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Editorial

Remedy worse than malady

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Thursday 15th June, 2023

Sri Lanka Customs has reportedly informed the government that it will not be able to meet its revenue targets due to the existing ban on vehicle imports. It has suggested that a foreign credit line be opened for the import controls at issue to be eased. But the question is why a credit line should be opened for the importation of non-essentials? Such measures will only worsen the country’s debt crisis. The government must remain maniacally focused on shoring up foreign exchange reserves, which are still woefully low. The lifting of restrictions on essential imports has already taken its toll on the rupee, and what has been gained painstakingly over the past few months on the economic front is likely to be gone in a jiffy if vehicle imports are allowed to resume at this juncture.

Given rampant corruption in Sri Lanka Customs, the Department of Motor Traffic, etc., thousands of vehicles paid for via Undial and Hawala systems will find their way into the country in the event of import restrictions thereon being eased. Imported cosmetics and food items such as grapes, apples, oranges and fruit juice have never been in short supply in the country despite import restrictions; only their prices have increased. This alone is proof that a lot of forex has flowed out of the country through illegal channels. After all, Cabinet Spokesman and Minister Bandula Gunawardena himself admitted at a media briefing on Tuesday that large stocks of imported goods paid for via Undial and Hawala systems remained in warehouses and that was why the prices of imports had not come down despite the appreciation of the rupee against the major foreign currencies in the recent past. How bad the situation will be if import restrictions on vehicles are lifted is not difficult to guess.

Efforts being made to straighten up the economy are showing signs of yielding the desired results, and they have to be sustained over a considerable period of time for full economic recovery to be achieved. No undue pressure must therefore be brought to bear on the government to lift import restrictions or do other such things that have the potential to deplete the country’s forex reserves; the task of easing import controls should be carried out carefully lest the economy should go into a tailspin again, causing shortages and socio-political upheavals. Dependent as the country may be on the US-dominated IMF to put its economy back on an even keel, in trying to achieve that goal, the government ought to follow the Chinese method of ‘crossing the river by feeling the stones’.

There is no gainsaying that import controls have caused the state revenue to decrease drastically. But there are some other ways of increasing the Customs revenue. One is to eliminate corruption, which deprives the state of a substantial amount of revenue annually. It must be found out how non-essentials have been brought in despite import restrictions, and a close watch should be kept on the Customs to prevent import rackets.

Besides, there is reason to believe that government politicians themselves cause huge losses to the Customs. The sugar duty racket is a case in point. The amount of money that the state coffers lost due to a duty waiver that the Gotabaya Rajapaksa government effected for the benefit of an SLPP financier, who imports sugar, is said to be huge. The Opposition has, in Parliament, accused the Customs of having lowered a fine on a government MP, who was caught smuggling in 3.5 kilos of gold and about 90 smartphones recently; MP Ali Sabry Raheem, who made that abortive smuggling attempt, walked free after paying only Rs. 7.4 million though the Customs had decided to fine him as much as Rs. 22.2 million, initially. In other words, the Customs as well as the state coffers have suffered a loss of about Rs. 15 million due to political interference.

The government had better tread cautiously, avoiding pitfalls, and clean up the economic mess it has created. It must not undertake anything that is fraught with the danger of causing a further depletion of the country’s foreign currency reserves. Most of all, it ought to tell the Customs to get their act together without blaming their failure to increase revenue solely on the restrictions on vehicle imports.



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Editorial

Cramped cells, fettered rights

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Wednesday 17th June, 2026

Some occupants of key positions in the public service unashamedly display their chameleon-like ability to adapt to changing political circumstances and please new leaders. They do not scruple to trade their professional dignity for expediency. So, it is not surprising that some police officers have chosen to be at the beck and call of powerful politicians, and the police go out of their way to further the interests of the powers that be. Their servility has stood in the way of efforts to depoliticise the police through constitutional safeguards.

Unsurprisingly, the police have resorted to legal action against some Opposition politicians who took up the cudgels for the rights of former State Intelligence Service Director Maj. Gen. (Retd.) Suresh Sallay in CID custody. If the CID had acted impartially and respected Sallay’s rights as a detainee, the need for protests would not have arisen. It was protests that prompted the CID to bite the bullet and rush Sallay to hospital. The Human Rights Commission of Sri Lanka (HRCSL) has reportedly expressed concern about the conditions of the detention cells at the CID headquarters.

Contrary to government claims, there have been no calls for Sallay’s release or an end to the ongoing police investigations into the Easter Sunday terror attacks. Everyone is of the view that the probe must go on and justice must be done to the carnage victims. Protests have been against the alleged ill-treatment of Sallay at the CID headquarters. Criticism of the suppression of the rights of detainees must not be misconstrued as efforts to undermine the judiciary.

Police action against the critics of the CID smacks of a sinister move to suppress democratic dissent. The incumbent government is apparently emulating the previous dispensations that resorted to draconian measures to silence dissent to consolidate their hold on power.

In a democracy, sovereignty resides in the people, who are the ultimate political authority, and they must not be denied their legitimate right to oppose the subjugation of the legal process to the political interests of the government in power. It is antithetical to democracy and amounts to an assault on the people’s freedom of expression for criticism of politically driven investigations and the abuse of suspects under the Prevention of Terrorism Act (PTA) to be framed as obstructions of the police or contempt of court.

The PTA allows the Defence Minister to order the detention of suspects arrested by police investigators to further the interests of his or her political party on some pretext or another. However, the abuse of the PTA is not of recent origin. There is hardly any law that has not been abused under successive governments, and the self-proclaimed campaigners for democracy and human rights, were abusers themselves, while in power.

The present-day UNP leaders who have condemned the alleged ill-treatment of Sallay fully endorsed numerous such violations, especially the arrest and prolonged detention of Vijaya Kumaratunga in a dark cell in the early 1980s. The JVP assassinated Kumaratunga a few years later.

The JVP vehemently opposed the PTA, politically driven investigations, etc., as it bore the brunt of repressive practices facilitated by the PTA. But the JVP-led NPP government has not only chosen to use the PTA to suppress dissent but also reached a new low; it has brought two of its active party members out of retirement and appointed them as the CID Director and Secretary to the Ministry of Public Security. Worse, it intimidates those who dare criticise the undemocratic actions of these officers and campaign for the rights of suspects in detention.

Now that the appalling conditions of the CID’s detention cells have come to light, pressure must be brought to bear on the government to take remedial action for the benefit of all suspects. Most of all, police officers loyal to the ruling party must not be allowed to subject detainees to cruel treatment in a bid to break their will and obtain confessions.

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Editorial

A deal that pours oil on troubled waters

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Tuesday 16th June, 2026

The world must have breathed a sigh of relief yesterday following the announcement that the US and Iran had agreed to sign a peace deal soon and begin negotiations in earnest to resolve contentious issues. The peace plan has renewed hope that no more lives will be lost due to military strikes in West Asia; precious assets, especially oil infrastructure, in that part of the world will be safe, and disruptions to global oil supplies will be over.

Interestingly, as US President Donald Trump turned 80, global oil prices which had shot up to extremely high levels, owing to his war on Iran, dropped to about USD 80 a barrel, the lowest since the eruption of the war in February. Upon the announcement of the US-Iran peace deal, WTI, the US oil benchmark, decreased to USD 80 a barrel, and the global oil benchmark, Brent crude, which was about USD 70 a barrel before the conflict and peaked at about USD 120 during the war, dropped to USD 83 a barrel. Share markets surged in Asia. These are very positive signs.

The US-Iran peace deal and the resultant oil price drops could not have come at a better time for developing nations, especially Sri Lanka, which is struggling to stabilise its rupee and shore up its forex reserves.

However, a return of global oil prices to the pre-conflict level of USD 70 a barrel may not be possible in the short term, given some factors, such as the lost production capacity in West Asia, strategic oil reserve replenishment and higher risk premium. The situation may improve sooner than expected if OPEC, the US, Canada, Brazil, etc., care to increase oil production and help stabilise the world energy market, thereby strengthening the global economy, which has shown signs of severe decline due the West Asian conflict.

US President Donald Trump pretends that he has done Iran a big favour by agreeing to a peace deal. However, Trump has apparently made a virtue of necessity. It was difficult for him to go on fighting, particularly in view of the passage of a crucial War Powers bill. Besides, US Vice President J. D. Vance, in an interview with Fox News, has said, inter alia, that Americans were facing economic hardships due to the Iran war; he has expressed hope that energy prices will start coming down shortly much to their relief. This shows that the Trump administration was also badly in need of a peace deal.

The US-Iran peace deal to be signed has been described in some quarters as a birthday gift for Trump. It must have gladdened his heart beyond measure, for his approval rating has plummeted due to his handling of the economy and the Iran war, and his Grand Old Party is expected to perform poorly at the midterm elections in November. One may recall that General Sherman, after completing his March to the Sea, famously “presented” the city of Savannah, the Confederacy’s most important port, as a Christmas gift to President Lincoln, in December 1864. Trump may have expected his military commanders to do likewise and present something like Iran’s Kharg Island to him as a birthday gift, but his plans went awry owing to Iran’s fierce resistance, with Tehran effectively shifting the war to the economic front by using the Hormuz Strait as a strategic lever. So, Trump apparently had to settle for a peace deal as a birthday gift, so to speak.

Israeli Prime Minister Benjamin Netanyahu is obviously not well-disposed towards the peace deal to be inked. He was dependent on the Iran war for political survival. His opponents are closing ranks, and he has court cases to contend with. So, if he carries out attacks on Hezbollah targets again, as speculated in international defence circles, Iran may be compelled to respond, maybe by closing the Hormuz Strait again. In the world of cloak-and-dagger geopolitics, anything is possible. It is up to Trump to ensure that his friend behaves.

World powers have welcomed the peace deal to be signed and praised the US, Iran and Pakistan, which made it possible. They themselves have been reeling from the knock-on economic effects of the West Asian conflict, and it will be in their best interest to do everything in their power to ensure that the peace deal will reach fruition and the Iran war will be a thing of the past.

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Editorial

El Niño at the gate: Are we ready?

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Monday 15th June, 2026

Sri Lanka apparently has more than its fair share of extreme weather events, ranging from floods to droughts and now the disruptive effects of a mega climate anomaly. The World Meteorological Organization (WMO) has warned that due to unusually warm ocean waters in the tropical Pacific, El Niño conditions are developing fast, and they are expected to drive more extreme temperature and rainfall patterns in the coming months. Sri Lanka is among the countries that are expected to suffer the severest impact of this phenomenon.

Some climate experts have suggested that Sri Lanka may not experience a severe El Niño impact. However, it is prudent to prepare for the worst-case scenario.

The WMO has stressed that the time for informed decision-making, planning and preparedness is now. “The science is clear: El Niño is arriving on our doorstep in the coming months with 90% certainty. The world must treat it as the urgent climate warning it is,” UN Secretary-General António Guterres has said. The world has experienced El Niño events for many years and therefore knows what it is like to face them. However, the question is whether such warnings will jolt Sri Lanka into taking urgent action to mitigate the impact of El Niño, which will deal a double whammy, with floods and droughts affecting different parts of the country simultaneously.

Sri Lanka has earned notoriety for ignoring and failing to respond to crises and disasters swiftly. One may recall that in December 2004, nobody sensed danger on seeing the eerie drawback of the sea minutes before the landfall of the Boxing Day tsunami. Thousands of lives were lost as a result. There were quite a few warnings of the impending Easter Sunday terror attacks in 2019, but nobody cared to take preventive action. Many experts warned of a crippling economic crisis in 2022, but no action was taken to prevent it. So, fear being expressed in some quarters that nothing serious is likely to be done by way of disaster risk reduction in view of El Niño is not unfounded. Last year, Cyclone Ditwah caught the incumbent government unprepared and overwhelmed the state disaster response system initially. The impact of El Niño is expected to be far severer as it will last for months.

The first casualty of El Niño is agriculture dependent on monsoon rainfall. Most countries affected by El Niño-driven droughts and floods face crop losses in multiple seasons and the resultant prolonged food shortages have the potential to lead to political upheavals. A possible increase in food imports is bound to worsen Sri Lanka’s foreign currency woes. Perhaps, many countries will be compelled to restrict agricultural exports. There’s the rub. Hence, agricultural experts have called for a climate-smart home gardening initiative to meet such an eventuality.

The impact of El Niño usually spreads to other sectors, such as power and energy. The use of substandard coal has caused a sharp decline in power generation at Norochcholai. If reservoir levels recede steeply, decreasing the country’s hydro power capacity drastically, it will not be possible to meet the Norochcholai generation shortfall by burning diesel, etc., due to the cost factor and forex constraints. Shortages of power, energy and water take their toll on the industrial sector and impede economic growth. Beyond economic losses, El Niño entails broader social costs such as poverty, disease outbreaks and disruptions to education.

The JVP-NPP government would have the public believe that it has a well-thought-out plan to mitigate the severe impact of El Niño by focusing on water conservation, climate-resilient agriculture, food and energy security while strengthening disaster preparedness. The Food Policy and Security Committee, appointed by the government, has reportedly discussed ways and means of mitigating the impact of El Niño with particular focus on agriculture, water storage and drinking water supplies. The proof of the pudding is said to be in the eating. One can only hope that the government will succeed in this endeavour and all other stakeholders will put their shoulders to the wheel.

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