Features
Problems that need addressing to right an economy gone horribly wrong
by Gnana Moonesinghe
The book “Regional Investment Pioneers in South Asia” by Sanjay Kathuria, Ravindran Yatawara and Xiao’ou zhu published by South Asia Development Forum appears to me to be an appropriate touch point in planning corrections to Sri Lanka’s economic development strategy.
The chapter on the “State of Play in South Asia” is particularly relevant to us as it refers to what needs to be considered to attract foreign investment. This chapter deals with subjects such as intra-regional investment and knowledge connectivity and the reduction in tariffs to encourage trade and investments.
Knowledge transfers are particularly useful to us as it enables better decision making when investing. It informs the reader on production processes, managerial and organizational practices, logistics and exports. Information regarding these features properly implemented will be more than sufficient to direct the Sri Lankan economy on the path to development.Profile of Sri Lanka’s current economic problemA drop in foreign currency reserves has been a significant indicator of the economic problem faced by Sri Lanka. our foreign currency reserves dropped to US$ 1.6 bn in Nov. 2021 triggering fears of possible debt default. To date SL has not defaulted in debt repayment.
This situation is only partly due to the pandemic which caused a sharp drop in tourism earnings and the decline in remittances from the Middle East workers. The pandemic prevented the entry of tourists into Sri Lanka while remittances from those employed in the Middle East that were earlier converted through the banks were diverted to the black market for a better exchange rate. Thus an alternative market had been revived bypassing the banking system.
The above factors made it difficult for the government to maintain the nation’s economic equilibrium. Another reason among many others is overloading the public service with passengers not contributing to economic productivity but paid from public coffers.
The heavy debt service obligations due to short term high cost borrowings and unproductive investments of the recent past like the Hambantota stadium are some of the projects that added to the country’s debt service obligations. Additionally the Central Bank’s insistence in keeping the US $ pegged to an artificial rate has diverted funds from the banks to the unofficial market as illustrated by the case of foreign worker remittances.
The import controls imposed to curb the outflow of foreign exchange have also impacted on export production as well as having a damaging effect on the domestic markets. When imposing import controls, care must be taken to see that it is is better deviced to curtail non essential imports without hurting intermediate and capital goods imports essential specially for the export manufacturing sector.
That would be attractive to the foreign investors who will hopefully enter export manufacturing industries and help develop the economy.
Special emphasis should be placed on the need to review the working of our democratic practices. Their decline can frighten away investor from coming here. Politicians have in recent years held sway over all aspects of the management of the country and the credibility of ‘one country, one law’ for all has eroded. It is frightening that the belief that some are above the law is gaining credence and this has implications for foreign investment.
The Central Bank resorted to uninhibited money creation causing high inflation which resulted in untold misery for the people. This has also contributed to the malfunctioning of society which included the unavailability of jobs as well as the loss of existing jobs. Unemployment in turn has led to suffering without food, medicines, adequate schooling etc. This in the midst of excessive money in the hands of the corrupt few who were able to resort to corrupt practices due to a lack of transparency in the conduct of government business. All this is a deterrent to investment.
In addition to these factors the practice of pluralism as a democratic concept has receded in importance. “Sinhala only” in effective usage since 1956 introduced a division in society where the Sinhala majority considering themselves superior to the rest of the population. Eventually this resulted in the build up of animosities among the different communities that eventually led to the 30-year war for the conduct of which resources and energy that would have otherwise been invested in development was utilized. This further constricted the economy.
It is clear that the entire economy must be restructured to overcome te negatives encountered in the recent past. More attention must be paid to agriculture to make the sector sufficiently attractive for investments in export agriculture. Long term interests should be given precedence over ad hoc measures such as the ban on fertilizer imports at great cost to domestic agriculture.
The rubber industry need to be strengthened with greater value addition utilizing domestic raw material. The development of the dairy sector must be accelerated as milk production and processing have not grown as fast as they should have. This is vital for the import substitution effort as well as the nutritional needs of the people.
Today the value of the rupee against the dollar has dropped to a dangerously low level and the rupee was recently devalued to Rs. 230 to the USD after a futile effort of artificially protecting it against market forces. The govt has imposed power cuts, and the people are facing gas, fuel and food shortages. Due to the forex crisis there is inability to even unload essentials already in port.
Threat of trade union protests are on the rise; so is the threat of other civil commotions that will create social dislocation in the country. Foreign exchange reserves are down to dangerously low levels and this not only endangers essential imports but also has implications for the development effort. The economic development of the country has not been pursued in accordance with a well thought plan in recent decades. Several macro economic weaknesses have been compounded by the adverse effects of COVID -19. Restructuring the economy has become urgent to set right the many things that have already gone wrong with no effective corrective measures in sight.
Features
The challenge of keeping value-based politics alive
The current outbreak of anti-immigrant protests in Durban, South Africa is bound to have taken many a subscriber to value-based politics or political idealism quite by surprise. After all, this is evidence that despite the historic accomplishments of nation-builders of the stature of the late President Nelson Mandela it cannot be taken for granted that identity politics, including racism in its worst forms, is no more in South Africa.
At the time of this writing details are scarce on the substantive root causes of the protests but it could very well be that economic grievances, particularly on the part of the majority community in South Africa, are contributing considerably to the disaffection. Shrinking employment and material prospects are likely to figure majorly among the factors igniting the unrest.
Fortunately, the local authorities in Durban are losing no time in calling for peaceful co-existence among the relevant communities and are pointing to the vital importance of stepping-up national integration processes. Apparently, immigrants in sizable numbers from neighbouring countries are present in Durban. However, international TV footage of the protests quoted some local authorities as saying that the majority of the immigrants in some centres that housed them were not illegal migrants and had the documents that entitle them to be in Durban.
In the Durban protests the world has fresh proof of the socially divisive consequences of the gathering globe-wide economic disaffection, touched off particularly by the continuing crisis in West Asia. Going ahead, the world would need to brace for increasing identity-based unrest of the kind it is just witnessing in South Africa.
Considering that the material lot of ordinary people everywhere could only aggravate progressively, with the US and Iran showing no signs of negotiating an end to their confrontation any time soon, it will be left to the more democratic and progressive sections of the world community to initiate positive measures collectively to bring a measure of relief to the discontented.
The swiftness with which such relief will be provided would depend crucially on the importance those sections taking up these undertakings attach to value-based politics as opposed to Realpolitik of power politics.
Going by these yardsticks, Italy could be considered to be moving in the right direction. Recently Italy came to the fore in initiating the collective named, ‘Rome Coalition for Food Security and Access to Fertilizer’, which has as one of its aims the swift provision of fertilizer to economically weak African countries.
In a recent statement Italian Minister of Foreign Affairs and International Cooperation, Antonio Tajani, said that a principal aim of the project was to ensure that the farmers of Africa gained easy access to fertilizer, considering that food security is a growing concern among some of Africa’s economically vulnerable countries.
The statement went on to mention that some 30 countries hailing from the Mediterranean region, the Middle East, the Balkans as well as the FAO had been invited to join the coalition. The venture is far-seeing in that food security is main among the reasons for social discontent which in turn could degenerate into endemic political turmoil and bloodshed. Separatist violence and geographical fragmentation of countries wouldn’t be too far behind these developments, as Africa itself has often proved.
It is hoped that more G7 countries would take the cue from Italy and do what they could to ease the hardships of economically distressed countries, particularly of the global South. In these efforts they would need to break rank with the US, which is today brutally indifferent to the consequences of its policy of making ‘America First’, come what may.
Going by current developments, the Trump administration seems to be blithely oblivious to the wider, deleterious effects of its policy course in West Asia. Besides rendering Iran militarily and otherwise impotent nothing else seems to matter to Washington, as regards West Asia. This is policy short-sightedness of an extreme kind. After all, right now West Asia could be said to be sitting on the proverbial powder keg.
On the other hand, Iran is not giving the world the impression that it is doing anything constructive to get out of the policy straitjacket that it wove for itself decades ago. Rather than enter into a policy of ‘live and let live’ in relation to Israel in particular and initiate a process of reconciliation with the latter, it has chosen to operate within policy parameters that continue to damn Israel. This has put Israel always on the ‘defensive’ so to speak and prevented the opening up of space for meaningful dialogue.
That said, Israel is obliged to explore the possibilities of entering into a negotiatory process with the Arab-Islamic world that could lead to a de-escalation of tensions and bloodshed. It cannot continue to look at its neighbours through lenses that distort them as archetypal enemies who should be ‘wiped off completely from the face of the earth.’
In other words, the need is urgent for Realpolitik to give way to value-based politicks. Italy is beginning to prove that the latter approach could be pursued with some success. May be the EU and the UK could throw their weight behind these initiatives as well and establish that international politics could be refashioned on the basis of humane, civilized norms. The UN would need to be fully supportive of these moves and prove an organizational nucleus of the operations that follow.
In fact the time is ripe for people of conscience to collectively stand up on the side of peace and say ‘No’ to war and violence. Organizations such as the ICRC, the WHO and Medicines Sans Frontiers have already taken up this call. Referring to the widespread destruction of health facilities and their dehumanizing results these organizations have said, among other things, that ‘This is not a failure of the law. It is a failure of political will.’
True, ‘failure of political will’ among those powers that matter accounts for the runaway, uncontrollable nature of war and destruction in contemporary times, but more fundamentally it is a failure of the human conscience. It could very well be that the phenomenal levels to which violence and war have been unleashed today have had the effect of deadening consciences. This is a matter for urgent study and wide discussion.
Features
Vesak celebrations … with Cuteefly
I would describe Indunil Kaushalya Dissanayaka as innovative and creative, and she operates under the name of Cuteefly.
Indunil always comes up with something novel to celebrate special occasions, and she does it with candles … and that’s her profession.
She was in the spotlight when she created a happening scene, with candles, for Christmas, Sinhala and Tamil New Year, and Valentine’s Day.
As lanterns light up Sri Lanka for Vesak, the Colombo-based candle maker is quietly turning wax and wick into little pieces of the festival.

Candles reflecting Vesak themes
Her candles reflect Vesak themes – light, peace, remembrance, giving, etc., to enable you to fill your Vesak celebration with devotion and beauty.
Among her Vesak creations is a lotus-shaped soy candle, scented with sandalwood, lavender, etc., meant to burn during this Vesak Poya Day.

Indunil Kaushalya Dissanayaka: Customers
praise her for her creativity
These handcrafted Vesak candles are perfect for offering at the temple, she says.
What makes her creations so novel is that they come in different shapes, scents, themes, and all are handmade.
What’s more, her customers have heaped praise on her for her creativity.
According to Indunil, her creations are perfect as a thoughtful gift … to bring beauty, unity, and light into every moment.
Says Indunil: “Our beautifully handcrafted Unity candles are designed with premium detail and love, making them perfect for celebrations, gifts, and meaningful occasions.”
Cuteefly, says Indunil, is available online.
Readers could contact Indunil on 0778506066 for more details.
He Facebook Page is: Cuteefly.

Handmade with love
Features
Dark Spots …
Yes, dark spots do crop up on the skin, especially with sun exposure and, of course, as the skin ages.
However, these tips should be of immense benefit to those who are faced with dark spots.
* Lemon and Honey Glow Mask:
You will need 01 teaspoon lemon juice and 01 teaspoon honey.
Mix the lemon juice and honey well and then apply this mixture, only on the dark spots.
Leave for 10–15 minutes and then rinse with cool water.
Benefits:
Lemon helps brighten pigmentation.
Honey moisturises and heals skin.
Gives a natural glow.
* Aloe Vera Gel Treatment:
All you need is fresh aloe vera gel.
Apply the gel apply on dark spots, before going to bed.
Leave overnight and wash in the morning.
Benefits:
Reduces acne marks and pigmentation.
Soothes irritated skin.
Helps skin repair naturally.
* Turmeric and Yoghurt Paste:
You will need 01 teaspoon yoghurt and a pinch of turmeric
Mix the yoghurt and turmeric into a smooth paste and apply on affected areas.
Leave for 15 minutes and then wash gently with lukewarm water.
Benefits:
Turmeric brightens skin naturally.
Yoghurt removes dead skin cells.
Helps fade dark spots gradually.
Use these packs 02-03 times a week as results are generally seen over time.
You can also try this out: Mix a ripe papaya into a smooth paste and apply to the face, or directly on to the dark spots. Leave for 15-20 minutes and then wash with lukewarm water.
-
Business7 days agoHistoric launch of CCWE Fashion Week & International Summit 2026
-
News5 days agoAll-New GRAVITE launches at LKR 6.99 Mn
-
Features5 days agoThe NPP’s pivot to the past
-
News4 days agoPolice probe underway to ascertain links between criminals deported from UAE and local politicians
-
News3 days agoEaster Sunday carnage: Court told Maulana’s statement cannot be accepted without cross-examination
-
Opinion7 days agoThe need to reform Buddhist ecclesiastical order
-
Features5 days agoEnd of Peacekeeping
-
Opinion3 days agoUndermining the democratic political framework
