Opinion
Learning to get our economy back on track
By GARVIN KARUNARATNE Ph.D.
The editorial of The Island on Sri Lanka’s Independence Day says it all: “The challenge before us is to retrace our steps, figure out where we took wrong turns, and forge ahead in the right direction, as many other nations have already done. Easier said than done, but there seems to be no other way.”
The problem is that even to retrace our footsteps, there is no consensus among the learned. Addressing the 10 th annual conference of the Sri Lanka Forum of University economists, on 27 January, 2022, Professor Premachandra Atukorale has said that “it is impossible to heavily rely on import and exchange controls, without compromising on a massive economic collapse and social upheaval.”
Perhaps, it may be useful to recall how Sri Lanka managed its economy, in deciding how we can retrace our footsteps to the days when we did not have food queues and social upheaval, all the while handling development very successfully.
In February, 1968, I was posted as the Additional Government Agent of Kegalle District. I worked there for two years. I knew of no queues for any essential food during that period. In fact, I was in charge of providing essential food – as the Deputy Food Controller for the District. At that time every area was covered with a cooperative society, and, in each division, there were Cooperative Unions that were equipped with stores and lorries; and on a clockwork basis all essential food was distributed through the cooperatives. This included a measure of rice per person per week, entirely free, under the Rice Ration Scheme, which was done away by President Jayawardena, in 1978.
Then there was a major Department at work – the Food Commissioner’s Department, managed at the helm by a senior civil servant, a department that had very large stores full of rice and flour, and also attended to imports, when necessary. At the district level, there was an Assistant Food Controller who worked directly under me, and it was our duty to see that food was always available, without any interruption. Importing essentials, like dhal, chillies, etc., was handled by the CWE, because depending on the private sector has proved unreliable – the private sector has profit as its aim, service to the people comes next.
Kegalle District included the electorates of Prime Minister Dudley Senanayake, Minister NH Karunaratne, Deputy Ministers Imbulana, Vimala Kannangara, Beligammana and Dr NM Perera of the Opposition. There was never a delay in providing essential food – and that included rice, lentils, chillies and other curry stuff. I had the unenviable task of meeting the Prime Minister every Saturday and Sunday morning, at around nine, at the Warakapola Rest House, and to accompany him to a host of meetings in his electorate, ending in the late evenings, and there was never a person that had a complaint. The Divisional Secretaries had to work hard. There were a few bad eggs that I had to get rid of. Had there been any interruption in food supplies, the ministers would have complained to the Prime Minister or Dr NM would have raised the matter in Parliament.
This was also the situation in Matara, where I was the Government Agent from, 1971 to 1973. There were no ministers in any electorates, and only one Deputy Minister B. Y. Tudawe. There were no shortages, except during the JVP insurrection of April 1971.
There was no foreign exchange problem, because there were effective controls over the little foreign exchange that came in through exports and other sources. There were no currency dealers who handled foreign exchange like today, and the intake of foreign currency was a guarded property used first for importing essentials, and small allocations were made to import useful items such as automobiles and refrigerators. This was the situation even when we had ample funds – when we financed the Gal Oya Development Project – a massive project building a tank three times the size of Parakrama Samudra, Polonnaruwa, bringing 60,000 hectares under cultivation and creating many industries, all done with foreign funds we had.
In 1970, I worked as the Deputy Director of Small Industries, and one of my tasks was to ensure that every small industrialist had an allocation of foreign exchange, to import any particular item they required for their manufactures. I can state that every application was inquired into by my inspectors of industry – I had some 20 of them and assessed by me, every genuine small industry received an allocation. Then no foreign funds were allowed for foreign study, but an exception was made to provide foreign funds to Sunethra and Chandrika Bandaranaike, and I had the occasion to ask the Prime Minister why he had done so, and he replied, “That is the only request I had from my predecessor and I felt like obliging.”
Foreign exchange was then effectively controlled. When I left the Administrative Service and moved abroad in April 1973, I did not get a single penny. My wife and three children were given only three pounds and five shillings.
It is sad that university dons, the most learned in our country, have failed to grasp how the country was run those days. Professor Atukorale has said, “It is impossible to rely heavily on import and exchange controls without compromising on a massive economic collapse and social upheaval.” It was by effectively controlling import and foreign exchange that all Third World countries managed their economies, without any economic collapse. The economic might of India itself is indicative of an economy that did not follow the IMF, and used funds borrowed from the IMF to bring about development by controlling the economy.
Sri Lanka managed its foreign exchange effectively, till President Jayewardene was fooled by the IMF to follow the Structural Adjustment Programme, which advised him to allow the rich to spend foreign exchange, as much as they wanted, for endless foreign travel to educate their children abroad, import all luxury items; and the IMF provide loans for this purpose and mind you to entice the leaders, even provided grace periods when the service and interest charges were not to be paid. The then leaders enjoyed and the rich played with the funds, leaving the future leaders to bear the brunt of repayment. That is the process that led us to the present abyss.
Then there were two budgets: a local rupee budget for handling all work in the country, including major development tasks, funded with printed money, and a foreign exchange budget to handle the foreign exchange that was collected. Recently the Central Bank Governor Cabraal had decided that all foreigners staying at hotels should be charged in foreign currency. This is a decision that should have been taken long ago. Other countries, like India and Thailand, took similar action over decades ago. We, unfortunately, do not collect even 50 percent of the foreign exchange that comes in today, and it is time that we put a dragnet like in the period before 1977.
Of the period 1948 to 1977, an exception is the period 1974 to 1977, when there were shortages due to the Government de-emphasising agricultural development in order to have their own Divisional Development Councils Programme, and embarking on land reform which stifled development and caused foreign sanctions. Even Prime Minister Sirimavo Bandaranaike managed to make all demanded payments and managed without falling into foreign debt. 1976 and 1977 happen to be the last years when our country was run without a deficit. Since then annually our foreign debt has increased and is at $ 56 billion today.
Thus, the manner in which we handled the economy in the pre-1977 period is a tried and tested blueprint that worked successfully for nearly two decades, and this is the only way we could get out of the present mire.
Dr. Karunaratne is the author of Author of How the IMF Ruined Sri Lanka and Alternative Programmes of Success: Godage, 2006 and How the IMF Sabotaged Third World Development: Kindle/Godage, 2017.
Opinion
Boots on the ground,minds in the dark
Confronting Sri Lanka’s Expanding Drug Threat
Senior security and intelligence professional with extensive experience in counter-terrorism, strategic risk assessment and law enforcement.
A Rising Tide Beneath the Surface
Sri Lanka’s recent success in intercepting large consignments of narcotics at sea is both reassuring and alarming. Reassuring, because it reflects the growing operational capability of the Sri Lanka Navy and the Police Narcotics Bureau. Alarming, because such volumes do not move without a market.
Are we merely intercepting supply, or are we ignoring a rapidly expanding demand within our own society?
· “If seizures are rising, it is not only a sign of enforcement success, it is also a signal of expanding demand.
“Boots on the Ground”: A New Meaning
In today’s Sri Lankan context, “boots on the ground” must be redefined. It is no longer limited to patrols at sea or coastal surveillance. It is about real presence intelligence-led, community-connected, and action-oriented.
Recent interdictions demonstrate a mature intelligence-to-action cycle. For this, the Sri Lanka Navy and Police deserve commendation.
Yet, behind every success lies a silent force
The Silent Shield: Intelligence Networks
Informants, analysts, and field operatives form the backbone of every successful operation.
* They operate under risk
* Their exposure can collapse entire networks
* Their contribution must be recognised discreetly, not publicly
“An exposed informant today is a lost network tomorrow.”
A Market-Driven Menace
Drug trafficking is not accidental, it is profit-driven.
The scale of maritime smuggling suggests that Sri Lanka is no longer just a transit hub. It is increasingly becoming a destination market.
This transforms narcotics from a policing issue into a national social crisis.
Inside the Network: A Structured Ecosystem
The drug trade operates through layered chains:
* International syndicates
* Maritime couriers
* Local facilitators
* Urban distributors
* Street-level peddlers
Each layer is insulated. Each link is replaceable.
“Break one link, and the chain adapts. Break the system, and the threat collapses.”
Demand Is Engineered
A critical reality:
Drug networks do not wait for demand; they create it.
* Free or low-cost initial access
* Targeting youth and vulnerable groups
* Expansion through peer networks
* Stealth distribution networks
Addiction is often designed, not accidental.
Awareness: Prevention or Promotion?
Sri Lanka’s awareness programmes show mixed results.
While well-intentioned:
* Overexposure can trigger curiosity
* Fear-based messaging is ineffective
* Generic campaigns lack relevance
“Poorly designed awareness can introduce what it seeks to prevent.”
The Missing Link: Awareness + Recovery
Awareness alone is insufficient.
A modern approach must include:
* Simple, relatable communication
* Focus on life consequences
* Clear access to rehabilitation
Shift the message:
From: “Say no to drugs”
To: “If trapped, there is a way out”
When Success Creates Strain: The Justice System Under Pressure
An often-overlooked consequence of increased drug detections is the pressure it places on the justice and prison systems.
A large number of drug-related offences are non-bailable, leading to a steady rise in remand populations. This has resulted in:
* Severe prison overcrowding
* Heightened tension among inmates
* Increased confrontation between prisoners and prison authorities
Overcrowded prisons are not only a humanitarian concern they are an escalating security risk.
The Forensic Bottleneck: Delays in Government Analyst Reports
At the centre of this strain lies a critical dependency the Government Analyst Department.
Every detection requires scientific confirmation. However, the system is under significant pressure:
* High volume of samples
* Shortage of trained personnel
* Limited availability of chemicals and laboratory materials
·
* Multiple deadlines imposed by courts
These constraints have led to delays in submitting reports, which in turn:
* Extend remand periods
* Increase court backlogs
* Fuel frustration among inmates
“Justice delayed in narcotics cases becomes both a legal failure and a security threat.”
A Sensitive Concern: Accuracy of Detections
Another emerging concern is that a number of samples sent for analysis reportedly do not contain narcotics.
If substantiated, this raises serious issues:
* Are arrests being made on insufficient preliminary evidence?
* Are field testing methods reliable?
* Is there undue pressure to increase detection statistics?
The implications are profound:
* Wrongful detention
* Loss of public trust
* Weakening of legitimate enforcement efforts
Each inaccurate detection undermines the credibility of the entire system.
A Dangerous Imbalance
Sri Lanka now faces a structural imbalance:
* Strong enforcement
* Increasing arrests·
* Limited forensic capacity·
* Overburdened courts·
* Overcrowded prisons
This imbalance creates a chain reaction of institutional stress.
The Strategic Gap: Where Is the Research?
Despite strong enforcement, Sri Lanka lacks a research-driven response.
The Police Narcotics Bureau and National Dangerous Drugs Control Board must be strengthened with:
* Dedicated research units
* Data on usage trends·
* Behavioural analysis·
* Evaluation of awareness programmes
Supported by international collaboration.
“Without research, strategy becomes a reaction.”
From Sea to Society
“Boots on the ground” must extend beyond enforcement:
* Religious leaders·
* Teachers and schools·
* Parents·
* Community networks·
The real battle is not only at sea but within society.
A National Priority
The consequences are severe:
* Loss of youth potential·
* Rising crime·
* Family breakdown·
* Long-term public health burden
This is a national security issue with generational consequences.
STRATEGIC CONCLUSION
OFFENSIVE FRAMEWORK (SUPPLY DISRUPTION)
INTERNATIONAL PARTNERS
NATIONAL INTELLIGENCE
SRI LANKA NAVY / COAST GUARD
POLICE NARCOTICS BUREAU
STF / POLICE OPERATIONS
ARRESTS & SEIZURES
JUDICIAL SYSTEM
Focus: Intelligence-led interdiction, maritime dominance, legal enforcement
PREVENTIVE FRAMEWORK (DEMAND REDUCTION)
GOVERNMENT POLICY & RESEARCH
NDDCB / PNB COORDINATION
EDUCATIONAL INSTITUTIONS
TEACHERS / COUNSELLORS
RELIGIOUS & COMMUNITY LEADERS
PARENTS
YOUTH
Focus: Awareness, early detection, social resilience, rehabilitation
INTEGRATED NATIONAL STRATEGY
(OFFENSIVE) (PREVENTIVE)
Sri Lanka has proven its ability to intercept drugs.
But interception alone is not victory.
“If enforcement is strong but society is weak, the problem will return.
If both are strong, the threat can be contained.”
Conclusion
Sri Lanka is no longer confronting a distant or isolated narcotics threat it is facing a deeply embedded, evolving ecosystem that stretches from international waters to the minds of its youth.
The recent surge in maritime interceptions is not merely a success story. It is also a warning.
Every shipment seized at sea is a reflection of a demand that exists on land.
We must therefore move beyond the comfort of operational victories and confront the harder truth: this battle cannot be won by enforcement alone.
“Boots on the ground” must now mean more than patrol vessels and tactical units. It must represent a nationwide presence of awareness, vigilance, intelligence, and responsibility from coastal radar stations to classrooms, from intelligence cells to family homes.
At the same time, we must protect what protects us from the intelligence networks that operate in silence. Their strength lies in their invisibility. Their recognition must remain measured, discreet, and strategic.
The drug economy is adaptive. It creates demand where none exists, exploits vulnerability where it finds it, and thrives where systems are disconnected. If left unchecked, it will not only fuel crime it will reshape society, erode institutions, and compromise future generations.
What Sri Lanka needs now is not a fragmented response, but a coordinated national doctrine:
* Strong at sea
* Smart in policy
* Deep in research
* Present in societyBecause the real battleground is no longer just geography it is generational.
What is required now is not just stronger enforcement but smarter systems, balanced capacity, and a unified national response. Because this is no longer just about drugs. It is about the future of the nation.
Mahil Dole is a retired senior police officer and former Head of the Counter-Terrorism Division of Sri Lanka’s State Intelligence Service. With over four decades in policing and intelligence, he has interviewed more than 100 suicide cadres linked to extremist movements. He is a graduate of the Asia-Pacific Center for Security Studies in Hawaii and has received specialist training on terrorist financing in Australia and India.
By Mahil Dole
Opinion
Sri Lanka has policy, but where is the data?
In recent months, President Anura Kumara Dissanayake has repeatedly expressed a concern that the government does not have the accurate data it needs to make good decisions.
At meetings with senior officials from ministries ranging from health and agriculture to education and infrastructure, the President has reportedly lamented that the government often lacks reliable information on what its projects are achieving, how funds are being spent, and whether public investments are producing results. The meeting on December 6th at the Matale District Secretariat was a case in point. The President emphasised the need for most accurate data to award compensation for damaged agricultural lands before the month’s end. He recalled that the Department of Agriculture’s data showed an excess of rice in the country, but the nation has faced a rice shortage.
For a country attempting economic recovery after the most severe crisis in its post-independence history, absence of accurate data is a dangerous position to be in.
Without data, decisions become guesswork. Without evidence, policy becomes speculation.
Ironically, Sri Lanka already possesses the policy architecture required to solve this problem. The National Evaluation Policy (2018) and the National Evaluation Policy Implementation Framework (2023) were created precisely to ensure that public spending is guided by evidence, results, and accountability. Yet today, despite these policies and the presence of a dedicated government agency tasked with monitoring development projects, the country still lacks the integrated digital monitoring and evaluation system needed to turn policy into practice. Until that gap is closed, Sri Lanka will continue to struggle with inefficient public investment, delayed projects, and policy decisions made without reliable evidence.
The scale of the problem
The Department of Project Management and Monitoring (DPMM), operating under the Ministry of Finance, is the central institution responsible for overseeing development projects implemented by government ministries. According to its 2024 Annual Performance Report, the department monitored 226 large-scale development projects across various ministries during the year. These projects collectively had an allocated budget of LKR 705 billion, but the actual expenditure amounted to only LKR 401.96 billion, representing about 56.9% utilization of the allocated funds.
In other words, nearly half of the planned development spending did not materialize.
While fiscal constraints and external factors contributed to this outcome, the data nevertheless highlights a deeper systemic issue: weak monitoring and decision-making structures that fail to identify and resolve implementation problems early.
The report also indicates that many projects face delays due to procurement issues, coordination failures, cost escalations, and operational bottlenecks. What makes the situation more troubling is that information about these problems is often fragmented and slow to reach decision-makers.
The government does monitor projects through reports and field visits, but the information flow remains largely manual and scattered across ministries. In the digital age, such a system is simply inadequate.
A policy that already foresaw the solution
Sri Lanka’s National Evaluation Policy (NEP), approved by the Cabinet in 2018, recognised this problem years ago. The policy aims to ensure that public investment decisions are guided by reliable evidence, efficiency, and measurable development results.
The NEP outlines several key goals:
· strengthening evidence-based decision making,
· improving efficiency in resource utilisation,
· ensuring transparency and accountability in public expenditure,
· promoting learning from successes and failures of past projects, and
· creating a national culture of evaluation.
To operationalise the policy, the government introduced the National Evaluation Policy Implementation Framework (NEPIF) in 2023. This framework explicitly calls for the creation of integrated information systems capable of gathering and analyzing data across the project cycle—from planning and budgeting to implementation and evaluation. In fact, NEPIF specifically proposes the establishment of a web-based integrated public investment management and evaluation information system to store project data and evaluation reports.
Such a system would allow decision-makers to access reliable information quickly, improving accountability and policy planning. Unfortunately, despite the clarity of this vision, the digital infrastructure necessary to implement it at a national scale is still largely absent.
A revealing moment at a Colombo seminar
The urgency of this gap became strikingly clear at a recent seminar in Colombo organized by a national NGO. The organization demonstrated its cloud-based monitoring and evaluation system which was comprehensive and updated by multiple layers of personnel, to a group of university students. On a large screen, a dashboard displayed real-time information on the organization’s twenty development projects across the country. Each project appeared as a branch of a digital tree, connected to activities, budgets, locations, and beneficiaries. With a few clicks, staff could generate reports showing the status of any project at national, district, or local levels, both of data and graphics. Updated data was available up to the previous day.
What would normally take weeks of manual compilation could be done in less than a minute.
Among the audience was a university academic who observed something obvious but powerful. ‘If a small NGO can run a system like this,’ he asked, ‘why can’t the Government?’ Another participant responded and told that the non-introduction of a digitalized Monitoring and Evaluation mechanism was due to some bureaucrats’ resistance. ‘I heard the Evaluation Reports of several projects of the government was not published because the respective Project Managers had opposed, fearing their failure would be exposed’, another academic commented. Those comments deserve serious reflection on the situation, I believe.
The digital revolution in monitoring and evaluation
Around the world, governments are increasingly adopting digital monitoring and evaluation platforms to track public investments in real time. These systems combine several elements:
· project databases
· geospatial mapping
· financial monitoring tools
· citizen feedback mechanisms
· performance dashboards for decision-makers.
Countries such as Estonia, South Korea, Rwanda, and Chile have integrated such systems into national governance structures. In these systems, ministers and senior officials can see instantly:
· which projects are progressing
· which projects are delayed
· how funds are being spent
· whether outputs and outcomes are being achieved.
More importantly, such platforms enable early intervention. Problems can be identified before they become crises. For Sri Lanka, which must now manage scarce fiscal resources with extreme care, such tools are no longer optional luxuries.
They are necessities.
The cost of not knowing
The absence of integrated data systems carries real economic consequences. Public investment decisions affect everything from roads and irrigation schemes to hospitals and schools. When these investments fail or underperform, the cost is not merely financial. It affects the daily lives of citizens.
A hospital without doctors. An irrigation scheme without water. A school building without teachers.
These are not simply implementation failures; they are information failures.
Without reliable monitoring systems, governments often learn about problems too late. By the time corrective action is taken, budgets have been spent and opportunities lost.
The NEPIF recognises precisely this challenge. It emphasises that evaluation should be an integral part of the entire development cycle—from project design to implementation and feedback for future planning.
But such evaluation cannot occur without reliable data systems.
Building an evaluation culture
Another important goal of the National Evaluation Policy is to create a culture of evaluation within the public sector. This requires a shift in mindset. Evaluation should not be seen as a fault-finding exercise. Instead, it should function as a learning mechanism that helps improve policy design and implementation.
The NEPIF stresses that evaluation findings should inform planning, budgeting, and future project selection. However, without systematic information systems, evaluation results often remain scattered across reports that few decision-makers read. Digital platforms can transform this situation by making information visible, accessible, and actionable. They turn data into knowledge. And knowledge into better decisions.
What a national digital system could look like
Sri Lanka does not need to start from scratch. The institutional building blocks already exist:
· the Department of Project Management and Monitoring (DPPM)
· the National Evaluation Policy
· the National Evaluation Policy Implementation Framework
· various sector-specific monitoring systems across ministries.
What is missing is integration.
A national digital monitoring and evaluation platform could include:
1. A centralised project database:
All government development projects recorded with budgets, timelines, outputs, and implementing agencies.
2. Real-time progress dashboards:
Accessible to the President, Cabinet, ministry secretaries, and provincial administrators.
3. Geographic mapping:
Showing where projects are located and how they benefit communities.
4. Automated reporting:
Reducing paperwork and enabling faster decision-making.
5. Citizen transparency portals:
Allowing the public to see how public funds are used.
Such a system would dramatically strengthen transparency, accountability, and efficiency.
The opportunity before Sri Lanka
Sri Lanka today has a rare opportunity. Economic crises often force governments to rethink outdated systems. The country cannot afford inefficient public investments any longer. Every rupee spent must produce measurable results. The National Evaluation Policy and its implementation framework already provide the intellectual foundation for this transformation. What remains is political commitment. A bold decision to build the digital infrastructure of evidence-based governance.
A call to action
The President’s concern about the lack of reliable data in government is both accurate and urgent. But the solution does not require new policies. The policies already exist. What Sri Lanka needs now is implementation. A national digital monitoring and evaluation system would give policymakers something they currently lack: a clear, real-time picture of the country’s development efforts. Such a system would empower leaders to identify problems early, allocate resources wisely, save billions of rupees from wasting and ensure that development projects truly benefit citizens.
In short, it would give Sri Lanka what every modern state needs: a digital nervous system connecting policy, data, and decision-making. The question is no longer whether the country needs such a system.
The question is simply this: how soon Sri Lanka is willing to build it.
by Tilak W. Karunaratne
Opinion
Tribute to a distinguished BOI leader
Mr. Tuli Cooray, former Deputy Director General of the Board of Investment of Sri Lanka (BOI) and former Secretary General of the Joint Apparel Association Forum (JAAF), passed away three months ago, leaving a distinguished legacy of public service and dedication to national economic development.
An alumnus of the University of Colombo, Mr. Cooray graduated with a Special Degree in Economics. He began his career as a Planning Officer at the Ministry of Plan Implementation and later served as an Assistant Director in the Ministry of Finance (Planning Division).
He subsequently joined the Greater Colombo Economic Commission (GCEC), where he rose from Manager to Senior Manager and later Director. During this period, he also served at the Treasury as an Assistant Director. With the transformation of the GCEC into the BOI, he was appointed Executive Director of the Investment Department and later elevated to the position of Deputy Director General.
In recognition of his vast experience and expertise, he was appointed Director General of the Budget Implementation and Policy Coordination Division at the Ministry of Finance and Planning. Following his retirement from government service, he continued to contribute to the national economy through his work with JAAF.
Mr. Cooray was widely respected as a seasoned professional with exceptional expertise in attracting foreign direct investment (FDI) and facilitating investor relations. His commitment, leadership, and humane qualities earned him the admiration and affection of colleagues across institutions.
He was also one of the pioneers of the BOI Past Officers’ Association, and his passing is deeply felt by its members. His demise has created a void that is difficult to fill, particularly within the BOI, where his contributions remain invaluable.
Mr. Cooray will be remembered not only for his professional excellence but also for his integrity, humility, and the lasting impact he made on those who had the privilege of working with him.
The BOI Past Officers’ Association
jagathcds@gmail.com
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