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Overcoming economic crisis and rebuilding economy: A clarion call

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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

Cricket and the National Interest

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The appointment of former minister Eran Wickremaratne to chair the Sri Lanka Cricket Transformation Committee is significant for more than the future of cricket. It signals a possible shift in the culture of governance even as it offers Sri Lankan cricket a fighting possibility to get out of the doldrums of failure. There have been glorious patches for the national cricket team since the epochal 1996 World Cup triumph. But these patches of brightness have been few and far between and virtually non-existent over the past decade. At the centre of this disaster has been the failures of governance within Sri Lanka Cricket which are not unlike the larger failures of governance within the country itself. The appointment of a new reform oriented committee therefore carries significance beyond cricket. It reflects the wider challenge facing the country which is to restore trust in public institutions for better management.

The appointment of Eran Wickremaratne brings a professional administrator with a proven track record into the cricket arena. He has several strengths that many of his immediate predecessors lacked. Before the ascent of the present government leadership to positions of power, Eran Wickremaratne was among the handful of government ministers who did not have allegations of corruption attached to their names. His reputation for financial professionalism and integrity has remained intact over many years in public life. With him in the Cricket Transformation Committee are also respected former cricketers Kumar Sangakkara, Roshan Mahanama and Sidath Wettimuny together with professionals from legal and business backgrounds. They have been tasked with introducing structural reforms and improving transparency and accountability within cricket administration.

A second reason for this appointment to be significant is that this is possibly the first occasion on which the NPP government has reached out to someone associated with the opposition to obtain assistance in an area of national importance. The commitment to bipartisanship has been a constant demand from politically non-partisan civic groups and political analysts. They have voiced the opinion that the government needs to be more inclusive in its choice of appointments to decision making authorities. The NPP government’s practice so far has largely been to limit appointments to those within the ruling party or those considered loyalists even at the cost of proven expertise. The government’s decision in this case therefore marks a potentially important departure.

National Interest

There are areas of public life where national interest should transcend party divisions and cricket, beloved of the people, is one of them. Sri Lanka cannot afford to continue treating every institution as an arena for political competition when institutions themselves are in crisis and public confidence has become fragile. It is therefore unfortunate that when the government has moved positively in the direction of drawing on expertise from outside its own ranks there should be a negative response from sections of the opposition. This is indicative of the absence of a culture of bipartisanship even on issues that concern the national interest. The SJB, of which the newly appointed cricket committee chairman was a member objected on the grounds that politicians should not hold positions in sports administration and asked him to resign from the party. There is a need to recognise the distinction between partisan political control and the temporary use of experienced administrators to carry out reform and institutional restructuring. In other countries those in politics often join academia and civil society on a temporary basis and vice versa.

More disturbing has been the insidious campaign carried out against the new cricket committee and its chairman on the grounds of religious affiliation. This is an unacceptable denial of the reality that Sri Lanka is a plural, multi ethnic and multi religious society. The interim committee reflects this diversity to a reasonable extent. The country’s long history of ethnic conflict should have taught all political actors the dangers of mobilising communal prejudice for short term political gain. Sri Lanka paid a very heavy price for decades of mistrust and division. It would be tragic if even cricket administration became another arena for communal suspicion and hostility. The present government represents an important departure from the sectarian rhetoric that was employed by previous governments. They have repeatedly pledged to protect the equal rights of all citizens and not permit discrimination or extremism in any form.

The recent international peace march in Sri Lanka led by the Venerable Bhikkhu Thich Paññākāra from Vietnam with its message of loving kindness and mindfulness to all resonated strongly with the masses of people as seen by the crowds who thronged the roadsides to obtain blessings and show respect. This message stands in contrast to the sectarian resentment manifested by those who seek to use the cricket appointments as a weapon to attack the government at the present time. The challenges before the Sri Lanka Cricket Transformation Committee parallel the larger challenges before the government in developing the national economy and respecting ethnic and religious diversity. Plugging the leaks and restoring systems will take time and effort. It cannot be done overnight and it cannot succeed without public patience and support.

New Recognition

There is also a need for realism. The appointment of Eran Wickremaratne and the new committee does not guarantee success. Reforming deeply flawed institutions is always difficult. Besides, Sri Lanka is a small country with a relatively small population compared to many other cricket playing nations. It is also a country still recovering from the economic breakdown of 2022 which pushed the majority of people into hardship and severely weakened public institutions. The country continues to face unprecedented challenges including the damage caused by Cyclone Ditwah and the wider global economic uncertainties linked to conflict in the Middle East. Under these difficult circumstances Sri Lanka has fewer resources than many larger countries to devote to both cricket and economic development.

When resources are scarce they cannot be wasted through corruption or incompetence. Drawing upon the strengths of all those who are competent for the tasks at hand regardless of party affiliation or ethnic or religious identity is necessary if improvement is to come sooner rather than later. The burden of rebuilding the country cannot rest only on the government. The crisis facing the country is too deep for any single party or government to solve alone. National recovery requires capable individuals from across society and from different sectors such as business and civil society to work together in areas where the national interest transcends party politics. There is also a responsibility on opposition political parties to support initiatives that are politically neutral and genuinely in the national interest. Not every issue needs to become a partisan battle.

Sri Lanka cricket occupies a special place in the national consciousness. At its best it once united the country and gave Sri Lankans a sense of pride and international recognition. Restoring integrity and professionalism to cricket administration can therefore become part of the larger task of national renewal. The appointment of Eran Wickremaratne and the new committee, while it does not guarantee success, is a sign that the political leadership and people of the country may be beginning to mature in their approach to governance. In recognising the need for competence, integrity and bipartisan cooperation and extending it beyond cricket into other areas of national life, Sri Lanka may find the way towards more stable and successful governance..

by Jehan Perera

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From Dhaka to Sri Lanka, three wheels that drive our economies

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Court vacation this year came with an unexpected lesson, not from a courtroom but from the streets of Dhaka — a city that moves, quite literally, on three wheels.

Above the traffic, a modern metro line glides past concrete pillars and crowded rooftops. It is efficient, clean and frequently cited as a symbol of progress in Bangladesh. For a visitor from Sri Lanka, it inevitably brings to mind our own abandoned light rail plans — a project debated, politicised and ultimately set aside.

But Dhaka’s real story is not in the air. It is on the ground.

Beneath the elevated tracks, the streets belong to three-wheelers. Known locally as CNGs, they cluster at junctions, line the edges of markets and pour into narrow roads that larger vehicles avoid. Even with a functioning rail system, these three-wheelers remain the city’s most dependable form of everyday transport.

Within hours of arriving, their importance becomes obvious. The train may take you across the city, but the journey does not end there. The last mile — often the most complicated part — belongs entirely to the three-wheeler. It is the vehicle that gets you home, to a meeting or simply through streets that no bus route properly serves.

There is a rhythm to using them. A destination is mentioned, a price is suggested and a brief negotiation follows. Then the ride begins, edging into traffic that feels permanently compressed. Drivers move with instinct, adjusting routes and squeezing through gaps with a confidence built over years.

It is not polished. But it works.

And that is where the comparison with Sri Lanka becomes less about what we lack and more about what we already have.

Back home, the three-wheeler has long been part of daily life — so familiar that it is often discussed only in terms of its problems. There are frequent complaints about fares, refusals or the absence of meters. More recently, the industry itself has become entangled in politics — from fuel subsidies to regulatory debates, from election-time promises to periodic crackdowns.

In that process, the conversation has shifted. The three-wheeler is often treated as a problem to be managed, rather than a service to be strengthened.

Yet, seen through the experience of Dhaka, Sri Lanka’s system begins to look far more settled — and, in many ways, ahead.

There is a growing structure in place. Meters, while not perfect, are widely recognised. Ride-hailing apps have added transparency and reduced uncertainty for passengers. There are clearer expectations on both sides — driver and commuter alike. Even small details, such as designated parking areas in parts of Colombo or the increasing standard of vehicles, point to an industry slowly moving towards professionalism.

Just as importantly, there is a human element that remains intact.

In Sri Lanka, a three-wheeler ride is rarely just a transaction. Drivers talk. They offer directions, comment on the day’s news, or share local knowledge. The ride becomes part of the social fabric, not just a means of getting from one point to another.

In Dhaka, the scale of the city leaves less room for that. The interaction is quicker, more direct, shaped by urgency. The service is essential, but it is under constant pressure.

What stands out, across both countries, is that the three-wheeler is not a temporary or outdated mode of transport. It is a necessity in dense, fast-growing Asian cities — one that fills gaps no rail or bus system can fully address.

Large infrastructure projects, like light rail, are important. They bring efficiency and long-term capacity. But they cannot replace the flexibility of a three-wheeler. They cannot reach into narrow streets, respond instantly to demand or provide that crucial last-mile connection.

That is why, even in a city that has invested heavily in modern rail, Dhaka still runs on three wheels.

For Sri Lanka, the lesson is not simply about what could have been built, but about what should be better managed and valued.

The three-wheeler industry does not need to be politicised at every turn. It needs steady regulation — clear fare systems, proper licensing, safety standards — alongside encouragement and recognition. It needs to be seen as part of the solution to urban transport, not as a side issue.

Because for thousands of drivers, it is a livelihood. And for millions of passengers, it is the most immediate and reliable form of mobility.

The tuk-tuk may not feature in grand policy speeches or infrastructure blueprints. It does not run on elevated tracks or attract international attention. But on the ground, where daily life unfolds, it continues to do what larger systems often struggle to do — show up, adapt and keep moving.

And after watching Dhaka’s streets — crowded, relentless, yet functioning — that small, three-wheeled vehicle feels less like something to argue over and more like something to get right.

(The writer is an Attorney-at-Law with over a decade of experience specialising in civil law, a former Board Member of the Office of Missing Persons and a former Legal Director of the Central Cultural Fund. He holds an LLM in International Business Law)

 

by Sampath Perera recently in Dhaka, Bangladesh 

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Dubai scene … opening up

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Seven Notes: Operating in Dubai

According to reports coming my way, the entertainment scene, in Dubai, is very much opening up, and buzzing again!

After a quieter few months, May is packed with entertainment and the whole scene, they say, is shifting back into full swing.

The Seven Notes band, made up of Sri Lankans, based in Dubai, are back in the spotlight, after a short hiatus, due to the ongoing Middle East problems.

On 18th April they did Legends Night at Mercure Hotel Dubai Barsha Heights; on Thursday, 9th May, they will be at the Sports Bar of the Mercure Hotel for 70s/80s Retro Night; on 6th June, they will be at Al Jadaf Dubai to provide the music for Sandun Perera live in concert … and with more dates to follow.

These events are expected to showcase the band’s evolving sound, tighter stage coordination, and stronger audience engagement.

With each performance, the band aims to refine its identity and build a loyal following within Dubai’s vibrant nightlife and event scene.

Pasindu Umayanga: The group’s new vocalist

What makes Seven Notes standout is their versatility which has made the band a dynamic and promising act.

With a growing performance calendar, new talent integration, and international ambitions, the band is definitely entering a defining phase of its journey.

Dubai’s music industry, I’m told, thrives on diversity, energy, and audience connection, with live bands playing a crucial role in elevating events—from corporate shows to private concerts. Against this backdrop, Seven Notes is positioning itself not just as another band, but as a performance-driven musical unit focused on consistency and growth.

Adding fresh momentum to the group is Pasindu Umayanga who joins Seven Notes as their new vocalist. This move signals a strategic upgrade—not just filling a role, but strengthening the band’s front-line presence.

Looking beyond local stages, Seven Notes is preparing for an international tour, to Korea, in July.

Bassist Niluk Uswaththa: Spokesperson for Seven Notes

According to bassist Niluk Uswaththa, taking a band abroad means: Your sound must hold up against unfamiliar audiences, your performance must translate beyond language, and your discipline must be at a professional level.

“If executed well, this tour could redefine Seven Notes from a local band into an emerging international act,” added Niluk.

He went on to say that Dubai is not an easy market. It’s saturated with highly experienced, multi-genre bands that can adapt instantly to any crowd.

“To stand out consistently you need to have tight rehearsal discipline, unique sound identity (not just covers), strong stage chemistry, audience retention – not just applause.”

No doubt, Seven Notes is entering a critical growth phase—new member, multiple shows, and an international tour on the horizon. The opportunity is real, but so is the pressure.

However, there is talk that Seven Notes will soon be a recognised name in the regional music scene.

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