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Rating President’s visit to India

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President Dissanayake with Indian PM Modi

by Neville Ladduwahetty

Sri Lanka’s credit ratings are somewhat positive, according to Fitch and Moody’s, but the general rating of what was achieved during President Anura Kumara Dissanayake’s India visit is mixed. Nothing of much significance was achieved in respect of Sri Lanka’s interests in comparison with what India gained.

The outcome of President Dissanayake’s visit could be summarised as the signing of two MOUs and the 32 topics that were discussed and incorporated in the Joint Statement (JS) between the two leaders. One MOU is on training public officials and the other is on abolishing double taxation.

ISSUES RELATING to the JOINT STATEMENT

President Dissanayake “acknowledged the positive and impactful role of India’s development assistance to Sri Lanka … and India’s decision to extend grant assistance for projects that were originally undertaken through Lines of Credit, thereby reducing the debt burden of Sri Lanka” (The Island, December 17, 2024),

While such measures benefit Sri Lanka as a whole, projects such as “the timely completion of ongoing projects such as Phase III and IV of Indian Housing Project, 3 Islands Hybrid Renewable Project … and projects for the Indian Origin Tamil community, Eastern Province are specific to the Tamil community, even though the JS also refers to “High Impact Community Development Projects across Sri Lanka and the solar electrification of religious places” (Ibid).

In addition, topic 12 is titled “Building Connectivity”. Topic 12 (1) states: “While expressing satisfaction at the resumption of the passenger ferry service between Nagapattinam and Kankesanthuria, they agreed that officials should work towards the early recommencement of the passenger ferry service between Rameshwaram and Talaimannar” (Ibid).

As the sub-title states, “Building Connectivity” the benefits of these, so called development projects would be to boost the economic growth in the 5 Southern States, namely, Kerala, Karnataka, Tamil Nadu, Andhra Pradesh and Telangana in India and the predominantly Tamil regions in Sri Lanka. The outcome of this skewed growth will serve India’s interests but it will be a fetter to the inclusive growth that the NPP has been harping on during and after parliamentary elections. Furthermore, it was the appeal of this slogan that caused the people to respond the way they did in both elections, and the NPP government should not disappoint the public.

The concept guiding this strategy is the misguided logic that Sri Lanka’s economic growth could be ensured by hitching Sri Lanka’s wagon to the rapidly growing economy of India. Since an array of influential individuals, political parties and think-tanks are convinced by this notion, it appears that the NPP government has fallen victim to those compulsions. However, the disparities between the 5 Southern Indian States and Sri Lanka are such that if most of what is in the JS is adopted by the Sri Lankan government, the outcomes would be not only disappointing but also detrimental to Sri Lanka’s interests to foster an inclusive society.

DISPARITIES BETWEEN 5 SOUTHERN INDIAN STATES and SRI LANKA

TRADE: The JS 17 states: “Underscoring the pace of economic growth and opportunities in India as the growing market size and its potential for enhancing trade and investment for Sri Lanka, both leaders agreed that it is now opportune to enhance the trade partnership by committing to (i) Continuing discussions on the Economic & Technological Cooperation Agreement (ECTA)(ii) Enhance INR-LKR trade settlements between the two countries ….”

While the need to enhance Trade and Investments cannot be denied, the existential realities are such that the expectations are not achievable because of the inherent disparities. For instance, the Imports from India are around $ 4.5 billion and $3.58 billion, depending on the source, while the exports from Sri Lanka to India were only $ 850 million in 2022. Other disparities are that while the per capita GDP of the five Southern States varies from $ 2,500 to low $ 3,000, the per capita GDP of Sri Lanka is more than $ 3,800. Furthermore, the cost of labour in India is lower than in Sri Lanka. This coupled with the fact that nearly 50% of labour in India is engaged in agriculture as opposed to about 30% in Sri Lanka, besides the lower cost of agricultural inputs in India, makes the cost of production in India lower than in Sri Lanka. Consequently, imports from India to Sri Lanka would remain significantly higher than exports from Sri Lanka, thus making the prospect of “enhancing trade and investment for Sri Lanka” JS, 17) a myth.

INVESTMENTS: JS 17 III states “Encourage investments in key sectors in Sri Lanka to enhance its export potential”.

“In the fiscal year 2023, the Reserve Bank of India (RBI) granted permission for international trade for invoicing and payments to be conducted in Indian Rupees. This move allowed for exports and imports to be denominated and invoiced in Rupees, with trade transactions settled in the currency. The RBI’s decision aims to stimulate global trade growth, particularly Indian exports, while also working towards the internationalisation of the Indian Rupee” (Ceylon Today, February 28, 2024).

“Last year, Sri Lanka officially recognised the Indian Rupee as a designated currency, enabling trade settlements between the two countries to be conducted in rupees” (Ibid).

“Currently, Indian Investors typically engage in investments in Sri Lanka using international currencies like the US Dollar. Since this involves additional complexities and conversion costs, the transition to Rupee investments is expected to streamline market entry for Indian companies, with the Ministry of External Affairs reportedly advocating for this transition” (Ibid). The consequence then would be for Indian companies to deploy cheap Indian labour, thus displacing Sri Lankan labour; a fact that would particularly apply to the IT sector.

The report finally states: “The push for rupee investments aligns with India’s broader vision to elevate its currency to the status of hard currency in the future, potentially leading to inclusion in the IMF’s SDR basket and bolstering its foreign exchange reserves. This move is anticipated to benefit Indian firms with significant investments in Sri Lanka, such as the Adani Group’s development projects in the country’s port and power sector” (Ibid).

THUS, the compulsion to convert TRADE and INVESTMENTS to Indian rupees is entirely driven for the benefit of India.

MPACT of UPI on TOURISM

A former State Minister is reported to have stated: “The UPI is beneficial to both countries. If you look at the events in Sri Lanka and what took place one and a half years ago, it mainly started out as a foreign exchange crisis mainly due to lack of dollars. So, we have to ensure that our dollar dependency is reduced. Now, for example, our biggest tourist market is from India and if we can collect the tourist remittances from India and we import about $ 5.5 billion worth of goods from India and we use those …to pay in Indian rupees for the Indian imports, then we will reduce our dollar dependence. And it also becomes very flexible and very easy for the Indians to travel to Sri Lanka and then they pay in Indian rupees”. (Sunday Island, February 25, 2024).

Despite this misguided understanding of the former State Minister, the fact is that out of a total of 1.48 million tourists that arrived here in 2023, Indians numbered only 302,844. This represents 20 % of the total. The revenue from tourism for the year 2023 was USD 2.1 billion. Therefore, on an average, earnings from Indian tourists would be 20% of USD 2.1 billion. Although this amounts to only USD 420,000, since Indian tourists pay in Indian rupees, UPI favours the Indian tourist over other tourists who pay in international currencies. Consequently, at current levels of tourist arrivals from India, Sri Lanka is at a loss of $ 420,000 and growing because of UPI (ECONOMYNEXT, January 1, 2024 & January 5, 2024).

INVESTMENTS IN INDIAN RUPEES

When Sri Lanka calls for competitive bids for projects it is understood that bids would be based on international currencies so that all bids are evaluated on a level playing field. If an Indian investor such as Adani or any other, is given a special privilege and permitted to submit proposals based on Indian rupees which is still not recognised as an internationally recognised currency, it would amount to an act of discrimination. Furthermore, it would amount to an unsolicited offer that puts other bidders at a disadvantage.

In addition, any dollar inflows into Sri Lanka would add to the reserves of Sri Lanka and could be used for debt payments. On the other hand, any Indian rupee inflows, even if considered to be part of Sri Lanka’s reserves, would serve little or no purpose for international transactions.

Therefore, if Sri Lanka fails to recognize these implications and caves under Indian pressure to recognize Indian Rupees for investments in Sri Lanka for the sake of connectivity, it would be a grave injustice to the sovereign rights and independence of the People of Sri Lanka with consequences to Sri Lanka’s relations with other countries.

FISHERIES ISSUES

Topic 27 of the JS states: “Acknowledging the issues faced by the fishermen on both sides and factoring the livelihood concerns, the leaders agreed on the need to continue to address those in a humanitarian manner”. It is extremely disappointing that Sri Lanka’s President capitulated and agreed to address issues relating to fisheries in a “humanitarian manner” when what is at state is the impact on the livelihood of the Sri Lankans engaged in fishing and the rampant destruction of Sri Lanka’s resources by resorting to bottom trawling that belong to the whole nation driven by the greed of the politically backed Indian fishing community.

According to the Northern Province Fisheries Association Chief M.V. Subramanium the financial loss to Sri Lanka amounts to Rs. 900 Billion (approximately USD 3.0 Billion) annually due to pillage by Indian fishing vessels operating illegally in Sri Lankan waters. Similarly, it costs Indonesia and Malaysia annually, $2 Billion and $1,4 Billion respectively from illegal fishing.

The NPP Government must get real and stop attempts to explore “humanitarian” approaches and seek the assistance of the International Court of Justice to establish International Maritime boundaries and Reparations for the damages inflicted because no amount of talking would resolve this issue.

CONCLUSION.

Issues of consequence to Sri Lanka presented in the Joint Statement (JS) following the inaugural visit of Sri Lanka’s President to India are: No double taxation; Enhancing Trade with India; ECTA; Use of Indian Rupees for investments by Indian companies; Use of Unified Payments Interface (UPI) and its impact on tourists; Fisheries Issues. As far as these issues are concerned India the gain to India far outweighs gains to Sri Lanka. As for issues relating to Fisheries, the outcome was a disaster because of the misguided notion that issues relating to it could be resolved in a “humanitarian manner”. Therefore, the collective rating has to be that what was achieved during the President’s visit was far from hoped for expectations.

Another issue that is of relevance is the practice of Governments to grant aid projects to specific communities as reflected in the JS. This habit undermines the much touted slogan of this Government to foster an inclusive Sri Lankan society. This Government has to vigorously oppose the practice of gaining advantages by exploiting “division”; a practice that that continues to haunt Sri Lanka .



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Illegal solar push ravages Hambantota elephant habitat: Environmentalist warns of deepening crisis

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Land earmarked for the project

A large-scale move to establish solar power plants in Hambantota has triggered a major environmental and social crisis, with more than 1,000 acres of forest—identified as critical elephant habitat—cleared in violation of the law, environmental activist Sajeewa Chamikara said.

Chamikara, speaking on behalf of the Movement for Land and Agricultural Reform, said that 17 companies have already begun clearing forest land along the boundaries of the Hambantota Elephant Management Reserve. The affected areas include Sanakku Gala, Orukemgala and Kapapu Wewa, which are known to be key elephant habitats and long-used movement corridors.

He said that what is taking place cannot be described as development, but rather as a large-scale destruction of natural ecosystems carried out under the cover of renewable energy expansion.

According to Chamikara, the clearing of forests has been carried out using heavy machinery, while large sections have also been deliberately set on fire to prepare the land for solar installations. He said that electric fences have been erected across wide stretches of land, effectively blocking elephant movement and fragmenting their natural habitat.

“These forests are not empty lands. They are part of a living system that supports wildlife and nearby communities. Once destroyed, they cannot be easily restored,” he said.

The projects in question include a 50 megawatt solar development undertaken by five companies and a larger 150 megawatt project implemented by 12 companies. The larger project is reported to be valued at around 150 million US dollars.

Chamikara stressed that these projects are being carried out in a coordinated manner and involve extensive land clearing on a scale that raises serious environmental concerns.

He further alleged that certain companies had paid about Rs. 14 million to secure support and move ahead with the projects. He said this points to a troubling failure of oversight by state institutions that are expected to protect forests and wildlife habitats.

“This is not only an environmental issue. It is also a serious governance issue. The institutions responsible for protecting these lands have failed in their duty,” he said.

Chamikara pointed out that under the National Environmental Act, any project of this scale must receive prior approval through a proper Environmental Impact Assessment process.

He said that clearing forest land before obtaining such approval is a direct violation of the law.

He added that legal requirements relating to archaeological assessments had also been ignored. Under existing regulations, large-scale land clearing requires prior evaluation to ensure that sites of historical or cultural value are not damaged.

“The law is very clear. You cannot go ahead with projects of this nature without proper approval. What we are seeing is a complete disregard for legal procedure,” Chamikara said.

The environmental impact of these activities is already becoming visible. With their natural habitats destroyed, elephants are increasingly moving into nearby villages in search of food and shelter. This has led to a sharp rise in human-elephant conflict in several areas.

Areas such as Mayurapura, Gonnooruwa, Meegahajandura and Thanamalvila have reported increasing encounters between humans and elephants. According to Chamikara, more than 5,000 farming families in these areas are now facing growing threats to their safety and livelihoods.

 

He warned that farmers are being forced to abandon their lands due to repeated elephant intrusions, while incidents involving damage to crops and property are rising. There have also been increasing reports of injuries and deaths among both humans and elephants.

“This is turning into a serious social and economic problem. When farmers cannot cultivate their lands, it affects food production, income and rural stability,” he said.

Chamikara also raised concerns about the broader environmental consequences of clearing forests for solar power projects. While renewable energy is promoted as a solution to reduce carbon emissions, he said that destroying forests undermines that goal.

“Forests play a key role in absorbing carbon dioxide. When you clear and burn them, you are increasing emissions, not reducing them. That defeats the purpose of promoting solar energy,” he explained.

He added that large-scale deforestation in dry zone areas such as Hambantota could also affect local weather patterns and reduce rainfall, which would have further negative impacts on agriculture and water resources.

Chamikara called for a shift in policy, urging authorities to focus on more sustainable approaches to solar power development. He said that rooftop solar systems on homes, public buildings and commercial establishments should be given priority, as they do not require clearing large areas of land.

He also recommended that solar projects be located on degraded or abandoned lands, such as areas affected by past mining or other low-value lands, rather than forests or productive agricultural areas.

“Renewable energy development must be done in a way that does not destroy the environment. There are better options available if there is proper planning,” he said.

Chamikara urged the Central Environmental Authority and the Department of Wildlife Conservation to take immediate action to stop ongoing land clearing and investigate the projects. He stressed that all activities carried out without proper approval should be halted until legal requirements are met.

He warned that failure to act now would lead to long-term environmental damage that could not be reversed.

“If this continues, we will lose not only forests and wildlife, but also the balance between people and nature that supports rural life. The consequences will be felt for generations,” he said.

The situation in Hambantota is fast emerging as a critical test of whether development goals can be balanced with environmental protection. As pressure grows, the response of authorities in the coming weeks is likely to determine whether the damage can still be contained or whether it will continue to spread unchecked.

By Ifham Nizam

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Why Mahatma Gandhi’s teachings need to be at the heart of conflict resolution

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Mahatma Gandhi

All credit to the Tamil Nadu government for taking concrete measures to perpetuate the memory of the renowned Mahatma Gandhi of India, who on account of his moral teachings stands on par with the likes of Socrates, Plato, Aristotle, Confucius and Jalaluddin Rumi, to name a few such all-time greats. The time is indeed ripe to draw the world’s attention to the Mahatma’s humanistic legacy which has resonated in the hearts of peace-oriented sections the world over down the decades.

Under its mega developmental blueprint titled ‘ Tamil Nadu 2030’, the Tamil Nadu government, among other things, intends transforming villages into centres of economic growth in conformity with the Mahatma’s vision of making the village the fundamental unit of material and spiritual advancement. Thus will come into being the ‘Uttamar Gandhi Model Villages Project’, which will be initially covering 10 village Panchayats. (Please see page 3 of The Island of March 11, 2026).

The timeliness of remembering and appreciating anew the teachings of Mahatma Gandhi resides in the utter lawlessness that has been allowed to overtake the world over the last few decades by none other than those global powers which took it upon themselves to usher in a world political and economic order based on the UN Charter and the Universal Declaration of Human Rights. Mainly in ‘the dock’ in this regard are the permanent members of the UN Security Council.

As is plain to see, the international law and order situation has veered out of control. Principal priorities for the international community or what’s left of it is to prevent the current mainly regional war in the Middle East from degenerating dangerously into another world war, coupled with the task of eliminating the possibility of another nuclear holocaust.

The most scorching of ironies is that the world’s ‘number one power’, the US, has virtually lost its way in the ‘Global Disorder’ it has been party to letting lose. For instance, instead of making good its boast of militarily neutralizing Iran and paving the way for the constant flow of fuel and gas from the Strait of Hormus by itself and Israel, it is now appealing to the rest of the West to come to its assistance. Not surprisingly, US allies are indicating their unwillingness to help pull the US’ ‘chestnuts out of the fire’.

Oil and gas are the veritable life blood of countries and going ahead it should not come as a surprise if impatience gets the better of the major powers and the nuclear option is resorted to by some of them under the dangerous illusion that it would be a quick-fix to their growing economic ills and frustrations.

All the above and more are within the realms of the possible and the need is pressing for humanistic voices to take centre stage in the present runaway crisis. As pointed out in this column last week, Realpolitik has overtaken the world and unless the latter is convinced of the self-destructive nature of the major powers’ policy of ‘meeting fire with fire’ to resolve their disputes, annihilation could be the lot of a good part of the world.

For far too long the voice of humanity has been muted and silenced in the affairs of the world by the incendiary threats and counter-threats of the big powers and their allies. No quarter has been bold enough in these blood pressure-hiking slanging matches to speak of the need for brotherly love and compassion among nations and countries. But it’s the language of love and understanding that is the most pressing need currently and the Mahatma in his time did just that against mighty odds.

At present the US and Iran are trading threats and accusations over military-related developments in the Gulf and it’s anybody’s guess as to what turn these events will take. However, calming voices of humanity and moderation would help in deescalating tensions and such voices need to go to the assistance of the UN chief and his team.

The Mahatma used the technique of ‘Satyagraha’ or the policy of non-violent resistance to oppose and dis-empower to a degree the British empire in his time and the current major powers would do well to take a leaf from Gandhi. The latter also integrated into the strategy of non-violent resistance the policy of ‘Ahimsa’ or love and understanding which helped greatly in uniting rather than alienating adversaries. The language of love, it has been proved, speaks to the hearts and minds of people and has a profoundly healing impact.

Mahatma Gandhi defined the ideal of ‘Ahimsa’ thus: ‘In its positive form, “Ahimsa” means the largest love, the greatest charity. If I am a follower of “Ahimsa”, I must love my enemy or a stranger to me as I would my wrong-doing father or son. This active “Ahimsa” necessarily includes truth and fearlessness.’ (See; ‘Modern Indian Political Thought; Text and Context’ by Bidyut Chakrabarty and Rajendra Kumar Pandey, Sage Publications India, Pvt. Ltd., www.sagepub.in).

In the latter publication, the authors also defined the essence of ‘satyagraha’ as ‘protest without rancour’ and this is seen as ‘holding the key to his entire campaign’ of non-violent resistance. From these perspectives, the teaching, ‘hatred begets hatred’ acquires more salience and meaning.

Accordingly, the voice of reason and love needs to come centre stage and take charge of current international political discourse. The UN and allied organizations which advocate conflict resolution by peaceful means need to get together and ensure that their voices are clearly heard and understood. The global South could help in this process by seeing to the vibrant rejuvenation of organizations such as the Non-aligned Movement.

An immediate task for the peace-oriented and well meaning is to make the above projects happen fast. In the process they should underscore afresh the profound importance of the teachings of Mahatma Gandhi, who is acclaimed the world over as a uniting and healing political personality and prophet of peace.

If the Mahatma is universally acclaimed, the reason is plain to see. Put simply, he spoke to the hearts and minds of people everywhere, regardless of man-made barriers. The language of peace and brotherhood, that is, is understood by everyone. The world needs more prophets of peace and reconciliation of the likes of the Mahatma to drown out the voices of discord and war-mongering and ensure that the language of humanity prevails.

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Exciting scene awaits them …

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The Future Model Hunt extravaganza, organised by Rukmal Senanayake, and advocacy trainer Tharaka Gurukanda, held in late January 2026, has brought into the limelight four outstanding contestants who will participate, at the international level, this year – Sandeepa Sewmini, Demitha Jayawardhana, Diwyanjana Senevirathna, and Nimesha Premachandra.

Nimesha took the honours as Mrs. Tourism Sri Lanka 2026 and was featured in The Island of 05th March,

Sandeepa Sewmini was crowned Miss Supranational 2026 and will represent Sri Lanka at the big event to be held in Poland later in the year.

A Business Management and Human Resources student, she will be competing under the guidance of Rukmal Senanayake from the Model With Ruki – Model Academy & Agency.

The Mister Supranational Sri Lanka crown went to Demitha Jayawardhana, a 20-year-old professional model and motocross rider.

Apart from modelling he is engaged in his family business.

Demitha Jayawardhana: Mister Supranational Sri Lanka 2026

Demitha is also a badminton player with a strong passion for sports, fitness and personal growth.

In fact, he is recognised for his strength, discipline, and passion for fitness.

A past student of Wycherley International School and St Peter’s College, Colombo, Demitha is currently in his second year of Economics Management at the Royal Institute of Colombo.

He will represent Sri Lanka at the 10th edition of the Mister Supranational pageant, in Poland, in August, 2026.

Mister and Miss Supranational are annual international beauty pageants, held in Poland, and are designed to discover new talent for the modelling and television industries and produce instant celebrities.

The competition focuses on elegance, intelligence, and social advocacy, with contestants, representing their countries.

The newly appointed Miss Teen International Sri Lanka 2026 is Diwyanjana Senevirathna.

She was crowned at the Future Model Hunt and will represent Sri Lanka at the Miss Teen International 2026 pageant in India.

Diwyanjana is noted for her grace and dedication to representing the country at this prestigious event that aims to celebrate talent, intelligence, charm, and individuality, and provide a platform for young girls to showcase their skills.

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