News

China poised for diplomatic windfall in Sri Lanka elections Beijing backs politicians and influential Buddhist leaders, expert says

Published

6 years ago

2020/07/26

MARWAAN MACAN-MARKAR, Asia regional correspondent, Nikkei Asian Review

BANGKOK — China is cultivating a wide swathe of political allies in Sri Lanka ahead of the nation’s general elections on Aug. 5, marking a break from throwing its lot in with one dominant political camp.

Foreign policy insiders in the small South Asian nation reckon the strategy fortifies the edge China has over geopolitical adversaries India, Japan and the U.S. when it comes to influencing a country that straddles an increasingly contested stretch of the Indian Ocean.

This diplomatic shift, the insiders say, has been marked by quiet, behind-the-scenes meetings between Chinese emissaries and the leading political parties vying for votes ahead of elections that in a little more than two weeks will determine parliament’s 225 lawmakers.

The coronavirus’s impact in Sri Lanka provided China with an opening to demonstrate its newly tuned diplomacy. Song Tao, minister of the international department of the Chinese Communist Party’s Central Committee, in June hosted a video conference with leaders of Sri Lanka’s major political parties to cultivate bipartisan bonds under the guise of fighting COVID-19.

The island nation has reported 2,674 infections and 11 deaths. According to Luo Chong, a spokesperson of the Chinese embassy in Colombo, the meeting was a goodwill gesture that has been repeated with other allies in the wake of the pandemic. “The International Department of the Communist Party of China conducted several joint-video conferences with different parties in Sri Lanka, Nepal, [the] Philippines, Indonesia and Arab counties, which is a common practice, especially under the current COVID-19 situation,” he told the Nikkei Asian Review.

The pandemic has boosted China’s influence in Sri Lanka, a veteran Sri Lankan diplomat said, referring to a $500 million loan President Gotabaya Rajapaksa desperately sought from China to help fight COVID-19.

“China is the only international player who has the funds to help with such emergencies,” the diplomat said. “Beijing was prompt because it knows which political players it is closer to in Sri Lanka — the Rajapaksas,” referring to the president and his elder brother Prime Minister Mahinda Rajapaksa, a former president.

But seasoned observers of Chinese diplomacy read more into Beijing’s preelection encounters with parties across Sri Lanka’s political spectrum.

Patrick Mendis, a visiting professor of global affairs at the National Chengchi University, based in Taiwan, said the CCP constantly adjusts its diplomacy based on previous outcomes. “It has remarkable agility to change as China learns from its past mistakes in Sri Lanka,” Mendis said. “Now, it supports not only political parties but influential Buddhist leaders, as China realizes the power of the Buddhist clergy in domestic politics.”

In 2015, China was perceived as backing then incumbent President Mahinda Rajapaksa. But Mahinda lost his reelection bid in a shock setback for the country’s most politically influential clan, the Rajapaksas, who had displayed signs of dynastic ambitions.

That 2015 poll, the second after the Rajapaksas presided over the end of a nearly 30-year Civil War, was marked by allegations that India, the regional power in South Asia, and China were bankrolling competing campaigns.

The Rajapaksa camp accused the Research and Analysis Wing, India’s spy agency, of pouring funds into a coalition of anti- Rajapaksa political parties to defeat Mahinda in his run for a third term.

Former President Maithripala Sirisena ended up winning, and his camp accused a Chinese company with investments in Sri Lanka of financing the Rajapaksa campaign.

Last year, in November, Gotabaya Rajapaksa, a former military lieutenant colonel, won a decisive mandate in the presidential poll, signaling voter appetite for a strongman leader after five years of a divisive and dysfunctional administration under an anti-Rajapaksa coalition.

While China burrowed deep into Sri Lankan politics — it has even commissioned local pollsters to gauge voter sentiment — it was also lavishing multibillion-dollar loans on the country for large infrastructure projects ranging from a new harbor and airport to highways. Not surprisingly, China accounts for 10% of Sri Lanka’s ballooning external debt of $55 billion. Compare that number to $88 billion, the size of the island’s economy

The China-funded projects have become a hot-button issue during election cycles as some Sri Lankan voters take a dislike to foreign money paying for strategic assets. “This was never the case before,” a senior South Asian diplomat said. “Foreign policy and foreign investment [used to have] bipartisan backing no matter which party won, but that has changed over the last few years, and strategic investments have become campaign fodder.”

As for Japan, for decades Sri Lanka’s largest bilateral lender and development partner, it now must deal with the Rajapaksa tilt toward China. Mere months into his first term, Gotabaya Rajapaksa has sent mixed messages to Japan about the fate of two multibillion-dollar infrastructure projects, both of which were championed by the previous coalition government.

One is an elevated light railway system through parts of Greater Colombo, the island’s largest commercial city. The new government says the rail will have to be delayed.

The other is an expanded container terminal in Colombo Port, which also has Indian and Sri Lankan backers. The tripartite agreement, signed in 2019 by the previous government, is also at the whim of the Rajapaksa government, which wants new terms. Japan appears unmoved for now. “There is no such fact that Japan and Sri Lanka have agreed to revise the plan of the LRT project,” an official at the Japanese Embassy in Colombo told Nikkei, referring to the Light Railway Transit project. “We understand that this project has so far been implemented as planned by the Sri Lankan implementing agency.”

But India’s government is fuming over the matter, especially now that the Rajapaksa camp is turning the Colombo Port container terminal project into an anti-India campaign issue.

Diplomatic sources in Colombo say India eyed a stake in the Colombo Port as a counterweight to China’s growing dominance in Sri Lanka’s maritime economy.

“The Indians don’t trust the Rajapaksas,” said a diplomat from a Western embassy in Sri Lanka’s former capital. “They see them as doubled-tongued. A reversal on the port project would see India returning to the pre-2015 days of distrusting Colombo.”

The U.S. faces a similar quandary. A $480 million grant under Washington’s so-called Millennium Challenge Corporation was partially meant to help upgrade Sri Lanka’s transport and logistics infrastructure, but it too has become an electoral football, as it was during the presidential election in November. Rajapaksa has profited from the anti-MCC campaign rhetoric of his ultranationalist constituency among the country’s Sinhala-Buddhist ethnic majority.

The U.S. may have to bite this political bullet to achieve its longer-termstrategic vision in the Indian Ocean, which includes Sri Lanka.

“Washington’s attention to Sri Lanka appears to be increasingly fueled by geostrategic concerns about China,” said Nilanthi Samaranayake, director for strategy and policy analysis at the Center for Naval Analysis, a Washington-based think tank. “[There is more] attention on Sri Lanka than ever before… [and there willbe] questions [after the elections] about which direction Sri Lankawill move in regarding its policies toward India, the U.S. and China.”

All News Advertisement

News

President chairs 2027 Pre-Budget talks on Agriculture Ministry

Published

56 mins ago

2026/07/8

Priyan

A discussion to review the progress of projects being implemented under the 2026 budget allocations for the Ministry of Agriculture, Livestock, Land and Irrigation, and to consider the Ministry’s budgetary requirements for 2027, was held on Tuesday (07) morning at the Presidential Secretariat under the chairmanship of President Anura Kumara Dissanayake.

During the meeting, the progress of projects implemented in 2026 by institutions under the Ministry, including the Department of Agriculture, the Department of Agrarian Development, the Department of Export Agriculture and the Institute of Post-Harvest Technology (IPHT), was reviewed individually. Attention was also focused on institutions requiring restructuring to enhance efficiency and effectiveness.

The President instructed that all irrigation projects maintained by various institutions, departments and local authorities should be regulated through a single district-level unit. He also directed that irrigation rehabilitation projects being implemented across the island be comprehensively mapped.

Emphasising the need to maximise the utilisation of funds allocated under the 2026 Budget, the President instructed officials to further promote concessionary bank loan facilities available to young entrepreneurs in the agriculture and industrial sectors.

The President also instructed officials to submit a report containing proposals for the integrated and systematic management of extension services currently operating under various ministries. He further highlighted the importance of holding separate discussions on individual subject areas to ensure seamless coordination between the Provincial Councils and the Central Government.

The President also directed officials to submit new proposals and projects aimed at promoting export agricultural crops and increasing the value of related products.

The meeting also reviewed projects launched in recent years with foreign loan assistance. As many had exceeded their scheduled completion dates, the President instructed officials to expedite their completion. He further emphasised that, in future, no project financed through foreign loans should be approved without a clear understanding of its intended outcomes.

It was also noted that the Government had incurred a significant financial burden due to the failure to complete certain projects initiated in previous years within the stipulated timeframe. Accordingly, it was decided to review projects that had not been completed on schedule.

The discussion also highlighted the importance of replacing outdated projects and programmes that have continued for many years without delivering tangible results with more productive agricultural programmes.

Minister of Agriculture, Livestock, Land and Irrigation K.D. Lalkantha; Minister of Labor and Deputy Minister of Finance and Planning Dr. Anil Jayantha Fernando; Deputy Minister of Agriculture and Livestock Namal Karunaratne; Deputy Minister of Land and Irrigation Aravinda Senarath; Secretary to the President Dr Nandika Sanath Kumanayake; Secretary to the Treasury and Ministry of Finance, Planning and Economic Development, Dr.Harshana Suriyapperuma; Senior Additional Secretary to the President Kapila Janaka Bandara; Secretary to the Ministry of Energy and Senior Additional Secretary to the President Russell Aponsu; Secretary to the Ministry of Agriculture, Livestock, Land and Irrigation D.P. Wickramasinghe; and officials of the Ministry of Finance, Planning and Economic Development and the Ministry of Agriculture, Livestock, Land and Irrigation were also present at the discussion.

News

Committee Appointed to investigate unrest at Negombo Prison

Published

1 hour ago

2026/07/8

Priyan

A Committee of Inquiry was appointed on Tuesday (07) by Secretary to the President Dr Nandika Sanath Kumanayake, with Cabinet approval, to conduct a comprehensive investigation into the unrest that occurred at Negombo Prison on 5 and 6 July and to report on the circumstances that led to the incident.

The Committee is chaired by retired Supreme Court Judge Priyantha Fernando. Its other members are Additional Solicitor General and President’s Counsel Milinda Gunatilake and President’s Counsel Mohan Weerakoon. Senior Assistant Secretary to the President K.L.D. Asela has been appointed Secretary/Convener of the Committee of Inquiry.

News

“Badhu Shakthi 2026” National Tax Week begins

Published

8 hours ago

2026/07/8

Priyan

The inaugural ceremony of “Badhu Shakthi 2026” (“බදු ශක්ති 2026”) National Tax Week, organised by the Revenue Administration Reform and Modernisation Unit of the Presidential Secretariat with the objective of strengthening State revenue generation and accelerating the country’s future development process, was held on Monday (06) morning at the Presidential Secretariat under the patronage of Speaker Dr Jagath Wickramaratne.

“Badhu Shakthi 2026” is a year-round national programme aimed at transforming the negative public perception of taxation into a positive one while fostering a culture of voluntary tax compliance. To mark its commencement, a National Tax Week will be observed across the island from 6 to 10 July.

A nationwide media and public awareness campaign will be conducted in parallel, including the distribution of leaflets and a range of promotional activities designed to educate the public directly and encourage greater tax compliance.

Addressing the inaugural event, Speaker Dr Jagath Wickramaratne stated that “Badhu Shakthi 2026” is not simply a tax collection campaign but a national initiative aimed at cultivating responsible citizens who love their country.

Further elaborating, the Speaker said:

“Today marks a significant milestone in our country’s future development and economic stability. The strength and sustainability of any sovereign nation depend on its economic independence. Taxation is one of the key instruments for strengthening State revenue and driving national development.

However, taxation has long been viewed negatively by many people. That perception was largely shaped by those responsible for collecting taxes and by successive administrations. When people develop a sense of national responsibility, their attitudes begin to change. For many years, taxes were regarded as a burden. History has shown us that tax evasion occurred on a significant scale, and it must be acknowledged, however reluctantly, that such practices often enjoyed political patronage.

In the past, the public had little understanding of how their tax contributions were utilised. Taxpayers lacked a clear vision of the benefits derived from the taxes they paid. The present Government has succeeded in changing this situation by fostering a more positive public attitude towards taxation. I wish to pay tribute to all taxpayers who contribute towards the Government’s national development agenda.

Today, people have confidence that the taxes they pay are being put to good use. Expressways, highways and power infrastructure projects are now being implemented using domestic funds. There is a sense of pride among the public that construction of the Kandy Expressway has commenced without obtaining loans from any external source. Cabinet approval has also been granted to commence work on the Kurunegala–Galewela Road.

Today, Sri Lanka has grown stronger as a nation capable of financing development activities through domestic resources rather than relying on foreign borrowing.

In ancient times, the country’s great stupas, reservoirs and irrigation networks were built through the collective contribution of the people. Likewise, Sri Lanka can become a prosperous and developed nation only through collective effort. The taxes collected today are being utilised for the welfare of the people. This was clearly demonstrated when the Government allocated Rs. 500 billion in response to Cyclone Ditwah. In addition, substantial benefits are now being provided to the public through the President’s Fund. Educational assistance is being extended to schoolchildren across every corner of the country. All of these initiatives are being financed through domestic resources.

It is essential that the public are made aware of the real benefits derived from tax revenue and of the development projects being implemented. This will strengthen public confidence in the transparent use of tax revenue. The primary objective of this national programme is to broaden the country’s tax base, improve tax compliance, reduce tax evasion and foster a positive attitude towards taxation. If everyone pays their fair share of taxes, the tax burden borne by others can be reduced.

We do not build a beehive with a single bee. It is created through the collective effort of thousands of bees, making it a remarkable achievement. Likewise, ‘Badhu Shakthi 2026’ is not merely a tax collection campaign. It is a national movement to cultivate responsible citizens who love their country. I extend my sincere appreciation to everyone who has dedicated themselves to making this important initiative a success.”

Labour Minister and Deputy Minister of Finance and Planning Anil Jayantha Fernando:

Labour Minister and Deputy Minister of Finance and Planning Dr. Anil Jayantha Fernando said that a proper understanding of taxation among citizens would enable Sri Lanka to make greater progress towards economic and social transformation.

He noted that while individuals naturally pursue their own personal goals and aspirations, many of these objectives cannot be achieved in isolation. The success of any society depends on cooperation and collective effort.

He further stated:

“Today, paying taxes has become a much simpler process. As a result, tax collection is now carried out more efficiently and systematically. At the same time, the Government recognises its responsibility to ensure that tax revenue collected fairly is managed prudently and utilised for the benefit of society. If the Government fails to demonstrate sound financial discipline, people will lose confidence and become reluctant to pay taxes. This was evident in the past.

Accordingly, the Government has introduced a tax administration system founded on strong fiscal discipline. We will not tolerate fraud, corruption or waste. If we are to rebuild this country, every citizen must contribute willingly and with a sense of national responsibility. This should not be driven solely by legal obligation. We are confident that the people of Sri Lanka will fulfil this responsibility.”

Deputy Minister of Economic Development Nishantha Jayaweera, Director General of Customs Wimal Liyanagama, Director General of Excise M.B.N.A. Premaratne, and Commissioner General of Inland Revenue Rukdevi Fernando also addressed the gathering.

Among those present were Director General of Public Relations to the President Dharmasiri Gamage, senior officials of the Presidential Secretariat, the Ministry of Finance, Sri Lanka Customs, the Department of Excise, the Inland Revenue Department, as well as taxpayers and other invited participants.