Connect with us

Midweek Review

Developing economic crisis:Truth unravelled before COPE

Published

on

(From Left): Chief Financial Officer, Finance Ministry B.K.R. Balasooriya, Finance Secretary K.M. Mahinda Siriwardana, CBSL Governor Dr. Nandalal Weerasinghe and Deputy CBSL Governor T.M.J.Y.P. Fernando

By Shamindra Ferdinando

A COPE (Committee on Public Enterprises) meeting on May 25, chaired by Prof. Charitha Herath (SLPP National List), revealed the devastating truth about the utterly irresponsible public finance management that led to the ruination of the national economy.

A two-page press release in Sinhala issued by Janakantha Silva, Director Legislative Services and Acting Director of Communications, on the same day, disclosed how the incumbent dispensation caused the unprecedented meltdown.

But, the releasing of video footage of the entire meeting by the Parliament helped the public to clearly understand how the Finance Ministry, the Central Bank of Sri Lanka (CBSL), the Monetary Board, the then Presidential Secretary Dr. P.B. Jayasundera, the Cabinet of Ministers and the Parliament contributed to the debilitating economic-political and social crisis. The COPE meeting should attract Attorney General Sanjay Rajaratnam’s immediate attention. The Bar Association of Sri Lanka (BASL), too, cannot turn a blind eye to the shocking exposure of a seriously flawed public finance system and nothing but a negligent and incompetent Parliament.

During the proceedings, top Samagi Jana Balavegaya (SJB) member of the parliamentary watchdog committee, Dr. Harsha de Silva declared the appointment of ‘RW’ as the Finance Minister in addition to being the PM. When the former UNPer’s COPE colleagues raised eyebrows, Dr. de Silva quickly said: “Sorry. Mr. Ranil Wickremesinghe.’ A smiling Prof. Herath reminded that PM Wickremesinghe was Dr. de Silva’s former boss. The SJB’s economic guru de Silva functioned as State Minister for National Policies and Economic Affairs.

The then yahapalana premier held the Cabinet portfolios of those subjects. At the time the Treasury bond scams that had been blamed on Wickremesinghe and Company were perpetrated in Feb 2015 and March 2016, the CBSL functioned under the purview of Wickremesinghe’s ministry. So in actual fact Dr. Harsha de Silva, having been part of that yahapalana team that messed things up at the time in style, is in no position to take a ‘holier than thou stand’ now.

Similarly Champika Ranawaka, too, is under many a cloud. When he was the Power and Energy Minister, his bosom pal, then Chairman of the CEB, figured in the notorious Panama papers. So whose money had the then CEB Chairman Anura Wijepala banked in hidden accounts offshore?

Among those who had been at the meeting, summoned by the COPE, were Director General, Internal Audit, Finance Ministry Mrs. Deepika Colombage, Chief Financial Officer, Finance Ministry B.K.R. Balasooriya, Finance Secretary K.M. Mahinda Siriwardana, CBSL Governor Dr. Nandalal Weerasinghe, Deputy CBSL Governor T.M.J.Y.P. Fernando, Director General, Finance Ministry Hemal Kasthuriarachchi, Assistant Governor, CBSL Ananda Jayalath, Director, International Operations Department, CBSL Dr (Ms) D.S.T. Wanaguru, Monetary Board member Sanjiva Jayawardena, PC, Monetary Board member Dr. Ranee Jayamaha, Assistant Governor, K.M. A.N. Daulagala (Secretary to the Monetary Board), Assistant Governor, CBSL K.G.P. Sirikumara, Director, Economic Research, CBSL P.K.G. Harischandra, Director, Human Resources, CBSL A.M. Gunatilake, Director, Payment and Settlement Department, CBSL M.R. Wijewardena, Director, Legal and Compliance Department, CBSL Dr. (Mrs) A.A.I.N. Wickramasinghe , Director, Domestic Operations Department, CBSL Dr. R.A.A. Perera, Additional Director, Facilities Management Department, CBSL S.K.P. Vitharana, Additional Director, International Operations Department, CBSL S. Obeysekara, Chief Accountant, CBSL Mrs D.S.L. Sirimanne, Director, Department of Foreign Exchange Mrs. D.R. Karunaratne and Director, Department of non-bank financial institutions R.M.C.H.K. Jayasinghe.

Of them, only Governor Dr. Weerasinghe, Treasury Secretary Siriwardana and Monetary Board members Jayawardena and Jayamaha responded to the queries raised by the COPE. On behalf of the parliamentary watchdog, its Chairman Prof. Herath, Eran Wickremaratne (SJB), Rear Admiral (retd.) Sarath Weerasekera (SLPP), Rauff Hakeem (SLMC), Madura Vithana (SLPP), Jagath Pushpakumara (SLPP) and Premnath C. Dolawatta (SLPP) raised questions and also commented on the issues at hand. But, the day certainly belonged to SJB lawmakers, Patali Champika Ranawaka, who is also the leader of ’43 Brigade’ and Dr. Harsha de Silva.

At the onset of the proceedings, Prof. Herath, while underscoring the sensitive nature of the impending discussions, declared the 2018 and 2019 Auditor General’s reports on the CBSL were to be examined with the focus on the current status of the apex operation.

SJB MPs on the offensive

After Dr. Weerasinghe and Mahinda Siriwardana made their initial statements and responded to queries raised by Prof. Herath, lawmaker Ranawaka questioned the accountability on the part of the CBSL as well as the Monetary Board for the current crisis. The former minister Ranawaka emphasized that senior officials of both institutions couldn’t, under any circumstances, absolve themselves of the responsibility for bankrupting the country. The Colombo District MP didn’t mince his words when he declared that the top management officers of the CBSL were a handsomely remunerated lot whose culpability in the whole sorry state of affairs couldn’t be ignored.

Pointing out that the government has officially accepted Sri Lanka’s bankrupt status, MP Ranawaka compared how the financial meltdown finally led to street violence, including death of a lawmaker whereas senior CBSL and Monetary Board members who oversaw the ruination of the national economy seemed not to have attracted public attention.

The former JHU heavyweight Ranawaka posed several pertinent questions to those who had been summoned before the COPE regarding the role and conduct of the Secretary to the Treasury, CBSL and the Finance Ministry. Dr. de Silva, too, raised contentious issues at hand relating to the crisis, particularly how the SLPP handled the economy during the March/April 2020 to March 2022 period when CBSL Governor Ajith Nivard Cabraal suddenly resigned after having floated the Rupee. The much delayed decision to float the Rupee caused a catastrophe as it then immediately nosedived against the dollar and other major currencies.

Their relentless probing questions exposed an ugly truth. The shocking exposure of the then Prime Minister Mahinda Rajapaksa who handled the finance portfolio, the then Presidential Secretary Dr. P.B. Jayasundera, himself a former top Central Banker and ex-Treasury Secretary, Governors of the Central Bank Prof. W.D. Lakshman and Ajith Nivard Cabraal, Monetary Board member and Treasury Secretary S.R. Attygalle, the entire Cabinet-of-Ministers chaired by President Gotabaya Rajapaksa and the Parliament to varying degrees has sent shock waves through the political establishment.

COPE proceedings revealed how those who had been responsible for public wellbeing, both at ministerial and official level, simply allowed the situation to deteriorate to such an extent today the government lacked the wherewithal to meet basic requirements. They were most probably waiting for India and China, in rivalry, come to their rescue. The Indian help came but it was too late as the situation had snowballed in next to no time. As to why China dragged its feet might be due more to Rajapaksa sibling and duel citizen Basil increasingly sailing the Lankan ship towards the West, forgetting the fact that we achieved so much in the past thanks to China, including its unquestioning support to us in our fight to defeat LTTE terrorists.

Lawmakers Ranawaka and Dr. Silva pressed the Finance Secretary Siriwardana, Governor Weerasinghe and Monetary Board members on (1) massive tax cut implemented soon after the last presidential election in Nov 2019, contrary to the advice given by the IMF (2) the IMF’s refusal to grant RFI (Rapid Financing instrument) to Sri Lanka in March/April 2020 and (3) printing money (4) colossal losses suffered by the CBSL due to its refusal to float the Rupee.

Officials’ answers flabbergasted COPE. The Finance Ministry, CBSL and the Monetary Board had been mercilessly dominated by the SLPP and did nothing to change the extremely dangerous path the country was taking. The SLPP was hell-bent on continuing with its reckless strategy at whatever consequences.

Conduct of Monetary Board

The Monetary Board consists of five persons – two ex-officio members, Governor, Secretary to the Finance Ministry, and three nominated members. At the time of the issue at hand Prof. W.D. Lakshman and S.R. Attygalle had served on the Monetary Board and the latter as the Secretary to the Finance Ministry as well. The Monetary Board’s appointed members were President’s Counsel Sanjiva Jayawardena, Dr. Ranee Jayamaha (retired Central Bank Deputy Governor) and successful businessman Samantha Kumarasinghe, who put Sri Lanka on the world cosmetic manufacturing map through his Nature’s Secret line of products, which earned the ire of some multinational leaders in the field because of its resounding overnight success.

Dr. de Silva flayed the government over the appointment of Samantha Kumarasinghe, claiming he didn’t know the basics in economics. But SJB economic pundit was apparently not aware that Kumarasinghe has a MBA from the prestigious Harvard Business School like the late A.S. Jayawardena, who, with his Harvard MBA, went on to serve successfully as the country’s Central Bank Governor and Treasury Secretary during some of the most testing times for this country, especially during the Asian financial crisis of 1996 and the terrorist bombing of the Central Bank in 2001.

According to a statement, dated July 15, 2020, issued by the CBSL, Sanjeeva Jayawardena has been appointed with effect from Feb 26, 2020 and Dr Ranee Jayamaha and Samantha Kumarasinghe with effect from June 29,.2020. President Gotabaya Rajapaksa appointed them under section 8(2)(c) of the Monetary Law Act with the approval of the Constitutional Council.

MP de Silva questioned the suitability of Kumarasinghe on the basis of an article he published in the Lankadeepa in which the SJB heavyweight claimed the Monetary Board member expressed views very much contrary to basic economy theories.

Let me reproduce a CBSL statement issued on July 15, 2020 on Kumaasinghe’s appointment. The Island believes it would be fair by the former Monetary Board member.

The text of the CBSL statement: “Samantha Kumarasinghe currently serves as Chairman and Managing Director of several companies in Sri Lanka, Bangladesh and Vietnam that operate in industrial sectors across cosmetics, textile chemicals, household cleaning products, organic food and biological fertilisers.

He currently serves as a member of the Presidential Task Force for Economic Revival and Poverty Eradication (2020), President of Lanka Industry Forum for Empowerment (LIFE) (2018 to date) and Chairman of Cosmetics Sector Advisory Committee at the Ministry of Industries (2016 to date). He has also served in the capacities of member of Presidential Industrialisation Commission (from 2018 to 2019), a board member of the Insurance Board of Sri Lanka (2012 to 2014), a committee member of the Implementation of the Integrated Curriculum, Subjects and Review of Academic Activities Process of the Ministry of Education (2013) and as Commissioner of the Presidential Taxation Commission (2009 to 2010).

Kumarasinghe studied at Royal College, Colombo. He is a chemistry graduate of the University of Peradeniya and an alumnus of the Harvard Business School, USA. He started his entrepreneurial career in 1993 with just 12 employees and was adjudged ‘Entrepreneur of the Year’ in 2008. He was awarded a Presidential National Honours Award in 2019 for his valuable contribution to the country.”

Dr. Jayamaha strongly defended her conduct as a member of the Monetary Board and that of President’s Counsel Jayawardena. Commenting on calamitous decisions to fix the Rupee at 203 and refusal to engage the IMF, Dr. Jayamahaha alleged that Governor Lakshman, Finance Secretary Attygalle and nominated member Kumarasinghe pursued an agenda of their own. Dr. Jayamaha alleged that the Governor’s group always had the majority and therefore, they couldn’t have opposed. Dr. de Silva rejected Dr. Jayamaha’s stand.

The lawmaker insisted that all members of the Monetary Board were equally responsible for the current predicament. The MP suggested that Dr. Jayamaha and President’s Counsel Jayawardena should have gone public to deter the Governor and his colleagues.

SJ hits back

Sanjeeva Jayawardena quite clearly explained how he and Dr. Jayamaha took a common stand on touchy matters. Apropos Sri Lanka’s RFI request and related issues, Jayawardena revealed, beginning early 2020, they on nine different occasions, recommended/suggested engagement with the IMF. Jayawardena also explained their efforts to establish what he called an external debt monitoring mechanism. The President’s Counsel explained how Governor Cabraal acted, contrary too decision taken in respect of floating the Rupee at a proper forum. Jayawardena and Jayamaha have also warned against excessive money printing. Dr. de Silva asked for the minutes of the relevant meetings. The lawmaker reiterated that members of the Monetary Board bear equal responsibility for the current crisis.

One of the most controversial issues was the massive tax cut to the tune of Rs 600 bn implemented by the current dispensation. Treasury Secretary Mahinda Siriwardana asserted that the decision on the tax cut should have been reversed in the wake of the Covid-19 eruption. Dr. de Silva pushed Siriwardana on the issue at hand. The former UNPer asked Finance Secretary Mahinda Siriwardana to reveal the person who decided to implement the tax cut regardless of specific IMF advice at a time the lending agency called for debt restructuring in the wake of Colombo seeking RFI? The lawmaker also wanted the Finance Secretary to confirm whether the Finance Ministry conducted a survey before the controversial decision was made? Lawmaker de Silva asked who dropped the IMF recommendations to the dustbin. Finance Secretary side-stepped the issue in spite of lawmaker Ranawaka attacked the CBSL and the Finance Ministry on the same issue. The Finance Secretary struggled to cope up with the situation whereas Dr. Weerasinghe revealed how the tax cut was ordered. According to Dr. Weerasinghe, there hadn’t been any consultations at any level before they were informed of the disputed decision.

Earlier, Dr. Weerasinghe, in response to probing questions, acknowledged the circumstances Dr. PB Jayasundera decided not to engage the IMF regardless of the precarious economic outlook. Lawmaker Ranawaka repeatedly said that the crisis that had engulfed the country is far worse than the Treasury bond scams, 2019 Easter Sunday massacre or alleged war crimes.

Appearing before the COPE, as well as the Committee on Public Finance (COPF), headed by Anura Priyadarshana Yapa (SLPP) Dr. Weerasinghe last week acknowledged how the Finance Ministry misled the Parliament over the years. There hadn’t been a previous instance of a CBSL Chief going public with the truth. Dr. Weerasinghe told COPE how the Parliament allocated unavailable funds to various ministries on the basis of false estimates. That had been the norm as politicians and officials cooperated in a despicable way to deceive the public.

Dr. Weerasinghe also blamed such irresponsible practices for the current crisis. Perhaps, Dr. Weerasinghe should be especially commended for reminding the COPE of the responsibility of the Parliament in ensuring suitable appointments are made. The CBSL Chief dared to be forthright in his appearances before parliamentary watchdog committees thereby set up new standards in Sri Lanka’s utterly corrupt public services. However, the CBSL Chief, too, cannot exonerate himself of the responsibility for overall irresponsible conduct of the institution, as pointed out by Dr. de Silva in respect of the Monetary Board.



Midweek Review

2019 Easter Sunday carnage in retrospect

Published

on

November 21, 2019: President Gotabaya Rajapaksa meets Archbishop of Colombo, His Eminence Malcolm Cardinal Ranjith at the Bishop House where he requested the Church to nominate a representative for the Presidential Commission of Inquiry (PCoI) probing the Easter Sunday carnage.

Coordinated suicide attacks targeted three churches—St. Anthony’s in Colombo, St. Sebastian’s at Katuwapitiya and Zion Church in Batticaloa—along with popular tourist hotels Shangri-La, Kingsbury, and Cinnamon Grand. No less a person than His Eminence Archbishop of Colombo Rt. Rev. Malcolm Cardinal Ranjith is on record as having said that the carnage could have been averted if the Yahapalana government shared the available Indian intelligence warning with him. Yahapalana Minister Harin Fernando publicly admitted that his family was aware of the impending attack and the warning issued to senior police officers in charge of VVIP/VIP security is evidence that all those who represented Parliament at the time knew of the mass murder plot. Against the backdrop of Indian intelligence warning and our collective failure to act on it, it would be pertinent to ask the Indians whether they knew the Easter Sunday operation was to facilitate Gotabaya Rajapaksa’s victory at the 2019 presidential poll. Perhaps, a key to the Easter Sunday conspiracy is enigma Sara Jasmin (Tamil girl from Batticaloa converted to Islam) whose husband Atchchi Muhammadu Hasthun carried out the attack on St. Sebastian’s Church, Katuwapitiya

By Shamindra Ferdinando

Pivithuru Hela Urumaya (PHU) leader Udaya Gammanpila’s Pasku Praharaye Mahamolakaru Soya Yema (Searching for the mastermind behind the Easter Sunday attacks) inquired into the 2019 April 21 Easter Sunday carnage. The former Minister and Attorney-at-Law quite confidently argued that the mastermind of the only major post-war attack was Zahran Hashim, one of the two suicide bombers who targeted Shangri-la, Colombo.

Gammanpila launched his painstaking work recently at the Sambuddhathva Jayanthi Mandiraya at Thummulla, with the participation of former Presidents Gotabaya Rajapaksa, who had been accused of being the beneficiary of the Easter Sunday carnage at the November 2019 presidential election, and Maithripala Sirisena faulted by the Presidential Commission of Inquiry (PCoI) that probed the heinous crime. Rajapaksa and Sirisena sat next to each other, in the first row, and were among those who received copies of the controversial book.

PCoI, appointed by Sirisena in September, 2019, in the run-up to the presidential election, in its report submitted to President Gotabaya Rajapaksa, in February, 2020, declared that Sirisena’s failure as the President to act on ‘actionable intelligence’ exceeded mere civil negligence. Having declared criminal liability on the part of Sirisena, the PCoI recommended that the Attorney General consider criminal proceedings against former President Sirisena under any suitable provision in the Penal Code.

PCoI’s Chairman Supreme Court Judge Janak de Silva handed over the final report to President Rajapaksa on February 1, 2021 at the Presidential Secretariat. Gotabaya Rajapaksa received the first and second interim reports on 20 December and on 2 March, 2020, respectively.

The Commission consists of the following commissioners: Justice Janak De Silva (Judge of the Supreme Court and Chairman of the Commission), Justice Nissanka Bandula Karunarathna (Judge of the Court of Appeal), Justice Nihal Sunil Rajapakse (Retired Judge of the Court of Appeal), Bandula Kumara Atapattu (Retired Judge of the High Court) and Ms W.M.M.R. Adikari (Retired Ministry Secretary).

H.M.P. Buwaneka Herath functioned as the Secretary to the PCoI.

It would be pertinent to mention that the Archbishop of Colombo Malcolm Cardinal Ranjith, declined an opportunity offered by President Rajapaksa to nominate a person for the PCoI. The Church leader asserted such a move would be misconstrued by various interested parties. Both the former President and Archbishop of Colombo confirmed that development soon after the presidential election.

Having declared its faith in the PCoI and received assurance of the new government’s intention to implement its recommendations, the Church was taken aback when the government announced the appointment of a six-member committee, chaired by Minister Chamal Rajapaksa, to examine the PCoI and recommend how to proceed. That Committee included Ministers Johnston Fernando, Udaya Gammanpila, Ramesh Pathirana, Prasanna Ranatunga and Rohitha Abeygunawardena.

The Church cannot deny that their position in respect of the Yahapalana government’s pathetic failure to thwart the Easter Sunday carnage greatly influenced the electorate, and the SLPP presidential candidate Gotabaya Rajapaksa directly benefited. Alleging that the Archbishop of Colombo played politics with the Easter Sunday carnage, SJB parliamentarian Harin Fernando, in June 2020, didn’t mince his words when he accused the Church of influencing a decisive 5% of voters to back Gotabaya Rajapaksa. At the time that accusation was made about nine months before the PCoI handed over its report, President Rajapaksa and the Archbishop of Colombo enjoyed a close relationship.

The Church raised the failure on the part of the government to implement the PCoI’s recommendations six months after President Rajapaksa received the final report.

The National Catholic Committee for Justice to Eastern Sunday Attack Victims, in a lengthy letter dated 12 July 2021, demanded the government deal with the following persons for their failure to thwart the attacks. The Committee warned that unless the President addressed their concerns alternative measures would be taken. The government ignored the warning. Instead, the SLPP adopted delaying tactics much to their disappointment and the irate Church finally declared unconditional support for the US-India backed regime change project.

Sirisena and others

On the basis of the 19th Chapter, titled ‘Accountability’ of the final report, the Committee drew President Rajapaksa’s attention to the following persons as listed by the PCoI: (1) President Maithripala Sirisena (2) PM Ranil Wickremesinghe (3) Defence Secretary Hemasiri Fernando (4) Chief of National Intelligence Sisira Mendis (5) Director State Intelligence Service Nilantha Jayawardena.

The 20th Chapter, titled ‘Failures on the part of law enforcement authorities’ in the Final report (First Volume), identified the following culprits ,namely IGP Pujith Jayasundera, SDIG Nandana Munasinghe (WP), Deshabandu Tennakoon (DIG, Colombo, North), SP Sanjeewa Bandara (Colombo North), SSP Chandana Atukorale, B.E.I. Prasanna (SP, Director, Western province, Intelligence), ASP Sisira Kumara, Chief Inspector R.M. Sarath Kumarasinghe (Acting OIC, Fort), Chief Inspector Sagara Wilegoda Liyanage (OIC, Fort)., Chaminda Nawaratne (OIC, Katana), State Counsel Malik Azeez and Deputy Solicitor General Azad Navaavi.

The PCoI named former Minister and leader of All Ceylon Makkal Congress Rishad Bathiudeen, his brother Riyaj, Dr Muhamad Zulyan Muhamad Zafras and Ahamad Lukman Thalib as persons who facilitated the Easter Sunday conspiracy, while former Minister M.L.A.M. Hisbullah was faulted for spreading extremism in Kattankudy.

Major General (retd) Suresh Sallay, who is now in remand custody, under the CID, for a period of 90 days, in terms of the prevention of Terrorism Act (PTA) ,was not among those named by the PCoI. Sallay, who served as the head of the Directorate of Military Intelligence (DMI/from 2012 to 2016) was taken into custody on 25 February and named as the third suspect in the high profile investigation. (Interested parties propagated that Sallay was apprehended on the basis of UK’s Channel 4 claim that the officer got in touch with would-be Easter Sunday bombers, including Zahran Hashim, with the help of Sivanesathurai Chandrakanthan, alias Pilleyan. However, Pilleyan who had been arrested in early April 2025 under PTA was recently remanded by the Mount Lavinia Magistrate’s Court, pending the Attorney General’s recommendations in connection with investigations into the disappearance of a Vice Chancellor in the Eastern Province in 2006. There was absolutely no reference to the Easter Sunday case)

The Church also emphasised the need to investigate the then Attorney General Dappula de Livera’s declaration of a ‘grand conspiracy’ behind the Easter Sunday carnage. The Church sought answers from President Rajapaksa as to the nature of the grand conspiracy claimed by the then AG on the eve of his retirement.

Sallay was taken into custody six years after the PCoI handed over its recommendations to President Rajapaksa and the appointment of a six-member parliamentary committee that examined the recommendations. The author of Pasku Praharaye Mahamolakaru Soya Yema, Gammanpila, the only lawyer in the six-member PCoI, should be able to reveal the circumstances that committee came into being.

Against the backdrop of the PCoI making specific recommendations in respect of the disgraced politicians, civilian officials and law enforcement authorities over accountability and security failures, the SLPP owed an explanation regarding the appointment of a six-member committee of SLPPers. Actually, the SLPP owed an explanation to Sallay whose arrest under the PTA eight years after Easter Sunday carnage has to be discussed taking into consideration the failure to implement the recommendations.

Let me briefly mention PCoI’s recommendations pertaining to two senior police officers. PCoI recommended that the AG consider criminal proceedings against SDIG Nandana Munasinghe under any suitable provision in the Penal Code or Section 82 of the Police Ordinance (Final report, Vol 1, page 312). The PCoI recommended a disciplinary inquiry in respect of DIG Deshabandu Tennakoon. The SLPP simply sat on the PCoI recommendations.

Following the overthrow of President Rajapaksa by a well-organised Aragalaya mob in July 2022, the SLPP and President Ranil Wickremesinghe paved the way for Deshabandu Tennakoon to become the Acting IGP in November 2023. Wickremesinghe went out of his way to secure the Constitutional Council’s approval to confirm the controversial police officer Tennakoon’s status as the IGP.

Some have misconstrued the Supreme Court ruling, given in January 2023, as action taken by the State against those named in the PCoI report. It was not the case. The SC bench, comprising seven judges, ordered Sirisena to pay Rs 100 mn into a compensation fund in response to 12 fundamental rights cases filed by families of the Easter Sunday victims, Catholic clergy and the Bar Association of Sri Lanka. The SC also ordered ex-IGP Pujith Jayasundara and former SIS head Nilantha Jayawardene to pay Rs. 75m rupees each, former Defence Secretary Hemasiri Fernando Rs. 50 million and former CNI Sisira Mendis Rs. 10 million from their personal money. All of them have been named in the PCoI report. As previously mentioned, Maj. Gen. Sallay, who headed the SIS at the time of the SC ruling that created the largest ever single compensation fund, was not among those faulted by the sitting and former justices.

Initial assertion

The Archbishop of Colombo, in mid-May 2019, declared the Easter Sunday carnage was caused by local youth at the behest of a foreign group. The leader of the Catholic Church said so in response to a query raised by the writer regarding a controversial statement made by TNA MP M. A. Sumanthiran. The Archbishop was joined by Most Ven Ittapane Dhammalankara Nayaka Thera of Kotte Sri Kalyani Samagri Dharma Maha Sangha Sabha of Siyam Maha Nikaya. They responded to media queries at the Bishop’s House, Borella.

The Archbishop contradicted Sumanthiran’s claim that the failure on the part of successive governments to address the grievances of minorities over the past several decades led to the 2019 Easter Sunday massacre.

Sumanthiran made the unsubstantiated claim at an event organised to celebrate the first anniversary of the Sinhala political weekly ‘Annidda,’ edited by Attorney-at-Law K.W. Janaranjana at the BMICH.

The Archbishop alleged that a foreign group used misguided loyal youth to mount the Easter Sunday attacks (‘Cardinal rejects TNA’s interpretation’, with strap line ‘foreign group used misguided local youth’, The Island, May 15, 2019 edition).

Interested parties interpreted the Easter Sunday carnage in line with their thinking. The writer was present at a special media briefing called by President Sirisena on 30 April, 2019 at the President’s House where the then Northern Province Governor Dr. Suren Raghavan called for direct talks with those responsible for the Easter Sunday massacre. One-time Director of the President’s Media Division (PMD) Dr. Raghavan emphasised that direct dialogue was necessary in the absence of an acceptable mechanism to deal with such a situation. Don’t forget Sisisena had no qualms in leaving the country a few days before the attacks and was away in Singapore when extremists struck. Sirisena arrived in Singapore from India.

The NP Governor made the declaration though none of the journalists present sought his views on the post-Easter Sunday developments.

During that briefing, in response to another query raised by the writer, Army Commander Lt. Gen. Mahesh Senanayake disclosed that the CNI refrained from sharing intelligence alerts received by the CNI with the DMI. Brigadier Chula Kodituwakku, who served as Director, DMI, had been present at Sirisena’s briefing and was the first to brief the media with regard to the extremist build-up leading to the Easter Sunday attacks.

The collapse of the Yahapalana arrangement caused a security nightmare. Frequent feuds between Yahapalana partners, the UNP and the SLFP, facilitated the extremists’ project. The top UNP leadership feared to step in, even after Justice Minister Dr. Wijeyadasa Rajapaksha issued a warning in Parliament, in late 2016, regarding extremist activities and some Muslim families securing refuge in countries dominated by ISIS. Instead of taking tangible measures to address the growing threat, a section of the UNP parliamentary group pounced on the Minister.

The UNP felt that police/military action against extremists may undermine their voter base. The UNP remained passive even after extremists made an abortive bid to kill Thasleem, Coordinating Secretary to Minister Kabir Hashim, on 8 March 2019. Thasleem earned the wrath of the extremists as he accompanied the CID team that raided the extremists’ facility at Wanathawilluwa. The 16 January 2019 raid indicated the deadly intentions of the extremists but PM Wickremesinghe was unmoved, while President Sirisena appeared clueless as to what was going on.

Let me reproduce the PCoI assessment of PM Wickremesinghe in the run-up to the Easter Sunday massacre. “Upon consideration of evidence, it is the view of the PCoI that the lax approach of Mr. Wickremesinghe towards Islamic extremists as the Prime Minister was one of the primary reasons for the failure on the part of the then government to take proactive steps towards tackling growing extremism. This facilitated the build-up of Islam extremists to the point of the Easter Sunday attack.” (Final report, Vol 1, pages 276 and 277).

The National Catholic Committee for Justice to Easter Sunday Attack Victims, in its letter dated 12 July, 2021, addressed to President Rajapaksa, questioned the failure on the part of the PCoI to make any specific recommendations as regards Wickremesinghe. Accusing Wickremesinghe of a serious act of irresponsibility and neglect of duty, the Church emphasised that there should have been further investigations regarding the UNP leader’s conduct.

SLPP’s shocking failure

The SLPP never made a serious bid to examine all available information as part of an overall effort to counter accusations. If widely propagated lie that the Easter Sunday massacre had been engineered by Sallay to help Gotabaya Rajapaksa win the 2019 presidential poll is accepted, then not only Sirisena and Wickremesinghe but all law enforcement officers and others mentioned in the PCoI must have contributed to that despicable strategy. It would be interesting to see how the conspirators convinced a group of Muslims to sacrifice their lives to help Sinhala Buddhist hardliner Gotabaya Rajapaksa to become the President.

Amidst claims, counter claims and unsubstantiated propaganda all forgotten that a senior member of the JVP/NPP government, in February 2021, when he was in the Opposition directly claimed Indian involvement. The accusation seems unfair as all know that India alerted Sri Lanka on 4 April , 2019, regarding the conspiracy. However, Asanga Abeygoonasekera, in his latest work ‘Winds of Change’ questioned the conduct of the top Indian defence delegation that was in Colombo exactly two weeks before the Easter Sunday carnage. Abeygoonasekera, who had been a member of the Sri Lanka delegation, expressed suspicions over the visiting delegation’s failure to make reference to the warning given on 4 April 2019 regarding the plot.

The SLPP never had or developed a strategy to counter stepped up attacks. The party was overwhelmed by a spate of accusations meant to undermine them, both in and outside Parliament. The JVP/NPP, in spite of accommodating Mohamed Yusuf Ibrahim, father of two Easter Sunday suicide bombers Ilham Ahmed Ibrahim (Shangila-la) and Imsath Ahmed Ibrahim (Cinnamon Grand), in its 2015 National List was never really targeted by the SLPP. The SLPP never effectively raised the possibility of the wealthy spice trader funding the JVP to receive a National List slot.

The Catholic Church, too, was strangely silent on this particular issue. The issue is whether Mohamed Yusuf Ibrahim had been aware of the conspiracy that involved his sons. Another fact that cannot be ignored is Attorney-at-Law Hejaaz Hizbullah who had been arrested in April 2020 in connection with the Easter Sunday carnage but granted bail in February 2022 had been the Ibrahim family lawyer.

Hejaaz Hizbullah’s arrest received international attention and various interested parties raised the issue.

The father of the two brothers, who detonated suicide bombs, was granted bail in May 2022.

Eric Solheim, who had been involved in the Norwegian-led disastrous peace process here, commented on the Easter Sunday attacks. In spite of the international media naming the suicide bombers responsible for the worst such atrocity Solheim tweeted: “When we watch the horrific pictures from Sri Lanka, it is important to remember that Muslims and Christians are small minorities. Muslims historically were moderate and peaceful. They have been victims of violence in Sri Lanka, not orchestrating it.”

That ill-conceived tweet exposed the mindset of a man who unashamedly pursued a despicable agenda that threatened the country’s unitary status with the connivance of the UNP. Had they succeeded, the LTTE would have emerged as the dominant political-military power in the Northern and Eastern Provinces and a direct threat to the rest of the country.

Continue Reading

Midweek Review

War with Iran and unravelling of the global order – I

Published

on

At present, the world stands in the midst of a transitional and turbulent phase, characterised by heightened uncertainty and systemic flux, reflecting an ongoing transformation of the modern global order. The existing global order, rooted in the US hegemony, shows unmistakable signs of decay, while a new and uncertain global system struggles to be born. In such moments of profound transformation, as Antonio Gramsci observed, morbid symptoms proliferate across the body politic. From a geopolitical perspective, the intensifying coordinated aggression of the United States and Israel against Iran is not merely a regional crisis, but an acceleration of a deeper structural transformation in the international order. In this context, the conduct of Donald Trump appears less as an aberration and more as a morbid symptom of a declining US-led global order. As Amitav Acharya argues in The Once and Future World Order (2025), the emerging global order may well move beyond Western dominance. However, the pathway to that future is proving anything but orderly, shaped instead by disruption, unilateralism, and the unsettling symptoms of a system in transition.

Origins of the Conflict

To begin with, the origins and objectives of the parties to the present armed confrontation require unpacking. In a sense, the current Persian Gulf crisis reflects a convergence of long-standing geopolitical rivalries and evolving security dynamics in the Middle East. The roots of tension between the West and the Middle East can be traced back to earlier historical encounters, from the Persian Wars of classical antiquity to the Crusades of the medieval period. A new phase in the region’s political trajectory commenced in 1948 with the establishment of Israel—widely perceived as a Western enclave within the Arab world—and the concurrent displacement of approximately 700,000 Palestinians from their homeland. Since then, Israel has steadily consolidated and expanded its territory, a process that has remained a persistent source of regional instability. The Iranian Revolution introduced a further layer of complexity, fundamentally reshaping regional alignments and ideological contestations. In recent years, tensions between Israel and the United States on one side and Iran on the other have steadily intensified. The current phase of the conflict, however, was directly triggered by coordinated U.S.–Israeli airstrikes on both civilian and military targets on 28 February 2026, which, as noted in a 2 April 2026 statement by 100 international law experts from leading U.S. universities, constituted a clear violation of the UN Charter and International Humanitarian Law (IHL).

Objectives and Strategic Aims

Israel’s strategic objective appears to be directed toward the systematic and total destruction of Iran’s military, nuclear, and economic capabilities, driven by the perception that Iran remains the principal obstacle to its security and its pursuit of regional primacy. Israel was aware that Iran did not possess a nuclear weapon at the time; however, its nuclear programme remained a subject of international contention, with competing assessments regarding its ultimate intent and potential for weaponisation.

The United States, for its part, appears to be pursuing more targeted political and strategic objectives, including eventual transformation of Iran’s current political regime. Washington has long regarded the Iranian leadership as fundamentally antagonistic to U.S. interests in the Middle East. In this context, the United States may seek to enhance its strategic leverage over Iran, including in relation to its substantial oil and gas resources, a point underscored in recent statements by Donald Trump. It must be noted, however, successive U.S. administrations since 1979 have avoided direct large-scale military confrontation with Iran, preferring instead a combination of sanctions, diplomatic pressure, and indirect military engagement.

The positions of other Arab states in the Persian Gulf are shaped by a combination of security calculations, sectarian considerations, and broader geopolitical alignments. While several Gulf Cooperation Council (GCC) members, notably Saudi Arabia and United Arab Emirates, have expressed tacit support for measures that counter Iranian regional influence, their involvement remains calibrated to avoid direct military confrontation. Their position is informed by the belief that Iran provides backing to militant non-state actors, including Hezbollahs in the West Bank and the Houthis in Southern Yemen, which they view as destabilising forces in the region. These states are balancing competing priorities: the desire to curb Iran’s power projection, maintain strong security and economic ties with the United States, and preserve domestic stability. At the same time, countries such as Oman and Qatar have adopted more neutral or mediating stances, emphasizing diplomatic engagement and conflict de-escalation.

Militarily, Iran is not positioned to match the combined military capabilities of U.S.–Israeli forces. Nevertheless, it retains significant asymmetric leverage, particularly through its capacity to influence global energy flows. Control over critical maritime chokepoints, most notably the Strait of Hormuz, provides Tehran with a potent strategic instrument to disrupt global oil supply. Iranian leadership appears to view this leverage as a key pressure point, designed to compel global economic actors to push Washington and Tel Aviv toward a cessation of hostilities and a negotiated settlement. In this context, attacks on oil and gas infrastructure, shipping routes, and supply lines constitute central components of Iran’s survival strategy. As long as the conflict persists and energy flows through the Strait of Hormuz remain disrupted, the resulting instability is likely to generate severe repercussions across the global economy, increasing pressure on the United States to halt military operations against Iran.

Now entering its fifth week, the conflict continues to flare intensely, characterised by sustained and intensive aerial operations. Joint U.S.–Israeli strikes have reportedly destroyed substantial elements of Iran’s air and naval capabilities, as well as critical military and economic infrastructure. Nevertheless, Iran has retained the capacity to conduct guided missile strikes within Israel and against selected U.S. economic, diplomatic, and military assets across the Middle East, including reported long-range attacks on the U.S. facility at Diego Garcia in the Indian Ocean, approximately 4,000 kilometers from Iranian territory. Initial U.S. and Israeli strategic calculations—anticipating that a decisive initial strike and the targeted killing of Iranian Supreme Leader Ali Khamenei would precipitate regime collapse and popular uprising—have not materialized. On the contrary, the destruction of civilian facilities has strengthened anti-American sentiment and reinforced domestic support for the Iranian leadership. While Iran faced initial setbacks on the battlefield, it has achieved notable success in the international media front, effectively shaping global perceptions and advancing its propaganda objectives. By the fifth week, Tehran’s asymmetric strategy has yielded tangible results, including the downing of two U.S. military aircraft, F15E Strike Eagle fighter jet and A10 Thunderbolt II (“Warthog”) ground-attack aircraft , signaling the resilience and operational efficacy of Iran’s military power.

The Military Industrial Complexes and ProIsrael Lobby

Why did the United States initiate military action against Iran at this particular juncture? Joe Kent, who resigned in protest over the war, stated that available intelligence did not indicate an imminent Iranian capability to produce a nuclear weapon or pose an immediate threat to the United States. This assessment raises important questions about the stated objective of dismantling Iran’s nuclear programme, suggesting that it may have served to obscure broader strategic and economic considerations underpinning the intervention. To understand the timing and rationale of the U.S. intervention in the Persian Gulf, it is therefore necessary to examine the influence of two powerful domestic pressure groups: the military–industrial complex and the pro-Israel lobby.

The influence of the U.S. military–industrial complex on American foreign policy is most clearly manifested through the institutionalized “revolving door” between defense corporations and senior positions within the U.S. administration. Over the past two decades, key figures such as Lloyd Austin (Secretary of Defence, 2021–2025), a former board member of Raytheon Technologies, Mark Esper (Secretary of Defence 2019–2020), who previously served as a senior executive at the same firm, and Patrick Shanahan (2019) from Boeing exemplify the direct movement of personnel from industry into the highest levels of strategic decision-making. This circulation is complemented by influential policy actors such as Michèle Flournoy (Under Secretary of Defence Under President Obama) and Antony Blinken (Secretary of State 2021 to 2025, Deputy Secretary of State 2015 to 2017), whose engagement with consultancies like WestExec Advisors further blurs the boundary between public policy and private defense interests. This pattern appears to persist under the present Trump administration, where the interplay between defense industry interests and strategic policymaking continues to shape procurement priorities and threat perceptions. Consequently, the military–industrial complex operates not merely as an external pressure group but as an internalized component of the policy process, shaping U.S. foreign policy in ways that align strategic objectives with the structural and commercial interests of the defense sector. Armed conflicts may also generate substantial commercial opportunities, as increased military spending often translates into expanded profits for defense contractors.

The influence of the pro-Israel lobby on U.S. foreign policy is best understood as a dense network of advocacy organisations, donors, policy institutes, and political actors that shape both elite consensus and decision-making within successive administrations. At the center of this network is the American Israel Public Affairs Committee, widely regarded as one of the most effective lobbying organisations in Washington, which works alongside a broader constellation of groups and donors to sustain bipartisan support for Israel. This influence is reinforced through the presence of senior policymakers and advisors with strong ideological or institutional affinities toward Israel, including Donald Trump and Benjamin Netanyahu, whose close political alignment has translated into consistent diplomatic and strategic backing. Policy decisions—ranging from the recognition of Jerusalem as Israel’s capital to continued military assistance—reflect not only geopolitical calculations but also the domestic political salience of pro-Israel advocacy within the United States. Consequently, the pro-Israel lobby operates not merely as an external pressure group but as an embedded force within the policy ecosystem, shaping U.S. foreign policy in ways that sustain a strong and often unconditional commitment to Israeli security and strategic interests. A fuller explanation of U.S. policy toward Iran emerges when the influence of both the military–industrial complex and the pro-Israel lobby is considered together. These two forces, while distinct in composition and motivation, converge in reinforcing a strategic outlook that prioritises the identification of Iran as a central threat and legitimizes the use of coercive military instruments.

Global Economic Fallout

After five weeks of sustained conflict, the trajectory of the war suggests that Iran’s strategy of resilience and asymmetric resistance is yielding tangible effects. While the United States, alongside Israel, has inflicted significant damage on Iran’s economic and military infrastructure, it has not succeeded in eroding Tehran’s capacity—or resolve—to continue the conflict through unconventional means. At the same time, Washington appears to be encountering increasing difficulty in bringing the war to a decisive conclusion, even as signs of strain emerge in its relations with key European allies. Most importantly, the repercussions of the conflict are no longer confined to the battlefield: the unfolding crisis has generated a widening economic shock that is reverberating across global markets and supply chains. It is this broader international economic impact of the war that now warrants closer examination.

The Persian Gulf conflict is rapidly sending shockwaves through the global economy. At the forefront is the energy sector: even partial disruptions to oil and gas exports from the region are driving prices sharply higher, placing severe pressure on energy-importing economies in Europe and Asia and fueling inflation worldwide. Maritime trade is also under strain, as heightened risk prompts longer shipping routes, increased freight rates, and rising war-risk premiums. These disruptions ripple through global supply chains, pushing up the cost of goods far beyond the energy sector.

Insurance costs for shipping and aviation are soaring as large zones are designated high-risk or even excluded from coverage, further elevating transport costs and pricing out smaller operators. Together, these pressures constitute a systemic economic shock: industrial production costs rise, supply chains fragment, and trade volumes contract, stressing manufacturing, logistics, and consumption simultaneously.

The cumulative effect is already slowing global growth. Major economies such as the EU, China, and India face slower expansion, while import-dependent states risk recession. Trade-driven sectors are contracting, reinforcing a scenario of high inflation and stagnating growth. Air travel is also impacted, with restricted airspace, higher fuel prices, and elevated insurance premiums driving up ticket costs and lengthening travel routes. Rising energy prices, logistics bottlenecks, and increased production costs are pushing up food prices and cost-of-living pressures, potentially forcing central banks into tighter monetary policy and slowing growth further.

Finally, global manufacturing—from chemicals and plastics to agriculture—is experiencing ripple effects as supply chain disruptions intensify shortages and price increases. The conflict in the Persian Gulf is thus not only a regional security crisis but also a catalyst for broad, interconnected economic disruptions that are reverberating across markets, trade networks, and everyday life worldwide.

(To be continued)

Continue Reading

Midweek Review

MAD comes crashing down

Published

on

The hands faithfully ploughing the soil,

And looking to harvest the golden corn,

Are slowing down with hesitation and doubt,

For they are now being told by the top,

That what nations direly need most,

Are not so much Bread but Guns,

Or better still stealth bombers and drones;

All in the WMD stockpiles awaiting use,

Making thinking people realize with a start:

‘Mutually Assured Destruction’ or MAD,

Is now no longer an arid theory in big books,

But is upon us all here and now.

By Lynn Ockersz

Continue Reading

Trending