Features
Debt restructuring and the bleeding of education
by Ahilan Kadirgamar
Free education is one of the strongest pillars of our society. In this column, I address the consequences for the education sector, after Sri Lanka’s first-ever default on its external debt and the IMF’s arbitration of debt restructuring with the country’s external creditors.
Sri Lanka defaulted only on its external debt in April 2022 due to the lack of foreign exchange for debt-servicing. However, debt restructuring with the IMF has entailed restructuring of not just external debt but also the fiscal budget dependent mainly on domestic debt in local currency. The intentional conflation by the neoliberal establishment of these two different domains is to ensure the external creditors are repaid their loans through higher taxes or lowered public expenditure. In this way, the ‘twin deficits’ – one, the current account consisting of external debt in foreign currency for which foreign earnings should be more than imports; and two, the fiscal deficit that is addressed by domestic debt in local currency when government expenditure exceeds revenues, over which the government has more control as it can borrow locally in rupees – is pushing the country into an abyss of austerity and suffering.
In the driving seat of this conflation and policies to address the twin deficits is the IMF supported by the World Bank. The ongoing IMF programme and the World Bank Country Partnership Framework are shaping Sri Lanka’s public spending and economic policy trajectory. In the education sector, they are determining the funds allocated for education, both recurrent expenditure necessary mainly to pay decent wages, and capital investment in buildings, facilities and other development activities to ensure that educational institutions will be able to meet the needs of the sector in future years. The austerity measures associated with the IMF programme and the push for commercialisation are weakening free education.
Priorities and cuts
The IMF Agreement that Sri Lanka signed onto in March 2023 is reflective of the manner in which any such programme is two faced. While the IMF claims to be concerned about the impact of the crisis on the people, its macroeconomic program sets conditions that reflect a different logic.
The President of Sri Lanka and the Central Bank Governor in the Memorandum of Economic and Financial Policies have agreed to the following with the IMF:
“We will reinforce the primarily revenue-based fiscal consolidation with expenditure rationalisation, while preserving spending on priority areas. To contain recurrent expenditure, we will develop strategies to limit growth in the public sector wage bill and public pension spending, while avoiding salary cuts and allowing for limited public sector salary and public pension payment increases to partially account for inflation during the program within the program’s primary balance targets. Given fiscal space constraints on capital expenditure, we will take measures to boost public investment efficiency, as recommended by the 2018 IMF Public Investment Management Assessment. While expenditure rationalisation will contribute to fiscal consolidation, we will preserve spending on health, education, and social protection.” Pg 89, IMF Agreement, March 2023
This pledge to “preserve spending on health, education” as well as “[avoid] salary cuts” while ensuring “expenditure rationalisation” contributing to “fiscal consolidation” is contradictory, as it is claiming to both maintain and cut spending at the same time. This is characteristic of the rhetoric in most IMF programmes.
The IMF-led austerity programme, despite many promises to preserve social spending, inevitably lead to cuts in the real value of social spending, as reflected in the recently released Finance Ministry Annual Report for 2023. Between 2021 and 2023 the cost of living in Sri Lanka increased by one hundred percent, or if we look at it in dollar terms, the value of the Sri Lankan rupee declined by fifty percent from Rs 200 to Rs 300 per dollar. However, during this period increase in the nominal spending for general education was only 22.5% and for higher education was a mere 13.1%.
IMF programmes work towards fiscal consolidation by inflating away social spending, which means the real value of such spending reduces as a percentage of GDP. This year there have been marginal increases in the salaries of university teachers after their struggle, and the non-academic staff are in the midst of a major struggle to gain a raise in salary. While such demands for salary increases are justified, particularly given the massive rise in cost of living, any salary increase will only come from existing allocations, as the allocation for university education cannot be increased as per the IMF programme. In other words, other spending, including capital expenditure, on universities are reduced to accommodate such increases in salaries, as has been the case with the raise received by university teachers.
Defunding and privatisation
The straitjacket of the IMF programme and the Government’s strategy are to defund education and pave the way for privatisation, so that the Government can allocate even less for education as well as allow for private extraction from education. For instance, universities are increasingly being pushed to earn their funds with fee-levying programmes undermining the free education policy. This great shift away from free education affecting state universities will soon make its way into general education. What J.R. Jayewardene and his open economy policies coupled with the IMF-World Bank Structural Adjustment Program could not achieve since the 1980s, is now being promoted by the Government claiming there is no other way to reach debt sustainability.
For decades, Sri Lanka has been reducing its spending on education. In fact, expenditure on education has spiralled downwards over the decades from close to 5% of GDP in 1970 to 1.2% in 2022, one of the lowest today in the world. Nevertheless, Sri Lanka has remained one of the last bastions of free education all the way up to the tertiary level. The current crisis along with the IMF stranglehold has finally given the IMF, the World Bank and the comprador Sri Lankan elite nexus, opportunities to make education both the privilege of the wealthy and a money-making commercial enterprise.
What is to be done? The intelligentsia has the challenge before them to show how debt sustainability while ensuring social welfare can only be achieved with much larger cuts to the external debt stock, particularly by reducing or cancelling the debt owed to bondholders who have already extracted a large amount of wealth in the form of high interest payments from Sri Lanka. In other words, we must work on our own Debt Sustainability Analysis (DSA) to delegitimize the IMF’s DSA crafted in the interest of creditors and global financial interests. Such concerns must be infused into the upcoming election debates so as to change the economic policy trajectory after the elections. The public must build great barriers out on the streets, in other words protests to stop the slide towards commercialisation of education, as well as demand that the government drastically increase the allocation for education, including through of redistribution with wealth taxes.
Ahilan Kadirgamar is a political economist and Senior Lecturer, University of Jaffna.
Kuppi is a politics and pedagogy happening on the margins of the lecture hall that parodies, subverts, and simultaneously reaffirms social hierarchies
Features
Fractious West facing a more solidified Eastern opposition
Going forward, it is hoped that a reported ceasefire agreement between the US and Iran would provide a basis for a degree of stability in the Middle East and pave the way for substantive peace talks between the powers concerned. The world is compelled to fall back on hope because there is never knowing when President Donald Trump would change his mind and plans on matters of the first importance. So erratic has he been.
Yet, confusion abounds on who has agreed to what. The US President is on record that a number of conditions put forward by him to Iran to deescalate tensions have been accepted by the latter, whereas Iran is yet to state unambiguously that this is so. For instance, the US side claims that Iran has come clear on the point that it would not work towards acquiring a nuclear weapons capability, but there is no official confirmation by Iran that this is so. The same goes for the rest of the conditions.
Accordingly, the peace process between the US and Iran, if such a thing solidly exists, could be said to be mired in uncertainty. Nevertheless, the wider publics of the world are bound to welcome the prospects of some sort of ceasing of hostilities because it would have the effect of improving their economic and material well being which is today under a cloud.
However, questions of the first magnitude would continue to bedevil international politics and provide the breeding ground for continued tensions between East and West. Iran-US hostilities helped highlight some of these divisive issues and a deescalation of these tensions would not inevitably translate into even a temporary resolution of these questions. The world community would have no choice but to take them up and work towards comprehending them better and managing them more effectively.
For example, there are thorny questions arising from the Treaty on the Non-Proliferation of Nuclear Weapons (NPT). Essentially, this treaty bans the processing and use of nuclear weapons by states but some of the foremost powers are not signatories to it.
Moreover, the NPT does not provide for the destroying of nuclear arsenals by those signatory states which are already in possession of these WMDs. Consequently, there would be a glaring power imbalance between the latter nuclear-armed states and others which possess only conventional weapons.
Such a situation has grave implications for Iran’s security, for instance. The latter could argue, in view of the NPT restrictions, that the US poses a security threat to it but that it is debarred by the Treaty from developing a nuclear arms capability of its own to enable it to match the nuclear capability of the US. Moreover, its regional rival Israel is believed to possess a nuclear weapons capability.
Accordingly, a case could be made that the NPT is inherently unfair. The US would need to help resolve this vexatious matter going forward. But if it remains, US-Iran tensions would not prove easy to resolve. The same goes for Iran-Israeli tensions. Consequently, the Middle East would remain the proverbial ‘powder keg’.
Besides the above issues, the world has ample evidence that it could no longer speak in terms of a united NATO or West. Apparently, there could be no guarantee that US-NATO relations would remain untroubled in future, even if the current Iran-US standoff is peacefully resolved. US-NATO ties almost reached breaking point in the current crisis when the US President called on its NATO partners, particularly Britain, to help keep open the Hormuz Straits for easy navigation by commercial vessels, militarily, on seeing that such help was not forthcoming. Such questions are bound to remain sore points in intra-Western ties.
In other words, it would be imperative for the US’ NATO partners to help pull the US’ ‘chestnuts out of the fire’ going ahead. The question is, would NATO be willing to thus toe the US line even at the cost of its best interests.
For the West, these fractious issues are coming to the fore at a most unpropitious moment. The reality that could faze the West at present is the strong opposition shown to its efforts to bolster its power and influence by China and Russia. Right through the present crisis, the latter have stood by Iran, materially and morally. For instance, the most recent Security Council resolution spearheaded by the US which was strongly critical of Iran, was vetoed by China and Russia.
Accordingly, we have in the latter developments some marked polarities in international politics that could stand in the way of the West advancing its interests unchallenged. They point to progressively intensifying East-West tensions in international relations in the absence of consensuality.
It is only to be expected that given the substance of international politics that the West would be opposed by the East, read China and Russia, in any of the former’s efforts to advance its self interests unilaterally in ways that could be seen as illegitimate, but what is sorely needed at present is consensuality among the foremost powers if the world is to be ‘a less dangerous place to live in.’ Minus a focus on the latter, it would be a ‘no-win’ situation for all concerned.
It would be central to world stability for International Law to be upheld by all states and international actors. Military intervention by major powers in the internal affairs of other countries remains a principal cause of international mayhem. Both East and West are obliged to abide scrupulously with this principle.
From the latter viewpoint, not only did the West err in recent times, but the East did so as well. Iran, for instance, acted in gross violation of International Law when it attacked neighbouring Gulf states which are seen as US allies. Neither Iran nor the US-Israel combine have helped in advancing international law and order by thus taking the law into their own hands.
Unfortunately, the UN has been a passive spectator to these disruptive developments. It needs to play a more robust role in promoting world peace and in furthering consensual understanding among the principal powers in particular. The need is also urgent to advance UN reform and render the UN a vital instrument in furthering world peace. The East and West need to think alike and quickly on this urgent undertaking.
Features
Science-driven health policies key to tackling emerging challenges — UNFPA
Marking World Health Day on April 7, health experts have called for a stronger commitment to science-based decision-making to address increasingly complex and evolving health challenges in Sri Lanka and beyond.
Dr. Dayanath Ranatunga, Assistant Representative of the United Nations Population Fund, stressed that health is no longer confined to hospitals or traditional medical systems, but is shaped by a broad spectrum of social, environmental, and technological factors.
“This year’s theme, ‘Together for Health. Stand with Science,’ reminds us that science is not only for laboratories or policymakers. It is a way of thinking and a tool that shapes everyday decisions,” he said.
Dr. Ranatunga noted that modern health challenges are increasingly interconnected, ranging from infectious diseases such as COVID-19 to climate-related risks, demographic shifts, and emerging forms of online violence.
He warned that maternal and newborn health continues to demand urgent attention despite progress. Globally, an estimated 260,000 women died from pregnancy and childbirth-related causes in 2023 alone—many of them preventable through timely, science-based interventions.
“In countries like Sri Lanka, where fertility rates are declining and survival rates improving, every pregnancy carries greater significance—not just for families, but for the future of communities and economies,” he said.
The UNFPA official also highlighted the growing threat of Technology Facilitated Gender-Based Violence (TFGBV), including cyber harassment and online abuse, noting that these forms of violence can have deep psychological consequences despite lacking visible physical harm.
He emphasised the need for multidisciplinary, science-informed approaches that integrate mental health, digital safety, and survivor-centered care.
Turning to demographic trends, Dr. Ranatunga pointed out that increasing life expectancy is bringing new challenges, particularly the rise of non-communicable diseases such as diabetes, cardiovascular illnesses, and cancers.
In Sri Lanka, nearly 13.9% of mothers develop diabetes during pregnancy, a trend attributed to obesity and unhealthy lifestyles, underscoring the urgent need for preventive healthcare strategies.
“Are we investing enough in prevention?” he asked, noting that early intervention and healthier lifestyles could significantly reduce long-term healthcare costs, especially in a country with a free public healthcare system.
He underscored the importance of data-driven policymaking, stating that scientific research and analytics enable governments to identify gaps, anticipate future needs, and allocate resources more effectively.
The UNFPA, he said, is already leveraging tools such as Geographic Information Systems (GIS) to improve access to maternal healthcare, including mapping travel times for pregnant women to reach health facilities.
Digital innovation is also transforming healthcare delivery, from telemedicine to real-time data systems, improving efficiency and ensuring continuity of care even during emergencies.
In Sri Lanka, partnerships between the government and development agencies are helping to modernise training institutions, including facilities in Batticaloa, equipping healthcare workers with both clinical and digital skills.
However, Dr. Ranatunga cautioned that technology alone is not a solution.
“It must be guided by evidence and grounded in equity,” he said, pointing out that women’s health remains significantly underfunded, with only about 7% of global healthcare research focusing on conditions specific to women.
He also drew attention to the growing health impacts of climate change, including extreme weather, food insecurity, and displacement, describing it as an emerging public health crisis.
“Health does not begin in hospitals. It is shaped by the environments we live in, the choices we make, and the systems we build,” he said.
Calling for renewed commitment, Dr. Ranatunga urged stakeholders to invest in prevention, embrace innovation, and ensure that science remains central to policy and practice.
“Science is not just about knowledge—it is about ensuring that everyone has the opportunity to live healthy, dignified lives, and that no one is left behind,” he added.
By Ifham Nizam
Features
Sharing the festive joy with ‘Awurudu Kaale’
Melantha Perera is well known as a very versatile musician.
He was involved with the band Mirage, as their keyboardist/vocalist, and was also seen in action with other outfits, as well, before embarking on a trip to Australia, as a solo artiste.
I now hear that he has plans to operate as a trio.
However, what has got many talking about Melantha, these days, is his awesome work with the visually impaired Bright Light Band.
They have worked out a special song for the Sinhala and Tamil New Year, aptly titled ‘Awurudu Kaale.’
Says Melantha: “This song has been created to celebrate the spirit of the Sinhala and Tamil New Year and to share the joy of the Awurudu season with all Sri Lankans”.
Yes, of course, Melantha composed the song, with the lyrics written collaboratively by Melantha, Badra, and the parents of the talented performers, whose creative input brought the song to life during moments of inspiration.

Melantha Perera: Awesome work with Bright Light Band
This meaningful collaboration reflects the strong community behind the Bright Light Band.
According to Melantha, accompaning the song is a vibrant video production that also features the involvement of the parents, highlighting unity, joy, and togetherness.
Beyond showcasing their musical talents, the visually impaired members of Bright Light Band deliver a powerful message, through this project, that their abilities extend beyond singing, as they also express themselves through movement and dance.
Melantha expressed his satisfaction with the outcome of the project and looks forward to sharing it with audiences across the country during this festive season.
He went on to say that Bright Light Band extends its sincere gratitude to Bcert Australia for their generous Mian sponsorship, the CEO of the company, Samath Fernando, for his continuous support in making such initiatives possible, and Rukshan Perera for his personal support and encouragement in bringing this project to completion.
The band also acknowledges Udara Fernando for his invaluable contribution, generously providing studio space and accommodating extended recording sessions to suit the children’s availability.
Appreciation is warmly extended to the parents, whose unwavering commitment from ensuring attendance at rehearsals to supporting the video production has been instrumental in the success of this project.
Through ‘Awurudu Kaale’, Bright Light Band hopes to spread festive cheer and inspire audiences, proving that passion and talent know no boundaries.
-
Features4 days agoRanjith Siyambalapitiya turns custodian of a rare living collection
-
News4 days agoGlobal ‘Walk for Peace’ to be held in Lanka
-
News2 days agoLankan-origin actress Subashini found dead in India
-
Opinion6 days agoHidden truth of Sri Lanka’s debt story: The untold narrative behind the report
-
Features4 days agoBeyond the Blue Skies: A Tribute to Captain Elmo Jayawardena
-
Features4 days agoAspects of Ceylon/Sri Lanka Foreign Relations – 1948 to 1976
-
Features6 days agoThe Ramadan War
-
Editorial5 days agoBrouhaha over a book
