Midweek Review
Impact on Parliament
Landmark Nov. 14 SC ruling:
Parliament should look into how the Committee on Public Accounts (COPA) a couple of months ago recognized the Finance Ministry as a high performing government institution for its performance in 2019 and 2020. The Finance Ministry in spite of being embroiled in 2019 tax cut (implemented without parliamentary approval) and 2020 sugar duty scam and unpardonable negligence that led to economic collapse were awarded the Silver prize for 2019 and 2020. Awards were given at an event attended by President Ranil Wickremesinghe, the current Finance Minister and Premier Dinesh Gunawardena. COPA Chief Lasantha Alagiyawanna owed an explanation as to how the Finance Ministry was chosen for the honours. The SC ruling must compel COPA and Parliament to evaluate the Silver given to the Finance Ministry. We do concede those two were trying years and the Finance Ministry maintained a semblance of normalcy after the devastating Easter Sunday Carnage and COVID-19 pandemic not seen before in our living memory, delivered body blows, especially to tourism and so many other economic arteries of the country. But the question is whether this is the time to pat ourselves in the back when most of the country’s people are literally gasping for life.
By Shamindra Ferdinando
Pivithuru Hela Urumaya (PHU) leader and former Minister Udaya Gammanpila, MP, on Nov 16, 2023, said that the first warning of the impending economic crisis had been given by a section of the ruling Sri Lanka Podujana Peremuna (SLPP) in 2020.
The declaration was made in Parliament two days after the Supreme Court determined that ex-President Gotabaya Rajapaksa and former Finance Ministers Mahinda Rajapaksa (Nov 2019-June 2021) and Basil Rajapaksa (June 2021-April 2022), Treasury Secretary S.R. Atygalle (Nov 2019-April 2022) and ex-Governors of the Central Bank Prof. W.D. Lakshman (Nov 2019-Sept 2021) and Ajith Nivard Cabraal (Sept 2021-April 2022) bore responsibility for the current economic crisis. That determination was made in respect of several fundamental rights applications.
In addition to the above-mentioned politicians and officials, they found fault with Dr. P.B. Jayasundera, Secretary to the President, and the Monetary Board consisting of five persons. At the time of the crisis, the Monetary Board consisted of Governor CB Prof. W.D. Lakshman/Ajith Nivard Cabraal (ex-officio), Treasury Secretary S.R. Attygalle (ex-officio) and Samantha Kumarasinghe, Dr. Ranee Jayamaha and Sanjeeva Jayawardena, PC.
The SC, in a historic ruling, determined they violated the fundamental rights of the people by mismanaging the economy between 2019 and 2022.
Chief Justice Jayantha Jayasuriya, PC, Justices Buwaneka Aluwihare, PC, Priyantha Jayawardena, PC, Vijith K. Malalgoda, PC, and Murdu N.B. Fernando, PC comprised the bench. Justice Jayawardena disagreed.
But the judgement has exonerated ex-Central Banker Dr. Rani Jayamaha and senior Attorney-at-Law Sanjeeva Jayawardena from any penalty. Why did Dr. Jayamaha and Jayawardena not resign if they disagreed with those wrong policies?
Four days after the SC declaration, the Central Bank, in a statement headlined ‘COMPOSITION OF THE GOVERNING BOARD (GB) AND THE MONETARY POLICY BOARD OF THE CENTRAL BANK OF SRI LANKA’ stressed that Dr. Jayamaha and Jayawardena were no longer members of the Governing Board of CBSL appointed in terms of the provisions of the Central Bank of Sri Lanka (CBSL) Act, No. 16 of 2023. The new Act was passed on July 20, 2023. Dr. Ranee Jayamaha who had been a member of the Monetary Board (MB) since 29.07.2020, tendered her resignation from the MB with effect from 12.09.2023, and, therefore, was not a member of the GB. Jayawardena, who continued as a member of the GB, tendered his resignation with effect from 05.11.2023. Therefore, both Dr. Jayamaha and Jayawardena submitted their resignations before the Supreme Court made its final judgment.
Against the backdrop of the SC ruling, the role and the collective responsibility of the Cabinet-of-Ministers regarding the economic collapse should be thoroughly examined. Every member of the then Cabinet, including Attorney-at-Law Gammanpila, therefore bear the responsibility for the current crisis. the Members of the Monetary Board, too, should bear the collective responsibility.
In spite of the five-judge bench being divided 4 to 1 in favour of the decision, it is undoubtedly the most important judgment delivered since the enactment of the 1978 Constitution.
Many an eyebrow was raised when Namal Rajapakse, MP, addressing Parliament on Nov 20 questioned the right of the petitioners to challenge government policy in court. The former minister asserted that such was contrary to the Constitution.
Addressing the Parliament on Nov 16, on the third day of the Budget debate, Colombo District lawmaker Gammanpila said: “We warned in advance of the impending crisis. I’m happy, Dr. Ramesh Pathirana, who served as a member of the then Cabinet, is here. We sought a meeting with the then President Gotabaya Rajapaksa to discuss the deteriorating economic situation. Having repeatedly asked for a meeting we were finally granted an opportunity on Oct. 26, 2020. Dr. P.B.J, Treasury Secretary, Central Bank Governor and the then State Finance Minister Ajith Nivad Cabraal were among those present. The State Minister made the main presentation. We asked them to immediately decide on IMF intervention. All of us were of the view the country required IMF assistance to overcome the crisis. At that time Bangladesh experiencing a similar situation had taken steps to restructure their debt in addition to take a loan facility from the IMF. We stressed the need to restructure our debt. We proposed to seek IMF assistance. They didn’t pay attention to our request. Instead, we were told of them having a domestic solution.”
PHU leader Gammanpila explained how the government turned a blind eye to their repeated efforts to persuade the GR government to control fuel consumption by increasing prices or to introduce a quota system. Lawmaker Gammanpila recalled the SLPP attack on him after he declared on June 11, 2021 the immediate need to increase fuel prices due to the volatile economic situation. “Finally, a marginal increase of Rs. 7 and Rs 20 for a litre of diesel and petrol, respectively, was effected. The SLPP attacked me over the fuel increase even before the Opposition did.”
The SLPP owed the public an explanation why repeated warnings were ignored. Who actually convinced the Cabinet-of-Ministers of an impractical domestic solution? The bone of contention is whether someone deliberately thwarted counter measures, if taken, could have saved the country.
A callous approach
In spite of rapid deterioration of the economy, the Finance Ministry acted in a manner most unbecoming of one of the two most important ministries, the other being the Defence. Amidst the economic crisis triggered by the Corona epidemic, the Finance Ministry callously decided to issue duty free vehicle permits to 225 MPs of Parliament. That move went awry after print, electronic and social media mercilessly hammered the government.
Then the Finance Ministry shocked the country by slashing the Special Commodity Levy (SCL) on imported sugar. Special gazette notification, dated Oct 13, 2020, brought SCL on imported sugar from Rs 50 to 25 cents a kilo. The then Premier Mahinda Rajapaksa served as the Finance Minister while S.R. Attygalle functioned as the Secretary to the Treasury.
In August 2023, United Republican Front (URF) leader Patali Champika Ranawaka alleged that in spite of both the Committee on Public Finance and the Committee on Public Accounts recommendation that the government take measures to recover losses amounting to Rs 16 bn, the Wickremesinghe-Rajapaksa government is yet to do so.
By then, the Gotabaya Rajapaksa government has caused irreparable damage to the economy by slashing a slew of taxes. That ill-fated decision taken at the first meeting of the Cabinet-of-Ministers, chaired by President Gotabaya Rajapaksa in Nov 2019, marked the beginning of the end. Who actually convinced the wartime Defence Secretary who courageously spearheaded the war effort, that was brought to a successful conclusion in May 2009, to gamble on economic-political-social stability?
In April 2021, amidst further deterioration on the economic front, Dr. PBJ declared his confidence in the overall strategy.
ECONOMYNEXT, in an online report posted on April 04, 2021, quoted Dr. Jayasundera as having said: “President Gotabaya Rajapaksa knew revenue will be lost by tax cuts but he considered it an investment, and an 8 percent tax rate slashed from 15 percent, will remain unchanged for 5 years.”
The report was headlined ‘Sri Lanka President knew revenues will be lost, VAT cut to remain for 5 years: Jayasundera’
ECONOMYNEXT further quoted Dr. Jayasundera as having told Colombo Development Forum in April, 2021: “The President promised this nation a new taxation strategy. He knew the revenue will be lost but he considers that lost revenue as an investment in the country. Therefore, outdated archaic taxes have been given up. Single rate VAT has been introduced. New corporate structure has been introduced.”
Jayasundera is also on record as having said the value added tax cut from 15 to 8 percent will stay for another 5 years and income taxes will not be changed, but the deficit will be brought down to percent in the medium term with economic growth.
“We are assuring the tax regime that what we have instituted will not change. For the next 5 years VAT is 8 percent. Income tax is whatever the rate we have gazetted. No other taxes will be brought in. Custom base taxes will be rationalized. We need much more efficient, transparent, compliance, friendly, tax regime and that is given. If you want to raise the turnover, raise the volume, raise the GDP. That is what this is all about. The Treasury Secretary is not allowed to make any changes in taxes.”
What really went wrong? Dr. PBJ. is certainly not a novice and certainly one of the most capable and experienced people having been a veteran Central Banker who had been seconded to the Treasury from as far back as during Finance Minister Ronnie de Mel’s time and retained by virtually all governments up to the last regime in various capacities. He managed the economy as the Treasury Secretary during the costly fourth phase of the Eelam conflict at a time Western powers sought to undermine the economy in a bid to throw a lifeline to the sinking Tigers.
CBSL Chief sets the record straight
Those who carefully listened to the Governor of the Central Bank Dr. Nandalal Weerasinghe when he appeared before parliamentary watchdogs, namely Committee on Public Finance and Committee on Public Enterprises on May 24, and May 25, 2022, respectively, and his unparalleled attack on the political party system, also in Parliament, on August 31, 2022, clearly explained the circumstances leading to the current crisis. The August 31, 2022 speech must have been the strongest delivered by an official at any level in Parliament since independence (Change catastrophic strategies or face consequences – CB warns Parliament, The Island, Sept 07, 2022)
Unfortunately, political parties, represented in Parliament, and the media, didn’t pay sufficient attention to Dr. Weerasinghe’s views. Having perused the SC ruling on the economic collapse, the writer is of the view the SC judgment has justified the CBSL Governor’s declarations in Parliament over a year ago. The Island reported Dr. Weerasinghe’s bombshell revelation in a lead story, headlined ‘MR, ministers, CBSL Governor, Dr. PBJ ignored IMF warnings’ with strapline ‘Dr. Jayamaha says Monetary Board acted regardless of strong opposition’ (The Island, May 26,2022)
Dr. Weerasinghe didn’t mince his words when he declared that the government slashed taxes regardless of IMF advice and also disregarded the CB’s warning regarding the urgent need to secure IMF assistance
The GR government ignored Dr. Weerasinghe’s disclosure. At the time, the outspoken official appeared before the two parliamentary committees in late May 2022, Gotabaya Rajapaksa remained the President though the SLPP was in disarray in the wake of UNP leader Ranil Wickremesinghe receiving the premiership. The Gajaba Regiment frontline combat veteran remained confident of overcoming the crisis. Dr. Weerasinghe’s declarations at watchdog committees didn’t receive the attention they deserved. By the time Dr. Weerasinghe lambasted the political party system on Aug 31, 2022 in Parliament, Gotabaya Rajapaksa was overseas, having fled the country.
Had the SLPP genuinely felt the need to take remedial measures, it could have invited the Opposition to head a Special Parliamentary Select (PSC) Committee to probe the origins of the crisis and to make recommendations. Instead, the SLPP did absolutely nothing. Finally, the Wickremesinghe-Rajapaksa government appointed a PSC in July, 2023, 15 months after Dr. Weerasinghe’s disclosure and a year after Wickremesinghe election by Parliament as the President to complete the balance portion of the ousted President Gotabaya Rajapaksa’s term.
Now that the Supreme Court has declared its verdict, the PSC is irrelevant. The PSC that has been rejected by the main Opposition SJB serves no purpose. The party leaders without delay should reach a consensus on the PSC, headed by SLPP General Secretary and Attorney-at-Law Sagara Kariyawasam.
Perhaps, Prof. Charitha Herath, who has undertaken special assignment to produce a report on the economic ruination, should reconsider his project. The SC judgment must compel both the government and the Opposition to study the verdict.
SLPP lawmaker Namal Rajapaksa revealed how naïve he was when he recently declared that the Parliament is the best place to discuss the economic crisis and remedial measures. Had he listened to Dr. Weerasinghe’s declarations in Parliament in May and August last year, the former Sports Minister wouldn’t have said so. Lawmaker Rajapaksa should realize that having squandered previous opportunities to address the issues at hand, now the matter is certainly out of its hands. All political parties in Parliament should take the SC verdict seriously and appropriately address the issues raised therein.
The way forward
Let us hope all political parties represented in the current Parliament realize that they cannot overcome the crisis by political spin. The overall political environment is bleak. The continuing crisis in Sri Lanka Cricket (SLC) has exposed all with accusations and counter accusations directed at the executive, legislature and the judiciary.
The Wickremesinghe-Rajapaksa government’s response to Opposition backed Sports Minister Roshan Ranasinghe’s offensive against SLC has bared the fragility of even the parliamentary system. The SLC fiasco exposed all. Those who benefited from SLC ended with egg on their face. One thing is clear. The government hasn’t learnt from the catastrophic destruction suffered by the SLPP as a result of the SC judgment. The Supreme Court has given the public fresh hope that politicians and powerful officials aren’t immune to punitive actions. There is hope the SC judgment will strengthen the rule of law. Perhaps, the powerful attack on an utterly corrupt set up that destroyed the country may compel the executive, legislature and judiciary to take a fresh look at the situation on the ground.
The judgment underscored that no one is above the law. Dr. Harsha de Silva, MP, is on record as having said that those who had been faulted by the SC should be deprived of their civic rights. The former UNP State Minister is of the view that strongest possible measures should be taken against them all. The Anti-Corruption Movement affiliated to the SJB recently, in writing, requested President Ranil Wickremesinghe to suspend payment of pension, other facilities, security and vehicles to former Presidents Gotabaya Rajapaksa and Mahinda Rajapaksa. The SJB also asked for suspension of pension to others named by the SC.
But, the breakaway UNP group SJB must be reminded that it owed an explanation regarding three matters namely (1) Treasury bond scams perpetrated in Feb 2015 and March 2016 during the Yahapalana administration (2015-2019). Some of those MPs and several defeated candidates at the last parliamentary polls conducted in August 2020 actively supported bond racketeers. The two massive bond scams caused by that government is yet legally unresolved. For example, then Finance Minister Ravi Karunanayake who was termed by some overseas publication as the best such Minister, claimed, before the Presidential Commission of Inquiry that probed the first bond scam, he was not aware who paid for the costly penthouse he and his family occupied at the time in Colombo.
(2) Why as much as USD 12.5 bn were borrowed from the costly international bond market during the Yahapalana administration for inexplicable reasons without the country at the time either being in any financial crisis or undertaking any new major development projects.
(3) Finally what did the Yahapalana government intended to achieve by doing away with time-tested Exchange Control Act of 1953. The UNP and the SLFP voted for a new Foreign Exchange Act in 2017 that had been brazenly exploited by unscrupulous exporters and others. SJB leader Sajith Premadasa and two of its experts on economic matters Dr. Harsha de Silva and Eran Wickremarathe remained conveniently silent on this issue. It would be pertinent to mention that the controversial Bill was presented in late July 2017 by the then Prime Minister Ranil Wickremesinghe though he didn’t vote. Parliament approved the new law with 94 votes whereas 18 voted against. Others skipped the vote. That decision alone has enabled flight of capital ever since and still not corrected. So no wonder unscrupulous exporters for instance have parked abroad billions of dollars that should have been brought back to the country. So the above could be termed as one of the root causes of the debt crisis that the country is yet trying to extricate itself out of.
Midweek Review
US paying the price for disregarding military advice
Jayasekera
Sri Lanka recently sought Saudi assistance to introduce advance radar technology, capable of detecting approaching targets and drone capability to meet aerial threats. On behalf of the NPP government, that request was made by Deputy Defence Minister Maj. Gen. (retd) Aruna Jayasekera when he met Mohammed bin Abdulrahman Al-Ghribi, Commander of the Royal Saudi Naval Forces, on the sidelines of the World Defence Show 2026 in Saudi Arabia, in February, this year. They also discussed the possibility of Saudi ships visiting Colombo.
Jayasekera also sought training opportunities for SLAF in Saudi Arabia when he met Lt. Gen. Mazyad bin Sulaiman Al-Amro, Commander of the Royal Saudi Air Defence Forces. Jayasekera discussed with Vice Admiral Fahad Al Ghofaily, Deputy Chief of General Staff, the possibility of securing Saudi assistance to surveillance and deep sea operational capabilities of the Navy.
Saudi Arabia has been repeatedly hit by Iran during its counter offensive. In fact, Iran stepped up attacks in the wake of the US bombing of Kharg Island, a major Iranian oil facility. It would be pertinent to mention that Admiral Steve “Web” Koehler, Commander of the US Pacific Fleet, visited New Delhi and Colombo, less than 10 days before the outbreak of war, and here he met both Minister Jayasekera and Defence Secretary Air Vice Marshal (retd) Sampath Thuyakontha. It was Koehler’s second visit after the change of government in Sept. 2024. Don’t forget that it was Koehler’s command that alerted Sri Lanka, on the morning of 4 March, on the sinking of the unarmed Iranian frigate Dena.
The meticulously planned assassination of Iranian Supreme Leader Ayatollah Ali Khamenei on 28 February was meant to bring about a swift regime change and a victorious end to the war. The joint Israeli-US war machine assumed that such a high profile decapitation strike would pave the way for swift public uprising and capitulation of the Iranian government.
The aggressors, quite wrongly, assumed that those who launched the costly protest campaign in Iran, in late December last year, against the unbearable cost of living, would be able to exploit Khamenei’s assassination.
Unpredictable US President Donald Trump was so confident, on the first day of the offensive, that he urged the Iranian military to lay down their arms and its people to take over their government. International media quoted the Republican Chief as having said: “It will be yours to take”.
Trump disregarded his top military adviser, Chairman of the Joint Chiefs of Staff, Air Force General Dan Caine’s warning against attacking Iran. US media reported that Caine, who succeeded Air Force General C.Q. Brown, sacked by Trump in February 2021, warned that war could be risky, potentially drawing the US into a prolonged conflict.
Over two weeks into the war, the Israeli-US assumption seems utterly wrong with those, who genuinely believed in the sure collapse of the Iranian administration following the decapitating strike, are struggling to cope up with the spirited Iranian counter attacks. While enduring a much larger devastating bombing campaign, compared to the 12-day war in June last year, Iran overwhelmed Israel and Gulf countries where powerful US forces were stationed. Their costly missile defences seemed ineffective against Iranian missile and drone salvos that caused unprecedented chaos in the region.
But, what really astonished the Gulf states was Iran’s blockade of the Strait of Hormuz – the only maritime passage between the Gulf and the Gulf of Oman and the route for about a quarter of the global liquefied natural gas and seaborne trade from Gulf countries. This stunned the aggressors and those who blindly backed their despicable strategy.
Iran has categorically denied missile and drone attacks on Cyprus, Azerbaijan and Turkey. If Iran didn’t target them, who did? Whoever staged those attacks, their intention is clear. They want to involve NATO (North Atlantic Treaty Organisation) in the Israeli-US misadventure by hitting NATO members Cyprus and Turkey. Why would Iran attack Turkey against the backdrop of Ankara’s condemnation of Khamenei’s assassination, and also denied the use of its airspace, territory, and territorial waters to the US armed forces for the ongoing war?
The US announcement on March 12 that curbs on Russian oil would be lifted till April 11 underscored the gravity of the situation. Having failed to achieve a swift ‘regime change,’ their much touted primary objective in Operation ‘Epic Fury,’ the US has no option but to swallow its pride and seek Vladimir Putin’s intervention. The US ended with egg on face. It would be pertinent to mention the US sanctioned Russian oil immediately after the launch of Moscow’s Special Operation against Ukraine in February 2022. That ban had been based on the assumption that oil revenue enabled Russia to prolong the war in Ukraine.
Does the 11 April deadline mean that the Israel-US combine seriously believed that Iran could be defeated by that time? Intense media coverage of the conflict indicated that Israel and US objectives in Iran weren’t the same. Regardless of repeatedly vowing to achieve regime change in Iran, the aggressors ended up examining ways and means of exiting the conflict triggered by them. The way Iran has been responding to Israeli-US attacks, the West cannot fully restore Hormuz by the second week of April. Prolong war may force US to extend waiver on sanctioned Russian oil, thereby further strengtheing Putin.
The US-Israeli strategy has suffered in the absence of an anticipated large scale public uprising, in Iran, immediately after the decapitation strike. When that failed to materialise, as expected, the overall picture of the largest ever combined Israeli-US offensive changed.
Unilateral US decision to lift the ban on Russian oil, even temporarily, divided the western grouping backing Ukraine. In spite of the US being a critical member of that grouping, the Iranian action left Trump with no alternative but to ease pressure on global oil markets at Ukraine’s expense. The Europeans realise that the failure to effect regime change may compel Trump to extend waiver on oil sanctions on Russia.
What really went wrong? President Trump has been so confident of Iranian surrender he mocked British preparations for the deployment of aircraft carriers to the Middle East.
“The United Kingdom, our once Great Ally, maybe the Greatest of them all, is finally giving serious thought to sending two aircraft carriers to the Middle East,” President Trump declared on March 8. The humiliating Truth Social post appeared to be influenced by rash thinking.
“That’s OK, Prime Minister Starmer, we don’t need them any longer — But we will remember. We don’t need people that join Wars after we’ve already won!” President Trump ridiculed the British. Reference to the UK as a ‘once great ally,’ underscored the US-UK rift.
But several days later, Trump sought deployment of other navies, including that of the UK to break the Iranian blockade on Hormuz Strait.
Modi phones Pezeshkian
Had the Israeli-US project achieved its primary objective, namely regime change, Indian Prime Minister Narendra Modi wouldn’t have had to eat humble pie after declaring solidarity with Israel, just a few days before the unprovoked war. Prime Minister Modi, on March 12, nearly two weeks after the killing of Supreme Leader Khamenei, phoned Iranian President Masoud Pezeshkian.
Modi had no option but to get in touch with the post Khamenei Iranian leadership amidst growing turmoil in the country over disruption of vital gas and fuel supplies. India made its move as the US declared that New Delhi could turn to Russia for the time being. India desperately needed oil and required them as quickly as possible.
Having elevated India-Israel partnership to the highest level in the wake of Modi’s late February 2026 visit to Tel Aviv, on the eve of the unprovoked attack to decapitate the Iranian leadership, India found itself in an unenviable situation. The two-day visit led to what the two governments called “Special Strategic Partnership for Peace, Innovation and Prosperity.” In other words, the Israelis must have been working overtime on war preparations while Modi and Indian External Affairs Minister Dr. Jaishankar were visiting the Jewish State.
Modi’s call and a couple of calls from Dr. Jaishankar to his Iranian counterpart Abbas Araghchi facilitated the passage of fuel carriers. The US must have been deeply upset by the Indian move but that ensured the BJP, in power since 2014, brought the situation under control for the time being. The truth is India had been compelled to negotiate with Iran and the latter wouldn’t have given assurance regarding safe passage for vessels carrying fuel for India without being adequately compensated.
After rushing to Israel to show their servile loyalty on the eve of launching the unprovoked attack on Iranians, the Indian-Iran deal, in the aftermath of that folly, for safe passage for New Delhi’s vessels, proved that there were limits to the world’s solitary superpower. In the run-up to Modi’s call to President Pezeshkian, the Indian leader came under heavy Congress fire over India’s failure to promptly condemn the assassination of the Iranian Supreme Leader. Initially, the Indian government acted as if Congress criticism were irrelevant but it had to appeal to Iran in the wake of the closure of the Strait of Hormuz.
Iran appeared to have exploited India’s difficulties. Having overlooked India-Israel/US partnership and the sinking of the unarmed Iranian frigate ‘Dena’ on 4 March, Iran’s Ambassador to India, Mohammad Fathali, on 13 March declared their readiness to grant safe passage through the Strait of Hormuz for vessels on their way to India.
Responding to a question from an RT India correspondent, the envoy highlighted that Tehran considered New Delhi as a friend and that there were converging interests between the two countries.
Asked directly whether India would receive safe passage through the Strait, he replied: “Yes, because India is our friend. You will see it within two or three hours.” (RT India is a New Delhi-based, English-language television news channel officially launched in December 2025 by Russian President Vladimir Putin).
At the time Israel-US unleashed war on Iran, India wouldn’t have anticipated such a scenario-direct negotiation with Iran to secure energy supplies and the US having to waive the ban on Russian oil sales. How would India-Iran deal on safe passage for energy carriers impact on India-Israel/US relations?
Sri Lanka, rattled by the developing situation, swiftly followed suit to explore the possibility of securing Russian oil. Russian Ambassador in Colombo Levan Dzhagaryan, on the invitation of the government, met Foreign Minister Vijitha Herath, at the Foreign Ministry, and assured the Minister Moscow would be informed. However, whether that meeting would produce results, as desired by Sri Lanka, is not yet known. But, Sri Lanka, trapped in the US Indo-Pacific strategy, seems utterly helpless as President Trump’s unprovoked gangster-type actions roiled the world. Ambassador Dzhagaryan, who had served as Russia’s top envoy in Iran, from 2011 to 2022, during a recent interview with the writer explained how the West sought to defeat Russia in Ukraine and the events leading to the Special Military operation in February 2022.
Gulf States in turmoil

Dzhagaryan
The stepped-up US naval build-up against Iran made it clear that a combined Israel-US offensive was inevitable. Against that background, the significance of an invitation received by the Colombo-based media to meet UAE Ambassador in Colombo, Khaled Nasser Al Ameri, in late February, this year, was realised only after the eruption of the war.
Ambassador Al Ameri, who had been here since February 2022, never called such a meeting before during 25 February dinner meeting at Cinnamon Life at City of Dreams discussed issues amidst rising tensions. The writer was among the invited along with Kesara Abeywardena, Editor, Daily News, and Nisthar Cassim, Editor, Daily FT. Perhaps the Ambassador felt the need to comprehend the pulse of the Colombo media due to the presence of a significant Sri Lankan community employed in his country.
The Gulf countries that accommodated US forces arrayed against Iran never expected Tehran to go the whole hog. Both the US and Gulf countries obviously miscalculated Iranian determination in the face of unprovoked aggression. They had to pay a very heavy price but none more so than the UAE. The Iranians shattered the myth of their invincibility due to the deployment of costly US armaments.
Paula Hancocks reported for CNN on 10 March that more than 1,700 missiles and drones had been fired towards the UAE since the war began. Quoting the UAE Defence Ministry, Hancocks said that more than 90% of them had been downed by interceptors, fighter jets and helicopters.
President Trump admitted in an interview with CNN’s Jake Tapper recently that Iran’s willingness to strike its Arab neighbours had been his biggest surprise of the war. But, faced with relentless Israeli-US offensive, Iran couldn’t have endured the pain without inflicting losses on all those arrayed against the country. The Iranian reaction must be examined taking into consideration the killing of the country’s Supreme Leader, some of his family as well as top military leaders.
The US-led coalition will eventually overwhelm Iran but the rapidity with which that country hit back even after losing the top leadership may embolden those opposed to US strategies. That is the undeniable truth. The latest Israeli and US claims of targets taken out in Iran cannot be discussed without taking into account their claims last June. During the 12-day war against Iran, Israel and US launched massive attacks but the retaliatory campaign launched by Iran after 28 February onslaught proved that debilitating losses couldn’t be inflicted by air campaigns alone.
UAE and others had learnt a bitter lesson by being part of Israeli-US strategy meant to overwhelm Iran. They had proved that Iran couldn’t be subdued the way the US succeeded in Venezuela in January this year. Venezuela appeared to have reached a consensus with the US following the abduction of its President Nicolas Maduro. The speed the new Venezuela leadership switched its allegiance to the US is not surprising though disappointing.
“I thank President Donald Trump for the kind willingness of his government to work together,” Rodríguez posted on X on 5 March, in perhaps her most shameless act of kneeling since Maduro’s abduction. But, in Iran, the attempted regime change operation in spite of it being overwhelming with superior firepower had been thwarted by that country. Their retaliation has exposed the weakness in the overall US-led defence of what can be termed Gulf Arab countries.
The recent relocation of a significant part of the US anti-missile system deployed in South Korea, particularly to meet the nuclear armed North Korean threat underscored the inadequacy of overall defence of the region at the time Israel-US attacked Iran. Foreign media reported South Korea protesting against the US move though it couldn’t interfere in the US action.
Status of Iranian proxies
The Lebanese armed group Hezbollah reached a ceasefire agreement with Israel in November 2024, following year-long clashes. In spite of the ceasefire, according to international media, Israel continued military presence in that country and there were numerous ceasefire violations. However, Hezbollah largely abided by the ceasefire until the assassination of the Iranian Supreme Leader.
Hezbollah resumed large scale attacks on Israel following the 28 February attacks. Combined Iran-Hezbollah attacks on Israel caused significant trouble. Israel launched retaliatory strikes and expanded ground operations in Lebanon where over a million people were displaced amidst massive destruction of infrastructure.
The French offer to arrange direct talks between Israel and Lebanon to find a lasting solution to the developing crisis seems irrelevant as long as Israel-US action continues against Iran. The issue at hand is the Israel’s desire to obliterate Iran with US support. US media, particularly CNN, reported how the American public resented the expanding US role in the conflict, with Trump issuing contradictory statements regarding US objectives.
Hamas, whose October 2023 raid on Israel resulted in the ongoing conflict, appeared to have surprised Iran with its recent plea to Tehran not to attack Gulf Arab countries in retaliation for Israeli-US aggression. Iran simply ignored Hamas appeal.
Iran should be held responsible for pursuing destructive strategy in the region by sponsoring Hamas in Gaza, Hezbollah in Lebanon and Houthis in Yemen. The Israeli military action that followed the unprecedented October 2023 Hamas raid that caused well over 1,000 Israeli deaths weakened all Iran backed groups. Iran, in a way, used these groups as a buffer against the Jewish State. Lebanon, too, is a victim of Iranian strategy that empowered Hezbollah to take on Israel. US backed Israeli actions cannot be discussed under any circumstances turning a blind eye to Iranian funding of Hamas, Hezbollah and Houthis fought back in whatever way possible. People have forgotten President Ranil Wickremesinghe’s ridiculous declaration in late December 2023 that he would deploy an Offshore Patrol Vessel (OPV) in the Red Sea in support of US-led efforts to counter Houthi attacks on the vital shipping lane.
In spite of reports and claims of the Sri Lanka Navy sending an OPV there, actual deployment never took place. Sri Lankan vessels are not equipped to face possible missile and drone threats and in case of deployment would have been vulnerable to Houthi such attacks.
By Shamindra Ferdinando
Midweek Review
Digital Transformation in the Global South: Understanding Sri Lanka through India AI Impact Summit 2026
Artificial Intelligence has rapidly moved from being a specialised technological field into a major social force that shapes economies, cultures, governance, and everyday human life. The India AI Impact Summit 2026, held in New Delhi, symbolised a significant moment for the Global South, especially South Asia, because it demonstrated that artificial intelligence is no longer limited to advanced Western economies however can also become a development tool for emerging societies. The summit gathered governments, researchers, technology companies, and international organizations to discuss how AI can support social welfare, public services, and economic growth. Its central message was that artificial intelligence should be human centered and socially useful. Instead of focusing only on powerful computing systems, the summit emphasised affordable technologies, open collaboration, and ethical responsibility so that ordinary citizens can benefit from digital transformation. For South Asia, where large populations live in rural areas and resources are unevenly distributed, this idea is particularly important.
One of the most important concepts promoted at the summit was the idea of “people friendly AI.” This means that artificial intelligence should be accessible, understandable, and helpful in daily activities. In South Asia, language diversity and economic inequality often prevent people from using advanced technology. Therefore, systems designed for local languages and smartphones play a crucial role. When a farmer can speak to a digital assistant in Sinhala, Tamil, or Hindi and receive advice about weather patterns or crop diseases, technology becomes practical rather than distant. Similarly, voice based interfaces allow elderly people and individuals with limited literacy to use digital services. Affordable mobile based AI tools reduce the digital divide between urban and rural populations. As a result, artificial intelligence stops being an elite instrument and becomes a social assistant that supports ordinary life.
Transformation
The influence of this transformation is visible in education. AI based learning platforms can analyse student performance and provide personalized lessons. Instead of all students following the same pace, weaker learners receive additional practice while advanced learners explore deeper material. Teachers are able to focus on mentoring and explanation rather than repetitive instruction. In many South Asian societies, including Sri Lanka, education has long depended on memorisation and private tuition classes. AI tutoring systems could reduce educational inequality by giving rural students access to learning resources similar to those available in cities. A student who struggles with mathematics, for example, can practice step by step exercises automatically generated according to individual mistakes. This reduces pressure, improves confidence, and gradually changes the educational culture from rote learning toward understanding and problem solving.
Healthcare is another area where AI is becoming people friendly. Many rural communities face shortages of doctors and medical facilities. AI-assisted diagnostic tools can analyse symptoms or medical images and provide early warnings about diseases. Patients can receive preliminary advice through mobile applications, which helps them decide whether hospital visits are necessary. This reduces overcrowding in hospitals and saves travel costs. Public health authorities can also analyse large datasets to monitor disease outbreaks and allocate resources efficiently. In this way, artificial intelligence supports not only individual patients but also the entire health system.
Agriculture, which remains a primary livelihood for millions in South Asia, is also undergoing transformation. Farmers traditionally rely on seasonal experience, but climate change has made weather patterns unpredictable. AI systems that analyze rainfall data, soil conditions, and satellite images can predict crop performance and recommend irrigation schedules. Early detection of plant diseases prevents large-scale crop losses. For a small farmer, accurate information can mean the difference between profit and debt. Thus, AI directly influences economic stability at the household level.
Employment and communication
Artificial intelligence is also reshaping employment and communication. Routine clerical and repetitive tasks are increasingly automated, while demand grows for digital skills such as data management, programming, and online services. Many young people in South Asia are beginning to participate in remote work, freelancing, and digital entrepreneurship. AI translation tools allow communication across languages, enabling businesses to reach international customers. Knowledge becomes more accessible because information can be summarised, translated, and explained instantly. This leads to a broader sociological shift: authority moves from tradition and hierarchy toward information and analytical reasoning. Individuals rely more on data when making decisions about education, finance, and career planning.
Shared conditions
The impact on Sri Lanka is especially significant because the country shares many social and economic conditions with India and often adopts regional technological innovations. Sri Lanka has already begun integrating artificial intelligence into education, agriculture, and public administration. In schools and universities, AI learning tools may reduce the heavy dependence on private tuition and help students in rural districts receive equal academic support. In agriculture, predictive analytics can help farmers manage climate variability, improving productivity and food security. In public administration, digital systems can speed up document processing, licensing, and public service delivery. Smart transportation systems may reduce congestion in urban areas, saving time and fuel.
Economic opportunities are also expanding. Sri Lanka’s service based economy and IT outsourcing sector can benefit from increased global demand for digital skills. AI-assisted software development, data annotation, and online service platforms can create new employment pathways, especially for educated youth. Small and medium entrepreneurs can use AI tools to design products, manage finances, and market services internationally at low cost. In tourism, personalized digital assistants and recommendation systems can improve visitor experiences and help small businesses connect with travelers directly.
However, the integration of artificial intelligence also raises serious concerns. Digital inequality may widen if only educated urban populations gain access to technological skills. Some routine jobs may disappear, requiring workers to retrain. There are also risks of misinformation, surveillance, and misuse of personal data. Ethical regulation and transparency are therefore essential. Governments must develop policies that protect privacy, ensure accountability, and encourage responsible innovation. Public awareness and digital literacy programs are necessary so that citizens understand both the benefits and limitations of AI systems.
Beyond economics and services
Beyond economics and services, AI is gradually influencing social relationships and cultural patterns. South Asian societies have traditionally relied on hierarchy and personal authority, but data-driven decision making changes this structure. Agricultural planning may depend on predictive models rather than ancestral practice, and educational evaluation may rely on learning analytics instead of examination rankings alone. This does not eliminate human judgment, but it alters its basis. Societies increasingly value analytical thinking, creativity, and adaptability. Educational systems must therefore move beyond memorization toward critical thinking and interdisciplinary learning.
In Sri Lanka, these changes may contribute to national development if implemented carefully. AI-supported financial monitoring can improve transparency and reduce corruption. Smart infrastructure systems can help manage transportation and urban planning. Communication technologies can support interaction among Sinhala, Tamil, and English speakers, promoting social inclusion in a multilingual society. Assistive technologies can improve accessibility for persons with disabilities, enabling broader participation in education and employment. These developments show that artificial intelligence is not merely a technological innovation but a social instrument capable of strengthening equality when guided by ethical policy.
Ultimately, the India AI Impact Summit 2026 represents a symbolic shift in the global technological landscape. It indicates that developing nations are beginning to shape the future of artificial intelligence according to their own social needs rather than passively importing technology. For South Asia and Sri Lanka, the challenge is not whether AI will arrive but how it will be used. If education systems prepare citizens, if governments establish responsible regulations, and if access remains inclusive, AI can become a partner in development rather than a source of inequality. The future will likely involve close collaboration between humans and intelligent systems, where machines assist decision making while human values guide outcomes. In this sense, artificial intelligence does not replace human society however transforms it, offering Sri Lanka an opportunity to build a more knowledge based, efficient, and equitable social order in the decades ahead.
by Milinda Mayadunna
Midweek Review
‘Conversational reading’ with children
Enhancing Sensibility
In our contemporary culture, we have lost our age-old tradition of intergenerational transmission of stories through spoken word, and our children have lost their romance with the printed word. These were the observations made by several learned contributors to this journal in recent times. In this context, I was interested in reading the informative article titled, ‘The Art and Science of Communicating with Your Little Child’ [The Island, March 5, 2026] by senior Paediatrician Dr. B. J. C. Perera, in which he underscores the significance of meaningful communication of children, mostly with their parents, in designing the ‘architecture of their minds’, a task which cannot be served by apps, vocabulary flashcards, or educational television. Dr. Perera, has drawn a consilience between science and sensibility.
While acknowledging the developmental benefits of appropriate social interactions, stories listened to and read by children in their formative years, I wish to address the allied topic of conversational reading [also known as dialogic or interactive reading] which provides a wider area of growth and sensibility. Not pretending it to be a novel idea, I write with the hope of raising the awareness of parents, grandparents and teachers alike, of the wider scope of the topic, in view of recent research of its developmental benefits for children,
Nowadays, children spend countless hours immersed in electronic media [e. g. smart phones, social media, gaming etc.] without guidance from parents who are occupied with busy work schedules. Children have less time for reading outside the school curriculum and to have a meaningful dialogue. While not denying the immense benefits of technological advances, social media mainly provide sensation and impression, offering less depth and complexity of thought. They also provide an escape from a ruthlessly competitive education system with tuition outside school hours and burdensome homework. It is now becoming increasingly evident that overindulgence in social media use has the potential to cause pervasive detrimental effects on children relating to their emotional stability, impulse control, sleep pattern and interpersonal skill.
Before embarking on the subject of Conversational Reading and its developmental benefits, I wish to briefly address the topics of intergenerational storytelling and reading.
Intergenerational Story-telling
The tradition of intergenerational storytelling is a universal exercise, perhaps dating back to the development of language itself. Typically, stories are told for transferring information or education or for entertainment. Early humans such as the Aboriginal People of Australia, who lived before the development of the written word, story-telling by tribal elders [‘knowledge keepers’] was the primary mode of transmission of knowledge, values and life lessons. It was a powerful tool for education, intertwined with art, songs and dances, fostering beliefs about creation, ancestral spirits, and connection to the land. The stories helped to pass down generations, a sense of cultural identity and the need to live in harmony with each other and with the environment.
Story-telling through Printed Word
Following the development of the written word by Sumerians in Mesopotamia around 3500 – 3200 BCE and printing on paper by the Chinese in 868 CE, stories were delivered to some extent through the printed word. The first printed children’s story on paper, ‘Orbis Sensualium Pictus’ [The World of Things Obvious to the Senses drawn in Pictures’] published in 1658 by John Amos Comenius, the Czech educator, was an educational book with illustrations that inspired joyful learning in children. Since then illustrated story books were marketed for pleasure reading. Combining pictures with words became a delightful way to tell a story, as in the fairy tales by Hans Christian Andersen, Alice’s Adventures in Wonderland by Lewis Carroll and The Tale of Peter Rabbit by Beatrix Potter. Stories were presented in both prose and verse.
We Sri Lankans are endowed with a wealth of children’s literature pioneered by such literary figures as Kumaratunga Munidasa, Ananda Rajakaruna, Tibetan [Sikkimese] monk Rev. S. Mahinda, V. D. De Lanarolle, Piyadasa Sirisena, G.H. Perera and others. They transformed folk tales into prose and poetry for supplementary reading. Edwin Ranawaka translated children’s stories from English to Sinhala with modifications to suit the local readership. They were men of vision who inspired the young with their literary work aimed at enhancing their creativity, sensitivity and tranquillity to prepare them for the challenges of the future. Our literary icon, Martin Wickremasinghe, was ahead of his time in recognising the importance of children’s literature and its positive impact on their psychosocial and intellectual development. In his book ‘Apey Lama Sahithyaya’ [Our Children’s Literature] in the immediate post-independent era he made the astute observation that a nation without children’s literature rooted in its heritage may face intellectual and moral decline. Wickremasinge regretted that despite the above contributions, we have been slow in developing a children’s literature of our own, although such a literary genre has long been established in the west.
I apologise for not being able to add to the above any Tamil authors of children’s stories due to my lack of knowledge.
Regular exposure to reading books has a long list of benefits for children: reading expands exposure to language and new vocabulary, builds foundational skills such as prediction, sequencing, and summarising, and introduces characters and worlds far beyond a child’s family or neighbourhood. Reading is a powerful technique in broadening social, emotional and cognitive development of children.
Conversational Reading
Recent research in childhood education and psychology has shown that conversational reading with children in their early formative years [in the main the pre-primary and primary school years] can both broaden and deepen the already known developmental benefits of the reading experience.
Conversational reading is the art of reading to and reading with children of an age appropriate piece of prose or verse by an adult, in a two way interactive process, exploring their thoughts and feelings about what is read and helping them to articulate their views within their capacity. It is fundamentally different from simply reading the words in a book to a child. It promotes the use of open-ended questions to create conversations while reading. In this dynamic, the child and the adult [parent, grand-parent, or teacher] contribute to the conversation in equal parts. Conversational reading in the school setting with a group of children offers greater benefits as it encourages discussion amongst them.
Research findings on conversational reading shows a wide range of developmental benefits – cognitive, emotional, and social.
Significant improvements in language development, especially in the areas of expressive vocabulary, word acquisition and sentence structure through modelling and meaningful conversations.
Such meaningful conversations enhance reading comprehension by reflection on characters and events and encourage critical thinking by looking beyond the narrative. Their active participation increases their imagination and creativity and their motivation to read.
Children being active participants, rather than passive listeners, improve their communication skills and encourage respectful discourse and help raise their self-esteem.
It enhances social and emotional understanding through exploration of feelings and relationships, being insightful of others’ perspectives and the development of empathy.
It enables strengthening of emotional bonds with adults through meaningful dialogue.
It is a joyful exercise that facilitates learning.
Reading with children and talking with them about what matters is more important than ever before. Reading fluency, comprehension, and ability to relate the ideas in a story to yourself and the wider world are the building blocks of imagination, empathy, critical thinking, and creativity—all crucial qualities which give children the ability to better understand themselves and others and to find their place in the world.
by Dr Siri Galhenage,
MBBS, DPM, MRCPsych, FRANZCP
Psychiatrist [Retd]
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