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Can we have good economics and bad politics?

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Edited by Amaya Vershuur

On Sunday, July 3, a week prior to President Gotabaya Rajapaksa’s resignation, I wrote an article called ‘’ in which I reflected on the proposed economic reform programme, the role of the International Monetary Fund (IMF) and argued for a broad coalition of activists, political leaders and professionals to come together to provide a more just and decent economic reform plan for all Sri Lankans.

I received a response the very next day from Shanta Devarajan, former Chief Economist of the World Bank, familiar with Sri Lanka and knowledgeable about the workings of the IMF. While much has changed since President Gotabaya Rajapaksa’s resignation, much remains the same – in particular Sri Lanka’s need for an IMF bailout. Below is our frank discussion of the impact of an IMF bailout on Sri Lanka’s economic situation.

Shanta D:Thanks for sharing the article. Since you asked for reactions, I will share mine with you. While your proposed “Next Steps” are perfectly sensible, I think your characterization of the economic reform program and the role of the IMF and other IFIs is incorrect (and perpetuates some myths from the 1970s). Furthermore, a closer look at the current situation in Sri Lanka provides an opportunity for the economic and political agendas to come together.

Is the government strong enough to implement the necessary reforms?

Shanta D: In your article you state that, “Even if this government (the previous government headed by Gotabaya Rajapaksas with Ranil Wickremesinghe as Prime Minister) lasts it would be too weak to carry out the stringent economic reforms that the IMF is likely to impose on Sri Lanka.” However, the government has already undertaken most of the reforms proposed in the programme. So it’s hard to see how the government is too weak to carry out the reforms. Furthermore you mention “Caught between the economic pressure of IFIs and lenders…” The only pressure is coming from the Sri Lankan government, which took the decision to call for a debt standstill and embark on a debt restructuring program and an IMF program. In order to achieve a debt restructuring (i.e. get the creditors to agree to take a haircut on their bonds and debts), the Sri Lankan government has to show that it has a credible fiscal policy that will ensure that it can pay back the (reduced) level of debt. So all of the economic reforms in the IMF program are reforms needed to restore stability to Sri Lanka’s fiscal policy so that it can reduce its debt. The pressure is self-imposed because without a debt restructuring, the economy would simply collapse and be unable to recover for a long time (just look at Lebanon).

Ram M:In terms of government weakness/strength, I do think the government may be strong enough to carry out some of the reforms – such as flexible exchange rates and some tax increases. Getting rid of subsidies though maybe trickier. And I am not convinced they can reduce expenditure on State Owned Enterprises (SOEs) in the face of strong public sector unions. Even a vanity project like Sri Lankan Airlines is still to be privatized, leave alone the Petroleum Corporation and the Ceylon Electricity Board. For this to happen, you need a strong government with the support of the people willing to take on entrenched interests.

Shanta D:Currently, the government is working on schemes to provide alternative employment options for the laid-off workers in the privatized SOEs. One of them is to use the government-owned land to give these workers shares in the land, which they could then farm themselves or lease to other farmers. In any event, there is a lot of experience around the world in managing worker resistance to privatization. Programs such as voluntary retirement schemes and even cash transfers (as in Brazil’s Bolsa Familia) have overcome the much-feared resistance from workers. I don’t think having a strong government is either necessary or sufficient. It takes a creative plan and excellent public communication. The current situation in Sri Lanka helps because of the widespread antipathy to the status quo.

Ram M:I take your general point that worker resistance can be reduced by creative schemes. But I just do not see how a government that lacks support can be effective at coming up with creative ideas or good public communication. At a minimum there should be a plan and the government should communicate it. And preferably, the plan should be viewed as fair and that the money saved as not wasted – for example on SUVs for ministers. I do not see the current conditions reflecting that. Very few people – other than SLPP politicians – will see whatever the government does as legitimate.

My point is that a politically weak government is more likely to agree to external measures and lender/IMF pressure that leads to an agreement that is not as good, as one that could be achieved with a government that is strong. I do not really buy your point that this restructuring is self-imposed by the government. Yes we chose an orderly default instead of a disorderly default, as is the case in Lebanon. But we still have to agree on a debt restructuring programme. And I do not think there is only one type of debt restructuring programme that is given simply by our level of debt and ability to pay it off. In theory, yes. In practice, the programme will depend a lot on how effective the government is at coming up with options, negotiating its position and winning over friends and convincing detractors.

Shanta D:What is this “better agreement” that a strong government would agree to? The economic policies that are being agreed to in the Sri Lanka program are not that different from those agreed to by Korea during the Asian financial crisis of 1997, Argentina during its many crises, and Chad and Republic of Congo in the recent oil price decline of 2014. So extremely weak and extremely strong governments negotiate more or less the same policy package. This tells me that the policy package has to do with the economics of the situation rather than the politics (as it should be).

Ram M:On your comparison between the current Sri Lankan program and those implemented in other contexts, I am sceptical about the argument that short term pain is necessary for medium to long term gain. Most IMF programmes are associated with austerity – at least in the short term. Greece, Spain, not to mention many parts of Latin America. These measures end up punishing the people for the blunders or worse corruption of their leaders. And bilateral and multilateral lenders end up imposing these restrictions, not just because of good economics (balance the budget and reduce wasteful expenditure), but because of politics – a kind of morality play where rich countries (and their public) feel that someone should pay for this. That someone ends up being the poor, or at least the lower middle class and salaried folk – who had nothing to do with the bad decisions of their governments. They gained nothing from it. And indeed suffered from those decisions to begin with.

Shanta D:Let’s separate appearances from reality. Of course, these IMF programs are associated with austerity and when there is austerity, everybody suffers and in some cases, the poor suffer more (incidentally, the recent evidence is that the poor don’t suffer more than the non-poor). And in many cases, the middle class takes a hit. But you have to always compare this outcome to the counterfactual. What would have happened in the absence of the IMF program? In almost all cases, the economy would have collapsed and the poor would have suffered immeasurably. Since (by definition) we don’t observe the counterfactual, most people observe the hardship associated with the IMF program and blame the Fund. But the reality is that the Fund is trying to avoid an even bigger disaster from happening.

Furthermore, for a given austerity program, whether the poor are hurt more than the non-poor depends on the existing policies and institutions in the country. Typically, in these countries, the policies and institutions are captured by the elites. In Egypt, the energy-intensive industries are owned by government cronies who therefore keep energy prices low. Since these are powerful people, they make sure that the burden of an austerity program doesn’t fall on them, which is why they get off Scot free. World Bank programs try to dislodge these entrenched elites (subsidy reform, targeted cash transfers, SOE reforms, etc.) but, as you observed, there are limits given the existing political situation. And a program is needed to avert the bigger collapse. So the Fund and Bank compromise and allow some of the anti-poor distortions in the economy to continue, in order to get the program delivered. But the underlying problem is the policy and institutional framework in the country rather than the IMF program.

Who is to blame?

Ram M:The problem we are in is certainly self-inflicted, in that our corrupt governments borrowed more than we could pay off for non-productive projects. Those who pushed debt on the SL government, or for that matter any other badly run third world government, and lent money for corrupt projects do not pay a price. Sure some of them take a haircut, but many others have already recouped their investments.

Shanta D: Every loan has a risk associated with it. That is why lenders do a cost-benefit analysis of the project before financing. If they made a mistake with their cost-benefit analysis, then they do pay for it in the case of default. Of course, if the borrower doesn’t want to default and continues paying back the loan when it’s gone bad (just like Sri Lanka did paying off the bondholders when the country lost access to capital markets), that’s the borrower’s fault, not the lender’s.

Ram M:But there is “self dealing” or at least backroom dealing going on that leads to a country like Sri Lanka taking on more debt than it can pay back. Consider the Central Bank under Cabraal paying bond holders even after we lost access to capital markets. There is a private complaint in courts alleging that either through corruption or gross negligence he is responsible for the economic crisis in the country. But it is exactly this leap from Cabraal to Sri Lanka that I am pushing back against. Let us – only for the sake of argument – say that senior officials had a deal with bond holders. And promised to pay them back no matter what the consequences for Sri Lanka’s people. That is exactly the kind of “debt pushing” and back room deals by lenders and key officials in debtor countries that I am concerned about here. Why should the Lankan people pay the price for this? OK we elected President Gotabaya, and he appointed these officials. So it is our fault in the end. But isn’t that a bit of a stretch when it comes to accountability. Since we did not really elect President Gotabaya to undermine the economy in this way. Moreover, this lets bond holders off the hook – when they knowingly invest in shaky bonds on the basis of assurances given by “dodgy” officials. So my concern here is about “odious” debt where debt pushers not only fail to pay a price, but actually make a profit.

Shanta D:I’m still not convinced that the creditors did anything wrong. Anyone who buys an ISB is taking a risk. The bond can be paid back at face value or, if the economy gets worse, it could be worth a lot less on the secondary market. In Sri Lanka’s case, the ISBs were trading at a discount in 2021 because everyone saw that the economy was declining and Sri Lanka would probably not be able to pay back. However, the Sri Lankan government took the decision in January 2022 to pay back $500 million ISBs in full (starving the people of much needed imports). The bondholders who bought these ISBs at a discount in 2021 made a killing but that was because of the Sri Lankan government’s decision. Now, you could say that the people who bought Sri Lankan ISBs in the secondary market in 2021 may have had some inside information that Sri Lanka was going to pay in full, but I would think that even this information was not reliable and they were taking a risk. So I would put the blame for the current crisis squarely on the government.

What will be the impact of the economic reform measures for normal Sri Lankans?

Shanta D:In your article you state that, “Even if this government (then headed by Gotabaya Rajapaksa) lasts, it would be too weak to carry out the stringent economic reforms that the IFIs are likely to impose on Sri Lanka.” How do you know that the economic reforms are “stringent”? The program that is currently being negotiated between the government and the Fund includes tax increases, subsidy cuts, targeted cash transfers, interest rate increases, and exchange rate flexibility. They are not what any of us would call stringent.

Tax increases and subsidy cuts

Ram M:Tax increases and subsidy cuts can work in a “normal” situation. But in the context of an economic contraction they have the potential to move us in a downward economic spiral. In terms of tax increases, my concern is not about income tax, property tax or taxes on business profits. But particularly regressive taxes – such as VAT – that have a significant impact on the poor.

Shanta D:First, the international evidence on whether the VAT is regressive or progressive is ambiguous, leaning towards neutral or mildly progressive. Second, in the Sri Lankan case, note that the Rajapaksa administration reduced VAT rates by seven percentage points in November 2019. Did the poor benefit from this? I think the reduction was to benefit some powerful business interests. So the increase in VAT will also likely hurt those interests. Third, in the current situation in Sri Lanka, an increase in taxes, including VAT (which by the way is one of the most efficient ways of increasing revenues), is likely to reduce inflation, which helps the poor and, by making the fiscal balance more sustainable, will bring in foreign exchange, both through the IMF program and the debt restructuring.

Ram M:I want to just focus on whether or not VAT is regressive – not the repercussions of reducing the fiscal deficit on the poor. That is a bigger and separate debate – where the answer I think is that it depends on what the money is used for. Of course VAT is an effective way to increase revenues. And yes – the rich spend more – so VAT will lead to a larger share of taxes on the rich. But it leaves untaxed – income, wealth, property and savings. So isn’t the answer a combination of VAT and other taxes. And shouldn’t we be shoring up our capacity to tax, not just look at VAT?

Shanta D:Yes, of course we should be looking at other tax instruments as well but in the short run, the VAT is the most effective instrument we have to raise revenues. The other tax that we should be considering is rescinding all the tax incentives given to investors. This to me is the biggest scandal. A number of rich investors, foreign and domestic, pay no taxes because they received tax holidays when they invested in the country. First, the international evidence is these tax incentives don’t result in higher investment. Secondly, at this time of acute revenue shortage, when ordinary Sri Lankans are having to tighten their belts, it is unacceptable that this group of rich people get away Scot free. To be sure, taxing them would mean abrogating the agreement that they pay no taxes. But we have already abrogated a series of debt contracts (ISBs, etc.), so I don’t see why we shouldn’t do the same for these investment contracts.

That said, we should keep in mind two things. First, the VAT has proven to be a really effective instrument around the world, and especially in developing countries, as a minimally distorting form of taxation. Second, we should be trying to achieve our equity objectives through the fiscal system as a whole rather than separate the revenue and expenditure sides. Most developing countries try to achieve a neutral tax system and achieve their redistribution objectives through the expenditure system (it’s the reverse in developed countries). So I think you should focus on the impact of the fiscal system on the poor rather than looking at each tax instrument. The latter is in fact dangerous. I’ve seen many countries that introduce a highly progressive income tax system but one that doesn’t generate much revenue (Sri Lanka is a bit like that). They then don’t cut expenditures so they run huge fiscal deficits that lead to inflation, debt crises and the like which end up hurting the poor very badly.

Interest Rates

Ram M:On the increase in interest rates, while you need to fight (hyper) inflation, what about a situation where the poor are indebted and spend significant parts of their income servicing debt. How is this affected by inflation – positively or negatively. If I am poor and heavily indebted, would inflation be a good thing?

Shanta D:In general, inflation helps debtors and hurts creditors (because the real value of what they have to pay back is eroding). If there are genuinely poor people who have high debts, there are ways of forgiving their debts. But you need to be careful here. Many of the people who claim to be poor and indebted are not poor (that’s why they were able to take on the loans in the first place). For instance, many tuk-tuk drivers borrowed to buy their tuk-tuks. But these are mainly urban dwellers in Colombo who come from the 80th percentile of the income distribution. In general, we should avoid giving relief to specific types of workers or sectors. The cash transfers should be given to poor people regardless of which sector they work in.

Now to the opportunities from the current crisis

.Shanta D:The two main differences with the current crisis are: (i) the people are already suffering from a government-imposed austerity program (because of the shortage of foreign exchange) before the IMF program has been concluded. To the extent that the IMF program will bring in $4-5 billion in foreign exchange, it will relieve the shortages rather than exacerbate them. So the effect of the IMF program is to put Sri Lankan fiscal policy on a path that can, over time, enable the country to bring in foreign exchange (and pay less to creditors). So I don’t see the IMF program as necessarily “aggravating the crisis”. On the contrary, it is likely to relieve it. (ii) the people in the Aragalaya movement clearly see the link between the government’s failed economic policies and their dire economic situation today. They don’t blame Covid or the Ukraine war–they know it was the misguided policies of the administration (including the delays in going to the Fund and undertaking a debt restructuring) that got us into this mess.

Some of them seem to understand that subsidies are not helpful when you run out of money to pay for them. This is a huge improvement in thinking from, frankly, what I hear from Sri Lankan politicians from the left and the right. The logical extension of this argument is that, if the government’s policies led to the current situation, then to get out of the situation, we must reverse those policies. That is exactly what the economic reform program is doing–reversing the tax cuts of November 2019, reducing regressive subsidies, expanding targeted cash transfers, cutting government borrowing from the central bank, raising interest rates, making the exchange rate flexible, and approaching the IMF and embarking on a debt restructuring. So the demands of the Aragalaya movement are consistent with the IMF program. We should seize this unique opportunity to galvanize the support of the Aragalaya movement in order to counter the usual objections from senior politicians to the economic reforms on grounds that they will not be politically acceptable. Most of these objections stem from an effort to protect the rents accruing to their particular political base. This is a chance to call their bluff.

Ram M:I agree that just because the IMF helps bailout Sri Lanka, need not mean then President Gotabaya (and now President Wickremesinghe) will continue in power. Whether or not a President or government continues, depends on the opposition and the protesters and their ability to out manoeuvre those in power, politically. And making people suffer in order to get a government out is not only unconscionable, but also not likely to succeed (again look at Lebanon). In this regard, I do think that we should separate these two issues, even as we use, to the extent possible, the economic pressure to press for political reforms.

(Ram Manikkalingam is the Director of the Dialogue Advisory Group and a Visiting Professor at the University of Amsterdam.

Shanta Devarajan is a former Chief Economist of the World Bank and a Professor at Georgetown University.)



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Is power devolution under JVP-NPP a political daydream?

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Former President Chandrika Kumaratunga

The JVP General Secretary Tilvin Silva’s recent remarks at a news conference in Jaffna where he ruled out the possibility of holding provincial council elections this year has been widely reported and widely criticized. About the same time there was another media event in Jaffna that went largely unnoticed and unreported outside Jaffna. What was said at the second media event may carry far more political implications than Tilvin Silva’s election timing talk. A veteran Tamil political participant made the startling yet not implausible statement that the prospect of having political devolution under the JVP-NPP government is becoming “a daydream”. The statement was made by Dr. K. Vigneswaran, who served as Provincial Secretary to the only North-East Provincial Council Government that was elected under the auspices of the Thirteenth Amendment.

Dr. Vigneswaran is a Professional Civil Engineer who studied at Royal College, graduated with First Class Honours in Engineering in 1964, and went on to complete a pioneering PhD at the university of Waterloo, Canada, applying the finite element method (FEM) in the field of Geotechnical Engineering. His engineering career has always been at the Irrigation Department where he rose to a Deputy Director. That was when the department was in its golden years, and Vigneswaran was known for his technical mentorship, meticulous administrative skills, and for knowing the fine print of everything. While at the Irrigation Department, Vigneswaran married Ramya de Silva, a fellow irrigation Engineer. After 1983, Vigneswaran became a fulltime political activist and a powerful resource in Tamil politics, but with unwavering commitment to nonviolence, democracy and federalism. The family moved first to India and then Canada, and Vigneswaran has been shuttling between Canada and Sri Lanka.

Devolution: Tortuous Trajectory

Since 1987, the Indo-Sri Lanka Agreement, and the 13th Amendment, Vigneswaran has been a permanent fixture in all the politics and institutional dynamic of implementing 13A and establishing provincial councils. He served as Secretary to the only elected Provincial Government for the Northern and Eastern Provinces. After 1994 and the election of Chandrika Kumaratunga as President, Vigneswaran became a key participant in all the civil society efforts and government initiatives to restore the PCs and implement 13A, both during the Kumaratunga presidency and the succeeding administrations of Mahinda Rajapaksa and the Sirisena-Wickremesinghe duo.

Devolution efforts stalled after the election of Gotabaya Rajapaksa, who in so many words declared that he had no time for 13A or PCs in his presidential agenda, whatever it was. Only that his whole agenda turned out to be a wholesale disaster for the country. Already by then, all the nine Provincial Councils had fallen into abeyance with the cancellation of the 1988 PC elections by the Sirisena-Wickremesinghe duo, with the TNA standing by. The abeyance continues under the JVP-NPP government with no apparent end in sight after Tilvin de Silva’s statement in Jaffna.

I say all this to provide the proper context for Vigneswaran’s statement in Jaffna that the prospects for power devolution under the JVP-NPP government are becoming a political daydream. He said something else as well: that of all the government leaders he has encountered over the years, the only leader who has been genuinely sincere about power devolution is former President Chandrika Kumaratunga, and no one else. I am constrained to add that the insincere category would include Ranil Wickremesinghe, who for all his handsome promises, never matched any of them with experiential sincerity. The present JVP-NPP government still has time to show that they are not an insincere lot.

It is not my purpose to agree with or question Dr. Vigneswaran’s assertions, but to use them as cue and context to comment on the widening mismatch between the JVP-NPP government’s promises and its practices on the matter of power devolution and the restoration of the PC system. With a stalling economy, rising prices and external shocks, it is obvious that the government has all the economic matters to worry about, but that does not mean that it can ignore all the other government responsibilities. No government is put in power to solve a single problem or address a single issue. It is in the nature of governments to deal with multiple problems with varying priorities. Otherwise you could have a single cabinet minister to deal with one problem at a time. That is never going to be the case.

The economy is of course the top of mind priority for the government even as it is a top of mind concern for the people. Even on the economic front, the government is holding steady but is showing little progress. And there are other government initiatives where political accountability will call for answers: to wit, the catchall Clean Sri Lanka programme, ambitious educational reforms, contentious energy sector reforms and, yes, power devolution as well as the overpromised constitutional reforms. Not to mention the sprawling unforced errors over substandard coal imports, foreign exchange fraud, and the chronic neglect of developing the renewable energy sector. Correcting these fields of errors may require a separate ministry for each.

Devolution: Daydream or Deliverable

On the PC system and constitutional reform, there has been scant progress in spite of handsome promises. On both, the government is inadvertently deepening the holes that it had dug itself into through indifference, inaction or procrastination, or all of them and more. In the matter of devolution and provincial councils, the government can simply defuse the situation by directing the Election Commission to conduct elections at the earliest opportunity that is logistically possible. Making his statement in Jaffna, Mr. Tilvin Silva alluded to funding shortfall and legal complications as reasons for the necessity to postpone PC elections until next year. Neither reason holds water.

The funding question would seem to have been put to rest by the statement of Health Minister and Cabinet Spokesman Nalinda Jayatissa, presumably reflecting cabinet consensus, that there are no funding issues and if needed additional funds could be arranged through supplementary allocations. It is also disingenuous to cite legal complications as a reason. The so called legal complications arose because of the collective stupidity of the Sirisena-Wickremesinghe parliament that included the then miniscule NPP and the politically-lost TNA. The JVP-NPP has now ballooned from a handful MPs to a two-thirds majority and it can expedite any legislation that it wants to enable the PC elections to be held without delays.

Alternatively, the elections can be held under the old arrangement of proportional representation with assurance by political parties to honour their commitment to fielding more female candidates. Already at a gathering of all political parties, including the NPP (but not the JVP), and civil society groups, convened by People’s Action For Free & Fair Elections (PAFFREL), the political parties jointly committed to a 25% quota for women and youth under the old electoral system. The ongoing parliamentary committee exercise studying the legal matter, headed by the overstretched Foreign Minister Vijitha Herath, is also an unnecessary red herring. The Election Commission is ready to go under whatever law or electoral system that is before it. So, there is no reason to hide behind legal complications to further delay the PC elections.

Somewhat amusingly, Public and Parliamentary Affairs Minister Ananda Wijepala has trotted out the argument that the NPP government has already conducted two nationwide elections during the one and a half years it has been in office, and that unlike the Ranil Wickremesinghe government the JVP-NPP is not in the business “to delay elections for our personal benefit” – whatever that means. Unfortunately, the good minister is missing the point. The question is not how many elections can the JVP-NPP hold in how many years, but how many years do people in the provinces have to wait before they vote in another provincial election? How many more years? That really is the question.

We know the current situation in the provinces. There are provincial governments but no elected provincial councils. The government administration in every province is being run by the President of the Republic through his handpicked governors and unelected government officials. This is a travesty of democracy and the euthanizing of the PC system. Already under 13A, the office of the provincial governors has been constitutionally and legally compared to the office of the Governors of old Ceylon who represented the monarch in what was then a crown colony. The irony is that a JVP-NPP President may have inadvertently positioned himself as the monarch of all he provincially surveys, courtesy of the Thirteenth Amendment!

The JVP was in the forefront of the litigation that caused the demerger of the Northern and Eastern Provinces. If Dr. Vigneswaran’s assertion were to prove correct, a potential dissolution of the provincial system under the JVP-NPP government would be the consummation of the JVP’s original opposition to the introduction of the provincial council system itself. The whole system may not be eradicated, but it could be devoured of its democratic essence while preserving the administrative shell as the medium for the country’s president to overreach into the provinces. That would be worse than a daydream, a real nightmare.

by Rajan Philips ✍️

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Rewiring Brain: Meditation to Break the Cycle of Craving

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“Craving begets sorrow, craving begets fear. For him who is free from craving there is no sorrow; how can there be fear for him,” Dhammapada verse 216 states. The mental factor craving, Tanha in Pali, is central to Buddhist Teaching, as its ultimate goal is the cessation or extinction of it—tanhakkhaya. Even though Tanha is translated as craving here, it can sometimes mislead modern readers into thinking tanha only refers to extreme or physical addictions. Just as with any Pali term, it has broad meanings. Venerable Walpola Rahula describes it as “thirst” or unceasing wanting, one of the deep-rooted proclivities or latent tendencies (anusaya) of life (Rahula 1959), without which life as we know would not exist.

Even though the Buddha recognized this natural phenomenon two and a half millennia ago, it was only in the late 20th century that science took note of it and gave it a captivating term—the Hedonic Treadmill. The advantage of this empirical investigation to us Buddhists is that it provides a way to gain penetrative, experiential comprehension (anubodha) of this concept using the vernacular of this technology-savvy age—an alternative to struggling with the language of a bygone era.

These investigations have revealed that there are no hard-to-comprehend metaphysical or mysterious elements involved with this phenomenon; it is a biochemical process fundamental to sustaining life. What is more, an effort to grasp this concept would be well within the goals of Vipassana meditation described in the Sutta Pitaka, incorporating the four elements of investigation: body (kayanupassana), sensations (vedananupassana), mind (chittanupassana), and natural laws (dhammanupassana).

Vipassana and modern science

Vipassana meditation is an in-depth exploration of how humans perceive the world, gain knowledge, and interact with themselves and the environment. Knowing this with wisdom allows one to lead a harmonious way of life (samadhi), a condition conducive to curbing the “thirst” and achieving the Buddhist ideal. The goal of modern science is also to investigate life, but humanity has often used that knowledge to increase material wealth and comfort, providing only lip service to spirituality on the fringe.

An attitude that tends to ignore the consequences of wanting more and more – thirst, potentially endangering the planet. However, that does not prevent us from using scientific information as and aid or a tool to grasp Buddhist concepts. The scientific method bears parallels to the Buddhist approach: it is based on causality (paticcasamuppada), empirical verification (ehipassiko), systematic observation (meditation), and rejecting dogma and beliefs. The primary difference is simply the vocabulary used.

The process of perception: five aggregates

Our five external sense organs receive data (vedana) containing information on the environment: Eyes: receive light, Ears: receive sound, Skin: senses physical contact and temperature, Nose & Tongue: sense chemical properties of substances. The data received by the sense organs is transmitted to the brain, where it is registered as neural networks (sanna). Neural networks, which are interconnected groups of nerve cells (neurons) can be viewed as mind-readable QR codes.

The activity of the brain, or mind (mano), processes this data and converts them into actionable information (sankhara). Modern neuroscience and psychology have made great advances in understanding these processes at the molecular level. This process allows the individual to become aware of their environment, build an autobiographical memory or the notion of a self (atta), and take actions to protect and perpetuate life.

The Pali term vinnana refers to the collection of information committed to memory. Translating vinnana as “consciousness” can be confusing, as the latter often refers to all brain activities. All physical phenomena that sense organs encounter and the mental constructs (sankhara) are referred to as Rupa. This activity of mind forms the basis of all knowledge, representing the entire world as perceived by the individual. This process is what the Teaching refers to as the Five Aggregates (pancakkhanda). The critical takeaway is that the world we perceive is merely a mental construct. While an objective world exists, our sense organs have limitations in seeing it—a fact easily realized through the hundreds of illusions used for entertainment.

Evolution and emotion

The evolutionary purpose of this data processing mechanism is to enable living beings to respond to environmental factors for survival. The psychological and physiological state that arises prior to acting is called emotion. Primarily, emotions can be of three kinds: desire (loba) – seeing a new phone causes an urge to buy it, even though the current one works fine; aversion (dosha) – encountering a vicious dog triggers a “fight or flight” response; delusion (moha) or illusion – an unanswered message to a loved one triggers worry or speculation. Thus, tanha or thirst represents how we connect to the world in its entirety; it can be desire, aversion, and delusion, not merely simple greed. Consequently, these are natural phenomena beyond our immediate control, which are intended to sustain life. In other words, emotions are the forerunner to volitions or intentions, which the Teaching defines as kamma.

The biochemistry of craving

Emotions result from the interaction between the nervous system and biochemicals known as neurotransmitters and neuromodulators (e.g., dopamine, serotonin, epinephrine, GABA, glutamate, acetylcholine, and endorphins). Just as the Buddha’s simile of two bundles of bamboo supporting each other describes, these two processes are interdependent and co-arising. Every thought or emotional state corresponds to patterns of neural firing. When neurons fire, they release these chemicals into synapses, influencing how one feels and acts. This release perturbs the body’s normal balance, or homeostasis. Once an action is complete, these chemicals are reabsorbed, and the body returns to its baseline.

Return to baseline is essential for survival. For example, if we stay satisfied with just one meal forever, we could not sustain life. Nature has developed another mechanism to prevent us from being satisfied – we also habituate. In the case of dopamine, the brain adapts by reducing the response to the same stimulus. To get the same level of satisfaction with repeated experiences, the amounts of neurotransmitters needed keeps increasing. This leads to the cycle of craving and dissatisfaction—the Hedonic Treadmill. You “run” toward happiness on the treadmill, but it does not take you anywhere, leaving you in the same emotionally unsatisfactory state, wanting more and more.

Breaking the cycle

This explains why achievements and possessions do not bring permanent happiness, and lead to a cycle of struggle, addiction, crime, and other ills of society. For Buddhists, it also explains why we cling to meaningless rituals. The Dhamma captured this complex phenomenon in the Four Noble Truths: pleasant experiences are impermanent (anicca), leading to grasping (tanha) and unsatisfactoriness (dukkha). The remedy is the Eightfold Path that involves wisdom (panna), conduct (sila), and harmony (samadhi).

Neuroplasticity and the point of liberation

While we cannot stop the sense organs from receiving stimulation (vedana) and sending them to brain, the mind can be developed to prevent vedana from leading to tanha. This is the “point of liberation,” the seventh link in the paticcasamuppada formula. We may not have free will, but we have ‘Free Won’t’ or the ability to say no to the natural tendency to act upon stimuli. We can rewire our neural connections to do so. This ability can be cultivated by practice and repetition, and neuroscience refers to it as neuroplasticity—the brain’s ability to change with experience.

The natural tendency of the brain is to strengthen frequently used neural networks while weakening and eliminating lesser used networks and building new ones as needed. This is known as neural plasticity or rewiring the brain. As described in the Eight-fold Path, the way to weaken and eliminate dopamine-driven neural networks includes three aspects. First, the process leading to thirst must be understood. One must engage in sila – activities and thoughts that cultivate Metta: loving-kindness and goodwill, Karuna: compassion, Mudita: appreciative joy, and Upekkha: equanimity, emotional stability, calmness, and evenness of mind in the face of gain and loss, praise and blame, fame and disrepute, pleasure, and pain. That must be done with wisdom, ritualistic behavior does not strengthen the correct neural networks. These activities promote a “cocktail” of oxytocin, serotonin, and GABA, subduing the role of dopamine and helping us step off the Hedonic Treadmill. This leads to a tranquil state of mind and a harmonious existence – samadhi. Again, it is an interdependent, co-arising process that improves upon repetition. Using mind altering substances hijacks this process, thus the need for adhering to the Fifth Precept.

The goal of Vipassana is to understand this process and train the mind to say “no” to tanha. It is not just about sitting on a mat; it requires developing a lifestyle that maintains homeostasis or harmony, samadhi, at every moment. Pali term bhavana means the development of wisdom and insight. In modern vernacular – rewiring brain. This model must be assessed for its efficacy by the individual and realize the benefits by themselves –ehipassiko; knowledge without practice does not work. According to what the Buddha taught, that is the path to cessation or extinction of craving – tanhakkhaya, the supreme goal.

by Geewananda Gunawardana, Ph.D. ✍️

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‘Spectrum’ Art Exhibition Showcases Emerging Talent at Lionel Wendt

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A new art exhibition, titled Spectrum ,will be held at the Lionel Wendt Art Centre on the 20th and 21st of June 2026, bringing together a collection of works by ten emerging artists.

Athsara Wijegunawardena

Neha Thirumavalavan

Dillai Joseph

Wasantha Siriwardena

Champika Dias

Nipun Dias

Dr. Prasanna Siriwardena

Kalhari Perera

Siromi Samarasinghe

Chandana Illankone

All ten artists have trained under the guidance of renowned Sri Lankan artist Royden Gibbs, and this exhibition marks an important point in their individual journeys.

Dr. Prasanna Siriwardena

Spectrum brings together a mix of styles, subjects and approaches, giving visitors a chance to experience a wide range of work in one place. The exhibition will include pieces in watercolors, soft pastels, oils and charcoal, reflecting both the discipline and personal direction of each artist. The work ranges from scenery and portraits to still life and studies of the human form, offering different ways of seeing and interpreting familiar subjects.

Dillai Joseph

Although they share the same mentor, each artist presents a distinct point of view. The result is a show that feels varied yet connected, with each piece carrying its own character and intent. It is this balance that gives Spectrum its identity.

The exhibition aims to support and highlight emerging talent within Sri Lanka’s art scene, while also creating a space where artists and audiences can connect. Visitors will find work that shifts between quiet observation and more expressive pieces, making it an engaging experience for both seasoned collectors and those simply interested in art.

Spectrum is expected to draw art lovers, collectors, students and members of the wider creative community. It also offers an opportunity to discover and support new artists at an early stage in their careers.

Open to the public over two days, Spectrum invites visitors to experience a range of work in a venue that has long been part of Colombo’s cultural landscape.

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