Features
Preface summarizing Raj Rajaratnam’s tell-all book
In October 2009 I was arrested and charged with insider trading. I chose to fight the charges against me because I was innocent. The prosecutors alleged that 0.01% of my trades between 2005 and 2009 were illegal.
I understood that in the US there is a 97% conviction rate (similar to China and Russia) and a punitive trial penalty for those who dare to go to trial. Empirical studies have shown that the trial penalty is just about double that handed to those who plead guilty. If a defendant agrees to become a cooperating witness, helping the government with testimony — irrespective of the truth — to convict another defendant, the co-operating witness gets a much-reduced sentence and in many cases just parole.
I understood the stakes. I chose to go to trial. Why? It’s a question I’ve since been asked hundreds of times. Why. Why jeopardize everything. Because to my core I believed I would get a fair hearing. And with a fair hearing and a rational exposition of the facts, the truth would have prevailed. Until my arrest I had the highest regard for the Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI). I believed that most Americans felt that way in 2009. Since then of course, the American public has become jaded about the sanctity of these institutions with multiple examples of overreach and excess.
Certain DOJ and FBI sections operate, each attempting to further its own agenda without regard for Constitutional checks and balances. The term “fake news,” the “Dark State” are now bandied about with almost wild abandon, humor, and satire. The public now assumes the existence of “fake news” alongside “authentic” news with little effort towards journalistic integrity. During the time of my arrest and trial, information from the media, DOJ, and FBI was absorbed as unquestioned Trust. While I still believe that the vast majority of those who work for the DOJ and the FBI are people of integrity, this book is an attempt to shed light on the corrupt few who act with impunity and destroy lives and families to further their career ambitions.
From the moment of my arrest, the narrative of my story was recast with a precise agenda, shaped to direct public attention away from the stark horror of the 2007-2008 financial crisis while promoting media idolatry of the publicity hungry and ambitious rookie US Attorney, Preet Bharara, who became a demi-God, the “Sheriff of Wall Street” riding into battle against myself, relentlessly personified as evil incarnate on the front pages of major newspapers around the world.
Wanton disregard for the law, recognized by the judge at my trial, allowed a corrupt element within the FBI, Agent Kang, to falsify documents leading to my arrest and falsify testimony leading to my conviction. I faced prosecutorial misconduct at its finest. The overzealous media, feasting on a human story they could sell every day, also profoundly prejudiced any hope of gathering an impartial jury by the time of the trial. These three institutions, ostensibly guardians of the public interest, charged with impartiality and integrity, bore down in a concerted campaign to make me the face of the financial crisis. My arrest and subsequent trial, a two-year process, deflected attention from a glaring fact: Not one major banker was held accountable for the 2008 global meltdown. No arrests. No searing prosecution. No jail time.
In the midst of a financial crisis which brought a multi-trillion-dollar world economy to its knees, these three institutions, independently and collectively, targeted a tiny slice of the US financial industry, hedge funds; honed in on a single hedge fund, Galleon; isolated only me, its CEO, who had recently become one of the few immigrants on Wall Street to be identified as a billionaire; and built a fabulous and intricate tale of “sex, drugs, and rock and roll” to entertain the public and build their own reputations. Their two-year reality series was successful beyond measure.
Preet Bharara, the then-US attorney for the Southern District of New York, used my prosecution to launch an unprecedented press campaign to promote himself. Bharara ran roughshod over the truth, standard Department of Justice protocols, and the office’s own dignity in his extraordinary zeal to convict me. Time Magazine put Bharara on its cover, their headline proclaiming “this man is busting Wall-Street.” It was Preet’s finest moment. Bharara did not touch the real perpetrators of the 2008 financial crisis – Wall Street’s top bankers. In a rare moment of public acknowledgement, both Preet and the influential New York Magazine observed in 2014 that Bharara was almost sheepish about the insider cases — “they made our careers, but they (didn’t) change the world.”
Bharara’s impotent and poisoned approach to the non-prosecution of criminal activity on Wall Street — ranging from the mortgage bankers who precipitated the financial crisis (Goldman Sachs, Lehman Brothers), the money-laundering of drug cartels (HSBC), and the encouraging of tax evasion by US citizens (UBS, CSFB) — would become the defining legacy of his tenure. Each of these firms settled civil charges by paying billions of dollars in fines using shareholder money, but no single person was criminally charged or individually fined. Every one of the insider trader prosecutions was criminal. The towering hypocrisy remains startling.
The prosecution under Bharara’s watch advanced a theory of trading to prosecute me and several others which the second circuit appeals court subsequently overruled, criticizing it for “doctrine novelty.” Soon after my trial in May 2011, the then-SEC commissioner Mary Shapiro gloated that “the beauty of insider trading laws is the flexibility in interpreting them.” The lead prosecutor in my case, Jonathan Streeter said in December 2012, “Insider Trading cases are confusing to investment professionals.” He went on to add, “There is incredible confusion on what is illegal and it’s a real problem. The law is very complicated and the lines are a bit murky.” A US Attorney, the prosecution in my trial, and the head of the SEC, all acknowledged their reservations about a “murky” set of laws but had no “murky” reservations using them liberally in my case and at my trial.
The FBI agent overseeing my case Special Agent BJ Kang lied on his sworn affidavit to obtain wiretap authorization of my phone. Recognizing there had been government misconduct, Judge Richard Holwell who presided over my trial case, issued a searing criticism of the wiretap application used by Agent Kang, reprimanding him for “reckless disregard for the truth with respect to both probable cause and necessity.” The Judge went on to add that “false and misleading statements and omissions pervaded the affidavit (submitted by Special Agent Kang) so extensively that it was impossible for the authorizing judge to have the constitutionally required determination for the issuance of the wiretap…rather than provide a full and complete statement as required by the law, the wiretap affidavit made full and complete omissions and included literally false information.
“Kang did not stop at blowing through truth on paper. He menaced and threatened my family and employees with prosecution, frightened away crucial defense witnesses, and routinely leaked false information to the media churning up an unabated feeding frenzy that shredded me in the court of public opinion. Kang took his cues from the playbook of the publicly reviled former FBI director, J. Edgar Hoover. I was tried, convicted, and sentenced in the press even before I fully understood the charges against me. The atmosphere was so toxic that my lead counsel, veteran defense lawyer John Dowd said “the prejudicial publicity orchestrated by the USA was so palpable in the courtroom…It was the most toxic atmosphere of any case I ever tried.”
My defense team led by John Dowd, along with expert testimony from a former SEC legal counsel, repeatedly highlighted that all the information discussed in the wiretaps was already in the public domain. Every bit of information was in the public domain. It did not matter. No amount of truth could overcome the false testimony trained into the co-operating witnesses by Streeter, his team of prosecutors, and Bharara, who sat on the sidelines, waiting in eager anticipation for any opportunity for a press conference.
Each of the cooperating witnesses had committed his own set of crimes, unrelated to Galleon. Yet each chose to testify against me as an opportunity to reduce their probable sentences. That they were perjuring themselves was irrelevant; the government coerced them into an immediate mandate to take me down. Even the government’s star witness, Anil Kumar, offered damning testimony under oath in my case only to recant the very same sworn testimony three years later during the trial of my brother. My brother was subsequently acquitted as a result of the revised and opposite version of Anil Kumar’s testimony. A few newspapers picked up on this gross disparity, but that was it. The fact of perjury had no consequence. The cycle was vicious. “Innocent until proven guilty,” the cornerstone philosophy of the American judicial system was proving to be a farce.
I was convicted by a jury, sentenced to 11 years in jail, and paid fines of over $150 million. The irony is that even in setting the fines, the prosecutors working in tandem with the media kept up the unceasing drumbeat of punishment for the financial crisis. Never mind that I did not personally make any money from the alleged trades. And never mind that not one single investor sued me. Galleon went through an orderly process of closing down the firm and returned all the funds with a gain of 22%. Not a single investor lost money. Most important to me, personally, was that not one single investor sued me.
In July 2019, I was released after serving 7.5 years of my 11-year sentence under the First Step Act.
I wrote this book entirely in prison and by hand. I began by writing about an hour a day. Soon that increased to two hours. Then three. I am choosing to publish the book for two specific reasons: First, I want my peers, professionals who understand the nuances of managing money, to hear the facts of my case. I want them to judge me. It is my assertion that I was entrapped, framed, unlawfully wiretapped, surveilled, and then made to endure a brutal and very public media lynching.
Secondly and more importantly, I want to begin a public discussion by creating awareness of how certain corrupt prosecutors and FBI agents are allowed to get away with criminal behavior. There are no checks and balances in our Justice system. Recently there has been a lot of discussion as to whether the President should be above the law. The President is so closely scrutinized that doing anything against the law would ring alarms bells the world over. Instead, my assertion is that the focus should be on the corruption within the American judicial system, on a handful of corrupt US attorneys who live their lives exempt from the law by which they control the lives of others and the rest of the country. In this book I will show how ambitious prosecutors actively take advantage of murky laws and coerce testimony from government witnesses to obtain wrongful convictions. Winning at all costs, regardless of the truth appears at every level to be an operative mantra. I realize there is only one book I can write to set the record straight. This is it.
My story is also about greed. In all its forms, greed boils down to avarice, hunger, power, money, ambition. All of these are readily available and identifiable in the financial industry, by definition. In fact, I would say that in the financial industry, greed is effectively a cliché with fear being on the flip side of a pair trade. Fear and greed are easy to communicate, and the media hones in on these aspects of Wall Street. But what I would like to do in this book is to hone in on the excess and greed in the judicial system. Ambition in the judicial system also translates to power and money, a far more insidious and dangerous consequence to society because it goes unchecked. After I was convicted, the press had a field day speculating whether the “new sheriff” of Wall Street, Preet Bharara, was actually in line to succeed Eric Holder as the next US Attorney General when Holder stepped down. While Bharara was at first coy about his intentions, he eventually made clear his goal to secure the job based on his work prosecuting Wall Street. He may have wanted the job but did not get it.
The same ambitions were true for the three government prosecutors in my case – all three left government shortly after closing out my case for higher paying jobs as partners in leading law firms. They and their new employers spent considerable effort drumming up business on the heels of the skills honed during their time as former prosecutors to future defendants accused of insider trading. They had no problem making the transition from denouncing apparent “greed” in the financial markets to defending that same greed, switching sides in an effective demonstration of greed. As partners at leading law firms they would be highly compensated. The “protectors from greed” sold themselves to the highest bidder, all under the trusting gaze of an unaware public. The door meant to separate and maintain a balance between the public and the private sectors revolves efficiently and profitably.
It is important to understand context of the time and the prevailing mood of the country in October 2009 when I was arrested. In 2008 we had seen the near collapse of the financial system and the wiping out of trillions of dollars of home equity and life savings of the American middle class. The government was forced to bail out the major banks. Mortgages that were bundled up or securitized and sold by banks had contributed to the crisis. Millions of American homes went into foreclosure. Institutions such as Lehman Brother, Bear Stearns, Fannie Mae, AIG and Freddie Mac either filed for bankruptcy or lost over 90% of their market value. An estimated $7 trillion in US household assets were wiped out. And to add to the catastrophe, in late 2008, Bernie Maddoff admitted to running the largest Ponzi scheme under the very eyes of the regulators. Politicians and the public placed the blame squarely on Wall Street. The pubic was clamoring for blood and there was no blood forthcoming. From anywhere.
I had nothing to do with the housing crisis. I was an easy target for politicians, for prosecutors, for pundits, and for Bharara who had just been handed leadership of the Southern District of NY including a mandate for bringing Wall Street under control. I was a successful and expendable hedge fund manager who employed just 250 people. We obtained an overwhelming amount of information on a daily basis and my trading was 100% consistent with the written recommendations of my analysts. In ALL cases, I had a pre-existing position in the stock before allegedly receiving the “tip.” In 2009 and even today, insider trading laws are murky at best and often (intentionally) misinterpreted by prosecutors. The government painted our systematic, well-researched investing as being criminal. Theirs was an overreach of enormous proportions to show that “Wall Street fat cats” were being brought to justice. If I am guilty, then the entire investment business should be declared illegal.
As the Wall Street Journal noted insightfully, “Under standard rhetoric, the public is somehow cheated by all this, but the standard rhetoric is nonsense. The public isn’t damaged because another party wants to sell or buy (and most hedge funds strive to make sure their trading doesn’t affect prices anyway). But a cynic might note one thing: insider-trading law provides a bottomless reservoir of (supposed) financial ‘crime’ for Washington to investigate whenever it needs a Wall Street prosecution to flounce in front of the press.” [Endnote 1]
As a child, having gone to boarding school in a foreign country at the age of 11, I learned quickly and early to be a fighter, a scrapper. This is a blessing and a curse. Over the years, I have learned that you don’t always have to fight. The kindness of many people has defanged and disarmed me to a large extent. However, when people try to take advantage of me, I have to respond. I don’t back down. And I am fortunate to have been blessed with the mental fortitude and financial resources to fight for my innocence. Too many people do not. They plead guilty to indictments they cannot challenge. In my experience about 10% of the inmates at the prison in which I spent seven-and-a-half years were innocent.
When I was researching the Justice Department while in prison, I came across a paragraph that struck a chord in me. Unfortunately, I did not write down the name of the author or the source. “Criminal punishment is the greatest power that governments use and wield against their own people. When employed justly and appropriately, it is vital to any safe and productive society. But when employed aggressively based on vague laws and personal agendas the criminal justice system unnecessarily destroys lives, livelihoods, and families.”
Oddly, my experience of the law has left me without rage or a sense of victimhood. While I would never say I am grateful for the experience, I can say with confidence that I like myself better because of it. When I finally broke through the wall of despair, I realized I had gained a sense of peace and awareness that had opened me up and cracked me free. I realized how incredibly strong the human mind is and that nothing can beat a person who refuses to be beaten.
Finally, I want to say that despite what happened to me as a result of a corrupt prosecutor, I love this country just as much as I did before I went to prison. I feel truly blessed to be one of the five percent of the world population who live in America. I do not see people lined up to emigrate to China, Russia, or Japan, for example.
As I reflect on my circumstances and my past, if God had arrived at my doorstep when I was 11 – with a crystal ball — and told me, “Raj, I will give you the wife and children you see here, these friends, and ensure that both your parents live long and happily and give you also the ability to help the less fortunate — But you need to sacrifice about seven years of your life,” I would have taken that deal in a New York second.
I feel very fortunate. I am very fortunate.
Raj Rajaratnam
Features
Closing the Book: Fair regulation of gambling – V
by Prof. C. A. Saliya
Over the past four weeks, this column has taken you to a casino floor on the Colombo waterfront, a card game under an awning, a trading app glowing in a teenager’s bedroom, and a racecourse where the numbers on the board are quietly rigged in the house’s favour before the horses even reach the starting gate. Four completely different worlds. Four completely different sets of laws governing them. And, underneath every single one, the exact same machine.
It’s worth stating that machine plainly, one final time, because it’s the thread that has run through this entire series: every form of gambling we’ve examined has a built-in mathematical edge that belongs to the operator, not the player. Every one of them puts real effort into making that edge feel invisible, by calling itself a sport, a tradition, an investment, or simply harmless fun. And every one of them has a shadow version, an informal or offshore tier, that exists specifically to serve the customers the legal, licensed version either can’t reach or won’t touch.
Once you see that pattern, you can’t really unsee it. A casino’s house edge, a bookmaker’s overround, a trading platform’s spread, and the quiet certainty that whoever’s running the neighbourhood’s illegal numbers game isn’t doing it as a charity, they’re all the same idea, wearing different clothes.
Sri Lanka’s moment of choice
Which brings us to the reason this series exists right now, rather than five years ago or five years from now: Sri Lanka is in the middle of the biggest overhaul of its gambling laws in more than a century. A new Bill, gazetted under President Anura Kumara Dissanayake, would scrap three separate, ageing pieces of legislation, the ordinances covering horse racing, general gambling, and casinos, the oldest dating back to 1889, and replace them with a single Gambling Regulatory Authority responsible for the entire industry, from a Colombo casino table to an online betting app.
That’s a genuinely significant moment, and it deserves to be judged fairly, against the three failures we’ve traced through this series rather than against vague hopes or fears. So, let’s do that, one at a time.
Does it close the gap between licensed gambling and everyone else’s gambling? Almost certainly not, and, as we argued in Part 2, it probably shouldn’t try. A modern regulator built to license casinos and tax betting operators has no realistic way of prosecuting a card game at a funeral house. That gap between “gambling the wealthy do” and “gambling everyone else does” is older than the Republic itself, and one new law was never going to close it. The more honest question for policymakers isn’t how to stamp out Buruwa, it’s whether the country should keep spending any enforcement energy at all pretending it might, when that energy could go toward the tier of the industry that actually causes measurable financial harm.
Does it bring trading apps and offshore forex platforms under the same protective umbrella as gambling? No, and this is the new law’s single biggest blind spot, exactly as we laid out in Part 3. A 19-year-old can lose their entire savings to a leveraged CFD trade with none of the protections that would apply if they’d lost the same money at a licensed casino table: no mandatory age verification built for gambling-style harm, no loss limits, no cooling-off period, no self-exclusion register. The new Gambling Regulatory Authority, as currently designed, has no jurisdiction over any of it, because these products are still classified as financial services rather than gambling, a distinction that matters enormously on paper and barely at all to the person who actually loses the money.
Does it strengthen the fight against unlicensed offshore operators? Here, genuine credit is due. The new law’s Digital Gambling License, requiring both local and offshore online operators to hold a Sri Lankan licence before taking bets from Sri Lankan customers, is a real and overdue step, arguably the single most useful thing in the entire Bill. Whether it can actually be enforced against operators sitting on servers in another country, outside Sri Lankan jurisdiction, is a separate and much harder question. But as a statement of intent, it’s the clearest sign yet that the government understands where the real money, and the real modern risk, has moved to.
What the rest of the world is trying
Sri Lanka isn’t figuring any of this out alone, and it’s worth glancing at how others are handling the same puzzle. Britain’s Gambling Commission is one of the world’s most established regulators, and it is currently under real political pressure over gambling advertising and whether operators do enough to check that customers can actually afford their losses, a reminder that even a mature, well-resourced regulator never really finishes the job. Curaçao, a small Caribbean territory, built its reputation on issuing gambling licences fast and cheap, which sounds appealing until you realise it’s also a cautionary tale about what happens when a “race to the bottom” on licensing standards leaves consumers with almost no real protection at all. And the United Arab Emirates offers the opposite lesson: a country that spent decades as one of the strictest gambling-ban states in the world, now in the process of building a licensed casino and betting industry from scratch, precisely because its leaders concluded that a controlled, visible industry was easier to manage, and tax, than an invisible one they could never fully suppress anyway.
Sri Lanka’s new law sits somewhere between those examples: more ambitious than Curaçao’s light-touch approach, less mature than Britain’s decades-old framework, and facing the same fundamental question the UAE has just decided for itself, is it better to chase an activity underground, or bring it into the light where it can at least be taxed, measured, and, where necessary, restrained?
What no law can fix
It’s worth being honest about the limits of regulation, too, because this series has tried throughout not to oversell what any single law can achieve. No Gambling Regulatory Authority, however well designed, is going to stop a family playing Buruwa at a funeral house, and it probably shouldn’t try to. Some forms of gambling are so deeply woven into ordinary social life that treating them as a policing problem wastes effort that would be far better spent where the actual harm is concentrated: online, on trading apps, at unlicensed operators reaching people through their phones at two in the morning, far from any awning or family gathering.
A closing word, not a closing bet
If there’s one thing worth taking away from five weeks of this column, it isn’t a tip for the next race, or a warning to delete your trading app, though there’s a case for both. It’s simply this: understanding how the house edge works, in a casino, at a card table, on a trading screen, or at the bookmaker’s window, doesn’t make you better at winning. Nothing does, reliably, over the long run; that’s what “house edge” means. What it does is make you a harder person to fool, which, in an industry built almost entirely on making its edge feel invisible, might be the only real advantage a player ever gets.
The most dangerous bet in this entire series was never really a bet at all. It was assuming that because a game wears a suit, or a silk shirt, or a family blessing, it doesn’t have a house. It always does. The only real choice any of us has is whether we walk in with our eyes open.
This concludes our five-part Out of the Box series on the business of gambling. If you or someone you know is struggling with gambling-related harm, please seek support from a qualified counsellor or helpline in your area.
(Prof. C. A. Saliya, is a charted accountant, academic, researcher and former banker. He is the author of SAMAJA GAVESHAKAYA and Springer Publication DOING SOCIAL RESEARCH. He can be contacted at saliya.ca@gmail.com. The views expressed in this article are his own and do not necessarily represent those of the organisations with which he is affiliated.)
Features
Why Sri Lanka needs an Inclusive Civic Nationalism – urgently
by Sasanka Perera
(The writer is on X as @sasmester)
The frenzied online actions of thousands of Sri Lankans responding to the Canadian actress, Maitreyi Ramakrishnan, calling herself an Eelam Tamil and opting not to identify herself with Sri Lanka has gone viral. Many of these were ‘Sinhalas’ from the country and the diaspora. An equal number of people spoke in support of the actress too, most being diasporic and local Tamils. Much of the latter was driven by a sense of online-Eelam nationalism. The liberal-woke types from Lanka claimed the Canadian actress as our own despite Ramakrishnan having made it very clear she does not want to be identified as such. The first two of these expressions are clear examples of ways in which nationalism should not manifest, usually as a divisive and exclusionary force. The liberal third expression is simply silly, irrelevant and sad. This said, I have never considered nationalism as useless or dangerous if it can be intelligently and inclusively fashioned to serve the nation. This is very different from my friends in the Sri Lankan Left, who have generally rejected all forms of nationalism.
However, one must be mindful that across the globe nationalism has long walked a dangerous tightrope. Too often, its supporters in different countries have defined the nation through an exclusionary lens, drawing narrow circles around who ‘truly’ belongs and pushing minority communities to the periphery. Two very dangerous ongoing manifestations are epitomised by the virulent US and Israeli nationalisms espoused by Donald Trump and Benjamin Netanyahu. Consequences of their toxic rhetoric have gone beyond their national borders to impact the entire world. In Sri Lanka, this global malaise has found a localised anchoring as exemplified by the online explosion of competing ethnic nationalisms referred to at the beginning of this essay.
For decades, dominant political narratives have cast nationalism mostly in majoritarian and ethno-cultural and religious terms, overtly or subtly privileging the Sinhala identity. In doing so, this version has mostly alienated Tamil, Muslim, Burgher, and other communities, transforming a concept that should have ideally unified the people of the nation into a wedge that drives them apart. These other communities also have on their own come up with similarly competitive, exclusionary and at times, virulent forms of ethnoreligious natalisms.
But this is not how Sri Lankan nationalism emerged, at least among the elites, in the early years prior to independence. It was far more inclusive and inclusionary than we can fathom today. Compounding the present exclusionary trend is a more cynical phenomenon. That is the weaponization of identity by woefully unethical political interests. In the hands of many political parties and at present, among the fractured and irrelevant political opposition, nationalism in Sri Lanka has been reduced to crude, emotional rhetoric. Or to put it more clearly, it has been turned into a tool of convenience hauled out during election cycles or in times of existential political crisis to secure votes and support through divisive and chauvinistic mobilization. This phenomenon is clearly visible among Sinhala, Tamil and Muslim-dominated political parties.
This brand of nationalism is both offensive and counterproductive, even though many nationalisms in the world today work precisely like this. Such a negative, virulent and exclusionary nationalism only offers hollow slogans while failing to address the fundamental socio-economic realities and existential crises reaching across international borders that ordinary citizens must face regardless of whether they speak Sinhala or Tamil. It thrives on stoking fear rather than building state capacity or national pride.
To break this cycle, Sri Lanka must self-consciously move toward an inclusive civic nationalism. In my mind, this reimagined identity must necessarily encompass all Sri Lankans across ethnic, linguistic, and religious boundaries. This is the kind of nationalism that did exist among the elites prior to independence and also reemerged decisively during the public protests of the aragalaya. But I am unsure of its continuity, although it is clear the present government has not offered any ammunition to build a divisive and exclusionary nationalism within the country as in the past. Such inclusive civic nationalism however, does not manifest in the government’s dealings with other nations where the more dominant streak is an unfathomable sense of servility.
Crucially, this new civic nationalism must operate purely on behalf of the sovereign state and its national interest, refusing to use ethnicity or religion as filters for patriotism. It should also be a driver for our national interest when dealing with other countries –– big or small. When a citizen contributes to the economy, pays taxes, or defends the rule of law, their right to the nation is absolute. True nationalism respects diversity not as a concession, but as the very bedrock of the nation’s strength.
An inclusive nationalism, however, is not merely a domestic moral imperative; it is a geopolitical necessity as well. In an era where small nations are increasingly caught in the crosshairs of great power competition, Sri Lanka cannot afford to be internally fractured.
We have seen ample evidence of how external pressures can sideline our interests — whether through lopsided economic leverage, geopolitical arm-twisting, or diplomatic overreach by regional and global powers like India and China. Particularly this international dimension of nationalism has not seriously been discussed in Sri Lanka and it is hardly an integral part in our negotiations with other nations.
There has been continuous diplomatic pressure and policy lobbying, driven by long-term Indian security and political interests, to construct a physical road and rail link along with power and energy connections between India and Sri Lanka. While Indian proponents and their many Sri Lankan cohorts pitch this purely through an economic lens of trade and tourism, many Sri Lankans view it with deep apprehension. But this apprehension is hardly articulated in any sensible way in any sensible forum including in national politics. It is almost a whisper, albeit a widespread one. Beyond environmental vulnerabilities in the fragile Palk Strait ecosystem, there is a legitimate fear that an open land corridor would strip away Sri Lanka’s natural island strategic defence as well as its identity itself. It risks opening up the country to asymmetric socio-political pressures more than it endures at present, potential demographic and migration imbalances, and tighter economic subjugation by its massive neighbor, effectively transforming Sri Lanka into an easily accessible periphery of the Indian mainland. Besides, a physical link is not an absolute necessity for connectivity.
The Chinese situation is no different. Over the past two decades, aggressive infrastructure financing by Chinese state-owned banks have led Sri Lanka into high-cost commercial debt, culminating in the 2022 economic collapse and the infamous 99-year lease of the Hambantota Port to a Chinese joint venture. This highlights how a weak, fragmented state can be reduced to the role of a pawn in a ‘debt-trap’ or broader Indo-Pacific great power rivalry. When national leaders prioritise short-term political survival or personal patronage networks and wealth accumulation over national interest, critical sovereign assets are compromised, turning parts of Sri Lankan territory into strategic flashpoints for foreign powers. This has already happened in Sri Lanka.
An inclusive Sri Lankan nationalism ensures that decisions on sovereignty and borders as well as the value of national economic assets are evaluated from the standpoint of all citizens and only in the national interest –– not forced through by a locally powerful government with a compliant international relations outlook susceptible to external lobbying. A unified nation can objectively weigh economic connectivity against strategic vulnerability without internal or regional factions weaponizing the issue for sectarian advantage.
In my mind, an inclusive, civic nationalism establishes a firm, non-negotiable doctrine: no foreign power, whether Eastern or Western, regional or global, is permitted to compromise Sri Lanka’s territorial integrity or economic sovereignty. It ensures the country’s national interest and long-term survival are carefully aligned to the economic independence of the nation, ensuring that future governments maintain transparency, resist predatory lending, and treat national assets as sacred public trusts rather than bargaining chips. This does not mean the closure of opportunities for overseas investments. Rather, it means those investments would be based on transparency, on equal grounds and with equal benefits based on similar rules and conditions as those operational in the very countries we deal with.
When a nation is internally divided along ethnic and religious lines or is submissive in the way it deals with the world, it is inherently weak, vulnerable to external manipulation, and ill-equipped to negotiate fiercely.
A unified, inclusive Sri Lanka, backed by a nationalism rooted in collective strength and an inclusive sense of national pride rather than narrow exclusion, can stand its ground. Only then can we speak with one voice to defend our sovereignty, protect our economic assets, and chart an independent course in the Indian Ocean and the world.
Features
Eastern University and the making of a culture of peace
by Jehan Perera
There is an important change in the way peace is being understood in Sri Lanka. The notion that peacebuilding is not simply the responsibility of governments, politicians and peace organisations, but is also a responsibility of educational institutions, appears to be permeating the consciousness of at least a section of the academic community. This was visible on International Peace Day at an event held at Eastern University by the Faculty of Health-Care Sciences. The event was unusual not least because the medical and nursing faculty of the university had decided that peacebuilding was relevant to its academic and professional responsibilities.
Peacebuilding has too often been treated as something undertaken after conflict, when the fighting has stopped and the immediate task is to rebuild relationships between communities. But peace cannot be sustained by governments and peace organisations alone. If it is to become long lasting, the values and practices of peace have to become part of the institutions through which a society educates its younger generations. Universities and other educational institutions are therefore important to peacebuilding. They are among the places where the foundations of a culture of peace can either be built or neglected.
The experience of the Faculty of Health-Care Sciences at Eastern University provides a practical example of what this can mean. Led by its Dean, Prof Thillainathan Sathaananthan, the faculty organised an event which went beyond the ordinary academic scope of a medical faculty. University academics are experts in writing project proposals and applying for research grants. On this occasion, the members of the Faculty of Health-Care Sciences used those skills to apply for a UNESCO grant that they won to conduct an International Peace Day event. The significance lies less in the Rs 200,000 grant than in the decision to use the university’s institutional capacity and resources to invest in peacebuilding. The event at Eastern University needs to be understood as more than a successful university programme. It represents a possible paradigm shift in peace thinking.
Institutional Commitment
The Peace Day event obtained the support of the university administration, including Vice Chancellor Prof P Peratheepan, and reached out to secondary schools in the vicinity to mobilise their attendance. The event itself was meticulously organised. There were cultural items including traditional and modern dance and song in the three languages, performed by combinations of solo, duet and multiple singers, dancers and actors drawn in part from nearby secondary schools. There was a panel discussion by senior academics on the general theme of peacebuilding and how to prepare for it. A discussion among the students followed, where each student spoke on behalf of a religion that was not theirs. This is significant because peacebuilding cannot remain an idea discussed by specialists at conferences. It has to become part of the way institutions educate and prepare people for life in a plural society.
The Faculty of Health-Care Sciences at Eastern University has provided a model through its Peace Medicine course modules that were introduced to the curricular as a compulsory core course over 10 years ago. Two senior academics, Dr Kuveriel Eliyas Karunakaran and Dr Thillainathan Sathaananthan, have written a book on “Peace Medicine- A Health Care Concern” that was published five years ago. Its Peace Medicine Module integrates principles of medical ethics, compassion, equity, social justice and community engagement into health education and practice. In his introduction, former Vice Chancellor of Eastern University, Prof T Jayasingam noted “This book is an introduction to a theme which had already been operating in the Faculty of Health Care Sciences as a course.”
Doctors, nurses and health workers know better than anyone the harm that war and violence does. They are the people who treat the wounds and trauma that violence leaves behind. In a hospital, a patient is not asked what their religion or ethnicity is before they are treated. Health care is one of the places where peace is practised every day. The Faculty has therefore found a way of connecting its professional responsibilities with the wider social responsibility of peacebuilding. The question is whether this experience can be replicated throughout the country, at universities and at other educational institutions, so that peacebuilding becomes part of the consciousness of education itself. If that happens on a sufficient scale, it can begin to generate a culture of peace that becomes increasingly difficult to reverse.
Local Action
The Eastern University event corresponded closely to the United Nations theme for this year’s International Day of Peace, “Invest in Peace – For Everyone, Everywhere, Every Day”, which honours the “everyday architects of peace”, people driving local action, laying the groundwork for stability and building lasting peace from the ground up. The emphasis on investment is important. An investment means that something is put in: time, courage and resources. There is no more violent conflict in Sri Lanka today. But the absence of war does not automatically produce a culture of peace. The factors that fed the country’s conflict have not disappeared from the world. Racism, corruption and the violation of laws and human rights are the raw materials of conflict. So too are unresolved grievances, discrimination and the failure to recognise the suffering of others.
A country that does not deal with its past does not escape it. The past can return in the next generation. This is why the experience of Eastern University needs to be replicated countrywide, both at universities and at other educational institutions. The objective should not be to turn every academic discipline into peace studies. Rather, peacebuilding needs to become part of the consciousness of education itself. Eastern University shows that a medical faculty can develop Peace Medicine. A law faculty can examine the relationship between justice, rights and peace. Faculties of education can prepare teachers to work in diverse communities, while the humanities and social sciences can examine the different narratives through which communities understand their histories. Every institution can find its own way of making peacebuilding relevant to what it teaches.
Sri Lanka has had many declarations, pledges and programmes in the past. What matters is whether these produce changes in behaviour and institutional practice. Peacebuilding requires confronting difficult issues rather than avoiding them. It requires respect for different identities, but also engagement across those identities. It requires dealing with grievances in the present while also addressing unresolved issues from the past. It requires truth, accountability, reparations and guarantees of non-recurrence. It requires people to learn that the rights of another community do not diminish their own rights. The International Peace Day event at Eastern University was evidence of a change in the way at least some academics in a part of the country deeply affected by war are thinking about their responsibilities. Peace needs to be invested in and the most important investment will be in the minds of those who will inherit the future.
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