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Midweek Review

IMF medicine too bitter to swallow: NPP faces tough choices

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President Anura Kumara Dissanayake casts his vote on the morning of Nov. 14, 2024, at the Abeysingharamaya, Panchikawaththa, Maradana, in the 2024 General Election (pic courtesy PMD)

Mizukoshi

The Japanese Ambassador in Sri Lanka, Mizukoshi Hideaki, emphasised the importance and the responsibility on the part of Sri Lanka to implement the IMF formula. Hideaki, in an exclusive interview with the writer last August, in the run-up to the parliamentary election, declared that whoever wins the September 21 contest, the winner should adhere to, what he called, IMF remedies (Post-Aragalaya economic recovery depends on implementation of IMF formula – Japanese ambassador, The Island, August 21, 2024).

Bankrupt Sri Lanka, struggling to cope up with the deepening economic-political-social crisis, agreed, in late July 2024, to implement an IMF-led economic recovery programme, backed by Extended Fund Facility (EFF).

Having self-declared the country insolvent in April 2022, political parties, represented in Parliament, had no alternative but to accept the International Monetary Fund’s (IMF) dictates to overcome it.

This was the 17th IMF bailout for Sri Lanka and the third since the country brought the war against the Liberation Tigers of Tamil Eelam (LTTE) to a successful conclusion in May 2009.

The much discussed EFF arrangement, approved in March 2023, with a total amount of SDR (Special Drawing Rights) 2.3 billion, was definitely the high point in UNP leader Ranil Wickremesinghe’ presidential tenure (July 22 to Sept 2024).

Sri Lanka received the first $330m tranche of the IMF bailout package in March 2023.

The then President Ranil Wickremesinghe and the UNP repeatedly proclaimed that the finalisation of the EFF arrangement was a huge achievement. The Opposition obviously accepted that position when the entire Opposition skipped an opportunity to vote against two controversial Bills that tied up Sri Lanka with the IMF.

Having lambasted Wickremesinghe for the IMF agreement, the main Opposition Samagi Jana Balawegaya (SJB), Sri Lanka Podujana Peramuna (SLPP) and national People’s Power (NPP) quietly backed two Bills that were designed to ensure compliance with the widely criticised ‘deal’ with the IMF. The consensus among political parties was nothing but a personal victory for Wickremesinghe who hadn’t received a public mandate to exercise executive powers as the President. Amidst political turmoil, the SLPP-controlled Parliament elected Wickremesinghe as President to complete Gotabaya Rajapaksa’s five-year term, won at the 2019 November presidential election and fearing mob justice otherwise, as was allowed to happen in Bangladesh. That was done at the expense of their own man Dullas Alahapperuma.

The Parliament issued the following statement in the evening of July 24, 2024: “Public Financial Management and Economic Transformation Bills passed in Parliament today (Jul. 25) with amendments and without a vote. Amendments were incorporated to the bills during the committee stage and subsequently, the third reading was passed without a vote. These two bills were presented to Parliament on 22 May 2024.”

Whatever the differences, the Parliament unanimously endorsed the two Bills that made the outcome of the presidential and parliamentary elections irrelevant. Regardless of promises and declarations made by Ranil Wickremesinghe (Independent), Sajith Premadasa (SJB), Anura Kumara Dissanayake (NPP) and Namal Rajapaksa (SLPP) on election platforms, all of them were bound by the IMF agreement. There was no escape for political parties.

Wickremesinghe and his associates repeatedly declared the IMF agreement as the panacea for Sri Lanka’s economic crisis. Wickremesinghe knew he couldn’t win the presidential election under any circumstances. Premadasa, too, realised that he didn’t have an opportunity at all in beating Dissanayake at the presidential election though he addressed rallies as if he was certain of victory.

The failure on the part of Premadasa and Wickremesinghe to reach consensus on the former’s candidature at the presidential contest ensured Dissanayake’s victory. Had the SJB and the UNP reached an agreement, Dissanayake’s victory could have been thwarted. Together they polled over 6.5 mn votes whereas Dissanayake could secure only 5.6 mn. Obviously Wickremesinghe felt much more comfortable with Dissanayake as President than Premadasa, the one-time deputy leader of the UNP.

The UNP knew Wickremesinghe’s decision to contest the presidential election not only ensured Dissanayake’s victory but caused irreparable damage to the SLPP. However, Dissanayake is now under pressure from the IMF to meet the bailout conditions or face the consequences.

President Dissanayake, who also holds the Finance portfolio, is under pressure to increase electricity tariffs in line with the IMF formula.

Stark warning from IMF

IMF spokesperson Julie Kozack recently warned that the final approval of the fourth review of the ongoing programme depended on the government completing, what she called, prior actions, including restoring electricity cost recovery pricing.

All political parties represented in Parliament, including the NPP, regardless of what they told the electorate during the presidential and parliamentary elections, now acknowledge privately Sri Lanka wasn’t in a position to go back on the agreement with the IMF.

The key prerequisite for the IMF Board Meeting on the fourth review is nothing but a significant increase in the pricing formula, not only for electricity, but in turn may extend to water and other basics.

International news agencies quoted Kozack as having said that the main prior actions related to restoring electricity cost recovery pricing and ensuring proper function of the automatic electricity price adjustment mechanism.

In other words, USD 344 million in financing – the fourth tranche – has been put on hold.

President Dissanayake is under pressure to break a key promise made during the costly promises-filled polls campaigns last year. Dissanayake’s promise to reduce electricity rates by 30 percent is irrelevant against the backdrop of the IMF’s stark warning. The agreement between Sri Lanka and IMF that had been endorsed by Parliament in July 2023, overnight, made the Public Utilities Commission of Sri Lanka (PUCSL) irrelevant.

The government owed the public an explanation whether the agreement with the IMF hindered the PUCSL, established in terms of the Public Utilities Commission of Sri Lanka Act No 35 of 2002. If the pricing formula entirely depends on the proposed automatic electricity price adjustment mechanism the government cannot justify the operation of PUCSL.

The IMF has emphasised, in no uncertain terms, that Sri Lanka shouldn’t expect any opportunity to side-step what the lending agency called prior actions.

So, unless President Dissanayake increased electricity tariffs in line with the IMF’s formula, the EFF programme could be halted. That is the ugly truth. Perhaps President Dissanayake should disclose how political parties, represented in the previous Parliament, reached consensus on Public Financial Management and Economic Transformation Bills. At that time the NPP decided not to ask for division, there were only three NPP lawmakers in Parliament. The NPP group consisted of Anura Kumara Dissanayake, Vijitha Herath and Dr. Harini Amarasuriya. Today, the NPP parliamentary group comprises 159 lawmakers.

Having accepted both controversial Bills, the SJB now attacks the NPP over the proposed hike in electricity tariffs.

During the last phase of the parliamentary election campaign, President Dissanayake assured the country of a staggering 30% power tariff reduction in the near future with no intention to fulfill it. This false assurance was given on Nov 09, 2024, at Dambulla. The electorate was deceived. That was deliberate on the President’s part. Dissanayake couldn’t have been unaware that whoever won the parliamentary election the IMF expected the full implementation of the agreement.

Although the PUCSL initiated a public consultations process in line with the Electricity Act, President Dissanayake, in the first week of May, disclosed the decision to go ahead with the electricity tariff hike. The declaration was during a live discussion on Sirasa. Therefore, there cannot be any ambiguity over Sri Lanka adhering to the IMF agreement. The NPP has no option but to implement the agreement with the IMF.

Hideaki on IMF formula

The Japanese Ambassador in Sri Lanka, Mizukoshi Hideaki, emphasised the importance and the responsibility on the part of Sri Lanka to implement the IMF formula. Hideaki, in an exclusive interview with the writer last August, in the run-up to the parliamentary election, declared that whoever wins the September 21 contest, the winner should adhere to, what he called, IMF remedies (Post-Aragalaya economic recovery depends on implementation of IMF formula – Japanese ambassador, The Island, August 21, 2024).

Declaring that the position taken by creditors wasn’t meant to favour the then President Wickremesinghe, Hideaki said: “For Sri Lanka to achieve economic recovery, it is crucial to restore the international community’s trust. To this end, it is essential to steadily implement the various economic and social reforms laid down as conditions by the IMF, which is also the basis for the agreement on the debt restructuring.

Indian High Commissioner Santosh Jha expressed similar sentiments during an informal meeting with a selected group of journalists also in the run-up to the general election.

The country is in such a desperate situation, though there were no queues as during Gotabaya Rajapaksa’s presidency, the government needs to complete the four-year IMF programme. Increasing electricity tariff is not only inevitable but a necessity, though politically damaging, especially at a time the NPP had suffered a significant drop in votes within seven months.

Electricity tariff hike ahead of the forthcoming Provincial Council polls may further undermine the NPP’s vote base and provide a boost for the Opposition. But Dissanayake is not in a position to delay the process as the IMF intends to wrap up the work on the next tranche of funding.

The NPP cannot go back on its pledge to reduce electricity tariffs without losing further public support. The outcome at the Provincial Council election proved that the ruling party, in spite of having a commanding 2/3 majority in Parliament, is vulnerable. Loss of 2.3 mn votes out of 6.8mn that the NPP received at the parliamentary election, just seven months before, and the setback the government suffered in the predominantly Tamil speaking areas, underscored the developing difficulties.

Against that background, the NPP may find IMF conditions extremely difficult to meet but has no choice. Sri Lanka’s record in implementing IMF remedies is poor. Once the Treasury Secretary Mahinda Siriwardana, appearing on state run Rupavahini at the height of the economic crisis, pointed out how Sri Lanka deceived the IMF even during its previous engagements with the lending body. Siriwardena issued a dire warning to the powers that be against not adhering to IMF remedies. The outspoken official’s message was clear – If Sri Lanka bungled this opportunity that would be the end of the ongoing recovery process. Whatever corrupt politicians say to hoodwink voters the country is not out of the woods yet.

The country is in a critical juncture. President Dissanayake, in his capacity as the Finance Minister, is confronted with difficult choices. His government must prudently decide between economic relief and adherence to the IMF’s fiscal targets. Deviating from these targets can jeopardise the country’s access to multilateral financing from institutions, like the ADB and World Bank, which is essential for maintaining foreign currency inflows, necessary in line with the overall recovery process. The NPP cannot ignore that though IMF financial support is limited, its endorsement is crucial for unlocking broader international aid.

The NPP leadership will have to keep in mind that moratorium on repayment of loans ends in 2027 and the responsibility for accumulation of USD reserves lies with the administration. Sri Lanka has no option but to meet its obligations.

The government is unable to rectify sluggish job growth, declining living standards, and rising poverty. Therefore, finding effective policy tools to facilitate a robust recovery has become increasingly urgent.

Case of Pakistan

Former President Wickremesinghe has repeatedly appreciated India’s role in facilitating IMF bailout within months after he succeeded Gotabaya Rajapaksa whose government foolishly rejected the lending agency’s help. By the time the Rajapaksa administration realised irrationality in its much-touted domestic solution, the national economy was in tatters.

Against the backdrop of India interceding on behalf of Sri Lanka with the IMF, New Delhi’s opposition to Washington-based lending agency granting a fresh bailout of USD 1 bn to Pakistan seems contentious.

Indian Defence Minister Rajnath Singh is on record as having alleged, at Bhuj airbase in Gujarat, that Pakistan would certainly utilise a significant portion of the fresh bailout package to rebuild, what he called, the terrorist infrastructure destroyed in operation Sindoor, mounted in response to the Pahalgam massacre on April 22, 2025.

The IMF disregarded India’s concerns. When compared with the IMF bailout package amounting to USD 3 bn to Colombo, the facility made available to Pakistan is much bigger. The IMF has agreed to support Pakistan with a total of $7 billion under the EFF programme. Pakistan received USD 2.1 billion in two separate instalments before the latest tranche of $1 billion was made after the IMF completed its first review of Pakistan’s progress.

Director of the IMF’s communications department Julie Kozack recently explained that under the circumstances the lending agency released USD 1 bn to Pakistan. Kozack dismissed claims of Pakistan utilising IMF funds for rebuilding terrorist infrastructure as money was subjected to tight controls meant to ensure proper utilisation.

Pakistan has denied having a hand in the Pahalgam attack. India’s all-out campaign against Pakistan over its role in international terrorism reminds us of what India did in Sri Lanka. New Delhi’s politically-motivated (no less a person than their National Security Advisor the late J.N. Dixit, admitted Indian intervention here based on political reasons, in his memoirs released in 2005, a year before Sri Lanka launched offensive action (Aug 2006-May 2009).

As combined Sri Lankan armed forces were engaged in large scale operations on the Vanni east front, various interested parties made a desperate bid to halt IMF funding for Sri Lanka. They sought to delay the USD 1.9 bn loan facility to discourage President Mahinda Rajapaksa from bringing the war to a successful conclusion.

In spite of President Rajapaksa’s rejection of a joint UK-France request to call off the Vanni offensive, the UN Security Council asserted that halting the IMF package was not their responsibility.

The then British Foreign Secretary David Miliband and his French counterpart Bernard Kouchner met President Mahinda Rajapaka during the last week of April 2009 as ground forces were making rapid progress on the Vanni east front.

Interested parties had been pushing hard to deprive Sri Lanka of IMF facility after the LTTE’s failure to halt the ground offensive. As long as they felt confident in the LTTE’s military capacity, those demanding accountability on Sri Lanka’s part today never wanted peace. They explored all possible avenues after the LTTE began retreating on all fronts. The bid to halt IMF funding for Sri Lanka should be examined in that context.

The LTTE lobby had been so influential it was able to reach the then US Secretary of State Hillary Clinton whose shocking involvement with the group surprised many. Even after the end of the conflict, the Human Rights Watch (HRW) demanded that the IMF should insist that the government of Sri Lanka address significant post-conflict human rights abuses as part of the approval for a USD 2.5 billion stand-by loan.

The IMF’s handling of funding during the last phase of the conflict, and after, proved that the lending agency couldn’t be influenced by external interventions.

The NPP will have to abide by the IMF remedies or face the consequences. In the run up to the presidential election, the IMF delegation met the NPP team. The meeting that was held at the Shangri-La on 14 March 2024, discussed Sri Lanka’s debt restructuring and anti-fraud processes were discussed at length.

Senior Mission Chief of the Fund, Peter Breuer, led the IMF. The delegation included Assistant to the Director of the Asia and Pacific Department at the IMF Katsiaryna Svieydzenka, and IMF Staff Manavee Abeywickrama.

Representing the NPP at the meeting were party executive members MP Vijitha Herath and Muditha Nanayakkara, and members of the party’s Economic Council Professors Anil Jayantha, Seetha Bandara, and Harshana Suriyapperuma, and former MP Sunil Handunnetti.

The Shangri-La meeting followed a meeting held on January 18, 2024, at the JVP head office at Pelawatte, Battaramulla.

The IMF had been fully involved with political parties during the presidential election campaign last year hence all knew what the IMF remedies were. All political parties exploited the situation to their advantage with the SJB and NPP once boycotting a meeting called by the then President Wickremesinghe with the IMF.

 

By Shamindra Ferdinando


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Midweek Review

Dr. Jaishankar drags H’tota port to reverberating IRIS Dena affair

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Sri Lanka reached an agreement with China to build the Hambantota port after India declined the then President Mahinda Rajapaksa’s request to take charge of the high profile project. The Indian decision may have been influenced by the war raging in the northern region at that time.

Indian Foreign Minister Dr. S. Jaishankar recognised Hambantota harbour as a Chinese military facility that underlined intimidating foreign military presence in the Indian Ocean. Jaishankar was responding to queries regarding India’s widely mentioned status as the region’s net security provider against the backdrop of a US submarine blowing up an Iranian frigate IRIS Dena, off Galle, within Sri Lanka’s Exclusive Economic Zone.

This happened at the Raisina Dialogue 2026 (March 5 to 7) in New Delhi. Raisina Dialogue was launched in 2016, three years after Narendra Modi became the Prime Minister.

The query obviously rattled the Indian Foreign Minister. Urging the moderator, Ms. Pakli Sharma Ipadhyay, to understand, what he called, the reality of the Indian Ocean, Dr. Jaishankar pointed out the joint US-British presence at Diego Garcia over the past five decades. Then he referred to the Chinese presence at Djibouti in East Africa, the first overseas Chinese military base, established in 2017, and Chinese takeover of Hambantota port, also during the same time. China secured the strategically located port on a 99-year lease for USD 1.2 bn, under controversial circumstances. China succeeded in spite of Indian efforts to halt Chinese projects here, including Colombo port city.

The submarine involved is widely believed to be Virginia-class USS Minnesota. The crew, included three Australian Navy personnel, according to international news agencies. However, others named the US Navy fast-attack submarine, involved in the incident, as USS Charlotte.

Diego Garcia is responsible for military operations in the Middle East, Africa and the Indo-Pacific. Dr. Jaishankar didn’t acknowledge that India, a key US ally and member of the Quad alliance, operated P8A maritime patrol and reconnaissance flights out of Diego Garcia last October. The US-India-Israel relationship is growing along with the US-Sri Lanka partnership.

The Indian Foreign Minister emphasised the deployment of the US Fifth Fleet in Bahrain, one of the countries that had been attacked by Iran, following the US-Israeli assassination of Iranian Supreme Leader, and key government functionaries, in a massive surprise attack, aiming at a regime change there. The Indian Minister briefly explained how they and Sri Lanka addressed the threat on three Indian navy vessels following the unprovoked US-Israeli attacks on Iran. Whatever the excuses, the undeniable truth is, as Sharma pointed out, that the US attack on the Iranian frigate took place in India’s backyard.

Sri Lankan Foreign Minister Vijitha Herath who faced Sharma before Dr. Jaishankar, struggled to explain the country’s position. Dr. Jaishankar made the audience laugh at Minister Herath’s expense who repeatedly said that Sri Lanka would deal with the situation in terms of the UN Convention on the Law of the Sea (UNCLOS) and international laws. Herath should have pointed out that Hambantota was not a military base and couldn’t be compared, under any circumstances, with the Chinese base in Djibouti.

Typical of the arrogant Western power dynamics, the US never cared for international laws and President Donald Trump quite clearly stated their position.

Israel is on record as having declared that the decision to launch attacks on Iran had been made months ago. Therefore, the sinking of the fully domestically built vessel that was launched in 2021 should be examined in the context of overall US-Israeli strategy meant to break the back of the incumbent Islamic revolutionary government and replace it with a pro-Western regime there as had been the case after the toppling of the democratically elected government there, led by Prime Minister Mossadegh, in August, 1953.

US Defence Secretary Pete Hegseth declared that IRIS Dena “thought it was safe in international waters’ but died a quiet death.” A US submarine torpedoed the vessel on the morning of March 4, off Galle, within Sri Lanka’s exclusive economic zone and that decision must have been made before the IRIS Dena joined International Fleet Review (IFR) and Exercise Milan 2026, at Visakhapatnam, from February 15 to 25.

The sinking of the Iranian vessel, a Moudge –class frigate attached to Iran’s southern fleet deployed in the Gulf of Oman and Strait of Hormuz, had been calculated to cause mayhem in the Indian Ocean. Obviously, and pathetically, Iran failed to comprehend the US-Israeli mindset after having already been fooled with devastating attacks, jointly launched by Washington and Tel Aviv against the country’s nuclear research facilities, while holding talks with it on the issue last June. Had they comprehended the situation they probably would have pulled out of the IFR and Milan 2026. Perhaps, Iran was lulled into a false sense of security because they felt the US wouldn’t hit ships invited by India. The US Navy did not participate though the US Air Force did.

The US action dramatically boosted Raisina Dialogue 2026, but at India’s expense. Prime Minister Modi’s two-day visit to Tel Aviv, just before the US-Israel launched the war to effect a regime change in Teheran, made the situation far worse. BJP seems to have decided on whose side India is on. But, the US action has, invariably, humiliated India. That cannot be denied. The Indian Navy posted a cheery message on X on February 17, the day before President Droupadi Murmu presided over IFR off the Visakhapatnam coast. “Welcome!” the Indian Navy wrote, greeting the Iranian warship IRIS Dena as it steamed into the port of Visakhapatnam to join an international naval gathering. Photographs showed Iranian sailors and a grey frigate gliding into the Indian harbour on a clear day. The hashtags spoke of “Bridges of Friendship” and “United Through Oceans.”

US alert

Dr. Jaishankar

Altogether, three Iranian vessels participated in IFR. In addition to the ill-fated IRIS Dena, the second frigate IRIS Lavan and auxiliary ships IRIS Bushehr comprised the group. Dr. Jaishankar disclosed at the Raisina Dialogue 2026 that Iran requested India to allow IRIS Lavan to enter Indian waters. India accommodated the vessel at Cochin Port (Kochi Port) on the Arabian Sea in Kerala.

At the time US torpedoed IRIS Dena, within Sri Lanka’s EEZ, IRIS Lavan was at Cochin port. Sri Lanka’s territorial waters extend 12 nautical miles (approximately 22 km) from the country’s coastline. The US hit the vessel 19 nautical miles off southern coastline.

Sri Lanka, too, participated in IFR and Milan 2026. SLN Sagara (formerly Varaha), a Vikram-class offshore patrol vessel of the Indian Coast Guard and SLN Nandimithra, A Fast Missile Vessel, acquired from Israel, participated and returned to Colombo on February 27, the day before IRIS Lavan sought protection in Indian waters.

Although many believed that Sri Lanka responded to the attack on IRIS Dena, following a distressed call from that ship, the truth is it was the Indo-Pacific Command (INDOPACOM) that alerted the Maritime Rescue Coordination centre (MRCC) after blowing it up with a single torpedo. The SLN’s Southern Command dispatched three Fast Attack Craft (FACs) while a tug from Sri Lanka Ports Authority (SLPA) joined later.

The INDOPACOM, while denying the Iranian claim that IRIS Dena had been unarmed at the time of the attack, emphasised: “US forces planned for and Sri Lanka provided life-saving support to survivors in accordance with the Law of Armed Conflict.” In the post shared on X (formerly Twitter) the US has, in no uncertain terms, said that they planned for the rescuing of survivors and the action was carried out by the Sri Lanka Navy.

IRIS Lavan and IRIS Bushehr are most likely to be held in Cochin and in Trincomalee ports, respectively, for some time with the crews accommodated on land. With the US-Israel combine vowing to go the whole hog there is no likelihood of either India or Sri Lanka allowing the ships to leave.

Much to the embarrassment of the Modi administration, former Indian Foreign Secretary Kanwal Sibal has said that IRIS Dena would not have been targeted if Iran was not invited to take part in IFR and Milan naval exercise.

“We were the hosts. As per protocol for this exercise, ships cannot carry any ammunition. It was defenseless. The Iranian naval personnel had paraded before our president,” he said in a post on X.

Sibal argued that the attack was premeditated, pointing out that the US Navy had been invited to the exercise but withdrew at the last minute, “presumably with this operation in mind.”

Sibal added that the US ignored India’s sensitivities, as the Iranian ship was present in the waters due to India’s invitation.

He stressed that India was neither politically nor militarily responsible for the US attack, but carried a moral and humanitarian responsibility.

“A word of condolence by the Indian Navy (after political clearance) at the loss of lives of those who were our invitees and saluted our president would be in order,” Sibal said.

Iran and even India appeared to have ignored the significance of USN pullout from IFR and Milan exercise at the eleventh hour. India and Sri Lanka caught up in US-Israeli strategy are facing embarrassing questions from the political opposition. Both Congress and Samagi Jana Balwegaya (SJB), as well as Sri Lanka Podujana Peramuna (SLPP), exploited the situation to undermine respective governments over an unexpected situation created by the US. Both India and Sri Lanka ended up playing an unprecedented role in the post-Milan 2026 developments that may have a lasting impact on their relations with Iran.

The regional power India and Sri Lanka also conveniently failed to condemn the February 28 assassination of Iranian Supreme Leader Ayatollah Ali Khamenei, while that country was holding talks with the US, with Oman serving as the mediator.

Condemning the unilateral attack on Iran, as well as the retaliatory strikes by Iran, Leader of the Opposition in the Lok Sabha and Congress leader Rahul Gandhi on Tuesday (March 3, 2026) questioned India’s silence on the Middle East developments.

In a post on social media platform X, Gandhi said Prime Minister Narendra Modi must speak up. “Does he support the assassination of a Head of State as a way to define the world order? Silence now diminishes India’s standing in the world,” he said.

Under heavy Opposition fire, India condoled the Iranian leader’s assassination on March 5, almost a week after the killing. Foreign Secretary Vikram Misri met the Iran Ambassador in Delhi and signed the condolence book, though much belatedly.

SL-US relations

The Opposition questioned the NPP government’s handling of the IRIS Dena affair. They quite conveniently forgot that any other government wouldn’t have been able to do anything differently than bow to the will of the US. Under President Trump, Washington has been behaving recklessly, even towards its longtime friends, demanding that Canada become its 51st state and that Denmark handover Greenland pronto.

SJB and Opposition leader Sajith Premadasa cut a sorry figure demanding in Parliament whether Sri Lanka had the capacity to detect submarines or other underwater systems. Sri Lanka should be happy that the Southern Command could swiftly deploy three FACs and call in SLPA tug, thereby saving the lives of 32 Iranians and recovering 84 bodies of their unfortunate colleagues. Therefore, of the 180-member crew of IRIS Dena, 116 had been accounted for. The number of personnel categorised as missing but presumably dead is 64.

There is no doubt that Sri Lanka couldn’t have intervened if not for the US signal to go ahead with the humanitarian operation to pick up survivors. India, too, must have informed the US about the Iranian request for IRIS Lavan to re-enter Indian waters. Sri Lanka, too, couldn’t have brought the Iranian auxiliary vessel without US consent. President Trump is not interested in diplomatic niceties and the way he had dealt with European countries repeatedly proved his reckless approach. The irrefutable truth is that the US could have torpedoed the entire Iranian group even if they were in Sri Lankan or Indian Exclusive Economic Zone (EEZ) that extends to 200 nautical miles from its coastline.

In spite of constantly repeating Sri Lanka’s neutrality, successive governments succumbed to US pressure. In March 2007, Mahinda Rajapaksa’s government entered into Acquisition and Cross- Servicing Agreement (ACSA) with the US, a high profile bilateral legal mechanism to ensure uninterrupted support/supplies. The Rajapaksas went ahead with ACSA, in spite of strong opposition from some of its partners. In fact, they did not even bother to ask or take up the issue at Cabinet level before the then Defence Secretary Gotabaya Rajapaksa, a US citizen at the time, and US Ambassador here Robert O. Blake signed it. Close on the heels of the ACSA signing, the US provided specific intelligence that allowed the Sri Lanka Navy to hunt down four floating LTTE arsenals. Whatever critics say, that US intervention ensured the total disruption of the LTTE supply line and the collapse of their conventional fighting capacity by March 2009. The US favourably responded to the then Vice Admiral Wasantha Karannagoda’s request for help and the passing of intelligence was not in any way in line with ACSA.

That agreement covered the 2007 to 2017 period. The Yahapalana government extended it. Yahapalana partners, the SLFP and UNP, never formally discussed the decision to extend the agreement though President Maithripala Sirisena made a desperate attempt to distance himself from ACSA.

It would be pertinent to mention that the US had been pushing for ACSA during Rail Wickremesinghe’s tenure as the Premier, in the 2001-2003 period. But, he lacked the strength to finalise that agreement due to strong opposition from the then Opposition. During the time the Yahapalana government extended ACSA, the US also wanted the Status of Forces Agreement (SOFA) signed. SOFA, unlike ACSA, is a legally binding agreement that dealt with the deployment of US forces here. However, SOFA did not materialise but the possibility of the superpower taking it up cannot be ruled out.

Gotabaya Rajapaksa, who won the 2019 presidential election, earned the wrath of the US for declining to finalise MCC (Millennium Challenge Corporation) Compact on the basis of Prof. Gunaruwan Committee report that warned that the agreement contained provisions detrimental to national security, sovereignty, and the legal system. In the run up to the presidential election, UNP leader Ranil Wickremesinghe declared that he would enter into the agreement in case Sajith Premadasa won the contest.

Post-Aragalaya setup

Since the last presidential election held in September 2024, Admiral Steve Koehler, a four-star US Navy Admiral and Commander of the US Pacific Fleet visited Colombo twice in early October 2024 and February this year. Koehler’s visits marked the highest-level U.S. military engagement with Sri Lanka since 2021.

Between Koehler’s visits, the United States and Sri Lanka signed a Memorandum of Understanding (MoU) formalising the defence partnership between the Montana National Guard, the US Coast Guard District 13, and the Sri Lanka Armed Forces under the Department of War’s State Partnership Programme (SPP). The JVP-led NPP government seems sure of its policy as it delayed taking a decision on one-year moratorium on all foreign research vessels entering Sri Lankan waters though it was designed to block Chinese vessels. The government is yet to announce its decision though the ban lapsed on December 31, 2024.

The then President Ranil Wickremesinghe was compelled to announce the ban due to intense US-Indian pressure.

The incumbent dispensation’s relationship with US and India should be examined against allegations that they facilitated ‘Aragalaya’ that forced President Gotabaya Rajapaksa out of office. The Trump administration underscored the importance of its relationship with Sri Lanka by handing over ex-US Coast Guard Cutter ‘Decisive ‘to the Sri Lanka Navy. The vessel, commanded by Captain Gayan Wickramasooriya, left Baltimore US Coast Guard Yard East Wall Jetty on February 23 and is expected to reach Trincomalee in the second week of May.

Last year Sri Lanka signed seven MoUs, including one on defence and then sold controlling shares of the Colombo Dockyard Limited (CDL) to a company affiliated to the Defence Ministry as New Delhi tightened its grip.

Sri Lanka-US relations seemed on track and the IRIS Dena incident is unlikely to distract the two countries. The US continues to take extraordinary measures to facilitate war on Iran. In a bid to overcome the Iranian blockade on crude carriers the US temporarily eased sanctions to allow India to buy Russian oil.

Treasury Secretary Scott Bessent declared a 30-day waiver was a “deliberate short-term measure” to allow oil to keep flowing in the global market. The US sanctioned Russian oil following Moscow’s invasion of Ukraine, forcing buyers to seek alternatives.

The US doesn’t care about the Ukraine government that must be really upset about the unexpected development. India was forced to halt buying Russian oil and now finds itself in a position to turn towards Russia again. But that would be definitely at the expense of Iran facing unprecedented military onslaught.

By Shamindra Ferdinando

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Midweek Review

A Living Legend of the Peradeniya Tradition:

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Prof. H. L. Seneviratne

A Tribute to Professor H. L. Seneviratne – Part I

My earliest memories of the eminent anthropologist, Professor H. L. Seneviratne date back to my childhood, when I first encountered his name through the vivid accounts of campus life shared by my late brother, Sugathapala de Silva, then a lecturer in the Department of Sinhala at the University of Peradeniya. By the time I became a first-year sociology student in 1968/69, I had the privilege of being taught by the Professor, whose guidance truly paved the way for my own progression in sociology and anthropology. Even then, it was clear that he was a towering presence—not just as an academician, but as a central figure in the lively cultural and literary renaissance that defined that era of the university’s intellectual history.

 H.L. Seneviratne stood alongside a galaxy of intellectuals who shaped and developed the literary consciousness of the Peradeniya University. His professorial research made regular appearances in journals such as Sanskriti and Mimamsa, published Sinhala and English articles, and served as channels for the dissemination of the literary consciousness of Peradeniya to the population at large. These texts were living texts of a dynamic intellectual ferment where the synthesis of classical aesthetic sensibilities with current critical intellectual thought in contemporary Sri Lanka was under way.

The concept of a ‘Peradeniya tradition or culture’, a term which would later become legendary in Sri Lankan literary and intellectual circles, was already being formed at this time. Peradeniya culture came to represent a distinctive synthesis: cosmopolitanism entwined with well-rooted local customs, aesthetic innovation based on classical Sinhala styles, and critical interaction with modernity. Among its pre-eminent practitioners were intellectual giants such as Ediriweera Sarachchandra, Gunadasa Amarasekara, and Siri Gunasinghe. These figures and H.L. Seneviratne himself, were central to the shaping of a space of cultural and literary critique that ranged from newspapers to book-length works, public speeches to theatrical performance.

Unlimited influence

H.L. Seneviratne’s influence was not limited to the printed page, which I discuss in this article. He operated in and responded to the performative, interactive space of drama and music, situating lived artistic practice in his cultural thought. I recall with vividness the late 1950s, a period seared into my memory as one of revelation, when I as a child was fortunate enough to witness one of the first performances of Maname, the trailblazing Sinhala drama that revolutionised Sri Lankan theatre. Drawn from the Nadagam tradition and staged in the open-air theatre in Peradeniya—now known as Sarachchandra Elimahan Ranga Pitaya—or Wala as used by the campus students.  Maname was not so much a play as a culturally transformative experience.

H.L. Seneviratne was not just an observer of this change. He joined the orchestra of Maname staged on November 3, 1956, lending his voice and presence to the collective heartbeat of the performance. He even contributed to the musical group by playing the esraj, a quiet but vital addition to the performance’s beauty and richness. Apart from these roles, he played an important part in the activities of Professor Sarathchandra’s Sinhala Drama Society, a talent nursery and centre for collaboration between artists and intellectuals. H.L. Seneviratne was a friend of Arthur Silva, a fellow resident of Arunachalam Hall then, and the President of the Drama Circle. H.L. Seneviratne had the good fortune to play a role, both as a member of the original cast, and an active member of the Drama Circle that prevailed on lecturer E.R. Sarathchandra to produce a play and gave him indispensable organizational support. It was through this society that Sarachchandra attracted some of the actors who brought into being Maname and later Sinhabhahu, plays which have become the cornerstone of Sri Lanka’s theatrical heritage.

The best chronicler of Maname

H.L. Seneviratne is the best chronicler of Maname. (Towards a National Art, From Home and the World, Essays in honour of Sarath Amunugama. Ramanika Unamboowe and Varuni Fernando (eds)). He chronicles the genesis of Ediriweera Sarachchandra’s seminal play Maname, framing it as a pivotal attempt to forge a sophisticated national identity by synthesizing indigenous folk traditions with Eastern theatrical aesthetics. Seneviratne details how Sarachchandra, disillusioned with the ‘artificiality’ of Western-influenced urban theatre and the limitations of both elite satires and rural folk plays, looked toward the Japanese Noh and Kabuki traditions to find a model for a ‘national’ art that could appeal across class divides. The author emphasises that the success of Maname was not merely a solo intellectual feat but a gruelling, collective effort involving a ‘gang of five’ academics and a dedicated cohort of rural, bilingual students from the University of Ceylon at Peradeniya. Through anecdotes regarding the discovery of lead actors like Edmund Wijesinghe and the assembly of a unique orchestra, Seneviratne highlights the logistical struggles—from finding authentic instruments to managing cumbersome stage sets—that ultimately birthed a transformative ‘oriental’ theatre rooted in the nadagama style yet refined for a modern, sophisticated audience.

Born in Sri Lanka in 1934, in a village in Horana, he was educated at the Horana Taxila College following which he was admitted to the Department of Sociology at the University of Peradeniya. H.L. Seneviratne’s academic journey subsequently led him to the University of Rochester for his doctoral studies. But, despite his long tenure in the United States, his research has remained firmly rooted in the soil of his homeland.

His early seminal work, Rituals of the Kandyan State, his PhD thesis turned into a book, offered a groundbreaking analysis of the Temple of the Tooth (Dalada Maligawa). By examining the ceremonies surrounding the sacred relic, H.L. Seneviratne demonstrated how religious performance served as the bedrock of political legitimacy in the Kandyan Kingdom. He argued that these rituals at the time of his fieldwork in the early 1970s were not static relics of the past, but active tools used to construct and maintain the authority of the state, the ideas that would resonate throughout his later career.

The Work of Kings

Perhaps, his most provocative contribution arrived with the publication of The Work of Kings published in 1999. In this sweeping study, H.L. Seneviratne traced the transformation of the Buddhist clergy, or Sangha, from the early 20th-century ‘social service’ monks, who focused on education and community upliftment, to the more politically charged nationalist figures of the modern era. He analysed the shift away from a universalist, humanistic Buddhism toward a more exclusionary identity, sparking intense debate within both academic and religious circles in Sri Lanka.

In The Work of Kings, H.L. Seneviratne has presented a sophisticated critique and argued that in the early 20th century, influenced by figures like Anagarika Dharmapala, there was a brief ‘monastic ideal’ centred on social service and education. This period saw monks acting as catalysts for community development and moral reform embodying a humanistic version of Buddhism that sought to modernize the country while maintaining its spiritual integrity.

However, H.L. Seneviratne contends that this situation was eventually derailed by the rise of post-independence nationalism. He describes a process where the clergy moved away from universalist goals to become the vanguard of a narrow ethno-religious identity. By aligning themselves so closely with the state and partisan politics, H.L. Seneviratne suggests that the Sangha inadvertently traded their moral authority for political influence. This shift, in his view, led to the ‘betrayal’ of the original social service movement, replacing a vision of broad social progress with one centred on political dominance.

The core of his critique lies in the disappearance of what he calls the ‘intellectual monk.’ He laments the decline of the scholarly, reflective tradition in favour of a more populist and often inflammatory rhetoric. By analysing the rhetoric of key monastic figures, H.L. Senevirathne illustrates how the language of Buddhism was repurposed to justify political ends, often at the expense of the pluralistic values that he believes are inherent to the faith’s core teachings.

H.L. Seneviratne’s work remains highly relevant today as it provides a framework for understanding contemporary religious tensions. His analysis serves as a warning about the consequences of merging religious institutional power with state politics. By documenting this historical shift, he challenges modern Sri Lankans—and global observers—to reconsider the role of religious institutions in a secular, democratic state, urging a return to the compassionate and socially inclusive roots of the Buddhist tradition.

  Within the broader context of Sri Lankan anthropology, H.L. Seneviratne is frequently grouped with other towering figures of his generation, most notably Stanley Jeyaraja Tambiah and Gananath Obeyesekere. Together, this remarkable cohort revolutionized the study of Sri Lanka by applying structural and psychological analyses to religious and ethnic identity. While Tambiah famously interrogated the betrayal of non-violent Buddhist principles in the face of political violence, H.L. Seneviratne’s work is often seen as the essential sociological counterpart, providing the detailed historical and institutional narrative of how the monastic order itself was reshaped by these very forces.

Reation to Seneviratne’s critque

The reaction to H.L. Seneviratne’s critique has been as multifaceted as the work itself. In academic circles, particularly those influenced by post-colonial theory, he is celebrated for speaking truth in a public place. Scholars have noted that because he writes as an insider—both a Sinhalese and a Buddhist, that makes them both credible and, to some, highly objectionable. His work has paved the way for a younger generation of Sri Lankan sociologists and anthropologists to move beyond traditional functionalism towards more radical articulations of competing interests and political power.

However, his analysis has also made him a target for nationalist critics. Those aligned with ethno-religious movements often view his deconstruction of the Sangha’s political role as an attack on Sinhalese-Buddhist identity itself. These detractors argue that H.L. Seneviratne’s intellectualist or universalist view of Buddhism fails to account for the necessity of the clergy’s role in protecting the nation against neo colonial and modern pressures. This tension highlights the very descent into ideology that H.L. Seneviratne has spent his career documenting.

H.L. Seneviratne’s legacy is defined by this ongoing dialogue between scholarship and social reality. His transition from the detached scholar seen in his early work on Kandyan rituals to the socially concerned intellectual of The Work of Kings mirrors the very transformation of the Sangha and Buddha Sasana he studied.  By refusing to look away from the complexities of the present, he has ensured that his work remains a cornerstone for any serious discussion on the future of religion and governance in Sri Lanka.

Focus on good governance

In his later years, H.L. Seneviratne has pivoted his focus toward the practical application of his theories, specifically examining how the concept of ‘Good Governance’ interacts with traditional religious structures. He argues that for Sri Lanka to achieve true stability, there must be a fundamental reimagining of the Sangha’s role in the public sphere—one that moves away from the ‘work of Kings’ and returns to a more ethical, advisory capacity. This shift in his recent lectures reflects a deep concern about the erosion of democratic institutions and the way religious sentiment can be harnessed to bypass the rule of law.

Building on this, contemporary scholars like Benjamin Schonthal have expanded H.L. Seneviratne’s inquiry into the legal and constitutional dimensions of Buddhism in Sri Lanka. While H.L. Seneviratne provided the anthropological groundwork for how monks gained political power, this newer generation of academics examines how that power has been codified into the very laws of the state. They explore the ‘path dependency’ created by the historical shifts H.L. Seneviratne documented, looking at how the legal privileging of Buddhism creates unique challenges for a pluralistic society.

New Sangha

Furthermore, his influence is visible in the work of local scholars who focus on ‘engaged Buddhism.’ These researchers look back at H.L. Seneviratne’s description of the early 20th-century social service monks as a blueprint for modern reform. By identifying the moment where the clergy’s mission shifted from social welfare to political nationalism, these scholars use H.L. Seneviratne’s historical milestones to advocate a ‘New Sangha’ that prioritizes reconciliation and inter-ethnic harmony over state-aligned power.

The enduring power of H.L. Seneviratne’s work lies in its refusal to offer easy answers. By mapping the transition within Buddhist practice from ritual to politics, and from social service to nationalism, he has provided an analytical framework in which the nation can see its own transformation. His legacy is not just a collection of books, but a persistent, rigorous habit of questioning that continues to inspire those who seek to understand the delicate balance between faith and the modern state.

H.L. Seneviratne continues to challenge his audience to think beyond the immediate political moment. By documenting the arc of Sri Lankan history from the sacred rituals of the Kandyan kings to the modern halls of parliament, he provides a vital sense of perspective. Whether he is being celebrated by the academic community or critiqued by nationalist voices, his work ensures that the conversation regarding the soul of the nation remains rigorous, historically grounded, and unafraid of its own complexities.

Anthropology and cinema

H.L. Seneviratne identifies the mid-1950s as the critical turning point for this cinematic shift, specifically anchoring the move to 1956 with the release of Lester James Peries’s “Rekava.” This period was a watershed moment in Sri Lankan history, coinciding with a broader nationalist resurgence that sought to reclaim a localized identity from the influence of colonial and foreign powers. H.L. Seneviratne suggests that before this era, the ‘South Indian formula’ dominated the screen, characterized by studio-bound sets, theatrical acting, and musical interludes that felt alien to the island’s actual social fabric. The pioneers of this movement, led by Lester James Peries and later followed by figures like Siri Gunasinghe in the early 1960s, deliberately moved the camera into the open air of the rural village to capture what H.L. Seneviratne describes as the ‘authentic rhythms’ of life. This transition was not merely aesthetic but deeply ideological; it replaced the mythical, exaggerated heroism of commercial cinema with a nuanced exploration of the post-colonial middle class and the crumbling feudal hierarchies. By the 1960s, through landmark works like ‘Gamperaliya,’ these filmmakers were successfully crafting a modern mythology that reflected the internal psychological tensions and the social evolution of a nation navigating its way between traditional Buddhist values and a rapidly modernizing world.

His critique of the relationship between art and the state is particularly evident in his analysis of historical epics, where he has argued that certain cinematic portrayals of ancient kings and battles serve as a form of ‘visual nationalism,’ translating the ideological shifts he documented in The Work of Kings onto the silver screen. By analysing these films, he shows how popular culture can become a powerful tool for constructing a simplified, heroic past that often ignores the multi-ethnic and pluralistic realities of the island’s history.

(To be concluded)

by Professor M. W. Amarasiri de Silva

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Midweek Review

The Loneliness of the Female Head

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The years have painfully trudged on,

But she’s yet to have answers to her posers;

What became of her bread-winning husband,

Who went missing amid the heinous bombings?

When is she being given a decent stipend,

To care for her daughter wasting-away in leprosy?

Who will help keep her hearth constantly burning,

Since work comes only in dribs and drabs?

And equally vitally, when will they stop staring,

As if she were the touch-me-not of the community?

By Lynn Ockersz

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