Features
Seething Global Discontents and Sri Lanka’s Tea Cup Storms
Global temperatures in January have been polar opposite – plus 50 Celsius down under in Australia, and minus 45 Celsius up here in North America (I live in Canada). Between extremes of many kinds, not just thermal, the world order stands ruptured. That was the succinct message in what was perhaps the most widely circulated and listened to speeches of this century, delivered by Canadian Prime Minister Mark Carney at Davos, in January. But all is not lost. Who seems to be getting lost in the mayhem of his own making is Donald Trump himself, the President of the United States and the world’s disruptor in chief.
After a year of issuing executive orders of all kinds, President Trump is being forced to retreat in Minneapolis, Minnesota, by the public reaction to the knee-jerk shooting and killing of two protesters in three weeks by federal immigration control and border patrol agents. The latter have been sent by the Administration to implement Trump’s orders for the arbitrary apprehension of anyone looking like an immigrant to be followed by equally arbitrary deportation.
The Proper Way
Many Americans are not opposed to deporting illegal and criminal immigrants, but all Americans like their government to do things the proper way. It is not the proper way in the US to send federal border and immigration agents to swarm urban neighbourhood streets and arrest neighbours among neighbours, children among other school children, and the employed among other employees – merely because they look different, they speak with an accent, or they are not carrying their papers on their person.
Americans generally swear by the Second Amendment and its questionably interpretive right allowing them to carry guns. But they have no tolerance when they see government forces turn their guns on fellow citizens. Trump and his administration cronies went too far and now the chickens are coming home to roost. Barely a month has passed in 2026, but Trump’s second term has already run into multiple storms.
There’s more to come between now and midterm elections in November. In the highly entrenched American system of checks and balances it is virtually impossible to throw a government out of office – lock, stock and barrel. Trump will complete his term, but more likely as a lame duck than an ordering executive. At the same time, the wounds that he has created will linger long even after he is gone.
Equally on the external front, it may not be possible to immediately reverse the disruptions caused by Trump after his term is over, but other countries and leaders are beginning to get tired of him and are looking for alternatives bypassing Trump, and by the same token bypassing the US. His attempt to do a Venezuela over Greenland has been spectacularly pushed back by a belatedly awakening Europe and America’s other western allies such as Australia, Canada and New Zealand. The wags have been quick to remind us that he is mostly a TACO (Trump always chickens out) Trump.
Grandiose Scheme or Failure
His grandiose scheme to establish a global Board of Peace with himself as lifetime Chair is all but becoming a starter. No country or leader of significant consequence has accepted the invitation. The motley collection of acceptors includes five East European countries, three Central Asian countries, eight Middle Eastern countries, two from South America, and four from Asia – Cambodia, Vietnam, Indonesia and Pakistan. The latter’s rush to join the club will foreclose any chance of India joining the Board. Countries are allowed a term of three years, but if you cough up $1 billion, could be member for life. Trump has declared himself to be lifetime chair of the Board, but he is not likely to contribute a dime. He might claim expenses, though. The Board of Peace was meant to be set up for the restoration of Gaza, but Trump has turned it into a retirement project for himself.
There is also the ridiculous absurdity of Trump continuing as chair even after his term ends and there is a different president in Washington. How will that arrangement work? If the next president turns out to be a Democrat, Trump may deny the US a seat on the board, cash or no cash. That may prove to be good for the UN and its long overdue restructuring. Although Trump’s Board has raised alarms about the threat it poses to the UN, the UN may end up being the inadvertent beneficiary of Trump’s mercurial madness.
The world is also beginning to push back on Trump’s tariffs. Rather, Trump’s tariffs are spurring other countries to forge new trade alliances and strike new trade deals. On Tuesday, India and EU struck the ‘mother of all’ trade deals between them, leaving America the poorer for it. Almost the next day , British Prime Minister Sir Keir Starmer and Chinese leader Xi Jinping announced in Beijing that they had struck a string of deals on travel, trade and investments. “Not a Big Bang Free Trade Deal” yet, but that seems to be the goal. The Canadian Prime Minister has been globe-trotting to strike trade deals and create investment opportunities. He struck a good reciprocal deal with China, is looking to India, and has turned to South Korea and a consortium from Germany and Norway to submit bids for a massive submarine supply contract supplemented by investments in manufacturing and mineral industries. The informal first-right-of-refusal privilege that US had in Canada for defense contracts is now gone, thanks to Trump.
The disruptions that Trump has created in the world order may not be permanent or wholly irreversible, as Prime Minister Carney warned at Davos. But even the short term effects of Trump’s disruptions will be significant to all of US trading partners, especially smaller countries like Sri Lanka. Regardless of what they think of Trump, leaders of governments have a responsibility to protect their citizens from the negative effects of Trump’s tariffs. That will be in addition to everything else that governments have to do even if they do not have Trump’s disruptions to deal with.
Bland or Boisterous
Against the backdrop of Trump-induced global convulsions, politics in Sri Lanka is in a very stable mode. This is not to diminish the difficulties and challenges that the vast majority of Sri Lankans are facing – in meeting their daily needs, educating their children, finding employment for the youth, accessing timely health care and securing affordable care for the elderly. The challenges are especially severe for those devastated by cyclone Ditwah.
Politically, however, the government is not being tested by the opposition. And the once boisterous JVP/NPP has suddenly become ‘bland’ in government. “Bland works,” is a Canadian political quote coined by Bill Davis a nationally prominent premier of the Province of Ontario. Davis was responding to reporters looking for dramatic politics instead of boring blandness. He was Premier of Ontario for 14 years (1971-1985) and won four consecutive elections before retiring.
No one knows for how long the NPP government will be in power in Sri Lanka or how many more elections it is going to win, but there is no question that the government is singularly focused on winning the next parliamentary election, or both the presidential and parliamentary elections – depending on what happens to the system of directly electing the executive president.
The government is trying to grow comfortable in being on cruise control to see through the next parliamentary election. Its critics on the other hand, are picking on anything that happens on any day to blame or lampoon the government. The government for all its tight control of its members and messaging is not being able to put out quickly the fires that have been erupting. There are the now recurrent matters of the two AGs (non-appointment of the Auditor General and alleged attacks on the Attorney General) and the two ERs (Educational Reform and Electricity Reform), the timing of the PC elections, and the status of constitutional changes to end the system of directly electing the president.
There are also criticisms of high profile resignations due to government interference and questionable interdictions. Two recent resignations have drawn public attention and criticism, viz., the resignation of former Air Chief Marshal Harsha Abeywickrama from his position as the Chairman of Airport & Aviation Services, and the earlier resignation of Attorney-at-Law Ramani Jayasundara from her position as Chair of the National Women’s Commission. Both have been attributed to political interferences. In addition, the interdiction of the Deputy Secretary General of Parliament has also raised eyebrows and criticisms. The interdiction in parliament could not have come at a worse time for the government – just before the passing away of Nihal Seniviratne, who had served Sri Lanka’s parliament for 33 years and the last 13 of them as its distinguished Secretary General.
In a more political sense, echoes of the old JVP boisterousness periodically emanate in the statements of the JVP veteran and current Cabinet Minister K.D. Lal Kantha. Newspaper columnists love to pounce on his provocative pronouncements and make all manner of prognostications. Mr. Lal Kantha’s latest reported musing was that: “It is true our government is in power, but we still don’t have state power. We will bring about a revolution soon and seize state power as well.”
This was after he had reportedly taken exception to filmmaker Asoka Handagama’s one liner: “governing isn’t as easy as it looks when you are in the opposition,” and allegedly threatened to answer such jibes no matter who stood in the way and what they were wearing “black robes, national suits or the saffron.” Ironically, it was the ‘saffron part’ that allegedly led to the resignation of Harsha Abeywickrama from the Airport & Aviation Services. And President AKD himself has come under fire for his Thaipongal Day statement in Jaffna about Sinhala Buddhist pilgrims travelling all the way from the south to observe sil at the Tiisa Vihare in Thayiddy, Jaffna.
The Vihare has been the subject of controversy as it was allegedly built under military auspices on the property of local people who evacuated during the war. Being a master of the spoken word, the President could have pleaded with the pilgrims to show some sensitivity and empathy to the displaced Tamil people rather than blaming them (pilgrims) of ‘hatred.’ The real villains are those who sequestered property and constructed the building, and the government should direct its ire on them and not the pilgrims.
In the scheme of global things, Sri Lanka’s political skirmishes are still teacup storms. Yet it is never nice to spill your tea in public. Public embarrassments can be politically hurtful. As for Minister Lal Kantha’s distinction between governmental mandate and state power – this is a false dichotomy in a fundamentally practical sense. He may or may not be aware of it, but this distinction quite pre-occupied the ideologues of the 1970-75 United Front government. Their answer of appointing Permanent Secretaries from outside the civil service was hardly an answer, and in some instances the cure turned out to be worse than the disease.
As well, what used to be a leftist pre-occupation is now a right wing insistence especially in America with Trump’s identification of the so called ‘deep state’ as the enemy of the people. I don’t think the NPP government wants to go there. Rather, it should show creative originality in making the state, whether deep or shallow, to be of service to the people. There is a general recognition that the government has been doing just that in providing redress to the people impacted by the cyclone. A sign of that recognition is the number of people contributing to the disaster relief fund and in substantial amounts. The government should not betray this trust but build on it for the benefit of all. And better do it blandly than boisterously.
by Rajan Philips
Features
The NPP’s pivot to the past
“The elephant is crashing about in the room, trampling people to death, and politely ignoring it is no longer an option”.
AC Grayling (To Set Prometheus Free)
Before Anura Kumara Dissanayake promised a renaissance, Maithripala Sirisena promised good governance. The restoration of the rule of law was a key aspect of the different, better Sri Lanka Candidate Sirisena (and his chief supporter Ranil Wickremesinghe) offered in 2015. In that promised land, all wrongdoers will be brought before the law; justice will cease being a luxury only the rich and the powerful can afford and become a fact of ordinary life.
Chandrika Bandaranaike Kumaratunga’s elevation of the singularly unsuitable Sarath Silva to the august position of chief justice (an appointment some sought to justify on the irrelevant grounds that he was a Buddhist) had severely undermined judicial independence. Mahinda Rajapaksa dispensed with the rule of law entirely, enshrining in its stead the law of the ruling family. The illegal (and thuggish) impeachment of chief justice Shirani Bandaranayake destroyed even the pretence of judicial independence.
Today, Namal Rajapaksa is a born-again advocate of judicial independence and the rule of law. He seems to not remember the measure of the man his father and family picked as chief justice once they booted out Shirani Bandaranayake. Just one example would suffice to demonstrate Mohan Peiris’ suitability to be enthroned as the Rajapaksa chief justice. In November 2011, responding to a question about the disappearance of Prageeth Ekneligoda, Mr Peiris told the UN Committee against Torture, “Our current information is that Mr. Ekneligoda has taken refuge in a foreign country… It is something we can be reasonably certain of” (BBC– 25.11.2011). When summoned before the Homagama magistrate court (where the Ekneligoda case was being heard), he did a volte face. He rejected “the transcript of the statement he made in Geneva last year,” and said “he could not remember the source that revealed to him the whereabouts of Prageeth Ekneligoda,” adding that “I have no information that the corpus is alive or not and I do not think the government does either and that God only knows where Ekneligoda is” (Ceylon Today – 6.6.2012).
With Mohan Peiris controlling the judiciary, the law of the Rajapaksas could stalk the land unimpeded. For many voters who flocked to Maithripala Sirisena’s side in 2015, restoring the rule of law was not an abstract slogan but a vital necessity.
The Sirisena-Wickremesinghe administration did not betray that promise. Restoring judicial independence was the best – and the most enduring – achievement of an administration which violated the bulk of its promises and betrayed a large part of its mandate.
Unlike Maithripala Sirisena, Anura Kumara Dissanayake did not inherit a debased and a cowed judiciary. He inherited a strong judiciary confident enough to take on an executive president, a judiciary unafraid to stand up to a saffron mob and put a stop to the misuse of the International Covenant on Civil and Political Rights (ICCPR) as a blasphemy law. Today, the judiciary remains one of the very few relatively undebased and uncompromised (plus popular) institutions in the country. Consequently, President Dissanayake’s task does not involve any doing. His task is to refrain from doing. His May Day remark concerning an upcoming verdict is an example of what he should not to.
While the judiciary has been a beacon of hope in dark times (despite occasional backsliding), the same cannot be said of the police, an essential component in maintaining the rule of law. If the police fail to carry out investigations impartially and speedily, if they favour powerful suspects over powerless victims, then the rule of law is violated at the foundational level, a wrong that cannot be righted even by the most independent judiciary.
Is the saffron robe above the law?
Addressing a District Development Committee meeting last week, President Dissanayake said that his government has ended the impunity of those who believed that the law would never apply to them.
Does the president live in a parallel universe where a powerful monk accused of raping a 12-year-old child is being protected by a non-divine hand?
The crime is so horrendous it would have sufficed to cause the most powerful politician or the wealthiest businessman to fall from grace. Despite the necessary presumption of innocence, any political or economic leader accused of ‘purchasing’ a small child from her parents and raping her would have been arrested immediately, kicked out from whatever positions he occupied, and ostracized societally. If the government was dragging its foot, if the police were bending the law, the opposition and the media would have been on them like a tonne of bricks. If the accused had any connection with the opposition, the government would talk of little else for days. There would be parliamentary debates and press conferences, media exposes and public protests.
Not when the accused is Pallegama Hemaratana thera, the head of Atamasthana. Then the only sound from the usually garrulous political, economic, and religious leaders is silence.
Human Rights Council and Euro-Med Human Rights Monitor have published extensive reports of how Israel systematically uses sexual violence against Palestinians ( and ). Last week, The New York Times carried its own expose detailing these atrocities. In his commentary on the findings, Nicholas Kristoff, a two-time Pulitzer winning journalist, wrote, “It’s a simple proposition: Whatever our views of the Middle East conflict, we should be able to unite in condemning rape” ().
Indeed. Similarly, we should be able to unite in condemning child abuse, whatever the identity of the alleged perpetrator. But when it comes to the Pallegama Hemaratana case, government and opposition, religious and economic leaders, most of the media and societal luminaries have united in wilful blindness and wilful deafness. Had it not been for judicial action and the effort made by the National Child Protection Authority, the monk would still be lording it over in Atamasthana. Even after the court ordered his arrest, he managed to evade prison and spend days in the Nawaloka hospital.
The Minister of Children and Women’s Affairs issued an anodyne statement after the judicial order rendered police inaction impossible. Nothing, though, from the president, the many would-be presidents, the PM, the leader of opposition, party leaders. Nothing also from the Mahanayake theros or the Cardinal. Just announce that children will be taught how to identify and protect themselves from child abusers and mark how quickly the silence ends and the cacophony of outrage begins.
In his autobiography We don’t know ourselves – A personal history of modern Ireland, Irish author Fintan O’Toole writes of a priest-teacher who abused his students, “openly, constantly, shamelessly…” The perpetrator picked his victims carefully, “the vulnerable boy, the kid who got into trouble, the kid whose father had died.” Mr O’Toole calls clerical child-abuse “…the open secret, the thing that everybody knew and nobody grasped, the truth that could be seen but never identified. We were adepts at epistemology. Most of us could walk like circus performers across tightropes that were strung between private knowledge and public acknowledgement. The only ones who ever looked down were those who were badly abused, and they became even better at suppressing reality.” For decades, individual acts of resistance went nowhere. A friend calls out the abusive priest-teacher in class. The priest ignores him and tells the class to turn to another page in the Latin grammar, which they do. “David was defeated. He just sat down again and everything went on as if his accusations had never been voiced.”
In Sri Lanka too, clerical child-abuse is obfuscated by a ‘cloud of unknowing’. Occasionally, the cloud lifts, when the victim has parents who care, who are able to protest and protect. This week, the Appeal Court confirmed the seven-year sentence passed on Hambegamuwe Chandananda by the High Court for abusing a nine-year old novice monk the day after he was ordained. If we ignore or tolerate such horrors in the name of Sasana, then we cannot be adherents of The Buddha.
Like any suspect, the monk Pallegama Hemaratana is innocent until and unless proven guilty by a court of law. But for him to be proven innocent (or guilty), there has to be a proper investigation and a speedy trial. How can there be any hope of a fair and a transparent investigation and a speedy trial given how hard various authorities tried first to keep the story under the wraps, then not to arrest the monk, and finally to keep him in the Nawaloka Hospital?
Given the range and magnitude of this preferential treatment, the involvement of the political authority up to and including the president cannot be ruled out. The Opposition’s complicity in this matter has given the government-enabled impunity wings. Suddenly, it’s as if the Rajapaksas never left.
The first step down the abyss
In his 1968 article The Territories, Israeli philosopher Yeshayahu Leibowitz issued a warning to his own countrymen and women. “Rule over the occupied territories could have social repercussions… The corruption characteristic of every colonial regime would also prevail in the state of Israel.” In his 1988 essay 40 years after, he returned to the theme. “That a subjugated people would fight for its freedom against the conquering ruler, with all the means at its disposal, without being squeamish about their legitimacy, was only to be expected. This has been true of wars of liberation of all peoples… We are creating – and have already created – a political atmosphere affecting the public as well as its individual members… In this same atmosphere one hears of cases of soldiers attempting to bury Arab boys alive; the Attorney General tries to distinguish between torture and ‘reasonable’ torture; those in charge of the army distinguish ‘burial alive’ from the burying alive of bodies without interring the heads.”
Consider the end. Resist the beginnings. In Sri Lanka, warnings about the danger of clerical impunity were made as far back as the 1930’s when the country was still Ceylon. One such Cassandra-figure who foresaw the future, whose words went unheeded was Munidasa Kumaratunga. In his 2 October 1934 editorial in Lakmini Pahana, he wrote, “If a monk engages in wrongdoing, we should not close our eyes. Instead, we should ensure that the monk is given the punishment appropriate for his wrongdoing.” Ignoring that sage warning, we developed into a fine art the devise of worshipping the robe irrespective of the quality of the wearer.
The police while treating an alleged child-rapist with kid gloves publicly arrested a monk in Rajanganaya for insulting a minister and two top cops. That differential treatment points to two dangerous developments which, if not nipped in the bud, can take us right back to the Rajapaksa days. One is the reincarnation of impunity. The other is the politicisation of the police.
The undermining of the police at the institutional level reached its zenith under Rajapaksa rule. Two examples from the South and the North would suffice to show the consequences of this debasement.
In July 2009, a coordinating secretary of the Minister of Human Rights, Mahinda Samarasinghe was abducted. The minister eventually uncovered that the victim had not been abducted by criminals (as was supposed initially) but ‘arrested’ by the police. He protested saying that the “police cannot simply barge into people’s houses without appropriate documents and take people away” (Bottom Line – 5.8.2009). The police’s response was, yes we can; the abduction was the work of a ‘special squad that had wide powers to arrest anybody in any part of the country” (The Island – 7.8.2009).
On 20 September 2011, Antony Nithyaraja, a man wanted by the police, appeared before the Jaffna magistrate through his lawyer. “The Magistrate after considering the police submissions and court documents released him. However, seven police officers in civilian clothes arrested him and started beating Antony in the presence of the Magistrate, lawyers, court staff and a large number of people. He was dragged to the Jaffna Headquarters Police Station for detention” (Asian Human Rights Commission – 23.9.2011).
The police could take the law into their own hands because the rulers created an enabling environment for such illegalities. The rot was begun by politicians, and can only be ended by politicians. Reforming the police was a key promise of Maithripala Sirisena in 2015 and Anura Kumara Dissanayake in 2024. Mr Sirisena broke it. Mr Dissanayake is breaking it. The carcinogen has returned to the body.
by Tisaranee Gunasekara ✍️
Features
Cinnamon Tea Stick project aims to reprice Lanka’s tea economy
On a humid tea-growing slope in Sri Lanka’s south-western highlands, where mist drifts over the edges of the Sinharaja Forest Reserve, a quiet experiment is attempting to reimagine one of the country’s most enduring export lifelines.
For generations, tea has been both livelihood and legacy for thousands of smallholders across Sri Lanka. Yet beneath the global reputation of Ceylon Tea lies a persistent grievance. Growers say their earnings have remained largely stagnant even as value-added tea products fetch premium prices in overseas markets.
It is against this backdrop that entrepreneur Sarathchandra Ramanayake is promoting a new product he believes could shift more value back to the farmer. The product is called the Cinnamon Green Tea Stick, designed as a portable, bag-free infusion format aimed at premium and health-conscious consumers.
World Tea Day, observed on the 21st of this month, adds context to a wider debate about who benefits most from the global tea economy, the planter or the processor.
Ramanayake’s proposal is ambitious. He argues that while tea leaves currently fetch modest farm-gate prices, a redesigned value chain built around specialty processing could generate significantly higher returns. In his model, a kilo of finished product could translate into substantially improved earnings for growers, particularly through export-oriented niche markets.
He said the aim is to move away from bulk commodity pricing and toward value-driven tea consumption. The concept replaces conventional tea bags with a solid stick format infused with cinnamon, sourced from Sri Lanka’s spice-growing regions.
The Kalawana area in the Ratnapura District, where small tea holdings dominate the agricultural landscape, has been identified as a potential production base. In these communities, tea remains the backbone of rural livelihoods and sustains entire families.
Ramanayake said the initiative is not intended to replace traditional supply chains but to complement them. Farmers would continue supplying factories while also contributing selected high-quality leaves for the new production process.
Regulatory approval has been obtained under handmade tea production guidelines from the Tea Board, and a patent application has been submitted under intellectual property provisions.
Early signs of commercial interest are emerging. According to Ramanayake, small export orders have already been received from markets including the United Kingdom, suggesting tentative international interest in the product’s positioning.
The project also highlights long-standing structural issues within Sri Lanka’s tea economy, where value addition, branding and export margins are often concentrated far away from the farmer who produces the leaf.
Ramanayake’s pitch is both economic and social. By incorporating cinnamon, another of Sri Lanka’s globally recognised agricultural exports, the product also seeks to strengthen rural spice growers and diversify farm-level income.
Still, questions remain over whether such boutique innovations can meaningfully shift earnings at scale in an industry shaped by established auction systems and large processors.
For now, the Cinnamon Green Tea Stick sits at the intersection of tradition and innovation, carrying an ambition to reprice the leaf, reframe the farmer’s role and reimagine Sri Lanka’s iconic tea industry for a changing global market.
Text and Pix By Upendra Priyankara Jathungama ✍️
Features
Admitting a New Investor – Lessons from Dankotuwa – Episode 5
LESSONS FROM MY CAREER: SYNTHESISING MANAGEMENT THEORY WITH PRACTICE – PART 37
In today’s episode, I will relate several incidents from my final years at Dankotuwa Porcelain and the lessons I learned from them. Looking back now, I realise that these years taught me not only about management, finance, labour relations, and corporate survival, but also about human emotions, loyalty, fear, stubbornness, and resilience. They also marked the gradual end of a very long line of executive appointments that had consumed most of my adult life.
The contract labour issue
Because of the uncertainty of export demand, we had adopted a flexible system of recruiting some employees on fixed-term contracts or through labour suppliers. However, unlike many organisations, we took great care to ensure that these employees were not treated as second-class workers. In practice, they enjoyed almost all the benefits of permanent employees. If they served beyond a stipulated period, they were entitled to gratuity as well. We also had to comply with stringent labour and ethical compliance standards imposed by our foreign buyers, many of whom conducted regular audits.
A group of these employees had completed their two-year fixed-term contracts. Due to the uncertain external environment and fluctuating orders, we were unable to offer permanency. Instead, we offered another fixed-term contract for two years.
To our surprise, all of them refused and wanted permanent jobs which were too risky to offer in a volatile environment.
Despite repeated discussions and assurances from the Head of Human Resources, they insisted on nothing short of permanency. They would not budge. Finally, and very reluctantly, I instructed security not to permit them into the premises from the following day, because technically their contracts had expired.
The next morning, the entire group gathered outside the gate. They remained there until around ten o’clock before dispersing. Later, I heard that they were gathering at the residence of a Member of Parliament who lived nearby. This continued for several days.
The MP telephoned me repeatedly and urged me to make them permanent. I refused. The company simply could not absorb that level of rigidity at such an uncertain time. Then matters took an ugly turn.
One morning, some members of the group harassed the Chief Operating Officer while he was entering the premises. They sat on the bonnet of his car and forcibly opened the door. Security identified the main culprits immediately. I made up my mind that, regardless of future developments, those directly involved in intimidation and misconduct would never be taken back.
After nearly a month, the MP contacted me again. He said the matter had become a stalemate and that the group was now willing to accept the original contract terms. I replied immediately: “We now have only one-year contracts available. Anyone interested may report for work.” Some accepted. Others stubbornly refused.
Later, a few of those who had not been re-employed met me privately. They admitted they had been inexperienced young men and women who had merely followed the advice of union leaders. They confessed that it was the unions that had encouraged them to reject the original offer and even urged them to obstruct the COO’s vehicle. They pleaded with me to show mercy, saying they had been misled.
I genuinely felt sorry for them. But I stood firm.
Management sometimes requires compassion, but it also requires consistency. If discipline collapses, organisations collapse soon after.
The incident reinforced one of the most important lessons I learned in labour relations: leaders must distinguish between firmness and cruelty. A manager who constantly bends under pressure may temporarily avoid conflict, but in the long run loses credibility and control.
Thoughts of Retirement
By this time, I was just past 60 years of age. The stress of corporate life had begun taking a visible toll on my health. I often recalled my earlier days at the Employees’ Trust Fund under President Ranasinghe Premadasa, when relentless pressure had caused severe gastritis and ulcers. I still remember how those symptoms vanished within days of leaving the ETF.
I began dreaming of retirement, peace, and perhaps a quieter life devoted to agriculture, which had always fascinated me. But the Japanese directors would hear none of it.
They told me that in Japan, life begins at sixty. They pointed out that many Chairmen—Kaicho, as they are called in Japan—continue well into their seventies. One of the local directors was even sent to meet me personally and persuade me to abandon thoughts of retirement.
So I remained. The COLA problem
One of our biggest internal challenges was the Cost of Living Allowance (COLA) system that had been introduced years earlier. During periods of high inflation, it spiralled out of control. In some months, increases amounted to nearly one thousand rupees—a very substantial figure at that time.
No other industry was granting such increases monthly.
The situation became unsustainable. Worse still, the COLA had been incorporated into calculations for overtime, provident fund contributions, and other benefits. The compounding effect was enormous. We were unable to correct this mistake at the current time.
After prolonged discussions with the unions, we finally managed to restructure the arrangement. The frozen COLA and increases were consolidated into the basic salary structure.
I regarded this as a major breakthrough.
The Labour Department admitted privately that mistakes had been made by the company when the scheme was originally designed, but said nothing could legally be altered retrospectively.
This episode taught me another important lesson: poorly designed compensation systems can haunt organisations for decades. A Board and Chairman must examine compensation schemes very carefully before implementation. A benefit introduced during prosperous times may become a crushing burden during difficult periods.
The search for a new investor
The Japanese shareholders eventually made it clear that they were unwilling to invest further funds into the company. A new investor had to be found if the company was to survive.
Once again, my retirement plans were postponed. The Board insisted that I remain until a suitable investor was secured.
One prospective investor came close to finalising a deal but withdrew suddenly due to uncertainty surrounding the GSP+ concession. Another investor emerged later, but with very strict conditions. One of their key demands was a freeze on salaries and allowances for three years. Negotiations with the unions dragged on for days and weeks. At times, it appeared we were on the verge of success. Then suddenly the unions would withdraw cooperation.
Meanwhile, our financial position was deteriorating rapidly. The Head of Finance confirmed in writing that we could no longer meet obligations as they fell due.
I realised we had reached a dangerous legal and ethical point.
Under the Companies Act, if directors continue operating while knowing the company is insolvent, they may become personally liable for further erosion of assets. This was no longer merely a corporate issue—it threatened my own personal assets accumulated over a lifetime.
I informed the Board that we had no option but to seriously consider winding up the company. The local directors agreed. The Japanese directors requested one week to obtain instructions from Tokyo.
Because of Stock Exchange requirements, we made a disclosure to the Colombo Stock Exchange regarding the possible winding up.
That announcement changed everything.
Copies were displayed throughout the factory and office. Over the weekend, I was inundated with telephone calls from employees.
Some pleaded emotionally with me to save the company. Many had spent their entire working lives there and felt deeply attached to the factory. One group telephoned to say they were conducting a Bodhi pooja at a temple for the company’s survival. Another group called from a church where special prayers were being offered.
Those calls affected me deeply. To all of them, however, I gave the same answer:
“The future of the company is in your hands. If the investor’s conditions are accepted, the company can survive.”
The Minister’s intervention
On Sunday, I received a call from Minister Anura Priyadarshana Yapa asking me to come to his residence immediately.
I went with the COO and found that he had also summoned the General Manager of Noritake Porcelain, whom he knew personally. After hearing my explanation, the Minister called for the union representatives as well.
We waited several hours for them to arrive. During that waiting period, the Minister spoke candidly about politics, privatisation, nationalisation, and the mistakes successive governments had made. It was an unexpectedly educational afternoon.
When the unions finally arrived, the Minister was direct and blunt.
He told them that many workers came from his electorate and that if the factory closed, they should not expect him to find employment for them elsewhere.
The mood changed.
After lengthy discussion, the unions agreed in principle, though they requested a small amendment to the proposed terms. The Minister supported their request.
I said I could not promise anything but would speak to the investor. Fortunately, after difficult negotiations, the investor agreed.
On Tuesday, we met at the Labour Department and signed the settlement. We then informed the stock exchange that an agreement had been successfully reached.
The sense of relief was immense.
The SEC hearing
Even after securing the investor, another obstacle remained. Since the investment involved a fresh issue of shares, approval from the Securities and Exchange Commission of Sri Lanka was required.
That process became another nightmare.
The agreed share price had been based on the prevailing market price, but speculation had driven the market upward rapidly. During the hearing, I faced intense questioning regarding the pricing.
I explained that we could not ethically change the agreed terms after giving our word. More importantly, I stressed that this was the only serious investor available. Losing them could doom the company.
I made a detailed presentation supported by charts and figures. I also spoke frankly.
I admitted that I was suffering sleepless nights worrying about the company’s future.
After the hearing, I stepped outside exhausted and had barely begun packing my laptop when I was summoned back in.
As I entered, the Chairman smiled and said: “Mr. Wijesinha, you can sleep tonight. We have approved your proposal.”
And indeed, that night, I slept peacefully.
Retirement at last
The new investors eventually assumed control. Initially there were difficulties because they came from strong financial and investment backgrounds and required time to understand manufacturing operations and export markets. I personally introduced them to foreign buyers to help them understand the realities of the industry.
The Japanese shareholders became minority stakeholders.
At last, I felt the time had truly come to retire. The new investors requested that I remain for another year to help stabilise the transition. I agreed.
Finally, on June 30, 2012, I retired with mixed feelings.
I had enjoyed the challenges enormously, but they had undeniably affected my health. Yet the experiences proved invaluable later when I served on many Boards. I realised that Dankotuwa had excellent systems, disciplined processes, and an outstanding product. The difficulty was not inefficiency. It was surviving intense global competition in a highly unforgiving industry.
Looking back now, I realise that management theories often sound neat and logical in classrooms and seminars. Real life is rarely so tidy. In practice, leadership involves balancing compassion with discipline, ethics with survival, and long-term strategy with short-term crises.
Perhaps the greatest lesson I learned at Dankotuwa was this: organisations are not saved by systems alone. They are saved by people—their sacrifices, emotions, loyalty, courage, and sometimes even their prayers.
More lessons from my Board experiences will follow in future episodes.
(Sunil G. Wijesinha is a Consultant on Productivity and Japanese Management Techniques
Former Chairman / Director of several listed and unlisted companies
Recipient of the APO Regional Award for Promoting Productivity in the Asia-Pacific Region
Recipient of the Order of the Rising Sun, Gold and Silver Rays – Government of Japan
Email: bizex.seminarsandconsulting@gmail.com)
By Sunil G. Wijesinha ✍️
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