Features
ROYAL COLLEGE’S MAGNIFICENT GROUP OF 49
Upali Wijewardena entered Royal Primary at the age of five years when A F De Saa Bandaranayake was Head Master. Some of his classmates who joined the Kindergarten (Baby Class) were Dr. Ranjith de Silva (surgeon), Jayantha Gunasekera (Presidents Counsel), Dr. R S B Wickramasinghe (Former Director of the Medical Research Institute), Sarath Weerasooria (Chairman FINCO), Sam Samaranayake, Dr. N T de Silva, Dr. Tissa Cooray. Their teacher was Mrs. Keyt who looked after her wards as if they were her own children. Almost all of them had “ayahs” and there was a special enclosure for these chaperones.
In 1949, a Group of 96 students, were successful in gaining entrance to Royal College having sat an open competitive exam. About 60 of them, were from Royal Prep, while the balance were from other schools such as St Thomas,’ Mt. Lavinia, Trinity College, Kandy, St Joseph’s and St Peter’s etc. all students were about 10-years old and they were examined mainly on general intelligence and general knowledge, English, Sinhalese and Arithmetic. Although Royal Prep bore the same name, there was no automatic entry to Royal College unlike several year before, and several years after.
The Head Master of Royal Prep was A F De Saa Bandaranayake, while the Principal of Royal College was J C A Corea – the first Ceylonese Principal. Initially, most of these boys did not take studies seriously as a large number were from affluent families, being children of professionals, but once they got into their respective disciplines, there was no turning back. Quite a number of them, have reached the zenith of their profession.
Royal College is indisputably the best school in the Island, or so Royalist claim. Parents clamour to get their children into Royal, but not all of them are lucky enough. Most think of other public schools as second best. Royal and S. Thomas’ are the most prestigious, like Eton and Harrow of England, their alumni like to think.
Royal was founded in 1835 by the then British Colonial Government, mainly for the education of the sons of the Britishers, under the Principalship of Dr Barcroft Boake, a product of Oxford University. Though the school was initially called the Colombo Academy, it came to be known later as Royal College. On the panels of the College Hall are the names of those who distinguished themselves in the field of intellect.
Also, in the College Hall hang the portraits of those who rendered yeoman service to our country. Some amongst them are C.A. Lorenz, KC, the Acting Queen”s Advocate, Sir Ponnambalam Ramanathan, Acting Attorney General and his brother Sir Ponnambalam Arunachalam of the Ceylon Civil Service, Dr C.A. Hewavitharne and his sibling Anagarika Dharmapala. Of the politicians of recent times were two heads of state – Sir John Kotalawala and President J.R. Jayewardene, while H. Sri Nissanka Q.C, a well known criminal lawyer and one of the founders of the SLFP also adorns the Hall panels.
Messers D.S.Sennanayake, Dudley Sennanayake and S.W.R.D. Bandaranaike were distinguished products of the school known by Royalists as “the other place”, namely, St Thomas’.
This batch being written about here came to be called the 49 Group. According to statistics compiled, it is perhaps the best batch that Royal turned out in recent times. It is said that 32 of them became medical doctors, most of them consultants, while six entered the legal profession, two of them becoming President’s Counsel, two others becoming Judges of the Supreme Court, three entered the Ceylon Civil Service and 18 became Engineers.
It is estimated that about 68% of this Group became professionals
, but while in school, each one of them fought for the last place in class! But when they commenced their respective disciplines, they shone over the products of other schools.
Some surgeons
of the 49 Group are, Ranjit de Silva – who captained Royal at cricket, Priya Samarasinghe, Geoff Van den Driesen, Gamini Goonetilake, S.R.Ratnapala, whilst some of the well known physicians are Henry Rajaratnam, J.B.Pieris, Gamini Jayakuru, Brendon Gooneratne, the latter distinguishing himself in Australia. His wife, Yasmine Gooneratne, a Professor of English in Australia, has several publications to her credit Another wife of a member of the 49 Group is Professor Lalitha Mendis, who reached the pinnacle of the medical profession. She was the Dean of the Faculty of Medicine, and the Director of the Post Graduate Institute of Medicine. She is the wife of the late Dr Lalith Mendis.
The other physicians are, Danilo de Kretser, Tissa Cooray (WHO), N.T. de Silva (UK), H.S.Karunasekera (UK), Leslie Muthukuda (UK), Dan Perimpanayagam, Yasa Rajapakse (UK), Disampathy Subasinghe (UK), V.Dharmapalan (New Zealand), and the late R.S.B. Wickremasinghe – who was the Director of the M.R.I.
Of those who took to Law, are two well known President’s Counsel Jayantha Gunasekera (former Secretary of the Bar Association) and the late Chula de Silva. Two other lawyers S.W.B. Wadugodapitiya and P. Edussuriya became Judges of the Supreme Court, whilst A.Balachandran worked in the UN. T.K.N. Thilakan (District Judge) and Kumar Ponnambalam both died a few years ago. Alavi Mohamed , a Barrister also died several years ago. M.N.B. Pieris is a civil lawyer, in Colombo.
Harsha Wickremasinghe, D.G.P.Seneviratne and Dr B.S.Wijeweera entered the prestigious Ceylon Civil Service.
Of the Engineers that come to mind are Professor C.L.V.Jayatilake (a Vice Chancellor of Peradeniya), Dr Susantha Goonetilake , S.C.Amarasinghe (former GM of the Electricity Board), Dr Sri Bhavan Sri Skandarajah – Sri Bhavan in May 2013 staged a six day fast in Canada in support of the LTTE diaspora (TGTE), H.S.B. Abeysundara (Chemical Engineer), L.H.Meegama, C.Ramachandran and Bandula Yatawara.
Perhaps the cleverest of them all was Chelvanayakam Vaseeharan, a maths prodigy, who was to be appointed Professor of Mathematics.
In this class, were two leading businessmen, namely the Cambridge educated Upali Wijewardene of the Upali Group, and, Lal Jayasundera, Chairman of Hayleys. Ratna Sivaratnam headed another conglomerate – Aitken Spence, whilst K.Manikkavasagar was a Director of Glaxo. Arjuna Hullugalle and Upatissa Attygalle are successful businessmen.
V.H. Nanayakkara and P.H.J.S. Ariyapala both Bachelors of Science, joined the Staff of Royal College.
There was one member of the 49 Group who distinguished himself as a clever investigator in the Police Force. If he had not joined the Police, surely he would have been on the other side of the Law! That was none other than Rahula de Silva. It is reported that he was charged in several cases of violence. In all these cases he was successfully defended gratis, by his classmate Jayantha Gunasekera, a well known criminal lawyer.
There is the very talented Artist Laki Senanayake , who worked with Geoffrey Bawa, whilst A.A.Wijetunga and K.Sivapragasam became Senior Assessors in the Inland Revenue Dept. K.L.Gooneratne is a talented Archtitect.
Late Bimal Padameperuma functioned as Chairman State Engineering Corp, and D.C. Wimalasena was Chairman,Petroleum Corp.
T.D.S.A. Dissanayake ,a prolific writer, first served in the U.N. Later he was our Ambassador in Indonesia.
There were two members of this Group to whom life was a ball! They were Aru Sellamuttu and Ranjit Kiriella. Nimalasiri Fonseka, a bright spark in school, lives the life of a Squire in England. He qualified as a Chartered Accountant.
Lionel Almeida and the late Tyrrel Muttiah took to planting, and were ruggerites. The late W.K.N. de Silva was a propriety planter. Bobby Perera, was one time Director of Quickshaws. Mahinda Gunasekera who is permanently domiciled in Canada, does much for our country by countering false propaganda.
These classmates are a very close knit family, though half of them live overseas… The 49 Group, depleted as it is, gets together, definitely during the Royal-Thomian cricket encounter and the Bradby shield. Sometimes they meet more often, to welcome members coming home from abroad, for some reason or another.
It is at such gatherings that they reminisce about their schooldays, some wild and some even wilder! Only the pleasantest memories remain, and old yarns are told and retold, with salt and pepper added too! It is amazing that there isn’t a tinge of jealousy, and each one is proud of the other’s achievement.
Masters then came to teach, in full suit (coat and tie, mind you),and some driving their own cars. They instilled into this impressionable Group of youngsters all that Royal stood for; so much so that even today, they instinctively take the acceptable course of action in any matter.
As the College song goes, “They learned of books and learned of men, and learned to play the game” being absolutely fair minded, in their dealings in later life.
S D Sivapragasam
A loyal Royalist.
Features
The Paradox of Coercion: US strategy and the global re-emergence of Iran
(A sequel to the two-part article, War with Iran and unravelling of the global order, published in The Island on April 8 and 9.)
The unfolding developments in the US-Israeli coordinated military attack against Iran reveal a striking paradox at contemporary geopolitics: efforts to weaken a state through coercion may, under certain conditions, contribute to its structural elevation within the international system. What appears as short-term tactical success can generate long-term strategic consequences that are neither anticipated nor easily reversible. In this context, the policies associated with Donald Trump and Benjamin Netanyahu, marked by unilateralism and the willingness to use force, risk producing precisely such an unintended outcome. Rather than marginalising Iran, their actions may be accelerating its re-emergence, not merely as a regional actor in the Middle East, but as a consequential player in the global geopolitics and the wider architecture of international supply chains of energy economy.
Iran not merely a state
Iran is not merely a state, but a civilisation with a distinctive political trajectory. At the heart of the present transformation lies its asymmetric strategy, rooted in the strategic exploitation of geography. Few states possess the capacity to shape the global system through geography alone. Iran’s proximity to the Strait of Hormuz, a narrow maritime passage through which a substantial share of the world’s oil and liquefied natural gas flows, endows it with a latent structural power that transcends conventional measures of national capability.
In periods of stability, this position translates into economic opportunity; in moments of crisis, it becomes a lever of systemic disruption. Recent tensions have demonstrated that even limited instability in this corridor can reverberate across global markets, triggering sharp increases in energy prices, disrupting supply chains, and amplifying inflationary pressures worldwide. Should Iran consolidate its capacity to influence or control this chokepoint, whether through military deterrence, asymmetric instruments, or diplomatic maneuvering, it would shift from being a participant in global energy markets to a pivotal arbiter of their functioning.
Energy-embedded global economy
The contemporary global economy is not merely energy-dependent; it is deeply energy-embedded. Hydrocarbons underpin not only transportation and electricity generation but also the production of petrochemicals, fertilisers, and a wide range of industrial inputs essential to modern manufacturing and food systems. Disruptions linked to Iran have already illustrated how shocks in the energy sector cascade through interconnected supply chains, affecting everything from agricultural output to high-technology industries. In this sense, Iran’s leverage is no longer confined to the traditional realm of resource geopolitics. It increasingly operates within a networked global system in which control over a single critical node can generate disproportionate influence across multiple sectors. This form of power, diffuse, indirect, and systemic, marks a departure from the more linear dynamics of twentieth-century oil politics.
The implications of such a shift are profound for the structure of the international order. For decades, the global system has been underpinned by a set of institutions, norms, and economic arrangements often described as the so-called liberal international order. Sanctions, financial controls, and diplomatic isolation have been key instruments through which dominant powers have sought to discipline states that challenge this order. However, Iran’s prolonged exposure to sanctions has compelled it to develop adaptive strategies: alternative trade networks, informal financial channels, and closer ties with non-Western partners. A crisis-induced re-entry into global markets would therefore not signify reintegration into the existing order, but rather the expansion of parallel systems that operate alongside, and sometimes in opposition to, it. In this context, Iran’s rise would contribute to the gradual fragmentation of the global economy, accelerating trends toward decoupling, regionalization, and the erosion of established institutional authority.
Decline of global order based on US hegemony
This process of fragmentation is closely linked to declining global order based on U.S. hegemony. A more globally consequential Iran would inevitably become a focal point in the strategic player in emerging multipolar world. For China, whose economic growth remains heavily dependent on secure energy supplies, deeper engagement with Iran would serve both economic and geopolitical objectives, reinforcing its presence in the broader Middle East and insulating it from vulnerabilities associated with maritime chokepoints. Russia, already positioned as a major energy exporter and a challenger to Western dominance, may find in Iran a complementary partner in reshaping global energy markets and contesting sanctions regimes. Meanwhile, countries across the Global South, including major importers such as India, would face a more complex strategic environment, characterized by heightened exposure to supply disruptions and increased pressure to navigate between competing power centers. In this emerging landscape, Iran would function less as an isolated actor and more as a pivotal node within a reconfigured network of global alignments.
Dynamics enhancing Iran’s strategic importance
Paradoxically, the very dynamics that enhance Iran’s strategic importance may also accelerate efforts to reduce dependence on the conditions that enable its influence. Recurrent energy shocks tend to catalyze policy responses aimed at diversification and resilience. States are likely to expand strategic reserves, invest in alternative supply routes, and accelerate transitions toward renewable energy and nuclear power. Over the longer term, such measures could diminish the centrality of fossil fuel chokepoints, thereby constraining Iran’s leverage. However, this transition will be uneven and contested. Advanced economies may possess the resources to adapt more rapidly, while developing countries remain structurally dependent on affordable hydrocarbons. In the interim, the global system may experience a prolonged period in which dependence on Iranian-linked energy flows coexists with attempts to transcend it—a duality that adds further complexity to the evolving geopolitical landscape.
Beyond material considerations, Iran’s potential re-emergence also signals a deeper transformation of the existing global order. Traditional metrics—military strength, economic size, technological capacity—remain somewhat important, but they are increasingly complemented by the ability to influence critical nodes within global networks. The capacity to disrupt, delay, or redirect flows of energy, goods, and capital can generate strategic effects that rival, or even surpass, those achieved through direct military confrontation. In this sense, Iran exemplifies a broader shift from territorial geopolitics to what might be termed network geopolitics. Control over chokepoints, supply chains, and infrastructural linkages become a central determinant of influence, enabling states with relatively limited ‘conventional’ capabilities to exert outsized impact on the international system.
Iran’s trajectory may be understood as a transition through several distinct phases: from a regional challenger seeking to assert influence within the Middle East, to a strategic disruptor capable of unsettling global markets, and ultimately to a systemic actor whose decisions carry worldwide consequences. This evolution is neither inevitable nor linear; it depends on a complex interplay of domestic resilience, external pressures, and the responses of other global actors. Nevertheless, the possibility itself underscores the unintended consequences of policies that prioritize short-term coercion over long-term strategic foresight.
Transition shaped by paradoxes
In historical perspective, moments of systemic transition are often shaped by such paradoxes. Actions taken to preserve an existing order can, under certain conditions, accelerate its transformation. The current crisis involving Iran may represent one such moment. By elevating the strategic significance of energy chokepoints, exposing the vulnerabilities of interconnected supply chains, and encouraging the development of alternative economic networks, it contributes to a broader reconfiguration of global power. In this emerging context, Iran’s re-emergence as a global actor would not simply reflect its own capabilities or ambitions; it would also embody the structural shifts reshaping the international system itself. What began as an effort to constrain Iran may ultimately facilitate its transformation into a decisive player in the global energy economy and supply chain architecture. The implications of this shift extend far beyond the Middle East, touching upon the stability of markets, the cohesion of international institutions, and the evolving nature of power in the twenty-first century.
The war with Iran is best understood not as a discrete regional conflict, but as a structural moment in the transformation of the international system. It reveals a growing disjuncture between the continued reliance on coercive statecraft and the realities of an interdependent global order in which power increasingly derives from control over critical economic and infrastructural nodes. Rather than achieving strategic containment, the conflict has underscored the capacity of a relatively constrained actor to generate systemic effects through geoeconomic leverage. In doing so, it highlights a broader shift from military-centric conceptions of power toward forms of influence embedded in networks of energy, trade, and supply chains.
This is not merely a redistribution of power, but a redefinition of how power operates. At the systemic level, the war accelerates the erosion of the post-Cold War order, reinforcing tendencies toward fragmentation, parallel economic arrangements, and multipolar competition. Iran’s potential re-emergence as a global actor should therefore be seen less as an isolated outcome than as a manifestation of these deeper structural changes. In this sense, the strategic significance of the war lies in its unintended consequences: it exposes the limits of coercive hegemony while simultaneously amplifying the importance of those actors positioned to exploit the vulnerabilities of an interconnected world.
by Gamini Keerawella ✍️
Features
The dawn of smart help for little ones
How Artificial Intelligence is breaking barriers in Autism Diagnosis and Care
For any parent, the early years are a most valuable countdown of “firsts” of his or her precious child: the first step, the first clear word, the first beautiful smile, and quite a few other firsts as well. Yet for all that, for some families, that joy is overshadowed by a growing, quiet, but disturbing intuition that something is even a little bit different. Perhaps a child is not responding to his or her name, or the little one seems to be more interested in the spinning wheels of a toy than a game of peek-a-boo, or even avoids normal social responses.
In many countries, especially in the developing world, the road from that first “gut feeling” that there is something wrong, to a formal diagnosis of Autism Spectrum Disorder (ASD) is often a long and exhausting journey. While doctors can often identify autism in children as young as 12 to 18 months, the average age of diagnosis in our communities still hovers around four years. In these critical years, when a child’s brain is most like a machine ready to learn and adapt, time is of the essence and is the most valuable resource a family has.
Today, a new “algorithmic dawn” is offering a shortcut to really cut that delay. Artificial Intelligence (AI), the very same smart technology that helps us navigate traffic, suggest a new song, or help people with ChatGPT, is moving out of the lab and into the children’s nursery. By acting as a digital “magnifying glass”, specifically designed AI tools can now spot subtle patterns in a child’s gaze, some little quirks in the rhythm of their babbling, or the way they move, often much faster than the human eye can. Then the machine can issue a warning signal and indicate that further action and a proper evaluation are necessary. This is most certainly not about replacing the brain, the heart and the expertise of a paediatrician; it is about providing “Smart Help” that can be accessed from a smartphone in a family living room. For millions of “little ones on the spectrum”, most notably in the developing world, this technology is turning a journey once defined by waiting, uncertainty and even tears, into one of proactive care and even brighter horizons. The time gained is most certainly a very valuable window of opportunity.
What is the “Spectrum,” and Why Does Time Matter?
Autism is described as a “spectrum” because it affects many children somewhat differently and to varying degrees. Some children may have advanced technical skills but struggle to hold a conversation; others may be non-verbal or have intense sensory sensitivities. It can be very mild or very severe, and perhaps everywhere in between as well.
The common thread is that the brain develops differently in these affected children. This is why Early Intervention is the gold-standard goal. During the toddler years, a child’s brain is incredibly “plastic”, meaning that it is a highly adaptable and ready to learn type of organ. Starting therapy and management strategies during this valuable period of opportunity can fundamentally change a child’s future life path.
The problem, to a certain extent, is that traditional diagnosis of ASD is a slow, manual process. It requires intensively trained experts to watch a child play for hours and fill out complex checklists. In many countries, including Sri Lanka, where there is a massive shortage of these highly qualified specialists, the waiting list for a consultation alone can take months or even years. These doyens are rather thin on the ground and even when available, are heavily overworked.
Enter the AI Revolution: Seeing the Unseen
AI certainly does NOT replace doctors, but it acts like a high-powered magnifying glass. By using “Machine Learning”, computers can analyse massive amounts of data to find tiny patterns that the human eye might miss. Here is how it is changing the game:
1. Tracking Gaze and Smiles
One of the earliest signs of autism is how a child looks at the world. AI “Computer Vision” can analyse a simple video of a child playing. It can track exactly where the child is looking. Does the child look at a person’s eyes when they speak, or are they drawn to the spinning wheels of a toy in the corner? AI can quantify these “social attention” patterns in seconds and add them to a cache of things that ring warning bells.
2. The Sound of a Voice
Did you know that the “music” of a child’s speech can hold clues? AI can listen to the pitch and rhythm (called prosody) of a child’s voice. Children on the spectrum sometimes have a “flat” or monotonic way of speaking. AI algorithms can measure these vocal biomarkers with incredible precision, helping to flag concerns long before a child is old enough for a full conversation.
3. Movement and Play
Repetitive behaviour, like hand-flapping or rocking, are core traits of ASD. Sensors in smartphones or simple video analysis can now categorise these movements objectively. Instead of a parent trying to describe how often a behaviour happens, the application or ‘app’ provides a clear, data-driven report for the doctor.
Innovation at Home: India’s Digital Solutions
The most exciting part of this technology is that it does not require a million-dollar lab. In India, where smartphone use is booming, several “homegrown” apps are bringing specialist-level screening to rural and urban homes alike.
Apps like CogniAble, which give parents a step-by-step intervention plan based on the child’s specific needs, or START, a tablet-based tool used by local health workers in areas like Delhi slums to spot risks via simple games, or LEEZA.APP, which offers free AI screening to remove the “money barrier” that keeps many families from seeking help, or AutismBASICS, which provides thousands of activities and a milestone tracker to help parents manage daily therapy at home, are just a few of the programs in use at present. These tools are “democratising” healthcare. A mother in a remote village with a basic smartphone can now access the same level of screening logic that was once only available in a major city hospital.
Beyond the Diagnosis: A Robot Tutor?
The role of AI does not stop once a diagnosis is made. It is also becoming a tireless “co-therapist.”
For many children with autism, the human world can be unpredictable and overwhelming. AI-powered “Social Robots” or interactive apps provide a safe, predictable environment. These “Robo-Therapists” do not get tired, they do not get frustrated, and they can repeat a social lesson even 100 times until the child feels comfortable.
Furthermore, for children who are nonverbal, AI-powered communication apps serve as a “voice”. These apps use smart technology to predict what a child wants to say, allowing and facilitating them to express their needs and feelings to their parents, even for the very first time.
The Human Element: Proceed with Care
As bright as this dawn is, experts warn that we must move forward carefully and most intelligently.
= Privacy: Because these apps collect sensitive videos and data about children, keeping that information secure is a top priority.
= Cultural Differences: An AI trained on children in the US or Europe might not perfectly understand a child in Sri Lanka. We need “diverse local data” to ensure the algorithms understand our local languages, gestures, and social norms. Many of these programs need to be home-grown or baked at home in Sri Lanka.
= The Human Touch: Most importantly, we need to always remember that AI is a tool, not a replacement. A computer can spot a pattern, but it cannot give a hug, provide emotional support to a struggling parent, or celebrate a breakthrough with the same joy as a human therapist.
A Brighter Future
We are moving toward a world where “waiting and seeing” is no longer, and quite definitely, not the only option for parents. By combining the heart of a parent and the expertise of a doctor with the speed of an algorithm, we can ensure that no child is left behind because of where they live or how much money they have.
The “Algorithmic Dawn” is not just about code and data. It is about giving every child the best possible start in life. It is the main principle on which Hippocrates, the Father of Medicine, all those centuries ago, based all his postulations on how physicians should work.
The “Red Flag” Checklist: 18 to 24 Months
The American Academy of Pediatrics recommends screening all children at 18 and 24 months. If you notice several of these signs, it is time to use an AI screening app or consult your paediatrician.
Communication and Social Cues
= The Name Test: Does your child consistently fail to turn around or look at you when you call his or her name?
= The Pointing Test: By 18 months, most toddlers point at things they want (like a biscuit) or things they find interesting (like a dog). Is your child using your hand as a “tool” to get things instead of pointing?
= The Eye Contact Test: Does your child avoid looking at your face during social interactions or during play or when being fed?
= The Shared Smile: Does your child rarely smile back when you smile at him or her?
Behaviour and Play
= The Toy Test: Does your child play with toys in “unusual” ways? (e.g., instead of rolling a car, they spend 20 minutes just spinning one wheel or lining them up in a perfect, rigid line).
= The Routine Rule: Do they have an extreme “meltdown” over tiny changes, like taking a different route to the park or using a different coloured cup?
= Repetitive Motions: Do you notice frequent hand-flapping, rocking, or spinning in circles, especially when they are excited or upset?
The “Golden Rule” of Regression
Finally, an extremely important rule for concerned parents to follow.
If your little one had words (like “Mama” or “Dada” or “Amma” or “Thaththa” or Thaii/Amma or Appa) or social skills (like waving “Bye-Bye”) and a beautiful social smile etc, and then SUDDENLY STOPS USING THEM, that could be a most significant red flag. In such situations, the standard advice would be: Please consult a doctor immediately.
by Dr B. J. C. Perera
MBBS(Cey), DCH(Cey), DCH(Eng), MD(Paediatrics),
MRCP(UK), FRCP(Edin), FRCP(Lond), FRCPCH(UK),
FSLCPaed, FCCP, Hony. FRCPCH(UK), Hony. FCGP(SL)
Specialist Consultant Paediatrician and Honorary Senior Fellow,
Postgraduate Institute of Medicine, University of Colombo, Sri Lanka.
Features
Governance, growth and our regional moment:Why Sri Lanka must choose wisely
The recent disclosure of a substantial internal fraud at National Development Bank has understandably unsettled the financial community. What began as a relatively contained incident has since been revised upwards, revealing a scheme that operated over an extended period within a specific operational area. To their credit, both the bank and the Central Bank of Sri Lanka responded with speed. Staff were suspended, arrests followed, an independent forensic review was commissioned, and clear assurances were given that customer funds remained secure. The institution’s capital and liquidity positions continue to meet regulatory requirements, and day to day operations have not been disrupted.
Yet it would be a mistake to view this as an isolated operational error at a single respected institution. When a fraud of this magnitude, equivalent to more than a year’s profit for the bank, emerges within one of our most established listed companies, the implications extend well beyond the banking sector. It prompts a necessary and uncomfortable question. Are we truly strengthening the foundations of our economy so that every part of our society can operate with the integrity and confidence that sustainable progress demands?
Banking sits at the heart of any modern economy. It channels savings into investment, supports enterprise, and underpins household security. When even a leading institution reveals weaknesses in internal controls, risk oversight or governance culture, the signal to international observers is difficult to ignore. It suggests that the financial system upon which growth depends may not yet possess the resilience we aspire to project. If institutions that have undergone significant reform since 2022 can still experience such failures, what assurance can investors reasonably expect in other sectors of our economy? At a time when Sri Lanka needs to demonstrate strength and reliability, perceptions of fragility carry a heavy cost.
This matters profoundly because a genuine window of opportunity is now opening. Geopolitical shifts in the Middle East and beyond are prompting global investors and entrepreneurs to seek stable, well governed destinations for capital and talent. Sri Lanka possesses distinct advantages. Our geographical position offers natural connectivity. We have invested in critical infrastructure, including two major ports, international airports and strategic energy reserves. In an era where businesses prioritise rule of law, institutional predictability and sound fundamentals, our potential alignment with these criteria is significant. However, high profile governance failures at this precise moment risk undermining that narrative before it can gain meaningful traction.
The stakes are equally significant for initiatives such as the Port City Colombo. With substantial projects now approved, foreign investment commitments secured and early construction underway, this endeavour is moving from concept to delivery. Yet persistent concerns about governance standards in our established companies can act as a drag on investor sentiment. The confidence required to attract high value international tenants and long- term capital depends not only on physical infrastructure but on the perceived strength of our institutions and the consistency of our regulatory environment.
For decades, Sri Lanka has experienced growth averaging around four to five per cent per year. While this is not insignificant, it falls short of our potential, particularly when measured against the progress of our regional neighbours. India, for example, has sustained growth at roughly twice our rate for more than twenty years, driven by consistent policy execution and strengthening institutional credibility. Our own trajectory has been held back not by a lack of ideas or ambition, but by recurring shortcomings in how our major institutions are governed and held to account. The result is a cycle of unrealised potential, where promising openings are not fully converted into lasting advancement.
The current situation, though challenging, can serve as a catalyst for meaningful change. Boards of listed companies must move beyond procedural compliance to foster a genuine culture of ethical leadership, proactive risk management and zero tolerance for control failures. Regulators have an opportunity to undertake a comprehensive review of fraud prevention frameworks, whistle-blower protections and monitoring standards across the financial sector, with lessons applied to other key industries. Greater transparency in reporting material incidents and more timely forensic follow through will help rebuild trust with both domestic and international stakeholders.
Crucially, the government must tread carefully as it responds. Short term fixes or reactive measures may address immediate concerns but will not deliver the enduring stability that investors seek. What is required is a coherent long-term strategy that balances the imperative for rapid economic development with the equally vital need to conserve our natural environment and strengthen regional cooperation. Our neighbours in South Asia and Southeast Asia offer not only markets for trade and investment but also partners in shared challenges such as climate resilience, sustainable infrastructure and digital connectivity. By deepening these relationships through practical collaboration, Sri Lanka can position itself as a reliable and forward-looking partner in a dynamic region.
Sri Lanka stands at a pivotal moment. Global realignments are creating rare opportunities for capital inflows, technology transfer and new economic partnerships. Yet these opportunities will flow most readily to nations that demonstrate they can protect investor interests, uphold the rule of law and operate with predictability and transparency. If we allow governance weaknesses in our flagship institutions to persist, we risk once again watching potential pass us by.
This is a defining moment, and our response must be equally purposeful. We can treat the recent events as an unfortunate but isolated incident and return to established patterns. Or we can seize this moment as a timely reminder to strengthen every pillar of our economy, with particular attention to environmental stewardship and regional collaboration. Only by getting our house in order, with patience, consistency and a clear-eyed commitment to long term goals, can we convert today’s challenges into tomorrow’s competitive advantage. The path to sustained prosperity demands nothing less.
by Professor Chanaka Jayawardhena
Professor of Marketing
University of Surrey
Chanaka.j@gmail.com
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