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Lanka struggles to get back on track

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by G.Kumanayake

Sri Lanka is facing an unprecedented economic crisis. The inefficient, corrupt politicians brought this country to bankruptcy. Now the country depends on credit lines, swaps and foreign aid. Since independence we never had visionary leaders. They were engaged in short-sighted power games and neglected the economic development.

Nevertheless, since 2005, the Rajapaksa family’s contribution to the economic decline cannot be underestimated. Mahinda Rajapaksa’s vanity projects such as the Mattala Airport and the International Conference Hall in Hambantota caused colossal harm to the country’s economy. “Sanda Hiru Seya”, the gigantic dagoba in Anuradhapura is another classic example. Most of the infrastructure projects are not economically productive.

The ‘Yahapalana Government’ which came into power in 2015 continued to obtain foreign loans. Their so-called development projects did not bring substantial benefits to the national economy. No attempt was made to curtail unnecessary expenditure. Instead, that Government imported super luxury vehicles for politicians and bureaucrats several times. For that purpose, supplementary estimates were passed in Parliament. Moreover, that Government failed to introduce the necessary economic reforms.

Total Government Debt (Rs. Million)

Year Amount

2011 5,137,762

2012 6,082,950

2013 6,889,212

2014 7,486,862

2015 8,599,190

2016 9,478,869

2017 10,382,833

2018 12,030,548

2019 13,031,543

2021 15,117,247

2022 17,589,373

Sources: Central Bank Annual Reports

All Governments continued to borrow heavily and repaid at higher interest rates. The foreign exchange reserves virtually dried up. Now the country has defaulted on its debt. Our excessive spending and limited revenue caused Balance of Payment problems. Thus, it is obvious that the current economic crisis is not due to the COVID – 19 pandemic or the War in Ukraine. It is caused by stupid political decisions and purely a man-made disaster. Covid and Ukraine only aggravated our problems. It is true that energy and food prices are escalating at the global level. But Sri Lanka’s main problem is the forex shortage.

Due to the lack of US dollars all sectors are affected. The non-availability of medicine and medical equipment is a grave problem. It has been pointed out that even the local producers are unable to produce drugs as there are no dollars to purchase raw materials.

Sadly, we find it very difficult to unload cargo. Recently a crude oil tanker arrived at the Port of Colombo and demurrage to the tune of US$ 75 million was paid to unload crude oil!

President Gotabaya Rajapaksa recently said that he was not responsible for the crisis. Then he admitted that some of his decisions were wrong. Sri Lanka’s food security is at a perilous state due to the fertiliser fiasco. Gotabaya and his CBSL Governor Cabraal flatly refused to seek the IMF’s assistance. When the Government’s loincloth caught fire, Ali Sabry, the newly-appointed Finance Minister was dispatched to Washington. GR appointed his two brothers Mahinda and Basil as Finance Ministers who were clueless about the economy. His myopic tax cuts weakened the economy. Thus, Gotabaya is primarily responsible for the current pathetic situation.

Now Sri Lanka struggles to get back on track. The focus should be on how to earn forex. The country must expand its FDI and export sectors. Sri Lanka’s FDI in 2020 was mere 548 million. Other Asian countries are far ahead.

US$ billion in 2020

Hong Kong 120

Singapore 28

Indonesia 19

Vietnam 16

Recently a high-ranking officer of the Board of Investment (BOI) took part in a TV programme and said that it was difficult to attract more FDI due to many ‘external factors’. Several other government institutions must perform certain tasks and those are beyond the limits of the BOI. Having functioned for the past 40 years, isn’t it high time to address these issues? Can the BOI come up with such ‘excuses’ for the failure to attract substantial FDI?

Another important sector is tourism. We need a robust plan to attract more tourists. The chairperson of Sri Lanka Tourism tendered her resignation after submitting a strongly worded letter to the new Tourism Minister. A battle went on between the chairperson and the Sri Lanka Association of Inbound Tour Operators. All stakeholders must work hard to revive the tourism sector.

The export sector is showing some progress. However, export crops such as tea and cinnamon face serious problems due to the chemical fertiliser and weedicide shortage. The country needs effective strategies to develop the export sector. High tech exports form only 1.5% of Sri Lanka’s manufactured exports. In Singapore it is high as 57%. In Malaysia and Thailand, it is 55% and 27% respectively.

Corruption hampers economic development. Under all governments corruption flourished. In 2021, Sri Lanka’s corruption index was 102 out of 180 countries! The SLPP successfully used the Central Bank Bond Scam against the previous Government. But we saw many serious corruption cases under the present administration. For example, the Auditor General’s report says that the total loss of the sugar scam is around Rs. 102 million. No genuine efforts are being made to eradicate corruption. The Bribery Commission is impotent.

Another point should be stressed. In our country almost all institutions had failed. For example, has Parliament effectively performed its oversight role? Every rupee that belongs to the Treasury should be controlled by Parliament. Then, how public finances had been allocated for unproductive ventures? The two main watchdog bodies, COPE and COPA, are like toothless tigers. Moreover, the involvement and enthusiasm of the members are not satisfactory. Some of them attend the committee meetings unprepared. Some officers do not follow the directions/ recommendations of the committees. Fiscal Management Responsibility Act No.3 of 2003 has not been able to serve the purpose.

Prime Minister Ranil Wickremasinghe stated that US$ 600 million would be required to ensure adequate supply of fertiliser. However, we wasted valuable forex to purchase substandard fertiliser from India and China. For the Chinese ‘carbonic fertiliser’ ship, which was rejected by the Sri Lankan scientists, US$ 6.9 million was paid. Has anyone been found guilty of the harmful decision? Where is the accountability? Many such irrational decisions are made, and millions of rupees of public funds wasted.

To get back on track, Sri Lanka needs an able leadership. Gotabaya Rajapaksa has failed miserably. He was elected by 6.9 million voters to govern the country democratically. He dashed their hopes. Now his credibility is at the lowest level. Undoubtedly, he is the most inefficient leader of Sri Lanka since Independence. His mandate is no longer valid. Constitutionally he can be the President until his term expires. Nevertheless, he has no moral right to hold the presidency. Thus, the ‘Gota go home’ slogan is valid. The protesters are rightly asking him to step down.

Hobbes, Locke and Rousseau expounded the Social Contract theory. Accordingly, ‘each person agrees to surrender some of his or her rights and freedom to a central authority on the condition that every other person does the same. In exchange, each person receives the benefits that supposedly only such a central authority can provide, including domestic peace. The authority must provide protection to individuals. Maintenance of social order is included.’ At present all Sri Lankans suffer a lot. Especially, the vulnerable segments are badly affected. In May, the overall inflation rate rose to 39.1%. Social unrest is widespread. People have lost confidence in the Government.

When Ranil Wickremesinghe was sworn in as the Prime Minister on May 12, liberal minded and pro-business people expressed their pleasure. They thought that Western countries and the international lending institutions would generously assist Sri Lanka. But the reality is that Ranil or any other individual cannot perform miracles. There is no point in pinning hopes on a ‘saviour’. On May 30 the World Bank reiterated that it does not plan to offer new financing to Sri Lanka until an adequate macroeconomic policy framework is in place. It is obvious that Wickremesinghe came forward to protect the extremely unpopular Gotabaya Rajapaksa regime.

Then a new Cabinet was formed with the same old faces, except for the two SJBers, who were solely interested in Ministerial portfolios. The man who failed to pay his massive electricity bill was awarded a ministererial post. And the person who proudly declared that he saved the Rajapaksas when they faced serious corruption charges is also a Minister. What can the country expect from such a gang?

The country’s future is bleak. The citizens’ agony is immeasurable. They will have to face more formidable challenges in the near future. Ironically, the stupid, arrogant politicians who brought misery to the nation are the least affected! They are unbelievably wealthy!

(The writer retired as chief research officer of Parliament)



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Why ‘Southasianness’ should continue to matter for the ‘SAARC Eight’

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Ambassador Ravinatha Aryasinha (at centre of top table), other dignitaries and the RCSS team at the formalization of the SAU-RCSS agreement.

At a time when Sri Lanka’s foreign policy is coming under intense scrutiny by some local sections it is only right that impartial and independent commentators shed some clarity on what fundamental foreign policy directions Sri Lanka ought to take. The extremely fluid and complex nature of current international politics renders such an understanding crucially important.

Given its vulnerabilities in a number of spheres Sri Lanka has no choice but to persist in broadly following the path of Non-alignment. That is, it should be ‘a friend of all and an enemy of none’, to the extent possible. However, it does not follow that in the process it could compromise what is seen as its national interest.

The latter point needs stressing against the backdrop of the criticisms the Sri Lankan government has been attracting from some quarters over what is made out to be some opaqueness in security and defence cooperation agreements it has entered into with India. It remains advisable for the Sri Lankan government to enter into pacts of this nature with India, but the government is obliged to disclose the contents of these agreements to the Sri Lankan people without undue delay in consideration of the uncompromisable sovereign rights of a people in a democracy.

However, there is no denying that the government should make it a central foreign policy premise to always work in cooperation with India. A consideration of what it cost Sri Lanka in the past to be in a disharmonious relationship with India and how such policy missteps worked against Sri Lanka’s best interests ought to dictate to Sri Lanka the advisability of maintaining uninterrupted cordial ties with India. Moreover, common sense ought to drive home to a country the costs of being at loggerheads with one’s closest neighbour who has also proved a ‘ready friend in deed.’

That said, it is the bounden duty of Sri Lanka’s diplomatic community or establishment to ensure that such cooperation does not degenerate into a policy of subservience towards India. That is, finesse and farsightedness in local diplomacy become prime requirements.

While India’s geographical location and physical size, besides her other strengths, contribute towards her centrality in regional and world affairs, her neighbours would be thinking and acting far-sightedly if they not only focus on India and her legitimate interests but also ensure continuous friction-free intra-South Asian relations. That is, for them collective South Asian well being should be of fundamental importance.

Much more than for India perhaps, such harmonious ties are of inestimable importance to India’s neigbours who are up against multiple vulnerabilities which are to a great extent regionally rooted. The latter could never, that is, afford to take their minds off the region’s collective development prospects.

The above are some of the reasons why it could prove highly counter-productive and self-defeating for the ‘South Asian Eight’ to render dormant and ineffective the historic SAARC organization. Rather than ‘dead’ SAARC has been allowed to drift into the ‘Limbo of Forgotten Things.’

The growing inter-dependence of the ‘SAARC Eight’ ought to impress on the collectivity the need to step-up regional cooperation in multiple areas which impinge on its members’ legitimate interests. For instance, the youth-led ‘Cockroach’ revolts, first in India and subsequently outside, should convince South Asia that it is continuing to be plagued in a major way by poverty and equity-linked issues. That is, West-inspired, largely market economics-dictated ways to see an end to poverty are simply not working completely.

Likewise climate-related questions are ravaging South Asia in unimaginable ways; Nepal being just one case in point. The rationale for regional cooperation remains valid and undefeated. It is time for revived and stepped-up SAARC cooperation. That is, the solutions to the region’s development dilemmas need to be found in mainly the region.

This amounts to making a case for a continued sense of ‘Southasianness’ among the SAARC countries. That is the conviction should be firm that they know their developmental challenges best and that answers to these issues must be primarily evolved by the grouping itself in cooperation with concerned sections.

From the above viewpoints the Regional Centre for Strategic Studies (RCSS), Colombo did very well to tie-up with the South Asian University (SAU), India, to increase public awareness on the developmental problems affecting South Asia and for initiating a number collaborative measures that aim at ameliorating them. The relevant agreement was formalized in early September at the RCSS. The sealing of the pact took place under the aegis of SAU President Prof. K.K. Aggarwal and RCSS Executive Director Ambassador Ravinatha Aryasinha.

A press release issued by the organizations said the collaboration aims ‘to foster research networks, partnerships and collaborations for transformative change across South Asia.’ It also mentioned that the partnership marked the first agreement to be signed by SAU with an independent think tank in Sri Lanka.

Among other things, pacts such as the above are bold moves in the direction of fostering a spirit of intellectual independence in those areas of the South facing some of the stiffest developmental challenges. Rather than ‘import’ solutions to these challenges from outside the region, the SAU-RCSS initiative aims at fostering fresh approaches to evolving solutions to problems that are uniquely South Asian.

It is hoped that the SAU and RCSS initiative while leading a to a greater degree of Southern intellectual independence in the area of development thinking would also help in kick-starting the SAARC process all over again in a major way.

What ought to lend fresh urgency to the latter undertakings are fast-breaking current developments in international politics. It ought to be perceived by the most underdeveloped regions of the South that going forward their well being would matter least or not at all to the major powers of both East and West.

For example at the time of writing the foremost among US and Chinese political leaders are meeting in the US in what is made out to be a historic coming together of sorts to address issues of common concern. It is highly unlikely that the parties would be addressing the economic preoccupations of the least developed countries. The same goes for other states that matter from the East and West.

Essentially, the US and China would be looking at ways of strengthening business ties that matter majorly for them. The South and its issues would prove to be of peripheral interest, if at all they happen to matter to the protagonists. Such developments ought to be fresh reminders to the South and their collaborative organizations that there is no escaping self-help and joint solidarity.

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Is Sri Lanka prepared for global literacy crisis?

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by Prof. M.W. Amarasiri de Silva

Adult literacy has for a long time been one of Sri Lanka’s greatest sources of pride, serving as a social indicator that has set the country apart from several of its neighbours in the region. For many years Sri Lanka has been recognised for keeping its literacy rates at a level like those of middle-income countries and even some high-income ones, even though it has faced economic difficulties and political instability. However, since new global research has now shown an unexpected and concerning decline in adult literacy in several high-income countries, it is important to consider what this means for Sri Lanka.

The phenomenon described by Jishnu Das, Yash Dhuldhoya and Ethan Sager, the unexplained fall in functional literacy among adults in wealthy nations. calls for a more thorough examination of the nature of literacy, the pressures exerted by the modern information environment, and the vulnerabilities that Sri Lanka might encounter as it moves towards a more digital, ageing and complex society. Even though Sri Lanka’s basic literacy rates remain high and steady, the global trend acts as a warning that literacy is not a fixed accomplishment but a dynamic capability which must be continually fostered, safeguarded and adapted to changing circumstances.

Decline in functional literacy

The drop in literacy rate in high-income countries is not due to people losing the ability to read or write in the ordinary way. On the contrary, it reflects a decline in functional literacy, which is the capacity to deal with, understand, and apply information in real-life situations. This kind of literacy involves following instructions, comprehending official documents, using digital interfaces, interpreting medical information, and making sense of complicated texts that demand continuous attention.

Researchers stress that the decline cannot be attributed merely to disruptions caused by COVID-19 or the increasing use of smartphones; instead, there is going on something more fundamental: a weakening of the cognitive and informational bases that adults need to function properly in modern society. In countries such as the United States, the percentage of adults regarded as functionally illiterate has increased significantly, indicating that even highly educated societies are having difficulty in keeping up the skills required to handle ever more complex streams of information.

Sri Lanka immune?

At first sight, Sri Lanka seems to be immune from this trend. The country’s adult literacy rate is still above 92 per cent and youth literacy is even higher. According to the 2024 Census, literacy rates exceed 97 per cent among people aged ten and over, with nearly equal levels between the sexes. These figures show the continued strength of Sri Lanka’s system of free education, a system which in the past has guaranteed widespread access to school and has produced generation after generation of citizens who could read and write at a basic level.

There has also been a steady improvement in educational attainment, with an increasing number of adults finishing secondary education and a larger proportion going on to tertiary institutions. Unlike the mysterious drops observed in rich countries, Sri Lanka’s literacy figures demonstrate stability and even a slight improvement.

However, although the surface appearance is reassuring, an even more complicated reality exists. The literacy figures for Sri Lanka only record basic literacy, that is, the ability to read and write simple sentences, and they do not include measures of functional literacy. It is impossible to tell from these statistics whether adults can interpret a bank statement, understand a medical prescription, use an online government portal, or critically assess information that is spreading on social media. As is shown by the global trend, having a high level of basic literacy does not ensure a strong degree of functional literacy. On the contrary, functional literacy can fall even if basic literacy stays the same. This difference is important for Sri Lanka, particularly since the country is currently experiencing rapid digitalization, demographic ageing, and social change.

Major risk factor

A major risk factor is the move towards digital information environments. In high-income countries, researchers believe that the prevalence of smartphones and short-form digital content may be diminishing people’s ability to engage in deep reading. Nowadays, individuals take in information in short, rapid segments by scrolling through social media feeds, quickly reading headlines, and viewing short videos. Such behaviour decreases the opportunity for sustained reading, which is necessary for keeping comprehension, critical thinking, and the capacity to deal with complex information intact.

Sri Lanka is going through a comparable change. There has been a sharp increase in the number of people using smartphones, and social media sites have become the main sources of news, leisure, and communication. Although there are many advantages to having digital access, it also results in a situation where superficial reading becomes the standard approach and could therefore lead to a decline in functional literacy over time.

Demographic ageing as challenge

A further challenge that is coming up is demographic ageing. Sri Lanka is rapidly moving towards becoming an ageing society, with an increasing number of older people who might experience cognitive decline, have less exposure to new information, and enjoy few opportunities for further learning. In high-income countries, ageing populations have led to a fall in functional literacy since older individuals have had difficulty adapting to digital systems and complicated bureaucratic procedures.

The older generation in Sri Lanka, many whom were educated many decades ago under different curriculum standards, could end up becoming increasingly vulnerable in a world in which essential services, such as banking and healthcare, are being moved online. If appropriate support is not provided, the country may witness a growing gap between basic literacy and functional literacy among older adults.

In Sri Lanka, the way in which administration and the workplace are organised has in the past placed greater trust in personal communication and on basic forms of documentation. What in high-income countries would require complex reading is instead carried out through face-to-face contact in Sri Lanka. Nevertheless, this situation is now changing. Government services are becoming available online, banks are introducing digital systems, and in workplaces there is an increasing need for employees to use electronic systems. Since these changes are happening at a faster rate, the demand for functional literacy will increase. Should adults not be able to meet these new demands, Sri Lanka might start to see the kind of decline in literacy that has been seen in other places.

Misinformation and disinformation

Another worry is the spread of misinformation and disinformation. In Sri Lanka, there has already been the quick dissemination of false information via social media, with this having an impact on public health, politics, and social cohesion. Since functional literacy is essential for allowing people to assess sources, doubt the claims made, and tell the difference between reliable information and falsehoods, a lack of functional literacy causes societies to be more open to manipulation, polarisation, and confusion.

The fact that there has been a global drop in functional literacy at the same time as misinformation has increased points to a dangerous feedback cycle: when literacy is low people become more prone to misinformation, and the misinformation in turn damages their ability to think critically about information. Given that the country has a high level of social media use and a lack of digital literacy training, Sri Lanka should take this risk seriously.

Even though there are these risks, Sri Lanka has several advantages which can assist in avoiding a drop in functional literacy. The country’s system of basic education is still strong, showing high enrolment figures and good results in basic literacy.

Families in Sri Lanka still place a great deal of importance on education and reading is still a respected cultural activity. Furthermore, because of its relatively small size and the fact that it has a centralized form of government, it is more efficient than in bigger countries to carry out nationwide literacy campaigns. These strengths offer a firm basis for developing new strategies for protecting and improving functional literacy.

Literacy a process

It should be realised by Sri Lanka that attaining literacy is not a single accomplishment achieved in childhood. In the modern world, literacy must be a skill that is constantly put into practice, kept up to date and adapted to changing circumstances. The fact that adult literacy is declining worldwide shows that even in wealthy countries with well-developed education systems deterioration can occur if adults are not supported in keeping their cognitive and informational abilities. Sri Lanka cannot afford to be careless.

It is necessary for the country to invest in adult education, in programmes concerning digital literacy and in the development of cognitive skills for all age groups. It also needs to establish ways of measuring functional literacy rather than just basic literacy so that policymakers can detect emerging weaknesses and act in advance.

A vital measure is to increase the opportunities for adult learning. Although Sri Lanka has effective literacy programmes based in schools, the country’s infrastructure for adult education is limited. Community centres, libraries, universities, and vocational institutes should take on a more significant role by providing courses, workshops, and reading programmes which are tailored for adults. The programmes should place an emphasis not just on reading and writing but also on digital navigation, critical thinking, and information processing. Adults should be given the chance to practise the skills that are necessary for them to function effectively in a rapidly changing world.

Importance of digital literacy programmes

It is just as important to have digital literacy programmes. Since an increasing number of services are being offered online, adults need to learn how to use digital tools with confidence and in a safe manner. This involves knowing how to fill out online forms, moving around on government websites, using banking apps, and being able to spot misinformation. The digital literacy courses available should be accessible, affordable, and adapted to different age groups, especially older adults who might feel put off by technology. Schools can also contribute by incorporating digital literacy into their curriculum so that future generations acquire good functional literacy skills from an early age.

Sri Lanka should also investigate introducing policies which promote cognitive health among older people. Since cognitive decline can lead to a deterioration of functional literacy, it becomes more difficult for older individuals to deal with information. It is possible to help keep cognitive function by setting up programmes that promote reading, social interaction, physical activity, and continued learning. During regular medical visits, healthcare professionals should include cognitive assessments so that any problems affecting literacy-related skills can be picked up early.

Sri Lanka needs to create tools for measuring functional literacy, since the figures available on basic literacy give an incomplete account of the country’s capabilities. By using assessments of functional literacy like those employed in high-income countries, Sri Lanka would be able to monitor how well its adults can apply their literacy skills in real-life situations.

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From Colombo to Vegas: Sri Lankan talent shines at WCOPA

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Chris with Sachini Ayendra, the very first contestant who represented Sri Lanka at WCOPA 2015 / Bronze winner at WCOPA 2026 Natharie Wickramasinghe with her parents

The World Championships of Performing Arts (WCOPA) is known globally as the Olympics of performing arts, but Sri Lankans came to know of it more closely when Natharie Wickramasinghe, representing Team Sri Lanka at WCOPA 2026, in Las Vegas, earned a Bronze Medal in the Ethnic/Folklore Dance category.

Behind Sri Lanka’s WCOPA journey is Sri Lanka-born Chris Rajendra, who migrated to the United States in 2007, and deserves special congratulations.

Passionate about discovering and promoting talent, Chris has been actively involved in the pageant and performing arts, industry since 2002.

A major milestone came in 2015, when he introduced WCOPA, to Sri Lanka, for the first time, creating an international platform for Sri Lankan performers.

Sachini Ayendra became the very first candidate to represent Sri Lanka at WCOPA, in 2015, marking the beginning of Team Sri Lanka’s journey.

Chris served as National Director for Team Sri Lanka from 2015 to 2018, and has returned to the role for the 2026–2027 term, continuing his commitment to identifying, developing and promoting Sri Lankan talent internationally.

His involvement in pageantry and performing arts includes:

Recruiter, Miss Nevada United States – 2014

Chris Rajendra: National Director – WCOPA Team  Sri Lanka

Manager, Miss Colombia Las Vegas – 2013 to 2017

Director for the West Coast and International Divisions of Ms. Latina International and Ms. International World – 2017

National Director for Team Sri Lanka – WCOPA, 2015–2018 and 2026–2027

Co-National Director for Team USA – WCOPA 2026

In the USA, Chris began his career in retail before transitioning into insurance and financial services, where he built extensive experience in sales, marketing, leadership and business development.

He owned and operated a brokerage, affiliated with multiple insurance companies, and later served as Marketing Director with Transamerica and World Financial Group.

As his business expanded across Las Vegas and California, he continued to hone his expertise in sales, marketing and client relations. He now works as a Sales Executive at Hilton Grand Vacations.

Looking ahead, Chris will shortly launch the application process for Team Sri Lanka 2027, giving talented Sri Lankan performers another opportunity to represent the country on the world stage.

The 2027 World Championships of Performing Arts will take place in Las Vegas, USA, in July or August 2027.

Through his work in both the corporate and performing arts worlds, Chris Rajendra continues to combine leadership, networking and talent development — creating opportunities for Sri Lankan performers to showcase their abilities on a global platform.

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