are usually suitable for use by all types of oil tankers. and the moorings usually supply to dedicated tankers which can moor without assistance.

Whenever a tanker brings crude oil into Colombo, she is anchored off the edge of the port and a flexible hose goes down connecting to one of the stationary pipes on the pier. In order to secure the ship from drifting or the connected hose being damaged during bad weather, a tug is in attendance to keep the ship in place.

Ever since the SPBM was installed by the Hong Kong-based Swire Group – owners of Cathay Pacific Airways, a tug on a renewable charter was also provided by them. This was a lucrative business that was hijacked by the Swire Group, thereby every tender forwarded by the Petroleum Corporation carried the exact specifications of the Swire Group’s tug on charter, thus stalling everyone else from getting the business. This tug was painted red.

When Nahil realized that local service providers were being sidelined by the contractor, with their focus on the Swire Group tug, he advised those from Petroleum Corp involved in this project, since they were so specific, to include the Swire Group name by painting it on the back of the tug.

Off Shore Marine Services (an East West subsidiary) owned two tugs that did not meet with the standards or specifications required, although the specifications could be rectified by modification.

There is something known as a ‘bow thruster’ which is fixed on the vessel underwater — a little tunnel with a pipeline inside that pushes the water to either side as a way to get control of the ship.

Off Shore Marine Services had a 150 horsepower tug. However the requirement of the contractor, Petroleum Corporation and the Ports Authority, was 200 horsepower. Since its bow was under capacity, Off Shore Marine Services gave a guarantee to the contractor indicating it would upgrade the bow thruster to the required capacity.

Lester was in Germany buying the 200 horse power bow thruster when the Iran/Iraq war broke out. Unfortunately, due to this unpredicted incident, he couldn’t ship it immediately because of a new ruling requiring a 48-hour cooling period for all cargo, in case they were explosives. With a confirmed deadline set for installation and handing over, the only viable solution was to ship it as personal baggage, which Lester did, using his credit card. Thankfully the 48-hour rule did not apply to his 1.5 tonnes of personal baggage!

Nahil modified a Massey Ferguson tractor and mounted it on the tug, so the wheel could pull the rope. They won the contract for two years. Nahil says of the Ports Authority people, “They were always appreciative of real effort like this and supported us 100%.”

It was now the early 1980s. While his business boomed. his personal life was in shambles. The late nights and almost every week spent building his empire was taking a toll on his marriage. Although a great provider, he was ‘never home,’ according to Indrani. She was right. No amount of excuses could get him out of this situation. He emphases that the concept of ‘happy wife, happy life’ was never for him.

Maybe the fact that he is a stickler for detail contributes to his inability to find any person, man or woman, who meets his exceptional standards long- term. He tells me that he is a “hands-on person and a perfectionist”. In his youth he figured out that delegating never works for him, making him seem obnoxious. “Who cares? Isn’t getting the job done of utmost importance? I am a 100% results-oriented person. In my pyramid of life at the acme comes work, with everything else trailing behind in whatever order.”

Beautiful Arches at the Chiang Mai Hotel

Nahil was in Singapore in the Cross World Navigation office of Captain Charles Gnanakone, on the 20th floor off Robing House, when Lester called him saying, “Nahil, I have something terrible to tell you.” Nahil says. “My first thought was someone had died.” Lester said ‘Indrani has left you’. In absolute relief, I said, ‘Is that all?” Nahil was relieved because he was expecting to hear about a death in the family or some other disaster. Lester added: “Anyway, don’t do anything rash,” to which he replied, “I’m with Charlie now, the window is open, and I am about to jump off.” His little joke cut through the seriousness of the conversation and they laughed it off.

Nahil got back to Colombo once his work was done to find out that Vajira, who was around 18 months at the time, had been taken to Nuwara Eliya by Indrani in an ‘Eveready’ van and was living there in a guest house. Nahil borrowed Lester’s car, and hastened to Nuwara Eliya accompanied by Maggie, baby Vajira’s nanny, with details of their whereabouts, first dropping in to see his father in Kandy to keep him informed, After which he proceeded to Nuwara Eliya. Once he got there he did a stakeout for the ‘Eveready’ van and found it parked opposite the Priory Guest House on High Street. He went in, picked up his son and headed straight to the Police station, where he gave them a statement to the effect and brought Vajira back to Colombo.

After this he left their marital home and took refuge at No.36, Siripa Road, the home of his late friend, Ana Malalgoda who was a close buddy. A few days later he was advised by his sisters that he should let his wife have custody of the boy for various reasons, one being his tender age, which he says “made sense” at the time,, He therefore gave Indrani full legal and physical custody of Vajira. By April of that year, Indrani and Nahil separated, with Indrani and Vajira living in her recently-acquired house in Dehiwala. Finally, they divorced in 1982 and she remarried.

Later on, after the brouhaha had settled, he moved to an annex, a garage extension down Havelock Road, owned by Rienzie Perera. Initially, Nahil had access to Vajira whenever he wanted to visit him. However, subsequently his visits were restricted and he could see Vajira only at Indrani’s home. Even taking Vajira to the beach was not a possibility.

Ananda Malalgoda

Ana had a heart issue and needed funds to go in for a heart bypass. In order to raise money for the operation, he wanted to know if Nahil would be interested in buying a block of land behind the Grand Hotel he owned in Nuwara Eliya “I was enthusiastic. Besides helping Ana, the location of the land seemed great. I said to Ana ‘let’s go take a look at it.’ Once they got there, sitting inside the car, he requested Ana to point out the boundaries of his property. Ana just waved his hands around and said, “Somewhere there, machang.”

Noting the potential, he agreed to buy the land. After settling Ana he developed the land, paved a new road right up the hill bordering one side of the land, opened the by-pass, blocked the land out and sold it all off within weeks of developing the site. Driving pass the land recently, he says, “It’s heartening to see some nice hotels built on this site after the road was paved. Interesting stuff.” He then fondly recalls a trip he made to Chiang Mai, Thailand with Ana, Nawaz Rajabdeen, and customs lawyer M.L.M. Ameen, where they stayed at a hotel with beautiful arches.

Back on the subject of his business, it was by now a fully-fledged company with an excellent infrastructure in place geared to handle all aspects of shipping and road haulage. It was well-equipped and had the necessary haulage equipment to transport containers and heavy machinery throughout the island. The heavy vehicles and equipment were parked at their container yard, down Dutugemunu Mawatha, Peliyagoda.

East West Haulage

It was during this era that under the accelerated Mahaweli development programme the Victoria Dam project which was originally proposed in 1961, was sped up by the newly-elected J.R. Jayewardene Government in 1977 on a plan prepared with the assistance of the United Nations Development Programme (UNDP) and the Food and Agriculture Organization (FAO) after a study of the project. The purpose of the proposed project was to ease economic difficulties within the country. It was under the purview of the UNP Government’s Minister of Mahaweli Development, Mr. Gamini Dissanayake.

The plan was implemented to irrigate 365,000ha of land and provide 470 MW of electricity. The construction of the project was inaugurated in 1978, with the implementation of the main structure in 1980 and completed in 1985. The construction of the dam tunnel was a joint venture between two British firms, Balfour Beatty and Edmund Nuttall, while the Constain group, a British technology based construction and engineering company carried out the construction of the power stations.

After the project was sanctioned there was a fleet of local haulage companies, including East West Haulage, Cargo Boat Dispatch Co., Renuka Transport and D.P. Jayasinghe — to name a few — with their sights set on clinching the transport for this project including similar projects being developed simultaneously. During this era, there were no 40-foot trailers available for road transport, with the only available trailer working inside the port maintained by Colombo Dockyard. The Kotmale project was being handled by a Swedish firm, Skanska.

It must be pointed out and highlighted that Mr. Gamini Dissanayake maintained a very professional approach to awarding the transport contracts. There was no way he could be influenced or pressured into channelling any of the contracts to family or friends in the business. The contracts were awarded strictly based on how well equipped and experienced the contractor was. East West Haulage was very well equipped, owning a fleet of sophisticated haulage equipment they had invested in, thus enabling it to clinch a good part of the Victoria Dam haulage, which eventually extended to Kotmale, Randenigala, Madhuru Oya and Kelanitissa.

These were purpose-built haulers designed by East West. It was obvious to all that East West Haulage was transporting really large and difficult cargo to the dam sites, while the other contractors were hauling stuff like cement bags and steel reinforcement beams, among a host of other simple cargo. “It seemed that all the complicated cargo was directed for haulage only by us,” says Nahil.

Among the ‘melting pot’ of foreign nationals involved in these projects was a German, Mr. Koslowski, a freight forwarder, representing the German shipper to whom East West Haulage was a subcontractor, responsible for hauling its freight from the Colombo Port to the dam site. Working directly for the German freight forwarder and not the locally-based contractor was an important advantage.

Usually before a large piece of machinery was transported, the size of it in a box – length, breadth, height and a ‘3D’ image, pointing to the centre of gravity is sent with the pre-shipment details, for the hauler to plan out the transport accordingly. On receiving the specifications of a particularly large package, to which a quotation was forwarded according to the specifications received by East West, including the transport cost based on transporting the package along the shortest route to Kotmale, which was via Gampola.

To their dismay the package, once it arrived posed a problem as it was a Swedish Koni Gantry crane which was a foot wider than the Gampola steel bridge. The hindrance was the catwalk on the gantry. Sourcing further route options they found the road via Wellawaya to be the next best option, though it was a major circuitous and dangerous route. A quote was forwarded to the shipper based accordingly, which ran into a colossal amount of money.

The gantry crane is built like a trolley that moves vertically and functions as a lift for the turbines of the powerhouse during maintenance. Nahil suggested to Mr. Koslowski that they should cut off the catwalk on the crane, enabling it to be hauled on the original route via Gampola. Immediately Kos wanted the price quoted to be reduced but Nahil insisted the price remains the same but if it made him happy, they could haul it along the circuitous route.

Then Kos insisted the price should be reduced since they were going to cut off the catwalk of the crane. Nahil refused to reduce the price, requesting a letter from Kos to the effect that, if anything should happen to the equipment in transit since he insisted they take the circuitous route, even though a workable solution had been found, he would be responsible. Kos caved in and acceded to plan B, requesting that they weld the catwalk back by X-ray super first class welding. Nahil agreed to the request saying, “No worries!” He made a huge profit considering the welder signed up to do the job was a former welder from Colombo Dockyard, who did it at no charge.

It seemed that Mr. Koslowski a.k.a. Kos was a mini legend at EW. He had nothing to do with his time, thus wasting Nahil’s time as well by being a regular visitor to the East West office, while they were operating from the Cargills building in Fort. Whenever Nahil came up with a good idea, he’d say ‘Hey Nahil that’s a great idea,’and then he would return a couple of days later trying to sell Nahil’s idea back to him until Nahil would gently remind him that it was his idea to begin with. Subsequently, ‘doing a Koslowski’ was a term used at East West on anyone trying the same lark.

As the Victoria project was coming to a close, they bought a 56-wheel trailer from Costain. This trailer was used to transport the penstock, a structure of big steel tubes that take the water down. This is the biggest trailer available on the island. The trailer is an all-wheel steer and the bed can be lifted about two feet off the ground. This trailer was used by East West Haulage for the Kelanitissa turbines since there were no cranes at the time capable of lifting these machines.

The heavy load is put down by the ship which has the gear to load it on to this trailer, after which they would drive over the foundation, put bars across and lower the trailer. Once the turbines are placed on the steel bars, the trailer moves off. The turbine is lowered into the foundation using pneumatic jacks. Nahil found this extremely thrilling. He loved handling these operations personally, never letting anyone steal his joy. In retrospect, he says, “this was really simple stuff.”



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Sri Lanka’s vanishing wetlands put elusive otter under growing threat

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International Eurasian Otter Workshop-Colchester, United Kingdom

The world marked World Otter Day 2026 recently. Conservationists are warning that Sri Lanka’s rapidly disappearing wetlands, polluted waterways and unplanned development are placing increasing pressure on one of the island’s most elusive freshwater predators, the Eurasian otter (Lutra lutra).

The species, locally known as “Diya Balla”, is the only otter found in Sri Lanka and is regarded as a key indicator of healthy freshwater ecosystems. Yet despite its ecological importance, experts say the animal remains poorly studied and largely overlooked in national conservation planning.

Naturalist and conservationist Chaminda Jayasekara, who has spent years documenting otters in Sri Lanka, said the species is facing mounting environmental pressures across the island.

Speaking to The Island, Jayasekara said habitat destruction, chemical pollution, road kills, sand mining, and increasing human disturbance are fragmenting the waterways on which otters depend.

“Otters are extremely sensitive animals. When wetlands are degraded or rivers become polluted, they disappear very quickly. Their survival is directly linked to the health of freshwater ecosystems,” he said.

Jayasekara, who specialised in MSc Environmental Management at the University of Hertfordshire, noted that while the species has been recorded across Sri Lanka’s wet zone, dry zone and coastal wetlands, scientific data on population numbers and distribution remain limited.

According to him, the decline of wetlands has become one of the most serious environmental issues facing Sri Lanka. Marshes, mangroves, irrigation tanks and riverine habitats are increasingly being altered by urban expansion, tourism infrastructure, encroachment and agricultural runoff.

He warns that the loss of these habitats not only threatens otters, but also weakens flood control systems, freshwater security and biodiversity resilience at a time when climate-related disasters are becoming more frequent.

Jayasekara said otters play a vital ecological role by helping maintain balanced fish populations and healthy aquatic ecosystems.

“When otters thrive, it tells us the river system is functioning properly. Their presence is a sign that water quality, fish diversity and habitat conditions remain healthy,” he explained.

One of the best-known locations for otter sightings in Sri Lanka is Aranga Pond, within the Horton Plains National Park, where the species has adapted to the island’s cold montane ecosystem.

However, conservationists stress that even protected areas are not immune to broader environmental degradation occurring outside park boundaries.

Jayasekara’s own work on otters gained prominence through long-term conservation efforts at Jetwing Vil Uyana, where a former degraded chena landscape was restored into a functioning wetland ecosystem.

The restored habitat eventually attracted Eurasian otters, fishing cats, grey slender lorises and numerous wetland bird species.

Over 14 years, Jayasekara carried out field observations, camera trapping and awareness programmes involving hotel staff, surrounding schools and local communities.

“What happened at Vil Uyana clearly showed that habitat restoration works. If degraded ecosystems are given time to recover, wildlife can return naturally,” he said.

He added that wetland restoration should become a central component of Sri Lanka’s environmental policy, particularly as climate change intensifies droughts, floods and biodiversity loss.

Chaminda collecting scat for research purposes in Sigiriya

He says wetlands are among the planet’s most productive ecosystems, functioning as natural water filters and carbon sinks while providing breeding grounds for fish, amphibians and aquatic mammals.

Yet globally, wetlands are disappearing at an alarming rate, and Sri Lanka is no exception.

Conservation groups have repeatedly warned that illegal waste disposal, pesticide contamination and poorly planned infrastructure projects are severely affecting freshwater ecosystems throughout the country.

Jayasekara also highlighted the importance of stronger environmental education and community participation in conservation.

“Awareness is still very limited. Many people living close to wetlands do not realise the ecological importance of otters or the threats they face,” he said.

According to him, involving local communities in conservation monitoring is essential if Sri Lanka hopes to safeguard the species in the long term.

He also pointed to the growing international interest in otter conservation.

In November 2025, Jayasekara represented Sri Lanka at the International Eurasian Otter Conservation Workshop held at Colchester Zoo and organised by the International Otter Survival Fund.

The workshop brought together nearly 100 researchers, conservationists and wildlife experts from 33 countries to discuss emerging threats facing Eurasian otter populations.

Jayasekara presented Sri Lanka’s experience under the theme Rewilding Through Hospitality, focusing on how habitat restoration and sustainable tourism practices at Vil Uyana contributed to otter conservation.

“The international response was extremely encouraging. Many delegates were surprised that a tourism property in Sri Lanka had quietly carried out wetland conservation work for more than a decade,” he said.

Discussions at the workshop also examined wider environmental concerns including river pollution, declining fish stocks, illegal killings and habitat fragmentation affecting otter populations across Europe and Asia.

New conservation technologies such as AI-assisted wildlife tracking and environmental DNA surveys were also highlighted as emerging tools for monitoring elusive species.

Jayasekara said Sri Lanka urgently requires more scientific surveys, stronger environmental law enforcement and greater investment in freshwater conservation research.

He warned that unless wetlands and waterways are protected, several lesser-known freshwater species could face severe decline in the coming decades.

Environmentalists say otter conservation should not be viewed in isolation but as part of a broader effort to protect entire freshwater ecosystems that millions of Sri Lankans depend on for drinking water, irrigation and livelihoods.

He further noted that healthy wetlands also strengthen climate resilience by absorbing floodwaters, reducing soil erosion and supporting groundwater recharge.

As Sri Lanka experiences increasingly erratic weather patterns linked to climate change, conservationists argue that protecting wetlands is becoming both an ecological and economic necessity.

Jayasekara believes Sri Lanka still has an opportunity to become a regional example in balancing tourism, biodiversity conservation and habitat restoration.

“The otter teaches us an important lesson,” he said. “If rivers are protected and wetlands are respected, nature has an incredible ability to recover.”

This year’s observance of World Otter Day 2026 is, therefore, serving not only as a celebration of one of the world’s most charismatic mammals, but also as a reminder of the urgent need to conserve the fragile freshwater ecosystems upon which both wildlife and human communities ultimately depend.

Eurasian otter

By Ifham Nizam

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Malaiyaha Tamil people: Healing the Oldest Wound of Independence

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Hands of a Maliayaha tea estate worker

In their Vesak messages this year, President Anura Kumara Dissanayake and Prime Minister Harini Amarasuriya highlighted the values of reconciliation, coexistence and justice as essential to Sri Lanka’s future. President Dissanayake emphasised that Buddhism’s teachings remain deeply relevant to contemporary society and described Vesak as a symbol of “mutual understanding, unity and coexistence among all communities” and of reconciliation itself. Prime Minister Amarasuriya similarly called for the building of a society in which justice is assured to all irrespective of caste, race or religion. These messages were not merely religious aspirations, they were a direct challenge to the most serious failures in Sri Lanka’s post-independence history. These include the three-decade-long war, its human rights violations and the inability to implement a political solution.

These have been and continue to be the challenges that have prevented Sri Lanka from reaching its full potential. Added to this have been the persistence of social and economic inequalities that continue to marginalise communities at the bottom of the social hierarchy. One of the most enduring examples of such injustice is the experience of the Malaiyaha Tamil community. The scale of the original exclusion is worth understanding clearly. According to the 1946 Census, the Malaiyaha Tamil community numbered approximately 780,600 persons and constituted 11.73 percent of the country’s population making them the second largest ethnic community, larger than the Sri Lankan Tamil community who numbered 733,700 or 11.02 percent of the population at the time

The denial of citizenship and voting rights to the Malaiyaha Tamil community was the first major injustice inflicted on an ethnic minority in post-independence Sri Lanka. The consequences were devastating and long-lasting. A community that had contributed enormously to the country’s economy through its labour on the plantations was excluded from political participation and denied basic rights. This was a political and moral failure that cast a long shadow over the country’s post-independence history. Responsibility for that injustice needs to be shared widely. Political leaders across ethnic lines failed to resist it. The result was the marginalisation of a community whose contribution to national prosperity far exceeded the recognition it received. Today, nearly eight decades later, Sri Lanka has an opportunity to correct that historic wrong but only if economic reform is matched by genuine social inclusion.

Longstanding Grievances

The NPP government has repeatedly acknowledged the need to address the longstanding grievances of the Malaiyaha Tamil people. In its election manifesto, the NPP pledged to improve living conditions in plantation areas, strengthen land and housing rights, ensure equal access to education and public services, and integrate plantation communities more fully into national development. The NPP’s Nuwara Eliya Declaration of 2023 similarly recognised that the plantation community had suffered generations of exclusion and promised measures to address disparities in housing, land ownership, infrastructure, education and economic opportunity. The need for such action is plain to see. While citizenship issues have largely been resolved over time, the socio-economic consequences of decades of exclusion remain deeply entrenched and continue to shape daily life in plantation communities.  A conference organised by the Institute of Social Development to mark International Tea Day on May 21 at the BMICH brought out this and many other salient issues.  Headed by P Muthulingam the organisation has advocated for the rights of the Malaiyaha Tamil people for the past 35 years to be equal citizens who enjoy social and economic justice.

The central problem facing many plantation workers is the low level of income they receive. Daily wages remain among the lowest in the country relative to the difficulty and intensity of the work. Plantation labour continues to depend heavily on methods that have changed little over generations. Productivity remains low compared to competing tea-producing countries — not because workers lack capability, but because sustained investment in their welfare, skills and economic mobility has been withheld. Workers consequently remain trapped in a cycle of low wages and limited economic mobility. Their housing situation compounds these difficulties. Many plantation families continue to live in housing owned either by plantation companies or the state. Lack of secure ownership limits their ability to accumulate assets, access credit or make independent decisions regarding their future. When Cyclone Ditwah damaged plantation housing, it exposed the inability of those living in that housing to access state compensation as they did not own the housing in which they lived.

The problems extend beyond the central highlands. Plantation workers living in private estates and smallholdings in other parts of the country face similar challenges. A recent Amnesty International report documented serious abuses affecting Malaiyaha Tamil workers in private tea estates in the Southern Province.  These include wage withholding, debt dependency, restrictions on movement and intimidation and practices the report argued correspond to internationally recognised indicators of forced labour. These findings are not peripheral. They reveal that the structural exclusion of the Malaiyaha Tamil community is not a relic of the past but an active, ongoing condition. Economic vulnerability and social marginalisation continue to leave many plantation workers without effective protection or access to justice. It is against this backdrop that the government’s recent plantation reform initiative assumes special significance.

Second Phase

The government has announced the second phase of a programme to make underutilised plantation lands and assets available for investment. The objective is to transform underperforming assets into productive enterprises capable of generating employment, attracting investment and revitalising regional economies. The programme seeks to modernise the plantation sector, improve productivity and create new opportunities in tourism, renewable energy and export-oriented industries. These objectives are necessary and welcome. However, economic reform alone will not be sufficient and Sri Lanka’s own history provides the warning. Previous rounds of plantation modernisation pursued productivity gains without addressing the structural disempowerment of the people at the centre of the industry. The result was investment that generated wealth without distributing it.  The workers who produced the wealth were once again treated as labour inputs rather than as beneficiaries. If the current reform follows the same logic, it risks reproducing the same failure.

For reform to succeed, plantation workers must be recognised not merely as a labour force but as stakeholders with rights, aspirations and a legitimate claim to share in the benefits of development. Housing ownership, secure land tenure, quality education, vocational training and entrepreneurship need to be built into the reform process from the outset. The government’s commitments to the Malaiyaha Tamil community therefore need to be incorporated into every stage of the reform process. On the contentious question of land, the government should consider establishing an independent national land commission. Such a body should include respected government officials, professionals and representatives from all ethnic and religious communities. It should review land policy comprehensively, develop transparent principles for allocation and use, ensure fairness in decision making and provide a trusted mechanism for resolving disputes. A credible land commission would help build public confidence that land reforms are being undertaken in the national interest rather than for the benefit of particular groups.

The correction of historic injustices should not be viewed as a concession to one community. It should be understood as an investment in national unity, because societies do not become stronger by maintaining the exclusion of those they have wronged.  On the contrary, they become stronger by ending it. The first great injustice committed against an ethnic minority after independence cannot be undone. But its consequences can be addressed, and doing so would strengthen reconciliation, enhance social cohesion and bring Sri Lanka closer to the vision of a country in which all communities live with equal dignity and equal hope. This is what the Vesak messages of the President and Prime Minister promised. The plantation reform now underway is the moment to make good on that promise not in words alone, but in sustained policy that endures beyond any single government and reaches the people who have waited longest for it.

by Jehan Perera

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IMF relief is not economic recovery: Sri Lanka’s real test begins now

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The IMF’s latest decision to release approximately US$695 million to Sri Lanka provides an important measure of financial relief, but it should not be mistaken for full economic recovery. While the approval reflects progress in stabilisation, fiscal discipline, and reform implementation, the country still faces deep structural weaknesses, social pressures, and external risks. The real test begins now: whether Sri Lanka can convert this temporary breathing space into lasting reform, productive growth, stronger institutions, and national resilience. This moment should not be used for political celebration, but for serious national reflection and responsible action. Sri Lanka must now resolve to support a clear policy direction, a practical reform programme, and a long-term national development path — not merely an individual, a party, or a political camp.

1. IMF Relief: A Necessary Step, but Not a Final Solution

The IMF Executive Board recently completed the combined Fifth and Sixth Reviews under Sri Lanka’s Extended Fund Facility, allowing the country immediate access to SDR 508 million, approximately US$695 million. This decision represents an important step in Sri Lanka’s ongoing economic recovery process following the severe crisis that led to sovereign debt default, shortages of essential goods, high inflation, and the collapse of foreign reserves in 2022.

However, this decision must be understood with great sensitivity. IMF relief is not the same as full economic recovery. It gives Sri Lanka temporary breathing space, helps rebuild a certain level of international confidence, and supports the continuation of the reform programme. However, this relief is not a magic solution that can automatically resolve the country’s deep-rooted economic problems. Fundamental challenges such as the debt burden, weak productive capacity, low export earnings, poor public revenue performance, weak fiscal management, excessive dependence on imports, corruption, and inefficient state-owned enterprises still remain unresolved. Addressing these challenges requires domestic reforms, disciplined policies, stronger production and export capacity, and a long-term national development programme. Therefore, the IMF decision should not be treated as a political victory or as proof of complete economic success. Rather, it should be seen as a reminder that Sri Lanka still has a long and difficult journey ahead.

2. Sri Lanka’s Progress Recognised by the IMF and Its Limits

The IMF’s approval indicates that Sri Lanka has made progress in several important areas. Inflation has been brought under control compared to the extreme levels experienced during the crisis. Foreign reserves have improved, the exchange rate has shown greater stability, and fiscal management has become more disciplined. The government has also continued to implement reforms in taxation, public finance, energy pricing, and debt restructuring.

According to the IMF assessment, performance under the programme has generally been strong. Several quantitative performance targets have been met, while many structural benchmarks have either been achieved or implemented with some delay. This shows that Sri Lanka has remained broadly committed to the reform path agreed under the IMF-supported programme.

Yet this progress remains fragile. Stability achieved through external support must now be converted into genuine economic strength.

3. Conditions and Responsibilities Attached to the IMF Programme

IMF support does not come merely as financial relief; it comes with a set of important reform conditions and responsibilities that Sri Lanka must fulfil. Key among them are maintaining fiscal discipline, improving government revenue, continuing cost-reflective pricing for fuel and electricity, strengthening public financial management, restructuring state-owned enterprises, protecting institutional independence, and preventing the accumulation of new external payment arrears.

The main objective of these conditions is to restore macroeconomic stability, strengthen fiscal credibility, and rebuild international confidence in Sri Lanka. However, these reforms also carry social and political consequences. Higher taxes, market-based utility pricing, and strict expenditure controls can place a heavy burden on ordinary citizens, especially low-income families, small businesses, pensioners, and salaried workers. Therefore, in implementing reforms, economic discipline alone is not enough. Fairness, transparency, and social sensitivity towards vulnerable groups must also be treated as essential priorities.

4.The Impact of IMF Conditions on People and the Economy

One major social consequence of the IMF programme is the increased pressure it can place on household incomes and living standards. When electricity, fuel, and other essential services are priced on a cost-recovery basis, people may have to face a higher cost of living. Although such reforms are necessary to reduce the losses of state-owned enterprises and maintain fiscal discipline, they can weaken the purchasing power of ordinary citizens if strong social protection programmes are not in place.

Another important consequence is the pressure placed on the operating costs and stability of small and medium-sized enterprises. Higher taxes, increased utility costs, fuel and electricity expenses, and the rising cost of borrowing can affect business survival, job creation, and new investment decisions. If reforms are implemented without sufficient attention to production, exports, and small businesses, the country may achieve short-term fiscal stability, but long-term economic growth could remain weak.

There is also a political risk that cannot be ignored. If people feel that the burden of reform is not being shared fairly, reform fatigue and public frustration may emerge. If ordinary citizens are expected to make sacrifices while corruption, waste, and political privileges continue, public confidence in the reform process will decline. Therefore, for IMF-supported reforms to succeed, fairness, transparency, and social sensitivity must be firmly ensured alongside economic discipline.

5. The Real Test Before Sri Lanka

Sri Lanka’s real test begins now. Beyond temporary financial relief, the country must now prove that it can build a strong economy that generates income and can withstand external shocks. Therefore, our objective should not be limited to securing the next IMF tranche. While an IMF tranche may provide short-term breathing space, it does not guarantee long-term economic independence or stability. The real objective should be to create an economy that does not have to return to the IMF repeatedly during every crisis, but can stand on its own productive strength, export earnings, and fiscal discipline.

This requires fiscal discipline. However, discipline alone is not enough; economic growth is also necessary. Taxation is necessary. But increasing taxes alone is not a solution; production, investment, and exports must also be expanded. Debt restructuring is necessary. But beyond reducing the debt burden, Sri Lanka must also build an economic foundation that does not depend excessively on borrowing in the future. Sacrifices may be asked of the people. But for those sacrifices to be fair, accountability, transparency, and exemplary conduct from leaders are also essential.

Economic recovery cannot be sustained in the long term through financial assistance alone. Such support can provide breathing space during a crisis, but a country is rebuilt on the strength of its own institutions, productive capacity, export competitiveness, and public trust. Therefore, what Sri Lanka needs today is strong institutions, income-generating industries, a broader export base, food security, energy security, and a system of governance that people can trust.

6. Policy Priorities for Sustainable Recovery

Sri Lanka must now move from crisis management to national transformation. First, fiscal discipline should continue, but it must be fair. Revenue mobilisation should not rely only on increasing taxes on the same groups of people. The tax base must be broadened, tax administration must be improved, and tax evasion must be reduced.

Second, social protection must be strengthened. The most vulnerable groups should be protected through well-targeted assistance. Reforms will be more acceptable if people feel that the poor, elderly, disabled, and low-income families are not abandoned.

Third, state-owned enterprise reform should be carried out with transparency and public accountability. The objective should not merely be privatisation, but efficiency, professionalism, financial discipline, and better service delivery.

Fourth, Sri Lanka must prioritise export-led growth. The country cannot build a stable future by depending mainly on borrowing, remittances, and consumption. Agriculture, tourism, manufacturing, IT services, logistics, education, and value-added exports must become central pillars of national development.

Fifth, governance reform is essential. Without reducing corruption, political interference, wasteful expenditure, and weak implementation, no IMF programme can create lasting recovery. Economic reform and governance reform must move together.

7. From Temporary Relief to Lasting Recovery

The IMF decision gives Sri Lanka an important opportunity. It provides the country with space to strengthen economic stability, rebuild international confidence, and move forward with essential reforms. However, it is not a guarantee of success. It is only a step that gives the country some breathing space. It is now Sri Lanka’s responsibility to use that space wisely, with discipline and accountability to the people.

The country must now decide whether it will continue the old cycle of crises, debt, temporary relief, and political blame, or whether it will build a new national programme based on discipline, productive capacity, fairness, and accountability.

At this moment, true success cannot be measured by the amount of money received. It must be measured by whether Sri Lanka can build an economy that produces more, exports more, saves more, is governed better, and protects its people more effectively. The real victory is not receiving IMF relief, but building a strong national economy that will not depend excessively on such relief in the future.

Public Appeal: Let Us Choose a Programme, Not a Personality

This US$695 million will not solve every problem in our country. It may provide temporary financial relief and support the continuation of reforms, but it cannot replace the hard work required to build a productive, disciplined, inclusive, and self-reliant economy.

Therefore, this is the right time for all Sri Lankans to rise above narrow political loyalties and support a clear policy direction, a practical reform programme, and a long-term national development agenda — not merely an individual, a party, or a political camp. What Sri Lanka needs today is not the victory of a personality, but the victory of a responsible national programme that can restore confidence, protect the vulnerable, promote production, strengthen exports, ensure accountability, and secure a better future for the next generation. The question before us is simple but decisive: are we ready to make that choice?

by Prof. Ranjith Bandara,
PhD (Qld.,)

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