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Midweek Review

Some thoughts on green financing options for Sri Lanka

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By Prof. Nimal Gunatilleke

This is a sequel to my earlier article, titled ‘The Sri Lankan Debt Crisis: A Layman’s Review’, which appeared in two parts on the 01st and 02nd June in The Island Midweek Review and also in the Daily Financial Times on the 06th and 07th June 2022. In the second part of that article, I highlighted some of the emerging global investment opportunities, such as Green Bonds that are being made available for restructuring sovereign debts in this green economic era.

In this article, I would like to draw attention to the additional green financing options that are currently available for prospective investors, based on recent successful examples from other countries. These green financing opportunities will only be available once the debts have been brought to a sustainable level, as dictated by the IMF. However, Sri Lanka is currently wrestling desperately with the task of securing bridging finance, either as donations or loans to meet her day-to-day needs spilled over to the streets, day in, day out.

Among the loans received in the form of fuel, food, and medical supplies, the USD 500 million loan through the Indian Credit line (more credit under negotiation) and more recently pledged loan of USD 120 million (and perhaps, additional grants) from the US stand out prominently. It is a relief to learn that several other countries and international agencies too have come forward to help Sri Lanka in her critical stage of the balance of payment crisis. All these loans being given in the name of bridge financing during this interim period will also be added on to the existing debt burden during the restructuring process. In the meantime, Sri Lanka needs to restructure its foreign debt or make substantial progress towards that goal before the IMF agrees to lend money.

Still being categorized as a Middle-Income Country, Sri Lanka is not entitled to interventions focused on providing debt relief to the Low-Income Countries, usually given on greater concessionary terms. The IMF intervention in this instance, as it happened 16 occasions earlier, since our independence, may once again recommend, among other solutions, outright sale, lease, or pawn of our family silver – the valuable real estate assets – as a stopgap fix to the debt problem. Consequently, IMF intervention alone is least likely to be a sustainable solution for our chronic trade deficit problem because Sri Lanka has been consistently spending more forex than it earns over the past decades. In all probability, this trend may continue further since the economically sound options for bridging the trade deficit are socially more painful and therefore politically inauspicious. The current mayhem that the country is going through and led by deceitful political forces would only lead to worsening the situation, further.

As we all are now well aware, we had been borrowing forex from the international capital markets to meet the deficit to balance the national budget each year over the past several decades, which obviously cannot keep going forever. If we continue to have this ‘business as usual’ attitude, the country will simply pile up bigger and bigger debts to pay back in the future despite IMF interventions. This is where the selling of family silver stealthily sneaks in.

Fortunately, however, there are new green financing opportunities emerging as a unified global response to the climate change mitigation and adaptation in transforming International Sovereign Bonds into more climate-friendly investments such as green bonds, climate bonds, sustainability bonds, payment for ecosystem services, debt for climate swaps, etc., under Paris agreement on climate change.

Green bonds

Although Sri Lanka has been quite late to enter the globally booming green bond market, our nearest neighbour, India has been expanding its green bond market vigorously over the recent years. This includes several projects they have supported in Sri Lanka as well, under the green bond label since 2015. Amongst them, the EXIM Bank of India, the closest proxy to the Sovereign in International Debt Markets in India, had supported three projects in Sri Lanka for the purpose of laying railway tracks from i) Omanthai to Pallai, ii) Pallai to Kankasanturai, and iii) Madhu church -Talaimannar sectors under eligibility in the mass transportation sector, since 2015 ().

The recently inked Sampur Solar Energy project by the National Thermal Power Corporation of India, and even the proposed Mannar and Pooneryn wind and solar energy projects to be funded by the Indian investors may be coming under similar green or other such bond schemes. On the other hand, the only Sri Lankan green finance venture that I came across so far in literature is the one in which the Seylan Bank PLC has arranged a Green Bond for financing several renewable energy projects in Sri Lanka. The global and regional appetite for green bond issuance is on the increase and it is high time that Sri Lankan investors too, evoke greater attention towards it.

Sri Lanka Road Map for Green Financing

The Sri Lankan Road Map for sustainable/green financing has been prepared by the Central Bank of Sri Lanka with technical assistance from the International Finance Corporation through a consultative process for the purpose of promoting sustainable/green finance options in Sri Lanka. In addition, the Central Bank of Sri Lanka has already prepared a Biodiversity Finance Plan (BIOFIN 2018 – 2024) to move towards sustainable financing solutions with an aggregate resource mobilization target ranging from LKR 20 billion – 46.7 billion.

The BIOFIN Plan has prioritized 13 finance solutions and issuing Green Bonds is one amongst them. The generic description of Green Bonds in this plan states that issuing green bonds is a new source of financing that can mobilize a large amount of financial resources by the public sector as per the financial regulatory mechanism, subject to the country’s debt servicing capacity. Sri Lankan investors too, now have an enviable opportunity to join this lobby as partners during the restructuring process especially, in transforming the Sri Lankan Sovereign Bond debts.

Payment for Ecosystem Services (PES)

Payment for Ecosystem Services is yet another financial solution that the BIOFIN 2018-2022 Plan has put forward which it claims to be another new financing source for paying directly or indirectly for ecosystem services and negative externalities either with private or public involvement in Sri Lanka. The BIOFIN plan considers that an introduction of PES in the energy sector is important because the current modes of power generation have significant negative implications on the country’s biodiversity and ecosystem services whilst the condition of watersheds also influences power generation efficiencies, especially in hydropower. The BIOFIN plan details out the information needed for developing three different business models under the PES system (pages 28-37). They are (i) Payment for watershed management in lands above mini-hydro power plants, (ii) Payment for watershed management for hydropower generation at Moragahakanda, and, (iii) Payment for negative externalities of coal power generation.

PES for Watershed management in the Central Highlands

Management of watersheds has been recognized as a national priority for sustainable development in Sri Lanka in the most recent National Physical Planning Policy and the Plan for Sri Lanka 2017-2050 and its immediate predecessor – NPP – 2030. Both these plans have recognized the Central Highlands and the Coast Conservation Zone as fragile regions (see the figures) that need urgent conservation interventions for the sustainable development of practically the entire country.

The ‘Central Fragile Area’ is the geographic entity that consists of lands with sensitive natural ecosystems, highly vulnerable to landslides, and plays a crucial role in sustaining water resources. A major portion of these areas are located above 300 meters from mean sea level and cover the upper catchments of all major rivers on the island. Almost all major economic enterprises in Sri Lanka, including downstream irrigated agriculture and associated livelihood sustenance, hydro-power generation, and inland and coastal tourism are very much dependent upon the ecological health of this fragile region.

Therefore, the prioritization of watershed management in at least a few selected areas as a priority area under the Payment for Ecosystem Services by the BIOFIN project of the Central Bank of Sri Lanka as a start is praiseworthy. The National REDD+ Investment Framework and Action Plan (NRIFAP) 2017 and its subsequent updates including that of the Forestry Sector Master Plan for Sri Lanka 2021-2030 (still in draft) would be able to provide a strong foundation for developing investment models in this vital sphere of sustainable development.

Conversion of exotic monoculture plantations in critical watersheds into native and naturalized species mixes in these central highlands according to proven scientific guidelines would be yet another green financial proposition for both public and private sector engagement for which intriguing business models can be developed under PES schemes. We have developed two ecologically sustainable Pinus conversion models, one in the NW buffer zone of the Sinharaja World Heritage Site and the other in Peradeniya University Lower Hantana campus land. These can be scaled up into other Pinus plantations in critical watersheds of the island with public-private collaboration as Corporate Social Responsibility projects, especially in the plantation sector.

Similarly, the World Bank-funded Landscape Management Plan for Sinharaja Forest Range prepared recently is yet another superlative green financing option for such investors. (See maps)

PES for Coastal Zone Management

On the other hand, the ‘Coast Conservation Zone’, the second fragile region identified by the NPP includes the area for which boundaries have been delineated by the Coast Conservation Department under the provisions of the Coast Conservation Act No. 57 of 1981. Even though a large quantum of physical developments in Sri Lanka has been taking place in this zone, conservation of the lagoons, estuaries, swamps, riverine, and other sensitive environments, is important because of the eco-services that they provide, the attractions they have, and the ever-expanding economic activities associated with them.

The ‘Sri Lanka Coastal Zone and Coastal Resource Management Plan – 2018’ prepared by the Coast Conservation and Coastal Resource Management Department would be an ideal foundation document for developing investment and business models in this critical coastal belt that covers a circum-island coastline of 1,620 km. Due to its abundant natural resources and consequent social and economic benefits supporting millions of livelihoods, the coastal zone has experienced immense development and urbanization over the decades. This calls for the sustainable management of the coastal zone to ensure that resources are not exploited beyond their regeneration capacity and that the remaining habitats are not further degraded or destroyed.

Similar projects with appropriate business models have been developed in other regions/countries that Sri Lanka could take a cue from. They are the following:

i.) Mangrove Restoration in Senegal – The mangrove restoration project in Senegal, coordinated by the Livelihoods Carbon Fund (LCF) since 2011, aims at restoring an ecosystem that protects arable land from salinization and produces fish resources (fish, shellfish, crustaceans) and wood. With the support of the Livelihoods Carbon Fund, the mangrove restoration project in Casamance and Sine Saloum estuaries of Senegal has helped 450 local villages replant 10,415 out of the existing 185,000 hectares of mangrove, between 2009 and 2012. It stands like a rampart against climate change impacts and at the same time a nourishing ecosystem for the inhabitants. Carbon finance has enabled vulnerable communities to restore their mangroves through the commitment of private companies that have committed to investing in sustainable projects. In return for their investment in the Livelihoods-Senegal project, the companies that are supporting the Livelihoods Carbon Fund receive carbon credits with high social and environmental value to offset their CO2 emissions.

Investors in the Carbon Livelihoods Fund have provided Océanium – the local NGO with the necessary funding for replanting (population awareness, validation of scientific models, intervention logistics, etc.) and are going to continue to finance its monitoring and evaluation until 2029, for a total duration of 20 years.

The project was validated by the United Nations Framework Convention on Climate Change (UNFCCC) Board. The Project Detailed Document made by Carbon Decisions in December 2010 was audited by Ernst & Young and the Dept. of Environment in May 2011. The approval of the Senegalese authorities was obtained in March 2011 and was subject to a tripartite Memorandum of Understanding of 10 years between Livelihoods, OCEANIUM, and the Senegalese government (Ministry of Environment). The long-term impacts of the project is being measured using the ‘Sustainable Livelihoods Approach’ since 2017. ().

Lessons learned from this project would be beneficial for Sri Lanka to design her own mangrove restoration and coastal and marine conservation initiatives with a public-private partnership. These projects are already being done in an uncoordinated ad hoc manner, especially after the Tsunami event in 2004

. The Sri Lanka Coastal Zone and Coastal Resource Management Plan – 2018 prepared by the Coast Conservation and Coastal Resource Management Department would provide the necessary underpinning for the development of investment and business models for our fragile coastal zone extending over a circum-island coastline of 1,620 km.

ii.) Blue Bond Initiative of Seychelles: Seychelles is a Small Island Developing State dependent on its marine natural resources to derive its economic prosperity. In recent years there have been a decline in the fish stocks and marine resources linked to i) overexploitation of fisheries resources and subjected to environmental pollution. The benefits expected from the blue bond initiative. A blue bond was issued in 2018 for US$ 15 million over a maturity period of 10 years. Among the benefits expected were the development of a Blue Economy through sustainable use of marine resources securing private sector participation, raising awareness of the critical role of the ocean and marine resources, and the overall global need for environmental protection. (). The early indications are claimed to be very positive and there are several lessons that Sri Lanka can learn from this in designing her own blue bond initiatives.

iii.) Grain for Green Programme of China: China initiated its “Grain for Green” programme in 1999 as an ambitious conservation programme designed to mitigate and prevent flooding and soil erosion. It is an example of Payment for Ecosystem Services (PES) which is helping to solve Environmental issues in China. The programme is designed to retire farmland that is susceptible to soil erosion, although some farmers may go back to farming the land after the program ends. China started the Grain for Green program in the western parts of the country for example Shanxi Province. These areas were known for their rather poorly performing economy that was affiliated with an endangered ecological environment. The environment was being further damaged by soil erosion which was a result of cultivation on sloping land as people were changing forests into farmland. By 2010, around 15 million hectares of farmland and 17 million hectares of barren mountainous wasteland were converted back to natural vegetation (From Wikipedia, the free encyclopedia).

This project has a strong appeal for the restoration of the Central Fragile Area of Sri Lanka as recommended in the NPP 2017 – 2050. The unproductive tea lands, areas under unsustainable vegetable cultivation susceptible to excessive soil erosion and degradation, and monoculture exotic tree plantations in critical watersheds are prime candidates to be sustainably developed under appropriate PES-type business models. It is hoped that the Chinese experience and expertise in the above example would be taken on board in restructuring some of our outstanding Chinese debts.

iv.) Great Green Wall Initiative – An ambitious project partnered by the European Union and the UNCCD and implemented across 22 African countries in 2007 to restore 100 million ha of currently degraded land; sequester 250 million tons of carbon and create 10 million green jobs by 2030. More than USD 8 billion has been raised and pledged to support this game-changing initiative in the Sahel region in Africa to provide fertile land, food security, and economic opportunities for the millions and climate resilience in a region where temperatures are rising faster than anywhere else on earth ().

If the world renowned ‘ellanga’ irrigated agricultural systems (small tank cascade systems) spread across the dry zone of Sri Lanka, can be further enriched through a similar program, not only the sustainability of the agricultural heritage system but the chronic health issues currently afflicted with the farming communities could be successfully addressed. Prototype business models well supported by socio-ecological research are already available for these regions for rebuilding agricultural resilience in the Dry Zone of Sri Lanka.

Debt-for-Climate Swaps

Debt-for Climate Swaps are also emerging as yet another viable option that can generate the much-needed fiscal space for Middle-Income Countries like Sri Lanka to focus on climate ambitions and economic recovery while reducing their overall debt burdens.

A debt for climate swap is an agreement between a sovereign debtor and one or more of its international creditors by which the latter forgives all or a portion of the debtor’s external debt in exchange for a commitment by the debtor to invest, in domestic currency, in specific climate projects during a commonly agreed period. The rationale of debt swaps is that debt can be acquired at a discount. When creditors do not expect to recover the full nominal value of debts, they may be willing to accept less. In exchange for (partial) cancellation of the debt, the debtor government is prepared to mobilize the equivalent of the reduced amount in local currency for agreed purposes on agreed terms. The Debt for Climate swaps help countries struggling to service their debts to reduce the debt and free up fiscal space (cash flow) for climate-friendly investments.

Debt swaps provide opportunities for raising capital especially in low-income countries to address environmental and other policy challenges and support green growth. For the debt for climate swaps, the debtor government commits to invest the accrued savings from debt forgiveness in climate adaptation or mitigation. Debt-for-climate swaps have the potential to transform daunting debt into opportunities to reduce climate vulnerability and implement much-needed adaptation. These swaps would thus contribute to the Paris Agreement, which stipulates that developed countries should mobilize climate finance from a wide variety of sources through a variety of actions.

The potential for using debt-for-climate swaps as an innovative financial solution to the twin crises of climate change and debt distress is very high. Such debt swaps provide opportunities for raising capital in debt-stridden low-income countries to address environmental and other policy challenges and support green growth. However, only when the debt has been made sustainable, the swaps can transfer resources for climate purposes.

A number of developing countries are engaging in debt-for-climate swaps since Seychelles secured the world’s first debt-for-climate swap deal for protecting the world’s oceans with the Paris Club group of developed country creditors in 2016, aimed at ocean conservation and climate resiliency. Since then, several Small Island Developing States (SIDS), especially those in the Caribbean region too have joined this program. These countries are facing situations similar to those that we in Sri Lanka, are currently undergoing. They too are heavily indebted countries with tourism-dependent economies more recently worsened by COVID -19 pandemic and subjected to serious climate vulnerabilities.

Activities that can be funded through this debt structuring, include management of marine reserves, coral and mangrove restoration, improving marine, fisheries, and coastal policies, economic diversification, and climate resiliency of coastal communities.

Debt for Climate Swaps provide excellent opportunities for promoting climate change mitigation projects such as the accelerated phasing-out of coal power projects. Quite fortuitously, 40 countries including Sri Lanka pledged at the COP 26 meeting of the UNFCCC held in Glasgow in 2021 and also agreed not to build/fund any new coal power plants. In the light of these recent developments in relation to the UN Convention on Climate Change and the internationally binding Paris Agreement, the Long-term Generation Expansion Plan (LTGEP) for Sri Lanka may need to be reworked. This plan envisages the retirement of several thermal power plants that are likely to be taken off from operation due to their age-related mal-functioning and more importantly, the construction of two more coal-fired power plants totaling 1500MW in the late 2020s. Debt for Climate Swaps are strong candidates for facilitating the early retirement of coal/thermal power plants and investing in energy-efficient clean energy projects in Sri Lanka.

Debts for Climate Swaps are also eligible for climate change adaptation which include Nature- based Solutions that include conservation and enhancing diversity by restoration of degraded lands including wetlands. The rationale for undertaking such projects, which are often not commercially viable business models, is that their benefits, such as enhanced biodiversity, higher water tables, carbon capture, improved well-being of citizens, green jobs created, etc. far outweigh the costs involved. Their socio-economic benefits being intangible are often not captured or are externalized in standard benefit/cost analyses. However, in this Decade of Forest Restoration declared by the United Nations, such ventures partnered with developed countries are being used to reduce the debt burden of developing countries.

Conclusions

In summary, Sri Lanka has in place most of her key development strategies and plans for the next several years in conformity with major global conventions on biodiversity, climate change, and combating land degradation. They are the following:

 National Biodiversity Action plan (NBSAP 2016-2022),

 National REDD+ Investment Framework and Action Plan (NRIFAP 2018-2022),

 National Action Program for Combating Land Degradation in Sri Lanka (NAP-CLD 2015 -2024),

 National Adaptation Plan for Climate Change Impacts in Sri Lanka (2016 – 2025).

Using the information provided by these strategic action plans, the Central Bank of Sri Lanka together with Ministry of Environment has prepared a Biodiversity Finance Plan (BFP) for Sri Lanka (2018 – 2024) with 13 prioritized finance solutions some of which I have highlighted in this article. The donor agencies are also very much interested in entering into green financing partnerships with countries in need of investment capital. Therefore, every effort should be made to make this current adversity an opportunity of a lifetime.

The Prime Minister informed the parliament on 06th July 2022 that Sri Lanka is participating in the bailout negotiations with the IMF as a bankrupt country and is going into a deep recession this year and have to face current difficulties extending into 2023, as well. As such, the country needs to submit a plan on Sri Lanka’s debt sustainability separately to the IMF for which a strong political leadership to take visionary decisions is the order of the day.

At this critical juncture of our nation, it may be well worth reminding ourselves of the historic words of John F. Kennedy at his inaugural address as the 35th president of the United States in 1961‘My fellow Americans, ask not what your country can do for you – ask what you can do for your country’ which challenged every American to contribute some way to the public good. Also, what a one-time prime minister of Sri Lanka SWRD Bandaranaika wrote in his son -Anura’s album which later became a more public proclamation ‘the main duty of man is to serve man’ are words that we need to convert to deeds at this moment of despair.

This is in stark contrast to protesting with the stereotypic slogans ‘Diyaw, diyaw, diyaw’ by the politically indoctrinated trade unions and the misguided young intelligentsia at every turn during this period of despondency with much inconvenience and annoyance, in particular, to the already suffering working class people. We are in need of a socially astute political leader with a vision who can stand tall and adapt the words of JFK as ‘My fellow Sri Lankans, ask not what your country can do for you – ask what you can do for your country’ in this hour of deep political and socio-economic crisis and turmoil to steady the ship and steer it safely to calmer waters. Finding a national figure with such qualities at this moment is the Quadrillion Rupee (inflation accounted for) problem!



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Midweek Review

Rajiva on Batalanda controversy, govt.’s failure in Geneva and other matters

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Wickremesinghe responds to Hasan during the controversial interview recorded in London

Former President Ranil Wickremesinghe’s recent interview with Mehdi Hasan on Al Jazeera’s ‘Head-to-Head’ series has caused controversy, both in and outside Parliament, over the role played by Wickremesinghe in the counter-insurgency campaign in the late’80s.

The National People’s Power (NPP) seeking to exploit the developing story to its advantage has ended up with egg on its face as the ruling party couldn’t disassociate from the violent past of the JVP. The debate on the damning Presidential Commission report on Batalanda, on April 10, will remind the country of the atrocities perpetrated not only by the UNP, but as well as by the JVP.

The Island sought the views of former outspoken parliamentarian and one-time head of the Government Secretariat for Coordinating the Peace Process (SCOPP) Prof. Rajiva Wijesinha on a range of issues, with the focus on Batalanda and the failure on the part of the war-winning country to counter unsubstantiated war crimes accusations.

Q:

The former President and UNP leader Ranil Wickremesinghe’s interview with Al Jazeera exposed the pathetic failure on the part of Sri Lanka to address war crimes accusations and accountability issues. In the face of aggressive interviewer Mehdi Hasan on ‘Head-to-Head,’ Wickremesinghe struggled pathetically to counter unsubstantiated accusations. Six-time Premier Wickremesinghe who also served as President (July 2022-Sept. 2024) seemed incapable of defending the war-winning armed forces. However, the situation wouldn’t have deteriorated to such an extent if President Mahinda Rajapaksa, who gave resolute political leadership during that war, ensured a proper defence of our armed forces in its aftermath as well-choreographed LTTE supporters were well in place, with Western backing, to distort and tarnish that victory completely. As wartime Secretary General of the Government’s Secretariat for Coordinating the Peace Process (since June 2007 till the successful conclusion of the war) and Secretary to the Ministry of Disaster Management and Human Rights (since Jun 2008) what do you think of Wickremesinghe’s performance?

A:

It made him look very foolish, but this is not surprising since he has no proper answers for most of the questions put to him. Least surprising was his performance with regard to the forces, since for years he was part of the assault forces on the successful Army, and expecting him to defend them is like asking a fox to stand guard on chickens.

Q:

In spite of trying to overwhelm Wickremesinghe before a definitely pro-LTTE audience at London’s Conway Hall, Hasan further exposed the hatchet job he was doing by never referring to the fact that the UNP leader, in his capacity as the Yahapalana Premier, co-sponsored the treacherous Geneva Resolution in Oc., 2015, against one’s own victorious armed forces. Hasan, Wickremesinghe and three panelists, namely Frances Harrison, former BBC-Sri Lanka correspondent, Director of International Truth and Justice Project and author of ‘Still Counting the Dead: Survivors of Sri Lanka’s Hidden War,’ Dr. Madura Rasaratnam, Executive Director of PEARL (People for Equality and Relief in Lanka) and former UK and EU MP and Wickremesinghe’s presidential envoy, Niranjan Joseph de Silva Deva Aditya, never even once referred to India’s accountability during the programme recorded in late February but released in March. As a UPFA MP (2010-2015) in addition to have served as Peace Secretariat Chief and Secretary to the Disaster Management and Human Rights Ministry, could we discuss the issues at hand leaving India out?

A:

I would not call the interview a hatchet job since Hasan was basically concerned about Wickremesinghe’s woeful record with regard to human rights. In raising his despicable conduct under Jayewardene, Hasan clearly saw continuity, and Wickremesinghe laid himself open to this in that he nailed his colours to the Rajapaksa mast in order to become President, thus making it impossible for him to revert to his previous stance. Sadly, given how incompetent both Wickremesinghe and Rajapaksa were about defending the forces, one cannot expect foreigners to distinguish between them.

Q:

You are one of the many UPFA MPs who backed Maithripala Sirisena’s candidature at the 2015 presidential election. The Sirisena-Wickremesinghe duo perpetrated the despicable act of backing the Geneva Resolution against our armed forces and they should be held responsible for that. Having thrown your weight behind the campaign to defeat Mahinda Rajapaksa’s bid to secure a third term, did you feel betrayed by the Geneva Resolution? And if so, what should have the Yahapalana administration done?

A:

By 2014, given the total failure of the Rajapaksas to deal firmly with critiques of our forces, resolutions against us had started and were getting stronger every year. Mahinda Rajapaksa laid us open by sacking Dayan Jayatilleke who had built up a large majority to support our victory against the Tigers, and appointed someone who intrigued with the Americans. He failed to fulfil his commitments with regard to reforms and reconciliation, and allowed for wholesale plundering, so that I have no regrets about working against him at the 2015 election. But I did not expect Wickremesinghe and his cohorts to plunder, too, and ignore the Sirisena manifesto, which is why I parted company with the Yahapalanaya administration, within a couple of months.

I had expected a Sirisena administration to pursue some of the policies associated with the SLFP, but he was a fool and his mentor Chandrika was concerned only with revenge on the Rajapaksas. You cannot talk about betrayal when there was no faith in the first place. But I also blame the Rajapaksas for messing up the August election by attacking Sirisena and driving him further into Ranil’s arms, so that he was a pawn in his hands.

Q:

Have you advised President Mahinda Rajapaksa’s government how to counter unsubstantiated war crimes allegations propagated by various interested parties, particularly the UN, on the basis of the Panel of Experts (PoE) report released in March 2011? Did the government accept your suggestions/recommendations?

A:

Prof. Rajiva Wijesinha

I kept trying, but Mahinda was not interested at all, and had no idea about how to conduct international relations. Sadly, his Foreign Minister was hanging around behind Namal, and proved incapable of independent thought, in his anxiety to gain further promotion. And given that I was about the only person the international community, that was not prejudiced, took seriously – I refer to the ICRC and the Japanese with whom I continued to work, and, indeed, the Americans, until the Ambassador was bullied by her doctrinaire political affairs officer into active undermining of the Rajapaksas – there was much jealousy, so I was shut out from any influence.

But even the admirable effort, headed by Godfrey Gunatilleke, was not properly used. Mahinda Rajapaksa seemed to me more concerned with providing joy rides for people rather than serious counter measures, and representation in Geneva turned into a joke, with him even undermining Tamara Kunanayagam, who, when he supported her, scored a significant victory against the Americans, in September 2011. The Ambassador, who had been intriguing with her predecessor, then told her they would get us in March, and with a little help from their friends here, they succeeded.

Q:

As the writer pointed out in his comment on Wickremesinghe’s controversial Al Jazeera interview, the former Commander-in-Chief failed to mention critically important matters that could have countered Hasan’ s line of questioning meant to humiliate Sri Lanka?

A:

How could you have expected that, since his primary concern has always been himself, not the country, let alone the armed forces?

Q:

Do you agree that Western powers and an influential section of the international media cannot stomach Sri Lanka’s triumph over separatist Tamil terrorism?

A:

There was opposition to our victory from the start, but this was strengthened by the failure to move on reconciliation, creating the impression that the victory against the Tigers was seen by the government as a victory against Tamils. The failure of the Foreign Ministry to work with journalists was lamentable, and the few exceptions – for instance the admirable Vadivel Krishnamoorthy in Chennai or Sashikala Premawardhane in Canberra – received no support at all from the Ministry establishment.

Q:

A couple of months after the 2019 presidential election, Gotabaya Rajapaksa declared his intention to withdraw from the Geneva process. On behalf of Sri Lanka that announcement was made in Geneva by the then Foreign Minister Dinesh Gunawardena, who became the Premier during Wickremesinghe’s tenure as the President. That declaration was meant to hoodwink the Sinhala community and didn’t alter the Geneva process and even today the project is continuing. As a person who had been closely involved in the overall government response to terrorism and related matters, how do you view the measures taken during Gotabaya Rajapaksa’s short presidency to counter Geneva?

A:

What measures? I am reminded of the idiocy of the responses to the Darusman report by Basil and Gotabaya Rajapaksa, who went on ego trips and produced unreadable volumes trying to get credit for themselves as to issues of little interest to the world. They were planned in response to Darusman, but when I told Gotabaya that his effort was just a narrative of action, he said that responding to Darusman was not his intention. When I said that was necessary, he told me he had asked Chief-of-Staff Roshan Goonetilleke to do that, but Roshan said he had not been asked and had not been given any resources.

My own two short booklets which took the Darusman allegations to pieces were completely ignored by the Foreign Ministry.

Q:

Against the backdrop of the Geneva betrayal in 2015 that involved the late Minister Mangala Samaraweera, how do you view President Wickremesinghe’s response to the Geneva threat?

A: Wickremesinghe did not see Geneva as a threat at all. Who exactly is to blame for the hardening of the resolution, after our Ambassador’s efforts to moderate it, will require a straightforward narrative from the Ambassador, Ravinatha Ariyasinha, who felt badly let down by his superiors. Geneva should not be seen as a threat, since as we have seen follow through is minimal, but we should rather see it as an opportunity to put our own house in order.

Q:

President Anura Kumara Dissanayake recently questioned both the loyalty and professionalism of our armed forces credited with defeating Northern and Southern terrorism. There hadn’t been a previous occasion, a President or a Premier, under any circumstances, questioned the armed forces’ loyalty or professionalism. We cannot also forget the fact that President Dissanayake is the leader of the once proscribed JVP responsible for death and destruction during 1971 and 1987-1990 terror campaigns. Let us know of your opinion on President Dissanayake’s contentious comments on the armed forces?

A: I do not see them as contentious, I think what is seen as generalizations was critiques of elements in the forces. There have been problems, as we saw from the very different approach of Sarath Fonseka and Daya Ratnayake, with regard to civilian casualties, the latter having planned a campaign in the East which led to hardly any civilian deaths. But having monitored every day, while I headed the Peace Secretariat, all allegations, and obtained explanations of what happened from the forces, I could have proved that they were more disciplined than other forces in similar circumstances.

The violence of the JVP and the LTTE and other such groups was met with violence, but the forces observed some rules which I believe the police, much more ruthlessly politicized by Jayewardene, failed to do. The difference in behaviour between the squads led for instance by Gamini Hettiarachchi and Ronnie Goonesinghe makes this clear.

Q:

Mehdi Hasan also strenuously questioned Wickremesinghe on his role in the UNP’s counter-terror campaign during the 1987-1990 period. The British-American journalists of Indian origins attacked Wickremesinghe over the Batalanda Commission report that had dealt with extra-judicial operations carried out by police, acting on the political leadership given by Wickremesinghe. What is your position?

A:

Wickremesinghe’s use of thugs’ right through his political career is well known. I still recall my disappointment, having thought better of him, when a senior member of the UNP, who disapproved thoroughly of what Jayewardene had done to his party, told me that Wickremesinghe was not honest because he used thugs. In ‘My Fair Lady,’ the heroine talks about someone to whom gin was mother’s milk, and for Wickremesinghe violence is mother’s milk, as can be seen by the horrors he associated with.

The latest revelations about Deshabandu Tennakoon, whom he appointed IGP despite his record, makes clear his approval for extra-judicial operations.

Q:

Finally, will you explain how to counter war crimes accusations as well as allegations with regard to the counter-terror campaign in the’80s?

A:

I do not think it is possible to counter allegations about the counter-terror campaign of the eighties, since many of those allegations, starting with the Welikada Prison massacre, which Wickremesinghe’s father admitted to me the government had engendered, are quite accurate. And I should stress that the worst excesses, such as the torture and murder of Wijeyedasa Liyanaarachchi, happened under Jayewardene, since there is a tendency amongst the elite to blame Premadasa. He, to give him his due, was genuine about a ceasefire, which the JVP ignored, foolishly in my view though they may have had doubts about Ranjan Wijeratne’s bona fides.

With regard to war crimes accusations, I have shown how, in my ‘Hard Talk’ interview, which you failed to mention in describing Wickeremesinghe’s failure to respond coherently to Hasan. The speeches Dayan Jayatilleke and I made in Geneva make clear what needed and still needs to be done, but clear sighted arguments based on a moral perspective that is more focused than the meanderings, and the frequent hypocrisy, of critics will not now be easy for the country to furnish.

 

By Shamindra Ferdinando

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Midweek Review

Research: Understanding the basics and getting started – Part I

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Introduction

No human civilization—whether large or small, modern or traditional—has ever survived without collectively engaging in three fundamental processes: the production and distribution of goods and services, the generation and dissemination of knowledge and culture, and the reproduction and sustenance of human life. These interconnected functions form the backbone of collective existence, ensuring material survival, intellectual continuity, and biological renewal. While the ways in which these functions are organised vary according to technological conditions, politico-economic structures and geo-climatic contexts, their indispensability remains unchanged. In the modern era, research has become the institutionalized authority in knowledge production. It serves as the primary mechanism through which knowledge is generated, rooted in systematic inquiry, methodological rigor, and empirical validation. This article examines the key aspects of knowledge formation through research, highlighting its epistemological foundations and the systematic steps involved.

What is knowledge?

Knowledge, at its core, emerged from humanity’s attempt to understand itself and its surroundings. The word “knowledge” is a noun derived from the verb “knows.” When we seek to know something, the result is knowledge—an ongoing, continuous process. However, those who seek to monopolise knowledge as a tool of authority often attribute exclusivity or even divinity to it. When the process of knowing becomes entangled with power structures and political authority, the construction of knowledge risks distortion. It is a different story.

Why do we seek to understand human beings and our environment? At its core, this pursuit arises from the reality that everything is in a state of change. People observe change in their surroundings, in society, and within themselves. Yet, the reasons behind these transformations are not always clear. Modern science explains change through the concept of motion, governed by specific laws, while Buddhism conceptualises it as impermanence (Anicca)—a fundamental characteristic of existence. Thus, knowledge evolves from humanity’s pursuit to understand the many dimensions of change

It is observed that Change is neither random nor entirely haphazard; it follows an underlying rhythm and order over time. Just as nature’s cycles, social evolution, and personal growth unfold in patterns, they can be observed and understood. Through inquiry and observation, humans can recognise these rhythms, allowing them to adapt, innovate, and find meaning in an ever-changing world. By exploring change—both scientifically and philosophically—we not only expand our knowledge but also cultivate the wisdom to navigate life with awareness and purpose.

How is Knowledge Created?

The creation of knowledge has long been regarded as a structured and methodical process, deeply rooted in philosophical traditions and intellectual inquiry. From ancient civilizations to modern epistemology, knowledge generation has evolved through systematic approaches, critical analysis, and logical reasoning.

All early civilizations, including the Chinese, Arab, and Greek traditions, placed significant emphasis on logic and structured methodologies for acquiring and expanding knowledge. Each of these civilizations contributed unique perspectives and techniques that have shaped contemporary understanding. Chinese tradition emphasised balance, harmony, and dialectical reasoning, particularly through Confucian and Taoist frameworks of knowledge formation. The Arab tradition, rooted in empirical observation and logical deduction, played a pivotal role in shaping scientific methods during the Islamic Golden Age. Meanwhile, the Greek tradition advanced structured reasoning through Socratic dialogue, Aristotelian logic, and Platonic idealism, forming the foundation of Western epistemology.

Ancient Indian philosophical traditions employed four primary strategies for the systematic creation of knowledge: Contemplation (Deep reflection and meditation to attain insights and wisdom); Retrospection (Examination of past experiences, historical events, and prior knowledge to derive lessons and patterns); Debate (Intellectual discourse and dialectical reasoning to test and refine ideas) and; Logical Reasoning (Systematic analysis and structured argumentation to establish coherence and validity).The pursuit of knowledge has always been a dynamic and evolving process. The philosophical traditions of ancient civilizations demonstrate that knowledge is not merely acquired but constructed.

Research and Knowledge

In the modern era, research gradually became the dominant mode of knowledge acquisition, shaping intellectual discourse and scientific progress. The structured framework of rules, methods, and approaches governing research ensures reliability, validity, and objectivity. This methodological rigor evolved alongside modern science, which institutionalized research as the primary mechanism for generating new knowledge.

The rise of modern science established the authority and legitimacy of research by emphasizing empirical evidence, systematic inquiry, and critical analysis. The scientific revolution and subsequent advancements across various disciplines reinforced the notion that knowledge must be verifiable and reproducible. As a result, research became not just a tool for discovery, but also a benchmark for evaluating truth claims across diverse fields. Today, research remains the cornerstone of intellectual progress, continually expanding human understanding and serving as a primary tool for the formation of new knowledge.

Research is a systematic inquiry aimed at acquiring new knowledge or enhancing existing knowledge. It involves specific methodologies tailored to the discipline and context, as there is no single approach applicable across all fields. Research is not limited to academia—everyday life often involves informal research as individuals seek to solve problems or make informed decisions.It’s important to distinguish between two related but distinct activities: search and research. Both involve seeking information, but a search is about retrieving a known answer, while research is the process of exploring a problem without predefined answers. Research aims to expand knowledge and generate new insights, whereas search simply locates existing information.

Western Genealogy

The evolution of Modern Science, as we understand it today, and the establishment of the Scientific Research Method as the primary mode of knowledge construction, is deeply rooted in historical transformations across multiple spheres in Europe.

A critical historical catalyst for the emergence of modern science and scientific research methods was the decline of the medieval political order and the rise of modern nation-states in Europe. The new political entities not only redefined governance but also fostered environments where scientific inquiry could thrive, liberated from the previously dominant influence of religious institutions. Establishment of new universities and allocation of funding for scientific research by ‘new monarchs’ should be noted. These shifting power dynamics created space for scientific research more systematically. The Royal Society of London for Improving Natural Knowledge was founded in 1662, while the French Academy of Sciences (Académie des Sciences) was established in 1666 under royal patronage to promote scientific research.

Alongside this political evolution, the feudal economic order declined, paving the way for modern capitalism. This transformation progressed through distinct stages, from early commercial capitalism to industrial capitalism. The rise of commercial capitalism created a new economic foundation that supported the funding and patronage of scientific research. With the advent of industrial capitalism, the expansion of factories, technological advancements, and the emphasis on mass production further accelerated innovation in scientific methods and applications, particularly in physics, engineering, and chemistry.

For centuries, the Catholic Church was the dominant ideological force in Europe, but its hegemony gradually declined. The Renaissance played a crucial role in challenging the Church’s authority over knowledge. This intellectual revival, along with the religious Reformation, fostered an environment conducive to alternative modes of thought. Scholars increasingly emphasised direct observation, experimentation, and logical reasoning—principles that became the foundation of modern science.

Research from Natural Science to Social Science

During this period, a new generation of scientists emerged, paving the way for groundbreaking discoveries that reshaped humanity’s understanding of the natural world. Among them, Nicolaus Copernicus (1473–1543), Johannes Kepler (1571–1630), Galileo Galilei (1564–1642), and Isaac Newton (1642–1726) made remarkable contributions, expanding the boundaries of human knowledge to an unprecedented level.

Like early scientists who sought to apply systematic methods to the natural world, several scholars aimed to bring similar principles of scientific inquiry to the study of human society and behavior. Among them, Francis Bacon (1561–1626) championed the empirical method, emphasising observation and inductive reasoning as the basis for knowledge. René Descartes (1596–1650) introduced a rationalist approach, advocating systematic doubt and logical deduction to establish fundamental truths. David Hume (1711–1776) further advanced the study of human nature by emphasizing empirical skepticism, arguing that knowledge should be derived from experience and sensory perception rather than pure reason alone.

Fundamentals of Modern Scientific Approach

The foundation of modern scientific research lies in the intricate relationship between perception, cognition, and structured reasoning.

Sensation, derived from our senses, serves as the primary gateway to understanding the world. It is through sensory experience that we acquire raw data, forming the fundamental basis of knowledge.

Cognition, in its essence, is a structured reflection of these sensory inputs. It does not exist in isolation but emerges as an organised interpretation of stimuli processed by the mind. The transition from mere sensory perception to structured thought is facilitated by the formation of concepts—complex cognitive structures that synthesize and categorize sensory experiences.

Concepts, once established, serve as the building blocks of higher-order thinking. They enable the formulation of judgments—assessments that compare, contrast, or evaluate information. These judgments, in turn, contribute to the development of conclusions, allowing for deeper reasoning and critical analysis.

A coherent set of judgments forms more sophisticated modes of thought, leading to structured arguments, hypotheses, and theoretical models. This continuous process of refining thought through judgment and reasoning is the driving force behind scientific inquiry, where knowledge is not only acquired but also systematically validated and expanded.

Modern scientific research, therefore, is a structured exploration of reality, rooted in sensory perception, refined through conceptualisation, and advanced through logical reasoning. This cyclical process ensures that scientific knowledge remains dynamic, evolving with each new discovery and theoretical advancement.

( Gamini Keerawella taught Historical Method, and Historiography at the University of Peradeniya, where he served as Head of the Department and Senior Professor of History. He is currently a Professor Emeritus at the same university)

by Gamini Keerawella

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Midweek Review

Guardians of the Sanctuary

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The glowing, tranquil oceans of green,

That deliver the legendary cup that cheers,

Running to the distant, silent mountains,

Are surely a sanctuary for the restive spirit,

But there’s pained labour in every leaf,

That until late was not bestowed the ballot,

But which kept the Isle’s economy intact,

And those of conscience are bound to hope,

That the small people in the success story,

Wouldn’t be ignored by those big folk,

Helming the struggling land’s marketing frenzy.

By Lynn Ockersz

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