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Some suggestions to assist Sri Lanka in achieving a primary balance

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An open letter to Central Bank Governor Dr. Nandalal Weerasinghe and Secretary to Ministry of Finance Mahinda Siriwardana

The writer wishes to convey his respectful recognition and highest appreciation of the lone leadership efforts taken by you both, within a rudderless and uncaring governance system, in leading the recently concluded virtual reviews with the IMF staff, seeking debt sustainability and an extended fund facility from the IMF, in the context of the serious socio-political and economic crisis that has engulfed this nation.

It is very evident that achieving a primary surplus at the earliest possible time by optimising state revenues, minimising state expenditure, eliminating all wasteful spends, inefficiencies in governance, leakages via state enterprises and corruption; and at the same time maximizing the options for deferment of all non priority spends, whilst making provision for cash transfers to the poor and vulnerable segments and enhancing spends that can generate early free cash flow returns, including investments in improving skills, efficiency/effectiveness/economy, factor productivity, strategic transition to capture emerging opportunities export market and global supply chain linkages; and creating new livelihood opportunities by attracting new foreign and local investments and upgrading Sri Lanka’s options to meet regional and global opportunities by embracing Industrial revolution 4.0 as a target; and eliminating the shortages in essential food, fuel and medicines should be the top priority of the leaders in governance.

In this connection a note titled “If I was the Minister of Finance” released before the last budget, provides some strategic options and the way forward in creating public support for implementing the essential hard decisions – refer

If I was Sri Lanka’s Finance Minister: Chandra Jayaratne

The writer is appalled by the statement made by the Prime Minister and Minister of Finance yesterday, if it means that the revised budget for 2022 merely incorporates a reduction of planned capital expenditure and includes an enhancement of salaries of state employees and expected to be followed by the private sector. Improvement of state sector efficiency and productivity; and enhancing the service delivery outcomes effectiveness; eliminating present wasteful deployment of human and financial resources are key action steps in any fiscal consolidation reforms in delivering improved growth contributions in the real sector.

A priority and essential hard decision to be taken now as a part of fiscal consolidation measures is to minimize the recurrent fiscal commitments under the budget allocations for defence, administration and non-free cash flow generating state projects and ventures; whilst improving human resource quality and productivity of state services and ventures.

All new recruitments, including those connected with replacements and existing cadre vacancies, must be signed off at the Secretary of the Ministry with the concurrence of the Secretary Finance. The present non defense cadre must be classified as essential for services being present in the offices, required but can principally operate from home with minimum travel to office, good to have and those who can be spared by appropriate working arrangements, outsourcing or systems/procedural restructure. The defence staff must be separated in to essential minimum cadre for internal security and others considered as minimum support cadre, with all those engaged in projects and other activities and in commercial activities or managing state projects being attached to the respective ventures, where they will be reclassified in a manner similar other state cadre referred to above.

All state sector employees should be required to contribute 10% of their salaries and allowances to the EPF, where upon due retirement only, they will receive the balance at credit in the EPF, together with an additional savings bonus equal to the contribution made to the EPF by the employee throughout the career. Those employees assigned to work from home will be entitled to 75 % of the salary and allowances with reimbursement of costs of periodic travel to the place of work. The balance staff members in the categories good to have and can be spared will be paid only 50 % of their salaries, when not deployed in skills development training; and if undertaking such training (the costs of which will be borne by the state) will receive 2/3 of their salaries for a maximum period of two years, unless they have been upward classified and reverted to active service with enhanced skills, secured alternative employment options or have been reabsorbed into other active duty within the state sector with enhanced skills and capabilities. At the end of the two years, this group of employees will be offered a redundancy package or will receive an allowance for the balance period of employment contract equal to 25% of the salary and allowances at the point of first discharge.

All state-owned ventures and projects and all commercial ventures of the defence sector or defence sector managed state projects will be assessed separately; during which period the salaries paid to such staff will be as in respect of other state staff described above; and within one year the viability and free cash flow generating abilities of these ventures will be assessed and decisions taken on their continuity and in regard to the deployment of the respective together with their entitlements and compensation.

All state spends on recurrent or capital budgets will be subject to strictly applied limits of authority; with all such spends in excess of set limits requiring approval of the Secretary to the Treasury or Cabinet with the concurrence of the Secretary to the Treasury. All such projects exceeding set limits are to be subjected to post audits and Parliamentary review.Wishing you both all success in your noble endeavours.

Chandra Jayaratne



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Opinion

Jeffrey: Cartoonist par excellence 

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If there exists a print media personality who does not receive the due recognition and appreciation he rightfully deserves, it undoubtedly is ‘Jeffrey’ of The Island newspaper. The works of many a journalist have been frequently highlighted and appreciated but the capabilities and efficiency of personnel of the calibre of ‘Jeffrey ‘ are, more or less, taken for granted.

In every sphere of life, professional or occupational, there are people who function, not necessarily from behind the scenes, but nevertheless perform an equally efficient service, which in all probability goes unnoticed.

To be frank, even before reading the headlines of the Newspaper, as is customary now, my eyes seek for the Cartoon of the day. Indeed, a sight for sore eyes each morning, the lovable ‘Jeffrey’ makes my day.

Suffice to say that a ‘Good Job done man’ type of occasional pat on the back, to a person who puts his very soul into his work, would touch the only place where it matters the most – his heart. If a smile could work wonders, then how much further would a word of appreciation go.

‘Jeffrey ‘ has, time and again through his  cartoons, aptly proven his innovative and creative skills to present factual depiction of current affairs, both local and global. His drawing pen effortlessly covers all boundaries, irrespective of whatever nature. On a previous occasion, too, I have openly commended his abilities, finding it difficult to fathom how he could convey pertinent incidents, normally requiring hundreds of words to express, with a single drawing.

To all intents and purposes, ‘Jeffrey ‘ ranks much higher and could be considered as a rare find when compared with the numerous others actively engaged in this particular field of professionalism.

In ‘Jeffrey ‘, The Island newspaper indeed has a Cartoonist par excellence!

Jeffrey, more power to your elbow!

WILLIAM PHILLIPSZ 

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Opinion

Anti-aging injection shows promise in re-growing knee cartilage

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Scientists at Stanford Medicine have reported a discovery that could change how arthritis and joint damage are treated. In experiments on animals and human tissue, researchers found that blocking a protein linked to aging can restore worn cartilage in the knee and prevent arthritis after injury. The treatment works not by adding stem cells, but by reprogramming existing cartilage cells to behave in a more youthful way.

In aging mice, an injectable drug rebuilt knee cartilage that normally thins with age. In mice with knee injuries similar to anterior cruciate ligament tears, the same treatment prevented the onset of arthritis, a condition that often follows such injuries in humans. A pill form of the drug is already being tested in early clinical trials for age-related muscle weakness, raising hopes that a similar approach could one day be used for joints.

Human knee cartilage removed during joint replacement surgery also responded to the treatment. When exposed to the drug in the laboratory, the tissue began forming new cartilage that resembled healthy, functional joint cartilage. These findings suggest that cartilage lost to aging or arthritis might eventually be restored through injections into the joint or even oral medication, potentially reducing the need for knee and hip replacements.

Osteoarthritis affects about one in five adults in the United States and costs tens of billions of dollars annually in direct health care spending. Despite its prevalence, there is no drug that can stop or reverse the disease. Current treatment focuses on pain relief, physical therapy and, in advanced cases, joint replacement surgery.

The new therapy targets a protein known as 15-PGDH, which increases in the body with age. The research team classifies it as a gerozyme, a type of enzyme that contributes to the gradual decline of tissue function over time. Previous work from the same group showed that rising levels of 15-PGDH weaken muscles with age. Blocking the protein restored muscle strength and endurance in older mice, while forcing young mice to produce it caused muscle loss.

Unlike muscle, bone or blood, cartilage does not rely on stem cells to repair itself. Instead, cartilage cells called chondrocytes can change their gene activity. By inhibiting 15-PGDH, researchers found that these cells reverted to a more youthful state and began producing healthy cartilage again.

“This is a new way of regenerating adult tissue, and it has significant clinical promise for treating arthritis due to aging or injury,” said Helen Blau, professor of microbiology and immunology at Stanford and a senior author of the study.

There are three main types of cartilage in the body. Elastic cartilage forms flexible structures like the outer ear. Fibrocartilage is tough and shock absorbing, found between spinal vertebrae. Hyaline cartilage, also called articular cartilage, is smooth and glossy and allows joints such as the knees, hips and shoulders to move with minimal friction. Osteoarthritis mainly affects this last type.

The disease develops when joints are stressed by aging, injury or excess weight. Chondrocytes begin releasing inflammatory molecules and breaking down collagen, the main structural protein of cartilage. As collagen is lost, cartilage thins and softens, leading to pain, swelling and stiffness. Articular cartilage rarely regenerates on its own, and attempts to find stem cells capable of rebuilding it have largely failed.

In the new study, researchers compared knee cartilage from young and old mice and found that levels of 15-PGDH roughly doubled with age. When older mice were treated with a drug that blocks the protein, either throughout the body or directly in the joint, their knee cartilage thickened and regained function. Importantly, the new tissue was true hyaline cartilage rather than weaker fibrocartilage.

The results were equally striking in injured joints. In mice with ligament injuries, repeated injections over four weeks sharply reduced the likelihood of developing arthritis. Untreated animals showed high levels of 15-PGDH and developed arthritis within weeks. Treated animals moved more normally and placed more weight on the injured limb.

Detailed analysis showed that the treatment shifted the balance of cartilage cells. Cells associated with inflammation and cartilage breakdown became less common, while cells responsible for producing healthy joint cartilage increased markedly. This change occurred without the involvement of stem cells.

When human osteoarthritic cartilage was treated in the laboratory for one week, similar changes were observed. Levels of harmful gene activity fell, and signs of cartilage regeneration appeared.

The findings are encouraging but still early. While safety trials of a 15-PGDH inhibitor for muscle weakness have shown promising results, clinical trials focused on cartilage regeneration have yet to begin. Even so, researchers are optimistic.

“Imagine regrowing existing cartilage and avoiding joint replacement,” Blau said. For millions living with joint pain and stiffness, that possibility now seems closer than ever.

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Opinion

Why is transparency underfunded?

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The RTI Commission has now confirmed what many suspected — although the RTI Act grants it independence to recruit staff, this authority is rendered toothless because the Treasury controls the purse strings. The Commission is left operating with inadequate manpower, limiting its institutional growth even as it struggles to meet rising public demand for information.

 This raises an uncomfortable question: if the Treasury can repeatedly allocate billions to loss-making State-Owned Enterprises — some of which continue to hemorrhage public funds without reform — why is adequate funding for the RTI Commission treated as optional?

 Strengthening transparency is not a luxury. It is the foundation of good governance. Every rupee spent on effective oversight helps prevent many more rupees being wasted through inefficiency, misuse, or opaque decision-making.

 In such a context, can one really fault those who argue that restricting the Commission’s resources conveniently limits disclosures that may prove politically inconvenient? Whether deliberate or not, the outcome is the same: weaker accountability, reduced public scrutiny, and a system where opacity is easier than openness.

 If the government is serious about reform, it must start by funding the institutions that keep it honest. Investing in RTI is not an expense — it is a safeguard for the public purse and the public trust.

A Concerned Citizen – Moratuwa

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