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Midweek Review

An assurance on China-backed Port City project, as Indian assets fought fire on X-Press Pearl

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Prof. Peiris, flanked by Justice Minister Ali Sabry, PC (left) and State Minister Ajith Nivard Cabraal addresses the media at the Information department on May 29 (pic courtesy Education Ministry)

Worst ever ecological disaster a month after ship carrying radioactive uranium entered H’tota harbour

 

By Shamindra Ferdinando

 

Sri Lanka Podujana Peramuna (SLPP) Chairman Prof. G. L. Peiris, MP, on May 29 reiterated the importance of the Colombo Port City project. National List MP Prof. Peiris, who is also the Education Minister, was responding to major concerns raised by those who moved the Supreme Court against the Colombo Port City Economic Commission Bill. Prof. Peiris was flanked by National List MPs, Justice Minister Ali Sabri, PC, and State Minister of Money & Capital Market and State Enterprise Reforms Ajith Nivard Cabraal.

The briefing took place at the Information Department, amidst Sri Lanka’s worst ever ecological disaster that threatened the seas around the Colombo Port City and the welfare of thousands who eke out a living off the sea. Indian vessels and tugs, operated by Sri Lanka Shipping Company, and Salvos, fought a raging fire on the container carrier X-Press Pearl.

Controversy surrounds the delay on Sri Lanka’s part to call for Indian help for five days. Indian vessels and aircraft arrived in Sri Lanka on May 25th – five days after Sri Lanka was informed of the fire. The X-Press Pearl fire erupted exactly a month after Sri Lanka expelled a China-bound Antigua-registered vessel that entered the Hambantota port without revealing it carried radioactive uranium.

It would be pertinent to mention that the Information Department received a new head on April 09. Mohan Samaranayake, who previously held the post of Director General, Presidential Media, assumed duties on April 19. Samaranayake succeeded Nalaka Kaluwewa. With Samaranayake’s arrival at the Information Department, the government’s under-used media outlet has sort of enhanced its role.

After assuming new responsibility, veteran journalist and political commentator Samaranayake declared: “Every effort will be made to ensure the expected role of the Department of Government Information by properly publicizing accurate information.”

Samaranayake’s departure paved the way for former Swarnavahini presenter Sudeva Hettiarachchi who had been previously with Hiru, to be the new DG Presidential Media. The Presidential Secretariat also created a new post, namely the Presidential Spokesperson for Sirasa presenter Kingsley Ratnayake, who had done a regular wide-ranging interview with former minister and Sri Lanka’s High Commissioner to India Milinda Moragoda. Interestingly, the late Bandula Jayasekera, one-time The Islander, having served as President Mahinda Rajapaksa’s spokesperson, joined Sirasa after the 2015 presidential election.

The country is in such a crisis and in a far worse situation than during the 30-year war, daunting challenges cannot be overcome by media strategies alone.

Let me get back to the May 29 briefing, at the Information Department. Prof. Peiris was quite convincing in his explanation as regards the passage of the Bill on laws governing the China-backed Colombo Port city project. The one-time top law academic addressed, what he called, misconceptions and apprehensions pertaining to the contents and implications of the Bill, approved by Parliament on May 20th.

The ministerial briefing took place in the wake of Speaker Mahinda Yapa Abeywardena ratifying the new Act. Shan Wijetunga, Director, Department of Communication, Parliament, issued the following statement on the afternoon of May 27. It was headlined: “Hon. Speaker signs blueprint of the Colombo Port City Economic Commission Bill”. The following is the text of the Speaker’s brief statement: “Speaker Hon. Mahinda Yapa Abeywardena has put his signature today (27) validating the Colombo Port City Economic Commission Bill which was passed in Parliament on the 20th May 2021.

The Speaker signed the blueprint of the act at around 11.30 am this morning.

Thereby the Colombo Port City Economic Commission act will be implemented, in full, from today (27).”

The statement made no reference to the Speaker’s decision to launch two inquiries into the failure on the part of Parliament to accurately count the number of votes received, in support of the Bill, at the May 20th vote.

The inquiries were initiated following complaints received from Minister Sabry and SLPP General Secretary Attorney-at-Law Sagara Kariyawasam, PC. The Speaker called for a report from Jayantha de Silva, Secretary, Technology Ministry, pertaining to the failure of the electronic counting system and a comprehensive report in respect of the overall situation from former Secretary General Parliament Dhammika Kitulgoda.

The Communication Department statement also didn’t make any reference to the number of votes received for and against the Bill. However, the first post-war External Affairs Minister Prof. Peiris (2010-2015) didn’t mince his words when he declared at the Information Department that the Bill had received an overwhelming two-thirds majority. Prof. Peiris said that there had been an error in the counting process and the truth was established following an inquiry.

Interestingly, the Speaker’s own Media Division, headed by Indunil Abeywardena, too, hadn’t issued a statement regarding the revelation made by the SLPP Chairman, at the time of the Information Department meeting.

There cannot be any justifiable excuse for the pathetic failure on the part of Parliament to ensure an unquestionable counting process. Can there be any issue whatsoever in the electronic counting process? Parliament actually should be ashamed of its failure – the latest in a long list of let downs over a period of time.

 

Prof. Peiris responds to Opp concerns

The statement made by Prof. Peiris should be examined against the backdrop of the Opposition’s plea to the Supreme Court to order a Referendum, in addition to a two-thirds parliamentary approval for the Bill. The SLPP avoided the Referendum by agreeing for the amendments proposed by the Opposition whereas the SC declared the adequacy of a simple majority.

Prof. Peiris dealt with several contentious issues, including what he described as the perception of exclusivity. Appreciating China spearheading the mega project meant to ‘creating and adding to Sri Lanka’s territory’, Prof. Peiris declared that doors were open for all countries to invest therein. Prof Peiris emphasized that there is absolutely no basis for the assumptions as regards the new territory being Chinese and investments would be restricted.

Having dealt with the contentious issue over the alleged exclusivity, Prof. Peiris strongly countered accusations that the adoption of the Act would pave the way for creation of a mechanism (Colombo Port City Economic Commission) that would undermine basic democratic structures, therefore a threat to Parliament.

Prof. Peiris also explained how Parliament functioned in its supreme capacity and was responsible for the operation of the Colombo Port City project. The distinguished academic stressed that whatever tax concessions and other privileges afforded to investors would be strictly subjected to the parliamentary approval by way of powers exercised by the Auditor General. Minister Peiris asserted that there couldn’t be any controversy over the China-backed project as it would be subjected to regulatory authorities – the Central Bank of Sri Lanka, Public Utilities Commission of Sri Lanka, Inland Revenue Department, Attorney General, Customs et al.

Prof. Peiris dealt with accusations that the Colombo Port City would be utilised for money laundering operations. The Education Minister explained how the laws applicable to the new territory didn’t in any way undermine the systems in place to deter money laundering. The US publicly in April alleged that the Colombo Port City would be exploited by ‘nefarious actors’.

Finally, the SLPP Chairman scotched speculation regarding the police and the military not having access to the new territory. Perhaps, most interesting was the examination of the Colombo Port City Economic Commission Bill with that of the Greater Colombo Economic Commission (GCEC) Law, introduced by President JRJ, and an amendment enacted by the late President Ranasinghe Premadasa in 1992. Referring to Premadasa’s amendment that transformed the GCEC to the Board of Investment (BoI), Prof. Peiris said that the then President deprived the Courts of authority to intervene in BOI matters.

Prof. Peiris ridiculed those who had moved the Supreme Court against the Colombo Port City Economic Commission Bill, for having backed the GCEC Law and the 1992 amendment. Prof. Peiris said that President JRJ had been in such a hurry for the GCEC Law he got the National State Assembly to approve it before the promulgation of the 1978 Constitution.

Having explained the fundamental change in investments, Prof. Peiris called for what he called a ‘coherent statutory regime’ as part of overall efforts to attract foreign investments. Prof. Peiris quite vigorously emphasized the role played by the previous government in the China-led project.

Prof. Peiris recalled how the then Minister of Internal and Home Affairs and Provincial Councils and Local Government Vajira Abeywardena (Current UNP Chairman) issued a gazette pertaining to the Colombo Port City territory.

At the onset of the briefing, Prof. Peiris declared that apprehensions and misconceptions pertaining to the project could be easily resolved by a fuller discussion than we have seen in the recent days. Such discussions should have taken place in the run-up to the passage of the Bill. The government shouldn’t expect a consensus on the project having bulldozed its way through in Parliament.

 

UNP’s dilemma

Parliament, on July 23, 2019, passed a resolution that paved the way for the amalgamation of the reclaimed land of the Colombo Port City with the area coming under the purview of the Colombo Divisional Secretariat division.

The Resolution under the Administrative Districts Act was presented by Vajira Abeywardena, MP.

According to the Resolution, the land of the Colombo Port City in extent of 446 hectares will be annexed to the Colombo Divisional Secretariat’s Division of the Administrative District of Colombo. As per the plan prepared by the Surveyor General, the Colombo Port and Chaithya Road East will be a connecting point to the boundary of the Colombo Divisional Secretariat’s Division.

The newly reclaimed land’s connection point would be the western boundary of the Colombo Divisional Secretariat’s Division and its east coordinate would be 396913.476 from the northern connection point and 397077.037 from the southern connection point while its north coordinate would be 492847.74 from the northern connection point and 492290.222 from the southern connection point according to the Sri Lanka Grid 1999 reference coordinate system, according to the schedule of the resolution.

Having suspended the Colombo Port City project soon after the 2015 presidential election, the yahapalana government caused irreparable damage to long standing bilateral relations. The then Government spokesman Rajitha Senaratne said the China Communications Construction Co Ltd (CCCC) project had been launched without relevant approvals from concerned institutions. The Minister alleged that the agreement had been finalized without following proper procedures and did not meet environmental standards. The yahapalana government, in August, 2016, however, despite earlier bitter criticism of it, paved the way for the resumption of the project after China twisted the then Sri Lankan leadership’s arm. China warned Sri Lanka of dire consequences unless it paid compensation for the losses caused by the abrupt suspension of the project. The CCCC estimated it was losing more than $380,000 a day as a result.

Sri Lanka’s foolish decision to suspend the Chinese project should be examined against the backdrop of the US role in the 2015 change of government. No less a person than the then Secretary of State John Kerry revealed the US made funding available for the political project to topple the Mahinda Rajapaksa government, in addition to backing the regime change in Myanmar and Nigeria.

At one point, China lashed out at the then Finance Minister Ravi Karunanayake (Karunanayaka, who contested the Colombo district along with UNP leader Ranil Wickremesinghe, lost his bid to re-enter Parliament at the last parliamentary election, in August 2020. Wickremesinghe, too, lost. The once all-powerful UNP won just a National List slot and it too remains vacant still).

The then Chinese Ambassador Yi Xianliang hit back hard at Karunanayake after he called Chinese funding as ‘expensive loans.’ The Chinese demanded to know why Karunanayaka sought more loans if he felt the Chinese were not being fair. The Chinese Ambassador reacted angrily to Karunanayake in Oct/Nov 2016. By then, both Karunanayake and the then government had been embroiled in Treasury bond scams, perpetrated in Feb 2015 and March 2016.

Having defended the flagship Chinese project to the hilt, the status of Prof. Peiris’ role in the overall government strategy cannot be ignored under any circumstances.

SLPP lawmaker Dr. Wijeyadasa Rajapakse, PC, in his written submissions submitted to the Supreme Court, in respect of the Colombo Port City Economic Commission, challenged the legitimacy of the Bill. Perhaps, the bone of contention is that the Bill, presented to Parliament by the SLPP, hadn’t been consonant with the bilateral agreement between Sri Lanka and China, finalized in 2014, or the re-negotiated tripartite agreement (Sri Lanka, China and Urban Development Authority) following the change of government in 2015.

Lawmaker Rajapakse questioned the failure on the part of those who had access to those agreements but conveniently refrained from submitting them to the Supreme Court.

In his submissions, MP Rajapakse, who had represented both the UNP and the SLFP in the cabinet, alleged Prof. Peiris, along with Dr. P.B. Jayasundera, Secretary to the President, S.R. Attygalle, Secretary to the Treasury and Secretary to the Cabinet being silent on the previous agreements. The four had intervened in the case in support of the Bill.

Having appeared in the Supreme Court on behalf of Ven. Muruthettuwe Ananda Nayaka thera and Nagashenage Dasun Yasas Sri Nagasena, MP Rajapaksa skipped the vote on the Bill on May 20.

 

A big question mark over the role of Parliament

Prof. Peiris, as well as other government spokespersons, have repeatedly assured the public that the Colombo Port City project would be governed by Parliament. They guaranteed the project would be subjected to proper scrutiny therefore the public should be at ease. However, Parliament, having pathetically failed to fulfill its primary responsibilities namely (i) ensuring financial discipline and (ii) enactment of new laws expected to manage the Port City project. Parliament has, however, over and over again revealed its incompetence as waste, corruption and irregularities continued unabated. It would be a horrendous mistake on the part of the public to believe for a moment the Port City project would be within Sri Lanka’s purview simply on the basis of it being subject to parliamentary supervision.

Such claims should be discussed taking into consideration statements issued by the Communication Department of Parliament pertaining to the COPE (Committee on Public Enterprises), COPA (Committee on Public Finance) and COPF (Committee on Public Finance) proceedings. Parliament’s response to the Treasury bond scams, during the previous administration, as well as the massive sugar tax scam, perpetrated by the incumbent SLPP government, bared an unpalatable truth. Examination of COPE, COPA and COPF reports since the last general election revealed massive embezzlement at public sector enterprises as well as other institutions, such as Sri Lanka Cricket and Football Federation of Sri Lanka. In fact, waste, corruption and irregularities seemed almost acceptable to governments, whoever was at the helm, with Parliament struggling to cope up with corruption. Therefore, believing in parliamentary supervision of the Port City project can be quite a blunder.



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Midweek Review

NPP drowning in sea of scams

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Outgoing Treasury Chief Mahinda Siriwardena congratulates his successor Harshana Suriyapperuma in late June 2025 at the Finance Ministry

The Opposition is pressing for a one-day debate on USD 2.5 mn Treasury theft, which is more like a daylight robbery that had been kept under wraps by Treasury mandarins till ‘Free Lawyers’ made it public. However, the government is strongly opposed to the Opposition proposal. The Opposition is seeking consensus among

different parties to intensify the campaign against the government, struggling to cope up with a spate of controversies. Against the backdrop of the devastating debate on the coal scam, the NPP seems reluctant to face another over the theft of Treasury funds.

By Shamindra Ferdinando

USD 2.5 mn brazen heist at the Treasury several months ago and the bigwigs there obviously dragging their feet over the matter till it was brought to light recently, thanks to the Free Lawyers movement, which has dampened the NPP’s enthusiasm for May Day. The Treasury fiasco humiliated the cocky NPP leadership against the backdrop of damning report issued by the National Audit Office (NAO) that found fault with the government for awarding the coal tender for 2025/2026 period to Trident Champhar Limited of India in violation of tender procedures. The NAO emphasised that the Indian company shouldn’t have even been considered for the tender.

Even after the exposure of the scandalous handling of the coal tender, the NPP, in spite of some rumblings within the party, remained confident of overcoming the growing accusations regarding governance issues. But, the sudden revelation of the loss suffered by the Treasury, and pathetic efforts made by the NPP to suppress the truth, has caused irreparable harm to the ruling party. The arrogant NPP will have to use May Day to defend the government. Instead of preaching to the masses ad nauseum the corruption allegations against previous administrations, the NPP would have to explain such massive failures/corruption, particularly the loss of USD 2.5 mn.

There hadn’t been a previous instance of such an incident at the Treasury. The NPP will have to answer questions posed by ‘Free Lawyers,’ a civil society group that first raised the Treasury issue. On behalf of ‘Free Lawyers,’ its President Maithri Gunaratne, PC, former Governor of several provinces Rajith Keerthi Tennakoon, and Attorney-at-Law Shiral Lakthikala, targeted the government over the unprecedented Treasury heist. The Opposition, too, censured the NPP, with SJB leader Sajith Premadasa, MP, Chairman of Public Finance Committee (CoPF) Dr. Harsha de Silva, MP, and United Republican Front (URF) taking the lead.

The NPP’s excuses, based on claimed raids carried out by hacker/hackers targeting the Treasury, are untenable. The NPP’s position cannot be defended or supported against growing criticism. The coal scam and Treasury fiasco dominated social media, with the Opposition, as well as ordinary citizens, having a field day at the expense of the NPP, a political party that accused its opponents of waste, corruption, irregularities and mismanagement. Its successful propaganda campaigns, at the presidential and parliamentary polls, in September and November, 2024, respectively, were centered on fighting corruption.

Their anti-corruption platform appealed to the people for obvious reasons. Against the backdrop of bankruptcy, declared in May, 2022, after failing to meet debt commitments, the electorate rallied around the NPP that thrived on waste, corruption, irregularities and mismanagement, perpetrated by previous governments. Having bagged the executive presidency in September, 2024, the NPP assured the electorate that the Parliament would be cleansed of evils at the general election. President Anura Kumara Dissanayake declared that the people have been vested with the responsibility of cleansing the Parliament. Dissanayake went a step further when he addressed a public gathering at the 18th mile post on the Negombo-Colombo road. The NPP leader, who also leads the JVP, asserted that there was no need for an Opposition in Parliament and the House should be filled with NPPers.

Dissanayake based his assertion essentially on two failed No-Confidence Motions (NCMs) moved against Ravi Karunanayake and Keheliya Rambukwella in 2016 and 2023, respectively. The NPP/JVP leader found fault with Yahapalanaya and the Wickremesinghe-Rajapaksa government for protecting the two wrongdoers, hence the call to cleanse Parliament.

The results of the parliamentary election proved that the electorate responded very favourably to Dissanayake’s call. Of the 225-seat Parliament, the NPP secured 159 seats, including 18 National List slots. Having accused previous governments of shielding wrongdoers, Dissanayake easily directed the NPP’s steamroller parliamentary group to defeat the NCM moved against Energy Minister Punyakumara Dissanayake (National List) on 10 April, just a few days after the NAO report exposed the coal scam.

First ex-MP as Treasury Secy.

If its own hands are clean, there is no doubt that the NPP now deeply regrets the appointment of ex-NPP National List MP Harshana Suriyapperuma as the Secretary to the Treasury and the Finance Ministry. That appointment was made in June 2025 to fill the vacancy created by the retirement of Mahinda Siriwardana who, along with Governor of the Central Bank Dr. Nandalal Weerasinghe, played a significant role in the country’s post-Aragalaya recovery programme.

Suriyapperuma, who had served as Deputy Minister of Finance and Planning for just seven months, before being appointed the Treasury Secretary/Finance Ministry Secretary, is under heavy fire for suppressing the truth. No less a person than CoPF Chairman Dr. de Silva publicly accused Suriyapperuma of trying to undermine his committee. The SJB has demanded Suriyapperuma’s immediate resignation. Dr. Anil Jayantha succeeded as Deputy Minister of Finance and Planning.

Those who inquired into the crisis-hit Treasury are of the belief that 53-year-old Suriyapperuma lacked the much required experience to fill the shoes of Mahinda Siriwardana. Perhaps, the breach at the Treasury could have been averted if an outsider was not brought in place of Siriwardena. The recent reportage of the incident revealed that Suriyapperuma had been aware of the breach and sought to avoid appearing before the CoPF. The NPP could have responded to the developing situation differently if an ex-MP hadn’t been entrusted with the task of steering the Treasury/Finance Ministry. To make matters worse, President Dissanayake holds the Finance portfolio.

Although the government declared that the theft of USD 2.5 mn had been reported to the Criminal Investigation Department (CID) after initial detection made in January this year, controversy surrounds the failure on the part of law enforcement authorities to bring it to the notice of the courts. Maithri Gunaratne, appearing in Hiru last Saturday (25), questioned why the police failed to inform the relevant Magistrate if the government lodged a complaint in that regard.

Australia has confirmed irregularities in payments owed to their government. Regardless of NPP efforts to blame it on hacker/hackers, the truth is clear. Payments have been made to an account that hadn’t been in the original agreement between the governments of Sri Lanka and Australia. That is the undeniable truth that the NPP cannot suppress by propaganda.

The NPP should be ashamed that such a fraud had been perpetrated on a country still struggling to cope up with the economic destruction caused by the UNP- and the SLFP-led governments with the help of “mission impossible” type roles played by outside interests, especially during Gotabaya Rajapaksa’s tenure using the JVP/Aragalaya.

The world knows how the UNP perpetrated the Treasury bond scams with the direct involvement of the then Governor of the Central Bank Arjuna Mahendran, in February 2015 and March 2016. Regardless of that intolerable scam, the UNP made a desperate attempt to retain the services of the Singaporean as the Governor of the Central Bank. Party leader and the then Prime Minister Ranil Wickremesinghe demanded the re-appointment of Mahendran. That despicable move had to be dropped due to massive Opposition protests and growing public discontent over the Treasury bond scams.

The first Treasury bond scam carried out on 27 February, 2015 caused a direct loss of approximately Rs. 2 billion. On the instructions of Mahendran, the Treasury suddenly and arbitrarily changed the process of issuing Treasury Bonds. According to media reports at that time, higher interest payments, over the next 30 years, caused a further loss of around Rs. 145 billion.

Then Mahendran struck again. Caused further direct losses of more than Rs. 4 billion to the government through the fraudulent increase in interest rates as a result of the Treasury Bond issues on 27th March, 2016 ,and 29th March, 2016, in order to provide an undue advantage to connected primary dealers by indulging in further pre-meditated bond scams.

NPP on back foot

The ruling party put on a brave face with lawmakers and various others trying to play down the incident at the Treasury. Some pathetically tried to compare various accusations directed at the Rajapaksas with the incident at the Treasury which they conveniently blamed on hacker/hackers.

The NPP is facing an explosive mixture of issues. Both the coal and Treasury scams have brought immense pressure on the national economy and caused automatic deterioration. The resignation of Punyakumara aka Kumara Jayakody over the coal scam indicated that defeating the NCM moved against him was a strategic political blunder. Had the NPP asked the tainted first time Minister to step down and appoint a Presidential Commission to go into the coal scam, the NPP could have averted a major disaster. However, the Energy Minister and the Energy Secretary Udayanga Hemapala had to resign before the Parliament took up the NCM. Had the top NPP leadership bothered to peruse the executive summary of the NAO presented to Parliament on 7 April, the Party wouldn’t have tried to defend the minister.

Having championed a corruption-free political party system and then won both the presidential and parliamentary polls on that platform, the NPP executed the shocking move to move 323 containers out of the Colombo Port, in January 2025, without even any cursory checks. Those who perpetrated that operation used continuing port congestion as an excuse to clear red-flagged containers without mandatory physical checking. The NPP recently thwarted a bid by Opposition lawmakers, representing a parliamentary committee inquiring into the illegal release of containers, to summon President Dissanayake.

That committee, headed by Justice Minister Attorney-at-Law Harshana Nanayakkara, owed an explanation as to why President Dissanayake, in his capacity as the Finance Minister, shouldn’t appear before a House committee. President Dissanayake very often addresses Parliament on crucial issues. As the Minister in charge of Finance, the President should offer an explanation regarding the high profile container issue that tarnished the NPP’s image.

Three major issues in hand, namely the release of 323 containers, coal scam and theft at the Treasury, regardless of what various apologists say on mainstream and social media, have caused irrevocable damage to the party, let alone escapades involving the likes of Speaker Jagath Wickramaratne, Minister Lal Kantha, etc. The impact on the NPP can be ascertained only at an election. With the public increasingly aware of the growing accusations against it, the ruling party will do whatever possible to put off long delayed Provincial Council elections. Facing the electorate against deepening discontent among the public seems to be a frightening situation. It would be interesting to observe how a House committee, headed by Foreign Minister Vijitha Herath, appointed to explore ways and means to conduct Provincial Council polls, address the issue at hand.

When compared with the three major issues, the resignation of Asoka Ranwala, as the Speaker, in December, 2024, over his failure to produce the much-touted educational qualifications, seems unnecessary. Of course, Ranwala’s case attracted tremendous public attention at that time as the public really believed the NPP wouldn’t deceive them. Ranwala’s lie shocked the public. NPP theoretician Prof. Ranjith Nirmal Dewasiri had no qualms in publicly attacking Ranwala in the wake of the NPP defending the Speaker. But, subsequent NPP actions revealed massive manipulations that shamed the first post-Aragalaya government.

Having accused Ranil Wickremesinghe of squandering as much as Rs 16 mn to join his wife Prof. Maithree in the UK in September, 2023, the NPP has ended up facing far more serious accusations. The incident at the Treasury should be sufficient for the Opposition to move NCM against the government. Of course, the NPP got the numbers in Parliament to easily defeat the NCM but the consequences would be devastating. Those who still talk of recovering the missing USD 2.5 mn must be living in a dreamland. The UNP is labelled with Treasury bond scams (2015 and 2016) and the SLPP faulted with tax cuts (2019) and sugar tax scam (2020). The NPP will have to live with the coal scam and Treasury theft. The NPP will no longer be able to parade on political platforms as paragons of virtue. It would be pertinent to mention that the Presidential Commission appointed to probe the procurement of coal, since 2009, would be able to produce a report to meet the NPP’s expectations. All indications point to that and 2026 is going to be far more challenging, both in and outside Parliament, than the previous year.

NDB fraud

Examined together, the massive fraud at the National Development Bank (NDB), perpetrated during the 2024-2026 period, and the Treasury incident, they underscore the vulnerability of the entire banking system. The 13.2 bn NDB fraud and theft of USD 2.5 mn from the Treasury exposed the regulator, the Central Bank of Sri Lanka, in respect of the NDB. The situation at the NDB cannot be examined without taking into consideration that Ernst & Young is the external auditors of the NDB and its Managing Partner Duminda Hulangamuwa functions as Senior Economic Adviser to President Dissanayake. People haven’t forgotten that Hulangamuwa had been mentioned as the possible successor of Mahinda Siriwardena before the NPP brought in Suriyapperuma. The Central Bank and Securities Exchange Commission (SEC) come under the purview of the Finance Ministry now embroiled in the expanding Treasury fiasco.

The Board of Directors at the NDB consists of Sriyan Cooray (Chairman), Kelum Edirisinghe (Director / Chief Executive Officer (Executive), Bernard Sinniah (Director /Non-Independent), Sujeewa Mudalige (Director /Independent), Kushan D’Alwis (Director/Independent), Kasturi Chellaraja (Director/Independent), Shweta Pandey (Director /Independent), Hasitha Premaratne (Director/Independent), Sanjaya Mohottala (Director (Non-Independent) and Shanil Fernando Director (Independent).

The issue at hand is how such a fraud went unnoticed for a considerable period of time and whether the top management simply ignored warning signs and the failure on the part of the regulator to intervene. Those who have read Mahinda Siriwardana’s ‘Sri Lanka’s Economic Revival: Reflections on the Journey from Crisis to Recovery’ would know the circumstances leading to the 2022 economic collapse. Soft spoken Siriwardana meticulously discussed how the then Central Bank leadership as well as the so-called economic leadership of the Pohottuwa party deliberately deceived President Gotabaya Rajapaksa. Siriwardena’s narrative is explosive. The book, launched before his retirement, with the participation of President Dissanayake, underscored the responsibility on the part of the political leadership and those running the banking system. Obviously Siriwardena’s work had no impact on the current dispensation as well as the top banking management.

The Opposition sees an apparent opportunity to heap pressure on the NPP as it contemplates counter measures. Their challenge is how to take remedial measures without jeopardizing the government. The IMF declaration that it is closely watching the theft of USD 2.5 mn from the Treasury must have added pressure on the government, ripped apart by the situation at the Treasury. Let us hope the government and the Opposition reach consensus on ways and means to improve financial discipline. Overall, the Parliament cannot absolve itself of the responsibility for enactment of laws and ensuring financial discipline and the fact that Sri Lanka needs to start repayment of debt in 2028.

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Midweek Review

Is language social or psychological phenomenon?

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This essay was presented at The Philosophy Group of the University of London about 20 years ago. The thought provoking essay published in The Island on 22 April by Usvwatte-aratchi- Some languages confine you; some languages free you prompted me to try to get this essay published if possible. It may help the readers to further their ideas about the importance of usage of language.

Personally, I have firsthand experience in this subject. I was exposed to two different cultures and two languages. In my formative years I was brought up in a certain culture and spoke the language pertaining to that culture/language (Sinhalese -Sri Lanka). I spent all my studying and working life (55 years) using a different language in a different culture (English -England). I must mention that this was not recently. It was the early 1960’s. I can claim that I have enough knowledge and experience to justify this essay topic. In this essay I shall be investigating some of the social aspects of language with the aid of some opinions put forward by some philosophers. Then I shall be making an attempt to see what psychology has to offer before I draw my own conclusions. I am treating social aspects as part and parcel of the culture. In my view these are inseparable entities, unless one chooses to forget his or her cultural upbringing to suit a particular society.

Adoption of different culture

Socially, learning a different language and adopting a different culture is quite possible. In this case what dominates is one’s attitude or the circumstances. Attitude is psychological. I am convinced that circumstances may lead to a change of attitudes. Having said that, we must not forget that there are individuals who have not taken the trouble to learn the language of the culture in which they live. This has created a lot of socio-psychological problems in the community in which they live. It is obvious that the problem is one of communication. The main tool of communication is language. Philosophers and psychologists have spent many years investigating how language helps us to communicate and also how it may lead us to misunderstand our own fellow human beings. Understanding others (family members, members of the community in which we live, and the strangers we meet) is one of the most important aspects of living.

An awareness of the problem of language goes back to the early Greek philosophers. Parmenides gave us the first example of an argument from language to the world, saying that if we speak of a thing it must exist, since we speak of a thing at various times, it must continue to exist in a particular form. It is recently that language itself has come to be studied in a systematic way. The two landmarks in this respect were the development of Linguistics and the philosophy of language in the 20th century. The great philosopher Bertrand Russell (1872-1970) has admitted that until he became a middle-aged man, he did not think about language per se, but regarded it as ‘transparent’. I am sure this is true with most of us although we are not of Russell’s caliber when it comes to philosophy. And one may not have to wait until one reaches one’s middle age.

Linguistics and philosophy of language

It will help us if we understand the difference between Linguistics and philosophy of Language. What linguists discover may be applied to philosophy, sociology, psychology, anthropology or physiology. But as a discipline of study, it remains independent of them. The philosophy of language is different. One of the modern philosophers John Searle (1932-2025) thought, by contrast to linguistics, philosophy tries to solve philosophical problems by analyzing the ordinary use, meaning and relations of words in a particular language. Searle goes on to say that language is crucial to understand human experience. In my opinion this is a very valid comment. At a very practical level we spend a lot of time sharing our experiences. Verbal communication is vital in this area. According to Canadian philosopher Ian Hacking(1936-2023) the influence of language on philosophy has been profound and almost unrecognized. He indicates, if we are not to be misled by this influence, it is necessary to become conscious of it, and to ask ourselves deliberately how far it is legitimate.

It is appropriate to bring in Ludwig Wittgenstein(1889-1951) at this point. He brought in the subject predicate theory of language. For example, if we say “John is king”. Where John is the subject and king is the predicate. Here existence requires substance. For Aristotle, forms do not exist independently of things—every form is the form of something. A “substantial” form is a kind that is attributed to a thing, without which that thing would be of a different kind or would cease to exist altogether. Wittgenstein supports Saint Augustine’s view that words are names of objects and that combinations of words have the sole function of describing reality. For example, if we point at a certain object, say a table and try to say to a child “this is a table”, the child will be confused as to what we are pointing at. Is it the colour, the tabletop or one or more of its legs This is called the ostensive definition method of teaching. Ostensive definitions lead to a variety of interpretations. The child may understand a particular case of this definition but there is no guarantee that she will be able to make a transition from one case to others like it.

Plato’s theory

J G Herder (1744-1803) pointed out the object to which we make reference may be defined by numerous different terms. How then can we justify direct, one to one correspondence-either of so many to one, or of one to so many? How are we going to deal with situations where a term describes something non-existent or only possible? Plato’s “Forms” theory cannot be applied here as anything that we can speak of already exists as a Form. Critics of this theory ask the question: “how can the world be crowded with so many imaginary objects?” We use words to describe and define. Is there any room for slang language? This comes in handy in our day to day social communication. Ostensive definition raises the questions that require a constant selection of what counts as relevant. In Aldous Huxley’s novel Chrome Yellow, the character Old Rowley is confused as to: Does ‘pig’ refer to the quality of having a curly tail? Or standing in rows to eat? Or being pink skinned and fat? Or wearing no clothes? When we use the word “piggishness” is it something inherent to pigs, or simply, a matter of how we choose to describe them?

How can we relate the above ideas and theories of language to our daily living? Daily living is a psychosocial activity.

Perceptions

The nature of language reflects the nature of our perceptions, and these are far from straight forward. Franz Brentano (1838-1917) developed his theory of intentionality: that every mental phenomenon has a relation of direction to its object, i.e. perceptions, desires, imagination etc. are related to what is perceived, desired or imagined. I presume this can be applied to any language irrespective of the culture (our social conditioning). Say for instance the images of art and the writings are given the ability to represent objects by imposing the intentionality on the object. Thus, when we assert that we see or believe something, we impose, by convention and intention, (that is true if and only if it is the case) on the statement, and these conditions are not contained intrinsically in the sounds that make it up, but in our perception of belief about the fact. I begin to wonder how this can be applied to non-physical and unseen situations. Sometimes our feelings and attitudes are unknown to the observer. A person may shout because he is angry but you cannot see the anger, only its physical expression. We will not be able to see the prior event that has led to the anger and the utterance. This shows that there is a limit to how much is revealed simply by observing a word and its context; there is often more than that can be said.

How can we account for unexpected linguistic behaviour? This has both social and psychological implications.

For a long time behavioural theorists believed that every development of the human being was controlled by environmental and social factors. This is similar to an ostensive explanation of meaning. It implied that everything was learnt through training and association. But Noam Chomsky (b.1928) was not happy with this idea. He thought language is a complex phenomenon and which is not taught bit by bit or systematically to infants. It is successfully acquired by (almost) everybody. From my own experience it is true to say that the difficulty in learning a second language is a very different process from that experienced with the first language. Chomsky argued that the first language is not in fact learned, but rather acquired through exposure to a particular language. According to him all languages share the same basic structure, and he called this “deep structure”, which may be expressed as surface structures through a process called ‘transformation’. Chomsky’s theory helps us to assume a universal system of grammar, which may generate an infinite number of particular sentences within a language. This explains how we may create sentences within a language we have never encountered before from a limited set of grammatical rules and this appears to be a rational scientific approach.

Social or psychological phenomenon

The argument/discussion whether language is a social or a psychological phenomenon requires much more investigation than this essay warrants. I have briefly brought in various philosophers’ work, which are invaluable to this topic in terms of philosophy of language. In conclusion I am tempted to state my own experiences as a bi-lingual person. When it comes to my first language, which is Sinhalese I don’t think I learned it. I heard my parents speaking it and I picked up a few words and I constructed my own sentences and gradually became proficient by accumulating more words. Of course, the proper grammatical use of even my own language was taught in school and not by my parents. Learning my second language i.e. English took a different form. I was taught to speak, read, and write English at school and I had to work harder at this than my first language, because my English was confined to the classroom situation only, i. e. I learnt English in a non- English environment. First language came naturally and the second one I had to learn to fit into the social and the education structure that prevailed at that time. Compulsion can motivate us to learn!I had no choice but to adopt myself culturally and linguistically as a university student in England and then as a university teacher in England. Apart from the native English students, I have taught students from different countries. European, African and Asian. I had the opportunity to intermingle with them and learned various different cultural and linguistic aspects. After almost a half a century in England, I am back to my own culture (language, customs, food etc) where I was born and started my life. I am still proficient in my own language Sinhalese. No conscious effort needed.

After all the foregoing arguments and philosophy that I have put forward, my own conclusion is Chomsky’s theories are more plausible to me than other theories on this issue. It is difficult to be exact and say whether language is a social or psychological phenomenon. From the above arguments, we can see that culture and language of a given society are tightly bound. This leads us to psychological adjustments in order to fit into a society. Who can deny that even the philosophers mentioned above have not been subjected to their own cultural environment?

by Prof. Sampath
Anson Fernando
Formerly University of
The Arts London

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Midweek Review

Birthing a Nation

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Thanks to community centres,

Taking root and flowering Down-Under,

Sri Lankans have finally given shape,

To a truly National New Year,

Where communities meet and greet,

Partake of the same bubbly pot of rice,

Spread cheer under the same banner,

And end the ‘Us’ and the ‘Other’ fixation.

By Lynn Ockersz

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