Features
How CSE is designed to fail retail investors
Six Charges, 700% More Expensive:
Imagine walking into two shops selling the same product. In the first shop, you pay a simple 0.6% fee. In the second shop, you’re hit with a bewildering array of charges from multiple entities, and by the time you’re done, you’ve paid 2.27%. And that’s for a complete transaction: buying and selling.
The Shocking Numbers
Sri Lanka loves to say it wants to “develop the capital market.” But the way we charge investors tells the real story – a story of policy confusion, fee-layering, and a system designed to favor big players while suffocating small retail investors.
The evidence isn’t hidden. It’s printed clearly in every contract note that brokers issue.
Think about what this means in real terms. If you’re a teacher, government servant, or small business owner investing Rs. 100,000 in shares, you’ll pay approximately Rs. 2,270 just to complete a buy-sell cycle in Sri Lanka. In New Zealand, that same transaction costs just Rs. 300.
Sri Lanka is nearly four times more expensive than New Zealand – for the exact same act of investing.
Death by a Thousand Cuts
The problem isn’t just the total amount – it’s the sheer complexity. While New Zealand streamlines everything into one clean charge, Sri Lankan investors face a labyrinth:
* Brokerage (negotiable, but only if you’re wealthy)
SEC Fee (Security Exchange Commission)
* CSE Fee (Colombo Stock Exchange)
CDS Fee (Central Depository Systems fees)
* STL (Share Transaction Levy)
Clearing Fee
* Foreign Brokerage for foreign transactions
* Various “special fees” are added periodically
Sri Lanka’s stock trading contract note reads like a mini-budget speech (Figure 1). Meanwhile, most modern markets charge one number. For an ordinary person trying to understand their contract note, it’s nearly impossible to figure out what they’re actually paying and why. Figures 2 and 3 show the stock trading “Sell” contract notes for a New Zealand Stock Exchange transaction and an Australian Stock Exchange transaction, (“Buy” contracts are similar) respectively.

The Rich Get Richer – By Design
Here’s where it gets truly disturbing. While small investors are locked into these punishing charges, the CSE allows brokers to negotiate lower fees for large transactions – typically those exceeding Rs. 100 million.
Let that sink in: If you’re a retail investor putting in your life savings of Rs. 500,000, you pay the full 2.27%. But if you’re moving Rs. 100 million, you get a discount.
This isn’t just unfair – it’s a systematic transfer of wealth from small investors to large players. The very people who need protection are subsidising the fees for those who need it least.
In modern markets like India, New Zealand, Canada, and Japan, all investors pay the same percentage. No negotiation. No special deals behind closed doors.

The Market Manipulation Connection
This two-tier system has darker implications. Large players, already enjoying preferential fee structures, have repeatedly been caught manipulating the market. The Securities and Exchange Commission has filed numerous cases against major investors for price manipulation, insider trading, and other violations.
These large players can:
* Move in and out of stocks quickly due to lower transaction costs
* Manipulate prices knowing small investors can’t react fast enough (their costs are too high)
* Accumulate positions while retail investors are trapped by the fear of paying 2.27% round-trip costs
Sri Lanka’s fee structure encourages large speculative swings, discourages genuine retail participation, creates an uneven playing field, and opens doors for manipulation and cornering of illiquid stocks.
The Ethical Bankruptcy of Regulatory Charges

Let’s call this what it is: regulatory authorities charging fees that actively harm the market they’re supposed to develop are ethically bankrupt. In most countries, regulators protect investors. In Sri Lanka, they bill investors. Every trade finance the regulator (SEC), the exchange operator (CSE), the clearing house (CDS), the broker, and the government (through VAT).
This is ethically questionable because:
Regulators must be neutral – not profit from transactions
Charging retail investors to fund regulation creates a conflict of interest
It reduces trust, especially after repeated market manipulation cases
When regulators impose charges that make it unprofitable for ordinary people to invest, they’re not protecting investors – they’re protecting their own revenue streams at the expense of market development. When exchanges allow discriminatory fee structures, they’re not creating a level playing field – they’re creating a rigged game.
Why Sri Lanka’s Market Cannot Grow
Sri Lanka keeps asking: “Why is liquidity so low? Why don’t more people invest? Why doesn’t the stock market support economic growth?” Based on my research, using AI tools, here’s a comprehensive comparison table of stock market participation across the countries we mentioned:
Sri Lanka stands out negatively. The CSE has 284 listed companies representing 20 business sectors. Despite having a population similar to Australia (22 million vs 26 million), Sri Lanka has an estimated 50-100 times fewer stock market participants.
According to the Central Depository Systems (CDS) Annual Report 2024 for the Colombo Stock Exchange (CSE), the total number of local account holders (traders/CDS holders) was approximately 706,864 in 2024, up from 693,415 in 2023. The number of foreign account holders was 11,082 in 2024 compared to 10,937 in 2023. This places the total number of traders around 718,000+ in 2023-2024.

Critical Implications
Sri Lanka’s stock market participation rate, estimated at a low 3-4%, starkly trails regional peers such as India, where participation hits 6-8%, roughly two to three times higher. This gap highlights a critical structural problem in the Colombo Stock Exchange (CSE) ecosystem, where high fees averaging 2.27% combined with low participation create a vicious cycle that severely impedes market development. The core issues are both systemic and strategic.
The Marketing Failure: A Stock Exchange That Doesn’t Want Customers
Unlike its counterparts globally, the CSE remains more akin to an exclusive club rather than an accessible retail investment platform.
Where India’s National Stock Exchange (NSE) partnered with fintech innovators to create user-friendly investment apps while the CSE’s outreach is limited to sporadic seminars mostly attended by brokers and affluent investors. The CSE doesn’t want millions of small investors; it wants thousands of large ones who won’t complain about the fees.
There are no robust nationwide campaigns demystifying investing, no telecom partnerships to penetrate rural markets, and the mobile apps are not intuitive and fail to simplify account opening processes as expected. The CSE’s web and social media presence remain outdated, and when India onboarded over 40 million retail investors in three years via aggressive digital marketing, Sri Lanka struggled to add even 40,000 investors. This is not accidental, but symptomatic of an institution that profits more from high fees on lower volumes than from a broad base of smaller investors. The system favors wealth extraction from a few large players while discouraging retail participation.
Bureaucratic Ossification: When Vision Dies in Committee Rooms
The CSE suffers from a stifling bureaucratic culture, trapped in colonial-era mindsets with fragmented decision-making authority dispersed over multiple regulatory bodies like the SEC, Central Bank, and ministries. Sri Lanka’s capital market leadership remains focused on maintaining the status quo, prioritizing regulatory compliance over innovation. Without a strategic vision to increase retail participation, possibly aiming for even a modest 10% target, the exchange risks remain a peripheral entity rather than a genuine engine of national wealth.
The disconnect between high market returns (close to 50% in 2024) and low investor participation underscores the urgent need for the CSE to radically change course from a fee-heavy, opaque, bureaucratic institution to a transparent, technology-enabled, investor-friendly market. Unless Sri Lanka’s capital market astrology embraces inclusive, technology-driven, and simplified structures combined with aggressive marketing and retail investor protection, it will continue to underperform relative to regional peers, hampering broader economic growth and wealth creation.
Marketing Malaise: How the CSE Misses the Retail Wave
There are no nationwide campaigns to demystify investing. No partnerships with firms like financial institutions and tertiary education establishments, such as universities, where eligible customers are abundant and to reach rural areas. When India added over 40 million new retail investors in just three years through aggressive digital outreach, Sri Lanka couldn’t add 40,000. This isn’t accidental – it’s the natural result of an institution that makes more money from high fees on low volumes than it would from low fees on high volumes.
Bureaucratic Ossification: When Vision Dies in Committee Rooms
The CSE’s administration suffers from a fatal combination: colonial-era bureaucratic mentality married to a complete absence of strategic vision. While global exchanges have transformed into technology-driven, investor-first platforms, the CSE remains trapped in a time warp protecting its turf and revenue streams. Decision-making moves at the speed of a government file, while markets move at the speed of light.
The result is an exchange governed by administrators rather than visionaries. When Singapore launched a comprehensive digital trading ecosystem, when India implemented T+1 settlement cycles, when New Zealand simplified its entire fee structure to one transparent charge, Sri Lanka’s was busy protecting the status quo. There’s no long-term strategic plan to achieve even 10% retail participation. No vision for how Sri Lanka’s capital market fits into the economy of 2030. The CSE operates like a government department completing its KPIs rather than a dynamic institution building national wealth. The entire ecosystem – from the SEC to CDS to brokers – protects a broken system because they all profit from it.
Whenever the question of low retail participation comes up, officials trot out the same tired excuses: lack of investor awareness,’ ‘risk appetite,’ budgetary constraints for promotions.’ What they never admit is the elephant in the room, Sri Lanka’s fee structure. Charging 2.27% in a fragmented, opaque system while allowing negotiated rates for the wealthy isn’t market design, it’s a wealth extraction scheme dressed in regulatory language (Figure 3).

Add to that a lethargic marketing approach for attracting a wider population. Instead of proactive campaigns, digital engagement, and investor education, the system relies on outdated methods that fail to inspire confidence. The result? A market that moves backward while global peers surge ahead.
Our regulatory authorities have created a system that achieves the exact opposite of what a stock market should do. Instead of encouraging saving and investment, we punish it. Instead of attracting retail participation, we drive small investors away. Instead of ensuring fairness, we let the rich negotiate better terms.
The Bottom Line
The Colombo Stock Exchange and its regulatory framework aren’t just failing small investors – they’re actively working against them. No stock market can flourish when fees punish participation and policy rewards big players while suffocating small ones.
If Sri Lanka wants a real capital market – not just a slogan – it must not only stop taxing retail investors to fund inefficiencies and start building a market that ordinary citizens can finally trust, but also, they should actively promote the retail participation with more promotional activities to reach them by making collaborations with relevant firms such as financial institutions and tertiary educational establishments, especially universities.
Until someone in authority has the courage to blow up this exploitative system and start fresh, ordinary Sri Lankans will continue to be better off keeping their money under the mattress.
(The writer, a senior Chartered Accountant and professional banker, is Professor at SLIIT, Malabe. The views and opinions expressed in this article are personal.)
Features
Constitutional inconsistencies relating to franchise
The Preamble to Sri Lanka’s Constitution states: “The PEOPLE of SRI LANKA having by their Mandate … entrusted and empowered their Representatives … to draft, adopt and operate a new Republican Constitution in order to achieve the goals of a DEMOCRATIC SOCIALIST REPUBLIC, whilst ratifying the immutable republican principles of REPRESENTATIVE DEMOCRATIC”.
The intent of this exercise is to ascertain whether the practices as adopted by successive Governments to elect the People’s representatives are in keeping with the “immutable principles of Representative Democracy”.
According to Article 3 of the Constitution: “Sovereignty includes the powers of government, fundamental rights and the franchisee”. Furthermore, Article 3 is an entrenched article – Article 83. According to Chapter XIV, titled “The Franchise And Elections”, Article 88 states: “Every person shall, unless disqualified….be qualified to be an elector at the election of the President and of the Members of Parliament or to vote at a Referendum”. Therefore, it is the electors in the Electoral Districts, as determined by the Delimitation Commission (DC), that elect the President and Members of Parliament.
EXISTING INCONSISTENCIIES
= The first relates to Article 96 (1). This states: “The (DC) shall divide into not less than twenty and not more than twenty-four electoral districts…”. The reason for the upper limit for Electoral Districts is perhaps because Sri Lanka was originally divided into twenty-for Administrative Districts (now 25), and 96 (3) establishes a relationship between Electoral Districts and Administrative Districts when it states: “Where a Province is divided into a number of electoral districts the Delimitation Commission shall have regard to the existing administrative districts so as to ensure as far as practicable that each electoral district shall be an administrative district or a combination of two or more administrative districts or more electoral districts together constitute an administrative district”
Despite the fact that the Constitutional direction to the DC was that the Electoral District was to “have regard to the existing Administrative District”, the number of Electoral Districts established by the DC is twenty-two (22) while the number of Administrative Districts are now twenty-five (25). Although the provision to combine Administrative Districts into one Electoral District exists, the reason for the difference is reportedly because the DC decided to factor in issues, such as land which is extraneous to franchise thus compromising the sanctity of franchise and the sovereignty of the electors. On the other hand, if the Electoral District is coterminous with the Administrative District, not only would it protect the elector’s Franchise but also enable the elected members to address the administrative interests of the electors. Would such an opportunity not give substance to the “immutable republican principle of Representative Democracy”?
= The second inconsistency relates to Article 96 (4). This states: “The electoral districts of each Province shall together be entitled to return four members, (independently of the numbers which they are entitled to return by reference to the number of electors whose names appear in the registers of electors of such electoral districts), and the Delimitation Commission shall apportion such entitlement equitably among such electoral districts”.
Consequently, the four members to be returned from each of the nine Provinces amounts to thirty-six additional members, shall be apportioned equitably by the DC among the twenty-two (22) Electoral Districts together with the one hundred and sixty members from the electoral registers, thus making a total of one hundred and ninety-six members being elected through the franchise of the electors. The balance twenty-nine through the National List nominated by Political Parties is also elected by the electors, thus making a total of two hundred and twenty-five (225) Members of Parliament elected through Electoral Districts.
The irony however, is that although Members of Parliament are elected through Electoral Districts, all Executive Powers of the Line Ministries of the Central Government are implemented by the District Secretaries in the twenty-five Administrative Districts. The present convoluted process of appointing a Parliament through Electoral Districts and administering its functions through Administrative Districts cannot be justified. What would be more meaningful is to make Administrative Districts also perform Electoral functions such as appointing the Members of Parliament.
= The third inconsistency relates to the election of Members for Provincial Councils. According to the Provincials Councils Act: “Every administrative district in a Province shall for the purposes of elections to the Provincial Council established for that province, constitute an electoral area”
This is a departure from the practice adopted to elect Members to Parliament since they are based on outcomes from twenty-two (22) Electoral Districts. Therefore, it is worth exploring why Members to Parliament and Provincial Councils cannot be elected using the existing 25 Administrative Districts.
RECOMMENDATIONS
The intention is for an arrangement where Administrative Districts are also assigned electoral functions, so that both Members to Parliament and Provincial Councils could be elected by a single unit. The advantage would be that Administrative Districts could carry out Central Government functions under a District Secretary as at present, a parallel unit within the Administrative District could be set up to implement devolved powers in each of the Administrative Districts, while retaining the existing structural arrangements of Provincial Councils. This would facilitate the coordination of devolved powers with Central Government activities, thus improving productivity of each.
CONCLUSION
The current practice is that while representative of the Government of Sri Lanka is elected by Electoral Districts as stated above, Provincial Councils in the periphery with less powers than the Government are elected by electors in Administrative Districts of each Province. If elections to Parliament and to Provincial Councils are elected by electors in each of the twenty-five Administrative Districts, perhaps one election could elect Members to both bodies.
In view of the significant cost savings involved, it is imperative that serious consideration is given to equip Administrative Districts to serve as Electoral Districts for Parliamentary Elections as well as for Provincial Council Elections, since such an arrangement would further fortify the “immutable republican principle of Representative Democracy”. Furthermore, since such an arrangement would be closer to the People, services to them would be better served.
By Neville Ladduwahetty
Features
Power cuts are here! But we have a way out!
The much-dreaded power cuts are already here though not declared as such. The tragedy is that the power cuts are not due to inadequate electricity supply, but the inability of the power and energy authorities to use the abundant solar and wind power installed without any financial or economic burden on the state. They ought to admit their lack of wisdom to be mindful of the rapid changes in the sector and the need to be equipped.
Fuel Prices have been increased again up to the 2022 levels. Therefore another Electricity tariff hike is inevitable. Perhaps, the government may hold it back until September, when the next tariff revision is due. An appeal has been made to “prosumers” to switch off their solar PV system in the fear of grid stability being affected. While there is excess solar power, which they are unable to manage, even when the demand is below the installed capacity and high contribution of hydro, solar and wind. May 31 (Sunday) energy mix indicated substantial use of oil in CEB-owned power plants and those belonging to the Independent Power Producers (IPPs) . What is the rationale? One would believe that even the hydro reservoir water can be saved for use during the night, without curtailing solar and wind power. It will be said that the system is very complex and beyond the understanding of mere mortals like ordinary “prosumers”, who have added over 2300 MW to the grid, entirely at their expense and at rates well below the average cost of generation. (See Image 1)
Storage Batteries and Renewable Transition
The fact that the growing need for storage batteries to optimise the utilisation of variable renewable energy (VRE) has been felt for the last decade or more, and nothing was done about it, is never mentioned in their laments.
However, there is a glimmer of hope due to the initiatives taken by the Public Utilities Commission of Sri Lanka (PUCSL). An increase in the demand due to a general GDP growth will have to be met using renewable resources. It has been clearly noted that such alternatives must be developed while curtailing the use of oil and ensuring the uninterrupted power to the consumers.
Recognising this need and the fact that fastest intervention is possible by promoting BESS (Battery Energy Storage Systems) to be added to all existing renewable energy sources, the PUCSL has initiated stakeholder consultation to determine the feed-in tariff payable for each type of BESS. A detailed methodology for determining the FIT has been circulated. The identified types of BESS discussed were as follows”
1. Power Plants
a. Mini -Hydro
b. Mini – Hydro-Local: mini hydro plants that at least use locally manufactured turbines
c. Wind
d. Wind – Local: Wind plants that at least use locally manufactured turbine blades
e. Biomass – Dendro – Biomass plants that use sustainably grown fuel wood
f. Biomass – Agricultural/Industrial Waste; Biomass fired plants use byproducts, like paddy husk, sawdust, sugar cane bagasse, etc.
g. Municipal Solid Waste
h. Waste Heat Recovery
i. Ground Mounted Solar PV
j. Floating Solar PV
2. Prosumers
a. Roof Top Solar PV
b. Rooftop Solar PV with Battery Energy Storage System (BESS)
c. Prosumers with behind the meter Battery Energy Storage System (BESS)
3. Power Plants with BESS
We mentioned in an earlier article that the PUCSL proposed a scheme whereby we can get rid of use of oil for power generation in stages, commencing with elimination of the diesel use by 2027 and all imported oils by 2030.
Stakeholder Meeting & Feed In Tariff( FIT)
The PUCSL has been empowered by the new Electricity Act No 36 (as amended), which came into full force on 09 March, 2026, with responsibility for calculating and announcing all FIT schemes, both for purchase and sale of electricity to consumers.
A well-represented stakeholder meeting was held recently, when the proposed methodology for determining the FIT of each type of BESS was given to them to provide further specific inputs. It is, therefore, realistic to expect such a FIT to be declared by the end of June, 2026.
While this is a welcome and progressive step unlike the ad hoc process adopted hitherto. But the fact remains that the responsibility for the effective use of FIT to attract investors to add the BESS at different scales, lies with the one or more of the newly appointed companies to take over the functions of the former Ceylon Electricity Board (CEB).
Government Recognition of Fossil Fuel Risks
The current government has reportedly recognised the danger of overdependence on imported fossil fuels, which we have absolutely no control over. This is something we have been stressing for a long time. However, better late than never. As a matter of interest, we show the degree of fossil fuel dependence and its adverse impact on the economy. (See Graph 1)
It is to be noted that earnings from our traditional exports of tea, rubber and coconuts fail to meet the ever-increasing cost of importing fossil fuels. Time was when earnings from these exports barely helped meet the cost of import of fuels which was back in 2010. The rupee cost of imports is shown in Billions to keep the data columns within the bounds of the chart. This is the factor which affects you and me directly.
However, we earnestly urge the government to direct the electricity companies to take immediate action to prepare the grid which costs only a fraction of the values predicted by the CEB to institute their schemes which are not in line with the ground reality to accept the BESS system once the FIT is announced. Reasonable BESS and FIT will help attract investors with the assurance of short-term and long-term improvement, at no cost to the state.
Solar PV & BESS Proposal
We proposed some time back of the opportunity for those “prosumers” using 300 units per month, for installing solar PV with adequately sized batteries, which is more economical than drawing power from the grid, and to gain the happy situation, to be insulated from the danger of power cuts and further increases in consumer tariff.
The PUCSL intervention to declare a BESS tariff will add a great impetus to those who are willing to adopt the above proposal. They will be encouraged to increase the capacity of their installations as well as the battery capacity so that the excess can be exported to the grid during peak hours, when firm economic power is most needed. Such additional features would enhance their financial returns and would enable rapid elimination of the use of diesel during peak hours. In recent months with the depreciation of the rupee, coupled with the increase of costs of solar panels, inverters and batteries, our original analysis of financial viability of this interevention was facing some uncertainties. As such, we welcome this move by the PUCSL, whereby the consumers would have a steady revenue in addition to the savings on their monthly electricity bills. It is likely that the level of FIT and the permitted number of exports will be adequate to work with the increased costs, as shown. (See Table 1)
It must be noted that the cost values are highly volatile ,and some variations are to be expected. FIT for export on energy is stated as 60% of the current peak time energy charge of Rs 106/kWh.
This revolution is well within the means of the over 200,000 potential “Prosumers” who consume over 250 units per month. While they would fulfil their own goal of being immune to any power cuts as well as being insulated from future tariff increases, they would be serving the country by progressively eliminating the need for any fossil fuels for power generation. For example, if 50,000 of them add 10 kWh of battery capacity, the peak power demand can be reduced by 500 MW, thereby obviating the need for using the most expensive diesel during the peak period. Very special advantages can be derived by those also purchasing EVs instead of petrol and diesel vehicles. It will be possible to save on LPG, which costs Rs 4,700.00 per cylinder at present. Thus, the excuse for demanding ever increasing consumer tariff in the future will not be available. As such this move would help all consumers down to the lowest level of consumers.
It is hoped that the energy authorities recognise this reality and support the PUCSL proposals by approving the BESS FIT system and directing all Utility companies to adopt the same and urgently initiate action to install the simple infrastructure additions to accept the BESS energy, as proposed. If they care to review this proposal having discarded biases and any other agendas, they, too, will benefit.
Conclusion
The inescapable conclusion one can derive from the above is that the solution to the crisis is available from the consumers themselves in a manner that is attractive and profitabe to them. It would also be of major assistance for the Utility to manage the sector effectively and efficiently. In addition, all consumers will benefit by gradually weaning themselves away from the grid an use of oil for power generation. This would obviate any more demands for consumer tariff increases by the National System Operator. The PUCSL has taken an essential first step with its intention to declare a BESS FIT. It is up to the government to ensure that the Ministry and the Utility companies adopt the correct stance and make a commitment to ensure the success of this scheme as soon as possible.
by Eng Parakrama Jayasinghe
Past President and Council Member
Bio Energy Association of Sri Lanka
Features
Is power devolution under JVP-NPP a political daydream?
The JVP General Secretary Tilvin Silva’s recent remarks at a news conference in Jaffna where he ruled out the possibility of holding provincial council elections this year has been widely reported and widely criticized. About the same time there was another media event in Jaffna that went largely unnoticed and unreported outside Jaffna. What was said at the second media event may carry far more political implications than Tilvin Silva’s election timing talk. A veteran Tamil political participant made the startling yet not implausible statement that the prospect of having political devolution under the JVP-NPP government is becoming “a daydream”. The statement was made by Dr. K. Vigneswaran, who served as Provincial Secretary to the only North-East Provincial Council Government that was elected under the auspices of the Thirteenth Amendment.
Dr. Vigneswaran is a Professional Civil Engineer who studied at Royal College, graduated with First Class Honours in Engineering in 1964, and went on to complete a pioneering PhD at the university of Waterloo, Canada, applying the finite element method (FEM) in the field of Geotechnical Engineering. His engineering career has always been at the Irrigation Department where he rose to a Deputy Director. That was when the department was in its golden years, and Vigneswaran was known for his technical mentorship, meticulous administrative skills, and for knowing the fine print of everything. While at the Irrigation Department, Vigneswaran married Ramya de Silva, a fellow irrigation Engineer. After 1983, Vigneswaran became a fulltime political activist and a powerful resource in Tamil politics, but with unwavering commitment to nonviolence, democracy and federalism. The family moved first to India and then Canada, and Vigneswaran has been shuttling between Canada and Sri Lanka.
Devolution: Tortuous Trajectory
Since 1987, the Indo-Sri Lanka Agreement, and the 13th Amendment, Vigneswaran has been a permanent fixture in all the politics and institutional dynamic of implementing 13A and establishing provincial councils. He served as Secretary to the only elected Provincial Government for the Northern and Eastern Provinces. After 1994 and the election of Chandrika Kumaratunga as President, Vigneswaran became a key participant in all the civil society efforts and government initiatives to restore the PCs and implement 13A, both during the Kumaratunga presidency and the succeeding administrations of Mahinda Rajapaksa and the Sirisena-Wickremesinghe duo.
Devolution efforts stalled after the election of Gotabaya Rajapaksa, who in so many words declared that he had no time for 13A or PCs in his presidential agenda, whatever it was. Only that his whole agenda turned out to be a wholesale disaster for the country. Already by then, all the nine Provincial Councils had fallen into abeyance with the cancellation of the 1988 PC elections by the Sirisena-Wickremesinghe duo, with the TNA standing by. The abeyance continues under the JVP-NPP government with no apparent end in sight after Tilvin de Silva’s statement in Jaffna.
I say all this to provide the proper context for Vigneswaran’s statement in Jaffna that the prospects for power devolution under the JVP-NPP government are becoming a political daydream. He said something else as well: that of all the government leaders he has encountered over the years, the only leader who has been genuinely sincere about power devolution is former President Chandrika Kumaratunga, and no one else. I am constrained to add that the insincere category would include Ranil Wickremesinghe, who for all his handsome promises, never matched any of them with experiential sincerity. The present JVP-NPP government still has time to show that they are not an insincere lot.
It is not my purpose to agree with or question Dr. Vigneswaran’s assertions, but to use them as cue and context to comment on the widening mismatch between the JVP-NPP government’s promises and its practices on the matter of power devolution and the restoration of the PC system. With a stalling economy, rising prices and external shocks, it is obvious that the government has all the economic matters to worry about, but that does not mean that it can ignore all the other government responsibilities. No government is put in power to solve a single problem or address a single issue. It is in the nature of governments to deal with multiple problems with varying priorities. Otherwise you could have a single cabinet minister to deal with one problem at a time. That is never going to be the case.
The economy is of course the top of mind priority for the government even as it is a top of mind concern for the people. Even on the economic front, the government is holding steady but is showing little progress. And there are other government initiatives where political accountability will call for answers: to wit, the catchall Clean Sri Lanka programme, ambitious educational reforms, contentious energy sector reforms and, yes, power devolution as well as the overpromised constitutional reforms. Not to mention the sprawling unforced errors over substandard coal imports, foreign exchange fraud, and the chronic neglect of developing the renewable energy sector. Correcting these fields of errors may require a separate ministry for each.
Devolution: Daydream or Deliverable
On the PC system and constitutional reform, there has been scant progress in spite of handsome promises. On both, the government is inadvertently deepening the holes that it had dug itself into through indifference, inaction or procrastination, or all of them and more. In the matter of devolution and provincial councils, the government can simply defuse the situation by directing the Election Commission to conduct elections at the earliest opportunity that is logistically possible. Making his statement in Jaffna, Mr. Tilvin Silva alluded to funding shortfall and legal complications as reasons for the necessity to postpone PC elections until next year. Neither reason holds water.
The funding question would seem to have been put to rest by the statement of Health Minister and Cabinet Spokesman Nalinda Jayatissa, presumably reflecting cabinet consensus, that there are no funding issues and if needed additional funds could be arranged through supplementary allocations. It is also disingenuous to cite legal complications as a reason. The so called legal complications arose because of the collective stupidity of the Sirisena-Wickremesinghe parliament that included the then miniscule NPP and the politically-lost TNA. The JVP-NPP has now ballooned from a handful MPs to a two-thirds majority and it can expedite any legislation that it wants to enable the PC elections to be held without delays.
Alternatively, the elections can be held under the old arrangement of proportional representation with assurance by political parties to honour their commitment to fielding more female candidates. Already at a gathering of all political parties, including the NPP (but not the JVP), and civil society groups, convened by People’s Action For Free & Fair Elections (PAFFREL), the political parties jointly committed to a 25% quota for women and youth under the old electoral system. The ongoing parliamentary committee exercise studying the legal matter, headed by the overstretched Foreign Minister Vijitha Herath, is also an unnecessary red herring. The Election Commission is ready to go under whatever law or electoral system that is before it. So, there is no reason to hide behind legal complications to further delay the PC elections.
Somewhat amusingly, Public and Parliamentary Affairs Minister Ananda Wijepala has trotted out the argument that the NPP government has already conducted two nationwide elections during the one and a half years it has been in office, and that unlike the Ranil Wickremesinghe government the JVP-NPP is not in the business “to delay elections for our personal benefit” – whatever that means. Unfortunately, the good minister is missing the point. The question is not how many elections can the JVP-NPP hold in how many years, but how many years do people in the provinces have to wait before they vote in another provincial election? How many more years? That really is the question.
We know the current situation in the provinces. There are provincial governments but no elected provincial councils. The government administration in every province is being run by the President of the Republic through his handpicked governors and unelected government officials. This is a travesty of democracy and the euthanizing of the PC system. Already under 13A, the office of the provincial governors has been constitutionally and legally compared to the office of the Governors of old Ceylon who represented the monarch in what was then a crown colony. The irony is that a JVP-NPP President may have inadvertently positioned himself as the monarch of all he provincially surveys, courtesy of the Thirteenth Amendment!
The JVP was in the forefront of the litigation that caused the demerger of the Northern and Eastern Provinces. If Dr. Vigneswaran’s assertion were to prove correct, a potential dissolution of the provincial system under the JVP-NPP government would be the consummation of the JVP’s original opposition to the introduction of the provincial council system itself. The whole system may not be eradicated, but it could be devoured of its democratic essence while preserving the administrative shell as the medium for the country’s president to overreach into the provinces. That would be worse than a daydream, a real nightmare.
by Rajan Philips ✍️
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