Features
On to the private sector – JKH, Hemas and Schaffter company

Working simultaneously with state and private sectors
(Excerpted from the autobiography of Lalith de Mel)
About the time I joined the SLT Board, Ken Balendra, the Chairman of John Keells Holdings, invited me to join the Board of his company. That was the start of my working simultaneously with the private sector and the State sector. Ken was a strong personality and could by himself enforce the disciplines of good governance. He was due to retire and he felt, and I think correctly, that he should leave JKH with a more formal structure to ensure good governance. He appointed three Independent Directors, S. Easparathasan, Franklyn Amerasinghe and myself, and later Tarun Das.
There was a major issue with the management arrangements at JKH. It had a serious ‘Parents-and-Children’ syndrome. The Executive Directors managed their segments of responsibility, like a chief executive. So they became the children managing the business. But they were also in corporate terms the parent responsible to the Board for this segment’s activity. So in effect they reported to themselves for their area of responsibility. So they were both parents and children.
In management terms this was a bad model and has been extensively discussed in the literature. I found a very good book on the subject and insisted that they all read it. The JKH team comprised nice and intelligent people and they were prepared to think positively about change where it was necessary. It was a pleasure working with this group, and they appreciated what I did for them.
They accepted that the business units should have a head reporting to the Directors – a separation of parents from children. The parents would be accountable to the Board. This is the classic management model and I was glad to take JKH down this road.
JKH had an entrepreneurial culture. I think this heritage came from Mark Bostock’s time. Instinct had played a role in selecting acquisitions. Persuading them to adopt hurdle rates and cash-flow paybacks helped to test acquisitions and to dispose of some bad acquisitions. When I was on the Board, the LMS (Lanka Marine Services) acquisition came up for discussion. The financials were good. I had a Shell background in my youth and knew something about petroleum products and bunkers.
I discreetly asked Susantha Ratnayake (who was promoting the acquisition) whether he or JKH knew anything about the bunker business. He said, `No, but Sir, it is not rocket science and we can learn it.’ He had acquired some of the JKH entrepreneurial culture. It was brave of him to persuade the Board to buy a business without knowing the business. They bought it and it was very profitable.
Ken Balendra knew his team better than anybody else and had selected Lintotawela to succeed him. He was a finance man and perhaps Ken thought it best to have a numbers man to preside over his entrepreneurial troops. I did not think he was quite JKH style and thought that Susantha was the driving force in the business. After I left the Board, whenever I met Susantha I told him that he was developing a stoop by carrying the business on his shoulders (he turned a light shade of pink and hated me for saying it). Subsequently Susantha Ratnayake became the very successful Chairman of JKH.
LEAVING JKH
I met Abbas Esufally, I think it was at the Golf Club, and he said Hemas was debating whether to go public (with a listing on the CSE), and he wanted me to help them to decide, and if they went ahead to help them through the process. I agreed to meet them and talk about it as I held the view, and still do, that a private sector economy would survive best if all the big companies went public, so that the wider public could also benefit from their success, and this would create inclusive growth.
Eventually I agreed to help Hemas, and I told JKH about it. Lintotawela was unhappy and I could not be on the JKH Board and the Hemas Board. He saw a conflict of interest because JKH was in Hotels and Serendib had three hotels, one in Sigiriya and one in Waikkal, where JKH had no hotels, and one three-star in Bentota where JKH had the five-star Bentota Beach Hotel. The JKH team tried to persuade me to dump Hemas and stay with them, but I felt I had done my bit for JKH and it was an interesting challenge to take Hemas public.
I resigned from the JKH Board to join Hemas. The JKH Directors continued as friends and still Susantha very kindly invites me for dinner from time to time.
Investing in Serendib and joining Hemas
Even during the dark days of the war, when tourist arrivals were poor, I believed that in the long-term tourism would be our oil well. To get closer to the industry I wanted to make an investment in a hotel company. Through a mutual friend I met Abbas Esufally and with his help bought the shares of a Director of Serendib Hotels, who was retiring. It was a relatively modest investment but it got me to the top three non-corporate individual shareholders and I was invited to join the Board. I also invested in the quoted Serendib subsidiary companies Sigiriya and Dolphin.
This gave me a good and continuous rolling insight of the tourism industry. I had always been interested in tourism as a good industry for developing countries. This close-up picture of the hotel industry was helpful in developing my knowledge. I was happy to be on the Board.
Serendib was a fairly unstructured business and I endeavoured to help the management develop relevant business processes. I encouraged the management to develop Serendib as a brand and to leverage the Bawa connection.
It was one of Geoffrey Bawa’s early hotels. It had been heavily influenced by 18th century Dutch architecture. The facade viewed from the beach had a remarkable resemblance to the well-preserved Dutch building in Pettah.
The hotel put together a Bawa room to illustrate and leverage the Bawa link. After Srilal Miththapala, the enthusiastic Manager in the early phase, we had Ranil De Silva, a very experienced modern Manager. I was happy to be an active and involved member of the Board, and saw the hotel expanding both physically and in quality and as a shareholder I was pleased that it also was a steady, profitable hotel.
Abbas Esufally, one of the four major shareholders of Hemas Holdings, was Chairman of the Company. He was perceptive of the issues relating to tourism, was a pleasure to work with, and I enjoyed working with him, for many years.
The Minor Group, a big international hotel group with a base in Thailand, had expressed an interest in some form of collaboration. This proved to be a distraction. The Serendib management was heavily involved in building its Anantara property in Kalutara and the Hemas Minor Joint Venture hotel in Tangalle. The joint venture with Minor never happened and Serendib had to consider a life without Minor. This was a new strategic challenge. I did not stand for re-election.
Hemas was owned by four Esufally cousins. Each managed a piece of the business, with freedom to do as they pleased. They had the same cars and same salary and lived down the same road. A high comfort zone.
My role was to explain the process, advantages and consequences of becoming a public company. The big concern was whether the public would buy the shares of a firm in Bristol Street owned by four Borah cousins. I was convinced that a properly-constructed public offering would succeed.
The daunting question for them was whether to remain private in their comfort zone or to release the value by going public and accepting all the restrictions on freedom that came with it. The prospect of becoming billionaires won. But it proved to be a hard struggle to get them to keep their part of the bargain and accept the restrictions on their freedom as a public quoted company. I agreed to come on the Board and lend my name to the public issue and the financial advisers were confident that the issue would be fully subscribed. It was.
Public company
It had three Independent Directors, and I was the Independent Chairman. I tried to perform two roles. To give them the benefit of my management experience and be a mentor to develop the management skills of the company and as Chairman to establish the good governance practices of a public company and create the corporate structures that would help optimize shareholder value.
The first problem
To complacently accept less than the best skills available was not compatible with the obligations of a Chairman, the custodian of the public shareholders’ interests. This created problems. The four family shareholders were all intelligent and educated. In the management structure of any good company, that only gets one to the starting gate. What they all, including Hussein, lacked was good business experience gained by working elsewhere under outstanding managers and a high quality management education.
It was a struggle to get them to accept that they should relinquish the Managing Director type of roles they performed, and to bring in first-class management so as to optimize shareholder value and for them to move to a Non-Executive Chairman type of role.
I can well understand that they would have resented me for pushing them to give up their roles, but probably reluctantly accepted that it was in the best interest of protecting the billions of value they owned in shares. Abbas Esufally was charming and gregarious, looked at it all in a very mature fashion, and took it all in his stride in the interests of developing shareholder value. His only concern was fashioning a useful role when he gave up his executive line job.
The biggest block
Hussein Esufally was the biggest block to creating a proper Board-managed company. Transition from a family firm to public company meant the major roles of managing the business, which were all in Hussein’s hand as the CEO of the family business, had to be vested in the Board headed by the Chairman.
He resented it, but had to accept, for example, that there had to be a Remuneration Committee, an Audit Committee, and that annual plans and investment proposals, etc. had to be approved by the Board. Good governance processes remain cosmetic until you give them teeth, and giving them teeth was not easy.
He saw this as a move of authority from him to me and did not like it, as it affected his ego. His reaction was to endeavour to diminish the image of the Chairman. He did not provide the Chairman with an office or a secretary, let alone a company car or entertainment allowance. When I insisted on an office, he gave me a little cubicle behind a secretary.
This undermined my ability to interact with the senior management as I had no proper venue to meet them and it was not in keeping with the image of a chairman of a public company to ask managers to meet the Chairman in his shoebox! When he had decided that he would be the next chairman, a grand office was created. I was like a shadow hovering relentlessly, pursing the reduction of his powers and creating a proper Board-managed public company.
Snakes and ladders
I thought that over the years I had convinced the family that the best method of protecting their wealth was to be a proper public company with an independent chairman and an experienced management team with a good track record managing it.
Steadily over the years we climbed up the ladder, rung by rung. I thought I had convinced them that the two sacred pillars of a good public company were an independent chairman and an excellent and experienced CEO.
When it was time for me to retire, sadly both these pillars were ignored. It was case of whizzing down a snake at the end. Hussein had decided to be Chairman. An end to independent chairmen at Hemas.
The choice for Chief Executive was Enderby. When I was a Director of CDC Plc in the UK, Donald Peck was Managing Director South Asia and Steven Enderby was a member of his private equity team. Steven Enderby had never managed a business as an executive CEO.
CDC was in private equity operations and Enderby could perhaps use his contacts from private equity days to get some funds to buy Hemas in the market and thereby help the share price. Steven is a friendly, charming and intelligent person but had no general management experience to bring to the party. After a long career of success in my endeavours, this is the one big blot of failure.
Fortunately for shareholders, Hemas had some good people, Malinga Arsakularatne had done an excellent job as Head of Finance. There had been many good marketing men in FMCG. If Hemas was prepared to have a CEO with great potential but no previous CEO experience in a big business, the very talented Kasturi Chellaraja Wilson would have been an excellent choice.
In addition to being appointed, there was also something in the air about Steven Enderby wanting to buy a large block of shares at a discount. I don’t know whether this ever happened. I did not want to be a party to the decisions regarding the Chairman and CEO. I said I must retire from the Board before these decisions were made and did so.I did not leave Hemas with the gratitude of the family but I think it was with their resentment.
Trading in bonds
Dinesh Schaffter wanted my help and guidance on developing a conglomerate of businesses he had put together. I said I would have a good look at his business and see whether I could add value. Ksathriya, as it was called, was managed by a small team of highly-paid managers.
I was appalled by what I saw in the numbers. They had made a number of bad acquisitions and were in the throes of making another, a supermarket chain, which had all the signs of another bad acquisition. Ksathriya was kissing distance away from bankruptcy. The task was not growth but restructuring for survival.
The management team was discontinued. Manjula Mathews, Dinesh’s sister, who also had a financial interest, joined the team to salvage what we could from this business which was in dire straits. This was the beginning of a long association with the Schaffters and their businesses. Ksathriya could not be saved as an ongoing business and all commercial operations dwindled down and were wound up.
Dinesh Schaffter was the eternal entrepreneur and his philosophy was ‘if one failed, look for another’. Ksathriya was reborn as Dunamis. Tucked away within it was a piece of relatively neglected business, which was high risk but interesting. The business called First Capital was a licensed bond trader and could trade in Government securities. So I joined First Capital as a mentor, ended up on the Board, and eventually was Chairman.
Trading in Government securities, to put it very simply, was to buy at the Central Bank auctions with money borrowed from the Banks and sell on at a profit but at very thin margins of profit. It was volume that gave one a meaningful profit, but volume meant high debt. It was a difficult business of predicting trends in interest rates and backing the judgment with high-risk trading.
Good governance was paramount. Processes had to be put in place to ensure good governance of trading and good management and they had to be rigorously enforced. The industry was heavily regulated. Compliance was vital as failure could result in losing the license to trade, which would mean the end of the company.
A compliance team was established but it was necessary for the Board to keep this activity under continuous review. The other area to be managed with utmost care was the management of risk and there was a Risk Management Committee. It was compliance to protect the license and risk to protect the shareholders’ money.
There were the other corporate bells and whistles essential in a public company, like a Remuneration Committee and an Audit Committee, and these were established. Around First Capital, there was another conglomerate developing. Wealth management, investment funds and a stockbroking firm. Good processes were established to facilitate their development.
The Schaffters, Manjula and Dinesh, were delightful people to work with, for many reasons. They were both very bright, there was always a chuckle even when contemplating dire circumstances if things went wrong. Never a risk of rumbling egos. If they had any, they never brought them to work. They always appreciated what I did for them. Whenever I met their father, Chandra Schaffter, he never failed to thank me for helping his children.
The thought of retiring from all work was hovering in my mind. A difficult regulatory development provided the exit. Stringent regulations were introduced about related party transactions. In close-knit conglomerates this was a problem and created the need to unravel them and to create new arrangements that complied with the regulations. At the tail-end of my career I had little appetite to take this on, and I had a good solution.
I had brought two excellent finance people on to the Board, Minette Perera and Nishan Fernando. They had both worked in companies where I was Chairman. Minette at Reckitts and Nishan at SLT. They were appointed to a Related Party Transaction Committee. After watching over it for a few months I knew it was in safe hands, and as I had done my bit for the Schaffters over the years I thought it was in good order not to stand for re-election, and brought the curtain down after a 55-year career.
Features
Sri Lanka’s Foreign Policy amid Geopolitical Transformations: 1990-2024 – Part I

Sri Lanka’s survival and independence have historically depended on accurately identifying foreign policy priorities, selecting viable strategies as a small island state, and advancing them with prudence. This requires an objective assessment of the shifting geopolitical landscape through a distinctly Sri Lankan strategic lens. Consequently, foreign policy has been central to Sri Lanka’s statecraft, warranted by its pivotal location in the Indian Ocean—adjacent to South Asia yet separated by a narrow stretch of water.
Amid pivotal geopolitical transformations in motion across South Asia, in the Indian Ocean, and beyond, the formulation and implementation of Sri Lanka’s foreign policy has never been more critical to its national security. Despite the pressing need for a cohesive policy framework, Sri Lanka’s foreign policy, over the past few decades, has struggled to effectively respond to the challenges posed by shifting geopolitical dynamics. This article examines the evolution of Sri Lanka’s foreign policy and its inconsistencies amid shifting geopolitical dynamics since the end of the Cold War.
First
, the article examines geopolitical shifts in three key spaces—South Asia, the Indian Ocean, and the global arena—since the end of the Cold War, from Sri Lanka’s strategic perspective. Building on this, second, it analyses Sri Lanka’s foreign policy responses, emphasising its role as a key instrument of statecraft. Third, it explores the link between Sri Lanka’s foreign policy dilemmas during this period and the ongoing crisis of the post-colonial state. Finally, the article concludes that while geopolitical constraints persist, Sri Lanka’s ability to adopt a more proactive foreign policy depends on internal political and economic reforms that strengthen democracy and inclusivity.
Shifting South Asian Strategic Dynamics
Geopolitical concerns in South Asia—Sri Lanka’s immediate sphere—take precedence, as the country is inherently tied to the Indo-centric South Asian socio-cultural milieu. Sri Lanka’s foreign policy has long faced challenges in navigating its relationship with India, conditioned by a perceived disparity in power capabilities between the two countries. This dynamic has made the ‘India factor’ a persistent consideration in Sri Lanka’s strategic thinking. As Ivor Jennings observed in 1951, ‘India thus appears as a friendly but potentially dangerous neighbour, to whom one must be polite but a little distant’ (Jennings, 1951, 113).The importance of managing the ‘India Factor’ in Sri Lankan foreign policy has grown further with India’s advancements in military strength, economic development, and the knowledge industry, positioning it as a rising global great power on Sri Lanka’s doorstep.
India’s Strategic Rise
Over the past three decades, South Asia’s geopolitical landscape has undergone a profound transformation, driven by India’s strategic rise as a global great power. Barry Buzan (2002:2) foresees this shift within the South Asian regional system as a transition from asymmetric bipolarity to India-centric unipolarity. India’s continuous military advancements have elevated it to the fourth position in the Global Firepower (GFP) index, highlighting its formidable conventional war-making capabilities across land, sea, and air (Global Firepower, 2024). It currently lays claims to being the world’s third-largest military, the fourth-largest Air Force, and the fifth-largest Navy.
India consistently ranks among the fastest-growing major economies, often surpassing the global average. According to Forbes India, India is projected to be the world’s fifth-largest economy in 2025, with a real GDP growth rate of 6.5% (Forbes, January 10, 2025). India’s strategic ascendance is increasingly driven by its advancements in the knowledge industry. The country is actively embracing the Fourth Industrial Revolution (4IR) and emerging as the Digital Public Infrastructure (DPI) hub of South Asia. However, India’s rise has a paradoxical impact on its neighbours. On one hand, it offers them an opportunity to integrate into a rapidly expanding economic engine. On the other, it heightens concerns over India’s dominance, leaving them feeling increasingly overshadowed by the regional giant.
Despite significant geo-strategic transformations, the longstanding antagonism and strategic rivalry between India and Pakistan have persisted into the new millennium, continuing to shape South Asia’s security landscape. Born in 1947 amid mutual hostility, the two countries remained locked in a multi-dimensional conflict encompassing territorial disputes, power equilibrium, threat perceptions, accusations of interference in each other’s domestic affairs, and divergent foreign policy approaches. The acquisition of nuclear weapons by both countries in 1998 added a new dimension to their rivalry.
The SAARC process has been a notable casualty of the enduring Indo-Pakistani rivalry. Since India’s boycott of the Islamabad Summit in response to the 2016 Uri attack in Kashmir, the SAARC process has remained in limbo. Countries like Sri Lanka, which seek to maintain equally amicable relations with both India and Pakistan, often find themselves in awkward positions due to the ongoing rivalry between them. One of the key challenges for Sri Lanka’s foreign policy is maintaining strong relations with Pakistan while ensuring its ties with India remain unaffected. India now actively promotes regional cooperation bodies in South Asia, excluding Pakistan, favouring broader frameworks such as BIMSTEC. While Sri Lanka can benefit greatly from engaging with these regional initiatives, it must carefully navigate its involvement to avoid inadvertently aligning with India’s efforts to contain Pakistan. Maintaining this balance will require sharp diplomatic acumen.
India’s expansive naval strategy, especially its development of onshore naval infrastructure, has positioned Sri Lanka within its maritime sphere of influence. As part of the Maritime Infrastructure Perspective Plan (MIPP) launched in 2015 to enhance operational readiness and surveillance capabilities, India is developing an alternative nuclear submarine base for the Eastern Command under Project Varsha (Deccan Chronicle, 22.11.2016). This base is located in Rambilli village, 50 km southwest of Visakhapatnam and 1,200 km from Colombo (Chang, 2024). Additionally, INS Dega, the naval air base at Visakhapatnam, is being expanded to accommodate Vikrant’s MiG-29K and Tejas fighter aircraft.
Another key strategic development in India’s ascent that warrants serious attention in Sri Lanka’s foreign policy formulation is India’s progress in missile delivery systems (ICBMs and SLBMs) and nuclear-powered submarines. In 1998, India made it clear that its future nuclear deterrence would be based on a nuclear triad consisting of land-based Intercontinental Ballistic Missiles (ICBMs), submarine-launched ballistic missiles (SLBMs), and strategic bombers (Rehman, 2015). Since then, India has steadily advanced in this direction. The expansion of India’s missile delivery systems, including ICBMs and SLBMs, serves as a reminder that Sri Lanka exists under the strategic shadow of a major global power.
The development of India’s nuclear-powered ballistic missile submarines (SSBNs) accelerated after 2016. The first in this class, INS Arihant (S2), was commissioned in August 2016, followed by the launch of INS Arighat in November 2021. Designed for strategic deterrence, INS Arighat is equipped to carry the Sagarika K-4 submarine-launched ballistic missiles (SLBMs), with a range of 3,500 kilometers, as well as the K-5, a long-range SLBM capable of reaching 5,000 kilometers. The submarine is based at INS Varsha (Deb, 2021).
India has significantly advanced its missile delivery systems, improving both their range and precision. In 2021, it successfully tested the Agni-5, a nuclear-capable intercontinental ballistic missile with a range of 5,000 kilometers. On March 11, 2024, India joined the ranks of global powers possessing Multiple Independently Targetable Re-entry Vehicle (MIRV) technology (The Hindu, January 4, 2022). These advancements elevate the Bay of Bengal as a pivotal arena in the naval competition between India and China, carrying profound political and strategic implications for Sri Lanka, which seeks to maintain equally friendly relations with both countries.
Further, India’s remarkable strides in space research have cemented its status as a global power. A defining moment in this journey was the historic lunar landing on 23 August 2023, when Chandrayaan-3 successfully deployed two robotic marvels: the Vikram lander and its companion rover, Pragyan. They made a graceful touchdown in the Moon’s southern polar region, making India the fourth nation to achieve a successful lunar landing. This milestone has further reinforced India’s position as an emerging great power, enhancing its credentials to assert itself more confidently in South Asian, Indian Ocean, and global power dynamics.
India envisions a stable and secure South Asia as essential to its emergence as a great power in the Indian Ocean and global strategic arenas. However, it does not consider Pakistan to be a part of this stability that it seeks. Accordingly, when India launched the ‘Neighbourhood First Policy’ in 2008 to strengthen regional ties, Pakistan was excluded. India’s ‘Neighbourhood First Policy’ gained renewed momentum after 2015 under Prime Minister Narendra Modi. His approach to South Asia is embedded in a broader narrative emphasising the deep-rooted cultural, economic, and social exchanges between India and other South Asian countries over centuries. India’s promotion of heritage tourism, particularly the ‘Ramayana Trail’ in Sri Lanka, should be viewed through this strategic lens as part of its broader strategic narrative.
Evolving Indian Ocean Geo-political Dynamics
The Indian Ocean constitutes the next geopolitical frame for Sri Lanka’s foreign policy. The Indian Ocean is a huge bay bordered by the Afro-Asian landmass and Australia on three sides and the South Asian peninsula extends into the Indian Ocean basin centrally. Situated at the southern tip of South Asia, Sri Lanka extends strategically into the heart of the Indian Ocean, shaping its geopolitical significance and strategic imperatives for maintaining sovereignty. Historically, Sri Lanka has often been caught in the power struggles of extra-regional actors in the Indian Ocean, repeatedly at the expense of its independence.
Sri Lanka’s leadership at the time of independence was acutely aware of the strategic significance of the Indian Ocean for the nation’s survival. The first Prime Minister D.S. Senanayake, who was also the Minister of Defence and External Affair, stated in Parliament that: “We are in a dangerous position, because we are on one of the strategic highways of the world. The country that captures Ceylon would dominate the Indian Ocean. Nor is it only a question of protecting ourselves against invasion and air attack. If we have no imports for three months, we would starve, and we have therefore to protect our sea and air communications” (Hansard’s Parliamentary Debates, House of Representative. Vol. I, 1 December 1947, c. 444)
As naval competition between superpowers during the Cold War extended to the Indian Ocean, following the British naval withdrawal in the late 1960s, Sri Lanka, under Prime Minister Sirimavo Bandaranaike, played a key diplomatic role in keeping the region free from extra-regional naval rivalry by mobilising the countries that were members of the Non-Aligned Movement (NAM). In 1971, Sri Lanka sponsored a proposal at the UN General Assembly to establish the Indian Ocean as a Peace Zone (IOPZ). While the initiative initially gained traction, it stalled at the committee stage and ultimately lost momentum.
The maritime security architecture of the Indian Ocean entered a new phase after the end of the Cold War. The United States became the single superpower in the Indian Ocean with an ocean-wide naval presence bolstered by the fully fledged Diego Garcia base. Correspondingly, the regional strategic linkages that evolved in the context of the Cold War were eventually dismantled, giving way to new strategic relationships. Additionally, three key developments with profound implications for Sri Lanka should be noted: India’s projection of political and naval power into the deeper Indian Ocean, China’s rapid economic and military rise in the region, and the entry of other extra-regional powers into Indian Ocean politics. Although Sri Lanka adopted a broader strategic perspective and a more proactive foreign policy in the 1970s, its approach to geopolitical developments in the Indian Ocean in the post-Cold War era became increasingly shaped by domestic challenges—particularly countering the LTTE threat and addressing post-war exigencies.
India’s Expanding Naval Diplomatic Role in the Indian Ocean
Parallel to its strategic rise, India has intensified its engagement in the broader strategic landscape of the Indian Ocean with renewed vigor. This expansion extends beyond its traditional focus on the South Asian strategic theatre, reflecting a more assertive and multidimensional approach to regional security, economic connectivity, and maritime diplomacy. India’s active participation in multilateral security frameworks, infrastructure investments in critical maritime hubs and strategic alignments with major global powers signify its role in the changing naval security architecture of the Indian Ocean. India’s shifting strategic posture in the Indian Ocean is reflected in the 2015 strategy document Ensuring Secure Seas: Indian Maritime Security Strategy. It broadens the definition of India’s maritime neighbors beyond those sharing maritime boundaries to include all nations within the Indian Ocean region (Ensuring Secure Seas, p. 23).
In 2015, Indian Prime Minister Narendra Modi launched his signature Indian Ocean diplomacy initiative, Security and Growth for All in the Region (SAGAR) to foster trust and transparency, uphold international maritime norms, respect mutual interests, resolve disputes peacefully, and enhance maritime cooperation. Strategic engagement with the littoral states in the Indian Ocean region, especially Sri Lanka, the Maldives, Seychelles, and Mauritius and Madagascar has emerged as a key component of India’s Indian Ocean naval diplomacy.
The Seychelles archipelago, located approximately 600 miles east of the Diego Garcia base, holds particular significance in India’s maritime strategy. During Prime Minister Narendra Modi’s official visit to Seychelles in March 2015, India and Seychelles signed four agreements. A key strategic outcome of the visit was Seychelles’ agreement to lease Assumption Island, one of its 115 islands, to India—a move that reinforced Seychelles’ alignment with India’s broader naval diplomacy in the Indian Ocean
Similarly, Mauritius holds a central position in India’s naval diplomacy in the Indian Ocean. During Prime Minister Modi’s visit to Mauritius in March 2015, India signed a Memorandum of Understanding with Mauritius to establish a new base on North Agalega Island, a 12-kilometer-long and 1.5-kilometer-wide Island. The base is crucial for air and surface maritime patrols in the southwest Indian Ocean. It will also serve as an intelligence outpost. In September 2016, defense and security cooperation between India and Mauritius deepened alongside the signing of the ‘Comprehensive Economic Cooperation Partnership Agreement’ (CECPA).
India’s expanding strategic interests across the Indian Ocean are reflected in its growing economic, educational, and defense collaborations with Madagascar. In 2007, India established its first overseas listening post in northern Madagascar to monitor shipping activities and intercept marine communications in the Indian Ocean. This initiative provided India with a naval foothold near South Africa and key sea-lanes in the southwestern Indian Ocean. The significance of India’s defense ties with Madagascar is further highlighted by Madagascar’s participation in China’s Belt and Road Initiative (BRI). As a crucial hub along the Maritime Silk Road connecting Africa, Madagascar’s strategic importance is underscored in the broader geopolitical landscape.
Another element of India’s expanding naval diplomacy in the Indian Ocean is its participation in both unilateral and multilateral anti-piracy operations. India’s commitment to regional security was reinforced in 2008 when it established a ‘Strategic Partnership’ with Oman, securing berthing and replenishment facilities for its navy, along with a strategically significant listening post in the Western Indian Ocean. India’s naval presence in the Arabian Gulf gains additional significance amid reports of a new Chinese naval base in Djibouti and recent submarine deployments. Successful anti-piracy missions in the western Indian Ocean underscore India’s growing influence in the region’s evolving naval security architecture.
India increasingly views its vast Diaspora as a soft power tool to bolster its status as an Indian Ocean power. In June 2014, it launched the Mausam project to reinforce its cultural ties across the region, showcasing its heritage, traditions, and contributions to global arts, literature, cinema, yoga, and cuisine. This initiative complements India’s expanding naval diplomacy and strategic presence in the Indian Ocean. Over the years, it has established listening facilities, airfields, and port infrastructure in key locations such as northern Madagascar, Agaléga Island (Mauritius), and Assumption Island (Seychelles). This has led India Today to ask: “Could this mark the emergence of an Indian ‘String of Flowers’ to counter China’s ‘String of Pearls’?” (The be continued)
by Gamini Keerawella
Features
Greener Pastures, Mental Health and Deception in Marriage:

Exploring Sunethra Rajakarunanayake’s Visachakayo
Sunethra Rajakarunanayake’s Sinhala novel Visachakayo (published in 2023) is a thriller in its own sense due to its daring exploration of social themes that modern Sinhala writers fail to touch. To me, the novel is a mosaic that explores pressing issues that middle-class Sri Lankans go through in the 21st Century. The narrative is seen from the perspective of Akshara, a Tamil girl whom the reader first meets in an infamous ‘Visa Queue’ to get her passport to go to England.
Akshara lives with her grandmother ‘Ammamma’ and her aunt ‘Periyamma’ (the younger sister of her mother). Both Ammamma and Periyamma look after her in the absence of her mother, Chinthamani who passed away a long time ago. Akshara’s father lives in Jaffna, with the kids of the second marriage. Later, we are told that Akshara’s father had to marry the second wife due to the loss of his wife’s first husband, who was an LTTE cadre. The second marriage of men seems to be a common theme in the novel due to their commitments to the family as an act of duty and honour.
The most iconic character in the novel is Preethiraj, ‘the man with a big heart’ who functions as a father figure to the other characters in the novel. It is through Preethiraj’s memory that the reader becomes aware of sociological themes in the novel: displacement and immigration, the institution of marriage and mental health issues. Preethiraj (fondly known as Preethi) is the son of Pushpawathi, the second wife of Akshara’s grandfather. Preethi goes to Royal College, but he has to relocate to Jaffna in 1958. Preethi endures social injustice in both public and private spheres. His studious sister, a medical student, labels him as a ‘lunatic’, while his mother condemns him as the ‘odd one’.
The novel intersects between the three themes: immigration and displacement, mental health issues and the institution of marriage. Almost all the characters have to go through displacement, suffer from intricacies of love laws and marriage rules like in The God of Small Things by Arundathi Roy. The writer offers a nuanced analysis of these three themes. For example, take mental health issues. The novel portrays a spectrum of mental health issues, such as schizophrenia, psychosis, Othello Syndrome, depression, autism and even malingering. At times, the representation of such ailments is extremely sarcastic:
“Hm… Canadian citizenship is an easy solution to secure those opportunities. However, unless I am asked to intervene, I will not meddle with their affairs. The son of one of my friends was introduced to a pretty girl. They liked her, not because of her money, but because of her looks and her ability to play the piano. But later, they discovered she has schizophrenia. Now their son follows whatever she says to save the marriage. My friend says she has lost her son” (p.20).
“Those opportunities” refer to material wealth including money and property in Colombo. Here, Rajakarunanayake does not fail to capture the extreme materialism and consumerism. However, in general, her representation of human follies is extremely humane.
The title ‘Visachakayo’ is another interesting coinage that reflects the plight of Sri Lankans who migrate to the ‘global north’ in search of greener pastures. Akshara’s friend, Subhani, who has migrated to England, explains that the term ‘Visachaya’ captures the in-between status of immigrants who are waiting for PR in a foreign country. Subhani mockingly says that they are equal to beggars who beg for visas. Subhani’s coinage and other accounts of Sri Lankan immigrants in England, the novel shows how difficult it is for an immigrant from the ‘global south’ to fight for a living in a country like England where immigrants come to resolve their financial struggles back home.
The novel is an eye-opener in many ways. First, it is an attempt to bridge the gap caused by the Sinhala-Tamil ethnic strife. It is also a cultural mosaic that captures both the joys and sorrows of Sinhala, Tamil and Burgher families in Sri Lanka. The novel also delves into mental health issues, categorically tied to marriage, a daring task even for a seasoned writer. However, Rajakarunanayake’s writing style compels the reader to adopt a more humane and empathetic approach towards individuals grappling with mental health challenges at various stages of their lives. The linguistic technique of using ‘ne’ tag at the end of sentences creates a conversational tone, making the narrative as if it is a conversation between a therapist and a patient. Her writing style also resembles that of Sri Lankan and Indian diasporic writers, a style that is used when writing about the motherland in exile, of which food becomes a critical trope in the narrative that unites the characters who live in exile.
Rajakarunanayake has done a commendable job in the representation of social issues, making this novel a must-read for anyone who is interested in researching social dynamics of contemporary Sri Lanka. It soon needs to be translated into English which will offer a unique experience to Sri Lankan English and international readers. A good book is something that affects the reader. Visachakayo has this quality, and it makes the reader revisit the past, reflect on the present and anticipate the future with hope for humanity just as Preethi does regardless of hardships he endured in the theatre of life.
By C. M. Arsakulasuriya
Features
A strategy for Mahaweli authority to meet future challenges amidst moves to close it down

The potential available in lands under Mahaweli Project, which cover about one third of farming areas of the Dry Zone, could easily help the country become self-sufficient in healthy foods, provided it is managed properly. However, at present, the main focus of the Mahaweli Authority of Sri Lanka (MASL) is mainly on Operation & Maintenance of Canal network feeding the farms. Main purpose of the Mahaweli Restructuring & Rehabilitation Project (MRRP) funded by the World Bank in 2000 was to diversify that objective to cover enhancement of agriculture aspects also. System H Irrigation Systems covering about 20,000 Hectares commanded under Kalawewa Tank located in the Anuradhapura District was used as a pilot area to initiate this effort. However, only the Canal Rehabilitation component of the MRRP was attended because of the government policy at that time. Restructuring component is still awaiting to be completed. Only, a strategy called Water Quota was introduced under the MRRP to initiate the restructuring component. However, the management restructuring required addressing the agriculture component expected under MRRP is still not attended.
Propose Strategy
Total length of the canal network which needs seasonal maintenance is about 1,000 Km in a typical large-scale irrigation project such as Kalawewa. Main role of the Resident Project Managers (RPM) appointed to manage such projects should be to enhance the food production jointly with the Farmer Organizations. Therefore, the abbreviation used for RPM should be redefined as Resident Production Manager. The role of a Production Manager is not limited to maintenance of canal networks as adapted presently. In the current production phase, Irrigation projects should be perceived as a Food Producing “Factory” – where water is the main raw material. Farmers as the owners of the factory, play the role of the labour force of the factory. The Production Manager’s focus should be to maximize food production, deviating from Rice Only Mode, to cater the market needs earning profits for the farmers who are the owners of the “factory”. Canal systems within the project area which need regular maintenance are just “Belts” conveying raw materials (water) in a Typical Factory.
Required Management Shift
In order to implement the above management concept, there is a need for a paradigm shift in managing large scale irrigation projects. In the new approach, the main purpose of managing irrigation systems is to deliver water to the farm gate at the right time in the right quantity. It is a big challenge to operate a canal network about 1000 KM long feeding about 20,000 Hectare in a typical Irrigation System such as Kalawewa.
It is also very pathetic to observe that main clients of irrigation projects (farmers providing labor force) are now dying of various diseases caused by indiscriminate use of agrochemicals. Therefore, there is a need to minimize the damages caused to the ecosystems where these food production factories are located. Therefore, the management objectives should also be focused on producing multiple types of organically grown crops, profitably without polluting the soil and groundwater aquifers causing diseases like Kidney Failures.
Proposed Management Structure
Existing management staff should either be trained or new recruitments having Production Engineering background, should be made. Water should be perceived as the most limited input, which needs to be managed profitably jointly with the farming community. Each Production Manager could be allocated a Fixed Volume of water annually, and their performance could be measured in terms of $s earned for the country per Unit Volume of water, while economically upgrading a healthy lifestyle of the farmers by using climate smart agriculture.
In addition to the government salary, the production management staff should also be compensated in the form of incentives, calculated in proportion to income generated by them from their management areas. It should be a Win-Win situation for both farmers as well as officers responsible for managing the food production factory. Operation of the Main Canal to cater flexible needs of each factory is the main responsibility of the Resident Production Manager. In other countries, the term used to measure their performance is $ earned per gallon of water to the country, without damaging the ecosystem.
Recent Efforts
Mahaweli Authority introduced some of the concepts explained in this note during 2000 to 2006, under MRRP. It was done by operating the Distributary canals feeding each block as elongated Village Tanks. It was known as the Bulk Water Allocation (BWA) strategy. Recently an attempt was made to digitize the same concept, by independently arranging funds from ICTA / World Bank. In that project, called Eazy Water, a SMS communication system was introduced, so that they can order water from the Main Reservoir by sending a SMS, when they need rather; than depend on time tables decided by authorities as normally practiced.
Though the BWA was practiced successfully until 2015, the new generation of managers did not continue it beyond 2015.
Conclusion
The recent Cabinet decision to close down the MASL should prompt the MASL officers to reactivate the BWA approach again. Farmer Organisations at the distributary canal level responsible for managing canal networks covering about 400 Hectares can be registered as farmer cooperatives. For example, there are about 50 farmer cooperatives in a typical irrigation project such as Kalawewa. This transformation should be a gradual process which would take at least two years. I am sure the World Bank would definitely fund this project during the transition period because it is a continuation of the MRRP to address the restructuring component which was not attended by them in 2000 because of government policy at that time. System H could be used as a pilot demonstration area. Guidelines introduced under the MRRP could be used as tools to manage the main canal. World Bank funded Agribusiness Value Chain Support with CSIAP (Climate Smart Irrigated Agriculture Project) under the Ministry of Agriculture which is presently in progress could also provide necessary guidelines to initiate this project.
by Eng. Mahinda Panapitiya
Engineer who worked for Mahaweli Project since its inception
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