Features
Political risks loom over Lanka’s economic stabilisation
By Ganeshan Wignaraja,
Gateway House
Sri Lanka’s economy showed signs of stabilisation in 2023 after the worst economic and political crisis since its independence in 1948. An acute balance of payments crisis caused lower- and middle-income Sri Lankans to pre-emptively default on foreign debt, which exceeded US$50 billion in April 2022. A crippling economic contraction, spiralling inflation, shortages of food and fuel and financial uncertainty followed.
The remarkable change during 2023 can be traced to decisive policies by President Ranil Wickremasinghe’s new government, formed in July 2022, after mass protests forced then president Gotabaya Rajapaksa to resign.
The Wickremasinghe government implemented stabilisation measures — namely hiking interest rates to control inflation, removing fuel subsidies, raising taxes and passing a law to improve the independence and accountability of the Central Bank of Sri Lanka. The government also conducted external debt restructuring talks with creditors, intensified discussions with the International Monetary Fund (IMF) on an economic bailout, sought Indian aid and engaged in free trade agreement-led Asian regionalism.
These efforts made a difference. The Sri Lankan economy is stabilising despite major challenges that remain. Inflation fell from a peak of 70 per cent in September 2022 to 3.4 per cent in November 2023. Foreign exchange liquidity pressures eased, with usable foreign reserves rising from only US$20 million in April 2022 to US$2 billion in October 2023. Waiting lines for essential goods have disappeared.
In March 2023, the IMF Board approved a tough Extended Fund Facility worth US$2.9 billion over 48 months, which emphasises revenue-based fiscal consolidation and governance reforms. The first review by the IMF Board on 12 December 2023 rated ‘Sri Lanka’s performance as satisfactory’ meaning that total IMF disbursement will be US$670 million (22 per cent) in 2023. The IMF facility unlocked additional funding from the World Bank and the Asian Development Bank for social protection, financial sector development and infrastructure development.
Subscribing to the notion that the 21st century is the Asian Century, Sri Lanka also formally applied to join the Regional Comprehensive Economic Partnership (RCEP), the world’s largest trading bloc. It also revived stalled bilateral free trade agreement talks with Thailand, India and China. Agreements with these countries could create new trade and supply chain opportunities for Sri Lanka.
There is cautious optimism in domestic policy circles about concluding a Thailand–Sri Lanka trade agreement in the first quarter of 2024 and an India–Sri Lanka bilateral investment agreement some time in 2024. But RCEP membership may take some time — the trading bloc has yet to agree on accession rules for new members and regulatory reforms are needed in Sri Lanka.
Partly linked to stabilisation progress and FTA talks, Sri Lanka announced two of its largest-ever foreign investments in late 2023. These are focused on improving infrastructure development.
One is a project to develop the US$700 million West Container Terminal at the Port of Colombo —a joint venture project between India’s Adani Group and Sri Lanka’s John Keels Holdings. This will expand the capacity of the port, which Lloyd’s List ranks as the world’s 26th largest container port by throughput. The US Development Finance Corporation has announced co-financing of US$553 million for the project.
In a geopolitical twist, China’s Sinopec Group — which will also operate 200 fuel filling stations in Sri Lanka — will invest US$4.5 billion in an oil refinery in the controversial, low-profit Hambantota Port in Southern Sri Lanka.
In November 2023, after yearlong talks, Sri Lanka concluded an initial agreement with key bilateral creditors, including India and the Paris Club, to restructure US$5.9 billion in external debt. This was important for reducing interest payments and for unlocking IMF financing in 2024. This deal follows China’s separate agreement with Sri Lanka in October 2023 on conditions for debt restructuring.
While the details are not public, these agreements are on similar terms, extending deadlines and lowering interest rates. But perhaps ominously, private creditors — who held about 40 per cent of external debt (end-2022)— have expressed concerns about the extent of the ‘haircut’ on debt they could face, and say little engagement has occurred with them due to the focus on talks with official creditors.
Stabilisation could translate into growth. The World Bank expects Sri Lanka’s GDP to grow at 1.7 per cent in 2024 — up from negative 3.8 per cent in 2023 and negative 7.8 per cent in 2022. But previous poverty reduction gains over past decades have been reversed, because of growth going backwards and job losses. The percentage of people living beneath the US$3.65 a day poverty line has doubled to 25 per cent during the last two years. Child malnutrition increased as many families switched to less healthy diets.
Few deep structural reforms have so far been implemented to bolster inclusive growth. There has been no privatisation of seven targeted state-owned enterprises, including two hotels and the Sri Lanka Insurance Corporation, despite months of preparation. Sri Lanka’s rigid education system, outdated labour laws, excessive holidays and inefficient agriculture also need reform to attract foreign and domestic investment.
Worryingly, too, political risks could derail IMF stabilisation and reform efforts beyond 2024 — presidential elections are due by September next year and Parliamentary elections are likely in 2024. High poverty levels and growing dissatisfaction with mainstream political parties appears to be boosting support for left-wing populist parties, which advocate alternative, home-grown policies. And the leader of the opposition, who is the head of a centre right party, says that he wants to renegotiate the IMF agreement.
There is thus urgent need to build a national coalition for stabilisation and reform if economic recovery in Sri Lanka is to last.
(East Asia Forum)
Ganeshan Wignaraja is Professorial Fellow in Economics and Trade at Gateway House.
Features
Recruiting academics to state universities – beset by archaic selection processes?
Time has, by and large, stood still in the business of academic staff recruitment to state universities. Qualifications have proliferated and evolved to be more interdisciplinary, but our selection processes and evaluation criteria are unchanged since at least the late 1990s. But before I delve into the problems, I will describe the existing processes and schemes of recruitment. The discussion is limited to UGC-governed state universities (and does not include recruitment to medical and engineering sectors) though the problems may be relevant to other higher education institutions (HEIs).
How recruitment happens currently in SL state universities
Academic ranks in Sri Lankan state universities can be divided into three tiers (subdivisions are not discussed).
* Lecturer (Probationary)
– recruited with a four-year undergraduate degree. A tiny step higher is the Lecturer (Unconfirmed), recruited with a postgraduate degree but no teaching experience.
* A Senior Lecturer can be recruited with certain postgraduate qualifications and some number of years of teaching and research.
* Above this is the professor (of four types), which can be left out of this discussion since only one of those (Chair Professor) is by application.
State universities cannot hire permanent academic staff as and when they wish. Prior to advertising a vacancy, approval to recruit is obtained through a mind-numbing and time-consuming process (months!) ending at the Department of Management Services. The call for applications must list all ranks up to Senior Lecturer. All eligible candidates for Probationary to Senior Lecturer are interviewed, e.g., if a Department wants someone with a doctoral degree, they must still advertise for and interview candidates for all ranks, not only candidates with a doctoral degree. In the evaluation criteria, the first degree is more important than the doctoral degree (more on this strange phenomenon later). All of this is only possible when universities are not under a ‘hiring freeze’, which governments declare regularly and generally lasts several years.
Problem type 1
– Archaic processes and evaluation criteria
Twenty-five years ago, as a probationary lecturer with a first degree, I was a typical hire. We would be recruited, work some years and obtain postgraduate degrees (ideally using the privilege of paid study leave to attend a reputed university in the first world). State universities are primarily undergraduate teaching spaces, and when doctoral degrees were scarce, hiring probationary lecturers may have been a practical solution. The path to a higher degree was through the academic job. Now, due to availability of candidates with postgraduate qualifications and the problems of retaining academics who find foreign postgraduate opportunities, preference for candidates applying with a postgraduate qualification is growing. The evaluation scheme, however, prioritises the first degree over the candidate’s postgraduate education. Were I to apply to a Faculty of Education, despite a PhD on language teaching and research in education, I may not even be interviewed since my undergraduate degree is not in education. The ‘first degree first’ phenomenon shows that universities essentially ignore the intellectual development of a person beyond their early twenties. It also ignores the breadth of disciplines and their overlap with other fields.
This can be helped (not solved) by a simple fix, which can also reduce brain drain: give precedence to the doctoral degree in the required field, regardless of the candidate’s first degree, effected by a UGC circular. The suggestion is not fool-proof. It is a first step, and offered with the understanding that any selection process, however well the evaluation criteria are articulated, will be beset by multiple issues, including that of bias. Like other Sri Lankan institutions, universities, too, have tribal tendencies, surfacing in the form of a preference for one’s own alumni. Nevertheless, there are other problems that are, arguably, more pressing as I discuss next. In relation to the evaluation criteria, a problem is the narrow interpretation of any regulation, e.g., deciding the degree’s suitability based on the title rather than considering courses in the transcript. Despite rhetoric promoting internationalising and inter-disciplinarity, decision-making administrative and academic bodies have very literal expectations of candidates’ qualifications, e.g., a candidate with knowledge of digital literacy should show this through the title of the degree!
Problem type 2 – The mess of badly regulated higher education
A direct consequence of the contemporary expansion of higher education is a large number of applicants with myriad qualifications. The diversity of degree programmes cited makes the responsibility of selecting a suitable candidate for the job a challenging but very important one. After all, the job is for life – it is very difficult to fire a permanent employer in the state sector.
Widely varying undergraduate degree programmes.
At present, Sri Lankan undergraduates bring qualifications (at times more than one) from multiple types of higher education institutions: a degree from a UGC-affiliated state university, a state university external to the UGC, a state institution that is not a university, a foreign university, or a private HEI aka ‘private university’. It could be a degree received by attending on-site, in Sri Lanka or abroad. It could be from a private HEI’s affiliated foreign university or an external degree from a state university or an online only degree from a private HEI that is ‘UGC-approved’ or ‘Ministry of Education approved’, i.e., never studied in a university setting. Needless to say, the diversity (and their differences in quality) are dizzying. Unfortunately, under the evaluation scheme all degrees ‘recognised’ by the UGC are assigned the same marks. The same goes for the candidates’ merits or distinctions, first classes, etc., regardless of how difficult or easy the degree programme may be and even when capabilities, exposure, input, etc are obviously different.
Similar issues are faced when we consider postgraduate qualifications, though to a lesser degree. In my discipline(s), at least, a postgraduate degree obtained on-site from a first-world university is preferable to one from a local university (which usually have weekend or evening classes similar to part-time study) or online from a foreign university. Elitist this may be, but even the best local postgraduate degrees cannot provide the experience and intellectual growth gained by being in a university that gives you access to six million books and teaching and supervision by internationally-recognised scholars. Unfortunately, in the evaluation schemes for recruitment, the worst postgraduate qualification you know of will receive the same marks as one from NUS, Harvard or Leiden.
The problem is clear but what about a solution?
Recruitment to state universities needs to change to meet contemporary needs. We need evaluation criteria that allows us to get rid of the dross as well as a more sophisticated institutional understanding of using them. Recruitment is key if we want our institutions (and our country) to progress. I reiterate here the recommendations proposed in ‘Considerations for Higher Education Reform’ circulated previously by Kuppi Collective:
* Change bond regulations to be more just, in order to retain better qualified academics.
* Update the schemes of recruitment to reflect present-day realities of inter-disciplinary and multi-disciplinary training in order to recruit suitably qualified candidates.
* Ensure recruitment processes are made transparent by university administrations.
Kaushalya Perera is a senior lecturer at the University of Colombo.
(Kuppi is a politics and pedagogy happening on the margins of the lecture hall that parodies, subverts, and simultaneously reaffirms social hierarchies.)
Features
Talento … oozing with talent
This week, too, the spotlight is on an outfit that has gained popularity, mainly through social media.
Last week we had MISTER Band in our scene, and on 10th February, Yellow Beatz – both social media favourites.
Talento is a seven-piece band that plays all types of music, from the ‘60s to the modern tracks of today.
The band has reached many heights, since its inception in 2012, and has gained recognition as a leading wedding and dance band in the scene here.
The members that makeup the outfit have a solid musical background, which comes through years of hard work and dedication
Their portfolio of music contains a mix of both western and eastern songs and are carefully selected, they say, to match the requirements of the intended audience, occasion, or event.
Although the baila is a specialty, which is inherent to this group, that originates from Moratuwa, their repertoire is made up of a vast collection of love, classic, oldies and modern-day hits.
The musicians, who make up Talento, are:
Prabuddha Geetharuchi:
(Vocalist/ Frontman). He is an avid music enthusiast and was mentored by a lot of famous musicians, and trainers, since he was a child. Growing up with them influenced him to take on western songs, as well as other music styles. A Peterite, he is the main man behind the band Talento and is a versatile singer/entertainer who never fails to get the crowd going.
Geilee Fonseka (Vocals):
A dynamic and charismatic vocalist whose vibrant stage presence, and powerful voice, bring a fresh spark to every performance. Young, energetic, and musically refined, she is an artiste who effortlessly blends passion with precision – captivating audiences from the very first note. Blessed with an immense vocal range, Geilee is a truly versatile singer, confidently delivering Western and Eastern music across multiple languages and genres.
Chandana Perera (Drummer):
His expertise and exceptional skills have earned him recognition as one of the finest acoustic drummers in Sri Lanka. With over 40 tours under his belt, Chandana has demonstrated his dedication and passion for music, embodying the essential role of a drummer as the heartbeat of any band.
Harsha Soysa:
(Bassist/Vocalist). He a chorister of the western choir of St. Sebastian’s College, Moratuwa, who began his musical education under famous voice trainers, as well as bass guitar trainers in Sri Lanka. He has also performed at events overseas. He acts as the second singer of the band
Udara Jayakody:
(Keyboardist). He is also a qualified pianist, adding technical flavour to Talento’s music. His singing and harmonising skills are an extra asset to the band. From his childhood he has been a part of a number of orchestras as a pianist. He has also previously performed with several famous western bands.
Aruna Madushanka:
(Saxophonist). His proficiciency in playing various instruments, including the saxophone, soprano saxophone, and western flute, showcases his versatility as a musician, and his musical repertoire is further enhanced by his remarkable singing ability.
Prashan Pramuditha:
(Lead guitar). He has the ability to play different styles, both oriental and western music, and he also creates unique tones and patterns with the guitar..
Features
Special milestone for JJ Twins
The JJ Twins, the Sri Lankan musical duo, performing in the Maldives, and known for blending R&B, Hip Hop, and Sri Lankan rhythms, thereby creating a unique sound, have come out with a brand-new single ‘Me Mawathe.’
In fact, it’s a very special milestone for the twin brothers, Julian and Jason Prins, as ‘Me Mawathe’ is their first ever Sinhala song!
‘Me Mawathe’ showcases a fresh new sound, while staying true to the signature harmony and emotion that their fans love.
This heartfelt track captures the beauty of love, journey, and connection, brought to life through powerful vocals and captivating melodies.
It marks an exciting new chapter for the JJ Twins as they expand their musical journey and connect with audiences in a whole new way.
Their recent album, ‘CONCLUDED,’ explores themes of love, heartbreak, and healing, and include hits like ‘Can’t Get You Off My Mind’ and ‘You Left Me Here to Die’ which showcase their emotional intensity.
Readers could stay connected and follow JJ Twins on social media for exclusive updates, behind-the-scenes moments, and upcoming releases:
Instagram: http://instagram.com/jjtwinsofficial
TikTok: http://tiktok.com/@jjtwinsmusic
Facebook: http://facebook.com/jjtwinssingers
YouTube: http://youtube.com/jjtwins
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