Opinion
Bloated public sector – a major impediment to development
Minister Kanchana Wijesekera has publicly stated that the Ceylon Petroleum Corporation (CPC) and the Ceylon Electricity Board (CEB) have employees far in excess than required for the normal functioning of these institutions. For instance, Ceylon Petroleum Storage Terminals Ltd., has 4,200 employees where only 500 are required, and the CEB has around 26,000 employees when half that number is sufficient. He also admitted that Rs. 3 billion has been paid as overtime for the workers at the Petroleum refinery at Sapugaskanda last year.
Politicians of all colours and hues have filled these institutions regularly with their supporters, beyond cadre provisions, leading to the current disastrous situation. The politicians only consider their future political survival, and not the economic well-being of the country. These result in a massive loss to the Government, since these loss-making entities have to pay the salaries and overtime to unproductive employees, which invariably come from the Government coffers. Successive governments have taken the easy way out, by requesting the Treasury to bail them out, resulting in an extra burden to the general public in the form of indirect taxes in purchasing consumer goods. None of our leaders had the courage to control the despicable acts of ministers who continue to fill non-existing vacancies in Government Institutions. The taxes collected either directly by the Internal revenue department, and indirectly from each and every citizen during purchasing household items from the market, go to maintain these white elephants. Money which can otherwise go into development projects, to buy medicines for the hospitals or repairing school buildings, end up to pay the salaries and overtime of idling workers at institutions such as the CPC and the CEB. These institutions suffer losses of billions of rupees, and our politicians continue to exploit these unnecessary appointments hoping they can win future elections with these political appointees.
This phenomenal curse is not restricted to only CEB and CPC, it is rampant in virtually all government departments, semi-government corporations and boards, and politicians are directly responsible for the bloated public sector. The Secretary to the Ministry of Public Administration stated on television that annually one trillion (1,000 billion) rupees is spent on paying salaries of public sector employees, and the number of employees can be reduced to one-third of its present number without affecting the services provided. Some of these institutions are full of directors and managers who are neither directing nor managing the institutions.
There are also a large number of redundant Corporations and Boards, which can be easily closed. Boards and Corporations with unnecessary duplication of duties are common. There is the State Pharmaceutical Corporation and a State Pharmaceutical Manufacturing Corporation, which can easily be amalgamated to a single entity. There is Paranthan Chemicals Ltd. which earlier ran the now defunct Paranthan Chemical Factory, still exists, with their only job now is importing chlorine gas for use by the Water Board. Why the Water Board cannot directly import chlorine is the thousand-dollar question. There is the Ceylon Petroleum Storage Terminals Ltd. which can be managed by the CPC, and the Fisheries Harbour Corporation which can be under the Ceylon Fisheries Corporation. Multiple organisations are created solely for the politicians to appoint their friends and political supporters to positions such as Chairmen and other jobs on these boards.
The biggest burden on our tax payers is SriLankan Airlines, which has made every citizen in Sri Lanka indebted to the tune of around Rs. 18,000. It made profits under Emirates management until 2008, and that year it recorded a profit of Rs. 4.4 billion. When a former president and its entourage were refused seats on an already fully booked flight, the government decided to send Emirates home, and appoint a person with no knowledge on aviation management as Chairman. From 2008, SriLankan Airlines has been making losses, and the accumulated losses as revealed at a COPE meeting was a staggering Rs. 372,015 million. It also revealed that a senior management official has been paid a monthly salary Rs. 3.1 million, and several others earning salaries of over Rs. 1 million, and no wonder why the daily loss for the airline is Rs. 84 million, and our Treasury has been pumping money to this loss-making venture ever since this was acquired by the Sri Lankan Government. In 2022 alone, till April it suffered a colossal loss of Rs. 248 billion. Excessive politicisation and wasteful expenditure are often cited as the reasons for such losses, but our leaders are not doing anything to control such excesses. This is unpardonable.
If we take the case of the CEB, the first quarter of 2022 reported a loss of Rs. 65 billion, and the losses incurred during the period 2010-2019 are over 240 billion rupees. CEB has been taking refuge in politically linked unions to hide their inefficiencies and waste, and blocked 4000 MW of non-conventional renewable energy (NCRE) including mini-hydro, wind, solar and biomass. Had these been given approval, 800 MW of NCRE could have offset 400 million litres of diesel fuel annually, and the net financial savings to CEB will be Rs. 37 billion. The losses incurred by the CEB are primarily due to the use of expensive sources to produce energy, such as diesel and emergency power purchases at exorbitant rates from the private sector. CEB management is keen to purchase emergency power for obvious reasons. A senior CEB official is under scrutiny for emptying the Randenigala reservoir to reduce hydropower generation – so that they can purchase emergency power from their friends who own private power plants.
The other reason why CEB is incurring losses is due to excessive staff and the exorbitant salaries paid to its employees. The Board of Management of the CEB is a law unto themselves with scant disregard for Cabinet decisions and finance ministry circulars. They are a government within a government, and carry on actions contravening government directives. It is alleged that some senior engineers at CEB receive a take-home pay of around Rs. 900,000 a month with all kinds of allowances such as travel, site inspection, outdoor duties, overtime, fuel advance, telephone bill reimbursement, bonus and gratuities. Metre readers are said to get around Rs. 120,000 each a month including overtime, and drivers around 116,000 each. It is said that they get an allowance for reading the metre correctly too! These employees are entitled to EPF and ETF and their income tax is also fully paid for by the CEB. This is highly irregular, since a certain percentage of the salary has to be deducted from an employee for the EPF, while the Institution too contributes a larger share to this amount.
Most semi-government institutions such as universities deduct 10% of workers’ salaries for the EPF while contributing 15%. There is a Supreme Court decision against the payment of PAYE tax by the CEB to its employees. Until recently they have disregarded this court decision and paid the income tax of its employees. It is also amazing how an employee with a 20-year service, gets a pension paid by the CEB for a lifetime in spite of getting the EPF and ETF. Again, it is the lack of action by the ministers in charge of CEB and the Finance Ministry, which has allowed these illegal payments. High-handedness of trade unions, and an equally ineffective Board of Management, are responsible for such daylight robberies of public funds.
During a strike in 2012, engineers of the CEB were able to maintain power supplies with the help of manpower workers who were outsourced. However, all these manpower workers were absorbed into the permanent staff by the then President Maithripala Sirisena for political gain amidst fanfare, and all these workers join the unions and resort to trade union action now at the drop of a hat.
What is even more astonishing is that the CEB, which is one of the biggest loss-making institutions, pays annual bonuses and grant salary increases owing to a collective agreement with the unions of 25% every three years. Now, these unions are demanding a 36% salary increase, and they are so strong that the government meekly surrenders to their demands, creating severe salary anomalies with other similar workers in the government.
The CPC is another loss-making institution, where the daily loss is Rs. 551 million, but it also pays three annual bonuses, at a cost of Rs. 1,500 million, to its 5,200 employees; and the annual overtime payments alone stand at around Rs. 300 million. At the same time CPC owes about Rs. 750 billion to banks. Bonuses are meant to reward achieving high level targets and not for day-to-day functions.
It remains to be seen whether Minister Wijesekera can bring about a radical change to correct these gross anomalies. Earlier too, former Minister Patali Champika tried to rectify some of the illegal procedures, but he was transferred due to objections to a controversial coal tender. He blamed the coal mafia with links to the government. Unless these problems are sorted out without relenting to the unreasonable demands of unions, such colossal losses will continue to be a burden to the general public. What is needed is a complete privatisation of these loss-making entities. Trade unions are bound to object to privatisation because they cannot earn such high salaries and allowances. The general public of this country should support moves aiming to reduce losses if the country is to stand on its feet, instead of going around with the begging bowl.
Retired academic
Opinion
Can a punishment-free child become a threat to Sri Lankan society?
Children are the future of every nation, and the values they learn during childhood shape the society they will eventually lead. In Sri Lanka, where family traditions, respect for elders, and social responsibility have long been important cultural values, the way children are raised remains a topic of great interest. In recent years, many parents and educators have moved away from traditional forms of punishment and embraced more child-friendly approaches to discipline. While protecting children from physical and emotional harm is essential, an important question arises: can a child who grows up without any form of punishment or consequences become a threat to Sri Lankan society?
To answer this question, it is necessary to understand the difference between punishment and discipline. Punishment is often associated with penalties imposed for wrongdoing, while discipline refers to teaching children self-control, responsibility, and respect for rules. Modern child psychology generally discourages harsh physical punishment because it can cause fear, anxiety, and resentment. However, completely removing consequences for inappropriate behavior may create a different set of problems.
Sri Lankan society has traditionally emphasized discipline within the family. Parents, grandparents, and teachers have often played active roles in guiding children’s behavior. Respect for elders, obedience, and good manners have been considered important virtues. While some traditional disciplinary methods may no longer be acceptable, the underlying principle of teaching accountability remains relevant.
A child who never faces consequences for wrongdoing may struggle to understand the boundaries that exist in society. For example, if a child is allowed to insult others, damage property, or ignore rules without correction, they may develop the belief that their actions have no consequences. Such attitudes can become problematic when the child enters school, the workplace, or the wider community.
Sri Lankan schools already face challenges related to student discipline. Teachers often report difficulties in managing classrooms where some students refuse to follow instructions or respect school regulations. When children are not taught accountability at home, educational institutions may find it harder to maintain a productive learning environment. This can affect not only the individual student but also classmates whose education is disrupted.
Another concern is the development of entitlement. A child who is never told “no” may come to believe that personal desires should always be fulfilled. In a society where cooperation and mutual respect are essential, such attitudes can lead to conflicts with peers, teachers, employers, and even family members. Sri Lanka’s social fabric depends heavily on community relationships, and individuals who fail to respect others can weaken these bonds.
The influence of social media and modern technology has added another dimension to this issue. Today’s children have access to information and entertainment on an unprecedented scale. Without proper guidance and consequences, some may misuse technology, engage in cyberbullying, spread misinformation, or develop unhealthy habits. Parents who avoid setting limits may unintentionally expose children to risks that affect both personal development and social well-being.
The workplace offers another example of why accountability is important. Sri Lanka’s economic development depends on a workforce that is disciplined, responsible, and capable of working with others. Employers value punctuality, respect, and professionalism. Individuals who grow up without learning responsibility may find it difficult to meet these expectations, affecting both their personal success and the productivity of organizations.
However, it is equally important not to interpret this argument as support for harsh punishment. Research has shown that excessive physical or emotional punishment can have serious negative effects on children. Fear-based parenting may produce obedience in the short term but can damage confidence, trust, and mental health in the long term. Therefore, the solution is not stricter punishment but more effective discipline.
Positive discipline provides a balanced alternative. It involves setting clear rules, explaining expectations, and applying fair consequences when those rules are broken. For instance, if a child neglects schoolwork, they may lose certain privileges until responsibilities are fulfilled. If they damage property, they can be required to help repair or replace it. Such consequences teach accountability while preserving the child’s dignity.
Sri Lankan parents, teachers, and community leaders all have a role to play in nurturing responsible citizens. Families should create environments where children feel loved and supported but also understand that actions have consequences. Schools should encourage character development alongside academic achievement. Religious and community organizations can reinforce values such as honesty, compassion, and respect for others.
A balanced approach is especially important in a rapidly changing society. As Sri Lanka continues to modernize and integrate with the global community, young people must learn not only their rights but also their responsibilities. Freedom without responsibility can lead to selfishness, while discipline without compassion can lead to fear. The challenge is to find the middle ground.
A punishment-free child can become a concern for Sri Lankan society if the absence of punishment also means the absence of discipline and accountability. Children who never learn consequences may struggle to respect rules, authority, and the rights of others. However, harsh punishment is not the answer. The most effective approach combines love, guidance, clear boundaries, and fair consequences. By raising children who understand both freedom and responsibility, Sri Lanka can build a future generation that strengthens society rather than threatens it.
Saumya Aloysius
(An essayist, children’s writer and freelance writer who holds a Master’s Degree in Sociology from the University of Kelaniya)
Opinion
SriLankan Airbus struck by lightning
On Friday 12 June, 2026, a SriLankan Airlines Airbus 330 was en route from Colombo to Sydney, Australia was about 45 minutes into its flight when a loud bang was heard, accompanied by a blinding flash. In what was assumed to be a lightning strike, the airplane’s left (No. 1) engine was damaged, forcing the aircraft to return to BIA-Katunayake, where it landed safely.
Lightning travels from cloud to cloud or cloud to ground. Because the aircraft is not electrically ‘grounded’, or ‘earthed’, it must have been in the path of the thunder bolt purely by chance. There is also a phenomenon whereby the aircraft may travel through an electrically charged atmosphere (for example a cloud) where an electrical charge could build up and strike, or be emitted, as lightning. In such an instance, pilots hear electrical static in their headsets before the strike. Usually, when lightning strikes an aircraft in flight, the electrical charges remain on the outside, as on a ‘Faraday’s Cage’ apparatus, and the passengers and crew are perfectly safe.
To help the efficient and safe discharge of static electricity from the airplane’s structure, static wicks, or static dischargers, are fitted at the trailing (rearmost) edges of the wings and tail surfaces. When an airplane has landed after a lightning strike, ground engineers count the number of wicks that may have been burnt out to ensure that a minimum (recommended) number is available for a subsequent flight. Sometimes, there is minor damage, like pitting of the paintwork at the points where the charges left the aircraft.
The last instance in the USA of an airplane believed to have been lost due to a lightning strike was on December 8, 1963, when a Pan Am Boeing 707-121, en route from Baltimore, Maryland to Philadelphia, Pennsylvania, suffered a fuel tank explosion, later determined to have been the result of a lightning strike. Since then, aircraft have been rendered immune from lightning damage thanks to extensive research conducted by manufacturers using high-voltage currents.
Interestingly, modern airliners have electronic instrument displays which don’t even flicker when the aircraft is struck by lightning. By a process of connecting all the metallic parts, known as ‘bonding’, the entire fuselage effectively becomes a protective cocoon, so electrical charges caused by lightning will always reside on the outside of the aircraft.
What is unusual in the recent SriLankan Airlines incident is the extent of damage to the left engine. Did it encounter hail or ingest something?
Only a thorough, independent inquiry by aviation safety investigators will reveal the cause.
GUWAN SEEYA
Opinion
Beyond diagnosis: A strategic design for 7% growth by 2029 (Part I)
“Vision without execution is hallucination.” – Thomas Edison
Introduction: Stabilisation Is Not Transformation
Sri Lanka has come a long way since the economic collapse of 2022. Inflation has been brought under control. Foreign reserves have improved. Debt restructuring has advanced. Government revenue has increased significantly through taxation reforms. The exchange rate has stabilised, and confidence has gradually returned to financial markets.
These achievements deserve recognition.
However, stabilisation should not be confused with economic transformation. A patient discharged from intensive care is not necessarily healthy. Likewise, an economy that has escaped collapse has not necessarily achieved sustainable prosperity.
The central economic question facing Sri Lanka today is no longer how to avoid another crisis. Rather, it is how to achieve sustained economic growth of at least 7% per annum by 2029.
Unfortunately, much of the current policy debate remains trapped in economic diagnosis. Policymakers, economists, and commentators repeatedly identify familiar problems: (i) low productivity, (ii) weak exports, i(iii) Inadequate innovation, (iv) poor competitiveness, and (v) insufficient investment. While these diagnoses are correct, they are not new.
Sri Lanka now needs economic engineering.
The country requires a clear, measurable, and actionable National Growth Strategy for 2026-2029 that identifies (i) where growth will come from,(ii) what investments are required,(iii) which institutions will lead implementation, and (iv) how success will be measured.
The difference between diagnosis and engineering is the difference between describing a problem and solving it.
The Missing National Growth Target
One of the most striking weaknesses in Sri Lanka’s economic discourse is the absence of a publicly articulated growth target supported by a detailed implementation framework.
Successful economies establish measurable objectives.
Sri Lanka should adopt the following growth trajectory:
2026 – 4%
2027 – 5%
2028 – 6%
2029 – 7%
Such targets would provide direction to investors, public institutions, universities, exporters, and development partners. Without a destination, even the best policies risk becoming disconnected initiatives.
Today, many policy interventions appear fragmented—valuable in isolation but lacking integration into a broader national growth framework.
Growth Will Not Come From Consumption
For decades Sri Lanka relied heavily on consumption, imports, remittances, tourism, and external borrowing.
That model has reached its limits.
No country has achieved sustained prosperity through consumption-led growth alone.
The countries that transformed themselves—Singapore, South Korea, Ireland, Vietnam, and China—generated growth through productive investment, exports, industrialisation, and integration into global markets.
Sri Lanka’s future growth must therefore be driven by investment and exports rather than domestic consumption.
The challenge is not increasing spending but increasing productive capacity.
Export-Led Growth: The First Pillar of Transformation
Every successful Asian growth story has one characteristic in common: exports.
Exports generate foreign exchange, create jobs, attract investment, encourage innovation, and improve productivity.
Sri Lanka should establish an ambitious target of doubling export earnings within the next decade.
This requires moving beyond traditional exports and expanding into:
High-value agriculture
Food processing
Information technology services
Logistics services
Advanced manufacturing
Professional services
Export growth must become a national mission comparable to post-war reconstruction efforts seen elsewhere in Asia.
Without a major expansion of exports, sustained 7% growth will remain elusive.
Manufacturing: The Forgotten Growth Engine
Manufacturing remains the single most important source of rapid economic transformation worldwide. Vietnam provides perhaps the best recent example.
Through (i) industrial zones, (ii) trade agreements, (iii) infrastructure development, and (iv) targeted investment attraction, Vietnam became deeply integrated into Asian production networks.
Sri Lanka possesses strategic advantages:
A prime Indian Ocean location
Strong port infrastructure
Educated labour force
Proximity to India
The country should establish specialised manufacturing clusters focusing on:
Electronics assembly
Medical devices
Processed food products
Boat building
Rubber-based products
Engineering components
Rather than attempting to compete with every country, Sri Lanka should specialise in selected niches where competitive advantages can be developed.
RCEP: The Strategic Door to Asia
Sri Lanka’s future lies increasingly in Asia.
The Regional Comprehensive Economic Partnership (RCEP) represents the largest trading bloc in the world and includes many of the fastest-growing economies.
Membership or closer integration with RCEP supply chains could provide Sri Lankan exporters with access to markets, investment, technology, and production networks that are currently beyond reach.
Unfortunately, discussion on RCEP remains limited compared with its strategic significance.
A dedicated national roadmap for RCEP engagement should become a top economic priority.
The question is not whether Sri Lanka can afford to integrate more deeply into Asia.
The question is whether Sri Lanka can afford not to.
Knowledge Economy: Turning Universities Into Growth Institutions
Sri Lanka’s universities produce thousands of graduates annually, yet their contribution to commercial innovation remains limited.
Globally, universities have become engines of economic development.
Research institutions should not merely produce graduates; they should produce patents, technologies, startups, and commercial solutions.
A national innovation framework should:
Link universities with industry
Encourage commercialisation of research
Support technology transfer
Expand startup financing
Reward innovation and entrepreneurship
Knowledge must become an economic asset rather than an academic exercise.
Dairy, Agriculture, And Import Substitution
Export growth alone is insufficient.
Sri Lanka must also reduce unnecessary import dependence.
The dairy sector offers a compelling example.
For decades, billions of rupees have left the country through dairy imports despite favourable climatic conditions and substantial agricultural potential.
A comprehensive dairy development strategy should focus on:
Improved genetics
Feed production
Commercial farming
Processing investment
Farmer productivity
The objective should be import substitution combined with rural income growth.
The same principle can be applied selectively to other sectors where domestic production is economically viable.
Creating A National Investment Targeting Agency
Sri Lanka does not need another bureaucracy.
It needs a professional institution dedicated exclusively to investment targeting.
Instead of passively waiting for investors, this agency would actively identify and attract strategic investments aligned with national priorities.
Its mandate would include:
Identifying priority sectors
Marketing opportunities globally
Coordinating approvals
Monitoring outcomes
Facilitating technology transfer
Singapore’s Economic Development Board and Ireland’s Industrial Development Agency demonstrate how targeted investment institutions can transform national economies.
Sri Lanka requires a similar mechanism adapted to local realities.
From Economic Diagnosis To Economic Engineering
The next stage of Sri Lanka’s recovery requires a fundamental shift in thinking.
The policy debate must move beyond identifying problems. The country already knows its problems.The challenge is implementation.Every policy proposal should be evaluated against a simple question:
Will this contribute to achieving 7% growth by 2029?
If the answer is no, resources should be redirected.
Economic engineering requires focus, prioritisation, accountability, and measurable outcomes. The era of fragmented initiatives must give way to a coherent national growth strategy.
Summary
Sri Lanka has achieved significant macroeconomic stabilisation, but stabilisation is only the first step toward sustainable prosperity.
To move from recovery to transformation, Sri Lanka should adopt a National Growth Strategy for 2026-2029 built around five pillars:
Export-led growth
Investment-led growth
Manufacturing expansion
Knowledge-economy development
Regional integration through RCEP and Asian supply chains
Supporting sectors such as dairy, tourism, logistics, and information technology should be strategically developed within this framework.
Most importantly, investment must be targeted rather than scattered, supported by specialised institutions and measurable performance indicators.
Conclusion
History demonstrates that no nation has become prosperous by accident. Economic success is rarely the product of isolated policies or short-term political initiatives. It is the outcome of a deliberate strategy pursued consistently over many years.
Sri Lanka stands at a crossroads.
One path leads to modest growth, periodic crises, recurring debt challenges, and continued vulnerability. The other leads to transformation through investment, exports, innovation, manufacturing, and regional integration.
The choice is ultimately strategic.
The time has come for Sri Lanka to move from economic diagnosis to economic engineering.
The future will not be determined by how successfully the country stabilised after the crisis. It will be determined by how effectively it builds the foundations for sustained growth thereafter. If Sri Lanka can articulate and execute a coherent investment-led growth strategy today, achieving 7% growth by 2029 need not be an aspiration.
It can become a national objective—and a national achievement, economic Engineering
The writer, among many, served as the Special Advisor to the Office of the President of Namibia from 2006 to 2012 and was a Senior Consultant with the UNDP for 20 years. He was a Senior Economist with the Central Bank of Sri Lanka (1972-1993). He can be reached via asoka.seneviratne@gmail.com
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