Features
The Tsunami of 2024 and what followed at the Finance Ministry and overseas
All our plans and energies were turned topsy turvey when on December 26, 2004 a catastrophic Tsunami hit the southern, eastern and the northern coastline of the country. The BBC described it in the following way: “At 00. 59 GMT on 26th December 2004 a magnitude 9.4 earth quake ripped apart the sea floor off the coast of Northwest Sumatra. Over 100 years of accumulated stress was released in the second biggest earthquake in recorded history. It unleashed a devastating Tsunami that travelled thousands of kilometres across the Indian Ocean, taking the lives of more than 200,000 people in countries so far apart as Indonesia, the Maldives, Sri Lanka and Somalia.
“Billions of tonnes of sea water forced upward by the movement of the seabed now flowed away from the fault in a series of giant waves. The first wave hit Sri Lanka with no recede and no warning. The waves, up to six of them, weighing over 100 billion tonnes, rushed inland like a giant tide. As they hit Sri Lanka’s southern tip they began to change direction, an effect called refraction. A part of a wave closest to the shore slowed down in the shallow water, leaving the outer part, travelling at faster speeds, to bend around the island. The south west coast of Sri Lanka, the side that should have been safe, was suddenly in the waves direct line. Cities such as Galle were destroyed”.
As a consequence of this sudden turn Tsunami waves hit a train from Colombo on its way to Galle near Peraliya sweeping it away from the rail track and killing every one of its passengers. It was estimated that approximately 30,000 Sri Lankans were killed by the Tsunami. [TAFREN placed the number at 37,200 while the Ministry of National Planning quoted a figure of 27,724].
I was in Munich at that time to attend a meeting of investors arranged by our representative there. At the conclusion of this meeting a farewell dinner was arranged in a lodge in the snow capped mountains close to Berchtesgarden where Hitler had built his Albert Speer designed winter retreat. The television set in the lodge started displaying a live coverage of the swirling waters of the Tsunami including clips of the mayhem in Galle. I immediately made arrangements to return to Colombo the following day.
CBK who was in London also returned and the Foreign Ministry was inundated with queries from our missions abroad. Members of the public in European countries began lining up to contribute their mite for Tsunami relief. When I visited our embassy in Berlin I found that schoolchildren were lining up outside to contribute to Tsunami relief in Sri Lanka.
Inventorisation
Our first task was to take stock of the situation and provide immediate relief for those who had lost their loved ones, dwelling places and a livelihood. Pathetically the first request was for assistance in disposing of the dead. We immediately asked the Grama Sevakas of the affected areas to make lists of those requiring assistance. The Treasury released Rs. 15,000 to each of the affected families through the GA and Grama Sevakas. We waived the usual judicial proceedings which were necessary before burials took place because such arrangements were not practical under the circumstances.
After investigation we found that one million households were affected and we would need five billion dollars for rehabilitation and reconstruction. Another one billion dollars was needed to provide immediate relief. As many as 174 schools were affected and we decided to “build back and build back better” no matter the cost. The whole of Galle city centre had been inundated and had to be rebuilt. While the Ministry of Housing was responsible for rebuilding plans they were dragging their feet due to bureaucratic issues. Due to their delays I asked my friend and distinguished architect Ashley de Vos to do some type plans and his firm quickly provided them without a charge.
At the same time several international NGOs undertook to build schools at their expense and they too employed some distinguished internationally known architects. Some hospitals were also rebuilt. But the most noteworthy was the rebuilding of Mahamodera Hospital in Galle which was financed by the friends of Chancellor Helmut Kohl. I will recount that story later in this book.
Pass books
There was one innovation that we in the Finance Ministry were particularly proud of We had to face the perennial problem of ensuring that the funds earmarked reached the recipients in full and in time. Along the way intermediate officials siphoned off the money allocated for relief and the poor recipient was not given his due. Since it was a “hand out” the recipient was also satisfied with what little he was given by the official. We decided to eliminate middlemen and go direct to the recipient by opening a bank account for him in the nearest branch of a state bank, particularly the People’s Bank.
Bank officials worked round the clock to issue pass books and soon every affected person was covered. It was heart-rending when we found that they referred to the Passbook as their Passport since they had lost all other documentation such as birth certificates, educational certificates and salary receipts in the Tsunami. Our innovation took hold even though many sceptics did not believe it possible. Even CBK was doubtful. I then got the People’s Bank to send me a list of the pass books issued daily with a schedule giving the names of the recipients. This list was sent to the President daily so that she could double check the progress of our project.
In fact James Wolfensohn the charismatic leader of the World Bank was so impressed that he introduced the Pass Book scheme to Brazil. He told me that he dreaded to visit the Favelas or slums there because he could see the corruption of officials who siphoned off the World Bank grants to the poor. Much later India too used modern technology to launch the “Adhar scheme” by which the poor could use the banking system and bypass the notoriously corrupt lower officialdom. During my presentation to the donor meeting in Kandy I referred to our innovation thus, “We have been able to innovate in the field of immediate monetary relief and reimbursements through the state banking system which has drawn the support and satisfaction of the World Bank.”
In passing I can refer to a meeting arranged by Transparency International on “combating corruption” which was held in Cape Town in South Africa. TI was represented by Nihal Jayawickreme and the Sri Lankan invitees were Rukman Senanayake, Aritha Wikremanayake, Waruna Karunatilleke and myself. I believe we were recommended by Rukman who was a wild life enthusiast and cameraman like his uncle Dudley Senanayake. His main objective was to visit the wild life reserves in South Africa after the meeting.
The lead speaker at this conference was Robert McNamara- the famous Defence Secretary of the US under Presidents Kennedy and Johnson- generally considered to be the “Butcher of Vietnam” for his unrelenting pursuit of a military solution in that unfortunate country. After an ignominious defeat he changed his attitudes and as a way of repentance became an international “do gooder”. He became the chief of the World Bank and poured money into Africa which perhaps may have been the reason for his presence at this meeting.
During his speech he made the extraordinary statement that “all the Ministers in West Africa are crooks who owned private fishing boats and were defrauding their Governments”. There was a hushed silence in the hall till a small made African man in a well tailored black suit strode up to the stage and introduced himself as a Minister from Ghana “who did not own fishing boats” and demanded a retraction. After much discussion McNamara apologized and the meeting was brought to a close.
Since that time corruption has been identified by the IMF and the World Bank as a major impediment to growth and I am happy that our attempts to clean up the assistance methodology during the Tsunami was a small milestone in that direction. Happily I could inform the donor community that “Regarding relief and rehabilitation permit me to say that we are proud that the predicted “Second Tsunami” of famines, pestilence, epidemics and lack of basic medicines, clothing and shelter did not come to pass.
Jakarta
Indonesia and Sri Lanka were the worst hit by the Tsunami though parts of Thailand and South India were also affected. India declared that they were not seeking international assistance to rebuild. The IMF and the World Bank held a high level donor meeting in Jakarta and invited us to send a delegation. In response Lakshman Kadirgamar, myself, PB Jayasundera and Prasad Kariyawasam of the Foreign Ministry attended the meeting. Our objective was to get maximum pledges of support as we did not want to emasculate the 2005 Budget which had been passed by acclamation in Parliament. [The UNP boycotted the vote as they did not want to publicly oppose many of the relief measures that we had proposed.]
The donor conference was attended by participants at the highest level. The Managing Director of the IMF Rodrigo De Rato and the head of the World Bank Wolfensohn were there. The US was represented by Secretary of State Colin Powell who was to report direct to his President. The head of ADB and the Japanese Finance Minister was also present. Lakshman Kadirgamar made an emotional speech after which we got down to the business of soliciting funds. Since it was too early to present project proposals the donors were looking to providing block grants at that time. The World Bank allocated Dollars 100 million. The IMF also granted 90 million dollars.
While PB and I were having a cup of tea in the cafeteria, De Rato came to sit with us and inquired whether we wanted the 90 million immediately. When I said that it was crucial he wanted me to hand write a note to him then and there so that he could make the announcement in the plenary session. Accordingly the Jakarta meeting gave us funds which could be disbursed immediately. Other countries like France and Japan pledged to provide funding after meetings in Tokyo and Paris to which we were invited.
Another benefit obtained was that Colin Powell had given a sympathetic report so that a close relationship was established by us with President Bush and President Bill Clinton who personally supervised their Sri Lankan effort. Clinton visited Sri Lanka twice and CBK and I met him again in Washington. Bush sent his father President Bush senior with Clinton on his visit to Galle to inspect the damage. Bush senior said that he will “get his boy” President George Bush Jnr. to help us.
Tokyo
PB and I next went to Japan which had a special interest in Sri Lanka as the biggest lender to the country at that time. It was much later in time that China came into the picture in a big way under Mahinda Rajapaksa who may be called the “father of unsolicited projects”. We had several meetings with the Ministry of Finance and JAICA. While they were willing to intervene with considerable assistance they raised the inevitable question of proper disbursements and corruption which had plagued JAICA projects in the country. Instead of arguing about it we agreed that officials from the Japanese Audit department could be housed in our Ministry of Finance to check our disbursements. This saved much haggling and also increased the quantum of aid. I also admired PB’s quick decision making in sticking to the essentials of our claims and focusing on the results. This would often put him in hot water with the usual bureaucratic audit types in the administration who put rules before success and could not match PB’s decision making skills.
There was an interesting diversion during our visit to Japan. Our Ambassador Tilak Amunugama had arranged for us to travel to a Buddhist Temple in Osaka where the officiating monk had agreed to make a substantial donation to our Tsunami Fund. We went by bullet train to Osaka and were driven to the temple in luxury cars. It was then that we realized that this sect or “Nikaya” catered only to millionaires. It was a well appointed temple building with a large pool stocked with fat “Koi” or Carp.
The temple organized an annual nationwide “Koi” competition and stocked its pool with the winners. I have never in my life seen such well fed carp even in China where similar big fish are kept close to the kitchen for special orders from the diners’ tables.
We were informed that there were several wives of Japanese millionaires whose hobby was rearing carp for such competitions. The chief monk made a substantial donation to our Ambassador’s fund. He had visited India for a Buddhist Conference and was fascinated by the multitudes of worshippers. He said however that he was disappointed with Sri Lankan visitors who had promised to send him a Bo sapling from Anuradhapura but had not done so. Ambassador Amunugama promised to rectify that omission and one hopes that he, unlike his predecessors, had kept his word.
We on the other hand kept our word and daily greeted the Japanese auditors who occupied a floor of the Finance Ministry and carefully went through the vouchers signed by recipients of Japanese largesse. Some years later when the Fukushima tragedy struck Japan I recalled in our Parliament the timely help given by Japan during the Tsunami “For over 50 years, as the Leader of the Opposition mentioned, Japan has been helping us in our development efforts. But it is particularly poignant because when the Tsunami struck Sri Lanka in 2004 the first country to come to our assistance was Japan.
“They gave us an immediate grant of 90 million dollars which was a grand humanitarian gesture. They did not go through the normal Parliamentary procedures which are so important in development assistance. They followed it up with a soft loan of another US Dollars 90 million. So at this time of tragedy for Japan we should all have our feelings of sadness as well as confidence in the Government and people of Japan who came to our assistance at a difficult time.” [Hansard March 22, 2011].
(Excerpted from Vol. 3 of the Sarath Amunugama autobiography)
Features
The NPP Government is more than a JVP offspring:
It is also different from all past governments as it faces new and different challenges
No one knows whether the already broken ceasefire between the US and Iran, with Israel as a reluctant adjunct, will last the full 10 days, or what will come thereafter. The world’s economic woes are not over and the markets are yo-yoing in response to Trump’s twitches and Iran’s gate keeping at the Strait of Hormuz. The gloomy expert foretelling is that full economic normalcy will not return until the year is over even if the war were to end with the ceasefire. That means continuing challenges for Sri Lanka and more of the tough learning in the art of governing for the NPP.
The NPP government has been doing what most governments in Asia have been doing to cope with the current global crisis, which is also an Asian crisis insofar as oil supplies and other supply chains are concerned. What the government can and must do additionally is to be totally candid with the people and keep them informed of everything that it is doing – from monitoring import prices to the timely arranging of supplies, all the details of tender, the tracking of arrivals, and keeping the distribution flow through the market without bottlenecks. That way the government can eliminate upstream tender rackets and downstream hoarding swindles. People do not expect miracles from their government, only honest, sincere and serious effort in difficult circumstances. Backed up by clear communication and constant public engagement.
But nothing is going to stop the flow of criticisms against the NPP government. That is a fact of Sri Lankan politics. Even though the opposition forces are weak and have little traction and even less credibility, there has not been any drought in the criticisms levelled against the still fledgling government. These criticisms can be categorized as ideological, institutional and oppositional criticisms, with each category having its own constituency and/or commentators. The three categories invariably overlap and there are instances of criticisms that excite only the pundits but have no political resonance.
April 5 anniversary nostalgia
There is also a new line of criticism that might be inspired by the April 5 anniversary nostalgia for the 1971 JVP insurrection. This new line traces the NPP government to the distant roots of the JVP – its April 1965 founding “in a working-class home in Akmeemana, Galle” by a 22-year old Rohana Wijeweera and seven others; the short lived 1971 insurrection that was easily defeated; and the much longer and more devastating second (1987 to 1989) insurrection that led to the elimination of the JVP’s frontline leaders including Wijeweera, and brought about a change in the JVP’s political direction with commitment to parliamentary democracy. So far, so good, as history goes.
But where the nostalgic narrative starts to bend is in attempting a straight line connection from the 1965 Akmeemana origins of the JVP to the national electoral victories of the NPP in 2024. And the bend gets broken in trying to bridge the gap between the “founding anti-imperialist economics” of the JVP and the practical imperatives of the NPP government in “governing a debt-laden small open economy.” Yet this line of criticism differs from the other lines of criticism that I have alluded to, but more so for its moral purpose than for its analytical clarity. The search for clarity could begin with question – why is the NPP government more than a JVP offspring? The answer is not so simple, but it is also not too complicated.
For starters, the JVP was a political response to the national and global conditions of the 1960s and 1970s, piggybacking socialism on the bandwagon of ethno-nationalism in a bi-polar world that was ideologically split between status quo capitalism and the alternative of socialism. The NPP government, on the other hand, is not only a response to, but is also a product of the conditions of the 2010s and 2020s. The twain cannot be more different. Nothing is the same between then and now, locally and globally.
A pragmatic way to look at the differences between the origins of the JVP and the circumstances of the NPP government is to look at the very range of criticisms that are levelled against the NPP government. What I categorize as ideological criticisms include criticisms of the government’s pro-IMF and allegedly neo-liberal economic policies, as well as the government’s foreign policy stances – on Israel, on the current US-Israel war against Iran, the geopolitics of the Indian Ocean, and the apparent closeness to the Modi government in India. These criticisms emanate from the non-JVP left and Sinhala Buddhist nationalists.
Strands of nationalism
To digress briefly, there are several strands in the overall bundle of Sri Lankan nationalism. There is the liberal inclusive strand, the left-progressive strand, the exclusive Sinhala Buddhist Nationalist (SBN) strand, and the defensive strands of minority nationalisms. Given Sri Lanka’s historical political formations and alliances, much overlapping goes on between the different strands. The overlapping gets selective on an issue by issue basis, which in itself is not unwelcome insofar as it promotes plurality in place of exclusivity.
Historically as well, and certainly after 1956, the SBN strand has been the dominant strand of nationalism in Sri Lanka and has had the most influential say in every government until now. Past versions of the JVP frequently straddled the dominant SBN space. Currently, however, the dominant SBN strand is in one of its more dormant phases and the NPP government could be a reason for the current dormancy. This is an obvious difference between the old JVP and the new NPP.
A second set of criticisms, or institutional criticisms, emanate from political liberals and human rights activists and these are about the NPP government’s actions or non-actions in regard to constitutional changes, the future of the elected executive presidency, the status of provincial devolution and the timing of provincial council elections, progress on human rights issues, the resolution of unfinished postwar businesses including the amnesia over mass graves. These criticisms and the issues they represent are also in varying ways the primary concerns of the island’s Tamils, Muslims and the Malaiyaka (planntationn) Tamils. As with the overlapping between the left and the non-minority nationalists, there is also overlapping between the liberal activists and minority representatives.
A third category includes what might be called oppositional criticisms and they counterpose the JVP’s past against the NPP’s present, call into question the JVP’s commitment to multi-party democracy and raise alarms about a creeping constitutional dictatorship. This category also includes criticisms of the NPP government’s lack of governmental experience and competence; alleged instances of abuse of power, mismanagement and even corruption; alleged harassment of past politicians; and the failure to find the alleged mastermind behind the 2019 Easter bombings. At a policy and implementational level, there have been criticisms of the government’s educational reforms and electricity reforms, the responses to cyclone Ditwah, and the current global oil and economic crises. The purveyors of oppositional criticisms are drawn from the general political class which includes political parties, current and past parliamentarians, as well as media pundits.
Criticisms as expectations
What is common to all three categories of criticisms is that they collectively represent what were understood to be promises by the NPP before the elections, and have become expectations of the NPP government after the elections. It is the range and nature of these criticisms and the corresponding expectations that make the NPP government a lot more than a mere JVP offspring, and significantly differentiate it from every previous government.
The deliverables that are expected of the NPP government were never a part of the vocabulary of the original JVP platform and programs. The very mode of parliamentary politics was ideologically anathema to the JVP of Akmeemana. And there was no mention of or concern for minority rights, or constitutional reforms. On foreign policy, it was all India phobia without Anglo mania – a halfway variation of Sri Lanka’s mainstream foreign policy of Anglo mania and India phobia. For a party of the rural proletariat, the JVP was virulently opposed to the plantation proletariat. The JVP’s version of anti-imperialist economics would hardly have excited the Sri Lankan electorate at any time, and certainly not at the present time.
At the same time, the NPP government is also the only government that has genealogical antecedents to a political movement or organization like the JVP. That in itself makes the NPP government unique among Sri Lanka’s other governments. The formation of the NPP is the culmination of the evolution of the JVP that began after the second insurrection with the shedding of political violence, acceptance of political plurality and commitment to electoral democracy.
But the evolution was not entirely a process of internal transformation. It was also a response to a rapidly and radically changing circumstances both within Sri Lanka and beyond. This evolution has not been a rejection of the founding socialist purposes of the JVP in 1968, but their adaptation in the endless political search, under constantly changing conditions, for a non-violent, socialist and democratic framework that would facilitate the full development of the human potential of all Sri Lankans.
The burden of expectations is unmistakable, but what is also remarkable is their comprehensiveness and the NPP’s formal commitment to all of them at the same time. No previous government shouldered such an extensive burden or showed such a willing commitment to each and every one of the expectations. In the brewing global economic crisis, the criticisms, expectations and the priorities of the government will invariably be focussed on keeping the economy alive and alleviating the day-to-day difficulties of millions of Sri Lankan families. While what the NPP government can and must do may not differ much from what other Asian governments – from Pakistan to Vietnam – are doing, it could and should do better than what any and all past Sri Lankan governments did when facing economic challenges.
by Rajan Philips
Features
A Fragile Ceasefire: Pakistan’s Glory and Israel’s Sabotage
After threatening to annihilate one of the planet’s oldest civilizations, TACO* Trump chickened out again by grasping the ceasefire lifeline that Pakistan had assiduously prepared. Trump needed the ceasefire badly to stem the mounting opposition to the war in America. Israeli Prime Minister Netanyahu wanted the war to continue because he needed it badly for his political survival. So, he contrived a fiction and convinced Trump that Lebanon is not included in the ceasefire. Trump as usual may not have noticed that Pakistan’s Prime Minister Shehbaz Shariff had clearly indicated Lebanon’s inclusion in his announcement of the ceasefire at 7:50 PM, Tuesday, on X. Ten minutes before Donald Trump’s fake deadline.
True to form on Wednesday, Israel unleashed the heaviest assault by far on Lebanon, reportedly killing over 300 people, the highest single-day death toll in the current war. Iran responded by re-closing the Strait of Hormuz and questioning the need for talks in Islamabad over the weekend. There were other incidents as well, with an oil refinery attacked in Iran, and Iranian drones and missiles slamming oil and gas infrastructure in UAE, Saudi Arabia, Bahrain and Qatar.
The US tried to insist that Lebanon is not part of the ceasefire, with the argumentative US Vice President JD Vance, who was in Budapest, Hungary, campaigning for Viktor Orban, calling the whole thing a matter of “bad faith negotiation” as well as “legitimate misunderstanding” on the part of Iran, and warning Iran that “it would be dumb to jeopardise its ceasefire with Washington over Israel’s attacks in Lebanon.”
But as the attack in Lebanon drew international condemnation – from Pope Leo to UN Secretary General António Guterres, and several world leaders, and amidst fears of Lebanon becoming another Gaza with 1,500 people including 130 children killed and more than a million people displaced, Washington got Israel to stop its “lawn mowing” in southern Lebanon.
Prime Minister Benjamin Netanyahu agreed to “open direct negotiations with Lebanon as soon as possible,”. Lebanese President Joeseph Aoun has also called for “a ceasefire between Israel and Lebanon, followed by direct negotiations between them.” Israel’s involvement in Lebanon remains a wild card that threatens the ceasefire and could scuttle the talks between the US and Iran scheduled for Saturday in Islamabad.
Losers and Winners
After the ceasefire, both the Trump Administration and Iran have claimed total victories while the Israeli government wants the war to continue. The truth is that after more than a month into nonstop bombing of Iran, America and Israel have won nothing. Only Iran has won something it did not have when Trump and Netanyahu started their war. Iran now has not only a say over but control of the Strait of Hormuz. The ceasefire acknowledges this. Both Trump and Netanyahu are under fire in their respective countries and have no allies in the world except one another.
The real diplomatic winner is Pakistan. Salman Rushdie’s palimpsest-country has emerged as a key player in global politics and an influential mediator in a volatile region. Pakistan’s Prime Minister Shehbaz Sharif and Chief of Defence Field Marshal Asim Munir have both been praised by President Trump and credited for achieving the current ceasefire. The Iranian regime has also been effusive in its praise of Pakistan’s efforts.
It is Pakistan that persisted with the effort after initial attempts at backdoor diplomacy by Egypt, Pakistan and Türkiye started floundering. Sharing a 900 km border and deep cultural history with Iran, and having a skirmish of its own on the eastern front with Afghanistan, Pakistan has all the reason to contain and potentially resolve the current conflict in Iran. Although a majority Sunni Muslim country, Pakistan is home to the second largest Shia Muslim population after Iran, and is the easterly terminus of the Shia Arc that stretches from Lebanon. The country also has a mutual defense pact with Saudi Arabia that includes Pakistan’s nuclear cover for the Kingdom. An open conflict between Iran and Saudi Arabia would have put Pakistan in a dangerously awkward position.
It is now known and Trump has acknowledged that China had a hand in helping Iran get to the diplomatic table. Pakistan used its connections well to get Chinese diplomatic reinforcement. Pakistani Foreign Minister Ishaq Dar flew to Beijing to brief his Chinese counterpart and secured China’s public support for the diplomatic efforts. The visit produced a Five-Point Plan that became a sequel to America’s 15-point proposal and the eventual ten-point offer by Iran.
There is no consensus between parties as to which points are where and who is agreeing to what. The chaos is par for the course the way Donald Trumps conducts global affairs. So, all kudos to Pakistan for quietly persisting with old school toing and froing and producing a semblance of an agreement on a tweet without a parchment.
It is also noteworthy that Israel has been excluded from all the diplomatic efforts so far. And it is remarkable, but should not be surprising, the way Trump has sidelined Isreal from the talks. Prime Minister Netanyahu has been enjoying overwhelming support of Israelis for starting the war of his life against Iran and getting the US to spearhead it. But now the country is getting confused and is exposed to Iranian missiles and drones far more than ever before. The Israeli opposition is finally coming alive realizing what little has Netanyahu’s wars have achieved and at what cost. Israel has alienated a majority of Americans and has no ally anywhere else.
It will be a busy Saturday in Islamabad, where the US and Iranian delegations are set to meet. Iran would seem to have insisted and secured the assurance that the US delegation will be led by Vice President Vance, while including Trump’s personal diplomats – Steve Witkoff and son-in-law Jared Kushner. Iran has not announced its team but it is expected to be led, for protocol parity, by Iran’s Speaker Mohammad Bagher Ghalibaf, and will likely include its suave Foreign Minister Abbas Araghchi. Vice President Vance’s attendance will be the most senior US engagement with Iran since Secretary of State John Kerry negotiated the 2015 nuclear deal under President Obama.
The physical arrangements for the talks are still not public although Islamabad has been turned into a security fortress given the stakes and risks involved. The talks are expected to be ‘indirect’, with the two delegations in separate rooms and Pakistani officials shuttling between them. The status of Iran’s enriched uranium and the reopening of the Strait of Hormuz will be the major points of contention. After Netanyahu’s overreach on Wednesday, Lebanon is also on the short list
The 2015 nuclear deal (the Joint Comprehensive Action Plan) took months of negotiations and involved multiple parties besides the US and Iran, including China, France, Germany, UK, Russia and the EU. That served the cause of regional and world peace well until Trump tore up the deal to spite Obama. It would be too much to expect anything similar after a weekend encounter in Islamabad. But if the talks could lead to at least a permanent ceasefire and the return to diplomacy that would be a huge achievement.
(*As of 2025–2026, Donald Trump is nicknamed “TACO Trump” by Wall Street traders and investors as an acronym for “”. This term highlights a perceived pattern of him making strong tariff threats that cause market panic, only to later retreat or weaken them, causing a rebound.)
by Rajan Philips
Features
CIA’s hidden weapon in Iran
We are passing through the ten-day interregnum called a ceasefire over the War on Iran. The world may breathe briefly, but this pause is not reassurance—it is a deliberate interlude, a vacuum in which every actor positions for the next escalation. Iran is far from secure. Behind the veneer of calm, external powers and local forces are preparing, arming, and coordinating. The United States is unlikely to deploy conventional ground troops; the next moves will be executed through proxies whose behaviour will defy expectation. These insurgents are shaped, guided, and amplified by intelligence and technology, capable of moving silently, striking precisely, and vanishing before retaliation. The ceasefire is not peace—it is the prelude to disruption.
The Kurds, historically instruments of Tehran against Baghdad, are now vectors for the next insurgency inside Iran. This movement is neither organic nor local. It is externally orchestrated, with the CIA as the principal architect. History provides the blueprint: under Mohammad-Reza Shah Pahlavi, Kurdish uprisings were manipulated, never supported out of sympathy. They were instruments of leverage against Iraq, a way to weaken a rival while projecting influence beyond Iran’s borders. Colonel Isa Pejman, Iranian military intelligence officer who played a role in Kurdish affairs, recalled proposing support for a military insurgency in Iraq, only for the Shah to respond coldly: “[Mustafa] Barzani killed my Army soldiers… please forget it. The zeitgeist and regional context have been completely transformed.” The Kurds were pawns, but pawns with strategic weight. Pejman later noted: “When the Shah wrote on the back of the letter ‘Accepted’ to General Pakravan, I felt I was the true leader of the Kurdish movement.” The seeds planted then are now being activated under new, technologically empowered auspices.
Iran’s geographic vulnerabilities make this possible. The Shah understood the trap: a vast territory with porous borders, squeezed by Soviet pressure from the north and radical Arab states from the west. “We are in a really terrible situation since Moscow’s twin pincers coming down through Kabul and Baghdad surround us,” he warned Asadollah Alam. From Soviet support for the Mahabad Republic to Barzani’s dream of a unified Kurdistan, Tehran knew an autonomous Kurdish bloc could destabilize both Iraq and Iran. “Since the formation of the Soviet-backed Mahabad Republic, the Shah had been considerably worried about the Kurdish threat,” a US assessment concluded.
Today, the Kurds’ significance is operational, not symbolic. The CIA’s recent rescue of a downed F-15 airman using Ghost Murmur, a quantum magnetometry system, demonstrated the reach of technology in intelligence operations. The airman survived two days on Iranian soil before extraction. This was not a simple rescue; it was proof that highly mobile, technologically augmented operations can penetrate Iranian territory with surgical precision. The same logic applies to insurgency preparation: when individuals can be tracked through electromagnetic signatures, AI-enhanced surveillance, and drones, proxy forces can be armed, guided, and coordinated with unprecedented efficiency. The Kurds are no longer pawns—they are a living network capable of fracturing Iranian cohesion while providing deniability to foreign powers.
Iran’s engagement with Iraqi Kurds was always containment, not empowerment. The Shah’s goal was never Kurdish independence. “We do not approve an independent [Iraqi] Kurdistan,” he stated explicitly. Yet their utility as instruments of regional strategy was undeniable. The CIA’s revival of these networks continues a long-standing pattern: insurgent groups integrated into the wider calculus of international power. Israel, Iran, and the Kurds formed a triangular strategic relationship that terrified Baghdad. “For Baghdad, an Iranian-Israeli-Kurdish triangular alliance was an existential threat,” contemporary reports noted. This is the template for modern manipulation: a networked insurgency, externally supported, capable of destabilizing regimes from within while giving foreign powers plausible deniability.
Iran today faces fragility. Years of sanctions, repression, and targeted strikes have weakened educational and scientific hubs; Sharif University in Tehran, one of the country’s leading scientific centres, was bombed. Leaders, scholars, and innovators have been eliminated. Military readiness is compromised. Generations-long setbacks leave Iran exposed. Against this backdrop, a Kurdish insurgency armed with drones, AI-supported surveillance, and precision munitions could do more than disrupt—it could fracture the state internally. The current ten-day ceasefire is a mirage; the next wave of revolt is already being orchestrated.
CIA involvement is deliberate. Operations are coordinated with allied intelligence agencies, leveraging Kurdish grievances, mobility, and ethnolinguistic networks. The Kurds’ spread across Iran, Iraq, Turkey, and Syria provides operational depth—allowing insurgents to strike, vanish, and regroup with impunity. Barzani understood leverage decades ago: “We could be useful to the United States… Look at our strategic location on the flank of any possible Soviet advance into the Middle East.” Today, the calculation is inverted: Kurds are no longer instruments against Baghdad; they are potential disruptors inside Tehran itself.
Technology is central. Ghost Murmur’s ability to detect a single heartbeat remotely exemplifies how intelligence can underpin insurgent networks. Drones, satellite communications, AI predictive modeling, and battlefield sensors create an infrastructure that can transform a dispersed Kurdish insurgency into a high-precision operation. Iran can no longer rely on fortifications or loyalty alone; the external environment has been recalibrated by technology.
History provides the roadmap. The Shah’s betrayal of Barzani after the 1975 Algiers Agreement demonstrated that external actors can manipulate both Iranian ambitions and Kurdish loyalties. “The Shah sold out the Kurds,” Yitzhak Rabin told Kissinger. “We could not station our troops there and keep fighting forever,” the Shah explained to Alam. The Kurds are a pivot, not a cause. Networks once acting under Tehran’s influence are now being repurposed against it.
The insurgency exploits societal fissures. Kurdish discontent in Iran, suppressed for decades, provides fertile ground. Historical betrayal fuels modern narratives: “Barzani claimed that ‘Isa Pejman sold us out to the Shah and the Shah sold us out to the US.’” Intelligence agencies weaponize these grievances, pairing them with training, technological augmentation, and covert support.
Geopolitically, the stakes are immense. The Shah’s defensive-offensive doctrine projected Iranian influence outward to neutralize threats. Today, the logic is inverted: the same networks used to contain Iraq are being readied to contain Iran. A technologically augmented Kurdish insurgency, covertly backed, could achieve in months what decades of sanctions, diplomacy, or repression have failed to accomplish.
The operation will be asymmetric, high-tech, and dispersed. UAVs, quantum-enhanced surveillance, encrypted communications, and AI-directed logistics will dominate. Conventional Iranian forces are vulnerable to this type of warfare. As Pejman reflected decades ago, “Our Army was fighting there, rather than the Kurds who were harshly defeated… How could we keep such a place?” Today, the challenge is magnified by intelligence superiority on the insurgents’ side.
This is not a temporary flare-up. The CIA and its allies are constructing a generational network of influence. Experience from Iraq, Syria, and Lebanon proves these networks endure once operationalised. The Shah recognized this: “Iran’s non-state foreign policy under the Shah’s reign left a lasting legacy for the post-Revolution era.” Today, those instruments are being remade as vectors of foreign influence inside Iran.
The future is stark. Iran faces not simply external threats, but a carefully engineered insurgency exploiting historical grievances, technological superiority, and precise intelligence. The Kurds are central. History, technology, and geopolitical calculation converge to create a transformative threat. Tehran’s miscalculations, betrayals, and suppressed grievances now form the lattice for this insurgency. The Kurds are positioned not just as an ethnic minority, but as a vector of international strategy—Tehran may be powerless to stop it.
Iran’s containment strategies have been weaponized, fused with technology, and inverted against it. The ghosts of Barzani’s Peshmerga, the shadows of Algiers, and the Shah’s strategic vision now converge with Ghost Murmur, drones, and AI. Tehran faces a paradox: the instruments it once controlled are now calibrated to undermine its authority. The next Kurdish revolt will not only fight in the mountains but in the electromagnetic shadows where intelligence operates, consequences are lethal, and visibility is scarce.
by Nilantha Ilangamuwa
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