Opinion
Victoria Nuland calls Chinese bluff on SL debt relief
By Harim Peiris
The United States, under-secretary of state for political affairs Victoria Nuland was visiting Sri Lanka last week and dominating her agenda with the government has been the core issue of restructuring the Sri Lankan government’s foreign debt, on which it has defaulted, which stands at the heart of our recovery from bankruptcy. Unusually plain speaking for a diplomat, under-secretary Nuland was blunt about the main factor obstructing the receipt of an IMF structural adjustment facility and that was the reluctance of the Chinese Government, through their state owned financial entities, to seriously explore the issue of a debt write down. Under Secretary Nuland stated that “What China has offered so far is not enough ….. We need to see credible and specific assurances that Chine will meet the IMF standard of debt relief”.
That credible standard of debt relief did not seem to be forthcoming from the Chinese. After months of being scarce in the process of debt renegotiation, the Chinese had finally made an offer that was at best completely underwhelming, namely a two-year moratorium on the repayment of debt. Compare that with what the Western aid donor countries, in the Paris Club were discussing about offering, which was a ten-year moratorium on debt repayment, including some debt write down. In the words of visiting Under Secretary Nuland, this commitment was very clear. “We, the United States, are prepared to do our part. Our Paris Club partners are prepared to do their part. India has made strong commitments that it will provide the credible assurances the IMF is looking for” she said.
Predictably the Chinese were quick to defend their not very generous offer as the epitome of reasonableness and were sharp in their rebuttal. Gone are the days when Chinese diplomats were known for bowing a lot and speaking softly. Now they come out swinging, as it were, at the slightest hint of criticism and accordingly the Chinese Foreign Ministry Spokesperson, Ms. Nao Ning responded saying “rather than jabbing fingers at China’s close cooperation with Sri Lanka, the US might as well show some sincerity and actually do something to help Sri Lanka weather through the current difficulties”. Conveniently perhaps forgetting that the US had for several years offered half a billion (five hundred million) dollars in grant (yes, a non-repayable) funding from the Millennium Challenge Cooperation (MCC) which the Rajapaksa Administration for reasons best known to itself, chose to turn down, giving a whole new meaning to the phrase, “looking a gift horse in the mouth” and then making the nation falling flat on our face.
The Chinese debt from the belt
and road initiative
Dealing with the Chinese debt is a serious challenge for Sri Lanka and an even bigger challenge for China. For Sri Lanka, it is currently the main sticking point in securing an IMF facility which would be the start of reversing the steep contraction (negative growth) of the Sri Lankan economy. For the Chinese, the issue of distress loans from its much vaunted belt and road program could not have come at a worse time. The Chinese economy has significantly slowed down and with it the Chinese face their own issues of the asset quality in their banking system. There is also now much more vocal criticism of the debt piled on the vulnerable economies of developing countries for the construction of projects of dubious utility and economic value at inflated prices. Sri Lanka has become a poster boy (case study) of corrupt and despotic local rulers (one of them chased out by a popular uprising) who indebted their countries to the point of bankruptcy. The issue becomes, how responsible is the lender for this fate of the borrower. Undoubtedly the Rajapaksas and their political cohorts in the SLPP should bear the responsibility for the decision to rake up expensive and extensive foreign debts. But rather like the classic tort law case studies of the liability for a drunk driving accident of a bar tender, who keeps plying his obviously intoxicated customer with ever more alcohol, knowing that the customer was a danger to himself and others, the Chinese showed at best a reckless disregard for the economic vulnerabilities of its borrowers, especially Rajapaksa led Sri Lanka or as its detractors claim, a cynical method of creating pliant client states.
The Chinese aspiration to being a global power requires China to deal with international issues and especially international global financial issues in a mainstream manner. China like even other great powers do not want to end up being isolated in their foreign affairs. Mostly due to some adroit work by some of Sri Lanka’s other friends, namely India and the Paris Club of creditor nations, the Chinese now find themselves in the unenviable position, where all others are ready for a very pragmatic and generous approach to debt restructuring, the very mention of it is unthinkable, a likely unviable long term position.
Coincidently, Sri Lanka’s international sovereign bond holders, through their lawyers White and Chase LLP also issued a statement and wrote to the IMF Managing Director, expressing their willingness to engage in good faith in debt negotiations. However, for them, the Paris Club and all other creditors, is the cardinal principal of equal treatment, that early movers who make concessions would not receive less favorable terms than the hold outs. So the real price of Chinese reluctance for serious debt renegotiations, is that it prevents even other creditors from doing so. The Wickremasinghe / Rajapaksa Administration has no answers to this dilemma and the other crucial requirements of economic reforms.
(The writer served as Advisor, Ministry of Foreign Affairs from 2016 to 2017)
Opinion
Mr. Lakshman Balasuriya – not just my boss, but a father and a brother
It is with profound sadness that we received the shocking news of the untimely passing of our dear leader, Mr. Lakshman Balasuriya.
I first met Mr. Balasuriya in 1988 while working at John Keells, which had been awarded an IT contract to computerize Senkadagala Finance. Thereafter, in 1992, I joined the E. W. Balasuriya Group of Companies and Senkadagala Finance when the organization decided to bring its computerization in-house.
Mr. Balasuriya obtained his BSc from the University of London and his MSc from the University of Lancaster. He was not only intellectually brilliant, but also a highly practical and pragmatic individual, often sitting beside me to share instructions and ideas, which I would then translate directly into the software through code.
My first major assignment was to computerize the printing press. At the time, the systems in place were outdated, and modernization was a challenging task. However, with the guidance, strong support, and decisive leadership of Mr. Lakshman Balasuriya, we were able to successfully transform the printing press into a modern, state-of-the-art operation.
Mr. Balasuriya was a farsighted visionary who understood the value and impact of information technology well ahead of his time. He possessed a deep knowledge of the subject, which was rare during those early years. For instance, in the 1990s, he engaged a Canadian consultant to conduct a cybersecurity audit—an extraordinary initiative at a time when cybersecurity was scarcely spoken of and far from mainstream.
During that period, Senkadagala Finance’s head office was based in Kandy, with no branch network. When the decision was made to open the first branch in Colombo, our IT team faced the challenge of adapting the software to support branch operations. It was Mr. Balasuriya who proposed the innovative idea of creating logical branches—a concept well ahead of its time in IT thinking. This simple yet powerful idea enabled the company to expand rapidly, allowing branches to be added seamlessly to the system. Today, after many upgrades and continuous modernization, Senkadagala Finance operates over 400 locations across the country with real-time online connectivity—a testament to his original vision.
In September 2013, we faced a critical challenge with a key system that required the development of an entirely new solution. A proof of concept was prepared and reviewed by Mr. Balasuriya, who gave the green light to proceed. During the development phase, he remained deeply involved, offering ideas, insights, and constructive feedback. Within just four months, the system was successfully developed and went live—another example of his hands-on leadership and unwavering support for innovation.
These are only a few examples among many of the IT initiatives that were encouraged, supported, and championed by Mr. Balasuriya. Information technology has played a pivotal role in the growth and success of the E. W. Balasuriya Group of Companies, including Senkadagala Finance PLC, and much of that credit belongs to his foresight, trust, and leadership.
On a deeply personal note, I was not only a witness to, but also a recipient of, the kindness, humility, and humanity of Mr. Lakshman Balasuriya. There were occasions when I lost my temper and made unreasonable demands, yet he always responded with firmness tempered by gentleness. He never lost his own composure, nor did he ever hold grudges. He had the rare ability to recognize people’s shortcomings and genuinely tried to guide them toward self-improvement.
He was not merely our boss. To many of us, he was like a father and a brother.
I will miss him immensely. His passing has left a void that can never be filled. Of all the people I have known in my life, Mr. Lakshman Balasuriya stands apart as one of the finest human beings.
He leaves his beloved wife, Madam Janine, his children Amanthi and Keshav, and his four grandchildren.
May he rest in eternal peace.
Timothy De Silva
(The writer is the Information Systems Officer at Senkadagala Finance.)
Opinion
Tribute to Ernest Thalayasingham MacIntyre
It is deeply painful to come to terms with the passing of Ernest Thalayasingham Macintyre. The news has left a silence that feels both personal and profound.
For me, this is not only the loss of an extraordinary playwright and thinker, but the loss of someone who shaped my intellectual journey at its very beginning. Ernest Macintyre wrote the Preface to my first book, Island to Island, which emerged from my doctoral research on his works, titled “Diasporic Longing and Changing Contours of Resistance in the plays of Ernest Thalayasingham Macintyre.” That gesture was not merely academic generosity. It was an act of faith, encouragement, and quiet mentorship that I will always hold close.
I knew him first through his work. Through his plays, his satire, his deep political consciousness, and his unwavering commitment to theatre as a living, breathing social force. He was a pioneer of Sri Lankan English theatre and an equally vital presence in Australian theatre, articulating the grief, longing, resistance, and resilience of diasporic life with rare clarity and compassion.
In recent days, I have found myself returning again and again to the Preface he wrote for my thesis. Reading it now, I am reminded of his intellectual sharpness, his generosity of spirit, and his belief that literature and theatre must bear witness to histories of displacement and struggle. His words continue to guide me, even in his absence.
Beyond the scholar and dramatist, Ernest Macintyre was, to me, a father figure. Someone I looked up to with deep respect, awe, and admiration. His presence offered reassurance. His encouragement gave courage. His legacy will remain a guiding light.
My heartfelt condolences to his family, to his loved ones, and to all those whose lives he touched through his work and his kindness. May they find strength in the immense legacy he leaves behind.
Ernest Macintyre’s voice will not fade. It will continue to live on in theatre, in literature, and in the countless minds he shaped across homelands and islands.
With remembrance, gratitude, and sorrow.
Dr Thamizhachi Thangapandian
Member of Parliament (Lok Sabha)- South Chennai
Tamil Nadu, INDIA
Opinion
Appreciation: D. L. O. Mendis Visionary Engineer, Philosopher, and Mentor
Today, we honour the life and legacy of D.L.O. Mendis, a visionary engineer and philosopher whose contributions defined the standards of our profession. D.L.O. possessed a rare combination of analytical rigor and creative foresight. His numerous technical papers presented here and abroad related to water resources development stand as enduring monuments to his brilliance.
Beyond creating blueprints and technical specifications, D.L.O. presented bold ideas that challenged and strengthened our professional communities. He was a dedicated mentor to junior engineers, and a leader who firmly believed that engineering was, above all, a service to humanity. While we mourn this great loss, we take solace in knowing that his radical influence shaped our careers and the ethical code that governs our profession.
A Career of Integrity and Excellence
Throughout his career spanning more than 70 years, D.L.O. embodied the highest standards of integrity and technical excellence. He was particularly instrumental in advancing our
understanding of ancient irrigation systems, bridging the gap between historical wisdom and modern development.
Academic and Professional Journey
D.L.O.’s educational journey began at Ladies’ College(which accepted boys in lower grades at the time) before he moved to Royal College. He later entered the University of Ceylon as a member of the pioneering first batch of engineering students in 1950, graduating in 1954 in a class of nearly 25 students.
His professional path was distinguished and diverse:
Irrigation Department:
Served for nearly 10 years.
River Valleys Development Board (RVDB):
Contributed during the construction of the Uda Walawe reservoir.
Ministry of Plan Implementation:
Served as Deputy Director under Director M. S. M. De Silva, where his main contribution was the promotion of appropriate technology, particularly the advancement of historical Kotmale ironwork which has existed since the era of Parakrama Bahu the Great, and the South Eastern Dry Zone Project. (SEDZ).
Consultancy:
Served as a freelance consultant.
Leadership:
A prolific contributor of a large number of technical papers to the Institution of Engineers, Sri Lanka (IESL), eventually serving as its President.
Personal Reflections and Anecdotes
My association with D.L.O. spanned more than 50 years. I first saw him riding a bicycle past Akbar Hall while I was an engineering student. I later learned his family was residing at Prof. Paul’s residence nearby while he was serving at Uda Walawe Reservoir Project as a senior engineer for the RVDB.
Through D.L.O., I had the privilege of meeting legendary professionals outside the Irrigation Department, includingthe exceptionally bright M.S.M. de Silva and the international economist, Dr. Lal Jayawardena (Mr. N.U.Jayawardena’s son).
A Tribute to a Legacy
We extend our deepest gratitude for Mr. D.L.O. Mendis’slifelong service and offer our sincerest condolences to his family and colleagues. His monumental work and numerous publications remain a lasting gift to future generations of engineers.
May he attain the supreme bliss of Nibbana!
G.T. Dharmasena,
Former Director General of Irrigation
-
Sports7 days agoGurusinha’s Boxing Day hundred celebrated in Melbourne
-
News2 days agoHealth Minister sends letter of demand for one billion rupees in damages
-
News5 days agoLeading the Nation’s Connectivity Recovery Amid Unprecedented Challenges
-
Features6 days agoIt’s all over for Maxi Rozairo
-
Opinion4 days agoRemembering Douglas Devananda on New Year’s Day 2026
-
News6 days agoDr. Bellana: “I was removed as NHSL Deputy Director for exposing Rs. 900 mn fraud”
-
News5 days agoDons on warpath over alleged undue interference in university governance
-
Features6 days agoRebuilding Sri Lanka Through Inclusive Governance
