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Towards solving the current crisis in Sri Lanka

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by The Association of Sri Lanka Academics in Japan (SLAcJ)

Sri Lanka is now facing an unprecedented crisis, with island-wide protests going on continuously for several days now. On 12th April, the Central Bank decided to default on debt servicing. Immediate actions are necessary to resolve the political and socio-economic crises, including aggravating social unrest and severe damage to the livelihood and well-being of all corners of society. Parliament members, opposition political parties, many individuals, and civil society recommend many options. So far, none of them are accepted by the country’s political authority.

With great sorrow, dismay, and anger, we, the Sri Lankan Academics in Japan, watch the current state of hardships Sri Lankans are undergoing. It is unfortunate to see how our beloved country has come to this state.

Japan has built a prosperous and peaceful society where people are free from wants and fear of persecution and violence. The vulnerable are protected, and opportunities are made available for all citizens to fulfil their aspirations to their full potential. The foundation of this success is mainly due to the importance placed on public trust. Anyone in power, whether a political leader, a high-level government official, or an industrial leader, either resigns or is removed from power if responsible for committing an act of losing public trust. An independent, accountable bureaucracy appointed, based on merit, ensures the rights of the public and makes sure that the government functions according to regulations, even when there is political instability. Separation of the powers of the legislature, executive and the judiciary has been sacrosanct and this has ensured checks and balances against excesses. Working for the well-being of the country and its citizens whilst respecting the institutions of a parliamentary democracy has enabled these three branches of government to build public trust in Japan. We believe Sri Lanka can learn much from this in overcoming the current crisis.

As a country, Sri Lanka is blessed with natural resources and a work force second to none, if given a chance. All around the world, Sri Lankans have risen to very high levels in Academia and Industries, yet opportunities are not available, and industries are not fostered in our home country. There is a blatant disregard for public trust and the public voice since the public has been made powerless by weakening governance and politicization of critical institutions. The current protests in Sri Lanka are a timely action to restructure, reform, and balance the three pillars of the political economy – the state, markets, and civil society. Expressing the citizens’ genuine grievances, concerns, and desires, is the only way one can save the country for future generations.

To come out of our current predicament, some of the actions we see that need to be taken, though not exhaustive, are as follows:

1. Immediate actions

a. The citizens have lost their trust in the government and respecting citizens’ will, President, Prime Minister, and their family members must apologize to the nation and immediately resign from their political positions. Parliament should select through confidential voting two potential candidates outside the ruling parties for the future President and Prime Minister.

b. Appoint an interim Cabinet of ministers of not more than 15 who are skilled, acceptable to the people, and responsible to the Parliament and the people. Some members can be elected from current parliamentarians through confidential voting, while new members can be selected from the national list. The current national list MPs should be replaced with skilled, responsible, qualified technocrats and administrators. Impose restrictions on corrupt individuals leaving the country. Depending on the interim Cabinet’s performance, they may continue until the next general election; otherwise, the government should hold a general election earlier at a suitable time.

c. The proposed interim government should introduce a new budget for the remainder of the year because the budget approved for 2022 is election-oriented rather than for stimulating economic and business promotion. The allocation of the government’s financial resources must be the responsibility of the Parliament.

d. Immediately appoint independent qualified technocrats (similar to the new Governor of CBSL) to critically important institutions, including the Department of Inland Revenue, Department of Customs, Ports Authority, Ceylon Electricity Board, and Ceylon Petroleum Corporation, Pharmaceutical Corporation, State Banks, and Gas Companies. Similar appointments must be made to non-profit State-Owned Enterprises (SOEs) to formulate policies and programmes which are socially acceptable, economically viable, and environmentally friendly.

e. Remove all privileges to elected members of Parliament and make sure that they are answerable to the law, similar to the practice of all other advanced democracies. The documentary on the lifestyle of the Japanese Prime Minister, widely viewed in Sri Lanka recently, is an excellent case in point. There is no justification to provide excessive benefits and privileges at public expense to parliamentarians who are expected to serve the people of the country.

f. Request the international community and Sri Lankan expatriates for possible cooperation through remittances, investments, and know-how (technical support). Reach out to friendly countries who have assisted us in the past. Attention must be paid to Japan, which has provided generous support to many important areas in Sri Lanka. Sri Lanka has finally gone to the IMF. We should also turn to Japan for help, where development assistance does not lead to “debt traps.” Similarly, we need to seek assistance from the World Bank, and ADB, where Japan plays an important role.

2. Policies under the interim Cabinet

a. Appoint independent technocrats/bureaucrats as secretaries to the ministries and independent career diplomates as heads of foreign missions. The power vested on ministers over the bureaucracy without proper control mechanisms by the 1978 (s52.2) constitution amendment should be removed immediately, and ensure that elected members of Parliament, as well as government officials, are accountable for the decisions they make and are subject to the laws and regulations of the land. Government officials must be independent and dedicated to the people and maintain professionalism in their duties.

b. Financial and non-financial assets of all the Members of Parliament, elected members of the Subnational Governments, Senior Government Officials, including Head of the Departments, Diplomatic Officials, Judges, Chairman of State-Owned Enterprises, Corporations, and Statutory Bodies, should be declared and audited before assuming duties and after, with appropriate time interval.

c. Formulate national policies for each ministry and establish a research and development division in the ministry to educate policy-makers and the other stakeholders on the best practices.

d. Based on the culture, oriental wisdom, resource endowment, policies of each ministry, and the best practices elsewhere, Sri Lanka should create a homegrown “Long-term Developmental Plan” with visions, missions, and values. These policies must be constructively debated, comprehensively evaluated, and approved by the political parties in the Parliament before making them as “national policies.” Once national policies are established, all political parties must continue the same guidelines to avoid frequent policy backsliding.

e. Sri Lanka is strategically located in the Indian Ocean. Who dominates the Indian Ocean may dominate the world economy in the 21st Century. Indo-Pacific geopolitics is changing drastically due to the confluence of three strategies: China’s Belt and Road Initiative (BRI), India’s Act East Policy, and the United States’ Rebalancing Asia. Japan’s articulation of its commitment to a Free and Open Indo Pacific is also relevant to Sri Lanka’s future growth and development strategy. By 2050, China, India, Indonesia, and Japan will be the first, third, fourth, and fifth most significant economies in the world, respectively. Sri Lanka needs stability in all aspects to deal with enormous powers who are interested in Indian Ocean domination. Therefore, Sri Lanka desperately needs to establish a national level independent council on Foreign Policy, Peace and Security Policy, and Economic Policy to formulate well-thought comprehensive policy packages and advise the government when and where it is most needed.

f. Bring necessary policies and constitutional changes to empower independent commissions established under the constitution council, finalise electoral demarcation, reform the election system, minimise the executive powers and functions of the President, and other governance-related issues before the next election. The objective of changes must be to ensure a true representative and participating democracy-friendly parliament, including women and youth and reflecting the diversity of our nation’s peoples.

g. Political parties must introduce internal democracy within the party, and their financing must be audited. Independent commissions are a must to safeguard the constitution so that the parliament members cannot arbitrarily amend it for their short-term benefits.

h. Empower the judiciary and state’s political and economic institutions and make them independent and “inclusive” rather than “extractive.” Introduce reforms to outdated laws, rules, and regulations relating to auditing, accounting, and public administration.

i. Sri Lanka introduced Social Market Economy (SME) in 2015. However, unlike in Germany, Sri Lanka has not gained the full potential of an SME. And the state should introduce “constitutive principle” and “regulatory principles” similar to German with view to ensure that the “free market” yields result near to its theoretical potential. The market is expected to be embedded in the legal and political systems of the country. Under SME, the safeguard of human dignity and citizens’ freedom is guaranteed. The constitutive principles of SME should ensure a competitive economic system. The complementary regulatory principles safeguard the human welfare aspect.

We members of the Association of Sri Lanka Academics in Japan (SLAcJ) stand with the citizens of Sri Lanka in the ongoing struggle to lay the foundation for good governance and economic development so that future generations will have a country they could be proud of, live in peace and harmony, and have the opportunity to pursue their dreams.

We conclude this appeal with an ancient Pali verse which explains sustainable development as follows: Devo vassatu kalena sassasampatti hotu ca phito bhavatu loko ca-raja bhavatu dhammiko. May the rains come on time! May there be bountiful harvest! May the world be contented! May the rulers be righteous!



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Opinion

Can a punishment-free child become a threat to Sri Lankan society?

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Children are the future of every nation, and the values they learn during childhood shape the society they will eventually lead. In Sri Lanka, where family traditions, respect for elders, and social responsibility have long been important cultural values, the way children are raised remains a topic of great interest. In recent years, many parents and educators have moved away from traditional forms of punishment and embraced more child-friendly approaches to discipline. While protecting children from physical and emotional harm is essential, an important question arises: can a child who grows up without any form of punishment or consequences become a threat to Sri Lankan society?

To answer this question, it is necessary to understand the difference between punishment and discipline. Punishment is often associated with penalties imposed for wrongdoing, while discipline refers to teaching children self-control, responsibility, and respect for rules. Modern child psychology generally discourages harsh physical punishment because it can cause fear, anxiety, and resentment. However, completely removing consequences for inappropriate behavior may create a different set of problems.

Sri Lankan society has traditionally emphasized discipline within the family. Parents, grandparents, and teachers have often played active roles in guiding children’s behavior. Respect for elders, obedience, and good manners have been considered important virtues. While some traditional disciplinary methods may no longer be acceptable, the underlying principle of teaching accountability remains relevant.

A child who never faces consequences for wrongdoing may struggle to understand the boundaries that exist in society. For example, if a child is allowed to insult others, damage property, or ignore rules without correction, they may develop the belief that their actions have no consequences. Such attitudes can become problematic when the child enters school, the workplace, or the wider community.

Sri Lankan schools already face challenges related to student discipline. Teachers often report difficulties in managing classrooms where some students refuse to follow instructions or respect school regulations. When children are not taught accountability at home, educational institutions may find it harder to maintain a productive learning environment. This can affect not only the individual student but also classmates whose education is disrupted.

Another concern is the development of entitlement. A child who is never told “no” may come to believe that personal desires should always be fulfilled. In a society where cooperation and mutual respect are essential, such attitudes can lead to conflicts with peers, teachers, employers, and even family members. Sri Lanka’s social fabric depends heavily on community relationships, and individuals who fail to respect others can weaken these bonds.

The influence of social media and modern technology has added another dimension to this issue. Today’s children have access to information and entertainment on an unprecedented scale. Without proper guidance and consequences, some may misuse technology, engage in cyberbullying, spread misinformation, or develop unhealthy habits. Parents who avoid setting limits may unintentionally expose children to risks that affect both personal development and social well-being.

The workplace offers another example of why accountability is important. Sri Lanka’s economic development depends on a workforce that is disciplined, responsible, and capable of working with others. Employers value punctuality, respect, and professionalism. Individuals who grow up without learning responsibility may find it difficult to meet these expectations, affecting both their personal success and the productivity of organizations.

However, it is equally important not to interpret this argument as support for harsh punishment. Research has shown that excessive physical or emotional punishment can have serious negative effects on children. Fear-based parenting may produce obedience in the short term but can damage confidence, trust, and mental health in the long term. Therefore, the solution is not stricter punishment but more effective discipline.

Positive discipline provides a balanced alternative. It involves setting clear rules, explaining expectations, and applying fair consequences when those rules are broken. For instance, if a child neglects schoolwork, they may lose certain privileges until responsibilities are fulfilled. If they damage property, they can be required to help repair or replace it. Such consequences teach accountability while preserving the child’s dignity.

Sri Lankan parents, teachers, and community leaders all have a role to play in nurturing responsible citizens. Families should create environments where children feel loved and supported but also understand that actions have consequences. Schools should encourage character development alongside academic achievement. Religious and community organizations can reinforce values such as honesty, compassion, and respect for others.

A balanced approach is especially important in a rapidly changing society. As Sri Lanka continues to modernize and integrate with the global community, young people must learn not only their rights but also their responsibilities. Freedom without responsibility can lead to selfishness, while discipline without compassion can lead to fear. The challenge is to find the middle ground.

A punishment-free child can become a concern for Sri Lankan society if the absence of punishment also means the absence of discipline and accountability. Children who never learn consequences may struggle to respect rules, authority, and the rights of others. However, harsh punishment is not the answer. The most effective approach combines love, guidance, clear boundaries, and fair consequences. By raising children who understand both freedom and responsibility, Sri Lanka can build a future generation that strengthens society rather than threatens it.

Saumya Aloysius

(An essayist, children’s writer and freelance writer who holds a Master’s Degree in Sociology from the University of Kelaniya)

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Opinion

SriLankan Airbus struck by lightning

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A representational image

On Friday 12 June, 2026, a SriLankan Airlines Airbus 330 was en route from Colombo to Sydney, Australia was about 45 minutes into its flight when a loud bang was heard, accompanied by a blinding flash. In what was assumed to be a lightning strike, the airplane’s left (No. 1) engine was damaged, forcing the aircraft to return to BIA-Katunayake, where it landed safely.

Lightning travels from cloud to cloud or cloud to ground. Because the aircraft is not electrically ‘grounded’, or ‘earthed’, it must have been in the path of the thunder bolt purely by chance. There is also a phenomenon whereby the aircraft may travel through an electrically charged atmosphere (for example a cloud) where an electrical charge could build up and strike, or be emitted, as lightning. In such an instance, pilots hear electrical static in their headsets before the strike. Usually, when lightning strikes an aircraft in flight, the electrical charges remain on the outside, as on a ‘Faraday’s Cage’ apparatus, and the passengers and crew are perfectly safe.

To help the efficient and safe discharge of static electricity from the airplane’s structure, static wicks, or static dischargers, are fitted at the trailing (rearmost) edges of the wings and tail surfaces. When an airplane has landed after a lightning strike, ground engineers count the number of wicks that may have been burnt out to ensure that a minimum (recommended) number is available for a subsequent flight. Sometimes, there is minor damage, like pitting of the paintwork at the points where the charges left the aircraft.

The last instance in the USA of an airplane believed to have been lost due to a lightning strike was on December 8, 1963, when a Pan Am Boeing 707-121, en route from Baltimore, Maryland to Philadelphia, Pennsylvania, suffered a fuel tank explosion, later determined to have been the result of a lightning strike. Since then, aircraft have been rendered immune from lightning damage thanks to extensive research conducted by manufacturers using high-voltage currents.

Interestingly, modern airliners have electronic instrument displays which don’t even flicker when the aircraft is struck by lightning. By a process of connecting all the metallic parts, known as ‘bonding’, the entire fuselage effectively becomes a protective cocoon, so electrical charges caused by lightning will always reside on the outside of the aircraft.

What is unusual in the recent SriLankan Airlines incident is the extent of damage to the left engine. Did it encounter hail or ingest something?

Only a thorough, independent inquiry by aviation safety investigators will reveal the cause.

GUWAN SEEYA

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Opinion

Beyond diagnosis: A strategic design for 7% growth by 2029 (Part I)

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“Vision without execution is hallucination.” – Thomas Edison

Introduction: Stabilisation Is Not Transformation

Sri Lanka has come a long way since the economic collapse of 2022. Inflation has been brought under control. Foreign reserves have improved. Debt restructuring has advanced. Government revenue has increased significantly through taxation reforms. The exchange rate has stabilised, and confidence has gradually returned to financial markets.

These achievements deserve recognition.

However, stabilisation should not be confused with economic transformation. A patient discharged from intensive care is not necessarily healthy. Likewise, an economy that has escaped collapse has not necessarily achieved sustainable prosperity.

The central economic question facing Sri Lanka today is no longer how to avoid another crisis. Rather, it is how to achieve sustained economic growth of at least 7% per annum by 2029.

Unfortunately, much of the current policy debate remains trapped in economic diagnosis. Policymakers, economists, and commentators repeatedly identify familiar problems: (i) low productivity, (ii) weak exports, i(iii) Inadequate innovation, (iv) poor competitiveness, and (v) insufficient investment. While these diagnoses are correct, they are not new.

Sri Lanka now needs economic engineering.

The country requires a clear, measurable, and actionable National Growth Strategy for 2026-2029 that identifies (i) where growth will come from,(ii) what investments are required,(iii) which institutions will lead implementation, and (iv) how success will be measured.

The difference between diagnosis and engineering is the difference between describing a problem and solving it.

The Missing National Growth Target

One of the most striking weaknesses in Sri Lanka’s economic discourse is the absence of a publicly articulated growth target supported by a detailed implementation framework.

Successful economies establish measurable objectives.

Sri Lanka should adopt the following growth trajectory:

2026 – 4%

2027 – 5%

2028 – 6%

2029 – 7%

Such targets would provide direction to investors, public institutions, universities, exporters, and development partners. Without a destination, even the best policies risk becoming disconnected initiatives.

Today, many policy interventions appear fragmented—valuable in isolation but lacking integration into a broader national growth framework.

Growth Will Not Come From Consumption

For decades Sri Lanka relied heavily on consumption, imports, remittances, tourism, and external borrowing.

That model has reached its limits.

No country has achieved sustained prosperity through consumption-led growth alone.

The countries that transformed themselves—Singapore, South Korea, Ireland, Vietnam, and China—generated growth through productive investment, exports, industrialisation, and integration into global markets.

Sri Lanka’s future growth must therefore be driven by investment and exports rather than domestic consumption.

The challenge is not increasing spending but increasing productive capacity.

Export-Led Growth: The First Pillar of Transformation

Every successful Asian growth story has one characteristic in common: exports.

Exports generate foreign exchange, create jobs, attract investment, encourage innovation, and improve productivity.

Sri Lanka should establish an ambitious target of doubling export earnings within the next decade.

This requires moving beyond traditional exports and expanding into:

High-value agriculture

Food processing

Information technology services

Logistics services

Advanced manufacturing

Professional services

Export growth must become a national mission comparable to post-war reconstruction efforts seen elsewhere in Asia.

Without a major expansion of exports, sustained 7% growth will remain elusive.

Manufacturing: The Forgotten Growth Engine

Manufacturing remains the single most important source of rapid economic transformation worldwide. Vietnam provides perhaps the best recent example.

Through (i) industrial zones, (ii) trade agreements, (iii) infrastructure development, and (iv) targeted investment attraction, Vietnam became deeply integrated into Asian production networks.

Sri Lanka possesses strategic advantages:

A prime Indian Ocean location

Strong port infrastructure

Educated labour force

Proximity to India

The country should establish specialised manufacturing clusters focusing on:

Electronics assembly

Medical devices

Processed food products

Boat building

Rubber-based products

Engineering components

Rather than attempting to compete with every country, Sri Lanka should specialise in selected niches where competitive advantages can be developed.

RCEP: The Strategic Door to Asia

Sri Lanka’s future lies increasingly in Asia.

The Regional Comprehensive Economic Partnership (RCEP) represents the largest trading bloc in the world and includes many of the fastest-growing economies.

Membership or closer integration with RCEP supply chains could provide Sri Lankan exporters with access to markets, investment, technology, and production networks that are currently beyond reach.

Unfortunately, discussion on RCEP remains limited compared with its strategic significance.

A dedicated national roadmap for RCEP engagement should become a top economic priority.

The question is not whether Sri Lanka can afford to integrate more deeply into Asia.

The question is whether Sri Lanka can afford not to.

Knowledge Economy: Turning Universities Into Growth Institutions

Sri Lanka’s universities produce thousands of graduates annually, yet their contribution to commercial innovation remains limited.

Globally, universities have become engines of economic development.

Research institutions should not merely produce graduates; they should produce patents, technologies, startups, and commercial solutions.

A national innovation framework should:

Link universities with industry

Encourage commercialisation of research

Support technology transfer

Expand startup financing

Reward innovation and entrepreneurship

Knowledge must become an economic asset rather than an academic exercise.

Dairy, Agriculture, And Import Substitution

Export growth alone is insufficient.

Sri Lanka must also reduce unnecessary import dependence.

The dairy sector offers a compelling example.

For decades, billions of rupees have left the country through dairy imports despite favourable climatic conditions and substantial agricultural potential.

A comprehensive dairy development strategy should focus on:

Improved genetics

Feed production

Commercial farming

Processing investment

Farmer productivity

The objective should be import substitution combined with rural income growth.

The same principle can be applied selectively to other sectors where domestic production is economically viable.

Creating A National Investment Targeting Agency

Sri Lanka does not need another bureaucracy.

It needs a professional institution dedicated exclusively to investment targeting.

Instead of passively waiting for investors, this agency would actively identify and attract strategic investments aligned with national priorities.

Its mandate would include:

Identifying priority sectors

Marketing opportunities globally

Coordinating approvals

Monitoring outcomes

Facilitating technology transfer

Singapore’s Economic Development Board and Ireland’s Industrial Development Agency demonstrate how targeted investment institutions can transform national economies.

Sri Lanka requires a similar mechanism adapted to local realities.

From Economic Diagnosis To Economic Engineering

The next stage of Sri Lanka’s recovery requires a fundamental shift in thinking.

The policy debate must move beyond identifying problems. The country already knows its problems.The challenge is implementation.Every policy proposal should be evaluated against a simple question:

Will this contribute to achieving 7% growth by 2029?

If the answer is no, resources should be redirected.

Economic engineering requires focus, prioritisation, accountability, and measurable outcomes. The era of fragmented initiatives must give way to a coherent national growth strategy.

Summary

Sri Lanka has achieved significant macroeconomic stabilisation, but stabilisation is only the first step toward sustainable prosperity.

To move from recovery to transformation, Sri Lanka should adopt a National Growth Strategy for 2026-2029 built around five pillars:

Export-led growth

Investment-led growth

Manufacturing expansion

Knowledge-economy development

Regional integration through RCEP and Asian supply chains

Supporting sectors such as dairy, tourism, logistics, and information technology should be strategically developed within this framework.

Most importantly, investment must be targeted rather than scattered, supported by specialised institutions and measurable performance indicators.

Conclusion

History demonstrates that no nation has become prosperous by accident. Economic success is rarely the product of isolated policies or short-term political initiatives. It is the outcome of a deliberate strategy pursued consistently over many years.

Sri Lanka stands at a crossroads.

One path leads to modest growth, periodic crises, recurring debt challenges, and continued vulnerability. The other leads to transformation through investment, exports, innovation, manufacturing, and regional integration.

The choice is ultimately strategic.

The time has come for Sri Lanka to move from economic diagnosis to economic engineering.

The future will not be determined by how successfully the country stabilised after the crisis. It will be determined by how effectively it builds the foundations for sustained growth thereafter. If Sri Lanka can articulate and execute a coherent investment-led growth strategy today, achieving 7% growth by 2029 need not be an aspiration.

It can become a national objective—and a national achievement, economic Engineering

The writer, among many, served as the Special Advisor to the Office of the President of Namibia from 2006 to 2012 and was a Senior Consultant with the UNDP for 20 years. He was a Senior Economist with the Central Bank of Sri Lanka (1972-1993). He can be reached via asoka.seneviratne@gmail.com

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