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An Economic Round Table – a farce in a fallen economy?

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It is indeed amusing to read this debate published in The Island about an “economic roundtable towards a consensus”, presumably to help Sri Lanka’s politicians to get the country out of the abyss it has fallen into. Could these writers be practising a genre of writing bordering on farce, and understated amusement?

They realise that what is needed in the first instance is a tribunal and a guillotine set up in the Galle Face Green, to execute the crooks who have amassed personal fortunes by various scams and “jaavaram”? Scams could be at the august level of a Prime Minister and a Governor of the Central Bank working in collusion, with a Minister who did not know who paid the rent for his luxury flat, or at the ignominious level of a secretary to the President who exchanged sacks of money in a dark parking lot, or in the shadow of changing the price of sugar or of nano-nitrogen to fill desired pockets.

However, once the crooks are got rid of, and their ill-gotten wealth nationalised and repatriated, the economists could be called in to give consensual advice?

Hema Senanayake, who thinks that a round table of economists will square the circle, may have heard of Bernard Shaw’s remark that if you ask 10 economists to point to the North, they will point in 11 different directions and yet miss the North!

Hema Senanayake says, perhaps with unstated irony that “In chemistry, there is no middle path, just known truth prevails. So is physics. In brief all subjects of natural sciences there are scientific truths. Why not in economics?” The simple answer is that Economics is NOT a science. According to Dr. Nalin de Silva, even science is a chronic Western lie – only revealed truth is “truth”.

Senanayake may be secretly thinking of the address given by von Hayek on receiving the Nobel Prize for Economics, entitled “On pretence of knowledge”. https://www.nobelprize.org/prizes/economic-sciences/1974/hayek/lecture/

Von Hayek says that most economic advice is just pretence to knowledge, when no such knowledge exists. In regard to the analogy with the physical sciences, he says:

Economic Science marks a significant step in the process by which, in the opinion of the general public, economics has conceded some of the dignity and prestige of the physical sciences. On the other hand, the economists are at this moment called upon to say how to extricate the free world from the serious threat of accelerating inflation which, it must be admitted, has been brought about by policies which the majority of economists recommended and even urged governments to pursue. We have indeed at the moment little cause for pride: as a profession we have made a mess of things.

It seems to me that this failure of the economists to guide policy more successfully is closely connected with their propensity to imitate as closely as possible the procedures of the brilliantly successful physical sciences – an attempt which in our field may lead to outright error.”

Senanayake is carrying his irony too far when he says “Therefore, I would unite with Dr. Dayan Jayatilleke to call for an Economic Round table and let’s begin with economic axioms. Our people would be relieved from economic suffering within months.”

In Months, WOW! After all, we have heard of Euclid’s axioms, or the axioms set down by Whitehead and Russell in their abortive bid to unify logic and mathematics. But what are these axioms of Economics? The pretence that there are such axioms has been expunged long ago by von Hayek in his Nobel-prize speech.

So what about Sri Lanka’s economy? Surely, if the old soldier had not shot himself in the foot by listening to the likes of Venerable Rathana, Dr. Padeniya, or Dr. Jayasumana to clean the country of toxins, he would not have banned agrochemicals last April. There would have been less of a crisis.

AGRICULTURE- the leading leg of the nation.

What we need now are not economic axioms, but rapid-result agriculture.

Mrs. Bandaranaike, having destroyed Dudley Senanayake’s gains in agriculture, realised in 1971-72 that a possible recourse was to grow Manioc, Millet etc., i.e., crops that need very little agrochemicals! Manioc leaves contain a form of cyanide, and even caterpillars or cattle avoid it. However, if the leaves are pounded and left for an hour, the cyanide is released and makes an excellent “Maellum” (cooked salad) rich in protein.

The government has not only shot one foot (agriculture), but also its other foot (energy sector), and is unable to stand erect. It is on its four limbs; its only capacity is to beg. But DISASTER CAPITALISM is here. The main question for the round-table economists is, who should buy up the disaster – the US, Chinese or Indian capitalists? But, even if the economists come to some agreement, they cannot achieve much, unless they can invite the likes of Goldman Sachs, Mukesh Ambani or Ma Huateng to the talks. That is the only valid axiom!

If the agricultural catastrophe can be weathered for a year by resorting to Manioc and other fallback foods (while the upper classes eat their organic food and drink Evian water), at least one leg of the economy becomes viable. How about the other leg – the power sector?

THE POWER SECTOR- the left leg of the nation

: Already, the local populace has re-discovered firewood. This is bio-energy. Quick growing plants requiring little or no fertiliser and resistant to pests, fit the bill. While exploiting quick-growing plants like Giricidia, my choice for a high-payoff plant for the power sector is Castor, “Erandu” in swabhasha. The oil can be used in a diesel engine without further treatment! It grows fast on the poorest of soils, untouched by even a very hungry goat or gnat. The whole plant, seeds, shells can be burnt to produce high-pressure steam and electric power.

Ipil Ipil, used in coconut plantations as it is a nitrogen-fixing plant, grows to 20-30 feet in a couple of years, and can also be used for firewood or for power generation.

Ifham Nizam’s report in The Island (1st January 2022) says that “Hydro Power capacity has dropped to 70 percent from nearly 95 percent during the recent rains.” When the rains stop, the water levels in the reservoirs fall as the water flows down the sluices, turbines and into irrigation canals. But what is not appreciated is that one third of this water (that could generate 95% during rains) gets lost by EVAPORATION occurring day and night, especially from water areas covered by Salvinia and other aquatic plants.

One might imagine that aquatic plants cover the water and prevent evaporation. Far from it. They act like wicks, and bring up water through their underwater roots and to the air more efficiently. So, REMOVE the aquatic plants, and put floating covers on the windswept part of the water. You immediately get 1/3 MORE electricity by extending the effect of the rains.

Putting floats on water surfaces to partially cover them is a locally available, rapidly deployable technology. However, these floats can carry solar panels. Then, a good additional amount of solar energy, besides the 1/3 extra electricity obtained by cutting evaporation, can be obtained. This solar electricity can be used during the day; a corresponding amount of water can be saved by shutting off a few turbines.

Deploying floating covers to prevent evaporation (with or without solar panels) cleans up the aquatic surfaces. The Salvinia, “Japan Jabara” (water hyacinth) etc., suck up the dissolved oxygen in the water and asphyxiate aquatic organisms, and create unhealthy aquatic bodies. The aquatic weeds thrive in excess phosphates carried down to reservoirs from agricultural areas. So, clearing up these aquatic surfaces, and covering them partially using solar panels will IMPROVE the aquatic ecosystem beyond measure.

In summary, falling back to fast-growing primordial diets based on manioc, millets and yams to weather over the immediate shock of the collapse of the conventional agriculture sector, can steady one leg of the economy. The other leg, i. e., the power sector, may have to fall back on fire wood, Gliricidia, Castor and such bio-energy sources, while taking steps to prevent loss of hydro-power due to water evaporation.

However, an efficient organisational structure is needed to achieve these objectives. The Ministry of Agriculture has had five secretaries in a short length of time. It is like a demoralised army languishing under a succession of mad men, who ordered firing even into its own ranks.

CHANDRE

DHARMAWARDANA

chandre.dharma@yahoo.ca



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Opinion

KOICA – Volunteer Partner’s Day Meeting 2025

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On 20th May 2025, KOICA Volunteer Partner’s Day of year 2025 was held at the Courtyard by Marriott with the presence of the Country Director of KOICA Sri Lanka office Mrs. LEE Yooli, Mr. Samantha Bandara, the Director General of External Resources Department and officials from the Department of Technical Education & Training, National Institute of Education, Schools, Universities, National Youth Services Council, Colombo Public Library and over fifteen (15) volunteer partner organization representatives in Sri Lanka.

At present, there are thirteen (13) KOICA volunteers serving in Sri Lanka and the meeting organized by KOICA (WFK Division) was to share the know-how, experience and knowledgeable resources with the respective partner organizations. The main goals of the knowledge sharing session were to deliver relevant information about the KOICA Volunteer program and to generate insights from the partner organizations that will be useful in recalibrating WFK program’s future direction, including safety and security.

During the session, participants of partner organizations showed their strong need to obtain the services of volunteers, especially for the fields of Korean Language, ICT, Electronics, Social Welfare, Electronics and Auto-Mobile Engineering. Furthermore, they appreciated and emphasized the importance of expanding of KOICA Volunteer Program to rural areas in Sri Lanka.

Since the initiation of KOICA Sri Lanka office in 1991, volunteer dispatch activities have taken place throughout most regions in the country. There has been a significant demand for KOICA volunteers in the educational sphere targeting areas of Korean Language, ICT, etc. The expertise received from Korea has not only shown developmental potential in partner organizations but has also provided invaluable expertise for the youth to excel in the job market.

The Country Director of KOICA Sri Lanka office Mrs. LEE YOOLI expressed her gratitude to all the participants of partner organizations and added “KOICA Headquarters, together with the Sri Lanka Office, is pleased to continue the volunteer program under its ODA endeavors towards Sri Lanka; while introducing new focused volunteer fields in alignment with the SDG goals and the Sri Lankan government priorities.”

In the meeting, Mr. Samantha Bandara, Director General of the External Resources Department, extended his deep appreciation to KOICA for overall technical cooperation towards Sri Lanka and especially, appreciated the services of volunteers who contribute for the social and economic growth of the country, by sharing their expertise and Korea’s development experience.

The Korea International Cooperation Agency (KOICA), the grant aid division of the Embassy of the Republic of Korea, is the Korean government agency for grant aids under the mission of “Contributing to the common prosperity and the promotion of world peace through inclusive, mutual development cooperation leaving no one behind.”

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Has AKD lost the plot?

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The election of the JVP/NPP leader as the executive president of Sri Lanka was no doubt momentous, perhaps, second only to the election of Ranasinghe Premadasa to the same coveted position. Though it was the first time the ‘caste barrier’ was broken, unfortunately, instead of hailing this social revolution Premadasa had other ideas; he attempted to rewrite history by attempting to change his heritage thus missing a great opportunity to show that Sri Lanka indeed was a country of equality and opportunity! AKD shares with Premadasa the same great achievement of reaching the top from very humble beginnings. In addition, AKD is the only leader of the country to be elected from a party with a ‘terrorist’ heritage and many were hopeful that this would not be a baggage. As recent events have shown, it looks as if he is not able to shed that baggage. It is said that a leopard cannot change its spots! This is past repeating itself, as well illustrated by the actions of our first executive president JRJ; he was a manoeuvrer who could not stop doing so, even when he reached the top, which no doubt contributed to his downfall!

AKD started well, just like all his predecessors have done, but wheels seem to be coming off the wagon pretty soon! He continues to behave like an opposition politician continuing with attacks on his opponents, past and present, instead of concentrating on statecraft, to take action to alleviate the suffering of the masses burdened with severe economic hardships and chart a course for future prosperity. Perhaps, this may at least be partly due to his having to face election after election but this should not be an excuse. Prior to the presidential election he portrayed that he was surrounded by groups of experts, of all modalities, who were ready with policies for rapid implementation but these experts seem to have disappeared into thin air! Only experts in economics seem to be from the much-maligned IMF. The message from the voters seems to be falling on deaf ears as shown by absurd explanations given for the erosion of the vote at the last local government elections.

He seems to be a one-man band which, worryingly, dashes hope for the long-promised abolition of the presidency. He would be totally ineffective without the executive powers of the presidency. This seems yet another addition to his unfulfilled promises. He is apparently being supported by a group of amateurs! Prior to elections there was much hype about the PM, a respected academic, who seems to have been pushed to the background. She does not seem to be functioning efficiently even as the minister of education. Ragging continues in universities resulting in suicides. Even worse was the suicide of a student sexually molested by a teacher, humiliated by a friend of the accused teacher, a private tutor who contested on the NPP ticket. The initial punishment for the teacher, till public protests erupted, was a transfer to a distant school. To make a terrible situation even worse was the action of the minister tasked with ensuring the safety of women and children. She claimed that the parents had not met her and handed over a petition.

This lack of leadership is replicated by the President himself. AKD’s mantra during the parliamentary election campaign was cleansing of Diyawannawa but no sooner had the guardian of the house been elected than his doctorate from a private Japanese university was questioned. After much hesitation, the speaker resigned, claiming that he would prove his academic qualifications. He has not done so and he is still an ‘honourable’ MP! Another MP, a female lawyer had the audacity to state that under the NPP government anyone was free to lie and admitted that she had lied about billions of dollars airlifted to Uganda by the Rajapaksas! AKD has taken no action against these MPs.

AKD also had an exposition of the Sacred Tooth Relic to be held in the run-up to the recent local elections. It did not pay dividends may be because the arrangements were in shambles. He visited Vietnam to deliver a lecture for the International Vesak Day but apparently did not find time to pay homage to the Buddha’s sacred relics on display a short distance away from the conference hall. He did find time to lay a wreath at the memorial of the war dead and flew back on a private jet so that he could vote in the LG elections! Another promise broken but it is claimed that a Buddhist society had paid for the private jet!

AKD’s actions regarding the ceremony to remember and honour war heroes clearly shows that he has completely lost the plot. To the shock and horror of all patriotic Sri Lankans, an announcement was made a couple of days ago by the secretary of defence that the ceremony would be presided over by the deputy minister of defence! In short, the commander of the forces is too busy or too reluctant to attend the remembrance of those who sacrificed their lives for the integrity of the country. I doubt it has happened in any country! If he was of the opinion that this event was superfluous or that it hampered reconciliation, he should have had the guts to issue a statement to that effect. Coming from a ‘terrorist’ heritage, the JVP may be having a soft corner for the terrorists killed by the armed forces and may have thought it was hypocritical for him to attend!

As the public outcry could not be patched over, he decided not only to attend the ceremony but also visit the disabled and allow them to take selfies. It is a shame that AKD seems to have developed selective amnesia for his past statements. During the time Rajapaksas were leading the campaign to eradicate the Tigers, AKD was a strong supporter and at times claimed that he told them what to do! What has brought about this change? Was it the backing from the pro-LTTE groups in other countries?

To add insult to injury, during his speech he alluded that the ‘war’ had been fought for political gains. Though it may have produced political gains, doesn’t he realise that it was fought, at a tremendous cost, to defeat terrorism for the purpose of continuing the integrity of the country? He and his acolytes are spreading the canard that this is different as we did not fight a foreign country. Had the Tigers succeeded, we may well be fighting a different country in our little island! His virtual equation of dead terrorists to our fallen heroes added further insult.

Unfortunately, we seem an ungrateful country insulting our fallen war heroes and allowing hypocritical Western nations insulting our living heroes.

by Dr Upul Wijayawardhana

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Opinion

Make Sri Lanka Great

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Sri Lanka holds immense untapped economic potential, bolstered by its strategic location along major global trade routes, rich natural resources, and a vibrant cultural heritage. Yet, despite these advantages, the nation has faced significant setbacks in recent decades—civil conflict, political instability, economic mismanagement, and rising poverty. Against this backdrop, the call to “Make Sri Lanka Great” is more than a slogan; it is a mission. It represents a collective vision to restore economic stability, promote inclusive growth, and unlock a future of opportunity for all Sri Lankans.

Reclaiming Sri Lanka’s Historical Greatness

Historically, Sri Lanka was a flourishing centre of commerce, education, and cultural exchange in the Indian Ocean. Its location between East and West positioned it as a maritime trade hub linking Asia, the Middle East, and Europe. Ports such as Colombo, Galle, Trincomalee, KKS connected global traders, scholars, and travelers, fostering a dynamic and prosperous economy.

Today, reviving this legacy is crucial. Economic renewal must be anchored in a fusion of historical insight, national unity, and bold innovation. To move forward, Sri Lanka must:

*  Reclaim its legacy of knowledge, resilience, and productivity.

*  Promote confidence in its global economic potential, encouraging innovation, entrepreneurship, and investment.

*  Ensure social inclusion, recognising that unity across ethnic and religious lines is foundational to sustainable growth.

By leveraging its geographic strengths, investing in human capital, and creating a transparent, investor-friendly environment, Sri Lanka can once again become a leading player in regional and global trade.

Economic Challenges

Sri Lanka’s development path is obstructed by a complex web of systemic challenges. An ongoing economic crisis—driven by high debt, poor fiscal discipline, and import dependency—has caused inflation, job losses, and currency depreciation. Political instability and inconsistent policymaking further undermine investor confidence and long-term planning.

Social divisions, rooted in a civil war that ended in 2009, continue to impact national unity. Additionally, youth unemployment and the outmigration of skilled workers are weakening the nation’s human capital. Environmental degradation through deforestation, pollution, and unregulated urbanisation threatens tourism, agriculture, and long-term resilience. Addressing these interconnected issues is essential to laying a foundation for economic recovery and sustainable progress.

A New National Vision

To become truly great, Sri Lanka must redefine development beyond GDP and infrastructure. A developed Sri Lanka should be:

*  Economically strong, with robust industries in technology, tourism, agriculture, and services.

*  Socially cohesive, where every citizen is treated equally and with dignity.

*  Globally respected, as a democratic, peaceful, and environmentally responsible nation.

· Empowering to youth, offering them opportunities to succeed at home, not just abroad.

Foreign-to-Local Citizen Ratios

The Foreign-to-Local Citizen Ratio is more than just a demographic statistic — it serves as a valuable indicator of a country’s openness, safety, and attractiveness to the global community. A healthy ratio often reflects a nation’s ability to provide freedom, security, and economic opportunity to foreigners who visit, live, work, or invest. (See Table)

Foreign-to-Local Citizen Ratios

For example, Singapore’s 44% foreign-to-local ratio has supported its rise as a financial and innovation hub by filling labour gaps and driving productivity. While Sri Lanka’s 1.3% ratio reflects low foreign participation, strategic immigration and talent attraction could contribute to economic revitalisation.

Singapore, the UAE, and Germany have higher foreign-to-local ratios, signaling environments where international residents feel safe, welcomed, and empowered. These nations offer stable governance, clear legal frameworks, and strong institutions that attract foreign workers, investors, and entrepreneurs.

A favourable ratio also shows that a country:

*  Ensures security and legal protection for foreigners.

*  Provides infrastructure and services that support international living and business.

*  Encourages foreign direct investment (FDI) and startup ecosystems by reducing red tape and fostering trust.

*  Embraces cultural diversity, creating a dynamic and innovative society.

For Sri Lanka, improving its foreign-to-local ratio can boost its global reputation as a safe, business-friendly, and forward-looking nation. By creating an environment where foreigners feel confident to visit, reside, invest, and contribute, the country can unlock new economic opportunities and accelerate its journey toward sustainable development.

Economic Renewal

To make Sri Lanka great, a comprehensive strategy is required:

*  Good Governance: Eliminate corruption, strengthen democratic institutions, and promote transparency and rule of law.

*  Economic Transformation: Support local production, SMEs, and ethical foreign investment. Create a resilient, diversified, and export-oriented economy.

*  Education and Skills: Modernise the education system to meet future job demands, especially in IT, engineering, tourism, and creative sectors. Expand vocational training to empower youth.

*  Social Inclusion and Reconciliation: Promote national unity through inclusive governance, equal rights, and decentralis`ation to ensure all regions benefit from development.

*  Environmental Sustainability: Invest in clean energy, eco-tourism, and sustainable agriculture. Protect forests, oceans, and heritage sites to maintain long-term economic and ecological balance.

*  Fiscal and Institutional Reform: Improve tax systems, streamline public spending, and create a stable investment environment to manage debt and rebuild confidence.

*  Knowledge Economy: Position Sri Lanka as a digital hub in South Asia by investing in R&D, digital infrastructure, and innovation ecosystems.

Conclusion

The country has the potential to follow the path of nations like South Korea, Japan, and Singapore — countries that transformed crisis into opportunity through strong leadership, national unity, and long-term reform. To achieve this, Sri Lanka must embrace good governance, invest in human capital, promote entrepreneurship, and prioritise sustainable development. The nation’s future greatness depends on bold economic transformation rooted in its unique strengths. With a clear vision, inclusive policies, and collective commitment, Sri Lanka can rise above its challenges and secure a peaceful, prosperous, and globally respected future.

Visvalingam Muralithas is a researcher in the legislative sector, specializing in policy analysis and economic research. He is currently pursuing a PhD in Economics at the University of Colombo, with a research focus on governance, development, and sustainable growth. He holds a Bachelor of Arts in Economics (Honours) from the University of Jaffna and a Master’s degree in Economics from the University of Colombo.

by Visvalingam Muralithas

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