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Midweek Review

How political instability undermined national security

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Frequent ‘confrontations’ between the police and anti-government activists cause turmoil. Nishan S. Priyantha captured this scene outside Police Headquarters June 09.

By Shamindra Ferdinando

The Institute of National Security Studies (INSS) recently dealt with the relevance of political stability for national security. Dr. Prathibha Mahanamahewa, and Director/CEO Hector Kobbekaduwa Agrarian Training Institute Malinda Seneviratne, a former colleague of ours at The Island editorial, addressed the issues at hand. Acting Director General of the INSS Rear Admiral Dimuthu Gunawardene, who is also the Director of Communications and Publications of the outfit, moderated the event.

Defence Ministry Media spokesperson Colonel Nalin Herath, in a statement issued on June 09, quoted Dr. Mahanamahewa as having told the gathering that the mismanagement of resources, absence of timely decisions, and corruption, caused political instability. The academic was further quoted as having stressed that political stability would automatically ensure national security. A former Commissioner of the Human Rights Commission asserted that a new Constitution would help maintain political stability.

Political commentator Seneviratne had focused on external threats, primarily the LTTE rump/Tamil Diaspora. Seneviratne had been quite convincing in his arguments. The brief Defence Ministry statement on the event held via zoom on June 07 obviously covered just a fraction of what Dr. Mahanamahewa and Seneviratne had said.

The INSS probably wouldn’t have taken up this particular subject if not for the current economic-political and social crisis that has totally eroded public confidence in the incumbent dispensation. In fact, the public has lost faith in the utterly corrupt entire political party setup with a large segment of the population loudly questioning the dependability of the parliamentary system. The INSS aptly titled the event ‘importance of political stability for national security.’

The INSS can inquire into how the recent Aeroflot drama, at the Bandaranaike International Airport (BIA), undermined Sri Lanka’s relations with Russia, thereby impacting the overall stability. Can Sri Lanka afford to antagonize a friendly UN Security Council member, one of the two who have always stood by us, the other being China, always supportive of Colombo, regardless of the party in power here. If not for their veto power, the West would have bulldozed us into accepting their terms through resolutions at the powerful UN Security Council, especially on so-called war crimes where they have been out to nail our victorious security forces on, for unbelievably defeating LTTE terrorists, in the battlefield, against their wishes.

It would be pertinent to ask whether INSS in any way had inquired into the political, economic and social developments in the run-up to the massive explosion of public anger in late March this year. The intelligence services, too, seemed to have completely ignored the swelling up of public anger over shortage of essential items, including food, and the skyrocketing cost of living, until it was too late.

The INSS should have factored in Speaker Mahinda Yapa Abeywardena’s declaration that the country is fast heading towards an unprecedented famine. PM Wickremesinghe and many others say the same though they do not provide solutions.

Can the current crisis be simply addressed by restoring political stability? What really caused the current and still worsening crisis that has bankrupted the country? The political as well as the military leadership should realize political stability achieved by a near 2/3 majority in Parliament in the wake of an overwhelming triumph for the same party at the presidential election contributed to the catastrophe. That is the undeniable truth.

Having secured the Nov 2019 presidential election with an overpowering majority, the SLPP won a commanding 145 seats in the 220-member Parliament at the Aug 2020 parliamentary election. The Colombo Port City Economic Commission Bill received 149 votes in May 2021. Seven months before, the 20th Amendment to the Constitution received a staggering 156 votes. The SLPP acted as it didn’t expect any trouble. The electorate was repeatedly told the 20th Amendment would ensure political stability while the passage of the Colombo Port City Commission Bill would attract the required foreign direct investments.

The arrogant and over confident SLPP leadership ignored warning signals. Perhaps the government could have managed to sustain the national economy if the Covid-19 pandemic didn’t almost totally disrupt the tourism sector, with the crippling of international travel, and also caused a sharp drop in foreign remittances, with a large number Sri Lankan migrant workers having to return home. Even those who retained their jobs in West Asia often got their wages reduced or got them after delays. Things were further compounded by the government having to repatriate workers and having to spend valuable foreign exchange to procure vaccines and other related pharmaceuticals.

Now, adding to the country’s woes, is the fallout from Russia’s incursion into Ukraine and the US rather foolishly using that to blead Kremlin to death. That is already endangering world food security and disrupting the supply of other essentials, like oil, coal etc., while also causing record inflation worldwide.

Still, the government could have successfully addressed the growing threat if it responded positively to a warning issued by the International Monetary Fund (IMF) in early 2020. But, the Cabinet of Ministers, chaired by President Gotabaya Rajapaksa, turned a blind eye to the IMF call for an immediate debt restructuring programme. The IMF response was to Sri Lanka’s request for a Rapid Financing Instrument (RFI) made in early 2020. The outspoken Governor of the Central Bank Dr. Nandalal Weerasinghe is now on record as having told the Committee on Public Enterprises (COPE) that Dr. P.B. Jayasundera, the then Secretary to the President, finally decided against the IMF’s intervention.

Who should accept the blame for the current crisis? Would it be fair to hold Dr. PBJ accountable for an utterly irresponsible course of action that has caused immense political instability?

Basil on IMF

Having given up the SLPP National List slot and the finance portfolio, SLPP founder Basil Rajapaksa addressed the media at the Nelum Mawatha party office. The revelation made by Basil Rajapaksa, perhaps unwittingly, showed the SLPP had addressed the economic crisis. At the time, the IMF advised Sri Lanka to undertake a debt restructuring programme and drop plans to grant massive tax cuts, while Premier Mahinda Rajapaksa held the finance portfolio. Basil Rajapaksa, who took over finance in July 2021, in response to a media query last week explained how the IMF divided the government. According to him, when Indian Finance Minister Nirmala Sitharaman raised the issue, Basil Rajapaksa, turning towards the then Finance Secretary S.R. Attygalle has said that he was among those who opposed seeking IMF intervention. Basil Rajapaksa has pointed out that Sri Lanka’s High Commissioner in New Delhi Milinda Moragoda favoured the move.

The government played in what could aptly be termed in local parlance as pandu with the national economy. By the time Basil Rajapaksa took over the Finance Ministry, in July 2021, irreparable damage had been done and the finalization of the Yugadanavi deal, two months later, divided the SLPP. The SLPP and a minority in the CEB hierarchy wielding power, defended the controversial deal struck at midnight to the hilt. CEB Chairman M.C. Ferdinando, on the invitation of the then presidential spokesman Kingsley Ratnayake, sought to paint a rosy picture at a media briefing arranged at the Presidential Media Division (PMD). Kingsley Ratnayake, formerly of Sirasa, has quietly left the PMD. Ratnayake has left the country at the onset of a public protest campaign and is believed to be in Australia. Sudewa Hettiarachchi, who joined the PMD as its Director General, remains as the government continues to struggle on the media front.

The explosion of public anger whether pre-planned or not, at the approaches to President Gotabaya Rajapaksa’s private residence at Pengiriwatte, Mihihana, on March 31, 2022, should be investigated, taking into consideration the following factors: (1) dismissal of IMF’s advice on the need to go for an immediate debt restructuring programme, the need to drop plans to implement massive tax cuts and fixing the Rupee rate at 203 at the expense of the overall economy (2) ruination of the agriculture sector as a result of unilateral and abrupt decision taken by President Gotabaya Rajapaksa to ban chemical fertiliser and agro chemicals. The unprecedented move resulted in the decimation of the country’s agriculture output (3) Causing irreparable damage to Sri Lanka’s diplomatic ties with Japan by cancelling already agreed projects, including a light trail venture, a strategic foreign policy blunder (4) explosions of domestic gas cylinders caused by change of the formula by foreign suppliers possibly done deliberately to further worsen the situation here (5) disputed Yugadanavi deal. The agreement with the US energy firm divided the SLPP, with three ministers challenging the move in court along with many others (6) turning a blind eye to waste, corruption, irregularities and mismanagement (7) failure on the part of the government to discipline revenue collection setup, comprising the Inland Revenue Department, Customs and Excise Department and turning a blind eye to illegal money transferring methods, such as Hawala and Undiyal.

Then Finance Minister Basil Rajapaksa, in an interview with Shyam Nuwan Ganewatta of Divaina, foolishly declared his faith in illegal methods, little realizing that it was depriving the country of its precious foreign exchange (8) the continuing dispute over the handling of the 2019 Easter Sunday massacre by Muslim extremists (9) pathetic response to accountability accusations pertaining to Sri Lanka’s triumph over Tamil terrorism.

Can Basil Rajapaksa’s departure from Parliament or business tycoon Dhammika Perera’s entry in his place give overnight boost to a failed economy? Having promised a system change, the SLPP has lost its way and brought in Ranil Wickremesinghe, accused of being the alleged mastermind of the Treasury bond scams by the then Joint Opposition, and Perera, embroiled in tax issues, to manage the political and economic fronts.

Perhaps, INSS should seriously consider receiving a briefing from heads of parliamentary watchdogs, the Committee on Public Enterprises (chaired by Prof. Charitha Herath, MP), Committee on Public Finance (Anura Priyadarshana Yapa, MP) and Committee on Public Accounts (Prof. Tissa Vitharana) regarding the threat posed to political stability and national security by unbridled public and private sector corruption.

The COPE probing into the CBSL and the Finance Ministry appearance before the watchdog by its former members of the Monetary Board comprising Prof. W.D. Lakshman (Dec 2019-Sept 2021/Ajith Nivard Cabraal (Sept 2021-March 2022), Treasury Secretary S.R. Attygalle and nominated members Sanjeeva Jayawardena, PC, Dr. Ranee Jayamaha and Samantha Kumarasinghe caused the current crisis. In addition to the Monetary Board, the then Premier Mahinda Rajapaksa, who served as the Finance Minister (Dec 2019-July 2021) and Dr. P.B. Jayasundera, too, are accountable, with the latter being blamed for blocking the government securing IMF intervention.

Probe on security flop

Sri Lanka witnessed what can be described as a countrywide breakdown of law and order on May 09, following the SLPP goon attack on the Galle Face public protest, demanding the resignation of President Gotabaya Rajapaksa and the entire Cabinet of Ministers, including Premier Mahinda Rajapaksa.

The month-long campaign had the backing of both external and internal forces hell-bent on a system change. The security forces, as well as the police, failure to prevent it as well as the meticulously organized military type retaliation, should be discussed against the backdrop of the Rambukkana shooting where a person died and two dozen others were wounded.

No one bothered to point out that the police opened fire nearly 15 hours after those protesting against fuel price hike blocked main roads as well as the Rambukkana railway line for 15 hours. Can protesting public block roads thereby inconvenience other ordinary people? And police resorted to use lethal force only after protesters turned violent and nearly blew up a petrol bowser by setting fire to it.

Unfortunately, the rapid deterioration of the economy against the backdrop of the government acknowledging insolvency has given an opportunity to various interested parties to undermine the rule of law. The continuing blockade on the Presidential Secretariat situated at Galle Face signifies a pathetic state of affairs. Dr. Nalaka Godahewa, who held the media portfolio at the time of the May 09 violence, raised the disgraceful failure on the part of the government to thwart organized attacks on a selected group of ruling party lawmakers, numbering over 70. The Gampaha District MP, whose Gampaha home suffered heavy damage, drew the attention of both President Gotabaya Rajapaksa and Premier Ranil Wickremesinghe to the crisis, while warning of a 1987-1990 type insurgent campaign.

Obviously, the incumbent political leadership is furious with the military for not stepping in immediately. They are of the view that retaliatory attacks could have been thwarted if the military acted swiftly and decisively. Naturally, some have found fault with the then Commander of the Army General Shavendra Silva, who also functioned as the Chief of Defence Staff (CDS). The appointment of a three-member committee headed by Admiral of the Fleet (retd.) Wasantha Karannagoda to inquire into the lapses on the part of the military should be viewed in the context of a volatile political-economic-social environment.

Could military intervention have saved Mahinda Rajapaksa’s premiership even at the expense of bloodshed? Had there been a large-scale military response to countrywide retaliatory attacks, the country would have been in a much bigger crisis today. There cannot be any dispute over that. No one would have desired Rathupaswela type incident at a time the government was pleading before the international community for food assistance. The incident in the first week of August 2013 shocked the country. It brought shame on the war-winning Army, though it too was instigated by mysterious forces.

In fact at the onset of the trouble, Gen. Silva, the celebrated GoC of the 58 Division, assured Colombo-based defence attaches that the military wouldn’t intervene. Had that happened, it would have definitely helped those who had been campaigning for the ouster of the Rajapaksas.

The Army earned the wrath of the public for opening fire on people demanding clean water at Rathupaswela. Three died in indiscriminate shooting. It would be pertinent to mention that the public had been protesting against the Dipped Products factory over the alleged releasing of chemicals into the environment. The villagers had been seriously concerned about their water supply for some time as they were dependent on groundwater. Their complaints had fallen on deaf ears. Obviously, those in authority hadn’t been interested at all in inquiring into the issue at hand.

Had they bothered to conduct an investigation in a timely and transparent manner, the accusations could have been ascertained and remedial measures taken. Then, why was it not done? Well, one cannot help but think that it is because the factory is owned by Hayleys controlled by Dhammika Perera, the latest entrant into parliamentary politics. In a way, Perera’s entry into active politics can be compared with Gotabaya Rajapaksa entering national politics at the highest level against the backdrop of widespread criticism of all members of Parliament.

Secretary to the Public Administration Ministry Attorney-at-Law Priyantha Mayadunne recently explained how the political party system ruined the country. Mayadunne didn’t hesitate to declare that the mother of all problems is the oversized public service that has been an unbearable burden on the national economy for a long time. One-time Justice Ministry Secretary Mayadunne asserted that Sri Lanka can manage with half a million strong public service though the actual figure is 1.5 mn. Isn’t it a destabilizing factor? If the INSS is really keen to ascertain the truth, it may undertake a thorough examination of destabilizing factors as the country slips further into foreign debt.

The economic crisis, as explained by Governor of the CBSL Dr. Nandalal Weerasinghe, is so acute today, Sri Lanka is vulnerable to external machinations. The external threats can be quite deadly as those directly involved in the decision, making process here, too, have been part of various such anti-national projects. Yugadanavi deal can be cited as just one such example.



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Midweek Review

NPP drowning in sea of scams

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Outgoing Treasury Chief Mahinda Siriwardena congratulates his successor Harshana Suriyapperuma in late June 2025 at the Finance Ministry

The Opposition is pressing for a one-day debate on USD 2.5 mn Treasury theft, which is more like a daylight robbery that had been kept under wraps by Treasury mandarins till ‘Free Lawyers’ made it public. However, the government is strongly opposed to the Opposition proposal. The Opposition is seeking consensus among

different parties to intensify the campaign against the government, struggling to cope up with a spate of controversies. Against the backdrop of the devastating debate on the coal scam, the NPP seems reluctant to face another over the theft of Treasury funds.

By Shamindra Ferdinando

USD 2.5 mn brazen heist at the Treasury several months ago and the bigwigs there obviously dragging their feet over the matter till it was brought to light recently, thanks to the Free Lawyers movement, which has dampened the NPP’s enthusiasm for May Day. The Treasury fiasco humiliated the cocky NPP leadership against the backdrop of damning report issued by the National Audit Office (NAO) that found fault with the government for awarding the coal tender for 2025/2026 period to Trident Champhar Limited of India in violation of tender procedures. The NAO emphasised that the Indian company shouldn’t have even been considered for the tender.

Even after the exposure of the scandalous handling of the coal tender, the NPP, in spite of some rumblings within the party, remained confident of overcoming the growing accusations regarding governance issues. But, the sudden revelation of the loss suffered by the Treasury, and pathetic efforts made by the NPP to suppress the truth, has caused irreparable harm to the ruling party. The arrogant NPP will have to use May Day to defend the government. Instead of preaching to the masses ad nauseum the corruption allegations against previous administrations, the NPP would have to explain such massive failures/corruption, particularly the loss of USD 2.5 mn.

There hadn’t been a previous instance of such an incident at the Treasury. The NPP will have to answer questions posed by ‘Free Lawyers,’ a civil society group that first raised the Treasury issue. On behalf of ‘Free Lawyers,’ its President Maithri Gunaratne, PC, former Governor of several provinces Rajith Keerthi Tennakoon, and Attorney-at-Law Shiral Lakthikala, targeted the government over the unprecedented Treasury heist. The Opposition, too, censured the NPP, with SJB leader Sajith Premadasa, MP, Chairman of Public Finance Committee (CoPF) Dr. Harsha de Silva, MP, and United Republican Front (URF) taking the lead.

The NPP’s excuses, based on claimed raids carried out by hacker/hackers targeting the Treasury, are untenable. The NPP’s position cannot be defended or supported against growing criticism. The coal scam and Treasury fiasco dominated social media, with the Opposition, as well as ordinary citizens, having a field day at the expense of the NPP, a political party that accused its opponents of waste, corruption, irregularities and mismanagement. Its successful propaganda campaigns, at the presidential and parliamentary polls, in September and November, 2024, respectively, were centered on fighting corruption.

Their anti-corruption platform appealed to the people for obvious reasons. Against the backdrop of bankruptcy, declared in May, 2022, after failing to meet debt commitments, the electorate rallied around the NPP that thrived on waste, corruption, irregularities and mismanagement, perpetrated by previous governments. Having bagged the executive presidency in September, 2024, the NPP assured the electorate that the Parliament would be cleansed of evils at the general election. President Anura Kumara Dissanayake declared that the people have been vested with the responsibility of cleansing the Parliament. Dissanayake went a step further when he addressed a public gathering at the 18th mile post on the Negombo-Colombo road. The NPP leader, who also leads the JVP, asserted that there was no need for an Opposition in Parliament and the House should be filled with NPPers.

Dissanayake based his assertion essentially on two failed No-Confidence Motions (NCMs) moved against Ravi Karunanayake and Keheliya Rambukwella in 2016 and 2023, respectively. The NPP/JVP leader found fault with Yahapalanaya and the Wickremesinghe-Rajapaksa government for protecting the two wrongdoers, hence the call to cleanse Parliament.

The results of the parliamentary election proved that the electorate responded very favourably to Dissanayake’s call. Of the 225-seat Parliament, the NPP secured 159 seats, including 18 National List slots. Having accused previous governments of shielding wrongdoers, Dissanayake easily directed the NPP’s steamroller parliamentary group to defeat the NCM moved against Energy Minister Punyakumara Dissanayake (National List) on 10 April, just a few days after the NAO report exposed the coal scam.

First ex-MP as Treasury Secy.

If its own hands are clean, there is no doubt that the NPP now deeply regrets the appointment of ex-NPP National List MP Harshana Suriyapperuma as the Secretary to the Treasury and the Finance Ministry. That appointment was made in June 2025 to fill the vacancy created by the retirement of Mahinda Siriwardana who, along with Governor of the Central Bank Dr. Nandalal Weerasinghe, played a significant role in the country’s post-Aragalaya recovery programme.

Suriyapperuma, who had served as Deputy Minister of Finance and Planning for just seven months, before being appointed the Treasury Secretary/Finance Ministry Secretary, is under heavy fire for suppressing the truth. No less a person than CoPF Chairman Dr. de Silva publicly accused Suriyapperuma of trying to undermine his committee. The SJB has demanded Suriyapperuma’s immediate resignation. Dr. Anil Jayantha succeeded as Deputy Minister of Finance and Planning.

Those who inquired into the crisis-hit Treasury are of the belief that 53-year-old Suriyapperuma lacked the much required experience to fill the shoes of Mahinda Siriwardana. Perhaps, the breach at the Treasury could have been averted if an outsider was not brought in place of Siriwardena. The recent reportage of the incident revealed that Suriyapperuma had been aware of the breach and sought to avoid appearing before the CoPF. The NPP could have responded to the developing situation differently if an ex-MP hadn’t been entrusted with the task of steering the Treasury/Finance Ministry. To make matters worse, President Dissanayake holds the Finance portfolio.

Although the government declared that the theft of USD 2.5 mn had been reported to the Criminal Investigation Department (CID) after initial detection made in January this year, controversy surrounds the failure on the part of law enforcement authorities to bring it to the notice of the courts. Maithri Gunaratne, appearing in Hiru last Saturday (25), questioned why the police failed to inform the relevant Magistrate if the government lodged a complaint in that regard.

Australia has confirmed irregularities in payments owed to their government. Regardless of NPP efforts to blame it on hacker/hackers, the truth is clear. Payments have been made to an account that hadn’t been in the original agreement between the governments of Sri Lanka and Australia. That is the undeniable truth that the NPP cannot suppress by propaganda.

The NPP should be ashamed that such a fraud had been perpetrated on a country still struggling to cope up with the economic destruction caused by the UNP- and the SLFP-led governments with the help of “mission impossible” type roles played by outside interests, especially during Gotabaya Rajapaksa’s tenure using the JVP/Aragalaya.

The world knows how the UNP perpetrated the Treasury bond scams with the direct involvement of the then Governor of the Central Bank Arjuna Mahendran, in February 2015 and March 2016. Regardless of that intolerable scam, the UNP made a desperate attempt to retain the services of the Singaporean as the Governor of the Central Bank. Party leader and the then Prime Minister Ranil Wickremesinghe demanded the re-appointment of Mahendran. That despicable move had to be dropped due to massive Opposition protests and growing public discontent over the Treasury bond scams.

The first Treasury bond scam carried out on 27 February, 2015 caused a direct loss of approximately Rs. 2 billion. On the instructions of Mahendran, the Treasury suddenly and arbitrarily changed the process of issuing Treasury Bonds. According to media reports at that time, higher interest payments, over the next 30 years, caused a further loss of around Rs. 145 billion.

Then Mahendran struck again. Caused further direct losses of more than Rs. 4 billion to the government through the fraudulent increase in interest rates as a result of the Treasury Bond issues on 27th March, 2016 ,and 29th March, 2016, in order to provide an undue advantage to connected primary dealers by indulging in further pre-meditated bond scams.

NPP on back foot

The ruling party put on a brave face with lawmakers and various others trying to play down the incident at the Treasury. Some pathetically tried to compare various accusations directed at the Rajapaksas with the incident at the Treasury which they conveniently blamed on hacker/hackers.

The NPP is facing an explosive mixture of issues. Both the coal and Treasury scams have brought immense pressure on the national economy and caused automatic deterioration. The resignation of Punyakumara aka Kumara Jayakody over the coal scam indicated that defeating the NCM moved against him was a strategic political blunder. Had the NPP asked the tainted first time Minister to step down and appoint a Presidential Commission to go into the coal scam, the NPP could have averted a major disaster. However, the Energy Minister and the Energy Secretary Udayanga Hemapala had to resign before the Parliament took up the NCM. Had the top NPP leadership bothered to peruse the executive summary of the NAO presented to Parliament on 7 April, the Party wouldn’t have tried to defend the minister.

Having championed a corruption-free political party system and then won both the presidential and parliamentary polls on that platform, the NPP executed the shocking move to move 323 containers out of the Colombo Port, in January 2025, without even any cursory checks. Those who perpetrated that operation used continuing port congestion as an excuse to clear red-flagged containers without mandatory physical checking. The NPP recently thwarted a bid by Opposition lawmakers, representing a parliamentary committee inquiring into the illegal release of containers, to summon President Dissanayake.

That committee, headed by Justice Minister Attorney-at-Law Harshana Nanayakkara, owed an explanation as to why President Dissanayake, in his capacity as the Finance Minister, shouldn’t appear before a House committee. President Dissanayake very often addresses Parliament on crucial issues. As the Minister in charge of Finance, the President should offer an explanation regarding the high profile container issue that tarnished the NPP’s image.

Three major issues in hand, namely the release of 323 containers, coal scam and theft at the Treasury, regardless of what various apologists say on mainstream and social media, have caused irrevocable damage to the party, let alone escapades involving the likes of Speaker Jagath Wickramaratne, Minister Lal Kantha, etc. The impact on the NPP can be ascertained only at an election. With the public increasingly aware of the growing accusations against it, the ruling party will do whatever possible to put off long delayed Provincial Council elections. Facing the electorate against deepening discontent among the public seems to be a frightening situation. It would be interesting to observe how a House committee, headed by Foreign Minister Vijitha Herath, appointed to explore ways and means to conduct Provincial Council polls, address the issue at hand.

When compared with the three major issues, the resignation of Asoka Ranwala, as the Speaker, in December, 2024, over his failure to produce the much-touted educational qualifications, seems unnecessary. Of course, Ranwala’s case attracted tremendous public attention at that time as the public really believed the NPP wouldn’t deceive them. Ranwala’s lie shocked the public. NPP theoretician Prof. Ranjith Nirmal Dewasiri had no qualms in publicly attacking Ranwala in the wake of the NPP defending the Speaker. But, subsequent NPP actions revealed massive manipulations that shamed the first post-Aragalaya government.

Having accused Ranil Wickremesinghe of squandering as much as Rs 16 mn to join his wife Prof. Maithree in the UK in September, 2023, the NPP has ended up facing far more serious accusations. The incident at the Treasury should be sufficient for the Opposition to move NCM against the government. Of course, the NPP got the numbers in Parliament to easily defeat the NCM but the consequences would be devastating. Those who still talk of recovering the missing USD 2.5 mn must be living in a dreamland. The UNP is labelled with Treasury bond scams (2015 and 2016) and the SLPP faulted with tax cuts (2019) and sugar tax scam (2020). The NPP will have to live with the coal scam and Treasury theft. The NPP will no longer be able to parade on political platforms as paragons of virtue. It would be pertinent to mention that the Presidential Commission appointed to probe the procurement of coal, since 2009, would be able to produce a report to meet the NPP’s expectations. All indications point to that and 2026 is going to be far more challenging, both in and outside Parliament, than the previous year.

NDB fraud

Examined together, the massive fraud at the National Development Bank (NDB), perpetrated during the 2024-2026 period, and the Treasury incident, they underscore the vulnerability of the entire banking system. The 13.2 bn NDB fraud and theft of USD 2.5 mn from the Treasury exposed the regulator, the Central Bank of Sri Lanka, in respect of the NDB. The situation at the NDB cannot be examined without taking into consideration that Ernst & Young is the external auditors of the NDB and its Managing Partner Duminda Hulangamuwa functions as Senior Economic Adviser to President Dissanayake. People haven’t forgotten that Hulangamuwa had been mentioned as the possible successor of Mahinda Siriwardena before the NPP brought in Suriyapperuma. The Central Bank and Securities Exchange Commission (SEC) come under the purview of the Finance Ministry now embroiled in the expanding Treasury fiasco.

The Board of Directors at the NDB consists of Sriyan Cooray (Chairman), Kelum Edirisinghe (Director / Chief Executive Officer (Executive), Bernard Sinniah (Director /Non-Independent), Sujeewa Mudalige (Director /Independent), Kushan D’Alwis (Director/Independent), Kasturi Chellaraja (Director/Independent), Shweta Pandey (Director /Independent), Hasitha Premaratne (Director/Independent), Sanjaya Mohottala (Director (Non-Independent) and Shanil Fernando Director (Independent).

The issue at hand is how such a fraud went unnoticed for a considerable period of time and whether the top management simply ignored warning signs and the failure on the part of the regulator to intervene. Those who have read Mahinda Siriwardana’s ‘Sri Lanka’s Economic Revival: Reflections on the Journey from Crisis to Recovery’ would know the circumstances leading to the 2022 economic collapse. Soft spoken Siriwardana meticulously discussed how the then Central Bank leadership as well as the so-called economic leadership of the Pohottuwa party deliberately deceived President Gotabaya Rajapaksa. Siriwardena’s narrative is explosive. The book, launched before his retirement, with the participation of President Dissanayake, underscored the responsibility on the part of the political leadership and those running the banking system. Obviously Siriwardena’s work had no impact on the current dispensation as well as the top banking management.

The Opposition sees an apparent opportunity to heap pressure on the NPP as it contemplates counter measures. Their challenge is how to take remedial measures without jeopardizing the government. The IMF declaration that it is closely watching the theft of USD 2.5 mn from the Treasury must have added pressure on the government, ripped apart by the situation at the Treasury. Let us hope the government and the Opposition reach consensus on ways and means to improve financial discipline. Overall, the Parliament cannot absolve itself of the responsibility for enactment of laws and ensuring financial discipline and the fact that Sri Lanka needs to start repayment of debt in 2028.

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Midweek Review

Is language social or psychological phenomenon?

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This essay was presented at The Philosophy Group of the University of London about 20 years ago. The thought provoking essay published in The Island on 22 April by Usvwatte-aratchi- Some languages confine you; some languages free you prompted me to try to get this essay published if possible. It may help the readers to further their ideas about the importance of usage of language.

Personally, I have firsthand experience in this subject. I was exposed to two different cultures and two languages. In my formative years I was brought up in a certain culture and spoke the language pertaining to that culture/language (Sinhalese -Sri Lanka). I spent all my studying and working life (55 years) using a different language in a different culture (English -England). I must mention that this was not recently. It was the early 1960’s. I can claim that I have enough knowledge and experience to justify this essay topic. In this essay I shall be investigating some of the social aspects of language with the aid of some opinions put forward by some philosophers. Then I shall be making an attempt to see what psychology has to offer before I draw my own conclusions. I am treating social aspects as part and parcel of the culture. In my view these are inseparable entities, unless one chooses to forget his or her cultural upbringing to suit a particular society.

Adoption of different culture

Socially, learning a different language and adopting a different culture is quite possible. In this case what dominates is one’s attitude or the circumstances. Attitude is psychological. I am convinced that circumstances may lead to a change of attitudes. Having said that, we must not forget that there are individuals who have not taken the trouble to learn the language of the culture in which they live. This has created a lot of socio-psychological problems in the community in which they live. It is obvious that the problem is one of communication. The main tool of communication is language. Philosophers and psychologists have spent many years investigating how language helps us to communicate and also how it may lead us to misunderstand our own fellow human beings. Understanding others (family members, members of the community in which we live, and the strangers we meet) is one of the most important aspects of living.

An awareness of the problem of language goes back to the early Greek philosophers. Parmenides gave us the first example of an argument from language to the world, saying that if we speak of a thing it must exist, since we speak of a thing at various times, it must continue to exist in a particular form. It is recently that language itself has come to be studied in a systematic way. The two landmarks in this respect were the development of Linguistics and the philosophy of language in the 20th century. The great philosopher Bertrand Russell (1872-1970) has admitted that until he became a middle-aged man, he did not think about language per se, but regarded it as ‘transparent’. I am sure this is true with most of us although we are not of Russell’s caliber when it comes to philosophy. And one may not have to wait until one reaches one’s middle age.

Linguistics and philosophy of language

It will help us if we understand the difference between Linguistics and philosophy of Language. What linguists discover may be applied to philosophy, sociology, psychology, anthropology or physiology. But as a discipline of study, it remains independent of them. The philosophy of language is different. One of the modern philosophers John Searle (1932-2025) thought, by contrast to linguistics, philosophy tries to solve philosophical problems by analyzing the ordinary use, meaning and relations of words in a particular language. Searle goes on to say that language is crucial to understand human experience. In my opinion this is a very valid comment. At a very practical level we spend a lot of time sharing our experiences. Verbal communication is vital in this area. According to Canadian philosopher Ian Hacking(1936-2023) the influence of language on philosophy has been profound and almost unrecognized. He indicates, if we are not to be misled by this influence, it is necessary to become conscious of it, and to ask ourselves deliberately how far it is legitimate.

It is appropriate to bring in Ludwig Wittgenstein(1889-1951) at this point. He brought in the subject predicate theory of language. For example, if we say “John is king”. Where John is the subject and king is the predicate. Here existence requires substance. For Aristotle, forms do not exist independently of things—every form is the form of something. A “substantial” form is a kind that is attributed to a thing, without which that thing would be of a different kind or would cease to exist altogether. Wittgenstein supports Saint Augustine’s view that words are names of objects and that combinations of words have the sole function of describing reality. For example, if we point at a certain object, say a table and try to say to a child “this is a table”, the child will be confused as to what we are pointing at. Is it the colour, the tabletop or one or more of its legs This is called the ostensive definition method of teaching. Ostensive definitions lead to a variety of interpretations. The child may understand a particular case of this definition but there is no guarantee that she will be able to make a transition from one case to others like it.

Plato’s theory

J G Herder (1744-1803) pointed out the object to which we make reference may be defined by numerous different terms. How then can we justify direct, one to one correspondence-either of so many to one, or of one to so many? How are we going to deal with situations where a term describes something non-existent or only possible? Plato’s “Forms” theory cannot be applied here as anything that we can speak of already exists as a Form. Critics of this theory ask the question: “how can the world be crowded with so many imaginary objects?” We use words to describe and define. Is there any room for slang language? This comes in handy in our day to day social communication. Ostensive definition raises the questions that require a constant selection of what counts as relevant. In Aldous Huxley’s novel Chrome Yellow, the character Old Rowley is confused as to: Does ‘pig’ refer to the quality of having a curly tail? Or standing in rows to eat? Or being pink skinned and fat? Or wearing no clothes? When we use the word “piggishness” is it something inherent to pigs, or simply, a matter of how we choose to describe them?

How can we relate the above ideas and theories of language to our daily living? Daily living is a psychosocial activity.

Perceptions

The nature of language reflects the nature of our perceptions, and these are far from straight forward. Franz Brentano (1838-1917) developed his theory of intentionality: that every mental phenomenon has a relation of direction to its object, i.e. perceptions, desires, imagination etc. are related to what is perceived, desired or imagined. I presume this can be applied to any language irrespective of the culture (our social conditioning). Say for instance the images of art and the writings are given the ability to represent objects by imposing the intentionality on the object. Thus, when we assert that we see or believe something, we impose, by convention and intention, (that is true if and only if it is the case) on the statement, and these conditions are not contained intrinsically in the sounds that make it up, but in our perception of belief about the fact. I begin to wonder how this can be applied to non-physical and unseen situations. Sometimes our feelings and attitudes are unknown to the observer. A person may shout because he is angry but you cannot see the anger, only its physical expression. We will not be able to see the prior event that has led to the anger and the utterance. This shows that there is a limit to how much is revealed simply by observing a word and its context; there is often more than that can be said.

How can we account for unexpected linguistic behaviour? This has both social and psychological implications.

For a long time behavioural theorists believed that every development of the human being was controlled by environmental and social factors. This is similar to an ostensive explanation of meaning. It implied that everything was learnt through training and association. But Noam Chomsky (b.1928) was not happy with this idea. He thought language is a complex phenomenon and which is not taught bit by bit or systematically to infants. It is successfully acquired by (almost) everybody. From my own experience it is true to say that the difficulty in learning a second language is a very different process from that experienced with the first language. Chomsky argued that the first language is not in fact learned, but rather acquired through exposure to a particular language. According to him all languages share the same basic structure, and he called this “deep structure”, which may be expressed as surface structures through a process called ‘transformation’. Chomsky’s theory helps us to assume a universal system of grammar, which may generate an infinite number of particular sentences within a language. This explains how we may create sentences within a language we have never encountered before from a limited set of grammatical rules and this appears to be a rational scientific approach.

Social or psychological phenomenon

The argument/discussion whether language is a social or a psychological phenomenon requires much more investigation than this essay warrants. I have briefly brought in various philosophers’ work, which are invaluable to this topic in terms of philosophy of language. In conclusion I am tempted to state my own experiences as a bi-lingual person. When it comes to my first language, which is Sinhalese I don’t think I learned it. I heard my parents speaking it and I picked up a few words and I constructed my own sentences and gradually became proficient by accumulating more words. Of course, the proper grammatical use of even my own language was taught in school and not by my parents. Learning my second language i.e. English took a different form. I was taught to speak, read, and write English at school and I had to work harder at this than my first language, because my English was confined to the classroom situation only, i. e. I learnt English in a non- English environment. First language came naturally and the second one I had to learn to fit into the social and the education structure that prevailed at that time. Compulsion can motivate us to learn!I had no choice but to adopt myself culturally and linguistically as a university student in England and then as a university teacher in England. Apart from the native English students, I have taught students from different countries. European, African and Asian. I had the opportunity to intermingle with them and learned various different cultural and linguistic aspects. After almost a half a century in England, I am back to my own culture (language, customs, food etc) where I was born and started my life. I am still proficient in my own language Sinhalese. No conscious effort needed.

After all the foregoing arguments and philosophy that I have put forward, my own conclusion is Chomsky’s theories are more plausible to me than other theories on this issue. It is difficult to be exact and say whether language is a social or psychological phenomenon. From the above arguments, we can see that culture and language of a given society are tightly bound. This leads us to psychological adjustments in order to fit into a society. Who can deny that even the philosophers mentioned above have not been subjected to their own cultural environment?

by Prof. Sampath
Anson Fernando
Formerly University of
The Arts London

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Midweek Review

Birthing a Nation

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Thanks to community centres,

Taking root and flowering Down-Under,

Sri Lankans have finally given shape,

To a truly National New Year,

Where communities meet and greet,

Partake of the same bubbly pot of rice,

Spread cheer under the same banner,

And end the ‘Us’ and the ‘Other’ fixation.

By Lynn Ockersz

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