Midweek Review
Foreign Exchange Crisis
By Dr. C. S. Weeraratna
csweera@sltnet.lk Sri Lanka is facing a deepening financial crisis. According to media reports there is a short supply of essential items such as fuel, medicine and gas for domestic use attributed to the foreign exchange (FE) crisis. Dhammika Perera (DP) has proposed a seven-pronged strategy to overcome Sri Lanka’s foreign exchange crisis (The Island 30 January).
One of the strategies suggested by DP is that the government build a university town consisting of five universities within 30 minutes from the Bandaranaike International Airport at Katunayake, to accommodate 150,000 students (30,000 at each university). This is an excellent idea but it will cost the government at least Rs10 billion at the rate of Rs 2 billion per university. Once the universities are built, it will be necessary to get qualified academic staff and suitable accommodation. Further it will take a couple of years to build the five universities. Some need to have laboratories and equipping these adequately is expensive, time consuming and requires a substantial amount of FE. It is a long-term project. Currently, there are 17 universities located in different parts of the country. Perhaps, it may be more realistic if five selected universities already functioning are developed to meet the required standards. Instead of having all the five selected universities in Katunayaka it would be desirable if there is at least one in the north and another one in the east so that those in these regions are also benefited.
Another strategy proposed by DP is to build two hospitals like Singapore’s Mount Elizabeth with internationally recognised facilities. As in the case of establishing new universities, building two such hospitals will take a long time, perhaps two to three years and will require a great deal of foreign exchange. Developing some existing hospitals to meet the stipulated standards may be a realistic alternative.
The total extent under coconut cultivation in Sri Lanka is around 400,000 ha and about 325,000 ha are small holdings. The annual production of coconut has been fluctuating around 3,000 million nuts, (approximately 6000 nuts per hectare). As suggested by DP, developing the coconut industry by planting 1.5 million nuts annually is very timely. At the same time the state of the existing coconut plantations should be looked into. If the production of the existing coconut lands is increased by 1000 nuts per hectare per year through better management and applying organic and inorganic fertilisers, the total production can be increased substantially within a year which will increase the export income from coconut.
One of the main strategies to solve the current FE crisis would be to increase export earnings and reduce expenditure on imports. Most of the activities involved are short term while the others are medium or long term.
Increase export earnings
The dire need to increase our export earnings to meet the severe financial crisis we are facing today has been emphasised by many. Increasing exports is of paramount importance to improve the present FE situation. A major source of FE is the plantation sector. Around 800,000 ha are cultivated with plantation crops tea, rubber and coconut and this sector, in the last few years, earned nearly Rs. 360 billion annually. However, as indicated in table 1, these major export crops do not show a substantial increase in production during the last five years and the contribution from this sector has remained at nearly 20 percent of the export income. Consequently, strategies need to be implemented to increase production and thereby, FE earnings from this sector. There are many state sector organisations to implement such strategies.
As shown in Table 1 tea production has been fluctuating around 300 million kg per year during the last five years, in spite of several institutions assigned to the tea sector. The average tea yields are considerably lower than the potential yields. It has been reported that some of the cultivars developed by the Tea Research Institute of Sri Lanka had been yielding around 8,000 kg per hectare in South India under commercial conditions but the average tea yield in Sri Lanka is much lower. In the smallholder tea sector the average yield is around 1800 kg per hectare and in the estate sector it is about 1200 kg per hectare. In 2020 tea earned Rs. 230 billion in FE. Better management practices in the short term would increase the quantity and quality of the tea produced making it possible to increase FE earnings substantially from the current Rs. 230 billion.
Rubber is another important export crop. In 2017 it earned nearly Rs. 6 billion in foreign exchange but has decreased during the following three years. Based on Central Bank annual reports, the total Rubber production in 2010 was 152.9 million kg and by 2019 it had plummeted to 74.8 million kg. The corresponding average yields are 1561 kg per hectare and 665 kg per hectare respectively. These figures indicate that the Sri Lankan rubber sector is ailing in spite of several institutions assigned to promote rubber production in the country. With the current higher rubber prices it would be possible to earn more FE by increasing rubber production through better management practices which would produce results in the short term. In the last few years the rubber sector was affected by many factors, one of which is ineffective management.
Coconut production too has declined during the last five years as shown in Table 1. This appalling situation in the plantation sector can be attributed to many factors. If the productivity of this sector is raised, by implementing better management practices it would be possible to increase foreign exchange earnings. Most of these practices would produce results in the short term.
A large number of crops, other than tea, rubber and coconut, cultivated in Sri Lanka have high potential as export crops. There are 24 agro ecological zones, each characterised by a specific climate and soil. This makes possible the cultivation of different types of crops such as spice crops, tuberous crops, horticultural (fruit crops) and floricultural crops and medicinal herbs.
Sri Lanka is famous for spices. The most sought after spice crops are cinnamon, pepper, cloves, cardamoms, nutmeg, mace and vanilla which grow in abundance mainly in the wet and intermediate zone. In 2020 the county earned nearly Rs.60 billion by exporting spice crops.
Cinnamon is the most important spice commodity in the spice sector. In 2019, it earned around Rs. 32 billion in FE. The production of cinnamon has been fluctuating around 20,000 tonnes per year during the last few years. Sri Lanka received its first ever Geographical Indication (GI) certification when the European Union (EU) Commission on 2 February, 2022 granted GI status to Ceylon Cinnamon. This would increase the demand for Sri Lanka cinnamon.
Pepper is the second most important commodity among spices. It is grown in the wet and intermediate zones mostly as a mixed crop. The Sri Lankan Pepper has a higher piperine content which gives it a superior quality and pungency. Annual production of pepper too has remained stagnant at around 20,000 kg.
Other spices such as cloves, cardamom, nutmeg and mace have the potential to earn a substantial amount of FE. With the increase of international demand for natural products, and the government’s focus on enhancing and diversifying its value added range, spices and essential oils extracted from these crops will continue to earn more FE.
Dehydrated food is another agricultural product which has the potential to earn much needed FE. During some months there is a glut of fruits and exporting dehydrated or canned fruits would bring in an appreciable amount of FE.
In any programme or plan to increase foreign exchange earnings from the agriculture sector, agro-industries have to be given much emphasis. A large number of crops cultivated in Sri Lanka have considerable potential in various agro-industries. However only rubber, coconut and a few fruit crops are used in industries. Crops such as cassava, horticultural and floricultural crops, medicinal herbs, cane, bamboo, sunflower, castor and ayurvedic herbs have a considerable industrial or export potential but are not cultivated to any appreciable extent. Development of agro-industries will also increase export income and will have a tremendous impact on the economy of the country and also provide employment opportunities to rural people. The private sector can get involved in such projects for which appropriate technical assistance needs to be provided by the relevant public organisations.
Decrease expenditure on imports
While implementing strategies to increase our FE income by promoting exports, action also needs to be taken to decrease our expenditure on imports. During the period between 2017 and 2020 annual expenditure on importing food has been around Rs. 320 billion. The current expenditure on food imports is likely to be even higher due to the depreciation of the SL rupee, and shortage of rice and other food crops, the result of banning import of agrochemicals.
One of the problems the country is facing is the fuel crisis, which is likely to have extremely undesirable repercussions. A large sum of money is spent on importing petroleum to Sri Lanka. In 2020 we have imported fuel worth Rs 540 billion. If we are going to consume petroleum products at the current rate, at least an additional Rs. 50 billion will have to be spent in 2022. Consequently, it is essential to reduce petrol and diesel consumption. In many other countries such as China, Thailand and Singapore, action has already been taken to reduce fuel or power consumption and cut down wastage. If we reduce our power consumption by 10 percent, it will result in a saving of Rs 60 billion in foreign exchange.
Studies conducted in many countries have found that ethanol is a viable alternative for petrol. Many countries are either producing or using ethanol in large quantities or are providing incentives to expand ethanol production and use. Prompted by the increase in oil prices in the 1970s, Brazil introduced a program to produce ethanol for use in automobiles to reduce oil imports. Brazilian ethanol is made mainly from sugar cane. Among other countries using ethanol as a bio fuel are Australia, France, India, Sweden, USA and South Africa. Use of ethanol tends to reduce environmental pollution caused by compounds such as tetraethyl lead, used in petrol. Ethanol can be made from high starch containing crops such as manioc and maize, or high sugar containing crops such as sugarcane. These crops are cultivated in Sri Lanka. Around 10 million litres of alcohol are produced annually at Pelwatta and Sevanagala sugar factories. These can be mixed with petrol to be used at least in three wheelers so that those who use them need not pay higher fares. A few years ago former Science and Technology Minister Dr. Thissa Witharana appointed a committee to look into the possibility of using substitutes for fuel. The committee recommended the use of ethyl alcohol and Jatropha oil as bio-fuels. No follow-up action was taken by the subsequent governments to promote these alternatives as biofuels. Oil from Jatropha (Weta Erandu), a crop that can be grown widely in the Dry Zone of Sri lanka, can be used as a biofuel.
Dendro power can be generated using fast growing nitrogen fixing trees such as gliricidia and Leucaena. These crops can be used not only to generate electricity but are also a good source of animal feed and fertilisers. It may be more beneficial to grow these crops in eroded tea lands where the yields are relatively low. Soil erosion in such tea lands can also be reduced by growing these crops. The Bio Energy Association of Sri Lanka has been instrumental in promoting cultivation of gliricidia.
Sri Lanka, a country begging for dollar loans to import medicine and fuel, which are critical, need to have flexible export and import policies. As indicated above, there are 24 agro ecological zones, each characterised by a specific climate and soil. This makes possible the cultivation of different types of crops. Most of the food imported can be locally produced, thereby reducing expenditure on food imports. A closer look at the imports indicate that around Rs. 50 billion (nearly 16 percent of food imports) in FE is spent on importing sugar, most of which can be locally produced. The total annual requirement of sugar in the country is around 620,000 tonnes, but only about 50,000 tonnes are produced locally. Sugarcane has a considerable potential to reduce food import expenditure. Sugar production in the country has not increased by any appreciable amount during the present decade. The Kantale sugar factory remains closed while a plan to cultivate sugarcane in Bibile remains shelved. Jaggery made from kitul, and sugarcane are good substitutes for sugar manufactured from sugarcane.
A substantial amount of foreign exchange is spent on importing milk. In 2020 Rs. 60 billion in FE was spent on importing milk and dairy products. We have around 1 million mostly indigenous cattle. Their productivity is low (one to three litres per day) mainly due to the poor nature of the breeds and inadequate low quality feed supply. The dairy industry has the potential to contribute considerably to solve Sri Lanka’s FE crisis. Milk production can be increased by increasing availability of cattle feed and thereby an appreciable amount of foreign exchange spent on milk imports can be reduced. Milk production also plays an important role in alleviating malnutrition and offers many employment opportunities. If milk production can be increased, an appreciable amount of foreign exchange spent on milk imports can be reduced, while also improving the nutritional status of the people.
Expenditure on subsidiary food crops such as chillies, green gram, ground nut and potato is few billions of rupees. The extent under these crops and their average per hectare yields have not increased by any appreciable amount during the last decade. A few years ago, a former Minister of Agricultural Development, Chamal Rajapaksa appointed an Advisory Panel to make proposals to develop the agricultural sector so that there is a quantitative and qualitative increase in crop production at a lower cost with no damage to the environment. The recommendations of the panel were mainly on the development and use of better varieties of seeds and planting material; effective control of weeds, insect pests and diseases; better water management, and water conservation; proper use of inorganic and organic fertilisers; control of soil degradation and appropriate land use; promotion of agro-industries and carrying out relevant agricultural research and use of their findings. During the last few years numerous programmes such as AMA, ‘Waga Sangramaya’ and ‘Govi Sevana’ were implemented. All these activities and programmes, appear to have not made any appreciable positive impact on the agricultural sector of the country, indicated by increasing expenditure on food.
In addition to sugar, milk and rice, we spend a colossal sum on importing food items which can be locally produced. Among these are lentils (Rs. 20 billion), onions (Rs 16 billion), maize (Rs. 10 billion), fruits and vegetables and spices, mainly chillies. Even herbs such as katuwelbatu and Thippili, which can be produced locally and used in ayurvedic drugs, are imported at a cost of nearly six million US dollars every year. Most of these crops can be cultivated in the dry zone, where only about two million acres are in productive use out of the 4.5 million ha. Non-availability of adequate rainfall during the Yala season is one of the limiting factors of crop production in the dry zone. However, better water management practices and rainwater harvesting would resolve this limitation.
Although hundreds of research projects related to plantation and food crops are carried out by the faculties of agriculture and Department of Agriculture there appears to be very little liaison or interaction between the relevant institutions, to utilise the research findings in our efforts to increase productivity in the agriculture sector, which will result in saving an appreciable amount of FE.
Midweek Review
How massive Akuregoda defence complex was built with proceeds from sale of Galle Face land to Shangri-La
The Navy ceremonially occupied its new Headquarters (Block No. 3) at the Defence Headquarters Complex (DHQC) at Akuregoda, Battaramulla, on 09 December, 2025. On the invitation of the Commander of the Navy, Vice Admiral Kanchana Banagoda, the Deputy Minister of Defence, Major General Aruna Jayasekara (Retd) attended the event as the Chief Guest.
Among those present were Admiral of the Fleet Wasantha Karannagoda, the Defence Secretary, Air Vice Marshal Sampath Thuyacontha (Retd), Commander of the Army, Lieutenant General Lasantha Rodrigo, Commander of the Air Force, Air Marshal Bandu Edirisinghe, Inspector General of Police, Attorney-at-Law Priyantha Weerasooriya and former Navy Commanders.
With the relocation of the Navy at DHQC, the much-valued project to shift the Ministry of Defence (MoD) and Headquarters of the war-winning armed forces has been brought to a successful conclusion. The Army was the first to move in (November 2019), the MoD (May 2021), the Air Force (January 2024) and finally the Navy (in December 2025).
It would be pertinent to mention that the shifting of MoD to DHQC coincided with the 12th anniversary of bringing back the entire Northern and Eastern Provinces under the government, on 18 May, 2009. LTTE leader Velupillai Prabhakaran was killed on the following day.
The project that was launched in March 2011, two years after the eradication of the Liberation Tigers of Tamil Eelam (LTTE), suffered a severe setback, following the change of government in 2015. The utterly irresponsible and treacherous Yahapalana government halted the project. That administration transferred funds, allocated for it, to the Treasury, in the wake of massive Treasury bond scams perpetrated in February and March 2015, within weeks after the presidential election.
Maithripala Sirisena, in his capacity as the President, as well as the Minister of Defence, declared open the new Army Headquarters, at DHQC, a week before the 2019 presidential election. Built at a cost of Rs 53.3 bn, DHQC is widely believed to be the largest single construction project in the country. At the time of the relocation of the Army, the then Lt. Gen. Shavendra Silva, the former Commanding Officer of the celebrated Task Force I/58 Division, served as the Commander.
Who made the DHQC a reality? Although most government departments, ministries and armed forces headquarters, were located in Colombo, under the Colombo Master Plan of 1979, all were required to be moved to Sri Jayewardenepura, Kotte. However successive administrations couldn’t go ahead with the massive task primarily due to the conflict. DHQC would never have been a reality if not for wartime Defence Secretary Gotabaya Rajapaksa who determinedly pursued the high-profile project.
The absence of any reference to the origins of the project, as well as the significant role played by Gotabaya Rajapaksa at the just relocated Navy headquarters, prompted the writer to examine the developments related to the DHQC. The shifting of MoD, along with the Armed Forces Headquarters, was a monumental decision taken by Mahinda Rajapaksas’s government. But, all along it had been Gotabaya Rajapaksa’s determination to achieve that monumental task that displeased some within the administration, but the then Defence Secretary, a former frontline combat officer of the battle proved Gajaba Regiment, was not the type to back down or alter his strategy.
GR’s maiden official visit to DHQC
Gotabaya Rajapaksa, who made DHQC a reality, visited the sprawling building in his capacity as the President, Defence Minister and the Commander-in-Chief of the Armed Forces on the morning of 03 August, 2021. It was Gotabaya Rajapaksa’s maiden official visit to the Army Headquarters, located within the then partially completed DHQC, eight months before the eruption of the externally backed ‘Aragalaya.’ The US-Indian joint project has been exposed and post-Aragalaya developments cannot be examined without taking into consideration the role played by political parties, the Bar Association of Sri Lanka, media, as well as the weak response of the political leadership and the armed forces. Let me stress that a comprehensive probe should cover the period beginning with the Swiss project to humiliate President Gotabaya Rajapaka in November, 2019, by staging a fake abduction, and the storming of the President’s House in July 2022. How could Sri Lanka forget the despicable Swiss allegation of sexual harassment of a female local employee by government personnel, a claim proved to be a blatant lie meant to cause embarrassment to the newly elected administration..
Let me get back to the DHQC project. The war-winning Mahinda Rajapaksa government laid the foundation for the building project on 11 May, 2011, two years after Sri Lanka’s triumph over the separatist Tamil terrorist movement. The high-profile project, on a 77-acre land, at Akuregoda, Pelawatta, was meant to bring the Army, Navy, and the Air Force headquarters, and the Defence Ministry, to one location.
President Gotabaya Rajapaksa’s visit to Akuregoda would have definitely taken place much earlier, under a very different environment, if not for the eruption of the Covid-19 pandemic, just a few months after his victory at the November 2019 election. The worst post-World War II crisis that had caused devastating losses to national economies, the world over, and delivered a staggering blow to Sri Lanka, heavily dependent on tourism, garment exports and remittances by its expatriate workers.
On his arrival at the new Army headquarters, President Gotabaya Rajapaksa was welcomed by General Shavendra Silva, who also served as the Chief of Defence Staff. Thanks to the President’s predecessor, Maithripala Sirisena, the then Maj. Gen Shavendra Silva was promoted to the rank of Lt. Gen and appointed the Commander of the Army on 18 August, 2019, just three months before the presidential poll. The appointment was made in spite of strong opposition from the UNP leadership and US criticism.
President Gotabaya Rajapaksa hadn’t minced his words when he publicly acknowledged the catastrophe caused by the plunging of the national income and the daunting challenge in debt repayment, amounting to as much as USD 4 bn annually.
The decision to shift the tri-forces headquarters and the Defence Ministry (The Defence Ministry situated within the Army Headquarters premises) caused a media furor with the then Opposition UNP alleging a massive rip-off. Defence Secretary Gotabaya Rajapaksa reiterated his commitment to the project. If not for the change of government in 2015, the DHQC would have been completed during Mahinda Rajapaksa’s third term if he was allowed to contest for a third term successfully. Had that happened, Gotabaya Rajapaksa wouldn’t have emerged as the then Opposition presidential candidate at the 2019 poll. The disastrous Yahapalana administration and the overall deterioration of all political parties, represented in Parliament, and the 19th A that barred Mahinda Rajapaksa from contesting the presidential election, beyond his two terms, created an environment conducive for Gotabaya Rajapaksa’s emergence as the newly registered SLPP’s candidate.
Shangri-La move
During the 2019 presidential election campaign, SLPP candidate Gotabaya Rajapaksa strongly defended his decision to vacate the Army Headquarters, during Mahinda Rajapaksa presidency, to pave the way for the Shangri-La Hotel in Colombo. Shangri-La was among the hotels targeted by the Easter Sunday bombers – the only location targeted by two of them, including mastermind Zahran Hashim.
President Gotabaya Rajapaksa is on record as having said that vacation of the site had been in accordance with first executive President J.R. Jayewardene’s decision to move key government buildings away from Colombo to the new Capital of the country at Sri Jaywardenepura. Gotabaya Rajapaksa said so in response to the writer’s queries years ago.
Gotabaya Rajapaksa said that a despicable attempt was being made to blame him for the Army Headquarters land transaction. “I have been accused of selling the Army Headquarters land to the Chinese.”
Rajapaksa explained that Taj Samudra, too, had been built on a section of the former Army Headquarters land, previously used to accommodate officers’ quarters and the Army rugger grounds. Although President Jayewardene had wanted the Army Headquarters shifted, successive governments couldn’t do that due to the war and lack of funds, he said.
President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe declared open Shangri-La Colombo on 16 November, 2017. The Hong Kong-based Shangri-La Asia invited Gotabaya Rajapaksa for dinner, the following day, after the opening of its Colombo hotel. Shangri-La Chairperson, Kuok Hui Kwong, the daughter of Robert Kuok Khoon Ean, was there to welcome Gotabaya Rajapaksa, who had cleared the way for the post-war mega tourism investment project. Among those who had been invited were former President Mahinda Rajapaksa, former External Affairs Minister Prof. G.L. Peiris, former Presidential Secretary Lalith Weeratunga, and President’s Counsel Gamini Marapana, PC.
The Cabinet granted approval for the high-profile Shangri-La project in October 2010 and the ground-breaking ceremony was held in late February 2012.
Rajapaksa said that the Shangri-La proprietor, a Chinese, ran a big operation, based in Hong Kong, Malaysia and Singapore. Another parcel of land was given to the mega ITC hotel project, also during the previous Rajapaksa administration. ITC Ratnadipa, a super-luxury hotel by India’s ITC Hotels, officially opened in Colombo on April 25, 2024
Following the change of government in January 2015, the remaining section of the Army headquarters land, too, was handed over to Shangri-La.
Gotabaya Rajapaksa emphasised that the relocation of the headquarters of the Army, Navy, and Air Force, as well as the Defence Ministry, had been part of JRJ’s overall plan. The change of government, in January 2015, had caused a serious delay in completing the project and it was proceeding at a snail’s pace, Rajapaksa said. Even Parliament was shifted to Kotte in accordance with JRJ’s overall plan, Gotabaya Rajapaksa said, explaining his move to relocate all security forces’ headquarters and Defence Ministry into one complex at Akuregoda.
Acknowledging that the Army Headquarters had been there at Galle Face for six decades, Rajapaksa asserted that the Colombo headquarters wasn’t tactically positioned.
Rajapaksa blamed the inordinate delay in the completion of the Akuregoda complex on the Treasury taking hold of specific funds allocated for the project.
Over 5,000 military workforce

Gotabaya Rajapaksa’s maiden visit to DHQC on 3 August, 2021. General
Shavendra Silva is beside him
Major General Udaya Nanayakkara had been the first Director, Project Management Unit, with overall command of approximately 5,000 tri-forces personnel assigned to carry it out. The Shangri-La transaction provided the wherewithal to implement the DHQC project though the change of government caused a major setback. Nanayakkara, who had served as the Military Spokesman, during Eelam War IV, oversaw the military deployment, whereas private contractors handled specialised work such as piling, AC, fire protection and fire detection et al. The then MLO (Military Liaison Officer) at the Defence Ministry, Maj. Gen Palitha Fernando, had laid the foundation for the project and the work was going on smoothly when the Yahapalana administration withheld funds. Political intervention delayed the project and by September 2015, Nanayakkara was replaced by Maj Gen Mahinda Ambanpola, of the Engineer Service.
In spite of President Sirisena holding the Defence portfolio, he couldn’t prevent the top UNP leadership from interfering in the DHQC project. However, the Shangri-La project had the backing of A.J.M. Muzammil, the then UNP Mayor and one of the close confidants of UNP leader Ranil Wickremesinghe. Muzammil was among those present at the ground breaking ceremony for Shangri-La held on 24th February, 2012 ,with the participation of Minister Basil Rajapaksa.
Having identified the invaluable land, where the Army Headquarters and Defence Ministry were situated, for its project, Shangri-La made its move. Those who had been aware of Shangri-La’s plans were hesitant and certainly not confident of their success. They felt fearful of Defence Secretary Rajapaksa’s reaction.
But, following swift negotiations, they finalised the agreement on 28 December, 2010. Lt. Gen. Jagath Jayasuriya was the then Commander of the Army, with his predecessor General Fonseka in government custody after having been arrested within two weeks after the conclusion of the 2010 26 January Presidential poll.
Addressing the annual Viyathmaga Convention at Golden Rose Hotel, Boralesgamuwa, on 04 March, 2017, Gotabaya Rajapaksa, perhaps for the first time publicly discussed his role in the Shangri-La project. Declaring that Sri Lanka suffered for want of, what he called, a workable formula to achieve post-war development objectives, the war veteran stressed the pivotal importance of swift and bold decision-making.
Gotabaya Rajapaksa explained how the government had acted swiftly, and decisively, to attract foreign investments though some such efforts were not successful. There couldn’t be a better example than the government finalising an agreement with Shangri-La Hotels, he declared.
Declaring that the bureaucratic red tape shouldn’t in any way be allowed to undermine investments, Rajapaksa recalled the Chairman/CEO of Shangri-La Hotels and Resorts, Robert Kuok Khoon Ean, wanting the Army Headquarters land for his Colombo project. In fact, the hotels chain, at the time, had proposed to build hotels in Colombo, Hambantota and Batticaloa, and was one of the key investors wanting to exploit Sri Lanka’s success in defeating terrorism.
“Khoon-Ean’s request for the Army Headquarters land caused a serious problem for me. It was a serious challenge. How could I shift the headquarters of the war-winning Army? The Army had been there for six decades. It had been the nerve centre of the war effort for 30 years,” said Rajapaksa, who once commanded the First Battalion of the Gajaba Regiment (1GR)
Rajapaksa went on to explain how he exploited a decision taken by the first executive president J.R. Jayewardene to shift the Army Headquarters to Battaramulla, many years back. “Within two weeks, in consultation with the Secretary to the Finance Ministry, Dr. P.B. Jayasundera, and the Board of Investment, measures were taken to finalise the transaction. The project was launched to shift the Army, Navy and Air Force headquarters to Akuregoda, Pelawatte, in accordance with JRJ’s plan.”
The Hong Kong-based group announced the purchase of 10 acres of state land, in January 2011. Shangri-La Asia Limited announced plans to invest over USD 400 mn on the 30-storeyed star class hotel with 661 rooms.
The hotel is the second property in Sri Lanka for the leading Asian hospitality group, joining Shangri-La’s Hambantota Resort & Spa, which opened in June 2016.
Rajapaksa said that the top Shangri-La executive had referred to the finalisation of their Colombo agreement to highlight the friendly way the then administration handled the investment. Shangri-La had no qualms about recommending Sri Lanka as a place for investment, Rajapaksa said.
The writer explained the move to shift the Army Headquarters and the Defence Ministry from Colombo in a lead story headlined ‘Shangri-La to push MoD, Army Hq. out of Colombo city: Army Hospital expected to be converted into a museum’ (The Island, 04 January, 2011).
Yahapalana chaos
In the wake of the January 2015 change of government, the new leadership caused chaos with the suspension of the China-funded Port City Project, a little distance away from the Shangri-La venture. Many an eyebrow was raised when the then Finance Minister Ravi Karunanayake declared, in March, 2015, that funds wouldn’t be made available to the DHQC project until the exact cost estimation of the project could be clarified.
Media quoted Karunanayake as having said “Presently, this project seems like a bottomless pit and we need to know the depth of what we are getting into. From the current state of finances, allocated for this project, it seems as if they are building a complex that’s even bigger than the Pentagon!”
The insinuating declaration was made despite them having committed the blatant first Treasury bond scam in February 2015 that shook the Sirisena-Wickremesinghe administration to its core.
In June 2016, Cabinet spokesperson, Dr. Rajitha Senaratne, announced the suspension of the Akuregoda project. Citing financial irregularities and mismanagement of funds, Dr. Senaratne alleged that all Cabinet papers on the project had been prepared according to the whims and fancies of Gotabaya Rajapaksa.
The then Minister Karunanayake spearheaded the campaign against the DHQC project alleging, in the third week of January, 2015, that Rs 13.2 billion, in an account maintained at the Taprobane branch of the Bank of Ceylon had been transferred to the Consolidated Fund of the Treasury. The matter was being investigated as the account belonged to the Ministry of Defence, he added. The Finance Minister stressed that the MoD had no right to maintain such an account in violation of regulations and, therefore, the opening of the account was being investigated. The Minister alleged that several illegal transactions, including one involving Samurdhi, had come to light. He estimated the Samurdhi transaction (now under investigation) at Rs. 4 billion.
Having undermined Shangri-La and the DHQC projects, the UNP facilitated the expansion of the hotel project by releasing additional three and half acres on a 99-year lease. During the Yahapalana administration, Dayasiri Jayasekera disclosed at a post-Cabinet press briefing how the government leased three and a half acres of land at a rate of Rs. 13.1 mn per perch whereas the previous administration agreed to Rs 6.5 mn per perch. According to Jayasekera the previous government had leased 10 acres at a rate of Rs 9.5 mn (with taxes) per perch.
The bottom line is that DHQC was built with Shangri-La funds and the initiative was Gotabaya Rajapaksa’s whose role as rock solid wartime Secretary of Defence to keep security forces supplied with whatever their requirements could never be compared with any other official during the conflict.
By Shamindra Ferdinando
Midweek Review
The Hour of the Invisible
Picking-up the pieces in the bashed Isle,
Is going to take quite a long while,
And all hands need to be united as one,
To give it even a semblance of its former self,
But the more calloused and hardy the hands,
The more suitable are they for the task,
And the hour is upon us you could say,
When those vast legions of invisible folk,
Those wasting away in humble silent toil,
Could stand up and be saluted by all,
As being the most needed persons of the land
By Lynn Ockersz
Features
Handunnetti and Colonial Shackles of English in Sri Lanka
“My tongue in English chains.
I return, after a generation, to you.
I am at the end
of my Dravidic tether
hunger for you unassuaged
I falter, stumble.”
– Indian poet R. Parthasarathy
When Minister Sunil Handunnetti addressed the World Economic Forum’s ‘Is Asia’s Century at Risk?’ discussion as part of the Annual Meeting of the New Champions 2025 in June 2025, I listened carefully both to him and the questions that were posed to him by the moderator. The subsequent trolling and extremely negative reactions to his use of English were so distasteful that I opted not to comment on it at the time. The noise that followed also meant that a meaningful conversation based on that event on the utility of learning a powerful global language and how our politics on the global stage might be carried out more successfully in that language was lost on our people and pundits, barring a few commentaries.
Now Handunnetti has reopened the conversation, this time in Sri Lanka’s parliament in November 2025, on the utility of mastering English particularly for young entrepreneurs. In his intervention, he also makes a plea not to mock his struggle at learning English given that he comes from a background which lacked the privilege to master the language in his youth. His clear intervention makes much sense.
The same ilk that ridiculed him when he spoke at WEF is laughing at him yet again on his pronunciation, incomplete sentences, claiming that he is bringing shame to the country and so on and so forth. As usual, such loud, politically motivated and retrograde critics miss the larger picture. Many of these people are also among those who cannot hold a conversation in any of the globally accepted versions of English. Moreover, their conceit about the so-called ‘correct’ use of English seems to suggest the existence of an ideal English type when it comes to pronunciation and basic articulation. I thought of writing this commentary now in a situation when the minister himself is asking for help ‘in finding a solution’ in his parliamentary speech even though his government is not known to be amenable to critical reflection from anyone who is not a party member.
The remarks at the WEF and in Sri Lanka’s parliament are very different at a fundamental level, although both are worthy of consideration – within the realm of rationality, not in the depths of vulgar emotion and political mudslinging.
The problem with Handunnetti’s remarks at WEF was not his accent or pronunciation. After all, whatever he said could be clearly understood if listened to carefully. In that sense, his use of English fulfilled one of the most fundamental roles of language – that of communication. Its lack of finesse, as a result of the speaker being someone who does not use the language professionally or personally on a regular basis, is only natural and cannot be held against him. This said, there are many issues that his remarks flagged that were mostly drowned out by the noise of his critics.
Given that Handunnetti’s communication was clear, it also showed much that was not meant to be exposed. He simply did not respond to the questions that were posed to him. More bluntly, a Sinhala speaker can describe the intervention as yanne koheda, malle pol , which literally means, when asked ‘Where are you going?’, the answer is ‘There are coconuts in the bag’.
He spoke from a prepared text which his staff must have put together for him. However, it was far off the mark from the questions that were being directly posed to him. The issue here is that his staff appears to have not had any coordination with the forum organisers to ascertain and decide on the nature of questions that would be posed to the Minister for which answers could have been provided based on both global conditions, local situations and government policy. After all, this is a senior minister of an independent country and he has the right to know and control, when possible, what he is dealing with in an international forum.
This manner of working is fairly routine in such international fora. On the one hand, it is extremely unfortunate that his staff did not do the required homework and obviously the minister himself did not follow up, demonstrating negligence, a want for common sense, preparedness and experience among all concerned. On the other hand, the government needs to have a policy on who it sends to such events. For instance, should a minister attend a certain event, or should the government be represented by an official or consultant who can speak not only fluently, but also with authority on the subject matter. That is, such speakers need to be very familiar with the global issues concerned and not mere political rhetoric aimed at local audiences.
Other than Handunnetti, I have seen, heard and also heard of how poorly our politicians, political appointees and even officials perform at international meetings (some of which are closed door) bringing ridicule and disastrous consequences to the country. None of them are, however, held responsible.
Such reflective considerations are simple yet essential and pragmatic policy matters on how the government should work in these conditions. If this had been undertaken, the WEF event might have been better handled with better global press for the government. Nevertheless, this was not only a matter of English. For one thing, Handunnetti and his staff could have requested for the availability of simultaneous translation from Sinhala to English for which pre-knowledge of questions would have been useful. This is all too common too. At the UN General Assembly in September, President Dissanayake spoke in Sinhala and made a decent presentation.
The pertinent question is this; had Handunetti had the option of talking in Sinhala, would the interaction have been any better? That is extremely doubtful, barring the fluency of language use. This is because Handunnetti, like most other politicians past and present, are good at rhetoric but not convincing where substance is concerned, particularly when it comes to global issues. It is for this reason that such leaders need competent staff and consultants, and not mere party loyalists and yes men, which is an unfortunate situation that has engulfed the whole government.
What about the speech in parliament? Again, as in the WEF event, his presentation was crystal clear and, in this instance, contextually sensible. But he did not have to make that speech in English at all when decent simultaneous translation services were available. In so far as content was concerned, he made a sound argument considering local conditions which he knows well. The minister’s argument is about the need to ensure that young entrepreneurs be taught English so that they can deal with the world and bring investments into the country, among other things. This should actually be the norm, not only for young entrepreneurs, but for all who are interested in widening their employment and investment opportunities beyond this country and in accessing knowledge for which Sinhala and Tamil alone do not suffice.
As far as I am concerned, Handunetti’s argument is important because in parliament, it can be construed as a policy prerogative. Significantly, he asked the Minister of Education to make this possible in the educational reforms that the government is contemplating.
He went further, appealing to his detractors not to mock his struggle in learning English, and instead to become part of the solution. However, in my opinion, there is no need for the Minister to carry this chip on his shoulder. Why should the minister concern himself with being mocked for poor use of English? But there is a gap that his plea should have also addressed. What prevented him from mastering English in his youth goes far deeper than the lack of a privileged upbringing.
The fact of the matter is, the facilities that were available in schools and universities to learn English were not taken seriously and were often looked down upon as kaduwa by the political spectrum he represents and nationalist elements for whom the utilitarian value of English was not self-evident. I say this with responsibility because this was a considerable part of the reality in my time as an undergraduate and also throughout the time I taught in Sri Lanka.
Much earlier in my youth, swayed by the rhetoric of Sinhala language nationalism, my own mastery of English was also delayed even though my background is vastly different from the minister. I too was mocked, when two important schools in Kandy – Trinity College and St. Anthony’s College – refused to accept me to Grade 1 as my English was wanting. This was nearly 20 years after independence. I, however, opted to move on from the blatant discrimination, and mastered the language, although I probably had better opportunities and saw the world through a vastly different lens than the minister. If the minister’s commitment was also based on these social and political realities and the role people like him had played in negating our English language training particularly in universities, his plea would have sounded far more genuine.
If both these remarks and the contexts in which they were made say something about the way we can use English in our country, it is this: On one hand, the government needs to make sure it has a pragmatic policy in place when it sends representatives to international events which takes into account both a person’s language skills and his breadth of knowledge of the subject matter. On the other hand, it needs to find a way to ensure that English is taught to everyone successfully from kindergarten to university as a tool for inclusion, knowledge and communication and not a weapon of exclusion as is often the case.
This can only bear fruit if the failures, lapses and strengths of the country’s English language teaching efforts are taken into cognizance. Lamentably, division and discrimination are still the main emotional considerations on which English is being popularly used as the trolls of the minister’s English usage have shown. It is indeed regrettable that their small-mindedness prevents them from realizing that the Brits have long lost their long undisputed ownership over the English language along with the Empire itself. It is no longer in the hands of the colonial masters. So why allow it to be wielded by a privileged few mired in misplaced notions of elitism?
-
Features5 days agoWhy Sri Lanka Still Has No Doppler Radar – and Who Should Be Held Accountable
-
News1 day agoPakistan hands over 200 tonnes of humanitarian aid to Lanka
-
Midweek Review2 days agoHow massive Akuregoda defence complex was built with proceeds from sale of Galle Face land to Shangri-La
-
News1 day agoPope fires broadside: ‘The Holy See won’t be a silent bystander to the grave disparities, injustices, and fundamental human rights violations’
-
Latest News5 days agoLandslide early warnings in force in the Districts of Badulla, Kandy, Kegalle, Kurunegala, Matale, Nuwara Eliya and Ratnapura
-
News6 days agoGovt. okays postgraduate medical training for Maldivian medical officers and dental surgeons
-
Editorial5 days agoDisaster relief and shocking allegations
-
Features5 days agoSrima Dissanayake runs for president and I get sidelined in the UNP
