Features
WHY GOVERNMENT SHOULD SELL EVEN PROFIT-MAKING STATE-OWNED ENTERPRISES
By Sanjeewa Jayaweera
The recent pronouncement by President Ranil Wickremesinghe (RW), that “The government has no business to be in business.” was music to the ears of those who believe in a free market economy. However, it also drew the ire of the loony left, the trade unions, a few die-hard academics who still cling to ideals of socialism as well as a few journalists.
In all probability, if a straw poll is conducted, most voters would say that the Government of Sri Lanka (GOSL) should continue to own and operate state-owned enterprises (SOEs). It is indeed a paradox that despite it being well-known that SOEs are inefficient, corrupt and a drain on taxpayer funds due to significant losses, many in our country still believe privatization is undesirable. One can only assume this is due to the entitlement mentality ingrained in us over several decades and the belief that the government should be our provider.
What ails the SOEs
Citizens ultimately own SOEs but have no voice and lack the interest or wherewithal to monitor them. Therefore, efficiency is entirely dependent on the existing system of governance. Political patronage is the criterion for selecting the top management of SOEs allowing government politicians to choose their relatives and close friends despite their having no prior experience in holding such positions. That such appointments have resulted in adverse consequences to the enterprise and the country is a well known fact.
Employment in state institutions has been on a ‘Jobs for the Boys’ philosophy to which many, including university graduates, subscribe. All SOEs are overstaffed primarily due to elected politicians using their power and influence to overload them despite no existing vacancies. The problem has been compounded by the fact that most of those appointed are poorly skilled. Once employed, they join trade unions and demand above-average wages and bonuses even when losses are being incurred. They want their personal income tax paid by the SOE and light work norms. So it is not surprising that despite the economic Armageddon we have hit, many still hang on to the belief that the government should be running businesses.
The need to educate the public
The recent announcement by the government that it intends to divest its investments in Sri Lanka Telecom (SLT), Lanka Hospitals (LH), and the Sri Lanka Insurance Corporation (SLIC) has resulted in many, including the leader of the opposition, the JVP, trade unions, a few journalists and other media personnel together with some academics to say “We are against the privatization of profit-making SOEs.” Their opposition to the sale resonates with the public and supports the theory of selling the family silver.
When a young journalist posed this question to RW at a media conference, he told her in his typically offhand and condescending tone, “We have debts to settle as well.” I believe it was an opportunity lost by RW to explain through the media to the people why it makes perfect sense to dispose of the shares held in SLT, SLIC and LH.
In my opinion, when it comes to the economy and finance, most people in our country are ignorant. Many highly educated people and experts in their own field I know say, “I don’t know or understand finance.” In the last couple of years, we have seen greater discussion and information sharing on the economy and finance due to the economic crisis. However, there is still a lack of understanding and proper appreciation of the issues. The government must disseminate the policy through its media with greater focus and transparency. I have often been dismayed when RW and other government officials say, “The IMF has told us to do this and that”. Instead of passing the buck to the IMF, GOSL needs to say commonsense and financial prudence demands what we’re doing.
Why it’s sensible for GOSL
to sell its SLT stake
For me, the logic in selling the shares of profitable enterprises is evident on both financial and ideological grounds. In the case of SLT, the GOSL, through the Treasury and the Employees Trust Fund (ETF), currently own a controlling 50.9% of the company. A share of SLT trades presently at around Rs. 94 on the Colombo Stock Exchange. This means the company’s value is around Rs. 168 billion. Therefore the GOSL stake is worth around Rs. 86 billion.
However, the current market price of an SLT share is significantly overvalued due to the anticipated sale of the government stake. According to the company’s latest Annual Report, in the last 10 years up to the end of 2021, the highest price the share commanded was Rs. 57.30 in 2014. However, in 2022 the highest traded price was Rs. 78.90, whilst the lowest was Rs. 28.70. Obviously, an independent valuation would need to be carried out considering that a controlling stake is being sold. Several well-established methodologies are used in the valuation of companies.
To illustrate my point that it is beneficial for GOSL to sell out, I will assume Rs. 65 per share is the price the government will get on the deal. The GOSL would therefore be able to receive Rs. 59.7 billion by selling its SLT stake.
I have set out below the last five-year financial performance, capital expenditure and dividends paid to GOSL by the SLT Group.As can be observed, despite posting healthy profits, the dividends declared have been constrained by the high capital expenditure incurred. Given the rapid technological development and the ever-expanding use of mobile communication and the Internet, all telecommunication companies need to incur continuous capital expenditure to keep abreast.
The table shows the GOSL has only received total dividends of Rs 5.4 billion over five years, an annual average of Rs 1.1 billion a year.
So the question is whether retaining its SLT shares and earning Rs. 1 billion a year against receiving Rs. 59.7 billion as sales proceeds, is beneficial to the country or not. As stated by RW , the GOSL by selling could then utilize the Rs. 59.7 billion proceeds to retire some of its current debt and also not raise new loans as is currently done at interest rates above 20% plus. The interest saving for a year on the new debt at 20% would be Rs. 12 billion.
Opportunity cost is the criterion for making prudent financial decisions. The definition of opportunity costs is the value or benefit of what you lose or miss when you choose one alternative over another. In this instance, in case the GOSL does not sell its SLT stake at my assumed price of Rs. 65 per share, the opportunity cost foregone is Rs. 11 billion for a year.
The sale of SLT shares will not impact on our national security as the largest telecommunications operator in the country is a foreign-owned entity.
In 1997, the government, through a competitive bidding process, sold 35% of its shareholding in SLT to Nippon Telegraph and Telephone (NTT) of Japan for US$ 225 million. This was then the largest ever privatization transaction of GOSL.
The transformation of SLT under a Japanese CEO after partial privatization was immense and is often cited as an example of why SOEs should be privatized. The days when we had to wait nearly five years to get a new fixed-line connection were ended as SLT was transformed into a service-centric business enterprise. However, even after two decades, the Chairman of SLT, in his message to the shareholders in the 2021 Annual Report, laments, “In January 2020, we saw a company with immense potential, but its progress was obstructed in several areas. Staff unrest was at the top of the list with regular strikes and work stoppages leading to poor messaging (signalling) to the customers, especially the corporate sector.”
Staff remuneration cost at SLT versus its competitor
According to the latest Annual Report (AR), SLT employed 8,058 staff. In 2021 costing Rs. 20.7bn. wages. In contrast, Dialog Axiata Plc, its main competitor, with a significant market share (17.7 mn subscribers vs SLT’s 9.3 million) and revenue (Rs 142 Bn vs Rs. 102Bn) over SLT, employed only 3,631 staff with a total wage bill of Rs. 10 bn. The bottom line is that SLT incurs Rs. 10.7 bn staff costs over its competitor to service a subscriber base significantly lower than its rival. These figures reflect the cost inefficiencies at SLT and other SOEs and is the primary reason the trade unions vehemently oppose the sale of the GOSL stake.
Furthermore, Dialog Axiata Plc has stated in its Annual Report that they have invested US $ 3 Bn since inception. In 2021, they paid Rs 8.4 billion as direct taxes and collected Rs. 14.8 Billion as consumption taxes. Another benefit of privatization for the GOSL is that it stands to collect higher direct taxes from companies operating efficiently with a cost focus.
The logic I have applied to the sale of the SLT stake is equally applicable to the sale of the GOSL stakes in Lanka Hospitals and Sri Lanka Insurance Corporation.
We need to set aside, at least now, this long-held view that the government should be involved in controlling and operating businesses. The process of privatization is lengthy and, as can be seen, will meet various hurdles. However, the GOSL must be steadfast in its determination to go ahead with the planned privatization/restructuring process of SOEs and actively engage the public and educate them of the benefits.
Transparency and competitive bidding when Privatising SOEs
A mandatory requirement for privatization is that the process must be totally transparent and be based on competitive bidding. Furthermore, the base price/valuation for sale should be arrived at by an independent party so that they are no doubts that the GOSL and the people received the best possible deal.
The success of India
Sri Lanka should look across the ocean at India, which since 1991 has been following a strategy of Liberalization, Privatization and Globalization that has led to consistent economic growth; India is now considered a global economic powerhouse. A few years back, Prime Minister Narendra Modi said the government has no business to be in business, and his administration is committed to privatizing all PSUs barring the bare minimum, in four strategic sectors.
“It is the government’s duty to support enterprises and businesses. But it is not essential that it should own and run enterprises,” he said. Modi also said the Centre’s policy is to either monetize or modernize public sector enterprises on the basis that the government has “no business to be in business”.
(The views and opinions expressed in this article are of the author and are not of any institution or organization that he may be associated with.)
Features
Reconciliation: Grand Hopes or Simple Steps
In politics, there is the grand language and the simple words. As they say in North America, you don’t need a $20-word or $50-word where a simple $5-world will do. There is also the formal and the functional. People of different categories can functionally get along without always needing formal arrangements involving constitutional structures and rights declarations. The latter are necessary and needed to protect the weak from the bullies, especially from the bullying instruments of the state, or for protecting a small country from a Trump state. In the society at large, people can get along in their daily lives in spite of differences between them, provided they are left alone without busybody interferences.
There have been too many busybody interferences in Sri Lanka in all the years after independence, so much so they exploded into violence that took a toll on everyone for as many as many as 26 (1983-2009) years. The fight was over grand language matters – selective claims of history, sovereignty assertions and self-determination counters, and territorial litigations – you name it. The lives of ordinary people, even those living in their isolated corners and communicating in the simple words of life, were turned upside down. Ironically in their name and as often in the name of ‘future generations yet unborn’ – to recall the old political rhetoric always in full flight. The current American anti-abortionists would have loved this deference to unborn babies.
At the end of it all came the call for Reconciliation. The term and concept are a direct outcome of South Africa’s post-apartheid experience. Quite laudably, the concept of reconciliation is based on choosing restorative justice as opposed to retributive justice, forgiveness over prosecution and reparation over retaliation. The concept was soon turned into a remedial toolkit for societies and polities emerging from autocracies and/or civil wars. Even though, South Africa’s apartheid and post-apartheid experiences are quite unique and quite different from experiences elsewhere, there was also the common sharing among them of both the colonial and postcolonial experiences.
The experience of facilitating and implementing reconciliation, however, has not been wholly positive or encouraging. The results have been mixed even in South Africa, even though it is difficult to imagine a different path South Africa could have taken to launch its post-apartheid era. There is no resounding success elsewhere, mostly instances of non-starters and stallers. There are also signs of acknowledgement among activists and academics that the project of reconciliation has more roadblocks to overcome than springboards for taking off.
Ultimately, if state power is not fully behind it the reconciliation project is not likely to take off, let alone succeed. The irony is that it is the abuse of state power that created the necessity for reconciliation in the first place. Now, the full blessing and weight of state power is needed to deliver reconciliation.
Sri Lanka’s Reconciliation Journey
After the end of the war in 2009, Sri Lanka was an obvious candidate for reconciliation by every objective measure or metric. This was so for most of the external actors, but there were differences in the extent of support and in their relationship with the Sri Lankan government. The Rajapaksa government that saw the end of the war was clearly more reluctant than enthusiastic about embarking on the reconciliation journey. But they could not totally disavow it because of external pressure. The Tamil political leadership spurred on by expatriate Tamils was insistent on maximalist claims as part of reconciliation, with a not too subtle tone of retribution rather than restoration.
As for the people at large, there was lukewarm interest among the Sinhalese at best, along with strident opposition by the more nationalistic sections. The Tamils living in the north and east had too much to do putting their shattered lives together to have any energy left to expend on the grand claims of reconciliation. The expatriates were more fortuitously placed to be totally insistent on making maximalist claims and vigorously lobbying the western governments to take a hardline against the Sri Lankan government. The singular bone of contention was about alleged war crimes and their investigation, and that totally divided the political actors over the very purpose of reconciliation – grand or simple.
By far the most significant contribution of the Rajapaksa government towards reconciliation was the establishment of the Lessons Learnt and Reconciliation Commission (LLRC) that released its Report and recommendations on December 16, 2011, which turned out to be the 40th anniversary of the liberation of Bangladesh. I noted the irony of it in my Sunday Island article at that time.
Its shortcomings notwithstanding, the LLRC Report included many practical recommendations, viz., demilitarization of the North and East; dismantling of High Security Zones and the release of confiscated houses and farmland back to the original property owners; rehabilitation of impacted families and child soldiers; ending unlawful detention; and the return of internally displaced people including Muslims who were forced out of Jaffna during the early stages of the war. There were other recommendations regarding the record of missing persons and claims for reparation.
The implementation of these practical measures was tardy at best or totally ignored at worst. What could have been a simple but effective reconciliation program of implementation was swept away by the assertion of the grand claims of reconciliation. In the first, and so far only, Northern Provincial Council election in 2013, the TNA swept the board, winning 30 out of 38 seats in provincial council. The TNA’s handpicked a Chief Minister parachuted from Colombo, CV Wigneswaran, was supposed to be a bridge builder and was widely expected to bring much needed redress to the people in the devastated districts of the Northern Province. Instead, he wasted a whole term – bandying the claim of genocide and the genealogy of Tamil. Neither was his mandated business, and rather than being a bridge builder he turned out to be a total wrecking ball.
The Ultimate Betrayal
The Rajapaksa government mischievously poked the Chief Minister by being inflexible on the meddling by the Governor and the appointment of the Provincial Secretary. The 2015 change in government and the duopolistic regime of Maithripala Sirisena as President and Ranil Wickremesinghe as Prime Minister brought about a change in tone and a spurt for the hopes of reconciliation. In the parliamentary contraption that only Ranil Wickremesinghe was capable of, the cabinet of ministers included both UNP and SLFP MPs, while the TNA was both a part of the government and the leading Opposition Party in parliament. Even the JVP straddled the aisle between the government and the opposition in what was hailed as the yahapalana experiment. The experiment collapsed even as it began by the scandal of the notorious bond scam.
The project of reconciliation limped along as increased hopes were frustrated by persistent inaction. Foreign Minister Mangala Samaraweera struck an inclusive tone at the UNHRC and among his western admirers but could not quite translate his promises abroad into progress at home. The Chief Minister proved to be as intransigent as ever and the TNA could not make any positively lasting impact on the one elected body for exercising devolved powers, for which the alliance and all its predecessors have been agitating for from the time SJV Chelvanayakam broke away from GG Ponnambalam’s Tamil Congress in 1949 and set up the Ilankai Tamil Arasu Kadchi aka the Federal Party.
The ultimate betrayal came when the TNA acceded to the Sirisena-Wickremesinghe government’s decision to indefinitely postpone the Provincial Council elections that were due in 2018, and let the Northern Provincial Council and all other provincial councils slip into abeyance. That is where things are now. There is a website for the Northern Provincial Council even though there is no elected council or any indication of a date for the long overdue provincial council elections. The website merely serves as a notice board for the central government’s initiatives in the north through its unelected appointees such as the Provincial Governor and the Secretary.
Yet there has been some progress made in implementing the LLRC recommendations although not nearly as much as could have been done. Much work has been done in the restoration of physical infrastructure but almost all of which under contracts by the central government without any provincial participation. Clearing of the land infested by landmines is another area where there has been much progress. While welcoming de-mining, it is also necessary to reflect on the madness that led to such an extensive broadcasting of landmines in the first place – turning farmland into killing and maiming fields.
On the institutional front, the Office on Missing Persons (OMP) and the Office for Reparations have been established but their operations and contributions are yet being streamlined. These agencies have also been criticized for their lack of transparency and lack of welcome towards victims. While there has been physical resettlement of displaced people their emotional rehabilitation is quite a distance away. The main cause for this is the chronically unsettled land issue and the continuingly disproportionate military presence in the northern districts.
(Next week: Reconciliation and the NPP Government)
by Rajan Philips
Features
The Rise of Takaichi
Her victory is remarkable, and yet, beyond the arithmetic of seats, it is the audacity, unpredictability, and sheer strategic opportunism of Sanae Takaichi that has unsettled the conventions of Japanese politics. Japan now confronts the uncharted waters of a first female prime minister wielding a super-majority in the lower house, an electoral outcome amplified by the external pressures of China’s escalating intimidation. Prior to the election, Takaichi’s unequivocal position on Taiwan—declaring that a Chinese attack could constitute an existential threat justifying Japan’s right to collective self-defence—drew from Beijing a statement of unmistakable ferocity: “If Japan insists on this path, there will be consequences… heads will roll.” Yet the electorate’s verdict on 8 February 2026 was unequivocal: a decisive rejection of external coercion and an affirmation of Japan’s strategic autonomy. The LDP’s triumph, in this sense, is less an expression of ideological conformity than a popular sanction for audacious leadership in a period of geopolitical uncertainty.
Takaichi’s ascent is best understood through the lens of calculated audacity, tempered by a comprehension of domestic legitimacy that few of her contemporaries possess. During her brief tenure prior to the election, she orchestrated a snap lower house contest merely months after assuming office, exploiting her personal popularity and the fragility of opposition coalitions. Unlike predecessors who relied on incrementalism and cautious negotiation within the inherited confines of party politics, Takaichi maneuvered with precision, converting popular concern over regional security and economic stagnation into tangible parliamentary authority. The coalescence of public anxiety, amplified by Chinese threats, and her own assertive persona produced a political synergy rarely witnessed in postwar Japan.
Central to understanding her political strategy is her treatment of national security and sovereignty. Takaichi’s articulation of Japan’s response to a hypothetical Chinese aggression against Taiwan was neither rhetorical flourish nor casual posturing. Framing such a scenario as a “survival-threatening situation” constitutes a profound redefinition of Japanese strategic calculus, signaling a willingness to operationalise collective self-defence in ways previously avoided by postwar administrations. The Xi administration’s reaction—including restrictions on Japanese exports, delays in resuming seafood imports, and threats against commercial and civilian actors—unintentionally demonstrated the effectiveness of her approach: coercion produced cohesion rather than capitulation. Japanese voters, perceiving both the immediacy of threat and the clarity of leadership, rewarded decisiveness. The result was a super-majority capable of reshaping the constitutional and defence architecture of the nation.
This electoral outcome cannot be understood without reference to the ideological continuity and rupture within the LDP itself. Takaichi inherits a party long fractured by internal factionalism, episodic scandals, and the occasional misjudgment of public sentiment. Yet her rise also represents the maturation of a distinct right-of-centre ethos: one that blends assertive national sovereignty, moderate economic populism, and strategic conservatism. By appealing simultaneously to conservative voters, disillusioned younger demographics, and those unsettled by regional volatility, she achieved a political synthesis that previous leaders, including Fumio Kishida and Shigeru Ishiba, failed to materialize. The resulting super-majority is an institutional instrument for the pursuit of substantive policy transformation.
Takaichi’s domestic strategy demonstrates a sophisticated comprehension of the symbiosis between economic policy, social stability, and political legitimacy. The promise of a two-year freeze on the consumption tax for foodstuffs, despite its partial ambiguity, has served both as tangible reassurance to voters and a symbolic statement of attentiveness to middle-class anxieties. Inflation, stagnant wages, and a protracted demographic decline have generated fertile ground for popular discontent, and Takaichi’s ability to frame fiscal intervention as both pragmatic and responsible has resonated deeply. Similarly, her attention to underemployment, particularly the activation of latent female labour, demonstrates an appreciation for structural reform rather than performative gender politics: expanding workforce participation is framed as an economic necessity, not a symbolic gesture.
Her approach to defence and international relations further highlights her strategic dexterity. The 2026 defence budget, reaching 9.04 trillion yen, the establishment of advanced missile capabilities, and the formation of a Space Operations Squadron reflect a commitment to operationalising Japan’s deterrent capabilities without abandoning domestic legitimacy. Takaichi has shown restraint in presentation while signaling determination in substance. She avoids ideological maximalism; her stated aim is not militarism for its own sake but the assertion of national interest, particularly in a context of declining U.S. relative hegemony and assertive Chinese manoeuvres. Takaichi appears to internalize the balance between deterrence and diplomacy in East Asian geopolitics, cultivating both alliance cohesion and autonomous capability. Her proposed constitutional revision, targeting Article 9, must therefore be read as a calibrated adjustment to legal frameworks rather than an impulsive repudiation of pacifist principles, though the implications are inevitably destabilizing from a regional perspective.
The historical dimension of her politics is equally consequential. Takaichi’s association with visits to the Yasukuni Shrine, her questioning of historical narratives surrounding wartime atrocities, and her engagement with revisionist historiography are not merely symbolic gestures but constitute deliberate ideological positioning within Japan’s right-wing spectrum.
Japanese politics is no exception when it comes to the function of historical narrative as both ethical compass and instrument of legitimacy: Takaichi’s actions signal continuity with a nationalist interpretation of sovereignty while asserting moral authority over historical memory. This strategic management of memory intersects with her security agenda, particularly regarding Taiwan and the East China Sea, allowing her to mobilize domestic consensus while projecting resolve externally.
The Chinese reaction, predictably alarmed and often hyperbolic, reflects the disjuncture between external expectation and domestic reality. Beijing’s characterization of Takaichi as an existential threat to regional peace, employing metaphors such as the opening of Pandora’s Box, misinterprets the domestic calculation. Takaichi’s popularity did not surge in spite of China’s pressure but because of it; the electorate rewarded the demonstration of agency against perceived coercion. The Xi administration’s misjudgment, compounded by a declining cadre of officials competent in Japanese affairs, illustrates the structural asymmetries that Takaichi has been able to exploit: external intimidation, when poorly calibrated, functions as political accelerant. Japan’s electorate, operating with acute awareness of both historical precedent and contemporary vulnerability, effectively weaponized Chinese miscalculation.
Fiscal policy, too, serves as an instrument of political consolidation. The tension between her proposed consumption tax adjustments and the imperatives of fiscal responsibility illustrates the deliberate ambiguity with which Takaichi operates: she signals responsiveness to popular needs while retaining sufficient flexibility to negotiate market and institutional constraints. Economists note that the potential reduction in revenue is significant, yet her credibility rests in her capacity to convince voters that the measures are temporary, targeted, and strategically justified. Here, the interplay between domestic politics and international market perception is critical: Takaichi steers both the expectations of Japanese citizens and the anxieties of global investors, demonstrating a rare fluency in multi-layered policy signaling.
Her coalition management demonstrates a keen strategic instinct. By maintaining the alliance with the Japan Innovation Party even after securing a super-majority, she projects an image of moderation while advancing audacious policies. This delicate balancing act between consolidation and inclusion reveals a grasp of the reality that commanding numbers in parliament does not equate to unfettered authority: in Japan, procedural legitimacy and coalition cohesion remain crucial, and symbolic consensus continues to carry significant cultural and institutional weight.
Yet, perhaps the most striking element of Takaichi’s victory is the extent to which it has redefined the interface between domestic politics and regional geopolitics. By explicitly linking Taiwan to Japan’s collective self-defence framework, she has re-framed public understanding of regional security, converting existential anxiety into political capital. Chinese rhetoric, at times bordering on the explicitly menacing, highlights the efficacy of this strategy: the invocation of direct consequences and the threat of physical reprisal amplified domestic perceptions of threat, producing a rare alignment of public opinion with executive strategy. In this sense, Takaichi operates not merely as a domestic politician but as a conductor of transnational strategic sentiment, demonstrating an acute awareness of perception, risk, and leverage that surpasses the capacity of many predecessors. It is a quintessentially Machiavellian maneuver, executed with Japanese political sophistication rather than European moral theorisation. Therefore, the rise of Sanae Takaichi represents more than the triumph of a single politician: it signals a profound re-calibration of the Japanese political order.
by Nilantha Ilangamuwa
Features
Rebuilding Sri Lanka’s Farming After Cyclone Ditwah: A Reform Agenda, Not a Repair Job
Three months on (February 2026)
Three months after Cyclone Ditwah swept across Sri Lanka in late November 2025, the headlines have moved on. In many places, the floodwaters have receded, emergency support has reached affected communities, and farmers are doing what they always do, trying to salvage what they can and prepare for the next season. Yet the most important question now is not how quickly agriculture can return to “normal”. It is whether Sri Lanka will rebuild in a way that breaks the cycle of risks that made Ditwah so devastating in the first place.
Ditwah was not simply a bad storm. It was a stress test for our food system, our land and water management, and the institutions meant to protect livelihoods. It showed, in harsh detail, how quickly losses multiply when farms sit in flood pathways, when irrigation and drainage are designed for yesterday’s rainfall, when safety nets are thin, and when early warnings do not consistently translate into early action.
In the immediate aftermath, the damage was rightly measured in flooded hectares, broken canals and damaged infrastructure, and families who lost a season’s worth of income overnight. Those impacts remain real. But three months on, the clearer lesson is why the shock travelled so far and so fast. Over time, exposure has become the default: cultivation and settlement have expanded into floodplains and unstable slopes, driven by land pressure and weak enforcement of risk-informed planning. Infrastructure that should cushion shocks, tanks, canals, embankments, culverts, too often became a failure point because maintenance has lagged and design standards have not kept pace with extreme weather. At farm level, production risk remains concentrated, with limited diversification and high sensitivity to a single event arriving at the wrong stage of the season. Meanwhile, indebted households with delayed access to liquidity struggled to recover, and the information reaching farmers was not always specific enough to prompt practical decisions at the right time.
If Sri Lanka takes only one message from Ditwah, it should be this: recovery spending, by itself, is not resilience. Rebuilding must reduce recurring losses, not merely replace what was damaged. That requires choices that are sometimes harder politically and administratively, but far cheaper than repeating the same cycle of emergency, repair, and regret.
First, Sri Lanka needs farming systems that do not collapse in an “all-or-nothing” way when water stays on fields for days. That means making diversification the norm, not the exception. It means supporting farmers to adopt crop mixes and planting schedules that spread risk, expanding the availability of stress-tolerant and short-duration varieties, and treating soil health and field drainage as essential productivity infrastructure. It also means paying far more attention to livestock and fisheries, where simple measures like safer siting, elevated shelters, protected feed storage, and better-designed ponds can prevent avoidable losses.
Second, we must stop rebuilding infrastructure to the standards of the past. Irrigation and drainage networks, rural roads, bridges, storage facilities and market access are not just development assets; they are risk management systems. Every major repair should be screened through a simple question: will this investment reduce risk under today’s and tomorrow’s rainfall patterns, or will it lock vulnerability in for the next 20 years? Design standards should reflect projected intensity, not historical averages. Catchment-to-field water management must combine engineered solutions with natural buffers such as wetlands, riparian strips and mangroves that reduce surge, erosion and siltation. Most importantly, hazard information must translate into enforceable land-use decisions, including where rebuilding should not happen and where fair support is needed for people to relocate or shift livelihoods safely.
Third, Sri Lanka must share risk more fairly between farmers, markets and the state. Ditwah exposed how quickly a climate shock becomes a debt crisis for rural households. Faster liquidity after a disaster is not a luxury; it is the difference between recovery and long-term impoverishment. Crop insurance needs to be expanded and improved beyond rice, including high-value crops, and designed for quicker payouts. At the national level, rapid-trigger disaster financing can provide immediate fiscal space to support early recovery without derailing budgets. Public funding and concessional climate finance should be channelled into a clear pipeline of resilience investments, rather than fragmented projects that do not add up to systemic change.
Fourth, early warning must finally become early action. We need not just better forecasts but clearer, localised guidance that farmers can act on, linked to reservoir levels, flood risk, and the realities of protecting seed, inputs and livestock. Extension services must be equipped for a climate era, with practical training in climate-smart practices and risk reduction. And the data systems across meteorology, irrigation, agriculture and social protection must talk to each other so that support can be triggered quickly when thresholds are crossed, instead of being assembled after losses are already locked in.
What does this mean in practice? Over the coming months, the focus should be on completing priority irrigation and drainage works with “build-back-better” standards, supporting replanting packages that include soil and drainage measures rather than seed alone, and preventing distress coping through temporary protection for the most vulnerable households. Over the next few years, the country should aim to roll out climate-smart production and advisory bundles in selected river basins, institutionalise agriculture-focused post-disaster assessments that translate into funded plans, and pilot shock-responsive safety nets and rapid-trigger insurance in cyclone-exposed districts. Over the longer term, repeated loss zones must be reoriented towards flood-compatible systems and slope-stabilising perennials, while catchment rehabilitation and natural infrastructure restoration are treated as productivity investments, not optional environmental add-ons.
None of this is abstract. The cost of inaction is paid in failed harvests, lost income, higher food prices and deeper rural debt. The opportunity is equally concrete: if Sri Lanka uses the post-Ditwah period to modernise agriculture making production more resilient, infrastructure smarter, finance faster and institutions more responsive, then Ditwah can become more than a disaster. It can become the turning point where the country decides to stop repairing vulnerability and start building resilience.
By Vimlendra Sharan,
FAO Representative for Sri Lanka and the Maldives
-
Business4 days agoAutodoc 360 relocates to reinforce commitment to premium auto care
-
Midweek Review4 days agoA question of national pride
-
Opinion3 days agoWill computers ever be intelligent?
-
Midweek Review4 days agoTheatre and Anthropocentrism in the age of Climate Emergency
-
Editorial6 days agoThe JRJ syndrome
-
Opinion4 days agoThe Walk for Peace in America a Sri Lankan initiative: A startling truth hidden by govt.
-
Foreign News6 days agoPortugal elects Socialist Party’s Seguro as president in landslide
-
Foreign News7 days agoWashington Post chief executive steps down after mass lay-offs

