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Don’t let elections distract from stabilization warns Indrajit Coomaraswamy
By HIMAL KOTELAWALA
ECONOMYNEXT – If Sri Lanka allows elections to distract from the path of recovery, stabilization and growth, the country will be hit by a fresh crisis far worse than any before, former central bank governor Indrajit Coomaraswamy said.
Speaking at a forum organized by Cal, a Colombo-based investment banking group, Coomaraswamy said on Tuesday (Sept. 5) that Sri Lanka’s election calendar has historically resulted in the reversal of progress made under the 16 International Monetary Fund (IMF) programs that SL had undertaken until the latest extended fund facility (EFF).
“Every single time there has been an election, Sri Lanka’s macroeconomic policies have become indisciplined. We’ve had 16 IMF programs before the current one. On many of them we did make progress in stabilization as we have done on this one. But as soon as an election approached, the progress that was made was reversed,” Coomaraswamy said.
“We’re supposed to be having elections next year. I hope we don’t have the same thing again. We must not allow the gains that we have made to be reversed through policy slippage.”
Critics of President Ranil Wickremesinghe and his administration have been demanding elections, but political analysts say there is no likelihood of a major election until the presidential polls due in November 2024.
Noting that Sri Lanka has never done well on structural reforms due to lack of political will in the face of the “losers’” being louder despite being fewer in number, Coomaraswamy said such reforms should now be pursued vigorously.
“Unless we do differently this time, we will not be able to get into a sustained recovery,” he said.
“This time around, if we allow elections to distract us from the path of stabilization and recovery and then sustained growth, the crisis that will hit us will be worse than anything that we’ve had in the past. It will be worse than what we had some 18 months ago. We should remember that.”
The former central bank chief called for a mould where economics is not seriously undermined by the electoral calendar.
“That has to change. If it doesn’t, we will lose what we have gained so far and the consequences will be far worse than we’ve ever experienced in the past,” he said.
Explaining why the next crisis, if it were to come to pass, would be worse, Coomaraswamy said Sri Lanka would be entering it with a far lower level of resilience, both in the economy and among the people. Next time around, he said, the impact is going to be much more painful.
“The multiple crises of the present have had such a devastating impact that we’ll be at a much much lower level of resilience going into the next one. We need to make sure we never allow that to happen,” he said.
The electoral calendar was among a series of risks that Coomaraswamy identified as possible obstacles to Sri Lanka’s recovery. Other risks he highlighted included climate risks such as the ongoing El Nino phenomenon and elevated geopolitical tensions which demand a more transparent and prudent external relations policy.
“The world has become a more tense place. That will have an impact on global supply chains and commodity prices. We need to be proactive and factor all that in and see how best to have contingency plans to cope with the impacts of this,” he said.
On the domestic front, the senior economist said Sri Lanka must achieve a primary surplus in the budget to keep the debt stock in check and must also work towards a transformation in exports, aiming at a more diversified export basket with a more complex set of products as well as a diversification of markets.
“Those two things will take us out of this twin-deficit category that we have been stuck in for many years, if we do it well,” he said.
Coomaraswamy said the programme now under way to restructure state-owned enterprises (SOEs) is also critical and should ideally move faster.
“We need to use whatever political capital is necessary to give tailwind to this process,” he said.
Coomaraswamy went on to say that Sri Lanka needs to move faster in factor market reforms, improving the investment climate and investment promotion. He also called for expediting new free trade agreements (FTAs).
“There are negotiations to convert the Indian FTA into an economic partnership agreement under ECTA (Economic and Technology Cooperation Agreement). Negotiations for an FTA with China are also ongoing, as well as with Thailand. These need to be pushed forward,” he said.
“The revitalization of the Singapore FTA is a good thing. It will give us opportunities in terms of investment as well as using that FTA to penetrate the ASEAN market, particularly in e-commerce.”
Coomaraswamy commented on President Wickremesinghe’s plans to join the Regional Comprehensive Economic Partnership (RCEP), a free trade agreement among the Asia-Pacific nations of Australia, Brunei, Cambodia, China, Indonesia, Japan, South Korea, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, Thailand, and Vietnam.
“I don’t think we’ll be able to do it very quickly. The kind of reforms needed to be able to join RCEP will be quite challenging. But it’s a good aspiration to have and it’s a good signal to give to say that we’re keen on joining,” he said.
On Sri Lanka’s relations with India and proposals for a land bridge and grid connectivity on top of plans to improve sea and air connectivity, Coomaraswamy said Sri Lanka can benefit from increased connectivity with the Indian economy.
“We’ve had proximity [to India] forever but the very poor infrastructure in both countries has made transaction costs for cross border economic activity very high. India also had an inward looking strategy for a long time, but now it has its Neighbourhood First policy and its Made In India policy, all of which will create new opportunities for countries in the region,” he said, noting that transaction costs are in fact coming down with improvements in roads, railways, airports etc in both countries.
“We should make a concerted effort to piggyback onto the Indian story,” he said.
In terms of addressing corruption vulnerabilities, which is a key pillar of the ongoing IMF programme, Coomaraswamy said implementation is key.
“Laws mean nothing unless they’re implemented effectively. So it is to be seen whether the anti-corruption act which is better aligned with UN convention on corruption is implemented,” he said.
“The IMF diagnostic on addressing corruption vulnerabilities has just about been finalized. It should be shared with the government this month. Whether or not the government is serious about addressing vulnerabilities will be demonstrated in how it treats the recommendations of this diagnostics study. It will be a good litmus test for the government’s attitude,” he said.
Sri Lanka saw a 31% surge in poverty over the last four years – from four million people in 2019 to seven million in 2023, according to a study by LIRNEasia – and a number of reports have come out on increased vulnerability, child malnutrition and other indicators of socioeconomic deterioration. Coomaraswamy, while recognizing this, said however that the MF cannot be blamed. The ongoing anti-IMF rhetoric has centered its messaging around the IMF, laying the blame for all of Sri Lanka’s ongoing ills at its door.
“People blame the IMF program. People who do that fail to take into account that the country was in a very big hole before the IMF came. We had massive shortages of essentials, long queues, etc. Very severe problems. Dollar and LKR illiquidity at the time that was causing all these problems, which have been addressed to a significant extent because of the IMF program,” said Coomaraswamy.
“So you can’t blame the IMF program. These problems were there because of the hole we had fallen into and that hole was caused by various things which everybody knows,” he said, declining to elaborate on the causes.
The former central bank governor also called for a strengthened social safety net.
“When you have as big an adjustment as we have to make, when the hole is as big as the one that confronts us, there is a strong case for strengthening the social safety net upfront,” he said, adding that the ongoing Aswesuma programme should ideally have been launched sooner.
“It wouldn’t have done away with the increase in poverty and vulnerability, but it could’ve mitigated it to a significant extent,” he said.
News
US sinks Iranian warship off Galle returning from Indian naval exercise
Of 180 member crew, 30 rescued by Sri Lanka Navy
Iran warship IRIS Dena (F75), returning home after participating in the Indian International Fleet Review, and MILAN 2026 international naval exercises, has been sunk off Sri Lanka. The US, Russia and Iran were among 74 participants.
Speculation is rife that the US attacked the vessel in international waters as part of the continuing offensive action under Operation Epic Fury, launched on 28 February. Before the attack in the Indian ocean, President Trump declared that the Iranian Navy Headquarters and nine Navy vessels had been destroyed.
The ill-fated Moudge-class frigate participated in the Indian exercises with the US Navy’s Arleigh Burke-class guided-missile destroyer USS Pinckney (DDG-91) and the Marshal Shaposhnikov, a Udaloy-class frigate of the Russian Navy. Sri Lanka also participated in the exercises. SLNS Sagara and Israeli built Fast Missile Vessel Nandimithra represented Sri Lanka. Forty two warships and submarines and 29 aircraft had been involved.
At the time of the attack, the domestically built vessel was crewed by 180 officers and men.
The US Embassy here did not respond to The Island media query whether the US sank IRIS Dena . The Island was unable to get in touch with Iranian Ambassador in Colombo Alireza Delkhosh though he earlier indicated his availability later in the day.
Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath, told the Parliament yesterday that the Sri Lanka Navy and the Sri Lanka Air Force had acted in less than an hour of receiving the distressed signal at 5.08 am.
According to the Minister, the first naval craft was dispatched by 6 am, followed by a second vessel at 7 am, while Air Force units joined the mission, including the deployment of a surveillance aircraft to support search operations.
Approximately 180 personnel were believed to have been on board the stricken vessel. Of them, around 30 were reported to be in critical condition.
“To save the lives of those 30 persons, we intervened immediately,” Minister Herath said, adding that the rescued crew members were being transported to Karapitiya Hospital for urgent medical treatment. Some had already arrived by the time of his statement.
SLPP MP Namal Rajapaksa asked whether the Iranian ship had been attacked within Sri Lanka’s Exclusive Economic Zone (EEZ).
Responding to questions raised by Opposition MPs, including NDF Badulla District MP Chamara Sampath Dassanayake, who alleged that the Iranian vessel may have been struck in Sri Lankan waters, the Minister said the ship had been outside Sri Lanka’s maritime boundary when it issued the distress call.
MP Dassanayake queried whether the frigate had been hit as part of the ongoing military escalation involving the United States and Israel against Iran. There was no immediate confirmation from the government regarding the cause of the emergency.
Minister Herath stressed that Sri Lanka’s intervention was guided solely by humanitarian considerations and international obligations.
“We are bound by the International Convention on Maritime Search and Rescue (SAR) of 1979, which we have signed,” he told Parliament.
Under the convention, a signatory state is required to respond to maritime emergencies, regardless of nationality, the cause of the incident, or whether it occurs beyond its own territorial waters.
“According to this convention, if a vessel, or its crew, encounters danger beyond our territorial limits, we are obligated to intervene and protect those lives on humanitarian grounds,” Minister Herath said, adding Sri Lanka had acted immediately to prevent loss of life and had taken all urgent and necessary measures as a responsible state.
The Minister noted that the incident highlighted broader regional security vulnerabilities in maritime safety amid escalating tensions in the region. “A regional military situation would also have an impact on our country. The government’s position is that a negotiated solution must be pursued,” he said.
He also disclosed that President Anura Kumara Dissanayake had held a telephone discussion on Tuesday night with the leadership of the United Arab Emirates regarding the evolving regional situation.
Rescue operations were continuing at the time of going to press.
By Saman Indrajith and Shamindra Ferdinando
News
Justice Kumudini complains of male domination at senior levels, absence of a woman head of BASL
Judge of the Supreme Court Justice Kumudini Wickramasinghe has recently presented a stark analysis of the legal profession’s gender disparity, noting that in spite of women entering the legal field in substantial numbers, their representation dwindles at senior levels. She has highlighted critical statistics and the fact that only two women currently serve in the Supreme Court, none in the Court of Appeal, and that there has never been a woman President of the Bar Association of Sri Lanka (BASL).
“Inclusive leadership is not satisfied by entry-level participation,” Justice Wickramasinghe said. “It concerns who occupies the apex of institutional authority, who shapes doctrine, who speaks for the profession. These figures are not merely statistics; they are indicators of work yet unfinished.”
Justice Wickramasinghe said so at a seminar organised on the eve of International Women’s Day by the Bar Association of Sri Lanka (BASL), in collaboration with the Sri Lanka Women Lawyers’ Association (SLWLA). She underscored the need to address the systemic barriers preventing women from reaching the apex of the legal profession. Justice Wickramasinghe addressed the gathering as the Chief Guest.
BASL President Rajeev Amarasuriya, in his address, framed inclusivity not as charity or tokenism, but as “structural fairness.” He raised an important question being ‘who bears the responsibility of inclusivity’ and addressed the vital role of leadership in inclusivity. Furthermore, Amarasuriya challenged the profession to address the “gap between what we see coming into the profession and what we see at the top,” and clarified that such disparity did not stem from a lack of competence or commitment but from deep rooted practices and structural issues.
A dynamic panel discussion, moderated by Attorney-at-Law Tanushka Gunawardane, explored the multifaceted nature of inclusive leadership. The panel featured Justice Wickramasinghe, Constitutional Council Member Professor Wasantha Seneviratne (joining online), Senior Instructing Attorney Shiranthi Gunawardhana, and corporate leader Yanina Weerasinghe.
Professor Wasantha Seneviratne distinguished between mere representation and true participation, stating that inclusion becomes meaningful only when women have the “agency and authority to make decisions.” She emphasised that inclusive leadership is both a moral obligation and a pragmatic governance strategy.
Senior Instructing Attorney Shiranthi Gunawardhana shared personal anecdotes from her 50-year career, urging senior lawyers to act as mentors rather than gatekeepers. She stressed the importance of creating space for young female lawyers by offering flexibility and support to help them balance professional and personal responsibilities.
Yanina Weerasinghe, Head of Legal at Brandix, argued that true inclusion is measured by influence, not optics. “Diversity is being present; inclusivity is being influential,” she explained, warning against tokenism and calling for “cerebral opportunities” where women are selected, based on talent, and given a genuine voice in decision-making.
Justice Wickramasinghe addressed the relationship between judicial hierarchy and inclusion, asserting that authority and accessibility can coexist. “A judge can be firm in decisions while remaining approachable,” she said, adding that power exercised with transparency and humility strengthens, rather than weakens, institutional legitimacy.
The seminar also heard from Dilani Yatawaka, Managing Director/CEO of Ideal Motors, who shared her perspective as a female leader in the male-dominated automotive sector. She reinforced the critical role of supportive superiors and societal encouragement to enable women to ascend the career ladder while managing family responsibilities.
BASL Women Lawyers’ Professional and Career Development Committee Chair Indika Nagaratne Koththagoda in her welcome address said that the distinguished gathering was honoured to have Her Ladyship Justice Kumudini Wickramasinghe, Judge of the Supreme Court of Sri Lanka, as the Chief Guest and a key panellist and also welcomed the other panellists Attorneys-at-Law Professor Wasantha Seneviratne, Ms. Shiranthi Gunawardena and Yanina Weerasinghe for agreeing to share their insights on the subject during the ensuing panel discussion to be moderated by Attorney-at-Law Ms. Tanushka Gunawardane.
In her closing remarks, Nalani Manatunga, Co-Chairperson of the BASL Women Lawyers’ Professional and Career Development Committee, challenged the audience to reflect on the true meaning of leadership. “A position gives authority, but leadership gives direction,” she said. “Inclusive leadership is not about occupying space; it’s about creating space. Let our leadership not be measured by the chairs we occupy, but by the doors we leave open.”
News
No qualified printer to head Government Printing Department
A crisis was prevailing at the Government Printing Department due to the absence of a permanent Government Printer, Parliament was told yesterday, raising concerns over confidentiality, quality control and national security.
NDF MP Ravi Karunanayake demanded to know what steps the government had taken to fill the long-standing vacancy at the department, describing the situation as a serious administrative lapse.
“The Government Printing Department is a very important and closed service category institution. However, it has been functioning without a permanent Government Printer for some time,” Karunanayake said.
The MP pointed out that the department handles highly sensitive material, including documents related to defence and national security, as well as other classified publications.
“The non-availability of a permanent Government Printer affects the quality, confidentiality and sustainability of the work there. Has the Government conducted an audit on the possible issues arising from this situation? What immediate action has been taken to resolve this crisis?” he asked.
Responding on behalf of the Government, Prime Minister Dr Harini Amarasuriya said the vacancy had been filled on a temporary basis following a Cabinet decision.
She said an experienced officer from the Sri Lanka Administrative Service had been appointed on contract as Acting Government Printer to ensure operational continuity and maintain security standards in relation to sensitive printing tasks.
The Prime Minister acknowledged that the issue reflected broader systemic weaknesses in public service recruitment and professional development that had persisted for years.
“To bridge these gaps, the Government is initiating specialised training programmes and offering international scholarships for high-performing students to build future technical capacity,” she said.
Chief Government Whip and Health and Mass Media Minister Dr Nalinda Jayatissa said that under existing service minutes, more than two decades of experience were required for an officer to qualify for the top post, and that there were currently no internal candidates eligible for appointment.
He said that the department was facing a leadership crisis and administrative instability due to the lack of a permanent, qualified Government Printer.
By Saman Indrajith
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