Features
Dissenting judgement on MR, GR, BR, PB & Cabraal
by. C. A. Chandraprema
The manner in which Justice Priyantha Jayawardena’s dissenting judgement on the two fundamental rights cases numbered 195/2022 and 212/2022 was reported on by sections of the media would convey the impression that it was based entirely on the technical point that the petitioners had not come before the SC within the time frame specified by the Constitution. Justice Jayawardena’s dissenting judgement does state that: “I hold that the parties have not invoked the jurisdiction of this court within one month of the alleged infringements as required by Article 126(2) of the Constitution”. However, that is not the only reason for him to dissent. His dissenting judgement also states, “I am of the view that the petitioners have not established on a balance of probability that the respondents have infringed the Fundamental Rights of the petitioners.”
One of the ways in which the dissenting judgement shows that the petitioners had not approached the SC within the time frame stipulated in the Constitution can be summarised as follows:
* The SC/FR Application No. 195/2022 was filed in the Supreme Court on the 3rd of June, 2022 and SC/FR Application No. 212/2022 was filed on the 17th of June, 2022.
* The reduction in taxes was based on a Cabinet Paper dated 26 November, 2019.
* According to the petitioners, the rating agencies downgraded Sri Lanka immediately after the tax cuts were announced. Hence, according to the petitioner’s own showing, the alleged infringement took place on the day that the Commissioner General of the Inland Revenue published the public notices informing the tax cuts in the years 2019 and 2020.
* Furthermore, the tax reductions referred to in the two petitions were enacted into law in terms of the Inland Revenue Act of 2021, the Value Added Tax Act of 2021, the Economic Service Charge Act of 2021 and the Nation Building Tax Act of 2021, etc.
* Some of these Bills relating to fiscal legislation were challenged in the Supreme Court. However, the petitioners did not challenge any of the said legislation during the legislative process. Hence, they are now estopped from challenging the legislative process. In any event, anyone who sleeps over their rights is not entitled to challenge any decisions after the stipulated time period imposed by law.
* The dates and events referred to above in this judgment show that the said events took place long before the two Fundamental Rights Applications were filed in court.
Quoting the Auditor General’s Report which had drawn attention to a presentation made by Prof. W D Lakshman on 06 January 2020, the judgement observed that the “…tax relief measures are expected to stimulate the economy while actively contributing to improve business confidence …” A segment in the judgement titled Fiscal Policy elaborated as follows:
“Tax cuts are expected to free up disposable income and the circulation of money in the economy and push positive growth values in the medium and long term. Furthermore, reducing taxes improves the economy by boosting spending. Moreover, a corporate income tax cut leads to a sustained increase in Gross Domestic Product (GDP) and productivity. Tax cuts also increase funding available for businesses and may increase production and investment. Moreover, high taxes discourage work and investment. Taxes create a “wedge” between what the employer pays and what the employee receives, so some jobs are not created. High marginal tax rates also discourage people from working overtime or from making new investments. However, tax cuts reduce government revenue and lead to budget deficits or growth in government debt … In his first address to the Congress on the 28th of February, 2001, George W. Bush said, “To create economic growth and opportunity, we must put money back into the hands of the people who buy goods and create jobs.”
Going to the IMF
With regard to the question of going to the IMF to seek a bailout package, the dissenting judgement observed that the decision not to go to the IMF had been communicated to the Parliament on the 10th of December, 2021 by the then finance minister and that the Cabinet of Ministers had decided on 3 January, 2022, not to get the assistance of the IMF and to have a homegrown solution to the fiscal and economic issues that were faced by the country at the time. A Cabinet Memorandum dated 2 January, 2022 had observed that “It would not be incorrect to state that an IMF programme will require the country to accept conditions that will further disrupt the social fabric of the country. While it is acknowledged that an IMF programme will enable the country to access the capital markets with better ease, it is our experience that none of the IMF programmes since the late 60s, have resulted in any lasting reforms being implemented in the country.”
The dissenting judgement observed that “The IMF assists member nations in different capacities. Its most important function is the ability to provide loans to member nations in need of bailouts. Further, if a country has a deficit in its balance of payments, the IMF can step in to fill the gap. However, borrowing governments must adhere to the conditions attached to these loans by the IMF, including prescribing economic and fiscal policies … Moreover, such conditions may cause severe hardships to the general public of the country that seeks assistance from the IMF. Hence, some countries are reluctant to seek the assistance of the IMF. Furthermore, there are instances where countries seek the assistance of the IMF as a last resort and may give up the IMF programmes without completing them due to their inability to comply with the stringent conditions imposed by the IMF. In fact, on several occasions, Sri Lanka has discontinued IMF programmes due to its inability to comply with the conditions laid down by the IMF….”
“In the circumstances, I am of the view that the petitioners have not established that the policy decision of the government not to go to the IMF was grossly arbitrary or irrational. On the contrary, the Auditor General’s Report tendered to court, and the material filed by the respondents, particularly the aforementioned Cabinet Memoranda and the decisions of the Cabinet of Ministers, show that the government has considered the pros and cons of going to the IMF, the past experiences with the IMF, the effects of obtaining assistance from the IMF will have on the economy and the people, and thereafter taken the policy decision not to go to the IMF.”
Matters of govt. policy
The dissenting judgement has taken into account the report of the Auditor General, where the latter is quoted in Sinhala as having stated that the three issues on which the SC had ordered the Auditor General to report back on, pertained to policy decisions of the government and that different parties may give varying interpretations as to the favourable or unfavourable consequences of a policy decision. The Auditor General has also observed that any assessment of the consequences of those decisions will have to take into account the situation created by the Covid pandemic which affected not only Sri Lanka but the entire world. He has further stated that he is not in a position to determine the best way in which limited foreign reserves should be used in a given set of circumstances. The dissenting judgement further observed:
“… the Auditor General … has evaluated the three issues on which he was directed to report to this court. In his report, he has stated that it is not possible to determine whether a loss had been caused to the Central Bank. Further, he has not specified any violations with regard to any of the matters that were referred to him by the court …. However, though the said report stated there are delays in taking decisions by the Monetary Board and the government, it does not set out any specific violations of the law by the respondents. Hence, I am of the view that there is no expert evidence before this court to decide on the economic and fiscal issues raised in the said two applications.”
The dissenting judgement observed that when it comes to policy matters, “the court would leave policy matters for those who are qualified to address the issues, unless the policy or action is inconsistent with the Constitution and laws, grossly arbitrary or irrational … Furthermore, the courts cannot express their opinion as to whether, at a particular point in time or in a particular situation, any such policy should have been introduced or not, or repealed, particularly when a policy is accepted by Parliament either at reading of the budget or in any other instances. Hence, it should be left to the discretion of the government …”
“Moreover, complex executive decisions in economic matters may be empirical or based on experimentation. Its validity cannot be tested on rigid principles or the application of any straitjacket formula. In such matters, even experts may seriously or doubtlessly differ. Courts cannot be expected to decide them, even with the aid of experts. Thus, the courts do not interfere with policy matters or economic decisions, as such matters are highly technical and even experts in that field hold different opinions on the same point.”
The debt trap
The dissenting judgement quotes a Cabinet Memorandum dated 2 January, 2022 under the heading “Economy 2022 and the way forward” which stated the following:
“In fact, it would be pertinent to note that the economic challenges of today are due to two key decisions of the Yahapalana government, which are;
“The aggressive borrowing in the International Bond markets resulted in the country borrowing USD 12 billion dollars during 2015-2019 with USD 6.9 billion being borrowed during a 14 months period of April 2018 to May 2019. As a result, the country’s foreign currency debt stock reached almost 50% of the total debt stock at the end of 2019 with the stock of ISB’s at wound USD 15 billion. This has now reduced to USD 13 billion”.
“Reduction in the price of Petrol and Diesel in 2015, without any thought to recouping the losses of Ceylon Petroleum Corporation (CPC) or the Ceylon Electricity Board (CEB) or to the possibility of an increase in global oil prices”.
“It is noted that of the USD 12 billion so raised only around USD 2 billion had been utilized to settle ISBs, while the bulk seems to have been utilized to finance the imports, especially cars and other passenger vehicles. In fact, consumption of fuel which had decreased by the end 2014 has increased surpassing the previous consumption volumes although economic growth saw a steady decline”.
Impact of the pandemic
The dissenting judgement also draws attention to the Auditor General’s Report furnished to court which had stated: “The Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with Sri Lanka on 25 February 2022. The press release No. 22/54 in this regard had been issued on 02 March 2022. Highlights of the press release are as follows. Sri Lanka has been hit hard by COVID-19. On the eve of the pandemic, the country was highly vulnerable to external shocks owing to inadequate external buffers and high risks to public debt sustainability, exacerbated by the Easter Sunday terrorist attacks in 2019 and major policy changes including large tax cuts at late 2019. Real GDP contracted by 3.6 percent in 2020, due to a loss of tourism receipts and necessary lockdown measures. Sri Lanka lost access to international sovereign bond market at the onset of the pandemic”.
The dissenting judgement further observed that: “Moreover, it is pertinent to note that the effects of COVID-19 were similar or more adverse to the effects that were caused during the ‘Great Depression’ economic crisis in 1929. It adversely affected our export income, which brought forex to the country. Similarly, the said pandemic reduced foreign employment opportunities and thereby adversely affected one of Sri Lanka’s main foreign earnings”.
“In fact, the effects of the Easter Sunday bombings and the adverse effects of COVID-19, particularly, the unexpectedly large expenditure incurred for island-wide vaccination programmes and quarantine centres, long periods of lockdowns, island-wide curfews, political uncertainty and rivalry, public protests against implementing the economic policies of the government, specifically with regard to privatisation, litigation challenging the privatisation of State entities and geopolitical issues, disturbed the implementation of the policies of the government. Further, such matters adversely affected the income from tourism and witnessed the withdrawal of overseas and local investors from Sri Lanka. Hence, all such unexpected intervening factors immensely contributed to the economic and financial collapse in Sri Lanka”.
“The IMF country reports and the Cabinet Memorandums filed in court show that the fiscal and economic issues that arose in the year 2022 were partly as a result of accumulated debts that have taken place for several decades. Thus, it is not ‘just and equitable’ to hold the respondents responsible for violations of Fundamental Rights only by considering limited materials filed in court for the period commencing from 2019”.
Features
Agnotology, ethnicity, and New Year resolutions
by Geewananda Gunawardana
It is encouraging that the piece on agnotology and ethnicity (The Island December 4, 2024) elicited an erudite discourse (‘Ethnicity and genetics – A non-racial academic response’ and ‘Ethnicity – a synonym for confusion,’ The Island December 11 and 16, 2024, respectively) concluding that ethnic divisions have no biological basis. However, we cannot overlook the fact that humans have an evolutionary tendency to belong to a group, clan, or cult for survival purposes; we are social animals. Not having fangs, claws, venom, or any other protective anatomy, tribalism is the way humans have chosen to defend themselves. Unfortunately, the same evolutionary force makes us blind to the hazards of this habit. Throughout human history, this vulnerability has been exploited by story tellers of all stripes and spots to bring us under their fold and fatten themselves. We Sri Lankans tend to fall for such stories at an alarming rate with grave consequences. That is the focus of agnotology: the investigation of our weakness in believing stories, or the resulting culturally induced ignorance, and its effects on our society. It goes beyond ethnic relations.
One thing must be made clear, there is no point in continuing endless academic discourse and hoping for problems to go away. What is necessary is to find ways to reduce and finally eradicate culturally induced ignorance, or the habit of adhering to baseless, false stories that are harmful or counterproductive, and put them into action.
It is a fact that unlearning is much harder than learning. Therefore, it is best if we can stop learning such baseless, fake stories in the first place. The unpleasant truth is that it can be too late for some segments of society as such stories are deeply engraved in their minds. They will reject the facts, and we have no choice but to look beyond their objections. Therefore, the best remedy is to stop our children from learning culturally inherited myths, beliefs, and practices that disrupt harmony, waste valuable resources, and stop us from joining the 21st century. We must tell them the truth that they are poems, myths, and beliefs, etc., and they should not be accepted as undisputable truths. We must train the younger generation to think critically and have the skill to separate facts from fiction, instead of being blind followers. If the Buddha could say that about his teaching, why cannot we say the same about fabricated stories with hidden agendas?
It is inevitable that there will be a deafening outcry that such actions will ruin our proud culture and heritage. There is absolutely no need to let that happen; we can continue culturally and religiously important activities intelligently if we knew their true meaning and that we are not manipulated by some storyteller for their benefit. We must give our children the facts and train them to make sensible decisions rather than blindly following rituals. Even Buddhism teaches us that following rituals blindly is a barrier to liberation.
We have paid dearly for inflaming ethnic division. Let us not forget that the civil strife had cost the nation more than twice the current debt. Should we continue to spread questionable theories that try to prove one is superior to the other or one arrived before the other and has a larger claim to the land? Is it necessary to impress children by glorifying the battle between Dutugamunu and Elara that happened two thousand three hundred years ago? Or, is it more important to convince them that divided we will continue to wallow in misery?
Let us not forget that whether it is the iron age or the 21st century, the root cause of these evils is the elite that manipulate these stories to their benefit. We managed to sideline the old elite, the establishment, or the aristocracy, but there is a new elite trying to raise its ugly head: the so-called academic elite. Please do not jump to conclusions. There is no need to explain again when elite becomes a dirty word but let us be clear that there is an honourably learned community that provides a valuable service to the country. We value them. It is the fake academics that we must be weary of. Let us admit that it is the cream of the cream that enters our public universities. Whether they exhibit additional letters before or after their names or not, we must bear in mind that they are the smartest lot the country has produced. Whether the country reaps the investment made in them or not is a different issue.
Those who could not get in are not necessarily inferior, it is just that the others did better; and if they can afford it, they continue their education in private institutions here or abroad. Unfortunately, this is where elitism raises its ugly head; we want meritocracy for good reasons, but did everyone get an equal opportunity to collect such merits? We have a habit of giving more weight to foreign degrees, a residue of elite veneration, without verifying the quality of the granting institution or the veracity of their claims. It is no secret that it is possible to buy a degree in some countries. Even worse, I know firsthand an individual who worked as a checkout clerk at a pharmacy chain abroad and paraded as a doctor back at home! However, in this internet age, there is no need to be ignorant, to be gullible and believe their stories; few questions and a quick search of the web can verify their claims, and stop the emergence of a new elite, the bad kind. Let us ask not what letters they have added to their names but ask what they have done or can do to solve problems (my apologies to JFK).
We shamelessly propagate many stories that originated in the iron age without ever questioning their relevance to the 21st century. The ugliest of them is the caste system. We must question the value, or the purpose of following a social stratification system started by nomadic farmers from the central Eurasian Steppes to safeguard their feudal system four thousand years ago. Once again, it was their elite that deceived the humble peasants and took advantage. Imagine starting a similar system by treating descendants of computer programmers differently from those of civil engineers, for example. Force them to have different naming systems, prevent intermarriages, live in segregated enclaves, and assume one is above the other. It is a disgrace that we keep this system and go to the extent of forming separate voting blocks.
Another antiquated practice we hang onto is astrology, which started in Mesopotamia. They used the cyclic movement of celestial bodies as a calendar to plan their agricultural activities. Their geocentric models of the cosmos did not allow them to realise that the seasonal changes are the result of the tilt in earth’s rotational axis and varying distance to the sun. This ignorance made them elevate seasonal changes to acts of divinity. It is true that the gravitational force of the moon causes tides, but how can nuclear furnaces that are light years away impact human lives on earth? Science has yet to discover any such forces or find any evidence that astrological predictions have any basis. There are billions of people who lead healthy successful lives in this world without ever following astrology. Instead of astrology, let us teach the children astronomy, so that they will understand that climate change is not a hoax.
The Age of Reason along with scientific revolution started in the 17th century helped humanity get rid of baseless beliefs and myths that were used by the elite to retain power. Unfortunately, we seem to have missed that revolution and are still trapped in the past. That is no accident either: the elite had done their part to limit our access to knowledge. The underlying reasons that resulted in the widespread tuition business that sells knowledge are good examples. The disparity in the quality of public schools between urban and rural areas is another; do the elite send their children to rural schools? According to one report, over eight hundred rural schools had been closed permanently by 2023. The school dropout rate due to poverty is estimated to be about 30 to 35 percent. Is there any doubt that quality education is only for the elite?
Not only that many practices we engage in have no real value, but they also funnel our precious resources to nefarious activities. Unfortunately, these stories are so deeply engraved in our collective psyche that we do not have the will to challenge them. That is the power of storytelling, and its role in shaping our destiny. This is particularly ironic for one important reason. The goal of the ‘Age of Reason’ and the ancient tradition that most Sri Lankans venerate, protect, and give their lives to preserve have the same goal: understanding the natural world and humanity’s place in it through reason: knowing reality. Unfortunately, instead of following that guidance, we have shrouded that timeless truth we inherited with practices based on beliefs, myths, and mysticism. We have legitimized many primitive practices such as rituals centered on appeasing deities, demons, ghosts, clairvoyant reading, and other numerous spirits bringing them under the umbrella of that venerated tradition and blinding ourselves to truth.
We fail to see that communicable diseases are caused by germs and not by angry spirits, and the absurdity of appeasing higher powers for cures instead of using proven medications. The facts of a simple biological event such as reaching puberty are often buried under rituals; the associated taboos impact females from participation in education and in the work force and, at times, risk their health. The period poverty is discussed in high circles, but does it help the needy? These practices teach our children to leave their destinies at the mercy of mystic superpowers instead of taking control of their lives themselves. There lies the biggest obstacle to prosperity. These are all difficult subjects to deal with, but we must initiate a dialogue on the information gap at a minimum if we must move the country forward.
There are many more practices and beliefs that hamper our progress. Hopefully, we will have the courage and wisdom to have that discussion, someday. Until then, we can do one thing at home: let us tell our children the truth. If our practices have artistic, cultural, and economic values, let us tell them so without wrapping them in mysticism. Let us teach them poems for their literary value but not as historical facts. Let them know that history is written by the victors and often gives the writer’s perspective. Let us teach them the value of rational thinking and help them join the 21st century along with the rest of the world. Let us have no doubt that a prosperous country can be built only on fact-based information that is objective, and not on opinions, beliefs, or assumptions inherited from the dark ages. Let elimination of such culturally acquired ignorance be our new year resolution.
Features
Cast out 2024 with its evils, and welcome promising 2025
“The bad news is time flies. The good news is you’re the pilot.”
Cassandra quotes below a poet she never could enjoy – Alfred Lord Tennyson (1809 – 1892). He was 1st Baron Tennyson and Poet Laureate during much of Queen Victoria’s reign. To her he sounds pompous but his Ring Out Wild Bells is a simple poem and she found it apt at this time. Two stanzas of the poem go thus:
Ring out the want, the care, the sin, / the faithless coldness of the times;
Ring out, ring out my mournful rhymes/But ring the fuller minstrel in.
Ring out false pride in place and blood, /The civic slander and the spite;
Ring in the love of truth and right, /Ring in the common love of good
.I am certain you reader will guess the implied meaning Cass has in mind when quoting these lines. Yes and a loud YES; Sri Lanka is ringing out the bad, ugly, mean, corrupt, pompous pride and bloated egos of those who ruled us. The majority of us have hope in our hearts and look forward to an all-round improvement in how the country is governed. We also are sure the new people at the head of government and state are very different from those Big Wigs of this year before October and down the years, who so drastically dragged the country down to the very depths of deprivation and bankruptcy.
Tennyson rings out the want, the care, the sin; the faithless coldness of the times.
Yes, the times of waiting days in queues for essentials is over. Some may remind Cass it was Ranil W, who did away with queues by taking the right economic decisions. Yes, partly, but during his time as Prez he could have done much more to ease the lot of not only the poorer segment of Sri Lanka’s population but all who suffered. And this while 90 odd persons were advising him and running around in luxury cars while we suffered deprivation.
There certainly was ‘faithless coldness’ during times past when decisions were taken to please the very small minority of the rich at the expense of the rest of Sri Lankans. Coldness we associate with Prez Gotabaya and ‘false pride in place and blood’ during the years Mahinda R was Prez with his favoured persons doing just as they please, not caring one jot for those they made to suffer. Cold unconcern. Coldness is attributed to Ranil W. Comes to mind Keheliya Rambukwella and Lohan Ratwatte, the former importing medical drugs that were ineffective or lethal; the latter strutting in prisons at night with a thigh exposing woman friend. The list of crimes is very long.
Tennyson calls for a ringing in of love of truth and right and common love. AKD, Harini, Vijitha Herath and others of the NPP are ringing in truth and honesty; right government ensuring people’s rights; and intending to end the evils of corruption, nepotism, favouritism and family bandyism of concern only for the wellbeing of families.
A sense of empathy and concern for the country and its people by those in power is definitely in the air, which was never present, except as far back as when DS Senanayake, Dudley Senanayake and John Kotelawala were in power. Kotelawela showed concern in his own brusque way. They were not self-centered and we do not expect our new leaders to be this, even to the slightest degree.
Cassandra’s summation on the state of the country and people’s perceptions is optimistic. The country will sure improve and Ministers in the Cabinet will work to improve the country and its people, not themselves. When honesty, commitment and selflessness are apparent in political leaders, lesser ones too will follow. Thus, we could expect bureaucrats who serve the country with honesty and dedication.
Accidents and apparent incompetence
We are glad the Police have taken due note of the far too many road accidents and have started preliminary findings to arrive at the root of the serious trouble. As the Editor of this newspaper commented in his editorial on this subject, common causes of road accidents are incompetent drivers; road unworthy vehicles; buses plying competitively for fares; and drivers and bus conductors addicted to drugs or intoxicating drinks and being at the wheel under either influence. Also, their being over-worked with far too long spells driving. All these can be remedied. Strict supervision of drivers and vehicles; bus owners being law abiding; the Police taking preventive and punishing action; and punishment meted being severe.
Cassandra experienced the crass incompetence and, perhaps, the debilitating influence of drugs on a driver of a motorbike. She was informed by a friend that a parcel was being delivered to her by one of the delivery services now having good business during this season of gift giving. The delivery man was to be expected around 8.30 pm, the friend said. Cass waited till 9.30, her equanimity fast disappearing and her ire rising. She phoned her friend who contacted either the delivery service or the courier. She was promised he would be at her door in 20 minutes. The clock hands showed 10.30 pm. The driver contacted her. She gave him detailed directions to her home, which even an idiot could follow.
No delivery. She phoned the delivery man, thrice. Each time she heard the motorcyclist ask people directions to Cass’ abode and they gave very accurate directions. But the man could not follow them. She called him. He was just a couple of yards away but at a cross roads, which he should never have been in. Directions were given – simple, easy to follow and unambiguous. No man, no parcel. She sent her domestic to the end of the lane leading to her place. Man finally appears at 11.45. Cass was beyond throwing a tantrum and closer to a stroke or heart seizure.
She was sure, though inexperienced in dealing with druggies, that this driver was under the influence of a drug which dulled his senses to near zero. Her Man Friday tells her that young men are recruited from places far distant from Colombo and do not know its roads and streets. No excuse at all. Glaring faults of employers are non-caring and greed for profit at any cost. Fault of employees: sheer incompetence and immorality in being under the influence of drugs or drink while on the job.
This anecdote is to highlight possible-to-be-remedied faults of businesses. Even government offices had don’t-care-less employees. That will change, and sure must already have changed. Thankfully, Prez AKD gave govt employees a strong pep talk: do your job or you will be made to quit.
Cass ends this Friday’s optimistic Cry with wishing each of her readers a very happy New Year with much less burdens to bear and life improving with hope and anticipation. Gratitude to those who govern us can be given again, replacing the disdain and dislike, hate too, felt earlier. A New Year to the country we love so much of increasing prosperity, equal rights to all and peace!
Features
Navigating the Dragon’s Den: Sri Lanka’s strategic balancing act ahead of President AKD’s visit to China
by Professor Chanaka Jayawardhena
President Anura Kumara Dissanayake is scheduled to embark on a state visit to China early next year, following his recent diplomatic success in India. As Sri Lanka rebuilds from the ashes of an economic meltdown, this visit will serve as a pivotal moment, shaping not just bilateral relations but also the island’s broader economic and geopolitical trajectory. While the allure of Chinese investments may offer short-term relief, the stakes are high: the decisions made during this visit could either cement Sri Lanka’s recovery or deepen its vulnerabilities.
The Economic Promise: Opportunity at the Doorstep
China’s economic might is undeniable. As the world’s second-largest economy and a leading investor in developing nations, China has demonstrated a remarkable ability to deploy vast sums of capital into infrastructure projects and industrial ventures. For Sri Lanka, a nation grappling with limited fiscal space, Chinese investment could unlock opportunities in critical sectors such as energy, transport, and manufacturing.
The Hambantota Port stands as a testament to the scope of Chinese involvement in Sri Lanka. Despite initial controversies, the port has emerged as a strategic hub, offering potential for revenue generation and job creation. However, the same cannot be said for the Mattala Rajapaksa International Airport, often dubbed the “world’s emptiest airport.” While envisioned as a key logistical and passenger hub, the airport has yet to realise its potential, serving as a reminder that infrastructure investments must align with realistic demand projections and comprehensive planning. Addressing this gap should be a priority during discussions with Chinese counterparts, ensuring that such projects contribute meaningfully to Sri Lanka’s economic landscape.
Additionally, enhanced trade relations with China offer significant upside. As Sri Lanka seeks to diversify its export portfolio, targeting China’s vast consumer base could invigorate key industries such as apparel, seafood, and tea. Establishing favourable trade agreements during this visit could pave the way for sustainable economic growth, moving beyond aid and debt reliance.
The Geopolitical Tightrope
The geopolitical stakes for Sri Lanka are both immense and intricate, requiring delicate balancing between its key regional partner, India, and the opportunities presented by China. India remains Sri Lanka’s closest neighbour and has historically shared deep cultural, economic, and security ties with the island nation. India’s contributions during Sri Lanka’s economic crisis, including emergency financial aid, are a testament to its enduring commitment. However, India also views any expansion of Chinese influence in Sri Lanka with heightened concern, perceiving it as a potential security threat within its sphere of influence in the Indian Ocean region.
President Dissanayake must walk a fine line during his visit to China, ensuring that the agreements forged do not alienate India or exacerbate regional tensions. While pursuing Chinese investments, Sri Lanka must communicate its intentions transparently to India, emphasising that its engagement with China is rooted in economic pragmatism rather than any geopolitical alignment. Joint initiatives with India, such as collaborations in regional trade and maritime security, can serve as confidence-building measures to assuage Indian apprehensions.
China, on the other hand, presents unparalleled economic opportunities. Investments in infrastructure, manufacturing, and renewable energy could provide Sri Lanka with a much-needed economic boost. However, Sri Lanka’s leadership must remain vigilant to avoid the pitfalls of overdependence on China, as evidenced by the debt crises faced by other nations engaged in the Belt and Road Initiative. The priority must be projects that not only bolster the local economy but also preserve national sovereignty.
To emulate the success of nations like Vietnam, Sri Lanka can adopt a “bamboo foreign policy”—firmly rooted in its national interests yet flexible in adapting to the complexities of great power politics. Vietnam’s ability to maintain economic ties with China while cultivating strategic partnerships with the United States, Japan, and ASEAN countries offers a valuable model. Sri Lanka, too, must engage other global players, ensuring a diversified set of partnerships that prevent over-reliance on any single nation.
Moreover, Sri Lanka’s policymakers must focus on ensuring that the benefits of Chinese investments accrue to Sri Lanka itself, rather than serving external strategic interests. This includes rigorous scrutiny of project proposals, transparent procurement processes, and an unwavering commitment to prioritising projects that yield tangible economic returns for the Sri Lankan people.
The challenge lies in balancing these dynamics while maintaining Sri Lanka’s sovereignty. A comprehensive, long-term vision that places Sri Lanka’s national interests at the forefront is essential. Investments should align with the country’s development goals, fostering economic resilience and reducing external vulnerabilities. Ultimately, the success of this balancing act will determine whether Sri Lanka can emerge as a stable and independent player in the region or remain a pawn in the larger geopolitical chessboard.
Potential Pitfalls: Lessons from the Region
Sri Lanka’s impending engagement with China is fraught with risks, many of which have been experienced by other nations. Laos, for instance, has faced severe debt distress due to over-reliance on Chinese loans for infrastructure projects under the BRI. Similarly, Zambia’s excessive borrowing from China has resulted in contentious renegotiations and fears of asset seizures. These examples underscore the importance of scrutinising loan terms and prioritising projects that deliver tangible economic returns.
Another potential pitfall is the erosion of sovereignty. Nations that over depend on Chinese investments often find themselves compromising on key policy decisions, whether in trade, security, or governance. Sri Lanka’s leadership must ensure that economic agreements do not come at the expense of national autonomy.
Moreover, transparency is critical. Corruption in procurement processes and project implementation has plagued many BRI initiatives, undermining public trust and long-term viability. President Dissanayake’s government, which has earned public confidence for its anti-corruption stance, must maintain rigorous oversight over any agreements signed during this visit.
Charting a Vision for the Future
While the immediate focus of President Dissanayake’s visit will likely centre on securing economic investments, the government must adopt a comprehensive vision that extends beyond short-term gains. This vision should encompass three key pillars:
=Economic Sustainability:
Sri Lanka must prioritise investments that align with its long-term development goals. This includes focusing on renewable energy projects that reduce reliance on fossil fuels, thereby lowering energy costs and improving environmental outcomes. Digital infrastructure development, such as expanding broadband access, can drive innovation and attract high-value industries, while skill development initiatives can prepare Sri Lanka’s workforce for the demands of a modern economy. By diversifying its economic base, Sri Lanka can reduce its vulnerability to global economic shocks and ensure sustainable growth.
=Geopolitical Balance:
As Sri Lanka engages with China, it must simultaneously deepen partnerships with other nations, including India, our immediate neighbours in the SAARC region and the rest of both the western world along with the global south. Strengthening ties with India, its closest neighbour, ensures regional security and cooperation, while partnerships with any country with the means can provide access to alternative sources of investment and technology. A multilateral approach will mitigate the risks of over-dependence on any single nation and enhance Sri Lanka’s global standing. By actively participating in regional forums and initiatives, Sri Lanka can position itself as a bridge between competing powers, leveraging its strategic location to attract diverse opportunities.
=Social Cohesion:
The benefits of Chinese investments must be equitably distributed to avoid exacerbating social inequalities. Infrastructure projects should include components that directly impact local communities, such as job creation and skill development programmes.
Transparent planning and community engagement are essential to ensure that large-scale projects do not displace vulnerable populations or create environmental degradation. By fostering inclusivity and addressing the needs of all segments of society, the government can build public trust and strengthen social stability, which is vital for long-term development.
A Positive Path Forward
President Dissanayake’s forthcoming visit to China represents both a challenge and an opportunity. By adopting a cautious yet ambitious approach, Sri Lanka can harness the economic potential of Chinese investments while safeguarding its sovereignty and geopolitical balance. The lessons from countries like Vietnam, Laos, and Zambia serve as valuable guideposts, highlighting both the promise and perils of engagement with global powers.
Sri Lanka’s recovery journey is far from over, but the foundations for a brighter future are being laid. The government’s ability to navigate this complex landscape with transparency, vision, and pragmatism will determine whether the nation can emerge stronger, more resilient, and truly independent. As the president steps into the dragon’s den, the world will be watching—and so will the people of Sri Lanka.
(Views expressed in this article are personal.)
(The writer is Professor of (Chair) of Marketing, University of Surrey, UK. Linkedin: https://uk.linkedin.com/in/marketingchanaka, Email: Chanaka.j@gmail.com
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