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Encounters with the Tigers, loss of Thenaddi bungalow

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Excerpted from the authorized biography of Thilo Hoffmann by Douglas B. Ranasinghe

Thilo and his friend Guido Baumann often spent weekends at Thenaddi Bay, leaving Colombo on Friday evenings and returning to be back in office on time on Monday mornings. During the evening and early morning hours they managed the 178 miles (about 300 km) across the island in Thilo’s Peugeot 504 car in four hours flat despite bad roads.

At times when the Mahaweli was in flood the approach road to the Manampitiya Bridge was under water and the trip would take 12 hours or more. The railway through this area, in contrast to the road, runs on a bund well above the flood level. On several occasions the night was spent on a platform of the Kaduruwela railway station, and in the morning their vehicle was loaded on a bogie (flat-car) of the train for a leisurely ride to Valaichchenai.

In the 1960s and 70s it was also possible to fly to Batticaloa via Uhana, near Ampara, in an Air Ceylon DC3 (Dakota) and later an Avro turboprop. Thilo did so when workers were at the bungalow site, and a vehicle was available to bring him from the Batticaloa airfield and later take him back to it.

He recalls two episodes there. The first was on a return flight. When all the passengers had boarded, the plane was full to bursting, probably overloaded. It revved up and rolled with increasing speed in a northerly direction to the other end of the runway. But it was not fast enough to take off. The pilot aborted the attempt, turned the plane around, rolled back to the starting point, and tried again. The result was the same. Only at the third attempt did he just manage to get airborne. Had he not Thilo would have asked to get off!

Another time Thilo and a friend arrived late at the airfield. The plane was still on the tarmac, the door open, and the steps in place. The airport manager told the two passengers to wait at a short distance from the plane, he then went in, and after a few minutes came out. Hardly had he stepped on the ground than the door was closed and the plane took off. The pilot, says Thilo, obviously wanted to teach the two passengers a lesson and left them stranded. They had no alternative but to take the night mail, the most uncomfortable train ride Thilo had experienced. He lay awake on a sticky plastic covered `sleeperette’. At every station wagons were shunted and goods noisily loaded, and it took nearly 12 hours to get to Colombo.

The serenity and charm of Thenaddi Bay were spoilt when in later years lime-kiln mudalalis from the south began to expand their operations into the area. The reefs were ruthlessly exploited and broken up with crowbars, and trees, even coconut palms, were cut down to fire the kilns. Dynamiting became common, and the ornamental fish trade descended on the reefs to carry on its destructive and depletive activities. Tourists began to arrive.

Thilo tried to stem the tide with varying degrees of success. The LTTE proved to be the most concerned about the environment. They strictly prohibited the breaking of coral and, of course, were promptly obeyed, in contrast to the government.

The house and property at Thenaddi Bay survived the conflict in the east until 1992, through the IPKF (Indian Peace Keeping Force) period, and the LTTE occupation, when it was used by them as a training camp. Then, encouraged by the Tigers before their departure, the complex was ransacked by villagers, who carted away everything that could be broken or torn away, including the well rings. The house and outhouses, which had easily withstood the cyclone of November 1978, though right in its path, were no match for human greed and destructiveness. Later Thilo noticed his bricks, roofing sheets, reapers and rafters, and beams in many new houses at Kankerni and beyond.

Remembering the unidentified ruins of old planters’bunglows along the East coast seen during earlier visits (at Easter Seaton Estate, for instance) he had buried a very heavy granite tablet – over 100 kg – in the brick-paved floor of his own bungalow. It bore the inscription:

This house was built by
Thilo. Hoffmann
of Switzerland
1967

Even this disappeared. But the stark white walls resisted the elements for another dozen years, until the tsunami in December 2004 pushed in the weakened front side of the rectangle. The jungle, the trees, the palms and shrubs were cut down for firewood, and later the land was cleared for cultivation. The area became like a desert, with all vegetation destroyed, and was kept that way by the armed forces, who had set up a camp nearby. This was destroyed by the tsunami. Only after that did the vegetation begin to recover.

Thilo has regularly visited the place and Alagiah, mentioned in a later Chapter, again looked after it. Very recently Thilo gifted the property to Nicholas Baumann, the son of Guido. It is his wish that this land should remain in the private and personal ownership of Nicholas as a legacy from him and also in memory of his late wife.

AMONG THE TIGERS

Throughout the period of the armed conflict Thilo had many encounters with the LTTE.He travelled in parts of the Eastern and Northern Provinces occupied by them in connection with his property at Kayankerni, the annual waterbird census (see Chapter VIII) – e.g. in the coastal stretch north of Trinco, at Marichchukkaddi, in Mannar and the Jaffna Peninsula – and also simply out of interest to Jaffna, Delft, and Mullaitivu.

Some of the Tigers were friendly, some threatening and obstructive, and sometimes there were risky situations. Checkpoints by armed forces on either side, where vehicles and persons were minutely searched, made travelling hazardous, slow and tiresome.His incursions to LTTE-held areas were quite frequent during two periods. The first was while the IPKF battled the Tigers, between October 1987 and March 1990. At the time there were also para-military groups and camps at various locations, in the East of the EPRLF and ENDLF, and in the North additionally of PLOTE, TELO, EROS. After the Indian forces left these were all liquidated by the LTTE.

Once at a checkpoint near Karainagar, and after he had explained the waterbird census as the reason for his being there, he had a long chat with an Indian army Captain about the situation in the peninsula. At some point the Captain asked the rhetorical question: “Can’t you put some sense into the heads of these fellows to take at least a common stand?” He referred to the various Tamil factions which were at each other’s throats.

In Jaffna and the islands, in the Mannar area, the Vanni and the East, the Indian troops erected many small shrines (mostly dedicated to the Hindu deity Ganesha) and memorial tablets stressing their peaceful intents. These were put up along highways, at junctions and bridges. Today there is not a trace left of them: all were subsequently destroyed by the Tigers. Already then there were many decaying and crumbling houses and mansions, not due to damage in the conflict, but because their owners had been forced to flee the areas and abandon their houses.

In May 1990, two months after the IPKF had left Sri Lanka, the LTTE were in full control of the Northern and Eastern Provinces except for Trincomalee. When Thilo visited his property at Thenaddi Bay it was like getting into and out of a foreign country. The Tigers manning the checkpoints looked menacing.

At the end of that month, Thilo set out in his Peugeot car from Renaddi Bay for Jaffna, with Geepal Fernando and Siva, his cook. He drove to Trincomalee, over the six ferries, and then through Nilaveli and Kuchchaveli. At the next ferry they re-entered Tiger land. Here they noticed the movement of rebel fighters. Visiting Tiriyai, which was in prime condition, they continued to Pulmoddai, then inland to Kebitigollewa and Vavuniya. They were late, and when night began to fall they had just crossed Elephant Pass into the Peninsula.

They noticed a brand-new Mitsubishi Pajero, jeep following them at high speed. Near Pallai they were overtaken and ordered to stop. Fortunately, Siva spoke Tamil. After some questions and answers, with the boss of the jeep never seen, the go-between ordered all three of them to get down. They were dumped on the roadside, with their baggage, which included binoculars and several cans of petrol. Then both vehicles drove off.

Across the bund here alongside the road – which had been the old rail track – was a compound owned by an elderly Tamil couple. They took in the “refugees”. Attempts were made to hire a taxi for the trip to Jaffna where Baurs had a branch, but no driver dared to go against the wishes of the Tigers. Early next morning their host traveled to Jaffna by bus and brought the Branch Manager, Mr N. Rajathevan, who in his old Volkswagen took Thilo and the others to Jaffna.

There Thilo tried to complain to the LTTE military commander but in vain. He was busy with the visit of government Minister A.C.S. Hameed expected that evening for negotiations. In desperation they went to the LTTE political headquarters at Kondavil, where they met Anton Balasingham. He was rather embarrassed by the situation.It was created by the military commander of the Pallai sector. He wanted to secure a car for himself. There was a particular reason. When asked why, the Public Relations Officer at the Jaffna LTTE military headquarters replied: “Because there is going to be a war”. During their stay the travelers noticed intense preparations for war, with new bunkers and troop movements.

Thilo and the Manager patiently spent three days at the political headquarters, meeting with Anton Balasingham his wife Adele (and their white dog), as well as Daya Master and other Tigers. (Nearly 15 years later, after the tsunami, the fact that Daya Master remembered Thilo facilitated a visit to Mullaitivu). Then on the evening of the third day the white Peugeot was brought in, only slightly the worse for wear. The next day they left Jaffna. Two weeks later a massive Tiger offensive defeated the Army in the Peninsula and beyond. It was the beginning of “Eelam War II”.

Ranjan Wijeratne, Deputy Minister in charge of Defense at the time, was a personal friend of Thilo’s. Thilo says: “I actually had thought to meet him at that time and tell him of what we had seen and heard, but then felt that it would be presumptuous as he, in charge of the military, would undoubtedly be aware of the situation in the East and the North. In that I was sadly mistaken. They were taken totally by surprise, and I have a somewhat bad conscience about that to this very day.”

The second period during which Thilo travelled often in Tiger-held areas was during the ceasefire from 2002 to 2006. All these trips are recorded, some in great detail, in Thilo’s numerous notebooks, described later.



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Sri Lanka’s vanishing wetlands put elusive otter under growing threat

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International Eurasian Otter Workshop-Colchester, United Kingdom

The world marked World Otter Day 2026 recently. Conservationists are warning that Sri Lanka’s rapidly disappearing wetlands, polluted waterways and unplanned development are placing increasing pressure on one of the island’s most elusive freshwater predators, the Eurasian otter (Lutra lutra).

The species, locally known as “Diya Balla”, is the only otter found in Sri Lanka and is regarded as a key indicator of healthy freshwater ecosystems. Yet despite its ecological importance, experts say the animal remains poorly studied and largely overlooked in national conservation planning.

Naturalist and conservationist Chaminda Jayasekara, who has spent years documenting otters in Sri Lanka, said the species is facing mounting environmental pressures across the island.

Speaking to The Island, Jayasekara said habitat destruction, chemical pollution, road kills, sand mining, and increasing human disturbance are fragmenting the waterways on which otters depend.

“Otters are extremely sensitive animals. When wetlands are degraded or rivers become polluted, they disappear very quickly. Their survival is directly linked to the health of freshwater ecosystems,” he said.

Jayasekara, who specialised in MSc Environmental Management at the University of Hertfordshire, noted that while the species has been recorded across Sri Lanka’s wet zone, dry zone and coastal wetlands, scientific data on population numbers and distribution remain limited.

According to him, the decline of wetlands has become one of the most serious environmental issues facing Sri Lanka. Marshes, mangroves, irrigation tanks and riverine habitats are increasingly being altered by urban expansion, tourism infrastructure, encroachment and agricultural runoff.

He warns that the loss of these habitats not only threatens otters, but also weakens flood control systems, freshwater security and biodiversity resilience at a time when climate-related disasters are becoming more frequent.

Jayasekara said otters play a vital ecological role by helping maintain balanced fish populations and healthy aquatic ecosystems.

“When otters thrive, it tells us the river system is functioning properly. Their presence is a sign that water quality, fish diversity and habitat conditions remain healthy,” he explained.

One of the best-known locations for otter sightings in Sri Lanka is Aranga Pond, within the Horton Plains National Park, where the species has adapted to the island’s cold montane ecosystem.

However, conservationists stress that even protected areas are not immune to broader environmental degradation occurring outside park boundaries.

Jayasekara’s own work on otters gained prominence through long-term conservation efforts at Jetwing Vil Uyana, where a former degraded chena landscape was restored into a functioning wetland ecosystem.

The restored habitat eventually attracted Eurasian otters, fishing cats, grey slender lorises and numerous wetland bird species.

Over 14 years, Jayasekara carried out field observations, camera trapping and awareness programmes involving hotel staff, surrounding schools and local communities.

“What happened at Vil Uyana clearly showed that habitat restoration works. If degraded ecosystems are given time to recover, wildlife can return naturally,” he said.

He added that wetland restoration should become a central component of Sri Lanka’s environmental policy, particularly as climate change intensifies droughts, floods and biodiversity loss.

Chaminda collecting scat for research purposes in Sigiriya

He says wetlands are among the planet’s most productive ecosystems, functioning as natural water filters and carbon sinks while providing breeding grounds for fish, amphibians and aquatic mammals.

Yet globally, wetlands are disappearing at an alarming rate, and Sri Lanka is no exception.

Conservation groups have repeatedly warned that illegal waste disposal, pesticide contamination and poorly planned infrastructure projects are severely affecting freshwater ecosystems throughout the country.

Jayasekara also highlighted the importance of stronger environmental education and community participation in conservation.

“Awareness is still very limited. Many people living close to wetlands do not realise the ecological importance of otters or the threats they face,” he said.

According to him, involving local communities in conservation monitoring is essential if Sri Lanka hopes to safeguard the species in the long term.

He also pointed to the growing international interest in otter conservation.

In November 2025, Jayasekara represented Sri Lanka at the International Eurasian Otter Conservation Workshop held at Colchester Zoo and organised by the International Otter Survival Fund.

The workshop brought together nearly 100 researchers, conservationists and wildlife experts from 33 countries to discuss emerging threats facing Eurasian otter populations.

Jayasekara presented Sri Lanka’s experience under the theme Rewilding Through Hospitality, focusing on how habitat restoration and sustainable tourism practices at Vil Uyana contributed to otter conservation.

“The international response was extremely encouraging. Many delegates were surprised that a tourism property in Sri Lanka had quietly carried out wetland conservation work for more than a decade,” he said.

Discussions at the workshop also examined wider environmental concerns including river pollution, declining fish stocks, illegal killings and habitat fragmentation affecting otter populations across Europe and Asia.

New conservation technologies such as AI-assisted wildlife tracking and environmental DNA surveys were also highlighted as emerging tools for monitoring elusive species.

Jayasekara said Sri Lanka urgently requires more scientific surveys, stronger environmental law enforcement and greater investment in freshwater conservation research.

He warned that unless wetlands and waterways are protected, several lesser-known freshwater species could face severe decline in the coming decades.

Environmentalists say otter conservation should not be viewed in isolation but as part of a broader effort to protect entire freshwater ecosystems that millions of Sri Lankans depend on for drinking water, irrigation and livelihoods.

He further noted that healthy wetlands also strengthen climate resilience by absorbing floodwaters, reducing soil erosion and supporting groundwater recharge.

As Sri Lanka experiences increasingly erratic weather patterns linked to climate change, conservationists argue that protecting wetlands is becoming both an ecological and economic necessity.

Jayasekara believes Sri Lanka still has an opportunity to become a regional example in balancing tourism, biodiversity conservation and habitat restoration.

“The otter teaches us an important lesson,” he said. “If rivers are protected and wetlands are respected, nature has an incredible ability to recover.”

This year’s observance of World Otter Day 2026 is, therefore, serving not only as a celebration of one of the world’s most charismatic mammals, but also as a reminder of the urgent need to conserve the fragile freshwater ecosystems upon which both wildlife and human communities ultimately depend.

Eurasian otter

By Ifham Nizam

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Malaiyaha Tamil people: Healing the Oldest Wound of Independence

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Hands of a Maliayaha tea estate worker

In their Vesak messages this year, President Anura Kumara Dissanayake and Prime Minister Harini Amarasuriya highlighted the values of reconciliation, coexistence and justice as essential to Sri Lanka’s future. President Dissanayake emphasised that Buddhism’s teachings remain deeply relevant to contemporary society and described Vesak as a symbol of “mutual understanding, unity and coexistence among all communities” and of reconciliation itself. Prime Minister Amarasuriya similarly called for the building of a society in which justice is assured to all irrespective of caste, race or religion. These messages were not merely religious aspirations, they were a direct challenge to the most serious failures in Sri Lanka’s post-independence history. These include the three-decade-long war, its human rights violations and the inability to implement a political solution.

These have been and continue to be the challenges that have prevented Sri Lanka from reaching its full potential. Added to this have been the persistence of social and economic inequalities that continue to marginalise communities at the bottom of the social hierarchy. One of the most enduring examples of such injustice is the experience of the Malaiyaha Tamil community. The scale of the original exclusion is worth understanding clearly. According to the 1946 Census, the Malaiyaha Tamil community numbered approximately 780,600 persons and constituted 11.73 percent of the country’s population making them the second largest ethnic community, larger than the Sri Lankan Tamil community who numbered 733,700 or 11.02 percent of the population at the time

The denial of citizenship and voting rights to the Malaiyaha Tamil community was the first major injustice inflicted on an ethnic minority in post-independence Sri Lanka. The consequences were devastating and long-lasting. A community that had contributed enormously to the country’s economy through its labour on the plantations was excluded from political participation and denied basic rights. This was a political and moral failure that cast a long shadow over the country’s post-independence history. Responsibility for that injustice needs to be shared widely. Political leaders across ethnic lines failed to resist it. The result was the marginalisation of a community whose contribution to national prosperity far exceeded the recognition it received. Today, nearly eight decades later, Sri Lanka has an opportunity to correct that historic wrong but only if economic reform is matched by genuine social inclusion.

Longstanding Grievances

The NPP government has repeatedly acknowledged the need to address the longstanding grievances of the Malaiyaha Tamil people. In its election manifesto, the NPP pledged to improve living conditions in plantation areas, strengthen land and housing rights, ensure equal access to education and public services, and integrate plantation communities more fully into national development. The NPP’s Nuwara Eliya Declaration of 2023 similarly recognised that the plantation community had suffered generations of exclusion and promised measures to address disparities in housing, land ownership, infrastructure, education and economic opportunity. The need for such action is plain to see. While citizenship issues have largely been resolved over time, the socio-economic consequences of decades of exclusion remain deeply entrenched and continue to shape daily life in plantation communities.  A conference organised by the Institute of Social Development to mark International Tea Day on May 21 at the BMICH brought out this and many other salient issues.  Headed by P Muthulingam the organisation has advocated for the rights of the Malaiyaha Tamil people for the past 35 years to be equal citizens who enjoy social and economic justice.

The central problem facing many plantation workers is the low level of income they receive. Daily wages remain among the lowest in the country relative to the difficulty and intensity of the work. Plantation labour continues to depend heavily on methods that have changed little over generations. Productivity remains low compared to competing tea-producing countries — not because workers lack capability, but because sustained investment in their welfare, skills and economic mobility has been withheld. Workers consequently remain trapped in a cycle of low wages and limited economic mobility. Their housing situation compounds these difficulties. Many plantation families continue to live in housing owned either by plantation companies or the state. Lack of secure ownership limits their ability to accumulate assets, access credit or make independent decisions regarding their future. When Cyclone Ditwah damaged plantation housing, it exposed the inability of those living in that housing to access state compensation as they did not own the housing in which they lived.

The problems extend beyond the central highlands. Plantation workers living in private estates and smallholdings in other parts of the country face similar challenges. A recent Amnesty International report documented serious abuses affecting Malaiyaha Tamil workers in private tea estates in the Southern Province.  These include wage withholding, debt dependency, restrictions on movement and intimidation and practices the report argued correspond to internationally recognised indicators of forced labour. These findings are not peripheral. They reveal that the structural exclusion of the Malaiyaha Tamil community is not a relic of the past but an active, ongoing condition. Economic vulnerability and social marginalisation continue to leave many plantation workers without effective protection or access to justice. It is against this backdrop that the government’s recent plantation reform initiative assumes special significance.

Second Phase

The government has announced the second phase of a programme to make underutilised plantation lands and assets available for investment. The objective is to transform underperforming assets into productive enterprises capable of generating employment, attracting investment and revitalising regional economies. The programme seeks to modernise the plantation sector, improve productivity and create new opportunities in tourism, renewable energy and export-oriented industries. These objectives are necessary and welcome. However, economic reform alone will not be sufficient and Sri Lanka’s own history provides the warning. Previous rounds of plantation modernisation pursued productivity gains without addressing the structural disempowerment of the people at the centre of the industry. The result was investment that generated wealth without distributing it.  The workers who produced the wealth were once again treated as labour inputs rather than as beneficiaries. If the current reform follows the same logic, it risks reproducing the same failure.

For reform to succeed, plantation workers must be recognised not merely as a labour force but as stakeholders with rights, aspirations and a legitimate claim to share in the benefits of development. Housing ownership, secure land tenure, quality education, vocational training and entrepreneurship need to be built into the reform process from the outset. The government’s commitments to the Malaiyaha Tamil community therefore need to be incorporated into every stage of the reform process. On the contentious question of land, the government should consider establishing an independent national land commission. Such a body should include respected government officials, professionals and representatives from all ethnic and religious communities. It should review land policy comprehensively, develop transparent principles for allocation and use, ensure fairness in decision making and provide a trusted mechanism for resolving disputes. A credible land commission would help build public confidence that land reforms are being undertaken in the national interest rather than for the benefit of particular groups.

The correction of historic injustices should not be viewed as a concession to one community. It should be understood as an investment in national unity, because societies do not become stronger by maintaining the exclusion of those they have wronged.  On the contrary, they become stronger by ending it. The first great injustice committed against an ethnic minority after independence cannot be undone. But its consequences can be addressed, and doing so would strengthen reconciliation, enhance social cohesion and bring Sri Lanka closer to the vision of a country in which all communities live with equal dignity and equal hope. This is what the Vesak messages of the President and Prime Minister promised. The plantation reform now underway is the moment to make good on that promise not in words alone, but in sustained policy that endures beyond any single government and reaches the people who have waited longest for it.

by Jehan Perera

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IMF relief is not economic recovery: Sri Lanka’s real test begins now

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The IMF’s latest decision to release approximately US$695 million to Sri Lanka provides an important measure of financial relief, but it should not be mistaken for full economic recovery. While the approval reflects progress in stabilisation, fiscal discipline, and reform implementation, the country still faces deep structural weaknesses, social pressures, and external risks. The real test begins now: whether Sri Lanka can convert this temporary breathing space into lasting reform, productive growth, stronger institutions, and national resilience. This moment should not be used for political celebration, but for serious national reflection and responsible action. Sri Lanka must now resolve to support a clear policy direction, a practical reform programme, and a long-term national development path — not merely an individual, a party, or a political camp.

1. IMF Relief: A Necessary Step, but Not a Final Solution

The IMF Executive Board recently completed the combined Fifth and Sixth Reviews under Sri Lanka’s Extended Fund Facility, allowing the country immediate access to SDR 508 million, approximately US$695 million. This decision represents an important step in Sri Lanka’s ongoing economic recovery process following the severe crisis that led to sovereign debt default, shortages of essential goods, high inflation, and the collapse of foreign reserves in 2022.

However, this decision must be understood with great sensitivity. IMF relief is not the same as full economic recovery. It gives Sri Lanka temporary breathing space, helps rebuild a certain level of international confidence, and supports the continuation of the reform programme. However, this relief is not a magic solution that can automatically resolve the country’s deep-rooted economic problems. Fundamental challenges such as the debt burden, weak productive capacity, low export earnings, poor public revenue performance, weak fiscal management, excessive dependence on imports, corruption, and inefficient state-owned enterprises still remain unresolved. Addressing these challenges requires domestic reforms, disciplined policies, stronger production and export capacity, and a long-term national development programme. Therefore, the IMF decision should not be treated as a political victory or as proof of complete economic success. Rather, it should be seen as a reminder that Sri Lanka still has a long and difficult journey ahead.

2. Sri Lanka’s Progress Recognised by the IMF and Its Limits

The IMF’s approval indicates that Sri Lanka has made progress in several important areas. Inflation has been brought under control compared to the extreme levels experienced during the crisis. Foreign reserves have improved, the exchange rate has shown greater stability, and fiscal management has become more disciplined. The government has also continued to implement reforms in taxation, public finance, energy pricing, and debt restructuring.

According to the IMF assessment, performance under the programme has generally been strong. Several quantitative performance targets have been met, while many structural benchmarks have either been achieved or implemented with some delay. This shows that Sri Lanka has remained broadly committed to the reform path agreed under the IMF-supported programme.

Yet this progress remains fragile. Stability achieved through external support must now be converted into genuine economic strength.

3. Conditions and Responsibilities Attached to the IMF Programme

IMF support does not come merely as financial relief; it comes with a set of important reform conditions and responsibilities that Sri Lanka must fulfil. Key among them are maintaining fiscal discipline, improving government revenue, continuing cost-reflective pricing for fuel and electricity, strengthening public financial management, restructuring state-owned enterprises, protecting institutional independence, and preventing the accumulation of new external payment arrears.

The main objective of these conditions is to restore macroeconomic stability, strengthen fiscal credibility, and rebuild international confidence in Sri Lanka. However, these reforms also carry social and political consequences. Higher taxes, market-based utility pricing, and strict expenditure controls can place a heavy burden on ordinary citizens, especially low-income families, small businesses, pensioners, and salaried workers. Therefore, in implementing reforms, economic discipline alone is not enough. Fairness, transparency, and social sensitivity towards vulnerable groups must also be treated as essential priorities.

4.The Impact of IMF Conditions on People and the Economy

One major social consequence of the IMF programme is the increased pressure it can place on household incomes and living standards. When electricity, fuel, and other essential services are priced on a cost-recovery basis, people may have to face a higher cost of living. Although such reforms are necessary to reduce the losses of state-owned enterprises and maintain fiscal discipline, they can weaken the purchasing power of ordinary citizens if strong social protection programmes are not in place.

Another important consequence is the pressure placed on the operating costs and stability of small and medium-sized enterprises. Higher taxes, increased utility costs, fuel and electricity expenses, and the rising cost of borrowing can affect business survival, job creation, and new investment decisions. If reforms are implemented without sufficient attention to production, exports, and small businesses, the country may achieve short-term fiscal stability, but long-term economic growth could remain weak.

There is also a political risk that cannot be ignored. If people feel that the burden of reform is not being shared fairly, reform fatigue and public frustration may emerge. If ordinary citizens are expected to make sacrifices while corruption, waste, and political privileges continue, public confidence in the reform process will decline. Therefore, for IMF-supported reforms to succeed, fairness, transparency, and social sensitivity must be firmly ensured alongside economic discipline.

5. The Real Test Before Sri Lanka

Sri Lanka’s real test begins now. Beyond temporary financial relief, the country must now prove that it can build a strong economy that generates income and can withstand external shocks. Therefore, our objective should not be limited to securing the next IMF tranche. While an IMF tranche may provide short-term breathing space, it does not guarantee long-term economic independence or stability. The real objective should be to create an economy that does not have to return to the IMF repeatedly during every crisis, but can stand on its own productive strength, export earnings, and fiscal discipline.

This requires fiscal discipline. However, discipline alone is not enough; economic growth is also necessary. Taxation is necessary. But increasing taxes alone is not a solution; production, investment, and exports must also be expanded. Debt restructuring is necessary. But beyond reducing the debt burden, Sri Lanka must also build an economic foundation that does not depend excessively on borrowing in the future. Sacrifices may be asked of the people. But for those sacrifices to be fair, accountability, transparency, and exemplary conduct from leaders are also essential.

Economic recovery cannot be sustained in the long term through financial assistance alone. Such support can provide breathing space during a crisis, but a country is rebuilt on the strength of its own institutions, productive capacity, export competitiveness, and public trust. Therefore, what Sri Lanka needs today is strong institutions, income-generating industries, a broader export base, food security, energy security, and a system of governance that people can trust.

6. Policy Priorities for Sustainable Recovery

Sri Lanka must now move from crisis management to national transformation. First, fiscal discipline should continue, but it must be fair. Revenue mobilisation should not rely only on increasing taxes on the same groups of people. The tax base must be broadened, tax administration must be improved, and tax evasion must be reduced.

Second, social protection must be strengthened. The most vulnerable groups should be protected through well-targeted assistance. Reforms will be more acceptable if people feel that the poor, elderly, disabled, and low-income families are not abandoned.

Third, state-owned enterprise reform should be carried out with transparency and public accountability. The objective should not merely be privatisation, but efficiency, professionalism, financial discipline, and better service delivery.

Fourth, Sri Lanka must prioritise export-led growth. The country cannot build a stable future by depending mainly on borrowing, remittances, and consumption. Agriculture, tourism, manufacturing, IT services, logistics, education, and value-added exports must become central pillars of national development.

Fifth, governance reform is essential. Without reducing corruption, political interference, wasteful expenditure, and weak implementation, no IMF programme can create lasting recovery. Economic reform and governance reform must move together.

7. From Temporary Relief to Lasting Recovery

The IMF decision gives Sri Lanka an important opportunity. It provides the country with space to strengthen economic stability, rebuild international confidence, and move forward with essential reforms. However, it is not a guarantee of success. It is only a step that gives the country some breathing space. It is now Sri Lanka’s responsibility to use that space wisely, with discipline and accountability to the people.

The country must now decide whether it will continue the old cycle of crises, debt, temporary relief, and political blame, or whether it will build a new national programme based on discipline, productive capacity, fairness, and accountability.

At this moment, true success cannot be measured by the amount of money received. It must be measured by whether Sri Lanka can build an economy that produces more, exports more, saves more, is governed better, and protects its people more effectively. The real victory is not receiving IMF relief, but building a strong national economy that will not depend excessively on such relief in the future.

Public Appeal: Let Us Choose a Programme, Not a Personality

This US$695 million will not solve every problem in our country. It may provide temporary financial relief and support the continuation of reforms, but it cannot replace the hard work required to build a productive, disciplined, inclusive, and self-reliant economy.

Therefore, this is the right time for all Sri Lankans to rise above narrow political loyalties and support a clear policy direction, a practical reform programme, and a long-term national development agenda — not merely an individual, a party, or a political camp. What Sri Lanka needs today is not the victory of a personality, but the victory of a responsible national programme that can restore confidence, protect the vulnerable, promote production, strengthen exports, ensure accountability, and secure a better future for the next generation. The question before us is simple but decisive: are we ready to make that choice?

by Prof. Ranjith Bandara,
PhD (Qld.,)

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