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Midweek Review

Prez polls 2024:Passage of Economic Transformation Bill strengthens Ranil’s strategy

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Independent presidential candidate Ranil Wickremesinghe with Minister Romesh Pathirana (SLPP), Wajira Abeywardena (UNP) and Minister Manusha Nanayakkara (SJB) at the 'Ekwa Jaya Gamu – Api Galle' public rally held on July 27 at the Galle Municipal Council Stadium (pic courtesy PMD)

By Shamindra Ferdinando

Japanese Ambassador in Colombo Hideaki Mizukoshi meticulously dealt with Sri Lankan economy and post-Aragalaya developments in a strongly-worded speech delivered at the Sasakawa Memorial Hall, Bala Tampoe Lane, Colombo 03, last week.

Ambassador Mizukoshi didn’t mince his words as he delved into the still developing political-economic-social crisis that forced an unprecedented political change in 2022, just a couple of months after he received the diplomatic appointment here. After clandestine preparations, Aragalaya was launched on March 31, 2022. The violent protest was staged outside President Gotabaya Rajapaksa’s private residence at Pangiriwatta, Mirihana. The President was forced out of office on July 14, 2022, and UNP leader Ranil Wickremesinghe installed as the eighth President, a week later, to pave the way for an extraordinary international effort to rescue bankrupt Sri Lanka or was it a case of ‘economic hitmen’ having deliberately bankrupted the country to undo the unprecedented achievements of the Rajapaksas, especially in militarily destroying the terror outfit, the LTTE, against the wishes of the so-called international community – meaning the arrogant West?

The so-called experts who blame everything on the Rajapaksas at the drop of a hat, however do not explain why the Yahapalana government, whose Prime Minister was Ranil Wickremesinghe, resorted to borrowing from the international bond market more than 10 billion dollars, at high interest, on top of getting over one billion US dollars by Leasing out the Hambantota port, without undertaking any notable projects of their own to show what they did with all that money,.

The Yahapalana lot also shamelessly staged two massive daylight robberies at the country’s Central Bank with an imported Singaporean Governor as its head at the time and he was allowed to slip out of the country scot-free.

. They even got a ‘joker’ MP to write a book denying there having been any robbery at the Central Bank. He certainly is no joker, being a lawyer he would have definitely benefited.

Among the invitees at the event, organized by the Lanka-Japan Friendship Society (LJFS), where Ambassador Mizukoshi expressed his candid views on the issues at hand and challenges ahead, was Deshamanya Prof. Waligamage Don Lakshman, the 15th Governor of the Central Bank. His wife Kalyani Sirisili was by his side.

The former Vice Chancellor of the University of Colombo, for a period of six years during President Chandrika Bandaranaike Kumaratunga’s first term (1994-1999), served as the Governor, CBSL, at the time, rapid economic deterioration took place in the post 2019 presidential election. Having succeeded Dr. Indrajith Coomaraswamy on Dec 24th, 2019, Prof. Lakshman resigned on Sept. 14, 2021, amidst the onset of the crisis, widely blamed on the mismanagement of the economy and criminal negligence on the part of those responsible for fiscal discipline over a period of time.

Prof. Lakshman had been one of those who were found guilty by the Supreme Court last November for the economic collapse. Among the others faulted by the Supreme Court were former President, Mahinda Rajapaksa, ex-Governor, CBSL Ajith Nivard Cabraal, ex-Minister Basil Rajapaksa and Dr. P.B. Jayasundera, Secretary to the then President.

Going back to the Yahapalana government that obtained over USD 10,000 mn in new International Sovereign Bonds (ISBs), between 2015 and 2019, so no wonder we still have an outstanding ISB stock of USD 12,500 million. In a statement issued on Dec 20, 2023, the former President asserted that USD 10,000 mn in new ISBs procured between 2015 and 2019 broke the back of our economy. Rajapaksa alleged that the IMF declined in March 2020 to provide Sri Lanka emergency assistance. The rest is history.

Within weeks after being appointed Governor, CBSL, in April 2022, Dr. Nandalal Weerasinghe told the watchdog parliamentary committee why the IMF declined to assist Sri Lanka.

Among the audience at Sasakawa Memorial Hall were Prof. G.L. Peiris, MP, Admiral of the Fleet Wasantha Karannagoda, who served as our Ambassador to Japan during Gotabaya Rajapaksa’s tenure as President, and career diplomat Rodney Perera, incumbent Ambassador in Tokyo. Perera, who opted for early retirement while serving as Ambassador in Washington in late 2020, received appointment as Ambassador in Tokyo in January 2023. He is one of the sons of the late UNP parliamentarian Paul Perera.

Paying a glowing tribute to Central Bank Governor Dr. Nandalal Weerasinghe and Treasury Secretary Mahinda Siriwardena for spearheading the economic recovery, Ambassador Mizukoshi issued a dire warning to political parties jostling for power. Ambassador Mizukoshi declared that regardless of the outcome of the Sept 21 presidential election, the country would have to adhere to IMF remedies or face the consequences. The Japanese envoy emphasized that Sri Lanka couldn’t under any circumstances deviate from the agreement reached with the IMF. Of course, he was speaking for like-minded countries.

Japan, one of the Quad countries, is a major US ally and represents their interests. Ambassador Mizukoshi also discussed the unprecedented nature in taking up the debt issue with China, the number one creditor, especially against the backdrop of both China and number 3 creditor India not being part of the Paris club. Japan is the number 2 creditor.

Ambassador Mizukoshi pinpointed the failure on the part of the powers that be to address basic issues, even after the irresponsible governance bankrupted the country. The top envoy explained how utterly lethargic bureaucracy caused delays and in some cases held up external help to the needy. But, what really raised eyebrows were his unvarnished comments on the controversial issuance of online visas. Ambassador Mizukoshi explained how the new system discouraged foreigners from visiting Sri Lanka at a time the country needed a revenue boost.

The 30-minute speech put those in authority to shame. Instead of being upset by such frank expression of views, the government should address the contentious issues at hand without further delay. During a brief question and answer session, Ambassador Mizukoshi emphasized the responsibility on the part of Sri Lankans to tackle corruption at all levels. The Japanese envoy made reference to the ongoing Japanese-funded UNDP project aimed at strengthening the CIABOC (Commission to Investigate Allegations of Bribery or Corruption).

GR causes sharp drop in revenue

collection

As underscored by Ambassador Mizukoshi, the pivotal importance in adhering to IMF remedies, whoever wins the presidential election, the revenue collection is expected to be one of the major challenges.

The IMF has proposed a series of tax reforms meant to achieve fiscal sustainability and tax to GDP ratio of at least 14% by 2026. The current issues cannot be discussed without making reference to unparalleled 2019 tax cuts that destabilized the national economy. Apparently stubborn Gotabaya, who was no economist, being essentially an ex-military man, was misled by his economic advisors at the worst possible time.

Claiming that the tax cuts would boost the domestic economy, the Gotabaya Rajapaksa government reduced Value Added Tax (VAT) from 15% to 8%, abolished 2% Nation Building Tax (NBT). The government combined NBT with the Ports and Airport Development Levy with a relevant ratio of 10%, and tax on telecommunications tariffs was slashed by 25%. The following taxes were done away with: economic service charge, debit tax in banking and financial institutions, capital gains tax on the share market, VAT on sovereign property, Pay as You Earn (PAYE) tax, withholding tax on interest income and credit service tax.

The pandemic and the tax relief caused a massive burden on the Treasury. As a result of these foolish decisions tax revenue, as a percentage of GDP, was reduced from 8.1% in 2020 to 7.7% in 2021. The number of taxpayers dropped by a million between 2020 and 2022. The economy couldn’t stomach the deadly blows delivered by the government in a country where the contribution of direct taxes to the GDP was only 2%.

An IMF Technical Assistance report: Sri Lanka Governance Diagnostic Assessment released in September 2023 attributed the continuing crisis to what the IMF described as a confluence of shocks and policy missteps led to a deep economic and governance crisis. The report prepared by a team led by Joel Turkewitz pointed out how two years of low tourism revenues, due to COVID, loss of market access, deep reductions in tax revenues, and the debt service burden depleted reserves, ruined the economy.

In spite of reaching agreement with bilateral and private creditors, regarding debt repayment, the country is yet to work out proper structures required to streamline tax collections. The responsibility on the part of the incumbent government, and the party that secures the presidency at the September 21 election, is to implement tax reforms to strengthen the fiscal position and address structural weakness of the domestic economy on a priority basis.

One of the key issues that should be addressed by the government, following the next presidential election, is the Foreign Exchange Act No 12 of 2017 enacted at the behest of Yahapalana Premier Ranil Wickremesinghe. Some lawmakers, including Justice Minister Dr. Wijeyadasa Rajapakshe, PC, both in and outside Parliament, on numerous occasions, declared that the abolition of Exchange Control Act No 24 of 1953 contributed to the economic crisis. Unfortunately, Dr. Rajapakshe, being the only lawmaker to represent the government parliamentary group, did nothing, except for repeatedly alleging the new law allowed unscrupulous exporters not to bring back export proceeds. However, Dr. Rajapakshe, appeared to have conveniently forgotten that he had been among those Yahapalana lawmakers who voted for the new Foreign Exchange Act No 12 of 2017 that replaced the time tested Exchange Control Act No 24 of 1953.

Having voted for that damaging piece of legislation, the then UNPers now with the SJB, too, remain silent. SJB and Opposition Leader Sajith Premadasa himself had voted for Foreign Exchange Act No 12 of 2017, along with Dr. Harsha de Silva, Eran Wickremaratne and Kabir Hashim, key members of the SJB parliamentary group crying so much about the need for proper financial management.

Some useful proposals

Active citizen L.J. Udukumburage, recently discussed ways and means of improving tax collection and the responsibility on the part of political parties, represented in Parliament, to take tangible measures in this regard.

In a brief interview with The Island, at his office, Udukumburage, CEO of Iceland Residencies, located opposite the Indian High Commission, found fault with successive governments for their egregious failure to adopt a comprehensive tax strategy.

Had there been an efficient system devoid of political interventions/interferences, as in the case of 2019 tax cuts, the country would have been in a much better position in the economic crisis. The Supreme Court ruling on the ruination of the economy in November 2023 must be made available to all members of Parliament as well as the executive for them to understand the gravity of the situation.

Udukumburage asserted that by ensuring all payments above Rs 50,000 were channelled through the banking system, tax collection could be maximized. If properly implemented, there was absolutely no requirement to maintain a cumbersome personal tax files system, Udukumburage said, adding that this would pave the way for bringing back black money into the legal system following taxation.

Responding to queries, Udukumburage explained the proposed strategy (1) all payments over Rs 50,000 must be through bank transfers-savings/current account or debit/credit card (2) ATM and other cash withdrawals, including credit card tax free up to Rs 200,000 a month (3) strict monitoring of opening of new accounts. Udukumburage proposed an amnesty for those who bank cash above Rs 200,000 in hand. “Of course, the government needed to enact laws to ensure people adhere to the curbs in place,” Udukumburage said, urging the powers that be to take appropriate measures without further delay to tighten up the banking system.

Referring to discussions both in and outside Parliament, after the declaration of bankruptcy in April 2022, Udukumburage pointed out that various systems acquired at tremendous cost to the taxpayer had been ineffective or not properly used for obvious reasons. The total amount of uncollected taxes and fines often mentioned in press releases issued by Parliament is evidence that successive governments lacked the political will to go the whole hog.

Revenue collection apparatus remained ineffective and corrupt as alleged by Chairman of the Ways and Means Committee Patali Champika Ranawaka, MP and leader of Eksath Janaraja Peremuna. The recent declaration by the former Minister that several liquor producers, including W.M. Mendis Company, owed the government Rs 6 bn, though the Excise Department estimated that amount to Rs 600 mn, underscored the severity of the issue.

The accusations directed at the Customs and Inland Revenue Department, the two other primary revenue collection setups over the years remained uninvestigated. In spite of disclosures made at parliamentary watchdog committees as regards the Excise, Inland Revenue and Customs, successive governments haven’t taken remedial measures.

Udukumburage emphasized that if the government took appropriate measures to streamline tax collection, those struggling to make ends meet wouldn’t be burdened with additional taxes. Instead of introducing new taxes or further increasing VAT (Value Added Tax), the government, the one elected following the next national election, could overhaul the revenue collection setup, Udukumburage declared.

Udukumburage proposed that the government should take into consideration strong opposition to tax salaries above Rs 100,000. Pointing out that many protested against the current PAYE tax scheme, Udukumburage asserted that the government could increase the monthly personal tax free allowance to Rs 200,000 by streamlining tax collection.

Ranil issues warning

Close on the heels of the Japanese Ambassador stressing the responsibility on the part of the presidential election winner to adhere to IMF remedies, President Wickremesinghe reiterated, in Galle, that his government was operating in line with the agreement reached with the Washington-based lending body. The UNP leader dismissed claims that his government was operating outside the IMF framework while warning that such false declarations jeopardize the country.

Despite strong opposition from some members of Parliament, President Wickremesinghe, in spite of being reduced to just one UNP MP in Parliament, pursued his political strategy.

A few hours before the Japanese Ambassador’s talk, Parliament passed the Public Financial Management Bill and the Economic Transformation Bill, both crucial pieces of legislation adopted in support of the IMF-led recovery effort. The Parliament adopted both Bills without a vote following amendments made during the committee stage.

The approval for the two Bills can be considered a personal victory for President Wickremesinghe. The SJB-led Opposition owes an explanation whether they are satisfied with the amendments introduced during the committee stage.

Dissident SLPP MP Charitha Herath recently declared that Wickremesinghe couldn’t, under any circumstances, compel other political parties to adopt and continue with his economic policies in case he lost the forthcoming national election.

Herath, now aligned with the SJB, is on record as having alleged that the ‘Economic Transformation Bill’ and ‘Public Financial Management Bill’ were intended to transform Wickremesinghe’s political manifesto for the forthcoming presidential poll into a far reaching law.

MP Herath warned if Wickremesinghe succeeded in his endeavour, it could have a detrimental effect on the political party system. Actually, the new law would make the election process a farce. In fact, such a law or system could exist only in a country ruled by hardline communists, MP Herath told The Island.

Whatever the circumstances, the Parliament adopted two Bills, particularly the Economic Transformation Bill, and the move would be appealing to the IMF bent on ensuring Sri Lanka’s adherence to its remedies, often criticized by the Opposition. The creditors’ position articulated by the Japanese Ambassador recently and the passage of the Economic Transformation Bill would be in good stead for Wickremesinghe campaigning for a five-year term.



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Midweek Review

From regime change project to ‘Know BJP’ initiative

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Tilvin Silva meets Dr. Jaishankar in New Delhi recently

In the run-up to the 2015 Presidential election, a Chinese submarine visit, in 2014, caused major media fury. Indian media alleged the vessel was nuclear powered. In spite of Sri Lanka repeatedly assuring that it was not and New Delhi was always informed in advance of Chinese submarine visits, the Modi government, however, resorted to action detrimental to the Rajapaksas ahead of the presidential poll.

By Shamindra Ferdinando

One of the busiest Indian politicians, Indian External Affairs Minister Dr. S. Jaishankar, recently received JVP General Secretary Tilvin Silva, in New Delhi. It was Jaishankar’s second meeting with Silva, in New Delhi, this year. They first met in February.

The ruling Bharatiya Janata Party (BJP) invited the JVP General Secretary as it sought to enhance direct relations with the once morbidly anti-Indian so-called Marxist party in line with the overall Indian strategy. The five-day visit (27 Sept. to 01 Oct.) perhaps underscores the deterioration of other political parties represented in Parliament and outside. The media reported the invitation was extended under the ‘KNOW BJP’ initiative intended to familiarise the international community with the history of the party.

Among those who met Silva were BJP National General Secretary (Organisation) B.L. Santhosh, National President of the BJP Mahila Morcha (Women’s Wing) Roopkumari Choudhary, BJP Youth Wing representatives Vineet Vats Tyagi and Bhakti Sharma. Chief Minister of Delhi, Ms. Rekha Gupta, as well as Delhi State Education Minister Ashish Sood. Silva also met Delhi BJP President Harsh Malhotra.

Welcoming the JVP delegation at the BJP’s Delhi Office, newly appointed Delhi BJP co-incharge and former Surat MP Darshana Jardosh, who took charge at the party office recently, said in a Facebook post: “India and Sri Lanka share a timeless bond rooted in civilisation, culture and faith. Under the visionary leadership and sustained efforts of Prime Minister Narendra Modi, India-Sri Lanka relations have gained renewed momentum, with stronger cooperation in development, healthcare, energy, connectivity and people-to-people ties. Such meaningful exchanges strengthen mutual understanding and reaffirm our shared commitment to democracy, development, public welfare and a stronger neighbourhood.”

The JVP delegation consisted of its General Secretary Tilvin Silva, Central Committee member Chandrika Adikari, lawmaker Aboobucker Athambawa, District Committee member Kabilan Suntharamoorthy and International Department member Kalpana Madhubhashini.

There hadn’t been any previous instance of a General Secretary of a Sri Lankan political party receiving an invitation from the BJP, leading to a meeting with the External Affairs Minister. The BJP/the Government of India wouldn’t have arranged the latest visit unless the powers that be felt the pivotal importance of consolidating ties with the JVP that once waged a bloody insurrection against the deployment of Indian armed forces in Northern and Eastern regions of Sri Lanka (1987 July to March 1990).

Vijay Chauthaiwale, in-charge of BJP’s Foreign Affairs Department, declared that the visit was meant to strengthen BJP–JVP engagement, facilitate the exchange of organisational experiences and further deepen ties between the two political parties.

In late January, 2024, in the run-up to the Presidential election, India made it clear its position regarding the crucial national election when it invited JVP leader Anura Kumara Dissanayake, MP, to New Delhi. Dissanayake’s delegation included MP and JVP propaganda secretary Vijitha Herath, NPP secretary Dr. Nihal Abeysinghe and Professor Anil Jayantha.

The five-day visit, in early Feb. 2024, signalled that New Delhi anticipated Dissanayake’s victory at the Presidential election and was confident of JVP triumph at the parliamentary election. Dissanayake received a mega boost, thanks to his unprecedented meeting with Dr. S. Jaishankar, National Security Advisor Ajit Doval and Foreign Secretary Vinay Mohan Kwatra. In a way, the high-level opportunities, granted by New Delhi, strengthened Dissanayake’s position and may have influenced the voters, living in predominantly Tamil speaking regions.

Having bagged the Presidency in Sept. 2024, the JVP swept the parliamentary polls. The New Delhi’s intervention may have undermined the main Tamil political party, namely the Illankai Thamil Arasu Kadchi (ITAK), one-time LTTE’s cat’s paw. The JVP scored an extraordinary victory in the Northern and Eastern provinces where it bagged 12 seats (Jaffna 3, Vanni 2, Trincomalee 2, Digamadulla 4 and Batticaloa 1). The ITAK was reduced to just eight seats, their worst performance since the eradication of the LTTE, in May, 2009.

Post Easter Sunday developments

Having failed to achieve its long standing political objectives, the JVP, in mid-2019, founded National People’s Power, aka Jathika Jana Balawegaya (JJB).

JVP leader Dissanayake received the leadership of the newly formed political alliance. Tilvin Silva remained the JVP General Secretary, whereas Dr. Abeysinghe, renowned epidemiologist was named the General Secretary of the NPP. While the JVP General Secretary remained outside the parliamentary group, Dr. Abeysinghe successfully contested the Nov. 2024 parliamentary polls. He represents the Kalutara district.

In spite of the JVP/NPP expressing confidence of sharp increase in public support for the candidature of Dissanayake at the Nov. 2019 presidential election, he couldn’t poll half a million votes. Dissanayake managed just 418,553 votes (3.16%) and ended up a distant third.

SLPP candidate Gotabaya Rajapaksa, who hadn’t at least bothered to take SLPP membership, comfortably won the election. The wartime Defence Secretary polled 6,924,255 votes (52.25%) while Sajith Premadasa, who contested under the ‘Swan’ symbol of the New Democratic Front (NDF) obtained 5,564,239 votes (41.99%).

The 2019 Easter Sunday suicide attacks, launched by the National Thowheeth Jamaath (NTJ), created an environment that facilitated Gotabaya Rajapaksa’s victory. Now, the crux of the matter is whether the NTJ, formed in Kattandudy by Mohamed Zahran Hashim, in 2014, carried out near simultaneous suicide attacks to help Gotabaya Rajapaksa, though well tarnished among average Muslims as being anti-Islam, to win the presidency.

The ongoing CID investigation focused on the British Channel 4 claim, aired in Sept. 2023, regarding Easter Sunday carnage, is all about that still unsubstantiated allegation. The CID arrested the former head of Directorate of Military Intelligence (DMI/2012-2016) and ex-State Intelligence Service (SIS/2019 to 2024) Maj. Gen (retd) Suresh Sallay in February, this year, in connection with this investigation. He is held under the Prevention of Terrorism Act (PTA) on allegations ironically levelled by a fugitive from Sri Lankan law.

The current status of JVP/NPP relations have to be examined, taking into consideration the declaration made by the then MP Nalinda Jayathissa, who served as a member of the Parliamentary Select Committee (PSC), that inquired into the Easter Sunday massacre. Jayathissa alleged that India was behind the Easter Sunday carnage. The uncorroborated allegation was made in February 2021, just two months short of two years, after the attacks. However, he denied saying so in August 2025, nearly a year after the Presidential election and in the wake of India and Sri Lanka entering into seven Memorandum of Understanding (MoUs), including one on defence.

The seven MoUs, signed in Colombo, in early April 2025, underscored the trajectory of the Indian strategy. Signing of an MoU on defence hadn’t been publicly mentioned, even during the presidency of Ranil Wickremesinghe (2022 July-2024 Sept.) though the UNP leader sought to further enhance relations with Premier Narendra Modi’s India. Therefore, the signing of the MoU on defence, in April 2025, and the rapid acquisition of the Colombo Dockyard Limited by India’s state-run Mazagon Dockyard Shipbuilders Ltd., couple of weeks later, jolted the country.

In fact, Premier Modi gave the first indication of the impending defence MoU when President Dissanayake visited New Delhi, in Dec. 2024. It was Dissanayake’s first official visit. Although the joint communiqué, issued from New Delhi at the conclusion of the visit, had been silent on the agreement on defence MoU, a translation of Premier Modi’s speech revealed the truth.

In early September, this year, India and Sri Lanka signed three more MoUs, including one that dealt with six L70 air defence systems, operated by the Air Force. Those guns had been acquired during the war against the LTTE to meet the threat posed by small fixed wing aircraft, then possessed by the once fledgling Tiger air force.

Transformation of JVP

The late Somawansa Amarasinghe, in late Nov. 2001, during Chandrika Bandaranaike Kumaratunga’s tenure as the President, disclosed notable change in its position, vis-a-vis India. Having returned from Europe, following a 12 -year self-imposed exile, Rohana Wijeweera’s successor had no qualms in declaring that India saved his life. That declaration was made at his first public rally in Kalutara.

Although the sole surviving member of the original JVP politburo, Amarasinghe, fled the country in Feb. 1990, there hadn’t been at least a reference to possible Indian involvement in the rescue operation. Did Amarasinghe, for some mysterious reason, understate the Indian involvement?

The writer sought an opportunity to seek clarification from Amarasinghe regarding his escape from government forces and death squads hunting for prominent JVPers, even after the execution of Rohana Wijeweera. Amarasinghe politely declined to discuss what he said at the Kalutara rally, in Nov. 2001.

During the second violent rebellion, from 1986 to 1989, Rohana Wijeweera, Upatissa Gamanayake, Sumith Athukorala, D.M. Ananda, Saman Piyasiri Fernando, Piyadasa Ranasinghe, H.B. Herath, Gunaratne Wanasinghe, R.B. Wimalaratne, Somawansa Amarasinghe, Shantha Bandara, Nandatilaka Galappaththi and Lalith Wijeratne, functioned as politburo members.

Some speculate that New Delhi may not have been directly involved in Amarasinghe’s rescue but allowed him to stay there until he found a way out of India. At the height of the insurgency, Somawansa got his wife Malani and son Isuru to leave the country and he later joined them.

What made India facilitate Amarasinghe’s escape or turn a blind eye to his presence there? Whatever happened back in the late 80s may have a significant impact on the developments today. Maybe not. But, the way the JVP transformed itself from a rabid anti-India position to establish partnership is not a mystery. The JVP opposed all projects initiated by previous governments and sabotaged each and every one of them. There cannot be a better example than the JVP-led protests against the 2019 tripartite agreement involving Sri Lanka, India and Japan. President Gotabaya Rajapakasa couldn’t go ahead with the Easter Container Terminal (ECT) project. Faced with non-stop protests, President Rajapaksa was compelled to rescind the agreement.

India protested the move. IHC in Colombo emphasised that “all sides should abide by the existing understandings and commitment” in timely implementation of the agreement, signed in 2019.

Sri Lanka offered India and Japan an opportunity to develop the port’s West Container terminal as a reconciliation move. But Japan pulled out of that partnership.

Sri Lanka (Sri Lanka Ports Authority) finalised the agreement with Adani Ports and SEZ, John Keells Holdings on Colombo West International Terminal (CWIT) in late Sept. 2021. Amidst an unprecedented economic crisis that led to President Gotabaya’s Rajapakasa’s ouster, in July 2022, blamed on a political campaign alleged to have been backed by the US and India, the work on CWIT made rapid progress. If anyone suspected the JVP-led NPP’s sudden about-face intentions as they always opposed anything and everything Indian in the past, the change of government in Sept. 2024 cleared the way for an all-out effort to bring CWIT work to a successful conclusion.

CWIT formally launched operations in the first week of April 2025 in the immediate aftermath of the two countries finalising seven MoUs, including one on defence.

Gotabaya Rajapaksa meets Ajit Doval in late Nov. 2019, in New Delhi. It was Rajapaksa’s first meeting with Doval after Rajapaksa became the President .

New approach

Prime Minister Dr. Harirni Amarasuriya joined Indian High Commissioner Santosh Jha at the recent commissioning of Phase 2 of CWIT project. Declaring that the two million TEU mark has been crossed, in record time, Jha declared: “Let us remember what the Colombo West International Terminal is. A flagship deep-water container terminal. Built by a partnership of the Sri Lanka Ports Authority, John Keells Holdings, and Adani Ports and SEZ. An investment of approximately 750 million US dollars, it is one of the most significant infrastructure investments in Sri Lanka’s maritime sector in recent years.”

Much to the surprise of utterly disorganised and inept political parties in parliamentary opposition and outside, the Dissanayake’s government has indicated that the incumbent administration intends to go along with the US and India. Those who feared to finalise agreements with the US and India, in the past, and often succumbed to JVP inspired trade union pressure, respond with disbelief as the US and India advance their agenda, without the usual resistance from the JVP, with it turning into an ardent admirer of India.

The government has conveniently forgotten the moratorium on visits by foreign research vessels declared by President Ranil Wickremesinghe for the year 2024. That declaration made at the behest of India and US to prevent Chinese research vessels from entering Sri Lankan waters remain in force though the government promised to review Wickremesinghe’s decision. The moratorium on research vessels visits seems to be permanent and no political party, represented in Parliament, is likely to raise it.

The sinking of an unarmed Iranian frigate off the southern coast in the first week of March this year, just outside Sri Lankan territorial waters and in India’s backyard, and subsequent Indian accusations of Chinese military presence at Hambantota, highlighted the crisis hapless Sri Lanka is in. The ongoing controversy over the US warning Sri Lanka of dire consequences if supplies were made available to Iranian vessels stranded off the country’s south western coast.

The JVP/NPP administration appears to be in a dilemma as Sri Lanka cannot forget critical support provided by Iran, especially during Eelam War IV. Former Sri Lankan Ambassador in Tehran, M.M. Zuhair, recalled how the Iranian government swiftly and decisively provided assistance amidst western efforts to jeopardise the military campaign by undermining the national economy.

As the war entered a crucial stage, the government found itself in an extremely difficult situation. Following talks at the highest level, Iran provided Sri Lanka with an interest-free and concessionary oil credit facility worth $1.05 billion to help obtain crude oil requirements, President’s Counsel Zuhair said.

If not for the rolling credit line easing severe foreign exchange pressures, the Rajapakasa government could have faced an insurmountable challenge, the former diplomat said, adding that unfortunately those in decision-making positions now have forgotten the past.

The change in Sri Lanka’s trajectory began with the advent of the treacherous Yahapalana administration. Under the Sirisena-Wickremesinghe leadership, Sri Lanka betrayed the war-winning military at the United Nations Human Rights Council (UNHRC) in Geneva, in Oct. 2015. It would be pertinent to mention that the BJP came into power in the year before securing what the media called a historic absolute majority at the Indian parliamentary polls. Since then the BJP developed its strategy vis-a-vis Sri Lanka.

Sri Lanka is beneficiary of a spate of Indian funded projects implemented over a period of time. Having once launched an insurrection in the aftermath of the Indian Army deployment here, in 1987, and opposed what it called Indian expansionism here, the JVP is now the beneficiary of India funded projects, not only in the Northern and Eastern provinces, but other provinces as well. One of the most important projects of them all was the flagship housing programme meant to construct 60,000 units. Launched after the end of war, in 2009, the project covered the Central and Uva provinces. While continuing the housing project, etc., launched previously, the BJP advanced a comprehensive strategy meant to ensure Colombo remained within New Delhi’s sphere of influence.

Hope you haven’t forgotten how Doval, in 2014, demanded Sri Lanka halt major Chinese projects, including USD 1.4 bn Colombo Port City project and take back China managed Colombo International Container Terminal (CICT) that was in operation since July 2013. Sometime after Mahinda Rajapaksa lost the 2015 presidential election, Gotabaya Rajapaksa revealed how Dorval twice demanded the cancellation of Chinese projects and CICT take over. Sri Lanka’s refusal to heed Indian warnings resulted in them backing turncoat Maithripala Sirisena’s candidature at the 2015 presidential election. The rest is history.

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Midweek Review

Iranian tankers and navigating with a moral compass

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A hand-out photo from the Indonesia Maritime Security Agency shows an Iranian tanker (right) transferring oil to a Cameroon-flagged ship at sea.

Between the devil and the deep blue sea:

by Sasanka Perera
(The writer is on X as @sasmester)

According to news reports, about 19 Iranian tankers are berthed approximately 15 nautical miles off Sri Lanka’s southwestern and western coasts since August 2026. They are void of their cargoes of crude oil, having offloaded them to other tankers destined mostly to Chinese refineries. Seas off Sri Lanka’s maritime boarders are not the only concentration of such inactive Iranian ships with their crews. Malaysian and Indonesian waters and just beyond also have concentrations of Iranian tankers. Sri Lankan authorities have maintained that these vessels are positioned just outside the country’s 12-nautical-mile territorial waters, indicating that local authorities have limited direct jurisdiction over them. While this is legally correct, the potential consequences of these ships being in such close proximity to our waters cannot be ignored.

The current situation has come about because of unilateral secondary sanctions imposed by the United States targeting Iranian shipping around the world. Effectively, secondary sanctions are punitive measures imposed by a powerful country, in this case, the United States, against foreign individuals and entities that do business with a primary target country already under a first-tier embargo or trade ban. In this case, this primary country is Iran. This means, the provision of supplies or services to Iranian vessels by Sri Lankan companies or the government would run afoul of the unilateral US sanctions. At present, these ships are said to be low on fuel, and sustenance such as water and food. So, the underlying question is, should Sri Lanka and the world let the Iranians starve just beyond our waters for fear of US sanctions which are immoral and unethical — if not illegal at least in terms of their own laws.

Since initial local reports suggested that the US had warned Sri Lanka that they would impose sanctions on our country if its authorities provided supplies or services to Iranian ships, the Sri Lankan Foreign Ministry issued a press clarification saying, that the US has issued secondary sanctions as part of ‘their own common policy perspective’ which applies ‘globally and do not target only SL or any specific country.’ This is correct and common sense. But what does it mean to our country, which is caught in the middle of the illegal war the US and Israel are waging against Iran? Being neutral is one matter. But do we allow our moral compass to be compromised and allow people to starve because of our fear of these sanctions. Let me remind, notwithstanding the burden of human rights violations on the part of the state, we are a country that showed mercy to LTTE leaders when they needed medical treatment in Colombo. We also sent shipments of food, medicine, and relief items to trapped civilians in LTTE-controlled areas knowing fully well that these were being intercepted and seized by the LTTE, which would sustain its campaign against the country. There is little doubt we will suffer greatly if we opt to help the stranded Iranian seamen. But Sri Lanka has been in this situation before when the US destroyed an Iranian ship close to our waters. The Sri Lankan government took the decision to provide humanitarian assistance to the crew of another Iranian ship at the same time in early March 2026, and rightly so. At the time, the government took recourse in international obligations operative in humanitarian conditions in general and the Law of the Sea (UNCLOS) in particular.

In many ways, the present situation indicates the obvious contradictions across public international law, UNCLOS, the law of neutrality, and the conflict between unilateral jurisdiction versus state sovereignty. It also exposes the moral and ethical obligation of a country in the midst of the immorality and evil exercised by far more powerful nations and many others who have lost their moral and ethical consciousness.

Most serious international legal scholars and multilateral bodies (including the UN) maintain that unilateral secondary sanctions such as those declared by the US — lacking UN Security Council authorisation — violate international law. Because secondary sanctions threaten nations’ access to the global U.S. financial system, and therefore work better than traditional military enforcement, third states like Sri Lanka face a state of economic coercion. This makes de facto compliance necessary even when de jure international law regards the sanctions as overreach.

Providing ship-to-ship transfers, provisions, or repairs to vessels stationed outside a country’s territorial waters falls under standard maritime commercial freedom. Threatening a state for permitting its private companies or state entities to render essential and life-saving services outside territorial waters interferes with high-seas freedoms (UNCLOS Article 87). This is the situation Sri Lanka currently finds itself in. The problem with U.S. secondary sanctions is that they attempt to dictate how Sri Lanka exercises or refrains from exercising this sovereign prerogative. Our government needs to resist this shameless bullying.

If these vessels run out of drinking water and food as is likely to happen soon, offering the ship crews Permissible Humanitarian Assistance is a matter of offering distress relief. Under Hague XIII and customary law, neutral states, like Sri Lanka in this case, are permitted, and more importantly, morally bound to render essential humanitarian assistance, such as food, medical aid, or emergency repairs necessary to ensure seaworthiness, to vessels in distress. For its own convenience and lack of moral values, the U.S. government’s secondary sanctions typically make little distinction between commercial logistics, fuel supply, and basic humanitarian assistance.

On 4 October 2026, the Minister of Foreign Affairs made clear in public that Sri Lanka will make ‘all our decisions while protecting our sovereignty and identity’ and ‘if there is a need arising from humanitarian considerations, we will make the necessary intervention.’ Theoretically, this is the correct position notwithstanding it is a difficult position for a small country like Sri Lanka to put into practice. But from a moral high ground, it is always possible. I assume this is why the minister referred to the earlier incident involving an Iranian ship when he noted that ‘Sri Lanka is providing the vessel’s 13 crew members with the necessary food, accommodation and security while ensuring that the vessel remains safely maintained’. More importantly, he also noted that ‘Sri Lanka always acts in accordance with international maritime law.’ This is a position we must maintain whatever the pressure.

Threatening secondary sanctions against services rendered to stranded or distressed ships directly clashes with a neutral state’s obligation to protect human life at sea under the SOLAS Convention (Safety of Life at Sea) and SAR Convention (Search and Rescue). As far as I understand, from an international law standpoint, U.S. threats of secondary sanctions over Sri Lankan services to Iranian vessels represent such violations and an extraterritorial assertion of domestic authority that lacks a multilateral mandate (such as a resolution in the almost dysfunctional UN Security Council).

From a foreign policy perspective, we should have already begun negotiations with counties like Malaysia and Indonesia (in whose extended backyards many of these ships transferred their oil to other tankers) and China (to whose refineries much of this oil went and which paid for these cargoes) to ascertain how the lives of these sailors can be saved. After all, the cargoes did not come to us, and its transshipment was not facilitated by us. This is not about the maintenance of these vessels themselves or helping in their reintegration into the so called ‘shadow fleet of Iran.’ Here, our neutrality must be underlined. This is simply about human life. Have we thought of approaching the above countries to ascertain if they would help in finances to feed the Iranian sailors if our country decides to bring them ashore for humanitarian assistance and to build a coalition for such contingencies within applicable international conventions?

While international law grants Sri Lanka the clear sovereign right to manage services in its territory and EEZ, and mandates distress relief under maritime safety conventions, the practical reality of financial enforcement mechanisms forces us to weigh legal rights under UNCLOS and public international law against the immediate economic costs of U.S. financial isolation. This is why our engagements with countries like Malaysia, Indonesia, Russia and China, to mention only four nations, are essential and should have already begun.

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Midweek Review

Faith, mythology, rituals, and Buddhism – A response

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by Prof. N. A. de S. Amaratunga PhD, DSc, DLitt

Prof. Sasanka Perera’s important article dealing with the vital subject of discipline of Buddhist monks published in the Midweek Review of The Island on 23 Sept., 2026 needs a response with regard to its reference to faith, mythology and rituals. He says, “One must concede that it is mythology and rituals that hold any core set of philosophical ideas such as the dhamma together as a religion. It is through these practices that religion as a matter of faith emerges from abstract ideas. This is common to any religion. It is through these practices that Buddhism, Christianity, Hinduism or Islam become religion”. First, it may not be correct to say that it is mythology and rituals that hold together the core set of philosophical concepts of Buddhism. Second, it may not be correct to infer that Buddhism has emerged as a matter of faith through the practices of rituals. Further, it is not through practice of rituals that Buddhism becomes a religion.

First of all, we must determine what constitutes the core philosophy of Buddhism and find out to what extent it depends on mythology. We must also examine the origin of rituals in Buddhism to see whether or not the dhamma could exist without rituals. Then, we must look at the nature of faith and its role in Buddhism.

The core philosophy of Buddhism is empirical in nature, which means it is based on, or derived from, observation, experiment, or sensory experience and it has nothing to do with mythology. The word “Ehipassiko” that prominently appears in Prof. Perera’s article cannot have any relevance in Buddhism if it depends on mythology to be held together. “Ehipassiko” is not applicable to religions based on mythology. The Buddha requested everybody interested to “come and see for yourself” because it could be known by experience. Same could be said about the discourse to the Kalamas, which Prof. Sasanka Perera has quoted. Theistic religions that are based on mythology cannot be examined by such means.

Prince Siddharta, before he attained Nibbana, experienced “Dukha” or suffering and “Anicca” or impermanence in his surroundings and found that such an existence cannot have a permanent self, (“Anatta”). Thus, the three signs of existence “Anicca, Dukha, Anatta” are empirical in origin and they form the core philosophy of Buddhism on which the doctrine is based. The “Four Noble Truths” are developed on this basis, and these also have no mythology whatsoever.

Prince Siddharta realised the fallacy of the Vedic thesis and rejected it entirely when he composed the three signs. Therefore Prof. Perera’s theory that “it is through these practices that religion as a matter of faith emerge from abstract ideas” does not hold where Buddhism is concerned. Buddhism is neither a “matter of faith” nor did it emerge from abstract ideas.

The fourth Noble Truth has no myth basis and is not dependent on blind faith or rituals. It is the path to the final goal in Buddhism; that is freedom from suffering. It is entirely based on morals which is central to Buddhism. Three factors in the Arya Astanghika Marga, deal with morals that prepare the mind for the final stages, “Sati” and “Samadhi”. These three factors which are concerned with right speech, right action and right livelihood, do not involve the practice of rituals. Unlike in theistic religions Buddhism does not require rituals in the practice of morals. None of the other factors in the Arya Astanghika Marga prescribe rituals. Therefore, one wonders, if the path to the final goal does not need rituals, where else could they be required to be of any significance.

“Nowhere else” is the obvious answer. What Buddhists have to do instead, is to live by the five precepts, eight precepts or ten precepts, or practice the Arya Astanghika Marga as far as possible, none of which have rituals. In such practice even if one does not reach the ideal, one would be immensely benefitted including peace of mind and satisfactory existence without too much suffering. This could be attained without the practice of rituals.

The Buddha rejected the practice of rituals in Sámaññaphala Sutta of the Dìgha Nikáya, where he declares all blessing rites and rituals as animal sciences (tiraccháanavijjá). Such was the attitude of the Buddha towards rituals. Ven. Kekirawe Sudassana was abiding by the Buddha’s word when he made the bold and correct statement that rituals were unnecessary in the practice of Buddhism. Ven. Sudassana should not be penalised for attempting to reject rituals.

Early Buddhism there was no mention of rituals. The four major Nikayas, Digha, Majjima, Anguttara and Samyutta comprise Early Buddhism. These were the only Nikayas in the Sutra Pitaka that were assigned to the Bhanaka monks to be preserved by the oral tradition, at the First Buddhist Council held three months after the Parinirvana of the Buddha and therefore considered to be closest to Buddha’s preaching. At the Third Buddhist Council held under the auspices of King Asoka, Ven. Moggalliputtatissa cleansed the Dhamma of all impurities that had crept into it and this was the Dhamma that was brought to Sri Lanka in the 3rd Century BCE. This Dhamma did not advocate the practice of rituals to the Sri Lankan community and there was no rituals in the country until the 5th Century CE.

It was Ven. Buddhagosa in the 5th Century CE, who probably had come under the influence of Mahayana when he was in South India on his way to Sri Lanka, who in his translations of the commentaries introduced dividend carrying rituals.

Sri Lankan monks came to accept the practice of rituals as a necessary method to attain Nibbana. Eminent Buddhist scholar Prof M. M. J. Marasinghe says: “The hard work of Buddhagosa and the Mahavihara fraternity culminated in the formulation of a new ritual structure with attractive advantages to keep both the lay followers and the members of the Sanga happy and content As a result, when we pass from the canonical Pali texts to the Pali commentaries we come into a totally new teaching different from the original” (Beyond Ritualistic Realm, 2018).

In Buddhism, faith is quite different. There has to be faith in the path that will finally lead to the goal, for otherwise there may not be total commitment. However, love and devotion to the Buddha is not required. This is understandable as the final goal, Nibbana, is development of wisdom (“paññâ”) for which there is no need for the personal involvement of the Buddha.

Though not conclusively proved, there seems to be new evidence in neuroscience that points to the possibility of consciousness emitting out of the body. Further, recent advances in theoretical physics show that matter could be converted to energy and energy to matter. If stream of consciousness is a stream of energy, it being integrated into matter is not difficult to accept. Man is nothing but a conglomerate of energy. In such a system, continuity of consciousness in a samsaric cycle may not be implausible.

However, Ven. Sudassana may be correct in saying that belief in karma and rebirth may not be essential for the practice of Buddhist morals. One may practice five, eight or ten precepts or even Arya Astanghika Marga without feeling compelled to believe in karma and rebirth.

Without saying there is absolutely no presence of faith, mythology or rituals in Buddhism, which are in fact later intrusions, it could unequivocally be stated that neither mythology, faith nor rituals played a role in the origin of early Buddhism and nor are they needed to hold together the core philosophy of Buddhism as a religion. They are not necessary to practice Buddhism and be benefitted by it.

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