Features

Property tax: a new tax Sri Lanka is going to be introduced in 2027

Published

10 months ago

2025/09/19

Image courtesy City National Bank

Expanded budget deficits and continuous borrowing by successive governments pushed the Sri Lankan economy into a recession. These heavy borrowings placed a significant burden on the shoulders of today’s citizens. The previous government was compelled to seek assistance from the IMF to revive the economy, which led to increased tax rates, a broader tax base, and the introduction of new taxes. The present NPP government has introduced some tax revisions. However, it too must increase revenue in order to address the economic crisis and promote sustainable growth. This is why the country is going to introduce property tax in 2027. In other words, the government’s tax demand increases in the near future. This note is to provide a brief introduction on property tax that we will have to pay.

Property tax

Governments may impose various types of taxes, though some countries choose not to levy certain kinds. Property tax is no exception. After considering the taxation of income and expenditure, many countries also tax stocks of wealth. Such taxes may be imposed on individual pieces of property—payable by the owner and classified as impersonal in rem taxes (those imposed on objects or activities)—or on the total property holdings or net worth of a person, making them personal taxes.

When we hear the word property, the related concept of wealth also comes to mind. However, there is a distinction between property tax and wealth tax. Property tax generally applies to real property, while wealth tax is levied on total net wealth (all assets minus liabilities). Some countries, such as Spain, Switzerland, Norway, and France, impose both taxes simultaneously. Property tax, however, is widespread globally, though it remains relatively novel in Sri Lanka. Property tax is generally divided into two categories: real property taxes and personal property taxes, both of which are often referred to as ad valorem taxes (taxes based on the value of property).

Real property (realty) is defined as land and whatever is erected or growing on the land or permanently affixed to it. It also includes subsurface features such as mineral deposits. Real property taxes are levied on the ownership of land and buildings, with the tax base being the property’s monetary value. Because real estate cannot be moved or hidden, and its ownership is a matter of public record, it provides governments with a highly reliable tax base. These taxes are typically assessed annually, based on market value as determined by local authorities. Elected or appointed officials are responsible for valuing the property and notifying owners of the assessed amount. A distinctive feature of real property taxes is that the tax rate is set each year according to the jurisdiction’s revenue needs for that budget cycle.

Personal property, in contrast, refers to any asset that is not real property. Like real estate, personal property is taxed based on its value, but unlike real property, its value is usually not assessed by government officials. Instead, individuals and businesses must determine the value of their taxable assets and report it to the tax assessor. Taxable personal property generally falls into three categories: household tangibles, business tangibles, and intangibles. Household tangibles commonly taxed include automobiles, recreational vehicles, pleasure boats, and private aircraft. Business tangibles include inventory, furniture, fixtures, machinery, and equipment. Intangible assets most often subject to tax are marketable securities such as stocks and bonds.

Determination of tax rate

An individual’s property tax liability is calculated as the product of the tax rate and the property’s assessed value—the value assigned by the local authority. In most cases, jurisdictions (local authorities) attempt to align assessed values with market values. However, if a property has not been sold recently, its market value may be unknown, requiring the tax authority to estimate based on the market values of comparable properties. The degree of divergence between market and assessed values depends on the accuracy of the estimating process.

Empirical evidence shows that many jurisdictions perform poorly in assessing property values, leading to situations where properties subject to the same statutory tax rate face vastly different effective tax rates. In the United States, for example, thousands of jurisdictions operate their property tax systems independently. None include a comprehensive measure of wealth in their tax base, and there are significant differences in what types of property are excluded and what tax rates are applied.

Some communities grant preferential treatment to new business facilities to encourage investment, while few tax personal wealth beyond homes. Assets such as cars, jewelry, and financial securities are usually exempt. Generally, structures and the land on which they are built form the core of the property tax base, though effective rates vary widely across jurisdictions.

For businesses, calculating property taxes can appear complex, but with the right tools and a sound understanding of the fundamentals, the process becomes more manageable. The cornerstone is determining the assessed value, typically carried out by a government assessor who evaluates factors such as land, buildings, and improvements. Equally important is establishing the tax rate, commonly referred to as the mill rate. The mill rate represents the amount of tax owed per Rs.1,000 of assessed property value and is determined annually by local authorities in line with revenue requirements.

Reasons to pay

There are several theoretical bases for imposing taxes. One rationale for wealth taxation is the benefit principle: public services, such as road modernisation, increase the value of real property and should therefore be financed by property owners. This argument can be traced back to seventeenth-century natural-law theorists, who viewed one of the state’s primary functions as the protection of property. From this perspective, property owners are obliged to contribute toward the state’s expenses. Logically, such reasoning supports a comprehensive tax base that includes all forms of property—both tangible and intangible.

Property tax can also be understood as a user fee, since communities rely on it to finance essential public services such as education, healthcare, and policing. In this sense, the tax is not merely a levy but the cost of accessing and maintaining vital services that benefit society as a whole. Beyond theory, Sri Lanka faces practical imperatives for broadening its tax base and strengthening its fiscal framework. Expanding property taxation could play a critical role in addressing the country’s debt crisis while fostering long-term economic growth and development.

Impact, incidence and effects of the tax

The impact of a tax refers to its first point of contact with taxpayers—that is, the person who initially pays it. In the case of property tax, the legal liability usually falls on the property owner. Local governments assess the value of land and improvements, and the owner must pay tax based on this assessment. Thus, the immediate burden is borne by the property holder, whether an individual, household, or business. Because property taxes influence both investment and location decisions, most European countries allow businesses to deduct them: of the 27 that levy property taxes, 23 permit deductions from corporate income, thereby reducing the effective burden and encouraging investment.

The incidence of a tax, however, concerns who ultimately bears the economic burden after adjustments in behavior, prices, and markets. Although property owners are legally responsible, the real incidence may shift. Landlords may raise rents to pass part of the burden to tenants, while businesses may shift costs forward to consumers through higher prices or backward to workers through lower wages.

The question of who ultimately bears the burden of the property tax has long been debated. Three main perspectives can be identified: the traditional view, the capital tax view, and the excise-on-capital view. Under the first, property tax is seen as an excise tax on land and structures.

Since the supply of land is fixed, landowners cannot escape the tax and thus bear the full burden. In many cases, the tax becomes capitalized into land values: prospective buyers discount the purchase price to account for future tax liabilities. As a result, landowners effectively bear the tax indefinitely. Capital tax view holds that if property tax is treated as a uniform tax on all capital, then the entire burden falls on capital owners.

Since capital income is concentrated among higher-income households, property tax in this view is progressive, contradicting the traditional view. According to final view property tax rates, in practice, vary by jurisdiction and property type, meaning it functions as a set of excise taxes on capital. Capital tends to migrate from high-tax to low-tax areas until after-tax returns equalize. This reallocation affects returns to other factors of production depending on their mobility. Land, being immobile, cannot escape the tax, while less mobile forms of capital are more likely to bear the burden. Over the long run, even the overall supply of capital may respond to property tax rates.

Property taxes have a range of economic and social effects. Firstly property taxes provide a stable and predictable source of income for local governments, often funding essential services such as education, infrastructure, and public safety. Secondly, when designed well, property taxes can contribute to equity by taxing wealth more directly than income or consumption taxes. However, poorly assessed property taxes can be regressive, disproportionately affecting those with lower incomes relative to property value. Thirdly, property taxes on land are often considered efficient since land is immobile and cannot be hidden, making it a strong tax base.

Taxes on improvements (buildings) can, however, discourage investment in property development or maintenance. Fourthly, high property taxes may influence housing decisions, business location choices, or patterns of land use. Preferential rates or exemptions can also create distortions, such as attracting businesses or encouraging certain types of development. Fifthly, because property taxes are highly visible and often unpopular, they can provoke resistance from taxpayers, influencing local politics and policymaking.

Sixthly, as a tax on real estate, property taxation can distort economic choices. It may encourage substitution away from real property toward other inputs, or toward consumer durables in states where personal property is taxed less heavily. This can discourage housing production and consumption. Finally, property taxes may also affect location decisions. Since rates vary across communities, industries that rely heavily on real estate tend to locate in lower-tax areas. At the same time, businesses also weigh the public services financed by local property taxes when deciding where to operate.

Empirical evidence further illustrates these dynamics. In 2011, China introduced property taxes in Shanghai and Chongqing, targeting second homes and high-end properties. A 2021 study found little effect on housing prices, mainly due to the narrow tax base, low rate, and generous exemptions. By contrast, a German study (March 2021) found that higher property taxes were fully passed on to rental prices within three years, though the pass-through was weaker when housing supply was inelastic. More broadly, property taxes tend to be capitalized into purchase prices, lowering what buyers are willing to pay, while in rental markets, part of the burden may also be shifted to tenants.

Decisions to be made

Sri Lanka is expected to introduce a property tax in 2027. However, several key decisions must be made before implementation. First, which level of government will be responsible for imposing the tax? In many countries, property tax is administered by local authorities. In Sri Lanka, it must be decided which layer of government will have the authority to levy and collect the tax.

Second, the scope and rate of taxation must be determined. Property can take many forms, but for real property, land and buildings are the main categories. If buildings are included, should the tax apply to all types—including residential houses? Since houses vary greatly in size, facilities, and value, questions arise as to whether very small houses should be taxed. In some countries, only second or additional properties are taxed. With respect to land, it must be decided whether all types of land will be taxed. For example, paddy land presents a special case, as profit margins in paddy farming are often extremely low, or even negative. This calls for certain exemptions, deductions, or abatements. Common exemptions internationally include those for non-profit organizations, historical properties, or primary residences (homesteads).

Third, the treatment of depreciation and improvements must be clarified. Property assessors typically evaluate factors such as age, condition, and maintenance in determining depreciation, as well as any improvements or renovations that increase value. Since different assessors may apply varying standards, this can result in inconsistencies in assessed values.

Why is the property tax so unpopular?

Several explanations have been offered. Because housing transactions occur infrequently, property tax assessments are based on estimated values. If these valuations are inaccurate or biased, the tax is seen as unfair. The tax is also highly visible: unlike income and payroll taxes, which are withheld from wages and remitted by employers, property taxes are typically paid directly by homeowners, often in large quarterly or annual installments. These lump-sum payments can feel like a financial shock. Some property owners, particularly the elderly, do not have enough cash to make property tax payments and may therefore be forced to sell their homes. A high property tax rate also affects property values. Other things equal, a heavily taxed property will sell for less. This means that while current owners may feel burdened, new buyers are not necessarily worse off once the lower purchase price is taken into account.

One ambitious reform would be to replace the property tax with a personal net worth tax. This tax would be levied on the difference between the market value of all a taxpayer’s assets and liabilities. Unlike the property tax, such a system reflects a truer measure of ability to pay, since debts can be deducted. It would also allow for exemptions and progressive rates. However, because people often hold assets and debts across multiple jurisdictions, a net worth tax would need to be administered at the federal level.

Conclusion

Alongside the need to address technical and political barriers to reform, the construction of more effective property tax systems also depends on improving levels of tax compliance. A key foundation of compliance is the presence of credible and fair enforcement: few taxpayers will willingly comply if they believe there are no consequences for evasion or if they suspect their neighbours are not paying their fair share.

It is well known that taxes are unpopular. However, Sri Lanka needs to broaden its revenue base and is preparing to introduce a new tax in the near future. In the past, widespread corruption undermined public trust, and many citizens paid taxes reluctantly, while some were able to evade them altogether. Today, with corruption more effectively controlled and public confidence in government improving, the conditions are more favourable for introducing a property tax. Still, such a measure must be implemented carefully to maintain public support and fairness.

Importantly, property taxes are widely considered the least harmful form of taxation, as they have the smallest negative impact on household and business economic decisions compared to most alternatives. For example, in 2010 the OECD ranked tax instruments by efficiency, from most to least: property taxes, value-added tax (VAT), personal income tax, and corporate income tax.

by Dr. Tikiri Nimal Herath✍️
Emeritus Professor
tikiriherath@gmail.com

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Features

Trump’s tariffs, AKD’s gazette and Sri Lanka’s diplomatic slumber

Published

2 days ago

2026/07/17

Thilina Walpola

“We are rather respectable in Colombo. We go to bed fairly early, and we remain there till morning. “

According to Sri Lanka’s diplomatic folklore, the late S.W. R. D. Bandaranaike uttered these words while explaining the reasons for Sri Lanka’s abstention on the UN resolution condemning the Soviet invasion of Hungary. Apparently, SWRD’s foreign ministry officials were asleep at home when the diplomatic cable seeking instructions was received from New York. In those days, there were no cell phones, Internet, or even fax or telex machines. The diplomatic cables were sent through post offices. Decoding them was a slow and time-consuming process. Thus, the government could not provide appropriate instructions to our mission in New York in time, and the Sri Lankan delegation abstained on that sensitive UN vote.

Sri Lanka’s Absence from Section 301 Consultations

But then, how does one explain Sri Lanka’s absence from the crucial bilateral consultation held in Washington by the Office of the United States Trade Representative (USTR) during March-April on “Forced Labour” under the Section 301 of the US Trade Act of 1974? Didn’t our foreign and trade ministries send appropriate instructions to Washington in time? Even if the instructions from the foreign ministry were transmitted to our embassy in Washington by pigeon carriers, there was enough time for Sri Lanka to participate in those meetings.

In March, the USTR initiated these 301 investigations on 60 trading partners, and invited all of them for confidential consultations. Out of the 60, 46 participated in these consultations. Sri Lanka was not one of them. Other countries that didn’t participate in these consultations included China, Russia, and Venezuela! In addition to that, the Section 301 Committee conducted a public hearing with interested parties on April 28 and 29. Washington-based diplomats, representatives from few trade ministries as well as representatives from many foreign trade associations and chambers participated in these hearings. Sri Lanka was once again conspicuously absent.

As a result, when the USTR published the proposed forced labour tariffs on June 2nd, Sri Lanka ended up with a 12.5% duty. Pakistani and Indonesian diplomats participated in these consultations and took appropriate follow-up measures, and managed to enter the 10% duty category. As even a threat of a modest tariff hike could disrupt supply chains and reduce competitiveness, particularly in an industry such as garments, I discussed this issue on 15 June and underscored the importance of Sri Lanka’s participation at the next hearing, which was scheduled to be held from July 7th .

Awakening from Diplomatic Slumber and AKD’s Gazette

Fortunately, Sri Lanka finally awoke from weeks of diplomatic slumber, and Ambassador Mahinda Samarasinghe participated in the public hearing on 9 July, and promised, “…. · We have agreed to the text in our negotiations with the USTR on forced labour, …. The gazette as we speak is being printed and I’m getting the gazette tomorrow morning, and the gazette will be shared with USTR as I get it“.

As promised, President Anura Kumara Dissanayake issued a gazette on 10 July banning the imports of goods produced by forced labour. These new regulations are very similar to what Pakistan and Indonesia enacted in April, after their consultations with USTR in March. Why couldn’t we do it in April? Why did we wait till the very last minute?

Challenges ahead

“War is too important to be left to generals alone,” is a famous saying attributed to former French Premier Georges Clemenceau. Similarly, monitoring our main markets is too important to be left to diplomats alone. The United States is the largest single-country market for Sri Lanka. Therefore, Sri Lankan trade chambers and associations should become more proactive in these markets and participate in these events. For example, the chairman of the Pakistani apparel exporters association participated in the April hearings. Similarly, representatives from the Indian Agricultural and Processed Food Products Export Development Authority, the Federation of Indian Chambers of Commerce and Industry, the Confederation of Indian Industry, and Reliance Industries also participated in July hearings. At an event where each speaker is given only five minutes (strictly enforced), having a number of speakers from a country is an advantage. The presence of industry representatives in these kinds of events also help them understand the market dynamics and the future challenges. This is important, particularly because there will be many more challenges with Trump’s tariffs.

With the gazette issued on 10 July, Sri Lanka has imposed a prohibition on the importation of goods produced with forced labour. Now, the challenge will be to effectively enforce the prohibition. And what are the goods produced with forced labour? The USTR list only focuses on aluminum, cotton, electronics, lithium-ion batteries, rice, and tobacco. However, according to the U.S. Department of Labour, the list is much longer. Hence, this list may change continuously during the next two years and tariffs may fluctuate once again.

So, this is definitely not the time to slumber.

(The writer, a retired public servant, can be reached at senadhiragomi@gmail.com)

by Gomi Senadhira ✍️

Features

Tales of Mystery and Suspense 10 Casino for Sale

Published

2 days ago

2026/07/17

Thilina Walpola

After the overwhelming grotesquerie of J K Rowling’s latest Cormoran Strike novel (written, I should have noted, as the others were, under the pseudonym Robert Galbraith), I thought I should return to the world of fun, and also a much shorter description since this thriller moves quickly without the layers of detail that Rowling engages in.

I then move to the second comic thriller by Caryl Brahms and S J Simon. This, their second story to feature Vladimir Stroganoff and Adam Quill, was Casino for Sale, as lunatic a romp as the first, though without the emphasis on the ballet that characterized A Bullet in the Ballet.

This one begins with the impresario Stroganoff buying a casino cheap from Baron Sam de Rabinovich, only to find that it was a rundown place, not the grand casino of La Bazouche, a resort on the Frenc+h Riviera, as he had initially thought. The grand one belonged to Lord Buttonhooke, and Stroganoff could not compete, until he thought of bringing the Ballet Stroganoff to the casino – which of course leads to Buttonhooke deciding to have ballet performances in his Casino too.

Stroganoff invites Quill to visit him, which Quill decides to do since he has left Scotland Yard, having come into a legacy. No one believes this, and he has to face questions as to what he did to have been sacked, with sympathy for having been found out.

Caryl and Simon

The day he arrives in La Bazouche there is a murder, of a vitriolic critic called Citrolo, in Stroganoff’s office. He had been going to write a damning review of the opening night of the ballet and Stroganoff, when he realizes Citrolo cannot be swayed, drugs him and dictates the review himself to the papers. He leaves Citrolo sleeping and finds him shot the next morning, whereupon he decides to muddy the waters and leave a suicide note and lots of other murder weapons. So much overkill, as it were, of course ensures that he is arrested.

But the excitable French detective who makes the arrest follows up his suggestion that Buttonhooke was also involved, and so the two casino owners find themselves in cells next door to each other, with the detective Gustave quite happy to provide creature comforts for a fee.

Quill decides he must investigate, and finds Gustave most cooperative, since he has a laid back attitude to work. So it is Quill that finds a notebook which makes it clear Citrolo is an accomplished blackmailer, and that there are lots of possible murderers, including Stroganoff’s croupier, who was crooked, Rabinovich, who was now working for Buttonhooke, a confidence trickster called Kurt Kukumber, whose prospectus for a dud gold mine was found in the office and Prince Alexis Artishok who was engaged in a deal to buy diamonds from the ballerina Dyra Dyrakova.

Stroganoff had been trying to get Dyrakova to dance for him, but having done so previously she had refused. But then to Stroganoff’s chagrin she agreed to dance for Buttonhooke. The clearly crooked Artishok had told Buttonhooke’s mistress Sadie Souse, who was not very bright, that Dyrakova possessed diamonds she was willing to sell cheap, and Sadie was determined to have them.

Quill meanwhile finds out that there was a secret passage to Stroganoff’s office, the obvious solution to what had begun as a locked room mystery, and that this was known by almost everyone apart from Stroganoff himself. And then Rabinovich is murdered, just after Gustave had released his two original suspects, leading him to blame Quill for having insisted on that and thus allowing them to kill again.

Soon afterwards Dyrakova arrives, and the town is full of posters announcing that she will appear in the casinos, elaborate posters for either one, since Stroganoff is determined that she will dance for him, and if she does not come willingly, he has devised a scheme to make her do so unwillingly. So, though Buttonhooke has her taken off to his yacht immediately she arrives at the station, Quill along with Arenskaya gets her into a launch and to Stroganoff’s casino, where she performs to tumultuous applause, not knowing for whom she is dancing.

When Quill asked her about the diamonds, she said she had sold them long ago, and that gave Quill the solution to the mystery. Rabinovich had known about this, and Artishok had killed him to prevent Sadie learning it from him, he had killed Citrolo who had recognized him for an accomplished card sharper, not a Russian prince at all. But before he is arrested, he gets away in a boat, and the police launch that pursues him is on the point of catching him up when it runs out of petrol.

Again, lots of excitement, and entertaining references – Gustave grows marrows – and if not quite as brilliant as its predecessor, Casino was certainly a delightful read.

Features

The challenge of being positive about SAARC

Published

3 days ago

2026/07/16

Sahan Weerasooriya

The RCSS forum addressed by SAARC Secretary General Ambassador Md. Golam Sarwar in progress. (Pic courtesy RCSS)

It was a few years back that a former President of Sri Lanka took it on himself to pronounce SAARC ‘dead’. Since then there have been other sections of Sri Lankan opinion that have joined the critics of SAARC and taken the solemn stance that SAARC has indeed died what may be called a natural death.

Their fatalism is understandable. SAARC has failed to meet at heads of government or state level for the past several years to take the SAARC process notably forward. Regional cooperation has more or less been only an appealing idea. No substantive concrete projects have taken off to make the idea a hard reality. ‘Inner paralysis’ seems to be SAARC’s lot. Hence the fatalism in these circles.

However, being one of the worst cash-strapped regions of the world and a teemingly populated one with people virtually left to their devices, what choices do the ‘SAARC Eight’ have other than to try their best to band together and continue with their cooperation efforts, however small they may be?

There is no escaping the mounting debt trap for many of these countries and bankrupt Sri Lanka is a glaring example, but ‘throwing in the towel’ and abandoning themselves entirely to the diktats of the strongest economies and their agencies will prove a ‘living death’ for many countries in the SAARC fold.

The gains may be meagre but giving-up on SAARC cooperation in full would prove self-defeating for the organization and South Asia. Right now, the collective intention ought to be to salvage what the region could from the tenuous cooperative efforts. Moreover, such initiatives could go some distance to generate a degree of goodwill among the Eight and help in sustaining a dialogue process.

Given this backdrop it proved ‘a stich in time’ for the Regional Centre for Strategic Studies (RCSS), Colombo, to recently host the SAARC Secretary General Ambassador Md. Golam Sarwar to a round table discussion on the unifying potential of SAARC and its future possibilities, besides other related issue areas.

Held on June 24th and moderated by RCSS Executive Director and former ambassador Ravinatha Aryasinha, the forum brought together a vibrant, wide ranging audience comprising academicians, diplomats, senior public servants, civil society activists and many others. Following the presentation by Ambassador Golam Sarwar titled, ‘Reigniting SAARC: Achievements, Challenges and the Way Ahead’, a lively Q&A followed.

The above forum could be described as an act of lighting the proverbial ‘candle’ rather than ‘cursing the darkness.’ It surely is a ‘darkness’ that could be seen as daunting considering that the region’s pivotal powers, India and Pakistan, are failing to act in a spirit of accord but are engaged in bitter finger-pointing on a number of questions of vital importance to SAARC.

On the other hand, what is the rest of the region doing to bring the above sides together? It is disappointing that to date the rest of SAARC has failed to launch a major diplomatic drive to bring peace between the feuding regional heavyweights. It needs to act without delay and establish its earnestness and this effort would need to prove SAARC’s staying power in the unfolding months and even years.

In assessing SAARC’s seeming failure local opinion in particular has failed to factor in what could be described as weak leadership. Since Sheikh Mujibur Rahman of Bangladesh, the founding father of SAARC, the region has failed to produce a visionary leader who could advance the SAARC cause with charisma and drive.

Among other reasons, weak leadership accounts considerably for the faltering and stuttering status, as it were, of SAARC. Badly needed are leaders who could go the extra mile, think less of narrow national interests and work diligently towards the collective well being of the region but SAARC’s millions of ordinary people have been made to wait in vain for leaders of such stature. Instead, they have been burdened with politicians who seem to be relishing the apparently moribund state of SAARC.

Looking back, it could be said that it was the dynamic leadership factor that led to the launching of the Non-Aligned Movement and for its sustenance for a few decades. True, it could be seen in some quarters that NAM is no more, but as in the case of SAARC, the former too has been unfortunate to be burdened over the years with politicians who lack the vision and drive to unflaggingly advance the fortunes of the South. NAM and SAARC lack the dynamism and vision of leaders of the stature of Jawaharlal Nehru, for example, to give them the required guidance and intellectual depth.

The reasons are complex for there not being among us currently political leaders with the vision and the steadfast commitment to advance the legitimate interests of the South. However, it could be stated with conviction that the majority of Southern leaders have too easily caved in to the demands of the global North and its financial agencies.

These leaders have failed to see, for instance, that the largely market economy oriented Northern governments would not view with favour a centrist economic model that attaches priority to the interests of the dis-empowered publics of the South. This realization ought to have dawned on the current government in Sri Lanka, for instance, some while ago but it has no choice but to abide by IMF dictates since economic survival at present is unthinkable without the latter’s succour.

Accordingly for SAARC this should be the time for some soul-searching. Priority needs to be attached to ending the feuding between India and Pakistan since at present the material fortunes of the region hinge largely on these regional giants giving peaceful relations among them a try. This is no easy challenge to meet but some daring, visionary diplomacy needs to take hold among the rest of SAARC.

There is some sense in SAARC bringing the peoples of the region together through programs that address their best collective interests. A meeting of minds among SAARC nations could enable SAARC and its agencies to build a region-wide people’s movement for progressive political and economic change that could in turn lead to the region’s political leaders sensitizing themselves more to the neglected needs of their publics.

However, the time is ‘now’ for the initiation of these progressive changes and the voice of SAARC well wishers would need to drown out those of their critics.