Features

IMF-led privatisation, land and resource grab in Sri Lanka

Published

4 years ago

2022/12/5

BY DR. Asoka Bandarage

On September 1, 2022, debt-trapped Sri Lanka reached a preliminary agreement with the International Monetary Fund (IMF) for a 48-month Extended Fund Facility of $2.9 billion, which hardly covers the country’s outstanding debt, nor its immediate survival needs. Nevertheless, IMF structural adjustment requires the country to meet its familiar debt restructuring conditions: privatisation of state-owned enterprises, cutbacks of social safety nets and alignment of local economic policy with US and other Western interests. There are already signs that these policies would be detrimental to the well-being of ordinary Sri Lankans and the sovereignty of the country and will inevitably lead to more wealth disparity and repeat debt crises.

The most important source of generating state revenue identified in the 2023 Sri Lanka budget is the privatisation of SOEs (State Owned Enterprises), a primary strategy of IMF structural adjustment and neoliberal economics. The 2023 Sri Lankan budget states:

“The government is currently maintaining 420 State-owned enterprises. 52 of these generate over Rs. 86 Billion in losses… A Unit has now been established at the Ministry of Finance with the specific task of restructuring SOEs. Initially, measures will be taken to restructure Sri Lankan Airlines, Sri Lanka Telecom, Colombo Hilton, Waters Edge, and Sri Lanka Insurance Corporation (SLIC) along with its subsidiaries, the proceeds of which will be used to strengthen foreign exchange reserves of the country, and strengthening the Rupee.”

The left-wing and nationalist Bandaranaike governments established many SOEs between the mid-1950s and the mid-1970s, many of them import substitution industries to replace foreign imports with domestic production. Many SOEs were privatised after the introduction of the Open Economy in 1977, and privatisation (or commercialisation) has continued steadily since then, with successive governments selling SOEs outright or turning them into Public Private Partnerships (PPP).

There are 55 strategic SOEs, 287 SOEs with commercial interests and 185 SOEs with non-commercial interests in Sri Lanka. The 55 strategically important SOEs are estimated to employ around 1.9 percent of the country’s labor force. The total state sector workforce is estimated to be about 1.4 million people, which accounts for over one in six of the country’s total workforce. Many Sri Lankans prefer to work for the government sector given job security, retirement and other benefits. There are concerns that “…privatisation can result in lower salaries and benefits as well as retrenchment and high employee turnover,” and that privatising SOEs that enjoy monopolies can result in “corporations making decisions based on profits rather than on public benefit.”

Unlike the private sector, many of the SOEs in Sri Lanka have powerful trade unions, with workers of different skills and professional levels, which have fought for workers’ rights and the country’s sovereignty for decades. Privatisation is likely to lead to the elimination of many trade unions, strikes and other forms of labor resistance. In October 2022, Ceylon Petroleum Corporation (CPC) workers held a protest strike against the proposed privatisation of the CPC. Similarly, 1200 union workers of the Government Press plant – also targeted for privatisation and cutbacks in wages, work conditions and jobs – went on strike in November 2022.

The CPC, a vital enterprise in the island’s oil supply and energy security, has been targeted for privatization under the IMF restructuring programme. Lanka India Oil Company (LIOC), China’s Sinopec, Petroleum Development Oman and Shell have expressed interest in this deal. It is important to note that, in the name of privatisation, the CPC is being handed over to state owned enterprises of powerful foreign countries. The parent company of LIOC is the Indian Oil Corporation Limited (IOC) which is owned by the Ministry of Petroleum and Natural Gas of India. Similarly, Sinopec Group is the world’s largest oil refining, gas and petrochemical conglomerate and is wholly owned by the Chinese state; and Petroleum Development Oman is owned by the Government of Oman, Royal Dutch Shell, Total Energies and Partex.

Parasites and Vultures of Privatization

Sri Lanka must take lessons from privatisation episodes in other parts of the world. According to a 2016 study, ‘The Privatising Industry in Europe’ by the Transnational Institute in Amsterdam, privatisation in Europe has failed to produce the expected revenue as only “profitable firms are being sold and consistently at undervalued prices.” The study notes that privatised firms are no more efficient than state-owned firms and that, under the rubric of privatisation, many European energy companies in Portugal, Greece and Italy, have been sold off to state-owned corporations from China. The Study also states that privatisation in Europe has “encouraged a growth in corruption, with frequent cases of nepotism and conflicts of interest” in Greece, Italy, Spain, Portugal and the UK.

We must also be vigilant for conflicts of interest in such large deals involving public money and wellbeing. For example, the financial and legal advisory firms Clifford Chance and Lazard have been hired by the Sri Lankan government to assist with IMF debt restructuring. The Transnational Institute Study lists Clifford Chance as part of a small group of privatisation advisory law firms, with annual revenues of more than a billion Euros, “reaping huge profits from the new wave of crisis-prompted privatisations.”

Lazard is reputed to be both “the number one sovereign advisory firm” and “the world’s largest privatisation advisory player.” Lazard’s operational global headquarters are in New York City, but the company is officially incorporated in Bermuda – always a warning sign when it comes to (lack of) financial ethics. In previous government advisory contracts, Lazard has taken advantage of its prominent position by involving itself not only its advisory services branch, but also its asset management branch. According to the Study, “Upon the Initial Public Offering (IPO) of important state companies, Lazard has on a number of occasions undervalued the price of a company, which has allowed its asset management branch to buy up the stock at low prices which have then been sold for considerable profit when stock prices soared.”

The practice of both advising on processes of privatisation and then profiting from that advice, raises ethical questions about Lazard. Questions are also raised about the entire global financial industry responsible for creating debt crises in the first place, and then finding devious ways to benefit from them, at the expense of debt-trapped countries.

Despite such serious concerns over privatisation, there is now an enormous push by local and international actors that the solution to Sri Lanka’s debt and economic crises is to privatise the remaining SOEs, and no doubt a select few profit greatly in the process.

A key local player in this is the Sri Lankan NGO, the Advocata Institute in Colombo, which is associated with the Mont Pelerin Society and the Atlas Network and their neoliberal agenda. Advocata is spearheading a major campaign to convince the public that privatisation of SOEs is the path to ‘reset Sri Lanka’ for solvency and prosperity. The ‘Great Sri Lanka Fire Sale’ of state owned enterprises and strategic assets is now on, with huge returns expected for colluding local and global financial and corporate elites and pauperisation for ordinary people.

Land Privatization

One key state-owned resource at risk is land, such that commoditising state-owned land is a major aspect of privatisation in Sri Lanka. Not only the land, but water – indispensable for survival of life on Earth – is threatened by privatisation and commoditisation in Sri Lanka and around the world.

This is not new; privatising and commoditising state land for export production has been going on in Sri Lanka since the British colonial era. Although the more recent neoimperial US Millennium Corporation Compact agenda, initiated under George W. Bush in 2002, has not been officially signed by Sri Lanka, contemporary Sri Lankan governments have been advancing its agenda of privatising state land to prioritise export production over local food production, despite rising prices of imported food and the food crisis facing the country.

Two very important proposals in this regard have been slipped into the 2023 budget proposals without public discussion. Firstly, Clause 12.1 on ‘Lands for Agricultural Exports’ states:

“A vast amount of land belonging to Janatha Estate Development Board [EDB), Sri Lanka State Plantation Corporation (SPC), and Land Reform Commission (LRC) remains without being cultivated or productively utilized for a long time, ….. Accordingly, a programme will be devised to allow investors to productively utilise them in a manner to increase both the production and exports. Hence, it is expected that large parcels of unutilised/unproductively used lands will be leased out on long-term basis to grow exportable crops…”

Secondly, Clause 13.1 of the 2023 Budget on ‘Disposal of Government Lands’ states:

“…activities related to the disposal of government lands are carried out by District Secretaries/Government Agents through Divisional Secretaries/ Additional Government Agents…, , such duties were also allocated to Sri Lanka Mahaweli Authority and Land Reform Commission which were established for special requirements at a later stage…there are occurrences of discrimination and malpractice as …activities related to disposal of lands … Therefore…, a programme will be prepared during the next year to enable preliminary activities in relation to disposal of all government lands including the disposal of lands under the above two institutes only by the Divisional Secretaries.”

Nationalist members of Parliament and the Federation of National Organizations have criticised the move to place state land under Divisional Secretaries as a ploy for land grabbing, and that the move to deliberately privatise state land may have ‘irrevocable consequences.’ While recognising the need to reform the existing Land Reform Commission, they point out that solely empowering Divisional Secretaries would encourage partisan land distribution. The 2023 Budget seems to put the MCC Compact into effect although activists challenging the Compact have warned of a neocolonial agenda for a massive modern-day land grab, displacement and peasant pauperization.

There is great concern over the legitimacy of crucial land and other privatisation decisions taken by President Wickremesinghe as neither he nor his United National (UNP) Party have a mandate to do so from the people. The land, the ports and the state enterprises do not belong to politicians but to the people and to future generations of Sri Lankans. Clearly, there needs to be careful deliberation of alternatives before the IMF dictated ‘Great Sri Lanka Fire Sale’ is allowed to proceed.

(COURTESY ASIA TIMES)

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Features

New US sanctions on ICC, a fillip to worldwide political repression

Published

16 mins ago

2026/10/15

Thilina Walpola

The International Criminal Court in session. UN Photo/Eskinder Debebe

US Secretary of State Marco Rubio’s warning to the International Criminal Court (ICC) was stark: ‘Either the ICC will end its threats, or we will end the ICC.’ It followed US central administration accusations that the court was unfairly targeting Americans on the basis of trumped-up war crimes charges.

However, a new plethora of sanctions has been clamped on the ICC by the US, which in turn has spurred accusations by sections of the world that the latter has unleashed an ‘assault’ on the international legal order.

What some of the sanctions would mean for the ICC was outlined by Rubio: ‘We will ban transactions with this rogue court, cutting off their resources and crippling their ability to operate against us.’

The ICC has shown consistency of purpose over the years. Despite some operational constraints it has indicted a large number of political strongmen from around the world, accused of war crimes and other governance excesses that come under its purview. Two such recent figures are: Russian President Vladimir Putin and Israeli Prime Minister Benjamin Netanyahu.

Rather than enjoy a mere nominal presence in the world community, the ICC has proved its effectiveness by detaining and bringing to justice scores of VIP politicians and others of their ilk who have been found guilty of human rights abuses and kindred excesses that come within the terms of reference of the ICC.

Accordingly, the international justice system would be stymied considerably as a result of the ICC being dis-empowered, particularly financially. Needless to say, potential and real perpetrators of the species of crime coming under the jurisdiction of the ICC would stand to gain most from such anarchic tendencies. That is, political repression globally would be enabled to enjoy a new lease of life.

A detailing of the types of crime coming under the purview of the ICC provides an idea of what it would cost the international community if the ICC’s operations are gravely hampered. They are mainly: genocide, war crimes, crimes against humanity and the crime of aggression.

That is, the part of the world to be worst affected would be the global South, since the latter is awash with the mentioned crimes. Needless to say, a chronically-disaffected South will sooner rather than later undermine the well being of the world dangerously. The world is already being put through these paces.

At the time of writing, ‘illegal migrants’ from the South, for example, are aggravating many a Western economy’s woes, besides creating for them acute law and order issues. The fact that these migrants’ presence goes on to become a virtual test of the migrant receiving states’ ability to forge domestic social inclusion in the face of jingoistic protests by mainly white supremacist groups is evidence of the latter. As is known, the US, to take just one example, has been up against this crisis for quite a while.

Accordingly, it will be in the best interests of the West if ‘illegal’ migrant arrivals on their shores are stemmed. If the socio-political and economic problems assailing the South are effectively managed through North-South collaborative, ‘trouble-shooting’ efforts the causes leading to ‘illegal’ migration and connected issues could be resolved at source as it were. For, it is the aggravation of the South’s material questions that lays the basis for the emergence of repressive and anti-democratic regimes in the hemisphere.

Until such time that the aforementioned issues in North-South relations are visited afresh and addressed urgently, a vibrantly functioning ICC would be needed. For, the latter would prove a deterrent to Southern political and military strongmen, highly prone to power abuse and like excesses, from coming into being in the wake of the South’s chronic material woes and the wars and conflicts that result from them.

It stands to reason then that the US would be acting in its own interests by enabling the ICC to perpetuate its mandate without hindrance. For a crop of issues that impinges negatively on internal law and order would be defused.

Meanwhile, there needs to be a meeting of minds among the rest of the West to put back in place a North-South dialogue process aimed at reducing some of the economic pressures that are weighing on the South.

Since economics usually drives politics it will be in the interests of the world community to scrutinizingly re-visit North-South issues of the past and put in place economic relief packages for Southern publics that would enable them to tide over their material hardships rather than permit the latter to aggravate into social disaffection and eventually armed militancy. It is the latter juncture that paves the way for the emergence of authoritarian rulers in the South who then go on to be a blight on their publics.

Accordingly, the Southern-based global development thinking of the past that envisaged a more equitable world economic order needs to be seen as an urgent need. That is, NAM’s international development paradigms need to be resuscitated to the extent possible.

It is unlikely that rightist governments of the West, such as the current Republican administration in the US, would find these projects feasible, but democratic states of Europe, led by perhaps the UK, are likely to think otherwise. For it would not be beneficial for the democratic world to be having on their hands repressive governments in the South who would be gravitating towards the major military and economic actors of the South, such as Iran and North Korea, who tend to be in constant power struggles with the West.

However, until such time that the mentioned, pro-people initiatives are given serious thought the ICC would need to be enabled by the international community to be in place comfortably and carry on with its mandate of bringing repressive rulers to book. Besides the ICC should pave the way for the peoples of the developing world to enjoy some substantial respite from the political repression and even terror which tend to be their lot.

Meanwhile, the wars of West Asia are relentlessly aggravating the economic hardships of people everywhere, driving the point home to enlightened sections that there is no alternative to peacemaking. A challenge is to convert the US under President Trump to this line of thinking.

Features

Clear, soft and shine-free skin

Published

26 mins ago

2026/10/15

Thilina Walpola

This week, I give you five simple, time-tested homemade remedies that help reduce the appearance of blemishes, control excess shine and leave your skin feeling softer and smoother.

The Honey and Lemon Brightening Dab:

For stubborn blemish marks, this is a classic. Mix one teaspoon of pure bee honey with three to four drops of fresh lemon juice. Apply gently, only on the affected spots, and leave for 10 minutes before rinsing with lukewarm water. While honey soothes and softens, lemon helps to brighten naturally. Use twice a week in the evening.

Besan and Rose Water Oil-Control Pack:

An ideal remedy to combat shine, especially on the T-zone. Take two teaspoons of besan (gram flour) and mix with sufficient rose water to form a smooth paste. Add a pinch of turmeric for its antiseptic goodness. Apply evenly, keep for 15 minutes and wash off. It absorbs excess oil without over-drying, leaving a beautiful matte finish.

Aloe Vera and Cucumber Ice Soother:

Blend fresh aloe vera gel with the juice of a grated cucumber and freeze the mixture in an ice tray. Each morning, wrap one cube in a soft muslin cloth and gently rub over a cleansed face for 30 seconds. It calms, tightens pores and imparts a baby-soft smoothness.

Oatmeal and Curd Gentle Polish:

Roughness and old blemish marks need gentle exfoliation. Combine one tablespoon of finely powdered oatmeal with one tablespoon of fresh curd (yoghurt). Massage very gently, in circular motions, for one minute, leave for five minutes and rinse. It removes dead cells and unveils softer, clearer skin.

Multani Mitti and Green Tea Magic Mask:

Brew some green tea and allow it to cool completely. Mix one and a half teaspoons of Multani Mitti (Fuller’s Earth) with the tea water to make a fine paste. Apply for 10 to 12 minutes – do not let it dry and crack completely – and wash off. It draws out impurities, fades blemishes and bestows a fresh, shine-free glow.

A Gentle Reminder:

As with any natural remedy, always do a patch test on your inner arm first. For those with oily or combination skin, avoid heavy coconut oil application and harsh scrubbing, as they tend to aggravate shine and blemishes.

Features

Compete, shine and be discovered at WCOPA 2027

Published

26 mins ago

2026/10/15

Thilina Walpola

Dream of performing on a world stage? Well, here is your unique, golden opportunity!

The World Championships of Performing Arts (WCOPA) — the one and only official “Talent Olympics” — is the world’s premier global platform for aspiring singers, dancers, actors, models, instrumentalists, etc., to compete, shine and be discovered!

And, yes, this world stage is open to YOU, Sri Lankans living in Sri Lanka and overseas!

Held annually in glittering Las Vegas, WCOPA brings together over 70 countries, all competing for Gold, Silver and Bronze Medals, just like the traditional Olympics.

Lakisha Bernard: Will represent Team Sri Lanka at WCOPA 2027

Outstanding performers vie for the coveted titles of Junior and Senior Grand Champion Performer of the World, with winners and standout participants awarded over $500,000 in scholarships, cash awards and prizes to catapult their education and careers!

Sri Lanka is already making waves! At WCOPA 2026, Natharie Wickramasinghe, representing Team Sri Lanka, made the nation proud by winning a Bronze Medal in the Ethnic/Folklore Dance category!

Lakisha: Accomplished freelance Model and Fashion Design graduate

Recruitment for this prestigious competition is handled through a system of scouts and licensed National Directors — and this is where our very own Chris Rajendra, now based in Las Vegas, and National Director for Team Sri Lanka, comes into the scene.

If you are a singer, dancer, actor, model, instrumentalist — if you have talent burning inside you — contact Chris Rajendra today for registration and, who knows, you may find yourself in Las Vegas, and proudly draped in the Sri Lankan flag, at WCOPA 2027!

The contact address is: Chris Rajendra, wcopa.nationaldirector.sl@gmail.com

or chris.rajendra@gmail.com

Meanwhile, a star is born for 2027, in the form of Lakisha Bernard who is all set to represent Team Sri Lanka at WCOPA 2027.

Originally hailing from the sun-drenched coastal city of Colombo and now carving out her creative career in Canada, 22-year-old Lakisha is stepping into the international spotlight.

This accomplished freelance Model and Fashion Design graduate has officially been appointed as the Team Sri Lanka Promoter for Canada as she prepares to represent Team Sri Lanka at WCOPA in Las Vegas.

Lakisha brings a unique blend of high-fashion sensibility, captivating camera presence and expert garment design to the Team.

Having built her career, from local college shoots to high-glamour concepts, Lakisha’s inspiring journey embodies the true spirit of cultural bridge-building and creative resilience, bringing immense pride and recognition to Sri Lanka on the global stage.

WCOPA 2027 will be held at the legendary Westgate Hotel & Casino, Las Vegas, from 12th to 20th July – the very same iconic arena where the late, great Elvis Presley himself performed!

Your moment is now. Your stage is Las Vegas, so hurry and contact Chris Rajendra.