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Kinder government reaction to economic distress would evoke better public response

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by Jehan Perera

With less than a month before presidential elections are called, President Ranil Wickremesinghe has highlighted the success of his presidency as rescuing Sri Lanka from its international bankruptcy status that prevents it from doing business with the rest of the world.   The signing of the agreement on international debt restructuring for USD 5.8 billion with the Official Creditor Committee consisting of several foreign governments that have given bilateral loans to Sri Lanka was celebrated in numerous ways. The president himself made a speech to the nation and firework exhibitions took place in various towns to mark the occasion.  The president made it clear that he was the architect of Sri Lanka’s economic recovery. This puts upon him a greater responsibility to engage with the people, listen to them and explain to them what it all means.

 President Wickremesinghe said, “I believed in my ability to save our country and its people from the economic abyss. I had a comprehensive work plan and a deep understanding of the strategies that other nations had employed to emerge from similar crises. Furthermore, I had faith that with my planned policies and dedication, the economy could be revitalised.” The signing of the debt restructuring agreement received immediate plaudits from the countries that matter most to Sri Lanka at this time.  US Ambassador Julie Chung welcomed the news stating “This is a positive step forward in Sri Lanka’s economic recovery and resilience, helping build more confidence in Sri Lanka’s fiscal environment. The US encourages Sri Lanka to continue the reform process, adopting transparent and sustainable changes that foster long-term prosperity and growth.”  Similarly, Japan, India and the IMF also expressed their satisfaction with the progress that Sri Lanka was making.

However, there was also a second agreement that Sri Lanka signed with China’s Exim Bank for USD 4.2 billion which has caused concern among the same parties that congratulated the President and the Sri Lankan negotiating team on reaching agreement with the Official Creditor Committee (OCC) which did not include China.  They have demanded “comparability of treatment” with other creditors, including China. In particular, they have requested details of Sri Lanka’s other debt deals, and “all information necessary for the OCC to ensure comparability of treatment”.  The details of the negotiations in both cases are not known, but will most probably be revealed as the parliamentary debate takes place this week.  This tension reflects the serious problem of lack of transparency in the government’s financial transactions that runs across the board.

No Haircut

President Wickremesinghe was cryptic when he said, “With these agreements, we will be able to defer all bilateral loan instalment payments until 2028. Furthermore, we will have the opportunity to repay all the loans on concessional terms, with an extended period until 2043.” He did not say what these concessional terms were nor did he mention what the “haircut” would be.  While the amount that would be subject to concessional repayment is USD 5.8 billion the total foreign debt was in the region of USD 40 billion at the time of the economic collapse in 2022. Last year when the government was negotiating with the creditors there was optimism that a “haircut” in the range of 30 percent would be possible.  Specific to debt restructuring, a haircut is the reduction of outstanding interest payments or a portion of a bond payable that will not be repaid.

According to research studies done by international researchers in the field, creditors offering debtors concessional terms in order to facilitate the repayment of loans taken is a common occurrence.  In this context, the international support given to the Sri Lankan government seems to be much less than was expected, or even what is fair.  A research study published last month in Germany states “We study sovereign external debt crises over the past 200 years, with a focus on creditor losses, or “haircuts”. Our sample covers 327 sovereign debt restructurings with external private creditors over 205 default spells since 1815. Creditor losses vary widely (from none to 100%), but the statistical distribution has remained remarkably stable over two centuries, with an average haircut of around 45 percent.” Graf von Luckner C.M. Meyer J. Reinhart C.M. Trebesch C., Publication Date, 06/2024, https://www.ifw-kiel.de/publications/sovereign-haircuts-200-years-of-creditor-losses-33019/  The expressions of international support would be more meaningful if they contribute to getting Sri Lanka much better terms for its debt restructuring.

Due to the lack of information about the benefits to Sri Lanka of a reduction in the debt burden that would make an immediate impact on their lives, the president’s victory speech did not gain much traction among the general public.  The public displays of celebratory fireworks in many parts of the country did not obtain any significant public participation. The fact is that the economic life of the people will not change either immediately or even in the short term, except marginally through changes in the controlled price of some commodities such as occurred with petrol. Those whose salaries have remained stagnant over the past two years have to cope with basic costs of living that have increased two to three-fold.   Unlike Kenya where mobs went on to the streets to protest against the increases in the cost of living and high taxes, the vast majority of Sri Lankan people have borne their difficulties in silence and in the privacy of their homes.

Stock Answer

Organised groups such as student unions and trade unions, however, are bringing the grievances of people out into the open.  The teachers protest which was ended by tear gas and water cannons fired upon them by the police was an example. Dr Ahilan Kadirgamar, who teaches economics at the University of Jaffna has written, in his Kuppi Talk column in The Island of 25 June)” “The IMF-led austerity programme, despite many promises to preserve social spending, inevitably leads to cuts in the real value of social spending, as reflected in the recently released Finance Ministry Annual Report for 2023. Between 2021 and 2023 the cost of living in Sri Lanka increased by 100 percent, or if we look at it in dollar terms, the value of the Sri Lankan rupee declined by fifty percent from Rs 200 to Rs 300 per dollar. However, during this period the nominal spending increase for general education was only 22.5 percent and for higher education was a mere 13.1 percent” as against the 100 percent inflation.

In simple terms, there is no money left in this depleted education budget for salary increases to be made, or for the government to even keep to the commitments it made to teachers in the past.  Dr Kadigamar further notes that “For decades, Sri Lanka has been reducing its spending on education. In fact, expenditure on education has spiraled downwards over the decades from close to 5 percent of GDP in 1970 to 1.2 percent in 2022, one of the lowest today in the world.”  The government’s current approach to education, as spelled out by the president, is to hand it over to the private sector.  However, the withdrawal of the state from the provision of education services will be injurious to those from less well-off families in the context of the commercialisation of education as a profit making business and not a social service.  In a general context of grave economic hardship there is a need for more government investment in education for the economically disadvantaged and not less.

Teachers came out onto the streets in their thousands to protest last week against the government’s failure to address their concerns. There is no question that teachers are today a grossly underpaid sector though tasked with educating the younger generations to meet the challenges of the future. They were dispersed by the security forces with tear gas and water cannons. This harsh treatment of protestors has become the stock answer of the government to those who wish to make use of their democratic rights to question the government and to gather together to do so. It would be better if the president, as the key person behind the economic transformation of the country, were to talk to the protestors or at least to their leaders, hear them out and let them vent their grievances. When signing agreements that will bind the country for the future it is important for the government to take the people, and the opposition political parties, into its confidence and seek to obtain their support as well. This is the only way that solutions will last the test of time and be sustainable.



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Opinion

A reflection on discipline and perspective

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Royal College

Crime and Punishment are perennial, vexed, debatable matters that can aptly be applied to the current controversy on the appropriateness of corporal punishment by schoolteachers.

Much publicity has recently been generated by an alleged corporal punishment by a teacher in Royal College. In the midst of all this, we must also consider the ripple effect such public scrutiny may have on other teachers. Many might now hesitate to correct or discipline a student out of fear of being misunderstood or publicly shamed.

A possible likely outcome is that a growing number of teachers may simply choose to limit themselves to merely textbook teaching – doing only what is required of them and nothing more. But if most teachers take a step back, fearing a backlash, what happens to discipline? What happens to the values, the life lessons and the personal growth that come from being held accountable? We risk creating a system where young students grow up without boundaries, without guidance, and ultimately, without the character that true education is meant to build.

The Royal matter

Much has been said over the recent incident involving a teacher at Royal College, which has now gone viral on social media. This is now in the hands of the Child Protection Authority, and naturally, emotions are running high.

Let me start by saying categorically that I do not condone violence or abuse in any form. If a student has been harmed—physically or emotionally—there is a legal process in place, and it must take its course, fairly and justly, without bias.

However, I write not to justify wrong, but to offer some perspective—especially to those who may not know the culture and values that shaped generations of Royalists before them.

I’m not an academic, nor a brilliant thinker. What I am is someone who learned life’s greatest lessons on the playing fields of Royal. Discipline, resilience, respect—these were not just words; they were lived experiences, often taught the hard way.

During my time at Royal Primary (from 1945 to 1950), corporal punishment was the norm. We were mischievous, as young boys often are, and the cane was a regular visitor. I, like many others, was caned more times than I can count. We didn’t run home to complain. In fact, the one time I told my mother, I received two additional slaps from her! That was the thinking back then—it taught us to take responsibility for our actions.

Let me be clear: I’m not saying things must remain the same. Times have changed and so have the boundaries of what is acceptable. What I’m questioning is the way we are responding as if one or two incidents can define the entire teaching profession at Royal.

There are nearly 500 teachers at Royal College now. Most are committed educators who give their best every single day. Why must we paint them all with the same brush because of the actions of a few?

We seem to be caught between two extremes: we complain about student indiscipline—hooting, bullying, misbehaving—but then we condemn every teacher who takes a strong stand on discipline. We can’t have it both ways.

Yes, Royal too has its share of “rotten apples.” So does every great institution in the world. But let us not forget the thousands of students who have been shaped by the silent, committed service of teachers who never sought recognition or fame.

I’ve personally experienced forms of punishment that, by today’s standards, would be considered extreme. Yet, those moments, though harsh, taught me resilience. They instilled in me the values that made Royal College the respected institution it is today.

I urge you all not to excuse wrongdoing—but to look at this situation in perspective. Let justice take its course but let us not allow a single incident to overshadow the legacy of an entire institution or profession.

Let’s respond with fairness, wisdom, and above all, respect—for our students, our teachers, and the Royal values we stand for.

Lorenz Pereira by email

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Opinion

Remembering Naval Officer we lost on Easter Sunday Attack 2019

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Lieutenant (S) Sugath Nadeeshan Silva

WV, RWP& Bar, RSP, VSV, USP, NI (M) (Pakistan), ndc, psn, Bsc (Hons) (War Studies) (Karachi) MPhil (Madras), Former Navy Commander and Former Chief of Defense Staff, Former Chairman, Trincomalee Petroleum Terminals Ltd, Former Managing Director Ceylon Petroleum Corporation, Former High Commissioner to Pakistan

Today, is 20 April 2025 the Easter Sunday. Six years ago on Easter Sunday 2019. SLCG Ship Suraksha, a 100 meter long Offshore Patrol Vessel (OPV), was getting ready for a 14-days Patrol. Her tanks were topped up with fuel, all victuals (required for 10 officers and 100 men crew for 14 days) loaded. Both cold and cool rooms were full with fresh fish/meat and vegetables. Ship was ready to sail at 12 noon on 21st April 2019.

A young lieutenant on board, who took over his new appointment as assistant logistic Officer a few days back, was working hard. It was a new appointment, new ship, new friends and new crew, for him. He was keen to impress them with his work. A call came from home around 7AM from his mother to say they are on their way to the village Church in Kochchikade, Negombo.

He was the second son of a devoted Catholic family.

He thought of one thing. I am going miss Easter Sunday Mass. He suddenly got an idea and quickly went up to the Commanding Officer’s cabin. He gently tapped on the door.”Yes” the Commanding Officer replied. “The door is open”. His Commanding Officer was a decorated former Naval Special Forces Captain. He had served with the Sri Lanka Coast Guard on a two year tenure as Commanding Officer of OPVs. The young Lieutenant requested the Commanding Officer’s permission to go to Church. Even though the Commanding Officer was a veteran decorated Naval Officer with a career of bravery and valour, he was very understanding.

After all, his young subordinate was requesting to go to church on Easter Sunday, an important holy day for Christians. He knew his junior was a Catholic. He himself also was a devoted Catholic and had attended midnight Easter Mass. He gave permission to the young officer to go to Church and also said a few words which he regrets today. “Sugath, the closest Church to us is St Anthony’s Church Kochikade here. It was customary for many Naval personnel, whether they are Catholics or not, to light a candle in this church when they get their new seagoing appointment. We turn our ships towards church before leaving Colombo harbour to get the blessings of St Anthony. Because as you are very well aware, St Anthony is the Saint who looks after seafarers like us. So, please go Son. Take the ship’s vehicle. Come back by 11. We are sailing at 12.”

The young Lieutenant quickly changed into his best civilian clothes and went to church. He was thinking of lighting a candle, praying and returning to the ship in the same vehicle. The time was 0830. He heard the announcement that the Tamil mass starts at 0840. The Church was full of devotees. Families with their children dressed in best Sunday dresses. They were happy, chatting to each other and eagerly waiting for Mass to start. Our young Lieutenant spoke and understood Tamil very well. So, he changed his mind. His CO had told him to come back by 11. There was enough time for him to attend the Tamil Mass. He told the Navy driver to go back. He told the driver “I will attend Mass and come back to the ship. I can get a three-wheeler. It’s not that far from here to the Naval Base”.

The Tamil Mass started at 0840 sharp. The suicide bomber walked into the Church at 0845 and detonated himself.

With the deafening sound the Naval Base by the Church was activated. News started to spread after the blast inside the Church. The CO of the SLCG ship Suraksha knew his subordinate was in church. He rang on his mobile while rushing to the scene. The young lieutenant’s Mobile was ringing, but no answer. Ship’s crew look out for their officer whilst helping casualties. CO rang the mobile of his subordinate officer again. This time someone answered! A female voice! She introduced herself as a nurse in Accident Ward of General Hospital Colombo. She said in a faint voice, “Sir, he is dead!”

The CO sat on the road curb with tears in his eyes. He was a battle-hardened Naval Special Forces man. He had seen enough deaths and grief in his life, but this loss hit him hard. He kept saying “my son! Why did I allow you to go to Church.”

Lieutenant (S) Sugath Nadeeshan Silva was born in Kochikade, Negombo on 23rd November 1991, the second son in the family. He had an elder and a younger brother. He had his early education at Thoppuwa St Philip Neri Sinhala Mixed School, Kochchikade and Mari Stella College, Negombo. He proved to be a brilliant student, excelling in studies and sports.

He joined Sir John Kotelawala University as an Officer Cadet on 17th September 2012.

Sugath excelled in cricket. He earned his Bachelor’s degree in Logistics Management in 2016 from KDU and successfully completed the Sub Lieutenant Logistics course at Naval and Maritime Academy, Trincomalee. He joined SLCG ship Suraksha as his first sea appointment when his untimely demise occurred caused by a terrorist attack. He was promoted posthumously to Lieutenant Commander and buried with full military honours. May he Rest in Peace!

At the going down and in the morning, we will remember him. Please remember him in your prayers.

By Admiral Ravindra C Wijegunaratne

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Opinion

Remembering Lankan squash veteran Lakdasa Cooray

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Five years ago today, the Sri Lankan squash fraternity bid farewell to one of its most dedicated and influential figures — Lakdasa Cooray.

Hailing from Moratuwa, Cooray entered the national squash scene representing Sri Lanka Army Squash in the early 1980s, not long after the establishment of the Sri Lanka Squash Federation. Being a former Defence Services Champion and Masters Player and talented all-round sportsman, he possessed a natural aptitude for coaching, which soon became his lifelong passion. Remarkably, many of the top squash players in the country rose through the ranks under his expert guidance, often provided without any remuneration.

Over a career that spanned more than three decades, Cooray served as Head Coach for numerous national teams on international tours. His reputation extended beyond Sri Lanka, earning him recognition across the Asian squash community.

He also contributed significantly to the development of the sport at the grassroots level. As a member of the Executive Committee of the Sri Lanka Squash Federation, he worked tirelessly to promote squash in schools, clubs and outstation regions throughout the country.

Beyond coaching, Cooray was a respected referee, known for his fearless decision-making that often silenced even the most vocal critics, be they passionate spectators or competitive players.

His influence extended to inspiring players from the tri-services to take up coaching themselves, many of whom have proven their calibre at the highest levels of the sport.

In his later years, his active role in the squash community somewhat diminished, especially following the tragic passing of his only son, skilled squash player Kavinda Cooray. Despite his declining health, his legacy endured.

Today, the squash community in Sri Lanka remembers Lakdasa Cooray not just as a coach or official, but as a true servant of the game: a man who gave his all and asked for nothing in return. A legend, never to be forgotten.Rear Admiral Palitha Weerasinghe (Rtd)

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