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Experience as an Advisor to the Government on Productivity Promotion

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Late CV Gooneratne and wife. A minister who greatly supported NIBM

LESSONS FROM MY CAREER: SYNTHESISING MANAGEMENT THEORY WITH PRACTICE – PART 26

History of Productivity Promotion in Sri Lanka

Several events and activities converged, prompting the Ministry of Industrial Development to launch a productivity promotion drive named the National Productivity Year. One was the visit of a team from the Asian Productivity Organisation (APO), who were concerned that productivity promotion was not being actively pursued. They were unhappy that the National Institute of Business Management (NIBM), which was created to qualify for Sri Lanka’s membership in the Asian Productivity Organisation (APO), was no longer productivity-focused. The APO is an inter-governmental body established to reduce the productivity gap between Western countries and the Asia Pacific region countries, led by Japan.

The other event was a pronouncement by the industry/banking veteran, Mr Maxi Prelis, who highlighted that Sri Lanka’s productivity was very low compared with developed and middle-income countries. This was extensively reported in the media.

The NIBM, which was initially known as the Management Development and Productivity Centre (MDPC), was expected to promote productivity nationwide. Very soon, after it changed its name to the National Institute of Management (NIM), it shifted its focus to computer and marketing education, and productivity was largely forgotten. It still remained as the representative of the APO and handled the nominations for APO training programmes. Later, the institution became known as the National Institute of Business Management (NIBM) after an amendment to its Act.

This name change prompted some hilarious comments. One said that as NIM, they hardly had work and were called “Nikang Inna Minissu” (idle people). After the name change to NIBM, they could no longer be idle and were now called “Nikang Inna Beri Minissu. NIBM could not be blamed for focusing on computer and marketing courses, which were the needs of the time and money spinners. They found that this is the best way to meet the new rule of the Finance Ministry, which requires them to earn their own upkeep.

It was natural for them to forget productivity promotion, which was not a money spinner though essential for the country. This is a good example of a penny-wise pound-foolish decision by the government. In many countries in Asia, their National Productivity Organisations (NPOs) are funded by the government and carried out useful work. In fact Singapore at that time claimed that a significant part of GDP growth came from productivity improvement.

Challenging the Ministry’s Productivity Programme

I was continuing my productivity seminars and consultancy and was quite happy with the flexibility I had. Noting the contents of the programme enunciated by the Ministry, and realising that the Ministry was on the wrong track regarding the activities of the National Productivity Year 1996, I wrote an article tracing the history of the productivity movement in Sri Lanka, how it had derailed, and what needed to be done. It was critical of the programme that was formulated. This was published in the Ceylon Daily News.

NIBM campus

Early that morning, the Secretary of the Ministry of Industrial Development called me. It was around 6:30 in the morning, after he had read my article. When he introduced himself, I was a little startled. I thought he was going to sue me for the contents of my article. It was far from that. He said, “Why don’t you join us and help us with the National Productivity Year programme without being on the side and criticising our efforts. I met him later in the day, and he offered me LKR 10,000/- a month for three half days a week. I knew this would ruin my own consultancy practice and reduce my earning capacity. Still, I agreed, as it was a national effort. Later on, it became almost a full-time assignment, although I was paid only for three half days.

Later, I was asked to have a chat with the Minister, Hon. C.V. Gooneratne, a very charming and genial personality. I had a long chat and showed him the details of seminars I was conducting under my company, Productivity Techniques (Pvt) Ltd. He showed great interest. My appointment had to be approved by the cabinet. Later, the Minister informed me that some cabinet ministers opposed my appointment because they held the view that I was a UNP man, simply because I had held the Chairmanship of the ETF Board during the UNP era. Apparently, the Minister had defended me, saying that he would take full responsibility. My appointment was approved. This marked the beginning of my journey in promoting productivity across the nation.

Life at the Ministry of Industrial Development

I was asked to report for work on a particular day, only to be told that they had yet to find a place for me in the office and find a table. I worked from home for a week or two using my personal resources. Later, I was given an office and a huge table shaped like a cashew nut. It was the table that Minister G. G. Ponnambalam used when he was the Minister.

I began to understand how government offices worked when I needed some sheets of paper to create drafts. I even signed the requisition form, but the papers were not forthcoming. The peon informed me that my requisition would be fulfilled on the following Thursday, as stationery is issued only on Thursdays to prevent misuse. I didn’t understand the logic. I had no alternative but to go home and bring papers for me to work on.

The next day, I visited the accounts department and reviewed the figures. The electricity cost was enormous, while the cost of stationery was minimal. Still, their system focus was on saving paper and keeping the air-conditioned room doors ajar thereby guzzling kilowatt hours of electricity. None had created a Pareto chart to identify the significant costs; instead, they focused on trivial ones.

I was assigned one staff member, and then another, and we collectively referred to our unit as the National Productivity Secretariat (NPS). This is how the NPS was formed, which now has a staff of over 600. There was a Productivity Steering Committee, which met periodically to provide us with guidance. We commenced a three-pronged approach to promoting productivity. One was a national campaign on mass media with talks on productivity. This was aimed at the general public and followed the method Singapore used so that the concept of getting more with less effort would catch on.

Fortunately, during this time, I learned that the BOI was also preparing a productivity campaign. I insisted that I must see the contents of their campaign so that it would be aligned with our campaign message. I was horrified when the first poster was presented by the advertising agency. It said something like Let’s improve productivity and let us shed one more drop of sweat. This was entirely against what we were promoting, which is that productivity yields more output with less effort. I asked the union member of our Steering Committee, and he totally agreed with my views. BOI decided to drop the campaign.

The second objective was to hold discussions and brief explanatory seminars for CEOs and senior executives of companies, as well as trade unions. We found several misconceptions among the private sector executives. The unions too had misconceptions and a fundamentally flawed view of productivity. The Ministry also took the unions on visits to BOI factories to demonstrate the good working conditions and facilities for the workers. The third strategy was to convince professional organisations, clubs and other non-commercial organisations to promote some activities related to productivity based on their profession.

All these were very successful. An example of the change of attitude of labour unions was seen when they held a conference on productivity. One union even went to the extent of saying that in the current globalised economy, the enemy is not management, but rather the external competitor. They promoted better labour-management relations. Despite this, there was one labour leader who said, “Productivity is bullshit, and labour-management relations should never be encouraged”. He went on to say that the labour must always be against management. There was no way he could be convinced to change his attitude.

The CEOs were taken on a field visit to Ceylon Tobacco Company, which had totally changed its attitude and had become an organisation with industrial harmony. The labour union also made a presentation. They admitted that the management had “opened their eyes” and now all were better off. Even at the end of the visit, there were die-hard CEOs who were sceptical and openly stated that labour could never be trusted.

The programmes for the general public were also well received. There were stories of how even shopkeepers rearranged their shops according to the 5S principles after listening to our radio programmes. I had a personal experience when a retired domestic aide visited us and stayed with us. When I came home after work and opened the fridge, I was surprised to see that everything was neatly arranged. I was informed that this lady came to Colombo from Matara, and the bus had the radio on, playing one of our weekly talks on productivity. The talk focused on the second step of the 5S method. This inspired her to try her hand at arranging based on the 5S method. I was surprised that the bus driver had such a talk on the sound system instead of a deafening blaring noise in the guise of music.

There were also some negative issues that I recall. One day, after a radio talk that went on the air, I was at home when the phone rang, and it was a complaint. “Mr Wijesinha, what you said makes sense, but the Ministry does not practice what you preach, because the large toilet on the Minister’s floor is used as a dump for old and discarded furniture”. I had no answer. I was only an advisor and had no authority to change. The incident occurred after my first monthly staff meeting, chaired by the Minister, when I pointed out that the first thing people see when they enter the Ministry from the Duplication road side is the broken chair of the security guard, with the rattan half removed.

I also pointed out the untidy wires, which were all loosely spread at the front of the building, giving it a very untidy appearance. The Chief Security Officer’s response was that the broken chair was deliberately placed at the gate because if a good chair is used, the security guard will sit on it comfortably and fall asleep. This was accepted, and the broken chair continued for months. That is why I decided to keep my mouth shut.

The Minister became the Productivity Promotion Champion

The Minister quickly learned all the productivity concepts and became familiar with the 5S methodology’s five steps. We had many seminars to promote productivity techniques, and he would always listen to my lecture and take notes. Gradually, he would, in his opening remarks, give my full lecture, leaving my lecture redundant. At least we had one person committed to productivity. Once, he called me to his office and told me, “We are lecturing others on productivity techniques, but why not implement them in the ministry too?”.

Thereafter, we initiated quality circles and 5S initiatives within the Ministry. There was excitement when we announced the inter-department 5S competition. On the day of the 5S audit with external auditors, the Minister also decided to join. He entered the room of an assistant secretary and found the place very disorganised and untidy. The Minister looked at me and said, “Sunil, what do you say in your seminars – is it that a cluttered mind creates a cluttered workplace or the other way round?”.

I didn’t open my mouth, but my popularity in the Ministry was going down a steep slope. Not everyone was enamoured by this new buzz of productivity. The Minister continued to other departments, asking them to open their drawers and looked into cupboards. Some had not taken notice of the competition at all and had not expected the Minister to visit and conduct an audit. A few other departments had performed very well. I recall that the Accounts Department won the contest the first time.

On the Minister’s instructions, we organised a full-day workshop on the progress of all SOEs under the Ministry. While some had implemented productivity techniques to some extent, others were grumbling that they were too busy. In fact, they were busy putting out fires and wasting effort because of low productivity. Some chairmen directly told me that they had enough matters on their plates without having to focus on productivity as well. I disagreed, having experienced the benefits of productivity first-hand, particularly during my tenure as Chairman of the ETF Board.

How the JASTECA 5S award started

The professional associations took the idea up very well. The Institute of Supply Management held its conference on the theme of productivity. The Institute of Dental Specialists also held its conference with a productivity theme, prompting many amused contacts of mine, who inquired about what dental productivity meant. Some even asked whether it represents a ratio of the number of teeth pulled out per hour. The accounting institutes and the Institution of Engineers also implemented some activities.

At that time, I was the Senior Vice President of the Japan Sri Lanka Technical and Cultural Association (JASTECA). At the Ministry, we decided to request that JASTECA hold a 5S competition. I brought this to the next committee meeting of JASTECA, and it was agreed. A great well-wisher and a regular resource person, Mr Taiki Akimoto, who introduced us to 5S in a short one-hour session during one of his seminars on behaviour modelling, had suddenly passed away, the committee decided to organise the competition as the Taiki Akimoto 5S Award. Initially, the award ceremony was organised jointly with the Ministry of Industrial Development.

The next episode will contain other stories I experienced as the advisor on productivity.

by Sunil G Wijesinha
(Consultant on Productivity and Japanese Management Techniques
Retired Chairman/Director of several Listed and Unlisted companies.
Awardee of the APO Regional Award for promoting Productivity in the Asia Pacific Region
Recipient of the “Order of the Rising Sun, Gold and Silver Rays” from the Government of Japan.
He can be contacted through email at bizex.seminarsandconsulting@gmail.com)



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We banned phone; we kept surveillance; teenagers noticed

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THE GREAT DIGITAL RETHINK : PART III OF V

The Teenage Battleground

Secondary school has always been a battlefield of sorts, competing loyalties, volatile friendships, the daily theatre of adolescent identity. But in the past decade it acquired a new and uniquely modern dimension: the smartphone in the pocket, the social media feed refreshing every few minutes, the group chat that never sleeps.

The numbers, when they arrived, were not subtle. PISA 2022 data, drawn from students in over 80 countries, found that around 65 percent of students reported being distracted by their own digital devices in mathematics lessons, and 59 percent said a classmate’s device had pulled their attention away. Students who reported being distracted by peers’ phones scored, on average, 15 points lower in mathematics than those who said it never happened. Fifteen points is not a rounding error. It is a meaningful, measurable, recurring gap that appears consistently across countries with very different education systems.

Governments took notice of the situation. In a pattern that will be familiar to readers of this series, a number of them reached for the most visible, most politically satisfying tool available – the ban in Finland, Sweden, Australia, and France. The UK, in a characteristically chaotic way, involving years of guidance, and pilots, eventually legalised. One by one, secondary schools across the wealthy world have begun confiscating phones at the gate, storing them in pouches, locking them up in boxes, and discovering, somewhat to their own surprise, that this works.

When the Ban Actually Works

A 2025 survey of nearly a thousand principals in New South Wales found that 87 percent reported students were less distracted after the ban was introduced, and 81 percent said learning had improved. South Australia recorded a 63 percent decline in critical incidents involving social media and a 54 percent reduction in behavioural issues. These are striking figures, and they align with what common sense would predict: if you remove the distraction, concentration improves.

What is also emerging from Australian, Finnish and Swedish schools is something less expected and more interesting: the character of break times has changed. Teachers and principals report that when phones disappear from pockets, something older reappears in their place. Students talk to each other. They play. They argue, resolve disputes, make and lose friendships in the ancient, messy, face-to-face way that adolescence has always demanded but that the smartphone had been quietly crowding out. The playground, it turns out, was not broken. It was just occupied.

Sweden’s nationwide policy, coming into effect in autumn 2026, will require schools to collect phones for the full day, not just during lessons. This is the more ambitious intervention, and the one that addresses what the Australian experience has already demonstrated: that the damage done by constant connectivity is not confined to the classroom. It happens at lunch. It happens between periods. It happens in the 10 minutes before the bell when a group of 14-year-olds are supposedly in the building but are actually, in every meaningful sense, somewhere else entirely.

87% of Australian principals said students were less distracted after the ban. The other 13% presumably hadn’t tried it yet.

But Here Is What Nobody Wants to Talk About

Here is the part that the ministers’ press releases do not mention. While the smartphone, the device the student owns, controls and carries, has been banned from the secondary classroom, the institution’s own digital apparatus has been expanding at an impressive pace throughout the same period. Learning management systems now mediate most of secondary school life in high-income countries. Assignments are distributed digitally. Work is submitted digitally. Attendance is recorded digitally. Grades are published on portals that students, parents and administrators can access in real time. The school that bans your personal phone may simultaneously be recording precisely how long you spent on each page of the online reading assignment last Tuesday.

Learning analytics, the practice of harvesting data from student interactions with digital platforms to inform teaching and school management, has moved from a niche research curiosity to a mainstream tool. PISA 2022 data show that virtually all 15-year-olds in OECD countries attend schools with some form of digital infrastructure. Behind that infrastructure sits a layer of data collection that most students and many parents are only dimly aware of: log-in times, click patterns, quiz scores, time-on-task measures, platform engagement metrics. These are assembled into dashboards, fed into algorithms, and used, with genuinely good intentions, in most cases, to identify struggling students early.

The genuinely good intentions do not resolve the underlying problem. Research on learning analytics raises serious concerns about privacy, about the opacity of algorithmic decision-making, and about what happens when a teenager is quietly flagged as ‘at risk’ by a system they never knew was watching. The irony of secondary de-digitalisation is not lost on those paying attention: we have removed the device the student controls, while expanding the systems that observe and score them.

The AI Proctor in the Room

During the pandemic, when exams moved online, a number of education authorities adopted software that monitored students through their webcams, flagging unusual eye movements, background sounds, or the presence of other people in the room as potential signs of cheating. The systems were sold as efficient, scalable and objective. They were, in practice, frequently absurd.

The software flagged students who looked away from the screen to think. It penalised students whose rooms were small, shared or noisy, disproportionately those from less privileged backgrounds. It struggled with students of colour, whose features were less well-represented in the training data. It was contested, appealed, gamed, and eventually abandoned by a significant number of institutions that had initially adopted it with enthusiasm. By 2024 and 2025, the rollback was visible. Universities and some school systems were returning, with minimal fanfare, to supervised in-person examinations, handwritten, on paper, in a room with a human invigilator, partly to solve the AI cheating problem, partly to solve the AI proctoring problem. The wheel had, somewhat dizzingly, turned full circle.

We banned the student’s phone. We kept the webcam that monitors their eye movements during exams. Progress.

The Equity Problem That Bans Cannot Solve

Beneath the headline politics of phone bans lies a more uncomfortable question about who, exactly, benefits from secondary school de-digitalisation, and who pays a cost that is rarely acknowledged. The argument for phone bans on equity grounds is real: unrestricted phone use in schools amplifies social hierarchies. The student with the latest device, the most followers, the most compelling social media presence occupies a different social universe from the student without. Removing phones during the school day levels that particular playing field.

But the equity argument runs the other way, too, once you look beyond school hours. Secondary schools in high-income systems have steadily increased their dependence on digital platforms for homework, assessment preparation and communication. If a school bans phones during the day and then sends students home to complete digitally-mediated assignments, the burden of that homework falls unequally.

There is also the growing phenomenon of what researchers are beginning to call ‘shadow digital education’: the private online tutoring platforms, AI-powered study tools and exam preparation services that affluent families use to supplement and extend what school provides. While secondary schools debate whether students should be allowed to use AI for essay drafts, some of those students’ wealthier peers are already using it, skillfully, privately and with considerable academic advantage. The phone ban, whatever its merits in the classroom, does not touch this market. It may even quietly accelerate it.

Two Worlds, Still Diverging

In Finland, Sweden and Australia, the policy conversation is about how to manage the excesses of a generation that grew up digitally saturated, how to restore concentration, how to protect wellbeing, how to ensure that institutional platforms serve learning rather than merely monitor it.

Elsewhere, across much of Southeast Asia, Sub-Saharan Africa, Latin America and parts of the Middle East, the secondary school conversation remains anchored to a different set of concerns: how to get enough devices into enough classrooms, how to train enough teachers to use them, how to ensure that the smartboard contract does not expire before the teachers learn to turn it on. Vendors are present, helpful and commercially motivated. Development banks are funding rollouts. Government ministers are visiting showrooms. The playbook being followed is the one that Finland and Sweden wrote in 2010 and are now revising.

SERIES ROADMAP:

Part I: From Ed-Tech Enthusiasm to De-Digitalisation | Part II: Phones, Pens & Early Literacy | Part III: Attention, Algorithms & Adolescents (this article) | Part IV: Universities, AI & the Handwritten Exam | Part V: A Critical Theory of Educational De-Digitalisation

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A Buddhist perspective on ageing and decay

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Buddhism is renowned for its profound insights into ageing and decay, known as jara in Pali. Through its teachings and practices, Buddhism cultivates the wisdom and mental clarity necessary to accept and prepare for the inevitability of ageing. The formula jati paccayaā jaraāmaranaṃ translates to “dependent on birth arise ageing and death,” clearly illustrating that birth inevitably leads to ageing and death, accompanied by sorrow, lamentation, pain, grief, and despair. Without birth, there would be no ageing and death. Therefore, ageing is a fundamental aspect of suffering as outlined in the Four Noble Truths.

Buddhism encourages us to confront the realities of ageing, illness, and mortality head-on. Old age is recognised as an unavoidable aspect of dukkha (suffering). Old age is fundamentally and inextricably entwined with the concept of impermanence(annicca), serving as the most visible, undeniable evidence that all conditioned things are in a state of flux and decay. Ageing, illness and death create in us an awareness not only of dukkha but also impermanence. The Buddha taught, “I teach suffering and the way out of suffering.” Here, “suffering” encompasses not only physical pain but also the profound discomfort that arises when our attempts to escape or remedy pain stemming from old age are thwarted. Instead of fearing old age, Buddhists are encouraged to embrace it, release attachments to youth, and cultivate wisdom, gratitude, and inner peace.

Ageing is a complex process shaped by both genetic and environmental factors. From a Buddhist viewpoint, we should perceive the body realistically. Fundamentally, the human body can be seen as a vessel of impurities, subject to old age, disease, decay, and death. The natural process of ageing is gradual, irreversible, and inevitable. Every individual must ultimately come to terms with the reality of growing old, as change is an essential fact of life.

In Buddhism, impermanence (anicca) holds a central position. Everything that exists is unstable and transient; nothing endures forever—including our bodies and all conditioned phenomena. Thus, anicca, dukkha, and anattaā (non-self or selflessness) are the three characteristics common to all conditioned existence. The reality of impermanence can often evoke pain, yet a wise Buddhist fully understands and appreciates this simple yet profound truth.

The Greek philosopher Heraclitus encapsulated this notion when he stated, “No man ever steps in the same river twice, for it is not the same river, and he is not the same man.” Old age was one of the four sights that prompted Prince Siddhartha Gautama to seek enlightenment, alongside sickness, death, and the wandering ascetic. Coming to terms with these aspects of existence was pivotal in his transformation into the Buddha.

At Sāvatthi, King Pasenadi of Kosala once asked the Buddha, “Venerable sir, is there anyone who is born who is free from old age and death?” The Buddha replied, “Great King, no one who is born is free from ageing and death. Even those affluent khattiyas—rich in wealth and property, with abundant gold and silver—are not exempt from ageing and death simply because they have been born.” This interaction underscores the universal challenge of ageing, transcending societal divisions of wealth or status.

Ageing presents one of the greatest challenges in human experience. Physically, the body begins to deteriorate; socially, we may find ourselves marginalised or discounted, sometimes subtly and sometimes explicitly. Some may encounter dismissal or condescension. Ageism remains one of the most persistent forms of discrimination. The physical and social difficulties associated with ageism can undermine our self-image and sense of self-worth. Common perceptions often portray old age as a stage where the best years are behind us, reducing the remaining years to a form of “bonus years” frequently presented in sentimental or patronising ways.

The suffering associated with ageing can serve as a powerful motivation to engage in practices that directly address this suffering, allowing us to gradually transform it or, at the very least, make it more bearable and manageable. We must recognise that this principle applies equally to our own bodies. The human body undergoes countless subtle changes every moment from the time you are born, never remaining the same even for two consecutive moments, as it is subject to the universal law of impermanence.

Whatever your age. However young-looking you try to remain through external means, the truth is that you are getting older every minute. Every minute, every second, our lives are getting shorter and closer to death. Since you were conceived in your mother’s womb, your life is getting shorter. We see external things going by rapidly, but never reflect on our own lives. No matter what we do, we cannot fully control what happens in our lives or to our bodies. With time, we all develop lines and wrinkles. We become frail, and our skin becomes thinner and drier. We lose teeth. Our physical strength and sometimes our mental faculties decline. In old age, we are subject to multiple diseases.

Many people live under the illusion that the body remains constant and is inherently attractive and desirable. Modern society, in particular, has become increasingly obsessed with the quest for eternal youth and the reversal of the ageing process. Many women feel inadequate about their physical appearance and constantly think about how to look younger and more attractive. Enormous sums of money are spent on cosmetic procedures, skincare, and grooming products to remain presentable and desirable. The global beauty and cosmetics industries thrive on this ideal, often promoting unrealistic standards of beauty and youthfulness. But no amount of products available in the world can truly restore lost youth, as time inevitably leaves its mark.

Therefore, in Buddhism, mindful reflection on ageing and the human body is considered essential for overall well-being. This contemplation provides insight into impermanence as we navigate life. Reflecting on the nature of the body—its true condition and its delicate, changing state—is a fundamental aspect of the Buddha’s teachings. By understanding the body accurately, we support both wisdom and peace of mind.

Buddhism recognises forty subjects of meditation which can differ according to the temperaments of persons. Contemplation of the human body is one of them. Of all the subjects of meditation, reflection on the human body as a subject is not popular among certain people particularly in the western world as they think such contemplation would lead to a melancholic morbid and pessimistic outlook on life. They regard it as a subject that may be somewhat unpleasant and not conducive to human wellbeing. Normally, people who are infatuated and intoxicated with sensual pleasures develop an aversion towards this subject of meditation. In Buddhism this mode of contemplation is called asuba bhavana or mindfulness of the impurities of the body. It is all about our physiology and individual body parts and organs internal as well as external. This subject of meditation is unique to the Buddhist teachings.

To appreciate the body as it truly is, we must set aside preconceived notions and engage in a calm and honest inquiry: Is this body genuinely attractive or not? What is it composed of? Is it lasting or subject to decay?

In embracing the teachings of Buddhism, we find the wisdom to navigate the journey of ageing with grace, transforming our understanding of this natural process into an opportunity for growth and acceptance.

When our fears centre on ageing, decay, and disease, we cannot overcome them by pretending they do not exist. True relief comes only from facing these realities directly.

Reflecting on the body’s unattractive and impermanent nature can help us gain a realistic perspective. In an age when the mass media constantly bombards people with sensual images, stimulating lust, greed, and attachment, contemplation of the body’s true nature can bring calm and clarity.

All beings that are born must eventually die. Every creature on earth, regardless of status, shares this common fate. After death, the body undergoes a series of biological changes and decomposes, returning to the earth as organic matter. It is part of the earth and ultimately dissolves back into it.

Understanding this, we can meet ageing, decay, and death with greater wisdom, less fear, and a deeper sense of peace.

by Dr. Justice Chandradasa Nanayakkara

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Partnering India without dependence

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President Dissanayake with Indian PM Modi

Indian Prime Minister Narendra Modi once again signaled the priority India places on Sri Lanka by swiftly dispatching a shipload of petrol following a telephone conversation with President Anura Kumara Dissanayake. The Indian Prime Minister’s gesture came at a cost to India, where there have been periodic supply constraints and regional imbalances in fuel distribution, even if not a countrywide shortage. Under Prime Minister Modi, India has demonstrated to Sri Lanka an abundance of goodwill, whether it be the USD 4 billion it extended in assistance to Sri Lanka when it faced international bankruptcy in 2022 or its support in the aftermath of the Ditwah cyclone disaster that affected large parts of the country four months ago. India’s assistance in 2022 was widely acknowledged as critical in stabilising Sri Lanka at a moment of acute crisis.

This record of assistance suggests that India sees Sri Lanka not merely as a neighbour but as a partner whose stability is in its own interest. In contrast to Sri Lanka’s roughly USD 90 billion economy, India’s USD 4,500 billion economy, growing at over 6 percent, underlines the vast asymmetry in economic scale and the importance of Sri Lanka engaging India. A study by the Germany-based Kiel Institute for the World Economy identifies Sri Lanka as the second most vulnerable country in the world to severe food price surges due to its heavy reliance on imported energy and fertilisers. Income per capita remains around the 2018 level after the economic collapse of 2022. The poverty level has risen sharply and includes a quarter of the population. These indicators underline the urgency of sustained economic recovery and the importance of external partnerships, including with India.

It is, however, important for Sri Lanka not to abdicate its own responsibilities for improving the lives of its people or become dependent and take this Indian assistance for granted. A long unresolved issue that Sri Lanka has been content to leave the burden to India concerns the approximately 90,000 Sri Lankan refugees who continue to live in India, many of them for over three decades. Only recently has a government leader, Minister Bimal Rathnayake, publicly acknowledged their existence and called on them to return. This is a reminder that even as Sri Lanka receives support, it must also take ownership of its own unfinished responsibilities.

Missing Investment

A missing factor in Sri Lanka’s economic development has long been the paucity of foreign investment. In the past this was due to political instability caused by internal conflict, weaknesses in the rule of law, and high levels of corruption. There are now significant improvements in this regard. There is now a window to attract investment from development partners, including India. In his discussions with President Dissanayake, Prime Minister Modi is reported to have referred to the British era oil storage tanks in Trincomalee. These were originally constructed to service the British naval fleet in the Indian Ocean. In 1987, under the Indo Lanka Peace Accord, Sri Lanka agreed to develop these tanks in partnership with India. A further agreement was signed in 2022 involving the Ceylon Petroleum Corporation and the Lanka Indian Oil Corporation to jointly develop the facility.

However, progress has been slow and the project remains only partially implemented. The value of these oil storage tanks has become clearer in the context of global energy uncertainty and tensions in the Middle East. Energy analysts have pointed out that strategic storage facilities can provide countries with greater resilience in times of supply disruption. The Trincomalee tanks could become a significant strategic asset not only for Sri Lanka but also for regional energy security. However, historical baggage continues to stand in the way of Sri Lanka’s deeper economic linkage with India. Both ancient and modern history shape perceptions on both sides.

The asymmetry in size and power between the two countries is a persistent concern within Sri Lanka. India is a regional power, while Sri Lanka is a small country. This imbalance creates both opportunities for partnership and anxieties about overdependence. The present government too has entered into economic and infrastructure agreements with India, but many of these have yet to move beyond initial stages. This has caused frustration to the Indian government, which sees its efforts to support Sri Lanka’s development as not being sufficiently appreciated or effectively utilised. From India’s perspective, delays and hesitation can appear as a lack of commitment. From Sri Lanka’s perspective, caution is often driven by domestic political sensitivities and concerns about sovereignty.

Power Imbalance

At the same time, global developments offer a cautionary lesson. The behaviour of major powers in the contemporary international system shows that states often act in their own interests, sometimes at the expense of smaller partners. What is being seen in the world today is that past friendships and commitments can be abandoned if a bigger and more powerful country can see an opportunity for itself. The plight of Denmark (Greenland) and Canada (51st state) give disturbing messages. Analysts in the field of International Relations frequently point out that power asymmetries shape outcomes in bilateral relations. As one widely cited observation by Lord Parlmeston, a 19th century prime minister of Great Britain is that “nations have no permanent friends or allies, they only have permanent interests.” While this may be an overly stark formulation, it captures an underlying reality that small states must navigate carefully.

For Sri Lanka, this means maintaining a balance. It needs to clearly acknowledge the partnership that India is offering in the area of economic development, as well as in education, connectivity, and technological advancement. India has extended scholarships, supported digital infrastructure, and promoted cross border links that can contribute to Sri Lanka’s long term growth. These are tangible benefits that should not be undervalued. At the same time, Sri Lanka needs to ensure that it does not become overly dependent on Indian largesse or drift into a position where it functions as an appendage of its much larger neighbour. Economic dependence can translate into political vulnerability if not carefully managed. The appropriate response is not to distance itself from India, but to broaden its partnerships. Engaging with a diverse range of countries and institutions can provide Sri Lanka with greater autonomy and resilience.

A hard headed assessment would recognise that India’s support is both genuine and interest driven. India has a clear stake in ensuring that Sri Lanka remains stable, prosperous, and aligned with its broader regional outlook. Sri Lanka needs to move forward with agreed projects such as the Trincomalee oil tanks, improve implementation capacity, and demonstrate reliability as a partner. This does not preclude it from actively seeking investment and cooperation from other partners in Asia and beyond. The path ahead is therefore one of balanced engagement. Sri Lanka can and should welcome India’s partnership while strengthening its own institutions, fulfilling its domestic responsibilities, and diversifying its external relations. This approach can transform a relationship shaped by asymmetry into one defined by mutual benefit and confidence.

by Jehan Perera

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