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Sri Lanka under British rule : Neither Gemeinschaft nor Gesellschaft

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By Uditha Devapriya

Since at least Marx and Malinowski, anthropologists have been fascinated by, and focused on, the links between “primitive-tribal” and “modern-secular” societies. I use these terms with a pinch of salt – hence the asterisks – for the simple reason that no society can be said to fit one case or the other. In its initial phase the social sciences did, admittedly, distinguish between the two, and took the teleological position that the one would lead to another: hence Ferdinand Tönnies’s idea of a progression from Gemeinschaft to Gesellschaft. Such progressions were depicted as long, eventual, but inevitable, and were accepted widely at a time when Europe, the harbinger of industrialisation and colonialism, had consolidated its position as the main, if not sole, locomotive of world history.

I have pointed out earlier, in this column, that Europe’s encounters with the non-West – Africa and Asia, basically – did not spur the kind of transition from tribalism to modernity which the most benighted missionary and colonial official had publicly advocated. This was no less true in India than it was in Sri Lanka. To give a simple and much used example, upon their annexation of Kandy, the colonial government did not do away with the caste-based duty system, and corvee labour, at once. Unlike scholars and romantics who envisioned a supposedly nobler role for the colonising West, the administrators and officials working on the ground saw the need to retain precapitalist, and thus primitive, social relations, in order to legitimise their rule over the newly acquired territories.

One discerns an intriguing, if fundamental, disconnect or contradiction here, between the supposed aims and the actual, lived experience of colonial rule. If the objective of colonial rule was indeed to transform the societies they had acquired by force and compulsion, then the relationship between the coloniser and colonised had to go beyond the position of mere dependence which colonised territories were subjected to. We know, however, that this was never the case. India, for instance, accounted for a quarter of the world’s industrial production, and British rule smothered its textile sector in the interests of ensuring a market for British textile exports. What this reveals is that, regardless of what scholars at the time may have believed, the West was primarily interested in sabotaging the national industries of the non-West, rather than in transforming their societies.

It was the destruction of these industries, as well as official patronage of precapitalist social relations, especially in regions like Kandy, that hindered the long progression from tribalism to modernity which the likes of Tönnies, Durkheim, and Henry Maine advocated. The latter were, strictly speaking, not propagandists or mouthpieces for colonialism: it would be wrong to consider them so on the basis of their Western and European background alone. But they were products of their time, and in their time the Western view of non-Western countries gradually being subsumed by colonialism and then developing into capitalist and modernist societies was more or less accepted. Even Marx, in his initial despatches on India, pondered whether British colonialism would beneficially impact that country’s historical and economic trajectory. Of course, Marx later changed his position, proving himself an exception.

In any case, these processes ran their course more discernibly, and thoroughly, in Sri Lanka than they did in India, where, perhaps because of its size or its plurality, colonial rule did not, and could not, destroy its industrial base or pre-empt the formation of an industrial (and somewhat anti-imperialist) bourgeoisie. In Sri Lanka, by contrast, British rule managed successfully to hinder the progression from feudalism to capitalism, thereby preventing it from achieving a transition from “tribalism” to “modernity.”

Since I have reflected on these concerns in my recent essay on Maduwanwela Dissawe and the temples of the South, I will limit my analysis here to another area where colonial rule had an undeniably distinct, and paradoxical, impact on local society.

Education had long been viewed, even by the Portuguese, and more prominently by the Dutch, as a useful instrument for the consolidation of colonial power. The Dutch, through their network of parish schools, were interested more in eradicating Portuguese power – with little to no effect, as the enduring popularity of Catholicism, even today, illustrates – than in educating local elites. The latter objective formed the cornerstone of British policy on education, particularly after the Colebrooke-Cameron reforms of 1833.

The British government was itself not in one mind over education, and it was hardly in agreement with missionary enclaves who were interested more in converting locals to their specific brand or denomination. But by and large, a sort of tacit understanding developed between the two that these schools would inculcate Western values, and educate a class of locals who could staff the civil administrative service.

The first British officials to set foot in Kandy – among them, John Davy – were demonstrably surprised at the state of education there. Products of elite public schools and universities themselves, they were astonished by how much of a widespread institution education had become in the highlands, administered by the pansalas and limited to the male population. In Britain at the time, education had become the preserve of the old aristocracy and an emerging bourgeoisie. It was this model, based fundamentally on filtration theory – or the entrenchment of a minority, to the exclusion of the masses – which British officials sought to enforce in the island. By contrast, missionary bodies were interested in taking their gospel as far as possible, even preaching it in the vernacular. Yet even though they were in conflict with the government’s more utilitarian approach to education, over the years they conformed to that approach while pursuing their own objectives.

For obvious and logical reasons, the institutions of a colonial society – the superstructure, to borrow Marxist terminology – acutely reflect, or appropriate, that society’s economic base. In Sri Lanka, colonialism had transformed if not transmogrified precapitalist social relations without fundamentally challenging them: hence the government’s decision to retain rather than overhaul caste and rajakariya, and hence its decision to co-opt rather than eradicate the Kandyan aristocracy. Within such a setup, a transition from tribalism to modernity was simply not possible, particularly after the grafting of a plantation economy which reduced the peasantry to a position of dependence while undercutting them through the import of cheap, indentured, and perpetually exploited labour from South India.

It goes without saying that this setup was well reflected in the schools and other educational institutions that the colonial State established in the mid-19th century. How so? First and foremost, these schools reaffirmed the colonial State’s advocacy, and enforcement, of elite filtration, or education for a minority as opposed to the masses. In areas like Kandy, the State did not interfere when missionary bodies set up schools, because it provided them with the opportunity to educate the children of native elites and European planters. The colonial State itself did not own the kind of “superior” schools that missionary bodies did: it had the Colombo Academy, but that was in Colombo. Elsewhere, as far as the aims of the State and missionary enclaves went, laissez-faire ruled the day. Individual governors may have held views that were antithetical to the aims of these enclaves, but again, such rifts were temporary, and were in any case resolved by succeeding governors.

Secondly, the curriculum of these schools was, in comparison to the needs of a society that had yet not industrialised, hardly modern or progressive. The students of these institutions not only learnt the literature, history, and culture of a society far removed from them, their very education distanced them from the society to which they had been born. This had the dual effect of distancing themselves from their roots while failing to root them in the society of the “mother country”, or the metropole. James d’Alwis’s memoirs, in which he recounts the pressure to conform and uproot himself that he experienced at the Colombo Academy, illustrate this dilemma well. Many years later, Ralph Pieris could recount his childhood at the Academy – by then renamed Royal College – in just about the same terms. I quote him in full, simply because it sheds light on what these schools stood for.

“The Ceylon schools supported an authoritarian regime in the classroom where the rod was not spared, idealised ‘manly’ sports such as boxing and rugger, while a disciplined military apprenticeship was provided by the cadet battalion. Many adults have hankering fixation on school life, the joys of cricket; and masochistic adoration or the father-figures of teachers. even if they were responsible for sadistic and humiliating physical chastisement… All too frequently I have witnessed the tragicomic spectacle of elderly men leading a hollow existence, pitiful spectators of sports they can no longer actively participate in, who have rejoiced only in the transient marvel of their physical strength, [to] discover in later life that their range has become restricted and their interests few.”

Ralph Pieris, Sociology as a Calling: A Desultory Memoir

Modern Sri Lanka Studies, Vol. 3, No. 2, 1988, pp 1-33

Pieris’s observation leads me to my third point, which is that the elitism engendered and perpetuated by these institutions continued long after colonial rule, and in fact continues today. There are, of course, important differences between colonial and post-colonial society. The right to vote, and free education, emancipated the masses from the fields or “avocations” to which the colonial State had restricted them. These developments were not wholeheartedly accepted by the elite of the day: in criticising the Central School System, for instance, a member of the Colombo upper class remarked that the new schools would never be as good as the elite ones. Yet such reforms had in themselves been necessitated by the right to vote, and could not be prevented or pre-empted. Despite the machinations of the English-speaking bourgeoisie – which either accepted these reforms or chose to migrate from the country – free education became well established, even in the schools which they had attended, and to which many of them continued sending their sons.

In my essay on the Royal College Hostel, published last August, I noted that independence brought about a transfer of power from the legatees of British power to an indigenous class. In elite schools, I added, this transfer was not so much from the upper echelons to the lower classes as it was from an elite to an upward aspiring petty bourgeoisie, or intermediate elite. Such transformations did not fundamentally put to question, much less challenge, the elitist structures that had been implanted in these establishments by the British government. This is why Pieris’s memoirs paint an accurate picture of these institutions, not just from his time but also from ours: Pieris’s description of past pupils’ “hankering fixation on school life, the joys of cricket” and of “elderly men leading a hollow existence, pitiful spectators or sports they can no longer actively participate in”, to give one example, is amply visible at the many matches, parades, and functions organised by these schools today.

All this goes back to my original point, that British rule did not liberate colonial societies, like ours, from our tribalist past. A careful examination of the institutions which were set up by colonial officials here, during that period, should make that much clear. The transition from colonial to post-colonial society has not really challenged the status quo. If at all, it has only substituted the domination of one social class for that of another: the petty bourgeoisie, for the Anglicised colonial elite. Against such a backdrop, it behoves us to ask what exactly must be done to ensure, not merely the eradication of colonial-precapitalist remnants in these institutions, but the eventual progression, in our country, from the colonial-tribalist setup to which it continues to be tethered, 75 years after independence, to a truly modern, secular, and progressive society. Such a transformation requires a radical shift in our perceptions of education, governance, and political reform. Yet it is needed, especially at a time when mass anger against the elite class has reached fever pitch.

The writer is an international relations analyst, researcher, and columnist who can be reached at udakdev1@gmail.com.

 

 



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The Digital Underground

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Illegal Foreign Exchange, Undiyal, Hawala and Money Laundering, A Four-Part Investigative Series

Forex Platforms, Cryptocurrency, AI and the New Financial Battlefield

THE INVISIBLE FINANCIAL EMPIRE – PART III

The Boyfriend Who Was Never Real

Priya, a 34-year-old professional in Colombo, met “David” on LinkedIn. He claimed to work in fintech in Singapore. For six weeks they exchanged messages daily, about work, about life, about a recent trip he had taken to the Maldives. Eventually, the conversation turned, gently and naturally, to money.

“I’ve been trading on this platform, let me show you,” he said, sharing a screenshot of a sleek trading dashboard showing consistent, impressive returns.

Priya invested a small amount first, $500. Within days, her dashboard showed it had grown to $650. She withdrew $100 successfully, just to test it. It worked. Encouraged, she invested more. Then more. Over two months, she transferred a total of $42,000 into the platform.

When she tried to withdraw her full balance, the platform demanded a “regulatory release fee” of $8,000 before funds could be unlocked. She paid it. Then another fee appeared. Then the platform stopped responding altogether. “David” vanished. The trading dashboard, the customer support chat, the entire brokerage, all of it had never been real.

This is what investigators now call “pig butchering”, and, in 2026, the most disturbing development is not the scam itself, which has existed for years, but what now powers it: artificial intelligence has industrialised the entire operation.

From Manual Fraud to Machine-Generated Deception

For most of the past decade, romance-and-investment scams, like the one that targeted Priya, required enormous manual labour. Scam operations, many of them staffed by trafficked workers held against their will in compounds across Myanmar, Cambodia, and Laos, needed real humans to build relationships with victims over weeks, manage fake trading platforms, and respond convincingly to questions.

That labour-intensive model has now been substantially automated. According to financial-crime researchers tracking this shift through 2026, threat actors are standing up entire AI-generated “brokerage” experiences end-to-end, complete with KYC onboarding, branded customer-service chat, animated portfolio dashboards, and falsified live market data feeds, and operating them at industrial scale against multiple victims simultaneously. Generative-AI relationship managers now front the WhatsApp and Telegram conversations that once required real human scammers. AI-cloned regulator letters are generated on demand to justify the fake “release fees” that drain victims a final time before the platform disappears.

What has changed is not the deception itself, it is the production economics. The cost of running a credible synthetic brokerage against one additional victim has collapsed, meaning a single criminal network can now run hundreds of “Davids” simultaneously, each one indistinguishable from a genuine fintech professional until it is too late. (Figure 01)

Sri Lanka: From Victim Pool to Operating Base

Sri Lanka’s relationship to this global scam economy has shifted in an alarming direction over the past two years. The country is no longer only a source of victims, it has become an operating base for the criminal networks themselves.

In April, 2026, Sri Lankan police raided a five-star hotel property, in Ambakandavila, and arrested 150 individuals, including 133 Chinese nationals, 13 Vietnamese nationals, and one Malaysian national, allegedly running a cyber fraud centre with links to international criminal syndicates, based in Myanmar and Cambodia. Investigators say the operation followed a now-familiar regional pattern: recruiters advertise “online marketing” or “data entry” jobs on social media to lure foreign workers to Sri Lanka, confiscate their passports on arrival, and force them to operate scam campaigns under threat.

The Central Bank of Sri Lanka has formally flagged pig-butchering scams as a “developing threat,” warning that foreign scam networks are increasingly targeting overseas nationals through scam farms operating from Sri Lankan soil. A 2026 United Nations report estimated that at least 300,000 people have been trafficked into scam centres across Southeast Asia.

This is not an abstract international problem. It is unfolding in hotels and rented properties across the country, exploiting the same infrastructure, high-speed internet, affordable accommodation, accessible tourist visas, that Sri Lanka has built to attract legitimate digital businesses and tourists.

Where the Money Actually Goes: The Stablecoin Pipeline

Behind every successful pig-butchering scam sits a laundering pipeline that has been transformed almost as dramatically as the scams themselves, and the transformation has a single dominant feature: stablecoins.

According to the Financial Action Task Force’s March 2026, report, drawing on analysis from blockchain intelligence firms Chainalysis and TRM Labs, stablecoins accounted for 84% of the USD 154 billion in illicit virtual asset transaction volume recorded in 2025, the highest share ever observed, and a dramatic jump from just 15% only a few years earlier. TRM Labs separately found that illicit entities received USD 141 billion in stablecoins, in 2025 alone, the highest level observed in five years. (See Table 01)

The scale of state-level abuse is striking. A Russian sanctions-evasion network built around the ruble-pegged stablecoin A7A5 processed more than USD 72 billion in total volume in 2025.

Fighting Fire with Fire: AI on the Defensive Side

The same artificial intelligence reshaping financial crime is also, out of necessity, reshaping the defence against it. Legacy anti-money laundering systems, built on static, rule-based thresholds, have proven badly outmatched by AI-generated fraud operating at machine speed. Research cited by compliance technology analysts suggests that between 90% and 95% of alerts generated by legacy AML systems are false positives, consuming enormous investigator time while genuinely suspicious activity slips through.

This is not a frictionless transition. AI models are notoriously difficult to explain to regulators and examiners in the way traditional rule-based systems are. The practical compromise emerging across the industry is a hybrid model: AI handles the initial scoring and prioritisation of risk, while documented rule-based logic still governs the final decision that must be defensible to a regulator.

The Regulatory Response: Catching Up to the Digital Frontier

Regulators worldwide have begun moving to close the most dangerous gaps exposed by this digital transformation of financial crime. (See Table 02)

What Comes Next

We have now traced this investigation from the centuries-old mechanics of Hawala and Undiyal, through the three-stage architecture that turns criminal proceeds into apparently legitimate wealth, to the AI-generated frontier of digital financial crime reshaping all of it at machine speed.

In our concluding instalment, Part IV: “Sri Lanka at the Crossroads: Economic Consequences, Organised Crime and the Road Ahead”, we bring this series home. We examine precisely what all of this costs Sri Lanka in hard economic terms: lost remittances, exchange rate pressure, tax revenue forgone, and the 2026 FATF evaluation that will determine whether the country’s institutions can demonstrate, with evidence rather than legislation alone, that they are equal to this challenge. We close with a practical policy roadmap.

(The writer, a senior Chartered Accountant and professional banker, is Professor at SLIIT, Malabe.
Views expressed in this article are personal.)

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‘There are no private universities in Sri Lanka’ – some considerations for higher education reform

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Academics involved in education policy like to say that there is no such thing as a private university in Sri Lanka. The only ‘universities’ in the country are state universities; anything else offering degrees is a private higher education institution (HEI). This position is technically accurate. Yet, in the discourse and imagination of the public, private universities are very real – people teach in them, students register in them, families pay fees, and such degree holders enter job markets in Sri Lanka and outside.

For decades, activists concerned for public higher education have ignored or resisted looking at private HEIs, as if such scrutiny would taint them. Others have worked in both types of institutions, carrying practices from each to the other. The apex body governing state universities, the UGC, has, meanwhile, ignored the concept of conflict of interest and appointed individuals in private higher education in committees and leadership positions. It is unsurprising then that some of the ideologies informing private higher education appear in reform agendas in the state sector.

This is a good time then to consider the varying types of private HEIs around us, and to take a look at some of the issues within them in the hope that higher education reform agendas will include private, as well as state higher education.

What is a ‘private university’?

First, some clarifications. In the public imaginary, a ‘private university’ is typically an institution that provides a foreign or local degree for which the student makes a payment. But this broad classification encompasses a host of diverse institutions and types of degrees which I detail below.

The Non-State Higher Education Division (NSHE) of the Ministry of Education has recognised 295 degrees by 32 institutions. Most of these are private companies and include a handful of established, well-known private HEIs that are ‘university like’. The degrees are local degrees conferred by the institutions accredited by the NSHE Division. While private HEIs conferring local degrees must be accredited by the NSHE Division, there appears to be no legal consequence for not doing so. In addition, there are several permutations of the private degree that miss the net of this Division and the Standing Committee on Accreditation and Quality Assurance (SCAQA) that assists this Division.

For one, degrees conferred by foreign universities offered, via these same private HEIs, are not vetted by the NSHE Division. Secondly, there is a growing plethora of private HEIs which have either no physical presence locally or only a dubious presence. The University Grants Commission has notified the public, through their website, that foreign universities listed in the Commonwealth Universities Yearbook and the World Higher Education Database are recognised, but refrained from giving any other details – which degrees? Offered by what modes? These details are not known. Some of the foreign universities in the lists may be legitimate entities in their own land but the degrees conferred locally, in their name, may not adhere to curriculum or teaching specifications of the NSHE Division or the UGC.

Another troubling phenomenon is the ‘top up degree’, which appears to work on the same principle as that of a pre-paid mobile connection: if I have a Diploma or an HND of a sort, I am eligible to complete a course of study which provides me with a degree, usually from a foreign university. The idea that someone who does not initially qualify for a degree programme should be able to work their way towards one is a progressive notion. This is the concept that open and distance learning (ODL) was based on initially, but which is now sadly exploited. ODL models are expected to provide opportunity for learning for those who may be excluded from traditional learning institutions. In Sri Lanka, however, we have seen ODL become a marketplace offering easy to obtain, for-fee qualifications by institutions with little commitment to superior teaching and learning.

Finally, a perusal of the many types of private HEIs and their varied degrees bring to mind another question – how should the private degrees, provided by state institutions (that are not educational institutions), be regulated? Who should do so?

All of these create a host of problems for the public – for hopeful students and parents and trusting employers. For the higher education sector, recruitment of academic staff, too, has become difficult due to this plethora of ambiguous higher education qualifications, as I discussed in a previous Kuppi article (‘Recruiting academics to state universities’).

Some issues in private HEIs – a bellwether for change in state universities

In this second part of this article, I will discuss some aspects of work in private HEIs – albeit the more established institutions – given that such issues may appear in reform agendas in future.

Across state universities, all permanent staff of a specific category are paid according to the same criteria. The picture is not so clear when it comes to private HEIs since they are different entities legally, typically companies. Private HEIs have salary scales and financial incentives that are different to each other. The more established private HEIs reportedly have attractive renumeration packages, possibly a reason for academics of state universities migrating eagerly to such institutions during sabbatical years and on retirement. This may not of course be the case with other less established, or improperly registered HEIs of which we know little. Academic staff of these more accepted private HEIs seem to value the high financial remuneration they receive (in comparison to state universities) as something that makes their work rewarding.

Attractive remuneration is important to sustain the good life and is at times seen as the institution’s way of encouraging good work. Yet, this has implications for the future of the institution: to continue to deliver on promised financial packages, institutions must continue to have large profit margins. One strategy has been to enroll multiple cohorts of students per year, even up to three or four intakes per year. This can result in exploitative work conditions, since staff must cater to all these cohorts in that same year. If there is inadequate staff, employees are further burdened. On the other hand, if there is a sudden drop in enrolments (degrees can go out of fashion) unexpected layoffs occur. Similar to other sectors that employ short-term contract staff – including state universities – in private HEIs, too, individual teachers, who are on short term contracts that need regular renewal, can feel pressured to work under difficult or exploitative conditions.

At the same time, even in the more established private HEIs, work norms differ from those of state universities in that they include promotional work that keeps the institution’s name in the eye of the public. The Marketing (or similarly named) unit comes up in conversations as one of the most important departments. It appears to weigh in on decision-making related to the number of staff, the amount of re-sits per exams, and other pedagogically important matters. This is a worrying example of how financial rationales interfere with pedagogically or academically sound processes, resulting in problematic results in the classroom. On the plus side, junior colleagues, who had experience in both state and private HEIs, also felt that they faced less harassment in private HEIs – primarily due to the private HEIs ability to take swift action in reported cases of harassment. This is a real indictment on state institutions and their reluctance to address chronic issues of harassment in our universities.

Yet, while we hear much about problems in state universities, we hardly hear of problems that staff in private HEIs face. One rationale for a lack of public expressions by staff is that expressions of discontent might lead to trouble given the importance of reputation for private HEIs. The worry about reputational damage is a growing concern in state universities, too, as evidenced by social media policies and internal conversations on reputational damage, consequent to negative publicity. Institutional worries of reputational damage are harmful in the long run since these impact not only freedom of expression by student and staff, but also research that is possible in and about the education sector.

Some thoughts at the end…


A close look at the private higher education sector is important given its strong presence in the country. Impending reform needs to regulate this diverse array of higher education offerings in the private sector, as well as the state institutions that offer privately-funded options of higher education (a topic for a separate Kuppi on its own). It is time we carefully considered how to build a whole system of higher education out of this broken mess.

Kaushalya Perera is a senior lecturer at the University of Colombo.

Kuppi is a politics and pedagogy happening on the margins of the lecture hall that parodies, subverts, and simultaneously reaffirms social hierarchies.

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Ready for solo spotlight

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Nish Peiris: Excited about future plans

Singer Nish Peiris is set to take the next big step in her music journey.

The talented vocalist, who has been seen and heard in the scene here for a short while, and was also featured with the now-defunct band, Inner Vision, has announced that she will be fully committing to her solo career, after completing her degree this year.

“I’m finishing my degree this year, and after that I’ll be fully committing to my solo music career,” Nish told The Island.

“I’ve already got a few tours lined up for next year, so I’m really excited for what’s ahead.”

Fans, no doubt, will remember Nish for her smooth voice and stage presence, and the good news is that she is now ready to chart her own path and bring new music to audiences at home and abroad.

With tours already planned for 2027, the year 2026 promises to be an exciting year for the young artiste as she steps into the spotlight on her own.

We wish Nish every success in this new chapter!

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