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REFLECTIONS ON THE COVID PANDEMIC

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BY SARATH AMUNUGAMA

Despite the carping criticism ,particularly from the social media, SriLanka is one of the few countries which has survived the Corona epidemic relatively unscathed. According to the latest figures available while writing this article 85,695 persons have tested positive for the virus and over 80,000 have now finished their quarantine period. A total of 502 deaths have been recorded. While the numbers given daily of those infected is relatively unimportant, since it is only a reflection of the numbers tested which is a comparatively small sample of the total population or ‘’universe’’- to use statistical phraseology.

The more people are tested the more likely that the numbers would increase till the effects of isolation and vaccinations kick in. The number of deaths is relatively small when compared to the death toll in developed countries. Research has shown that Asians living in tropical zones are less likely to succumb to the virus. On the other hand with the onset of winter there was a steady increase of reported cases in countries with a cold climate.

The initial ‘’roll out‘’ of the vaccine has been quite successful with nearly 730,000 people especially in the ‘’At risk’’categories receiving the injection. Unlike in many other countries the numbers resisting getting the vaccine injection seems to be small which is a good sign. In many other countries in our region that is a major problem. If we can rapidly vaccinate a large segment of the population the pace of testing need not be a priority. It would be more reasonable to deploy our limited medical services to administer the vaccine. The rumour that there will be insufficient vaccines to go round seems to be disproved by the regular shipments that are arriving.

 

PUBLIC HEALTH SERVICE

Sri Lanka is fortunate to have a good public medical service as the WHO has noted on several occasions. Since the introduction of the adult universal franchise our political leaders of different persuasions have all agreed on the need for an efficient public health service. The trauma of the Malaria epidemic of the 1930s led to the State Council supporting an extensive rural health programme which is associated with the name of George E de Silva, MSC for Kandy. He was the Minister of Health in the State Council and supported by Dr S A Wickremasinghe then of the LSSP and later of the Communist Party, became the ‘’Father of the Rural Health Scheme’’ which transformed the health standards of the disadvantaged village population.

It also laid the foundations of the demographic surge of the 40s and 50s, the results of which are seen in the overwhelming population configurations and economic planning dilemmas of our present times. Under this initiative Rural Hospitals were built all over the country. Midwives were appointed countrywide and pre-natal and post natal care was undertaken by the state. As a consequence there was a sharp drop in infant and maternal mortality and a rise in the years of life expectancy. A world renowned economist summarized this situation when he said ‘’Sri Lanka is third world country with a first world health service’.

Social scientists are aware of a debate that took place many years ago in the ‘’Demography‘’ journal regarding the reasons for the population surge in Sri Lanka. Some argued that this was due to the discovery of DDT and the elimination of Malaria,particularly in the Dry Zone with the introduction of colonization schemes. Others led by Ananda Meegama replied convincingly that this development was not mono-causal but depended on several innovations and policy packages associated with the Rural Health Schemes which were put in place by the State Council and continued by Parliament after Independence.

This debate drew attention of scholars to the welfare measures undertaken in our country. The Nobel prize winning Economist Amartya Sen wrote that SrI Lanka and Kerala had adopted a style of growth which could provide a model for the Third World. I must say however that whenever I met Dr Amartya Sen at meetings and discussed our situation he would say that his sanguine prognostications about Sri Lanka had been derailed by the failure to address the ethnic issue. His bets on SriLanka were off because we could not solve our ethnic problem.

I have always felt that George E de Silva has had a raw deal in our history writing. If CWW Kannangara has been lauded as the father of Free Education ,De Silva should receive a similar accolade as the Father of Free Health .

As shown above we have a health service we can be proud of. Even from the aspect of inoculations our health services have administered the polio vaccine and the triple vaccine countrywide and have been lauded by the WHO. Today no SriLankan child dies of these infections. The best example of our able medical service is Dr Sudarshini Fernandopulle, State Minister of Health who was my State Minister when I was Minister of Science and Technology. As a specialist physician she boldly and courageously held her ground when other bigwigs of the Ministry were throwing holy water into rivers and swallowing magical potions in front of Television cameras. Never in the history of the Government health sector has there been an exhibition of such stupid behavior by political authorities. Another Minister is reported to have generously provided government funds for a nutmeg crushing machine to make more of the anti-covid brew. A few intelligent journalists blew this snake oil salesman’s credentials sky high when they reported that the gullible swallowers, including famously the lady Minister of Health, had contracted Corona and were hospitalized under intensive care.

In a noteworthy coincidence two of the ‘’peni’’ drinkers were struck by the virus within a few days. Mr Speaker who hosted the swallowing session in Parliament in the glare of publicity was shown a few days later meekly getting the anti -corona jab. But what took the cake was his statement published in the newspapers that he agreed to be vaccinated because he wanted to set an example. As a former MP who was continuously in the House for 26 years I was dismayed to find the Speaker’s office used to promote dubious products merely because an MP wished to accommodate one of his constituents.

Of late Speakers have tended to act as political leaders in waiting who have no hesitation in using their high office for personal benefit. That is another recent development contributing to public disenchantment with Parliament. [As a social scientist I was intrigued by the discovery via Baas Unnehe the snake oil salesman, that Kali – a fond abbreviation for Badrakali, the demoness- was a Tamil language speaker. When this ‘Peniya’’ lost his cool with the throng of supplicants surrounding him at home, he ,on behalf of Kali ,Shouted ‘’Poda Poda Poda ‘’at a woman who also responded in gibberish .A Tamil friend told me that ‘’poda’’ is ungrammatical Tamil when addressing a female.]

While there may have been a few mishaps which have been reported in the media, the vaccination programme has been carried out smoothly thanks to the public officials and the army. Many of my friends, admittedly over 60, were anxious that they would not be able to access the vaccine but in a couple of days were able to get it without much difficulty. Whatever may have been the instructions in most centres there was a queue for over sixties and the grama sevakas could recognize the people from their divisions. All in all the initial ‘’Roll Out’’seems to be successful without the usual absentees that have been reported in other countries.

Presumably it will now be extended to other parts of the country so that we can reach a proportion of coverages so that the ‘’herd tendency’’would make it possible for us to open the economy and the social life of the country. Medical Scientists have said that to reach such immunity about 70 percent of the population have to be vaccinated. I read with interest that Basil Rajapaksa had said that we should aim at such an immunization. As a small country we should find this possible and would help in positioning us as a lead country for investment and tourism. In this Isreal provides us with a good model.

Being a small country with good links to their compatriots in the scientific and business fields in the West, Israel has set a blistering pace in vaccinating its population. Sadly their racial policies have left out the Palestinians from the vaccination programme. This discrimination is so reminiscent of what Hitler did to their forefathers in the thirties and early forties. What we can learn from their vaccination programme however is the clear prioritization of access to the vaccine. They identified the over 60s as their target group based on demographic data and covered this category promptly. According to the Economist, hospitalization of the over 60 cohort dropped substantially after 70% of the number in that cohort was vaccinated by the Isreali government.

One of the grumbles about our vaccination programme, as seen in the letters to Editors, is shifting attention away from the over 60 cohort which is abnormally large in our particular demographic profile. By uncritically following the WHO guideline in this matter we seem to have ignored the ground realities of our demography. This was shown in the unanticipated demand from this category which had to be accommodated by hastily adding a separate queue for the over sixties in the vaccination centres.

Let me now turn to some basic issues which came to the fore due to the Covid pandemic. The first is the need to recognize the role of modern science. All too frequently our media has highlighted anti-scientific ‘’ mumbo Jumbo’’ to direct the conversation away from the need to establish a science based society in our country. Many people supported President Gotabaya Rajapaksa because he was a tech savvy modernizer. Unlike our other leaders he was not seen weighed against gold, half naked in a ‘’Thulbaram’’. [It is an irony that many of these Godmen or Pusaris died recently after contracting Corona.] Indeed unlike our politicians GR knew that wars cannot be won by making Pujas. You need manpower, planning and training, use of proper modern weapons, latest communications technology and research and logistical superiority to overwhelm an opponent who had access to top weapons experts worldwide.

I was a minister when the LTTE with superior weapons such as MBRLs were on the verge of driving our armed forces out of Jaffna peninsula. One of the reforms introduced by the GR-Fonseka team was to immediately get the latest weaponry. Unfortunately the leaders of the UNP, led by Ranil, could not understand any of this and were setting up the media to question the financing of those planes and weapons.

The discovery of the Covid vaccine is nothing short of a modern scientific miracle, says the Economist of February 2021. ’’To call vaccination a miracle is no exaggeration. A little more than a year after the virus was first recognized medics have already administered 148 million doses. Although the vaccines fail to prevent all mild and asymptomatic cases of Covid 19, they mostly seem to spare patients from death and the severest infections that require hospitalization, which is what really matters’’.

Another problem which is facing the country is the inefficient provincial health system. Many of our Chief Ministers were small time politicians who had very little idea of management. I am now revealing a secret that JRJ never wanted to appoint politicians as chief Ministers. His idea was to appoint senior public servants with a proven track record of management to run the newly established provincial councils.I remember that politicians like Dissanayake of Gampola lobbied against this saying that officials had no political savvy. Instead he proposed himself for the post of Chief Minister of Central Province and JRJ was made to change his mind by confidantes like Gamini and Ronnie de Mel.

Any investigation will show that the rural hicks who became Chief Ministers plundered the revenue of the provincial councils for salaries and perks for their colleagues. Money set apart for education and health were squandered to give jobs for the boys in order to get political mileage for their attempt to enter Parliament. This irresponsibility has led to a crisis in provincial education and health. Except perhaps in the North, the public in all other provinces want this subject reverted to the Central Government as the local education and health systems have broken down.

The health services in the provinces can effectively function at present because fortunately the Councils are dissolved. It is up to the Government to make a realistic assessment of the provincial council system which has been an utter failure in the Sinhala provinces. I would suggest the setting up of an international group of experts to evaluate the provincial council system which has been in operation for over 30 years. As I shall show later a streamlined health system will become a necessity in the ‘’Post-Covid World’’. A better framework for health and education, especially in rural areas must be evolved. An inquiry must be launched as to how the funds allocated to PCs have been misappropriated and wasted in political ‘’gift giving’’.

Scientists and economists are now talking of the ‘’New Coronormal’’. The epidemic has created a new normal with which we have to live. Says the Economist ‘’To the extent that medicine alone cannot prevent lethal outbreaks of Covid 19, the burden will also fall on behavior, just as it has in most of the pandemic. Habits like mask wearing may become part of everyday life. Vaccine passports and restrictions in crowded spaces could become mandatory. Vulnerable people will have to maintain great vigilance. Those who refuse vaccination can expect health education but limited protection. But even if Covid- 19 has not been completely put to rest, the situation is immeasurably better than what might have been. The credit for that goes to medical science.’’

Finally we cannot avoid the mega question of our attitude as a country and administration to the process of modernity. Though cranks and eccentric academics may muddy the waters we cannot avoid the thrust of modernization. All countries in this interrelated world follow a path to modernity which is time tested and, above all, practical. The covid virus has clearly shown the pathetic inability of non–science to address practical issues. While individuals may be delusional and call on gods like Natha to answer their prayers, real life is different and cannot succeed by rhetoric and speech-making. We need to get our priorities right and seek rational solutions. It is clear that countries that have successfully negotiated the modernization process can give a better life for the people Covid is a wake up call. I invite all concerned politicians, administrators, business people and academics to begin a discussion on the rational path to modernization which alone can lift us out of the morass in which we find ourselves now.



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Features

Sri Lanka’s rice conundrum: Time to stop managing crises and start fixing the system

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Prof. Ranjith Senaratne,
Emeritus Professor in Crop Science and former Vice-Chancellor,
University of Ruhuna and General President of the Sri Lanka Association for the Advancement of Science (2023) and
Prof. Prasad Jayaweera,
Dean, Faculty of Computing, University of Sri Jayawardenapura

Rice is not merely another crop in Sri Lanka. It is our staple food, an integral part of our history and culture, and a foundation of the civilisation that flourished around our ancient hydraulic systems. Revered as Buddha Bhogaya, the Buddha’s crop, rice has sustained our people for more than two millennia. Yet, remarkably, a country with such a profound relationship with rice continues to lurch from one rice crisis to another.

At one time, we have a surplus. At another, we face shortages. Prices rise sharply, consumers complain, farmers struggle to obtain remunerative prices, millers and traders become the focus of public attention, imports are hurriedly arranged, and governments announce yet another set of measures to contain the crisis. Then, after the immediate problem subsides, the matter recedes from the national agenda, until the next crisis arrives.

Why does this keep happening despite decades of agricultural research, policy interventions, expert committees and public debate?

Perhaps because we have been asking the wrong question. The fundamental problem is not simply how to produce more rice. Nor is it merely a question of prices, imports, fertiliser, farmers, millers or markets. The rice conundrum is a complex national systems problem.

We cannot solve a system by fixing its parts in isolation

Sri Lanka’s rice sector is an intricate web of interconnected systems involving agriculture, land, water, climate, technology, finance, energy, transport, markets, trade, governance, institutions and consumer behaviour. A decision made in one part of this system can have consequences, sometimes unintended, in another.

A change in fertiliser policy, for example, can affect productivity and production costs, which in turn influence farmer profitability, market prices and the need for imports. Irrigation decisions affect not only production, but also water availability, energy use and environmental sustainability. Guaranteed prices influence farmers’ cropping decisions, while import policies can simultaneously protect consumers and weaken incentives for domestic production. Likewise, market concentration can affect both the price received by farmers and the price paid by consumers. This is precisely why isolated interventions so often produce disappointing results. We keep treating symptoms while leaving the underlying system largely untouched.

For decades, we have generated valuable scientific knowledge on individual aspects of rice production and marketing. But knowledge generated within disciplinary and institutional silos does not automatically translate into solutions to complex real-world problems. What is needed now is a fundamentally different way of thinking.

From a “rice crop” to a “rice system”

The first step is to stop looking at rice simply as something that is grown in a paddy field.

The rice system begins with land, water, seed, inputs, technology and finance. It extends through cultivation, harvesting, drying, milling, storage, transport, wholesale and retail marketing, and finally to the consumer’s table. At every stage, there are different interests, incentives, constraints and actors: farmers, farmer organisations, input suppliers, machinery operators, millers, traders, wholesalers, retailers, financial institutions, government agencies, researchers and consumers.

And hovering over the entire system are climate change, changing consumer preferences, technological transformation and national economic conditions. A weakness anywhere in this chain can compromise the performance of the whole system.

Consider post-harvest losses. If significant quantities of rice are lost because of inadequate drying, storage or processing facilities, increasing production alone cannot solve the problem. Similarly, if farmers produce efficiently but face weak markets and poor bargaining power, productivity gains may not translate into improved livelihoods.

The question, therefore, should not be “How much rice can we produce?” but “How can we make the entire rice system work better?”

That requires us to see the connections.

The missing ingredient: reliable, real-time information

There is another fundamental weakness that deserves urgent attention: we still lack a comprehensive, integrated, interoperable and reliable national information system for rice. Information is scattered among different institutions, often collected using different methodologies and not necessarily available when decisions need to be made.

How much rice will actually be produced? How much is in storage? What is the likely demand? Where are the emerging production shortfalls? What are the stocks held by different actors? How are prices moving along the value chain? What are the likely consequences of climate conditions? Without timely and reliable answers to such questions, policymakers are forced to make critical decisions with incomplete information. This is not merely an administrative inconvenience. It is a national food-security vulnerability.

Sri Lanka should therefore seriously consider establishing a National Rice Intelligence and Decision Support System (NRIDSS), an integrated digital platform that brings together relevant real-time information from agriculture, meteorology, irrigation, markets, trade, statistics and other institutions. Such a system could support production forecasting, market monitoring, import decisions, early warning and evidence-based policy formulation. In an increasingly uncertain climate and volatile global economy, this should no longer be regarded as a luxury. It is becoming an essential component of national food-system governance.

The deeper problems cannot be ignored

A systems approach would also force us to confront some uncomfortable structural realities. Why does productivity remain relatively low despite decades of research? Why are so many holdings too small to achieve economies of scale? Why are modern technologies and precision agriculture not being adopted more rapidly? Why do farmers often have limited bargaining power? Why do substantial losses occur after harvesting? Why can market power become concentrated in a relatively small number of actors? Why are guaranteed prices sometimes announced too late to influence farmers’ production decisions? Why are policy interventions so often reactive rather than proactive? And how will droughts, floods, temperature extremes, changing rainfall patterns and emerging pests affect the stability of rice production in the years ahead? These are not separate questions. They are parts of the same system.

From crisis management to systems governance

Sri Lanka does not need another isolated discussion about rice. What is needed is a national policy dialogue and action forum that brings all relevant actors together, not merely to exchange speeches, but to develop a shared understanding of the system and agree on what needs to be done. Such collaboration must go beyond consultation or the exchange of views. The different parties need to work together from problem definition through to implementation, bringing their diverse knowledge, perspectives, interests and practical experience into a common process.

Farmers bring contextual and experiential knowledge; industry actors understand market realities and operational constraints; scientists contribute evidence and analytical capabilities; policymakers bring institutional and regulatory perspectives; while technology and data specialists can provide new tools for understanding and managing the system. When these different perspectives are brought together systematically, they can reveal interdependencies, challenge assumptions, identify feasible interventions and generate solutions that are evidence-based, practically implementable and socially acceptable.

This is the essence of a transdisciplinary systems approach: not simply working across disciplines, but bringing together multiple stakeholders and multiple forms of knowledge to co-create solutions and share responsibility for outcomes. The process should therefore go beyond presentations and speeches. It should involve systems mapping, causal analysis, stakeholder dialogue, scenario planning and the participatory identification of the critical bottlenecks and leverage points in the rice system. Most importantly, it should distinguish between what is urgent and what is important, and between interventions that merely alleviate symptoms and those capable of changing the underlying behaviour of the system itself.

We need an implementation roadmap, not another report

There is, however, one important caveat. Sri Lanka has no shortage of reports, recommendations and policy documents. What we often lack is sustained implementation. Any national initiative on the rice conundrum must therefore end not with another set of broad recommendations but with a prioritised national action roadmap. It should identify short-, medium- and long-term actions, assign institutional responsibilities, establish timelines and define measurable indicators of progress. The ultimate objective should be to move Sri Lanka from reactive crisis management to proactive systems governance.

A national opportunity

The rice conundrum may, in fact, provide Sri Lanka with an opportunity that extends well beyond rice to deal with other important crops. If we can demonstrate that a complex national problem can be addressed by bringing together science, policy, stakeholder knowledge, real-time information and systems thinking, the approach could become a model for addressing other persistent challenges, from climate resilience and water security to energy, food systems and disaster risk.

The choice before us is therefore quite stark. We can continue responding to each rice crisis as it emerges, adjusting prices, arranging imports, appealing to millers, reassuring consumers and supporting farmers, only to repeat the cycle later. Or we can step back and ask a more fundamental question:

What is it about the way our rice system is structured and governed that continually produces these crises?

That is the question that needs to be answered. Sri Lanka has the scientific expertise, institutional capacity and stakeholder knowledge required to do so. What is needed now is the willingness to bring these fragmented sources of knowledge together and examine the rice sector as one interconnected system.

Our ancient civilisation understood the importance of interconnectedness: land, water, agriculture and society were organised as parts of a larger whole. Perhaps, in confronting the modern rice conundrum, we need to rediscover that systems wisdom, this time supported by modern science, technology, real-time data and transdisciplinary thinking. The time has come to stop merely managing the rice crisis. It is time to fix the system that keeps producing it.

It is against this backdrop that the Sri Lanka Association for the Advancement of Science (SLAAS) proposes to convene shortly a “National Policy Dialogue and Action Forum on the Rice Conundrum in Sri Lanka”, bringing together the key stakeholders across the rice system. The Forum is intended to provide a platform for moving beyond piecemeal and reactive interventions towards a coordinated, evidence-based and transdisciplinary systems approach, one capable of generating lasting and pragmatic solutions to what has become an “island-shaking national issue”.

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This curse of partisan politics in Sri Lanka

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78 Years of Demagoguery, Not Democracy

by Brigadier Ranjan de Silva
rpcdesilva@gmail.com

On the 4th of February every year, we raise the lion flag and speak of democracy. We speak of 78 years of “self-rule.” But honesty demands we ask: what kind of rule have we actually had? It was not democracy. Democracy is government for the common good, constrained by law, informed by reason, and accountable to truth.

What Sri Lanka has had for 78 years is demagoguery — government by manipulation, by party, and by passion.

Defining the Curse:

The dictionary defines demagoguery as “political activity that seeks support by appealing to the desires and prejudices of ordinary people rather than by rational argument.” Its tools are simple: divide the people, promise the impossible, demonize the opponent, and govern for the next election, not the next generation. That is the political culture we inherited in 1948 and perfected since.

78 Years of Evidence:

The record is not ambiguous. Policy by Pendulum – 1948–2024. Instead of a national development plan, we got a partisan wrecking ball. 1956: The “Sinhala Only Act” was passed not after linguistic study, but as an election mobilization tool. 1970-77: The SLFP nationalized private enterprise and imposed import controls. 1977: The UNP reversed course with an open economy overnight. 2005-2014: Mega infrastructure was built on Chinese loans with no feasibility transparency. 2015-2019: Those same projects were called “white elephants” and stalled. 2020-2021: The organic fertilizer ban was announced as a populist “green” policy, reversed 6 months later after it collapsed agriculture and food prices. The Colombo Port City, Hambantota Port, and the Central Expressway all followed the same pattern: started, stopped, rebranded. The country pays twice. The party takes credit once. Economics as Election Candy. Demagoguery is expensive. 1960s: Subsidized rice to win rural votes, leading to the 1971 food crisis.

2005-2014:

Fuel subsidies and public sector hiring sprees that doubled the wage bill. 2019:

Unfunded tax cuts that removed Rs. 500 billion in annual revenue with no offset. By April 2022, external debt hit $51 Billion and we defaulted for the first time. The party that cut taxes was not in power to manage the IMF program. The party that inherited it was blamed for the austerity. This is the cycle. Institutions captured. A democracy needs referees. We turned them into party cadres. The 17th Amendment 2001 created independent commissions. The 18th Amendment 2010 abolished them. The 19th 2015 restored them. The 20th 2020 gutted them again. Police transfers, university vice-chancellors, and state bank chairmen have all been decided by party headquarters, not merit.

When the institution serves the party, the citizen gets leftovers.

Identity over Ideas: From 1956 to 1983 to 2009 to 2022, our elections have been won on fear, not spreadsheets. “They will erase your language.” “They will sell the country.” “Only we can protect Buddhism/the minorities/the nation.”

Rational debate on debt, productivity, or climate adaptation never wins a rally. Prejudice does. That is demagoguery by definition.

Party Interest subverted the National Interest. The core damage of 78 years of partisan politics is this: the nation became secondary to the party. Need power sector reform? Impossible, because our unions will strike. Need to cut 300,000 ghost employees? Impossible, because our voters will defect. Need a 20-year education and export plan? Impossible, because it won’t show results before the next election. So, we borrowed. We patched. We lied. The result: a railway system that still runs on 1950s engines, hospitals without paracetamol in 2022, and a brain drain of 300,000+ skilled workers since the crisis. The parties rotated. The country declined.

The Opposition’s Original Sin and here, all parties share guilt equally. In opposition, the job is not to govern. It is to destroy. The UNP in the 60s called the SLFP “communist.” The SLFP in the 70s called the UNP “imperialist.” The JVP called both “traitors.” The SJB, SLPP, and NPP today use the same script with new logos. Every tax is “anti-people.” Every reform is “a sell-out.” Every crisis is proof the other side is evil and must be removed at any cost. Then they win. And implement 80% of what they opposed. Because demagoguery has no principles, only positions. 78 years of unmerciful, bad-faith criticism has not produced accountability. It has produced cynicism. The public now believes all politicians are the same — because for 78 years, they have behaved the same.

Breaking the Curse:

Changing the party in power will not end this. We must change the incentives that reward demagoguery. Three reforms are non-negotiable: Bind future Parliaments to national policy. Pass 10-year frameworks for energy, education, and public debt with 2/3 majority protection. Infrastructure and fiscal rules should outlast one government, as they do in Chile and New Zealand. Depoliticize the state. Independent commissions for police, elections, public service, and bribery must have constitutional budgets and appointment panels that exclude MPs. No more 18th/20th Amendment style rollbacks. Demand better from voters We must stop rewarding the best slogan and start demanding the best spreadsheet. Town halls over rallies. Costings over promises. A 5-year plan over a 5-minute speech.

In 1948, we did not inherit democracy. We inherited an election. For 78 years we have used that election to choose our favourite demagogue. The prize has been debt, division, and decay. The curse of partisan politics will only end when citizens and leaders agree on one principle: Party second. Country first. Until then, February 4th will remain a ceremony, not a celebration.

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Developing markets for fruits, vegetables and flowers in the Gulf

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Image courtesy Export Development Board)

Export diversification – Missing the wood for the trees – Part II

by Gomi Senadhira

Sri Lanka established its diplomatic presence in the Gulf region only in the early 1980s. First, a small embassy was opened in Abu Dhabi, covering the UAE. Then in 1982, embassies were opened in Jeddah and Kuwait. The embassy in Jeddah covered Saudi Arabia while Kuwait was responsible for Kuwait, Oman, Qatar and Bahrain. Commercial Diplomats were also assigned to these two embassies. A senior private sector executive, with experience in marketing, was posted to Jedda as the commercial counsellor. I was posted to Kuwait as a second secretary (Commercial). Our instructions were very clear. Focus not only on traditional exports. Product diversification was a priority.

Developing Markets for Agricultural Products

At that time, Minister Lalith Athulathmudali had just launched his Export Production Villages (EPV) programme. He believed that the EPVs working closely with the exporters would provide an ideal opportunity for rural households to directly benefit from the government’s new open trade policy. Agricultural products, particularly fruits and vegetables, were a key component of this approach and the ministry thought that the Gulf countries, with large Sri Lankan communities, would have a ready-made market for these items. Thus, from day one we were compelled to explore the market for nontraditional exports; fruits and vegetables (F&Vs) were on the top of our priority list.

From cane baskets to cardboard boxes

Fortunately, the market for the F&Vs products in the region was at a very early stage of development. That provided an opportunity for Sri Lankan exporters, who were also inexperienced, to work with the importers and grow together. For example, in Kuwait, one of our first customers for F&Vs was a small supermarket where the manager was a Sri Lankan. After the first shipment arrived, he invited me to inspect the shipment. I visited the supermarket and was shocked by what I saw. While produce from other countries was packed nicely in cardboard boxes, our packaging mirrored transport to Manning market, cane baskets! As a result, fresh produce had suffered significant damage. A long report, with photographs, to the trade ministry produced an immediate response. After all, this was a pet project of the Minister. Within weeks, shipments were packed in cardboard boxes. Immediately afterwards, an expert on packaging from the Commonwealth Secretariat was sent to Kuwait with an official from the EDB to study the problem.

By then, we had also managed to develop a friendship with the management of the Salmiya supermarket, a large upmarket supermarket patronised by wealthy Kuwaitis and expats. It was a cooperative and the chairman was a Kuwaiti public servant. I could only meet him after 6 PM when his large office functioned as a diwaniya, a cherished cultural space in Kuwaiti society. Guests moved in and out the room. I had to spend time with them sipping many cups of tea. Though that meant at least two hours on each visit, it helped greatly to develop a close relationship. The general manager was an efficient and friendly Palestinian. After many visits we had succeeded in getting an order for F&Vs. The day after the first shipment arrived, I got an urgent call from the GM to come and inspect it. Once again, I was in for a surprise. Inside the cold room, the consignments from other countries were stacked neatly on top of each other, while vegetable boxes from Sri Lanka had collapsed once placed on top of each other, crushing the produce within.

Fortunately, our packaging experts arrived in Kuwait soon after this incident. They spent two days in the Salmiya Supermarket, studying the packaging from other origins. We were also successful in assuring the GM our packaging would improve. After that, packaging improved and exports moved smoothly. With that, Sri Lanka emerged as a small but reliable supplier to the mainstream market, not just the ethnic segment of the market.

Export of Fresh Vegetables by Sea

Towards the end of my tour, a Sri Lankan businessman requested me to find a buyer for cabbages, which he was prepared to export in large quantities by sea. I introduced him to the largest fruit and vegetable importer in Kuwait. Their regular suppliers of similar vegetables were Jordan, Lebanon and Syria. Luckily, the company was keen to diversify the supply sources. A few weeks later, the first container load of cabbages from Sri Lanka arrived in Kuwait. Immediately after the arrival of the container, I visited the company. They were pleased with the quality and the price and were looking forward to importing more fruits and vegetables. Unfortunately, that turned out to be a one-off event. Later on, when I was back in Sri Lanka, the exporter informed me that he couldn’t continue with it due to the problems with the local supply chains.

Floriculture

During the period I was asked by the EDB to explore the market for floricultural products, more particularly for cut flowers. At that time Kuwait was a relatively large importer of cut flowers and live plants. The main suppliers were the Netherlands and Colombia. Importers were also reluctant to move out of the established supply chain, particularly due to “snob value” associated with the product from Europe. However, after some difficulties, one importer agreed to place a pre-paid trial order. After the arrival of that shipment, he was impressed by the quality of the product and the orders expanded rapidly. As a result, by the end of 1985 Kuwait had become a major buyer of Sri Lanka’s floricultural products.

From village to global markets

As a result of the proactive promotional work undertaken by the EDB and the embassies in the region, by 1985, Sri Lanka had managed to acquire a small but significant share of the F&V and floriculture markets in the GCC countries. We had also identified domestic supply chain issues that hindered exports. All that was done, long before Southeast Asian or African countries even entered into that market. In fact, my Southeast Asian colleagues used to contact me often to reserve “durian” for them at the “Sri Lankan supermarket”.

Most importantly, a substantially large share of produce from Sri Lanka in Kuwaiti supermarkets originated in the EPVs. Of course, that didn’t just happen. The ministry (or the minister) using the carrot and stick approach “encouraged” exporters to buy the produce directly from the newly established EPVs. (The writer can be reached at senadhiragomi@gmail.com)

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