Opinion
Crisis deepens without rescue plan

By Dr Laksiri Fernando
Sri Lanka has come to a decisive political-economic juncture with a big question mark on the present administration. Crisis deepens day by day without any plan for its rescue. It appears that the foreign debt default in April this year has affected the local debt market as well. The defaulted foreign debt is not small. While the country owed $7 billion to foreign buyers this year, the total debt is estimated to be over $50 billion. Proper accounts are not kept on this matter. Different figures are given on different occasions.
On 22 June, the government tried to sell Treasury Bills to the value of Rs. 93,000 million but could sell only Rs. 30,779 million, nearly one third. The credibility of debt resettlement is doubted both externally and internally. Out of Rs 30,779 Treasury Bills the bulk and nearly Rs. 20,000 million must be settled in three months. These are the steps of current management, not so different to the previous one.
IMF and All
IMF officials are now in Colombo asking the government to show a viable macroeconomic plan, among other conditions, before they lend dollars, as Sri Lanka had not heeded these requests several times before. They will assist Sri Lanka to restructure debt, while giving the requested 3 billion in stages. Sri Lanka should have requested a bigger amount as the present foreign exchange crisis is insurmountable.
Amnesty International also has sent a letter to the IMF, emphasizing the unfortunate situation of the ‘poor and the vulnerable,’ among other human rights issues. Sri Lanka has a bad record of assisting political supporters and not necessarily the ‘poor and the vulnerable.’ It is also well known that the debt accumulated through sovereign bonds were largely used for unproductive purposes and to the benefit of certain sections. This was largely the same when Ranil Wickremasinghe was running the previous government (2015-2019). Among other things, Amnesty International has said the following:
“To ensure that the verbal commitments above translate into real and effective protections in these difficult times, human rights must be central to any future economic reform programm, negotiated between the IMF and the Sri Lankan government.”
There are several foreign countries who are willing to assist Sri Lanka within the IMF framework, and Australia has already pledged A$ 50 million. The US has announced $12 million assistance (USAID) and this amount might increase. Britain is another country promising support. Japan has been a traditional donor and a lender who has today become somewhat distant. China will continue to assist.
Since January 2022, India has been generously assisting Sri Lanka through currency swaps, credit lines for essentials, and loan deferments. It is estimated that this generosity now amounts to $4 billion. This is mostly a new debt. This has taken a new dilemma because of the controversy over the Adani deal.
No country or international agency would give dollars to Sri Lanka without any condition or some benefit in return. More pertinent question is whether the present Sri Lankan authorities would be able to manage this assistance properly and prudently. There are undoubtedly prospects in resolving the crisis in Sri Lanka. However, do we have the right administration to do so?
Grievances of People
Not only people’s grievances but also anger is visible in various queues for petrol, diesel, kerosene, and cooking gas. Over 10 people have already died almost all of them due to ill health while in these queues overnight. Now there are food queues, mostly women are forced to attend. Most alarming is the shortages of medicine and medical equipment. The death toll is not properly counted. Inflation is now nearly 50% and the poor are the most affected.
Without fuel for their vehicles, people cannot go for work or run their businesses. Public transport is also not working properly due to fuel shortages. Now the government decision is to limit the working week to four days. Is that a right decision is a question? In addition to all these, there have been power cuts due to the lack of necessary fuel to run some power stations. Reuters and others have reported some of the heart rending stories about queues. The following is one:
‘Lasanda Deepthi, a 43-year-old Sri Lankan woman, plans her day around fuel queues. The driver of an auto-rickshaw on the outskirts of the commercial capital Colombo, she keeps a close eye on the petrol gauge of her sky-blue three-wheeler before accepting a job to make sure she has enough fuel.’
A woman three-wheel driver is a rare sight in Sri Lanka. However, Deepthi is one who has selected the job to support her family. She has stated ‘I spend more time in line for petrol than doing anything else. Sometimes I join a line about 3 p.m. but only get fuel about 12 hours later.’
The government and the Energy Ministry should have stopped people unnecessarily joining queues by transparently announcing a scheme how they would distribute the limited fuel to the people. Transparency is something the governments are lacking for a long period. There was no point in using the police or the Army to discipline people when they gather in hundreds or thousands. When you Google on the subject, the following are some news items you come across:
‘Long queues outside gas stations,’ ‘Sri Lanka troops open fire to contain unrest over fuel shortages,’ ‘Clash at fuel queue in Vavuniya – five hospitalized,’ ‘Sri Lanka sees signs of fuel riots as motorists wait for days in queues,’ ‘Clashes reported at gas queues in Kandy.’ ‘Sri Lanka’s poor queue for hours to buy kerosene amid crises,’ ‘Sri Lanka deploys troops as fuel shortages sparks protests,’ ‘Queue for death: Systemic examination of Sri Lankans’, etc.
Roots of Crisis
The crisis that Sri Lanka has been encountering at present is two-fold. (1) Economy is in shambles and the PM himself has named the country as bankrupt. (2) There is an emerging strong opposition, mostly extra-parliamentary, from the youth. It is difficult to distinguish one from the other and that is why it should be called a ‘political-economic’ crisis. If the major problems are not addressed soon, there is a possibility of an ‘uprising.’
The crisis has its roots in decision-making or more correctly erroneous decision-making. That is why people ask particularly the President to resign. Prof Mick Moore (University of Sussex) has uncovered the crisis as ‘manmade.’ Who is the remaining man? Apart from a necessary change of heads, there is a need for a policy change. Some can be outlined below.
Without going or listening to the IMF, the country depended mainly on China and sovereign bonds dubiously sold to questionable foreign institutions and speculators. Amounts were unbearable to the country. There is a possibility that some of the decision-making Sri Lankans had stakes in these institutions when sovereign bonds were sold. Now there is a lawsuit by the dubious Hamilton Reserve Bank against the country for not paying of their sovereign bonds. A former Central Bank Governor is also implicated. Even if they had a clean record, the borrowed money was not used for productive and priority purposes of development. This applies to both China loans and sovereign bonds. These deals should have been transparent.
What was particularly missing was proper financial management in the case of balance of payments and internal budget balances. Most of the budget figures presented were just bogus. Country’s income and expenditure did not match and 2019 budget was a mere disaster. There was no proper transparency. There should be a parliamentary committee, like COPE, to scrutinize past budgets. Or the present COPE should handle it. Lessons can be drawn, or the culprits could be reprimanded. There were huge budget deficits in actual sense and money printing was used as a solution. Local debt also was accumulating throughout the years and as we have noted at the beginning the last Treasury Bill auctions was a disaster.
During 2018, foreign exchange reserves were estimated to be over $9 billion. It came down to $7.6 billion in 2019. This was before the Covid pandemic and with a clear early warning for the policy-makers. However, in the absence of proper measures, the amount came down to $5 billion by the end of 2020. These early warnings were clear enough to go before the IMF. Within the SLPP government and in the country in general there are sections who are opposed to the IMF claiming that the institution is not supportive of developing countries. Even if the IMF was ‘dubious’ during the early period, things have changed over decades. Sri Lanka joined the IMF in 1950. It is one of the important multilateral organisations among other institutions. It is up to the local officials to bargain and deal properly with the IMF.
It is very clear that Sri Lanka had enough time and opportunity to deal with the crisis earlier on. However, this was not done. It is difficult to excuse the President, Gotabaya Rajapaksa, on this matter among other things. He has a pathetic human rights record. Since the beginning of the financial crisis, the authorities have not taken measures properly to mitigate the situation. The ad hoc nature of measures is still a liability and would boomerang on the country again and again.
Opinion
Resolution of grief, not retribution

Ahamed Kathrada, friend and advisor to Nelson Mandela said of Robben Island, where Mandela was imprisoned for close to 30 years, that “While we will not forget the brutality of apartheid, we will not want Robben Island to be a monument to our hardship and suffering.”
Similarly, we do not want our beloved country to be a monument to our suffering. As Kathrada said, we want our country to be a symbol of the triumph of the human spirit against the forces of evil, a triumph of courage and determination over human frailty and weakness. Managing the painful history of this country should be focused on achieving this objective.
Emotions, such as sadness, worry, anger and in some cases, hatred, festering in our society over the past forty years appear now to be reaching boiling point.
Considering my professional background and knowledge of the mind, I am not surprised by that.
Violence is wrong no matter which side it comes from and regardless of its source. However, the bitter truth that emerges when examining the history of the past forty years, even when looking at it from the best possible angle, is that the foundation of the immoral, illegal and violent politics established took root in Sri Lanka, after 1977.
Actions and counteractions of the negative political culture including violence then established, brought nothing but destruction to Sri Lanka.
The bitter truth is that our collective conscience, sensitivities and actions as a nation, are shaped and coloured by this ongoing aggression and violence that equally affected both the South and the North.
The specific period of terror of 1987 – 1989 was focused mainly in the South. Accepting the fact that the majority of those who suffered during this period were Sinhala Buddhists is merely stating the reality; it is not approaching the problem from a narrow, racist or religious perspective.
It should also be added that I myself was a victim of that terror.
The Sinhala Buddhist culture has a distinctive tradition process for alleviating the grief due to a death by holding awake: sharing the pain of loss with those closest to you, and engaging in religious activities specifically in remembrance of the dead person, a sequence of events including offering alms, that provides time to heal.
It is this cultural heritage of managing loss and grief that was taken away from those who lost their lives and their loved ones in 1987- 89. It is only those who have faced such unfortunate experiences who know the compulsion and pain left by that void, where there was no time to process loss and grief. It is time for introspection – for genuine reflection.
With this background as our legacy over multiple generations, we need to pay greater attention to guarding ourselves against the potential response of “identification with the aggressor.” Identification with the aggressor is an involuntary or sub-conscious psychological defence mechanism and a reaction to trauma where the victim who underwent the trauma identifies with and mimics the behaviour of the person who carries out the violence, as a psychological coping mechanism.
Such responses can be seen in, for example, children undergoing abuse, or young people undergoing ragging. The usual reaction one would expect is for the victim to refrain from abuse or ragging. However, contrary to that expectation, research has revealed that the victim displays behaviour similar to that of the person who abused or ragged him/her.
A clear understanding of how is this concept likely to impact the current political climate is critical at this juncture.
Wielding immense political power, politically less experienced and matured social strata may unknowingly become prone to treating their opponents in the same way that the oppressors of the past victimised them. Therefore, the leadership should be sensitive to the potential of former victims almost unknowingly impose past sufferings on current opponents. It is the responsibility of politically enlightened social strata to identify and prevent that situation in advance. It is a moral obligation of all political parties not just the ruling party.
I would like to share a personal experience in this context. Assistant superintended Senaka de Silva was the man who brutally tortured me at the torture camp at Chitra Road, Gampaha, run alongside the Batalanda torture camp.
After my release, I was working as the Head of the Emergency Treatment Unit at the Sri Jayewardenepura Hospital, when the former ASP de Silva brought his niece there for treatment, unaware that I worked there. He was disconcerted to see me and immediately turned back and walked away. I sent the security officer to bring that child back, admitted her to the hospital and did my best to treat her. The thought process and action that I followed that day is what I adhere to date as well. At the time I was only a specialist in family medicine, today, as a professor of psychiatry, I see these events from a much broader point of view.
The force of emotions arising due to pain or injustice can be destructive to society, but it is also possible to divert it into a force for good. For example, the lack of any post-election violence at the Presidential elections of 2024 indicated a commendable positive direction in social movements. Similarly, the dialogue arising around the Batalanda torture camp, too, should be constructive and forward thinking, so that we shall never again see such an immoral political culture in Sri Lanka.
Ahamed Kathrada, friend and advisor to Nelson Mandela said of Robben Island, where Mandela was imprisoned for close to 30 years, that “While we will not forget the brutality of apartheid, we will not want Robben Island to be a monument to our hardship and suffering.”
Similarly, we do not want our beloved country to be a monument to our suffering. As Kathrada said, we want our country to be a symbol of the triumph of the human spirit against the forces of evil, a triumph of courage and determination over human frailty and weakness. Managing the painful history of this country should be focused on achieving this objective.
This does not mean that we have to essentially follow the South African model of truth commission for reconciliation but we do it in a culturally sensitive way that suits us.
As a Nation we all need to understand that situations arise neither to laugh nor to weep, but to learn from past experience.
(The author of this article became a JVP activist as a student in 1977. He was the Secretary of the Human Rights organisation of Sri Lanka in late 1970s and early 1980s. He was known as the personal physician to the late leader of the JVP Rohana Wijeweera.
He was arrested and imprisoned in 1983, but later released without any charge. He was abducted in broard daylight on the 19 July 1988, held in captivity and tortured. He was released in 1990.
An internationally renowned academic, he is an Emeritus Professor of Global Mental Health at Kings College London and Emeritus Professor Keele University. He is also the Director, Institute for Research and Development in Health and Social care and the Chairman of the National Institute of Fundamental Studies.)
by Professor Athula Sumathipala
Opinion
Haphazard demolition in Nugegoda and deathtraps

The proposed expansion of the Kelani Valley railway line has prompted the squatters to demolish the buildings and the above photograph depicts the ad-hoc manner in which a building in the heart of Nugegoda town (No 39 Poorwarama Road) has been haphazardly demolished posing a risk to the general public. Residents say that the live electric wire has not been disconnected and the half-demolished structure is on the verge of collapse, causing inevitable fatal damages.
Over to the Railway Department, Kotte Municipality Ceylon Electricity Board and the Nugegoda Police.
Athula Ranasinghe,
Nugegoda.
Opinion
Aviation and doctors on Strike

On July 19, 1989, United Airlines Flight 232 departed Denver, Colorado for Chicago, Illinois. The forecast weather was fine. Unfortunately, engine no. 2 – the middle engine in the tail of the three-engined McDonnell Douglas DC 10 – suffered an explosive failure of the fan disk, resulting in all three hydraulic system lines to the aircraft’s control surfaces being severed. This rendered the DC-10 uncontrollable except by the highly unorthodox use of differential thrust on the remaining two serviceable engines mounted on the wings.
Consequently, the aircraft was forced to divert to Sioux City, Iowa to attempt an emergency crash landing. But the crew lost control at the last moment and the airplane crashed. Out of a total of 296 passengers and crew, 185 survived.
The National Transportation Safety Board (NTSB) declared after an investigation that besides the skill of the operating crew, one significant factor in the survival rate was that hospitals in proximity to the airport were experiencing a change of shifts and therefore able to co-opt the outgoing and incoming shift workers to take over the additional workload of attending to crash victims.
One wonders what would have happened if an overflying aircraft diverted to MRIA-Mattala, BIA-Colombo, Colombo International Airport Ratmalana (CIAR) or Palaly Airport, KKS during the doctors’ strike in the 24 hours starting March 12, 2025? Would the authorities have been able to cope? International airlines (over a hundred a day) are paying in dollars to overfly and file Sri Lankan airports as en route alternates (diversion airports).
Doctors in hospitals in the vicinity of the above-named international airports cannot be allowed to go on strike, and their services deemed essential. Even scheduled flights to those airports could be involved in an accident, with injured passengers at risk of not receiving prompt medical attention.
The civil aviation regulator in this country seems to be sitting fat, dumb, and happy, as we say in aviation.
Guwan Seeya
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