Features
Uncertain Sino-US relations in the Biden Era
by Kumar David
A US State Department release said on 12 May 2021: “Strategic competition is the frame through which we view our relationship with the PRC. We will address it from a position of strength in which we work with our allies to defend our interests and values. We will advance our economic interests, counter Beijing’s aggressive and coercive actions, sustain key military advantages and vital security partnerships, re-engage robustly in the UN system, and stand up when China violates human and fundamental freedoms. When it is in our interest, we will conduct results-oriented diplomacy with China on shared challenges such as climate change and global public health”; (abbreviated).
So, America will strengthen its economic and strategic position and place emphasis on human rights but also collaborate on common interests such as climate change. It’s different from the Trump Era more in posture and signals than in words. Trade sanctions are off the table or will be used infrequently, belligerence is no longer in vogue and there is a well-articulated shift to concern with human-rights, a term Trump treated with derision. You will hear more about Xinjiang than trade deficits in the Bidden years.
Donald Trump was an aberration, a malignant abnormality and a dangerous one. Dangerous because political conditions in the US are scary, to say the least because the ultra-right, white-supremacists and primeval cultures, in a word the zeitgeist of potentially fascist-like threats consume the country. The information released last month by the Defence and Justice Departments that Trump was on the verge of attempting a coup after his election defeat shows how close America came to civil war. To give readers a rough measure I would stick my neck out and say that a quarter to a third of all Americans are Neanderthal in outlook; but it’s very uneven across states. To best see primitives look in states with the most anti-vaccination populace. The seven Jim Crow states are the pits – Mississippi, Louisiana, Alabama, Arkansas, Tennessee, West Virginia and South Carolina. I needed to sound this warning about America’s rumbustious unevenness as opposed China’s dull uniformity and superficial linearity before moving on.
The remainder of this article will focus on a five-game match; (1) BRI (Belt and Road Initiative) vs B3W (Build Back Better World G7 initiative), (2) Digital Yuan or DY, (3) competing corporate governance models, (4) cyber-espionage and (5) human rights. The BRI vs B3W battle will be a walkover for China. BRI has had a head start of over a decade, has commitments in hard cash and is a state-to-state undertaking between China and about 50 countries. The Americans and G7 partners hope the private sector will join as a big stakeholder to catalyse hundreds of billions of dollars in infrastructure investment in low- and middle-income countries. A senior official gambled: “We believe we will beat the BRI by offering a higher-quality choice and we’ll offer that choice with self-confidence about our model that reflects our shared values.” The shared values the West envisions are free-markets, commitment to democracy and respect for human rights. Wake up Joe from visions of honeymooning with dictators and goons! The Chinese have a better cruder measure of the likes of the (Raja)Paksas; they will win the first-set of the BRI vs B3W match 6-0.
The second set will be harder fought. Beijing makes BRI investments and grants loans to countries that cautious investors will not touch with a bargepole. It is hard to quantify the BRI investment quantum since a part is Central Government loans, much investment by Chinese SOEs and maybe a fifth of the total costs are carried in cash or kind (land, labour) by recipient countries. In the final analysis total BRI investment from all sources may be in the $3 trillion to $4 trillion range. Handouts to bankrupt or brain-dead regimes (Lanka exemplifies both disorders) are used to gain political mileage or acquire assets when non-creditworthy projects go belly-up as with no-ships Hambantota Harbour, no-fly Mattala and no-games Hambantota stadium. I do not need to amplify that many recipient countries are sinking ever deeper into the mire of debt (for no fault of Beijing you may say if you are tough), and crucially, will never escape from debt. They will pawn or give away national assets for 99-years. The criticism of perpetual indebtedness to China is gaining ground, nevertheless China will still win the second-set of the BRI vs. B3W game largely because many third world political leaders are scoundrels.

The internationalisation of the DY, game (2), is unstoppable and desirable. It is important to distinguish between China’s Digital Yuan and bitcoin and other crypto-currencies. China is expanding domestic and international digital transactions through the central bank (People’s Bank of China); DY is supported by block-chain technology making it tamper-proof and it is issued by a central bank as a national currency. As it gains acceptance it will become an international alongside the Dollar, Euro and Yen but with technical differences. The motives for internationalising the Yuan are countering US dollar dominance of global finance and curbing the clout of China’s own “fintech” giants like Ant Group and Tencent. The hegemony of the US dollar is anchored in the petrodollar. In 1971 when stagflation prompted a run on the dollar and it plummeted; other countries wanted to redeem their dollars for gold, but to protect US gold reserves Nixon removed it from the gold standard where it was convertible to gold at a fixed rate of $35 per ounce. Currently the gold price is about $1800 per ounce.
In 1973 when the US provided military aid to Israel for the Yom Kippur War OPEC was outraged and raised oil prices. But in 1979 the US and Saudi Arabia agreed to use dollars for oil contracts and recycle dollars back to America through contracts with US companies. The petrodollar, an arrangement by which oil is globally priced in dollars was born. Everybody including Iran, Russia and China are caught in this trap. The petrodollar is the mechanism by which the US dominates global finance and enforces its foreign policy. Sometime this decade the US economy will fall behind China’s in size. It is not possible for the currency of Number Two to indefinitely remain the global monetary hegemon. It is going to be a complicated and drawn out process and there is no sign of an immediate collapse of dollar global hegemony though DY will join the select club of global currencies.
China is the place with entrepreneurs and computer wizards were “mining” 65% of the world’s new digital currencies (bitcoins for short). The authorities have suddenly imposed a harsh crackdown allegedly for a vast overconsumption of electricity but more likely for two other reasons as well; to impose tighter control on a part of the economy that was running out of view of the central authorities and second to protect the launch of DY by providing it with a more monopoly-like status in the Chinese digital currency domain.
The distinction between the state-directed or guided capitalist sector and free-market capitalism needs no elaboration. Experience supports the view that in developing countries the former has invariably been more successful in encouraging growth and improving mass standards of living. My comment here is about something quite recent – the state is muscling in on private companies. E-marketing and ‘fintech’ (finance-technology) giants like Alibaba, Ant-Group and ride-hailing (Uber like) companies like Didi are being tethered and put under much tighter control. Listing in foreign markets (New York and Hong Kong), tighter scrutiny of corporate data, are desired and illegal collection and use of personal data has been alleged. The truth in my view is that it is a two pronged strategy; the regime’s obsession with political monopoly-control and an enhanced anti-trust policy intervention. At this time when anti-trust policies are falling by the wayside in America the latter this is a good forward step.
Item (4) is a long and ongoing controversy. The US accuses China of state-sponsored cyber hacking led or encouraged by the Ministry of State Security. Direct state espionage is allegedly for military and research secrets and stealing economic know-how. Allegations of encouraging felons to engage in ransomware attacks seems far fetched and military espionage obviously is a thriving two-way game. The world of espionage and counter-espionage is more spooky than an elaborate spy novel. It is shrouded in darkness but gathers everything, spies on everyone, violates every norm of privacy and decency. We can safely assume that the network of agencies that proliferate in both sides are into it to the hilt of their technical abilities.
The game China will lose hands down is game (5), human rights; alleged forced labour and political oppression of the Uyghurs of Xinjiang Province. Humanitarian groups assert that Beijing has transferred Uyghurs elsewhere and forced them to work under harsh conditions in factories across the country. I have travelled a bit in China and believe that Islam is repressed and it is apparent Uyghurs are sullen and angry but I have not seen evidence that they are transported to “labour camps” in other provinces. The Chinese CP is ideologically totalitarian: “Total” in the sense that it will not share space and air with other ideologies (Falun Gong, the Christian Churches, competing political views or ‘heretical’ Marxist interpretations). This is because it is insecure and alarmed by competition in “belief space”. My Hong Kong friends hedge their bets on whether the Uyghurs are more sullen about oppression or more pleased by improving economic conditions.
A more interesting rationale for Western criticism may lie elsewhere. These factories are in the supply chains of many global brands. “We believe these practices are an affront to human dignity and an egregious example of China’s unfair, economic competition” Western critics say. A Uyghur Forced Labour Prevention bill is pending in the U.S. House of Representatives. The legislation requires disclosures from businesses about engagement with Chinese companies engaged in human rights abuses in Xinjiang. The meat of the matter may be more to do with commercial competition than love of human rights. Nevertheless the first few decades of the Twenty-first Century are panning out as the decades of human-rights and the Chinese are engaging in a match that they will eventually lose 0-6.
Tracking the evolution of Sino-American developments is best done along the five dimensions I have selected for this essay plus a few others. However, the context in which medium-term Sino-American can be better appreciated is Biden’s economic strategy which Republicans are attempting to scuttle at any cost because its success on even a modest scale will bury Trump and the GOP for a generation. Biden’s methodology is to repeat FDR’s New Deal strategy mutatis mutandis. Infrastructure building on a multi-trillion dollar scale, large universal cash handouts, enhanced unemployment support and an eviction moratorium for delays in rent payment are intended to ease conditions for the poorer half of society and at the same time create demand to spur the economy. The jury is still out on effectiveness but time is on Biden’s side.
Features
Rebuilding the country requires consultation
A positive feature of the government that is emerging is its responsiveness to public opinion. The manner in which it has been responding to the furore over the Grade 6 English Reader, in which a weblink to a gay dating site was inserted, has been constructive. Government leaders have taken pains to explain the mishap and reassure everyone concerned that it was not meant to be there and would be removed. They have been meeting religious prelates, educationists and community leaders. In a context where public trust in institutions has been badly eroded over many years, such responsiveness matters. It signals that the government sees itself as accountable to society, including to parents, teachers, and those concerned about the values transmitted through the school system.
This incident also appears to have strengthened unity within the government. The attempt by some opposition politicians and gender misogynists to pin responsibility for this lapse on Prime Minister Dr Harini Amarasuriya, who is also the Minister of Education, has prompted other senior members of the government to come to her defence. This is contrary to speculation that the powerful JVP component of the government is unhappy with the prime minister. More importantly, it demonstrates an understanding within the government that individual ministers should not be scapegoated for systemic shortcomings. Effective governance depends on collective responsibility and solidarity within the leadership, especially during moments of public controversy.
The continuing important role of the prime minister in the government is evident in her meetings with international dignitaries and also in addressing the general public. Last week she chaired the inaugural meeting of the Presidential Task Force to Rebuild Sri Lanka in the aftermath of Cyclone Ditwah. The composition of the task force once again reflects the responsiveness of the government to public opinion. Unlike previous mechanisms set up by governments, which were either all male or without ethnic minority representation, this one includes both, and also includes civil society representation. Decision-making bodies in which there is diversity are more likely to command public legitimacy.
Task Force
The Presidential Task Force to Rebuild Sri Lanka overlooks eight committees to manage different aspects of the recovery, each headed by a sector minister. These committees will focus on Needs Assessment, Restoration of Public Infrastructure, Housing, Local Economies and Livelihoods, Social Infrastructure, Finance and Funding, Data and Information Systems, and Public Communication. This structure appears comprehensive and well designed. However, experience from post-disaster reconstruction in countries such as Indonesia and Sri Lanka after the 2004 tsunami suggests that institutional design alone does not guarantee success. What matters equally is how far these committees engage with those on the ground and remain open to feedback that may complicate, slow down, or even challenge initial plans.
An option that the task force might wish to consider is to develop a linkage with civil society groups with expertise in the areas that the task force is expected to work. The CSO Collective for Emergency Relief has set up several committees that could be linked to the committees supervised by the task force. Such linkages would not weaken the government’s authority but strengthen it by grounding policy in lived realities. Recent findings emphasise the idea of “co-production”, where state and society jointly shape solutions in which sustainable outcomes often emerge when communities are treated not as passive beneficiaries but as partners in problem-solving.
Cyclone Ditwah destroyed more than physical infrastructure. It also destroyed communities. Some were swallowed by landslides and floods, while many others will need to be moved from their homes as they live in areas vulnerable to future disasters. The trauma of displacement is not merely material but social and psychological. Moving communities to new locations requires careful planning. It is not simply a matter of providing people with houses. They need to be relocated to locations and in a manner that permits communities to live together and to have livelihoods. This will require consultation with those who are displaced. Post-disaster evaluations have acknowledged that relocation schemes imposed without community consent often fail, leading to abandonment of new settlements or the emergence of new forms of marginalisation. Even today, abandoned tsunami housing is to be seen in various places that were affected by the 2004 tsunami.
Malaiyaha Tamils
The large-scale reconstruction that needs to take place in parts of the country most severely affected by Cyclone Ditwah also brings an opportunity to deal with the special problems of the Malaiyaha Tamil population. These are people of recent Indian origin who were unjustly treated at the time of Independence and denied rights of citizenship such as land ownership and the vote. This has been a festering problem and a blot on the conscience of the country. The need to resettle people living in those parts of the hill country which are vulnerable to landslides is an opportunity to do justice by the Malaiyaha Tamil community. Technocratic solutions such as high-rise apartments or English-style townhouses that have or are being contemplated may be cost-effective, but may also be culturally inappropriate and socially disruptive. The task is not simply to build houses but to rebuild communities.
The resettlement of people who have lost their homes and communities requires consultation with them. In the same manner, the education reform programme, of which the textbook controversy is only a small part, too needs to be discussed with concerned stakeholders including school teachers and university faculty. Opening up for discussion does not mean giving up one’s own position or values. Rather, it means recognising that better solutions emerge when different perspectives are heard and negotiated. Consultation takes time and can be frustrating, particularly in contexts of crisis where pressure for quick results is intense. However, solutions developed with stakeholder participation are more resilient and less costly in the long run.
Rebuilding after Cyclone Ditwah, addressing historical injustices faced by the Malaiyaha Tamil community, advancing education reform, changing the electoral system to hold provincial elections without further delay and other challenges facing the government, including national reconciliation, all require dialogue across differences and patience with disagreement. Opening up for discussion is not to give up on one’s own position or values, but to listen, to learn, and to arrive at solutions that have wider acceptance. Consultation needs to be treated as an investment in sustainability and legitimacy and not as an obstacle to rapid decisionmaking. Addressing the problems together, especially engagement with affected parties and those who work with them, offers the best chance of rebuilding not only physical infrastructure but also trust between the government and people in the year ahead.
by Jehan Perera
Features
PSTA: Terrorism without terror continues
When the government appointed a committee, led by Rienzie Arsekularatne, Senior President’s Counsel, to draft a new law to replace the Prevention of Terrorism Act (PTA), as promised by the ruling NPP, the writer, in an article published in this journal in July 2025, expressed optimism that, given Arsekularatne’s experience in criminal justice, he would be able to address issues from the perspectives of the State, criminal justice, human rights, suspects, accused, activists, and victims. The draft Protection of the State from Terrorism Act (PSTA), produced by the Committee, has been sharply criticised by individuals and organisations who expected a better outcome that aligns with modern criminal justice and human rights principles.
This article is limited to a discussion of the definition of terrorism. As the writer explained previously, the dangers of an overly broad definition go beyond conviction and increased punishment. Special laws on terrorism allow deviations from standard laws in areas such as preventive detention, arrest, administrative detention, restrictions on judicial decisions regarding bail, lengthy pre-trial detention, the use of confessions, superadded punishments, such as confiscation of property and cancellation of professional licences, banning organisations, and restrictions on publications, among others. The misuse of such laws is not uncommon. Drastic legislation, such as the PTA and emergency regulations, although intended to be used to curb intense violence and deal with emergencies, has been exploited to suppress political opposition.
International Standards
The writer’s basic premise is that, for an act to come within the definition of terrorism, it must either involve “terror” or a “state of intense or overwhelming fear” or be committed to achieve an objective of an individual or organisation that uses “terror” or a “state of intense or overwhelming fear” to realise its aims. The UN General Assembly has accepted that the threshold for a possible general offence of terrorism is the provocation of “a state of terror” (Resolution 60/43). The Parliamentary Assembly of the Council of Europe has taken a similar view, using the phrase “to create a climate of terror.”
In his 2023 report on the implementation of the UN Global Counter-Terrorism Strategy, the Secretary-General warned that vague and overly broad definitions of terrorism in domestic law, often lacking adequate safeguards, violate the principle of legality under international human rights law. He noted that such laws lead to heavy-handed, ineffective, and counterproductive counter-terrorism practices and are frequently misused to target civil society actors and human rights defenders by labelling them as terrorists to obstruct their work.
The United Nations Office on Drugs and Crime (UNODC) has stressed in its Handbook on Criminal Justice Responses to Terrorism that definitions of terrorist acts must use precise and unambiguous language, narrowly define punishable conduct and clearly distinguish it from non-punishable behaviour or offences subject to other penalties. The handbook was developed over several months by a team of international experts, including the writer, and was finalised at a workshop in Vienna.
Anti-Terrorism Bill, 2023
A five-member Bench of the Supreme Court that examined the Anti-Terrorism Bill, 2023, agreed with the petitioners that the definition of terrorism in the Bill was too broad and infringed Article 12(1) of the Constitution, and recommended that an exemption (“carve out”) similar to that used in New Zealand under which “the fact that a person engages in any protest, advocacy, or dissent, or engages in any strike, lockout, or other industrial action, is not, by itself, a sufficient basis for inferring that the person” committed the wrongful acts that would otherwise constitute terrorism.
While recognising the Court’s finding that the definition was too broad, the writer argued, in his previous article, that the political, administrative, and law enforcement cultures of the country concerned are crucial factors to consider. Countries such as New Zealand are well ahead of developing nations, where the risk of misuse is higher, and, therefore, definitions should be narrower, with broader and more precise exemptions. How such a “carve out” would play out in practice is uncertain.
In the Supreme Court, it was submitted that for an act to constitute an offence, under a special law on terrorism, there must be terror unleashed in the commission of the act, or it must be carried out in pursuance of the object of an organisation that uses terror to achieve its objectives. In general, only acts that aim at creating “terror” or a “state of intense or overwhelming fear” should come under the definition of terrorism. There can be terrorism-related acts without violence, for example, when a member of an extremist organisation remotely sabotages an electronic, automated or computerised system in pursuance of the organisation’s goal. But when the same act is committed by, say, a whizz-kid without such a connection, that would be illegal and should be punished, but not under a special law on terrorism. In its determination of the Bill, the Court did not address this submission.
PSTA Proposal
Proposed section 3(1) of the PSTA reads:
Any person who, intentionally or knowingly, commits any act which causes a consequence specified in subsection (2), for the purpose of-
(a) provoking a state of terror;
(b) intimidating the public or any section of the public;
(c) compelling the Government of Sri Lanka, or any other Government, or an international organisation, to do or to abstain from doing any act; or
(d) propagating war, or violating territorial integrity or infringing the sovereignty of Sri Lanka or any other sovereign country, commits the offence of terrorism.
The consequences listed in sub-section (2) include: death; hurt; hostage-taking; abduction or kidnapping; serious damage to any place of public use, any public property, any public or private transportation system or any infrastructure facility or environment; robbery, extortion or theft of public or private property; serious risk to the health and safety of the public or a section of the public; serious obstruction or damage to, or interference with, any electronic or automated or computerised system or network or cyber environment of domains assigned to, or websites registered with such domains assigned to Sri Lanka; destruction of, or serious damage to, religious or cultural property; serious obstruction or damage to, or interference with any electronic, analogue, digital or other wire-linked or wireless transmission system, including signal transmission and any other frequency-based transmission system; without lawful authority, importing, exporting, manufacturing, collecting, obtaining, supplying, trafficking, possessing or using firearms, offensive weapons, ammunition, explosives, articles or things used in the manufacture of explosives or combustible or corrosive substances and biological, chemical, electric, electronic or nuclear weapons, other nuclear explosive devices, nuclear material, radioactive substances, or radiation-emitting devices.
Under section 3(5), “any person who commits an act which constitutes an offence under the nine international treaties on terrorism, ratified by Sri Lanka, also commits the offence of terrorism.” No one would contest that.
The New Zealand “carve-out” is found in sub-section (4): “The fact that a person engages in any protest, advocacy or dissent or engages in any strike, lockout or other industrial action, is not by itself a sufficient basis for inferring that such person (a) commits or attempts, abets, conspires, or prepares to commit the act with the intention or knowledge specified in subsection (1); or (b) is intending to cause or knowingly causes an outcome specified in subsection (2).”
While the Arsekularatne Committee has proposed, including the New Zealand “carve out”, it has ignored a crucial qualification in section 5(2) of that country’s Terrorism Suppression Act, that for an act to be considered a terrorist act, it must be carried out for one or more purposes that are or include advancing “an ideological, political, or religious cause”, with the intention of either intimidating a population or coercing or forcing a government or an international organisation to do or abstain from doing any act.
When the Committee was appointed, the Human Rights Commission of Sri Lanka opined that any new offence with respect to “terrorism” should contain a specific and narrow definition of terrorism, such as the following: “Any person who by the use of force or violence unlawfully targets the civilian population or a segment of the civilian population with the intent to spread fear among such population or segment thereof in furtherance of a political, ideological, or religious cause commits the offence of terrorism”.
The writer submits that, rather than bringing in the requirement of “a political, ideological, or religious cause”, it would be prudent to qualify proposed section 3(1) by the requirement that only acts that aim at creating “terror” or a “state of intense or overwhelming fear” or are carried out to achieve a goal of an individual or organisation that employs “terror” or a “state of intense or overwhelming fear” to attain its objectives should come under the definition of terrorism. Such a threshold is recognised internationally; no “carve out” is then needed, and the concerns of the Human Rights Commission would also be addressed.
by Dr. Jayampathy Wickramaratne
President’s Counsel
Features
ROCK meets REGGAE 2026
We generally have in our midst the famous JAYASRI twins, Rohitha and Rohan, who are based in Austria but make it a point to entertain their fans in Sri Lanka on a regular basis.
Well, rock and reggae fans get ready for a major happening on 28th February (Oops, a special day where I’m concerned!) as the much-awaited ROCK meets REGGAE event booms into action at the Nelum Pokuna outdoor theatre.
It was seven years ago, in 2019, that the last ROCK meets REGGAE concert was held in Colombo, and then the Covid scene cropped up.

Chitral Somapala with BLACK MAJESTY
This year’s event will feature our rock star Chitral Somapala with the Australian Rock+Metal band BLACK MAJESTY, and the reggae twins Rohitha and Rohan Jayalath with the original JAYASRI – the full band, with seven members from Vienna, Austria.
According to Rohitha, the JAYASRI outfit is enthusiastically looking forward to entertaining music lovers here with their brand of music.
Their playlist for 28th February will consist of the songs they do at festivals in Europe, as well as originals, and also English and Sinhala hits, and selected covers.
Says Rohitha: “We have put up a great team, here in Sri Lanka, to give this event an international setting and maintain high standards, and this will be a great experience for our Sri Lankan music lovers … not only for Rock and Reggae fans. Yes, there will be some opening acts, and many surprises, as well.”

Rohitha, Chitral and Rohan: Big scene at ROCK meets REGGAE
Rohitha and Rohan also conveyed their love and festive blessings to everyone in Sri Lanka, stating “This Christmas was different as our country faced a catastrophic situation and, indeed, it’s a great time to help and share the real love of Jesus Christ by helping the poor, the needy and the homeless people. Let’s RISE UP as a great nation in 2026.”
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