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Confronting Capitalist system in Sri Lanka: 1824-2024

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Historical transformation from Feudalism to Capitalism by 1824

by Jayampathy Molligoda

As we know, on March 2, 1815 the Kandyan Kingdom was formally ceded to the British by signing the Kandyan convention by the chiefs and the Governor, Brownrigg on behalf of the British. Thereafter, the year 1818 marks a real turning point with the defeat of the great rebellion of Uva- Wellassa, where the resistance of the people was broken and the British had laid claim to an all -island control.

According to eminent Historian, Professor K.M de Silva, British could not set up a unified administrative system for the whole island until the Colebrooke -Cameron reforms of 1829-1832, thus providing the administrative and legislative framework for a more liberal form of government for Sri Lanka. The establishment of plantation agriculture consolidated the unification by providing an economic basis for it. In the 1820’s, Governor Barnes’s network of roads built with the help of the traditional ‘rajakariya’ system (a feature of feudalist society) placed the control of Sri Lanka firmly under British hands.

As for the Island’s trade, the European agency houses were established in 1824 and then Governor Barnes decided to stop importing goods on account of the government, thus halting the monopolistic structure of the government’s economic activities through East India Company. Based on Colebrooke recommendations, the ‘Savings Bank of Ceylon’ was established in 1832 and money became freely available. Several historians and scholars including Ralph Peiris, Senaka Bandaranaike, Professor W.I Siriweera are of the view that pre-modern Sri Lankan society was feudal.

From the middle of the first millennium up to 1830, ‘feudal’ characteristics were predominant in the Sri Lankan society. The colonial powers including the British continued to maintain the state trade monopoly until the period up to 1825. Thereafter, the road and railway network developed and thus facilitated easy communication and opportunities for social mobility.

Internal and foreign trade expanded along with banking and money circulation. Governor Barnes (1824) is credited with the construction of the first major road under the British where he constructed a better and shorter road from Colombo to Kandy. Feudalism withered away with Colebrooke reforms and commercial capitalism in Sri Lanka started with the plantation crop culture.

The foundation of a class society was laid only with the implementation of Colebrooke reforms. As a result of the capitalist transformation, there emerged a class society based on the production; bourgeoisie (rich), middle class and a labour force. Tea and coffee plantation workers were brought in from South India and their living conditions were poor.

In contrast to the plantation workers, urban workforce experienced some salutary effects of transformation from feudalism to capitalism as the rigidity of the caste system was reduced because birth status was not a condition of employment. The majority of the labour force outside the plantation sector were Sri Lankans but labour employment was open to all ethnic groups and both sexes, although most of the laborers were male. Those labourers who settled down in Colombo (and few other main cities) lived in slums where sanitary conditions were unsatisfactory. ( Prof W.I Siriweera,2023)

Socio/ economic transformation by 1924; after 100 years under capitalism:

The growth of the plantation sector and means of communications and associated infrastructure development in road and rail transportation greatly contributed to commercialization. Cities such as Colombo, Galle, Matara, Kandy, Jaffna, Anuradhapura, Nuwara Eliya and many other cities developed considerably. Shops were established near railway stations and even some imported commodities were freely available in village boutiques and products of the villages began to be circulated in other villages, although the local hand-loom industry was affected.

According to published literature by eminent historians, only the plantation and merchandize capital had contributed to capitalist growth and hardly any industrial manufacturing growth, except small scale coir and coconut oil industries. The production of arrack and toddy became popular and the government granted permission to open taverns to earn revenue to the general treasury and as a result, crimes too increased and many other social issues cropped up.

By the 1920’s, we have seen a contraction of world trade due to World War 1914-1920 followed by the Great Depression of the late 1920’s. The British Government imposed restrictions on shipping and controls on tea and coconut imports from Sri Lanka.  With the disruption of food imports and stagnation of the plantation sector, there had been a revival of interest in peasant agriculture and development of the dry zone.

Further, the government wanted to liberalize the system of alienating the crown lands in order to accommodate the peasants. In the 1920’s under a new system, leasehold tenure system was granted to the peasants. It was also decided to appoint a Land Commission and there was a close link between the reappraisal of the land policy and the increase in population (22.5 million according to 2021 census from 1.5 million 100 years ago.)

Further improvements to the Capitalist system through Constitutional bases during the last 100 years-1924 -2023 To date:

With the formation of the Ceylon National Congress (CNC) under P. Arunachalam, the educated Sri Lankans agitated for greater share in the administration. As a result, more reforms were introduced during the 1920’s. One reform was popularly known as Manning reforms and the colonial office in 1927 appointed the ‘Donoughmore’ commission to make a new constitution.

One of the major reasons for the reforms was the Anti-Imperialist movements originating in Sri Lanka with the ‘Suriyamal’ movement in 1926 and formation of Youth leagues by Marxists (LSSP, CPSL). During this period, immigrant workers joined the indigenous working class under A.E. Gunasinha’s leadership. Urban workforce resorted to strike action due to poor working conditions.

Exactly 100 years under the capitalist system, there was a general strike in 1923 and in Lake House in 1929 and the Galle Face Hotel in 1934. After the formation of the State Council in 1931, the CNC continuously agitated for complete independence. As the Indian nationalist movement gained ground, the British government outlined a set of proposals in 1943, but Marxists opposed the transitional status, although moderates agreed to the proposals.

The white paper on constitutional reforms, which included Soulbury proposals, was placed before the State Council in 1945 by D.S Senanayake and was approved. Later, he informed the colonial office that he could not successfully challenge the Marxists if dominion status was not granted.

On August 15, 1947, the first election to the House of Representatives was held under the Soulbury constitution and the opening of parliament on February 4, 1948 marked the end of the status of crown colony. During the next 70 years. The Sri Lankan leaders continued to maintain the capitalist system of governance up-to- date (Although some attempts were made to change it during the period 1971-1974 by Marxists within the 1970 government of Mrs Bandaranaike and outside, but it was not successful).

The Constitution titled, The Democratic Socialist Republic of Sri Lanka- 1979 by President J.R Jayewardene (with 21 amendments so far) introduced the present ‘Executive Presidential system’ and is still continuing. These constitutional provisions provided a solid base for smooth functioning of the capitalist system although some cracks have emerged. The writer is of the view, that at present, the majority of people are dissatisfied with the prevailing governance system.

Present status of the political economy and living standards of the people:

Much has been written on the failure of successive governments since gaining independence to provide even some basic needs of the people let alone improving the quality of life and overall economic development in Sri Lanka; therefore, there is no need to repeat over and over again some facts and figures to justify this claim.

As this writer has explained in many articles published since 2014, the Sri Lankan economy   has been recording a persistently high ‘twin deficits’ meaning (1) government budget deficits since independence and (2) Balance of Payments (BOP) current account deficit with rest of the world due to deficit in exports minus imports. And CBSL has been compelled to resort to ‘money printing’ more than what is required/desired level while the successive governments continued to borrow to bridge the gap thus increasing foreign debt service beyond sustainable levels.

The real issue has been that our exports as a % of GDP has come down from 28% in four to five decades to 12% especially since 2014 to date. As explained earlier, since 1824 mainly the merchandise, capital had contributed to our economy’s capitalist growth and hardly any industrial manufacturing growth. Even in the case of agricultural and plantation crops, due to high cost of production and low yields compared to products from other countries, our exporters have not been able to compete in the global marketplace on ‘cost leadership strategy’.

Many have already expressed serious concerns about the deep economic crisis in the country and its impact on the people of Sri Lanka, especially the poor and the vulnerable, particularly women. The government of the day has not focussed enough to address those badly affected segments, including SMEs, construction industry etc. and address those vulnerabilities. Already, poor and some middle-class families became poorer.

According to a survey conducted by the Department of Census and statistics recently, some 60% of the household’s income has decreased. Income disparity between the rich, middle class and the poor has also increased. The Sri Lankan society’s poverty problems are closely related to this wider problem- namely, the growing gap in the share of income going to the rich, the middle class and the poor. The recent increases of VAT up to 18% in addition to price increases of fuel, electricity, water, transport, food items etc. have really aggravated the burden of the middle class and poor.

 The grand idea of capitalism is that those with capital will apply it to create more wealth that enables to create more employment and jobs for everyone. Not only the wealthy benefit but their wealth will trickle down to other classes as well. However, according to more comprehensive research studies done recently by eminent economics of the calibre of Prof. Joseph Stiglitz and Thomas Piketty, the inequality will worsen under free market capitalism.

Growing income disparity is not only a disaster for the poor, but also a threat to the rich. Poverty breeds crime, beggars, prostitution, massive social protest movements and inability to gain access to education and training, which will seriously affect developing our human resource requirements for improving businesses.

These economists urge the governments to embrace real solutions: Investing in education, science, technology and infrastructure, offering more help to the children of the poor, doing more to restore the economy to full employment, introducing more effective and proper tax policies etc. It is essential to ensure that adequate social protection is provided. They believe our choice is not between growth and fairness- with the right policies we can choose and achieve both. (For a more thorough discussion of the adverse economic consequences of inequality, please see Joseph Stiglitz, ‘The Price of Inequality’ and Thomas Piketty, ‘Capital in the twenty -First century’)

 Need to project immediate future scenario during the election year- 2024:

In the event, the Government is unable to provide these solutions, social unrest will further increase and the ruling party unpopularity will increase, thus paving way for political forces demanding a General or Presidential elections sooner or later. Once again, the government of the day would have to abandon the IMF policy prescription. It is interesting to note that even the IMF, an organisation not taking radical positions, has taken up the position that inequality is associated with instability. For details, please see ‘Inequality and unsustainable growth; two sides of the same coin? – IMF staff discussion note- 2011’.

 The writer is of the view that in the new year 2024 (exactly after 200 years of capitalist form of governance) there is a probability or a likely scenario that a major transformation of a ‘system change’ may take place including a complete abolition of the Executive Presidential system.  It is not impossible to obtain two thirds majority in Parliament to change the Constitution and adopt a new constitution approved by people in a referendum by early 2025 and thus ending the capitalist system that prevailed over 200 years in Sri Lanka. Whether it will provide tangible benefits to Sri Lanka and its people is yet to be ascertained.

(The author is a freelance writer who previously served as Executive Deputy Chairman/CEO at Bogawantalawa Tea Estates PLC and as Chairman, Sri Lanka Tea Board)



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Rethinking post-disaster urban planning: Lessons from Peradeniya

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University of Peradeniya

A recent discussion by former Environment Minister, Eng. Patali Champika Ranawaka on the Derana 360 programme has reignited an important national conversation on how Sri Lanka plans, builds and rebuilds in the face of recurring disasters.

His observations, delivered with characteristic clarity and logic, went beyond the immediate causes of recent calamities and focused sharply on long-term solutions—particularly the urgent need for smarter land use and vertical housing development.

Ranawaka’s proposal to introduce multistoried housing schemes in the Gannoruwa area, as a way of reducing pressure on environmentally sensitive and disaster-prone zones, resonated strongly with urban planners and environmentalists alike.

It also echoed ideas that have been quietly discussed within academic and conservation circles for years but rarely translated into policy.

One such voice is that of Professor Siril Wijesundara, Research Professor at the National Institute of Fundamental Studies (NIFS) and former Director General of the Royal Botanic Gardens, Peradeniya, who believes that disasters are often “less acts of nature and more outcomes of poor planning.”

Professor Siril Wijesundara

“What we repeatedly see in Sri Lanka is not merely natural disasters, but planning failures,” Professor Wijesundara told The Island.

“Floods, landslides and environmental degradation are intensified because we continue to build horizontally, encroaching on wetlands, forest margins and river reservations, instead of thinking vertically and strategically.”

The former Director General notes that the University of Peradeniya itself offers a compelling case study of both the problem and the solution. The main campus, already densely built and ecologically sensitive, continues to absorb new faculties, hostels and administrative buildings, placing immense pressure on green spaces and drainage systems.

“The Peradeniya campus was designed with landscape harmony in mind,” he said. “But over time, ad-hoc construction has compromised that vision. If development continues in the same manner, the campus will lose not only its aesthetic value but also its ecological resilience.”

Professor Wijesundara supports the idea of reorganising the Rajawatte area—located away from the congested core of the university—as a future development zone. Rather than expanding inward and fragmenting remaining open spaces, he argues that Rajawatte can be planned as a well-designed extension, integrating academic, residential and service infrastructure in a controlled manner.

Crucially, he stresses that such reorganisation must go hand in hand with social responsibility, particularly towards minor staff currently living in the Rajawatte area.

“These workers are the backbone of the university. Any development plan must ensure their dignity and wellbeing,” he said. “Providing them with modern, safe and affordable multistoried housing—especially near the railway line close to the old USO premises—would be both humane and practical.”

According to Professor Wijesundara, housing complexes built near existing transport corridors would reduce daily commuting stress, minimise traffic within the campus, and free up valuable land for planned academic use.

More importantly, vertical housing would significantly reduce the university’s physical footprint.

Drawing parallels with Ranawaka’s Gannoruwa proposal, he emphasised that vertical development is no longer optional for Sri Lanka.

“We are a small island with a growing population and shrinking safe land,” he warned.

“If we continue to spread out instead of building up, disasters will become more frequent and more deadly. Vertical housing, when done properly, is environmentally sound, economically efficient and socially just.”

Peradeniya University flooded

The veteran botanist also highlighted the often-ignored link between disaster vulnerability and the destruction of green buffers.

“Every time we clear a lowland, a wetland or a forest patch for construction, we remove nature’s shock absorbers,” he said.

“The Royal Botanic Gardens has survived floods for over a century precisely because surrounding landscapes once absorbed excess water. Urban planning must learn from such ecological wisdom.”

Professor Wijesundara believes that universities, as centres of knowledge, should lead by example.

“If an institution like Peradeniya cannot demonstrate sustainable planning, how can we expect cities to do so?” he asked. “This is an opportunity to show that development and conservation are not enemies, but partners.”

As climate-induced disasters intensify across the country, voices like his—and proposals such as those articulated by Patali Champika Ranawaka—underscore a simple but urgent truth: Sri Lanka’s future safety depends not only on disaster response, but on how and where we build today.

The challenge now lies with policymakers and planners to move beyond television studio discussions and academic warnings, and translate these ideas into concrete, people-centred action.

By Ifham Nizam ✍️

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Superstition – Major barrier to learning and social advancement

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At the initial stage of my six-year involvement in uplifting society through skill-based initiatives, particularly by promoting handicraft work and teaching students to think creatively and independently, my efforts were partially jeopardized by deep-rooted superstition and resistance to rational learning.

Superstitions exerted a deeply adverse impact by encouraging unquestioned belief, fear, and blind conformity instead of reasoning and evidence-based understanding. In society, superstition often sustains harmful practices, social discrimination, exploitation by self-styled godmen, and resistance to scientific or social reforms, thereby weakening rational decision-making and slowing progress. When such beliefs penetrate the educational environment, students gradually lose the habit of asking “why” and “how,” accepting explanations based on fate, omens, or divine intervention rather than observation and logic.

Initially, learners became hesitant to challenge me despite my wrong interpretation of any law, less capable of evaluating information critically, and more vulnerable to misinformation and pseudoscience. As a result, genuine efforts towards social upliftment were obstructed, and the transformative power of education, which could empower individuals economically and intellectually, was weakened by fear-driven beliefs that stood in direct opposition to progress and rational thought. In many communities, illnesses are still attributed to evil spirits or curses rather than treated as medical conditions. I have witnessed educated people postponing important decisions, marriages, journeys, even hospital admissions, because an astrologer predicted an “inauspicious” time, showing how fear governs rational minds.

While teaching students science and mathematics, I have clearly observed how superstition acts as a hidden barrier to learning, critical thinking, and intellectual confidence. Many students come to the classroom already conditioned to believe that success or failure depends on luck, planetary positions, or divine favour rather than effort, practice, and understanding, which directly contradicts the scientific spirit. I have seen students hesitate to perform experiments or solve numerical problems on certain “inauspicious” days.

In mathematics, some students label themselves as “weak by birth”, which creates fear and anxiety even before attempting a problem, turning a subject of logic into a source of emotional stress. In science classes, explanations based on natural laws sometimes clash with supernatural beliefs, and students struggle to accept evidence because it challenges what they were taught at home or in society. This conflict confuses young minds and prevents them from fully trusting experimentation, data, and proof.

Worse still, superstition nurtures dependency; students wait for miracles instead of practising problem-solving, revision, and conceptual clarity. Over time, this mindset damages curiosity, reduces confidence, and limits innovation, making science and mathematics appear difficult, frightening, or irrelevant. Many science teachers themselves do not sufficiently emphasise the need to question or ignore such irrational beliefs and often remain limited to textbook facts and exam-oriented learning, leaving little space to challenge superstition directly. When teachers avoid discussing superstition, they unintentionally reinforce the idea that scientific reasoning and superstitious beliefs can coexist.

To overcome superstition and effectively impose critical thinking among students, I have inculcated the process to create a classroom culture where questioning was encouraged and fear of being “wrong” was removed. Students were taught how to think, not what to think, by consistently using the scientific method—observation, hypothesis, experimentation, evidence, and conclusion—in both science and mathematics lessons. I have deliberately challenged superstitious beliefs through simple demonstrations and hands-on experiments that allow students to see cause-and-effect relationships for themselves, helping them replace belief with proof.

Many so-called “tantrik shows” that appear supernatural can be clearly explained and exposed through basic scientific principles, making them powerful tools to fight superstition among students. For example, acts where a tantrik places a hand or tongue briefly in fire without injury rely on short contact time, moisture on the skin, or low heat transfer from alcohol-based flames rather than divine power.

“Miracles” like ash or oil repeatedly appearing from hands or idols involve concealment or simple physical and chemical tricks. When these tricks are demonstrated openly in classrooms or science programmes and followed by clear scientific explanations, students quickly realise how easily perception can be deceived and why evidence, experimentation, and critical questioning are far more reliable than blind belief.

Linking concepts to daily life, such as explaining probability to counter ideas of luck, or biology to explain illness instead of supernatural causes, makes rational explanations relatable and convincing.

Another unique example that I faced in my life is presented here. About 10 years ago, when I entered my new house but did not organise traditional rituals that many consider essential for peace and prosperity as my relatives believed that without them prosperity would be blocked.  Later on, I could not utilise the entire space of my newly purchased house for earning money, largely because I chose not to perform certain rituals.

While this decision may have limited my financial gains to some extent, I do not consider it a failure in the true sense. I feel deeply satisfied that my son and daughter have received proper education and are now well settled in their employment, which, to me, is a far greater achievement than any ritual-driven expectation of wealth. My belief has always been that a house should not merely be a source of income or superstition-bound anxiety, but a space with social purpose.

Instead of rituals, I strongly feel that the unused portion of my house should be devoted to running tutorials for poor and underprivileged students, where knowledge, critical thinking, and self-reliance can be nurtured. This conviction gives me inner peace and reinforces my faith that education and service to society are more meaningful measures of success than material profit alone.

Though I have succeeded to some extent, this success has not been complete due to the persistent influence of superstition.

by Dr Debapriya Mukherjee
Former Senior Scientist
Central Pollution Control Board, India ✍️

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Race hate and the need to re-visit the ‘Clash of Civilizations’

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Australian Prime Minister Anthony Albanese: ‘No to race hate’

Australian Prime Minister Anthony Albanese has done very well to speak-up against and outlaw race hate in the immediate aftermath of the recent cold-blooded gunning down of several civilians on Australia’s Bondi Beach. The perpetrators of the violence are believed to be ardent practitioners of religious and race hate and it is commendable that the Australian authorities have lost no time in clearly and unambiguously stating their opposition to the dastardly crimes in question.

The Australian Prime Minister is on record as stating in this connection: ‘ New laws will target those who spread hate, division and radicalization. The Home Affairs Minister will also be given new powers to cancel or refuse visas for those who spread hate and a new taskforce will be set up to ensure the education system prevents, tackles and properly responds to antisemitism.’

It is this promptness and single-mindedness to defeat race hate and other forms of identity-based animosities that are expected of democratic governments in particular world wide. For example, is Sri Lanka’s NPP government willing to follow the Australian example? To put the record straight, no past governments of Sri Lanka initiated concrete measures to stamp out the evil of race hate as well but the present Sri Lankan government which has pledged to end ethnic animosities needs to think and act vastly differently. Democratic and progressive opinion in Sri Lanka is waiting expectantly for the NPP government’ s positive response; ideally based on the Australian precedent to end race hate.

Meanwhile, it is apt to remember that inasmuch as those forces of terrorism that target white communities world wide need to be put down their counterpart forces among extremist whites need to be defeated as well. There could be no double standards on this divisive question of quashing race and religious hate, among democratic governments.

The question is invariably bound up with the matter of expeditiously and swiftly advancing democratic development in divided societies. To the extent to which a body politic is genuinely democratized, to the same degree would identity based animosities be effectively managed and even resolved once and for all. To the extent to which a society is deprived of democratic governance, correctly understood, to the same extent would it experience unmanageable identity-bred violence.

This has been Sri Lanka’s situation and generally it could be stated that it is to the degree to which Sri Lankan citizens are genuinely constitutionally empowered that the issue of race hate in their midst would prove manageable. Accordingly, democratic development is the pressing need.

While the dramatic blood-letting on Bondi Beach ought to have driven home to observers and commentators of world politics that the international community is yet to make any concrete progress in the direction of laying the basis for an end to identity-based extremism, the event should also impress on all concerned quarters that continued failure to address the matters at hand could prove fatal. The fact of the matter is that identity-based extremism is very much alive and well and that it could strike devastatingly at a time and place of its choosing.

It is yet premature for the commentator to agree with US political scientist Samuel P. Huntingdon that a ‘Clash of Civilizations’ is upon the world but events such as the Bondi Beach terror and the continuing abduction of scores of school girls by IS-related outfits, for instance, in Northern Africa are concrete evidence of the continuing pervasive presence of identity-based extremism in the global South.

As a matter of great interest it needs mentioning that the crumbling of the Cold War in the West in the early nineties of the last century and the explosive emergence of identity-based violence world wide around that time essentially impelled Huntingdon to propound the hypothesis that the world was seeing the emergence of a ‘Clash of Civilizations’. Basically, the latter phrase implied that the Cold War was replaced by a West versus militant religious fundamentalism division or polarity world wide. Instead of the USSR and its satellites, the West, led by the US, had to now do battle with religion and race-based militant extremism, particularly ‘Islamic fundamentalist violence’ .

Things, of course, came to a head in this regard when the 9/11 calamity centred in New York occurred. The event seemed to be startling proof that the world was indeed faced with a ‘Clash of Civilizations’ that was not easily resolvable. It was a case of ‘Islamic militant fundamentalism’ facing the great bulwark, so to speak, of ‘ Western Civilization’ epitomized by the US and leaving it almost helpless.

However, it was too early to write off the US’ capability to respond, although it did not do so by the best means. Instead, it replied with military interventions, for example, in Iraq and Afghanistan, which moves have only earned for the religious fundamentalists more and more recruits.

Yet, it is too early to speak in terms of a ‘Clash of Civilizations’. Such a phenomenon could be spoken of if only the entirety of the Islamic world took up arms against the West. Clearly, this is not so because the majority of the adherents of Islam are peaceably inclined and want to coexist harmoniously with the rest of the world.

However, it is not too late for the US to stop religious fundamentalism in its tracks. It, for instance, could implement concrete measures to end the blood-letting in the Middle East. Of the first importance is to end the suffering of the Palestinians by keeping a tight leash on the Israeli Right and by making good its boast of rebuilding the Gaza swiftly.

Besides, the US needs to make it a priority aim to foster democratic development worldwide in collaboration with the rest of the West. Military expenditure and the arms race should be considered of secondary importance and the process of distributing development assistance in the South brought to the forefront of its global development agenda, if there is one.

If the fire-breathing religious demagogue’s influence is to be blunted worldwide, then, it is development, understood to mean equitable growth, that needs to be fostered and consolidated by the democratic world. In other words, the priority ought to be the empowerment of individuals and communities. Nothing short of the latter measures would help in ushering a more peaceful world.

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