Features
My Basil flies over the ocean; Oh, bring back my Basil to me, my cabinet!
by Rajan Philips
Basil Rajapaksa is back in cabinet. He was made a Minister even before he could become an MP. Parliament had to wait for the Executive to swear Brother Basil as Minister before the Speaker could take him in as the new National List MP. SLPP MP Jayantha Ketagoda vacated his spot on the list to make way for his political master. The actor-turned politician was preordained to make this sacrifice, and he will be rewarded, the gossip goes, with a posting down under, as Sri Lanka’s High Commissioner in Australia. Not bad at all for an Actor. Too bad for Academics permanently on a waiting list for an Aussie posting. As postings go, the one who came from Australia is now in Beijing. No one wants to go to Delhi, apparently. Everyone wants to go the US, but some want the US Ambassador in Colombo to mind her business. Especially when it comes to presidential pardons.
Basil Rajapaksa is a roving dual citizen of the US and Sri Lanka. He alternates between two homes and two countries. Basil flies east, Basil flies west, and Basil flies over the ocean. The government as a whole is flying over the cuckoo’s nest. As nursery rhymes go, we are sure to hear another adaptation in short order: Humpty Dumpty sat on a wall, Humpty Dumpty had a great fall, and all the President’s brothers and nephews could not put him together again.
Basil Rajapaksa is being brought in to change everything that is going untoward and stop the great fall. But the fall has already started. Triggered not so much by the virus as by the government’s incompetence and ineptitude. Nonetheless, the virus is still hugely out of control. The government is not out of control as such; only, it is not in control of anything much. The frustration among government supporters is palpable. The government’s critics are gloating. Even sedate editorial writers are unsparing in their mockery.
Dan Sepada?
Mahinda Rajapaksa is known to have weaponized the rhetorical question: “Dan Sepada?” That was to rhetorically remind voters that they made a huge mistake in defeating him in 2015 and electing instead the ill-married Sirisena-Wickremesinghe government. The SLPP turned it into one of its campaign slogans. Now it is boomeranging the new government. A few weeks ago, Dan Sepada? was the title of The Island (June 21) editorial. After the arrest of a person who had phoned the Mayor of Moratuwa to ask “Dan sepada?” Everyone has heard about the Mayor of Moratuwa and his vaccine antics. He is the SLPP type who got caught. But there are Mayors of other persuasions who are known to have organized special vaccine audiences. Then you hear of the GMOA and its jabs. And you ask, Dan sepada?
There is another political meme doing the rounds, this one printed on the back of a three wheeler by its owner, apparently a supporter of Sajith Premadasa. The message is that it is good Sajith Premadasa lost, otherwise the country would still be thinking that Gotabaya Rajapaksa “is a genius.” Hopefully, no one is thinking Sajith Premadasa is a genius. The country doesn’t have to think of, or look for, ready-made geniuses anymore. It has seen it all. And so quickly. Not even two years after the last presidential election, or one year after the parliamentary election that produced a two-thirds majority hoping for absolute geniuses.
The Rajapaksa elders settled on Gotabaya Rajapaksa as their presidential candidate for the 2019 election because he was still a new political commodity whom they could sell as a fresh face. But no one checked his fitness for the job, except, may be, Mahinda Rajapaksa, who is full of political instincts. And the system as a whole – election officials, the courts, the media, chose to ignore, or question, his citizenship credentials, because they did not want to stand in the way of a genius. One destined to bring deliverance to the country. Now, the clamour is for an alternative genius from the family. It will not be long before Mahinda Rajapaksa’s weaponized question is flung out again: Dan sepada?
Basil Rajapaksa is the new Finance Minister, ending heated speculations whether he would be given Finance, the portfolio held by Prime Minister Mahinda Rajapaksa. Actually, he has been given more. BR’s Finance portfolio includes Economic Policies and Plan Implementation, all of which were under Prime Minister Rajapaksa. Mahinda Rajapaksa was Prime Minister before he became President. Now he is Prime Minister after being President. MR is also now without Finance. BR has got Finance. And GR has got everything under 20A. Nothing is working – either for the President or for the government. Don’t mention the country.
For a highflying dual citizen, Basil Rajapaksa doesn’t want to lose the common touch. So, it seems. “Though I may serve as a minister, the farmers, fisherfolk, labourers, professions, civil servants and others in this country should think that a colleague of theirs is the minister of finance,” he is reported to have said. There you go, in fell swoop Minister is all things to all men – farmer, fisher, worker, doctor, clerk! The trouble is every one of them has one grievance or other caused by the government and they are all protesting against the government. Unlike during the yahapalanaya days, the current protests are not orchestrated by political long arms. They are spontaneous responses to unbearable situations that people in all walks of life are now facing.
The country is on a split screen. In one half of the screen, you can see protestors. The other half has been showing government supporters hanging banners and lighting firecrackers to welcome the new Minister of Finance. As if they were not happy with the old Minister of Finance. It is not a new government. They are all in the same government. And as Pieter Keuneman used to say, there is no point in shuffling cabinets when you have only jokers and no aces! And two state ministers were shuffled the same day after Basil Rajapaksa was sworn in as the new Finance Minister and Mahinda Rajapaksa was re-sworn as Prime Minister minus Finance & Economic Affairs.
The two sate ministers are Shasheendra Rajapaksa, a nephew, and Mohan de Silva, not identified as part of the family. As the Economy Next noted, Sheeshandra Rajapaksa, the son of the president’s brother Minister Chamal Rajapaksa, might be holding “the longest ministry title in Sri Lanka’s history as State Minister of Organic Fertilizer Production, Supply and Regulation and the Paddy and Grains, Organic Food, Vegetables, Fruits, Chillies, Onion and Potato Cultivation Promotion, Seed Production and Advanced Technology for Agriculture.” I thought Nivard Cabraal has the longest title, but the Rajapaksa scion is beating Cabraal easily by a mile. Mohan de Silva is given a short title – Coast Conservation and Low-Lying Lands Development. To keep the average title length manageable. Isn’t it curious, that Sri Lanka should have not only a large cabinet, but also each Minister should be padded with multiple portfolios? Or, put another way, dan sepada?
There is no point in going into an analysis of the taxonomy or typology of the state-family system that is now unfolding in Sri Lanka. The point is – it is a non-system pretending to be a system. The reprehensible Saudi state-family system has a long tradition. There is no such tradition in Sri Lanka. And you cannot create one by constitutional chicanery. There are no clever-enough lawyers to do even that. There is power, but there is no government. There are ministers, but there is no competence. There are supporters, but there is no satisfaction. But there are people, and they are suffering. That is the stark reality.
The Basil who flies over the ocean, is not the same as “My Bonnie who lies over the ocean,” the Scottish folk song that apparently was sung by the supporters of “Bonnie Prince Charlie” (Prince Charles Stuart) who went into exile after losing a battle with the English in 1746. That is a historical segue to end this piece with a note about the changing faces in the world of sports. The English Football Team is in the finals of a major tournament for the first time in 55 years. They have so far beaten every team they faced in the current Euro 2020. Except Scotland. The unheralded highlanders held their Brexit English cousins to a goal-less tie at Wembley in one of the early round matches.
Sports World Changes
It is a matter of opinion if sporting events are a nefarious distraction from more serious life matters – such as politics. Noam Chomsky apparently thinks so in his Manufacturing Consent, the 1988 book by Chomsky and (Edward) Herman. But sports have been a welcome distraction during the pandemic even without spectators. Japan seems determined to go ahead with the 2020 Olympics, already postponed by a year, even though the country is in a state of emergency and the government of Yoshihide Suga is in some political trouble because of this decision. Of course, there will be no spectators allowed. The Olympics are set to open in Tokyo on July 23. Tennis and Football are seeing epochal changes in London.
Roger Federer, the immensely gifted flower child of tennis from Switzerland, lost his Wimbledon Quarter Finals match in straight sets to Hubert Hurkacz, a promising but relatively unknown 25 year old from Poland. Mr. Federer will turn forty in August, and he may not play again at the All England Club. That would mark the end of an era without much fanfare. Unlike in other sports like cricket or football where players announce their retirement and are given a farewell, tennis players do not usually announce their retirement before a match, and if you lose, as happened to Roger Federer, you have no chance of being given formal farewell. Federer was of course given a standing ovation, much longer this time than when he used to win, but there was no farewell. In fairness, he is not sure what his future plans are going to be.
For nearly twenty years, Roger Federer, Spaniard Rafael Nadal and Serbian Novak Djokovic have been dominating the tennis world with a virtual monopoly over the four grand slam tournaments (Australian, French, Wimbledon and US Open). Federer and Nadal have each won twenty of them, and Djokovic with 19 trophies is set to match and surpass them. Djokovic is the only one remaining at Wimbledon this year. He is the overwhelming favourite to win, but if he were to lose it would be passing of the torch to a new generation of players.
Wimbledon finals are today (Sunday) and later in the evening, elsewhere in London, England will be playing Italy in the final match of Euro 2020. Fifty five years ago, in 1966, at the same Wembley venue, England won its only World Cup beating Germany in the finals. England has since not been in the finals of any major football tournament. The current English team is not only young and talented, but is also the most diverse with players of colour and of Irish origin. The team is also political, with players taking the knee at the start of every game to show solidarity with social movements for equality, inclusivity, and racial justice. Whoever wins the game, England or Italy, sports can also be a moral weapon for social causes. Not just a distraction.
Features
The Paradox of Coercion: US strategy and the global re-emergence of Iran
(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 ✍️
Features
The dawn of smart help for little ones
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.
Features
Governance, growth and our regional moment:Why Sri Lanka must choose wisely
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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