Opinion
Sustainable finance roadmap for SL – II
BY Nimal Gunatilleke
(First part of this article appeared yesterday)
Sustainable finance refers to the process of taking environmental, social and governance (ESG) criteria (developed by the United Nations Principles for Responsible Investment – PRI) into account, when making investment decisions in the financial sector. These in turn will lead to more long-term investments in sustainable economic activities and projects.
Sri Lanka, too ,joined this bandwagon in developing a Roadmap for Sustainable Finance way back in 2016/2017. It is aimed at integrating ESG criteria into financial decision-making processes in order to help build a more resilient and sustainable green economy. These sustainable finance practices are expected to promote assistance to make the businesses greener, climate-friendly, and socially inclusive.
This Sustainable Finance Road Map for Sri Lanka was launched in 2019 with financial assistance from the Biodiversity Finance Initiative (BIOFIN) from the UNDP and technical support from the International Finance Corporation. In this ‘new normal’ era of post-pandemic banking, sustainable finance is expected to become a key mover in achieving social, economic, and environmental goals in a green economic milieu.
The Biodiversity Finance Plan (BFP) for Sri Lanka (2018 – 2024), prepared collectively by the then Ministry of Finance and Media, The Ministry of National Policies and Economic Affairs, and the Ministry of Mahaweli Development and Environment, in 2019, intends to support sustainable biodiversity management efforts of Sri Lanka by mobilizing finance for investing in biodiversity by both the public and private sector.
A considerable amount of background preparatory work, detailed in three technical reports (i.) Policy and Institutional Review, (ii.) Biodiversity Expenditure Review, and (iii) Financial Need Assessment, has gone into developing this Biodiversity Finance Plan for Sri Lanka. It is expected to achieve national biodiversity targets that include conservation, sustainable management, and equitable distribution of benefits among all stakeholders, the three main pillars of the Convention on Biodiversity.
During this process, the national biodiversity and climate change-related strategic plans viz. National Biodiversity Action plan (NBSAP 2016-2022), National REDD+ Investment Framework and Action Plan (NRIFAP 2018-2022), National Action Programme for Combating Land Degradation in Sri Lanka (NAP-CLD 2015 -2024), and National Adaptation Plan for Climate Change Impacts in Sri Lanka (2016 – 2025) have been consulted for estimating the financial gap constraining investment needed for their effective implementation.
In addition, the vision of the BFP is directly linked to the following Sustainable Development Goals (SDGs), Goal 13: Climate Action; Goal 14: Life below Water, and Goal 15: Life on Land. It is indirectly linked to several other SDGs such as Goal 6: Clean Water and Sanitation, Goal 11: Sustainable Cities and Communities, and Goal 12: Responsible Consumption and Production.
The BFP has been designed to meet the biodiversity financing needs of the country by mobilising resources for investing in conserving biodiversity, promoting its sustainable use, and equitable sharing of its benefits. This is to be achieved with the participation of all major stakeholders – the government, the corporate sector, and the community. Thirteen different finance solutions viz. sustainable standards and certification, eco-labels, green lending, corporate social responsibility, lotteries, payment for ecosystem services, green bonds, ecotourism, conservation license plates, carbon markets, lobbying for public budget allocations, and diaspora savings and investment, have been identified based on the information given in national and sectoral planning documents of Sri Lanka. Each of these has been elaborated on in some detail with action plans in the BFP 2018-2022 document.
Judicious resource mobilization
Most of the prioritised financial solutions listed above are already in operation, though at a modest scale. They need to be scaled up with judicious resource mobilization to be more responsive to the conservation and sustainable development, equitable sharing of biodiversity and ecosystem service benefits. Consequently, with all this background preparative work accomplished, Sri Lanka is in a strong position to make the current adversity into an opportunity of a lifetime.
Green Bonds: One of the fastest developing financial or refinancing solutions on a global scale is coming from issuance of sustainability-linked international sovereign green bonds and other similar instruments such as sustainability-linked bonds, climate bonds and social bonds. The repayment of debt using these green bonds and the like is tied to the achievement of instituional environmental, social and governance (ESG) targets, such as greenhouse gas emission reductions. The growth of green bonds in the global capital markets has been explosive in recent times and is increasingly attracting attention of the corporate entities around the globe. Global Green Bond investments have topped US$ 500 billion in 2021 for the first time and it is expected to reach $ 1 trillion this year.
Most of the green bonds in the world have been issued to finance relatively large projects in the areas of Renewable energy, Transport, Pollution prevention and control, Water and waste management, Environmentally sustainable land-use, agriculture and forestry, Reduction in carbon emission, and Green infrastructure, and since of late for Biodiversity conservation.
Importance of biodiversity
Governments, major financial centers and central banks world over are greening their financial systems by developing green bond guidance, green taxonomies, regulation, and reporting guidelines. Investors worldwide are waking up to the importance of incorporating biodiversity as part of ESG risk assessments and their effective management. This is due in part to the increasing focus on this topic since the United Nation’s Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (UN-IPBES) produced its landmark Global Assessment Report on Biodiversity and Ecosystem Services in May 2019, casting the spotlight on the alarming declines of biodiversity worldwide.
Although Sri Lanka has not yet availed herself of this innovative financial solution of investing in Green Bonds, it is ideally placed to benefit from this emerging opportunity, for Sri Lanka being one of 36 global hotspots of biodiversity. Sri Lanka has actively participated in sustainability-focused investments through the Sustainable Banking Network of the International Finance Corporation, and it is a fortuitous coincidence that the present Governor of the Central Bank, himself, has taken an active role in this global network activities in the past (see photo attached).
The Central Bank of Sri Lanka and the financial sector, in general, have been moving in the direction of sustainable financing with the preparation of the required technical details listed earlier. The latest addition to it is the ‘Sri Lanka Green Finance Taxonomy’ (a classification system established to provide guidelines for integrating sustainability into investment decisions), published by the Central Bank on 06th May 2022. Green Bond Principles (GBP) is one of several well-known taxonomies that provide guidelines specific to green bonds.
Consequently, Sri Lanka has already put in place the necessary institutional infrastructure in financial markets for entering into green bond initiatives. Furthermore, Sri Lanka has been raising international finance by issuing bonds since 2007. As such, the government and the financial institutions are quite familiar and well equipped with the necessary groundwork to enter the international (green) bond market. The BFP reports that the Government of Sri Lanka recommends the issuing of international sovereign green bonds as a sustainable finance solution to mobilize relatively large sums of debt capital for investing in large-scale biodiversity projects, combatting land degradation, arresting habitat and species loss, maritime reef conservation, coastal conservation, and sustainable energy.
All these project documents prepared with broader consultation and supported by the respective UN agencies (viz. NBSAP, NRIFAP, NAPCLD, and NAPCCI) are therefore, consistent with the global conventions as well as national-level policies and strategies on biodiversity, climate change, and land degradation.
The Wildlife and Forest Conservation Departments have carried out several biodiversity and ecosystem management projects, including the preparation of two pilot scale novel Landscape Management Plans – one for Sinharaja Rain Forest Complex and the other for Hurulu-Kaudulla-Kantale with financial support from the Ecosystem Conservation and Management Project (ESCAMP 2018-2022) of the World Bank. These plans are available as excellent opportunities for consideration in raising funds from international capital markets for restructuring at least some of the ISBs into Green Bonds. Similarly, Forestry Sector Master Plan first prepared in 1995 is being revised to meet the present-day forestry sector needs which again, together with NBSAP, NRIFAP, NAPCLD, and NAPCCI are good candidates for similar capital investment considerations during the debt restructuring process.
Sustainable energy
With respect to sustainable energy, especially the generation of electricity has become one of the most critical issues at present in Sri Lanka. The UNDP and ADB joint assessment of ‘Sri Lanka’s Power Sector – 100% Electricity Generation through Renewable Energy by 2050’ provides opportunities for green-bond solutions, among others in this area. Sri Lanka being one of the 43 countries of the Climate Vulnerable Group which are disproportionately affected by climate change, has signed the declaration at the 22nd COP meeting of UNFCCC in Marrakech, Morocco, in 2016, to reach these ambitious renewable electricity generation targets by 2050.
However, the UNDP-ADB joint assessment records that the Long-term Generation Expansion Plan (LTGEP) for Sri Lanka, 2015 – 2034 ( http:// pucsl.gov.lk/english/wp-content/uploads/2015/09/Long-Term-Generation-Plan-2015-2034-PUCSL.pdf) envisages adding at least two more coal-fired power plants, one in Trincomalee (2 x 300 MW) in 2029 onwards and the other in the Southern Region (3 x 300 MW) from 2027 onwards. The report however cautions that stiff resistance from local communities and possible litigation moves by environmental groups may lead to change this long-term generation plan. According to the same report (table 41: p 113), several thermal power plants are likely to be retired from operation due to their age -related mal-functioning and these capacities also will also need urgent replacements to ensure Sri Lanka’s growing electricity demands. Therefore, actual future coal-based capacity addition to our national grid may be much lower than planned. The same report adds that by 2050, the 100 percent Renewable Energy scenario can potentially save US$18-US$19 billion on imported coal as compared with the base case scenario, which relies heavily on coal.
‘Least cost principle’
The Ceylon Electricity Board’s long-term generation planning is based on the “least cost principle” which has led to its focus on significantly cheap coal-based capacity development. However, they have not considered the environmental and health cost externalities in their calculations. Inclusion of the cost of carbon emission, air-quality and health related issues and other externalities would provide a more realistic picture of benefit/cost of the use of coal for electricity generation. Unfortunately, the natural resource economists have not yet brought these environmental and health costs associated with coal-fired power plants in Sri Lanka to the attention of the CEB. Alternatively, it may be that the information available either from Sri Lanka or our neighboring countries have not been taken into consideration in the calculation of ‘least cost’.
Unless these developments are taken into consideration, the roadmap developed as a part of the LTGEP, while making provisions for increased adoption of renewable energy in the electricity generation mix, is unlikely to be the basis on which the Sri Lanka can transform its power sector into a 100 percent RE sector by 2050. Consequently, there is a pressing need for updating the LTGEP with the global shifts to renewable energy sources mandated by the Sri Lankan government in compliance with the UNFCCC recommendations. Such projects could be very attractive for international donors, and they may rank very high in eligibility for Green Bond investments.
COP 26 summit
Furthermore, at the COP 26 meeting of the UNFCCC held in Glasgow in 2021 set a new gold standard on the ‘Paris Alignment of international public finance’ to move away from Coal – the single biggest contributor to climate change by the end of 2021. Sri Lanka along with Chile, Montenegro and their European partners pledged that no new Coal Power Plants to be constructed in their respective countries. Alok Sharma, the British Minister of State at the cabinet office who was also the COP 26 president announced that more than 40 countries reached a deal and pledged to phase out coal – the dirtiest fossil fuel – by the 2040s. Two notable exceptions apparently had been the USA and China although the US has pledged to end public financing for fossil fuel projects abroad without any carbon capture and storage technology, by the end of 2022.
In the light of these recent developments, there is more than a silver lining in our gloomy horizon that through effective engagement at the future negotiations with the IMF and the lenders/creditors, Sri Lanka can capitalize on its current debt restructuring process to transform some of her International Sovereign Bonds to Green Bonds for funding Non-conventional Renewable Energy projects. These projects typically involve renewable energy generation and emission reductions among other benefits. Shifting from a coal power to a solar power project in Sampur in eastern Sri Lanka may be one such project put forward by the national Thermal Power Corporation of India recently although the details of the agreement have not been made public, as yet.
Enormous potential
There is an enormous potential for Sri Lanka to tap into these green/sustainability bond markets to finance its infrastructure projects/investments such as in waste management, renewable energy projects, biodiversity conservation, public transportation, climate change adaptation and mitigation. As shown above, large/medium/small scale green investment project plans have already been prepared and the sustainable financing infrastructure is already in place, and what is needed is a matter of prioritizing these differently sized projects in consultation with appropriate stakeholder groups.
Sri Lanka is a relatively small island with unparallel diversity of physical, biological and cultural features. Most of her leading agricultural exports are in the hands of a diverse set of smallholders which, in a way, are more resilient to cataclysmic changes that may come with the vagaries of the climate from time to time. Therefore, the biodiversity finance projects need not only conserve and sustainably utilize the natural resources but also take adequate measures to distribute the benefits equitably among these smallholders who had been the backbone of the Sri Lankan enterprise.
Finally, although Sri Lanka has been caught somewhat unawares in a fierce tropical storm, the charting out of it seems to be reasonably well laid out by the technocrats with the support from the international agencies. In order to steady the ship in these visciously turbulent waters, obviously we need a matching political leadership with a clear vision, calm but stern demeanor and strong commitment to steer the ship out of the rough seas to calmer waters. The least we need at this critical moment of despondency is a mutiny on board the ship which will only help those prying to grab the best of – as some would call it – ‘this unsinkable aircraft carrier’ in the Indian ocean. Concluded.
The author can be contacted at nimsavg@gmail.com
Opinion
Another big farce!
“Suresh Sallay is the mastermind behind the Easter Sunday attack”: For argument’s sake, let us assume this to be true even though it is far from being proved ‘beyond reasonable doubt’ by a court of law. Minister Ananda Wijepala, however, in his statement to the parliament painted a picture of absolute certainty of Sallay’s guilt. The unfairness and the implications of this callous statement was well analysed in the editorial “Probes and politics” (The Island, 12 June). International media picked up Minister Wijepala’s statement, making Sallay guilty in the eyes of the world. Perhaps, they are not aware that what is stated in the parliament of Sri Lanka is not necessarily the truth! The more important question is how the reputational damage done to Sallay can be reversed.
Shortly after concluding his statement, Minister Wijepala referred to what he called ‘unexplained’ deaths including that of Rajeewa Jayaweera, in 2020. The fact that Rajeewa, unfortunately, took his own life has been confirmed, repeatedly, by his family. When rumours started circulating after the death of Kapila Chandrasena, Rajeewa’s brother Sanjeewa wrote an article titled, “Sri Lanka Airlines Airbus Scandal and the Death of Kapila Chandrasena and my Brother Rajeewa” (The Island, 17 May), wherein he stated:
“On behalf of my sisters and myself, I wish to state unequivocally that my brother, Rajeewa Jayaweera, took his own life in June 2020 due to personal circumstances. His death had absolutely no connection whatsoever to his writings regarding the Airbus scandal. Neither the Rajapaksa’s, nor any political actor, nor any state agency was involved in his death. The magisterial inquiry into the matter returned a verdict of suicide. Those who know me personally are aware of my forthright and combative nature. Had there been even the slightest credible suspicion surrounding my brother’s death I would never have rested until justice was pursued. Since this was established clearly as a case of suicide, I sincerely hope that those who continue to circulate unfounded theories will finally allow the matter to rest with dignity.”
In spite of this heartfelt appeal, Wijepala’s mention makes it very insensitive, adding to the agony of Sanjeeva and his sisters. Further, this inaccuracy casts doubts on the entire statement, as the minister seems ill-informed. Going by his statement, the CID seems to think it has evidence for a successful prosecution. If so, why is it allegedly ill-treating Sallay? Is this punishment before conviction or is there a more sinister motive?
Even if details of torture mentioned in some quarters could be disregarded as exaggerations, there is no doubt that Sallay has been subjected to ill-treatment, which resulted in his admission to hospital. It is noteworthy that Wijepala mentioned that Sallay became uncooperative the moment Gota was prevented from leaving the country. Perhaps, it is in an attempt to implicate the Rajapaksas that the Minister mentioned Rajeewa’s death, quite unjustifiably and insensitively.
The most important question is whether the CID’s confidence is misplaced and biased. The fact that it is biased is obvious as the director of the CID is Shani Abeysekara. He and his superior, Ravi Seneviratne, both, have an ulterior motive. They are accused of failure to prevent the Easter Sunday attacks in spite of the information furnished by many agencies including the one headed by Sallay. They are apparently trying to find a scapegoat. It was bad enough for the NPP government to pull these two out of retirement and instal them in high posts of law-enforcement, without clearing their names, but allowing them to be in charge of this investigation illustrates that they are clueless of the dictum that “Not only must Justice be done; it must also be seen to be done.” This dictum, derived from the principle of natural justice and is followed the world over, clearly shows that mere appearance of conflict of interest is sufficient ground for a conviction to be quashed.
The working hypothesis of the CID seems to be that Sallay masterminded the Easter Sunday terror attacks to ensure Gotabaya Rajapaksa’s election as President. It was obvious that Gota had an easy ride and there was absolutely no need for Sallay or anyone else to resort to terrorism to enable him to win.
It is surprising that the Director of the CID went to Paris to record a statement from Azad Moulana, who fled Sri Lanka to avoid arrest, to get confirmation of what the latter stated to Channel 4. By the way, expenses incurred by the team that went to the UK regarding Ranil’s expenses are kept under wraps in spite of an RTI request. Perhaps, the team spent more public money than Ranil did!
Those driven by a vested interest must be hoping that Sallay will continue his fast and perish. This would be a better outcome for them given the farcical manner in which investigations are being conducted. It is hoped that their dream will not come true.
by Dr Upul Wijayawardhana ✍️
Opinion
A triumph for Pakistan’s skilled diplomacy at Iran-US talks
“Thanks to the tireless mediation efforts of Pakistan and Qatar, significant progress has been made in ending the war in Lebanon…”
–Iran’s Foreign Minister Abbas Araghchi on X
The recent Memorandum of Understanding (MoU) between Iran and the United States which resulted in a high-level meeting in Lucerne, Switzerland, is a testament to the highly skilled diplomacy of the South Asian nation, Pakistan, and is admirable for the very difficult task they undertook and achieved with panache. They remained unruffled throughout and continue to do so, despite the unpredictable nature of the relationship between the parties to the conflict, the US and Iran, at times turning publicly hostile, and subject to an influential spoiler in Israel determined to sabotage a positive outcome, making the process as delicate as defusing an explosive device with seconds to detonate.
Pakistan remained engaged steadfastly, even when the parties walked out of negotiations, refused to attend them, or seemed to give up any hope of a diplomatic endgame and returned to the Strait of Hormuz for actual and verbal wars. In the meantime, Lebanon was clearly being turned into the new Gaza, which was a red line for the Iranians.
The Pakistanis kept talking, visiting not only the two main belligerents USA and Iran, but the regional actors paying the price of an escalating conflict; perfecting the draft agreements while broadening the stakeholders who were invested in a peaceful diplomatic outcome, and aiming to do so as fast as was possible. It seemed like a long shot, especially with X messaging playing its now indispensable, often colorful role. The Pakistani team’s faith in the process was magnificently rewarded in the news coming out of Lucerne after the first day of negotiations of encouraging progress, with Qatar supporting Pakistan as joint mediator in the important venture.
This stage in the negotiations was described by Pakistani Prime Minister Shehbaz Sharif as “make or break”, which was also echoed by some analysts and mainstream media. The expectations were cautious but positive, and the world watched with renewed hope, if somewhat muted, as Pakistan presided over the opening media conference with confidence.
It wasn’t a perfect pitch to play on by any means: the Israelis had escalated their bombing of Lebanon, a million Lebanese were displaced and the Iranians had closed the Strait, yet again, with a day to go for the talks. As the teams were about to start negotiations, X swooped over Lake Lucerne dropping President Trump’s message about the Iranians being unable to return to “their f…..g country” if they didn’t open the Strait, the unprintable language no longer shocking through regular usage.
It was reported that the Iranians had included psychologists in their communications team in Teheran to comprehend the cultural idiosyncrasies of the President of the United States, which clearly helped them to remain engaged with the process in Lucerne despite the provocation. Iran’s response that the US should choose their words carefully because their weapons were at the ready to strike at Israel, had the media rushing to report that the talks had broken down. In a secondary issue, according to the Tasnim news agency, the US had wanted International Atomic Energy Agency (IAEA) Director General Rafael Grossi who was on site in Lucerne to be present at the talks, but Iran wouldn’t have it.
Great Innings
It is on this unenviable wicket that Pakistan, supported now by Qatar as mediators, seem to have played a beautiful innings.
The process was flawless. According to reports, the mediators met separately with the two teams to discuss the draft, before the main negotiations began. This would have minimised the points of disagreements which may have soured the atmosphere between the two signatories, while the mediators did the work to accommodate those views. The results announced after 12 hours of negotiations showed that all concerned stayed engaged with the process and were persuaded to sign on to a viable diplomatic roadmap.
According to the Ministry of Foreign Affairs of Qatar, which released the statement on the 22nd of June 2026 from Lucerne, they agreed to establish several creative mechanisms which have every chance of keeping things on track:
* A High Level Committee, which will provide political oversight on the mediation.
* Chief negotiators will report regularly to the High Level Committee
* Working groups on nuclear issues
* Working group on sanctions
* Working group for monitoring, and dispute resolution group to ensure the effective implementation of the MoU and on other matters.
* A communication line between the parties to avoid incidents and miscommunication with the aim of safe passage for commercial vessels through the Strait of Hormuz.
· A de-confliction cell between the parties, the Lebanese Republic and facilitated by the Mediators, to ensure the adherence of the termination of military operations in Lebanon.
Pakistan has always had well-trained, sophisticated diplomats. I was lucky to have met several and see their outstanding performances at the United Nations in Geneva, Paris, Lisbon and Singapore. They played a role well above the size of their economy or weight in world affairs. My first encounters with Pakistani diplomats were in Islamabad, where my father was Chargé d’Affaires at the Sri Lankan High Commission, and I made lifelong friends at the Institute of Modern Languages where trainee diplomats and military officers studied, and which I too attended.
Their diplomats were always well-spoken, well-versed in diplomatic practice and were often the first to protest if procedure was violated in those forums. They worked tirelessly, were no strangers to long hours, and were motivated to keep going until a result was reached. Their language skills, especially in the most widely used global language English, which they retained, as did India, as the language of higher education and administration, served them very well.
Pakistan and Sri Lanka
From what I have seen, Pakistan was impressive in their solidarity with their regional partners, often taking the lead to resolve issues, being regularly elected to speak for the OIC (Organization of the Islamic Conference), for example. Sri Lanka could unhesitatingly rely on their firm friendship and support, and played a leading role during my husband, Dr Dayan Jayatilleka’s tenure as Ambassador/PR in Geneva during the decisive last years of Sri Lanka’s war and in the immediate aftermath, when Sri Lanka was under severe pressure at the UN Human Rights Council.
As trusted supporters, my husband invited them to be part of a mechanism that he proposed to the EU of a “Quad” which would represent Sri Lanka’s interest, together with him as Sri Lanka’s Permanent Representative to the UNHRC, in all further negotiations with the EU which had 12 members in the Human Rights Council. The EU was exerting pressure on him to meet with the 12 of them for further talks on the draft resolution into which they meant to insert accountability for war crimes and to remove any reference to Sri Lanka’s sovereignty which Dayan had refused to countenance.
Pakistan readily agreed, as did India, as well as Cuba as the current chair of the NAM and Egypt as the incoming Chair of NAM, to form the Quad. As it happened, while the Quad was more than ready to debate any issues, the EU decided not to continue with the meeting after that show of regional and Global South solidarity and strength. The Quad however continued to operate as a unit and played a critical role at a moment in the proceedings when unexpected negotiations were called by the President of the Human Rights Council in the middle of the Special Session, and stood solidly together refusing to budge on the agreed draft. In this instant, India and Pakistan worked closely together in support of Sri Lanka, earning our eternal gratitude.
Pakistan’s emergence as a global player navigating complex international issues with such sophistication and facility, was no surprise to those who had seen them function. And yet it was not known widely. When Lakshman Kadirgamar was Foreign Minister of Sri Lanka, he sent my husband together with a few others to observe Pakistani Foreign Policy think tanks and to learn their modus operandi. The group returned impressed. The only surprise perhaps has been its overtaking of India, a great regional power, in global conflict resolution. India has been conspicuously silent, and has had no role in these important initiatives.
Exceptional Global Diplomacy
The Pakistani diplomatic initiatives taken when all seemed lost, and sustained against all odds have offered the world a valuable interlocutor in conflict resolution, and their place in global diplomacy is now acknowledged. The MoU between the United States and Iran is called the “Islamabad Memorandum of Understanding”. Analysts have said that this initiative is significant for the fact that unlike the JCPOA, regional actors rather than extra-regional ones have been made stakeholders, therefore has a considerable probability of success.
This is a significant achievement of no small measure, because Iran and the United States have been hostile for decades. In the only high-level meeting since 1979 between the two countries which took place recently in Islamabad, Pakistan has managed the process with remarkable patience, confidence and faith, to bring it along to a place of hope. According to Pakistan TV, at the end of the Lucerne meeting, JD Vance praised Pakistan’s role in bringing the US and Iran together to the negotiating table, calling PM Sharif and Field Marshal Munir, his best friends in the region. He had also said “We love Pakistan”.
Considering what Pakistan had actually attempted and succeeded in doing, this is remarkable. It has been able to by-pass the decade’s old propaganda against Iran as an existential threat in the region, especially to Israel, which was an established position in US policy circles. Consider the context: Trita Parsi, Executive Vice President of the Quincy Institute based in Washington revealed in an interview with Tucker Carlson that Israel has been pushing the narrative of Iran as an existential threat to their country for decades with success, while not believing it themselves within Israel. He said when he did his PhD on the subject, he interviewed several top officials including those in intelligence services in Israel, and found that rather than the irrational, destabilizing, suicidal actor they were portraying Iran as, successfully, to US policy circles, they believed the opposite, and regarded their adversary as a cautious calculating, rational actor. ().
JD Vance’s optimistic framing of the Lucerne discussions as a historic opportunity to transform the Middle-Eastern region for long term, sustainable peace is a testament to Pakistan‘s expert navigation of the diplomatic Hormuz Strait where a number of intractable issues had no safe passage, but are now freed for discussion.
With the dedication, expertise and diplomatic skills that the mediators have shown, the on-going process

itself may be considered a victory. The new development in this round of negotiations, that of active engagement of regional countries, may yet help protect the process, and assist in the complex navigation required to circumvent the mines that may be placed in its way.
by Sanja de Silva Jayatilleka
Opinion
SL needs an education system focused on global job market
Education is widely recognised as the foundation of national development. For decades, Sri Lanka has maintained a strong commitment to free education, producing a highly literate population and creating opportunities for millions of students regardless of their socioeconomic background. While this achievement deserves recognition, the challenges of the twenty-first century demand a new approach to education. The modern world is characterised by rapid technological advancement, globalisation, and an increasingly competitive international job market. To ensure economic growth and prosperity, Sri Lanka needs an education system that prepares students not only for local employment but also for opportunities across the global workforce.
The traditional Sri Lankan education system has largely been designed around academic examinations and university entrance. Success is often measured by performance in the Grade Five Scholarship Examination, G.C.E. Ordinary Level Examination, and G.C.E. Advanced Level Examination. While these assessments have helped maintain academic standards, they have also created a culture that prioritizes memorization and examination results over practical skills, innovation, and adaptability. As a result, many graduates possess theoretical knowledge but lack the competencies required by modern employers.
The global job market is undergoing significant transformation. Technological innovations such as artificial intelligence, automation, robotics, and digital communication are reshaping industries worldwide. Many occupations that existed a decade ago have evolved dramatically, while entirely new professions have emerged. In this environment, employers seek individuals who can think critically, solve problems creatively, work collaboratively, and adapt quickly to change. Therefore, Sri Lanka’s education system must move beyond traditional learning models and embrace a curriculum that develops these essential skills.
One of the most important reforms should be the integration of digital literacy and technology education across all levels of schooling. In today’s world, computer skills are no longer optional; they are fundamental requirements for employment in nearly every sector. Students should be introduced to coding, data analysis, cybersecurity, artificial intelligence concepts, and digital communication tools from an early age. Familiarity with technology not only increases employability but also encourages innovation and entrepreneurship. By equipping students with technological competencies, Sri Lanka can create a workforce capable of competing in international markets and attracting foreign investment.
Another critical area is English language proficiency. English remains the dominant language of international business, science, technology, and higher education. Although English is taught in schools, many students complete their education without achieving fluency. This language barrier limits access to global employment opportunities and international professional networks. A modern education system should place greater emphasis on practical communication skills, including speaking, listening, presentation, and professional writing. Enhanced English proficiency would allow Sri Lankan graduates to engage confidently in multinational workplaces and global industries.
In addition to technical and language skills, the education system must focus on developing soft skills that are highly valued by employers worldwide. These include communication, teamwork, leadership, emotional intelligence, time management, and problem-solving abilities. Many international companies report that technical knowledge alone is insufficient for workplace success. Employees must also collaborate effectively with colleagues from diverse cultural and professional backgrounds. Schools can nurture these qualities through group projects, debates, leadership programmes, extra-curricular activities, and community service initiatives.
Furthermore, vocational and technical education should be given greater recognition and support. For many years, Sri Lankan society has emphasised university education as the primary path to success. However, global economies increasingly require skilled technicians, engineers, healthcare professionals, digital specialists, and tradespeople. Countries with strong vocational education systems often experience lower unemployment rates and better alignment between education and labour market needs. Sri Lanka should expand vocational pathways and create stronger partnerships between educational institutions and industries. Such collaboration can provide students with hands-on experience, internships, apprenticeships, and direct exposure to workplace environments.
Entrepreneurship education should also become a key component of the curriculum. The future workforce will not consist solely of employees working for established organizations. Many young people will create their own businesses, develop innovative products, and participate in the digital economy. Schools should teach financial literacy, business planning, marketing, innovation management, and basic economic principles. Encouraging an entrepreneurial mindset can help students identify opportunities, manage risks, and contribute to economic growth through job creation.
Another important reform involves the modernization of assessment methods. The current examination-focused system often rewards memorization rather than genuine understanding and practical application. Global employers are increasingly interested in competencies rather than examination scores alone. Therefore, schools should adopt more diverse forms of assessment, including research projects, presentations, portfolios, practical assignments, and collaborative problem-solving activities. Such methods provide a more accurate reflection of students’ abilities and encourage meaningful learning.
Teacher development is equally essential for successful educational transformation. Teachers play a central role in shaping student learning experiences. If educators continue to rely on outdated teaching methods, curriculum reforms will have limited impact. Continuous professional development programs should train teachers in modern pedagogical approaches, digital technologies, student-centered learning, and industry-relevant skills. Empowering teachers with contemporary knowledge and resources will enable them to prepare students more effectively for global career opportunities.
The education system should also foster global awareness and cultural understanding. As businesses increasingly operate across national borders, employees must be capable of working in multicultural environments. Subjects such as global studies, international relations, environmental sustainability, and intercultural communication can broaden students’ perspectives and prepare them for participation in a globalized world. Exposure to international issues helps students develop adaptability and appreciation for diversity, qualities that are highly valued in multinational organizations.
Moreover, stronger connections between education and industry are necessary. Curriculum development should involve input from employers, professional organizations, and industry experts to ensure that educational content remains relevant to labor market demands. Regular reviews and updates can help schools respond quickly to changing economic trends and technological advancements. Such collaboration reduces the gap between what students learn and what employers require.
Sri Lanka stands at a critical moment in its educational journey. While the country’s free education system has produced significant achievements, the demands of the global economy require a more future-oriented approach. An education system focused on the world job market should emphasize digital literacy, English proficiency, soft skills, vocational training, entrepreneurship, global awareness, and practical learning experiences. It should move beyond rote memorization and examination-centered learning toward the development of adaptable, innovative, and skilled individuals.
By implementing these reforms, Sri Lanka can create a workforce that is competitive on the international stage, capable of securing high-quality employment opportunities, and prepared to contribute meaningfully to national economic development. Investing in such an education system is not merely an educational reform; it is a strategic investment in the future success and prosperity of the nation.
BY Saumya Aloysius
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News4 days agoUS Assistant Secretary of State for South and Central Asian Affairs meets President
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Business5 days agoUniversity of West London opens Sri Lanka’s first full UK university branch campus
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Features6 days agoThe Sirisena – Ranil conflict and events leading to MR’s return as PM
