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THE BANKING COMMISSION

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CHAPTER 9

(Excerpted from N.U. JAYAWARDENA The first five decades)

NU, aged 26, published his first important article on the Sri Lankan economy, in the Ceylon Observer Centenary Issue of 4 February 1934 – two months before he was to begin work at the Banking Commission. It was a sweeping 100-year survey of the economy between 1834 and 1934, written in his clear style. As he stated:

“One of the arresting features of the economic history of Ceylon during the last hundred years is the phenomenal growth of her trade. Between 1834 and 1926, when the peak was reached, the value of trade increased nearly two hundred fold. In the same period there also occurred a complete change in its character and distribution. From a few staple articles, the schedule of imports and exports has expanded into a numerous list, which, particularly in regard to imports, is continually increasing.”

The article not only described imports and exports over the period and issues concerning the balance of trade, but also the fluctuations in the economy, and cyclical recessions, including the collapse of the coffee industry in the late 1870s. NU wrote about the five-year recession (1880-85) caused by the coffee crisis, the “annihilation of capital values,” and the collapse of the Oriental Banking Corporation in 1884, one of the country’s early ventures in banking. The period 1900 to 1913 he styled the “Good Years,” a unique period of “universal progress and real prosperity”; and he claimed that there was “no comparable period in the history of Ceylon trade,” in tea, rubber, coconut and graphite. NU, who would soon be involved in analysing the need for a national bank, described the crash of that banking corporation in 1884 as follows:

It was one of the most terrible blows that ever fell on Ceylon. The effect was disastrous for a time, but the courageous action of the Governor in guaranteeing the discredited notes of the defunct bank saved the country from far more serious evils.

“Afghan” man (Pathan)

What NU called an “unparalleled development” occurred from 1886 to 1900 when tea, coconut and minor products flourished with “the rush of tea” becoming “a veritable stampede,” resulting in large exports and increased imports. This boom “of the first magnitude” ended with the First World War of 1914-18 which was a “cataclysm” and “universal upheaval.” The rubber and graphite industries, which had soared due to wartime demands, “fell headlong” in 1918. This was followed by what NU referred to as “the craziest boom in history,” with a “terrible orgy of spending” occurring between the decades 1919 to 1929, when the value of both exports and imports soared. But fluctuations continued and the “Good Years” ended in the Depression of 1929-33:

The Wall Street Crash in the summer of 1929 heralded the advent of the depression. In the next five years it raged in full force; tea, rubber and coconut all withering before its icy blast. The destruction it wrought and the misery it fostered form recent history and require no repetition. Trade shrank in value to pre-war figures…

The bottom was not reached until 1932, when exports receded to what they were 22 years ago. (ibid)

He concluded by asking the question: “Is this only a passing ripple before a gathering storm or an omen of better times to come?”

The Economic Depression of 1929-33

NU would have been profoundly affected by the Depression. He not only witnessed the impoverishment of his country through economic collapse, but would also have seen the value of his rubber holdings fall sharply. ‘From rags to riches’ was a phrase NU often used (speaking of himself ), but the period 1929 to 1933 was a case of the opposite – as the country descended from the ‘boom years’ of the mid-1920s, to the hard times of the Depression. The following figures from H.A. de S. Gunasekera (1962, p.165) vividly illustrate the extent of the drastic fall in the prices of tea and coconut as well as the “ruinous slump in the rubber industry” (ibid, p.66).

Another adverse consequence of the 1929-33 Depression was linked to imports – mainly foodstuffs and manufactured goods. The fall in the prices of Sri Lanka’s exports – mainly primary products – was greater than the fall in the price of industrial goods, leading to a serious adverse balance of trade (ibid, p.174).

As Gunasekera (ibid, p.174) comments: “The largest deficit occurred in 1932 when the value of exports declined to nearly onethird of its value in 1926 while the value of imports had fallen only one-half.”( The prices of exports in this period, taking 1925 as the base year, were calculated by Professor Das Gupta (quoted in Kumari Jayawardena, 1972, p.311)

The Depression resulted in grave financial difficulties for local capitalists, who had few sources of credit. These difficulties were a cause for concern since foreign banks were also reluctant to give credit to locals. In 1929 the labour leader A.E. Goonesinha said, “never since British rule has the country been faced with such a terrible plight” (K. Jayawardena, 1972, p.310). He was not exaggerating. All classes – capitalists, landowners, clerks and workers – were hit by the dramatic slide in the economy, and the country was exposed to the worst hazards of the trade cycle. As a consequence, plantations and factories were forced to close down, and government and private firms had to lay off employees, resulting in severe unemployment among skilled, unskilled and white-collar workers. This created many social problems.

Some consequences of these events included the increase in communal clashes fuelled by trade union leaders, who in a situation of unemployment, raised slogans calling for the ‘deportation’ of workers from Kerala (Malayalis), who were part of the Colombo workforce. Moreover, ethnic tensions spread to the middle classes who, affected by the Depression, denounced the South Indian Chettiars for their grip on credit facilities.

The Chettiar Phenomenon

The need for a national Bank of Ceylon was keenly felt in the years of the Depression. The British banks did not think locals were creditworthy, and as there were no national commercial banks at this time, Sri Lankan borrowers were dependent on a rather primitive credit system run by the Nattukottai Chettiars. As W.S. Weerasooria, in his book on the Chettiars, wrote:

For most Ceylonese the Chettiars were the only source of credit, whether long term or short term. They made loans for the purchase and development of estates as well as for trade, production and consumption… Whatever

Ceylonese enterprise existed was largely indebted to the assistance provided by the Chettiars. Ceylonese exporters and importers, retailers and small ‘boutique-keepers’, estate owners, coconut millers and arrack renters… had to obtain accommodation from the Chettiars… [who] were responsible for the thin trickle of credit which found its way to internal trade and production. (Weerasooria, 1973, p.28)

Weerasooria notes the “alliance” between the British banks and the Chettiars. These banks loaned the Chettiars over Rs. 25 million in the years between 1900 to 1925, and “the Ceylonese who borrowed from the Chettiars paid high interest rates referred to in business

circles as the ‘Chetty rate of interest’” (ibid, p.xv). The emergent local capitalists, merchants and plantation owners – who up to the 1920s had done well – were also heavily dependent on Chettiars for credit from the 19th century onwards. Lavish weddings were held and large dowries given with loans obtained from Chettiars, and often at these weddings the Chettiar had an honoured place. As H.A. de S. Gunasekera (1962, p.196) commented, the Chettiar was: …ready to accommodate the genuine businessman… the speculator and spendthrift. He lent as readily to the exporter of desiccated coconut as to the impecunious landowner trying to raise a dowry for his daughter.

In fact, many government servants – some from the highest levels of government – were reliant on the Chettiars for loans. According to Vernon Gunasekera (1981, pp.34-35), in the 1920s and early 1930s it was not an uncommon sight to find Chettiars waiting outside government or mercantile offices, in Colombo or provincial towns, to lend money or collect repayment. The problem became so acute that the first State Council of 1931 amended legislation, making it a penal offence for moneylenders to demand payment in person at anyone’s residence or place of work. This was initiated after “a plaintiff-creditor tried to serve writ on a legislator entering the Council.”

NU at his desk

The managerial staff of the foreign banks was European, while the clerical staff consisted of Sri Lankans. The Banking Commission reported on the social distance between local investors and the foreign bankers:

An ordinary Ceylonese has no opportunity to meet a European bank manager or even a junior officer, in his daily life, but a European merchant can almost daily meet his banker in the club or on the sports field.” (Weerasooria, pp.30-31, quoting from the Ceylon Banking Commission Report)

The problems culminated in 1925 when a Chettiar firm collapsed, the banks stopped giving loans to Chettiars. During “The Chetty Crisis,” as it was called, the Chettiars began to foreclose on local borrowers. Weerasooria (p.xvi) referred to:

…the spate of litigation initiated by the Chettiars against their Ceylonese borrowers who had defaulted in payment. Many a Ceylonese landowner lost his property to the Chettiar and many a Ceylonese debtor ended up in the Insolvency Court at the instance of his Chettiar creditor.

The “Chetty Crisis” of 1925 revealed not only the dangers of indiscriminately advancing unsecured loans, but also the gross inadequacies of the prevailing credit system and the need for a national bank.

The Banking Commission

H.A. de S. Gunasekera (1962, p.200) has observed that:

At a certain stage in the history of every colonial country, there grows up an indigenous capitalist class increasingly anxious not only to take over political responsibility, but also to play a larger role in the economic life of the country.

There was a public outcry at the worsening economic situation, inspired by growing national sentiment among politicians, local traders and landowners. In the State Council, George E. de Silva, the member for Kandy (known for his reformist and nationalist leanings), proposed in November 1932 that a commission be appointed “to go into the system of commerce, banking and insurance of this island.” This resulted in the appointment of the Ceylon Banking

Commission with Sir Sorabji N. Pochkhanawala, an Indian banker, as chairman, along with Sir Marcus Fernando and Dr. S.C. Paul as members. Professor B.B. Das Gupta served as Secretary, and N.U. Jayawardena as Assistant Secretary to the Commission. Pochkhanawala had worked as an accountant in two banks in Mumbai, the Bank of India Ltd – a private bank established in 1906 – and another private bank named the Central Bank of India Ltd, Bombay, founded in 1911.

He belonged to the Parsi community of India which, from the 19th century onwards, dominated the local entrepreneurial, banking and managerial sectors in India, and were renowned for their pioneering activities in Indian capitalist development in colonial times. Amiya Bagchi writes that the Central Bank of India Ltd.: “was the outcome of the Herculean efforts of… S.N. Pochkhanawala, who prevailed upon Sir Pherozeshah Mehta to be its chairman.

” By 1923 this bank was “the biggest Indian joint-stock private bank in terms of capital and reserves” (Bagchi, 1997, p.103). By 1934 Pochkhanawala, who had been knighted for his services to the banking sector, had become the managing director of the Central Bank of India Ltd., and in later years became its chairman. Pochkhanawala was to help Sri Lanka launch its first national bank. Pochkhanawala’s earlier “Herculean efforts” were, no doubt, qualities that inspired NU, who worked closely with him in the arduous work of the Banking Commission.

Public sittings of the Banking Commission were held, during which evidence was taken from 287 individuals and institutions. Many moving accounts of bankruptcy, indebtedness and financial ruin were related at those sittings, providing NU with an in-depth exposure to the hardships endured at that time. The findings and evidence contained in two volumes were published as Sessional Papers Nos. XXII and XXIII in November 1934.

George E. de Silva, who had proposed the establishment of this Commission, gave important evidence at the sessions, voicing the concerns of all classes of Sri Lankans during the Depression years – including the entrepreneurs, merchants and government servants. Speaking as a nationalist politician, his main grievance was the foreign control of banks in Sri Lanka and “the tremendous price the country is paying in allowing their banking to be done by foreigners.” In his words:

It is curious that none of the banks working in Ceylon is owned by Ceylonese. I should be surprised if Ceylonese held shares in these banks. These banks have not brought capital from abroad but are working here by collecting and utilizing the money of this country. They pay a small rate of interest on their deposits and that money is again lent to people of this country through the intermediary of Shroffs and Chettiars at a high rate of

interest, sometimes 15 to 18 per cent. The interest that is ultimately paid by the borrower is so high that his business or production can hardly bear it. The result of this system could be nothing but collapse and failure in the end. (Banking Commission, 1934, vol.2, pp.419-21)

George E. de Silva also criticized the absence of a “national policy,” and the failure of the banks to train locals, and elaborated on the lack of investment and therefore of economic development. He stated:

The existing banking system lacks national policy, which would certainly be in the forefront if the institutions were in our own hands. There would then be the desire to assist in the growth of our economic resources. The present bankers have not that patriotism to guide them. Their object is merely to make money and assist the trade and industries of their countries… [They] have deliberately kept out people of the Island from responsible posts. It would have been something if they had realized their responsibility to Ceylon and tried to train our own men in the banking profession. (as quoted in Ceylon Banking Commission, vol. 2, 1934, pp.419-21)

The impact of the economic depression on local investors was deplored by de Silva. He also blamed the policies of the foreign-owned banks during these years of crisis. If national banks had existed then, they “would have adopted more sympathetic policies,” he added. Gunasekara notes that this problem was common in a colonial situation:

The failure of foreign banks to integrate themselves fully with the internal economy has been a common phenomenon in countries which have been the field of capital investment by overseas countries. (Gunasekera, pp. 204-5)

The problems and hardships facing the local plantation owners were described by de Silva:

Our people borrow money for developing estates and they pay exorbitant rates of interest. As soon as the estates approach bearing point they find themselves in difficulties and cannot meet their obligations. Ultimately the land has to be sold and the borrower loses all his inheritance and life savings.

The plight of low-income groups such as clerks was also referred to by de Silva:

The people are heavily in debt. Moneylenders, particularly the Afghan [Pathan] type, do a thriving business charging poor unlucky persons sometimes over 100 per cent by way of interest. Mostly poor people and clerks

get into their clutches and they are ultimately ruined. (as quoted in Ceylon Banking Commission, vol. 2, 1934, pp.419-21)

An “Invaluable Document”

The Ceylon Banking Commission Report, according to Weerasooria, “is looked upon as one of the best and most authentic and authoritative accounts of the financial and economic condition of the island at that time” (Weerasooria, 1973, p.xvii). Gunasekera (1962, p.201), describes the Commission Report as: an exhaustive analysis of every aspect of credit in Ceylon, ranging from the organized credit institutions such as the commercial banks and the State Mortgage Bank, to the Chettiars, pawnbrokers, ‘boutique keepers’ and Afghan moneylenders who were the main suppliers of credit to the Ceylonese population.

The Commissioners acknowledged the work of NU, stating at the end of the Report that they “wished to place on record our appreciation of the able help that we have received from our Assistant Secretary with his knowledge and experience of Government Departments.” NU claimed that “the brunt of the work” of the Commission fell on him, especially as the Secretary, Das Gupta, served only on a part-time basis. Interestingly, as NU progressed upwards in his career, he would work again with Das Gupta in different capacities, first in the University College of Ceylon and then later in the Central Bank, when NU became Deputy Governor.

NU not only contributed to the work of the Banking Commission but also would have learned much from this important exercise, benefiting from interaction with Pochkhanawala and Das Gupta and also from listening to the evidence presented from a variety of sources. For NU, whose Economics degree had given him a theoretical understanding of the subject, the shocking stories of financial ruin of Sri Lankans during the Depression exposed him to the practical economic problems that people faced. It was a lesson in the economic realities of colonial rule, the backward nature of the economy, the need for local financial institutions, the class structure of Sri Lankan society and the role of foreigners – both British and Indian – in controlling credit. Being associated with a key commission on banking would have further bolstered NU’s interest in the banking sector, with which he remained closely involved for the rest of his life.

For NU, the experience was of tremendous value. Many years later, in 1961 as a Senator, NU, in a debate on the Budget and the Bank of Ceylon, would refer to the Banking Commission as being
the place where he cut his “financial teeth.” (N.U. JAYAWARDENA The First Five Decades Chapter 8 can read online on https://island.lk/early-career-and-londondegree/)

By Kumari Jayawardena and Jennifer Moragoda ✍️
Such financial teeth as I possess were cut with the Commission that was appointed to examine the banking system of this country – the Pochkhanawala Commission – of which I was Assistant Secretary.(N.U. Jayawardena, Senate Debate, 3 Oct. 1961, Hansard, p.832)



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West Asian conflict undergoing manifold complications

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Captain Machchhar; heroism in the skies.

Israeli Prime Minister Benjamin Netanyahu’s message to Israel’s enemies was blunt and stark.‘We’re going to win; we have no choice.’ He said so while the majority of attendees at a recent UN General Assembly session walked out of the conference hall when the Israeli Prime Minister took the podium; many of them booing in derision.

Those commentators who have been studying Israel’s handling of her enemy states over the decades are unlikely to dismiss the entirety of Netanyahu’s address as rhetoric. The general pattern has been for the Israeli state to stand up firmly against its enemies in the battle field. On most occasions, these adversaries have been beaten back.

It is also little realized in particularly the Southern hemisphere that Israel, for the most part, could defend herself without much US assistance. The history of the conflict bears this out.

However, from the viewpoint of working towards a just and equitable peace in the Middle East the Israeli hard line stance has proved and will prove incalculably detrimental. The sworn enemies of Israel are not going to be in any way deterred by Netanyahu’s stark warnings. On the other hand, they would be only further provoked into taking on Israel by conventional or unconventional military means and seek its destruction.

The recent aborted mid-air hijacking of a Flydubai flight, consisting mainly of Israeli passengers, by an Omani extremist drives home the point. Israel’s enemies are bound to redouble their efforts to annihilate Israel rather than be deterred by the latter’s warnings about standing firm against them. This too history has proved.

It would be in the fitness of things at this juncture to pay a tribute to the professionalism, courage and humanity of the relevant airline pilot, Captain Machchhar, whose timely action proved decisive in botching the hijack attempt. His intervention averted what could very well have been another 9/11 type tragedy. History is not going to forget his daring and resourcefulness.

Meanwhile, the ground realities in West Asia are undergoing further complications that portend increasing regional instability. For example at the time of writing Turkiye, Pakistan and Saudi Arabia have agreed under the recently established ‘Mecca Alliance for Defence’ to deploy ‘deterrence measures’ collectively in the event of any member of the alliance coming under military strikes from a non-member state.

The agreement is modeled on the NATO collective defence pact and should help in defusing any threat perceptions experienced by the alliance members in the short term. However, the group would need to be cognizant of the major and potentially divisive role Iran could play in the interstate politics of the Middle East region going forward.

Iran’s reported support, for example, for Yemen’s Houthi rebels, who are engaged in attacking Saudi national assets, could at some point in time compel the alliance, under the terms of the pact, to initiate deterrent military measures against Iran.

The implications for regional peace from such a turn of events hardly require elaboration. A full blown regional war emerges as a distinct possibility if Iran sees itself as being excessively antagonized by the alliance. A further complication is that antagonistic sectarian identities of an Islamic kind could come to play hugely divisive roles in it. Shiite Islamic states would be inclined to back Iran while those countries seen as Sunni Islamic in orientation are bound to support Saudi Arabia.

Accordingly, West Asia is a region rife with manifold aggravated insecurities. If the latter are not defused dexterously they could escalate into a conflict of extra regional dimensions. The latter development would render the world a collective loser.

Unfortunately, no constructive help could be expected from the US at this juncture by way of working towards regional and international peace even of short durance. Its war against Iran has only aggravated the world’s current insecurities.

For example, the world has been compelled to face the possibility of compounded economic woes as a consequence of the Hormuz crisis remaining unresolved. The world is currently experiencing what could be seen as a ‘winter of economic discontent’ of unprecedented proportions.

Unfortunately, the international community is to all intents and purposes helpless in the face of this multifaceted crisis. Substantial intervention is expected of the UN but since it has failed to reform itself over the years it is compelled to stand idly by while the world’s insecurities heighten and multiply.

Yet, it is the seemingly paralyzed UN system that has some potential to contain the current tide of international disorder to even a small measure. Given the persisting divergent and conflicting interests among the world’s principal power blocs, the G7 and BRICS for instance, it is mainly the UN and its principal agencies that could carry some credibility as peace brokers and mediators.

However, as an initial step towards bringing the principal protagonists to the negotiating table the UN would need to convince the principal powers of the UN Security Council of the need for a substantive broad-basing of the membership of the Council so as to reflect more accurately the current global political and economic realities. Such reforms would render the Council more representative and help in strengthening its credibility and effectiveness.

The above reforms call for years of dynamism, hard work and resourcefulness on the part of the international community, read the UN. Yet the aims are not impossible to achieve if strong leadership is brought to bear by the UN.

Meanwhile, the UN agencies and allied organizations need to pay stepped-up attention to the West Asian theatre and its wasting conflicts and wars. Here too there is immense hard work to be put in.

There is, for instance, identity politics and its issues that need to be managed urgently. While internal political matters of countries could not be addressed directly by UN agencies, awareness-raising programs and projects could be energetically carried out by them to blunt the appeal of identity-based slogans, relating to, for instance, religion and race.

Besides, values at the heart of democratic politics need to be freshly and enthusiastically propagated. Vast reserves of energy and resources are needed, to be sure, to consistently champion and implement these crucial projects but they need to be pursued single-mindedly if even a dent is to be made in the current runaway global disorder.

The aborted hijacking of the Flydubai flight pointed to the dehumanizing impact of identity politics on the human consciousness. It was also an indication that those sections endowed with humanity cannot stand idly by while identity politics continues to destroy civilizational values. The time to act is ‘now’.

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Future of Sri Lanka’s state university system: Should it be shut down and reopened?

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by Professor Ranjith Bandara
Emeritus Professor of Economics, University of Colombo

My life has been closely connected with Sri Lanka’s state university system for more than four decades. Its doors opened to me first as a student and later as an academic. The system gave me knowledge, opportunities and a life. Therefore, when I speak about its future, I do so not as an outsider, but as someone who owes much to it and genuinely wishes to see it become better.

Over the years, our university system has expanded significantly. New institutions, faculties, degree programmes and opportunities for students have been created. For 2024, the government expected to admit 43,204 students to national universities. By the time the relevant report was prepared, 42,282 students had been admitted through the general admission process, which had not yet been completed. This is an achievement that should not be dismissed.

However, expanding the system does not necessarily mean that its quality has improved. The real question is not simply how many students we have allowed through the doors, but what kind of education they receive after entering. (Source: Ministry of Education Annual Performance Report 2024.)

We often proudly declare that “our university is number one.” Yet a university does not become number one through publicity. Its true standing depends on the quality of its teaching, the strength of its research and the contribution it makes to society. A vice-chancellor writing about the institution’s, or his or her own, achievements on Facebook does not improve the quality of a university. What matters is good teaching, an education that encourages students to think, credible research and new knowledge that benefits society. A reputation must be earned through meaningful work, not through self-promotion.

The fundamental purpose of a university is clear: to create knowledge, to teach it and to train students to examine and understand it critically. To fulfil this purpose, academics need freedom, responsibility and time. Students must be free to ask questions, disagree and develop their own views based on evidence. Without such an environment, a university may award degrees, but it cannot fulfil the true purpose of university education.

The most serious danger I see is the growing tendency for political activity to take precedence over the academic mission of universities. Over the past five decades, this problem has gradually become more serious. In some universities today, it has become difficult even to hold or express an opinion that differs from the dominant political view.

Members of a university community have every right to hold political views and express them peacefully. A university should not be a place inhabited by silent people. However, when political loyalties, power blocs and struggles for positions become more important than research, teaching and learning, the university moves away from its true purpose. When the political camp to which an academic belongs matters more than the value of that academic’s ideas, the respect that should belong to knowledge is transferred to power.

These criticisms are not ideas I have borrowed from books. They are based on experiences from my own professional life. One such experience was the manner in which I had to leave the university nearly twenty years ago. In my view, the improper exercise of political power within the administration of the University of Colombo at that time, and the strong desire to retain that power, had a serious effect on my professional life. Although this was a personal experience, I mention it with regret because it reveals a deeper institutional problem.

The lesson I learned from that experience is not merely about one person or one incident. When there are no strong institutional safeguards to ensure that power is exercised fairly and individuals are protected, even an academic may be forced to leave an institution he deeply loves.

To those who criticise my later decision to enter national politics, my answer is this: when the university’s institutional system failed to provide me with fairness and professional protection in the face of the injustice I experienced, I had to choose another path through which I could use my knowledge and experience in the service of the country.

This does not mean that all vice-chancellors, academics or students behave in the same way. I personally know many people who, despite difficult circumstances, have taught with dedication, undertaken meaningful research and transformed the lives of their students. Scholars such as Professor W. D. Lakshman, Professor Arjuna Aluwihare and Professor Lakshman Jayatilake may be recognised among the distinguished vice-chancellors in the history of Sri Lanka’s university system. Their service deserves our respect and appreciation.

Nevertheless, the presence of a few good and committed individuals cannot, by itself, strengthen a weak institutional system. We must also create an institutional environment in which such people can work independently, fairly and effectively.

First, university leaders must be selected through a process based on clearly defined qualifications, transparent evaluation and accountability. Once a vice-chancellor has been appointed, his or her performance should be assessed according to the support provided for research, the quality of teaching, student welfare, the institution’s financial discipline and the fairness of its decisions. Personal loyalties and publicity skills cannot replace these measures of performance.

Second, academics must be given the time and space required to carry out their core responsibilities. It is meaningless to demand “world-class universities” without providing adequate time, facilities and reasonable funding for research. Teaching, too, should not be treated merely as delivering lectures. Students must be trained to reason, write, investigate and apply their knowledge to real-world problems. The quality of a degree programme should be measured not by its title, but by the capabilities of the graduates it produces.

Third, universities must establish an honest connection with the needs of the country. The problems confronting our economy, schools, healthcare system, agriculture, environment and wider society are all legitimate subjects for research. Seeking answers to these problems does not diminish the dignity of a university; it increases its value to society.

At the same time, research must not be controlled by short-term political demands. Knowledge can serve the country only when researchers are free to communicate what they discover. Sri Lanka’s World Bank-supported AHEAD higher education programme similarly connected the expansion of enrolment in priority disciplines with improving the quality of degree programmes and promoting research and innovation. These goals were linked because meaningful expansion cannot be separated from educational quality. (Source: World Bank overview of the AHEAD programme.

Fourth, the responsibilities of students must be clearly emphasised. The duty to protect the academic environment of a university cannot be placed solely on administrators and academics. Every student has a fundamental responsibility to give priority to his or her education, respect the right of other students to learn and allow the free exchange of ideas.

Student activities, social debate and political engagement all have an important place in university life. However, none of them should be allowed to disrupt education or prevent other students from learning.

When students abandon their primary purpose of learning and create an environment that obstructs education, the university system cannot fulfil one of its most important functions: producing knowledgeable and responsible graduates. A university may continue to award degree certificates, but if lectures, research, open discussion and intellectual inquiry do not receive sufficient attention, it risks producing graduates who lack depth of knowledge, critical thinking and professional competence.

The result may be the emergence of a group of “half-educated” graduates, individuals who possess certificates but have not received a complete intellectual education. Therefore, just as we discuss student rights, we must also have an honest and open discussion about student responsibilities within the university system.

My position on the current professional struggle of university academics is also clear. If they are demanding fair conditions of employment, those demands should be discussed seriously. If their struggle is also intended to free universities from political interference and restore research, teaching and learning to the centre of university life, I stand with them.

The rights of academics and the educational rights of students should not be presented as opposing interests. Both can be protected and respected only within a well-functioning university.

When I say that “the state university system should be shut down and reopened,” I do not mean that we should close the door on the future of our students. I mean that we must close the door on systems in which power matters more than knowledge.

Students have the right to hold political views and participate actively in debates on national issues. A university needs a student community that thinks about the country’s problems and speaks out against injustice. However, student politics should not shut down the university, deprive other students of their education or become a means of displaying organisational power. The right to fight for one’s beliefs comes with the responsibility to respect another person’s right to an education.

Simply attempting to establish another 50 universities will not solve these problems. Sri Lanka needs a higher education system that brings together the contributions of state, state-affiliated and private institutions while applying clear standards and responsibilities to all of them.

Strict discipline within such a system should not mean suppressing freedom of thought. It should mean ensuring that everyone fulfils their responsibilities in relation to teaching, research, examinations, institutional governance and student welfare. A degree certificate will then have value not merely because of the name of the institution that issued it, but because the knowledge and capabilities of the person who earned it can be trusted.

We should learn from advanced higher education systems, but we should not simply copy them. We must develop institutional autonomy, reliable quality-assurance mechanisms and publicly accountable governance in ways that suit our own needs. What we owe future generations is not merely a country with a larger number of universities, but a country in which people can trust the education those universities provide.

What we must close down, therefore, is not the universities themselves, but the outdated system that closes the door on knowledge, freedom and responsibility. What we must reopen is a genuine university system devoted to learning, inquiry, research and the creation of new knowledge in the service of the country.

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The Sri Lankan who made Scottish history

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From beauty pageants and medical science to challenging British immigration policy and making political history in Scotland, yes, that’s Sri Lankan Deena Tissera, born into privilege, in Chilaw, but exposed to poverty and the realities of war.

Now, after 15 years in British politics, she tells Ivan Alvis why she is no longer interested in fitting anyone else’s image of a leader.

She was educated at The British school in Colombo and her father was a doctor-entrepreneur-philanthropist, and mother a former beauty queen and movie star.

She studied Medical Science, moved into Global Health and began a PhD in Public Health, competed in Miss Sri Lanka for Miss World, and, in 2022, made history as the first woman of colour elected to Aberdeen City Council; the first politician of Sri Lankan descent elected in Scotland.

The moment that set it all in motion came during the worst period of her life. Her father had died. She was 24 and missed her university examinations to attend his funeral.

“My father’s greatest wish for me was that I completed my education. However, I was being told that my education would be delayed because I had missed examinations to attend his funeral.”

She refused to accept it. She challenged the university, protested, went before its board and represented herself — and won.

“I went from fighting for myself to realising there were thousands of students who sometimes needed somebody to fight with them.”

She was elected Students’ Union Vice President. Soon her campaigning grew larger. As an international student she had experienced Britain’s immigration system, first-hand, and helped build a UK-wide movement, campaigning for international student rights, and contributing to campaigns that helped achieve changes to immigration rules.

“That taught me one of the most important lessons of my life. Politics isn’t about having a title. Politics is understanding where power sits, organising the people who don’t have it and knowing how to make the people who do have it, listen.”

Deena: Beauty pageant
contestant

The instinct to challenge inequality began earlier. Though born to privilege, her father took her into communities affected by the war through his philanthropic work.

“I grew up with opportunities, but I was surrounded by poverty. That contradiction affected me enormously. My father taught me that privilege isn’t something you should feel guilty about. But you should understand the responsibility that comes with it.”

If her father gave her a sense of service, her mother gave her confidence. Inspired by her, Deena took to modelling … and the Miss Sri Lanka pageant.

“People sometimes expect serious women to edit the glamorous parts out of their history. I can, and have been in a beauty pageant, and still understand economic policy.”

Her academic background continues to shape her politics: “Medical science teaches you evidence. Global health teaches you systems. Public health teaches you that someone’s health can be determined by poverty, housing, education and employment long before they reach a hospital.”

While at the University of Aberdeen she joined Labour Students, later becoming Vice-Chair of her Constituency Labour Party. What followed was more than a decade of door-knocking, organising, strategising, winning and losing.

The overnight success took 15 years. In 2022 she won Hilton, Woodside and Stockethill in Aberdeen.

The historic label came with a complicated reality. She remembers entering rooms with qualifications, campaign experience and leadership credentials — and still sensing she was not the person others imagined as leader.

“There have been tables where I have looked around and known I may be the most accomplished person sitting there, but I wasn’t necessarily the person people saw as the leader. And that’s because I didn’t fit the look.”

Her answer was to work harder — another qualification, another campaign. Then she realised the flaw in that strategy.

“If you wait for everybody else to decide you’re good enough, you can spend your entire life auditioning for a position you’re already qualified to occupy. I owned my identity and started leading with the confidence of my competence.”

At 39, successful and unmarried, she speaks with unusual candour. “Being unmarried is a marital status. It isn’t a performance review.”

Her message to young Sri Lankan and migrant women is direct: “Do not shrink your ambition to make yourself easier for somebody else to digest.”

Her blog series ‘Taboo Tuesdays’ — with titles like “Politics Is a Blood Sport – And We Pretend It Isn’t” — examines ambition, envy, ego and power from inside the room.

Since her election, she has led on anti-poverty and inequality, served as Labour’s Energy Spokesperson for Aberdeen covering net zero, environment and transport, and served as Chief Whip of the Labour group.

She was adviser to former Prime Minister Gordon Brown on his Our Scottish Future commission, took part in the Jo Cox Women in Leadership programme, and served as Scottish executive representative for the northeast, Highlands and Islands at her party’s top table.

Recognition has followed — 35 Under 35 Scotland’s rising political stars, Exceptional Achiever of the Year, Politician of the Year nomination, and Outstanding Woman in Governance and Public Policy by Women in Management UK.

As Energy Spokesperson for Aberdeen, one of Europe’s key energy cities, she sits at the centre of Britain’s energy debate. She supports transition but warns: “A just transition cannot mean asking one community to carry the economic cost of everybody else’s environmental ambition.”

Ask her if she wants more power and her answer is simple: “Yes. I am ambitious. But power without purpose is just status.”

Perhaps her most personal answer is about representation: “The first Sri Lankan elected in Scotland means something to me because it means the next Sri Lankan isn’t the first.

“I didn’t have to become less Sri Lankan to become Scottish. I didn’t have to become less feminine to become politically serious. And I didn’t have to look like somebody else’s idea of leadership before I was allowed to lead.”

In conclusion, Deena Tissera had this to say: “There was a time when I wanted to prove I deserved a seat at the table. Now I walk in knowing I do.”

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