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Minister Perera’s plan to face forex crisis

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by Chandre Dharmawaradana,
chandre.dharma@yahoo.ca

Prime Minister Ranil Wickremesinghe and President Gotabaya Rajapaksa say the situation remains grim and will become worse. Yet, the JVP leader claims that the crisis is exaggerated! He probably has no shortages as even ‘biriyani or kottu” are available from the Aragalaya?

Meanwhile, the President, finally forced to admit his mistakes, is shedding his Pohottuva political baggage that put him in power. Getting rid of the old Cabinet, bringing back the beleaguered Wickremesinghe, as PM, and getting rid of Basil Rajapaksa, have cost the President a month of precious time. Wickremesinghe has assembled a dubious set of minsters, instead of brining competent outsiders into an interim Cabinet. Sri Lanka’s adversity has become an opportunity for the PM.

The resignation of Basil Rajapaksa paved the way for the appointment of business tycoon as a National List MP. Dhammika Perera is said to have paid the most taxes in Sri Lanka. He may also be the largest donator to political parties. Even the Aragalaya may be on such a gravy train!

Perera has publicised a plan to mitigate the foreign exchange crisis. Ex-Central Bank Governor Ajith Nivard Cabraal, too, had a development plan, heavy on building high-speed motorways – projects highly favoured by commission-seeking politicos. This writer pointed out the absurdity of such projects, in articles published in September 2019, as public transport, via high-speed trains, is what is needed. Perera’s proposals have the merit of simplicity and targeting the forex crisis. However, he too has forgotten that Sri Lanka’s economy is a complex system driven by global factors beyond Lanka’s control. Are its planners and economists unaware that small nations need energy and food sovereignty to achieve any semblance of independence?

Perera’s plan is for an additional USD 8 billion per annum from 12 key strategies (see: ).

The 12 strategies are inconsistently arranged, with items 1), 2), 8) applying to tourism; 3), 4), 7) pertain to educational services; 5) deals with expat worker remittances; 6), 10) deal with increasing foreign investments, and 9),11), and 12) deal with energy and agriculture! We give representatives of his proposals from each category.

Tourism:

1). Increase Lanka’s foreign currency holdings by USD5 billion in the next five years by issuing 10-year residence visas for foreigners who hold USD100,000 for 10 years. Establish budget airline hubs to generate USD2 billion to increase arrivals of “budget” tourists, by creating new international airports and a domestic air network. Why not fast “bullet trains” instead of planes?

Education

: 3). Reduce the current outflow of USD2.5 billion to students studying abroad by 20% while also earning USD2.5 billion inflows by attracting international students.

Ex-pat workers:

5). Increase foreign worker remittances from USD7 billion (pre-Covid) to USD24 billion per annum by forming a 10 – year plan.

Investments:

6). Increase foreign direct investments.

Energy:

11). Save USD1 billion by allowing the private sector to invest in new power plants powered by solar or coal in Norochcholai (ancient name: Horagolla) and Sampur (Somapura).

Agriculture:

9). Generate USD600 million income with coconuts.

12). Save USD200 million on Palm oil.

Mr. Perera has not made the mistake of proposing to drill the Mannar seabed for oil and gas but makes a mistake even in mentioning coal. He is right on the potential of the coconut industry, and regarding palm oil cultivation, an environmental plus in the context of Sri Lanka (See: https://dh-web.org/place.names/posts/cdw-Palmoil-0.pdf).

Nevertheless, the main thrust of his proposals is quite questionable within current global realities. We look at IMF data on commodities prices (see Chart 1) used recently by the Nobel Laureate Paul Krugman in discussing US and EU inflation.

The commodity prices in the world market were quite favourable during the Yahapalanaya period. It was an opportunity wasted by the Sirisena-Wickremasinghe-JHU-TNA-JVP yahapalanaya cabal, unified only by their opposition to the Rajapaksa clan rule. Forex debt had grown by 65% and debt servicing costs by 400% during Yahapalanya.

The change of government back to the Rakapaksas led a change of economists and advisors. The new “Roadmap” presented by Ajith Cabraal in October 2021 ignored the dangerous trend in the primary commodities indices seen in Chart 1 or the impact of the Pandemic on world trade. The huge economic costs of the plunge into organic farming were clear but ignored in the Roadmap. Indeed, even after the collapse of harvests, the lyrical performances of the Viyathmaga Prof. Saman Weerakkody is enough to understand the blinding appeal of the agricultural mythology sold to politicians and the innocent public.

Perera’s solutions to the forex crisis are also based on assumptions similar to those of Cabral’s 2021 October Roadmap. Thus, Perera hopes that tourists, even budget tourists, will return; that foreign investors will return; that ex-pat workers will have money to send, and that Lankan academic institutions controlled by radicalized students will earn money like the private Universities of the West.

While economics enables incisive post-fact analysis, it notoriously fails to predict economic outcomes. Friedrich von Hayek candidly asserts (in his Nobel price acceptance speech) that quantitative economics is mostly a pretense to knowledge. Bernard Show claimed that economists seeking to exit a crisis would point in wildly different directions. So, while a Cabraal or a Lakshman may point one way, a Weerasinghe or a Coomarswamy will point in another.

However, what seems to matter for the market is not empirical truths, but the clout and connections of the men at the helm.

So, the appointment of Perera was welcomed by the Colombo stock market. However, in our view, the stark facts of the global economy are starkly against his plan especially in the short term. The Ukraine war will drag on painfully. The price index curve (Chart 1) is unlikely to drop anytime soon. The foreign investors Perera hopes to attract will come only for fire-sales of assets. Long-time visitors will not reside in countries without top medical care. Rising prices of coal and LNG will make Norchcholloi and Sampur utterly unaffordable. Budget tourists will find no budget flights. Student turmoil and labour unrest will push the government to authoritarianism.

Given Sri Lanka’s low investment in education, standards have fallen low. Many new agriculture professors teach folklore instead of science, and pharmacology professors go on TV in support of occult cures! Would international students register, given disruptions to university education? Talk of ‘rapid industrialisation’ is a chimera. Where it has been achieved, the sine qua non had been exploitable labour, neglect of the environment, authoritarianism and favourable markets. None of this is possible in the current context.

So, if the Perera Plan is in the same class as that of Cabral’s failed Roadmap, is there a tractable and FAST way out for Lanka? Yes.

Sri Lanka’s largest forex drain has been in buying fuel and food. The country can be self-sufficient and even become an exporter of both. Sri Lanka has a very high density of water reservoirs, and natural aquatic bodies ideal for floating solar installations where power during sunshine can be stored (without batteries) for night use in the form of the equivalent amount of head water. These can be setup within a short time (see: https://island.lk/sri-lankas-power-supply-blackouts-and-how-to-prevent-them/). It has two incredible monsoons and two planting seasons. This writer has explained in many previous newspaper articles and presentations (e.g., https://dh-web.org/place.names/posts/dev-tech-2009.ppt) going back to at least 2009 how these objectives may be achieved at little cost by following modern science rather than folklore however hallowed they may be.

Crash food production can be implemented on a ‘war footing’ (authoritarian implementation) within one planting season. Self-sufficiency in, say, diesel fuel may also be achieved within one year! Castor is a fast-growing ‘weed’ that is not attacked by pests or livestock. It can be grown among coconut trees or on infertile lands. Its seeds yield a clear oil directly usable in most diesel engines. The shells, and twigs of the plant, can be used as fuel. The oil can be easily adapted for motor car engines, or as an industrial solvent. A pilot-study on this by this writer many decades ago during his time as a Vice-Chancellor and Professor of Chemistry at the Vidyodaya University may still be in the arches in the Ministry of industries.

When faced with an emergency, time is of the essence. The government has a public service with too many employees. One business year can be converted into two by running two sessions of the government – one from 8am to 3pm, and another from 3pm to 9 pm., splitting the excess work force in two, clearing the backlog in issuing passports, in courts, in dealing with administrative matters, in the timely marketing of farm products, business and industry. Then Sri Lanka might be able to leapfrog over its impending calamity and move towards self-sufficiency in quick time.



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Illegal solar push ravages Hambantota elephant habitat: Environmentalist warns of deepening crisis

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Land earmarked for the project

A large-scale move to establish solar power plants in Hambantota has triggered a major environmental and social crisis, with more than 1,000 acres of forest—identified as critical elephant habitat—cleared in violation of the law, environmental activist Sajeewa Chamikara said.

Chamikara, speaking on behalf of the Movement for Land and Agricultural Reform, said that 17 companies have already begun clearing forest land along the boundaries of the Hambantota Elephant Management Reserve. The affected areas include Sanakku Gala, Orukemgala and Kapapu Wewa, which are known to be key elephant habitats and long-used movement corridors.

He said that what is taking place cannot be described as development, but rather as a large-scale destruction of natural ecosystems carried out under the cover of renewable energy expansion.

According to Chamikara, the clearing of forests has been carried out using heavy machinery, while large sections have also been deliberately set on fire to prepare the land for solar installations. He said that electric fences have been erected across wide stretches of land, effectively blocking elephant movement and fragmenting their natural habitat.

“These forests are not empty lands. They are part of a living system that supports wildlife and nearby communities. Once destroyed, they cannot be easily restored,” he said.

The projects in question include a 50 megawatt solar development undertaken by five companies and a larger 150 megawatt project implemented by 12 companies. The larger project is reported to be valued at around 150 million US dollars.

Chamikara stressed that these projects are being carried out in a coordinated manner and involve extensive land clearing on a scale that raises serious environmental concerns.

He further alleged that certain companies had paid about Rs. 14 million to secure support and move ahead with the projects. He said this points to a troubling failure of oversight by state institutions that are expected to protect forests and wildlife habitats.

“This is not only an environmental issue. It is also a serious governance issue. The institutions responsible for protecting these lands have failed in their duty,” he said.

Chamikara pointed out that under the National Environmental Act, any project of this scale must receive prior approval through a proper Environmental Impact Assessment process.

He said that clearing forest land before obtaining such approval is a direct violation of the law.

He added that legal requirements relating to archaeological assessments had also been ignored. Under existing regulations, large-scale land clearing requires prior evaluation to ensure that sites of historical or cultural value are not damaged.

“The law is very clear. You cannot go ahead with projects of this nature without proper approval. What we are seeing is a complete disregard for legal procedure,” Chamikara said.

The environmental impact of these activities is already becoming visible. With their natural habitats destroyed, elephants are increasingly moving into nearby villages in search of food and shelter. This has led to a sharp rise in human-elephant conflict in several areas.

Areas such as Mayurapura, Gonnooruwa, Meegahajandura and Thanamalvila have reported increasing encounters between humans and elephants. According to Chamikara, more than 5,000 farming families in these areas are now facing growing threats to their safety and livelihoods.

 

He warned that farmers are being forced to abandon their lands due to repeated elephant intrusions, while incidents involving damage to crops and property are rising. There have also been increasing reports of injuries and deaths among both humans and elephants.

“This is turning into a serious social and economic problem. When farmers cannot cultivate their lands, it affects food production, income and rural stability,” he said.

Chamikara also raised concerns about the broader environmental consequences of clearing forests for solar power projects. While renewable energy is promoted as a solution to reduce carbon emissions, he said that destroying forests undermines that goal.

“Forests play a key role in absorbing carbon dioxide. When you clear and burn them, you are increasing emissions, not reducing them. That defeats the purpose of promoting solar energy,” he explained.

He added that large-scale deforestation in dry zone areas such as Hambantota could also affect local weather patterns and reduce rainfall, which would have further negative impacts on agriculture and water resources.

Chamikara called for a shift in policy, urging authorities to focus on more sustainable approaches to solar power development. He said that rooftop solar systems on homes, public buildings and commercial establishments should be given priority, as they do not require clearing large areas of land.

He also recommended that solar projects be located on degraded or abandoned lands, such as areas affected by past mining or other low-value lands, rather than forests or productive agricultural areas.

“Renewable energy development must be done in a way that does not destroy the environment. There are better options available if there is proper planning,” he said.

Chamikara urged the Central Environmental Authority and the Department of Wildlife Conservation to take immediate action to stop ongoing land clearing and investigate the projects. He stressed that all activities carried out without proper approval should be halted until legal requirements are met.

He warned that failure to act now would lead to long-term environmental damage that could not be reversed.

“If this continues, we will lose not only forests and wildlife, but also the balance between people and nature that supports rural life. The consequences will be felt for generations,” he said.

The situation in Hambantota is fast emerging as a critical test of whether development goals can be balanced with environmental protection. As pressure grows, the response of authorities in the coming weeks is likely to determine whether the damage can still be contained or whether it will continue to spread unchecked.

By Ifham Nizam

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Why Mahatma Gandhi’s teachings need to be at the heart of conflict resolution

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Mahatma Gandhi

All credit to the Tamil Nadu government for taking concrete measures to perpetuate the memory of the renowned Mahatma Gandhi of India, who on account of his moral teachings stands on par with the likes of Socrates, Plato, Aristotle, Confucius and Jalaluddin Rumi, to name a few such all-time greats. The time is indeed ripe to draw the world’s attention to the Mahatma’s humanistic legacy which has resonated in the hearts of peace-oriented sections the world over down the decades.

Under its mega developmental blueprint titled ‘ Tamil Nadu 2030’, the Tamil Nadu government, among other things, intends transforming villages into centres of economic growth in conformity with the Mahatma’s vision of making the village the fundamental unit of material and spiritual advancement. Thus will come into being the ‘Uttamar Gandhi Model Villages Project’, which will be initially covering 10 village Panchayats. (Please see page 3 of The Island of March 11, 2026).

The timeliness of remembering and appreciating anew the teachings of Mahatma Gandhi resides in the utter lawlessness that has been allowed to overtake the world over the last few decades by none other than those global powers which took it upon themselves to usher in a world political and economic order based on the UN Charter and the Universal Declaration of Human Rights. Mainly in ‘the dock’ in this regard are the permanent members of the UN Security Council.

As is plain to see, the international law and order situation has veered out of control. Principal priorities for the international community or what’s left of it is to prevent the current mainly regional war in the Middle East from degenerating dangerously into another world war, coupled with the task of eliminating the possibility of another nuclear holocaust.

The most scorching of ironies is that the world’s ‘number one power’, the US, has virtually lost its way in the ‘Global Disorder’ it has been party to letting lose. For instance, instead of making good its boast of militarily neutralizing Iran and paving the way for the constant flow of fuel and gas from the Strait of Hormus by itself and Israel, it is now appealing to the rest of the West to come to its assistance. Not surprisingly, US allies are indicating their unwillingness to help pull the US’ ‘chestnuts out of the fire’.

Oil and gas are the veritable life blood of countries and going ahead it should not come as a surprise if impatience gets the better of the major powers and the nuclear option is resorted to by some of them under the dangerous illusion that it would be a quick-fix to their growing economic ills and frustrations.

All the above and more are within the realms of the possible and the need is pressing for humanistic voices to take centre stage in the present runaway crisis. As pointed out in this column last week, Realpolitik has overtaken the world and unless the latter is convinced of the self-destructive nature of the major powers’ policy of ‘meeting fire with fire’ to resolve their disputes, annihilation could be the lot of a good part of the world.

For far too long the voice of humanity has been muted and silenced in the affairs of the world by the incendiary threats and counter-threats of the big powers and their allies. No quarter has been bold enough in these blood pressure-hiking slanging matches to speak of the need for brotherly love and compassion among nations and countries. But it’s the language of love and understanding that is the most pressing need currently and the Mahatma in his time did just that against mighty odds.

At present the US and Iran are trading threats and accusations over military-related developments in the Gulf and it’s anybody’s guess as to what turn these events will take. However, calming voices of humanity and moderation would help in deescalating tensions and such voices need to go to the assistance of the UN chief and his team.

The Mahatma used the technique of ‘Satyagraha’ or the policy of non-violent resistance to oppose and dis-empower to a degree the British empire in his time and the current major powers would do well to take a leaf from Gandhi. The latter also integrated into the strategy of non-violent resistance the policy of ‘Ahimsa’ or love and understanding which helped greatly in uniting rather than alienating adversaries. The language of love, it has been proved, speaks to the hearts and minds of people and has a profoundly healing impact.

Mahatma Gandhi defined the ideal of ‘Ahimsa’ thus: ‘In its positive form, “Ahimsa” means the largest love, the greatest charity. If I am a follower of “Ahimsa”, I must love my enemy or a stranger to me as I would my wrong-doing father or son. This active “Ahimsa” necessarily includes truth and fearlessness.’ (See; ‘Modern Indian Political Thought; Text and Context’ by Bidyut Chakrabarty and Rajendra Kumar Pandey, Sage Publications India, Pvt. Ltd., www.sagepub.in).

In the latter publication, the authors also defined the essence of ‘satyagraha’ as ‘protest without rancour’ and this is seen as ‘holding the key to his entire campaign’ of non-violent resistance. From these perspectives, the teaching, ‘hatred begets hatred’ acquires more salience and meaning.

Accordingly, the voice of reason and love needs to come centre stage and take charge of current international political discourse. The UN and allied organizations which advocate conflict resolution by peaceful means need to get together and ensure that their voices are clearly heard and understood. The global South could help in this process by seeing to the vibrant rejuvenation of organizations such as the Non-aligned Movement.

An immediate task for the peace-oriented and well meaning is to make the above projects happen fast. In the process they should underscore afresh the profound importance of the teachings of Mahatma Gandhi, who is acclaimed the world over as a uniting and healing political personality and prophet of peace.

If the Mahatma is universally acclaimed, the reason is plain to see. Put simply, he spoke to the hearts and minds of people everywhere, regardless of man-made barriers. The language of peace and brotherhood, that is, is understood by everyone. The world needs more prophets of peace and reconciliation of the likes of the Mahatma to drown out the voices of discord and war-mongering and ensure that the language of humanity prevails.

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Exciting scene awaits them …

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The Future Model Hunt extravaganza, organised by Rukmal Senanayake, and advocacy trainer Tharaka Gurukanda, held in late January 2026, has brought into the limelight four outstanding contestants who will participate, at the international level, this year – Sandeepa Sewmini, Demitha Jayawardhana, Diwyanjana Senevirathna, and Nimesha Premachandra.

Nimesha took the honours as Mrs. Tourism Sri Lanka 2026 and was featured in The Island of 05th March,

Sandeepa Sewmini was crowned Miss Supranational 2026 and will represent Sri Lanka at the big event to be held in Poland later in the year.

A Business Management and Human Resources student, she will be competing under the guidance of Rukmal Senanayake from the Model With Ruki – Model Academy & Agency.

The Mister Supranational Sri Lanka crown went to Demitha Jayawardhana, a 20-year-old professional model and motocross rider.

Apart from modelling he is engaged in his family business.

Demitha Jayawardhana: Mister Supranational Sri Lanka 2026

Demitha is also a badminton player with a strong passion for sports, fitness and personal growth.

In fact, he is recognised for his strength, discipline, and passion for fitness.

A past student of Wycherley International School and St Peter’s College, Colombo, Demitha is currently in his second year of Economics Management at the Royal Institute of Colombo.

He will represent Sri Lanka at the 10th edition of the Mister Supranational pageant, in Poland, in August, 2026.

Mister and Miss Supranational are annual international beauty pageants, held in Poland, and are designed to discover new talent for the modelling and television industries and produce instant celebrities.

The competition focuses on elegance, intelligence, and social advocacy, with contestants, representing their countries.

The newly appointed Miss Teen International Sri Lanka 2026 is Diwyanjana Senevirathna.

She was crowned at the Future Model Hunt and will represent Sri Lanka at the Miss Teen International 2026 pageant in India.

Diwyanjana is noted for her grace and dedication to representing the country at this prestigious event that aims to celebrate talent, intelligence, charm, and individuality, and provide a platform for young girls to showcase their skills.

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