Editorial
SOEs and sharpies
Tuesday 4th April, 2023
Sri Lanka Telecom workers downed tools yesterday in protest against the proposed divestiture of their institution. Their counterparts in other state-owned enterprises (SOEs), earmarked for privatisation under the guise of restructuring, are also up in arms. Their industrial action is fraught with the danger of snowballing into a general strike unless their grievances are redressed urgently.
The government is apparently labouring under the delusion that it will be able to intimidate the protesting workers into submission with the help of the police, the military and the newly-established ‘iron-bar brigade’. Let it be warned that it is inviting trouble.
The Rajapaksa-Wickremesinghe government insists that the state should not be involved in business activities; it must therefore be divested of all SOEs. Some ruling party nabobs have sought to support their argument against the SOEs by citing the privatisation of Air India as an example. But the fact remains that the energy behemoth, Indian Oil Company (IOC), which is on the march overseas, is an SOE.
The IMF eLibrary offers some interesting reading materials on the Indian SOEs. Among them is a working paper, India’s State-Owned Enterprises (2022). It informs us that India’s SOEs account for 22 percent of GDP in total assets––comparable to other G-20 countries.
Thus, it may be seen that the overall failure of SOEs here is due to unbridled politicisation, waste, corruption and mismanagement, and the fault lies in those who have been at the levers of power during the last several decades. If experts of integrity had been appointed to the key positions in Sri Lanka’s SOEs, and given a free hand, those outfits would have earned profits instead of contributing to the current economic crisis, and perhaps the need for the country to seek IMF assistance would not have arisen. The blame for ruining the local SOEs, whose raison d’etre has been to provide the supporters of governments in power with sinecures should be apportioned to all parties that have ruled this country, especially the UNP, the SLFP and the SLPP.
The fact that the incumbent regime consisting of the UNP, the SLFP and the SLPP is in overdrive to sell the SOEs on the grounds that they are in the red and not economically viable is a damning indictment on its leaders, scilicet President Ranil Wickremesinghe, former President Mahinda Rajapaksa, former Finance Minister Basil Rajapaksa and Prime Minister Dinesh Gunawardena. The less said about former President Gotabaya Rajapaksa, the better! Ex-President Maithripala Sirisena has sought to absolve himself of the blame for the current economic crisis, but on his watch, too, massive foreign loans were obtained and corrupt deals cut at the expense of the state coffers. He has not joined the government, but is making overtures to the SLPP-UNP combine, which is engaged in political kerb-crawling as it were. These self-righteous leaders are also directly responsible for the present economic meltdown, which has resulted from haphazard borrowings from both internal and external sources, corruption, economic mismanagement and the theft of public funds over the years.
One may recall that a seven-storeyed building collapsed, killing two persons and injuring 21 others, at Wellawatta, in 2017. Legal action was promptly taken against those who were responsible for the tragedy. But, strangely, no such action was taken when the country’s economy collapsed. Instead, those who caused the current economic catastrophe have been allowed to undertake to rebuild it! This is like a gang of rapists being entrusted with the custody of their victim so that they could continue to abuse her!
At the rate the failed leaders of the current dispensation are going about the fire sale of state assets, the country will be left without anything to sell in case of another economic crisis, the possibility of which cannot be ruled out. So, this being our last chance to come out of the economic crisis, the task of reviving the economy should be entrusted to a team of honest, competent persons, and certainly not a bunch of failed, corrupt sharpies who have bankrupted the country. Hence the demand that a snap general election be held soon for the people to decide who should handle the economy has come to be widely considered prudent and timely.
Editorial
When the self-righteous turn unspeakably brutal
Friday 6th March, 2026
Only about 35 crew members of an Iranian frigate survived a torpedo attack by the US, off Galle, on Wednesday. More than 100 Iranians are believed to be dead. The Sri Lanka Navy and Air Force rescued the survivors and brought ashore about 85 bodies of the victims of the US attack. The sinking of the Iranian naval vessel, the IRIS Dena, which was on a non-combat mission, and the brutal act of killing so many naval personnel, thousands of kilometres away from the conflict zone, must be condemned unreservedly.
The NPP government led by the JVP, which would condemn the US and the western bloc at the drop of a hat during its Opposition days, has not explicitly criticised Wednesday’s incident. The Opposition yesterday asked in Parliament whether the Iranian vessel had come under attack while waiting for permission to reach the Galle harbour. Its question went unanswered. The government resorted to prevarication.
It is believed that the US did not inform India of its move to launch Wednesday’s attack in the Indian Ocean. The sinking of the IRIS Dena, which was Indian Navy’s guest, has become not only a huge embarrassment but also as a strategic concern to New Delhi, for the attack was carried out in an area where India projects its dominance as a regional leader. Has a Quad member got short shrift from the US?
Most of all, the IRIS Dena was returning from India, where it took part in an international fleet review, together with vessels from 40 other nations including the US and Russia. The naval exercise was conducted in Visakhapatnam, where the Indian Navy’s Eastern Naval Command is headquartered. This has made the sinking of the IRIS Dena and the killing of its crew members even more unacceptable. Strangely, India has refrained from explicitly condemning the incident.
If the US thinks Iranian assets anywhere in the world are legitimate targets, can Iran be blamed for adopting a similar approach, in dealing with the US and its interests? The Middle East conflict is not going to end in a few weeks or months with the conclusion of the ongoing US-Israeli bombing spree. Iran has vowed to take revenge.
Much has been spoken about the Indian Ocean as a Zone of Peace during the past five decades or so, but it is fast becoming a conflict zone for all intents and purposes. The peace-zone doctrine is based on several core principles such as demilitarisation, non-aggression, freedom of navigation, removal of foreign bases, regional cooperation, and the promotion of international peace and security. It was intended to prevent smaller states from being dragged into conflicts that are not of their own making and preserve regional stability. Wednesday’s US submarine attack in Sri Lanka’s exclusive economic zone should be viewed against the backdrop of the Indian Ocean peace zone concept.
The expansion by the US of the theatre of its current military operations against Iran beyond the Gulf region and the presence of a US submarine in Sri Lanka’s exclusive economic zone pose a serious threat to international trade routes in this part of the world. This is why India’s position on the issue of offensive US military action in the Indian Ocean matters.
The NPP government also gave evasive answers when the Opposition demanded to know whether another Iranian naval ship in Sri Lanka’s exclusive economic zone was also in danger, and whether it would be given permission to enter Sri Lanka’s territorial waters. The civilised world must help Sri Lanka ensure that another Iranian vessel in imminent danger is not left to its fate and condemn the brutality of the self-righteous unequivocally.
Editorial
From ‘Granary of the East’ to a mere hunduwa
Thursday 5th March, 2026
There was a time when Sri Lanka was known the world over as the Granary of the East. Ancient rulers made selfless sacrifices to enable it to achieve and sustain self-sufficiency in food, especially rice. Alas, it has today become a hunduwa (a small traditional rice-measuring cup), according to its current Head of State himself.
On Tuesday, President Anura Kumara Dissanayake (AKD) caused quite a stir by referring to Sri Lanka as a hunduwa in a bid to drive a point home in Parliament. Opposition politicians let out howls of protests, condemning him for disparaging the country. Their ruling party counterparts, true to form, did their best to obfuscate the issue and defend their leader.
If the Granary of the East has ended up as a mere hunduwa, as President AKD says, then the blame for its retrogression should be apportioned to its leaders, both past and present. All of them secured power by promising to usher in good governance and develop the country, but they conveniently reneged on their promises.
The JVP-led NPP came to power on an anti-corruption platform, claiming that the leaders of all previous governments had institutionalised waste and corruption among other things, and the post-Independence era had been a 76-year curse, which had to be broken. Its campaign slogan struck a responsive chord with the resentful public and helped it obtain a two-thirds majority in Parliament to eliminate the scourge of corruption. One cannot but agree with President AKD that previous governments were notorious for corruption, and the corrupt elements currently in the Opposition, masquerading as good governance campaigners must be brought to justice. Similarly, the incumbent government must make a serious effort to rid itself of corruption, which is eating into its vitals.
US President Donald Trump’s Operation Epic Fury (or Epstein Fury?) against Iran, its economic fallout, and the brouhaha over hunduwa have eclipsed a mega coal scam here. Opposition Leader Sajith Premadasa has told Parliament that the government has resorted to emergency purchases of coal amounting to five shipments to meet a power generation shortfall caused by nine low-grade coal shipments. The country has already lost about Rs. 9 billion due to the coal scam, according to the Opposition. The JVP-NPP government has made a mockery of its commitment to upholding accountability by trying to cover up the coal scandal.
As for the hunduwa debate, a country with a patriotic, visionary leadership can achieve progress, overcoming challenges arising from territorial and resource constraints. This has been the secret behind Singapore’s success. Had Lee Kuan Yew (LKY), leading a city state with limited resources, let an inferiority complex weigh him down, Singapore would still have been lagging behind Sri Lanka. Opinion may be divided on the methods used by LKY to achieve his goals, but the leaders of the developing countries ought to emulate his strong leadership and unwavering commitment to accountability and development.
One is reminded of what LKY said about ministers and officials in this part of the world. In his widely read book, From Third World to First, he has said: “The higher they are, the bigger their homes and more numerous their wives, concubines, or mistresses, all bedecked in jewellery appropriate to the power and position of their men. Singaporeans who do business in these countries have to take care not to bring home such practices.” When one sees Sri Lankan politicians and bureaucrats enriching themselves and living the life of Riley, one remembers LKY’s memorable words.
All Singaporean politicians who did not heed LKY’s aforesaid warning were severely dealt with. The fate that befell Teh Cheang Wan, the Minister for National Development, is a case in point. When the CPIB (Corrupt Practices Investigation Bureau) launched a probe into an allegation of bribery against Wan in the mid-1980s, he sought to meet LKY, who refused to see him until the investigation was over. Wan took his own life. In 2023, LKY’s son, Prime Minister Lee Hsien Loong, allowed the CPIB to arrest his Transport Minister, S. Iswaran, over a top-level corruption probe. Iswaran was imprisoned after he pleaded guilty to accepting gifts worth more than S$403,000 while in office, as well as obstructing the course of justice.
As we pointed out in a previous editorial comment, if the Sri Lankan ministers had received from their leaders the same treatment as Wan and Iswaran, most of them would have been either pushing up the daisies by now or languishing behind bars; the vital sectors such as health, education, finance, agriculture, power and energy, and trade and commerce in this country would have been free from corruption, and most of all, substandard drugs and equipment would not have snuffed out so many lives in the state-run hospitals, and the issue of low-grade coal causing huge losses to the state coffers would not have arisen.
The least AKD can do to transform the hunduwa back into the Granary of East and make good on his thriving-nation-beautiful-life promise is to take a leaf out of LKY’s book on punishing the corrupt regardless of their political affiliations and pursuing development goals vigorously.
Editorial
Crisis and opportunity
Wednesday 4th March, 2026
President Anura Kumara Dissanayake yesterday spoke in Parliament about the worsening Middle East conflict and its impact on Sri Lanka. Sidestepping the hot-button issue of unprovoked US-Israeli attacks that killed Iran’s Supreme Leader Ayatollah Ali Khamenei on Saturday, he called upon all parties concerned to resolve the conflict peacefully. There was a time when the JVP would openly market its anti-American rhetoric, but under President Dissanayake’s leadership, it is wary of criticising the US for attacking a sovereign nation and killing its supreme leader. Interestingly, even UNP leader and former President Ranil Wickremesinghe, widely considered pro-American, has called US-Israeli attacks unacceptable.
President Dissanayake read the economic consequences of the Middle East conflict accurately, reassuring the public. He said the Central Bank and the Finance Ministry had been tasked with assessing the developing situation and its economic consequences and recommending how to navigate issues affecting Sri Lanka. It is said that in facing any conflict, one should expect the best and prepare for the worst.
The first casualty of any conflict in the Middle East region is the global oil supply. Iran has closed the Strait of Hormuz, located in its territorial waters, and threatened to attack all vessels that pass through it. This is bound to affect 20% of the global oil supply. Even before the closure of that vital sea route, Sri Lankans went on a fuel panic buying spree, causing long lines of vehicles outside filling stations. President Dissanayake referred to fuel queues in his speech, and assured the public that there would be no fuel shortage.
It is hoped that the government will be able to formulate a robust strategy to face any eventuality, with the Middle East conflict showing signs of spreading across the region. Sri Lankan economy is likely to receive multiple shocks, such as decreases in remittances and a decline in export earnings. The success of a national strategy to weather a mega crisis hinges on cooperation among political parties, especially in Parliament. Thankfully, the current Opposition has been acting responsibly during the past several days, without trying to aggravate the panic buying of fuel in sharp contrast to the manner in which the JVP instigated protests during the 2022 fuel crisis.
Revealing that sufficient fuel stocks were currently available and more oil shipments were on the way, President Dissanayake lamented the limited fuel storage facilities in Sri Lanka. This situation has come about because successive governments have not cared to develop the Trinco oil tank farm as a national priority. Only a section of the 99-tank complex built during World War II has been developed. According to media reports, 14 tanks have been given to Indian Oil Corporation (IOC); 61 are to be developed as a joint venture between the CPC and the IOC. The CPC owns 24 tanks with a capacity of about 10,000 MT each.
There have been only half-hearted efforts to develop the Trinco tanks owned by the CPC. It is up to the NPP government to expedite the development of these facilities and increase the country’s petroleum storage capacity significantly to face global supply disruptions and price escalations. After all, President Dissanayake, during the 2024 presidential election campaign, rightly flayed previous governments for their failure to make use of the Trinco oil tanks and promised to develop them under an NPP government.
Meanwhile, Sri Lanka is now paying the price for ignoring the wise counsel of renewable energy experts who have been striving to knock some sense into successive governments, but in vain. If their advice had been heeded and steps taken to lessen the country’s fossil fuel dependence, we would have gained tremendously.
One can only hope that the current crisis will strengthen Sri Lanka’s resolve to strategise and invest more in producing renewable energy, especially by expanding solar power generation, to overcome formidable challenges arising from escalating fossil fuel prices and supply disruptions. At the same time, the government should incentivise the use of electric vehicles with higher tax concessions to reduce the country’s reliance on fossil fuel imports and promote a cleaner transport sector.
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