Features
Liberal or edible economics – Global disorder worst in a century
by Kumar David
Mao Zedong mischievously quipped that “there is great disorder under the heavens and the situation is excellent”; the date is uncertain, may be the early 1950s. This essay is a survey of recent events and I have attempted to keep abreast of developments by, for example, following the world’s premier English language TV Networks; BBC, CNN, Al Jazeera, CGTN (China’s premier English channel), Euro-News (Private channel headquartered in Lyon, France), DW/Deutch-TV (German, state owned), RT (Russia), NHK (Japan), France-24 (state owned) and NHK News (Japan). Magazine articles, research papers and the US, Chinese, Russian and African governments and agencies Reuters, Bloomberg also reflect a range of views. Without swallowing everything from the aforementioned TV sources, publications and research uncritically I have filtered-in only what I believe are the primary issues at this time.
I have borrowed the term Edible Economics from South Korean economist Ha Joon Chang currently attached to the University of London’s School of Oriental and African Studies (SOAS). The stand-off between Capitalism/Neoliberalism and Edible Economics (rice, parippu and jobs for the masses) has become critical in countries like Sri Lanka. The dollar is in retreat and new alignments BRICS (+ Iran and Saudi?). China’s confidence (the Sino-American Thucydides Trap), its worldwide investments and New Silk Road, and its non-dollar currency alternatives are setting an economic and strategic scenario for years to come.
The virtue of everyday liberalism is that it cuts a path for regular changes of government and hence defuses confrontation; street battles give way to ballot-box battles. In my view any leader, whether of the left or right, who retains power for more than two terms is, de facto, a dictator. The worst are the military regimes; for example, the greed for power of leaders of the factions in Sudan’s army is tearing the country to shreds. Conversely, “Edible Economics” as a contract with liberalism and or social-democracy facilitates transition of governments but undermines the directive role of the state. The dichotomy has been debated for ever so long.
What is new is that the contradiction has become overlaid with an international dimension. The IMF, belt-tightening, debt sustainability, foreign trade and need for a national development plan on one side, but compounded by Sino-American strategic tension in East and South Asia, the Taiwan straits and the Indian Ocean on the other side. One must not underestimate either dimension.
Global banking is facing a rout. In the US Silicon Valley Bank, Signature Bank and First Bank among others and in Europe banking giants Deutsche Bank and Credit Suisse are up to their necks in trouble. But do not underestimate the albeit declining economic importance of the USA. America still accounts for 20 percent of global GDP, down from two-thirds after World War II and down one-third since year 2000.
US trade is 10% of world total, a little smaller than China; 60% of world monetary reserves are in dollars and 40% of its currency is in foreign hands (that is only 40% of dollars circulate at home). Ninety countries peg their currency to the dollar and 90% of currency exchange transactions are in dollars. Half of cross-border loans and deposits are in dollars: half of the world’s private debt is dollar-denominated; thirty five percent of world trade is invoiced in dollars (about the same in Euros).
There is still no safe haven from the US$. The world is dependent on the dollar which is grossly overextended. The global financial restructuring that American political and economic problems have set in motion threaten tectonic shifts in the world’s financial system. Do not to underestimate potential disruption as uncontrolled change proceeds. There is little chance that the American republic will soon return to orderly government. The US even prepared to halt payments of both interest and principal on the huge amounts of money it had borrowed in the past.
Accumulated US debt stands at about $33 trillion compared to its current GDP of about $30 trillion. Short-term interest rates on U.S. government debt spiked as risk of default grew. The US government budget deficit is 5.5% of GDP (revenue $8.4 trillion, expenditure $9.4 trillion). Gross external debt is about $25 trillion and gross public debt about $31 trillion or 125% of GDP). These are the most up to date 2023 estimates that I could find and, in any case, different sources (IMF, World Bank, Statistica, Wikipedia etc give different numbers). I provide them here as a compact source of reliable information for the layman reader.
Who might replace America people ask? The answer, despite a lot of ill-founded speculation about China doing so, is that no one can. America dominates global finance in ways no one has since Spain in the 16th century. But we can no longer afford not to think about America’s eventual displacement from its seven-decade-old financial domination. This could happen in many ways but, one way or another, it’s going to happen. The world was teetering on the edge of a financial cliff.
Let’s move on. Chile accounts for 26% of world’s current lithium production and the Atacama holds the world’s largest reserves of 9.3 million tonnes, eight million in Bolivia and Chile. Chile has nationalised its lithium reserves and there is nothing the West can do except mount a coup, if it dares, as in the Anglo-American overthrow of Mossadegh in 1953. Saudi Arabia, Iran, Iraq, Kuwait, Russia and the UAE together hold about 80% of world oil deposits. These countries are defying the dominance of the Petrodollar and trading in other currencies. Two weeks ago, the world looked on in horror as its cornerstone economy – the United States – prepared to halt payments on the huge national debt of $30 trillion it has borrowed to keep itself in business. Foreign ownership of U.S. Treasuries spiked at $7 trillion ($1 trillion each owned by Japan and China) and the perception of default has grown. The world is a far cry from 1953.
Whether the transition to a new world financial order that has been set in motion is catastrophic or manageable depends in large measure on how the US responds. Some elements of change can be managed, some will likely prove unmanageable. The US is unlikely to gracefully give up privilege it has long occupied at the apex of the international finance. If global bodies cannot be made “democratic” to share power between America and China, an enforced plurilateral order will supplant the status quo. This has already happened in negotiations over trade and investment issues since the Doha Round went into a coma. In recent decades liberalisation of trade between the world’s nations has proceeded through regional and bilateral talks rather than at the multilateral level. The same trend away from American-dominated multilateralism now promises to appear in the financial sector.
The ebbing of American global political leadership over the past two decades have also had the effect of distributing power to the world’s regions. Increasingly, in the Middle East, Europe, Latin America, Africa, and Asia; regional affairs are driven mainly by regional actors, not external powers. U.S. military prowess remains without peer at the global level, but most problems are not amenable to military solutions. All political decisions are local. Fewer and fewer countries still defer to American interests or strategies.
In addition to declining prestige abroad, America suffers from an accumulation of serious domestic problems and impairments. These include decaying physical infrastructure and school systems that no longer produce workers with the competence needed to compete with their peers in nations like Germany, Japan, Singapore, Finland, or even China without significant remedial training. The U.S. tax system badly misallocates investment, exacerbates the maldistribution of income, and impedes social mobility. The country now ranks well below other industrial democracies in terms of equality of opportunity. It has acquired a permanent proletariat in its cities. By most metrics, standards of public health in America are now among the lowest in the developed world.
Post-crisis financial regulations and banking practices are choking off the flow of capital to small and medium-sized enterprises. Participation in the labour force has dropped to historically low levels. Innovation, once a remarkably robust feature of the American economy, is beginning to slip. The United States continues to live beyond its means, pampering its military by pyramiding debt while disinvesting in its civilian economy and running persistent global trade and balance of payments deficits.
There are also great disparities when it comes to natural resources. The United States uses 12.5 percent of the world’s arable land and about 10 percent of its water to feed and clothe a mere 4.5 percent of its people before exporting a huge food surplus. China must sustain 19.5 percent of the world’s people on about 7.5 percent of its arable land, with less than seven percent of its water. It is the world’s largest importer of oil seeds and other food crops. America has never had to be concerned about starvation. It has a vast, if financially wasteful, system of public health to protect it against disease. China, where many pandemics originate, cannot help but worry constantly about the possibility of mass disorder from famine and pestilence.
The US has been the global leader in science and technology for over half a century. English is the lingua franca of international commerce, engineering, and the internet. It commands a network of alliances that enable it to aggregate the capabilities of most of the world’s great powers to its own when the need arises. It has comprehensive military capabilities that no other country aspires to match
In the meantime, China is doing very well despite having far fewer natural advantages than the United States. Assets denominated in renminbi yuan are likely to be more secure than most. But China has too many domestic and foreign policy distractions to wish to replace America as the manager and mainstay of the global political economy or to be able to do so. China will react defensively, as it must, to the problems posed by the collapse of the American-led world order but it will not take the lead in resolving them. Nor will other rising powers, none of which is up to the task of replacing America in the roles it has played in global governance over the past seventy years.
We are entering an era in which there is no alternative to global power-sharing. The world will have to get used to crafting collective solutions to problems rather than looking to American presidents to imagine, invent, announce, and impose them. This is true in foreign policy, where it is now universally recognized that there is no made-in-America solution to the problems of the Middle East, the territorial disputes in East Asia, and many other issues. It is also true for much-needed changes in the global monetary and financial systems.
Features
Rebuilding the country requires consultation
A positive feature of the government that is emerging is its responsiveness to public opinion. The manner in which it has been responding to the furore over the Grade 6 English Reader, in which a weblink to a gay dating site was inserted, has been constructive. Government leaders have taken pains to explain the mishap and reassure everyone concerned that it was not meant to be there and would be removed. They have been meeting religious prelates, educationists and community leaders. In a context where public trust in institutions has been badly eroded over many years, such responsiveness matters. It signals that the government sees itself as accountable to society, including to parents, teachers, and those concerned about the values transmitted through the school system.
This incident also appears to have strengthened unity within the government. The attempt by some opposition politicians and gender misogynists to pin responsibility for this lapse on Prime Minister Dr Harini Amarasuriya, who is also the Minister of Education, has prompted other senior members of the government to come to her defence. This is contrary to speculation that the powerful JVP component of the government is unhappy with the prime minister. More importantly, it demonstrates an understanding within the government that individual ministers should not be scapegoated for systemic shortcomings. Effective governance depends on collective responsibility and solidarity within the leadership, especially during moments of public controversy.
The continuing important role of the prime minister in the government is evident in her meetings with international dignitaries and also in addressing the general public. Last week she chaired the inaugural meeting of the Presidential Task Force to Rebuild Sri Lanka in the aftermath of Cyclone Ditwah. The composition of the task force once again reflects the responsiveness of the government to public opinion. Unlike previous mechanisms set up by governments, which were either all male or without ethnic minority representation, this one includes both, and also includes civil society representation. Decision-making bodies in which there is diversity are more likely to command public legitimacy.
Task Force
The Presidential Task Force to Rebuild Sri Lanka overlooks eight committees to manage different aspects of the recovery, each headed by a sector minister. These committees will focus on Needs Assessment, Restoration of Public Infrastructure, Housing, Local Economies and Livelihoods, Social Infrastructure, Finance and Funding, Data and Information Systems, and Public Communication. This structure appears comprehensive and well designed. However, experience from post-disaster reconstruction in countries such as Indonesia and Sri Lanka after the 2004 tsunami suggests that institutional design alone does not guarantee success. What matters equally is how far these committees engage with those on the ground and remain open to feedback that may complicate, slow down, or even challenge initial plans.
An option that the task force might wish to consider is to develop a linkage with civil society groups with expertise in the areas that the task force is expected to work. The CSO Collective for Emergency Relief has set up several committees that could be linked to the committees supervised by the task force. Such linkages would not weaken the government’s authority but strengthen it by grounding policy in lived realities. Recent findings emphasise the idea of “co-production”, where state and society jointly shape solutions in which sustainable outcomes often emerge when communities are treated not as passive beneficiaries but as partners in problem-solving.
Cyclone Ditwah destroyed more than physical infrastructure. It also destroyed communities. Some were swallowed by landslides and floods, while many others will need to be moved from their homes as they live in areas vulnerable to future disasters. The trauma of displacement is not merely material but social and psychological. Moving communities to new locations requires careful planning. It is not simply a matter of providing people with houses. They need to be relocated to locations and in a manner that permits communities to live together and to have livelihoods. This will require consultation with those who are displaced. Post-disaster evaluations have acknowledged that relocation schemes imposed without community consent often fail, leading to abandonment of new settlements or the emergence of new forms of marginalisation. Even today, abandoned tsunami housing is to be seen in various places that were affected by the 2004 tsunami.
Malaiyaha Tamils
The large-scale reconstruction that needs to take place in parts of the country most severely affected by Cyclone Ditwah also brings an opportunity to deal with the special problems of the Malaiyaha Tamil population. These are people of recent Indian origin who were unjustly treated at the time of Independence and denied rights of citizenship such as land ownership and the vote. This has been a festering problem and a blot on the conscience of the country. The need to resettle people living in those parts of the hill country which are vulnerable to landslides is an opportunity to do justice by the Malaiyaha Tamil community. Technocratic solutions such as high-rise apartments or English-style townhouses that have or are being contemplated may be cost-effective, but may also be culturally inappropriate and socially disruptive. The task is not simply to build houses but to rebuild communities.
The resettlement of people who have lost their homes and communities requires consultation with them. In the same manner, the education reform programme, of which the textbook controversy is only a small part, too needs to be discussed with concerned stakeholders including school teachers and university faculty. Opening up for discussion does not mean giving up one’s own position or values. Rather, it means recognising that better solutions emerge when different perspectives are heard and negotiated. Consultation takes time and can be frustrating, particularly in contexts of crisis where pressure for quick results is intense. However, solutions developed with stakeholder participation are more resilient and less costly in the long run.
Rebuilding after Cyclone Ditwah, addressing historical injustices faced by the Malaiyaha Tamil community, advancing education reform, changing the electoral system to hold provincial elections without further delay and other challenges facing the government, including national reconciliation, all require dialogue across differences and patience with disagreement. Opening up for discussion is not to give up on one’s own position or values, but to listen, to learn, and to arrive at solutions that have wider acceptance. Consultation needs to be treated as an investment in sustainability and legitimacy and not as an obstacle to rapid decisionmaking. Addressing the problems together, especially engagement with affected parties and those who work with them, offers the best chance of rebuilding not only physical infrastructure but also trust between the government and people in the year ahead.
by Jehan Perera
Features
PSTA: Terrorism without terror continues
When the government appointed a committee, led by Rienzie Arsekularatne, Senior President’s Counsel, to draft a new law to replace the Prevention of Terrorism Act (PTA), as promised by the ruling NPP, the writer, in an article published in this journal in July 2025, expressed optimism that, given Arsekularatne’s experience in criminal justice, he would be able to address issues from the perspectives of the State, criminal justice, human rights, suspects, accused, activists, and victims. The draft Protection of the State from Terrorism Act (PSTA), produced by the Committee, has been sharply criticised by individuals and organisations who expected a better outcome that aligns with modern criminal justice and human rights principles.
This article is limited to a discussion of the definition of terrorism. As the writer explained previously, the dangers of an overly broad definition go beyond conviction and increased punishment. Special laws on terrorism allow deviations from standard laws in areas such as preventive detention, arrest, administrative detention, restrictions on judicial decisions regarding bail, lengthy pre-trial detention, the use of confessions, superadded punishments, such as confiscation of property and cancellation of professional licences, banning organisations, and restrictions on publications, among others. The misuse of such laws is not uncommon. Drastic legislation, such as the PTA and emergency regulations, although intended to be used to curb intense violence and deal with emergencies, has been exploited to suppress political opposition.
International Standards
The writer’s basic premise is that, for an act to come within the definition of terrorism, it must either involve “terror” or a “state of intense or overwhelming fear” or be committed to achieve an objective of an individual or organisation that uses “terror” or a “state of intense or overwhelming fear” to realise its aims. The UN General Assembly has accepted that the threshold for a possible general offence of terrorism is the provocation of “a state of terror” (Resolution 60/43). The Parliamentary Assembly of the Council of Europe has taken a similar view, using the phrase “to create a climate of terror.”
In his 2023 report on the implementation of the UN Global Counter-Terrorism Strategy, the Secretary-General warned that vague and overly broad definitions of terrorism in domestic law, often lacking adequate safeguards, violate the principle of legality under international human rights law. He noted that such laws lead to heavy-handed, ineffective, and counterproductive counter-terrorism practices and are frequently misused to target civil society actors and human rights defenders by labelling them as terrorists to obstruct their work.
The United Nations Office on Drugs and Crime (UNODC) has stressed in its Handbook on Criminal Justice Responses to Terrorism that definitions of terrorist acts must use precise and unambiguous language, narrowly define punishable conduct and clearly distinguish it from non-punishable behaviour or offences subject to other penalties. The handbook was developed over several months by a team of international experts, including the writer, and was finalised at a workshop in Vienna.
Anti-Terrorism Bill, 2023
A five-member Bench of the Supreme Court that examined the Anti-Terrorism Bill, 2023, agreed with the petitioners that the definition of terrorism in the Bill was too broad and infringed Article 12(1) of the Constitution, and recommended that an exemption (“carve out”) similar to that used in New Zealand under which “the fact that a person engages in any protest, advocacy, or dissent, or engages in any strike, lockout, or other industrial action, is not, by itself, a sufficient basis for inferring that the person” committed the wrongful acts that would otherwise constitute terrorism.
While recognising the Court’s finding that the definition was too broad, the writer argued, in his previous article, that the political, administrative, and law enforcement cultures of the country concerned are crucial factors to consider. Countries such as New Zealand are well ahead of developing nations, where the risk of misuse is higher, and, therefore, definitions should be narrower, with broader and more precise exemptions. How such a “carve out” would play out in practice is uncertain.
In the Supreme Court, it was submitted that for an act to constitute an offence, under a special law on terrorism, there must be terror unleashed in the commission of the act, or it must be carried out in pursuance of the object of an organisation that uses terror to achieve its objectives. In general, only acts that aim at creating “terror” or a “state of intense or overwhelming fear” should come under the definition of terrorism. There can be terrorism-related acts without violence, for example, when a member of an extremist organisation remotely sabotages an electronic, automated or computerised system in pursuance of the organisation’s goal. But when the same act is committed by, say, a whizz-kid without such a connection, that would be illegal and should be punished, but not under a special law on terrorism. In its determination of the Bill, the Court did not address this submission.
PSTA Proposal
Proposed section 3(1) of the PSTA reads:
Any person who, intentionally or knowingly, commits any act which causes a consequence specified in subsection (2), for the purpose of-
(a) provoking a state of terror;
(b) intimidating the public or any section of the public;
(c) compelling the Government of Sri Lanka, or any other Government, or an international organisation, to do or to abstain from doing any act; or
(d) propagating war, or violating territorial integrity or infringing the sovereignty of Sri Lanka or any other sovereign country, commits the offence of terrorism.
The consequences listed in sub-section (2) include: death; hurt; hostage-taking; abduction or kidnapping; serious damage to any place of public use, any public property, any public or private transportation system or any infrastructure facility or environment; robbery, extortion or theft of public or private property; serious risk to the health and safety of the public or a section of the public; serious obstruction or damage to, or interference with, any electronic or automated or computerised system or network or cyber environment of domains assigned to, or websites registered with such domains assigned to Sri Lanka; destruction of, or serious damage to, religious or cultural property; serious obstruction or damage to, or interference with any electronic, analogue, digital or other wire-linked or wireless transmission system, including signal transmission and any other frequency-based transmission system; without lawful authority, importing, exporting, manufacturing, collecting, obtaining, supplying, trafficking, possessing or using firearms, offensive weapons, ammunition, explosives, articles or things used in the manufacture of explosives or combustible or corrosive substances and biological, chemical, electric, electronic or nuclear weapons, other nuclear explosive devices, nuclear material, radioactive substances, or radiation-emitting devices.
Under section 3(5), “any person who commits an act which constitutes an offence under the nine international treaties on terrorism, ratified by Sri Lanka, also commits the offence of terrorism.” No one would contest that.
The New Zealand “carve-out” is found in sub-section (4): “The fact that a person engages in any protest, advocacy or dissent or engages in any strike, lockout or other industrial action, is not by itself a sufficient basis for inferring that such person (a) commits or attempts, abets, conspires, or prepares to commit the act with the intention or knowledge specified in subsection (1); or (b) is intending to cause or knowingly causes an outcome specified in subsection (2).”
While the Arsekularatne Committee has proposed, including the New Zealand “carve out”, it has ignored a crucial qualification in section 5(2) of that country’s Terrorism Suppression Act, that for an act to be considered a terrorist act, it must be carried out for one or more purposes that are or include advancing “an ideological, political, or religious cause”, with the intention of either intimidating a population or coercing or forcing a government or an international organisation to do or abstain from doing any act.
When the Committee was appointed, the Human Rights Commission of Sri Lanka opined that any new offence with respect to “terrorism” should contain a specific and narrow definition of terrorism, such as the following: “Any person who by the use of force or violence unlawfully targets the civilian population or a segment of the civilian population with the intent to spread fear among such population or segment thereof in furtherance of a political, ideological, or religious cause commits the offence of terrorism”.
The writer submits that, rather than bringing in the requirement of “a political, ideological, or religious cause”, it would be prudent to qualify proposed section 3(1) by the requirement that only acts that aim at creating “terror” or a “state of intense or overwhelming fear” or are carried out to achieve a goal of an individual or organisation that employs “terror” or a “state of intense or overwhelming fear” to attain its objectives should come under the definition of terrorism. Such a threshold is recognised internationally; no “carve out” is then needed, and the concerns of the Human Rights Commission would also be addressed.
by Dr. Jayampathy Wickramaratne
President’s Counsel
Features
ROCK meets REGGAE 2026
We generally have in our midst the famous JAYASRI twins, Rohitha and Rohan, who are based in Austria but make it a point to entertain their fans in Sri Lanka on a regular basis.
Well, rock and reggae fans get ready for a major happening on 28th February (Oops, a special day where I’m concerned!) as the much-awaited ROCK meets REGGAE event booms into action at the Nelum Pokuna outdoor theatre.
It was seven years ago, in 2019, that the last ROCK meets REGGAE concert was held in Colombo, and then the Covid scene cropped up.

Chitral Somapala with BLACK MAJESTY
This year’s event will feature our rock star Chitral Somapala with the Australian Rock+Metal band BLACK MAJESTY, and the reggae twins Rohitha and Rohan Jayalath with the original JAYASRI – the full band, with seven members from Vienna, Austria.
According to Rohitha, the JAYASRI outfit is enthusiastically looking forward to entertaining music lovers here with their brand of music.
Their playlist for 28th February will consist of the songs they do at festivals in Europe, as well as originals, and also English and Sinhala hits, and selected covers.
Says Rohitha: “We have put up a great team, here in Sri Lanka, to give this event an international setting and maintain high standards, and this will be a great experience for our Sri Lankan music lovers … not only for Rock and Reggae fans. Yes, there will be some opening acts, and many surprises, as well.”

Rohitha, Chitral and Rohan: Big scene at ROCK meets REGGAE
Rohitha and Rohan also conveyed their love and festive blessings to everyone in Sri Lanka, stating “This Christmas was different as our country faced a catastrophic situation and, indeed, it’s a great time to help and share the real love of Jesus Christ by helping the poor, the needy and the homeless people. Let’s RISE UP as a great nation in 2026.”
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