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Exercising sovereign rights of a coastal state

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Indian trawlers in Sri Lankan waters

By Neville Ladduwahetty

Coastal states, such as Sri Lanka, could claim up to 200 nm as its Exclusive Economic Zone, according to the General Principles of the Law of the Sea.    Consequently, Sri Lanka’s Exclusive Economic Zone (EEZ) is nearly eight times its land area. According to Article 56 (1) of the United Nation Convention on the Law of the Seas (UNCLOS):

“1. In the exclusive economic zone, the coastal State has: (a) sovereign rights for the purpose of exploring and exploiting conserving and managing the natural resources» whether living or non-living» of the waters superjacent to the sea-bed and of the sea-bed and its subsoil» and with regard to other activities for the economic exploitation and exploration of the zone such as the production of energy from the water currents and winds”.

In fact, recognition given to the provisions of the United Nations Convention on the Law of the Seas (UNCLOS) was underscored by India’s External Affairs Minister Dr. S. Jaishankar when, he, as the Vice Chair of the Indian Ocean Rim Association (IORA), at its 23rd Secession of the Council of Ministers, stated: “India’s priorities are clear.

It is our effort to develop an Indian Ocean community that is stable and prosperous, strong and resilient and which is able to cooperate within and to respond to happenings beyond the ocean.    It is thus important to maintain the Indian Ocean as a free, open and inclusive space based on the UN Convention on the Law of the Seas (UNCLOS) as the Constitution of Seas.

 “India’s commitment to the well-being and progress of nations of the Indian Ocean is based on our Neighbourhood First policy, the SAGAR outlook, our approach to the extended neighbourhood … A multilateral rules-based international order along with SINCERE RESPECT for SOVEREIGNTY and TERRITORIAL INTEGRITY (emphasis added) remains the Foundation for reviving the Indian Ocean as a strong community”.

MARINE SCIENTIFIC RESEARCH

Although UNCLOS recognises Sri Lanka as a “Coastal State” enjoying sovereign rights for the purpose of exploring, exploitation, conserving and managing the living and non-living natural resources, as well as jurisdiction over resource-related off-shore installations and structures, MARINE SCIENTIFIC RESEARCH (MSR) (emphasis added) and the protection and preservation of the marine environment”, the National Aquatic Resources Research and Development Agency (NARA) of Sri Lanka is not equipped to carry out marine scientific research in such a way as to make a meaningful contribution to Sri Lanka’s national interests.

For instance, NARA has the capability to stay only five days out at sea, whereas Shi Yan 6 has the capability to operate 80 days out at sea. Therefore, by necessity, NARA is compelled to collaborate with another country that is suitably equipped if the quality of its research is such that it furthers Sri Lanka’s interests; a policy it is reported to have resorted to in the past when Sri Lanka collaborated with countries such as the US and Norway.

Not to exercise the sovereign right to engage in “maritime scientific research” as per Article 56 (1) (ii) of UNCLOS because of spurious “concerns” of India and the US sets a precedent to deny other rights.     Furthermore, by limiting the research only to two days as reported, Sri Lanka has been denied the opportunity to gather information that could serve its national interests. This denial is a violation of a sovereign right of a sovereign State.

EXPLOITATION of RESOURCES in SRI LANKA’S EEC

The exploring, exploiting, conserving and managing living and non-living natural resources of a coastal state within its EEC is a sovereign right. Despite this, it is a well recorded and reported fact that thousands of trawlers from India enter Sri Lanka’s EEC and not only exploit its resources but also destroy marine resources by resorting to bottom trawling.

In a United Nations-Nippon Foundation of Japan Fellowship Programme of 2016, Aruna Maheepala claims: “There are over 5,000 mechanised trawlers in Tamil Nadu and nearly 2,500 of them enter Sri Lankan waters on Mondays, Wednesdays and Saturdays and often coming at 500 m of the shoreline (emphasis added) …. More than 50,000 marine fishers live in the northern fisheries districts (Jaffna, Kilinochchi, Mannar, Mulative), and they account for about one-fourth of the marine fishers of the country.

Before the commencement of the war (1982) around 40% of the fish production of the country came from Northern fishery districts (except Kilinochchi).  However, contribution of the fish production in the northern fishery district drastically dropped to 5% in the peak period of the war (2008) and gradually increased after 2009. Livelihoods of Sri Lankan fishers’ have been drastically affected as a result of the Indian poaching”.

Judging from the map of Sri Lanka’s EEC and its proximity to India’s coastline, to claim that Indian trawlers “drift” into Sri Lankan waters is unacceptable. On the contrary, the India trawlers “drift” into Sri Lankan waters because they have exhausted the resources within India’s EEC.

In the context of the ground situation cited above, for Dr. Jaishankar’s claim that ‘India is committed to the well being and progress of nations of the Indian Ocean is based on our Neighbourhood First’ is far from the truth. Instead, it sounds more like India First in the neighbourhood.  To expect India to address this issue despite Dr. Jaishankar’s commitment to “a multilateral rules-based international order along with sincere respect for sovereignty and territorial integrity” is only a pipe dream because it is alleged that the majority of Indian fishing boats entering Sri Lanka waters are connected to Indian politicians who are Members of the Legislative Assembly of Tamil Nadu.

Furthermore, since Sri Lanka’s legal provisions are limited only to violations relating to the illegal plunder of its resources by individuals and their fishing crafts, no action can be taken against those who sponsor and finance such acts. Therefore, there is an urgent need to review existing legal provisions and revise and update them in order to meet current challenges.

PRROPOSAL to SET UP an ANTI-NARCOTIC COMMAND

The need to establish an Anti-Narcotic Command was reportedly realised after detecting the 200 kg of heroin valued at Rs. 4.5 billion, which was intercepted in the high seas. While this is a long overdue measure, it must be accepted that this “interception” is one of many that went undetected; this is inevitable when about 2500 mechanised trawlers brazenly enter Sri Lankan waters three times a week with absolutely no regard to Sri Lanka’s sovereign rights.

In such a context, Dr. Jaishankar’s sincerity and respect for Sri Lanka’s sovereignty will have no significance unless and until India is held accountable for deliberately overlooking the vandalism caused not only to Sri Lanka’s marine resources but also to security related issues such as crimes relating to drugs, human trafficking, arms smuggling and money laundering.

Even if India and Sri Lanka work out an arrangement to compensate Sri Lanka materially for the lost revenue to the Sri Lankan fishing community and for the damage done to its marine resources, the very fact that Indian fishing craft continue to enter Sri Lanka’s EEC means that the threats to security from drugs and other crimes would continue unabated despite the establishment of an Anti-Narcotic Command because no Command, however effective, would be able to identify which of the 2,500 Indian trawlers that come three times a week become the means by which to support other crimes that are a threat to Sri Lanka’s security. The collective cost to the Sri Lankan State and its citizens pales in significance compared to the loans and lines of credit given by India.

The irony is that Sri Lanka is prepared to address security concerns of India but India is totally impervious to those of Sri Lanka, not to mention the loss of livelihood to its citizens and to deny their opportunity to develop its fishing sector.

DRAFT OF FISHERIES AND ACQUATIC ACT

A draft of an Act to repeal and replace the existing Act of 1996 is presented below:

“AN ACT TO REPEAL AND REPLACE THE FISHERIES AND AQUATIC RESOURCES ACT No. 2 of 1996. AN ACT TO PROVIDE FOR THE REGULATION, LONG TERM CONSERVATION AND SUSTAINABLE USE OF MARINE FISHERIES AND AQUATIC RESOURCES, AND MARINE ECOSYSTEMS FOR THE BENEFIT OF THE PEOPLE OF SRI LANKA; TO GIVE EFFECT TO SRI LANKAS’ OBLIGATIONS UNDER REGIONAL AND INTERNATIONAL AGREEMENTS; AND TO REPEAL AND REPLACE THE FISHERIES AND AQUATIC RESOURCES ACT, No. 2 of 1996 AND TO PROVIDE FOR MATTERS CONNECTED THEREWITH WITH OR INCIDENTAL THERETO”.

“PART VII – SCIENTIFIC RESEARCH AND DATA COLLECTION”

“Section 92 – Scientific research by fishing vessels Section 93 – Scientific research by a foreign research organization or another State Section 94 – Fisheries Data Collection Programs Section 95 – Collection, transmission and validation of data”.

“PART XI – MEDIATION, ADMINISTRATIVE AND JUDICIAL PROCEEDINGS”

“Section 147; Cost Incurred by the State

The owner or charterer of a foreign fishing vessel, upon conviction, shall bear any cost or expenditure incurred by the State, as determined by Court where an application is made on that behalf by the State in all or any of the following instances: a) the seizure of the foreign vessel for an offence under this Act, including any relevant costs of pursuit of a vessel; b) the prosecution for an offence in accordance with this Act; and c) the repatriation of the master or crew of any vessel seized under this Act. 2. The amount of any cost and/or expenditure awarded by Court under subsection (1) may be recovered as a fine and shall be imposed in addition to any other fine or penalty that has already been determined by Court. 3. Nothing in subsection (1) shall be deemed to permit the recovery of any cost and/or expenditure that has already been recovered pursuant to any other Order made under this Act. 4. If it intends to apply for pursuit costs in accordance with subsection (1) (a), the State shall, fourteen (14) days prior to a trial of the offence, serve the accused with written details of such costs”.

While Part VII addresses issues relating to scientific research and data collection by foreign organization or a State, Part XI that deals with costs incurred by Sri Lanka is totally inadequate because it is based on individual penal responsibility of violators, when the violations to Sri Lanka’s sovereignty and resources are committed collectively by 2500 plus trawlers that invade Sri Lanka’s EEC.    Therefore, this aspect requires serious revisions to the Draft Act.    Another serious omission in the draft is the non-inclusion of any relevant provisions of UNCLOS and the need to specifically refer to UNCLOS in the preamble to the draft Act instead of the vague reference to “OBLIGATIONS UNDER REGIONAL AND INTERNATIONAL AGREEMENTS”.

HARD REALITIES   

Prior to exploring strategies to deal with the challenges cited above, Sri Lanka has to recognise certain hard and irrefutable realities.

The first hard reality is that threats to Sri Lanka’s security, the economic wellbeing of its citizens, in particular those in the North and East of Sri Lanka and the plunder and damage of its natural resources are committed by Indian citizens against the interests of Sri Lanka and its citizens. Therefore, all issues relating to the illegal entry of fishing trawlers from the territory of India should be addressed at the bilateral level, between the governments of India and Sri Lanka and not with the state of Tamil Nadu; a serious mistake that has failed Sri Lanka for decades.

The second hard reality is that threats in whatever form come from the unlawful encroachment of thousands of fishing trawlers into Sri Lanka’s EEC in total violation of its sovereignty; a fact recognized as a right by all Coastal States.

The third hard reality is that no Acts of Parliament or security related arrangements such as Anti-Narcotic Commands, however effective, would be able to make a dent in the aggression because of the scale of the ongoing operations; a fact evident from the report that Sri Lanka’s Navy has arrested nearly 180 fishers and taken 27 trawlers into the custody this year. (The island, October 30, 2023).

The fourth hard reality is that if the livelihoods of those in the North and East of Sri Lanka associated with the fishing sector are to be restored and Sri Lanka wishes to develop its fishing sector as part of its economic development, the illegal entry of thousands of mechanised trawlers from India has to stop. If nothing is done it amounts to an international crime of annexing part of Sri Lanka’s EEC by India.

CONCLUSION

The facts presented above show the gross violations committed by the Indian state of Tamil Nadu. The Central Government of India is fully aware of these violations but does nothing for reasons of internal political compulsions, although this kind of aggression amounts to a complete disregard of the sovereign rights of a Coastal State embodied in the provisions of the UN Convention on the Law of the Seas. India has made a mockery of the much-touted policy of Neighbourhood First.

Therefore, if India is not to lose its credibility and make disingenuous statements about its “sincere respect for sovereignty and its commitment to the well-being and progress of nations”, it should finance the development of the fishing sector of Tamil Nadu to engage in deep sea fishing as an alternative to violating the sovereign rights of its neighbour’s EEC.

In the meantime, Sri Lanka should call for Expressions of Interest to invest in a Joint Venture in order to develop its fishing sector in the North and East of Sri Lanka which was 40% of the total production (Maheepala cited above) as a significant component towards Sri Lanka’s food security.  Until then, the potential loss in revenue incurred by Sri Lanka due to the violations committed by a state of India should be factored in the settlement of financial commitments to India.



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Features

Sri Lanka’s rice conundrum: Time to stop managing crises and start fixing the system

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Prof. Ranjith Senaratne,
Emeritus Professor in Crop Science and former Vice-Chancellor,
University of Ruhuna and General President of the Sri Lanka Association for the Advancement of Science (2023) and
Prof. Prasad Jayaweera,
Dean, Faculty of Computing, University of Sri Jayawardenapura

Rice is not merely another crop in Sri Lanka. It is our staple food, an integral part of our history and culture, and a foundation of the civilisation that flourished around our ancient hydraulic systems. Revered as Buddha Bhogaya, the Buddha’s crop, rice has sustained our people for more than two millennia. Yet, remarkably, a country with such a profound relationship with rice continues to lurch from one rice crisis to another.

At one time, we have a surplus. At another, we face shortages. Prices rise sharply, consumers complain, farmers struggle to obtain remunerative prices, millers and traders become the focus of public attention, imports are hurriedly arranged, and governments announce yet another set of measures to contain the crisis. Then, after the immediate problem subsides, the matter recedes from the national agenda, until the next crisis arrives.

Why does this keep happening despite decades of agricultural research, policy interventions, expert committees and public debate?

Perhaps because we have been asking the wrong question. The fundamental problem is not simply how to produce more rice. Nor is it merely a question of prices, imports, fertiliser, farmers, millers or markets. The rice conundrum is a complex national systems problem.

We cannot solve a system by fixing its parts in isolation

Sri Lanka’s rice sector is an intricate web of interconnected systems involving agriculture, land, water, climate, technology, finance, energy, transport, markets, trade, governance, institutions and consumer behaviour. A decision made in one part of this system can have consequences, sometimes unintended, in another.

A change in fertiliser policy, for example, can affect productivity and production costs, which in turn influence farmer profitability, market prices and the need for imports. Irrigation decisions affect not only production, but also water availability, energy use and environmental sustainability. Guaranteed prices influence farmers’ cropping decisions, while import policies can simultaneously protect consumers and weaken incentives for domestic production. Likewise, market concentration can affect both the price received by farmers and the price paid by consumers. This is precisely why isolated interventions so often produce disappointing results. We keep treating symptoms while leaving the underlying system largely untouched.

For decades, we have generated valuable scientific knowledge on individual aspects of rice production and marketing. But knowledge generated within disciplinary and institutional silos does not automatically translate into solutions to complex real-world problems. What is needed now is a fundamentally different way of thinking.

From a “rice crop” to a “rice system”

The first step is to stop looking at rice simply as something that is grown in a paddy field.

The rice system begins with land, water, seed, inputs, technology and finance. It extends through cultivation, harvesting, drying, milling, storage, transport, wholesale and retail marketing, and finally to the consumer’s table. At every stage, there are different interests, incentives, constraints and actors: farmers, farmer organisations, input suppliers, machinery operators, millers, traders, wholesalers, retailers, financial institutions, government agencies, researchers and consumers.

And hovering over the entire system are climate change, changing consumer preferences, technological transformation and national economic conditions. A weakness anywhere in this chain can compromise the performance of the whole system.

Consider post-harvest losses. If significant quantities of rice are lost because of inadequate drying, storage or processing facilities, increasing production alone cannot solve the problem. Similarly, if farmers produce efficiently but face weak markets and poor bargaining power, productivity gains may not translate into improved livelihoods.

The question, therefore, should not be “How much rice can we produce?” but “How can we make the entire rice system work better?”

That requires us to see the connections.

The missing ingredient: reliable, real-time information

There is another fundamental weakness that deserves urgent attention: we still lack a comprehensive, integrated, interoperable and reliable national information system for rice. Information is scattered among different institutions, often collected using different methodologies and not necessarily available when decisions need to be made.

How much rice will actually be produced? How much is in storage? What is the likely demand? Where are the emerging production shortfalls? What are the stocks held by different actors? How are prices moving along the value chain? What are the likely consequences of climate conditions? Without timely and reliable answers to such questions, policymakers are forced to make critical decisions with incomplete information. This is not merely an administrative inconvenience. It is a national food-security vulnerability.

Sri Lanka should therefore seriously consider establishing a National Rice Intelligence and Decision Support System (NRIDSS), an integrated digital platform that brings together relevant real-time information from agriculture, meteorology, irrigation, markets, trade, statistics and other institutions. Such a system could support production forecasting, market monitoring, import decisions, early warning and evidence-based policy formulation. In an increasingly uncertain climate and volatile global economy, this should no longer be regarded as a luxury. It is becoming an essential component of national food-system governance.

The deeper problems cannot be ignored

A systems approach would also force us to confront some uncomfortable structural realities. Why does productivity remain relatively low despite decades of research? Why are so many holdings too small to achieve economies of scale? Why are modern technologies and precision agriculture not being adopted more rapidly? Why do farmers often have limited bargaining power? Why do substantial losses occur after harvesting? Why can market power become concentrated in a relatively small number of actors? Why are guaranteed prices sometimes announced too late to influence farmers’ production decisions? Why are policy interventions so often reactive rather than proactive? And how will droughts, floods, temperature extremes, changing rainfall patterns and emerging pests affect the stability of rice production in the years ahead? These are not separate questions. They are parts of the same system.

From crisis management to systems governance

Sri Lanka does not need another isolated discussion about rice. What is needed is a national policy dialogue and action forum that brings all relevant actors together, not merely to exchange speeches, but to develop a shared understanding of the system and agree on what needs to be done. Such collaboration must go beyond consultation or the exchange of views. The different parties need to work together from problem definition through to implementation, bringing their diverse knowledge, perspectives, interests and practical experience into a common process.

Farmers bring contextual and experiential knowledge; industry actors understand market realities and operational constraints; scientists contribute evidence and analytical capabilities; policymakers bring institutional and regulatory perspectives; while technology and data specialists can provide new tools for understanding and managing the system. When these different perspectives are brought together systematically, they can reveal interdependencies, challenge assumptions, identify feasible interventions and generate solutions that are evidence-based, practically implementable and socially acceptable.

This is the essence of a transdisciplinary systems approach: not simply working across disciplines, but bringing together multiple stakeholders and multiple forms of knowledge to co-create solutions and share responsibility for outcomes. The process should therefore go beyond presentations and speeches. It should involve systems mapping, causal analysis, stakeholder dialogue, scenario planning and the participatory identification of the critical bottlenecks and leverage points in the rice system. Most importantly, it should distinguish between what is urgent and what is important, and between interventions that merely alleviate symptoms and those capable of changing the underlying behaviour of the system itself.

We need an implementation roadmap, not another report

There is, however, one important caveat. Sri Lanka has no shortage of reports, recommendations and policy documents. What we often lack is sustained implementation. Any national initiative on the rice conundrum must therefore end not with another set of broad recommendations but with a prioritised national action roadmap. It should identify short-, medium- and long-term actions, assign institutional responsibilities, establish timelines and define measurable indicators of progress. The ultimate objective should be to move Sri Lanka from reactive crisis management to proactive systems governance.

A national opportunity

The rice conundrum may, in fact, provide Sri Lanka with an opportunity that extends well beyond rice to deal with other important crops. If we can demonstrate that a complex national problem can be addressed by bringing together science, policy, stakeholder knowledge, real-time information and systems thinking, the approach could become a model for addressing other persistent challenges, from climate resilience and water security to energy, food systems and disaster risk.

The choice before us is therefore quite stark. We can continue responding to each rice crisis as it emerges, adjusting prices, arranging imports, appealing to millers, reassuring consumers and supporting farmers, only to repeat the cycle later. Or we can step back and ask a more fundamental question:

What is it about the way our rice system is structured and governed that continually produces these crises?

That is the question that needs to be answered. Sri Lanka has the scientific expertise, institutional capacity and stakeholder knowledge required to do so. What is needed now is the willingness to bring these fragmented sources of knowledge together and examine the rice sector as one interconnected system.

Our ancient civilisation understood the importance of interconnectedness: land, water, agriculture and society were organised as parts of a larger whole. Perhaps, in confronting the modern rice conundrum, we need to rediscover that systems wisdom, this time supported by modern science, technology, real-time data and transdisciplinary thinking. The time has come to stop merely managing the rice crisis. It is time to fix the system that keeps producing it.

It is against this backdrop that the Sri Lanka Association for the Advancement of Science (SLAAS) proposes to convene shortly a “National Policy Dialogue and Action Forum on the Rice Conundrum in Sri Lanka”, bringing together the key stakeholders across the rice system. The Forum is intended to provide a platform for moving beyond piecemeal and reactive interventions towards a coordinated, evidence-based and transdisciplinary systems approach, one capable of generating lasting and pragmatic solutions to what has become an “island-shaking national issue”.

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This curse of partisan politics in Sri Lanka

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78 Years of Demagoguery, Not Democracy

by Brigadier Ranjan de Silva
rpcdesilva@gmail.com

On the 4th of February every year, we raise the lion flag and speak of democracy. We speak of 78 years of “self-rule.” But honesty demands we ask: what kind of rule have we actually had? It was not democracy. Democracy is government for the common good, constrained by law, informed by reason, and accountable to truth.

What Sri Lanka has had for 78 years is demagoguery — government by manipulation, by party, and by passion.

Defining the Curse:

The dictionary defines demagoguery as “political activity that seeks support by appealing to the desires and prejudices of ordinary people rather than by rational argument.” Its tools are simple: divide the people, promise the impossible, demonize the opponent, and govern for the next election, not the next generation. That is the political culture we inherited in 1948 and perfected since.

78 Years of Evidence:

The record is not ambiguous. Policy by Pendulum – 1948–2024. Instead of a national development plan, we got a partisan wrecking ball. 1956: The “Sinhala Only Act” was passed not after linguistic study, but as an election mobilization tool. 1970-77: The SLFP nationalized private enterprise and imposed import controls. 1977: The UNP reversed course with an open economy overnight. 2005-2014: Mega infrastructure was built on Chinese loans with no feasibility transparency. 2015-2019: Those same projects were called “white elephants” and stalled. 2020-2021: The organic fertilizer ban was announced as a populist “green” policy, reversed 6 months later after it collapsed agriculture and food prices. The Colombo Port City, Hambantota Port, and the Central Expressway all followed the same pattern: started, stopped, rebranded. The country pays twice. The party takes credit once. Economics as Election Candy. Demagoguery is expensive. 1960s: Subsidized rice to win rural votes, leading to the 1971 food crisis.

2005-2014:

Fuel subsidies and public sector hiring sprees that doubled the wage bill. 2019:

Unfunded tax cuts that removed Rs. 500 billion in annual revenue with no offset. By April 2022, external debt hit $51 Billion and we defaulted for the first time. The party that cut taxes was not in power to manage the IMF program. The party that inherited it was blamed for the austerity. This is the cycle. Institutions captured. A democracy needs referees. We turned them into party cadres. The 17th Amendment 2001 created independent commissions. The 18th Amendment 2010 abolished them. The 19th 2015 restored them. The 20th 2020 gutted them again. Police transfers, university vice-chancellors, and state bank chairmen have all been decided by party headquarters, not merit.

When the institution serves the party, the citizen gets leftovers.

Identity over Ideas: From 1956 to 1983 to 2009 to 2022, our elections have been won on fear, not spreadsheets. “They will erase your language.” “They will sell the country.” “Only we can protect Buddhism/the minorities/the nation.”

Rational debate on debt, productivity, or climate adaptation never wins a rally. Prejudice does. That is demagoguery by definition.

Party Interest subverted the National Interest. The core damage of 78 years of partisan politics is this: the nation became secondary to the party. Need power sector reform? Impossible, because our unions will strike. Need to cut 300,000 ghost employees? Impossible, because our voters will defect. Need a 20-year education and export plan? Impossible, because it won’t show results before the next election. So, we borrowed. We patched. We lied. The result: a railway system that still runs on 1950s engines, hospitals without paracetamol in 2022, and a brain drain of 300,000+ skilled workers since the crisis. The parties rotated. The country declined.

The Opposition’s Original Sin and here, all parties share guilt equally. In opposition, the job is not to govern. It is to destroy. The UNP in the 60s called the SLFP “communist.” The SLFP in the 70s called the UNP “imperialist.” The JVP called both “traitors.” The SJB, SLPP, and NPP today use the same script with new logos. Every tax is “anti-people.” Every reform is “a sell-out.” Every crisis is proof the other side is evil and must be removed at any cost. Then they win. And implement 80% of what they opposed. Because demagoguery has no principles, only positions. 78 years of unmerciful, bad-faith criticism has not produced accountability. It has produced cynicism. The public now believes all politicians are the same — because for 78 years, they have behaved the same.

Breaking the Curse:

Changing the party in power will not end this. We must change the incentives that reward demagoguery. Three reforms are non-negotiable: Bind future Parliaments to national policy. Pass 10-year frameworks for energy, education, and public debt with 2/3 majority protection. Infrastructure and fiscal rules should outlast one government, as they do in Chile and New Zealand. Depoliticize the state. Independent commissions for police, elections, public service, and bribery must have constitutional budgets and appointment panels that exclude MPs. No more 18th/20th Amendment style rollbacks. Demand better from voters We must stop rewarding the best slogan and start demanding the best spreadsheet. Town halls over rallies. Costings over promises. A 5-year plan over a 5-minute speech.

In 1948, we did not inherit democracy. We inherited an election. For 78 years we have used that election to choose our favourite demagogue. The prize has been debt, division, and decay. The curse of partisan politics will only end when citizens and leaders agree on one principle: Party second. Country first. Until then, February 4th will remain a ceremony, not a celebration.

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Developing markets for fruits, vegetables and flowers in the Gulf

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Image courtesy Export Development Board)

Export diversification – Missing the wood for the trees – Part II

by Gomi Senadhira

Sri Lanka established its diplomatic presence in the Gulf region only in the early 1980s. First, a small embassy was opened in Abu Dhabi, covering the UAE. Then in 1982, embassies were opened in Jeddah and Kuwait. The embassy in Jeddah covered Saudi Arabia while Kuwait was responsible for Kuwait, Oman, Qatar and Bahrain. Commercial Diplomats were also assigned to these two embassies. A senior private sector executive, with experience in marketing, was posted to Jedda as the commercial counsellor. I was posted to Kuwait as a second secretary (Commercial). Our instructions were very clear. Focus not only on traditional exports. Product diversification was a priority.

Developing Markets for Agricultural Products

At that time, Minister Lalith Athulathmudali had just launched his Export Production Villages (EPV) programme. He believed that the EPVs working closely with the exporters would provide an ideal opportunity for rural households to directly benefit from the government’s new open trade policy. Agricultural products, particularly fruits and vegetables, were a key component of this approach and the ministry thought that the Gulf countries, with large Sri Lankan communities, would have a ready-made market for these items. Thus, from day one we were compelled to explore the market for nontraditional exports; fruits and vegetables (F&Vs) were on the top of our priority list.

From cane baskets to cardboard boxes

Fortunately, the market for the F&Vs products in the region was at a very early stage of development. That provided an opportunity for Sri Lankan exporters, who were also inexperienced, to work with the importers and grow together. For example, in Kuwait, one of our first customers for F&Vs was a small supermarket where the manager was a Sri Lankan. After the first shipment arrived, he invited me to inspect the shipment. I visited the supermarket and was shocked by what I saw. While produce from other countries was packed nicely in cardboard boxes, our packaging mirrored transport to Manning market, cane baskets! As a result, fresh produce had suffered significant damage. A long report, with photographs, to the trade ministry produced an immediate response. After all, this was a pet project of the Minister. Within weeks, shipments were packed in cardboard boxes. Immediately afterwards, an expert on packaging from the Commonwealth Secretariat was sent to Kuwait with an official from the EDB to study the problem.

By then, we had also managed to develop a friendship with the management of the Salmiya supermarket, a large upmarket supermarket patronised by wealthy Kuwaitis and expats. It was a cooperative and the chairman was a Kuwaiti public servant. I could only meet him after 6 PM when his large office functioned as a diwaniya, a cherished cultural space in Kuwaiti society. Guests moved in and out the room. I had to spend time with them sipping many cups of tea. Though that meant at least two hours on each visit, it helped greatly to develop a close relationship. The general manager was an efficient and friendly Palestinian. After many visits we had succeeded in getting an order for F&Vs. The day after the first shipment arrived, I got an urgent call from the GM to come and inspect it. Once again, I was in for a surprise. Inside the cold room, the consignments from other countries were stacked neatly on top of each other, while vegetable boxes from Sri Lanka had collapsed once placed on top of each other, crushing the produce within.

Fortunately, our packaging experts arrived in Kuwait soon after this incident. They spent two days in the Salmiya Supermarket, studying the packaging from other origins. We were also successful in assuring the GM our packaging would improve. After that, packaging improved and exports moved smoothly. With that, Sri Lanka emerged as a small but reliable supplier to the mainstream market, not just the ethnic segment of the market.

Export of Fresh Vegetables by Sea

Towards the end of my tour, a Sri Lankan businessman requested me to find a buyer for cabbages, which he was prepared to export in large quantities by sea. I introduced him to the largest fruit and vegetable importer in Kuwait. Their regular suppliers of similar vegetables were Jordan, Lebanon and Syria. Luckily, the company was keen to diversify the supply sources. A few weeks later, the first container load of cabbages from Sri Lanka arrived in Kuwait. Immediately after the arrival of the container, I visited the company. They were pleased with the quality and the price and were looking forward to importing more fruits and vegetables. Unfortunately, that turned out to be a one-off event. Later on, when I was back in Sri Lanka, the exporter informed me that he couldn’t continue with it due to the problems with the local supply chains.

Floriculture

During the period I was asked by the EDB to explore the market for floricultural products, more particularly for cut flowers. At that time Kuwait was a relatively large importer of cut flowers and live plants. The main suppliers were the Netherlands and Colombia. Importers were also reluctant to move out of the established supply chain, particularly due to “snob value” associated with the product from Europe. However, after some difficulties, one importer agreed to place a pre-paid trial order. After the arrival of that shipment, he was impressed by the quality of the product and the orders expanded rapidly. As a result, by the end of 1985 Kuwait had become a major buyer of Sri Lanka’s floricultural products.

From village to global markets

As a result of the proactive promotional work undertaken by the EDB and the embassies in the region, by 1985, Sri Lanka had managed to acquire a small but significant share of the F&V and floriculture markets in the GCC countries. We had also identified domestic supply chain issues that hindered exports. All that was done, long before Southeast Asian or African countries even entered into that market. In fact, my Southeast Asian colleagues used to contact me often to reserve “durian” for them at the “Sri Lankan supermarket”.

Most importantly, a substantially large share of produce from Sri Lanka in Kuwaiti supermarkets originated in the EPVs. Of course, that didn’t just happen. The ministry (or the minister) using the carrot and stick approach “encouraged” exporters to buy the produce directly from the newly established EPVs. (The writer can be reached at senadhiragomi@gmail.com)

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