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Editorial

East Container Terminal

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The proposal to sell 49 percent of the East Container Terminal (ECT) of the Colombo Port to a group of investors led by India’s Modi-friendly Adani Group has been the hottest potato to land on our ruling coalition’s lap since its election last year. Massive trade union and other resistance, strongly supported by the Buddhist clergy and other activists, many of whom campaigned for the Sri Lanka Podu Jana Peramuna (SLPP) and its allies at the last election, continues to escalate. This opposition is backed by one of the country’s most popular television channels is enervating the ‘Save ECT’ effort. The fact that Adani is interested in the new farm laws against which unprecedented farmer protests have been mounted in India has added grist to the mill of those hellbent on preventing what they call a sell-off of a valuable national asset.

The ECT is the second deep-water facility in the Port of Colombo which began operations last November. The state-controlled Sri Lanka Ports Authority (SLPA) has been running it since inception and the government has unequivocally announced that it will hold the controlling 51 percent of any joint venture. It urges that the lion’s share of the trans-shipment business to India now handled in Colombo will benefit from the Indian involvement. Only the first phase of ECT under which a 450 m berth has been commissioned has been completed until now and an additional 600 m berth must be added in the second phase. Given the government’s current cash-strapped status, foreign investment from India and Japan, also interested in investing in this project, as well as investment from John Keells Holdings, Adani’s local partner, is most welcome.

The previous government in 2019 signed as Memorandum of Cooperation with India and Japan to develop ECT. But in the context of the present brouhaha, both Sajith Premadasa’s Samagi Jana Balavegaya (SJB) and its parent UNP, appear inclined to win whatever mileage that is possible from the resistance that has been mounted against foreign investment in ECT. The port unions say that the SLPA has the resources to develop the terminal and no foreign investment is required. They vociferously ask why profits that can be earned by a solely owned national entity should be shared with foreign investors. Different voices from sections of the ruling coalition are heard on the news channels every night and what the eventual decision will be is yet an open question. On Thursday night, former minister and Communist Party leader, DEW Gunasekera, added his voice to the cacophony saying that the government must not forget that Prime Minister SWRD Bandaranaike lost his life over a port related matter. The reference was to Buddharakkita fishing for government backing for a lucrative shipping line after Bandaranaike sent the British out of Trincomalee and nationalized the country’s ports.

The Abhayarama in Narahenpita was the virtual headquarters of the SLPP in the run-up to the presidential and parliamentary elections. So much so that it was commonly referred to as the “Mahindaramaya.” Its chief priest, Ven. Muruttetuwe Ananda who is President of the Public Service United Nurses Union, has been particularly outspoken on the ECT controversy and has not minced his words opposing foreign investment in it. Yet both the prime minister and president were at his temple recently for the priest’s landmark birthday alms giving. This has been interpreted as fealty to the Sinhala/Buddhist virtue of kelehi guna danna (acknowledging the good that somebody has done you). Many analysts believe that the president is more inclined towards permitting the 51-49 deal while the prime minister, consummate politician he is, is working towards smoothing the wrinkles on the governments support base. They say there’s no aiya-malli problem here that the government’s opponents are wishfully hoping for.

Our regular columnist Kumar David, unrepentant Marxist and electrical engineering professor, has in his contribution today offered an insightful analysis on “the right way” to do ECT which we recommend as good reading (as always) both for style and substance. He has touched on geopolitical implications that are obvious in the context of both India and China looking to maximize their influence in this region which is very much a factor in the equation. China Merchant Port Holdings (CM Port) already has a 99-year lease on the Hambantota Port given them by the previous government on the grounds that there was no other way to repay the massive Chinese loan which enabled its construction. CM Port also operates the existing deep-water terminal in Colombo, Colombo International Container Terminals. The Jaya Container Terminal, the Unity Container Terminal and South Asia Gateway Terminal run in partnership by John Keells Holdings and the global shipping giant Maersk are not able to handle the mega ships. Hence the focus on ECT.

Opponents of foreign investment in this terminal argue that Adani, the biggest operator and builder of Indian ports, will wreck ECT for India’s advantage. But the fact is that India has only one deep water port, Krishnapatnam in Tamil Nadu with a draft of 17.5 meters as opposed to Colombo’s 18 meters. Colombo has the further advantage of tidal movements affecting the depth of its ports only marginally while Indian ports must deal with the complications arising from such movements. This, together with the fact that our ports straddle East-West shipping routes gives us many advantages that will not be damaged by an Indian interest in ECT. But how the papadam will crumble remains to be seen.



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Editorial

Beyond tragedy that shook the nation’s conscience

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Saturday 6th June, 2026

Tuesday’s tragedy at Anguruwatota, where a fire engulfed an elders’ home, claiming 13 lives and seriously injuring several others, has shaken the conscience of the nation. Equally shocking are the allegations that the residents of the care centre had been mistreated; among them were persons with disabilities, and some of them had been restrained with chains, according to eyewitnesses. The police have said they found the charred body of a resident in chains. It has now been revealed that the care home was not registered. The question is why the authorities did not take any legal action against it.

The Director of the gutted elders’ home has been remanded and the police will press charges against him. However, the Anguruwatota tragedy is not a problem that should be addressed in isolation. It should be examined in the context of a wider socio-economic issue.

There are other elders’ homes across the country, and they number about 250, according to media reports. They are run by a mix of government institutions, provincial councils, religious organisations, NGOs, and private operators. Some of them are reportedly under-resourced, and poorly-regulated. These institutions can accommodate only a fraction of the country’s elderly population needing assistance. Most of them, however, are basic residential care facilities rather than fully developed geriatric care centres, often functioning more as shelters than as medically supported long-term care institutions, which the country badly needs.

Sri Lanka has already reached a rapidly ageing phase of its demographic transition, with the proportion of citizens above 60 years increasing. About 18 out of every 100 Sri Lankans are aged 60 or above. This proportion has risen sharply from about 12.4% in 2012. It is doubtful whether successive governments have addressed this issue adequately, much less formulated a strategy to face challenges arising from an ageing population. This shift has placed increasing pressure on many families that are struggling to make ends meet and therefore cannot provide full-time care for their elderly members and relatives. Hence the need for policymakers to intensify their focus on structured elderly care for those without family support or social security.

While action is taken to ensure that the existing elders’ homes are run properly, it is incumbent upon policymakers to devise ways and means of facing the problems associated with an ageing population. Experts have pointed out that a national elderly care strategy to address these issues need to integrate several components. First, it should strengthen community-based care models that allow elders to remain in their homes for as long as possible, supported by home visits, mobile health services, and social workers. Second, it should develop a graded system of care homes, ranging from basic shelters to medically supported nursing facilities, all under proper regulatory supervision. It was a chronic lack of oversight and poor regulation that led to the Anguruwatota tragedy. Third, local government authorities should be formally involved in identifying vulnerable elders, coordinating welfare benefits, and ensuring minimum care standards at community level. Fourth, financial protection mechanisms such as social pensions, subsidised care, and public-private partnerships should be expanded to reduce the burden on low-income families.

It is hoped that Tuesday’s tragedy will jolt politicians and policymakers into addressing the long-felt need for a coherent national strategy to enable the elderly to spend their twilight years in comfort and dignity.

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Editorial

Emperor’s new clothes

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Friday 5th June, 2026

The Opposition’s propaganda mill is in overdrive, manufacturing various stories about a split in the JVP-NPP government. Mighty governments collapse not because their political enemies regain lost ground and turn the tables on them. They fall largely because the arrogance of power blinds their leaders to reality while their members dare not speak truth to power. Government members sing hosannas to their leaders and even defend the latter’s wrongdoing, committing collective political hara-kiri in the process. The incumbent JVP-NPP government has its fair share of acolytes who try to defend the indefensible.

Former Public Security Minister Sarath Weerasekera (SW), in his response to a recent editorial in this newspaper, has sought to lay the blame for the failure of the Gotabaya Rajapaksa (GR) government on others. In his letter published on the opposite page, today, he insists that the Rajapaksas had the national interest at heart. He implies that they never engaged in dynastic politics, and the 2022 economic crisis was due to factors other than the mismanagement of the economy.

The economy went into a tailspin during the GR government not solely due to the economic consequences of the Covid-19 pandemic and the repayment of foreign loans obtained by the Yahapalana government. Economists have pointed out that the pandemic did not cause bankruptcy on its own, but it acted as a major trigger that exposed pre-existing weaknesses such as high debt, weak foreign reserves, and overdependence on exports and tourism. All governments pay back loans obtained by their predecessors.

The GR government should have sought IMF help at the first signs of trouble. One may recall that acting on Central Bank (CB) advice, the Mahinda Rajapaksa (MR) government (2005-2010) secured IMF assistance and managed an emerging forex crisis, which would have derailed the war effort. If the GR government had heeded CB advice and taken action to increase tax revenue and shore up the country’s foreign currency reserves with IMF help, the 2022 economic crisis could have been averted.

Sri Lanka had to opt for a soft default and seek IMF assistance in 2022. The choice it had was between a soft default and a hard default, which would have ruined its chances of borrowing from external sources again. Sri Lanka was bankrupt, and that fact had to be announced.

The UPFA and SLPP administrations during MR’s second presidential term (2010-2015) and GR’s presidency (2019-2022) were in fact governments of the Rajapaksas by the Rajapaksas for the Rajapaksas. In the GR government, the number of key ministries held by the Rajapaksas increased to five. The share of government expenditure linked to the ministries controlled by them was more than 50% between 2010 and 2015 and between 2019 and 2022, according to political commentators. The other members of the MR government (2010-2015) became so disgruntled that a group of prominent UPFA MPs including ministers voted with their feet in 2014, and General Secretary of the SLFP Maithripala Sirisena went on to challenge MR in the 2015 presidential contest and secure the presidency. As many as 41 SLPP MPs broke ranks with the GR government in early 2022.

Aragalaya,

which crippled the Rajapaksa rule, began as a genuine, leaderless protest campaign against economic hardships, especially prolonged fuel shortages and power cuts. Some political forces infiltrated it subsequently, but it was losing steam when a group of SLPP goons set upon peaceful protesters at Galle Face in May 2022, and triggered a spree of retaliatory violence, which led to the ouster of the Rajapaksas, and paved the way for the 2024 regime change.

As for reconciliation, a retired Major General known for his distinguished military career and respected leadership, writing under a pseudonym––‘Old Soldier’––recently had this to say in his letter critical of the way the government handled this year’s War Heroes’ commemoration, which was the topic of the editorial comment under discussion: “Reparations are claimed by the winners in wars between nations. After civil conflicts there should be reconciliation. There should be no humiliation. When will commemoration of the dead be national in Sri Lanka?”

If the SLPP is to make a comeback, its leaders and their apologists must shed their aversion to self-criticism. The same applies to their equally self-righteous counterparts in other Opposition parties.

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Editorial

Another game of chicken

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Thursday 4th June, 2026

The government has locked horns with private bus operators, who are demanding a fare hike amidst soaring fuel prices. The former has rejected the fare hike demand out of hand, claiming that it is unfair. President of the Lanka Private Bus Owners’ Association Gemunu Wijeratne has threatened to launch a bus strike unless a fare increase is granted forthwith. He has claimed that there is legal provision for the annual bus fare revision due in July to be advanced. The government and the irate private bus owners are now playing a game of chicken.

School vehicle operators have warned that they will have to increase fees. Trishaw owners have also demanded a fare hike. Container truck operators have already increased freight charges by 5% to offset surging operating expenses, primarily driven by higher diesel prices, inflated costs of tyres and spare parts.

A brutal one-two combination—fuel price hikes and rupee depreciation—has sent all vehicle owners, save a few, to the canvas, so to speak. The prices of spare parts, lubricants and tyres have also skyrocketed. It is only natural that transport operators are demanding fare revisions. The government should stop making political statements and address the issues facing the transport sector. The public cannot take any more shocks, and another fare hike is something everyone needs like a hole in the head. It may not be feasible to grant the bus operators’ request for a fuel subsidy, but the government may be able to help them lower costs in some other way.

It will not be possible to overcome Sri Lanka’s balance of payments woes, strengthen the rupee and shore up foreign currency reserves without a proper strategy to reduce the national fuel bill, which accounts for more than 20% of the total value of imports. President Anura Kumara Dissanayake has pointed out that the country’s monthly fuel import expenditure has surged nearly six-fold. Driven by escalating tensions in West Asia, the fuel import bill rose from USD 98 million in February to USD 522 million in May, according to him. There is no gainsaying that drastic measures need to be adopted to reduce fuel consumption urgently. However, increasing fuel prices is not the only way to achieve this goal.

A country does not need a government to curtail the demand for fuel through price hikes. The JVP-NPP administration should be able to strategise to reduce fuel consumption through other means if it is to be considered worth its salt. Minister Anura Karunathilake and Ceylon Petroleum Corporation Chairman D. J. A. S Rajakaruna have gone on record as saying that action will be taken to have the QR-based fuel rationing system strictly regulated. Why didn’t the government care to do so earlier? If the fuel quota system is to be effective, the practice of motorists sharing the QR codes must be brought to an end. If the national fuel consumption has reached an unmanageable level, as President Dissanayake has said, will the government explain why fuel quotas were increased.

President Dissanayake and his government should learn from India’s efforts to reduce fuel consumption and adopt a top-down national austerity approach to conserve foreign exchange amidst external economic pressures. India’s strategy emphasises reducing official fuel use, adopting digital alternatives to travel, and promoting public transportation to manage energy consumption. After all, the JVP-led NPP came to power, promising austerity measures, which it must now adopt to curtail state expenditure while reducing the burgeoning import bill.

The JVP-NPP government is slow in responding to emergencies. Its disaster response following the landfall of Cyclone Ditwah was woefully tardy. It ignored warnings and waited until the country’s fuel reserves were almost depleted to introduce the QR-based rationing. It cannot wish away the threat of a private bus strike. It must get the bus owners around the table and have a serious discussion on how to resolve the transport sector woes instead of bellowing rhetoric.

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