Features
Aspects of Ceylon/Sri Lanka Foreign Relations – 1948 to 1976
In August this year it will be 50 years since Sri Lanka hosted the fifth Non-Aligned Summit in Colombo – the high point in our foreign relations. I thought it appropriate in that context to comment on Ceylon/Sri Lanka’s foreign policy until that time. The Prime Minister, who was the head of the government then was the Minister of Defence and External Affairs, in terms of the Constitution of Ceylon. That changed in 1972, although it continued in practice until 1977. The fact that the Prime Minister was also the Foreign Minister, gave a higher profile to foreign policy making. This was particularly conducive to Sri Lanka’s relations with India.
Sri Lanka’s foreign policy between 1948 and 1956 was oriented towards the West. Attached to the Constitution of Ceylon was a Defence Agreement with the United Kingdom. For instance, officer cadets of the armed forces were trained at Sandhurst, Dartmouth and Cranwell in the UK. The period between 1948 and 1956 was one which could be described as a western oriented foreign policy. After 1956, Ceylon moved towards a more neutral and non-aligned stance.
Between 1948 and 1977, whatever the government, Ceylon/Sri Lanka was specially concerned in maintaining close and friendly relations with India. Prime Ministers D.S. Senanayake, S.W.R.D. Bandaranaike, Dudley Senanayake and Sirimavo Bandaranaike, had very friendly relations with Indian Prime Ministers Nehru, Shastri and Indira Gandhi. There was a kind of a special relationship. It is the breakdown of that close and cordial relationship of the two countries which led to much unrest in Sri Lanka later.
Between 1948 and 1970, Sri Lanka’s foreign policy was largely concerned with bilateral relations. There was no strong focus on multilateral and UN institutions. Foreign relations were largely of a bilateral nature. Between 1970 and 1977, there was a significant change in Sri Lanka’s foreign policy. There was a strong engagement with multilateral institutions especially of the UN system.
There is one exception to bilateralism of this time, and that is the Commonwealth. Since about 1950, Ceylon/Sri Lanka has been a part of the Commonwealth group. That is the first inter-governmental arrangement that Ceylon was part of. The Commonwealth played an important part in our foreign relations. It assisted Ceylon to establish close links with countries like, Australia, New Zealand and Canada.
There were significant aid relationships with these countries and with the United Kingdom. Canada in particular had a close relationship with Ceylon. Canadian Prime Minister, Pierre Trudeau visited Sri Lanka in 1971. The Commonwealth Summit enabled Sri Lanka to interact with other leaders in an informal way. The Commonwealth summits were informal gatherings round a table conducted in English. Mrs. Bandaranaike, as Prime Minister for 10 years, attended three or four summits during her tenure.
Ceylon also played an important role in supporting the establishment of a Commonwealth Secretariat in London. It is through the Commonwealth mainly that Sri Lanka urged that the Apartheid regime in South Africa be dismantled. The Commonwealth also had other subsidiary organizations like the Commonwealth Foundation, Commonwealth Parliamentary Association and the Commonwealth Press Union. It still has the potential for Sri Lanka to play a useful role.
Let me briefly describe some of the key events in our foreign policy between 1948 and 1976.
= In 1950, Ceylon, along with Australia initiated what was later called the Colombo Plan. It was initially called the Spender/Jayewardene Plan for technical cooperation in South and South-East Asia. Spender was the Foreign Minister of Australia, and JRJ was the Finance Minister of Ceylon.
= J.R. Jayewardene’s historic speech at the San Francisco Conference for the Peace Treaty with Japan in 1950. Ceylon waived reparations from Japan. This laid the basis for a strong friendship between Japan and Sri Lanka which has lasted.
= The Rice-Rubber Pact with China in 1953. This was an initiative of R.G. Senanayake, then Minister of Trade. This has led to a long standing friendship with China.
= Ceylon was admitted as a member of the UN in 1954. This opened up new opportunities and new challenges for the conduct of foreign policy. We now have 70 years of experience of working with the UN. This is a large subject on which I will not expand. The Non-Aligned Movement itself was born in the UN context.
= The Sirima-Shastri Pact on citizenship issues, more or less settled the question of plantation labour.
= Sirimavo Bandaranaike’s made the proposal for the Indian Ocean to be a Zone of Peace in 1963.
= Mrs. Bandaranaike’s mediatory role in the Sino-Indian dispute in 1963 was another highlight. She visited both countries in high profile visits.
= So also the Katchathivu Agreement with India which was signed by Mrs. Bandaranaike and Mrs. Indira Gandhi.
= In 1975, Sri Lanka offered landing rights to Pakistani aircraft on their way to East-Pakistan (now Bangladesh). This irritated India but was not a hostile act against India. It led to a strong friendship with Pakistan and an estranged relationship with Bangladesh.
= In 1973, resulting from the oil crisis, new initiatives were taken by the government to improve relations with the Middle East. A Cabinet Committee on the Middle East was established. The Cabinet Secretary, M.S. Alif, was sent on a mission to the Middle East followed by Minister Felix Dias Bandaranaike.
= Mrs. Bandaranaike visited Baghdad, Iraq, to meet with Sadam Hussain in 1975. A concessionary oil agreement was signed. Baghdad was expected to host the Non-Aligned Summit after Colombo in 1979. However, in view of the invasion of Kuwait by Sadam Hussain and the subsequent war with the U.S., it did not take place.
= In 1973, Sri Lanka sponsored Gamani Corea to be the Secretary General of UNCTAD. He played a key role in the North-South negotiations at that time. A little after, Sri Lanka sponsored Shirley Amarasinghe to be President of the UN General Assembly and later to be the Chairman of the Law of the Sea Conference. This conference led to one of the important treaties of all time regarding the Law of the Sea.
Between 1971 and 1976, Sri Lanka’s foreign policy was more oriented towards interventions in the multilateral system than on bilateral relations. This was a time of grave economic hardship for Sri Lanka – the oil price hike by OPEC in 1973, and the world food crisis. Mrs. Bandaranaike was particularly concerned in making Sri Lanka’s foreign policy more attuned to solving these crises.
In 1974 Sri Lanka hosted the last ECAFE (the name was changed to ESCAP in Colombo at that year’s annual sessions). It was the first conference ever to be held at the BMICH in Colombo. Mrs. Bandaranaike made a major proposal to establish a World Fertilizer Fund (WFF). This proposal was adopted at ECAFE level. Later at the UN General Assembly Sessions in 1974, a joint Sri Lanka-New Zealand proposal was adopted to establish an International Fertilizer Supply Scheme. This scheme functioned for a short time and channeled some fertilizers from developed-to-developing countries. However, the multinational chemical industry was strongly opposed for this scheme, and it did not last long.
At the World Food Conference in 1974 in Rome, Sri Lanka proposed an establishment of an International Fund for Agricultural Development (IFAD) specially focusing on irrigation development in poor countries. The proposal for IFAD was adopted on a separate OPEC initiative and it was established for general agricultural development. In the WFC (FAO) archives, the Sri Lankan proposal is listed as document No.1. For her initiatives in the field of food and agriculture, Prime Minister, Mrs. Bandaranaike was awarded the CERES Medal by the FAO.
Let me refer to a feature of Sri Lankan foreign policy making between 1965 and 1977. In 1965, Prime Minister Dudley Senanayake established a new Ministry of Planning and Economic Affairs under him. Dr. Gamani Corea was the Permanent Secretary. This Ministry was entrusted with the task of managing Sri Lanka’s international economic relations including the United Nations. This system continued under Mrs. Bandaranaike between 1970 and 1977. The Ministry of Planning interacted closely with the Foreign Ministry in managing Sri Lanka’s economic relations.
Between 1971 and 1976, prior to the Non-Aligned Summit in 1976, Sri Lanka was actively engaged in the affairs of the Non-Aligned Movement (NAM) and the Group of 77. The Group emerged in the aftermath of the establishment of UNCTAD in 1964. It is a group of developing countries and was expected to manage the negotiations within UNCTAD on what was broadly termed as North-South issues.
The Group of 77 operated mainly in Geneva and within UNCTAD. The NAM operated mainly within the UN in New York. While the G-77 included all developing countries, the NAM consisted only those countries which had no military affiliations with the West. For example, Pakistan and Philippines were not members of NAM. Sri Lanka, prior to the Non-Aligned Summit in 1976, worked closely with the Group of 77 stressing the significance of North-South negotiations on economic issues.
Sri Lanka in the run-up to the NAM Summit stressed more the economic aspects of the movement instead of the political issues of the time. Sri Lanka was anxious to be truly Non-Aligned between East and West unlike Algeria and Cuba – hosts of the fourth and sixth Summits – who were more inclined towards an anti-Western stance.
An understated and not much recognized influence on foreign policy between and 1948 and 1976 was Ceylon/Sri Lanka’s dependence on foreign aid. Bilateral and multilateral aid was a significant part of Sri Lanka’s foreign exchange receipts. Aid flows were mainly from the Western countries or from the multilateral banks which were largely controlled by the western powers.
To give one illustration, in the 1970s U.S. food aid under the PL480 programme amounted to about one-third of all cereal consumption in Ceylon. While Ceylon/Sri Lanka engaged in NAM and Group of 77 politics, its dependence on aid made it necessary that it was truly non-aligned and not anti-Western.
I have written this note from memory. I hope it will be of some use to future scholars.
(Leelananda De Silva, was Senior Asst. Secretary and Director Economic Affairs of the Ministry of Planning and Economic Affairs – 1970 to 1977. He was Secretary General of the Economic Committee of the fifth Non-Aligned Summit)
by Leelananda De Silva
Features
The Paradox of Coercion: US strategy and the global re-emergence of Iran
(A sequel to the two-part article, War with Iran and unravelling of the global order, published in The Island on April 8 and 9.)
The unfolding developments in the US-Israeli coordinated military attack against Iran reveal a striking paradox at contemporary geopolitics: efforts to weaken a state through coercion may, under certain conditions, contribute to its structural elevation within the international system. What appears as short-term tactical success can generate long-term strategic consequences that are neither anticipated nor easily reversible. In this context, the policies associated with Donald Trump and Benjamin Netanyahu, marked by unilateralism and the willingness to use force, risk producing precisely such an unintended outcome. Rather than marginalising Iran, their actions may be accelerating its re-emergence, not merely as a regional actor in the Middle East, but as a consequential player in the global geopolitics and the wider architecture of international supply chains of energy economy.
Iran not merely a state
Iran is not merely a state, but a civilisation with a distinctive political trajectory. At the heart of the present transformation lies its asymmetric strategy, rooted in the strategic exploitation of geography. Few states possess the capacity to shape the global system through geography alone. Iran’s proximity to the Strait of Hormuz, a narrow maritime passage through which a substantial share of the world’s oil and liquefied natural gas flows, endows it with a latent structural power that transcends conventional measures of national capability.
In periods of stability, this position translates into economic opportunity; in moments of crisis, it becomes a lever of systemic disruption. Recent tensions have demonstrated that even limited instability in this corridor can reverberate across global markets, triggering sharp increases in energy prices, disrupting supply chains, and amplifying inflationary pressures worldwide. Should Iran consolidate its capacity to influence or control this chokepoint, whether through military deterrence, asymmetric instruments, or diplomatic maneuvering, it would shift from being a participant in global energy markets to a pivotal arbiter of their functioning.
Energy-embedded global economy
The contemporary global economy is not merely energy-dependent; it is deeply energy-embedded. Hydrocarbons underpin not only transportation and electricity generation but also the production of petrochemicals, fertilisers, and a wide range of industrial inputs essential to modern manufacturing and food systems. Disruptions linked to Iran have already illustrated how shocks in the energy sector cascade through interconnected supply chains, affecting everything from agricultural output to high-technology industries. In this sense, Iran’s leverage is no longer confined to the traditional realm of resource geopolitics. It increasingly operates within a networked global system in which control over a single critical node can generate disproportionate influence across multiple sectors. This form of power, diffuse, indirect, and systemic, marks a departure from the more linear dynamics of twentieth-century oil politics.
The implications of such a shift are profound for the structure of the international order. For decades, the global system has been underpinned by a set of institutions, norms, and economic arrangements often described as the so-called liberal international order. Sanctions, financial controls, and diplomatic isolation have been key instruments through which dominant powers have sought to discipline states that challenge this order. However, Iran’s prolonged exposure to sanctions has compelled it to develop adaptive strategies: alternative trade networks, informal financial channels, and closer ties with non-Western partners. A crisis-induced re-entry into global markets would therefore not signify reintegration into the existing order, but rather the expansion of parallel systems that operate alongside, and sometimes in opposition to, it. In this context, Iran’s rise would contribute to the gradual fragmentation of the global economy, accelerating trends toward decoupling, regionalization, and the erosion of established institutional authority.
Decline of global order based on US hegemony
This process of fragmentation is closely linked to declining global order based on U.S. hegemony. A more globally consequential Iran would inevitably become a focal point in the strategic player in emerging multipolar world. For China, whose economic growth remains heavily dependent on secure energy supplies, deeper engagement with Iran would serve both economic and geopolitical objectives, reinforcing its presence in the broader Middle East and insulating it from vulnerabilities associated with maritime chokepoints. Russia, already positioned as a major energy exporter and a challenger to Western dominance, may find in Iran a complementary partner in reshaping global energy markets and contesting sanctions regimes. Meanwhile, countries across the Global South, including major importers such as India, would face a more complex strategic environment, characterized by heightened exposure to supply disruptions and increased pressure to navigate between competing power centers. In this emerging landscape, Iran would function less as an isolated actor and more as a pivotal node within a reconfigured network of global alignments.
Dynamics enhancing Iran’s strategic importance
Paradoxically, the very dynamics that enhance Iran’s strategic importance may also accelerate efforts to reduce dependence on the conditions that enable its influence. Recurrent energy shocks tend to catalyze policy responses aimed at diversification and resilience. States are likely to expand strategic reserves, invest in alternative supply routes, and accelerate transitions toward renewable energy and nuclear power. Over the longer term, such measures could diminish the centrality of fossil fuel chokepoints, thereby constraining Iran’s leverage. However, this transition will be uneven and contested. Advanced economies may possess the resources to adapt more rapidly, while developing countries remain structurally dependent on affordable hydrocarbons. In the interim, the global system may experience a prolonged period in which dependence on Iranian-linked energy flows coexists with attempts to transcend it—a duality that adds further complexity to the evolving geopolitical landscape.
Beyond material considerations, Iran’s potential re-emergence also signals a deeper transformation of the existing global order. Traditional metrics—military strength, economic size, technological capacity—remain somewhat important, but they are increasingly complemented by the ability to influence critical nodes within global networks. The capacity to disrupt, delay, or redirect flows of energy, goods, and capital can generate strategic effects that rival, or even surpass, those achieved through direct military confrontation. In this sense, Iran exemplifies a broader shift from territorial geopolitics to what might be termed network geopolitics. Control over chokepoints, supply chains, and infrastructural linkages become a central determinant of influence, enabling states with relatively limited ‘conventional’ capabilities to exert outsized impact on the international system.
Iran’s trajectory may be understood as a transition through several distinct phases: from a regional challenger seeking to assert influence within the Middle East, to a strategic disruptor capable of unsettling global markets, and ultimately to a systemic actor whose decisions carry worldwide consequences. This evolution is neither inevitable nor linear; it depends on a complex interplay of domestic resilience, external pressures, and the responses of other global actors. Nevertheless, the possibility itself underscores the unintended consequences of policies that prioritize short-term coercion over long-term strategic foresight.
Transition shaped by paradoxes
In historical perspective, moments of systemic transition are often shaped by such paradoxes. Actions taken to preserve an existing order can, under certain conditions, accelerate its transformation. The current crisis involving Iran may represent one such moment. By elevating the strategic significance of energy chokepoints, exposing the vulnerabilities of interconnected supply chains, and encouraging the development of alternative economic networks, it contributes to a broader reconfiguration of global power. In this emerging context, Iran’s re-emergence as a global actor would not simply reflect its own capabilities or ambitions; it would also embody the structural shifts reshaping the international system itself. What began as an effort to constrain Iran may ultimately facilitate its transformation into a decisive player in the global energy economy and supply chain architecture. The implications of this shift extend far beyond the Middle East, touching upon the stability of markets, the cohesion of international institutions, and the evolving nature of power in the twenty-first century.
The war with Iran is best understood not as a discrete regional conflict, but as a structural moment in the transformation of the international system. It reveals a growing disjuncture between the continued reliance on coercive statecraft and the realities of an interdependent global order in which power increasingly derives from control over critical economic and infrastructural nodes. Rather than achieving strategic containment, the conflict has underscored the capacity of a relatively constrained actor to generate systemic effects through geoeconomic leverage. In doing so, it highlights a broader shift from military-centric conceptions of power toward forms of influence embedded in networks of energy, trade, and supply chains.
This is not merely a redistribution of power, but a redefinition of how power operates. At the systemic level, the war accelerates the erosion of the post-Cold War order, reinforcing tendencies toward fragmentation, parallel economic arrangements, and multipolar competition. Iran’s potential re-emergence as a global actor should therefore be seen less as an isolated outcome than as a manifestation of these deeper structural changes. In this sense, the strategic significance of the war lies in its unintended consequences: it exposes the limits of coercive hegemony while simultaneously amplifying the importance of those actors positioned to exploit the vulnerabilities of an interconnected world.
by Gamini Keerawella ✍️
Features
The dawn of smart help for little ones
How Artificial Intelligence is breaking barriers in Autism Diagnosis and Care
For any parent, the early years are a most valuable countdown of “firsts” of his or her precious child: the first step, the first clear word, the first beautiful smile, and quite a few other firsts as well. Yet for all that, for some families, that joy is overshadowed by a growing, quiet, but disturbing intuition that something is even a little bit different. Perhaps a child is not responding to his or her name, or the little one seems to be more interested in the spinning wheels of a toy than a game of peek-a-boo, or even avoids normal social responses.
In many countries, especially in the developing world, the road from that first “gut feeling” that there is something wrong, to a formal diagnosis of Autism Spectrum Disorder (ASD) is often a long and exhausting journey. While doctors can often identify autism in children as young as 12 to 18 months, the average age of diagnosis in our communities still hovers around four years. In these critical years, when a child’s brain is most like a machine ready to learn and adapt, time is of the essence and is the most valuable resource a family has.
Today, a new “algorithmic dawn” is offering a shortcut to really cut that delay. Artificial Intelligence (AI), the very same smart technology that helps us navigate traffic, suggest a new song, or help people with ChatGPT, is moving out of the lab and into the children’s nursery. By acting as a digital “magnifying glass”, specifically designed AI tools can now spot subtle patterns in a child’s gaze, some little quirks in the rhythm of their babbling, or the way they move, often much faster than the human eye can. Then the machine can issue a warning signal and indicate that further action and a proper evaluation are necessary. This is most certainly not about replacing the brain, the heart and the expertise of a paediatrician; it is about providing “Smart Help” that can be accessed from a smartphone in a family living room. For millions of “little ones on the spectrum”, most notably in the developing world, this technology is turning a journey once defined by waiting, uncertainty and even tears, into one of proactive care and even brighter horizons. The time gained is most certainly a very valuable window of opportunity.
What is the “Spectrum,” and Why Does Time Matter?
Autism is described as a “spectrum” because it affects many children somewhat differently and to varying degrees. Some children may have advanced technical skills but struggle to hold a conversation; others may be non-verbal or have intense sensory sensitivities. It can be very mild or very severe, and perhaps everywhere in between as well.
The common thread is that the brain develops differently in these affected children. This is why Early Intervention is the gold-standard goal. During the toddler years, a child’s brain is incredibly “plastic”, meaning that it is a highly adaptable and ready to learn type of organ. Starting therapy and management strategies during this valuable period of opportunity can fundamentally change a child’s future life path.
The problem, to a certain extent, is that traditional diagnosis of ASD is a slow, manual process. It requires intensively trained experts to watch a child play for hours and fill out complex checklists. In many countries, including Sri Lanka, where there is a massive shortage of these highly qualified specialists, the waiting list for a consultation alone can take months or even years. These doyens are rather thin on the ground and even when available, are heavily overworked.
Enter the AI Revolution: Seeing the Unseen
AI certainly does NOT replace doctors, but it acts like a high-powered magnifying glass. By using “Machine Learning”, computers can analyse massive amounts of data to find tiny patterns that the human eye might miss. Here is how it is changing the game:
1. Tracking Gaze and Smiles
One of the earliest signs of autism is how a child looks at the world. AI “Computer Vision” can analyse a simple video of a child playing. It can track exactly where the child is looking. Does the child look at a person’s eyes when they speak, or are they drawn to the spinning wheels of a toy in the corner? AI can quantify these “social attention” patterns in seconds and add them to a cache of things that ring warning bells.
2. The Sound of a Voice
Did you know that the “music” of a child’s speech can hold clues? AI can listen to the pitch and rhythm (called prosody) of a child’s voice. Children on the spectrum sometimes have a “flat” or monotonic way of speaking. AI algorithms can measure these vocal biomarkers with incredible precision, helping to flag concerns long before a child is old enough for a full conversation.
3. Movement and Play
Repetitive behaviour, like hand-flapping or rocking, are core traits of ASD. Sensors in smartphones or simple video analysis can now categorise these movements objectively. Instead of a parent trying to describe how often a behaviour happens, the application or ‘app’ provides a clear, data-driven report for the doctor.
Innovation at Home: India’s Digital Solutions
The most exciting part of this technology is that it does not require a million-dollar lab. In India, where smartphone use is booming, several “homegrown” apps are bringing specialist-level screening to rural and urban homes alike.
Apps like CogniAble, which give parents a step-by-step intervention plan based on the child’s specific needs, or START, a tablet-based tool used by local health workers in areas like Delhi slums to spot risks via simple games, or LEEZA.APP, which offers free AI screening to remove the “money barrier” that keeps many families from seeking help, or AutismBASICS, which provides thousands of activities and a milestone tracker to help parents manage daily therapy at home, are just a few of the programs in use at present. These tools are “democratising” healthcare. A mother in a remote village with a basic smartphone can now access the same level of screening logic that was once only available in a major city hospital.
Beyond the Diagnosis: A Robot Tutor?
The role of AI does not stop once a diagnosis is made. It is also becoming a tireless “co-therapist.”
For many children with autism, the human world can be unpredictable and overwhelming. AI-powered “Social Robots” or interactive apps provide a safe, predictable environment. These “Robo-Therapists” do not get tired, they do not get frustrated, and they can repeat a social lesson even 100 times until the child feels comfortable.
Furthermore, for children who are nonverbal, AI-powered communication apps serve as a “voice”. These apps use smart technology to predict what a child wants to say, allowing and facilitating them to express their needs and feelings to their parents, even for the very first time.
The Human Element: Proceed with Care
As bright as this dawn is, experts warn that we must move forward carefully and most intelligently.
= Privacy: Because these apps collect sensitive videos and data about children, keeping that information secure is a top priority.
= Cultural Differences: An AI trained on children in the US or Europe might not perfectly understand a child in Sri Lanka. We need “diverse local data” to ensure the algorithms understand our local languages, gestures, and social norms. Many of these programs need to be home-grown or baked at home in Sri Lanka.
= The Human Touch: Most importantly, we need to always remember that AI is a tool, not a replacement. A computer can spot a pattern, but it cannot give a hug, provide emotional support to a struggling parent, or celebrate a breakthrough with the same joy as a human therapist.
A Brighter Future
We are moving toward a world where “waiting and seeing” is no longer, and quite definitely, not the only option for parents. By combining the heart of a parent and the expertise of a doctor with the speed of an algorithm, we can ensure that no child is left behind because of where they live or how much money they have.
The “Algorithmic Dawn” is not just about code and data. It is about giving every child the best possible start in life. It is the main principle on which Hippocrates, the Father of Medicine, all those centuries ago, based all his postulations on how physicians should work.
The “Red Flag” Checklist: 18 to 24 Months
The American Academy of Pediatrics recommends screening all children at 18 and 24 months. If you notice several of these signs, it is time to use an AI screening app or consult your paediatrician.
Communication and Social Cues
= The Name Test: Does your child consistently fail to turn around or look at you when you call his or her name?
= The Pointing Test: By 18 months, most toddlers point at things they want (like a biscuit) or things they find interesting (like a dog). Is your child using your hand as a “tool” to get things instead of pointing?
= The Eye Contact Test: Does your child avoid looking at your face during social interactions or during play or when being fed?
= The Shared Smile: Does your child rarely smile back when you smile at him or her?
Behaviour and Play
= The Toy Test: Does your child play with toys in “unusual” ways? (e.g., instead of rolling a car, they spend 20 minutes just spinning one wheel or lining them up in a perfect, rigid line).
= The Routine Rule: Do they have an extreme “meltdown” over tiny changes, like taking a different route to the park or using a different coloured cup?
= Repetitive Motions: Do you notice frequent hand-flapping, rocking, or spinning in circles, especially when they are excited or upset?
The “Golden Rule” of Regression
Finally, an extremely important rule for concerned parents to follow.
If your little one had words (like “Mama” or “Dada” or “Amma” or “Thaththa” or Thaii/Amma or Appa) or social skills (like waving “Bye-Bye”) and a beautiful social smile etc, and then SUDDENLY STOPS USING THEM, that could be a most significant red flag. In such situations, the standard advice would be: Please consult a doctor immediately.
by Dr B. J. C. Perera
MBBS(Cey), DCH(Cey), DCH(Eng), MD(Paediatrics),
MRCP(UK), FRCP(Edin), FRCP(Lond), FRCPCH(UK),
FSLCPaed, FCCP, Hony. FRCPCH(UK), Hony. FCGP(SL)
Specialist Consultant Paediatrician and Honorary Senior Fellow,
Postgraduate Institute of Medicine, University of Colombo, Sri Lanka.
Features
Governance, growth and our regional moment:Why Sri Lanka must choose wisely
The recent disclosure of a substantial internal fraud at National Development Bank has understandably unsettled the financial community. What began as a relatively contained incident has since been revised upwards, revealing a scheme that operated over an extended period within a specific operational area. To their credit, both the bank and the Central Bank of Sri Lanka responded with speed. Staff were suspended, arrests followed, an independent forensic review was commissioned, and clear assurances were given that customer funds remained secure. The institution’s capital and liquidity positions continue to meet regulatory requirements, and day to day operations have not been disrupted.
Yet it would be a mistake to view this as an isolated operational error at a single respected institution. When a fraud of this magnitude, equivalent to more than a year’s profit for the bank, emerges within one of our most established listed companies, the implications extend well beyond the banking sector. It prompts a necessary and uncomfortable question. Are we truly strengthening the foundations of our economy so that every part of our society can operate with the integrity and confidence that sustainable progress demands?
Banking sits at the heart of any modern economy. It channels savings into investment, supports enterprise, and underpins household security. When even a leading institution reveals weaknesses in internal controls, risk oversight or governance culture, the signal to international observers is difficult to ignore. It suggests that the financial system upon which growth depends may not yet possess the resilience we aspire to project. If institutions that have undergone significant reform since 2022 can still experience such failures, what assurance can investors reasonably expect in other sectors of our economy? At a time when Sri Lanka needs to demonstrate strength and reliability, perceptions of fragility carry a heavy cost.
This matters profoundly because a genuine window of opportunity is now opening. Geopolitical shifts in the Middle East and beyond are prompting global investors and entrepreneurs to seek stable, well governed destinations for capital and talent. Sri Lanka possesses distinct advantages. Our geographical position offers natural connectivity. We have invested in critical infrastructure, including two major ports, international airports and strategic energy reserves. In an era where businesses prioritise rule of law, institutional predictability and sound fundamentals, our potential alignment with these criteria is significant. However, high profile governance failures at this precise moment risk undermining that narrative before it can gain meaningful traction.
The stakes are equally significant for initiatives such as the Port City Colombo. With substantial projects now approved, foreign investment commitments secured and early construction underway, this endeavour is moving from concept to delivery. Yet persistent concerns about governance standards in our established companies can act as a drag on investor sentiment. The confidence required to attract high value international tenants and long- term capital depends not only on physical infrastructure but on the perceived strength of our institutions and the consistency of our regulatory environment.
For decades, Sri Lanka has experienced growth averaging around four to five per cent per year. While this is not insignificant, it falls short of our potential, particularly when measured against the progress of our regional neighbours. India, for example, has sustained growth at roughly twice our rate for more than twenty years, driven by consistent policy execution and strengthening institutional credibility. Our own trajectory has been held back not by a lack of ideas or ambition, but by recurring shortcomings in how our major institutions are governed and held to account. The result is a cycle of unrealised potential, where promising openings are not fully converted into lasting advancement.
The current situation, though challenging, can serve as a catalyst for meaningful change. Boards of listed companies must move beyond procedural compliance to foster a genuine culture of ethical leadership, proactive risk management and zero tolerance for control failures. Regulators have an opportunity to undertake a comprehensive review of fraud prevention frameworks, whistle-blower protections and monitoring standards across the financial sector, with lessons applied to other key industries. Greater transparency in reporting material incidents and more timely forensic follow through will help rebuild trust with both domestic and international stakeholders.
Crucially, the government must tread carefully as it responds. Short term fixes or reactive measures may address immediate concerns but will not deliver the enduring stability that investors seek. What is required is a coherent long-term strategy that balances the imperative for rapid economic development with the equally vital need to conserve our natural environment and strengthen regional cooperation. Our neighbours in South Asia and Southeast Asia offer not only markets for trade and investment but also partners in shared challenges such as climate resilience, sustainable infrastructure and digital connectivity. By deepening these relationships through practical collaboration, Sri Lanka can position itself as a reliable and forward-looking partner in a dynamic region.
Sri Lanka stands at a pivotal moment. Global realignments are creating rare opportunities for capital inflows, technology transfer and new economic partnerships. Yet these opportunities will flow most readily to nations that demonstrate they can protect investor interests, uphold the rule of law and operate with predictability and transparency. If we allow governance weaknesses in our flagship institutions to persist, we risk once again watching potential pass us by.
This is a defining moment, and our response must be equally purposeful. We can treat the recent events as an unfortunate but isolated incident and return to established patterns. Or we can seize this moment as a timely reminder to strengthen every pillar of our economy, with particular attention to environmental stewardship and regional collaboration. Only by getting our house in order, with patience, consistency and a clear-eyed commitment to long term goals, can we convert today’s challenges into tomorrow’s competitive advantage. The path to sustained prosperity demands nothing less.
by Professor Chanaka Jayawardhena
Professor of Marketing
University of Surrey
Chanaka.j@gmail.com
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