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Battaramulla then and some unforgettable characters

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(Excerpted from the memoirs of Rtd. Senior DIG Police Edward Gunawardena)

Ganahena is perhaps the highest area; and St. Mathew’s Anglican Church built in 1850 is located here. Sri Sudassanaramaya the oldest temple in the village is also located on a high location close to Ganahena. These were the only places of worship. There were no Mosques or Kovils. However on the site on which St. Mathew’s Church stands there had existed a Hindu place of worship called the Gane Kovil. I have myself seen large granite columns strewn about in the churchyard. These are no more to be seen. A remarkable feature was the unity in which the Christians and Buddhists lived. In fact no family was wholly Buddhist or wholly Christian. My grandfather once told me that when a Revd. Welikala was the Parish Priest of St. Mathew’s Church, his brother had been the Chief Incumbent of the Sri Sudassanarama temple!

The sub-village place names mentioned above served a very useful purpose particularly because the systematic numbering of houses had not commenced. Persons and places were identified with reference to these places. eg. ‘Ganahena Kanda Uda’, ‘Udumulla lindalanga’, ‘Deniye Simon’, ‘Minuwanvila Carolis’ or Averiwatta Romlas’.

Ownership of land was mainly in small-holdings. But certainly not small by today’s standards. It was not unusual for a family to own an acre or more. Most of these plots were planted with coconut, arecanut and ground crops such as manioc, batala, pepper and even coffee. It is indeed a matter for regret that with the demand for land in Battaramulla in the 80s and 90s and the prices rocketing many of the less affluent decided to sell their lands and move further away from Colombo to places such as Pore, Habarakada and Aturugiriya. The massive influx of the affluent, urban middle class who have built palatial homes has certainly transformed the tranquil, traditional, unspoilt village that I have lived from birth to a crude mix of Cinnamon Gardens and Maligawatta of Colombo. Indeed the face of the village which I have known so intimately from the forties of the last century has changed beyond recognition. Only the name ‘Battaramulla’ remains. The story of Battaramulla over the past five decades is the story of a ‘vanished village’.

Large extents of land were rare; and the few that existed were owned by non-villagers. The present Jayanthipura which originated as a housing project during the premiership of Sir John Kotelawela was a coconut land belonging to the de Livera family. The large extent of land that forms the residential complex of Subuthipura was a rubber plantation belonging to a lawyer by the name of Ebert from Kalutara. The area bordering Lily Avenue off the Robert Gunawardena Mawatha was a rubber land belonging to a Vanlangenberg. During the rubber boom of the late forties and early fifties my father was the lessee of this land. As children we were able to closely observe how the latex was collected and sheet rubber turned out. My parental house and the house in which I live today are on a land that once belonged to the Lady Obeysekera Trust which had been purchased by my father and his two younger brothers in 1931. A substantial part of this eight-acre land is to-date retained by the family.

The land on which the Battaramulla Maha Vidyalaya stands today belonged to the Dassanayake family of Mirigama. Until the time of its acquisition by the Education Department my father was its leaseholder. This was the land on which the four Gunawardena brothers started playing football. Soon other children as well as adults were to join, ultimately leading to the birth of the Wingers’ Football Club. More about football later.

 

Roads and other utilities

The two main roads that traversed the village were the Colombo – Kaduwela Road, and the Pannipitiya Road commencing from the Battaramulla bazaar. The former was better known as the Colombo – Godagama Road. The village stood between the sixth and seventh mileposts on this road. These were the only macadamized roads. The present Parliament roundabout and the road to Parliament and beyond to Pelawatta and to Koswatta did not exist. The present Parliament was built in the eighties. The by-roads of note the Averiwatta Road, the Udumulla Road. and the Korambe Road. were all Village Council (VC) roads and they were all single lane gravel paths.

My father’s residence where I lived with my grandfather, grandmother, my father and my brothers was on the large extent of land that my father had purchased abutting the Korambe Road. From the Ganahena turn off up to the village boundary, was the present Parliament Rd. The others who lived on this road were the Jansens and the Vanlangenbergs on the eastern side and the Wijewickremas, Jamis baas and Obiyas baas on the Western side. James and Obiyas were much sought after village carpenters. The Wijewickrema property which was adjoining our land was occupied later by Roy Perera and his wife who were from Badulla. They were a very amiable couple who were very fond of children. Hema de Silva a nephew of Roy was a regular visitor who became friendly with us and would even take us regularly to see Hindi films. He had just returned after graduating from the London School of Economics and joined the newly created Central Bank of Ceylon.

This road was generally deserted except for the few people from the village of Korambe who travelled to work on foot or to take bus from the Battaramulla bazaar. Most casual labourers came from Korambe. I remember Lewis Aiya, Burampi and Thomis Appu as extremely honest and hardworking. The last mentioned drove our buggy cart. In the nights these people returning home carried chulu lights (hulu athu) and sang loud to scare away serpents from the road. Snakebites were common on these unlit by-roads; and the snake bite specialist (Sarpa vedamahattaya) who lived in Korambe was a much wanted man. He was the brother of the best known Vedamahattaya of Battaramulla, Simon Vedamahattaya.

It was from the Averiwatta (Rajamalwatta) Road that we approached the paddy fields and threshing floors that belonged to my grandfather. Ambalangodella was a substantial extent of paddy land together with a well tended fodder grass land. Cartloads of harvested fodder grass were delivered daily to Elephant House that used bullock carts for the transport of aerated waters.

As children my brothers and I enjoyed working in these paddy fields during the school holidays. Harvesting time was particularly pleasant I still remember even the Kamath language eg. Batha, maduwan, ambaruwa etc. My brother Irwin showed a special liking for the paddy fields and did not shy away from the mud. Fittingly in later life he joined the Agriculture Department and eventually rose to be the Director General of Agriculture.

The Udumulla road which was quite narrow, led through footpaths to the northern fringes of the village, the scanty settlement of Hakurugoda and an extensive patch of thick shrub jungle called Bogahahena. Hakurugoda was characterized by three or four small families of the Jaggery caste. These people integrated well with the rest of the villagers. Being traditionally cooks by profession the men were much sought after at village weddings and other social functions. The women carrying baskets on their heads were a welcome sight. They went house to house with breakfast preparations of string hoppers, pittu and hoppers together with delicious vegetable curries and sambols. During the New Year time everybody looked forward to their Kevum, Kokis, Aasmi, Helapa etc.

Two landmarks that I distinctly remember on the Udumulla road were the public bathing well and an elevated garden of mangosteen trees with a fashionable house. The occupant of these premises was an elderly English gentleman by the name of Meaden. He had been a former civil servant in the colonial administration.

Another important footpath that I often used as a short cut, connected the Pannipitiya road from near the present Indrajothi Vidyalaya with the Sri Sudassanarama Temple. On this narrow by-way was located a coconut land where the Hamers lived. Opposite this land was a home for destitute dogs which was very caringly and efficiently run by an energetic English lady by the name of Mrs. Bartlam. I remember visiting this place that was well known as the ‘Balu Madama’ with a parcel of buns for the dogs. There were several others too from the village who had brought food for the dogs.

In the late forties there was no electricity in the village. Some shops and a few affluent households used Petromax lamps. Most people used kerosene lamps with chimneys. Bottle lamps were widely used. Hurricane lanterns were used for outdoor activities while cyclists used carbide lamps. We as children were not allowed by our father to study by kerosene light. He saw to it that the four brothers used candies. Even today whenever lights fail I make do with a candle.

There was no refrigerator or any other electrical appliance in our home. It was common to preserve fish or pork in salt. Delicious preparations were made of salted fish or salted pork. T

The butter, bacon and sausages that my father brought were salted and did not need refrigeration. It is no exaggeration to say that the bacon or sausages sold today are insipid compared to what we ate then. Whenever my father brought ice cream, the container was packed in dry ice. Although rare, whenever an Elephant House van had to pass the village, apart from two or three crates of aerated waters a few chunks of ice were delivered to our home. Making our own ice cream with milk, eggs and mango juice in a manually operated churner was great fun.

There was no water service or drainage. All households had wells and well kept pit latrines. Water for household use was kept in earthenware pots. Boiled drinking water was also stored in earthen decanters. It was a practice for most households by the road to have a large pot of water covered with a coconut shell for the use of thirsty wayfarers.

 

Schools

In the forties and the fifties there were only three schools in the village. The Christian Missionary School situated in the premises of St. Mathew’s Church which to-date remains a popular institution for juniors is perhaps the oldest. Even a century ago this school had been well known for discipline. My grandfather used to relate many stories about the headmaster of the time by the name of Hendrick Gurunanse. Children feared him so much that the mischievous ones wore gunny sacks under their sarongs. He had been a firm believer in the dictum “Spare the rod and spoil the Child”. His son H.D.L. Perera better known as Lennet Ralahamy was the Headman of Battaramulla until the Grama Sevaka system replaced the headman system.

The Indrajothi Vidyalaya on the Pannipitiya road had about four class rooms and three or four teachers. Today this is a popular school catering mainly to the expanding population on the Pannipitiya road to Pelawatta and beyond. This school and the Christian Missionary School which are government schools today, being on limited space have no land for any further expansion. At Mampewatta on the land of Henry Boteju a prominent local politician was situated a small school that was known as the YMBA School. The land adjoining my father’s property which was held by the latter on lease was acquired by the Education Department to accommodate the YMBA School. Fortunately for Battaramulla and the entire locality this school developed rapidly to become the present Sri Subhuthi Madya Maha Vidyalaya catering even to children from Colombo. The role played by the late M.D.H. Jayawardena when he represented the Kaduwela electorate and was a senior minister in the Dudley Senanayake government of 1965 in the development of this school will never be forgotten by the people of Battaramulla.

The English language was not taught in any of these schools. As a result before the Maha Vidyalaya took shape children wanting to learn English attended the Kotte Bangalawa School which subsequently became the Kotte Christian College.

My grandfather had come to know Rev. Dowbiggin, the head of the Christian Mission in Kotte. In fact the latter had succeeded in converting him to Christianity. My father and his two younger brothers had attended this school and been successful in the English School Leaving Certificate Examination (ESLC). Incidentally it was the son of Rev. Dowbiggin, Herbert Dowbiggin, who after his education at Trinity College Kandy and Cambridge became the Inspector-General of Police.

 

Transport & Retail Facilities

Travel to work or to school or places away from the village, particularly to Borella and Fort was by bus. Buses were few in number and belonged to the Colombo Omnibus Company. It was also called the B.J. Fernando Bus Company. The bus crews were extremely polite and even knew the regular travelers personally.

Travelling in the open bodied buses was fun. The Battaramulla terminus for the Borella buses was at the present turn off to the Battaramulla cemetery. As school children we were particularly fond of the bus that was driven by Yahonis Aiya. He was a very kind driver who was caring and helpful to the children. ‘Checker’ Patrick Aiya who usually travelled in this bus was also a friendly and amiable sort. Not long ago, in the mid eighties I often met Yahonis on my walks. He was old but strong enough to ride a bicycle. He never failed to get off the bicycle; and I made it a point to have a brief chat with him. He took great pride in the fact that the DIG Metropolitan traveled in his bus as a child. His funeral in the village of Korambe was well attended.

Fish and vegetable vendors who were mainly womenfolk also brought their goods from the Pettah market in these passenger buses. Baskets of fish and vegetables were accommodated on the hoods of buses and the loading and unloading was done by the conductor. He considered this as a part of his duty. Most passengers returning from Colombo after work also brought their vegetables, fish and meat in bags made of reeds as polythene bags were not even known at that time. Restrictions on this free and easy manner of transport of consumables commenced with the introduction of buses with fully enclosed bodies which were known as ‘Nelson body’ buses at the time.

 

Use of Bicycles

Cycling was a popular means of transport. Most people used bicycles to travel to their workplaces in Colombo. So did the children particularly boys in their teens to travel to schools such as Christian College Kotte, Wesley, St. Joseph’s and Ananda. The bicycles were all imported brands —Raleigh, Humber and Hercules. They were quite costly. As a result the theft of bicycles was a common occurrence. It was such a nuisance that bicycle theft was considered a ‘grave crime’ by the police. It was necessary for the OIC of the police station to visit the scene of theft and also report such theft to Police Headquarters. Every office, school and even shops had bicycles stands for parking bikes. At almost all the places reserved for the parking of bicycles there were warning boards in red, ‘Beware of Cycle Thieves’.

During the war because motor vehicles were not allowed to drive with their head lights on when the ‘black out’ regulation came into force it was difficult to spot cyclists ahead. As a result all bicycles apart from a rear reflector were compelled to paint the lower section of the rear mudguard white.

Much police time on the roads was spent on taking up offenses of cyclists. Riding without lights was considered a serious offense. Most cyclists used carbide or oil lamps until the dynamo became popular. Carrying a passenger on the bar or doubling and riding abreast were the other offenses that were detected by police. Most culprits were schoolboys. I remember having being detected ‘doubling’ on at least three occasions. However on all these occasions I was to plead with the sergeant or constable and escape being charged. One reason was because I made it a point to address the detecting officer as ‘Sir.’

I was once ‘doubling’ a friend, who in later life became a member of the Ceylon Civil Service (CCS) and was detected at Maradana. The sergeant let us go. But he deflated the tyres and asked us to push the bicycle home!

There was another friend of mine who adopted a unique ruse. Whenever he was detected he gave his name as ‘Abraham Lincoln’. In his carrier basket the three exercise books on top carried this name. He also gave a false address. Often he made it a point to be at the Maligawatta Courts on days that these cases were usually heard to enjoy the fun when the name Abraham Lincoln was called loud by the court Mudaliyar. This exceptional prankster in later life became a President’s Counsel and an Ambassador. That was at least 25 years before the National Identity Card was introduced.

 

Goods Transport

There were no vans, double cabs, tractors or landmasters in the village. It was rarely that a lorry was seen. Transport of all types of goods was by bullock carts which were in plenty. It was a common sight to see handcarts being pushed along with vegetables, young coconuts (Kurumba) etc.

My grandfather had two bullock carts in addition to a passenger carrying tirikkale which he enjoyed driving. The bullock carts that were kept in our premises were used mainly for the transport of paddy, coconuts and rubber. Occasionally these carts were hired to cover the expenses of the carters and the cost of fodder for the cart bulls.

Even large business establishments such as Elephant House and the Colombo Commercial Company used bullock carts. The former used bullock carts extensively for the transport of aerated waters whilst the latter transported building materials to their work sites in bullock carts.

In the late forties and early fifties Uncle Sam, my fathers younger brother had a licensed tea cider manufactory in Battaramulla. This became a popular alcoholic drink particularly in the estate areas upcountry. It was a common sight to see hundreds of bullock carts lined up to load tea cider crates to be transported to destinations in the Kandy, Ratnapura and Kalutara districts.

It was a highly profitable business, but Uncle Sam gave up this business as his wife, Auntie Florence, was not very happy with the production of an alcoholic beverage. She was the daughter of a leading Baptist minister and Principal of Carey College, Revd. W.M.P. Jayatunga. Subsequently Uncle Sam began the manufacture of mirrors which turned out to be a successful venture. His son, the late Herschel Gunawardena, became a well known astronomer.

 

Retail Trade

There was only one grocery store of note in the Battaramulla bazaar. This belonged to an Indian by the name of Abraham. Vegetables and fish were mainly sold by women seated on the roadside. There were so many such roadside vendors that the bazaar resembled a fair. Women carrying baskets of vegetables, dry fish etc. also visited homes regularly.

My father purchased provisions for our home monthly from a wholesale grocery in Welikada, W.D. Paulin Appuhamy & Sons. The bulk of the goods that came in a bullock cart from Welikada consisted of poonac and kollu, a seed akin to cowpea, as fodder for our cart bulls and the large herd of cattle that roamed our land. The cows in this herd yielded adequate milk for our home consumption. The breakfast of each of the four brothers, before leaving for school was a large mugfull of hot milk mixed with two eggs and sugar. Even the eggs were from the free run poultry in the garden.

The only shop that sold clothing and other personal goods like shoes, slippers etc. was Rajamoney’s also in the Battaramulla bazaar. However cloth as well as numerous other personal requirements ranging from shoes, sarongs, banians & socks to items such as mirrors, combs and soaps were brought by Chinese and Moor traders to the door step.

The ‘China man’ who pushed his bicycle along with a large bundle of cloth on the luggage carrier and the Moor man wearing a fez with several coloured umbrellas hung on the handlebars were regularly seen on our road. They were both good humoured men who happily tolerated the annoyance caused to them by mischievous children. I still remember how the China man pretended to be angry and threatening when children shouted, “Cheena booku, booku, chinare” and ran away.

The man carrying a bread basket was a welcome visitor to our home. The black barrel shaped basket with a pyramidal cover kept the bread and buns fresh and warm. Apart from bread and buns he brought popcorn sugar coated balls and fresh thala ‘gull’. During the week-ends, when we did not have to rush to school, we looked forward to the visit of the ammes’ who brought breakfast preparations of string hoppers, hoppers, pittu etc. Curries made of kebella leaves and gotukola with maldive fish were delicious indeed.

Electricians and plumbers were unheard of in the village. Of course there was no electricity or water service. Obiyas Bass and Jamis Bass were excellent carpenters. Appuhamy from the village of Korambe was a much sought after mason and Coranelis who was partially deaf was the painter that my father always employed for the colour washing of our walls. The village blacksmith was also a busy man. He was well known in the village as Mattha. Our ‘dhoby’ or laundryman who was addressed as ‘Hene Mama’ was an elderly man from Korambe who visited our home every week. I remember him contacting leprosy and ending up at the Leprosy Hospital, Hendala.



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Features

Oil prices rise like rockets, fall like feathers (if you’re lucky)

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Crude oil is the lifeblood of the global industrial economy, yet the journey from a subterranean reservoir to a litre of petrol at the forecourt involves a cascade of physical transformations, commercial transactions, and fiscal interventions that profoundly shape who bears the cost, and how much. A sudden shift in the world market price of crude, whether triggered by OPEC+ supply discipline, geopolitical disruption, or a demand shock, does not translate uniformly into consumer prices across the globe. The consequences are systematically different, depending on a country’s tax policy, exchange rate, efficiencies in refining processes, distribution processes and dependence on energy imports.

The Refining Process: From Crude to Finished Products

Crude oil is a naturally occurring mixture of hydrocarbons and its chemical composition varies by field: Heavy sour crudes from Venezuela, or Saudi Arabia, require additional processing, raising refining costs by USD 2–5 per barrel. One standard barrel contains approximately 159 litres.

Crude oil is preheated to approximately 370–400°C and the operating principle exploits differences in boiling points. The resulting fractions, collected from top to bottom, include: light petroleum gases (LPG) boiling below 40°C; naphtha and gasoline fractions in the 40–205°C range; kerosene and jet fuel between 175°C and 275°C; diesel and gas oil from 250°C to 350°C; and atmospheric residue above 350°C which is then processed in a vacuum distillation unit to recover further distillates, including lubricating oil base stocks.

Primary distillation alone is insufficient to meet market demand. Gasoline demand far exceeds the natural yield of the distillation cut. A modern complex refinery achieves the following approximate product yields from a light sweet crude: petrol/gasoline ~45%; diesel/gasoil ~25%; kerosene/jet fuel ~10%; LPG ~5%; heavy fuel oil ~10%; and other by-products ~5%. These ratios shift with crude quality and refinery configuration, and response differently to crude price changes.

The Crude Truth: How Oil Prices Punish the Poor Twice

An accounting perspective reveals a waterfall of costs, each layer added by a distinct economic actor and subject to a distinct set of market forces and regulatory interventions. A companion of the approximate cost structure for a litre of petrol at the retail level, assuming a crude oil price of USD 70 per barrel (approximately USD 0.44 per litre of crude equivalent), between advanced and emerging economies, can be explained in four layers:

Layer 1 — Crude Oil Cost (~51% of Retail Price)

The foundation of every fuel product is the crude oil acquisition cost. At USD 70/barrel, the raw material cost embedded in one litre of refined petrol is approximately USD 0.44. This figure includes wellhead lifting costs, field operating expenses, royalties, and sovereign resource taxes paid to the producing country, as well as freight and insurance for ocean tanker shipment.

For emerging economies, without domestic refining capacity, or with currencies that are not freely convertible, this layer is doubly exposed: a crude price increase is compounded by any simultaneous depreciation of the local currency.

Layer 2 — Refining Margin (~20% of Retail Price)

The gross refining margin, measured by the industry’s standard 3-2-1 crack spread;

Crack Spread (gross refining margin) = (2×Gasoline Price) + (1×Diesel Price) − (3×Crude Price)

Critically, this gross figure must not be confused with profit. A refinery typically uses 6–8% of its own crude input as process fuel, and significant variable operating costs. This gross refining margin, the difference between the value of products produced and the cost of crude, varies considerably with market conditions.

In advanced economies with large, integrated refinery systems, these margins are moderated by competition and long-term supply contracts. In emerging economies, dependent on a single import refinery or on product imports rather than crude, refining costs are effectively set by the international product market, leaving little domestic control over this cost layer.

Layer 3 — Distribution and Marketing (~11% of Retail Price)

Refined products must travel from the refinery gate to the consumer through a distribution network involving primary pipelines or product tankers, regional storage terminals, secondary truck distribution, and retail fuel stations. In advanced economies, this infrastructure is mature, privately operated, and highly efficient, contributing a relatively stable USD 0.05–0.10 per litre to the retail price. In many emerging economies, the distribution infrastructure is fragmented, underdeveloped, or state-controlled, introducing additional costs, quality inconsistencies, and opportunities for rent-seeking. In Sri Lanka, for instance, the state-owned Ceylon Petroleum Corporation has historically cross-subsidised distribution costs, masking the true economic cost until subsidy withdrawal forced rapid price adjustments in 2022.

Rent-Seeking is extracting value without creating value; essentially corruption and inefficiency

Licensing corruption:Limited fuel station licenses create artificial scarcity; Licenses sold/traded at premiums; Political connections needed to obtain licenses

Quality adulteration: Consumers pay for “petrol” but get lower-quality mix

Quota manipulation:Subsidised kerosene (meant for poor households) diverted to diesel mixing; Creates black markets during shortages

Phantom costs:

Layer 4 — Taxation (18–60% of Retail Price)

Taxation is the most variable, politically sensitive, and analytically important layer in the cost structure. In advanced economies a high tax bases serve a dual purpose: generating substantial fiscal revenue and acting as an automatic price stabiliser. When crude rises, the absolute tax component remains constant, so the percentage of the price attributable to crude increases less than proportionately at the retail level.

In contrast, emerging economies historically imposed low fuel taxes or active subsidies, particularly for diesel, LPG, and kerosene used by low-income households. Sri Lanka’s fuel tax component, prior to the 2022 crisis, was, they claim, effectively negative in real terms due to administered pricing below cost.

The Impact of a Crude Price Increase: Advanced vs. Emerging Economies

For example, if crude oil rises from USD 70 to USD 85 per barrel, an increase of approximately 21.4%. The mechanisms by which this shock is transmitted to consumers, and the capacity of economies to absorb or redistribute it, diverge dramatically along the advanced/emerging economy divide (Table 1).

Absorb shocks through tax relief

Advanced economies possess well-established fiscal frameworks that enable them to absorb temporary commodity shocks through tax relief, targeted transfers, or direct subsidies without compromising fiscal sustainability. Research by the Center for Global Development (2026) estimates the median fiscal cost of shielding consumers from the crude price increase of USD 15 scenario at approximately manageable cost of 0.4% of GDP for advanced economies.

Emerging economies face median fiscal costs of approximately 0.9% of GDP — effectively double. For Sri Lanka, entering the 2022 energy crisis with near-zero foreign reserves, even a temporary subsidy was fiscally impossible, forcing an immediate and politically destabilising pass-through of the full price increase to consumers. The lesson is stark: the ability to smooth out a commodity price shock across time is itself a function of prior fiscal strength, making the poor more vulnerable precisely because their governments are already under strain.

Inflation Pass-Through and Monetary Policy Credibility

The second transmission mechanism operates through the consumer price index and central bank behaviour. In advanced economies, fuel typically represents 3–5% of the CPI basket, and central banks enjoy high credibility in anchoring inflation expectations.

In emerging economies, fuel and food together often constitute 40–60% of CPI baskets, and central banks have historically struggled to maintain credible inflation targets. A 21% crude price increase translates into a far larger initial CPI shock. Worse, the loss of inflation credibility means that workers and businesses adjust wages and prices preemptively, generating persistent second-round inflation (> Double). To defend its inflation target, the emerging economy central bank must raise interest rates aggressively, simultaneously raising the cost of borrowing for businesses and governments, a painful policy dilemma in an economy already under stress.

Structural Current Account Vulnerability

The third and perhaps most structurally significant difference lies in the current account and foreign exchange dynamics. The advanced economies hold large reserve currencies and deep financial markets that allow them to finance import cost increases without immediate exchange rate pressure.

Sri Lanka, by contrast, allocated approximately 23% of its total import bill to petroleum products. A USD 15/barrel price increase instantly widens the current account deficit of these economies, depleting foreign exchange reserves. As reserves fall, currency markets anticipate further depreciation, precipitating speculative selling of the domestic currency. The resulting exchange rate depreciation, potentially 5–15% in a shock scenario, multiplies the cost of crude imports in local currency terms. A 21% USD price increase thus becomes a 28–39% local currency price increase at the refinery gate, before any refining, distribution, or tax component is added. This vicious cycle; crude price rise → reserve depletion → currency depreciation → amplified import cost → further reserve depletion, is a hallmark of emerging economy energy crises, and Sri Lanka’s 2022 experience illustrated it in extreme form.

Double bind when crude rises and subsidised

Countries that have historically subsidised fuel face a double bind when crude rises: the subsidy bill expands sharply (as the gap between subsidised price and market cost widens), while fiscal space contracts. The International Monetary Fund has consistently recommended subsidy reform, allowing fuel prices to reflect market cost while protecting the poor through direct cash transfers, as the fiscally sustainable path. Sri Lanka’s forced price liberalisation in 2022 (under IMF programme conditions) illustrate both the political difficulty and the macroeconomic necessity of this adjustment.

The Asymmetry of Oil Price Responses: Advanced vs. Emerging Economies

Advanced economies enjoy bidirectional flexibility in responding to oil price volatility; prices rise and fall with crude markets, leaving fiscal positions largely neutral. Emerging economies, by contrast, face a structural trap: when crude rises, subsidy bills explode, draining public finances; when crude falls, governments retain windfall savings to offset accumulated deficits rather than passing relief to consumers. Sri Lanka’s cycle from collapse to liberalisation to renewed subsidies illustrates this vividly. Underlying this is a political economy ratchet, price hikes are unavoidable, but reductions are politically captured, making permanent reform structurally elusive.

(The writer, a senior Chartered
Accountant and professional banker,
is a professor at SLIIT, Malabe. Views expressed in this article are personal.)

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Eshan Malinga keeps getting them in the second half

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Malinga took 4 for 32 against Delhi Capitals, his best bowling figures of the season so far [BCCI]

Life keeps throwing hurdles in his way, but Eshan Malinga keeps vaulting over them. Take his February from hell. For several months, Malinga had been building up to his first ever World Cup, a dream for pretty much anyone who ever picks up a cricket ball. But a week before that World Cup, Malinga dislocated his non bowling shoulder while bowling, which the team’s medical staff have since described as a freak injury they had never seen before.

“I was devastated,” Malinga says. “On top of it being my first World Cup, it was also at home and I didn’t know when I would get that chance again. There were a few days there where I did absolutely nothing.”

And yet in mid-May, here he is grinning from atop a pile of 16 IPL wickets,  having developed a serious reputation as a reverse-swing operator. Sunrisers  Hyderabad’s  explosive batters may have seized the spotlight in this frenetic IPL, but on the bowling front, no SRH bowler has neared Malinga’s wicket haul, which is fifth best in the season overall.  In a year in which they have not had Pat Cummins for seven of their 11 matches, it is Malinga who has held down the fort,  particularly in the second half of the innings.

But trading difficulty for success is just what Malinga does. What he has long been doing. Go back eight years and Malinga had never played a hard-ball cricket match. On top of which his home district of Ratnapura – at the base of Sri Lanka’s central hills – was better known for its gems and waterfalls than cricket, never having produced a men’s international. Malinga, additionally, was not even actively trying to be a cricketer. He had moved from his first school in a village called Opanayake to Ratnapura’s Sivali Central College due to strong academic results, and found, almost by accident, that his new school had a hard-ball cricket team.

But what Malinga knew at that point was that he could bowl fast. That much had been obvious growing up in Opanayaka, where despite his mother’s occasional misgivings, Malinga was highly sought after by the organisers of the village softball team (Sri Lanka has a thriving village-level softball cricket ecosystem). And as had been the case with the better-known Malinga, this one was also aware he possessed a killer yorker – a prized asset in every form of cricket, with any kind of ball.

If he’d been on track to be a softball legend, Malinga found his horizons began to expand at a spectacular rate the moment he got a hard ball in his hands. First, his yorker and his pace began to reap big wickets in the Division Three schools competition for Sivali Central, whose coach had immediately hoisted him into the team upon seeing Malinga bowl at practice one day. Then in mid-2019, about a year into playing hard-ball cricket, came the day he still reflects on as the one that changed his cricketing life. Having missed a fast-bowling competition in Ratnapura because he had been playing for his school that day, Malinga travelled to the hill town of Badulla to bowl in the competition there, and clocked 127kph on the gun, which was enough to win him first place.

This was when he first became a blip, however faint and distant, on Sri Lanka Cricket’s radar. Visions of a cricketing life began to appear as wisps of opportunity began to materialise. The next few years, Covid-riddled though they were, became a crash course into the sport for Malinga. There were coaching camps in Colombo in which the best of the rural talent was trained up and funnelled into a programme at the next level up. There were trials for first-class teams, and eventually a fledgling domestic career.

“I don’t know how many times I came to Colombo from Ratnapura during those times,” he laughs now. “It was a lot! I would leave home at about 3am, and the bus journey to Colombo took about three-and-a-half hours. Then I’d train or play the match, and the bus back home always took longer because of traffic. So every day, I was on the road for more than seven hours.”

The Malinga who made these exhausting daily commutes was, as far as the Sri Lankan cricket system was concerned, a bowler of decent rather than blinding promise. His pace had propelled him to the top of the regional pool, but at the first-class level he was still adapting his yorker and slower ball (another weapon he had developed in his softball days). If he needed another gear, Malinga found it – again almost by accident – sometime in 2022.

“I was playing an Under-23 three-day tournament, and I remember that being the first time I really started reverse-swinging the ball,” he says. “Coaches had anyway told me that with my action and my pace, it should be possible. But it started almost automatically. It’s not something I had to learn.

“But it wasn’t that easy, because it was a long process to learn how to control it. To get reverse swing, you have to release the ball at a different point than a straight ball, because you want it to still hit the stumps when it is swinging. So I scuffed up a lot of balls and trained hard to get that line right.”

And so, the Malinga that emerged at the end of 2022 had sharp enough pace, an excellent yorker, a developing slower ball, mountains of homespun tenacity, and had also discovered that he can naturally reverse-swing the ball earlier in an innings than most. You could have seen where this is going, right? All the ingredients of an ace white-ball bowler were there. And Malinga was already a master of turning wisps of opportunities into tangible advances. Over the next three years, he’d land a spot in the national fast-bowling academy, use that as a trampoline to impress in an Emerging Teams three-dayer against Bangladesh, and from there bounce into a stint at the MRF Pace Academy in 2024, before on the franchise side of things parlaying a trial at Rajasthan Royals at Kumar Sangakkara’s invitation into a decent run at the SA20 for Paarl Royals.

Having leapt up to the fringes of the Sri Lanka team over the past 18 months, Malinga has at this IPL now seized another unusual chance. The square at SRH’s home stadium is among the barest and most abrasive in the league, and Malinga’s reverse swing has prospered upon it. Of his 16 wickets this season, 11 have come at home. In the second half of the innings, when the ball is most likely to reverse, Malinga’s economy rate is 8.37 at a venue where runs have been scored at 9.38 in that period this season.

Malinga had put in a robust 2025 season for SRH as well, so there is a body of work emerging there. Perhaps this is why this year, SRH’s bowling plans have tended to follow the contours of Malinga’s own game.

“After six overs the ball gets damaged here, so we needed to make use of that. When I bowled at practice, the ball reversed, so I think a plan emerged where we were going to use the scuffed up ball and take advantage of that.

“In the first powerplay the ball comes on to the bat nicely here. After that we try to get the advantage of having an older ball. We’ve got bowlers who bowl 140kph-plus, and we have Pat Cummins, who also reverses the ball. So we make sure to look after the ball in a way that will give us reverse.”

At 25, eight years into a serious cricket career, Malinga sees himself as a work in progress. He wants to work on his powerplay bowling. His variations, he thinks, still need some work. He’d like to play Tests, where his reverse swing could really stretch its legs. And, oh, he is still waiting to play that first World Cup.

Even here, his keen nose for opportunity leads him. He points out through the course of our conversation that where the three previous World Cups had been played with a new ball at either end being used right through the innings, the next World Cup, in 2027, will feature rules that seem at least partially designed to enhance reverse swing, an older ball more suited to the craft now available towards the end of the innings.

He isn’t even a sure-fire pick in Sri Lanka’s ODI XI just yet, so this is just a flicker of an opportunity for now. But having made the journey from the village of Opanayaka to the most raucous cricketing showpiece on the planet, Malinga knows just what to do with those.

[Cricinfo]

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High Stakes in Pursuing corruption cases

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Kapila Chandrasena

The death of the most important suspect in the Sri Lankan Airlines Airbus deal has drawn intense public speculation. Kapila Chandrasena the former CEO of the heavily loss-making national airline was found dead under circumstances that the police are still investigating.

He had recently been arrested by the Commission to Investigate Allegations of Bribery or Corruption in connection with the controversial Airbus aircraft purchase agreement signed in 2013. Police investigations are continuing into the cause of death and whether or not he committed suicide. The unresolved death brings to light the high stakes involved in accountability efforts of this nature.

The uncertainty surrounding Chandrasena’s death has revived public memories of other mysterious deaths linked to corruption investigations and public scandals. Among them is the death of Rajeewa Jayaweera, a former SriLankan Airlines executive and outspoken critic of the Airbus transaction. He was following in the tradition of his father, the late foreign service officer and public servant Stanley Jayaweera who mentored the younger generation in good governance practices and formed the group “Avadhi Lanka” along with icons such as Prof Siri Hettige. Rajeewa had written a series of articles exposing irregularities in the deal before he was found dead near Independence Square in Colombo in 2020. The CCTV cameras in that high security area were turned off. Questions raised at that time whether or not he had committed suicide were not satisfactorily resolved.

The controversy about the cause of Chandrasena’s death is diverting attention away from the massive damage done to the country by the SriLankan Airlines deal itself. The value of the aircraft agreement was close to the size of the International Monetary Fund bailout package that Sri Lanka desperately needed by 2023 in order to stabilise the economy after bankruptcy. Sri Lanka’s IMF Extended Fund Facility amounted to about USD 3 billion spread over four years. The comparison shows the scale of the losses and liabilities that irresponsible and corrupt decisions have imposed on the country and which must never happen again.

Wider Pattern

The corruption linked to the Airbus transaction came fully into the open only because of investigations conducted outside Sri Lanka. In 2020 Airbus agreed to pay record penalties of more than EUR 3.6 billion to authorities in Britain, France and the United States to settle global corruption investigations. Sri Lanka was identified as one of the countries where bribes had allegedly been paid in order to secure contracts. The Airbus deal involved the purchase of six A330 aircraft and four A350 aircraft valued at approximately USD 2.3 billion. Investigations showed that Airbus paid bribes amounting to nearly USD 16 million in order to secure the contract. According to court submissions, at least part of this money amounting to USD 2 million was transferred through a shell company registered in Brunei and routed through Singapore bank accounts linked to the late airline CEO and his wife.

The commissions involved in this deal may seem comparatively small compared to the overall value of the contracts but devastating in their consequences. But they also show that a few million dollars paid secretly to decision makers could lead to the country assuming liabilities worth hundreds of millions or even billions of dollars over decades. This is why corruption is not simply a moral issue. It is a direct economic assault on the living standards of ordinary people. Money lost through corruption is money unavailable for schools, hospitals, rural development and job creation. In the end the burden falls on ordinary citizens who are left to repay debts incurred in their name without receiving commensurate benefits in return.

The SriLankan Airlines transaction gives an indication of the wider pattern of corruption and misuse of national resources that has taken place over many years. This was not an isolated incident. There were numerous large scale infrastructure and procurement projects that imposed heavy debts on the country while enriching politically connected individuals and their associates. Other projects such as the Colombo Port City, Hambantota Harbour and highway construction reveal a similar pattern.

Less publicised but equally damaging scandals have involved fertiliser medicine and energy contracts. Investigations into medicine procurement in recent years uncovered allegations that substandard pharmaceuticals had been imported at inflated prices causing both financial losses and risks to public health.

Moral Renewal

The present government appears determined to investigate major corruption cases in a manner that no previous government has attempted. Those who ransacked and bankrupted the treasury need to be dealt with according to the law. There is considerable public support for efforts to recover stolen assets and ensure accountability.

In his May Day speech President Anura Kumara Dissanayake stated that around 14 corruption cases were nearing completion in the courts this very month and called upon the public to applaud when verdicts are delivered. Political opponents of the government claim that such comments could place pressure on the judiciary and blur the separation between political leadership and the courts. But the deeper public frustration that underlies the president’s remarks also needs to be understood.

The challenge facing Sri Lanka is twofold. The country must ensure that justice is done through due process and independent institutions. If anti corruption campaigns become politicised they can lose legitimacy. But if corruption and abuse of power continue without consequences the country will remain trapped in a cycle of economic decline and moral decay. Sri Lanka also needs to confront past abuses linked to the war period. There are allegations of kidnapping, extortion, disappearances and criminal activity in which members of the security forces have been implicated. Vulnerable sections of the population suffered greatly during those years. If political leaders turned a blind eye or actively connived in such crimes they too need to be held accountable under the law. Selective justice will not heal the country. Accountability must apply across the board regardless of political position, ethnicity or institutional power.

Sri Lanka has paid a very heavy price for corruption and impunity. The economic collapse of 2022 did not occur overnight. It was the result of years of bad governance, reckless decision making, abuse of power and the misuse of public wealth. If the country is to move forward the focus cannot be diverted by sensational speculation alone. Suspicious deaths and political intrigue may dominate headlines for a few days. But the larger issue is the system that enabled corruption to flourish without accountability for so long. The real national task is to end that system. Sri Lanka cannot build a prosperous future on a foundation of corruption and impunity. Unless those who looted public wealth are held accountable and the systems that enabled them are dismantled, the country risks repeating the same cycle again.

Jehan Perera

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