Midweek Review
The Sri Lankan debt crisis: A layman’s review
By Nimal Gunatilleke
As a layman in the subject of political economy, nonetheless interested in discerning the real background to the historic debt crisis that Sri Lanka is undergoing at present, I have been reading many reports, including expert views, opinion statements, institutional press releases, think-tank analyses, COPE reports, etc., that are plentiful on the internet. Based on these readings, I was able to synthesize a layman’s review, which I thought of putting out to a wider readership to stimulate constructive discourses from the more knowledgeable authorities and others alike, especially on the solutions that are available for our country to come out of this huge debt crisis. One of the major criticisms of the general public is that although warnings of this impending disaster had been made repeatedly at official meetings among technocrats and bureaucrats, the general public was not sufficiently alerted early enough, especially via popular media, to shake up the bureaucracy to make a timely course correction.
We all are now aware that Sri Lanka has an accumulated foreign debt of US $ 51 billion at the time of pre-emptive sovereign default of foreign currency repayment which happened in March/April 2022. The following Figure 1, with a series of histograms that appeared on the web, provides a relatively easy understanding of the progression of our cumulated foreign debt over the years since 2000 and its proportional ownership of creditors/lenders. It had been prepared by Reuters in January 2022 sourcing Central Bank information and colour-coded to apportion the foreign debt accumulated since 2000. The proportional ownership has been grouped into several categories of lenders in this chart, such as International Financial Institutions (IDA, ADB, etc. in red), foreign governments (Japan, China, India, etc. in orange), International Sovereign Bond Issuers (Goldman Sachs, Black Rock, and Pacific Investment Management, Vanguard, etc., in green!!) and other capital market lenders (Exim banks, etc., in pale green).
This figure reveals that a higher proportion of foreign funding for Sri Lanka’s development projects as well as to bridge the annual budget deficits in the early 2000 period, came via bilateral and multilateral donor contributions (red and orange color codes), when Sri Lanka was still a Lower Middle-Income Country (LMIC). However, this trend has been changing since 2007 or so, when Sri Lanka started obtaining loans at relatively higher interest rates from International Sovereign Bonds (ISBs) and other Financial Capital Markets. The contribution of ISBs increased significantly from around 2015 and reached an all-time high in 2019 almost at the same time when Sri Lanka was elevated to an Upper Middle-Income category (UMIC) for a short period of time by the World Bank. However, a year later, Sri Lanka was down-graded again as a lower-middle income country after it recorded a US$ 4,020 per capita income for 2020. Apparently, when a country reaches an Upper Middle-Income level, it is not entitled to concessionary loans but must seek funding from International Capital Markets at the internationally prevailing competitive interest rates. Sri Lanka’s access to international capital markets (with International Sovereign Bonds issuances since 2007) brought a shift to commercial borrowing and an increase in external interest rates to be paid back in short periods of time.
Consequently, Sri Lanka’s foreign debt apportioning in 2022, as per Figure 1, which has been computed using information from Sri Lanka’s Central Bank, indicates that over 35% of the island’s debt is owned by US and UK-based ISBs. The balance of foreign debt in 2022 is owned by the aforesaid bi-lateral and multilateral agencies. Some of these latter agencies, usually charge lower interest rates on concessionary terms. They have even gone to the extent of being more compassionate to express their willingness to further delay the debt repayment while at the same time being charitable enough to donate humanitarian aid in the form of food, fuel, and medicine during this crisis period. It is clear that the root cause of Sri Lanka’s default, at this time, is due to the disproportionate accumulation of ISBs and other such financial instruments in recent times. Higher interest rates over short periods of time needed to be paid, for refinancing the loans already taken. (See the graph)
This annual progression of the ‘sovereign debt trap’ also led to the speculation of unsustainability of Sri Lanka’s foreign debt from 2019 onwards leading to a progressive downgrading of credit ratings by the three leading credit rating agencies – Moody’s Investor Services, Standard and Poor’s (S&P), and the Fitch Group. This downgrading by credit rating agencies further deepened Sri Lanka’s debt crisis, pushing us into one of the worst economic crises in modern history.
The Verite Research Strategic Analysis Working Paper published in October 2021provides an analysis on this. For the five years, from 2021 to 2025, the annual average repayments due on servicing external debt maturities is US$ 4,400 million. In contrast, from 2015 to 2018, the government only had to repay an annual average of US$ 2,700 million as external debt repayment. To meet those debt repayments, during 2015 to 2018, the government borrowed on average US$ 1,900 million through ISBs in a year, as indicated in Figure 1. Since the beginning of 2020, the yields of ISBs have more than doubled and the credit ratings of the sovereign bonds were also downgraded multiple times, in 2020, leading to high risks of default in 2021 preventing further borrowing from the international markets. This forced the government to use its already depleting reserves to meet the external debt obligations, while at the same time, meeting the urgent healthcare emergencies resulting from the rapid spread of the COVID 19 pandemic which demanded lockdowns over months, associated economic losses and also for meeting increasing healthcare needs.
While it has been widely reported in the western media that Sri Lanka is a victim of a ‘Chinese debt trap’, our increased dependency on International Sovereign Bonds, over recent times is also equally, if not more, responsible for the default, at this time, as Sri Lanka has been compelled to borrow money from international capital markets at higher rates to be paid back over short periods of time. These funds were needed for the repayment of the loans already taken for the settlement of earlier taken loans/their interests while providing at the same time, the shortfall of social welfare benefits from the lost tax revenue as a result of ill-advised tax rebates granted in 2019. The resultant drop in revenue amounted to 3% of GDP – from 12.6% in 2019 to 9.2% in 2020. The revenue as a share of GDP for 2020 has apparently been the lowest in the post-independence history of Sri Lanka that led to huge deficits which need to be financed through borrowing, resulting in increasing debt.
Notwithstanding some of these unanticipated debilitating economic cataclysms, some political analysts speculate whether Sri Lanka was duped into a situation of ‘pumped and dumped’ by the Western interests. The World Bank up-graded Sri Lanka to a Lower Middle-Income Country (LMIC) in 1997, and then to the short-lived Upper Middle-Income Country in 2019 thus making it ineligible for lower interest rates for national development thus compelling to borrow from International Capital Markets. This fortuitously coincided with the 2019 Easter Sunday bombing spree which started the rapid downward spiraling of Sri Lanka’s economy.
On top of these, internal mismanagement of our economy also has contributed in no small measure to this predicament. The infamous bond scams, unbridled corruption and nepotism at the highest levels, imprudent decisions of the then monitory board of the Central Bank, and more significantly, holding on to such irrational decisions for a long period thus bleeding our foreign exchange reserves by over US$ 5.5, as reported by one of its members at a recent COPE meeting.
So, it surmises that both external interventions as well as internal economic mismanagement has contributed to the present-day debt crisis leading to ‘Arab Spring’ style protests by segments of the general public fueled by opportunistic politicians and their invisible handlers. It has been transmitted in some academic fora that Sri Lanka’s default seemed to follow a systematic, deliberate, and planned route to haul Sri Lanka into IMF’s and Washington’s clutches. This likelihood had apparently been in the air for some time – at least since the rejection of the Millennium Challenge Corporation (MCC) compact by the Sri Lankan Government in December 2019.
The MCC compact for Sri Lanka was designed to reduce poverty through improved transportation network and providing secure land titles to small holder farmers and other Sri Lankan landholders. The Special Presidential Commission Report which examined the draft MCC Compact has recommended the rejection of the Compact in its current form as it not only imperils Sri Lanka’s economic sovereignty but also undermines the land and human rights of her citizens. We need to be vigilant at this stage at which we are in a desperate situation in meeting day-to-day needs of the people as well as fulfilling debt obligations through their restructuring. There are indications that a number of stealthy moves are already at play to undermine the rights of the people (see recent press releases by Dr. Gunadasa Amarasekera of the Federation of National Organisations).
Some political analysts argue that this ‘staged default’ would enable the IMF to effectively take control of strategic geopolitical positioning by influencing Sri Lanka’s economic policy initiatives compromising its sovereignty. It is also speculated that by doing so, they can stave off the Chinese influence (despite China being a leading member of the IMF) and more significantly, make it difficult for Sri Lanka to source its oil, gas and other energy requirements at discounted rates from sanctions-hit Russia. Ironically, India continues to avail themselves to the discounted oil and gas supplies from Russia despite some resistance from her western partners while helping to meet our energy needs through loans and grants. It is a pity that Sri Lanka is far too late in looking into this possibility of negotiating with Russia directly for supplementing our long-term fossil fuel and other energy needs in exchange for our tea exports.
Sri Lanka is apparently caught between the devil and the deep blue sea for being located in a geostrategic position abundantly endowed with strategically important natural resources. While being at the centre of the Indian Ocean Sea Lanes of Communication (SLOC) with an extensive ocean and land-based mineral resources, including premium grade graphite and rare earth elements, some political analysts are of the view that Sri Lanka suffers from a ‘Paradox of Plenty’ or perhaps, a geostrategic ‘Resource Curse’. This phenomenon often afflicts countries blessed with abundant natural resources, like Sri Lanka. According to the Global Wealth Databook 2020 of the Credit Suisse Research Institute, the total wealth of Sri Lanka is estimated to be USD 351 billion while admitting at the same time that the quality of wealth data used for this estimation to be poor. A more realistic estimate could indeed yield even a higher value and Sri Lanka appears to be far from bankrupt, on that count. Despite all these, we have been having a slower economic development prone to poor governance, corruption and cronyism over successive political regimes since independence. This economic wealth of Sri Lanka may be a key constituent put on offer in attracting creditors to our national-scale real estate assets at this crucial stage of negotiations for debt relief.
The US Ambassador to Sri Lanka and the Maldives, Julie Chung, in a recent press release remarked that Sri Lanka is at the heart of the Indo-Pacific oceanscape, sitting next to some of the world’s busiest shipping lanes through which about half the world’s container ships and two-thirds of the world’s oil shipments pass. According to her, Sri Lanka has the potential to play a pivotal role in the health of world trade. It is not surprising, therefore, the former US Under Secretary for South and Central Asia, Alice G. Well, a few years ago, called Sri Lanka a ‘valuable piece of real estate’ in the Indian Ocean. Still others have termed Sri Lanka ‘an unsinkable aircraft carrier’ in the Indian Ocean – much more strategic than the Chargos Island which was handed back to the people of Mauritius by the British (and hence US occupation ended) in February 2019 after the International Court of Justice in the Hague ruled that the latter’s occupation of Chargos Island was illegal under International Law.
Furthermore, it was none other than the US Secretary Blinken who had recently reported that in today’s world, cyberspace and cyber security are increasingly important and, as part of their vision for the Indo-Pacific, the United States looks to coordinate with partners to ensure an open and secure internet and to implement a framework for responsible behavior in cyberspace.
With a background of this politico-geostrategic wealth, the Sri Lanka Government is up against tough bargaining with the IMF and their designated creditors to raise USD 8 – 12 billion or perhaps even more from the lease or sale of at least some of these valuable ‘real estate’ assets belonging to the public of Sri Lanka which have been grossly mismanaged over decades by successive governments. Dr. Nishan De Mel of Verite Research says, “When the IMF determines that a country’s debt is not sustainable, the country needs to take steps to restore debt sustainability prior to IMF lending”. These steps would undoubtedly feel quite painful in particular to the poorest and most vulnerable sectors of the country.
Prime Minister Wickremasinghe recently stated in the Parliament that SriLankan Airlines, with all its assets would be the first to be privatized to relieve the debt burden. Among the other valuable public assets that are being considered to go under the hammer according to reports on the web are Mattala and Ratmalana airports, Sri Lanka Telecom shares, and the Sri Lanka Insurance Corporation to name a few. Then there are physical assets like Sri Lanka’s marine Exclusive Economic Zone which include the already identified oil and gas deposits, Under-sea Data Cable Routes, the strategic island’s telecom frequencies important for cyber-security. These are a part of this ‘real estate’ package – the cynosure of many powerful global political players backed by leading international financiers – up for negotiations in the name of debt restructuring. Some economists are of the opinion that divesting these strategic public assets resulting from mismanagement, corruption, and ignorance of the potential value of these resources, is tantamount to throwing the baby with the bath water!
The debt restructuring and bridge financing negotiations with the IMF, if successful, may be able to provide us short term debt relief tied with very stringent conditions such as tightening our monitory policy, raising taxes, reduction of government expenditure and wastage, introducing a fuel and utilities pricing formula reflecting the market prices, among others. Although Sri Lanka promised a number of similar adjustments in the during earlier rounds of negotiations with the IMF (in 2009 and 2016), none of them were implemented in full as planned since these would have resulted in high social and political costs.
With such a track record, the conventional IMF debt restructuring formula may not help to overcome our efforts in moving toward bridging the trade deficit. This is primarily because Sri Lanka continues to spend more foreign exchange than its receipt of revenue through the export of goods and services. This indeed has been the root cause of our long-term external debt problem. Economists argue that going to the IMF alone will not fix this problem. According to them, the IMF will simply put a sticking plaster on our arterial wound and send us home. If Sri Lanka continues haemorrhaging foreign exchange with its typical laissez-faire approach, we may have to go back again to the IMF in two years’ time asking for yet more debt relief!.
IMF has just concluded a joint technical session with Sri Lanka to determine a roadmap for restoring macro-economic stability and debt sustainability that will serve as a platform for the negotiations with other creditors/lenders, later. Furthermore, this joint initiative once implemented in compliance with IMF conditions, is expected to increase investors’ confidence and also in securing additional resources from the IMF, the World Bank, Asian Development Bank, and other such agencies.
Amidst all these, there appears to be a silver lining in the dark financial clouds that hovering over Sri Lanka at present where even an adversity of this magnitude could be turned into an excellent medium or long-term investment opportunity. The silver lining in the dark horizon is that the leading international donor agencies are steadily moving towards ‘sustainable financing’ in compliance with the Paris Agreement on Climate Change in the present green economic era.
(To be continued tomorrow)
The author can be contacted at
nimsavg@gmail.com
Midweek Review
Aragalaya: GR blames CIA in Asanga Abeyagoonasekera’s explosive narrative
Did CIA chief William Burns visit Colombo in Feb 2023? Sri Lanka and the US refrained from formally confirming the visit. The Opposition sought confirmation of the then CIA Chief’s visit to Colombo in terms of the Right to Information Act but the Wickremesinghe-Rajapaksa government sidestepped the query. A former Republican congressman from Texas and Director of National Intelligence (2020–2021) John Ratcliffe succeeded Burns in late January 2025.
On the sheer weight of new evidence presented by Asanga Abeyagoonasekera’s ‘Winds of Change’, readers can get a clear picture of the forces that overthrew President Gotabaya Rajapaksa in 2022.
Even five years after the political upheaval, widely dubbed ‘Aragalaya,’ controversy surrounds the high-profile operation that forced wartime Defence Secretary Gotabaya Rajapaksa to literally run for his dear life.
Gotabaya Rajapaksa, formerly of the Army but a novice to party politics, comfortably won the 2019 November presidential election against the backdrop of the Easter Sunday carnage that caused uncertainty and suspicions among communities. The economic crisis, also clandestinely engineered from abroad, firstly by crippling vital worker remittances from abroad, almost from the onset of Gotabaya Rajapaksa’s presidency, overwhelmed the government and created the environment conducive for external intervention. Could it have been avoided if the government, that enjoyed a near two-thirds majority in Parliament, sought the help of the International Monetary Fund (IMF)?
The costly and well-funded book project, undertaken at the time Abeyagoonasekera was working on a governance diagnostic report for the IMF, in the wake of the change of government in Sri Lanka, meticulously examined the former Lieutenant Colonel’s ouster, taking into consideration regional as well as global developments. Abeyagoonasekera dealt efficiently and furiously with rapidly changing situations and developments before the unprecedented 03 January, 2026, US raid on Venezuela.
Lt. Col. (retd) Gotabaya Rajapaksa, for some unexplainable reason and a considerable time after the events, has chosen to blame his ouster on the United States. We cannot blame him either, by the way we have seen how other regime changes had been engineered, in our region, by Washington, since and before Gotabaya’s ouster. The accusation is extraordinary as Gotabaya Rajapaksa in his memoirs ‘The conspiracy to oust me from presidency’ refrained from naming the primary conspirator, though he clearly alluded to an international conspiracy.
April 8, 2019 meeting
Launched in March 2024, in the run-up to the presidential election that brought Anura Kumara Dissanayake (AKD) to power, almost in a dream ride, if not for the intervening outside evil actors, ‘The conspiracy to oust me from presidency’ discussed the international conspiracy, but conveniently failed to name the primary conspirator. What made the former President speak so candidly with Abeyagoonasekera, the founding Director-General of the national security think tank, the Institute of National Security Studies Sri Lanka (INSS), under the Ministry of Defence, from 2016 to 2020?
Abeyagoonasekera also served as Executive Director at the Lakshman Kadirgamar Institute (LKI), under the Ministry of Foreign Affairs (2011–2015), during Mahinda Rajapaksa’s second term as the President. The author, both precisely and furiously, dealt with issues. Readers may find very interesting quotes and they do give a feeling of the author’s general hostility towards the US, India, as well as to the US-India marriage of convenience. Those who sense so may end up thinking ‘Change of Winds’ being supportive of the Chinese strategy. Among the highly sensitive quotes that underlined the Indian approach were attributed to Indian Defence Secretary Sanjay Mitra. The author quoted Mitra as having declared: “We need the MRCC centre [Maritime Rescue Coordination Centre], and you cannot give it to another nation.” As pointed out by the author, it was not a request but an order given to Sri Lanka on 8 April, 2019, meant to prevent Sri Lanka from even considering a competing proposal from China. Against that background, the author, who had been present at that meeting at which the Sri Lanka delegation was led by then Defence Secretary Hemasiri Fernando, questioned the failure on the part of the delegations to take up the Easter Sunday attacks. Terrorists struck two weeks later. Implications were telling.
That particular quote reveals the circumstances India and the US operated here. No wonder the incumbent government does not want to discuss the secret defence MoUs it has entered into with India and the US as they would clearly reveal the sellout of our interests.
The following line says a lot about the circumstances under which Gotabaya Rajapaksa was removed: “In Singapore, a senior journalist recounted how Gotabaya Rajapaksa’s resignation was scripted, under duress, at a hotel, facilitated by a foreign motorcade.”
In the first Chapter that incisively dealt with the Belt and Road Initiative (BRI), the author was so lucky to secure an explosive quote from the ousted leader in an exclusive, hitherto unreported, interview in June 2024, a few months after the launch of Gotabaya Rajapaksa’s memoirs. The ex-President hadn’t minced his words when he alleged that the Central Intelligence Agency (CIA) orchestrated his removal. He also claimed that he had been under US surveillance throughout his presidency.
The ousted leader has confidently cleared India’s Research and Analysis Wing (RAW) of complicity in the operation. What made him call Indian National Security Advisor (NSA) Ajit Doval ‘a good man,’ in response to Abeyagoonasekera’s pointed query. Abeyagoonasekera quoted Gotabaya Rajapaksa as having said: “… he would never do such things.” The ex-President must have some reason to call Doval a good friend, regardless of intense pressure exerted on him and the Mahinda Rajapaksa government by the Indians to do away with large scale Chinese-funded projects. (Doval in late October last year declared “poor governance” was the reason behind uprisings that led to change of governments in Bangladesh, Nepal, and Sri Lanka over the period of past three-and-a-half years. The media quoted Doval as having said, during a function in New Delhi, that democracy and non-institutional methods of regime change in countries, such as Bangladesh, Sri Lanka and Nepal, created their own set of problems. That was the first time a senior Indian government official made remarks on Nepal’s government change, followed by the Gen Z uprising in early September, 2025.)
Gotabaya Rajapaksa also cleared the Chinese of seeking to oust him. It would be pertinent to mention that China reacted sternly when at the onset of the Gotabaya presidency, the President suggested the need to re-negotiate the Hambantota Port deal.
During the treacherous ‘Yahapalana’ administration (2015 to 2019) Gotabaya Rajapaksa told me how Doval had pressed him to halt not only the Colombo Port City project but to take back Hambantota Port as well. By then, the Chinese had twisted the arms of the Yahapalana leaders Mairthpala Sirisena and Ranil Wickremesinghe and secured the Hambantota Port on a 99-year lease in a one-sided USD 1.2 bn deal. The Colombo Port City project, that had been halted by the Yahapalana government, too, was resumed possibly under Chinese threat or for some money incentive.
Once Wijeyadasa Rajapakshe, PC, declared, at a hastily arranged media briefing at Sri Lanka Foundation (SLF), that Sri Lanka would be relentlessly targeted as long as the Chinese held the Hambantota Port. The writer was present at that media briefing.
Wijeyadasa Rajapakshe said so in the aftermath of the 2019 Easter Sunday carnage, while disclosing his abortive bid to convince the Yahapalana government to abrogate the Hambantota Port deal. Did the parliamentarian know something we were not aware of? The author’s assessment, regarding the Easter Sunday attacks, based on interviews with Chinese officials and scholars, is frightening and an acknowledgement of a possible Western role in Sri Lanka’s destabilisation plot.
The ousted leader, in his lengthy interview with Abeyagoonasekera, made some attention-grabbing comments on the then US Ambassador here, Julie Chung. The ex-President questioned a particular aspect of Chung’s conduct during the protest campaign but his decision not to reveal it all in his memoirs is a mystery. Perhaps, one of the most thought-provoking queries raised by Abeyagoonasekera is the rationale in Gotabaya Rajapaksa’s claim that he didn’t want to suppress the protest campaign by using force against the backdrop of his own declaration that the CIA orchestrated the project.
Author’s foray into parliamentary politics

Gotabaya
For those genuinely interested in post-Chandrika Bandaranaike Kumaratunga developments, pertaining to international relations and geopolitics, may peruse ‘Winds of Change’ as the third of a trilogy. ‘Sri Lanka at Crossroads’ (2019) dealt with the Mahinda Rajapaksa period and ‘Conundrum of an Island’ (2021) discussed the treacherous Sirisena–Wickremesinghe alliance. The third in the series examined the end of the Sri Lanka Podujana Peramuna’s (SLPP) President Gotabaya Rajapaksa’s rule and the rise of Anura Kumara Dissanayake (AKD) whom the author described as a Marxist, though this writer is of the view the JVP and NPP leader AKD is not so. AKD has clearly aligned his administration with US-India while trying to sustain existing relationship with China.
Among Asanga Abeyagoonasekera’s other books were ‘Towards a Better World Order’ (2015) and ‘Teardrop Diplomacy: China’s Sri Lanka Foray’ (2023, Bloomsbury).
Had Abeyagoonasekera succeeded in his bid to launch a political career in 2015, the trilogy on Sri Lanka may not have materialised. Abeyagoonasekera contested the Gampaha district at the August 2015 parliamentary election on the UNP ticket but failed to garner sufficient preferences to secure a place in Parliament. That dealt a devastating setback to Abeyagoonasekera’s political ambitions, but the Wickremesinghe-Sirisena administration created the Institute of National Security Studies Sri Lanka (INSS), under the Ministry of Defence, for him. Abeyagoonasekera received the appointment as the founding Director-General of the national security think tank, from 2016 to 2020.
Several persons dealt with ‘Aragalaya’ (the late Prof. Nalin de Silva used to call it (Paragalaya) before Abeyagoonasekera though none of them examined the regional and global contexts so deeply, taking into consideration the relevant developments. Having read Wimal Weerawansa’s (Nine: The hidden story), Sena Thoradeniya’s (Galle Face Protest; Systems Change or Anarchy?). Mahinda Siriwardena’s (Sri Lanka’s Economic Revival – Reflection on the Journey from Crisis to Recovery) and Prof. Sunanda Maddumabandara’s (Aragalaye Balaya), the writer is of the opinion Abeyagoonasekera dealt with the period in question as an incisive insider.
Abeyagoonasekera, as a person who left the country, under duress, in 2021, painted a frightening picture of a country with a small and vulnerable economy trapped in major global rivalries. The former government servant attributed his self–imposed exile to two issues.
The first was the 2019 Easter Sunday carnage. Why did the Wickremesinghe-Sirisena government ignore the warning issued by Abeyagoonasekera, in his capacity as DG INSS, in respect of the Easter Sunday bombing campaign? There is absolutely no ambiguity at all in his claim. Abeyagoonasekera insists that he alerted the government four months before the National Thowheed Jamath (NTJ) bombers struck. The bottom line is that Abeyagoonasekera had issued the warning several weeks before India did but those at the helm of that inept administration chose to turn a blind eye.
The second was the impending economic crisis that engulfed the country in 2022. Abeyagoonasekera is deeply bitter about his arrest on 21 July, 2024, at the Bandaranaike International Airport (BIA) over an alleged IRD –related offence as reported at that time, especially because he was returning home to visit his sick mother.
Asanga’s father Ossie, a member of Parliament and controversial figure, was killed in an LTTE suicide attack at Thotalanga in late Oct. 1994. The Chairman and leader of Sri Lanka Mahajana Pakshaya had been on stage with then UNP presidential election candidate Gamini Dissanayake when the woman suicide cadre blasted herself. The assassination was meant to ensure Kumaratunga’s victory. The LTTE probably felt that it could manipulate Kumaratunga than the experienced Dissanayake who may have had reached some sort of consensus with New Delhi on how to deal with the LTTE.
Let me reproduce a question posed to Asanga Abeyagoonasekera and his response in ‘Winds of Change’ as some may believe that the author is holding something back. “Didn’t they listen?” a US intelligence officer had asked me incredulously after the bombings. Years later, during my role as a technical advisor for the International Monetary Fund (IMF) amid Sri Lanka’s collapse, the question resurfaced: “How did you foresee the collapse of a powerful regime with a majority in parliament?” My answer remained the same—patterns. Rigorously gathered data and relentless analysis reveal the arcs of history before they unfold.
Perhaps, readers may find what former cashiered Flying Officer Keerthi Ratnayake had to say about ‘Aragalaya’ and related developments (https://island.lk/ex-slaf-officer-sheds-light-on-developments-leading-to-aragalaya/)
Bombshell claim
Essentially, Abeyagoonasekera, on the basis of his exclusive and lengthy interview with former President Gotabaya Rajapaksa, confirmed what Wimal Weerawansa and Sena Thoradeniya alleged that the US spearheaded the operation.
But Prof. Maddumabandara, a confidant of first post-Aragalaya President Ranil Wickremesinghe has bared the direct Indian involvement in the regime change operation. In spite of Gotabaya Rajapaksa confidently clearing Indian NSA Doval of complicity in his ouster, Prof. Maddumabandara is on record as having said that the then Indian High Commissioner here Gopal Baglay put pressure on Speaker Mahinda Yapa Abeywardena to take over the government for an interim period. (https://island.lk/dovals-questionable-regional-stock-taking/)
Obviously, the US and India worked together on the Sri Lanka regime change operation. That is the undeniable truth. India wanted to thwart Wickremesinghe receiving the presidency by bringing in Speaker Abeywardena. That move went awry in spite of some sections of both Buddhist and Catholic clergy throwing their weight behind New Delhi.
The 2022 violent regime change operation cannot be discussed without taking into consideration the US-led project that also involved the UNP, JVP and TNA to engineer retired General Sarath Fonseka’s victory at the 2010 presidential election and their backing for turncoat Maithripala Sirisena at the 2015 presidential election.
The section, titled ‘Echoes of Crisis from Sri Lanka to Bangladesh: South Asia’s Struggle in a Polycrisis’, is riveting and underscores the complexity of the situation and fragility of governments. Executive power and undisputable majorities in Parliament seems irrelevant as external powers intervene thereby making the electoral system redundant.
Having meticulously compared the overthrowing of Gotabaya Rajapaksa and Bangladesh’s Premier Sheikh Hasina, the author condemned them for their alleged failures and brutality. Abeyagoonasekera stated: “When the military sides with the protesters, as it did in Sri Lanka and now in Bangladesh, it reveals the rulers’ vulnerabilities.” The author unmercifully chided the former President for seeking refuge in the West while alleging direct CIA role in his ouster. But that may have spared his life. Had he sought a lifeline from the Chinese so late the situation could have taken a turn for worse.
The comment that had been attributed to Gotabaya Rajapaksa seemed to belittle Ranil Wickremesinghe who accepted the challenge of becoming the Premier in May 2022 and then chosen by the ruling SLPP to complete the remainder of Gotabaya Rajapaksa’s five-year term. Ranil was definitely seen as an opportunistic vulture who backed ‘Aragalaya’ without any qualms till he saw an opening for himself out of the chaos.
On Wickremesinghe’s path
Abeyagoonasekera discussed the joint US-Indian strategy pertaining to Sri Lanka. Whatever the National People’s Power (NPP) and its President say, the current dispensation is continuing Wickremesinghe’s policy as pointed out by the author. In fact, this government appears to be ready even to go beyond Wickremesinghe’s understanding with New Delhi. The Memorandum of Understanding (MoU) on defence and the selling of the controlling interests of the Colombo Dockyard Limited (CDL) to India, mid last year, must have surprised even those who always pushed for enhanced relations at all levels.
The economic collapse that resulted in political upheaval has given New Delhi the perfect opportunity to consolidate its position here. Uncomplimentary comments on current Indian High Commissioner Santosh Jha in ‘Winds of Change’ have to be discussed, paying attention to Sri Lanka’s growing dependence and alleged clandestine activities of India’s Research and Analysis Wing (RAW). Abeyagoonasekera seemed to have no qualms in referring to RAW’s hand in 2019 Easter Sunday carnage.
Overall ‘Winds of Change’ encourages, inspires and confirms suspicions about US and Indian intelligence services and underscores the responsibility of those in power to be extra cautious. But, in the case of smaller and weaker economies, such as Sri Lanka still struggling to overcome the economic crisis, there seems to be no solution. Not only India and the US, the Chinese, too, pursue their agenda here unimpeded. Utilisation of political parties, represented in Parliament, selected individuals, and media, in the Chinese efforts, are obvious. Once parliamentarian Wijeyadasa Rajapakshe raised the Chinese interventions in Sri Lanka. He questioned the Parliament receiving about 240 personal laptops for all parliamentarians and top officials. The then UNPer told the writer his decision not to accept the laptop paid for by China. Perhaps, he is the only Sri Lankan politician to have written a strongly worded letter to Chinese leader Xi warning against high profile Chinese strategy.
Winds of Change
is available at
Vijitha Yapa and Sarasavi
By Shamindra Ferdinando
Midweek Review
Beginning of another ‘White Supremacist’ World Order?
Donald Trump’s complete lack of intelligence, empathy and common sense have become more apparent during the current term of his presidency. Ordinarily, a country’s wish to self-destruct as the United States seemingly does at present, and as the violence against US citizens and immigrants alike at the hands of federal authorities have shown in Minnesota, can be callously considered the business of that country. If the Trumpian imbecility was unfolding in Sri Lanka, anywhere else in South Asia or some other country of the purported Third World, the so-called World Order, led by the United States, would be preaching to us the values of democracy and human rights. But what happens when the actions of a powerful country, such as the United States, engulfs in the ensuing flames the rest of us? Trump and his madness then necessarily become our business, too, because combined with the military and economic power of the United States and its government’s proven lack of empathy for its own people, and the rest of the world, is quite literally a matter of global survival. Besides, one of the ‘positive’ outcomes of the Trumpian madness, as a friend observed recently, is that “he has single-handedly exposed and destroyed the fiction of ‘Western Civilisation’, including the pretenses of Europe.”
It is in this context that the speech delivered by the Canadian Prime Minister, Mark Carney, at the World Economic Forum, in Davos, on 20 January, 2026, deserves attention. It was an elegant speech, a slap in the face of Trump and his policies, the articulation of the need for global directional change, all in one. But, pertinently, it was also a speech that did not clearly accept responsibility for the current world (dis)order which Carney says needs to change. The reality of that need, however, was overly reemphasised by Trump himself during his meandering, arrogant and incohesive speech delivered a day later, spanning over one hour.
My interest is in what Carney did not specifically say in his speech: who would constitute the new world order, who would be its leaders and why should we believe it would be any different from the present one?
Speaking in French, Carney observed that he was talking about “a rupture in the world order, the end of a pleasant fiction and the beginning of a harsh reality, where geopolitics, where the large, main power, geopolitics, is submitted to no limits, no constraints.” He was, of course, responding to the vulgar script for global domination put in place by the Trumpian United States, given Trump’s declared interest in seeing Canada as part of the United States, his avarice for Greenland, not to mention his already concluded grab for Venezuelan oil. But within this scenario, bound by ‘no limits’ and ‘no constraints’ he was also talking of Russia and China albeit in a coded language.
He reiterated, “that the other countries, especially intermediate powers like Canada, are not powerless. They have the capacity to build a new order that encompasses our values, such as respect for human rights, sustainable development, solidarity, sovereignty and territorial integrity of the various states. The power of the less power starts with honesty.”
Who could disagree with Carney? His words are a refreshing whiff of fresh air in the intellectual wasteland that is the Trumpian Oval Office and the current world order it prevails over. But where has been the ‘honesty’ of the less powerful in the specific situation where he equates Canada itself within this spectrum? He tells us that “the rules-based order is fading, that the strong can do what they can, and the weak must suffer what they must.”
That is stating the obvious. We have known this for decades by experience. Long before Canada’s relative silence with regard to Trump’s and US’ facilitation of the assault on Palestine and the massacre of its people, and the US President’s economic grab in Venezuela and the kidnapping of that country’s President and his wife, Canada’s own chorus in the world order that Carney now critiques has been embellished by silence or – even worse – by chords written by the global dominance orchestra of the United States.
He says the fading of the rules-based order has occurred because of the “strong tendency for countries to go along, to get along, to accommodate, to avoid trouble, to hope that compliance will buy safety.” Canada fits this description better than most other nations I can think of. But would Canada, along with other nations among the silent majority within the ‘intermediate powers’ take the responsibility for the mess in the world precisely that silence has directly led to creating? Who will pay for the pain many nations have endured in the prevailing world order? Will Canada lead the way in the new world order in doing this?
Carney further articulates that “for decades, countries like Canada prospered under what we called the rules-based international order. We joined its institutions, we praised its principles, we benefited from its predictability. And because of that, we could pursue values-based foreign policies under its protection.”
But this is not true, is it? Countries like Canada prospered not merely because of the stability of rules of the world order, but because they opted for silence when they should not have. The rupture and the chaos in the world order Carney now critiques and is insanely led by Trump today is not merely the latter’s creation. It has been co-authored for decades by countries such as Canada, France, the United Kingdom to mention just a few who also regularly chant the twin-mantras of human rights and democracy. Trump is merely the latest and the most vocal proponent of the nastiness of that World Order.
It is not that Carney is unaware of this unpleasant reality. He accepts that “the story of the international rules-based order was partially false, that the strongest would exempt themselves when convenient, that trade rules were enforced asymmetrically. And we knew that international law applied with varying rigour depending on the identity of the accused or the victim.”
While Canada seems to be coming to terms with this reality only now, countries like Sri Lanka and others in similarly disempowered positions in this world order have experienced this for decades, because, as I have outlined earlier, Canada et al have been complicit sustainers of the now demonised and demonic world order.
It is not that I disagree with the basic description Carney has painted of the status of the world. But from personal experience and from the perspective of a citizen from a powerless country, I simply do not trust those who preach ‘the gospel of the good’ not as a matter of principle, but only when the going gets tough for them.
At this rather late stage, Carney says, Canada is “amongst the first to hear the wake-up call, leading us to fundamentally shift our strategic posture.” Unfortunately, we, the people of countries who had to dance to the tunes of the world order led by the First World, have heard it for years, with no one listening to us when our discomforts were articulated. Now, Carney wants ‘middle powers’ or ‘intermediate powers’ within which he also locates Canada, “to live the truth?” For him, the truth means “naming reality” as it exists; “acting consistently” towards all in the world; “applying the same standards to allies and rivals” and “building what we claim to believe in, rather than waiting for the old order to be restored.” This appears to be the operational mantra for the new world order he is envisioning in which he sees Canada as a legitimate leader merely due to its late wakeup call.
He goes on to give a list of things Canada has done locally and globally and concludes by saying, “we have a recognition of what’s happening and a determination to act accordingly. We understand that this rupture calls for more than adaptation. It calls for honesty about the world as it is.” He goes on to say Canada also has “the capacity to stop pretending, to name reality, to build our strength at home and to act together.” He notes this is “Canada’s path. We choose it openly and confidently, and it is a path wide open to any country willing to take it with us.” Quite simply, this a leadership pitch for a new world order with Canada at its helm.
Without being overly cynical, this sounds very familiar, not too dissimilar to what USAID and Voice of America preached to the world; not too dissimilar to what the propaganda arms of the Soviet Union and the Chinese Communist Party used to preach in our own languages when we were growing up. It is difficult to buy this argument and accept Canadian and middle country leadership for the new world order when they have been consistently part of the problem of the old one and its excuses for institutionalised double standards practiced by international organisations such as the likes of the United Nations, the World Bank, the International Monetary Fund and other hegemonic entities that have catered to the whims of that world order.
As far as Canada is concerned, it is evident that it has suddenly woken up only due to an existential threat at home projected from across its southern border and Trump’s threats against the Danish territory of Greenland. When Gaza was battered, and Venezuela was raped, there was no audible clarion call. Therefore, there is no real desire for democracy or human rights in its true form, but a convenient and strategic interest in creating a new ‘white supremacist’ world order in the same persona as before, but this time led by a new white warrior instead. The rest of us would be mere followers, nodding our heads as expected as was the case before.
As the 20th century American standup comedian Lenny Bruce once said, “never trust a preacher with more than two suits.” Mr. Carney, Canada along with the so-called middle powers and the lapsed colonialists have way more than two suits, and we have seen them all.
Midweek Review
The MAD Spectre
Lo and behold the dangerous doings,
Of our most rational of animals,
Said to be the pride of the natural order,
Who stands on its head Perennial Wisdom,
Preached by the likes of Plato and Confucius,
Now vexing the earth and international waters,
With nuke-armed subs and other lethal weapons,
But giving fresh life to the Balance of Terror,
And the spectre of Mutually Assured Destruction.
By Lynn Ockersz
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