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New govt. to fast-track export-led growth strategy

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By Jayampathy Molligoda

It is common knowledge that Sri Lanka never had a consistent export -led growth strategy. For decades, it has become a buzz word without having a proper infrastructure- both physical as well as soft skill- and much needed foreign and domestic investments. With frequent change of governments, export strategies have been changed and no determined efforts made to promote potential export products, marketing destinations and reap the benefits of positives of globalisation to link up with the global value chain (GVC).

Implement truly export led growth strategy:

It is recommended to appoint a high powered ‘economic advisory committee’ under the Presidential secretariat, comprising key officials of the government, drawn from the Treasury, Central Bank and other relevant institutions, together with a team of experts from private sector thus sharing the same vision and ideology of the new government.

It is suggested that the above mentioned economic advisory committee should pick up acceptable proposals without scrapping the already prepared export strategy and give leadership to effectively implement and monitor same through an efficient economic task force. Whilst supporting traditional exports, time is opportune to concentrate simultaneously for a diversified export portfolio such as newer exportable products as technology-based components, raw materials for chemical industries, bunkering product etc. As far as export of services are concerned, train and upgrade skills of Sri Lanka’s human resource at professional levels, such as nursing and health care services, technology-based services, skilled armed services, maritime and navel services, BPO ICT, etc. This will eventually minimise over- dependence of migrating unskilled labour to the Middle East thus creating unnecessary social issues to their families, children and society at large.

Strictly enforce much needed

fiscal discipline:

The already widened fiscal deficit has been further deteriorated by the recently announced relief measures to meet the COVID-19 packages by the government. Nevertheless, the forthcoming Budget should reflect further austerity measures. It is essential that budgetary allocations are restricted on foreign travel for non-essential purposes for some time and save foreign exchange. Current expenditure should be reviewed regularly and prioritize expenses until such time the economy gets back on track. As for state owned institutions, detailed action plans along with winning strategies should be implemented to minimize losses.

More transparent and equitable pricing formulas will have to be introduced for public goods. Purchase of paddy stocks by the government should be at a reasonable minimum price that covers the farmers cost of production and some element of profit. In order to determine price payable to paddy farmers, it is suggested to introduce a similar scheme such as a reasonable price payable to tea small holders under the Tea Control Act of 1957 as amended, could be used thus stemming from the retail price of rice varieties at the market.

Underprivileged, needy communities can be given subsidies. Indian method of transferring subsidies to underprivileged and bypassing the middlemen through banking system using ‘Aadhar programme’ should be studied and must be adapted to suit Sri Lanka. It is essential to prevent leakages of subsidy as it amounts to a huge drain to the treasury financing.

Link strategy to develop SMEs to global value chain:

It is of paramount importance that the government must revisit and re-activate the financial and banking system loan schemes and provide more wholistic assistance to SME’s, establish SME centres and to provide the necessary guidance and support services which include the following areas;

=Start a programme to promote SME exports linking with global value chain (Select 500 SMEs and support for export as quick starter)

=Engage with DFI’s who have done similar projects – IFC, ADB, JICA

=Encourage SME sector to move up in the value chain

=Give incentives for Sri Lankan expatriate with business ideas to come to Sri Lanka to set up enterprises

=Incentivize setting up of venture capital and Private Equity businesses to support these ideas

=Help Sri Lankan SMEs to find joint venture partners for technology transfer. Set up a fund to support research and Development in SME sector

=Create incubators close to- may be universities to encourage setting up of businesses.

=Restructure banking sector and have a separate window for SMEs in the designated banks.

Re-visit existing subsidies

including fertiliser:

As for fertiliser subsidy scheme, time is opportune to revise same to mitigate negative effects of such schemes. If the present subsidy scheme continues, the Government may not be able to achieve its production targets in the agricultural sub- sectors and the farmers will continue to criticize the Government’s policy implementation. Special cultivation calendar shall be introduced based on resource availability in each Agro- Ecological Zone (AEZ). Improve infrastructure facilities such as laboratories, consultation services, extension on recommending site specific fertilizer application. The strategy should be to export high variety crops in addition to maintain food security and replace unnecessary imported food items.

The government needs to ensure that fertilizer is available to the farmers at the correct time and at a revised level of subsidized price where ‘large-scale estate’ owners also get subsidized fertilizer. We need to educate farmers on the proper usage of fertilizer to suit the soil conditions, minimizing wastage and environmental damage. It goes without saying that the system must provide the optimum quantity of fertilizer at reasonable price in time. It is important to identify farm level factors that influence the adoption of straight fertilizers and it would help in promoting the use of straight fertilizers at the farm level. More investment on R&D as well as private sector involvement are needed for manufacture of fertilizers using locally available raw materials.

The following additional points are also recommended:

a. Oligopoly of present fertilizer importers should be taken away and the government should encourage small- scale importers/farmers/RPCs to enter in to the market to import or produce locally. This will resolve issues related to malpractices, fertilizer availability, etc.

b. There shall be no subsidy given to importers, however a ‘ceiling price’ based on the market rate of fertilizer as determined could be fixed taking into account the CIF price of importers. The Subsidy, being the difference between the ceiling price and the subsidized rate, should be given only to the selected beneficiaries and be paid in cash to their bank accounts.

c. Fertilizer will then be freely available in the market and the selling price could be monitored by the relevant agencies and if there is a requirement of controlling the fertilizer prices at the market, then the ‘ceiling price’ could be used by the government. The present subsidized rate should be increased from – Zero for paddy and/or Rs. 10,000 per metric ton (MT) to say, Rs 12,500 and for other crops, the fertilizer mixtures could be increased from the present Rs. 23,000 to say Rs 35,000/ per MT.

d. Government shall encourage farmers (higher subsidy) for “Site Specific Fertilizer Usage and Organic Fertilizer” and required technology shall be given through crop research institutions. Subsidy should be given only for Urea, MOP, TSP and SA. Subsidy on all other straight fertilizers/mixtures should be removed and encouraged to use only where necessary.

e. It is necessary to clear the outstanding subsidy payments to the suppliers of fertilizer by the treasury leaving no room for ‘blame assigning’ by the private sector.

This will enable the government to reduce the burden on the treasury for additional government expenditure on subsidy (at present Rs 50 Billion per annum) at least by 30%.

(1) Invite FDI under the Chinese led “Belt and Road Initiative” (BRI):

To increase foreign exchange earnings, it is important to enhance port and port services by expediting the already planned development activities. The new Government has already approved the installing three gantry cranes to the JCT and the contract to deepen the JC. There is nothing wrong in entering into JVs based on ‘PPP models’ as articulated under the agreement between the GOSL and ADB on Colombo break-water financing. Geo-political realities and the popular public sentiments on the concept of nationalism should not be construed as strictures for decision making ability for economic growth and the writer is confident the next government under the leadership of President Gotabaya Rajapaksa is capable of maintaining a balance between the two in order to fast track economic growth activities.

It is essential to resort to a full-scale effective drive towards getting FDIs for long term projects in a transparent manner and such FDIs should be used only for revenue yielding projects from which, at least part of the borrowing can be met. It will be useful to revert to the marine and maritime activities and Aviation hub concept and ensure that appropriate projects are listed under these two hubs as early as possible and invite FDI under the Chinese led “Belt and Road Initiative” (BRI) and also link up with the ASEAN supply chain trough BRI as Sri Lanka is not a member of the ASEAN.

Conclusion:

Sri Lanka has already demonstrated its ability to combat COVID-19 successfully and the need of the hour is to fast track domestic economic activities, thus enabling Sri Lanka to record a faster recovery than other countries to improve economic growth. A more pragmatic nationalistic ideology – socialist oriented market based economic development model, coupled with an Executive Presidential system of governance would be more suitable to implement inclusive economic development programme to improve quality of life of the people of this country.

(Writer acknowledges the contribution made by Dr Ranee Jayamaha and Mrs Thusitha Molligoda)

 



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Opinion

Disasters do not destroy nations; the refusal to change does

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Floods caused by Cyclone Ditwah

Sri Lanka has endured both kinds of catastrophe that a nation can face, those caused by nature and those created by human hands. A thirty-year civil war tore apart the social fabric, deepening mistrust between communities and leaving lasting psychological wounds, particularly among those who lived through displacement, loss, and fear. The 2004 tsunami, by contrast, arrived without warning, erasing entire coastal communities within minutes and reminding us of our vulnerability to forces beyond human control.

These two disasters posed the same question in different forms: did we learn, and did we change? After the war ended, did we invest seriously in repairing relationships between Sinhalese and Tamil communities, or did we equate peace with silence and infrastructure alone? Were collective efforts made to heal trauma and restore dignity, or were psychological wounds left to be carried privately, generation after generation? After the tsunami, did we fundamentally rethink how and where we build, how we plan settlements, and how we prepare for future risks, or did we rebuild quickly, gratefully, and then forget?

Years later, as Sri Lanka confronts economic collapse and climate-driven disasters, the uncomfortable truth emerges. we survived these catastrophes, but we did not allow them to transform us. Survival became the goal; change was postponed.

History offers rare moments when societies stand at a crossroads, able either to restore what was lost or to reimagine what could be built on stronger foundations. One such moment occurred in Lisbon in 1755. On 1 November 1755, Lisbon-one of the most prosperous cities in the world, was almost completely erased. A massive earthquake, estimated between magnitude 8.5 and 9.0, was followed by a tsunami and raging fires. Churches collapsed during Mass, tens of thousands died, and the royal court was left stunned. Clergy quickly declared the catastrophe a punishment from God, urging repentance rather than reconstruction.

One man refused to accept paralysis as destiny. Sebastião José de Carvalho e Melo, later known as the Marquês de Pombal, responded with cold clarity. His famous instruction, “Bury the dead and feed the living,” was not heartless; it was revolutionary. While others searched for divine meaning, Pombal focused on human responsibility. Relief efforts were organised immediately, disease was prevented, and plans for rebuilding began almost at once.

Pombal did not seek to restore medieval Lisbon. He saw its narrow streets and crumbling buildings as symbols of an outdated order. Under his leadership, Lisbon was rebuilt with wide avenues, rational urban planning, and some of the world’s earliest earthquake-resistant architecture. Moreover, his vision extended far beyond stone and mortar. He reformed trade, reduced dependence on colonial wealth, encouraged local industries, modernised education, and challenged the long-standing dominance of aristocracy and the Church. Lisbon became a living expression of Enlightenment values, reason, science, and progress.

Back in Sri Lanka, this failure is no longer a matter of opinion. it is documented evidence. An initial assessment by the United Nations Development Programme (UNDP) following Cyclone Ditwah revealed that more than half of those affected by flooding were already living in households facing multiple vulnerabilities before the cyclone struck, including unstable incomes, high debt, and limited capacity to cope with disasters (UNDP, 2025). The disaster did not create poverty; it magnified it. Physical damage was only the visible layer. Beneath it lay deep social and economic fragility, ensuring that for many communities, recovery would be slow, uneven, and uncertain.

The world today offers Sri Lanka another lesson Lisbon understood centuries ago: risk is systemic, and resilience cannot be improvised, it must be planned. Modern climate science shows that weather systems are deeply interconnected; rising ocean temperatures, changing wind patterns, and global emissions influence extreme weather far beyond their points of origin. Floods, landslides, and cyclones affecting Sri Lanka are no longer isolated events, but part of a broader climatic shift. Rebuilding without adapting construction methods, land-use planning, and infrastructure to these realities is not resilience, it is denial. In this context, resilience also depends on Sri Lanka’s willingness to learn from other countries, adopt proven technologies, and collaborate across borders, recognising that effective solutions to global risks cannot be developed in isolation.

A deeper problem is how we respond to disasters: we often explain destruction without seriously asking why it happened or how it could have been prevented. Time and again, devastation is framed through religion, fate, karma, or divine will. While faith can bring comfort in moments of loss, it cannot replace responsibility, foresight, or reform. After major disasters, public attention often focuses on stories of isolated religious statues or buildings that remain undamaged, interpreted as signs of protection or blessing, while far less attention is paid to understanding environmental exposure, construction quality, and settlement planning, the factors that determine survival. Similarly, when a single house survives a landslide, it is often described as a miracle rather than an opportunity to study soil conditions, building practices, and land-use decisions. While such interpretations may provide emotional reassurance, they risk obscuring the scientific understanding needed to reduce future loss.

The lesson from Lisbon is clear: rebuilding a nation requires the courage to question tradition, the discipline to act rationally, and leadership willing to choose long-term progress over short-term comfort. Until Sri Lanka learns to rebuild not only roads and buildings, but relationships, institutions, and ways of thinking, we will remain a country trapped in recovery, never truly reborn.

by Darshika Thejani Bulathwatta
Psychologist and Researcher

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Opinion

A wise Christmas

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Important events in the Christian calendar are to be regurlarly reviewed if they are to impact on the lives of people and communities. This is certainly true of Christmas.

Community integrity

Years ago a modest rural community did exactly this, urging a pre-Christmas probe of the events around Jesus’ birth. From the outset, the wisemen aroused curiosity. Who were these visitors? Were they Jews? No. were they Christians? Of course not. As they probed the text, the representative character of those around the baby, became starkly clear. Apart from family, the local shepherds and the stabled animals, the only others present that first Christmas, were sages from distant religious cultures.

With time, the celebration of Christmas saw a sharp reversal. The church claimed exclusive ownership of an inclusive gift and deftly excluded ‘outsiders’ from full participation.

But the Biblical version of the ‘wise outsiders’ remained. It affirmed that the birth of Jesus inspired the wise to initiate a meeting space for diverse religious cultures, notwithstanding the long and ardous journey such initiatives entail. Far from exclusion, Jesus’ birth narratives, announced the real presence of the ‘outsider’ when the ‘Word became Flesh’.

The wise recognise the gift of life as an invitation to integrate sincere explanations of life; true religion. Religion gone bad, stalls these values and distorts history.

There is more to the visit of these sages.

Empire- When Jesus was born, Palestine was forcefully occcupied by the Roman empire. Then as now, empire did not take kindly to other persons or forces that promised dignity and well being. So, when rumours of a coming Kingdom of truth, justice and peace, associated with the new born baby reached the local empire agent, a self appointed king; he had to deliver. Information on the wherabouts of the baby would be diplomatically gleaned from the visiting sages.

But the sages did not only read the stars. They also read the signs of the times. Unlike the local religious authorities who cultivated dubious relations with a brutal regime hated by the people, the wise outsiders by-pass the waiting king.

The boycott of empire; refusal to co-operate with those who take what it wills, eliminate those it dislikes and dare those bullied to retaliate, is characteristic of the wise.

Gifts of the earth

A largely unanswered question has to do with the gifts offered by the wise. What happened to these gifts of the earth? Silent records allow context and reason to speak.

News of impending threats to the most vulnerable in the family received the urgent attention of his anxious parent-carers. Then as it is now, chances of survival under oppressive regimes, lay beyond borders. As if by anticipation, resources for the journey for asylum in neighbouring Egypt, had been provided by the wise. The parent-carers quietly out smart empire and save the saviour to be.

Wise carers consider the gifts of the earth as resources for life; its protection and nourishment. But, when plundered and hoarded, resources for all, become ‘wealth’ for a few; a condition that attempts to own the seas and the stars.

Wise choices

A wise christmas requires that the sages be brought into the centre of the discourse. This is how it was meant to be. These visitors did not turn up by chance. They were sent by the wisdom of the ages to highlight wise choices.

At the centre, the sages facilitate a preview of the prophetic wisdom of the man the baby becomes.The choice to appropriate this prophetic wisdom has ever since summed up Christmas for those unable to remain neutral when neighbour and nature are violated.

Wise carers

The wisdom of the sages also throws light on the life of our nation, hard pressed by the dual crises of debt repayment and post cyclonic reconstruction. In such unrelenting circumstances, those in civil governance take on an additional role as national carers.

The most humane priority of the national carer is to ensure the protection and dignity of the most vulnerable among us, immersed in crisis before the crises. Better opportunities, monitored and sustained through conversations are to gradually enhance the humanity of these equal citizens.

Nations in economic crises are nevertheless compelled to turn to global organisations like the IMF for direction and reconstruction. Since most who have been there, seldom stand on their own feet, wise national carers may not approach the negotiating table, uncritically. The suspicion, that such organisations eventually ‘grow’ ailing nations into feeder forces for empire economics, is not unfounded.

The recent cyclone gave us a nasty taste of these realities. Repeatedly declared a natural disaster, this is not the whole truth. Empire economics which indiscriminately vandalise our earth, had already set the stage for the ravage of our land and the loss of loved ones and possessions. As always, those affected first and most, were the least among us.

Unless we learn to manouvre our dealings for recovery wisely; mindful of our responsibilities by those relegated to the margins as well as the relentles violence and greed of empire, we are likely to end up drafted collaborators of the relentless havoc against neighbour and nature.

If on the other hand the recent and previous disasters are properly assessed by competent persons, reconstruction will be seen as yet another opportunity for stabilising content and integrated life styles for all Lankans, in some harmony with what is left of our dangerously threatened eco-system. We might then even stand up to empire and its wily agents, present everywhere. Who knows?

With peace and blessings to all!

Bishop Duleep de Chickera

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Opinion

Ranwala crash: Govt. lays bare its true face

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The NPP government is apparently sinking into a pit dug by the one of its members, ‘Dr’ Asoka Ranwala; perhaps a golden pit (Ran Wala) staying true to his name! Some may accuse me of being unpatriotic by criticising a government facing the uphill task of rebuilding the country after an unprecedented catastrophe. Whilst respecting their sentiment, I cannot help but point out that it is the totally unwarranted actions of the government that is earning much warranted criticism, as well stated in the editorial “Smell of Power” (The Island, 15 December). Cartoonist Jeffrey, in his brilliance, has gone a step further by depicting Asoka Ranwala as a giant tsunami wave rushing to engulf the tiny NPP house in the shore, AKD is trying to protect. (The Island, 18 December).

The fact that Asoka Ranwala is very important to the JVP, for whatever reason, became evident when he was elected the Speaker of Parliament despite his lack of any parliamentary experience. When questions were raised about his doctorate in Parliament, Ranwala fiercely defended his position, ably supported by fellow MPs. When the Opposition kept on piling pressure, producing evidence to the contrary, Ranwala stepped aside, claiming that he had misplaced the certificate but would stage a comeback, once found. A year has passed and he is yet to procure a copy of the certificate, or even a confirmatory letter from the Japanese university!

The fact that AKD did not ask Ranwala to give up his parliamentary seat, a decision he may well be regretting now following recent events, shows that either AKD is not a strong leader who can be trusted to translate his words to action or that Ranwala is too important to be got rid of. In fact, AKD should have put his foot down, as it was revealed that Ranwala was a hypocrite, even if not a liar. Ranwala led the campaign to dismantle the private medical school set up by Dr Neville Fernando, which was earning foreign exchange for the country by recruiting foreign students, in addition to saving the outflow of funds for educating Sri Lankan medical graduates abroad. He headed the organisation of parents of state medical students, claiming that they would be adversely affected, and some of the photographs of the protests he led refer to him as Professor Ranwala! Whilst leading the battle against private medical education, Ranwala claims to have obtained his PhD from a private university in Japan. Is this not the height of hypocrisy?

The recent road traffic accident he was involved in would have been inconsequential had Ranwala been decent enough to leave his parliamentary seat or, at least, being humble enough to offer an apology for his exaggerated academic qualifications. After all, he is not the only person to have been caught in the act of embellishing a CV. As far as the road traffic accident is concerned, too, it may not be his entire responsibility. Considering the chaotic traffic, in and around Colombo, coupled with awful driving standards dictated by lack of patience and consideration, it is a surprise that more accidents do not happen in Sri Lanka. Following the accident, may be to exonerate from the first count, a campaign was launched by NPP supporters stating that a man should be judged on his achievements, not qualifications, further implying that he does not have the certificate because he got it in a different name!

What went wrong was not the accident, but the way it was handled. Onlookers claim that Ranwala was smelling of alcohol but there is no proof yet. He could have admitted it even if he had taken any alcohol, which many do and continue to drive in Sri Lanka. After all, the Secretary to the Ministry overseeing the Police was able to get the charge dropped after causing multiple accidents while driving under the influence of liquor! He, with another former police officer, sensing the way the wind was blowing formed a retired police collective to support the NPP and were adequately rewarded by being given top jobs, despite a cloud hanging over them of neglect of duty during the Easter Sunday attacks. This naïve political act brought the integrity of the police into question. The way the police behaved after Ranwala’s accident confirmed the fears in the minds of right-thinking Sri Lankans.

In the euphoria of the success of a party promising a new dawn, unfortunately, many political commentators kept silent but it is becoming pretty obvious that most are awaking to the reality of a false dawn. It could not have come at a worse time for the NPP: in spite of the initial failures to act on the warnings regarding the devastating effects of Ditwah, the government was making good progress in sorting problems out, when Ranwala met with an accident.

The excuses given by the police for not doing a breathalyser test, or blood alcohol levels, promptly, are simply pathetic. Half-life of alcohol is around 4-5 hours and unless Ranwala was dead drunk, it is extremely unlikely any significant amounts of alcohol would be detected in a blood sample taken after 24 hours. Maybe the knowledge of this that made government Spokesmen to claim boldly that proper action would be taken irrespective of the position held. Now that the Government Analyst has not found any alcohol in the blood, no action is needed! Instead, the government seems to have got the IGP to investigate the police. Would any police officers suffer for doing a favour to the government? That is the million-dollar question!

Unfortunately, all this woke up a sleeping giant; a problem that the government hoped would be solved by the passage of time. If the government is hoping that the dishonesty of one of its prominent members would be forgotten with the passage of time, it will be in for a rude shock. When questioned by journalists repeated, the Cabinet spokesman had to say action would be taken if the claim of the doctorate was false. However, he added that the party has not decided what that action would be! What about the promise to rid Parliament of crooks?

It is now clear that the NPP government is not any different from the predecessors and that Sri Lankan voters are forced to contend with yet another false dawn!

by Dr Upul Wijayawardhana ✍️

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