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Midweek Review

‘Aragalaya’ could have been thwarted and GR’s presidency saved: Mahinda Siriwardana

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Outgoing Secretary to the Ministry of Finance launched "Sri Lanka's Economic Revival – Reflection on the Journey from Crisis to Recovery," on April 8, 2025, at the Galle Face Hotel, Colombo. Governor of the Central Bank Dr. Nandalal Weerasinghe receiving a copy of Siriwardana's book that dealt with the 2019-early 2025 period.

Outgoing Treasury chief Mahinda Siriwardana has appealed to the public not to be deceived by various interested parties responsible for the worst post-independence economic crisis. Declaring that the country had lost its economic sovereignty, Siriwardana emphasised that the situation remained fragile as the country was moving on what he called a narrow path of recovery with very limited options available to maneuver. Warning of catastrophic consequences if the country failed to continue on the IMF track, whatever the political compulsions were, Siriwardana urged the public to support it to regain lost economic sovereignty.

There had been several books on ‘Aragalaya’ that forced President Gotabaya Rajapaksa to give up the presidency in July 2022. Prolific writer Sena Thoradeniya (Galle Face Protest: Systems Change or Anarchy?) and National Freedom Front leader Wimal Weerawansa dealt with ‘Aragalaya’ (Nine: The Hidden Story) in April and October 2023. The writers alleged an external hand in the high profile protest campaign with the focus on the US covert intervention. They portrayed US Ambassador Julie Chung as the villain and one of the major players in the conspiracy.

Aragalaya’ time Speaker Mahinda Abeywardena gave a new twist to the plot when he declared in Parliament direct foreign intervention in President Rajapaksa’s ouster, though the ousted leader in his memoirs ‘Conspiracy to oust me from presidency,’ refrained from making direct allegation against the US.

Having perused exposes by Thoradeniya, Weerawansa and Rajapaksa, the writer believes ‘Sri Lanka’s Economic Revival: Reflections on the Journey from Crisis to Recovery,’ authored by outgoing Secretary to the Treasury and Finance, Planning and Economic Development Ministry Mahinda Siriwardana is a must read. It will also be available in Sinhala in the near future.

Siriwardana’s narrative of the circumstances leading to the public protest campaign is explosive. The Treasury Chief built his case on the basis of a series of speeches/power-point presentations delivered during the volatile 2022 to 2025 period. The first speech was delivered on June 24, 2022 at the Royal Colombo Golf Club amidst the ‘Aragalaya’ build-up for the final push, and the final on February 25, 2025 at Shangri-La, Colombo.

In 34 speeches/power-point presentations, Siriwardana cautiously examined how the Central Bank leadership, as well as the so-called economic leadership of the Pohottuwa (Sri Lanka Podujana Peramuna) administration, during the 2019-2022 period, deliberately deceived President Gotabaya Rajapaksa. The author authoritatively asserted that ‘Aragalaya’ could have been thwarted and Gotabaya Rajapaksa’s presidency saved if not for the utterly wrong advice given to him.

The treacherous actions/failures of the Central Bank and the Monetary Board should be examined taking into consideration the massive borrowings over the past several decades and minimal taxing, ridiculously shortsighted policies, Covid-19 pandemic and the Russia-Ukraine war.

In a key note speech delivered at ‘ICC Sri Lanka workshop on trade finance’ at the Colombo Ramada, on February 17, 2024, Siriwardana dropped a bombshell. The soft spoken Finance Secretary didn’t mince his words when he declared the economy collapsed because the then President was given wrong advice on managing the economy. The author hinted at possible conspiracy at the highest level by asserting that it was not a case of providing wrong data to the President but misguiding him on the overall course of economic policy.

Siriwardana, who had been a Deputy Governor of the Central Bank at the time he first issued a warning to the Monetary Board, found fault with those who proposed home-grown solutions to the developing crisis for the eventual collapse of the economy. President Rajapaksa, according to Siriwardana, had been deprived of an opportunity to hear whatever views expressed, contrary to the home-grown solution touted as the panacea for Sri Lanka’s ills.

In the same speech, Siriwardana alleged that those who had propagated home-grown solutions at the expense of economic, political and social stability of post-war Sri Lanka, out of hand rejected assessments provided by international credit rating agencies.

In his preface, Siriwardana, without hesitation whatsoever emphasised that (1) the economic crisis was man-made (2) it could have been prevented or at least the impact mitigated (3) decision makers within the Central Bank and the government turned down timely recommendation for an early engagement with the International Monetary Fund (IMF). The Treasury chief asserted that President Gotabaya Rajapaksa hadn’t been in a position either to receive proper briefing on the developing situation and, therefore, wasn’t able to take remedial measures.

Prime Minister Mahinda Rajapaksa had served as the Finance Minister till July 2021. Basil Rajapaksa was brought in as the Finance Minister in July 2021 while Dr. P. B. Jayasundera served as Secretary to President Rajapaksa. Prof. W.D. Lakshman had been the SLPP’s choice as the Governor but was unceremoniously removed in early September 2021 and replaced with Ajith Nivaard Cabraal. At the time of the new appointment, Cabraal, who had served as Governor, Central Bank, during previous instances, was the State Finance Minister. S.R. Attygalle had been the Secretary to the Treasury.

A letter too late

Delivering the inaugural Prof. K. Dharmasena memorial lecture at the University of Kelaniya on January 30, 2024, Siriwardana explained how President Gotabaya Rajapaksa, in a letter dated March 18, 2022 sought immediate IMF engagement. However, by then the irreversible damage had been done and the The President found himself in a very dicey situation. Obviously the President felt deeply letdown by the developing situation and the realisation that his own team caused irrevocable damage to the post-war economy must have come as quite a shock to the wartime Defence Secretary.

In a no holds barred attack on the Monetary Board of the Central Bank, Siriwardana emphasised in spite of him personally briefing the Monetary Board in mid-2021 of the growing danger in allowing the government to continue on the wrong path, the powers that be disregarded the advice. Having decided not to seek IMF engagement in mid-2020, the government continued to depend on a nonexistent home-grown solution until the country ran out of foreign exchange.

By the time President Rajapaksa realised his folly, it was too late. The President had no option but to bring back retired Senior Deputy Governor Dr. Nandalal Weerasinghe as the Governor of the Central Bank and appoint Siriwardana as the Secretary to the Treasury and Finance, Planning and Economic Development Ministry. Their simultaneous appointments in early April 2022 paved the way for UNP leader Ranil Wickremesinghe’s entry as Prime Minister a couple of weeks later.

At the time of Dr. Weerasinghe’s retirement, he had been holding the position of Senior Deputy Governor which is the No 2 position in the management. Dr. Weerasinghe was supposed to retire on 18 January 2021 at the age of 60. But the top banker had stipulated three months leave and some other leave prior to retirement. Therefore, his retirement took effect at the end of September 2020. Although Deputy Governors are invited to serve until the end of retirement age by the Monetary Board, the then Monetary Board, chaired by Prof W.D. Laxman, in his capacity as the Governor of the Central Bank, ex-officio member Finance Secretary S.R. Arttygalla and appointed member Samantha Kumarasinghe had disagreed. Therefore Dr. Weerasinghe and other Deputy Governor H.A. Karunaratne wasn’t invited to serve that three-month period.

Dr. Weerasinghe and Karunaratne earned the wrath of the establishment by warning the powers that be of the government’s economic strategy. Ironically the same government had to invite Dr. Weerasinghe to take the Governor position in April 2022. But by then the national economy had suffered irreversible damage and the country was in an utterly helpless situation.

Dr. Weerasinghe and Siriwardana and Ranil Wickremesinghe as the Prime Minister (May to July 2022) and President (July 2022 to Sept 2024) spearheaded Sri Lanka’s recovery efforts. Whatever the criticism directed at Wickremesinghe over the years, resolute political leadership given by him during volatile periods should be appreciated, regardless of political differences.

The Chief Guest at Siriwardana’s April 08, 2025 book launch at the Galle Face Hotel was none other than President Anura Kumara Dissanayake, one of the two main beneficiaries of ‘Aragalaya.’ Had the Monetary Board acted on concerns raised by Dr. Weerasinghe and Siriwardana and taken remedial measures at an early stage as repeatedly stressed by the author, economic ruin could have been averted The other main beneficiary is Ranil Wickremesinghe, leader of the UNP. The truth is Wickremesinghe who had even failed to retain his Colombo district seat at the 2020 parliamentary election ended up being elected by Parliament as President in July 2022, thanks to the SLPP’s generosity.

Anura Kumara Dissanayake, leader of two registered political parties namely the JVP and NPP, received such a boost via ‘Aragalaya’ he secured a staggering 5.7 mn votes at the 2024 presidential election. At the previous presidential election conducted in 2019, Dissanayake secured a distant third position with just 418,553 votes. His percentage was pathetic. Just 3.16% whereas Gotabaya Rajapaksa obtained a staggering 6.9 mn votes which amounted to 52.25% of the total accepted votes.

Dr. Coomaraswamy’s take on developments

Both Siriwardana and Dr. Indrajith Coomaraswamy, in his incisive foreword commended successive Presidents Gotabaya Rajapaksa, Ranil Wickremesinghe and incumbent Anura Kumara Dissanayake for what they have done post- ‘Aragalaya’ period.

Both lauded President Dissanayake for continuing with the IMF-led programme, the 17th since 1965. Siriwardana earned Dr. Coomaraswamy’s appreciation for his role in spearheading the efforts to secure parliamentary approval for the Public Financial Management Act (PFMA). Dr. Coomaraswamy who received the appointment as Governor of the Central Bank in June 2016, at the height of the Treasury bond controversy, commended Dr. Weerasinghe’s role in ensuring the enactment of Central Bank of Sri Lanka Act (CBA).

Siriwardana meticulously explained the arduous road the country had to take after key economic decision makers of Pohottuwa hastily vacated their offices by late March/early April 2022.

Siriwardana lamented the absence of a mechanism in case the Central Bank and the Monetary Board disregarded well founded concerns raised by a senior officer. The Supreme Court ruling (SC FR No 195/2022) harshly dealt with the irresponsible lot. Siriwardana’s assessments are compatible with the landmark Supreme Court judgment. Against the backdrop of the politically devastating judgment, Siriwardana examined the absurdity in propagating home-grown solutions disregarding time-tested globally accepted strategies to overcome daunting economic challenges.

Perhaps political parties should make Siriwardana’s book available to at least their members in Parliament. A Sinhala version of Siriwardana’s narrative would definitely help to educate the members of the legislature as part of the overall efforts to educate the Parliament of the dangers on the economic front.

Siriwardana dealt with a number of contentious issues that had been raised by various interested parties seeking to exploit the situation to their advantage. One such issue had been the declaration of debt standstill in April 2022 by Dr. Weerasinghe.

Some of those responsible for the worst post-independence crisis experienced by the country alleged that President Rajapaksa’s administration caused the economic meltdown by unilateral declaration of debt standstill. Siriwardana explained the desperate situation the country was in at the time of the announcement. Liquid and usable reserves had been low as USD 24 mn and the country lacked the wherewithal to meet mandatory debt service requirements. The debt standstill allowed the government to free available foreign currency to pay for critically required imports.

Siriwardana confidently described debt standstill as the first step in the economic recovery process. Political parties represented in Parliament should pay attention to Siriwardana’s assertions. The book launched on April 08, 2025, exactly three years after Siriwardana assumed the responsibilities as the Secretary to the Treasury and Finance, Planning and Economic Development Ministry didn’t receive the deserved attention. Political parties that issue statements at the drop of a hat and call special media briefings to explain their stand remained tight-lipped. Siriwardana’s narrative had been as devastating as the Supreme Court judgment on the ruination of the national economy.

The court found fault with the Rajapaksa brothers, Mahinda, Gotabaya and Basil, Ajith Nivard Cabraal, Prof. W.D. Lakshman, S.R. Attygalle, Dr. P.B. Jayasundara and members of the Monetary Board.

The apex court in its November 2023 judgment rejected their efforts to justify failure to take remedial measures on policy decisions.

Actually, the 10th Parliament should appoint an all-party committee to study the Supreme Court judgment and Siriwardana’s narrative. Whatever the differences over other matters, political parties must ensure that they do not undermine the ongoing IMF-led programme under any circumstances. Major trade unions only concerned about their membership should be briefed of the Supreme Court judgment and Siriwardana’s assessments.

A frightening picture

Appearing before the Committee on Public Finance (COPF) on July 23, 2024, Siriwardana painted a frightening picture of the irresponsible conduct of those who exercised political power. The outspoken official warned Parliament that unlike in the past the current crisis was so severe the country needed a special mechanism to prevent political parties from repeating what he called policy errors of the past. Declaring that those who had been in power always returned to their old ways after adhering to the IMF conditions initially, Siriwardana acknowledged that even now there was no guarantee that the political party system wouldn’t breach the understanding with the IMF.

That is a very serious statement to make and underscored the pathetic situation faced by the country. Referring to the Economic Transformation Bill and other Bills enacted to ensure overall financial discipline, Siriwardana discussed ways and means to proceed with the IMF-led four-year project meant to stabilise the country.

The tax policy is a case in point. Our parliamentarians should know tax policy is no longer in their hands. Instead decisions are taken by the Treasury in consultation with the IMF in line with the Extended Fund Facility (EFF) programme worth USD 3 bn.

Siriwardana, in the 13th chapter, explained how some of those responsible for economic ruination of the country sought political advantage at the expense of the ongoing EFF programme. The author asserted that had they acted responsibly at the time they were entrusted with the task of taking decisions on behalf of the country Sri Lanka wouldn’t have been in current predicament.

Siriwardana will retire at the end of this month. He’ll be assuming duties as an Alternate Executive Director at the Asian Development Bank (ADB), representing Sri Lanka and six other countries. President Dissanayake and his NPP government should ensure that a suitable person capable of handling the tough job is chosen. Siriwardana should make available the Sinhala version of his shocking book as soon as possible for all parliamentarians to understand the gravity of the situation. The responsibility in making suitable appointments lies with the executive and the Constitutional Council depending on the vacancy/appointment. As Siriwardana lucidly explained President Gotabaya Rajapaksa’s downfall was caused by persons appointed by his own administration at the behest of various parties.

Siriwardana’s ‘Sri Lanka’s Economic Revival: Reflections on the Journey from Crisis to Recovery’ is the story of deterioration of governance and accountability. How the war-winning Mahinda Rajapaksa administration allowed economic ruin by pursuing absolutely foolish nonexistent home-grown solutions to a developing economic crisis hitherto not seen. Siriwardana’s take on ‘Aragalaya’ is clear. Whatever the accusations directed at external powers engineering President Gotabaya Rajapakasa’s downfall, that despicable project couldn’t have been brought to a successful conclusion without the Central Bank and Monetary Board creating an environment conducive for ‘Aragalaya.’

Make no mistake, the NPP won’t bother to investigate the alleged conspiracies as they were the main beneficiaries of the high profile project. Let me end this comment with what the outgoing Treasury chief said about the steady decline in revenue collection and the response of our irresponsible Parliament whoever exercised political power. Alleging that revenue collection declined from a healthy 20% of GDP to record low of 8.3% of GDP in 2021, successive governments simply borrowed to cover the shortfall in revenue deficit. The bottom line is the author blamed the Parliament for the ruination of the national economy.

Instead of accepting everything said by the outgoing Treasury Secretary as being the gospel truth we also call upon our readers to delve into Confessions of an Economic Hit Man, which is a semi-autobiographical book written by American essayist John Perkins.

By Shamindra Ferdinando



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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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