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Midweek Review

Pre-and post-Aragalaya sugar tax scams and culpability of Finance Ministry

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Then Secretary to the Ministry of Finance S.R. Attygalle declared, at a hastily arranged media briefing on March 12, 2021, that the Treasury suffered revenue loss due to reduction of Special Commodity Levy (SCL) on sugar imports from Rs. 50 a kilo to 25 cents

The Supreme Court ruling delivered on Nov 14, 2023 dealt with the economic crisis and found fault with the then President Gotabaya Rajapaksa, Finance Ministers, Mahinda Rajapaksa and Basil Rajapaksa and others. But absolutely no action has been taken yet on the basis of the Supreme Court findings. Instead, Parliament continue with a Select Committee tasked with investigating causes for the financial bankruptcy. The Opposition has boycotted the Committee, headed by SLPP General Secretary and Attorney-at-Law Sagara Kariyawasam.

By Shamindra Ferdinando

Last week’s Midweek piece “Warning issued over proposed ‘Open Government Partnership’ action plan” (OGP action plan) dealt with the daunting challenge in addressing improvement of public services, prevention of bribery and corruption, proper management of public resources, ways and means of addressing basic requirement of vulnerable communities and the management of state and privately funded projects at national and provincial level.

The decision on the part of President Ranil Wickremesinghe to place the high profile project under the Additional Secretary to the President at the Presidential Secretariat Chandima Wickramasinghe underscored the importance the UNP leader attached to the initiative. Sri Lanka is in the process of preparing a third OGP action plan which is expected to be submitted to the Cabinet-of-Ministers by no less a person than President Ranil Wickremesinghe. As the National Focal point for the OGP, Chandima Wickramasinghe is spearheading the effort.

Against that background, let me discuss the sugar scams perpetrated in Oct 2019 and Nov 2023 and the continuing failure on the part of Parliament to compel the Finance Ministry to take action at least in respect of the first scam. If the Wickremesinghe-Rajapaksa government is genuinely interested in addressing bribery and corruption, it needs to act on such mega corrupt deals without further delay. Those who have been tasked with preparing the OGP action plan should examine the sugar scams as they could help them to realize the daunting challenges ahead from within the government.

Mahinda Rajapaksa served as the Finance Minister at the time of the first sugar scam, whereas the second fraud took place under incumbent President and Finance Minister Wickremesinghe’s watch.

Unless the incumbent government is prepared to tackle waste, corruption, irregularities and mismanagement in line with OGP action plan, it shouldn’t squander time and energy thinking it can again hoodwink the masses with the latest OGP project. The government should bear in mind that the first and the second OGP projects flopped.

The Yahapalana government (2015-2019) and the Gotabaya Rajapaksa administration (2019-July 2022) should be held responsible for the collapse of OGP initiatives and the declaration of bankruptcy in April 2022.

High-handed tax fraud

In spite of the Committee on Public Finance (CoPF) relentlessly pressing the Finance Ministry and the Inland Revenue Department (IRD) over the inordinate delay in recovering the losses caused by the first sugar scam, the powers that be continued to hold up the process. Obviously overthrowing President Gotabaya Rajapaksa in July 2022 hasn’t resulted in speeding up of the process.

CoPF, under the chairmanship of Dr. Harsha de Silva, censured the Finance Ministry and IRD over their pathetic failure to recover the losses in terms of the findings made by Auditor General W.P.C. Wickremaratne. Senior representatives of the Finance Ministry and IRD appeared before CoPF on Aug 16. Among those who had been present at the proceedings were SLPP MP Chandima Weerakkody (now aligned with the main Opposition Samagi Jana Balawegaya), SLPP MP Duminda Dissanayake (SLFPer elected on the SLPP ticket), SLPP MP U.K. Sumith Udukumbura and SLPP MP Madura Vithanage.

CoPF flayed the Finance Ministry for turning a blind eye to sordid operations carried out by sugar importers who thrived at the expense of hapless consumers. The SJB should demand an explanation from President Wickremesinghe, as well as State Finance Ministers Ranjith Siyambalapitiya and Shehan Semasinghe, both elected on the SLPP, and members of the government parliamentary group at the time Gotabaya Rajapaksa’s government perpetrated the first sugar scam.

Then Finance Minister Mahinda Rajapaksa issued a gazette, dated Oct 13, 2020, in respect of the import of white sugar. The twice former President brought down the import tax (Special Commodity Levy/SCL) from Rs.50 to 25 cents (per kg).

It would be pertinent to mention that the then Trade Minister Bandula Gunawardena is on record as having said that he was never consulted on the Oct 13, 2020 gazette. S.R. Attygalle served as Secretary to the Treasury, whereas intervention made by then Presidential Secretary Dr. P.B. Jayasundera, to facilitate the scam, is in the public domain.

Anura Priyadarshana Yapa, MP, in his capacity as Chairman, CoPF, in early 2021, declared that the consumers hadn’t benefited at all from the sharp reduction of the SCL. The Gotabaya Rajapaksa government ignored the CoPF chief’s assertion. The government absolutely paid no attention to a special report issued by the National Audit Office regarding the sugar tax scam. The report asked the government to recover the losses from importers who made massive profits, thanks to the massive slashing of the sugar import tax.

According to the special audit, within four months after the reduction of the tax (14th October 2020 to 8th February 2021) the cash-strapped government was deprived of tax revenue to the tune of a whopping Rs. 16.763 bn. During the same period some of the stock had also been dumped on Sathosa above the cleared price and that resulted in a loss of Rs. 102 mn to the state enterprise.

The audit revealed that one of the major sugar importers Pyramid Wilmar recorded a colossal profit of some 1,222%.

The Human Rights Commission, on April 18, 2022, amidst growing unrest, urged Gotabaya Rajapaksa’s government to immediately implement the Auditor General’s recommendation.

The then Commission’s chairperson and retired Supreme Court Justice Rohini Marasinghe stressed in a statement: “… the arbitrary and unreasonable use of state power affects the economic, social and cultural rights of citizens.” The government simply ignored that warning, too.

In addition to the Finance Ministry and the IRD, lawmaker Patali Champika Ranawaka, in his capacity as Chairman of the House Ways and Means Committee, has strongly questioned the Attorney General’s Department’s response to the sugar scams. However, MP Ranawaka’s criticism should be examined, also taking into consideration the second sugar scam perpetrated by the incumbent government in the first week of last November.

Dr. de Silva, at the conclusion of the January 16 proceedings, had asked the IRD to submit a report as to why the monies owed by major sugar importers couldn’t be collected.

The failure on the part of responsible authorities to reach a consensus on a specific plan to deal with tax frauds remains a major problem.

Let me stress that the real issue is the circumstances under which the Finance Ministry issued the relevant gazette notification, dated Oct 13, 2020, pertaining to the reduction of the sugar tax. The Auditor General’s report conveniently failed to inquire into that aspect. If the AG quite rightly asserted that sugar importers benefited from the issuance of that particular gazette, it would be the responsibility of the government to investigate the possible collusion between the importers and the Cabinet-of-Ministers, who obviously leaked that information to them in advance and thereby helped them to import vast quantities if sugar at 25 cents a kilo tax and then made a killing when the tax was raised overnight to Rs 50 per kg.

Manusha on second sugar scam

The Wickremesinghe-Rajapaksa government made a desperate bid to dismiss accusations regarding the second sugar fraud that captured media attention in the run-up to the presentation of Budget 2024.

In the second scam, sugar consignments had been cleared just before the government increased the tax from 25 cents per kg of sugar to Rs 50 from midnight Nov 1.

President Ranil Wickremesinghe’s Director General on Trade unions Saman Ratnapriya during his regular media briefing at Lake House denied what he called the Opposition’s unsubstantiated claim that sugar importers had benefited from the latest increase in sugar tax.

The writer who had been there to cover the media briefing and sought an explanation from former UNP National List MP Ratnapriya regarding Labour and Foreign Employment Minister Manusha Nanayakkara’s accusation that sugar importers benefited from what he called inside information.

SJB Galle District MP Nanayakkara who switched allegiance to the then Premier Ranil Wickremesinghe and reiterated the commitment to President Wickremesinghe and found fault with the Customs.

Minister Nanayakkara declared that he wouldn’t remain silent regarding the latest scam as he raised his voice against the one perpetrated during the previous administration.

However, the lawmaker hadn’t commented on the second scam since his initial observation issued by way of a statement released by the Labour and Foreign Employment Ministry on Nov 07, 2023. Claiming that only Customs had been aware of the impending revision of tax, lawmaker Nanayakkara called for an investigation to ascertain how sugar importers received that information even before the Cabinet-of-Ministers was made aware of the move.

Minister Nanayakkara shouldn’t forget that the issuance of the relevant gazette notification is the responsibility of the Finance Ministry and certainly not the Customs which comes under the former.

CoPF and Auditor General should also inquire into the second scam. Authorities haven’t inquired into lawmaker Nanayakkara’s claim made in his capacity as a member of the current Cabinet. In his statement, MP Nanayakkara cleared the Cabinet, but the Cabinet-of-Ministers cannot absolve itself of the responsibility for leaking of such sensitive information at a time the country is yet struggling to overcome a state of bankruptcy.

The most obvious conclusion we can reach is that the latest scam was allowed in order to build a war chest for the present government to fight the next election. And the previous one was to pay off someone who financed the SLPP’s last polls campaign. All these happen as international lenders, like the IMF, blow lots of hot air about how keen they are in fighting corruption, while allowing such daylight robberies to continue which only results in the poor and even middle class Sri Lankans going without meals! What a way to tighten our belts IMF?

The team tasked with preparing the OGP action plan under any circumstances cannot be blind to continuing corruption at every level. Those tasked with the job involving the Presidential Secretariat, Transparency International Sri Lanka and Sarvodaya have to consider the current economic status, especially against the backdrop of the historic and unprecedented Supreme Court ruling in respect of the economic ruination.

Preparation of a report acceptable to the OGP community would pose quite a challenge as the country is down on its knees before the International Monetary Fund (IMF) for the 17th occasion.

The current crisis could have been averted if the Gotabaya Rajapaksa government sought the IMF intervention earlier, as experts have claimed. But, ironically, instead, the then government, soon after the 2019 presidential election, declared an unparalleled tax cut that deprived the Treasury of a staggering Rs 600 bn in much needed revenue, on top of the body blow the country received, especially to its lucrative tourism industry from the devastating Easter Sunday terror attacks, which even targeted important tourist hotels. To make matters worse, we were struck by the COVID pandemic that also paralysed much of the world, never before experienced in our living memory.

The Supreme Court ruling that was delivered on Nov 14, 2023 dealt with the issue and found fault with the then President Gotabaya Rajapaksa, Finance Ministers, Mahinda Rajapaksa and Basil Rajapaksa and others. But absolutely no action has been taken yet on the basis of the Supreme Court findings. Instead, Parliament continue with a Select Committee tasked with investigating causes for the financial bankruptcy. The Opposition has boycotted the Committee, headed by SLPP General Secretary and Attorney-at-Law Sagara Kariyawasam.

Former COPE Chairman Prof. Charitha Herath who promised in last July to release a comprehensive report on the economic crisis within three months is yet to do so (https://island.lk/probe-into-countrys-bankruptcy-ex-cope-chief-going-ahead-with-own-inquiry/). Whatever the outcome of the parliamentary probe, conducted by the SLPP and dissident SLPPer’s report, the OGP should go by the Supreme Court ruling. The possibility of attempts at different versions to suit political agendas in an election year cannot be ruled out.

A govt. in dilemma

The post-Supreme Court ruling scenario cannot be discussed without taking into consideration the continuing alliance between President Wickremesinghe and the SLPP. The latest to declare his support for the incumbent President is Chief Government Whip Prasanna Ranatunga, the SLPP’s Gampaha District strongman.

With an influential section of the SLPP openly backing Wickremesinghe’s candidature at the next presidential election, scheduled for later this year, the UNP leader seemed to have secured the backing of a sizable group of government group members. Of course of the SLPP MPs, Gampaha District lawmaker Nimal Lanza is the first to throw his weight behind the UNP leader at an early stage of the Wickremesinghe presidency.

OGP Research Officer Christina Socci, in an article titled ‘Reform Space to Watch: Strengthening Governance in Sri Lanka,’ posted on Dec 12, 2023, dealt with the situation and developments here. Socci, formerly of the National Democratic Institute (NDI) and the UN Project Office on Governance, emphasized the responsibility on the part of the government to adopt and implement new policies to promote integrity, eliminate corruption and corruption vulnerabilities. Socci quite rightly declared that in the wake of President Gotabaya Rajapaksa’s ouster (she called it people’s uprising) the executive, the legislature and judiciary were coming under increasing pressure to adopt far reaching reforms at all levels (https://www.opengovpartnership.org/stories/reforms-to-watch-2023-strengthening-governance-in-sri-lanka/)

The crux of the matter is can Sri Lanka restore public faith in a system brazenly abused, exploited and used by political parties currently in Parliament. In fact, the Parliament has been accused of enacting several laws which were actually detrimental to the country. There cannot be a better example than the enactment of the Foreign Exchange Act No 12 of 2017 by the Yahapalana administration that severely weakened regulatory powers. That law was brought in place of the time-tested Foreign Exchange Control Act No 24 of 1953 (https://island.lk/abolition-of-time-tested-exchange-control-act-in-terms-of-rti-act-house-releases- names-of-mps-who-voted-for-new-law/)

The then UNP parliamentary group voted for that destructive law. Some of those who voted for that law now function as members of the SJB. Regardless of the breaking up of the UNP ahead of the 2020 general election in 2020 those who voted for Foreign Exchange Act No 12 of 2017, too, should be held accountable for the current crisis.

All political parties need to review their strategies and policies. Perhaps the OGP action plan can sort of guide political parties.

While appreciating the OGP project, it must be pointed out that even after the declaration of bankruptcy political parties represented in Parliament are yet to agree on a tangible action plan to curb rampant waste, corruption, irregularities and mismanagement. The allegations made against President Gotabaya Rajapaksa’s Cabinet in a fundamental rights petition filed by three of his ministers, Vasudeva Nanayakkara, Wimal Weerawansa and Udaya Gammanpila in respect of the controversial Yugadanavi agreement signed in Sept 2021 should have promoted genuine examination of the immoral system in place. Instead, President Gotabaya Rajapaksa sacked Weerawansa and Gammanpila in early March 2022.

Three weeks later public protests, backed by the US, erupted and by July 2022 the man who handsomely won the presidential poll was out and Wickremesinghe, discarded at the parliamentary polls, took over the presidency. The rest is history. But, the UNP leader, regardless of the criticism of the way he secured the executive office, brought the situation under control swiftly.

The ongoing controversy over Sri Lanka Cricket (SLC), based on damning disclosures made by the National Audit Office (NAO) in its report on Sri Lanka’s tour of Australia for the T20 World Cup (Oct. 09-Nov.13), in 2022. The Wickremesinghe-Rajapaksa government’s reaction to that report revealed the pathetic state of affairs – instead of taking action, the political leadership unceremoniously sacked Sports Minister Roshan Ranasinghe and brought the Ministry under Harin Fernando, MP. Having entered Parliament on the SJB National List, Fernando served as Tourism and Lands Minister when he was also sworn in as Sports and Youth Affairs Minister on Nov 27, 2023 by President Wickremesinghe.

Opposition accusations directed at the Chairman of Committee on Public Enterprises (COPE) Prof. Ranjith Bandara (SLPP National List) as regards his alleged attempts to shield the SLC underscored the responsibility on the part of the government and Parliament to restore public confidence in the parliamentary system. Sri Lanka is in such a precarious state, political parties represented in Parliament are no longer in a position to hoodwink the public. President Gotabaya Rajapaksa’s fate proved beyond doubt that cosmetic political, economic and social reforms won’t end developing instability caused by the executive, legislature and the judiciary to a certain extent.



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Midweek Review

US paying the price for disregarding military advice

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March 4: General Dan Caine addressing the Operation 'Epic Fury' media briefing (pic courtesy official website)

Jayasekera

Sri Lanka recently sought Saudi assistance to introduce advance radar technology, capable of detecting approaching targets and drone capability to meet aerial threats. On behalf of the NPP government, that request was made by Deputy Defence Minister Maj. Gen. (retd) Aruna Jayasekera when he met Mohammed bin Abdulrahman Al-Ghribi, Commander of the Royal Saudi Naval Forces, on the sidelines of the World Defence Show 2026 in Saudi Arabia, in February, this year. They also discussed the possibility of Saudi ships visiting Colombo.

Jayasekera also sought training opportunities for SLAF in Saudi Arabia when he met Lt. Gen. Mazyad bin Sulaiman Al-Amro, Commander of the Royal Saudi Air Defence Forces. Jayasekera discussed with Vice Admiral Fahad Al Ghofaily, Deputy Chief of General Staff, the possibility of securing Saudi assistance to surveillance and deep sea operational capabilities of the Navy.

Saudi Arabia has been repeatedly hit by Iran during its counter offensive. In fact, Iran stepped up attacks in the wake of the US bombing of Kharg Island, a major Iranian oil facility. It would be pertinent to mention that Admiral Steve “Web” Koehler, Commander of the US Pacific Fleet, visited New Delhi and Colombo, less than 10 days before the outbreak of war, and here he met both Minister Jayasekera and Defence Secretary Air Vice Marshal (retd) Sampath Thuyakontha. It was Koehler’s second visit after the change of government in Sept. 2024. Don’t forget that it was Koehler’s command that alerted Sri Lanka, on the morning of 4 March, on the sinking of the unarmed Iranian frigate Dena.

The meticulously planned assassination of Iranian Supreme Leader Ayatollah Ali Khamenei on 28 February was meant to bring about a swift regime change and a victorious end to the war. The joint Israeli-US war machine assumed that such a high profile decapitation strike would pave the way for swift public uprising and capitulation of the Iranian government.

The aggressors, quite wrongly, assumed that those who launched the costly protest campaign in Iran, in late December last year, against the unbearable cost of living, would be able to exploit Khamenei’s assassination.

Unpredictable US President Donald Trump was so confident, on the first day of the offensive, that he urged the Iranian military to lay down their arms and its people to take over their government. International media quoted the Republican Chief as having said: “It will be yours to take”.

Trump disregarded his top military adviser, Chairman of the Joint Chiefs of Staff, Air Force General Dan Caine’s warning against attacking Iran. US media reported that Caine, who succeeded Air Force General C.Q. Brown, sacked by Trump in February 2021, warned that war could be risky, potentially drawing the US into a prolonged conflict.

Over two weeks into the war, the Israeli-US assumption seems utterly wrong with those, who genuinely believed in the sure collapse of the Iranian administration following the decapitating strike, are struggling to cope up with the spirited Iranian counter attacks. While enduring a much larger devastating bombing campaign, compared to the 12-day war in June last year, Iran overwhelmed Israel and Gulf countries where powerful US forces were stationed. Their costly missile defences seemed ineffective against Iranian missile and drone salvos that caused unprecedented chaos in the region.

But, what really astonished the Gulf states was Iran’s blockade of the Strait of Hormuz – the only maritime passage between the Gulf and the Gulf of Oman and the route for about a quarter of the global liquefied natural gas and seaborne trade from Gulf countries. This stunned the aggressors and those who blindly backed their despicable strategy.

Iran has categorically denied missile and drone attacks on Cyprus, Azerbaijan and Turkey. If Iran didn’t target them, who did? Whoever staged those attacks, their intention is clear. They want to involve NATO (North Atlantic Treaty Organisation) in the Israeli-US misadventure by hitting NATO members Cyprus and Turkey. Why would Iran attack Turkey against the backdrop of Ankara’s condemnation of Khamenei’s assassination, and also denied the use of its airspace, territory, and territorial waters to the US armed forces for the ongoing war?

The US announcement on March 12 that curbs on Russian oil would be lifted till April 11 underscored the gravity of the situation. Having failed to achieve a swift ‘regime change,’ their much touted primary objective in Operation ‘Epic Fury,’ the US has no option but to swallow its pride and seek Vladimir Putin’s intervention. The US ended with egg on face. It would be pertinent to mention the US sanctioned Russian oil immediately after the launch of Moscow’s Special Operation against Ukraine in February 2022. That ban had been based on the assumption that oil revenue enabled Russia to prolong the war in Ukraine.

Does the 11 April deadline mean that the Israel-US combine seriously believed that Iran could be defeated by that time? Intense media coverage of the conflict indicated that Israel and US objectives in Iran weren’t the same. Regardless of repeatedly vowing to achieve regime change in Iran, the aggressors ended up examining ways and means of exiting the conflict triggered by them. The way Iran has been responding to Israeli-US attacks, the West cannot fully restore Hormuz by the second week of April. Prolong war may force US to extend waiver on sanctioned Russian oil, thereby further strengtheing Putin.

The US-Israeli strategy has suffered in the absence of an anticipated large scale public uprising, in Iran, immediately after the decapitation strike. When that failed to materialise, as expected, the overall picture of the largest ever combined Israeli-US offensive changed.

Unilateral US decision to lift the ban on Russian oil, even temporarily, divided the western grouping backing Ukraine. In spite of the US being a critical member of that grouping, the Iranian action left Trump with no alternative but to ease pressure on global oil markets at Ukraine’s expense. The Europeans realise that the failure to effect regime change may compel Trump to extend waiver on oil sanctions on Russia.

What really went wrong? President Trump has been so confident of Iranian surrender he mocked British preparations for the deployment of aircraft carriers to the Middle East.

“The United Kingdom, our once Great Ally, maybe the Greatest of them all, is finally giving serious thought to sending two aircraft carriers to the Middle East,” President Trump declared on March 8. The humiliating Truth Social post appeared to be influenced by rash thinking.

“That’s OK, Prime Minister Starmer, we don’t need them any longer — But we will remember. We don’t need people that join Wars after we’ve already won!” President Trump ridiculed the British. Reference to the UK as a ‘once great ally,’ underscored the US-UK rift.

But several days later, Trump sought deployment of other navies, including that of the UK to break the Iranian blockade on Hormuz Strait.

Modi phones Pezeshkian

Had the Israeli-US project achieved its primary objective, namely regime change, Indian Prime Minister Narendra Modi wouldn’t have had to eat humble pie after declaring solidarity with Israel, just a few days before the unprovoked war. Prime Minister Modi, on March 12, nearly two weeks after the killing of Supreme Leader Khamenei, phoned Iranian President Masoud Pezeshkian.

Modi had no option but to get in touch with the post Khamenei Iranian leadership amidst growing turmoil in the country over disruption of vital gas and fuel supplies. India made its move as the US declared that New Delhi could turn to Russia for the time being. India desperately needed oil and required them as quickly as possible.

Having elevated India-Israel partnership to the highest level in the wake of Modi’s late February 2026 visit to Tel Aviv, on the eve of the unprovoked attack to decapitate the Iranian leadership, India found itself in an unenviable situation. The two-day visit led to what the two governments called “Special Strategic Partnership for Peace, Innovation and Prosperity.” In other words, the Israelis must have been working overtime on war preparations while Modi and Indian External Affairs Minister Dr. Jaishankar were visiting the Jewish State.

Modi’s call and a couple of calls from Dr. Jaishankar to his Iranian counterpart Abbas Araghchi facilitated the passage of fuel carriers. The US must have been deeply upset by the Indian move but that ensured the BJP, in power since 2014, brought the situation under control for the time being. The truth is India had been compelled to negotiate with Iran and the latter wouldn’t have given assurance regarding safe passage for vessels carrying fuel for India without being adequately compensated.

After rushing to Israel to show their servile loyalty on the eve of launching the unprovoked attack on Iranians, the Indian-Iran deal, in the aftermath of that folly, for safe passage for New Delhi’s vessels, proved that there were limits to the world’s solitary superpower. In the run-up to Modi’s call to President Pezeshkian, the Indian leader came under heavy Congress fire over India’s failure to promptly condemn the assassination of the Iranian Supreme Leader. Initially, the Indian government acted as if Congress criticism were irrelevant but it had to appeal to Iran in the wake of the closure of the Strait of Hormuz.

Iran appeared to have exploited India’s difficulties. Having overlooked India-Israel/US partnership and the sinking of the unarmed Iranian frigate ‘Dena’ on 4 March, Iran’s Ambassador to India, Mohammad Fathali, on 13 March declared their readiness to grant safe passage through the Strait of Hormuz for vessels on their way to India.

Responding to a question from an RT India correspondent, the envoy highlighted that Tehran considered New Delhi as a friend and that there were converging interests between the two countries.

Asked directly whether India would receive safe passage through the Strait, he replied: “Yes, because India is our friend. You will see it within two or three hours.” (RT India is a New Delhi-based, English-language television news channel officially launched in December 2025 by Russian President Vladimir Putin).

At the time Israel-US unleashed war on Iran, India wouldn’t have anticipated such a scenario-direct negotiation with Iran to secure energy supplies and the US having to waive the ban on Russian oil sales. How would India-Iran deal on safe passage for energy carriers impact on India-Israel/US relations?

Sri Lanka, rattled by the developing situation, swiftly followed suit to explore the possibility of securing Russian oil. Russian Ambassador in Colombo Levan Dzhagaryan, on the invitation of the government, met Foreign Minister Vijitha Herath, at the Foreign Ministry, and assured the Minister Moscow would be informed. However, whether that meeting would produce results, as desired by Sri Lanka, is not yet known. But, Sri Lanka, trapped in the US Indo-Pacific strategy, seems utterly helpless as President Trump’s unprovoked gangster-type actions roiled the world. Ambassador Dzhagaryan, who had served as Russia’s top envoy in Iran, from 2011 to 2022, during a recent interview with the writer explained how the West sought to defeat Russia in Ukraine and the events leading to the Special Military operation in February 2022.

Gulf States in turmoil

Dzhagaryan

The stepped-up US naval build-up against Iran made it clear that a combined Israel-US offensive was inevitable. Against that background, the significance of an invitation received by the Colombo-based media to meet UAE Ambassador in Colombo, Khaled Nasser Al Ameri, in late February, this year, was realised only after the eruption of the war.

Ambassador Al Ameri, who had been here since February 2022, never called such a meeting before during 25 February dinner meeting at Cinnamon Life at City of Dreams discussed issues amidst rising tensions. The writer was among the invited along with Kesara Abeywardena, Editor, Daily News, and Nisthar Cassim, Editor, Daily FT. Perhaps the Ambassador felt the need to comprehend the pulse of the Colombo media due to the presence of a significant Sri Lankan community employed in his country.

The Gulf countries that accommodated US forces arrayed against Iran never expected Tehran to go the whole hog. Both the US and Gulf countries obviously miscalculated Iranian determination in the face of unprovoked aggression. They had to pay a very heavy price but none more so than the UAE. The Iranians shattered the myth of their invincibility due to the deployment of costly US armaments.

Paula Hancocks reported for CNN on 10 March that more than 1,700 missiles and drones had been fired towards the UAE since the war began. Quoting the UAE Defence Ministry, Hancocks said that more than 90% of them had been downed by interceptors, fighter jets and helicopters.

President Trump admitted in an interview with CNN’s Jake Tapper recently that Iran’s willingness to strike its Arab neighbours had been his biggest surprise of the war. But, faced with relentless Israeli-US offensive, Iran couldn’t have endured the pain without inflicting losses on all those arrayed against the country. The Iranian reaction must be examined taking into consideration the killing of the country’s Supreme Leader, some of his family as well as top military leaders.

The US-led coalition will eventually overwhelm Iran but the rapidity with which that country hit back even after losing the top leadership may embolden those opposed to US strategies. That is the undeniable truth. The latest Israeli and US claims of targets taken out in Iran cannot be discussed without taking into account their claims last June. During the 12-day war against Iran, Israel and US launched massive attacks but the retaliatory campaign launched by Iran after 28 February onslaught proved that debilitating losses couldn’t be inflicted by air campaigns alone.

UAE and others had learnt a bitter lesson by being part of Israeli-US strategy meant to overwhelm Iran. They had proved that Iran couldn’t be subdued the way the US succeeded in Venezuela in January this year. Venezuela appeared to have reached a consensus with the US following the abduction of its President Nicolas Maduro. The speed the new Venezuela leadership switched its allegiance to the US is not surprising though disappointing.

“I thank President Donald Trump for the kind willingness of his government to work together,” Rodríguez posted on X on 5 March, in perhaps her most shameless act of kneeling since Maduro’s abduction. But, in Iran, the attempted regime change operation in spite of it being overwhelming with superior firepower had been thwarted by that country. Their retaliation has exposed the weakness in the overall US-led defence of what can be termed Gulf Arab countries.

The recent relocation of a significant part of the US anti-missile system deployed in South Korea, particularly to meet the nuclear armed North Korean threat underscored the inadequacy of overall defence of the region at the time Israel-US attacked Iran. Foreign media reported South Korea protesting against the US move though it couldn’t interfere in the US action.

Status of Iranian proxies

The Lebanese armed group Hezbollah reached a ceasefire agreement with Israel in November 2024, following year-long clashes. In spite of the ceasefire, according to international media, Israel continued military presence in that country and there were numerous ceasefire violations. However, Hezbollah largely abided by the ceasefire until the assassination of the Iranian Supreme Leader.

Hezbollah resumed large scale attacks on Israel following the 28 February attacks. Combined Iran-Hezbollah attacks on Israel caused significant trouble. Israel launched retaliatory strikes and expanded ground operations in Lebanon where over a million people were displaced amidst massive destruction of infrastructure.

The French offer to arrange direct talks between Israel and Lebanon to find a lasting solution to the developing crisis seems irrelevant as long as Israel-US action continues against Iran. The issue at hand is the Israel’s desire to obliterate Iran with US support. US media, particularly CNN, reported how the American public resented the expanding US role in the conflict, with Trump issuing contradictory statements regarding US objectives.

Hamas, whose October 2023 raid on Israel resulted in the ongoing conflict, appeared to have surprised Iran with its recent plea to Tehran not to attack Gulf Arab countries in retaliation for Israeli-US aggression. Iran simply ignored Hamas appeal.

Iran should be held responsible for pursuing destructive strategy in the region by sponsoring Hamas in Gaza, Hezbollah in Lebanon and Houthis in Yemen. The Israeli military action that followed the unprecedented October 2023 Hamas raid that caused well over 1,000 Israeli deaths weakened all Iran backed groups. Iran, in a way, used these groups as a buffer against the Jewish State. Lebanon, too, is a victim of Iranian strategy that empowered Hezbollah to take on Israel. US backed Israeli actions cannot be discussed under any circumstances turning a blind eye to Iranian funding of Hamas, Hezbollah and Houthis fought back in whatever way possible. People have forgotten President Ranil Wickremesinghe’s ridiculous declaration in late December 2023 that he would deploy an Offshore Patrol Vessel (OPV) in the Red Sea in support of US-led efforts to counter Houthi attacks on the vital shipping lane.

In spite of reports and claims of the Sri Lanka Navy sending an OPV there, actual deployment never took place. Sri Lankan vessels are not equipped to face possible missile and drone threats and in case of deployment would have been vulnerable to Houthi such attacks.

 

By Shamindra Ferdinando

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Midweek Review

Digital Transformation in the Global South: Understanding Sri Lanka through India AI Impact Summit 2026

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Artificial Intelligence has rapidly moved from being a specialised technological field into a major social force that shapes economies, cultures, governance, and everyday human life. The India AI Impact Summit 2026, held in New Delhi, symbolised a significant moment for the Global South, especially South Asia, because it demonstrated that artificial intelligence is no longer limited to advanced Western economies however can also become a development tool for emerging societies. The summit gathered governments, researchers, technology companies, and international organizations to discuss how AI can support social welfare, public services, and economic growth. Its central message was that artificial intelligence should be human centered and socially useful. Instead of focusing only on powerful computing systems, the summit emphasised affordable technologies, open collaboration, and ethical responsibility so that ordinary citizens can benefit from digital transformation. For South Asia, where large populations live in rural areas and resources are unevenly distributed, this idea is particularly important.

One of the most important concepts promoted at the summit was the idea of “people friendly AI.” This means that artificial intelligence should be accessible, understandable, and helpful in daily activities. In South Asia, language diversity and economic inequality often prevent people from using advanced technology. Therefore, systems designed for local languages and smartphones play a crucial role. When a farmer can speak to a digital assistant in Sinhala, Tamil, or Hindi and receive advice about weather patterns or crop diseases, technology becomes practical rather than distant. Similarly, voice based interfaces allow elderly people and individuals with limited literacy to use digital services. Affordable mobile based AI tools reduce the digital divide between urban and rural populations. As a result, artificial intelligence stops being an elite instrument and becomes a social assistant that supports ordinary life.

Transformation

The influence of this transformation is visible in education. AI based learning platforms can analyse student performance and provide personalized lessons. Instead of all students following the same pace, weaker learners receive additional practice while advanced learners explore deeper material. Teachers are able to focus on mentoring and explanation rather than repetitive instruction. In many South Asian societies, including Sri Lanka, education has long depended on memorisation and private tuition classes. AI tutoring systems could reduce educational inequality by giving rural students access to learning resources similar to those available in cities. A student who struggles with mathematics, for example, can practice step by step exercises automatically generated according to individual mistakes. This reduces pressure, improves confidence, and gradually changes the educational culture from rote learning toward understanding and problem solving.

Healthcare is another area where AI is becoming people friendly. Many rural communities face shortages of doctors and medical facilities. AI-assisted diagnostic tools can analyse symptoms or medical images and provide early warnings about diseases. Patients can receive preliminary advice through mobile applications, which helps them decide whether hospital visits are necessary. This reduces overcrowding in hospitals and saves travel costs. Public health authorities can also analyse large datasets to monitor disease outbreaks and allocate resources efficiently. In this way, artificial intelligence supports not only individual patients but also the entire health system.

Agriculture, which remains a primary livelihood for millions in South Asia, is also undergoing transformation. Farmers traditionally rely on seasonal experience, but climate change has made weather patterns unpredictable. AI systems that analyze rainfall data, soil conditions, and satellite images can predict crop performance and recommend irrigation schedules. Early detection of plant diseases prevents large-scale crop losses. For a small farmer, accurate information can mean the difference between profit and debt. Thus, AI directly influences economic stability at the household level.

Employment and communication

Artificial intelligence is also reshaping employment and communication. Routine clerical and repetitive tasks are increasingly automated, while demand grows for digital skills such as data management, programming, and online services. Many young people in South Asia are beginning to participate in remote work, freelancing, and digital entrepreneurship. AI translation tools allow communication across languages, enabling businesses to reach international customers. Knowledge becomes more accessible because information can be summarised, translated, and explained instantly. This leads to a broader sociological shift: authority moves from tradition and hierarchy toward information and analytical reasoning. Individuals rely more on data when making decisions about education, finance, and career planning.

Shared conditions

The impact on Sri Lanka is especially significant because the country shares many social and economic conditions with India and often adopts regional technological innovations. Sri Lanka has already begun integrating artificial intelligence into education, agriculture, and public administration. In schools and universities, AI learning tools may reduce the heavy dependence on private tuition and help students in rural districts receive equal academic support. In agriculture, predictive analytics can help farmers manage climate variability, improving productivity and food security. In public administration, digital systems can speed up document processing, licensing, and public service delivery. Smart transportation systems may reduce congestion in urban areas, saving time and fuel.

Economic opportunities are also expanding. Sri Lanka’s service based economy and IT outsourcing sector can benefit from increased global demand for digital skills. AI-assisted software development, data annotation, and online service platforms can create new employment pathways, especially for educated youth. Small and medium entrepreneurs can use AI tools to design products, manage finances, and market services internationally at low cost. In tourism, personalized digital assistants and recommendation systems can improve visitor experiences and help small businesses connect with travelers directly.

However, the integration of artificial intelligence also raises serious concerns. Digital inequality may widen if only educated urban populations gain access to technological skills. Some routine jobs may disappear, requiring workers to retrain. There are also risks of misinformation, surveillance, and misuse of personal data. Ethical regulation and transparency are therefore essential. Governments must develop policies that protect privacy, ensure accountability, and encourage responsible innovation. Public awareness and digital literacy programs are necessary so that citizens understand both the benefits and limitations of AI systems.

Beyond economics and services

Beyond economics and services, AI is gradually influencing social relationships and cultural patterns. South Asian societies have traditionally relied on hierarchy and personal authority, but data-driven decision making changes this structure. Agricultural planning may depend on predictive models rather than ancestral practice, and educational evaluation may rely on learning analytics instead of examination rankings alone. This does not eliminate human judgment, but it alters its basis. Societies increasingly value analytical thinking, creativity, and adaptability. Educational systems must therefore move beyond memorization toward critical thinking and interdisciplinary learning.

In Sri Lanka, these changes may contribute to national development if implemented carefully. AI-supported financial monitoring can improve transparency and reduce corruption. Smart infrastructure systems can help manage transportation and urban planning. Communication technologies can support interaction among Sinhala, Tamil, and English speakers, promoting social inclusion in a multilingual society. Assistive technologies can improve accessibility for persons with disabilities, enabling broader participation in education and employment. These developments show that artificial intelligence is not merely a technological innovation but a social instrument capable of strengthening equality when guided by ethical policy.

Ultimately, the India AI Impact Summit 2026 represents a symbolic shift in the global technological landscape. It indicates that developing nations are beginning to shape the future of artificial intelligence according to their own social needs rather than passively importing technology. For South Asia and Sri Lanka, the challenge is not whether AI will arrive but how it will be used. If education systems prepare citizens, if governments establish responsible regulations, and if access remains inclusive, AI can become a partner in development rather than a source of inequality. The future will likely involve close collaboration between humans and intelligent systems, where machines assist decision making while human values guide outcomes. In this sense, artificial intelligence does not replace human society however transforms it, offering Sri Lanka an opportunity to build a more knowledge based, efficient, and equitable social order in the decades ahead.

by Milinda Mayadunna

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Midweek Review

‘Conversational reading’ with children

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Enhancing Sensibility

In our contemporary culture, we have lost our age-old tradition of intergenerational transmission of stories through spoken word, and our children have lost their romance with the printed word. These were the observations made by several learned contributors to this journal in recent times. In this context, I was interested in reading the informative article titled, ‘The Art and Science of Communicating with Your Little Child’ [The Island, March 5, 2026] by senior Paediatrician Dr. B. J. C. Perera, in which he underscores the significance of meaningful communication of children, mostly with their parents, in designing the ‘architecture of their minds’, a task which cannot be served by apps, vocabulary flashcards, or educational television. Dr. Perera, has drawn a consilience between science and sensibility.

While acknowledging the developmental benefits of appropriate social interactions, stories listened to and read by children in their formative years, I wish to address the allied topic of conversational reading [also known as dialogic or interactive reading] which provides a wider area of growth and sensibility. Not pretending it to be a novel idea, I write with the hope of raising the awareness of parents, grandparents and teachers alike, of the wider scope of the topic, in view of recent research of its developmental benefits for children,

Nowadays, children spend countless hours immersed in electronic media [e. g. smart phones, social media, gaming etc.] without guidance from parents who are occupied with busy work schedules. Children have less time for reading outside the school curriculum and to have a meaningful dialogue. While not denying the immense benefits of technological advances, social media mainly provide sensation and impression, offering less depth and complexity of thought. They also provide an escape from a ruthlessly competitive education system with tuition outside school hours and burdensome homework. It is now becoming increasingly evident that overindulgence in social media use has the potential to cause pervasive detrimental effects on children relating to their emotional stability, impulse control, sleep pattern and interpersonal skill.

Before embarking on the subject of Conversational Reading and its developmental benefits, I wish to briefly address the topics of intergenerational storytelling and reading.

Intergenerational Story-telling

The tradition of intergenerational storytelling is a universal exercise, perhaps dating back to the development of language itself. Typically, stories are told for transferring information or education or for entertainment. Early humans such as the Aboriginal People of Australia, who lived before the development of the written word, story-telling by tribal elders [‘knowledge keepers’] was the primary mode of transmission of knowledge, values and life lessons. It was a powerful tool for education, intertwined with art, songs and dances, fostering beliefs about creation, ancestral spirits, and connection to the land. The stories helped to pass down generations, a sense of cultural identity and the need to live in harmony with each other and with the environment.

Story-telling through Printed Word

Following the development of the written word by Sumerians in Mesopotamia around 3500 – 3200 BCE and printing on paper by the Chinese in 868 CE, stories were delivered to some extent through the printed word. The first printed children’s story on paper, ‘Orbis Sensualium Pictus’ [The World of Things Obvious to the Senses drawn in Pictures’] published in 1658 by John Amos Comenius, the Czech educator, was an educational book with illustrations that inspired joyful learning in children. Since then illustrated story books were marketed for pleasure reading. Combining pictures with words became a delightful way to tell a story, as in the fairy tales by Hans Christian Andersen, Alice’s Adventures in Wonderland by Lewis Carroll and The Tale of Peter Rabbit by Beatrix Potter. Stories were presented in both prose and verse.

We Sri Lankans are endowed with a wealth of children’s literature pioneered by such literary figures as Kumaratunga Munidasa, Ananda Rajakaruna, Tibetan [Sikkimese] monk Rev. S. Mahinda, V. D. De Lanarolle, Piyadasa Sirisena, G.H. Perera and others. They transformed folk tales into prose and poetry for supplementary reading. Edwin Ranawaka translated children’s stories from English to Sinhala with modifications to suit the local readership. They were men of vision who inspired the young with their literary work aimed at enhancing their creativity, sensitivity and tranquillity to prepare them for the challenges of the future. Our literary icon, Martin Wickremasinghe, was ahead of his time in recognising the importance of children’s literature and its positive impact on their psychosocial and intellectual development. In his book ‘Apey Lama Sahithyaya’ [Our Children’s Literature] in the immediate post-independent era he made the astute observation that a nation without children’s literature rooted in its heritage may face intellectual and moral decline. Wickremasinge regretted that despite the above contributions, we have been slow in developing a children’s literature of our own, although such a literary genre has long been established in the west.

I apologise for not being able to add to the above any Tamil authors of children’s stories due to my lack of knowledge.

Regular exposure to reading books has a long list of benefits for children: reading expands exposure to language and new vocabulary, builds foundational skills such as prediction, sequencing, and summarising, and introduces characters and worlds far beyond a child’s family or neighbourhood. Reading is a powerful technique in broadening social, emotional and cognitive development of children.

Conversational Reading

Recent research in childhood education and psychology has shown that conversational reading with children in their early formative years [in the main the pre-primary and primary school years] can both broaden and deepen the already known developmental benefits of the reading experience.

Conversational reading is the art of reading to and reading with children of an age appropriate piece of prose or verse by an adult, in a two way interactive process, exploring their thoughts and feelings about what is read and helping them to articulate their views within their capacity. It is fundamentally different from simply reading the words in a book to a child. It promotes the use of open-ended questions to create conversations while reading. In this dynamic, the child and the adult [parent, grand-parent, or teacher] contribute to the conversation in equal parts. Conversational reading in the school setting with a group of children offers greater benefits as it encourages discussion amongst them.

Research findings on conversational reading shows a wide range of developmental benefits – cognitive, emotional, and social.

Significant improvements in language development, especially in the areas of expressive vocabulary, word acquisition and sentence structure through modelling and meaningful conversations.

Such meaningful conversations enhance reading comprehension by reflection on characters and events and encourage critical thinking by looking beyond the narrative. Their active participation increases their imagination and creativity and their motivation to read.

Children being active participants, rather than passive listeners, improve their communication skills and encourage respectful discourse and help raise their self-esteem.

It enhances social and emotional understanding through exploration of feelings and relationships, being insightful of others’ perspectives and the development of empathy.

It enables strengthening of emotional bonds with adults through meaningful dialogue.

It is a joyful exercise that facilitates learning.

Reading with children and talking with them about what matters is more important than ever before. Reading fluency, comprehension, and ability to relate the ideas in a story to yourself and the wider world are the building blocks of imagination, empathy, critical thinking, and creativity—all crucial qualities which give children the ability to better understand themselves and others and to find their place in the world.

by Dr Siri Galhenage,
MBBS, DPM, MRCPsych, FRANZCP
Psychiatrist [Retd]

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