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Healthcare in a bankrupt Sri Lanka

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By Dr Ajith Amarasinghe

On the eve of the Sinhala and Tamil New Year day, of the 12th of April 2022, Sri Lanka pronounced that it is a bankrupt country by declaring that it cannot pay its debts. It is predicted that the shrinking economy of Sri Lanka will not bounce back to the level of 2018 for at least three to five years. The impact this state of bankruptcy would have on the health-care of the people of Sri Lanka has not been discussed in depth. The ramifications of the effect of economic bankruptcy has on the health of Sri Lankans are multifaceted. To many, it would result in a shortage of medicine and healthcare equipment. Emergency measures are taken to obtain these, as donations from other countries or philanthropists. Although the loss of a human life, due to lack of medications or services caused by an economic meltdown, generates emotional and sensational stories, healthcare providers should look beyond these and take remedial steps to prevent a bigger healthcare catastrophe.

Sri Lanka spends about 3.4% of its GDP on healthcare, which amounted to Rs 423 billion in the year 2018. With a very low level of per capita healthcare spending of 161 USD, Sri Lanka has achieved very high levels of healthcare indices. In comparison, per capita healthcare spending in the USA is approximately USD 10,900, and in the UK USD 4,300. A country which has comparable healthcare indices, such as Cuba, spends six times that of Sri Lanka, being USD 1,321. In fact, Sri Lanka has become a success story in the eyes of international agencies, as a model where high healthcare indices and qualitatively higher levels of care have been achieved at a very low cost. Under these circumstances, further curtailment of per capita healthcare expenditure is near impossible. Although the Prime Minister emphasized, in public, that reducing healthcare expenditure would not be done at any cost, a shrinking economy would make this a necessity through compulsion. This article is an attempt to initiate a serious, in depth discussion about the impact the economic bankruptcy will have on the healthcare system in Sri Lanka, ways to minimize morbidity and mortality patterns in the country, and to protect the nation’s overall health.

Private spending on healthcare

 Although Sri Lanka boasts of having a “free” healthcare system, nearly half of its healthcare spending is through private sources. Private financing is done through out-of-pocket spending by patients, private insurance, insurance paid by enterprises, and contributions from non-profit organisations. Of all the private health spending, out-of-pocket expenditure by patients for medical care was 81% in the year 2018. In contrast, in many developed countries where a genuine free health system exists, direct government spending and widespread public health insurance schemes account for more than 90% of healthcare spending.

Although government spending on hospital (inpatient care) expenditure is 74% and private spending is 24%, in non-hospital expenditure (outpatient care), private spending by patients is 77%. Overall, about 84% of the expenditure to supply medicines and other medical goods to outpatients was privately financed, mostly by household out-of-pocket spending. This indicates that when the economic meltdown affects individual income badly and the per capita income of Sri Lanka falls, outpatient care will be seriously affected. The exorbitant increase in prices of drugs, due to the devaluation of the rupee, would make it even more difficult to purchase essential medications. In recent months, certain drug prices have risen by 60%, forcing patients to reduce the quantity of medications they take or abandon taking medications at the expense of other essential commodities, such as food, fuel, electricity, cooking gas, etc. This reduction in the buying power of medicines would mainly impact patients with non-communicable chronic diseases, such as diabetes, ischemic heart disease, hypertension, renal diseases etc., in which lifelong treatment is essential.

To safeguard this economically marginalized segment of society and the “new poor” created by economic collapse, they will have to be helped by redirecting them to the government sector where drugs are provided free of charge. When this happens, the government’s expenditure on health care would naturally increase. The other option is to introduce a national health insurance scheme with government intervention, to cater to this segment, which is currently not serviced through government funding. Sri Lanka still has underdeveloped medical insurance schemes. Although company medical benefits, which provided 2% in 1999, increased to 9% in 2018, it is still a minute proportion of the total health care spending.

Public spending

In analyzing the sources of financing for health care expenditure, it could be observed that during the period of 1999 to 2018, the relative share of public financing in health care has increased from 40% to 58% and private financing has reduced from 60% to 42%. The central government’s share of public sector financing was 60%; provincial governments 32%; and local governments 2%. The Suraksha student insurance scheme and ETF contributed a minute 0.3% in the year 2018.Government expenditure on health care is mainly financed from revenue generated through public taxation. The reduction of government taxation in the year 2019 had a strong impact on government revenue. In addition, the government obtains its income through foreign aid and loans. Due to the default of loans obtained, further harnessing of loans has become a near impossibility. All these would contribute to a drastic reduction in government income and, in turn, the ability of the government to spend on health care would be reduced. The practical solution would be to increase government taxation or even introduce a “social benefit tax” and use the revenue generated to maintain current levels of government financing of health, education and social services.

The contribution of donations through foreign sources to health care spending was less than 1% throughout the years. With the downfall of the economy, foreign donor agencies such as WHO, UNICEF, World Food Program, and international non-governmental organizations may come to our assistance, increasing the contribution of direct foreign donations to health care. Establishing a separate unit in the Ministry of Health to identify and harness the organizations that are willing to help Sri Lanka by harnessing their contributions and directing such donations to essential sections of health care is important. However, even with these measures, it would still be essential to cut down on government expenditure on health care. In the event of such a scenario, the healthcare managers should have a clear idea as to which expenditure should be curtailed.

Health care expenditure

Current expenditure on health goods and services in Sri Lanka in 2018 was estimated at Rs. 423 billion. Overall, current health expenditure (CHE) nearly quadrupled in real terms between 1999 and 2018. Per capita Health expenditure of Sri Lanka increased from 44 US dollars in 2000 to 101 USD in 2010 to 161 US dollars in 2019 growing at an average annual rate of 7.44%.The ratio of CHE to GDP fluctuated between 2.6% and 3.7% during 1990–2019. This indicates that health care expenditure increased more or less proportionately to the increase in GDP. With the shrinking of GDP due to the economic downfall, it would necessarily mean that expenditure on health care would naturally be reduced. Going back to the 2009 level of spending patterns after proper cost-benefit analysis may become essential.

The largest part of health spending is for curative inpatient care, which is mainly financed by public spending. Total spending on hospitals has quadrupled between 2009 and 2019 (estimated), and it has become more inclined towards large hospitals in this period. This is very likely to be due to spending on infrastructure development and purchasing expensive equipment for large hospitals. To reduce the cost of this segment, non-essential capital expenditure in inpatient care has to be curtailed. As the expenditure on health in an economically vulnerable period has to be done carefully, in the future, any government health care spending has to be done after careful cost-effective analysis by the Ministry of Health through a transparent scientific mechanism. A cost-effectiveness analysis is a method for assessing the gains in health relative to the costs of different health interventions. Even though it is not the only criterion to decide on the allocation of resources, relating the financial and healthcare implications of different interventions is important.

From 2009 to 2019, spending on healthcare institutions increased fourfold, with no significant improvement in communicable or non-communicable disease case fatality rates. During this period, mortality from cardiovascular disease, diabetes, and chronic renal disease decreased from 22.3 to 17.5 percent. Therefore, if there is a need to reduce the costs, the government may have to take a difficult decision to roll back to the past to reduce the health care costs based on spending patterns of 2009.This may include curtailment of expensive drugs, instruments, equipment, and constructions .

To reduce the cost of purchasing medications, essential drug lists have to be made by respective professional colleges of specialties, based on scientific analysis of mortality and morbidity patterns. The purchase of quality generic drugs has to be done and a special unit has to be established in the MOH to coordinate the donated drugs and equipment monitoring. Distribution and maximum utilization of drugs has to be done through the currently underutilized IT based centralized method, to maximize utilization and minimize wastage. Producing drugs and equipment in Sri Lanka has to be done after a careful cost benefit analysis of the wisdom of producing each item in Sri Lanka.

Preventive health services

Of the total health expenditure, only 5% is spent on preventive care services, though the government’s slice of expenditure on preventive health is 98%. Expenditure on preventive health includes universal vaccination programs, family health worker network maintenance, health education, health promotion, and related public health services. Arguably, the current excellent health care indices of Sri Lanka were achieved through its spending on public (preventive) health. Therefore, the meager spending of 5% on public health should not be reduced at any cost. In fact, it may be essential to increase it to match the inflation, without which the public health services may collapse. Foreign donor agencies such as UNICEF and GAVI (Global Alliance for Vaccines and Immunization) should be requested to provide us with vaccinations free of charge for the expanded program of vaccinations (EPI), as it happened before we became a middle income country. Of the inpatient services, cost reduction should not be done at all in maternal and child health services.

Reduction in morbidity and mortality in communicable diseases, which were the main causes of illnesses in the past in Sri Lanka, was achieved through preventive health campaigns. Similarly, through public education campaigns, reductions in 1st and 2nd leading causes of hospitalization, namely traumatic injuries (most of which are domestic and occupational accidents) and non-communicable diseases, could be achieved.

Production of medicine  

Encouraging local production of drugs is one proposal made to provide medicines at a lower cost. Although manufacturing medications would reduce the foreign exchange drain, the cost of producing certain drugs locally may be higher than importation. Therefore, encouraging local manufacturing with the intention of reducing prices has to be done after careful analysis on an individual basis.

Impact on nutrition

Souring food prices due to hyperinflation and food shortages caused by the shortsighted implementation of organic fertilizer policy has made food items unaffordable to the poor. This would result in acute and chronic protein energy malnutrition, vitamin and micronutrient deficiencies, especially in children and pregnant women, affecting future generations of the country. Health education and health promotion programs have to be conducted to make the public aware of cheap, nutritious food and a balanced diet. Common food programs for the poor, provision of micronutrient and vitamin supplementation programs to the vulnerable population, and the reintroduction of school mid-day meal programs through the existing public health and education structure may become essential. Utilization of existing official networks would ensure such programs are not politicized and ensure only the needy get the essential food items.

Conclusion

Although paying attention to the urgent supply of medication is an important aspect of saving human lives, it is critical that healthcare managers look beyond the medication shortage and initiate a serious scientific discussion about maintaining health services in Sri Lanka during the economic crisis. If this is not done soon, the population of Sri Lanka would face a major health care crisis which could not be salvaged by a late intervention.

Dr Ajith Amarasinghe- MBBS, DCH, MD (Sri Lanka), MRCP, MRCPCH (U.K), P.G Dip in Asthma & Allergy (CMC-Vellore), MBA-Health Care (Manipal) could be reached through amarasinghe_ajith@yahoo.com

About the writers: Dr Ajith Amarasinghe is a Consultant Paediatrician and a Clinical Allergist who holds an MBA in healthcare from the University of Manipal. He has held administrative positions in the public and private sectors.

References

-Rannan-Eliya, Ravi P. Sri Lanka- “Good Practice” in Expanding Health Care Coverage – Institute for Health Policy Colombo- 2009

-Medical Statistics Unit- Annual health statistics 2019- Ministry of health Sri Lanka

-Ministry of health Sri Lanka-Annual health bulletin 2018- Ministry of health Sri Lanka

-Sarasi Nisansala Amarasinghe [et al.] – Sri Lanka health accounts: national health expenditure 1990- 2019 (IHP health expenditure series; No. 6) – Institute for Health Policy- Colombo- 2020

-World Health Organization, Global Health Observatory Data Repository- Mortality from CVD, cancer, diabetes or CRD between exact ages 30 and 70 male% -Sri Lanka- apps.who.int/ghodata.

-Department of Census and Statistics- Economic Statistics of Sri Lanka 2021- 5th bulletin- The Department of Census and Statistics 2021

-Department of Census and Statistics- The 2016 Sri Lanka Demographic and Health Survey-SLDHS- Department of Census and Statistics

-World Health Organization – Current health expenditure per capita (current US$) – Sri Lanka https://data.worldbank.org › SH.XPD.CHEX.PC.CD- 20th Jan 2022



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A World Order in Crisis: War, Power, and Resistance

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Article 2(4) of the United Nations Charter prohibits member states from using threats or force against the territorial integrity or political independence of any state. Violating international law, the United States and Israel attacked Iran on February 28, 2026. The ostensible reason for this unprovoked aggression was to prevent Iran from developing a nuclear weapon.

The United States is the first and only country to have used nuclear weapons in war, against Japan in August 1945. Some officials in Israel have threatened to use a “doomsday weapon” against Gaza. On March 14, David Sacks, billionaire venture capitalist and AI and crypto czar in the Trump administration, warned that Israel may resort to nuclear weapons as its war with Iran spirals out of control and the country faces “destruction.”

Although for decades Iran’s Supreme Leader, Ali Khamenei, opposed nuclear weapons on religious grounds, in the face of current existential threats it is likely that Iran will pursue their development. On March 22, the head of the WHO warned of possible nuclear risks after nuclear facilities in both Iran and Israel were attacked. Indeed, will the current war in the Middle East continue for months or years, or end sooner with the possible use of a nuclear weapon by Israel or the United States?

Widening Destruction

Apart from the threat of nuclear conflagration—and what many analysts consider an impending ground invasion by American troops—extensive attacks using bombs, missiles, and drones are continuing apace, causing massive loss of life and destruction of resources and infrastructure. US–Israel airstrikes have killed Ayatollah Ali Khamenei and top Iranian officials. Countless civilians have died, including some 150 girls in a primary school in Minab, in what UNESCO has called a “grave violation of humanitarian law.” Moreover, the targeting of desalination plants by both sides could severely disrupt water supplies across desert regions.

Iran’s retaliatory attacks on United States military bases in Persian Gulf countries have disrupted global air travel. Even more significantly, Iran’s closure of the Strait of Hormuz—the critical maritime energy chokepoint through which 20% of global oil and liquefied natural gas pass daily—has blocked the flow of energy supplies and goods, posing a severe threat to the fossil fuel–driven global economy. A global economic crisis is emerging, with soaring oil prices, power shortages, inflation, loss of livelihoods, and deep uncertainty over food security and survival.

The inconsistent application of international law, along with structural limitations of the United Nations, erodes trust in global governance and the moral authority of Western powers and multilateral institutions. Resolution 2817 (2026), adopted by the UN Security Council on March 12, condemns Iran’s “egregious attacks” against its neighbours without any condemnation of US–Israeli actions—an imbalance that underscores this concern.

The current crisis is exposing fault lines in the neo-colonial political, economic, and moral order that has been in place since the Second World War. Iran’s defiance poses a significant challenge to longstanding patterns of intervention and regime-change agendas pursued by the United States and its allies in the Global South. The difficulty the United States faces in rallying NATO and other allies also reflects a notable geopolitical shift. Meanwhile, the expansion of yuan-based oil trade and alternative financial settlement mechanisms is weakening the petrodollar system and dollar dominance. Opposition within the United States—including from segments of conservatives and Republicans—signals growing skepticism about the ideological and moral basis of a US war against Iran seemingly driven by Israel.

A New World Order?

The unipolar world dominated by the United States—rooted in inequality, coercion, and militarism—is destabilising, fragmenting, and generating widespread chaos and suffering. Challenges to this order, including from Iran, point toward a fragmented multipolar world in which multiple actors possess agency and leverage.

The BRICS bloc—Brazil, Russia, India, China, South Africa, along with Iran, the UAE, and other members—represents efforts to create alternative economic and financial systems, including development banks and reserve currencies that challenge Western financial dominance.

However, is BRICS leading the world toward a much-needed order, based on equity, partnership, and peace? The behaviour of BRICS countries during the current crisis does not indicate strong collective leadership or commitment to such principles. Instead, many appear to be leveraging the situation for national advantage, particularly regarding access to energy supplies.

A clear example of this opportunism is India, the current head of the BRICS bloc. Historically a leader of non-alignment and a supporter of the Palestinian cause, India now presents itself as a neutral party upholding international law and state sovereignty. However, it co-sponsored and supported UN Security Council Resolution 2817 (2026), which condemns only Iran.

India is also part of the USA–Israel–India–UAE strategic nexus involving defence cooperation, technology sharing, and counterterrorism. Additionally, it participates in the Quadrilateral Security Dialogue (QUAD) with the United States, Japan, and Australia, aimed at countering China’s growing influence. In effect, despite its leadership role in BRICS, India is closely aligned with the United States, raising questions about its ability to offer independent leadership in shaping a new world order.

As a group, BRICS does not fundamentally challenge corporate hegemony, the concentration of wealth among a global elite, or entrenched technological and military dominance. While it rejects aspects of Western geopolitical hierarchy, it largely upholds neoliberal economic principles: competition, free trade, privatisation, open markets, export-led growth, globalisation, and rapid technological expansion.

The current Middle East crisis underscores the need to question the assumption that globalisation, market expansion, and technological growth are the foundations of human well-being. The oil and food crises, declining remittances from Asian workers in the Middle East, and reduced tourism due to disruptions in the Strait of Hormuz and regional airspace all highlight the fragility of global interdependence.

These conditions call for consideration of alternative frameworks—bioregionalism, import substitution, local control of resources, food and energy self-sufficiency, and renewable energy—in place of dependence on imported fossil fuels and global supply chains.

Both the Western economic model and its BRICS variant continue to prioritise techno-capitalist expansion and militarism, despite overwhelming evidence linking these systems to environmental destruction and social inequality. While it is difficult for individual countries to challenge this dominant model, history offers lessons in collective resistance.

Collective Resistance

One of the earliest examples of nationalist economic resistance in the post-World War II period was the nationalisation of the Anglo-Iranian Oil Company and the creation of the National Iranian Oil Company in 1951 under Prime Minister Mohammad Mosaddegh. He was overthrown on August 19, 1953, in a coup orchestrated by the US CIA and British intelligence (MI6), and Shah Mohammad Reza Pahlavi was installed to protect Western oil interests.

A milestone for decolonisation occurred in Egypt in 1956, when President Gamal Abdel Nasser nationalised the Suez Canal Company. Despite military intervention by Israel, the United Kingdom, and France, Nasser retained control, emerging as a symbol of Arab and Third World nationalism.

Following political independence, many former colonies sought to avoid entanglement in the Cold War through the Non-Aligned Movement (NAM), officially founded in Belgrade in 1961. Leaders including Josip Broz Tito, Jawaharlal Nehru, Gamal Abdel Nasser, Kwame Nkrumah, Sukarno, and Sirimavo Bandaranaike promoted autonomous development paths aligned with national priorities and cultural traditions.

However, maintaining economic sovereignty proved far more difficult. Patrice Lumumba, the first democratically elected Prime Minister of the Democratic Republic of the Congo, was assassinated in 1961 with the involvement of US and Belgian interests after attempting to assert control over national resources. Kwame Nkrumah was similarly overthrown in a US-backed coup in 1966.

In Tanzania, Julius Nyerere’s Ujamaa (“African socialism”) sought to build community-based development and food security, but faced both internal challenges and external opposition, ultimately limiting its success and discouraging similar efforts elsewhere.

UN declarations from the 1970s reflect Global South resistance to the Bretton Woods system. Notably, the 1974 Declaration on the Establishment of a New International Economic Order (Resolution 3201) called for equitable cooperation between developed and developing countries based on dignity and sovereign equality.

Today, these declarations are more relevant than ever, as Iran and other Global South nations confront overlapping crises of economic instability, neocolonial pressures, and intensifying geopolitical rivalry. Courtesy: Inter Press Service

by Dr. Asoka Bandarage

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Neutrality in the context of geopolitical rivalries

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President Dissanayake in Parliament

The long standing foreign policy of Sri Lanka was Non-Alignment. However, in the context of emerging geopolitical rivalries, there was a need to question the adequacy of Non-Alignment as a policy to meet developing challenges. Neutrality as being a more effective Policy was first presented in an article titled “Independence: its meaning and a direction for the future” (The Island, February 14, 2019). The switch over from Non-Alignment to Neutrality was first adopted by former President Gotabaya Rajapaksa and followed through by successive Governments. However, it was the current Government that did not miss an opportunity to announce that its Foreign Policy was Neutral.

The policy of Neutrality has served the interests of Sri Lanka by the principled stand taken in respect of the requests made by two belligerents associated with the Middle East War. The justification for the position adopted was conveyed by President Anura Kumara Dissanayake to Parliament that Iran had made a formal request on February 26 for three Iranian naval ships to visit Sri Lanka, and on the same evening, the United States also requested permission for two war planes to land at Mattala International Airport. Both requests were denied on grounds of maintaining “our policy of neutrality”.

WHY NEUTRALITY

Excerpts from the article cited above that recommended Neutrality as the best option for Sri Lanka considering the vulnerability to its security presented by its geographic location in the context of emerging rivalries arising from “Pivot to Asia” are presented below:

“Traditional thinking as to how small States could cope with external pressures are supposed to be: (1) Non-alignment with any of the major centers of power; (2) Alignment with one of the major powers thus making a choice and facing the consequences of which power block prevails; (3) Bandwagoning which involves unequal exchange where the small State makes asymmetric concessions to the dominant power and accepts a subordinate role of a vassal State; (4) Hedging, which attempts to secure economic and security benefits of engagement with each power center: (5) Balancing pressures individually, or by forming alliances with other small States; (6) Neutrality”.

Of the six strategies cited above, the only strategy that permits a sovereign independent nation to charter its own destiny is neutrality, as it is with Switzerland and some Nordic countries. The independence to self-determine the destiny of a nation requires security in respect of Inviolability of Territory, Food Security, Energy Security etc. Of these, the most critical of securities is the Inviolability of Territory. Consequently, Neutrality has more relevance to protect Territorial Security because it is based on International Law, as opposed to Non-Alignment which is based on principles applicable to specific countries that pledged to abide by them

“The sources of the international law of neutrality are customary international law and, for certain questions, international treaties, in particular the Paris Declaration of 1856, the 1907 Hague Convention No. V respecting the Rights and Duties of Neutral Powers and Persons in Case of War on Land, the 1907 Hague Convention No. XIII concerning the Rights and Duties of Neutral Powers in Naval War, the four 1949 Geneva Conventions and Additional Protocol I of 1977” (ICRC Publication on Neutrality, 2022).

As part of its Duties a Neutral State “must ensure respect for its neutrality, if necessary, using force to repel any violation of its territory. Violations include failure to respect the prohibitions placed on belligerent parties with regard to certain activities in neutral territory, described above. The fact that a neutral State uses force to repel attempts to violate its neutrality cannot be regarded as a hostile act. If the neutral State defends its neutrality, it must however respect the limits which international law imposes on the use of force. The neutral State must treat the opposing belligerent States impartially. However, impartiality does not mean that a State is bound to treat the belligerents in exactly the same way. It entails a prohibition on discrimination” (Ibid).

“It forbids only differential treatment of the belligerents which in view of the specific problem of armed conflict is not justified. Therefore, a neutral State is not obliged to eliminate differences in commercial relations between itself and each of the parties to the conflict at the time of the outbreak of the armed conflict. It is entitled to continue existing commercial relations. A change in these commercial relationships could, however, constitute taking sides inconsistent with the status of neutrality” (Ibid).

THE POTENTIAL of NEUTRALITY

It is apparent from the foregoing that Neutrality as a Policy is not “Passive” as some misguided claim Neutrality to be. On the other hand, it could be dynamic to the extent a country chooses to be as demonstrated by the actions taken recently to address the challenges presented during the ongoing Middle East War. Furthermore, Neutrality does not prevent Sri Lanka from engaging in Commercial activities with other States to ensuring Food and Energy security.

If such arrangements are undertaken on the basis of unsolicited offers as it was, for instance, with Japan’s Light Rail Project or Sinopec’s 200,000 Barrels a Day Refinery, principles of Neutrality would be violated because it violates the cardinal principle of Neutrality, namely, impartiality. The proposal to set up an Energy Complex in Trincomalee with India and UAE would be no different because it restricts the opportunity to one defined Party, thus defying impartiality. On the other hand, if Sri Lanka defines the scope of the Project and calls for Expressions of Interest and impartially chooses the most favourable with transparency, principles of Neutrality would be intact. More importantly, such conduct would attract the confidence of Investors to engage in ventures impartial in a principled manner. Such an approach would amount to continue the momentum of the professional approach adopted to meet the challenges of the Middle East War.

CONCLUSION

The manner in which Sri Lanka acted, first to deny access to the territory of Sri Lanka followed up by the humanitarian measures adopted to save the survivors of the torpedoed ship, earned honour and respect for the principled approach adopted to protect territorial inviolability based on International provisions of Neutrality.

If Sri Lanka continues with the momentum gained and adopts impartial and principled measures recommended above to develop the country and the wellbeing of its Peoples, based on self-reliance, this Government would be giving Sri Lanka a new direction and a fresh meaning to Neutrality that is not passive but dynamic.

by Neville Ladduwahetty

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Lest we forget

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Dr. Mohammad Mosaddegh

The interference into affairs of other nations by the USA’s Central Intelligence Agency (CIA) started in 1953, six years after it was established. The Anglo-Iranian Oil Company supplied Britain with most of its oil during World War I. In fact, Winston Churchill once declared: “Fortune brought us a prize from fairyland beyond our wildest dreams.”

When in 1951 Dr. Mohammad Mosaddegh was reluctantly appointed as Prime Minister by the Shah of Iran, whose role was mostly ceremonial, he convinced Parliament that the oil company should be nationalised.

Mohammed Mosaddegh

Mosaddegh said: “Our long years of negotiations with foreign companies have yielded no result thus far. With the oil revenues we could meet our entire budget and combat poverty, disease and backwardness of our people.”

It was then that British Intelligence requested help from the CIA to bring down the Iranian regime by infiltrating their communist mobs and the army, thus creating disorder. An Iranian oil embargo by the western countries was imposed, making Iranians poorer by the day. Meanwhile, the CIA’s strings were being pulled by Kermit Roosevelt (a grandson of former President Theodore Roosevelt), according to declassified intelligence information.

Although a first coup failed, the second attempt was successful. General Fazlollah Zahedi, an Army officer, took over as Prime Minister. Mosaddegh was tried and imprisoned for three years and kept under house arrest until his death. Playing an important role in the 1953 coup was a Shia cleric named Ayatollah Abol-Ghasem Mostafavi-Kashani. He was previously loyal to Mosaddegh, but later supported the coup. One of his successors was Ayatollah Ruhollah Mostafavi Musavi Khomeini, who engineered the Islamic Revolution in 1979. Meanwhile, in 1954 the Anglo-Iranian Oil Company had been rebranded as British Petroleum (BP).

Map of the Middle East

When the Iran-Iraq war broke out (September 1980 to August 1988), the Persian/Arabian Gulf became a hive of activity for American warships, which were there to ensure security of the Gulf and supertankers passing through it.

CIA-instigated coup in Iran in 1953 Dr. Mohammad Mosaddegh

The Strait of Hormuz, the only way in and out of the Gulf, is administered by Oman and Iran. While there may have been British and French warships in the region, radio ‘chatter’ heard by aircraft pilots overhead was always from the US ships. In those days, flying in and out of the Gulf was a nerve-wracking experience for airline pilots, as one may suddenly hear a radio call on the common frequency: “Aircraft approaching US warship [name], identify yourself.” One thing in the pilots’ favour was that they didn’t know what ships they were flying over, so they obeyed only the designated air traffic controller. Sometimes though, with unnecessarily distracting American chatter, there was complete chaos, resulting in mistaken identities.

Air Lanka Tri Star

Once, Air Lanka pilots monitored an aircraft approaching Bahrain being given a heading to turn on to by a ship’s radio operator. Promptly the air traffic controller, who was on the same frequency, butted in and said: “Disregard! Ship USS Navy [name], do you realise what you have just done? You have turned him on to another aircraft!” It was obvious that there was a struggle to maintain air traffic control in the Gulf, with operators having to contend with American arrogance.

On the night of May 17, 1987, USS Stark was cruising in Gulf waters when it was attacked by a Dassault Mirage F1 jet fighter/attack aircraft of the Iraqi Air Force. Without identifying itself, the aircraft fired two Exocet missiles, one of which exploded, killing 37 sailors on board the American frigate. Iraq apologised, saying it was a mistake. The USA graciously accepted the apology.

Then on July 3, 1988 the high-tech, billion-dollar guided missile cruiser USS Vincennes, equipped with advanced Aegis weapons systems and commanded by Capt. Will Rogers III, was chasing two small Iranian gun boats back to their own waters when an aircraft was observed on radar approaching the US warship. It was misidentified as a Mirage F1 fighter, so the Americans, in Iranian territorial waters, fired two surface-to-air Missiles (SAMs) at the target, which was summarily destroyed.

The Vincennes had issued numerous warnings to the approaching aircraft on the military distress frequency. But the aircraft never heard them as it was listening out on a different (civil) radio frequency. The airplane broke in three. It was soon discovered, however, that the airplane was in fact an Iran Air Airbus A300 airliner with 290 civilian passengers on board, en route from Bandar Abbas to Dubai. Unfortunately, because it was a clear day, the Iranian-born, US-educated captain of Iran Air Flight 655 had switched off the weather radar. If it was on, perhaps it would have confirmed to the American ship that the ‘incoming’ was in fact a civil aircraft. At the time, Capt. Will Rogers’ surface commander, Capt. McKenna, went on record saying that USS Vincennes was “looking for action”, and that is why they “got into trouble”.

Although USS Vincennes was given a grand homecoming upon returning to the USA, and its Captain Will Rogers III decorated with the Legion of Merrit, in February 1996 the American government agreed to pay Iran US$131.8 million in settlement of a case lodged by the Iranians in the International Court of Justice against the USA for its role in that incident. However, no apology was tendered to the families of the innocent victims.

These two incidents forced Air Lanka pilots, who operated regularly in those perilous skies, to adopt extra precautionary measures. For example, they never switched off the weather radar system, even in clear skies. While there were potentially hostile ships on ground, layers of altitude were blocked off for the exclusive use of US Air Force AWACS (Airborne Warning and Control System) aircraft flying in Bahraini and southern Saudi Arabian airspace. The precautions were even more important because Air Lanka’s westbound, ‘heavy’ Lockheed TriStars were poor climbers above 29,000 ft. When departing Oman or the UAE in high ambient temperatures, it was a struggle to reach cruising level by the time the airplane was overhead Bahrain, as per the requirement.

In the aftermath of the Iran Air 655 incident, Newsweek magazine called it a case of ‘mistaken identity’. Yet, when summing up the tragic incident that occurred on September 1, 1983, when Korean Air Flight KE/KAL 007 was shot down by a Russian fighter jet, close to Sakhalin Island in the Pacific Ocean during a flight from New York to Seoul, the same magazine labelled it ‘murder in the air’.

After the Iranian coup, which was not coincidentally during the time of the ‘Cold War’, the CIA involved itself in the internal affairs of numerous countries and regions around the world: Guatemala (1953-1990s); Costa Rica (1955, 1970-1971); Middle East (1956-1958); Haiti (1959); Western Europe (1950s to 1960s); British Guiana/Guyana (1953-1964); Iraq (1958-1963); Soviet Union, Vietnam, Cambodia (1955-1973); Laos, Thailand, Ecuador (1960-1963); The Congo (1960-1965, 1977-1978); French Algeria (1960s); Brazil (1961-1964); Peru (1965); Dominican Republic (1963-1965); Cuba (1959 to present); Indonesia (1965); Ghana (1966); Uruguay (1969-1972); Chile (1964-1973); Greece (1967-1974); South Africa (1960s to 1980s); Bolivia (1964-1975); Australia (1972-1975); Iraq (1972-1975); Portugal (1974-1976); East Timor (1975-1999); Angola (1975-1980); Jamaica (1976); Honduras (1980s); Nicaragua (1979-1990); Philippines (1970s to 1990s); Seychelles (1979-1981); Diego Garcia (late 1960s to present); South Yemen (1979-1984); South Korea (1980); Chad (1981-1982); Grenada (1979-1983); Suriname (1982-1984); Libya (1981-1989); Fiji (1987); Panama (1989); Afghanistan (1979-1992); El Salvador (1980-1992); Haiti (1987-1994, 2004); Bulgaria (1990-1991); Albania (1991-1992); Somalia (1993); Iraq (1991-2003; 2003 to present), Colombia (1990s to present); Yugoslavia (1995-1995, and to 1999); Ecuador (2000); Afghanistan (2001 to present); Venezuela (2001-2004; and 2025).

If one searches the internet for information on American involvement in foreign countries during the periods listed above, it will be seen how ‘black’ funds were/are used by the CIA to destabilise those governments for the benefit of a few with vested interests, while poor citizens must live in the chaos and uncertainty thus created.

A popular saying goes: “Each man has his price”. Sad, isn’t it? Arguably the world’s only superpower that professes to be a ‘paragon of virtue’ often goes ‘rogue’.

God Bless America – and no one else!

BY GUWAN SEEYA

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