Connect with us

Business

Reckless spending by governments and public sector created debt crisis – Prof. Lakshman Watawala

Published

on

By Hiran H.Senewiratne

The entire government/ public sector ran on without accountability to their spending on various development projects, despite having a huge number of government servants, which runs into 1.5 million. That is why the country encounters a huge debt crisis that amounts to US $ 60 billion or Rs 70 trillion, Prof. Lakshman R. Watawala said.

‘The private sector’s accountability is a key area and without accountability we cannot exist. Unfortunately, we don’t see any accountability in the government/public sector. If they are accountable they will know how borrowed funds are utilized for various development projects. Due to that not only politicians but the public sector too should be responsible for this debt crisis, Prof. Watawala who is the Founder/President, Institute of Certified Management Accountants of Sri Lanka (CMA) said.

Watawala made these observations at a zoom forum organized by CMA Sri Lanka recently on the subject, “A Solution to Debt Crises Using Nature”.

Extracts from Watawala’s presentation:” We are planning to go to the IMF to get dollars. We can’t really imagine how we got into debt and therefore no one is ready to take responsibility for it. Therefore, our huge 1.5 million strong public sector is eating up our money, in other words tax payer’s money.

‘When Sri Lanka graduated to a developed country from a developing nation we were able to raise money from lending agencies and even from International Sovereign Bonds for different projects with liberty, sometimes with high interest rates. In the absence of a proper accountability mechanism nobody knows what happens to those funds. The respective governments never consider the repayment methods and the viability of those projects.

‘Our government departments spend colossal amounts money as if it has to be borne by society. In that sense money that was borrowed was never properly accounted for. Therefore, that money was wasted and some corrupt political and public servants robbed them.

‘In a landmark Indian Supreme Court judgment, the latter ruled that when a government imposes any taxes it should consult the Taxpayers Association on why it imposes taxes or on what and how that money is to be spent. Therefore, it is the need of the hour to have some system for the country to enable financial discipline.’

The Group Director Capital Maharaja Group Chevaan Daniel in his presentations said that Sri Lanka’s 3,000 year-old system still serves its people. Sri Lanka’s hydraulic heritage must be understood in order to be protected. Our ancient philosophy of water and soil conservation is amongst the greatest in the world. He talked on, ‘The Sea of Sri Lanka and Sri Lanka’s Water Heritage’.

Daniel added: “While the West has woken up to the importance of sustainability of late, the Sri Lankan civilization was built on a culture of sustainability that lasted for thousands of years. A key misconception that must be righted is the fact that we often think our water heritage is limited to our irrigation systems.

‘ An irrigation system is a function of hydraulic engineers who will see water as ‘inanimate and active’ but the conservationist and farmer will see water from the perspective of it being animate and passive.

‘The famous scholar, Joseph Needham once noted that the development of a water management system in ancient Sri Lanka in its technology and organization has been unparalleled in its sophistication elsewhere in the world.’



Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

World Bank puts USD 110m into climate-resilient road rebuilding

Published

on

A Cyclone Ditwah-damaged area in Sri Lanka.

By Ifham Nizam

The World Bank has approved USD 110 million in additional financing to rebuild around 600 kilometres of roads damaged by Cyclone Ditwah, with the investment aimed not merely at restoring connectivity but at making critical transport infrastructure more resilient to future climate shocks.

The financing comes against a much larger recovery requirement for the transport sector, estimated at USD 1.31 billion, highlighting the scale of the infrastructure challenge following one of the most destructive weather disasters to hit the country in recent years.

The World Bank said the additional financing, provided through the International Development Association (IDA) Crisis Response Window, would support road reconstruction incorporating improved drainage, landslide protection and upgraded engineering standards.

‘Cyclone Ditwah has had a devastating impact on connectivity across Sri Lanka, but rebuilding also gives us an opportunity to build back stronger, said Gevorg Sargsyan, World Bank Group Country Manager for Sri Lanka and Maldives.

The World Bank said the programme would go beyond repairing damaged roads, helping reconnect farmers with markets, communities with essential services and households with economic opportunities.

The additional financing will extend the Inclusive Connectivity and Development Project (ICDP) by three years, taking total World Bank transport investment under the operation to USD 610 million.

The World Bank’s December 2025 GRADE assessment estimated Cyclone Ditwah had caused USD 4.1 billion in direct physical damage, equivalent to around four percent of GDP. Infrastructure accounted for approximately USD 1.735 billion, or 42% of the total, with roads, bridges, railways and water systems among the heavily affected assets.

The Bank has stressed that the USD 4.1 billion estimate measures direct physical damage and does not include income or production losses or the full cost of recovery and reconstruction.

The transport sector alone suffered extensive disruption, making the rebuilding of road networks a critical component of the broader economic recovery.

The latest USD 110 million package is expected to directly benefit more than 830,000 people, while nearly two million people across eight districts are expected to benefit from improved connectivity.

The programme is also expected to support employment during reconstruction and improve market access for approximately 22,000 tea, vegetable and paddy farmers.

The World Bank’s intervention therefore combines immediate disaster recovery with a longer-term infrastructure objective: ensuring that money spent on reconstruction does not simply restore roads to their pre-disaster condition but reduces their vulnerability to the next extreme-weather event.

That approach is becoming increasingly important as climate-related disasters place additional pressure on already constrained public finances.

Rebuilding the same infrastructure repeatedly after floods, landslides and other disasters carries a significant economic cost, making resilience an increasingly important part of infrastructure investment decisions.

Continue Reading

Business

SLIC Life offers Rs.1million free life cover to parents of children born on World Children’s Day 2026

Published

on

Senior Management of SLIC Life and officials of Castle Street Hospital for Women symbolically handing over a Free Life Cover of Rs. 1 million to a parent whose child was born on 1st of October 2026

In celebration of World Children’s Day 2026, Sri Lanka Insurance Life (SLIC Life) has once again extended a Rs. 1 million free life insurance cover to the parents of every child born on 1 October 2026, across Sri Lanka. Now in its fifth consecutive year, the initiative was implemented island-wide, covering hospitals across the country and enabling parents of newborns to benefit from this special offering.

Beyond providing financial protection, the initiative seeks to highlight the importance of planning for a family’s financial security from the very beginning of a child’s life.

“The birth of a child marks the beginning of a new journey filled with hopes, dreams and aspirations. At SLIC Life, we believe that protection should begin from the very start of that journey. Through this initiative, we aim to create greater awareness of the importance of planning ahead and the role life insurance can play in safeguarding families against life’s uncertainties. As we continue this initiative for the fifth consecutive year, we remain committed to extending meaningful protection to Sri Lankan families and contributing towards a more secure future for the next generation,” said Dr. Sameera Dharmasena, Chief Executive Officer of SLIC Life.

Launched in 2022 as part of SLIC Life’s Corporate Social Responsibility (CSR) programme, the World Children’s Day initiative was introduced with the aim of supporting parents and strengthening financial security for families at an important stage in their lives. Over the years, the initiative has become a significant part of SLIC Life’s annual CSR calendar, reflecting the company’s broader commitment to children, families and communities.

SLIC Life’s commitment to children and education extends across several long standing CSR initiatives. The ‘Pasal Piriyatha Surakimu’ programme, launched in 2007, has benefited over 3,365 underprivileged schools through initiatives including classroom refurbishments, water facilities, libraries and learning resources. The 2026 edition of the programme is scheduled to be carried out in November, continuing SLIC Life’s efforts to enhance learning environments for children across the country. Complementing this, the ‘Suba Pathum Scholarship Programme’, which has been conducted since 2014, has now awarded 2,425 scholarships valued at Rs. 265 million to children of policyholders who demonstrate excellence in national examinations. The programme reflects SLIC Life’s continued focus on supporting educational aspirations and creating opportunities for the next generation.

Children remain at the heart of SLIC Life’s commitment to building a more secure future. Through the annual World Children’s Day initiative and its wider CSR programmes, SLIC Life continues to demonstrate that the value of insurance extends beyond financial protection, contributing to stronger and more resilient families and communities.

Continue Reading

Business

HelpAge thanks donors for helping in carrying out free cataract surgery program

Published

on

A surgery in progress under the aegis Helpage.

At a recent seminar HelpAge Sri Lanka (HASL) thanked local and foreign donors for strengthening the on-going free cataract surgeries program conducted by HelpAge Eye Hospital, Wellawatta for less- privileged elders over 55 years.

According to HelpAge Eye Hospital statistics the free cataract surgery programme was commenced in 2002 and over 55,000 surgeries have so far been performed for elderly citizens.

Head of HelpAge Eye Hospital Mahanama Wijesinghe said needy persons over 55 years of age could contact the hospital on telephone numbers 0112555759 and 0112589450 for free cataract surgeries.

‘Steps have been taken to conduct surgeries within a short duration of 30 days after attending the Eye Hospital clinic, he said.

Wijesinghe thanked all donors for their donations towards helping underprivileged citizens of the country.

HelpAge, Executive Director Dr. Harsha Bandara said HelpAge also conducts free medical and eye camps for needy elders and thanked donors for their donations towards this meritorious cause.

He requested philanthropists and donors to make their contributions for the sake of the needy.

Continue Reading

Trending