Features
Diversifying in new directions – hospitality plantations, broking and health care
(Excerpted from the Merrill J Fernando autobiography)
Sometime in 2003, together with Dilhan and his family, I holidayed in Bali. Indonesia, at Bali Villas, an exclusive hospitality complex. We rented two units which came with a highly-personalized service, including maids and a chef for each villa. We also had our own swimming pools and a common spa facility. Outside the complex there were cafes, restaurants, and little eating houses, offering dazzling arrays of food, which made eating out a daily adventure.
On the morning of the second day, a very tall gentleman walked in to my villa and introduced himself: “Good morning, Mr. Dilmah, I am an Aussie and the owner of this hotel.” Over a cup of tea, he told me his story. He had first visited Sri Lanka looking for both a location and a partner to launch this special hospitality concept he had in mind. Whilst he had been happy with the opportunities, he had not been able to find a suitable partner, nor had he been very comfortable with the political climate. Abandoning Sri Lanka for those reasons, eventually be had located this special project in Bali.
After an interesting conversation with me, he called his CEO, Chris Green, an Englishman, and told him to give us anything we wanted and Chris offered us a 60% discount on all the spa treatments. In the course of our friendly discussion with Chris which followed, I told him that I was interested in setting up a similar project in Sri Lanka and asked for his advice.
One week later Chris was in Sri Lanka and Malik was taking him around, visiting potential locations in the plantation regions. The tourist industry has always attracted me, in view of the tremendous potential that Sri Lanka possesses and the fact that it is an industry that Sri Lanka can own totally. The raw material is the composites of our unparalleled natural beauty, the easily accessible game parks, the cultural and historical heritage seen in our many ancient cities like Polonnaruwa, Anuradhapura, and Sigiriya, and the natural friendliness and spontaneous, welcoming hospitality of our people. These charming inborn attributes cannot be supplanted by imports!
Ceylon Tea Trails
Our upcountry plantation areas are amongst the most scenic in the country, with the emerald green cover of tea carpeting an undulating landscape, broken up by spectacular rock escarpments and mountains blanketed by montane forest, heavily-wooded ravines in the valleys, and the whole crisscrossed by tumbling streams and cascading waterfalls.
There are also the historic plantation bungalows, rambling and comfortable, often somewhat neglected but set in large gardens and, invariably, panoramically sited. The British who first built them had, collectively, an unerring instinct for commanding locations, obviously conditioned by the ‘monarch of all I survey’ worldview of the Western coloniser.

The Cape — A peerless location View from the pool — all the way to the South Pole Tranquility at dusk Old fashioned comfort in a modern setting
Following the preliminary tour with Chris, Malik engaged Miguel, a young Spaniard, who toured the plantation regions on a motorcycle and identified four bungalows with the best combination of scenery, attractive bungalow configuration, and accessibility: the Tientsin, Norwood, Summerville, and Castlereagh bungalows, all located in close proximity to each other in the Bogawanthalawa-Norwood area, were finally selected for the project.
The proximity of the picturesque Castlereagh Reservoir, nestled in the basin created by the surrounding tea-covered hills, was one of the key selling points. Later, Dunkeld bungalow, sited on the Western banks of the reservoir and located on our own estate, was restored and added to the list, when the demand for accommodation rapidly overtook capacity.
A South African interior designer was selected to reconfigure and refurbish all the bungalows. This was a delicately-managed operation, as the prime consideration was to maintain the original, old world charm of the bungalows, whilst unobtrusively introducing all the modern amenities and conveniences expected by a discerning clientele, accustomed to and prepared to pay for luxurious but unique hostelry in exclusive locations. The new had to merge seamlessly with the old, as if the offering in its entirety had been there always, handed down intact across generations by the original British owners.
The features of comfort and attraction needed to be tangible, quantifiable, and visible, while the designer’s hand remained invisible. There were no invoices submitted to the guest on departure. The customer was made to feel that he/she was holidaying in the home of a wealthy, generous, and caring friend. It was a personalized service where guests discussed dining choices for each meal with an own chef, whilst the in-house butlers’ service was at hand, at any time of the day or night, to attend to every guest need or fancy. What was on offer was a fully-inclusive concept, which anticipated and provided everything that the guest needed and desired.
Thus, with the opening of the first bungalow, Castlereagh, in June 2005, ‘Ceylon Tea Trails’ was born and, simultaneously, Malik came in to his own as an entrepreneur. Tea Trails projected the now somewhat-hackneyed boutique hotel concept into a new dimension, previously unknown to Sri Lanka. The bungalows were between two to 15 kilometres apart and guests could walk or cycle between them, and be served meals in any one of them, as if they had visited the house of a close friend. Each bungalow had four to five bedrooms and suites and a total of 27 rooms, in locations in the tea-covered hills encircling the Castlereagh Reservoir.
Many of the vegetables, herbs, and spices featured in the wide-ranging and exquisite cuisine on offer at the bungalows are grown organically in the bungalow gardens themselves. The preparation is personally handled by experienced chefs with international training.
Tea Trails soon became a high-demand holiday destination, fully booked most of the time and I frequently had great difficulty in securing a room when I wanted one. Most bookings were repeats and made a year ahead! Finally, Malik developed a nice little cottage on Dunkeld, designated as the ‘Owner’s Cottage,’ for my personal use, supposedly at my will and pleasure.
Once it was done I asked him to hand the keys over to me, but I was not very surprised when Malik apologetically responded that I would have to be little patient as it had been booked till the end of August that year! Though it has been over two years since it was completed, I have been able to occupy it with friends only once.
On account of its exclusivity, exceptional quality of service and cuisine, and guests’ recommendations, Tea Trails was invited to join the prestigious Paris-based Relais & Chateaux Association, known for its uncompromisingly rigid admission standards. Since the 65 years of its founding in France, it has permitted only 580 landmark hotels and restaurants worldwide to enter its elite membership.
Since then the two other resorts in our group which followed, Tea Trails, Cape Weligama in Weligama and Wild Coast Tented Lodge, deeper south in Yala, have been admitted to Relais & Chateaux to date the only three members in Sri Lanka.
Cape Weligama
A few years ago, Malik persuaded me to buy a beautiful hilltop property near the beach in Weligama, overlooking the Indian Ocean east of Galle. My original intention was to resell it to a hotel developer, but Malik had other ideas and convinced me that the location was ideal for an exclusive, boutique-type hotel. He hired a well-known architect, Lek Bunnag from Thailand, who produced an exceptional design.
Along with Malik I visited Bangkok to review the plans and was very impressed by them. The construction then commenced and on completion, much to my serious displeasure, the final cost had far exceeded the initial budget.
Malik’s explanation was that this was the first hotel we built from ground-up and that it was also a learning experience for us! Further, in the process of construction, many new features had to be introduced to complement the degree of exclusivity and uniqueness that we were striving for. It opened in 2014 with 39 suites and villas, the latter starting at around 130 square metres in extent.
Wild Coast Lodge
With two exclusive and successful tourist destinations in our portfolio, and a little more experience in the hospitality trade under our belts, we decided to expand further in that direction and commenced work on a seven-acre, heavily-wooded site, near the Yala National Park. The land, between the beach and the jungle and comprising a contiguous segment of the real jungle, lent itself ideally to the concept we had in mind for a tented, but luxurious resort.
It is an arresting fusion of two extremes, the wildness and the potential danger of the proximal animal inhabited scrub forest, as a counterpoint to the understated indulgence of every modern comfort and convenience within. The bamboo and tented resort blended seamlessly with the surrounding forest and opened for business in 2017. It has since has won several global awards, including a UNESCO award for uniqueness of design.
Resplendent Ceylon
With these three destinations, Malik has very successfully captured the contrasting aspects of the beauty of different parts of our country, and the scenic diversity it has to offer the traveler. “Resplendent Ceylon,” as he calls this varied collection the gentle, quaint charm of our verdant plantation country, with its cool climate and orderly tea cultivation, the warm, balmy beach land of the south, and the harsh, arid beauty of the south east epitomizes the multi-faceted, natural splendour of our country. The only commonality between these destinations, with such contrasting features of attractiveness, is the matchless service they offer. Given these attributes, it is fair to say that Resplendent Ceylon is the pioneering small luxury hotel brand in Sri Lanka.
Acquisition of Forbes and Walker and Kahawatte Plantations
Elsewhere in this writing I have several times referred to my resolve to eventually become independent of external assistance for critical aspects of my business operation. In this age of enterprise complexity, admittedly, it is difficult for any operation, however efficient it may be, to be totally self-sufficient. Independent providers of ancillary services and products do play an important part in any large business operation. Generally, obtaining the services of independent contractors to complement the less-crucial aspects of your operation makes sound commercial sense.
However, in regard to my tea export business, the mainstay of my group enterprise, I was determined that I would become totally self-reliant, with direct ownership and control of the value chain, ‘from-bush-to-cup’ as it were. It was that intent which earlier led to my investing in Printcare. I did not put a label on my purpose, but business management experts identify it as the principle of ‘vertical integration’.
I decided that the first step in the above direction would be to acquire control of a tea broking company. Broking has been an important corollary activity of the plantation industry, growing from a purely marketing service in its infancy in the last quarter of the 19th century, to its present multi-faceted role as provider of warehousing, finance, technical advisory, and other related services.
Sometime in early 2000 I became aware that the owners of Forbes Ceylon Limited (FCL), VANIK Incorporated a now largely-inactive private investment bank were seriously considering the sale of Forbes & Walker (F&W), including its produce broking arm, Forbes Tea Brokers, a very reliable and well-established broking firm with a long history. As a tea buyer and exporter for over five decades up to that time, I was very familiar with the company and, over the years, had got to know all its key personnel from the early 1950s onwards.
However, one condition attached by VANIK to the sale of Forbes was that Forbes Plantations, through which it owned Kahawatte Plantations Plc, a Regional Plantation Company, should also be disposed of at the same time. The intention of VANIK was to exit from the tea industry altogether. The purchase of Kahawatte Plantations, then owned by FCL, had to be part of the transaction. One could not happen without the other.
Whilst I was discussing the possible sale of Forbes Brokers with VANIK, the latter were in negotiation with another party, Central Highfields Ceylon (Pvt) Ltd. (CHFC) incorporated in the UK, with its Sri Lankan interests represented by Nimal Silva, a former planter, for the sale of Kahawatte Plantations. An agreement had been signed between VANIK, CHFC, and FCL, with CHFC paying an advance of Rs. 100 million against an agreed price of Rs. 200 million, for the purchase of a majority shareholding of Kahawatte, through Forbes Plantations.
Since CHFC was unable to deliver the balance Rs. 100 million on the due date, it agreed to VANIK borrowing the sum from my company. I agreed to the proposal, because I wanted to assist CHFC in its purchase of Kahawatte, thus ensuring that I would be able to purchase Forbes Brokers, thereby meeting VANIK’s condition of an exit from the tea industry altogether. As security against the loan, VANIK furnished my company with a primary mortgage over the Kahawatte shares held by Forbes Plantations.

Luxury inside a tent The forest outside and the indulgence within — a matchless union. Unique design
It had not been my original intention to buy the plantation company as, at that time, my company already had sizeable holdings in both Elpitiya and Talawakelle Plantations. Therefore, a produce broking company was the only missing link in the vertical integration value chain.
I gave CHFC more than one extension on the deadline for the settlement of the advance. In fact, even after I had served VANIK with notice to transfer the Kahawatte shareholding in lieu of settlement of the loan. I gave additional time to CHFC to settle the issue. However, it was unable to secure funding and by end of 2000, both Forbes & Walker and Kahawatte Plantations had become part of the MJF Group of Companies.
The main reason for my decision to exercise my right to the Kahawatte shareholding, was that the uncertainty surrounding the ownership transfer was soon reflected in management inadequacies,which were visibly affecting the company’s performance. Further delays in the finalization of the transaction would only have accelerated its decline.
When I acquired Kahawatte, it was in dire financial straits, with large accumulated losses and substantial liabilities, a significant proportion of the latter represented by unpaid statutory dues. Those
were settled soon after the acquisition. Subsequently, a comprehensive factory rehabilitation, in parallel with a product quality policy drive, resulted in the company achieving the highest annual net sale average for in the Regional Plantation Company sector.
It has maintained this position for several years. Apart from the capital intensive consolidation of core crops, involving extensive replanting of both tea and rubber, we also launched a major crop diversification initiative, cultivating Ceylon Cinnamon in the low-country sector. Presently, Kahawatte has over 200 Ha in mature cinnamon, making it the largest single owner of cinnamon in the country.
Since its acquisition, the investment in shares and the value of corporate guarantees extended to Kahawatte by MJF Holdings and its subsidiaries together exceed Rs. 3 billion. As for Forbes & Walker, it was my firm belief that as a broker, F&W should remain independent, despite being part of the main group. That could be achieved only if the management also had a stake in the company, with the company itself being operated as a Joint Venture. Consequently, I caused a management trust to be created, which held 30% of the F&W shareholding on behalf of the management of the broking company. It proved to be a sound principle and has continued to operate efficiently to the present day.
The health sector
My friend, the late Lawrence Tudawe, who built my Maligawatte office and packing complex, had, at some point in time, purchased Durdans Hospital. It had been founded in 1939 and in the colonial period, was the primary military hospital in then Ceylon, mostly serving the British Armed Forces then stationed in the country. In 1945 it was acquired by a group of doctors and managed as Ceylon Hospitals Limited, before being bought by the Tudawe family.
The younger Tudawes , Ajit, Rohan, and Upul have since developed it to its present position as one of the finest private healthcare centres in the country. A few years ago, I was persuaded by the Tudawe family to invest in the company and I acquired a reasonable shareholding in Ceylon Hospitals, which owns and operates Durdans Hospital. Subsequently I made a further investment in the more modern entity, Durdans Medical and Surgical Hospitals (Pvt) Ltd. I consider it a very useful investment, not only on account of the financial returns but also because of the excellent healthcare service it provides the public, which also includes the employees of my group of companies.
Features
The NPP Government is more than a JVP offspring:
It is also different from all past governments as it faces new and different challenges
No one knows whether the already broken ceasefire between the US and Iran, with Israel as a reluctant adjunct, will last the full 10 days, or what will come thereafter. The world’s economic woes are not over and the markets are yo-yoing in response to Trump’s twitches and Iran’s gate keeping at the Strait of Hormuz. The gloomy expert foretelling is that full economic normalcy will not return until the year is over even if the war were to end with the ceasefire. That means continuing challenges for Sri Lanka and more of the tough learning in the art of governing for the NPP.
The NPP government has been doing what most governments in Asia have been doing to cope with the current global crisis, which is also an Asian crisis insofar as oil supplies and other supply chains are concerned. What the government can and must do additionally is to be totally candid with the people and keep them informed of everything that it is doing – from monitoring import prices to the timely arranging of supplies, all the details of tender, the tracking of arrivals, and keeping the distribution flow through the market without bottlenecks. That way the government can eliminate upstream tender rackets and downstream hoarding swindles. People do not expect miracles from their government, only honest, sincere and serious effort in difficult circumstances. Backed up by clear communication and constant public engagement.
But nothing is going to stop the flow of criticisms against the NPP government. That is a fact of Sri Lankan politics. Even though the opposition forces are weak and have little traction and even less credibility, there has not been any drought in the criticisms levelled against the still fledgling government. These criticisms can be categorized as ideological, institutional and oppositional criticisms, with each category having its own constituency and/or commentators. The three categories invariably overlap and there are instances of criticisms that excite only the pundits but have no political resonance.
April 5 anniversary nostalgia
There is also a new line of criticism that might be inspired by the April 5 anniversary nostalgia for the 1971 JVP insurrection. This new line traces the NPP government to the distant roots of the JVP – its April 1965 founding “in a working-class home in Akmeemana, Galle” by a 22-year old Rohana Wijeweera and seven others; the short lived 1971 insurrection that was easily defeated; and the much longer and more devastating second (1987 to 1989) insurrection that led to the elimination of the JVP’s frontline leaders including Wijeweera, and brought about a change in the JVP’s political direction with commitment to parliamentary democracy. So far, so good, as history goes.
But where the nostalgic narrative starts to bend is in attempting a straight line connection from the 1965 Akmeemana origins of the JVP to the national electoral victories of the NPP in 2024. And the bend gets broken in trying to bridge the gap between the “founding anti-imperialist economics” of the JVP and the practical imperatives of the NPP government in “governing a debt-laden small open economy.” Yet this line of criticism differs from the other lines of criticism that I have alluded to, but more so for its moral purpose than for its analytical clarity. The search for clarity could begin with question – why is the NPP government more than a JVP offspring? The answer is not so simple, but it is also not too complicated.
For starters, the JVP was a political response to the national and global conditions of the 1960s and 1970s, piggybacking socialism on the bandwagon of ethno-nationalism in a bi-polar world that was ideologically split between status quo capitalism and the alternative of socialism. The NPP government, on the other hand, is not only a response to, but is also a product of the conditions of the 2010s and 2020s. The twain cannot be more different. Nothing is the same between then and now, locally and globally.
A pragmatic way to look at the differences between the origins of the JVP and the circumstances of the NPP government is to look at the very range of criticisms that are levelled against the NPP government. What I categorize as ideological criticisms include criticisms of the government’s pro-IMF and allegedly neo-liberal economic policies, as well as the government’s foreign policy stances – on Israel, on the current US-Israel war against Iran, the geopolitics of the Indian Ocean, and the apparent closeness to the Modi government in India. These criticisms emanate from the non-JVP left and Sinhala Buddhist nationalists.
Strands of nationalism
To digress briefly, there are several strands in the overall bundle of Sri Lankan nationalism. There is the liberal inclusive strand, the left-progressive strand, the exclusive Sinhala Buddhist Nationalist (SBN) strand, and the defensive strands of minority nationalisms. Given Sri Lanka’s historical political formations and alliances, much overlapping goes on between the different strands. The overlapping gets selective on an issue by issue basis, which in itself is not unwelcome insofar as it promotes plurality in place of exclusivity.
Historically as well, and certainly after 1956, the SBN strand has been the dominant strand of nationalism in Sri Lanka and has had the most influential say in every government until now. Past versions of the JVP frequently straddled the dominant SBN space. Currently, however, the dominant SBN strand is in one of its more dormant phases and the NPP government could be a reason for the current dormancy. This is an obvious difference between the old JVP and the new NPP.
A second set of criticisms, or institutional criticisms, emanate from political liberals and human rights activists and these are about the NPP government’s actions or non-actions in regard to constitutional changes, the future of the elected executive presidency, the status of provincial devolution and the timing of provincial council elections, progress on human rights issues, the resolution of unfinished postwar businesses including the amnesia over mass graves. These criticisms and the issues they represent are also in varying ways the primary concerns of the island’s Tamils, Muslims and the Malaiyaka (planntationn) Tamils. As with the overlapping between the left and the non-minority nationalists, there is also overlapping between the liberal activists and minority representatives.
A third category includes what might be called oppositional criticisms and they counterpose the JVP’s past against the NPP’s present, call into question the JVP’s commitment to multi-party democracy and raise alarms about a creeping constitutional dictatorship. This category also includes criticisms of the NPP government’s lack of governmental experience and competence; alleged instances of abuse of power, mismanagement and even corruption; alleged harassment of past politicians; and the failure to find the alleged mastermind behind the 2019 Easter bombings. At a policy and implementational level, there have been criticisms of the government’s educational reforms and electricity reforms, the responses to cyclone Ditwah, and the current global oil and economic crises. The purveyors of oppositional criticisms are drawn from the general political class which includes political parties, current and past parliamentarians, as well as media pundits.
Criticisms as expectations
What is common to all three categories of criticisms is that they collectively represent what were understood to be promises by the NPP before the elections, and have become expectations of the NPP government after the elections. It is the range and nature of these criticisms and the corresponding expectations that make the NPP government a lot more than a mere JVP offspring, and significantly differentiate it from every previous government.
The deliverables that are expected of the NPP government were never a part of the vocabulary of the original JVP platform and programs. The very mode of parliamentary politics was ideologically anathema to the JVP of Akmeemana. And there was no mention of or concern for minority rights, or constitutional reforms. On foreign policy, it was all India phobia without Anglo mania – a halfway variation of Sri Lanka’s mainstream foreign policy of Anglo mania and India phobia. For a party of the rural proletariat, the JVP was virulently opposed to the plantation proletariat. The JVP’s version of anti-imperialist economics would hardly have excited the Sri Lankan electorate at any time, and certainly not at the present time.
At the same time, the NPP government is also the only government that has genealogical antecedents to a political movement or organization like the JVP. That in itself makes the NPP government unique among Sri Lanka’s other governments. The formation of the NPP is the culmination of the evolution of the JVP that began after the second insurrection with the shedding of political violence, acceptance of political plurality and commitment to electoral democracy.
But the evolution was not entirely a process of internal transformation. It was also a response to a rapidly and radically changing circumstances both within Sri Lanka and beyond. This evolution has not been a rejection of the founding socialist purposes of the JVP in 1968, but their adaptation in the endless political search, under constantly changing conditions, for a non-violent, socialist and democratic framework that would facilitate the full development of the human potential of all Sri Lankans.
The burden of expectations is unmistakable, but what is also remarkable is their comprehensiveness and the NPP’s formal commitment to all of them at the same time. No previous government shouldered such an extensive burden or showed such a willing commitment to each and every one of the expectations. In the brewing global economic crisis, the criticisms, expectations and the priorities of the government will invariably be focussed on keeping the economy alive and alleviating the day-to-day difficulties of millions of Sri Lankan families. While what the NPP government can and must do may not differ much from what other Asian governments – from Pakistan to Vietnam – are doing, it could and should do better than what any and all past Sri Lankan governments did when facing economic challenges.
by Rajan Philips
Features
A Fragile Ceasefire: Pakistan’s Glory and Israel’s Sabotage
After threatening to annihilate one of the planet’s oldest civilizations, TACO* Trump chickened out again by grasping the ceasefire lifeline that Pakistan had assiduously prepared. Trump needed the ceasefire badly to stem the mounting opposition to the war in America. Israeli Prime Minister Netanyahu wanted the war to continue because he needed it badly for his political survival. So, he contrived a fiction and convinced Trump that Lebanon is not included in the ceasefire. Trump as usual may not have noticed that Pakistan’s Prime Minister Shehbaz Shariff had clearly indicated Lebanon’s inclusion in his announcement of the ceasefire at 7:50 PM, Tuesday, on X. Ten minutes before Donald Trump’s fake deadline.
True to form on Wednesday, Israel unleashed the heaviest assault by far on Lebanon, reportedly killing over 300 people, the highest single-day death toll in the current war. Iran responded by re-closing the Strait of Hormuz and questioning the need for talks in Islamabad over the weekend. There were other incidents as well, with an oil refinery attacked in Iran, and Iranian drones and missiles slamming oil and gas infrastructure in UAE, Saudi Arabia, Bahrain and Qatar.
The US tried to insist that Lebanon is not part of the ceasefire, with the argumentative US Vice President JD Vance, who was in Budapest, Hungary, campaigning for Viktor Orban, calling the whole thing a matter of “bad faith negotiation” as well as “legitimate misunderstanding” on the part of Iran, and warning Iran that “it would be dumb to jeopardise its ceasefire with Washington over Israel’s attacks in Lebanon.”
But as the attack in Lebanon drew international condemnation – from Pope Leo to UN Secretary General António Guterres, and several world leaders, and amidst fears of Lebanon becoming another Gaza with 1,500 people including 130 children killed and more than a million people displaced, Washington got Israel to stop its “lawn mowing” in southern Lebanon.
Prime Minister Benjamin Netanyahu agreed to “open direct negotiations with Lebanon as soon as possible,”. Lebanese President Joeseph Aoun has also called for “a ceasefire between Israel and Lebanon, followed by direct negotiations between them.” Israel’s involvement in Lebanon remains a wild card that threatens the ceasefire and could scuttle the talks between the US and Iran scheduled for Saturday in Islamabad.
Losers and Winners
After the ceasefire, both the Trump Administration and Iran have claimed total victories while the Israeli government wants the war to continue. The truth is that after more than a month into nonstop bombing of Iran, America and Israel have won nothing. Only Iran has won something it did not have when Trump and Netanyahu started their war. Iran now has not only a say over but control of the Strait of Hormuz. The ceasefire acknowledges this. Both Trump and Netanyahu are under fire in their respective countries and have no allies in the world except one another.
The real diplomatic winner is Pakistan. Salman Rushdie’s palimpsest-country has emerged as a key player in global politics and an influential mediator in a volatile region. Pakistan’s Prime Minister Shehbaz Sharif and Chief of Defence Field Marshal Asim Munir have both been praised by President Trump and credited for achieving the current ceasefire. The Iranian regime has also been effusive in its praise of Pakistan’s efforts.
It is Pakistan that persisted with the effort after initial attempts at backdoor diplomacy by Egypt, Pakistan and Türkiye started floundering. Sharing a 900 km border and deep cultural history with Iran, and having a skirmish of its own on the eastern front with Afghanistan, Pakistan has all the reason to contain and potentially resolve the current conflict in Iran. Although a majority Sunni Muslim country, Pakistan is home to the second largest Shia Muslim population after Iran, and is the easterly terminus of the Shia Arc that stretches from Lebanon. The country also has a mutual defense pact with Saudi Arabia that includes Pakistan’s nuclear cover for the Kingdom. An open conflict between Iran and Saudi Arabia would have put Pakistan in a dangerously awkward position.
It is now known and Trump has acknowledged that China had a hand in helping Iran get to the diplomatic table. Pakistan used its connections well to get Chinese diplomatic reinforcement. Pakistani Foreign Minister Ishaq Dar flew to Beijing to brief his Chinese counterpart and secured China’s public support for the diplomatic efforts. The visit produced a Five-Point Plan that became a sequel to America’s 15-point proposal and the eventual ten-point offer by Iran.
There is no consensus between parties as to which points are where and who is agreeing to what. The chaos is par for the course the way Donald Trumps conducts global affairs. So, all kudos to Pakistan for quietly persisting with old school toing and froing and producing a semblance of an agreement on a tweet without a parchment.
It is also noteworthy that Israel has been excluded from all the diplomatic efforts so far. And it is remarkable, but should not be surprising, the way Trump has sidelined Isreal from the talks. Prime Minister Netanyahu has been enjoying overwhelming support of Israelis for starting the war of his life against Iran and getting the US to spearhead it. But now the country is getting confused and is exposed to Iranian missiles and drones far more than ever before. The Israeli opposition is finally coming alive realizing what little has Netanyahu’s wars have achieved and at what cost. Israel has alienated a majority of Americans and has no ally anywhere else.
It will be a busy Saturday in Islamabad, where the US and Iranian delegations are set to meet. Iran would seem to have insisted and secured the assurance that the US delegation will be led by Vice President Vance, while including Trump’s personal diplomats – Steve Witkoff and son-in-law Jared Kushner. Iran has not announced its team but it is expected to be led, for protocol parity, by Iran’s Speaker Mohammad Bagher Ghalibaf, and will likely include its suave Foreign Minister Abbas Araghchi. Vice President Vance’s attendance will be the most senior US engagement with Iran since Secretary of State John Kerry negotiated the 2015 nuclear deal under President Obama.
The physical arrangements for the talks are still not public although Islamabad has been turned into a security fortress given the stakes and risks involved. The talks are expected to be ‘indirect’, with the two delegations in separate rooms and Pakistani officials shuttling between them. The status of Iran’s enriched uranium and the reopening of the Strait of Hormuz will be the major points of contention. After Netanyahu’s overreach on Wednesday, Lebanon is also on the short list
The 2015 nuclear deal (the Joint Comprehensive Action Plan) took months of negotiations and involved multiple parties besides the US and Iran, including China, France, Germany, UK, Russia and the EU. That served the cause of regional and world peace well until Trump tore up the deal to spite Obama. It would be too much to expect anything similar after a weekend encounter in Islamabad. But if the talks could lead to at least a permanent ceasefire and the return to diplomacy that would be a huge achievement.
(*As of 2025–2026, Donald Trump is nicknamed “TACO Trump” by Wall Street traders and investors as an acronym for “”. This term highlights a perceived pattern of him making strong tariff threats that cause market panic, only to later retreat or weaken them, causing a rebound.)
by Rajan Philips
Features
CIA’s hidden weapon in Iran
We are passing through the ten-day interregnum called a ceasefire over the War on Iran. The world may breathe briefly, but this pause is not reassurance—it is a deliberate interlude, a vacuum in which every actor positions for the next escalation. Iran is far from secure. Behind the veneer of calm, external powers and local forces are preparing, arming, and coordinating. The United States is unlikely to deploy conventional ground troops; the next moves will be executed through proxies whose behaviour will defy expectation. These insurgents are shaped, guided, and amplified by intelligence and technology, capable of moving silently, striking precisely, and vanishing before retaliation. The ceasefire is not peace—it is the prelude to disruption.
The Kurds, historically instruments of Tehran against Baghdad, are now vectors for the next insurgency inside Iran. This movement is neither organic nor local. It is externally orchestrated, with the CIA as the principal architect. History provides the blueprint: under Mohammad-Reza Shah Pahlavi, Kurdish uprisings were manipulated, never supported out of sympathy. They were instruments of leverage against Iraq, a way to weaken a rival while projecting influence beyond Iran’s borders. Colonel Isa Pejman, Iranian military intelligence officer who played a role in Kurdish affairs, recalled proposing support for a military insurgency in Iraq, only for the Shah to respond coldly: “[Mustafa] Barzani killed my Army soldiers… please forget it. The zeitgeist and regional context have been completely transformed.” The Kurds were pawns, but pawns with strategic weight. Pejman later noted: “When the Shah wrote on the back of the letter ‘Accepted’ to General Pakravan, I felt I was the true leader of the Kurdish movement.” The seeds planted then are now being activated under new, technologically empowered auspices.
Iran’s geographic vulnerabilities make this possible. The Shah understood the trap: a vast territory with porous borders, squeezed by Soviet pressure from the north and radical Arab states from the west. “We are in a really terrible situation since Moscow’s twin pincers coming down through Kabul and Baghdad surround us,” he warned Asadollah Alam. From Soviet support for the Mahabad Republic to Barzani’s dream of a unified Kurdistan, Tehran knew an autonomous Kurdish bloc could destabilize both Iraq and Iran. “Since the formation of the Soviet-backed Mahabad Republic, the Shah had been considerably worried about the Kurdish threat,” a US assessment concluded.
Today, the Kurds’ significance is operational, not symbolic. The CIA’s recent rescue of a downed F-15 airman using Ghost Murmur, a quantum magnetometry system, demonstrated the reach of technology in intelligence operations. The airman survived two days on Iranian soil before extraction. This was not a simple rescue; it was proof that highly mobile, technologically augmented operations can penetrate Iranian territory with surgical precision. The same logic applies to insurgency preparation: when individuals can be tracked through electromagnetic signatures, AI-enhanced surveillance, and drones, proxy forces can be armed, guided, and coordinated with unprecedented efficiency. The Kurds are no longer pawns—they are a living network capable of fracturing Iranian cohesion while providing deniability to foreign powers.
Iran’s engagement with Iraqi Kurds was always containment, not empowerment. The Shah’s goal was never Kurdish independence. “We do not approve an independent [Iraqi] Kurdistan,” he stated explicitly. Yet their utility as instruments of regional strategy was undeniable. The CIA’s revival of these networks continues a long-standing pattern: insurgent groups integrated into the wider calculus of international power. Israel, Iran, and the Kurds formed a triangular strategic relationship that terrified Baghdad. “For Baghdad, an Iranian-Israeli-Kurdish triangular alliance was an existential threat,” contemporary reports noted. This is the template for modern manipulation: a networked insurgency, externally supported, capable of destabilizing regimes from within while giving foreign powers plausible deniability.
Iran today faces fragility. Years of sanctions, repression, and targeted strikes have weakened educational and scientific hubs; Sharif University in Tehran, one of the country’s leading scientific centres, was bombed. Leaders, scholars, and innovators have been eliminated. Military readiness is compromised. Generations-long setbacks leave Iran exposed. Against this backdrop, a Kurdish insurgency armed with drones, AI-supported surveillance, and precision munitions could do more than disrupt—it could fracture the state internally. The current ten-day ceasefire is a mirage; the next wave of revolt is already being orchestrated.
CIA involvement is deliberate. Operations are coordinated with allied intelligence agencies, leveraging Kurdish grievances, mobility, and ethnolinguistic networks. The Kurds’ spread across Iran, Iraq, Turkey, and Syria provides operational depth—allowing insurgents to strike, vanish, and regroup with impunity. Barzani understood leverage decades ago: “We could be useful to the United States… Look at our strategic location on the flank of any possible Soviet advance into the Middle East.” Today, the calculation is inverted: Kurds are no longer instruments against Baghdad; they are potential disruptors inside Tehran itself.
Technology is central. Ghost Murmur’s ability to detect a single heartbeat remotely exemplifies how intelligence can underpin insurgent networks. Drones, satellite communications, AI predictive modeling, and battlefield sensors create an infrastructure that can transform a dispersed Kurdish insurgency into a high-precision operation. Iran can no longer rely on fortifications or loyalty alone; the external environment has been recalibrated by technology.
History provides the roadmap. The Shah’s betrayal of Barzani after the 1975 Algiers Agreement demonstrated that external actors can manipulate both Iranian ambitions and Kurdish loyalties. “The Shah sold out the Kurds,” Yitzhak Rabin told Kissinger. “We could not station our troops there and keep fighting forever,” the Shah explained to Alam. The Kurds are a pivot, not a cause. Networks once acting under Tehran’s influence are now being repurposed against it.
The insurgency exploits societal fissures. Kurdish discontent in Iran, suppressed for decades, provides fertile ground. Historical betrayal fuels modern narratives: “Barzani claimed that ‘Isa Pejman sold us out to the Shah and the Shah sold us out to the US.’” Intelligence agencies weaponize these grievances, pairing them with training, technological augmentation, and covert support.
Geopolitically, the stakes are immense. The Shah’s defensive-offensive doctrine projected Iranian influence outward to neutralize threats. Today, the logic is inverted: the same networks used to contain Iraq are being readied to contain Iran. A technologically augmented Kurdish insurgency, covertly backed, could achieve in months what decades of sanctions, diplomacy, or repression have failed to accomplish.
The operation will be asymmetric, high-tech, and dispersed. UAVs, quantum-enhanced surveillance, encrypted communications, and AI-directed logistics will dominate. Conventional Iranian forces are vulnerable to this type of warfare. As Pejman reflected decades ago, “Our Army was fighting there, rather than the Kurds who were harshly defeated… How could we keep such a place?” Today, the challenge is magnified by intelligence superiority on the insurgents’ side.
This is not a temporary flare-up. The CIA and its allies are constructing a generational network of influence. Experience from Iraq, Syria, and Lebanon proves these networks endure once operationalised. The Shah recognized this: “Iran’s non-state foreign policy under the Shah’s reign left a lasting legacy for the post-Revolution era.” Today, those instruments are being remade as vectors of foreign influence inside Iran.
The future is stark. Iran faces not simply external threats, but a carefully engineered insurgency exploiting historical grievances, technological superiority, and precise intelligence. The Kurds are central. History, technology, and geopolitical calculation converge to create a transformative threat. Tehran’s miscalculations, betrayals, and suppressed grievances now form the lattice for this insurgency. The Kurds are positioned not just as an ethnic minority, but as a vector of international strategy—Tehran may be powerless to stop it.
Iran’s containment strategies have been weaponized, fused with technology, and inverted against it. The ghosts of Barzani’s Peshmerga, the shadows of Algiers, and the Shah’s strategic vision now converge with Ghost Murmur, drones, and AI. Tehran faces a paradox: the instruments it once controlled are now calibrated to undermine its authority. The next Kurdish revolt will not only fight in the mountains but in the electromagnetic shadows where intelligence operates, consequences are lethal, and visibility is scarce.
by Nilantha Ilangamuwa
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