Editorial
The ‘new normal’ budget
The run-up to the 2021 budget which Prime Minister Mahinda Rajapaksa, wearing his finance minister’s hat, presented to parliament last week was obviously “new normal” as the post-covid minted cliché goes. There was no dramatic build-up to it with people rushing to buy vehicles, electronics, appliances or whatever as was often the rumor-fuelled case in the past. As has been inevitable in every past budget in the medium, if not the long term, the price of arrack and cigarettes routinely thrashed with a price stick, will go up once more. But nobody knows by how much and smokers and imbibers continue to pay the old price for their bad habits. But they have the certain knowledge that Christmas will soon be over on the authority of the budget speech.
This 2021 budget was crafted, as Dr. Dushni Weerakoon, head of the Institute of Policy Studies, said in a post-budget commentary, “under an exceptional level of uncertainty.” Obviously the crisis measures now in force will remain with us for a long time and it will be unrealistic to assume that fiscal policy will revert to its “pre-crisis setting anytime soon.” This must influence both spending priorities and what Weerakoon called “the slow burn scenario for revenue generation.” It is common knowledge that revenue has already slumped, and not only because of covid and its consequences. Assurances of boosting the country’s growth rate and narrowing the budget deficit, which has for too long burdened the country’s fiscal policy as well as its macro economy, have been repeated. These are old stories that have been heard before and few will buy them.
A persistent criticism of the budget is that it did not say enough about how the government is going to deal with the covid crisis, and the consequences arising from it, by taking the people into its confidence. This, more than all else, is the greatest danger confronting not only Sri Lanka but also the whole world. Neighboring countries is South Asia, including India, Pakistan and Bangladesh, have been much more transparent than we with Pakistan even going as far as labeling her next year’s budget as a “covid budget.” Former Central Bank Governor Nivard Cabraal, now the deputy in the finance ministry, who will be the key speaker for the government in the budget debate, has already said at one of the regular remotely held post-budget seminars that the timing was not right for declaring a covid-19 austerity year. But belt-tightening all round will be inevitable. Protecting the very large numbers of daily wage earners and others deprived of their livelihoods by the present crisis must remain high priority. Money printing alone to tide over cannot be the solution. Budgetary provision would have been appropriate.
There was a lot of old wine in new bottles in the 2021 budget speech including self-serving (or should we say government politician serving) measures announced. One of these is the raising of the private sector retiring age to 60-years for both men and women. Currently women working for private employers can retire at 50-years of age and men at 55 and gain access to their EPF benefits. Now both genders will have to wait longer – as many as 10 years in the case of women and five where men are concerned. There is no need to labour the harsh reality that the EPF is the only social security net that private sector workers have for their retirement. Government servants have had their pension benefits from colonial times, a cushion that served them well over a long period and a major attraction of a government job.
This raising of the retirement age of private sector employees also has the undisclosed benefit for the government of slowing EPF payouts and enhancing available funds for government borrowing. We all know that the EPF is the major captive lender to the government and the billions or trillions in its books is always on call for government expenditure. Given the overload of foreign borrowing that has long burdened this country and made the possibility of repayment default an ever-growing risk, postponing the payout of a looked forward to EPF nest egg to private sector employees, confers a substantial benefit on big brother. The private sector generally did not enforce the minimum retirement age rule but allowed employees to formally retire and gain access to their EPF with the assurance of an employment contract to keep them in harness post-retirement.
Let us not forget previous efforts made to convert the EPF to a pension fund that was abandoned due to massive resistance. Even if these attempts succeeded, the new pensioners paid from a contributory scheme – both employer and employee make monthly contributions to the EPF – would not have received the same benefits as their government counterparts enjoying non-contributory pensions. These matters, no doubt, will be raised during the ongoing budget debate which has been abbreviated because of the covid issue. It has up to now been lacklustre with the press and public galleries closed when the prime minister made his budget speech, a necessary precaution in the present context. But it has elicited, as budget debates must do, matters of widespread public interest. One of these relates to Dr. Anil Jasinghe, the previous Director General of Health who was highly regarded for his leadership in handling of the covid emergency. Health Minister Pavithra Wanniarachchi told parliament on Thursday that Jasinghe, currently Secretary Environment, was now attending covid meetings at her ministry. That sounded apologetic to most people not appeased by the suggestion that ‘kicking him upstairs’ was just a promotion issue.
It is clear from the budget that policies of curtailing inessential imports and import substitution would continue and a conscious effort appears to have been made not to heap new burdens on ordinary people for revenue reasons. But the impact of the Goods and Services Tax that has been announced have not yet emerged. It is unlikely that this will not leave people altogether unscathed. And that too not only with regard to their booze and fags.
Editorial
Reward cops, probe Excise officers
Saturday 4th July, 2026
The Police Department has its fair share of rogue elements who have brought the law enforcement authorities into disrepute and make them get bad press. But the police are not short of personnel who even go above and beyond the call of duty to nab lawbreakers and ensure public safety. Sadly, their good work often goes unappreciated.
Unit 2 of the Western Range (North) has done the police proud. On 28 June, its men and officers raided a house in Malabe, where illicit liquor was bottled, and arrested six suspects with as many as 18,000 bottles of illicit liquor.
The bottles of counterfeit arrack complete with security stickers and ready for distribution were virtually indistinguishable from the genuine products, according to investigators. Nobody knows how many bottles of counterfeit arrack had been produced there and how injurious the illicit brew is to health.
Under interrogation, the suspects revealed that the illicit brew had been distributed in the Eastern Province. On Thursday, the police team that conducted the Malabe raid rushed to Batticaloa, where they seized a large number of bottles of illicit liquor transported from Malabe. The police officers who took part in the raid deserve praise.
While the police were busy packing the bottles of illicit brew taken into custody and doing necessary paperwork, a group of Excise officers materialised, and claimed that the police had made a documentation error. Their intervention led to a recount of the bottles of counterfeit liquor in custody, but the allegation turned out to be baseless. Obviously, the Excise Department personnel did not take kindly to the police raid.
One of the police officers told the Excise officers some home truths, one being that the police were doing what the Excise Department should have done. One cannot but agree with him.
The police had to move in as the Excise officers had failed to carry out their duties and functions. The latter should have been able to trace the untested brew transported and sold illegally in liquor outlets in the East. It is possible that the Malabe brew, as it were, was distributed in other parts of the country as well.
Illicit liquor has claimed many lives in this country during the past several years and therefore the brew, seized in Malabe and in some parts of the Eastern Province, must be tested urgently to see if it contains harmful substances. One may recall that in January 2026, six people died in Wennappuwa after consuming arrack purchased from a licensed liquor outlet. Such tragedies occur due to contamination, counterfeit infiltration and supply-chain frauds.
As for the police raids in Malabe and the East, there is reason to believe that so many bottles of illicit liquor could not have been distributed and sold in licensed outlets, unbeknownst to the Excise Department personnel, who are paid with public funds to keep a watchful eye on liquor retailers, among others, and act on any transgressions. That the police had to do their job is an indictment of the Excise officers, especially those under whose nose the illicit brew was sold in the East.
A member of the police team which conducted the raid in the East has asked how the security stickers meant for the legally produced bottles of liquor got into the wrong hands. A thorough investigation should be conducted to ascertain whether Excise officers were involved in the liquor racket and why they confronted the police in the East instead of cooperating.
Editorial
Emergency gone, much more to be done
Friday 3rd July, 2026
The JVP-NPP government has decided to allow the Emergency regulations to lapse, according to media reports. This is something welcome, but it should have been done months ago. Better late than never. The government has apparently made a virtue of necessity. It incurred public opprobrium and came under heavy pressure to end the protracted state of Emergency, which was declared in the aftermath of the landfall of Cyclone Ditwah towards the end of last year to facilitate disaster management and relief operations.
It is said that Sri Lanka has been under emergency rule for more than three decades since Independence, with the longest, uninterrupted periods occurring during the two JVP uprisings and the Ealam war. There is no political party that did not misuse Emergency regulations to further its interests while in power. Politicians realise the need to protect civil liberties and protest only when they lose power and become victims of the Emergency regulations, which grant governments sweeping powers of arrest and detention.
The JVP-NPP government ought to carry out its promise to abolish the PTA (Prevention of Terrorism Act), which has been abused by successive governments to suppress democratic dissent. President Anura Kumara Dissanayake has recently pledged to do so before the end of this year. It is obvious that the government is planning to replace the PTA with the proposed PSTA (Protection of the State from Terrorism Act), which is as draconian as the PTA.
The PTA and the proposed PSTA are Tweedledum and Tweedledee for all intents and purposes. Various human rights groups, civil society organisations, political activists, the UN and the media have pointed out that the PSTA cannot be accepted as an alternative to the PTA. They have echoed the view of the Office of the High Commissioner for Human Rights that the PSTA has not defined terrorism properly, and this fact runs counter to international law. An overly broad definition allows the PSTA to be misused. The PSTA seeks to empower senior police officers to issue detention orders and authorise pre-charge detention for renewable periods of up to two months for a total of up to one year. It has been pointed out by international human rights organisations, such as Amnesty International, that the PSTA seeks to retain untrammelled executive powers; the presidential powers are so extensive that the sole avenue for appeal against Proscription Orders lies with the Executive itself so much so that they undermine the International Covenant on Civil and Political Rights. The government ought to discard the proposed PSTA and introduce an anti-terror law that conforms to international best practices.
Similarly, it behoves the government to fulfill its solemn pledge to discontinue the culture of performative arrests, politically determined detentions, and vilification campaigns against suspects. The police arrest suspects even before conducting investigations, much less ascertaining credible evidence, and have the latter detained or remanded for long periods. Thereafter, the police and the Attorney General’s Department slow-walk the legal process. The current practice of looking for evidence after making arrests must end, as it is antithetical to democracy. A stay in overcrowded, squalid Sri Lankan remand prisons is tantamount to punishment in itself. The condition of detention cells in the CID headquarters is even worse, we are told. Hence, no person should be detained or remanded without credible evidence.
Cabinet Spokesman Dr. Nalinda Jayatissa recently sought to justify the detention of former State Intelligence Service Director Maj. Gen. (Retd.) Suresh Sallay in one of the filthy, tiny cells at the CID headquarters. He stated that those cells had been used to detain suspects for a long time, and Sallay could not be given preferential treatment. However, the JVP/NPP came to power, promising to break the so-called 76-year curse, didn’t it?
Previous governments did nothing about the hellholes that prisons and the CID detention cells are, and some of them and their supporters are now languishing in those places. It will be in the present-day leaders’ own interests to do away with the existing draconian laws and improve the conditions of remand prisons and detention facilities, for the boot will be on the other foot after the next regime change.
Editorial
Trump reined in
Thursday 2nd July, 2026
President Donald Trump is full of himself as he enjoys unified Republican control of the US federal government. He exercises control over the White House and both chambers of the Congress. The composition of the current US Supreme Court (SC) with its conservative majority is also considered favourable to Trump; the apex court is widely viewed as being receptive to his constitutional arguments. Nevertheless, executive powers are far from untrammelled thanks to the robust US Constitution, which helps keep Trump reminded that the US democracy is stronger than he, and he has to be mindful of the separation of powers and act within constitutionally stipulated limits.
Trump’s immigration agenda suffered a huge setback yesterday. In a split decision, the SC has ruled that babies born in the US have a constitutional right to citizenship. This ruling has effectively put paid to Trump’s effort to end a 150-year-old citizenship policy amidst protests. The SC has upheld some of the current crucial immigration policies and helped strengthen Trump’s executive power, but in the present instance, it has stated categorically that all children born in the US “to parents unlawfully or temporarily present are citizens at birth under the 14th Amendment”. Trump and his team took great pains to convince the SC that children of undocumented immigrants and some temporary visitors were not subjected to the jurisdiction of the aforesaid amendment and therefore were not eligible for birthright citizenship. But the court was convinced otherwise.
The birthright citizenship ruling has come close on the heels of an SC judgement that sent the Trump administration reeling. Three days ago, in a ruling seen as affirming the Federal Reserve’s independence, the US SC foiled President Trump’s attempt to sack Lisa Cook, a governor of the US central bank. In a majority decision, the SC held that the Trump administration had not followed due process, which would have allowed Cook to contest her removal. The case will be sent back to lower courts, and the burden is now on the Trump administration to prove its allegation that Cook committed a mortgage fraud. She has vehemently denied the allegation. Trump has drawn heavy criticism for trying to exert greater control over the US central bank.
The US apex court has given several judgements against the Trump administration during the past several months. It has held that the International Emergency Economic Powers Act does not authorise the President to impose sweeping tariffs unilaterally. The ruling has invalidated numerous tariffs imposed by Trump, much to the resentment of the White House. The SC has also upheld a Mississippi law that provides for counting ballots that arrive after election day if they are posted on time. Trump and his fellow Republicans did their best to have that grace period removed, but in vain. In another bold decision, the SC ordered the Trump administration to ensure the return of a man who had been mistakenly deported to El Salvador. Trump’s efforts to deploy the National Guard despite objections raised by local and state officials were also foiled by the SC by upholding a lower court’s ruling.
President Trump has also failed to keep the Congress under his thumb. The House of Representatives and the Senate have passed a vital war powers resolution, directing Trump to withdraw US armed forces from hostilities in or against Iran. They have effectively curbed Trump’s military authority and made it mandatory for him to obtain congressional approval for such military campaigns.
Not that all decisions by the US judiciary and the Congress are flawless and welcome. According to legal experts, there have been several key SC decisions that enabled Trump to expand his executive power. The SC has loosened campaign finance restrictions, and this will benefit Republicans, whose election war chest is bulging while Democrats are reportedly in debt. US midterm elections are due in November 2026.
However, the US judiciary and the Congress assert their power and strengthen checks and balances to ensure that the Constitution takes precedence over politics, and the Executive acts with restraint. This is worthy of emulation for countries where executive power is virtually unrestrained, and the Heads of States act in a way that reduces legislators, including senior university professors, to the level of kindergarten children while making accurate predictions about judgements in high-profile cases and keeping key judicial positions vacant for political reasons, with impunity.
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