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Mrs. B in a dilemma about West Pakistan Pakistan aircraft refueling at Katunayake

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How SL got entangled in Bangladesh liberation war

Excerpted from volume ii of Sarath Amunugama autobiograpy

Our next port of call was Bangladesh. This was perhaps the most interesting and fruitful of our efforts since Bangladesh was only a few years old as a ‘new nation’. It was called East Pakistan at the partitioning of British India in 1947. East Pakistan was carved out by the British from the old and famous Bengal Presidency. In fact at one stage greater Bengal with its distinctive Bengali language and culture could have qualified to be an independent state but neither the Hindus led by Nehru and Patel nor the Muslims led by Jinnah were in favour of a third state.

That was one of the few issues that both parties had agreed upon. The British too were not enamoured with the cantankerous Bengalis. Earlier the Viceroy, Lord Curzon, had attempted to partition Bengal but had been thwarted by Indian nationalists of all religions. Indeed the agitation against the partition of Bengal marks an important step in the early Indian resistance to the British. When the British cut up Bengal in 1947 both Hindu and Muslim leaders were unhappy but had to accept it as a ‘fait accompli’. Jinnah protested against the Award calling it a ‘moth eaten Pakistan’ but there was nothing he could do except to cede west Bengal to India even though old Bengal was a Muslim majority state. He had to be satisfied with a truncated Bengal and East Pakistan was born.

But the two wings of this geographical monstrosity had nothing in common except Islam which too was somewhat different in style in the two parts of the new state because Bengali Muslims were more syncretic and not fundamentalists like the Sindhis and Punjabis of West Pakistan. The two representatives of West and East Pakistan – Zulfikar Ali Bhutto and Mujibur Rahman – were as different as chalk and cheese. Within a few years of independence the leader Jinnah died and the only remaining political linchpin was severed.

The Sindhis, and especially the Punjabis who dominated the Pakistani army, were contemptuous of the ‘weak and effeminate’ Bengalis. It was an unequal and unhappy marriage and if the departing British wanted to make sure that it was `apres moi le deluge’ (after me the deluge) they could hardly have done better. Matters came to a head when in a Parliamentary election Mujibur won all the seats in East Pakistan while Bhutto won most seats in the Western-sector. But Mujibur had a majority and an expectation that he would be made PM. Instead he was to be arrested in Rawalpindi.

Mujibur fled back to Dacca and in the light of army repression by a Pakistan General who was called ‘The Butcher of Dacca’ declared independence for Bangladesh with the tacit support if India, ever ready to give Pakistan a bloody nose. A brutal war erupted and India invaded Bangali territory and ensured the eviction of the Pakistan military from its soil. When I was Director of Information under Mrs. Bandaranaike, I was privy to her dilemma when Pakistan asked for refueling facilities in Katunayake for its warplanes carrying troops to Dacca.

India had banned Pakistani flights over her territory and Katunayake was the only alternative. At first Mrs. B prevaricated because of friendship with Mrs. Gandhi but the Foreign Office made her agree to granting landing rights, provided the soldiers were not in uniform. This was typical foreign office advice which ended up by alienating both sides. At the same time the foreign office was working overtime to make amends with the US. A meeting with President Nixon was arranged when Mrs. B arrived in America for the UN sessions.

I had a friend who was a Bengali, recruited to the Pakistan Foreign Service, who was serving in Colombo as the First Secretary when the `Mukti Bahini’ [Freedom Fighters] led by Indian troops were fighting the Pakistan army regulars. He disappeared one night and fled to Dacca to assist in the setting up of the nascent Bangladesh Foreign Service. I could always depend on his goodwill in my visits to Bangladesh when Santa Crusz and I came on a UN mission.

When our mission visited Dacca we found that the Government was barely functioning. It depended heavily on International financial support for its existence. The Pakistan army had wreaked havoc on a populace who only a few months ago were their compatriots. They had mercilessly hunted down and killed Bengali intellectuals. The University of Dacca became a prison camp. The most important foreigner in Bangladesh was an American national who was the head of the UNDP in Dacca and our immediate contact in the country.

His first challenge was to find a hotel for us. Santa Crusz was quite choosy and was unhappy when we were put up in a small hotel with only basic amenities. It was the best hotel in Dacca during the Pakistani period. This problem was clear to us when the new Ministers who were asked for their priorities in reconstruction requested the construction of a five star hotel in the heart of the city. When queried about this odd request in the face of many urgent interventions required, they replied in a matter of fact way that without a big hotel donors would not come to Bangladesh and thereby a lot of foreign assistance would be missed.

It was a sad but true commentary on international financial assistance. Sure enough on my later visits to Bangladesh I found a new five star Hotel – Sonargoan – that had been constructed by a Japanese entrepreneur. Later it became the Dacca Intercontinental. Today Dacca boasts of several five star hotels. Though poor at the start, Bangladesh developed a vibrant newspaper culture in keeping with its Bengali origins. I had friends among newspapermen there including SM Ali (the student leader who became a well-known editor and later my colleague at UNESCO) and Amanullah Khan. I also had a good friend in Amanullah’s brother Obaidullah Khan who was in a training course with me in Malaysia when he was a member of the Pakistani Civil Service.

He defected to his homeland Bangladesh and later became the Minister of Agriculture. From there he became the Bangladeshi Ambassador to Washington before his premature death. We were received with open arms in Dacca because the UNDP was all powerful at that time. American foreign aid was channeled through the UNDP and our project was most welcome. We were told that a big problem at that time was the inability to prepare suitable project proposals and UN input in this sphere was vital.

Today Bangladesh is one of the fastest growing economies in the world. I moved closely with the Bangladeshis and found that they had made good use of their abundant manpower resources to spur spectacular growth in foreign employment and the garment industry. Though Bangladesh still has serious problems it has steadily graduated from being called ‘The basket case of Asia’ to one of the South Asia’s Economic tigers. Bangladesh was fortunate in having a professional – Muhith – as its Finance Minister.

He had earlier worked for the World Bank and was able to steer the economy onto a growth path. He was able to weather political storms and win the confidence of the PM Sheikh Hasina. On the other hand, another economist Yunus fell into trouble. When I was with World View Foundation and UNESCO, I assisted Professor Mohammed Yunus of Chittagong University to publicize his experiments with small scale credit among village women entrepreneurs which drew worldwide attention.

Yunus won the Nobel Prize for Economics and was feted in the White House. From there he was thought of as a possible Presidential nominee which drew on his head the hatred of the political establishment which could be vicious when it came to its own political interests. He was removed from the Presidentship of the Grameen Bank that he created and driven into the political wilderness. I was told that but for the personal intervention of Bill and Hillary Clinton who were his friends Yunus would have been imprisoned or even killed. I visited Dhaka many times subsequently but could not find his whereabouts. He became a non-person in Bangladesh.

Fiji

During our Asian tour Santa Crusz, who was an old man and not so familiar with our cuisine fell ill, and had to return to New York. Since our itinerary had already been finalized we decided that I should proceed alone. It became a memorable journey I flew to Sydney and found that I had been booked on an Air Pacific plane which was a small aircraft carrying mail to the South Pacific islands. This meant that we would be island hopping on the way to Fiji taking double the time of a direct flight. I was not happy about this but there was nothing I could do if I had to stick to our pre-planned schedule. In fact it turned out to be a delightful ride because of the spectacular azure sea over which we traveled and the many small islands which were visible from on high.

We broke journey in Bouganville, Noumia and Samoa. The island of Bouganville was earlier a French colony and later when I lived in Paris I met several senior officials who had served there. French politicians and officials knew of Sri Lanka because the French airline UTA which flew regularly to Colombo in the 1970-1990 period would fly on to Bouganville. UTA Representatives who lived in Colombo like Daniel Lafevre were our close friends in Paris and were immensely helpful to Sri Lankans living there.

Finally I landed in Fiji but was told that from there I had to take a smaller Fokker Friendship plane to the capital Suva. I have a love for islands and my travels in sea girt Fiji was a wonderful new experience. Earlier as a civil servant I had spent several months in Honolulu at the East-West Centre which was my introduction to the Pacific islands. There were several Sri Lankans in Hawaii then, including ‘Babu’ Wickremaratne, Colin de Silva and Renton de Alwis (who was then a post graduate student at the University of Hawaii). We spent many late evenings on the beach at Waikiki drinking beer and participating in cook outs and barbeques.

Closer home with my family members I have been to the Maldives and its pristine beaches in the outer islands. My special interest in Fiji was in the University of the South Pacific which was using telecommunications for distance learning in the different islands that were linked to the University. We recommended the use of the same telecom network for the dissemination of information on agriculture and fisheries. In the islands we recommended to UNDP to link the promotion of fisheries to that of agriculture envisaged in the DIN project.

In Fiji too there were several Sri Lankans particularly accountants and lawyers. The Fiji judiciary had several of our countrymen who were on leave from their positions in Sri Lanka. Among other professionals was Ranjit Amerasinghe, my hallmate from Peradeniya, who was an expert on insurance and law. We spent some delightful evenings together reminiscing about our days in the University. Ranjit later came back and became a senior judge of our Supreme court.

Coming back I insisted on a direct flight to Sydney and then to Colombo via Singapore. Santa Crusz and I met again in New York and presented our report to the UNDP senior officers and finished our assignment. It was circulated as a UNDP contribution to the ongoing discourse on the New Information Order.



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The Paradox of Coercion: US strategy and the global re-emergence of Iran

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Iranians vowing resistance at a mass funeral of the victims of US-Israeli airstrikes

(A sequel to the two-part article, War with Iran and unravelling of the global order, published in The Island on April 8 and 9.)

The unfolding developments in the US-Israeli coordinated military attack against Iran reveal a striking paradox at contemporary geopolitics: efforts to weaken a state through coercion may, under certain conditions, contribute to its structural elevation within the international system. What appears as short-term tactical success can generate long-term strategic consequences that are neither anticipated nor easily reversible. In this context, the policies associated with Donald Trump and Benjamin Netanyahu, marked by unilateralism and the willingness to use force, risk producing precisely such an unintended outcome. Rather than marginalising Iran, their actions may be accelerating its re-emergence, not merely as a regional actor in the Middle East, but as a consequential player in the global geopolitics and the wider architecture of international supply chains of energy economy.

Iran not merely a state

Iran is not merely a state, but a civilisation with a distinctive political trajectory. At the heart of the present transformation lies its asymmetric strategy, rooted in the strategic exploitation of geography. Few states possess the capacity to shape the global system through geography alone. Iran’s proximity to the Strait of Hormuz, a narrow maritime passage through which a substantial share of the world’s oil and liquefied natural gas flows, endows it with a latent structural power that transcends conventional measures of national capability.

In periods of stability, this position translates into economic opportunity; in moments of crisis, it becomes a lever of systemic disruption. Recent tensions have demonstrated that even limited instability in this corridor can reverberate across global markets, triggering sharp increases in energy prices, disrupting supply chains, and amplifying inflationary pressures worldwide. Should Iran consolidate its capacity to influence or control this chokepoint, whether through military deterrence, asymmetric instruments, or diplomatic maneuvering, it would shift from being a participant in global energy markets to a pivotal arbiter of their functioning.

Energy-embedded global economy

The contemporary global economy is not merely energy-dependent; it is deeply energy-embedded. Hydrocarbons underpin not only transportation and electricity generation but also the production of petrochemicals, fertilisers, and a wide range of industrial inputs essential to modern manufacturing and food systems. Disruptions linked to Iran have already illustrated how shocks in the energy sector cascade through interconnected supply chains, affecting everything from agricultural output to high-technology industries. In this sense, Iran’s leverage is no longer confined to the traditional realm of resource geopolitics. It increasingly operates within a networked global system in which control over a single critical node can generate disproportionate influence across multiple sectors. This form of power, diffuse, indirect, and systemic, marks a departure from the more linear dynamics of twentieth-century oil politics.

The implications of such a shift are profound for the structure of the international order. For decades, the global system has been underpinned by a set of institutions, norms, and economic arrangements often described as the so-called liberal international order. Sanctions, financial controls, and diplomatic isolation have been key instruments through which dominant powers have sought to discipline states that challenge this order. However, Iran’s prolonged exposure to sanctions has compelled it to develop adaptive strategies: alternative trade networks, informal financial channels, and closer ties with non-Western partners. A crisis-induced re-entry into global markets would therefore not signify reintegration into the existing order, but rather the expansion of parallel systems that operate alongside, and sometimes in opposition to, it. In this context, Iran’s rise would contribute to the gradual fragmentation of the global economy, accelerating trends toward decoupling, regionalization, and the erosion of established institutional authority.

Decline of global order based on US hegemony

This process of fragmentation is closely linked to declining global order based on U.S. hegemony. A more globally consequential Iran would inevitably become a focal point in the strategic player in emerging multipolar world. For China, whose economic growth remains heavily dependent on secure energy supplies, deeper engagement with Iran would serve both economic and geopolitical objectives, reinforcing its presence in the broader Middle East and insulating it from vulnerabilities associated with maritime chokepoints. Russia, already positioned as a major energy exporter and a challenger to Western dominance, may find in Iran a complementary partner in reshaping global energy markets and contesting sanctions regimes. Meanwhile, countries across the Global South, including major importers such as India, would face a more complex strategic environment, characterized by heightened exposure to supply disruptions and increased pressure to navigate between competing power centers. In this emerging landscape, Iran would function less as an isolated actor and more as a pivotal node within a reconfigured network of global alignments.

Dynamics enhancing Iran’s strategic importance

Paradoxically, the very dynamics that enhance Iran’s strategic importance may also accelerate efforts to reduce dependence on the conditions that enable its influence. Recurrent energy shocks tend to catalyze policy responses aimed at diversification and resilience. States are likely to expand strategic reserves, invest in alternative supply routes, and accelerate transitions toward renewable energy and nuclear power. Over the longer term, such measures could diminish the centrality of fossil fuel chokepoints, thereby constraining Iran’s leverage. However, this transition will be uneven and contested. Advanced economies may possess the resources to adapt more rapidly, while developing countries remain structurally dependent on affordable hydrocarbons. In the interim, the global system may experience a prolonged period in which dependence on Iranian-linked energy flows coexists with attempts to transcend it—a duality that adds further complexity to the evolving geopolitical landscape.

Beyond material considerations, Iran’s potential re-emergence also signals a deeper transformation of the existing global order. Traditional metrics—military strength, economic size, technological capacity—remain somewhat important, but they are increasingly complemented by the ability to influence critical nodes within global networks. The capacity to disrupt, delay, or redirect flows of energy, goods, and capital can generate strategic effects that rival, or even surpass, those achieved through direct military confrontation. In this sense, Iran exemplifies a broader shift from territorial geopolitics to what might be termed network geopolitics. Control over chokepoints, supply chains, and infrastructural linkages become a central determinant of influence, enabling states with relatively limited ‘conventional’ capabilities to exert outsized impact on the international system.

Iran’s trajectory may be understood as a transition through several distinct phases: from a regional challenger seeking to assert influence within the Middle East, to a strategic disruptor capable of unsettling global markets, and ultimately to a systemic actor whose decisions carry worldwide consequences. This evolution is neither inevitable nor linear; it depends on a complex interplay of domestic resilience, external pressures, and the responses of other global actors. Nevertheless, the possibility itself underscores the unintended consequences of policies that prioritize short-term coercion over long-term strategic foresight.

Transition shaped by paradoxes

In historical perspective, moments of systemic transition are often shaped by such paradoxes. Actions taken to preserve an existing order can, under certain conditions, accelerate its transformation. The current crisis involving Iran may represent one such moment. By elevating the strategic significance of energy chokepoints, exposing the vulnerabilities of interconnected supply chains, and encouraging the development of alternative economic networks, it contributes to a broader reconfiguration of global power. In this emerging context, Iran’s re-emergence as a global actor would not simply reflect its own capabilities or ambitions; it would also embody the structural shifts reshaping the international system itself. What began as an effort to constrain Iran may ultimately facilitate its transformation into a decisive player in the global energy economy and supply chain architecture. The implications of this shift extend far beyond the Middle East, touching upon the stability of markets, the cohesion of international institutions, and the evolving nature of power in the twenty-first century.

The war with Iran is best understood not as a discrete regional conflict, but as a structural moment in the transformation of the international system. It reveals a growing disjuncture between the continued reliance on coercive statecraft and the realities of an interdependent global order in which power increasingly derives from control over critical economic and infrastructural nodes. Rather than achieving strategic containment, the conflict has underscored the capacity of a relatively constrained actor to generate systemic effects through geoeconomic leverage. In doing so, it highlights a broader shift from military-centric conceptions of power toward forms of influence embedded in networks of energy, trade, and supply chains.

This is not merely a redistribution of power, but a redefinition of how power operates. At the systemic level, the war accelerates the erosion of the post-Cold War order, reinforcing tendencies toward fragmentation, parallel economic arrangements, and multipolar competition. Iran’s potential re-emergence as a global actor should therefore be seen less as an isolated outcome than as a manifestation of these deeper structural changes. In this sense, the strategic significance of the war lies in its unintended consequences: it exposes the limits of coercive hegemony while simultaneously amplifying the importance of those actors positioned to exploit the vulnerabilities of an interconnected world.

by Gamini Keerawella ✍️

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The dawn of smart help for little ones

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How Artificial Intelligence is breaking barriers in Autism Diagnosis and Care

For any parent, the early years are a most valuable countdown of “firsts” of his or her precious child: the first step, the first clear word, the first beautiful smile, and quite a few other firsts as well. Yet for all that, for some families, that joy is overshadowed by a growing, quiet, but disturbing intuition that something is even a little bit different. Perhaps a child is not responding to his or her name, or the little one seems to be more interested in the spinning wheels of a toy than a game of peek-a-boo, or even avoids normal social responses.

In many countries, especially in the developing world, the road from that first “gut feeling” that there is something wrong, to a formal diagnosis of Autism Spectrum Disorder (ASD) is often a long and exhausting journey. While doctors can often identify autism in children as young as 12 to 18 months, the average age of diagnosis in our communities still hovers around four years. In these critical years, when a child’s brain is most like a machine ready to learn and adapt, time is of the essence and is the most valuable resource a family has.

Today, a new “algorithmic dawn” is offering a shortcut to really cut that delay. Artificial Intelligence (AI), the very same smart technology that helps us navigate traffic, suggest a new song, or help people with ChatGPT, is moving out of the lab and into the children’s nursery. By acting as a digital “magnifying glass”, specifically designed AI tools can now spot subtle patterns in a child’s gaze, some little quirks in the rhythm of their babbling, or the way they move, often much faster than the human eye can. Then the machine can issue a warning signal and indicate that further action and a proper evaluation are necessary. This is most certainly not about replacing the brain, the heart and the expertise of a paediatrician; it is about providing “Smart Help” that can be accessed from a smartphone in a family living room. For millions of “little ones on the spectrum”, most notably in the developing world, this technology is turning a journey once defined by waiting, uncertainty and even tears, into one of proactive care and even brighter horizons. The time gained is most certainly a very valuable window of opportunity.

What is the “Spectrum,” and Why Does Time Matter?

Autism is described as a “spectrum” because it affects many children somewhat differently and to varying degrees. Some children may have advanced technical skills but struggle to hold a conversation; others may be non-verbal or have intense sensory sensitivities. It can be very mild or very severe, and perhaps everywhere in between as well.

The common thread is that the brain develops differently in these affected children. This is why Early Intervention is the gold-standard goal. During the toddler years, a child’s brain is incredibly “plastic”, meaning that it is a highly adaptable and ready to learn type of organ. Starting therapy and management strategies during this valuable period of opportunity can fundamentally change a child’s future life path.

The problem, to a certain extent, is that traditional diagnosis of ASD is a slow, manual process. It requires intensively trained experts to watch a child play for hours and fill out complex checklists. In many countries, including Sri Lanka, where there is a massive shortage of these highly qualified specialists, the waiting list for a consultation alone can take months or even years. These doyens are rather thin on the ground and even when available, are heavily overworked.

Enter the AI Revolution: Seeing the Unseen

AI certainly does NOT replace doctors, but it acts like a high-powered magnifying glass. By using “Machine Learning”, computers can analyse massive amounts of data to find tiny patterns that the human eye might miss. Here is how it is changing the game:

1. Tracking Gaze and Smiles

One of the earliest signs of autism is how a child looks at the world. AI “Computer Vision” can analyse a simple video of a child playing. It can track exactly where the child is looking. Does the child look at a person’s eyes when they speak, or are they drawn to the spinning wheels of a toy in the corner? AI can quantify these “social attention” patterns in seconds and add them to a cache of things that ring warning bells.

2. The Sound of a Voice

Did you know that the “music” of a child’s speech can hold clues? AI can listen to the pitch and rhythm (called prosody) of a child’s voice. Children on the spectrum sometimes have a “flat” or monotonic way of speaking. AI algorithms can measure these vocal biomarkers with incredible precision, helping to flag concerns long before a child is old enough for a full conversation.

3. Movement and Play

Repetitive behaviour, like hand-flapping or rocking, are core traits of ASD. Sensors in smartphones or simple video analysis can now categorise these movements objectively. Instead of a parent trying to describe how often a behaviour happens, the application or ‘app’ provides a clear, data-driven report for the doctor.

Innovation at Home: India’s Digital Solutions

The most exciting part of this technology is that it does not require a million-dollar lab. In India, where smartphone use is booming, several “homegrown” apps are bringing specialist-level screening to rural and urban homes alike.

Apps like CogniAble, which give parents a step-by-step intervention plan based on the child’s specific needs, or START, a tablet-based tool used by local health workers in areas like Delhi slums to spot risks via simple games, or LEEZA.APP, which offers free AI screening to remove the “money barrier” that keeps many families from seeking help, or AutismBASICS, which provides thousands of activities and a milestone tracker to help parents manage daily therapy at home, are just a few of the programs in use at present. These tools are “democratising” healthcare. A mother in a remote village with a basic smartphone can now access the same level of screening logic that was once only available in a major city hospital.

Beyond the Diagnosis: A Robot Tutor?

The role of AI does not stop once a diagnosis is made. It is also becoming a tireless “co-therapist.”

For many children with autism, the human world can be unpredictable and overwhelming. AI-powered “Social Robots” or interactive apps provide a safe, predictable environment. These “Robo-Therapists” do not get tired, they do not get frustrated, and they can repeat a social lesson even 100 times until the child feels comfortable.

Furthermore, for children who are nonverbal, AI-powered communication apps serve as a “voice”. These apps use smart technology to predict what a child wants to say, allowing and facilitating them to express their needs and feelings to their parents, even for the very first time.

The Human Element: Proceed with Care

As bright as this dawn is, experts warn that we must move forward carefully and most intelligently.

= Privacy: Because these apps collect sensitive videos and data about children, keeping that information secure is a top priority.

= Cultural Differences: An AI trained on children in the US or Europe might not perfectly understand a child in Sri Lanka. We need “diverse local data” to ensure the algorithms understand our local languages, gestures, and social norms. Many of these programs need to be home-grown or baked at home in Sri Lanka.

= The Human Touch: Most importantly, we need to always remember that AI is a tool, not a replacement. A computer can spot a pattern, but it cannot give a hug, provide emotional support to a struggling parent, or celebrate a breakthrough with the same joy as a human therapist.

A Brighter Future

We are moving toward a world where “waiting and seeing” is no longer, and quite definitely, not the only option for parents. By combining the heart of a parent and the expertise of a doctor with the speed of an algorithm, we can ensure that no child is left behind because of where they live or how much money they have.

The “Algorithmic Dawn” is not just about code and data. It is about giving every child the best possible start in life. It is the main principle on which Hippocrates, the Father of Medicine, all those centuries ago, based all his postulations on how physicians should work.

 The “Red Flag” Checklist: 18 to 24 Months

The American Academy of Pediatrics recommends screening all children at 18 and 24 months. If you notice several of these signs, it is time to use an AI screening app or consult your paediatrician.

Communication and Social Cues

= The Name Test: Does your child consistently fail to turn around or look at you when you call his or her name?

= The Pointing Test: By 18 months, most toddlers point at things they want (like a biscuit) or things they find interesting (like a dog). Is your child using your hand as a “tool” to get things instead of pointing?

= The Eye Contact Test: Does your child avoid looking at your face during social interactions or during play or when being fed?

= The Shared Smile: Does your child rarely smile back when you smile at him or her?

Behaviour and Play

= The Toy Test: Does your child play with toys in “unusual” ways? (e.g., instead of rolling a car, they spend 20 minutes just spinning one wheel or lining them up in a perfect, rigid line).

= The Routine Rule: Do they have an extreme “meltdown” over tiny changes, like taking a different route to the park or using a different coloured cup?

= Repetitive Motions: Do you notice frequent hand-flapping, rocking, or spinning in circles, especially when they are excited or upset?

The “Golden Rule” of Regression

Finally, an extremely important rule for concerned parents to follow.

If your little one had words (like “Mama” or “Dada” or “Amma” or “Thaththa” or Thaii/Amma or Appa) or social skills (like waving “Bye-Bye”) and a beautiful social smile etc, and then SUDDENLY STOPS USING THEM, that could be a most significant red flag. In such situations, the standard advice would be: Please consult a doctor immediately.

by Dr B. J. C. Perera

MBBS(Cey), DCH(Cey), DCH(Eng), MD(Paediatrics),
MRCP(UK), FRCP(Edin), FRCP(Lond), FRCPCH(UK),
FSLCPaed, FCCP, Hony. FRCPCH(UK), Hony. FCGP(SL)
Specialist Consultant Paediatrician and Honorary Senior Fellow,
Postgraduate Institute of Medicine, University of Colombo, Sri Lanka.

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Governance, growth and our regional moment:Why Sri Lanka must choose wisely

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The recent disclosure of a substantial internal fraud at National Development Bank has understandably unsettled the financial community. What began as a relatively contained incident has since been revised upwards, revealing a scheme that operated over an extended period within a specific operational area. To their credit, both the bank and the Central Bank of Sri Lanka responded with speed. Staff were suspended, arrests followed, an independent forensic review was commissioned, and clear assurances were given that customer funds remained secure. The institution’s capital and liquidity positions continue to meet regulatory requirements, and day to day operations have not been disrupted.

Yet it would be a mistake to view this as an isolated operational error at a single respected institution. When a fraud of this magnitude, equivalent to more than a year’s profit for the bank, emerges within one of our most established listed companies, the implications extend well beyond the banking sector. It prompts a necessary and uncomfortable question. Are we truly strengthening the foundations of our economy so that every part of our society can operate with the integrity and confidence that sustainable progress demands?

Banking sits at the heart of any modern economy. It channels savings into investment, supports enterprise, and underpins household security. When even a leading institution reveals weaknesses in internal controls, risk oversight or governance culture, the signal to international observers is difficult to ignore. It suggests that the financial system upon which growth depends may not yet possess the resilience we aspire to project. If institutions that have undergone significant reform since 2022 can still experience such failures, what assurance can investors reasonably expect in other sectors of our economy? At a time when Sri Lanka needs to demonstrate strength and reliability, perceptions of fragility carry a heavy cost.

This matters profoundly because a genuine window of opportunity is now opening. Geopolitical shifts in the Middle East and beyond are prompting global investors and entrepreneurs to seek stable, well governed destinations for capital and talent. Sri Lanka possesses distinct advantages. Our geographical position offers natural connectivity. We have invested in critical infrastructure, including two major ports, international airports and strategic energy reserves. In an era where businesses prioritise rule of law, institutional predictability and sound fundamentals, our potential alignment with these criteria is significant. However, high profile governance failures at this precise moment risk undermining that narrative before it can gain meaningful traction.

The stakes are equally significant for initiatives such as the Port City Colombo. With substantial projects now approved, foreign investment commitments secured and early construction underway, this endeavour is moving from concept to delivery. Yet persistent concerns about governance standards in our established companies can act as a drag on investor sentiment. The confidence required to attract high value international tenants and long- term capital depends not only on physical infrastructure but on the perceived strength of our institutions and the consistency of our regulatory environment.

For decades, Sri Lanka has experienced growth averaging around four to five per cent per year. While this is not insignificant, it falls short of our potential, particularly when measured against the progress of our regional neighbours. India, for example, has sustained growth at roughly twice our rate for more than twenty years, driven by consistent policy execution and strengthening institutional credibility. Our own trajectory has been held back not by a lack of ideas or ambition, but by recurring shortcomings in how our major institutions are governed and held to account. The result is a cycle of unrealised potential, where promising openings are not fully converted into lasting advancement.

The current situation, though challenging, can serve as a catalyst for meaningful change. Boards of listed companies must move beyond procedural compliance to foster a genuine culture of ethical leadership, proactive risk management and zero tolerance for control failures. Regulators have an opportunity to undertake a comprehensive review of fraud prevention frameworks, whistle-blower protections and monitoring standards across the financial sector, with lessons applied to other key industries. Greater transparency in reporting material incidents and more timely forensic follow through will help rebuild trust with both domestic and international stakeholders.

Crucially, the government must tread carefully as it responds. Short term fixes or reactive measures may address immediate concerns but will not deliver the enduring stability that investors seek. What is required is a coherent long-term strategy that balances the imperative for rapid economic development with the equally vital need to conserve our natural environment and strengthen regional cooperation. Our neighbours in South Asia and Southeast Asia offer not only markets for trade and investment but also partners in shared challenges such as climate resilience, sustainable infrastructure and digital connectivity. By deepening these relationships through practical collaboration, Sri Lanka can position itself as a reliable and forward-looking partner in a dynamic region.

Sri Lanka stands at a pivotal moment. Global realignments are creating rare opportunities for capital inflows, technology transfer and new economic partnerships. Yet these opportunities will flow most readily to nations that demonstrate they can protect investor interests, uphold the rule of law and operate with predictability and transparency. If we allow governance weaknesses in our flagship institutions to persist, we risk once again watching potential pass us by.

This is a defining moment, and our response must be equally purposeful. We can treat the recent events as an unfortunate but isolated incident and return to established patterns. Or we can seize this moment as a timely reminder to strengthen every pillar of our economy, with particular attention to environmental stewardship and regional collaboration. Only by getting our house in order, with patience, consistency and a clear-eyed commitment to long term goals, can we convert today’s challenges into tomorrow’s competitive advantage. The path to sustained prosperity demands nothing less.

by Professor Chanaka Jayawardhena
Professor of Marketing
University of Surrey
Chanaka.j@gmail.com

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