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Acquisition of AF Jones, my very first business venture – Differences with S. Nadesan, QC

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A. F. Jones —Tea Tasting Room — Alan Jones in the foreground

(Excerpted from the autobiography of Merrill J. Fernando)

The new political climate and the State-orchestrated business direction seemed calculated to discourage the continuity of foreign investment presence in the country. In this environment, in 1962, the Jones family, unsurprisingly but with great reluctance, decided to sell and move out of the country. They had been in business since 1912, when their ancestor, AF, had arrived in Ceylon from Batavia and launched the company under his name. The decision to sell out was compelled by adverse circumstances beyond their control.

They offered the company to me, at the reasonable price of Rs. 600,000. However, it was still beyond my means on my own and I turned to my friend, Sarath Wijesinghe. He agreed to join me in my investment and we decided to take a third each. It was my intention to split my share with members of my family. For the balance share of the company, I approached S. Nadesan, a well-known lawyer and senator, for whose legal skills I had developed a great respect, on account of his successful representation of my interests in a legal issue with a relation.

He agreed to come in as the third partner. In retrospect, my decision to take over A. F. Jones was both bold and risky in the context of the political environment then, which seemed clearly unfriendly to large-scale private enterprise. However, I was young and, with the confidence of youth, not averse to risk. That apart, I had great faith in my competence in the tea export industry, reinforced by the knowledge and experience of overseas markets I had acquired by then, along with very useful business contacts in a number of tea-importing countries. Underpinning all those considerations, there was my sublime faith in God.

Irrespective of the risk inherent in my maiden entrepreneurial venture, the other factors which worked in my favour were the strong trade links that AFJ had established by then with Iran, Iraq, and Libya, USA, and South America. I had been actively involved in many of those initiatives. I was also singularly fortunate, in having been able to establish early direct links with major international packers and blenders, often bypassing the latter’s agents in Colombo.

With my dedicated and resourceful team I was able to provide the buyer with an exceptional service, shipping out over the weekend the tea that had been purchased at the auctions on the Tuesday before. None of the larger firms operated with that degree of efficiency then. As the owner-operator of a small firm, I was also able to take business risks and also employ operational strategies that the larger firms were not prepared to consider. That apart, I was fortunate in being able to command the complete loyalty of my small group of employees, who willingly shared with me the stress and pressure generated in the business.

However, business operations require funding and, with the departure of the Jones family and the company now being entirely in ‘native’ hands as it were, I was apprehensive that bank facilities would be restricted. The company had been operating on an overdraft of Rs. 1.1 million around the time I acquired control. The Jones family had been trying for some time, without success, to increase it to Rs. 2 million.

An unexpected offer

A. F. Jones banked primarily with National and Grindlays Bank, Colombo, the local subsidiary-associate of the National Bank of India. The Managing Director of the Ceylon branch then was a British national, W. L. Gash, whom I had met on a couple of previous occasions. Even in those brief meetings he came across as a fair-minded, reasonable person. Once the transfer formalities were concluded and the company operations were in my hands, I went to meet Gash in order to update him on the changes in the company. Before the meeting, as was my custom in all important situations, I visited the All Saints’ Church in Borella and spent a few minutes in prayer.

I explained to Gash the circumstances under which I had taken over responsibility for the company and requested him to continue the financing facilities that existed earlier. To my very pleasant surprise he asked me whether I would like it increased to Rs. 2 million, as per the pending request made by the Jones family. Frankly, I was at a loss for words at this unexpected blessing. Naturally, I accepted with thanks and immediately went back to All Saints’ Church to thank God for his benediction. Included in my prayer was Mr. Gash, my new benefactor on earth.

To a great measure, my early success at A. F. Jones was due to the assistance of Mr. Gash. He always accommodated my requests, even when they seemed unreasonable. In fact, some of the senior managers at the bank used to be very surprised at the enhancement of the bank’s exposure to my business, extended with minimum collateral and mortgages and sans personal guarantees.

Around this time I was offered a very nice house in Colombo at a reasonable cost, of which I would have been able to meet only about 20% from my personal resources. I went to Mr. Gash and inquired whether he would loan me the balance 80%. Again, to my utter surprise, he loaned me the full value against an undertaking to mortgage which, finally, was not required.

Internal strife at AFJ

The company’s business progressed well, though there were difficult issues I had to contend with from time to time. At one stage Nadesan, now a Director of the company, persuaded me to take two of his family members on to the Board and to employ other relatives as well. One such was an individual recommended as Personnel Manager, married to a lady heavily involved in Leftist party politics. Unaware in these connections I appointed him, but, to my dismay, soon found that he was trying to unionize the company’s workforce. Since this was clearly against the company’s interests, I was compelled to persuade him to leave.

When the Jones brothers finally left, they offered me the balance shares they still held in the company. I immediately turned to Mr. Gash who very kindly agreed to arrange a loan at low interest for the purchase. When I mentioned this to Nadesan, he advised me against obtaining a loan and, instead, offered to buy the shares and to hold them in trust for me, to be sold to me at a future date. Mr. Gash was strongly against this arrangement and tried to persuade me to take the loan instead, pointing out that my personal acquisition of the shares would tip the balance of power in the company in my favour, automatically conferring on me greater authority in operational matters. However, trusting the word of my fellow Director, I agreed to the latter’s proposal.

As we moved on with the business of the company, Nadesan brought both his son and brother on the Board and also prevailed on me to employ more of his relatives. His son, somewhat arrogant and confrontational, tried to impose his will in business matters he was not familiar with. In 1962, at a Board meeting, he presented some proposals which I considered to be against the company’s interests. Since I was in disagreement, at that point I requested Nadesan to transfer to me, for a proportionate payment, the shares he was holding in trust for me. He agreed and we adjourned the Board meeting.

To my dismay, later on in the day, at my home, he admitted to me that he had purchased the shares in his son’s name and that the latter would not part with them on any condition. However, he tried to appease me with the assurance that I would be permitted to run the company without interference.

I exit the company

I realized that I had been deceived by a man I trusted, respected, and looked upon as a mentor. However, in view of the circumstances, unfortunately, I had no choice but to carry on. The business did continue to grow but the working environment became steadily more unpleasant and, at a Board meeting on September 4, 1962, 1 announced my firm intention to resign, but under certain conditions.

I requested that the flat I had leased out eight years previously and transferred to the company, in order to get a tax benefit, be transferred back to me, and that the motor car I was using also be transferred to me at book value. I also asked that all my other dues be settled within two weeks. All my requests were approved by the Board and we parted on those conditions.

The next day I received a letter from the company giving me just seven days to leave my apartment and requesting me to send the car to the agents for valuation. Whilst I had no difficulty in the re-transfer of the lease of the apartment, I was advised that the car would not be sold to me.

My experiences with A. F. Jones and the manner of the conclusion of that relationship, made me realize that trust is not always reciprocated. It was also an early lesson to me in the potential for duplicity, even amongst those who work closely with you. Another experience whilst at A. F. Jones provides a good example of the latter.

In the Imports arm of A. F. Jones – Eastern Agencies – there was an executive named Chuck Wijenathan, who was ,to all outward appearances, a very nice man. When I was appointed Managing Director of A. F. Jones, I proposed that he too be appointed a director. Nadesan initially opposed the idea but my wish prevailed and Wijenathan was brought on to the Board a few months later. Wijenathan was present at the meeting of September 1962, when the Board agreed that I could move out of the company on my terms. However, no sooner the meeting was concluded, Wijenathan was the first person to call up various people and announce that I had been fired from the company.

Despite such disenchanting early experiences, I have continued to operate on the assumption of mutual trust, although being frequently cautioned by my sons and close friends against being too gullible. -My philosophy is that if you maintain integrity on your part, human decency will prevail and the good will eventually outweigh the bad. Notwithstanding a few disappointments over the years, I am still firmly of the same view.

Along with several other principals, Eastern Agencies Ltd. also represented the famous drug manufacturer, Merck Sharp & Dohme Inc. and Rowntree’s Chocolates Ltd. Since import volumes were low, I once placed a large order for chocolates, without realizing that the company had minimal reserves. When the consignment arrived in the port, to my great embarrassment, I was advised by the wharf clerk that we had no money to pay the duty.

I sought help from Mr. Gash who, despite being unaware of our import operations, loaned the sum of Rs. 410,000 that was needed to clear the cargo. However, our wharf clerk, a man who had been a company employee for several years, carried out a ‘black-market’ operation with the consignment, compelling us to claim from insurance in order to repay the bank. Despite these marks the company was able to restructure its financing model and start making money.

The Nadesans eventually transferred the Eastern Agencies business to the Satyendra family and thence to the Maharaja Group, the manner of the transaction depriving AFJ of a valuable asset at no great benefit to its shareholders. My first exposure to the ‘modus operandi’ of supposedly-reputed legal luminaries was an eye-opener.



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Features

Arctic link discovered: Lankan scientists trace 8,000 km seabird migration route

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By Ifham Nizam

Sri Lankan scientists have uncovered a remarkable long-distance migration route used by seabirds, linking the island’s shores with the Arctic—an achievement that is expected to reshape global understanding of bird movement and highlight Sri Lanka’s importance in the natural world.

The discovery, led by Professor Sampath S. Seneviratne of the University of Colombo, shows that Heuglin’s Gulls travel nearly 8,000 kilometres from Sri Lanka to breeding grounds in northern Russia, following a carefully chosen path that combines coastal travel with long inland journeys.

Prof. Seneviratne told The Island that the finding challenges the long-standing belief that seabirds depend mainly on ocean routes.

“For a long time, we assumed seabirds would stay close to the sea throughout their migration. What we are seeing here is very different. These birds are moving across land as well, using a route that connects Sri Lanka directly with the Arctic,” he said.

Brown headed gull- migrating from Himalayas to Mannar

The birds begin their journey from the northwestern coast of Sri Lanka, especially around Mannar—an area known for its rich birdlife and coastal habitats. From there, they cross over to India and move along the western coastline before turning inland.

Their journey then takes them through Pakistan and Afghanistan, across parts of Central Asia, and onwards to the Arctic region, where they breed during the northern summer.

What has drawn particular attention from scientists is the route chosen by the birds.

Instead of attempting to cross the world’s highest mountain ranges, or taking a much longer path over the open ocean, the gulls appear to follow a middle course that allows them to avoid harsh conditions while still maintaining a steady journey.

Map 1 &2 birds moving through the continent to reach the Artctic

“They are not simply taking the shortest distance,” Prof. Seneviratne explained. “They are choosing a route that gives them the best chance of survival. Along this path, they are able to find food, rest, and avoid extreme environments.”

The birds travel long distances each day, covering hundreds of kilometres, but they do not do it all in one stretch. Their journey depends heavily on stopovers—places where they pause to rest and rebuild energy.

“These stopovers are critical,” Prof. Seneviratne said. “If the birds cannot find suitable places to feed and recover, they will not be able to complete the journey.”

Co-researcher Dr. Gayomini Panagoda said the discovery sheds light on a route that had remained largely hidden until now.

“We always knew these birds were leaving Sri Lanka during certain times of the year, but we did not fully understand where they were going or how they got there,” she said. “Now we have a much clearer picture of their journey.”

Awareness among schoolchildren

She added that the findings show how closely connected different parts of the world are through nature.

“A bird that spends part of its life in Sri Lanka ends up in the Arctic. That tells us how linked these ecosystems really are,” she said.

The findings also underline the importance of Sri Lanka’s coastal areas, which serve as vital feeding and resting grounds for migratory birds before they begin their long journey north.

Veteran ornithologist , Professor Emeritus Sarath Kotagama said these habitats are of international importance and must be protected.

“These coastal regions, especially places like Mannar, provide the food and shelter these birds need before migration. If those areas are damaged, it will affect bird populations far beyond Sri Lanka,” he said.

Professor Seneviratne with Dr. Gayomini Panagoda

Kotagama warned that increasing pressure on coastal ecosystems—from development, pollution, and climate change—could pose serious risks.

“We are already seeing changes in many of these birds. If we are not careful, we could lose habitats that are essential not just for local wildlife, but for species that travel across continents,” he said.

The discovery also draws attention to the wider network of migration routes that connect countries across Asia and beyond. Birds do not recognise national borders, and their survival depends on conditions in many different places along their journey.

Prof. Seneviratne stressed that protecting these birds will require cooperation between countries.

“These birds travel across several regions, and each of those regions plays a role in their survival. Conservation cannot be done by one country alone,” he said.

A GPS tagged Crab Plover

He added that more work is needed to understand how other species use similar routes and how changes in climate and land use may affect migration patterns in the future.

“There is still much we do not know. This is just one piece of a much larger picture,” he said.

Environmentalists say the findings should encourage stronger action to protect wetlands and coastal ecosystems in Sri Lanka, many of which are under increasing threat.

“These areas are not just important for birds,” Dr. Panagoda said. “They support fisheries, protect coastlines, and are part of our natural heritage. Protecting them benefits both people and wildlife.”

She noted that conserving these habitats will also help ensure that future generations can continue to witness the arrival and departure of migratory birds.

For Sri Lanka, the discovery is both a moment of pride and a reminder of responsibility.

It highlights the role the island plays in supporting wildlife that travels across vast distances and connects different parts of the world.

It also shows that even a small country can have a big impact when it comes to global biodiversity.

As Prof. Seneviratne put it, “What happens in Sri Lanka does not stay in Sri Lanka. These birds carry that connection across continents.”

The discovery is expected to encourage further research into bird migration in the region, as scientists continue to explore how different species move across landscapes and adapt to changing conditions.

It also reinforces the need to protect the natural environments that make such journeys possible.

In the end, the story of these birds is not just about distance. It is about survival, connection, and the delicate balance of nature.

From the shores of Sri Lanka to the frozen Arctic, their journey is a powerful reminder that the natural world is far more connected than we often realise—and that protecting one part of it helps protect the whole.

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Why the promotion of drone warfare is unconscionable

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A drone strike on an oil facility in the Middle East in the current war.

For the morally-conscious, the tendency among some sections in Sri Lanka to promote the production of drones for national defence purposes could be deeply worrying. Besides, this proposition flies in the face of common sense and disregards the relentlessly increasing harsh economic realities coming in the wake of the current wars that could push many a southern country into beggary. In fact even the West is facing an economic recession.

To begin with the latter issues, it is a proved reality that the majority of Southern countries are descending further into poverty at present. The FAO has the ‘bleeding statistics’ . For instance, food insecurity in Asia is of such disquieting proportions that the region accounts for ‘ approximately half of the world’s 370.7 million undernourished people’.

It is against such a bleak economic backdrop that countries of the South are being called on to pump money into the production or importing of drones. Pointed reference needs to be made here to the South because drones are peddled as cutting-edge defence systems that are comparatively economical to acquire and relatively easy to operate. It is even voiced that with time drones could enable even smaller countries of the South to acquire ‘strategic parity’ with the major powers of the North and middle level powers.

Meanwhile, no thought is spared for the poor of the South who would sink steadily into poverty and powerlessness. Because more defence spending by southern countries only entrenches the ruling classes of those countries, and in some cases their military high commands, further in the systems of governance and repression.

This has essentially been the experience of the majority of post-colonial states. As aptly phrased by economic and political analyst Susan George in the seventies, it has always been a case of ‘The Other Half Dying’.

Accordingly, it cannot be perceived as to how more defence spending by the South on drones could help alleviate the latter’s principal problem of deepening poverty. As for the perceived escalating insecurities of the South, these problems are of such complexity that drones could never be seen as offering a quick fix for them. They need patient, multi-pronged managing, mainly at the negotiating table with the powers that matter. These are long- gestation projects that need to be compulsorily undertaken in view of the fact that the alternative could be indefinite conflict and war.

Since Sri Lanka too is mentioned as one of those countries that needs to look at the drone proposition with some seriousness, it is relevant to underscore that Sri Lanka is second in a list of countries that are described as facing acute material hardships at present in the wake of the economic instability bred by the Hormuz crisis. The source of such information is no less than the respected Kiel Institute for the World Economy. The first 10 such gravely affected countries are: Zambia, Sri Lanka, Taiwan, Pakistan, Equatorial Guinea, Kenya, Bangladesh, Vietnam, the Philippines and Thailand.

It is thought-provoking that among the above countries are not only those that have been traditionally seen as experiencing severe underdevelopment but also up-and-coming middle income countries that have been hitherto described as being on a fast track to development. The interesting mix proves that no country at present could consider itself immune to current economic shocks originating mainly in the Middle East that could plunge it dramatically into acute poverty virtually overnight.

We are left to conclude that ‘Bread’ or the economic well being of people could in no way be sacrificed for ‘Drones’ in democratic countries whose governments are obliged to be accountable to the people. Considering the phenomenal hardships that could be waiting to happen worldwide, the world could very well do without more ‘Guns’ or ‘Drones’.

However, if southern governments in particular opt for ‘Drones’ or an accumulation of ‘Guns’, the chances are that there could be overwhelming tides of social discontent in their countries, bred by economic want, that could then ignite indefinite war and repression. That is, a ‘No-Win’ situation for all concerned.

Ukraine has been spiritedly and admirably taking the fight back to the invading Russian forces over the past few years but its skillful use of sophisticated drones of its own making has in no way decreased the human costs the war has been incurring for itself. Ukraine has no choice but to continue with all the weaponry at its command to beat back the Russian invader but sooner rather than later it would need to take into account the immense suffering the war has been inflicting on its people and focus on the fact that the Russians are not backing down but using equally lethal weaponry against it.

The above are some of the dilemmas of the present wars that call for urgent resolution. Warring countries are obliged to address on a priority basis the misery and destruction their actions incur for their publics and consider deploying diplomacy, preferably under the aegis of the UN, to work out peaceful solutions to their enmities and differences. Considering the futility of their war Russia and Ukraine are obliged to think on these lines.

No less a power than the US should be considering deeply right now the advisability of continuing with its military interventions in the South in particular to achieve its self interests. The rising loss of American lives and the economic costs of war in the Middle East will be weighing heavily with the Trump administration and it shouldn’t come as a surprise if negotiations are given a serious try, going ahead. Ground realities in the region moreover indicate that the US ‘has bitten off more than it could chew’ and that Iran is remaining hostile and unyielding despite being bloodied.

For both sides to the war what should be inescapable is the harsh reality of continuing human suffering on a chilling scale. Sophisticated and increasingly destructive weaponry such as drones and missiles are being used but they have not brought either side any closer to victory. Instead human misery is being perpetrated mindlessly with a steady deadening of consciences and a flagrant abandoning of reason.

Accordingly, what perceived legitimate aims could drone warfare, for instance, help achieve? It is quite some time since sections of the world community came to realize the futility of violence and war. There is no choice but for humans to recognize and revere the principle of the sacredness of life. A return to fundamentals is imperative.

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Unforgettable experience …

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The committee members of the Ananda Balika Vidyalaya OGA – UK, who made Funky ’70s Bash Dinner Dance a total success (Photographs by: Praneeth Hettiarachchi)

Singer Rajiv Sebastian has the unique ability to woo an audience and he did just that on his recent trip to London, performing at the Funky ’70s Bash Dinner Dance.

This particular event of music, nostalgia, and celebration, was organised by the Ananda Balika Vidyalaya Old Girls’ Association – UK, and held at the DoubleTree by Hilton London Elstree, in Borehamwood, on 28th February.

They say the success of the evening was made possible through the dedication and hard work of President Devika Arrawwalage and the committed committee members of the Ananda Balika Vidyalaya OGA – UK.

Rajiv Sebastian was in top form, delivering an engaging performance that took the audience on a nostalgic musical journey through the iconic sounds of the’70s.

Doing the first set in full suit, with a fan joining in the action

He did three sets, appearing in three different outfits – suit, the normal shirt and trouser, and the sarong – and the crowd loved it.

Adding to the energy of the event, I’m told, was the music provided by the band Hasthi, made up of Sri Lankan musicians based in the UK.

At the end of a truly enjoyable and memorable event, the organisers had this to say about Rajiv Sebastian’s performance:

“On behalf of the entire team, I want to extend our heartfelt thanks to you for travelling all the way from Sri Lanka to perform at our first ever ABV dinner dance in the UK.

“Your performance was truly the highlight of the night. You have a superb talent for captivating an audience; from the moment you took the stage, your vibrant energy and incredible vocal range completely transformed the atmosphere.

“It was wonderful to see how effortlessly you engaged the crowd, keeping the dance floor packed and everyone in high spirits throughout the evening. You have graced the stage as a guest artiste on three separate occasions, delivering exceptional performances that set you apart from your peers.

“We feel incredibly privileged to have had an artiste of your calibre and charisma join us. You didn’t just provide music; you created an unforgettable experience that people are still talking about.

Surprises for his fans in Sri Lanka, as well

“Thank you for sharing your immense gift with us. Hope to see you back on a UK stage very soon!”

Yes, and it’s happening soon; Rajiv says he is off to London again, in mid-April, and will be performing at four different venues.

He also mentioned that he has some surprises for his fans in Sri Lanka, when he and his band, The Clan, present their 35th Anniversary concert … in June, this year.

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