Features
Avoiding IMF won’t help us avoid austerity

by Naqiya Shiraz and Rehana Thowfeek
Sri Lanka’s debt problems are a topic of national conversation. Foreign reserves, low at USD 4bn in May 2021 fell to USD 2.8bn after the most recent bond repayment of USD 1bn in July 2021 . The government claims that the timely repayment of the bond is proof that doomsayers were wrong and that it indicates a robust economy. Is this correct?
While it is true that a default has been avoided thus far it does not necessarily mean that the economy is sound. The recent bond repayment comes at a cost: a foreign exchange squeeze. Bond holders are being repaid, but this means that foreign exchange that could otherwise have been used for imports are now being used to pay bond holders instead.
The government seems to be adamant in avoiding the bogeyman, the IMF, perhaps to avoid the tough medication an IMF programme will bring. Yet avoiding the IMF does not mean we can escape the inevitable austerity that will follow. Austerity is in fact already upon us, in the form of restricted imports. The restrictions are denying essential inputs to the local economy and medicines and food to citizens. These restrictions work in two ways:
1. The outright restrictions on imports
2. The shortages of foreign exchange in the market
The government has banned or restricted imports of what is termed “non-essential” items although the list includes goods like some clothing items, refrigerators and food items ( live fish, tomatoes for example).
In addition, Central Bank’s attempts to control the rate of exchange have resulted in shortages of foreign exchange. The Central Bank has decreed an official rate of around 200/- but only limited amounts are being converted at these rates resulting in a shortage of hard currency.
Banks are now rationing foreign exchange with the result that even items that are not banned are becoming unavailable.
“We cannot accommodate the requests for LCs so we have to ration them,” a banker said. “There is no regulation to say to ration them, but we are forced to do it.”
Sri Lanka rupee, forex markets in pickle as LC rationing froths
The import restrictions were supposed to be restricted to luxury items but the currency shortage means that even medicine and some food items seem to be running short
While foreign bondholders will undoubtedly be pleased to have been repaid, local consumers and businesses must now suffer, making do without everyday products. The shortages in supply mean that prices rise: of whatever available imported products as well as local products.
This affects not only consumers, but also businesses. With banks being unable to open a Letter of Credit (LC’s), imports of intermediate goods, even exports by SME’s which have no access to BOI facilities are at risk.
Unable to trade or operate due to lack of stocks or input material, import dependent businesses are losing out. The net result is an overall decline in economic activity and welfare of all Sri Lankans.
A person interviewed for this report explained the difficulty in obtaining asthma medication for his mother. He had to try four different pharmacies to get the required drugs. He said that he believes larger stores have fewer stocks available as the volume of people going to them is much higher.
Another respondent said chemotherapy drugs brought in from Europe were no longer available with only cheaper products from India, Bangladesh or Argentina being available. As he had no other choice he used the substitutes for part of his wife’s chemotherapy treatment but was worried about the quality and safety.
The knock on effects of these are palpable. Prices of basic goods are increasing. Inflation in January 2019 according to the NCPI was 127 index points which increased to 146 in June 2021. That means prices have increased by 15% in little over two years as a whole. But prices of essential food prices have increased by a lot more. Food inflation particularly has dramatically increased by 25% (NCPI). According to the Advocata Institute’s Buth Curry Indicator, prices of food that would be consumed in a buth curry meal have increased by 45% from July 2020 to July 2021.
The effects don’t end there. Importers of seeds were complaining that their sales have dropped by 50% because of uncertainty over fertiliser imports. These importers bring in seeds that are not produced in Sri Lanka, for vegetables like beetroot and carrots. Sales have fallen as they are not being purchased by domestic farmers. Farmers are holding back from cultivating due to the uncertainty caused by the shortages of fertilisers needed for production. A consequence of this would be shortages and rising prices of fruits, vegetables and other produce in the coming months. This will not only affect farmers’ incomes but also result in higher consumer prices. The government may have to resort to importing more food, thereby negating the impact of the fertilizer ban to begin with. Only recently, the cabinet approved the importation of 6000 metric tonnes of rice from Pakistan to manage the shortage in the market.
This fertiliser fiasco has affected the poor disproportionately. Larger businesses are able to stock up on fertiliser, but not everyone can afford to do that. It’s the small farmers that lose out on income. The incomes of these small farmers are in jeopardy. Coupled with the milk powder and gas shortage, prices of these essential commodities are forced to increase at an already difficult time.
Economic policy affects the ordinary person in a society. These may be individual stories but they are certainly not one off situations.
The fact of the matter is that the country is undergoing a self-imposed austerity program in the form of import restrictions and more recently a foreign currency shortage that has resulted in the rationing of even items that are not subject to control.
The basic principles of economics cannot be ignored in policymaking. By avoiding the IMF for fear of austerity measures, has resulted in more damaging self-imposed austerity. We need to ask ourselves how sustainable this really is in the long term. The longer we wait, more stringent austerity measures will be needed.
Rehana Thowfeek is an economics researcher by profession. She has a MSc in Economics from the University of Warwick and a BSc in Mathematics and Economics from the University of London. She has worked previously for Sri Lanka-based think tanks; Verité Research and the Institute for Health Policy. At present she works for a US-based food technology company as a researcher. Naqiya Shiraz is the Research Analyst at the Advocata Institute and can be contacted at naqiya@advocata.org.
Learn more about Advocata’s work at www.advocata.org. The opinions expressed are the author’s own views. They may not necessarily reflect the views of the Advocata Institute, or anyone affiliated with the institute.
Features
Virulence of identity politics underscored by rising India-Pakistan tensions

In the wake of the ‘leave India’ order issued to all Pakistani nationals in India by the Indian centre, the authorities in India’s Madhya Pradesh are reportedly up against a troubling dilemma with regard to what they must do with the offspring of Pakistani fathers and Indian mothers. In other words, of what nationality are they: Indian or Pakistani?
Such challenges could be confronting quite a few states in India in view of the likely widespread presence of mixed origin children in the country but the tangle helps to also highlight the harmful impact identity politics are continuing to wield on India, South Asia’s most successful democracy. Given its official democratic and secular identity, India would need to steer a policy course on this question that would indicate a rising above narrow nationalistic politics by the centre.
It is in fact a testing time for India. Given its democratic credentials the observer would expect the Indian centre to take a broad, humane view of the matter and allow the children to stay on in India, since the situation is not of the children’s making. If eviction orders are issued on the children as well narrow identity politics could be said to have won in India. However, this is entirely a matter for the central government and would be resolved by it in keeping with what it sees as its national interest currently. Hopefully, India’s enlightened national interest would be heeded.
Such policy dilemmas over a person’s true national identity, decades into India’s ‘political independence’, point to the persistence of challenges central to nation-making in the country. But such challenges are continuing to be faced by the entirety of South Asia as well.
All over the region, divisive identity politics are continuing to challenge the credentials of those states that are claiming to be democratic. Would they say ‘no’ emphatically to those political forces that are championing narrow ethnic, religious and language identities, for example, and steer a policy course that would be faithful to secularism and equity in all its dimensions?
This is the question and it could be of course posed to Sri Lanka as well, whose current government is claiming to work towards the establishment of a polity that is free of ethnic and religious nationalism. Democratic opinion in Sri Lanka would like to have concrete evidence that it is genuinely committed to these ideals.
Thus is a re-visit of the founding ideals of India and other democracies of the region being prompted by the current crisis in India-Pakistan relations. The conflict ideally ought to prompt democracies to question to what degree they are truly democratic and take the necessary measures to put things right on that score.
If nation-making in the truest sense has occurred in South Asia we of the region would not be having on our hands the currently endemic and wasting identity-based conflicts and wars. Nation-making is rendered possible when equity in all its respects is practised by states. It is the surest means to national integration and unity. The majority of states of South Asia are nowhere near these goals.
The fillip it may provide identity based discord in the region could be counted as one of the relatively slow-acting but dangerously insidious effects of the present India-Pakistan confrontation. The current, dangerous war of words between the sides, for instance, would only serve to intensify the populist perception that the region is seeing a vastly invigorated Hindu India versus Islamic Pakistan polarity. However, in the immediate term, it is a hot war that ought to be guarded against.
As mentioned in this column last week, a regional initiative towards resolving the conflict would prove ideal but since SAARC is currently in a state of virtual paralysis, Commonwealth mediation emerges as the next best option to explore in working out a negotiated solution.
Unfortunately, UN mediation, although desirable in this crisis is unlikely to prove entirely effective in view of the possibility of the major powers using such intermediation to further their partisan interests. Going forward, the UN General Assembly would need to take note of these considerations and figure out as to how it could play a constructive role in peace-making and insulate itself against interference by major powers.
Comparatively, the Commonwealth of Nations could prove more balanced in its managing of the confrontation. This is on account of the formation being widely representative of the developing world and its main interests. However, well-meaning groupings and individual states that have generally insulated themselves to big power manipulations could prove effective in these peace-making efforts as well. The need is for an in-gathering of countries that place peace in South Asia above partisan, divisive interests.
Given India’s major power status and its crucial economic interests worldwide it could be justifiably surmised that the April 22nd terror attack on civilians in Indian-administered Kashmir was deliberately planned to cause the greatest harm to India. The setback India’s tourism industry may suffer, for instance, should be taken cognizance of.
Besides, the strategy was also to ignite another round of religious riots in India and outside. Given these considerations it should not come as a surprise if the Indian political leadership sees it to be in India’s interests to initiate a tough response to the attack.
However, a military response could prove extremely costly for India and the region, as pointed out in this column last week. The negative economic fallout from a new India-Pakistan war for the region and the world could be staggering. The disruptions to the supply chains of the countries of the region from such an outbreak of hostilities, for instance, could be prohibitive and bring the countries of the region to their knees.
A crucial need is for politicians in both India and Pakistan to think beyond their short term interests. Quick military action could yield some perceived short term gains for these politicians but in the long run the South Asian region would be reverted to the position that it was in, in the mid- forties of the last century: a region dismembered and divided against itself.
Stepped-up peace efforts by civilian publics on both sides of the divide could prove enormously beneficial. Besides other things, these civilian groupings need to work tirelessly to curb the fatal influence identity politics wield on politicians and publics.
Features
The Broken Promise of the Lankan Cinema: Asoka & Swarna’s Thrilling-Melodrama – Part IV

“‘Dr. Ranee Sridharan,’ you say. ‘Nice to see you again.’
The woman in the white sari places a thumb in her ledger book, adjusts her spectacles and smiles up at you. ‘You may call me Ranee. Helping you is what I am assigned to do,’ she says. ‘You have seven moons. And you have already waisted one.’”
The Seven Moons of Maali Almeida
by Shehan Karunatilaka (London: Sort of Books, 2022. p84)
(Continued from yesterday)
Swarna’s Obsession with Manorani
Swarna was clearly fascinated by Manorani Sarwanamuttu. She has noted the striking, angled close-up photograph of Manorani’s face, eyes closed, head thrown back, dressed in a black sari with a large white print and her hair held in place as usual with a spray of Jasmine, at the public cremation of Richard’s body on an open pyre. A brilliant public theatrical riposte, fearless. I think Lucien de Zoysa was standing beside her.
Swarna mentions a detail she observed during one of her four visits to meet Manorani, beginning in 1996, dressed with her hair tied in a low knot adorned with Jasmine flowers as Manorani usually did, as some Tamil women do. She said that she saw Manorani ‘gulp down her tears (kandulu gilagatta).’ Her response to what she saw clearly puzzled her as a Sinhala mother. So, her response in enacting her as Rani was to offer the opposite in her portrayal of Manorani. In her rendition of Asoka’s Rani (Queen) she indulged in a limited melodramatic gestural repertoire, perhaps imagining that Manorani had ‘repressed’ her sorrow. Therefore, she, Swarna, was doing her a favour by finally enabling the ‘return of the repressed,’ through her Melodramatic rendition of her Rani.
A Cosmetic Tamilness
The red pottu functioned as the seal for the white scroll invitation to the premier and in the advertisement to dot the ‘I’, in Rani. As well, a close-up of Rani pasting on a red pottu after having delivered a baby, emphasises it as a marker of difference. This is a cosmetic use of Tamilness without any idea of the multi-ethnic Ceylonese social milieu in which she grew up.
Used adjectively, ‘Cosmetic’ implies superficial measures to make something appear better, more attractive, or more impressive but doesn’t change anything structurally.
The saris worn by Swarna as Rani and her styling are clearly chosen by her as she has a professional knowledge of Indian handloom cotton saris which she once sold at an exclusive boutique in Colombo. Interestingly, young women emulated Swarna’s excellent taste in a certain Indian look which is very flattering too. There is a lovely photograph of her with a pottu and draped in Indian cotton sari with a choker necklace, a low-key elegance. It is also the look that Shyam Benegal, coming to film from advertising, popularised with Shabana Azmi in their films together; a ‘Festival of India’ look. This styling was part of the ‘fiction’ determined by Swarna and her tastes and had no relationship to Manorani and her tastes. It’s the marketability of a rather exotic and strange (aganthuka she said) upper-class woman, dressed up as a ‘Tamil,’ that appears to have been the main ‘design objective’ in choosing costumes and accessories.
al Melodramatic Scene Construction
Asoka’s ‘fictional’ (Prabandhaya) scenes and narration are composed using melodramatic devices; coincidences, sub-plots, climaxes, sudden reversals, revelations and the like. Here I am engaging Asoka on his own terms, arguing that his ‘fiction’ as fiction, has not been constructed well. That is to say, that the ‘fictional world’ Asoka has constructed is not believable, feels false in the way many of our early melodramatic genre films felt artificial. It is wholly inadequate to create the violent political context for the main story.
But those simple films never claimed the status of art, their simplicity, their sarala gee, their naive characters, part of their faded charm. There are Sinhala film fans who are professional journalists I have listened to online, who still express their deep love of those films, the song sheets, hearing them on radio and records, that whole cinematic experience.
Rani with its orchestral score for solemn moments, Rani pacing up and down, smoking furiously at troubled moments, framed at the window with smoky mood lighting, are all hackneyed devices which fail to express a sense of interiority, they are just ‘cosmetic’ superficial, cliched gestures of a hundred melodramas globally. Swarna’s Rani’s drunken dance scene with Richard and his friends has a forced quality, stagy. Rani’s driving scene looked like a drive in a studio with a projected white wall as the outside, again felt unreal and pointless except to show that she dared to go into a kade to buy cigarettes. The play within the film of Asoka’s much-loved Magatha felt very clunky, therefore for specific melodramatic plot points; ‘Rani’s irritation with Sinhala theatre and the opportunity to see Gayan being assaulted without stopping to help as mother and son drove back home. Then the same moral is underscored, as simplistic melodramas always do, when her own neighbours also don’t do anything when they see Richard being abducted.
This kind of melodramatic moralism does a disservice to the intelligence and sophistication of those Lankans who created the multi-ethnic Aragalaya/Porattam/Struggle in 2022, who have appreciated immensely Manuwarna’s film Rahas Kiyana Kandu both in Lanka and here in Australia. Rani’s Christianity is used again to stage a symbolic scene with the stained-glass window image of ‘the sorrowful mother Mary holding her son’s body’, and to recite the famous biblical lines which are quite inappropriate for the context. Absalom was a traitor to his father King David and fought against him and died in battle. King David spoke those lines when his son died. It has no connection with a mother’s relationship to her murdered son who wasn’t guilty of anything. It’s just a cheap ‘poetic’ touch that sounds solemn, a ‘cosmetic’ use of the Hebrew Bible.
Sinhala cinema time and time again makes a female character Christian when she behaves ‘badly’ that is, sexually promiscuous, takes an independent initiative, as though Christianity with its ‘western values’ are the cause of behaviour considered immoral from the point of view of the good Sinhala Buddhist girl. A popular male critic went so far as to say that Rani shows Lankan men that there is nothing wrong with women drinking and smoking.
Talking of girls, the sub-plot line with the sweet and innocent young girl whose child is delivered by Rani is straight out of Melodrama which often needs an ‘innocent girl stereotype’ to contrast her with another kind of femininity, worldly, lax. The orchestration of the coincidence of a birth with Richard’ death through ‘parallel montage’ is one of the staple editing devices of Melodrama and police thrillers. The innocent young mother’s sentimental story about the crush she has on Richard and the relationship between Rani (who has been friendless) and her over time feels tacked on, artificial, to find a ‘bitter-sweet’ melodramatic narrative resolution on the beach, with ‘HOPE’, writ large.
Perhaps this is why when a well-prepared young Lankan Australian podcaster with a special interest in acting, interviewing Swarna, attempted to ask her about the criticism back home about the construction of the character of Rani, she sharply interrupted him in mid-sentence, to say, ‘those things are not worth talking about, a waste of time … we have made a good film, well directed, edited…’.
Swarna’s normally affable manner changed, and the interviewer politely agreed with her and she went on to conduct the interview herself, informing us of screening several of her films at a festival in Calcutta. The implication of this arrogant move is that an actor with that record couldn’t possibly have made a dud.
It’s just not cool for actors to praise their own films. Let the public, critics, academics and cinephiles make their judgements which are their democratic prerogative, pleasure and professional work. The critical reception has been unprecedented and the Social Science Journal, Polity’s special Issue on Rani is essential reading.
I do wish Swarna Mallawarachchi many more moons (than the 7 Moons destined for Maali Almeida), to explore what Eugenio Barba called The Secret Art of the Performer. In Shehan Karunathilaka’s The 7 Moons of Maali Almaida (which provided the epigraph for my piece), this phantom figure Maali plays multiple roles of the actor called Richard de Zoysa. Notably, that of Malinda Albert Kabalana, in the ‘In-between Worlds’ haunted by the phantoms of Rajani Thiranagama and the multitude of anonymous victims of that era of political terror in Lanka.
Shehan had clearly read Martin Wickramasinghe’s Yuganthaya and seen Lester’s film, where Richard de Zoysa played the idealist son Malinda Albert Kabalana to Gamini Fonseka’s conservative, capitalist father. He has also done a formidable amount of research into recent Lankan political history and then transformed that History into an Allegory. Melodrama as a genre structurally, simply does not have the formal power that inheres in Allegory to represent History in ruins, unless one has been able to create, as Fassbinder did, a Brechtian Melodramatic Cinema. If not, one ends up exploiting political histories of violence and suffering, to create thrillingly sensational Melodramas that play well to the box office but are freighted with emptiness. It is Frederick Jameson, the highly influential Marxist Literary critic, who once said that the best of ‘Third World Literature’ was allegorical, thinking of Marquez’ One Hundred Years of Solitude and closer to home, Rushdi’s Midnight’s Children.
I hope Swarna will allow herself some time to reflect on the Dr Manorani Sarwanamuttu that her own phantasy-Rani has suppressed. Perhaps she has played the formidable roles of the angry and the furious, ‘avenging women’ for too long. Vasantha who studied ‘true crime’ deeply, also astutely showed us through Swarna as a mature woman in Kadapathaka Chaya, where the relentless pursuit of ‘REVENGE’ can lead an individual. And we see its results at a national scale in these eras of terror. In this process of taking stock, Swarna might also think a little about Rukmani Devi and perhaps hunt down the booklet she had written called Mage Jivitha Vitti. ‘Vitti is different from ‘Jivitha Kathava’. In this way she just might begin to understand deeply, affectively, as only an actor worthy of that name can, the reserve, dignity, grace, lightness, joy and yes, the sense of theatre, with which Dr Manorani Saravanmuttu and Rukmani Devi faced the many ‘slings and arrows of outrageous fortune’ as professional women of Lanka who were also Tamil. (Concluded)
by Laleen Jayamanne
Features
A piece of home at Sri Lankan Musical Night in Dubai

The much-anticipated Sri Lankan Musical Night was held recently in the heart of Downtown Dubai, at the Millennium Plaza Hotel.
Reports indicate that the venue was transformed into a vibrant enclave of Sri Lankan culture, unifying the power of music and the enduring spirit of the Sri Lankan diaspora.
The band DOCTOR, from Sri Lanka, was very much in the spotlight, blending traditional Sri Lankan melodies with contemporary rhythms, evoking nostalgia and delight among the audience.
In addition to Lanthra Perera’s vibrant performance, the supporting artiste, too, made it a happening scene with their energetic and exciting vocals; Sajitha Anthony, I’m told, mesmerised the audience with his soulful voice; Rajiv Sebastian, a crowd favourite, both here and abroad, displayed his professionalism and energetic presence on stage; Nushika Fernando’s captivating act was widely applauded. Sudewa Hettiarachchi did the needful as compere.
Sri Lankan Musical Night was organised by DJMC Events in collaboration with Event partners Chaminda De Silva and Romesh Ramachandran.

The band DOCTOR
DJMC Events Chairman Dunstan Rozario’s vision and dedication were vividly evident in every aspect of this show. His passion for creating cultural platforms that unite communities through entertainment resonated throughout the evening, setting the tone for an event dedicated to unity and celebration.
Beyond the musical performances, the occasion served as a dynamic gathering for the Sri Lankan community in the UAE. Attendees, from long-time expatriates to recent arrivals, found common ground in shared songs and stories, creating an atmosphere imbued with warmth and belonging.
Feedback from attendees was overwhelmingly positive, with widespread enthusiasm for more culturally enriching events in the future. One attendee aptly captured the essence of the evening, stating, “Tonight, we didn’t just listen to music; we felt a piece of home.”
DJMC Events plans to build on this momentum, further promoting Sri Lankan culture in the UAE and internationally.
Plans are already being laid out for future happenings to celebrate and preserve Sri Lanka’s rich cultural heritage.
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