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Midweek Review

Growing foreign dependency and India’s USD 4 bn lifeline

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Baglay on an inspection tour of the State Printing Corporation

By Shamindra Ferdinando

The Japanese embassy and UNICEF (United Nations Children’s Fund, previously known as United Nations International Children’s Emergency Fund), on 16 March, 2023, issued a joint statement that dealt with the impact the developing political-economic-social crisis is having on the poor in Sri Lanka.

The statement focused on the suffering of the children and measures taken by UNICEF, in consultation with the Governments of Japan and Sri Lanka, to provide relief to the needy.

However, what really captured public attention was the declaration made by the Japanese Ambassador, in Colombo, Mizukoshi Hideak, that with the latest contribution, amounting to USD 1.8 mn, the total Japanese financial assistance, provided through UNICEF alone, exceeded USD 3.8 mn, since the beginning of last year. That is definitely a significant package provided through a single UN agency, particularly against the backdrop of the unceremonious cancellation of the Japan- funded Light Rail Transit (LRT) project, in late Sept., 2020, by the Gotabaya Rajapaksa Government.

The directive, in this regard, was issued on 21 Sept., 2020, by Dr. P. B. Jayasundera, in his capacity as Secretary to the President, to the then Transport Secretary, Monti Ranatunga. That move ruined Sri Lanka’s relations with Japan.

Whoever advised the then President Gotabaya Rajapaksa to terminate the project, without consulting Japan, as head of the Cabinet-of-Ministers, he couldn’t absolve himself of the responsibility for the ruination of vital relationship with Tokyo. Had it not been the case, Japan, most probably, would have delivered a substantial assistance to Sri Lanka, at the onset of the ongoing unprecedented crisis.

Sri Lanka made a failed bid to secure as much as USD 3.5 bn loan from Japan, during the tenure of Sanjiv Gunasekara as Sri Lanka’s Ambassador in Tokyo. Gunasekara, a close associate of President Gotabaya Rajapaksa, resigned in the wake of the 09 May, 2022, violence, that gave a turbo boost to the campaign against his government.

Unlike Japan, India provided direct aid in various forms to Sri Lanka, struggling to cope up with what became an insurmountable crisis to overcome on our own. India has repeatedly declared that the continuing assistance is in line with Premier Narendra Modi’s much touted ‘Neighbourhood First’ policy. Sri Lanka received concessional credit facility, amounting to USD 1 bn, in March last year. In addition to that, by the second week of March this year, Sri Lanka received other lines of credit, worth over USD 3 bn. Therefore, the total Indian assistance is worth over USD 4 bn, a staggering amount as Sri Lanka’s debt before the Japanese and Indian interventions stood at over USD 53 bn. Indian intervention cannot be compared, under any circumstances, with assistance provided by any other country.

The Indian assistance is of immense importance as the International Monetary Fund (IMF), after much deliberation, promised USD 2.9 bn over a period of four years. The delay on the part of China to provide an assurance as regards debt-restructuring support, hindered the finalization of the tripartite agreement involving Sri Lanka, creditors and IMF. Finally, China gave that assurance, in writing, early this month.

Indrajit Coomaraswamy

The situation was so precarious, Sri Lanka couldn’t have even provided the free text books that have been given, annually, to the student population ,from the time of the JRJ regime. Those who had been at the helm of political power, over the past three decades, to varying degrees, ruined the economy, and, by 2021/2022, Sri Lanka was unable to provide even the basic requirements, like cooking gas, kerosene, petrol, etc., as even remittances from our expatriate workers, which in the past amounted to about seven billion dollars per year, dropped drastically due to the illegal underground banking system, hawala/undiyal, hijacking much of it from the normal banks. The government didn’t have the means to provide school text books for the 2023 academic year. In consultation with India, of the USD 1 bn concessional credit facility, over USD 10 mn was utilized by the State Printing Corporation, and private importers, to procure printing paper and other material from India. India met 45% (four mn students) of the total requirement. Indian High Commissioner Gopal Baglay visited the SPC, on 09 March, 2023, to dispatch a consignment of textbooks to schools. Education Minister Dr. Susil Premjayantha joined Baglay. The Indian High Commission statement, issued two days later,, was aptly titled ‘India’s support for text books investment in Sri Lanka’s future.’

The government and the Opposition should be ashamed of their failure to provide for the children’s need.

Perhaps, a Parliamentary Select Committee (PSC) should be appointed to examine the circumstances leading to Sri Lanka’s bankruptcy status. Decades of utterly irresponsible management of the economy, coupled with an explosive mixture of causes – waste, corruption and irregularities – caused the current crisis.

Political parties, represented in Parliament, are responsible for the continuing crisis, to varying degrees.

Controversy over ISBs

The Island discussed some of the issues at hand in last week’s midweek piece, headlined ‘All praise for Lanka’s saviours!

What Dr. Coomaraswamy didn’t say was that as the CB Governor, he was also directly responsible for the Yahapalana government borrowing a record USD 12.5 bn from the international bond market, at high interest rates, from private lenders, primarily in the West. So what did that government achieve with such huge borrowings? All that the Yahapalana regime achieved, with all that money, we cannot see, except to lay the foundation for the current debt crisis?

Our comment on the basis of recent claims that the Governor of the Central Bank, Dr. Coomaraswamy (2016-2019), only told one side of the truth, attracted responses from several parties, including the Central Bank.

Consequently, the writer discussed the borrowing of USD 12.5 bn, and related matters, and was told the following: First, it is important to point out that the Governor, Central Bank, has no authority to approve or undertake any borrowing on behalf of the government. The borrowing limit, in any given year, is set by Parliament. Therefore, the government cannot borrow beyond the limit set by Parliament. In addition, all external borrowing has to be approved by the Finance Minister, and the Cabinet of Ministers. The Governor and the CBSL only have an advisory role. On ISBs, they have marketing and issuance as additional responsibilities once the Cabinet approved the transaction.

It is also important to recognize that ISBs are only one channel for external commercial borrowings. Others include short-term SWAPs, foreign term loans/syndicated loans and external flows into government rupee securities. The article dealt with only one instrument, having ignored the switching that was undertaken during 2015-19 to increase the maturity and reduce the cost of foreign borrowing.

As regards the USD 10 bn increase in ISBs outstanding during 2015-19, USD 5 bn of this increase can be attributed to switching away from shorter term (one year or less) and more expensive SWAPs and highly volatile foreign portfolio investment (hot money) in Government rupee securities to longer term (5 and 10 years) and less costly ISBs. SWAPs were reduced from approximately USD 2.5 bn to USD 500 mn.

Volatile and foreign investment in government rupee securities was reduced from USD 3.5 bn to USD 600 mn. In addition, during the course of 2019, a second ISB of USD 2 bn was issued to create a stronger buffer of external reserves to address the inevitable increase in uncertainty going into elections due shortly thereafter. (The money required for 2019 had been raised through an ISB, issued in March 2019.)

So about USD 7 bn of the USD 10 bn increase in the stock of ISBs outstanding, during 2015-19 may be attributed to increasing the stability and reducing the cost of the ISBs outstanding by switching instruments and raising the buffer provided by external reserves prior to a period of uncertainty, associated with elections.

The remaining increase of USD 3 bn may be partly attributed to the fact that borrowing incurred earlier had not resulted in a sufficient increase and/or saving of foreign exchange. Hence money had to be borrowed to repay debt incurred earlier. In fact, Verite Research found that 89 percent of external debt, repaid during 2015-19, could be accounted for by liabilities incurred prior to 2015.

The adverse debt dynamics were recognized and the Medium Term Debt Management Strategy was published in April 2019 to chart the way to sustainability. In addition, the Active Liability Management Act (2018) was introduced to expand the tools available to the CBSL for managing external debt sustainably. The CBSL, as the economic adviser to the Government, also advocated that there should be a primary surplus in the budget and that non-debt creating inflows (such as exports, remittances, tourism proceeds, FDI, inflows into the CSE and government securities) should be increased to enhance the capacity to service debt while supporting the level of imports necessary to achieve the growth potential of the economy.

They also pointed out that only one of the ISBs, issued during 2015-19, has been settled to date. This amounted to USD 500mn. They expressed the view that it is not possible to sustain the argument that servicing ISBs, incurred during 2015-19 ,led to the standstill in debt repayments in April 2023.

Treasury bond scams and tax cuts

The US embassy released this picture of
Ambassador Chung at an event in
Colombo where the second shipment of
36,000 metric tons of Triple Super
Phosphate (TSP) was handed over to Sri
Lanka. It brings the total of USAID-supported
TSP and urea fertiliser to more than
45,000MT, over the last year.

Sweeping tax concessions to the rich and reduction of VAT, that had been introduced by President Gotabaya Rajapaksa’s government to encourage business in 2019/2020, escalated the financial crisis, leading to the declaration of the state of bankruptcy, two years later. No one in the Gotabaya Rajapaksa’s cabinet dared to challenge such far reaching tax concessions and VAT reduction.

How the loss of as much as Rs 600 bn in revenue, as alleged by the Opposition ,due to tax concessions and reduction of VAT, contributed to the current crisis, should be examined, also taking into consideration (1) Treasury bond scams perpetrated in Feb, 2015 and March 2016 at a time the CBSL has been under the then Prime Minister Ranil Wickremesinghe, in his capacity as Minister of Policy Planning and Economic Affairs (2) Enactment of new Foreign Exchange Act in 2017 in the wake of Treasury bond scams. Critics say the repealing of time-tested exchange control law that has been in place for decades paved the way for exporters to ‘park’ export proceeds overseas. Of the 225 MPs, 94 voted for the new law whereas 18 voted against. In spite of Justice Minister, Dr. Wijeyadasa Rajapakse, PC, taking up this issue, both in and outside Parliament, remedial measures hasn’t been taken, to date. The Finance Ministry owed an explanation as to how it intended to compel the exporters to bring back export proceeds (3) Continuing public-private sector partnership in corrupt practices, particularly mis-invoicing (under invoicing and over invoicing of imports/exports) (4) Pivithuru Hela Urumaya leader Udaya Gammanpila, MP, has moved the Supreme Court against the Central Bank Bill. The Attorney-at-Law alleged that the new law violated Article 3 and 4 of the Constitution hence needing the approval of the people at a referendum. In addition to Gammanpila, Dr. Gunadasa Amarasekera and Jathika Nidahas Peramuna leader Wimal Weerawansa, too, moved the Supreme Court in terms of the Article 121 against the Bill titled ‘Central Bank of Sri Lanka.’ Former JVP MP Wasantha Samarasinghe, on behalf of the Jathika Jana Balavegaya (JJB), too, moved the Supreme Court in this regard.

A warning from Hanke

The country is in a bind. In spite of the execution of the agreement with the IMF later this month, the situation remains dicey. The absence of economic recovery plan continues to cause further instability.

Therefore, the government and the Opposition should seek a consensus on a national action plan, even if Local Government polls cannot be conducted in late April, regardless of the Supreme Court intervention.

Steve Hanke, Professor of Applied Economics, at Johns Hopkins University, in the USA, recently issued a dire warning to Sri Lanka. Appearing on CNBC’s ‘Squawk Box Asia,’ Prof. Hanke declared Sri Lanka needs institutional reforms in order to achieve long-term debt sustainability.

Referring to Sri Lanka and what was described as emerging markets (Argentina and Montenegro), where he played a key role in establishing new currency regime, former economic advisor to US President Ronald Reagan warned “Unless you change the institutions and the rules of the game, governing these countries, they’re always going to remain in the same … situation that they’ve been in for a long time.”

Prof. Hanke added: “In fact, most of the personalities, involved in Sri Lanka ,at the high level, are exactly the same as they’ve been for years. So nothing has changed.”

In other words, those who have ruined Sri Lanka are spearheading the economic recovery process. The American is spot on. Sri Lanka is in a pathetic situation. Those who had systematically brought Sri Lanka to its knees, by pursuing ill-fated policies, emerged as its saviours. That is the bitter truth. The role of the executive, legislature, and judiciary, needs to be examined. Those who have moved the Supreme Court against the Bill, titled ‘Central Bank of Sri Lanka,’ have quite conveniently forgotten how the Yahapalana government, and Central Bank, twice perpetrated Treasury bond scams. What would have Prof. Hanke said if CNBC raised Treasury bonds scams during ‘Squawk Box Asia.’

If not for Deepa Seneviratne, the then head of Public Debt Department, Governor Arjuna Mahendran’s role couldn’t have been proved. Former Auditor General Gamini Wijesinghe said so at an event organized by the Colombo Municipal Council years ago.

Sri Lanka cannot forget Prof. Hanke’s remark in the CNBC programme. “You have to remember that we have a country that since 1965 has had 16 IMF programmes and they’ve all failed. You get temporary relief in anticipation of a bailout. But in the long run … none of these IMF programmes work.”

It would be pertinent to briefly examine how interested parties brazenly protected perpetrators of the Treasury bond scams.

Having named Mahendran as the Governor, regardless of the opposition from President Maithripala Sirisena, those planning to commit the first daylight robbery of the Central Bank moved Deepa Seneviratne to the Public Debt Department as its head, in spite of her not having had any previous experience in the particular division. It seems they had obviously felt comfortable in having a lady officer there they thought they could manipulate her to suit their need. But Seneviratne turned tables on the bond thieves by putting up a note to register her strong opposition to Mahendran’s move. She should have been rewarded for her fearless stand with at least a national honour if not an international one, even from bodies like the UN, the Transparency International, Amnesty International, etc. But it seems that even these international busy bodies have their own political angles.

It would be of pivotal importance to keep in mind that President Sirisena appointed a Commission of Inquiry (CoI) in January 2017, about 10 months after the second robbery, and two years after the first.

The Commission comprised Justice K.T. Chitrasiri, the late Justice P S Jayawardena and retired Deputy Auditor General V. Kandasamy. Sumathipala Udugamsuriya functioned as its Secretary. CoI issued a devastating report that implicated Perpetual Treasuries Limited (PTL) in the Treasury bond scams.

President Sirisena went to the extent of dissolving Parliament, in June 2015, to prevent the Committee on Public Enterprises (COPE) tabling its report on the first bond scam. SLFP leader Sirisena owes an explanation. Justice Chitrasiri’s CoI didn’t inquire into that aspect. Sri Lanka’s response to waste, corruption, irregularities and mismanagement is baffling. Let me end this piece reminding how the Bar Association of Sri Lanka (BASL) secured a substantial sponsorship from Perpetual Treasuries Limited (PTL) deeply mired in a bond scam, in 2016, for the Law Asia Conference during the tenure of its then President Geoffrey Alagaratnam, PC. The BASL never explained why it obtained PTL sponsorship even after the exposure of Treasury bond scams. That partnership also escaped the CoI. The rest is history.

Knowing what is now happening to the US economy with a string of bank failures and unprecedented bailouts, especially due to hoodoo economics it introduced in recent decades, like repeated quantitative easing (blindly printing trillions of dollars leading many to say the dollar is now only good as toilet paper) that has been practiced to ensure its world hegemony, the whole world might be hit with bank failures and even by a depression worse than the one that befell with the stock market crash of 1929. Already the contagion has spread to Europe with some leading banks there also requiring help.

Washington’s debt now stands at USD 31 trillion and climbing, but our own debt burden is still under USD 55 billion. So if we can get our exporters, who have stashed export earnings abroad, to bring them back, the picture here will not be as scary as it is made out to be. Even Minister Wijeyadasa Rajapakse has said that our export proceeds that have been parked overseas is in the region of USD 55 billion.

Soonwe will start receiving the IMF bailout, but our economic whiz kids have not done anything to plug the massive foreign exchange leak that has been freely draining foreign currency from the country, since the nineties, by way of private foreign exchange dealers who have been allowed to sell foreign exchange to any Tom, Dick and Harry, including drug dealers, to take their sales proceeds out of the country!

We would also like to ask the relevant authorities what they have done to recover monies stashed abroad by Lankans illegally that were exposed in great detail by the likes of Panama Papers and Pandora Papers.



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Midweek Review

A retired General’s narrative

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A bus belonging to the SLA set on fire outside President Gotabaya Rajapaksa’s Pangiriwatte residence on 31 May, 2022

Regime change:

Egodawele

Gemunu Watch veteran retired Maj. Gen. K.B. Egodawele painted a bleak picture of the overall failure on the part of the Defence Ministry, National Security Council and the armed forces to deal with the Pangiriwatte, Mirihana, violent protest on 31, March, 2022. Had those responsible for overall security taken tangible measures, after the Pangiriwatte letdown, the rapid deterioration of the situation, leading to the 9 July, 2022, assault on the President’s House, could have been averted, he opined. The author explained how in the absence of even a basic plan to prevent large scale public movement/gathering, the conspirators succeeded in bringing several hundred thousand people to Colombo, that included even a train load of activists from Kandy. Egodawele quite rightly asserted that the hoodwinked ordinary innocent people had been the real strength behind the regime change operation. Egodawele raised a spate of pertinent questions regarding the security aspects, with the focus on the 09 July, 2022, assault, taking into consideration various influencing factors, including Field Marshal Sarath Fonseka’s appeal to the armed forces not to point guns at the public as they didn’t want a repetition of 9 May, 2022, at Galle Face.

Whatever the impact of politicians and religious leaders urging the armed forces not to intervene, the war-winning Army Chief’s appeal may have influenced the military and even some members of the National Security Council.

By Shamindra Ferdinando

Maj. Gen. (retd.) K.B. Egodawele believes the ban on import of chemical fertilisers and agrochemicals, in April/May 2021, that led to staggering drop in crop yields, and countrywide protests, had been a key contributing factors that helped galvanise the Western-engineered Aragalaya plot against President Gotabaya Rajapaksa, similar to parallel regime changes carried out by Washington in Pakistan, Bangladesh and Nepal.

Egodawele, who had served the President as an Additional Secretary (Administration), attached to the Presidential Secretariat, dealt with regime change in ‘Aragalaya: Adarayen Prachandathwayata (From Love to Violence). In fact, according to the ex-Gemunu Watch veteran, who retired in 2004, the crisis caused by the fertiliser ban had been the first major issue that undermined President Rajapaksa.

Turmoil over the fertiliser ban paved the way for a series of other large scale protests. Although not directly connected with the fertiliser issue, teachers’ protests, demanding higher salaries, campaign against Sir John Kotelawala National Defence University (KNDU) Bill, Muslims and Catholics’ protests, targeting the President, followed by countrywide demonstrations over the collapse of essential services and supplies, created an explosive situation. The unexplained explosions of gas cylinders, too, caused anger and confusion among the public struggling to cope up with the developing situation.

Egodawele asserted that the Tamil Diaspora played a significant role in the regime-change project, with external powers utilising political parties here to carry out the conspiracy. The author is confident that the regime change project got underway soon after the Gajaba Regiment veteran assumed Office, as the seventh executive President.

In addition to Egodawele, who launched his work in 2023, former Central Bank Governor Ajith Nivard Cabraal (2022), former parliamentarian Wimal Weerawansa (2023), renowned author Sena Thoradeniya (2023), one-time Finance Secretary Mahinda Siriwardana (2025), President Ranil Wickremesinghe’s media head Prof. Sunanda Maddumabandara (2025), political analyst Asanga Abeygunasekera (2026) and President Gotabaya Rajapaksa’s Media head/DG, Information Department Mohan Samaranayake (2026) dealt with the first successful use of calculated violence to achieve a regime change.

As a person who had a ring side view of the rapid developments, Egodawele quite rightly asserted that the crisis got out of hand due to the delay on the part of the government to reach consensus with the International Monetary Fund (IMF) to secure a lifeline. Who caused the delay in Sri Lanka initiating action to obtain IMF assistance for the 18th time? Those who had read Siriwardena’s book know that direct accusations were directed at the then Central Bank Governor W.D. Lakshman and others for their failure to seek IMF assistance, thereby jeopardizing the government. Samaranayake went a step further when he questioned whether such actions had been deliberate and meant to cause the downfall of the President, elected by a huge majority.

Referring to the Covid-19 crisis that dealt a knockout blow to the already weak national economy, Egodawele declared that it wouldn’t be fair by President Gotabaya Rajapaksa to blame him for the economic fallout as previous leaders, too, contributed to the collapse. Alleging that the external and internal conspirators exploited the Covid-19 crisis to achieve their political objective, the author named the main Opposition Samagi Jana Balwegaya (SJB), the Janatha Vimukthi Peramuna and JVP breakaway faction Frontline socialist party (FSP/Peratugami pakshaya) as well as other political parties and groups being among the schemers.

The Catholic Church was also accused of direct involvement in the operation against President Gotabaya Rajapaksa. However, the author’s assertion, in the foreword, that extremists took control over the protest campaign that was launched at Kohuwala by those ordinary people affected by the crisis seemed wrong.

Having perused all books which dealt with the regime change operation and discussed the issues at hand with those in government at that time, both civilian and military, The Island is of the view that the whole operation, from the very beginning, was planned and executed by political parties/groups, both in and outside Parliament. Perhaps as Samaranayake pointed out in his study of the regime change project, Switzerland, with the backing of the US, launched the operation in late November, 2029, by staging the abduction drama, with the help of Somalatha or Siriyalatha Perera (later changed to Garnier Banister Francis), a local employee at the Embassy (https://island.lk/focus-on-swiss-role-in-garnier-abduction-as-furgler-succeeds-mock/)

Egodawele’s assertion that President Gotabaya’s decision to accommodate UNP leader Ranil Wickremesinghe in his Cabinet, as Prime Minister, as a correct and prudent move, is questionable. The President had no other option but to reach consensus with Wickremesinghe after the SJB leader Sajith Premadasa declared pre-conditions for him to accept that offer. But, Wickremesinghe’s acceptance of premiership cannot be examined without taking into consideration his role in the US-India backed project. President Gotabaya Rajapaksa, too, declared that Wickremesinghe was the best person to handle the situation but, whatever the assertions, the fact remains he was part of it. The protest couldn’t have exploded at Pangiriwattte, Mirihana, outside the President’s private residence without the direct UNP involvement.

Internal strife

From the very outset, the President failed to receive the anticipated support from his team. In fact, the Sri Lanka Podujana Peramuna (SLPP) hadn’t been enthusiastic in fielding the wartime Defence Secretary as their candidate but the circumstances compelled them to do so. In the absence of direct control of the SLPP that commanded a 2/3 majority in Parliament, though it secured only 145 seats at the 2020 general election, the President never really received the backing of the ruling party.

Egodawele discussed this issue to some extent as one of the major reasons for the failure on the part of the President to face daunting challenges, particularly on the economic front. The President had been furious and so disappointed over the way the Central Bank and the Treasury responded to, what he called, the global crisis, and he directly accused them of not briefing him properly. Egodawele, who had been, most probably, present at a meeting the President called on 16 June, 2020, quoted him as having declared that the Central Bank failed to submit a single proposal to strengthen the economy.

The author emphasised the increase of funds required for debt servicing from USD 2 bn in 2014 to USD 6 bn by 2019 end as a key contributing factor for the crisis that overwhelmed President Rajapaksa. Those who had been very fast to blame President Gotabaya for bankruptcy are conveniently silent on the culpability of the UNP-SLFP Yahapalanaya.

The Wickremesinghe-Sirisena duo took an estimated USD 12.05 bn in foreign currency loans through International Sovereign Bonds (ISBs). In addition to ISBs, they borrowed over Rs. 5.7 trillion in domestic (rupee-denominated) loans via treasury bills and bonds. In spite of that, Wickremesinghe emerged as the country’s saviour and he, unashamedly, exploited the situation to his advantage at the 2024 presidential election. The UNP propagated the lie that Wickremesinghe saved the country from ruins without making reference to the massive borrowings, during the Yahapalana administration, that caused irreparable damage to the country and, as to this day, we do not know what they did with such huge borrowings. At least the Rajapaksas built a brand new international airport and a harbour, along with countless other development projects, from expressways to resuscitating badly neglected road network, and even built the country’s very first coal fired power plant at Norochcholai.

Egodawele should have paid sufficient attention to President Gotabaya’s hasty declaration of sweeping tax cuts to kick start the sagging economy with private investments. Instead of defending the President’s decision, the author should have dealt with the issue with an open mind. The ill-fated tax cuts should be examined taking into consideration the drastic reduction of the Special Commodity Levy (SCL) on imported sugar, from Rs. 50 to 25 cents per kilogram, in October, 2020. Although the author made no reference to the sugar scam, the writer believes it caused massive harm to the Rajapaksa government image and it can be compared with the release of 323 plus two ‘ice’ containers from the Colombo port by the incumbent government, in January, 2025.

Such shortsighted, corrupt and fraudulent actions erode public confidence in those governing the country. That is the undeniable truth our political parties cannot comprehend. The SLPP tried its best to cover up the sugar scam and, within weeks, ended up with a massively tarnished image. It may have been a case of paying back those who funded their previous election. The cocky SLPP never ever bothered to examine its actions. Instead, the SLPP attacked, including its own if they offered a dissenting opinion. Samaranayake, in his must-read memoirs, explained the parliamentary group, at the behest of Basil Rajapaksa, harmed both the party and the administration. (https://island.lk/overall-slpp-failures-stressed-in-new-aragalaya-narrative/)

GR overwhelmed

Amidst the rapid build-up of the unrelenting campaign against him, President Gotabaya requested visiting Chinese Foreign Minister Wang Yi, on 09 January, 2022, to help Sri Lanka in debt restructuring. Obviously, China, by then, had decided not to intervene and was an obvious spectator as the US-India sinister project developed beyond control.

The JVP/NPP that entered into seven MoUs with India, including one on defence, in April, 2025, and months later, allowed Indian takeover of the Colombo Dockyard Limited after having launched protests, in January, 2022, against President Gotabaya for reaching an agreement with India, regarding the Trincomalee oil tank farm. India neutralised our fake revolutionaries in JVP/NPP with a cue from Washington, their true master, and brought it within its orbit, and today New Delhi’s influence is growing. The recent declaration by Indian High Commissioner Santosh Jha regarding the urgent and vital need to establish an overland bridge between Rameswaram and Talaimannar underscored the gravity of the developing situation.

Egodawele discussed the acceleration of the SLPP’s internal collapse with the formation of a political group, consisting of 11 constituents/groups of the ruling coalition. The establishment of the grouping, on 02 March, 2022, forced the President to sack ministers Wimal Weerawansa and Udaya Gammanpila. According to the author, the President had been reluctant and refrained from taking a decision at a Cabinet meeting held in the morning but gave in after meeting the parliamentary group.

The President made a last ditch attempt to secure IMF help but by then the situation had deteriorated to such an extent a recovery seemed impossible. Pangiriwatte erupted in violence within days after the IMF agreed, in late March, 2022, to initiate action in response to his request. By then, the SLPP parliamentary group had been fragmented and lost direction as various interested parties sought to distance themselves from the beleaguered President.

The author has allocated an entire chapter to the Muslims’ contribution to the regime change operation. The transformation of their anger, initially over Gotabaya Rajapaksa’s support, in his capacity as the Defence Secretary, during Mahinda Rajapaksa’s presidential tenure, to ‘Bodu Bala Sena’ (BBS), to hatred, that demanded the community, as a whole, sought the President’s ouster, depicted a worrisome picture. That brought the Muslims, who had been chased out of the Northern Province in October, 1990, by the LTTE, and subjected a series of brutal massacres, together with the Tamil Diaspora, to support President Gotabaya’s violent and humiliating ouster, despite his pivotal role in eradicating the separatist terrorists, cannot be disputed, under any circumstances.

Unfortunately, President Rajapaksa, instead of addressing the developing issues, appeared to have aggravated the situation by setting “One Country, One Law” commission, under Ven. Galagodaatte Gnanasara, leader of the ultra-nationalist BBS. Obviously these fake ultra nationalist Sinhalese were like the bought over Jihadists in West Asia, who, in fact, were Western moles. But, perhaps, the author should have examined the much-touted claim that a group of Muslims carried out suicide attacks in April, 2019, to facilitate Gotabaya Rajapaksa’s victory at the presidential election as their (Muslim community) were contradictory. Had the Muslim community been so hostile towards Gotabaya Rajapaksa, why on earth would they sacrifice their own lives to help him win the presidency and then join the Tamil Diaspora and the Catholic Church in the Galle Face regime change project.

Egodawele confidently confirmed that a hasty ban on import of chemical fertilisers, and agrochemicals, was taken due to the government’s inability to pay for fertiliser imports. The author asserted that the government found it difficult to allocate as much as USD 400 mn for fertiliser imports on one occasion.

The GMOA’s role, particularly the influencing actions of its President Dr. Anuruddha Padeniya, and the Chinese carbonic fertiliser fiasco that developed into a major diplomatic issue, resulting in catastrophic Chinese response, undermined the President, who further suffered as a result of teachers’ protests demanding higher salaries, KNDU Bill as well as domestic gas cylinder explosions.

Egodawele’s narrative explained the serious shortcomings on the part of the government in responding to the rapidly developing situations. The seventh chapter that discussed the 31 March, 2022, incidents, near the President’s private residents, proved that those who had been directly responsible for security of the Head of State were clueless regarding the sinister plan hatched by the interested parties to transform the protest campaign to a violent assault. Security chiefs, as well as the intelligence staff, were obviously caught napping. The author dealt with the then Prime Minister Wickremesinghe’s visit to the Pangiriwatte residence to meet President Rajapaksa, the warning issued by the UNPer regarding the gathering of people outside the President’s residence, and secretly planned protest in addition to the one at Jubilee Post junction that seemed peaceful. The author speculated that the protest at Jubilee Post junction may have been carried out to deceive those in charge of security regarding the conspirators real and deadly intentions. The author alleged that the SJB had been involved in the conspiracy. A private television station was also accused of inviting people to join the Pengiriwatte confrontation

Declaring that the Army had been slow in responding to the situation, Egodawele commended the police for not falling to the protesters’ bid to force them to open fire. Egodawele also questioned the rationale in JVP/NPP leader Anura Kumara Dissanayake’s claim that on 01 April, 2022, there were suspicions regarding a group affiliated to the government causing property damage at Pangiriwatte. The despicable role played by a section of the lawyers, in the aftermath of the Pangiriwatte mayhem, was mentioned by Egodawele who opined that had the President taken punitive measures against all those responsible for the Pangiriwatte security failure, perhaps the subsequent events could have been avoided, or successfully dealt with.

The President’s decision to vacate the Pangiriwatte home and move to the President’s House, on the recommendation of the National Security Council, was taken on 01 April, 2022.

Necessity for a proper investigation

Egodawele carefully examined the circumstances leading to the President’s fall. He seems to believe whatever caused the unprecedented crisis the flight of the President could have been averted if the armed forces acted in unison. He dealt with various situations and possibilities while pointing the finger at the JVP/NPP as the dominant party that exploited the situation and secured the support of some retired armed forces officers and men. It would be pertinent to mention that Egodawele launched his book during Wickremesinghe’s presidency in 2023 as the JVP/NPP was making rapid progress.

The need for comprehensive investigation into regime change operations is required. The military needs to identify the shortcomings (intentional/unintentional) on their part to take remedial measures. The author referred to the Rathupaswala shooting, in 2013, and the Rambukkana incident where the Kegalle police opened fire to prevent a violent group from setting a fully loaded fuel bowser on fire, in April, 2022, as two factors that may have impacted on the police and the military. The Rajapaksas response to Rathupaswala and Rambukkana incidents may have discouraged the armed forces and police to an extent they refrained from taking action. Egodawele also found fault with the intelligence services for their failure to recognise the developing insecurity among the police and armed forces and the growing belief that the growing regime change operation was certain to succeed.

Those who are genuinely interested in the regime change project should peruse Egodawele’s easy to comprehend presentation that lucidly dealt with a crisis created by what can be described as collective blunders by successive governments, though the declaration of bankruptcy was blamed on President Gotabaya Rajapaksa.

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Midweek Review

Palm leaf manuscripts of Sri Lanka – IV

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Tripitaka was first recorded on palm leaves. Religious histories such as Mahavamsa and Tupavamsa were also written on palm leaves. The printed texts we read today, of ancient classics, were composed after examining and comparing several palm leaf manuscripts. We forget this when we read. We assume that they were always on paper!

It is important to remember that literacy was developed through the use of ola manuscripts. The hodiya (alphabet) was written on palm leaf. The Sinhala hodiya included additional characters to accommodate Sanskrit and Pali phonemes. There were 52 letters. The library of the National Museum, Colombo has a palm leaf hodiya.

The tradition of writing on palm leaves continued throughout the colonial period. Robert Knox, who spent nearly two decades in captivity in the Kandyan Kingdom (Udarata), while the Dutch controlled Sri Lanka’s coastal areas (17th Century), said the ‘books’ available in Sinhala homes were on religion, medicine, magic, etc. This interest continued in the years that followed. In 1930, when the Historical Manuscripts Commission surveyed palm-leaf manuscripts held in private homes in Udarata, it found manuscripts on medicine, astrology, and charms.

The tradition of writing on palm leaves was held in high esteem and was not readily abandoned, observed analysts. Ananda Coomaraswamy, who was in Sri Lanka from 1903 to 1907 during British rule, said that Kandyan craftsmen invariably prepared their jewellery drawings on ola leaves. He had encountered only a handful drawn on paper.

Sirancee Gunawardena’s book titled “Palm leaf manuscripts of Sri Lanka “(1977) is the first and probably only book which gives a comprehensive account of the palm leaf manuscripts of Sri Lanka. The book is a landmark publication. There is no other book like it on the subject. The author deserves much praise and appreciation for her painstaking work.

This book has been written primarily to encourage Sri Lankans to regard palm-leaf manuscripts as a valuable part of Sri Lanka’s heritage. Palm leaf manuscripts are historical documents and should be preserved as such, says Sirancee. They contain rich primary data, making them a valuable source for primary research as well. Some olas, at least, had beautiful handwriting and a high standard of grammar. They also contained palindromes that could be read in all four directions, she says.

The book is the product of 12 years of painstaking research. Sirancee speaks of “the joy and feeling of exultation” she experienced “peering into dusty nooks and cobweb encrusted wooden boxes and forgotten corners of libraries”. She has spoken to a number of specialists, including persons who knew how to prepare ola leaves and those who could read the manuscripts. She has personally copied scores of manuscripts and the drawings in them.

Sirancee has examined manuscripts dating from the 13th century to 19th century. She has examined the 13-century copy of Chullavagga in the Museum library. This manuscript has 144 folios, size is 23″ x 2 ½”. The writing is beautiful. It has wooden covers with a design. This may be the oldest book illustration in Sri Lanka, says Sirancee.

She was able, over a long period, to personally examine most of the ola manuscripts in the National Museum. She also examined the collections in temple libraries. The Potgul Vihara, Hanguranketa, had one of the largest and best-arranged libraries of palm-leaf manuscripts.

There was a photograph of Sirancee examining the ola manuscripts at Sri Rahula Vihara, Bentota, and another of Sirancee writing down the text as Gamariya read out from a copy of the Mahavamsa. This was probably the well-known astrologer Daniel Gamariya.

There was a great range in size and content in palm-leaf manuscripts. The average manuscript seen by Sirancee had 60–65 folios. Most manuscripts were pure text, but Vessantara Jataka and yantra manuscripts were profusely illustrated. In one manuscript, there was a drawing of the peacock vehicle of the Kataragama God. The drawing extended over three pages stitched together.

Some Vessantara Jataka olas are illustrated, event by event. These illustrations closely resemble temple fresco paintings. The Vessantara jataka manuscript at Dharmadasa Vihara, Boralesgamuwa is profusely illustrated and in colour. The Illustrations are small, in cameo form but have minute decorative details. In her book, Sirancee had reproduced the full text, including illustrations, of two Vessantara jataka texts (p 93-126,275-278). An illustrated Vidura Pandita Jataka from the Hugh Nevill collection is also reproduced in full (p 269-273).

Sirancee wants to give the reader some idea of the wide range of subjects found in palm-leaf manuscripts. She provides the following list. She notes that palm-leaf manuscripts are a source of material on ancient medicine, veterinary science, astrology, yantra and mantra practices, land endowments by kings, medieval taxation, agriculture, trade in ancient times, land grants, land transfers, royal amnesties, acupuncture, ophthalmology, music, metaphysics, and cosmology, as well as the construction of tanks, temple building, and ancient systems of taxation.

Let us take a closer look at some of the subjects mentioned above. First, it is clear that the Mahavamsa was not the only historical text found in curated palm-leaf collections. The Dipavamsa and the Rajavaliya were also included. Copies of the Rajavaliya are found in abundance in both public and private collections. These include holdings in the Colombo Museum Library, the University of Peradeniya, the British Library, and the private collections of L. S. D. Peiris and S. W. R. D. Bandaranaike.

The Rajavaliya was also found in the following temples: Subadrarama Vihara, Balapitiya; Kande Vihara, Atabage; Pallewela Sellawali Raja Maha Vihara, Halloluwa; Pravachanodaya Pirivena Temple, Molligoda, Wadduwa; and Yogilalena Temple, Sandalankara. The copy at the Sri Vardhanarama Library, Mohotimulla, is one of the oldest.

Historical Manuscripts Commission of 1930 found that family collections had various olas that gave information on the Sinhala kings, especially Udarata kings, with the exact dates and hour of their death. The Thalgodapitiya family collection had a Sri Wickrama Alankaraya by Vaidyaratne Basnayake nilame, 1882. Kurunegala Vistaraya was found in many private family collections.

The Historical Manuscripts Commission did not consider these manuscripts to be of academic importance. However, it noted that Yapahuwa temple had an ola with the dates of coronation and death of kings and other important events in the life of “all kings of Kandy”.

Buddhist temples collected ola manuscripts on Buddhism, with particular emphasis on the Dhamma. Olas containing religious texts of great significance were wrapped in silk and kept in the inner sanctum of the temple, Sirancee observes.

The histories of important stupas and temples were also written on ola manuscripts. The Tupavamsa gives the history of the Mahathupa, the Lowa Maha Paya, and the Mirisaveti Stupa. The Andreas Nell collection contains an ola manuscript describing how the four boundaries of the Ridi Vihara were determined. The Henry Parker collection includes an ola manuscript which states that, in relation to the Ridi Vihara, silver was discovered in a nearby cave by a traveller during his journey.

The temple collections included these historical texts. Nagolle Vihara had a copy of the Mahabodhivamsa. Copies of the Hathavanagalla Vihara Vamsa were distributed to neighbouring temples and can still be found today at the Attanagalla Raja Maha Vihara and the Beligammana Raja Maha Vihara.

Palm leaf manuscripts also gave the specifications for the Buddha statue. There were manuscripts on the art of making images of the Buddha, as well as hamsa, lata, kinnara and makara images. The Sariputra ola in Colombo Museum gives dimensions of images in general and Buddha in particular. It gives specifications for the standing, sitting and reclining Buddha. It is written in Sinhala, but text is in Sanskrit. It is in good handwriting.

The Historical Manuscripts Commission (1930) reported the discovery of a Pirit Pota in a family collection. The manuscript was written using black vegetable dye. According to the Commission’s report, the letters remain as black today as they were when written a century ago. The coloured floral illuminations were also executed using the same vegetable dye.

Jataka stories were held in palm leaves. Sirancee has personally examined many magnificent, large Jataka olas held in libraries. Colombo Museum had two large manuscripts containing many jataka stories. One was titled Sinhala Jataka Pota. Each had over one thousand leaves. The leaf strips were 27″ to 33″ by 2 ½. “

 The Pansiya Panas Jataka manuscript owned by K.V.J. de Silva is one of the largest manuscripts Sirancee had seen and possibly the largest in Sri Lanka. It was a copy of a manuscript written in the time of king Parakrama bahu IV (1302-1326). It was written in Sinhala and had 984 folios. The folios at the end of the manuscript contained an index to the stories.

There is a manuscript of Vidura Pandita Jataka in the Hugh Nevill collection in the British Library. It is an original manuscript written in the time of king Senerat (1604-1635). It was written by Matale Rate Atapattu Amanthi of Owille in Matara (sic). The text is accompanied by very beautiful illustrations. The LSD Pieris collection has a small jataka manuscript, 10.5 cm in size, containing several illustrated jatakas. One illustration shows Siddhartha Gautama putting his bowl into the river.The most popular jataka story in Sri Lanka, is undoubtedly the Vessantara Jataka. It features prominently in our temple frescos and olas. The T. P. P. Goonetilleke collection held at Peradeniya had 30 Vessantara Jataka manuscripts. Some Vessantara manuscripts are held in private collections as heirlooms.

Legal matters were recorded on palm leaf manuscripts. Abhaya dana was written in olas. The ola had the royal sign “Sri “symbolising the king but inscribed by a Mohottala on the order of the Sannas Rala. Sirancee had come across a manuscript which stated that when a person died intestate the king inherited the lands. The LSD Pieris collection had a manuscript on a money transaction. The ola recorded that the money owed was handed over in the presence of witnesses who were named.

Land grants were recorded on olas. They were recorded on gold, silver and copper plates as well. Sirancee came across many Land grants in the collections she looked at. VP Ratnayake had a manuscript which said “By this it is declared that Godakkumbura Setunge Mudiyanse was given Pallekumbura in Udukaha pattu Kotugampola Korale on Jan 1630 by Monerawila Rajapakse, Bathwadana Nilame, who is the owner of Matale Dissawa and Sat Korale Dissawa.

P.E.E. Fernando found in the record room of the district court of Kandy, a deed of conveyance drawn up at the request of a person named Patra-Abo Sastru-raja, where he transferred to a vihara he had constructed, a house and garden called Dharmapata geratta (sic) in which he was residing, together with other lands, the boundaries of which were set out in great detail. Some movable objects such as a pitcher, palanquin and three slaves including a female slave were also offered. The document was attested by four persons and a fifth person stated that he had written the document.

Temples carefully looked after olas relating to the ownership of their temple lands. Ridi vihara has a very old manuscript titled Sangaraja Vahanseta Mahanuwara Lekan Pota with names and information on the temples given to the chief monk. When paddy lands were offered to temples, the transfer was recorded in an ola. There is an ola which stated that Pahalavela Kumbura was offered to Atkande Vihara by Teliyaskatuwe Lekam and Maddumaya.

Temples also held on to olas which gave the decisions on disputes over temple land. The high priest of Aluvihare, Matale had an ola on litigation relating to Aluvihare lands. The text is given in full by Sirancee on p 298. Uthurupaw Vihara had an ola issued by Adikara Dissawe. It contained the judgment in a land dispute which had taken place in the 15th century.

In ancient times, administration was done through olas. The Esala Perahera in Kandy has a chieftain mounted on an elephant carrying an ola which gives permission for the perahera to take place. Appointments were announced via olas. The Matale Maha Dissawe Kadaimpota, announced that ‘Niharapola Alahakoon Mohottala was appointed lekam of Tun Korale and also received the Ran Panhinda and flag.’ Administrative responsibilities were given in olas. Historical Manuscripts Commission found at the Atkande vihara, a 16th century ola giving information on the dissaves in charge of Kurunegala district.

 Kadaimpot and Lekam Miti were held on ola. The Historical Manuscripts Commission found several of these in private collections. The Maya Rata Kadimpota held in a private collection, gave information on the 28 districts or towns in Maya Rata. At Padiyapelella, the Commission found a Kadaimpota dating to 14th Century, dealing with Ruhuna, Maya, Pihiti with names of subdivisions, the ratas, also Kelaniya, Panadura, Dambadeniya and so on. The Lekam Miti Pota of 1.1.1830 listed land holdings in the eastern part of Nuwarakalaviya. (To be continued)

References

Sirancee Gunawardana Palm leaf manuscripts of Sri Lanka 1977

L.S.D. Pieris Yantra drawing on palm leaf sri Lanka. 2018

1st report of the Historical Manuscripts Commission 1933, SP 9 of 1933

3rd report of Historical Manuscripts Commission 1951, SP 19 of 1951

Ismeth Raheem

https://www.sundaytimes.

lk/260426/plus/turning-back-the-pages-of-sri-lankas-paper-trail-639604.html

by KAMALIKA PIERIS

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Midweek Review

A Quiet Counter-Revolution Unfolds

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A peaceful counter-revolution is taking shape,

Against current ‘Digital Age’ intoxications,

At that ever-green seat of higher learning,

Wolfson College of the University of Cambridge,

Where one hour every Thursday is set apart,

For reading, writing and creative activity,

In the more time-tested analogues ways,

For those who opt for it, in an august space,

Thus paving the way for the Creator to prevail,

Over Creatures who are tending to run berserk,

More so why humans could cry out in one voice:

‘Long Live, WCSA Digital Detox Thursdays!’

By Lynn Ockersz

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