Features

Overcoming economic crisis and rebuilding economy: A clarion call

Published

4 years ago

2022/07/18

By the National Science Foundation

Sri Lanka is facing perhaps the most difficult and challenging economic, political and socially decisive times in its peacetime history, marked by depletion of foreign exchange reserves and government revenue, and a sovereign debt crisis. The crisis has had a devastating impact on the lives of the people, and its magnitude and potential demand immediate remedial action to ease the painful burden on the general public. The current crisis is principally due to the lack of a rational, consistent and coherent national policy, besides several decades of mismanagement of the economy. Recent events, such as the Easter Sunday bombings and the Covid-19 pandemic, have exacerbated the situation, with escalation of the Ukraine-Russia conflict and accompanying rises in food and fuel and shortages in world market, posing further threats.

Thus, there is an urgent need to get on with medium to long-term steps to resurrect the economy while providing essential immediate relief to the victims of the unprecedented crisis. We should recognize that the current monetary problems of the Government and the sufferings of the people are symptoms of a deeper malaise in the real economy. It is of paramount importance to correctly determine the causes of the malaise in order to overcome the prevailing lackadaisical attitudes and attend to the real economy and its determinant factors.

Science and technology (S&T) is the prime driver of and key to development in the three main sectors of the economy, namely Agriculture, Manufacturing and Services. Hence, the National Science Foundation, the premier national institution mandated to promote S&T for the socio-economic development of the country and wellbeing of its people, has assembled a team of senior scientists, technologists, professionals, entrepreneurs and community leaders in the country with expertise and experience in the relevant fields to deliberate on the state of the economy and ways to overcome the crisis and rebuild the economy through immediate, short- and medium-term interventions. They are indicative of direction. Details have to be worked on in the process of implementation.

Overarching and sector-specific recommendations that emanated from the deliberations are presented below for due attention of and action by the relevant authorities.

(A) Overarching recommendations

1. Immediate adoption of an evidence-based policy-making approach

Political expediency rather than economic imperatives has driven national policies since independence, making them ad hoc and aimed to address short-term issues, superficially, in order to secure and consolidate political power at the cost of long-term damage to the economy. Where foreign aid was involved, policies tended to be donor-driven and top-down with minimal local stakeholder consultation, lack of transparency and inadequacy of safety nets. Lack of coherence and cohesion of policy, policy uncertainty and policy instability are factors that inhibited FDI for economic development as investors look to consistency in policy regardless of change of government. Hence the following are of prime importance:

Evidence-based policy formulation drawing upon scientific and professional knowledge and experience available in the country.

Appointment of a high-powered multi-disciplinary advisory body comprising competent members from relevant institutions, such as the Institute of Policy Studies (IPS), National Science Foundation (NSF), Sri Lanka Association for the Advancement of Science (SLAAS), National Academy of Sciences (NAS), National Research Council (NRC) and National Innovation Agency (NIA) as well as from relevant professional bodies, academia and industry.

2. Introduction of STEAM education in schools

Introduction of STEAM (Science, Technology, Engineering, Arts and Mathematics) education in schools is important to provide students with crucial future-ready skills and an array of new career possibilities. Integrating enterprise and entrepreneurship programmes into the concepts of STEAM education will enable students to critically analyze problems and create real-world applications leading to business start-ups and wealth creation. Thus, STEAM education constitutes the bedrock of industrial growth and sustainable economic development, and it should be incorporated into the national school curriculum without delay.

3. Infusion of science and technology to development

Sri Lanka spends only about 0.1% of the GDP on R&D and its high-tech exports account for only about 1% of total exports, which are abysmally low compared with those in most of the countries even in Asia. Hence, the following are crucially important to set the country on an upward trajectory of development:

i. Increase expenditure on R&D up to 1% of GDP over the next five years.

ii. Bring all R&D and allied institutions which are currently compartmentalized and scattered across several ministries on to one platform or coordinated network, thereby facilitating transformation of inventions into innovations and developing multidisciplinary value chains for commercial and social benefit.

iii. Bring all R&D institutions under the Sri Lanka Scientific Service in order to advance the cause of science for national development. Personnel from any other service or profession can be coopted as and when necessary and relevant.

iv. Build capacity and capabilities in product design engineering (PDE)

Most high-income economies have a strong PDE and manufacturing company base. Well known high revenue PDE companies such as Toyota, Volkswagen, Apple and Boeing drive national economies through high-tech exports. They are not R&D companies, but relentlessly customer-focused PDE companies which use commercially available technologies (e.g. carbon fiber cloth, high-strength aluminium, computer chips, sensors etc.) “to design and certify a product once, and build and sell millions” to customers worldwide. Sri Lanka has only a few successful PDE companies such as Lanka Transformers, Neil Marine, and Orange Electric. This narrow manufacturing base should be expanded as a matter of high priority through introduction of PDE-based economic growth policies and production of mechatronics product design engineers. This will pay rich dividends in the medium term.

v. Establish dedicated recycling industrial facilities to transform Sri Lanka from a linear to circular economy thereby ensuring zero waste and eco-friendly development.

vi. Establish a conducive and enabling environment for research by eliminating impediments to international cooperation, granting tax incentives for R&D including advanced laboratory equipment and introducing a green channel to expedite the funding and procurement processes related to R&D.

vii. Establish a mechanism to productively utilize all national R&D facilities and resources to address national R&D needs and channel solutions and innovations emanating from such efforts for national development through a smooth and cohesive value chain.

3. Export facilitation and prudent utilization of foreign exchange

i. Negotiations with bi-lateral and multi-lateral organizations and appropriate global funding organizations to attract investment with high ROI.

ii. Use of foreign exchange especially targeted to meet the essential needs of high priority areas such as agriculture, food, energy, pharmaceuticals and raw materials for industry during the crisis phase.

iii. Facilitation and promotion of import substitution industrialization and export-oriented industrialization (i.e. rubber products, coconut related products, electronics and electrical components, boat and ship building, food and beverages, including engagement in specific segment/s of the global manufacturing value chain etc. paying attention to core competencies and competitive advantages.

iv. Introduction of a new export development plan under the aegis of the Export Development Board incorporating incentives and mechanisms to fast track export processes, paying special attention to value addition and market potential.

v. Setting floor prices for commodity exports to avoid under-invoicing and over-invoicing of imports

vi. Introduction of a mechanism to buy pawned gold when auctioned by local banks to prevent it from being lost to the country through various channels, thereby enhancing the national gold reserve

4. Governance, procurement, productivity and efficiency

The following are proposed to deal with the key issues and maladies due to poor governance

.i. Introduction of e-governance in a way that ensures transparency, which will enable cost effectiveness and improved performance of SOEs

ii. Mandatory publishing of financial accounts of all SOEs, along with the audit queries of the Auditor General and the responses thereto with provision for people to raise questions and suggestions about their performance on the respective websites or a dedicated website for government accounts

iii. Strict and regular monitoring and evaluation of progress of major and medium-sized public projects using governance scorecards. Public sector institutions should publish data on physical and financial progress and the impact of projects in electronic and print media at appropriate times in order to enable public scrutiny. Names of all key officials including the minister and secretary in charge should also be given. The Ministry in charge of the subject of Planning and Project Implementation should be adequately staffed with competent persons to carry out the above task assessment effectively and meaningfully.

iv. Introduce a whistleblower policy so that any corruption or fraud can be promptly investigated and appropriate action taken irrespective of the position and rank held.

v. A Central Agency should be immediately set up for review of all public expenditure. Efficiency and productivity processes should be set in motion in public institutions with the immediate introduction of performance management systems.

vi. All ministers should have an expert advisory body including specialists and policy analysts to advise them on crucial decision making. The NSF along with relevant institutions can propose the composition of such an advisory body for the ministries relevant to S&T.

vii. Appointment and recruitment to key positions in public sector institutions and statutory bodies should be strictly based on merit without exception. Moreover, there should be no more MP’s or Minister’s list when filling public vacancies which are tantamount to a violation of fundamental rights.

5. Value chain approach to development

A value chain deals with the full range of activities that are required to bring a product or service from conception, through the intermediary phases of production, to delivery to final consumers, and final disposal after use. This is a holistic and integrated approach needed to achieve success of any enterprise. However, most of the interventions in Sri Lanka have been made in an ad hoc and piecemeal manner resulting in lackluster performance in practically all sectors of the economy which comprises almost 50 main clustered areas of production. Analysis of the already available data will show areas with high growth potential. Therefore, it is proposed to establish a “Value Chain Task Force” for formulation of a comprehensive development strategy and mechanism along with an action plan for the high-priority, high-impact interventions needed at this critical juncture with the participation of the key stakeholders.

6. Inclusiveness and competent youth representation

Inclusive political participation is not only a fundamental political and democratic right but also is crucial to building stable and peaceful societies and developing policies that respond to the specific needs of younger generations. It is essential that young people are engaged in formal political processes and have a say in formulating today’s and tomorrow’s policies in order to make a difference in the longer term. For young people to be adequately represented in political institutions, processes, and decision-making, and in particular in elections, they must know their rights and be given the necessary knowledge and capacity to participate in a meaningful way at all levels. Therefore, inclusion of adequate youth representation in an appropriate manner in all institutions in the political, social, economic and technological fabric of the country should be ensured. (To be continued)

Prof. Ranjith Senaratne, Chairman, National Science Foundation and former Vice-Chancellor, University of Ruhuna Dr. Sepalika Sudasinghe, Director General, National Science Foundation and Visiting Professor in Management, Management and Science University of Malaysia Desamanya M.D.D. Pieris, former Secretary to the Prime Minister and several ministries and currently serving on some professional bodies and committees

C. Maliyadde, Vice President, Sri Lanka Economic Association and former Secretary to several ministries

H.M.G.S. Palihakkara, former Foreign Secretary, Ambassador and former Governor, Northern Province.

Dr. Chandra Embuldeniya, Chairman, Technology Development and Innovations Arm of the NSF, Founder, Vice-Chancellor, Uva Wellassa University, and Past President, The National Chamber of Commerce of Sri Lanka

Prof. A.K.W. Jayawardane, Senior Professor in Civil Engineering, University of Moratuwa, Chairman, Commercial Bank of Ceylon PLC and former Vice-Chancellor, University of Moratuwa

D.K RAJAPAKSA BSc (Hons) Ceylon, Emeritus Managing Director DSI Samson Group (Pvt.) Ltd

Dr. P.A. Kiriwandeniya, Founder of SANASA Movement

Rizvi Zaheed, BA Hons. MBA, Chairman, Sri Lanka Agripreneurs’ Forum

Professor Saroj Jayasinghe, Professor Emeritus of Medicine, University of Colombo

Prof. Ajith de Alwis, Senior Professor of Chemical and Process Engineering, University of Moratuwa and Chief Innovation Officer (Actg.), National Innovation Agency

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Features

The Division Bell Mystery

Published

2 days ago

2026/05/29

Thilina Walpola

Tales of Mystery and Suspense 3

The murder, in a private dining room in the house, is of a financier with whom the government was negotiating a loan. When this seemed difficult the Minister of Home Affairs agreed to lead discussions, since he had known Mr Oissel the financier when they were young. Hence the private dinner, but when the Minister stepped out for a vote, Oissel was shot just as the Division Bell rang.

The Brahms and Simon detective novels, the first of which I wrote about last week, were amongst several books by the pair that Robert Scoble gave me when I was in Australia towards the end of last year. Amongst them was another thriller of a very different sort, though that too was written and set between the wars.

Called The Division Bell Mystery, it was set in the House of Commons, the first such book I believe, and was by Ellen Wilkinson, a Labour MP who became Minister of Education in Attlee’s government after the war, having served previously as Parliamentary Private Secretary to several ministers. Her hero Robert West is also a PPS, but a conservative, and his Minister, of Home Affairs, is an old style aristocrat, not much loved by the less orthodox Prime Minister, who nevertheless needs his support on many occasions.

The murder, in a private dining room in the house, is of a financier with whom the government was negotiating a loan. When this seemed difficult the Minister of Home Affairs agreed to lead discussions, since he had known Mr Oissel the financier when they were young. Hence the private dinner, but when the Minister stepped out for a vote, Oissel was shot just as the Division Bell rang.

West was just outside the door when the shot was heard, and when he opened it saw only the dead body with a revolver beside it. The assumption that this was suicide was however challenged by Oissel’s grand-daughter Annette, who was his heir, on the grounds that he would never have killed himself. But her view was given greater credence by the Inspector put in charge of the case who said there were no burn marks on the body which would have been the case had Oissel fired the pistol himself.

Matters are complicated by the fact that Oissel’s flat had been burgled while he was at dinner, and Jenks the policeman allocated to him, who had served the Home Secretary and seemed more acceptable to Oissel than someone from the Security Service, had been killed. Matters get even more complicated when Annette says her grand-father’s notebook in which he wrote his secrets in cipher was missing.

That was found in Jenks’ pocket, and then a photographer came to West to say he had been asked by Jenks to photograph this. More worryingly for West, he finds in the Home Secretary’s drawer a few pages from the notebook with what appears to be an interpretation of the cipher.

Ellen

Overwhelmed by all this he confides in a recently created peer who knows all about the business world, who insists that they leave the house party at which they had met over dinner and discuss the matter with the Prime Minister who promptly summons the Home Secretary.

But the Home Secretary had gone to Scotland to launch a ship over the weekend, so the meeting could take place only on the morning of the Monday, when difficult questions were expected on the adjournment motion. He admits at the meeting that he had got Jenks to take the notebook, and also that he knew the code since it had been created by him and Oissel when they were young.

He thought he should resign, and even contemplated suicide, but the Prime Minister told him that that would be even worse for the government, and that he should go home to bed. The Prime Minister said that he himself would handle the question, which he did with aplomb, insisting that confidentiality was needed until the inquest. What had happened would be made clear then, he declared, leaving West and Inspector Blackit and Lord Dalbeattie what seemed the impossible task of solving the murder.

Dalbeattie had suggested that West ask a female Labour MP who was very fond of him to get what information she could from the staff. That there was some involvement there had become clear when West, going back late one night to collect a briefcase he had left in a dining room, found someone lurking in the dark in the corridor outside the private rooms. Room J, where the murder had happened, was meant to be guarded throughout by a policeman, but he had left the room having felt dizzy, and it seemed that his coffee had been drugged. West’s sudden appearance however had prevented anyone else getting into the room.

Dalbeattie decides to recreate the scene of the murder and has a dinner party in Room J on the Tuesday night, inviting West and Annette and the society hostess at whose house he had met, and also Patrick Kinnaird, an MP who was engaged to Annette, as well as the Permanent Secretary to the Home Ministry.

After coffee Inspector Blackit comes in with Grace, the Labour MP who had got the confidence of the staff, and a journalist who had also been helpful, and just as they say they think they are on the track the division bell rings. Grace jumps up and tells the Inspector that that provides the solution and they get a ladder, and sure enough find the revolver in the space where the bell is. Directed at the place where Oissel had sat, it had been primed to go off with the ringing of the bell. The waiter who had helped to set things up made clear who the murderer had been.

The reason for the murder and the confused motives of all those involved made for a fascinatingly intricate mix. But also impressive in the book were the descriptions of the isolation possible in the crowded premises of the house, the forceful characterization of the members – Grace based on the writer, the society hostess based on Nancy Astor, the first female MP – and the laid back nature of senior politicians which West realized had to change in the brave new world of high finance.

Features

The challenge of keeping value-based politics alive

Published

3 days ago

2026/05/28

Sahan Weerasooriya

Anti-migrant protests in Durban, South Africa. BBC

The current outbreak of anti-immigrant protests in Durban, South Africa is bound to have taken many a subscriber to value-based politics or political idealism quite by surprise. After all, this is evidence that despite the historic accomplishments of nation-builders of the stature of the late President Nelson Mandela it cannot be taken for granted that identity politics, including racism in its worst forms, is no more in South Africa.

At the time of this writing details are scarce on the substantive root causes of the protests but it could very well be that economic grievances, particularly on the part of the majority community in South Africa, are contributing considerably to the disaffection. Shrinking employment and material prospects are likely to figure majorly among the factors igniting the unrest.

Fortunately, the local authorities in Durban are losing no time in calling for peaceful co-existence among the relevant communities and are pointing to the vital importance of stepping-up national integration processes. Apparently, immigrants in sizable numbers from neighbouring countries are present in Durban. However, international TV footage of the protests quoted some local authorities as saying that the majority of the immigrants in some centres that housed them were not illegal migrants and had the documents that entitle them to be in Durban.

In the Durban protests the world has fresh proof of the socially divisive consequences of the gathering globe-wide economic disaffection, touched off particularly by the continuing crisis in West Asia. Going ahead, the world would need to brace for increasing identity-based unrest of the kind it is just witnessing in South Africa.

Considering that the material lot of ordinary people everywhere could only aggravate progressively, with the US and Iran showing no signs of negotiating an end to their confrontation any time soon, it will be left to the more democratic and progressive sections of the world community to initiate positive measures collectively to bring a measure of relief to the discontented.

The swiftness with which such relief will be provided would depend crucially on the importance those sections taking up these undertakings attach to value-based politics as opposed to Realpolitik of power politics.

Going by these yardsticks, Italy could be considered to be moving in the right direction. Recently Italy came to the fore in initiating the collective named, ‘Rome Coalition for Food Security and Access to Fertilizer’, which has as one of its aims the swift provision of fertilizer to economically weak African countries.

In a recent statement Italian Minister of Foreign Affairs and International Cooperation, Antonio Tajani, said that a principal aim of the project was to ensure that the farmers of Africa gained easy access to fertilizer, considering that food security is a growing concern among some of Africa’s economically vulnerable countries.

The statement went on to mention that some 30 countries hailing from the Mediterranean region, the Middle East, the Balkans as well as the FAO had been invited to join the coalition. The venture is far-seeing in that food security is main among the reasons for social discontent which in turn could degenerate into endemic political turmoil and bloodshed. Separatist violence and geographical fragmentation of countries wouldn’t be too far behind these developments, as Africa itself has often proved.

It is hoped that more G7 countries would take the cue from Italy and do what they could to ease the hardships of economically distressed countries, particularly of the global South. In these efforts they would need to break rank with the US, which is today brutally indifferent to the consequences of its policy of making ‘America First’, come what may.

Going by current developments, the Trump administration seems to be blithely oblivious to the wider, deleterious effects of its policy course in West Asia. Besides rendering Iran militarily and otherwise impotent nothing else seems to matter to Washington, as regards West Asia. This is policy short-sightedness of an extreme kind. After all, right now West Asia could be said to be sitting on the proverbial powder keg.

On the other hand, Iran is not giving the world the impression that it is doing anything constructive to get out of the policy straitjacket that it wove for itself decades ago. Rather than enter into a policy of ‘live and let live’ in relation to Israel in particular and initiate a process of reconciliation with the latter, it has chosen to operate within policy parameters that continue to damn Israel. This has put Israel always on the ‘defensive’ so to speak and prevented the opening up of space for meaningful dialogue.

That said, Israel is obliged to explore the possibilities of entering into a negotiatory process with the Arab-Islamic world that could lead to a de-escalation of tensions and bloodshed. It cannot continue to look at its neighbours through lenses that distort them as archetypal enemies who should be ‘wiped off completely from the face of the earth.’

In other words, the need is urgent for Realpolitik to give way to value-based politicks. Italy is beginning to prove that the latter approach could be pursued with some success. May be the EU and the UK could throw their weight behind these initiatives as well and establish that international politics could be refashioned on the basis of humane, civilized norms. The UN would need to be fully supportive of these moves and prove an organizational nucleus of the operations that follow.

In fact the time is ripe for people of conscience to collectively stand up on the side of peace and say ‘No’ to war and violence. Organizations such as the ICRC, the WHO and Medicines Sans Frontiers have already taken up this call. Referring to the widespread destruction of health facilities and their dehumanizing results these organizations have said, among other things, that ‘This is not a failure of the law. It is a failure of political will.’

True, ‘failure of political will’ among those powers that matter accounts for the runaway, uncontrollable nature of war and destruction in contemporary times, but more fundamentally it is a failure of the human conscience. It could very well be that the phenomenal levels to which violence and war have been unleashed today have had the effect of deadening consciences. This is a matter for urgent study and wide discussion.

Features

Vesak celebrations … with Cuteefly

Published

3 days ago

2026/05/28

Sahan Weerasooriya

Perfect for celebrations, gifts, and meaningful occasions // Gift pack

I would describe Indunil Kaushalya Dissanayaka as innovative and creative, and she operates under the name of Cuteefly.

Indunil always comes up with something novel to celebrate special occasions, and she does it with candles … and that’s her profession.

She was in the spotlight when she created a happening scene, with candles, for Christmas, Sinhala and Tamil New Year, and Valentine’s Day.

As lanterns light up Sri Lanka for Vesak, the Colombo-based candle maker is quietly turning wax and wick into little pieces of the festival.

Candles reflecting Vesak themes

Her candles reflect Vesak themes – light, peace, remembrance, giving, etc., to enable you to fill your Vesak celebration with devotion and beauty.

Among her Vesak creations is a lotus-shaped soy candle, scented with sandalwood, lavender, etc., meant to burn during this Vesak Poya Day.

Indunil Kaushalya Dissanayaka: Customers
praise her for her creativity

These handcrafted Vesak candles are perfect for offering at the temple, she says.

What makes her creations so novel is that they come in different shapes, scents, themes, and all are handmade.

What’s more, her customers have heaped praise on her for her creativity.

According to Indunil, her creations are perfect as a thoughtful gift … to bring beauty, unity, and light into every moment.

Says Indunil: “Our beautifully handcrafted Unity candles are designed with premium detail and love, making them perfect for celebrations, gifts, and meaningful occasions.”

Cuteefly, says Indunil, is available online.

Readers could contact Indunil on 0778506066 for more details.

He Facebook Page is: Cuteefly.