Features
Purchasing Power Parity
by Kumar David
Why is the Russian economy not crumbling despite sanctions? In an analysis carried in Quora.com French economist Jacques Sapir wrote: ‘The reason for this miscalculation is exchange rates. If you simply convert Russia’s GDP from rubbles to dollars, you see it as an economy only as large as Spain’s. However, such comparisons are spurious without adjusting for Purchasing Power Parity (PPP) which accounts for productivity and living standards, and thus per capita welfare and resource use. In fact, PPP is the preferred metric of most international institutions from the IMF to the OECD.
Note by this columnist. [A very good plate of rice and curry for a worker costs Rs 600 in Sri Lanka, that is about US$1.62 at the official exchange rate of Rs 370 to the US$. But you cannot get an equivalent meal at that price in the US; it will cost at least $5. But if you take the exchange rate as Rs 120 to the US$ you get $5 for your Rs 600. Therefore, the PPP exchange rate is Rs 120 to one US dollar, not Rs 370 to a dollar].
When you measure Russia’s, GDP based on purchasing power parity it is like Germany’s in size; Russia about $4.4 trillion versus Germany $4.6 trillion. From a small sickly-looking economy to the largest European and one of the largest in the world, this is not a comparison that can be ignored. Sapir also encourages us to ask: “What is the share of production and industry compared to services?” In his view, today’s services sector is grossly overvalued compared to industries and commodities such as oil, gas, copper and agricultural commodities. If we deduct the role of services as a proportion of the global economy, Sapir says, “Russia’s economy is much bigger than Germany’s, maybe five or six percent of the world economy”, more like Japan’s.
This makes intuitive sense. When times are tough we know it’s more valuable to provide people with the things they need, like food and energy, than intangible things like entertainment or financial services. When a company like Netflix trades at a price-to-earnings ratio three times higher than Nestle, the world’s largest food company, that is a reflection of frothy markets not reality. Netflix is a great service company, but when 800 million people in the world are undernourished Nestle offers more value. The current Ukrainian crisis helps clarify why what were regard as “archaic” parts of the modern economy, such as industry and commodities whose prices have soared this year are more important than overvalued services and “technology” companies whose values have declined recently.
The scope an economy is further distorted by ignoring global trade flows, of which Mr Sapir estimates Russia “may account for 15 per cent”. For example, while Russia is not the world’s largest oil producer, it is the largest oil exporter, surpassing even Saudi Arabia. The same is true of many other basic products, such as wheat, the world’s most important food crop, of which Russia controls about 19.5 per cent of global exports, as well as nickel (20.4 per cent), semi-finished iron (18.8 per cent), platinum (16.6 per cent) and frozen fish (11.2 per cent). Such an important position in the production of so many basic commodities means that Russia, along with several other similarly placed countries are linchpins in the global production chain. Maximum sanctions” on countries like Iran or Venezuela trying to cut Russia of world markets are phoney and likely bring about rearrangement of the global economy to the disadvantage of the West.
Much of this has been proved by the war in Ukraine. Controlling oil, gas, food and other commodities, the war of sanctions waged by the United States and its Allies in Europe and Asia has become a headache for the West. Corroborating this view JPMorgan says Russia’s economy is stronger than expected and will only suffer a shallow recession despite sanctions. The Wall Street bank said business sentiment surveys from the country “are signalling a not very deep recession in Russia and therefore imply an ‘upside risk’ to our growth forecasts.
The Russian economy has so far fared better than expected under tough sanctions and is likely to suffer only a shallow but drawn-out recession according to JPMorgan. The bank told clients last week that the country’s economy is in better shape than expected, judging from business surveys and indicators such as electricity consumption and financial flows. “The data at hand therefore does not point to an abrupt plunge in activity at least for now. GDP in the second quarter would likely be better than predicted in March”.
Purchasing power parity (PPP) is the rate of currency conversion that equalises the purchasing power of different countries by eliminating differences in price levels of essential goods. According to this concept two currencies are in equilibrium—known as the currencies being at par—when a basket of goods is priced the same in both countries taking into account the said PPP exchange rates. The importance of this point is emphasised in the Table below and has significant implications for Sri Lanka.
GDP by Purchasing Power Parity vs Nominal GDP

GDP by PPP which is based on a basket of goods is a fairer comparison between countries. In the table below Tr stands for trillions of US$.
Source: International Monetary Fund
The difference is very big in the case of countries outside the global capitalist market system. In the case of India GDP in PPP terms is an astounding 3.87 times (10.5/2.71) larger than the conventional GDP. This is a bit of a paradox because India is visibly very poor so where is all the wealth hiding? The answer lies in the huge disparity of wealth and income between the filthy rich and the dirt poor. This disparity in India is much larger than the disparity between the top 10% (or 1%) and the average person in the US.
I am not smart enough nor adequately statistically well informed to make anything but broad generalisations about Sri Lanka. My view is that; (a) in terms of living standards the true exchange rate is about Rs 120 (not Rs 370) to a US$, (b) the importance of domestic finance-capital (investment and mutual funds etc.) should be heavily discounted in policy decisions, (c) the hard-core productive sectors must be given far more attention and (d) other productive sectors like SMEs and the informal economy must be supported far more than now.
These economic factors will play out through the political dimension. Ranil Wickremesinghe (RW) has made himself a pariah in the eyes of every strand of democratic and liberal opinion, the diplomatic community in Colombo and international human and democratic rights movements. The Catholic Church is known for conservatism, when its Cardinal sees the RW and the previous government as cussed curs what more is there for anyone of us to say?
Concurrently Batalanda Ranil, his other avatar, has unleashed his military on protestors, journalists (local and foreign), reappointed alleged human rights violators in the Defence Ministry and deployed unlawful goon squads. Reactionaries in the State machine have trapped him into a spiral of violence. Ranil blundered when he played his Batalanda card for a second time; his baton wielding goons spared neither protestor nor public. Meanwhile the Mahinda clan which cut a path to the top for RW, basks in their billion-rupee (or $?) sunshine. Ranil must be criticised mercilessly till he is compelled to reverse course on democratic rights. He may then be able to chug along as a compromise president.

We the people have to exercise the utmost vigilance till Ranil is house-tamed and he has capitulated on the danger he poses to a free society. An early election will clear the decks of a lot of crap and let the people know where every political actor and party stands. After that the country can decide how it will adjust to inevitable belt-tightening (we have consumed for 70 years without producing the equivalent) and decide how to deal with our internal fiscal deficit and our foreign account indebtedness. The two are intimately interconnected; we do not have two problems but one tightly interconnected problem.
And there is the related matter of how much to relax exchange controls in order to attract FDI and capital flows. This is in the face of the 10-year Treasury Bond yield exceeding 25% at this moment and interest rates having to be correspondingly high. The IMF has demanded Central Bank independence, it has also demanded future debt sustainability and wants China on board for a haircut. These are tough issues to be addressed in this column in their own right at another time.
Ranil has decided to fly a kite about turning Sri Lanka into a Social (sic!) – he seems unaware that the accepted usage is ‘Socialist’ – Market Economy. What on earth is a “Social Economy” anyway? Does he appreciate what he is pontificating? I have been long engaged with the topic and published a paper in the Hector Abhayavardhana 80th birthday celebration volume issued in year 2000. After 22 years it still remains relevant and can be purchased from Marshal Fernando’s Ecumenical Institute on Havelock Road.
Features
Sustaining good governance requires good systems
A prominent feature of the first year of the NPP government is that it has not engaged in the institutional reforms which was expected of it. This observation comes in the context of the extraordinary mandate with which the government was elected and the high expectations that accompanied its rise to power. When in opposition and in its election manifesto, the JVP and NPP took a prominent role in advocating good governance systems for the country. They insisted on constitutional reform that included the abolition of the executive presidency and the concentration of power it epitomises, the strengthening of independent institutions that overlook key state institutions such as the judiciary, public service and police, and the reform or repeal of repressive laws such as the PTA and the Online Safety Act.
The transformation of a political party that averaged between three to five percent of the popular vote into one that currently forms the government with a two thirds majority in parliament is a testament to the faith that the general population placed in the JVP/ NPP combine. This faith was the outcome of more than three decades of disciplined conduct in the aftermath of the bitter experience of the 1988 to 1990 period of JVP insurrection. The manner in which the handful of JVP parliamentarians engaged in debate with well researched critiques of government policy and actions, and their service in times of disaster such as the tsunami of 2004 won them the trust of the people. This faith was bolstered by the Aragalaya movement which galvanized the citizens against the ruling elites of the past.
In this context, the long delay to repeal the Prevention of Terrorism Act which has earned notoriety for its abuse especially against ethnic and religious minorities, has been a disappointment to those who value human rights. So has been the delay in appointing an Auditor General, so important in ensuring accountability for the money expended by the state. The PTA has a long history of being used without restraint against those deemed to be anti-state which, ironically enough, included the JVP in the period 1988 to 1990. The draft Protection of the State from Terrorism Act (PSTA), published in December 2025, is the latest attempt to repeal and replace the PTA. Unfortunately, the PSTA largely replicates the structure, logic and dangers of previous failed counter terrorism bills, including the Counter Terrorism Act of 2018 and the Anti Terrorism Act proposed in 2023.
Misguided Assumption
Despite its stated commitment to rule of law and fundamental rights, the draft PTSA reproduces many of the core defects of the PTA. In a preliminary statement, the Centre for Policy Alternatives has observed among other things that “if there is a Detention Order made against the person, then in combination, the period of remand and detention can extend up to two years. This means that a person can languish in detention for up to two years without being charged with a crime. Such a long period again raises questions of the power of the State to target individuals, exacerbated by Sri Lanka’s history of long periods of remand and detention, which has contributed to abuse and violence.” Human Rights lawyer Ermiza Tegal has warned against the broad definition of terrorism under the proposed law: “The definition empowers state officials to term acts of dissent and civil disobedience as ‘terrorism’ and will lawfully permit disproportionate and excessive responses.” The legitimate and peaceful protests against abuse of power by the authorities cannot be classified as acts of terror.
The willingness to retain such powers reflects the surmise that the government feels that keeping in place the structures that come from the past is to their benefit, as they can utilise those powers in a crisis. Due to the strict discipline that exists within the JVP/NPP at this time there may be an assumption that those the party appoints will not abuse their trust. However, the country’s experience with draconian laws designed for exceptional circumstances demonstrates that they tend to become tools of routine governance. On the plus side, the government has given two months for public comment which will become meaningful if the inputs from civil society actors are taken into consideration.
Worldwide experience has repeatedly demonstrated that integrity at the level of individual leaders, while necessary, is not sufficient to guarantee good governance over time. This is where the absence of institutional reform becomes significant. The aftermath of Cyclone Ditwah in particular has necessitated massive procurements of emergency relief which have to be disbursed at maximum speed. There are also significant amounts of foreign aid flowing into the country to help it deal with the relief and recovery phase. There are protocols in place that need to be followed and monitored so that a fiasco like the disappearance of tsunami aid in 2004 does not recur. To the government’s credit there are no such allegations at the present time. But precautions need to be in place, and those precautions depend less on trust in individuals than on the strength and independence of oversight institutions.
Inappropriate Appointments
It is in this context that the government’s efforts to appoint its own preferred nominees to the Auditor General’s Department has also come as a disappointment to civil society groups. The unsuitability of the latest presidential nominee has given rise to the surmise that this nomination was a time buying exercise to make an acting appointment. For the fourth time, the Constitutional Council refused to accept the president’s nominee. The term of the three independent civil society members of the Constitutional Council ends in January which would give the government the opportunity to appoint three new members of its choice and get its way in the future.
The failure to appoint a permanent Auditor General has created an institutional vacuum at a critical moment. The Auditor General acts as a watchdog, ensuring effective service delivery promoting integrity in public administration and providing an independent review of the performance and accountability. Transparency International has observed “The sequence of events following the retirement of the previous Auditor General points to a broader political inertia and a governance failure. Despite the clear constitutional importance of the role, the appointment process has remained protracted and opaque, raising serious questions about political will and commitment to accountability.”
It would appear that the government leadership takes the position they have been given the mandate to govern the country which requires implementation by those they have confidence in. This may explain their approach to the appointment (or non-appointment) at this time of the Auditor General. Yet this approach carries risks. Institutions are designed to function beyond the lifespan of any one government and to protect the public interest even when those in power are tempted to act otherwise. The challenge and opportunity for the NPP government is to safeguard independent institutions and enact just laws, so that the promise of system change endures beyond personalities and political cycles.
by Jehan Perera
Features
General education reforms: What about language and ethnicity?
A new batch arrived at our Faculty again. Students representing almost all districts of the country remind me once again of the wonderful opportunity we have for promoting social and ethnic cohesion at our universities. Sadly, however, many students do not interact with each other during the first few semesters, not only because they do not speak each other’s language(s), but also because of the fear and distrust that still prevails among communities in our society.
General education reform presents an opportunity to explore ways to promote social and ethnic cohesion. A school curriculum could foster shared values, empathy, and critical thinking, through social studies and civics education, implement inclusive language policies, and raise critical awareness about our collective histories. Yet, the government’s new policy document, Transforming General Education in Sri Lanka 2025, leaves us little to look forward to in this regard.
The policy document points to several “salient” features within it, including: 1) a school credit system to quantify learning; 2) module-based formative and summative assessments to replace end-of-term tests; 3) skills assessment in Grade 9 consisting of a ‘literacy and numeracy test’ and a ‘career interest test’; 4) a comprehensive GPA-based reporting system spanning the various phases of education; 5) blended learning that combines online with classroom teaching; 6) learning units to guide students to select their preferred career pathways; 7) technology modules; 8) innovation labs; and 9) Early Childhood Education (ECE). Notably, social and ethnic cohesion does not appear in this list. Here, I explore how the proposed curriculum reforms align (or do not align) with the NPP’s pledge to inculcate “[s]afety, mutual understanding, trust and rights of all ethnicities and religious groups” (p.127), in their 2024 Election Manifesto.
Language/ethnicity in the present curriculum
The civil war ended over 15 years ago, but our general education system has done little to bring ethnic communities together. In fact, most students still cannot speak in the “second national language” (SNL) and textbooks continue to reinforce negative stereotyping of ethnic minorities, while leaving out crucial elements of our post-independence history.
Although SNL has been a compulsory subject since the 1990s, the hours dedicated to SNL are few, curricula poorly developed, and trained teachers few (Perera, 2025). Perhaps due to unconscious bias and for ideological reasons, SNL is not valued by parents and school communities more broadly. Most students, who enter our Faculty, only have basic reading/writing skills in SNL, apart from the few Muslim and Tamil students who schooled outside the North and the East; they pick up SNL by virtue of their environment, not the school curriculum.
Regardless of ethnic background, most undergraduates seem to be ignorant about crucial aspects of our country’s history of ethnic conflict. The Grade 11 history textbook, which contains the only chapter on the post-independence period, does not mention the civil war or the events that led up to it. While the textbook valourises ‘Sinhala Only’ as an anti-colonial policy (p.11), the material covering the period thereafter fails to mention the anti-Tamil riots, rise of rebel groups, escalation of civil war, and JVP insurrections. The words “Tamil” and “Muslim” appear most frequently in the chapter, ‘National Renaissance,’ which cursorily mentions “Sinhalese-Muslim riots” vis-à-vis the Temperance Movement (p.57). The disenfranchisement of the Malaiyaha Tamils and their history are completely left out.
Given the horrifying experiences of war and exclusion experienced by many of our peoples since independence, and because most students still learn in mono-ethnic schools having little interaction with the ‘Other’, it is not surprising that our undergraduates find it difficult to mix across language and ethnic communities. This environment also creates fertile ground for polarizing discourses that further divide and segregate students once they enter university.
More of the same?
How does Transforming General Education seek to address these problems? The introduction begins on a positive note: “The proposed reforms will create citizens with a critical consciousness who will respect and appreciate the diversity they see around them, along the lines of ethnicity, religion, gender, disability, and other areas of difference” (p.1). Although National Education Goal no. 8 somewhat problematically aims to “Develop a patriotic Sri Lankan citizen fostering national cohesion, national integrity, and national unity while respecting cultural diversity (p. 2), the curriculum reforms aim to embed values of “equity, inclusivity, and social justice” (p. 9) through education. Such buzzwords appear through the introduction, but are not reflected in the reforms.
Learning SNL is promoted under Language and Literacy (Learning Area no. 1) as “a critical means of reconciliation and co-existence”, but the number of hours assigned to SNL are minimal. For instance, at primary level (Grades 1 to 5), only 0.3 to 1 hour is allocated to SNL per week. Meanwhile, at junior secondary level (Grades 6 to 9), out of 35 credits (30 credits across 15 essential subjects that include SNL, history and civics; 3 credits of further learning modules; and 2 credits of transversal skills modules (p. 13, pp.18-19), SNL receives 1 credit (10 hours) per term. Like other essential subjects, SNL is to be assessed through formative and summative assessments within modules. As details of the Grade 9 skills assessment are not provided in the document, it is unclear whether SNL assessments will be included in the ‘Literacy and numeracy test’. At senior secondary level – phase 1 (Grades 10-11 – O/L equivalent), SNL is listed as an elective.
Refreshingly, the policy document does acknowledge the detrimental effects of funding cuts in the humanities and social sciences, and highlights their importance for creating knowledge that could help to “eradicate socioeconomic divisions and inequalities” (p.5-6). It goes on to point to the salience of the Humanities and Social Sciences Education under Learning Area no. 6 (p.12):
“Humanities and Social Sciences education is vital for students to develop as well as critique various forms of identities so that they have an awareness of their role in their immediate communities and nation. Such awareness will allow them to contribute towards the strengthening of democracy and intercommunal dialogue, which is necessary for peace and reconciliation. Furthermore, a strong grounding in the Humanities and Social Sciences will lead to equity and social justice concerning caste, disability, gender, and other features of social stratification.”
Sadly, the seemingly progressive philosophy guiding has not moulded the new curriculum. Subjects that could potentially address social/ethnic cohesion, such as environmental studies, history and civics, are not listed as learning areas at the primary level. History is allocated 20 hours (2 credits) across four years at junior secondary level (Grades 6 to 9), while only 10 hours (1 credit) are allocated to civics. Meanwhile, at the O/L, students will learn 5 compulsory subjects (Mother Tongue, English, Mathematics, Science, and Religion and Value Education), and 2 electives—SNL, history and civics are bunched together with the likes of entrepreneurship here. Unlike the compulsory subjects, which are allocated 140 hours (14 credits or 70 hours each) across two years, those who opt for history or civics as electives would only have 20 hours (2 credits) of learning in each. A further 14 credits per term are for further learning modules, which will allow students to explore their interests before committing to a A/L stream or career path.
With the distribution of credits across a large number of subjects, and the few credits available for SNL, history and civics, social/ethnic cohesion will likely remain on the back burner. It appears to be neglected at primary level, is dealt sparingly at junior secondary level, and relegated to electives in senior years. This means that students will be able to progress through their entire school years, like we did, with very basic competencies in SNL and little understanding of history.
Going forward
Whether the students who experience this curriculum will be able to “resist and respond to hegemonic, divisive forces that pose a threat to social harmony and multicultural coexistence” (p.9) as anticipated in the policy, is questionable. Education policymakers and others must call for more attention to social and ethnic cohesion in the curriculum. However, changes to the curriculum would only be meaningful if accompanied by constitutional reform, abolition of policies, such as the Prevention of Terrorism Act (and its proxies), and other political changes.
For now, our school system remains divided by ethnicity and religion. Research from conflict-ridden societies suggests that lack of intercultural exposure in mono-ethnic schools leads to ignorance, prejudice, and polarized positions on politics and national identity. While such problems must be addressed in broader education reform efforts that also safeguard minority identities, the new curriculum revision presents an opportune moment to move this agenda forward.
(Ramya Kumar is attached to the Department of Community and Family Medicine, Faculty of Medicine, University of Jaffna).
Kuppi is a politics and pedagogy happening on the margins of the lecture hall that parodies, subverts, and simultaneously reaffirms social hierarchies.
by Ramya Kumar
Features
Top 10 Most Popular Festive Songs
Certain songs become ever-present every December, and with Christmas just two days away, I thought of highlighting the Top 10 Most Popular Festive Songs.
The famous festive songs usually feature timeless classics like ‘White Christmas,’ ‘Silent Night,’ and ‘Jingle Bells,’ alongside modern staples like Mariah Carey’s ‘All I Want for Christmas Is You,’ Wham’s ‘Last Christmas,’ and Brenda Lee’s ‘Rockin’ Around the Christmas Tree.’
The following renowned Christmas songs are celebrated for their lasting impact and festive spirit:
* ‘White Christmas’ — Bing Crosby
The most famous holiday song ever recorded, with estimated worldwide sales exceeding 50 million copies. It remains the best-selling single of all time.
* ‘All I Want for Christmas Is You’ — Mariah Carey
A modern anthem that dominates global charts every December. As of late 2025, it holds an 18x Platinum certification in the US and is often ranked as the No. 1 popular holiday track.

Mariah Carey: ‘All I Want for Christmas Is You’
* ‘Silent Night’ — Traditional
Widely considered the quintessential Christmas carol, it is valued for its peaceful melody and has been recorded by hundreds of artistes, most famously by Bing Crosby.
* ‘Jingle Bells’ — Traditional
One of the most universally recognised and widely sung songs globally, making it a staple for children and festive gatherings.
* ‘Rockin’ Around the Christmas Tree’ — Brenda Lee
Recorded when Lee was just 13, this rock ‘n’ roll favourite has seen a massive resurgence in the 2020s, often rivaling Mariah Carey for the top spot on the Billboard Hot 100.
* ‘Last Christmas’ — Wham!
A bittersweet ’80s pop classic that has spent decades in the top 10 during the holiday season. It recently achieved 7x Platinum status in the UK.
* ‘Jingle Bell Rock’ — Bobby Helms
A festive rockabilly standard released in 1957 that remains a staple of holiday radio and playlists.
* ‘The Christmas Song (Chestnuts Roasting on an Open Fire)’— Nat King Cole
Known for its smooth, warm vocals, this track is frequently cited as the ultimate Christmas jazz standard.

Wham! ‘Last Christmas’
* ‘It’s the Most Wonderful Time of the Year’ — Andy Williams
Released in 1963, this high-energy big band track is famous for capturing the “hectic merriment” of the season.
* ‘Rudolph the Red-Nosed Reindeer’ — Gene Autry
A beloved narrative song that has sold approximately 25 million copies worldwide, cementing the character’s place in Christmas folklore.
Other perennial favourites often in the mix:
* ‘Feliz Navidad’ – José Feliciano
* ‘A Holly Jolly Christmas’ – Burl Ives
* ‘Let It Snow! Let It Snow! Let It Snow!’ – Frank Sinatra
Let me also add that this Thursday’s ‘SceneAround’ feature (25th December) will be a Christmas edition, highlighting special Christmas and New Year messages put together by well-known personalities for readers of The Island.
-
Midweek Review6 days agoHow massive Akuregoda defence complex was built with proceeds from sale of Galle Face land to Shangri-La
-
News5 days agoPope fires broadside: ‘The Holy See won’t be a silent bystander to the grave disparities, injustices, and fundamental human rights violations’
-
News5 days agoPakistan hands over 200 tonnes of humanitarian aid to Lanka
-
Business4 days agoUnlocking Sri Lanka’s hidden wealth: A $2 billion mineral opportunity awaits
-
News6 days agoBurnt elephant dies after delayed rescue; activists demand arrests
-
Editorial6 days agoColombo Port facing strategic neglect
-
News8 hours agoMembers of Lankan Community in Washington D.C. donates to ‘Rebuilding Sri Lanka’ Flood Relief Fund
-
News4 days agoArmy engineers set up new Nayaru emergency bridge
