Features
Sri Lanka’s slide from Perpetual Bonds to Pyramidal Sugar Bags
by Rajan Philips
A political observer with an exceptionally sharp mind offered this online comment recently: “With little on offer as a political alternative, many of us seem to wallow in idle gossip and pin hopes on plain speculation.” Who would disagree? Except to add that gossip, speculations and outbursts are emanating more from within the government than from outside, indicating both frustration and helplessness in government ranks. As well, those who heralded the present government as once-in-a-generation of its kind – headed by the best ever non-political Sri Lankan to seek political office for the sake of the old country after forsaking the new, and those who sang hosanna to the highest from the outside, are now left with sugar on their faces. Literally. The sugar scam is not the only scam. And where there is no scam, there is rampant incompetence.
The question is how could a new government elected with unprecedented double majorities (one for the executive and another for the legislature) have come a cropper so early in its mandate? There was no want of goodwill. Even critics of Gotabaya Rajapaksa wanted the man to succeed as President. For the sake of the country. More so, after Covid-19 struck. And Covid-19 is no longer an excuse. If at all, the pandemic has become the biggest cauldron of examples for government confusion in decision making, crass sloppiness in dealing with medical professionals and scientists, and chaotic incompetence in rolling out Covid-19 vaccines.
One term too many?
One can see the manifestations of internal frustrations in Wimal Weerawansa’s warnings and outbursts, and in the responses and speculations of SLPP Parliamentarians. Mr. Weerawansa, before his latest outburst about Rishad Bathiudeen, was all about crowning President Gotabaya Rajapaksa as leader of the SLPP to let him learn the ropes of politics, as party leader, to become a successful president. The SLPPers, on the other hand, besides accusing Weerawansa of backstabbing and calling for his dismissal, have started speculating about a one-term presidency for Gotabaya Rajapaksa and musing about Basil Rajapaksa as the next patriotic presidential candidate with possible American affirmation.
What is going on? Who is getting tired of whom? After all the struggle of getting a two-thirds majority in parliament, is President Gotabaya Rajapaksa being coaxed and cajoled to limit himself to a single term? Or is it that he has had enough of this powerful but ineffectual presidential charade? Is one term too many even with a two-thirds majority?
Perhaps a more significant manifestation of the government’s internal troubles is in the work of the three parliamentary committees on – Public Finance (COPF), Public Enterprises (COPE) and on Public Accounts (COPA), and in the apparent audacity of their Chairmen, all government MPs (respectively – Anura Priyadarshana Yapa, Charitha Herath and Tissa Vitarana), to act with some independence and without looking for directions from the executive. It is their persistence that is widely believed to have forced Finance Ministry officials to come clean with the chronology of decisions and import activities behind the nearly Rs. 16 billion swindle in importing sugar.
I am inclined to see some difference between the antics of Weerawansa and his SLPP detractors, on the one hand, and the workings of the three parliamentary committees, on the other. Taking note of this difference has some relevance to discussing the current political quagmire and the absence of serious alternatives. And the difference is that the Weerawansa/SLPP responses to the government’s paralysis are an indication of the tired and tatty state of the executive presidency as a political system regardless of who the incumbent president is. As against this, the workings of the parliamentary committees are indicative, no matter how slimly, of the possibilities of parliament in spite of the current presidential incumbent and the two-thirds majority he commands in the legislature.
Bond scam and Sugar scam
Looked at it another way, there are also differences between the way the executive and the legislature responded to the bond scam of the last government, and the way they are responding to the sugar scam of the present government. The last government used parliament to do a more prolonged cover-up job than the present one. The current parliament has done a far more effective policing job with the sugar scam than its predecessor did with the bond scam. The JVP which was on mute mode for most of the bond saga, is now breathing fire and burning the government’s sugar, and has taken the case of the stolen sugar all the way to the Supreme Court. UNP MPs who were all for coverup then until it was too late, are now all reborn SJBers demanding total accountability.
One might also notice other curious similarities and contrasts. There was a Central Banker, the then Governor, no less, Arjuna Mahendran, who was in the eye of the bond storm. There is an indirect connection to the Central Bank now, through the current Finance Secretary, S.R. Attygalle, who is also a former Deputy Governor of the Central Bank, and who has had an interesting career path since then. He was one of the principal public service beneficiaries of the Sirisena-coup government that lasted from October 31 to December 18 in the year of constitutional grace – 2018. President Sirisena appointed Mr. Attygalle as Secretary Treasury displacing Dr. R.H.S. Samaratunga. When the Supreme Court pulled the plug on Sirisena’s childish coup, Attygalle had to give way to Samaratunga. But he was back within a year, and his was one of the first senior appointments by Gotabaya Rajapaksa when he became President in November 2019. Wheels within wheels? It is not only politicians who are caught in the web of unholy alliances, but high-post public servants are also not spared from them.
Back to sugar scam, Mr. Attygalle tried to make the far fetched argument to the Finance Committee that the government did not actually lose any money because of the reduction of import duty on sugar from 50 rupees to 25 cents per kilogram, because the government had not collected any money to lose! But that does not explain how the government set it up so beautifully that the state would not collect any money that should normally have flowed to its coffers. Here is the chronology from what has been quite well reported on the matter. In May 2020, the government raised the special commodity levy (SCL) from Rs 33 to Rs 50 per kilo – with all the good intentions of lowering imports, saving foreign exchange, boosting local production, and, lo and behold, fighting diabetes, obesity, and other sugar ailments. In less than five months, on October 13, the SCL was slashed from Rs 50 per kilo to, not Rs 33 but Rs 0.25, twenty five cents per kilo. The import floodgates were opened.
Between October 14 and February 20, 320,627MT (metric tonnes) of sugar was imported in four months, about 50 to 60% of annual sugar imports between 550,000 to 650,000MT. On November 10, under panic in the face of rising sugar prices and unable to control the flood of imports through licensing and permits, the government imposed maximum retail price (MRP) limits ranging between Rs 80 and Rs 90 per kilo for wholesale and retail sales of bulk and packeted sugar. But the price limits didn’t work either. Sugar prices were between Rs 118 and Rs 125 per kilo during the four month interval. The government forced Lanka Sathosa, the national retailer to sell at the maximum retail price after buying at much higher prices in the wholesale market. In the upshot, the helpless consumers were gouged, nobody knows how many diabetes patients benefited, and the government lost doubly in collections, at the customs gate and at the national retail counter. Yet it was no loss, by Finance Ministry accounting, because there was no money to lose. Remember Greek Bonds?
From Perpetual to Pyramidal
For whose benefit was this sham? The Finance Ministry has reportedly admitted that six major sugar importers potentially “earned a kind of additional profits.” The pie-chart on this page shows the major sugar importers during the October-February window and their import quantities. Leading the pack was Pyramid Wilmar Limited (PWL). An acknowledged giant in global sugar trade, PWL accounted for 40% of the sugar rush and reportedly diverted a shipment meant for another destination to sail to Colombo to take advantage of the slash in Sri Lanka’s import duty. It was not just another shipment that arrived on short notice but, as the Sunday Times reported last week, the largest sugar cargo to dock in Colombo in 30 years, with 26,000MT of sugar in 1,000 containers. PWL was also well positioned to benefit from the slashed duty, because unlike other importers, it was eligible to pay the 25 cents (instead of Rs 50) per kilo duty not only on new imports but also on old stocks held in its bonded warehouse.
It is not only sugar. The same sugar daddy is said to have had a trial run earlier with coconut oil. Except it was no trial run because the swindle was even bigger – Rs. 20 billion, according to reports citing SJB MP Patali Champika Ranawaka. To sugar and coconut oil – add rice, the nation’s staple, and turmeric, the popular Covid-19 neutraliser, and Sri Lanka has the textbook example of what Prof. WD Lakshman, the current Central Bank governor, has described as the government’s “alternative way” of managing the economy.
To elaborate, about a month ago , around February 12, Governor Lakshman was taking to task the “doom and gloom” critics of the government for their failure to appreciate “the government’s determination to move away from the, so far, heavy dependence on imports for foodstuffs.” He called it a “really significant long term policy approach despite in the short run there is an adverse impact in the prices.” He referred to the import ban on turmeric, the immediate price increase, and the eventual stabilization (apparently). “But now nobody is talking about turmeric,” he said. No Sir, now everyone is talking about sugar!
And rice too! There is some confusion in the government about the adequacy of rice/paddy stocks. On Friday, The Island editorial highlighted the confusion within the government whether there is or there isn’t a need to import rice. 100,000 MT of rice should be imported according to some government Ministers, but Basil Rajapaksa, the non-cabinet Task Force Minister has been assuring that there is plenty of paddy in the country. Hoarding is certainly the curse, but isn’t there anyone in the government who knows whether there is enough rice in the country or if it should be imported. As government priorities go, Dr. Tissa Vitarana issued this caution in his weekly Sunday Island statement: “Hunger needs to be overcome before highways and high life!”
Talking about high life and politics, the political connections of Pyramid Wilmar Limited in Sri Lanka are not unlike those of Perpetual Treasuries Limited that was the central entity in the earlier bond scam. Media reports say that the local agent of Pyramid Wilmar, is Sajaad Mohammaed Mowzoon, who is also the proprietor of Shangri-La Hotel. It is well known that it was at Shangri-La that Gotabaya Rajapaksa launched his saubhagya project under the auspices of Viyath Maga. Mr. Mawzoon is also reported to be having business connections to the Adani Group, India’s mover and shaker in port development business among other portfolios. The Adani group has been making waves between the East and the West Container Terminals at the Colombo harbour, and now we hear more than rumours of a potential business partnership between two powerful political benefactors in India and Sri Lanka.
And where high life wrongfully pursued will take you became evident in the Colombo High Court last week, with the indictment of former Finance Minister Ravi Karunanayake and eleven others in connection with the 2016 Central Bank bond auctions. The Court also ordered to remand the accused who showed up till March 23, when the case will be taken up again. Those who stand accused deserve their day in court and to have what they say heard. But indictments in Sri Lanka are not what they used to be before the turn of the century. There is more public cynicism about indictments today than there is respect for them, for their impartiality and consistency. Even so, the indictments served last week are still a reminder that what is sauce for one political goose today can be sauce another goose tomorrow.
Features
Cyclones, greed and philosophy for a new world order
Further to my earlier letter titled, “Psychology of Greed and Philosophy for a New World Order” (The Island 26.11.2025) it may not be far-fetched to say that the cause of the devastating cyclones that hit Sri Lanka and Indonesia last week could be traced back to human greed. Cyclones of this magnitude are said to be unusual in the equatorial region but, according to experts, the raised sea surface temperatures created the conditions for their occurrence. This is directly due to global warming which is caused by excessive emission of Greenhouse gases due to burning of fossil fuels and other activities. These activities cannot be brought under control as the rich, greedy Western powers do not want to abide by the terms and conditions agreed upon at the Paris Agreement of 2015, as was seen at the COP30 meeting in Brazil recently. Is there hope for third world countries? This is why the Global South must develop a New World Order. For this purpose, the proposed contentment/sufficiency philosophy based on morals like dhana, seela, bhavana, may provide the necessary foundation.
Further, such a philosophy need not be parochial and isolationist. It may not be necessary to adopt systems that existed in the past that suited the times but develop a system that would be practical and also pragmatic in the context of the modern world.
It must be reiterated that without controlling the force of collective greed the present destructive socioeconomic system cannot be changed. Hence the need for a philosophy that incorporates the means of controlling greed. Dhana, seela, bhavana may suit Sri Lanka and most of the East which, as mentioned in my earlier letter, share a similar philosophical heritage. The rest of the world also may have to adopt a contentment / sufficiency philosophy with strong and effective tenets that suit their culture, to bring under control the evil of greed. If not, there is no hope for the existence of the world. Global warming will destroy it with cyclones, forest fires, droughts, floods, crop failure and famine.
Leading economists had commented on the damaging effect of greed on the economy while philosophers, ancient as well as modern, had spoken about its degenerating influence on the inborn human morals. Ancient philosophers like Plato, Aristotle, and Epicurus all spoke about greed, viewing it as a destructive force that hindered a good life. They believed greed was rooted in personal immorality and prevented individuals from achieving true happiness by focusing on endless material accumulation rather than the limited wealth needed for natural needs.
Jeffry Sachs argues that greed is a destructive force that undermines social and environmental well-being, citing it as a major driver of climate change and economic inequality, referencing the ideas of Adam Smith, John Maynard Keynes, etc. Joseph Stiglitz, a Nobel Laureate economist, has criticised neoliberal ideology in similar terms.
In my earlier letter, I have discussed how contentment / sufficiency philosophy could effectively transform the socioeconomic system to one that prioritises collective well-being and sufficiency over rampant consumerism and greed, potentially leading to more sustainable economic models.
Obviously, these changes cannot be brought about without a change of attitude, morals and commitment of the rulers and the government. This cannot be achieved without a mass movement; people must realise the need for change. Such a movement would need leadership. In this regard a critical responsibility lies with the educated middle class. It is they who must give leadership to the movement that would have the goal of getting rid of the evil of excessive greed. It is they who must educate the entire nation about the need for these changes.
The middle class would be the vanguard of change. It is the middle class that has the capacity to bring about change. It is the middle class that perform as a vibrant component of the society for political stability. It is the group which supplies political philosophy, ideology, movements, guidance and leaders for the rest of the society. The poor, who are the majority, need the political wisdom and leadership of the middle class.
Further, the middle class is the font of culture, creativity, literature, art and music. Thinkers, writers, artistes, musicians are fostered by the middle class. Cultural activity of the middle class could pervade down to the poor groups and have an effect on their cultural development as well. Similarly, education of a country depends on how educated the middle class is. It is the responsibility of the middle class to provide education to the poor people.
Most importantly, the morals of a society are imbued in the middle class and it is they who foster them. As morals are crucial in the battle against greed, the middle class assume greater credentials to spearhead the movement against greed and bring in sustainable development and growth. Contentment sufficiency philosophy, based on morals, would form the strong foundation necessary for achieving the goal of a new world order. Thus, it is seen that the middle class is eminently suitable to be the vehicle that could adopt and disseminate a contentment/ sufficiency philosophy and lead the movement against the evil neo-liberal system that is destroying the world.
The Global South, which comprises the majority of the world’s poor, may have to realise, before it is too late, that it is they who are the most vulnerable to climate change though they may not be the greatest offenders who cause it. Yet, if they are to survive, they must get together and help each other to achieve self-sufficiency in the essential needs, like food, energy and medicine. Trade must not be via exploitative and weaponised currency but by means of a barter system, based on purchase power parity (PPP). The union of these countries could be an expansion of organisations,like BRICS, ASEAN, SCO, AU, etc., which already have the trade and financial arrangements though in a rudimentary state but with great potential, if only they could sort out their bilateral issues and work towards a Global South which is neither rich nor poor but sufficient, contented and safe, a lesson to the Global North. China, India and South Africa must play the lead role in this venture. They would need the support of a strong philosophy that has the capacity to fight the evil of greed, for they cannot achieve these goals if fettered by greed. The proposed contentment / sufficient philosophy would form a strong philosophical foundation for the Global South, to unite, fight greed and develop a new world order which, above all, will make it safe for life.
by Prof. N. A. de S. Amaratunga
PHD, DSc, DLITT
Features
SINHARAJA: The Living Cathedral of Sri Lanka’s Rainforest Heritage
When Senior biodiversity scientist Vimukthi Weeratunga speaks of Sinharaja, his voice carries the weight of four decades spent beneath its dripping emerald canopy. To him, Sri Lanka’s last great rainforest is not merely a protected area—it is “a cathedral of life,” a sanctuary where evolution whispers through every leaf, stream and shadow.
“Sinharaja is the largest and most precious tropical rainforest we have,” Weeratunga said.
“Sixty to seventy percent of the plants and animals found here exist nowhere else on Earth. This forest is the heart of endemic biodiversity in Sri Lanka.”
A Magnet for the World’s Naturalists
Sinharaja’s allure lies not in charismatic megafauna but in the world of the small and extraordinary—tiny, jewel-toned frogs; iridescent butterflies; shy serpents; and canopy birds whose songs drift like threads of silver through the mist.
“You must walk slowly in Sinharaja,” Weeratunga smiled.
“Its beauty reveals itself only to those who are patient and observant.”
For global travellers fascinated by natural history, Sinharaja remains a top draw. Nearly 90% of nature-focused visitors to Sri Lanka place Sinharaja at the top of their itinerary, generating a deep economic pulse for surrounding communities.
A Forest Etched in History
Centuries before conservationists championed its cause, Sinharaja captured the imagination of explorers and scholars. British and Dutch botanists, venturing into the island’s interior from the 17th century onward, mapped streams, documented rare orchids, and penned some of the earliest scientific records of Sri Lanka’s natural heritage.
These chronicles now form the backbone of our understanding of the island’s unique ecology.
The Great Forest War: Saving Sinharaja
But Sinharaja nearly vanished.
In the 1970s, the government—guided by a timber-driven development mindset—greenlit a Canadian-assisted logging project. Forests around Sinharaja fell first; then, the chainsaws approached the ancient core.
“There was very little scientific data to counter the felling,” Weeratunga recalled.
- Poppie’s shrub frog
- Endemic Scimitar babblers
- Blue Magpie
“But people knew instinctively this was a national treasure.”
The public responded with one of the greatest environmental uprisings in Sri Lankan history. Conservation icons Thilo Hoffmann and Neluwe Gunananda Thera led a national movement. After seven tense years, the new government of 1977 halted the project.
What followed was a scientific renaissance. Leading researchers—including Prof. Savithri Gunathilake and Prof. Nimal Gunathilaka, Prof. Sarath Kottagama, and others—descended into the depths of Sinharaja, documenting every possible facet of its biodiversity.
“Those studies paved the way for Sinharaja to become Sri Lanka’s very first natural World Heritage Site,” Weeratunga noted proudly.
- Vimukthi
- Nadika
- Janaka
A Book Woven From 30 Years of Field Wisdom
For Weeratunga, Sinharaja is more than academic terrain—it is home. Since joining the Forest Department in 1985 as a young researcher, he has trekked, photographed, documented and celebrated its secrets.
Now, decades later, he joins Dr. Thilak Jayaratne, the late Dr. Janaka Gallangoda, and Nadika Hapuarachchi in producing, what he calls, the most comprehensive book ever written on Sinharaja.
“This will be the first major publication on Sinharaja since the early 1980s,” he said.
“It covers ecology, history, flora, fauna—and includes rare photographs taken over nearly 30 years.”
Some images were captured after weeks of waiting. Others after years—like the mysterious mass-flowering episodes where clusters of forest giants bloom in synchrony, or the delicate jewels of the understory: tiny jumping spiders, elusive amphibians, and canopy dwellers glimpsed only once in a lifetime.
The book even includes underwater photography from Sinharaja’s crystal-clear streams—worlds unseen by most visitors.
A Tribute to a Departed Friend
Halfway through the project, tragedy struck: co-author Dr. Janaka Gallangoda passed away.
“We stopped the project for a while,” Weeratunga said quietly.
“But Dr. Thilak Jayaratne reminded us that Janaka lived for this forest. So we completed the book in his memory. One of our authors now watches over Sinharaja from above.”
An Invitation to the Public
A special exhibition, showcasing highlights from the book, will be held on 13–14 December, 2025, in Colombo.
“We cannot show Sinharaja in one gallery,” he laughed.
“But we can show a single drop of its beauty—enough to spark curiosity.”
A Forest That Must Endure
What makes the book special, he emphasises, is its accessibility.
“We wrote it in simple, clear language—no heavy jargon—so that everyone can understand why Sinharaja is irreplaceable,” Weeratunga said.
“If people know its value, they will protect it.”
To him, Sinharaja is more than a rainforest.
It is Sri Lanka’s living heritage.
A sanctuary of evolution.
A sacred, breathing cathedral that must endure for generations to come.
By Ifham Nizam
Features
How Knuckles was sold out
Leaked RTI Files Reveal Conflicting Approvals, Missing Assessments, and Silent Officials
“This Was Not Mismanagement — It Was a Structured Failure”— CEJ’s Dilena Pathragoda
An investigation, backed by newly released Right to Information (RTI) files, exposes a troubling sequence of events in which multiple state agencies appear to have enabled — or quietly tolerated — unauthorised road construction inside the Knuckles Conservation Forest, a UNESCO World Heritage site.
At the centre of the unfolding scandal is a trail of contradictory letters, unexplained delays, unsigned inspection reports, and sudden reversals by key government offices.
“What these documents show is not confusion or oversight. It is a structured failure,” said Dilena Pathragoda, Executive Director of the Centre for Environmental Justice (CEJ), who has been analysing the leaked records.
“Officials knew the legal requirements. They ignored them. They knew the ecological risks. They dismissed them. The evidence points to a deliberate weakening of safeguards meant to protect one of Sri Lanka’s most fragile ecosystems.”
A Paper Trail of Contradictions
RTI disclosures obtained by activists reveal:
Approvals issued before mandatory field inspections were carried out
Three departments claiming they “did not authorise” the same section of the road
A suspiciously backdated letter clearing a segment already under construction
Internal memos flagging “missing evaluation data” that were never addressed
“No-objection” notes do not hold any legal weight for work inside protected areas, experts say.
One senior officer’s signature appears on two letters with opposing conclusions, sent just three weeks apart — a discrepancy that has raised serious questions within the conservation community.
“This is the kind of documentation that usually surfaces only after damage is done,” Pathragoda said. “It shows a chain of administrative behaviour designed to delay scrutiny until the bulldozers moved in.”
The Silence of the Agencies
Perhaps, more alarming is the behaviour of the regulatory bodies.
Multiple departments — including those legally mandated to halt unauthorised work — acknowledged concerns in internal exchanges but issued no public warnings, took no enforcement action, and allowed machinery to continue operating.
“That silence is the real red flag,” Pathragoda noted.
“Silence is rarely accidental in cases like this. Silence protects someone.”
On the Ground: Damage Already Visible
Independent field teams report:
Fresh erosion scars on steep slopes
Sediment-laden water in downstream streams
Disturbed buffer zones
Workers claiming that they were instructed to “complete the section quickly”
Satellite images from the past two months show accelerated clearing around the contested route.
Environmental experts warn that once the hydrology of the Knuckles slopes is altered, the consequences could be irreversible.
CEJ: “Name Every Official Involved”
CEJ is preparing a formal complaint demanding a multi-agency investigation.
Pathragoda insists that responsibility must be traced along the entire chain — from field officers to approving authorities.
“Every signature, every omission, every backdated approval must be examined,” she said.
“If laws were violated, then prosecutions must follow. Not warnings. Not transfers. Prosecutions.”
A Scandal Still Unfolding
More RTI documents are expected to come out next week, including internal audits and communication logs that could deepen the crisis for several agencies.
As the paper trail widens, one thing is increasingly clear: what happened in Knuckles is not an isolated act — it is an institutional failure, executed quietly, and revealed only because citizens insisted on answers.
by Ifham Nizam
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