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SCAM OR INCOMPETENCE?

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By Sanjeewa Jayaweera

The latest controversy to stoke much discussion in both the political arena and the public domain is the purported “sugar scam.” Politicians from both the JVP and SJB have been vociferous in their condemnation, claiming that reducing the Special Commodity Levy (SCL) on sugar was done to benefit a particular trader and that the loss to the state is more than Rs. 15 billion; indeed a substantial amount of money.

In the absence of verifiable data of the trader concerned reflecting his previous sugar import pattern, it is impossible to venture an opinion on the deal – whether it is a scam or a case of serious misjudgment by those vested with the authority to change the SCL on sugar.

What I do know is that politicians do not always tell the whole truth. It does not matter which party is in the opposition or government. In this day and age of electronic and social media, if you tell a lie often enough, it become the truth. Most people will not try to sift the rhetoric from the facts and arrive at a fact-based conclusion.

There is an absence of independent information in our country that the public can access to either confirm or reject a supposition propagated by interested parties. In certain countries, anybody could easily access or obtain records of the monthly quantity of sugar (or any other commodity) imported and by whom. I do not see any issue of confidentiality or trade secrets being compromised by making such information public. In such a scenario, a few independent individuals could confirm to the public whether the trader concerned had increased his import volumes substantially in anticipation of the decrease in the SCL. He could have stored the sugar in a bonded warehouse and cleared the stocks after the SCL was reduced. In that case, we can conclude that the trader had insider information and was a significant beneficiary of the cess reduction. That could indeed be deemed to be a fraud or a scam.

I find that in the last few months, there have been instances of opposition MP’s and others leading the public astray with their comments. The JVP was at the forefront of the campaign that forced the government to cancel the East Container Terminal (ECT) award at the Colombo Port to an Indian, Japanese and Sri Lankan consortium. They, together with trade unions and a section of the Buddhist clergy, claimed that the government was selling off national assets to foreigners.

Despite the investment proposal being a 35-year lease on a build operate transfer (BOT) basis, the ‘sell-off’ allegation was freely made. There is a significant difference between a sale and a lease. In a previous articles, captioned “Why the Government should have honoured the ECT agreement”, published in this newspaper, I set out why I believe the ECT campaign was disingenuous and counterproductive.

Just yesterday (Wednesday), I watched a clip of a JVP MP saying that the government claim that but for the reduction in the SCL to 25 cents, the current retail price of sugar would be about Rs. 170 per kg. This is absolute nonsense. He claimed that the landed cost of sugar in March 2021 was about Rs. 85 per kg and if the previous SCL at Rs. 50 per kg was maintained, then the maximum price should be Rs. 135 per kg and not Rs. 170 per kg. After a pause, he conceded that maybe the importer could keep five rupees per kg as his profit/cost and as such, the maximum price of sugar would be Rs. 140 per kg.

I do not doubt that the MP is unaware of the commercial aspects of a trading transaction. For the benefit of laymen, let me elaborate. Once the sugar is landed, the importer will incur additional costs such as storage, transport and working capital costs and, of course, then keep a profit. It is thereafter sold to a wholesaler who has his costs and profit margin, and after that the retailer who too has his own costs and profit. So, to assume only an additional five rupees per kg post the landed cost is incurred is not accurate and is misleading. Assuming a minimum margin of 5% is kept at each link in this chain, just five rupees per kg over the landed cost and SCL is totally inadequate.

A few weeks ago, the leading spokesman on Economic matters of the SJB, on a television talk show named a leading supermarket chain and claimed that despite the gazetted price of samba rice being Rs. 98 per kg, this particular chain was selling at Rs. 135 per kg. I saw the live program and was shocked. Having worked for the owners of this chain for over two decades, I knew they would not engage in such an act. I contacted some of my former colleagues and checked the claim. I was told the story was wholly untrue. They did not sell samba, and the price quoted by the MP was for keera samba. I encouraged my former colleagues to sue the MP because, in my view, their brand name was tarnished by a wild and incorrect statement. Usually politicians and scribes desist from naming names and say “a well-known supermarket chain etc..” But in this instance the chain was named for whatever reason And an MP who should known better, given his education and stature, made a baseless allegation that has been subsequently retracted.

Before my retirement, I worked as the Chief Financial Officer of a leading carbonated soft drinks manufacturer where sugar was the main raw material . Therefore, I was involved in the decision-making process of procurement and, though not an expert, have a fair idea of how the world sugar market works. We used to purchase a higher grade known as ICUMSA 45, whilst what is sold in the retail market is ICUMSA 150. We used to purchase our sugar primarily through international traders and the price was based on the London futures market. Our contracts were for several months to ensure price stability. However, even then, the SCL was the uncontrollable element.

As I remember, the SCL was reviewed every three months and was either increased, decreased, or maintained as before. The logic was that when the world price of sugar was increasing, the government would reduce the SCL, and when world prices were coming down, the government would increase the SCL. The intention was to maintain a stable retail price.

This policy has its disadvantages in that when world prices reduce, the consumer does not get the benefit. The other side of the coin is that when world prices increase, the consumer is part-protected – a case of “you can’t have your cake and eat it.” A former colleague maintained a 10-year record of SCL revisions and world prices at the time. In most instances, the logic I explained above was followed, but there are a few instances when the reverse did happen!

This same logic is applied to petroleum prices too. When the world oil prices plummeted during the initial wave of Covid-19, the consumer did not benefit. But he’s now being protected as prices rise. This, I think, is not a sound economic policy and is partly the reason why our country is in an economic and financial mess.

I understand that when the government decided to reduce or eliminate the SCL on sugar, the country’s sugar stocks were relatively high. It seems that most traders had purchased excess inventories sufficient for as many as three months from India, the primary supplier of sugar to Sri Lanka. This happened because India usually suspends its export quotas for about three months from the end of September for whatever reason.

So, when the government did decide to reduce the SCL to just 25 cents, the traders were unable to extend the benefit to the consumers immediately as they had significant stocks in hand on which SCL of Rs. 50 per kg had been paid. Obviously, we cannot expect traders to incur a loss by selling below cost. In this scenario, what happens is that there is a shortage in the market with importers, wholesalers and retailers holding stocks.

Sugar was sold at the retail price of Rs. 100 per kg in January 2020. The price increased after April 2020 and with sugar retailed between Rs 130 and Rs. 145 per kg just prior to the reduction of the SCL. In the immediate aftermath, the gazetted price of Rs. 85 per kg was held for a short time only by the privately-owned supermarkets and Sathosa. Supermarkets need to adhere to price controls as they are easily raided and need to avoid negative publicity. However, they will only sell a minimal quantity as losses cannot be borne indefinitely. Invariably, scarcity results and the authorities quietly allow retailers to sell at a higher price. This is when the opposition MP’s shout saying that sugar is not sold at the government mandated price.

I understand that various officials from the Department of Trade, Tariff and Investment Policy, Committee on Cost of Living and the Treasury are involved in the decision-making process when deciding on the merits or otherwise of the revised SCL. They are expected to consider factors such as movement in world prices, impact on government revenue, stocks in hand and cost of living.

In this instance, the authorities do not seem to have done their due diligence in ascertaining the availability of sugar stocks in the market. Had they done so, they would have realized that reducing the SCL on sugar would not benefit the consumer immediately. Substantial stocks cleared at SLC of Rs. 50 per kg was available in the country.

The question is whether the due process was followed, and if not, was it incompetence or ignored to benefit a few? In the absence of verifiable data, I cannot comment. Only an independent commission of inquiry can do so, although we know these are a dime a dozen and nothing much results.

A justifiable question to ask the authorities is why the SCL was not reduced to say Rs. 25 per kg? By reducing it to 25 cents the authorities have nothing to offer the consumer at present when the price of sugar in the world market is increasing. For the record, in July 2016 the Yahapalana government reduced the SCL to 25 cents from Rs. 30 per kg as the sugar prices in the world market increased significantly.

Having worked in the private sector for 25 years, I know successive governments advised by public servants have introduced various economic proposals without thinking through the consequences.

 

 



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Lasting solutions require consensus

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Social Media training

Problems and solutions in plural societies like Sri Lanka’s which have deep rooted ethnic, religious and linguistic cleavages require a consciously inclusive approach. A major challenge for any government in Sri Lanka is to correctly identify the problems faced by different groups with strong identities and find solutions to them. The durability of democratic systems in divided societies depends less on electoral victories than on institutionalised inclusion, consultation, and negotiated compromise. When problems are defined only through the lens of a single political formation, even one that enjoys a large electoral mandate, such as obtained by the NPP government, the policy prescriptions derived from that diagnosis will likely overlook the experiences of communities that may remain outside the ruling party. The result could end up being resistance to those policies, uneven implementation and eventual political backlash.

A recent survey done by the National Peace Council (NPC), in Jaffna, in the North, at a focus group discussion for young people on citizen perception in the electoral process, revealed interesting developments. The results of the NPC micro survey support the findings of the national survey by Verite Research that found that government approval rating stood at 65 percent in early February 2026. A majority of the respondents in Jaffna affirm that they feel safer and more fairly treated than in the past. There is a clear improving trend to be seen in some areas, but not in all. This survey of predominantly young and educated respondents shows 78 percent saying livelihood has improved and an equal percentage feeling safe in daily life. 75 percent express satisfaction with the new government and 64 percent believe the state treats their language and culture fairly. These are not insignificant gains in a region that bore the brunt of three decades of war.

Yet the same survey reveals deep reservations that temper this optimism. Only 25 percent are satisfied with the handling of past issues. An equal percentage see no change in land and military related concerns. Most strikingly, almost 90 percent are worried about land being taken without consent for religious purposes. A significant number are uncertain whether the future will be better. These negative sentiments cannot be brushed aside as marginal. They point to unresolved structural questions relating to land rights, demilitarisation, accountability and the locus of political power. If these issues are not addressed sooner rather than later, the current stability may prove fragile. This suggests the need to build consensus with other parties to ensure long-term stability and legitimacy, and the need for partnership to address national issues.

NPP Absence

National or local level problems solving is unlikely to be successful in the longer term if it only proceeds from the thinking of one group of people even if they are the most enlightened. Problem solving requires the engagement of those from different ethno-religious, caste and political backgrounds to get a diversity of ideas and possible solutions. It does not mean getting corrupted or having to give up the good for the worse. It means testing ideas in the public sphere. Legitimacy flows not merely from winning elections but from the quality of public reasoning that precedes decision-making. The experience of successful post-conflict societies shows that long term peace and development are built through dialogue platforms where civil society organisations, political actors, business communities, and local representatives jointly define problems before negotiating policy responses.

As a civil society organisation, the National Peace Council engages in a variety of public activities that focus on awareness and relationship building across communities. Participants in those activities include community leaders, religious clergy, local level government officials and grassroots political party representatives. However, along with other civil society organisations, NPC has been finding it difficult to get the participation of members of the NPP at those events. The excuse given for the absence of ruling party members is that they are too busy as they are involved in a plenitude of activities. The question is whether the ruling party members have too much on their plate or whether it is due to a reluctance to work with others.

The general belief is that those from the ruling party need to get special permission from the party hierarchy for activities organised by groups not under their control. The reluctance of the ruling party to permit its members to join the activities of other organisations may be the concern that they will get ideas that are different from those held by the party leadership. The concern may be that these different ideas will either corrupt the ruling party members or cause dissent within the ranks of the ruling party. But lasting reform in a plural society requires precisely this exposure. If 90 percent of surveyed youth in Jaffna are worried about land issues, then engaging them, rather than shielding party representatives from uncomfortable conversations, is essential for accurate problem identification.

North Star

The Leader of the Lanka Sama Samaja Party (LSSP), Prof Tissa Vitarana, who passed away last week, gave the example for national level problem solving. As a government minister he took on the challenge the protracted ethnic conflict that led to three decades of war. He set his mind on the solution and engaged with all but never veered from his conviction about what the solution would be. This was the North Star to him, said his son to me at his funeral, the direction to which the Compass (Malimawa) pointed at all times. Prof Vitarana held the view that in a diverse and plural society there was a need to devolve power and share power in a structured way between the majority community and minority communities. His example illustrates that engagement does not require ideological capitulation. It requires clarity of purpose combined with openness to dialogue.

The ethnic and religious peace that prevails today owes much to the efforts of people like Prof Vitarana and other like-minded persons and groups which, for many years, engaged as underdogs with those who were more powerful. The commitment to equality of citizenship, non-racism, non-extremism and non-discrimination, upheld by the present government, comes from this foundation. But the NPC survey suggests that symbolic recognition and improved daily safety are not enough. Respondents prioritise personal safety, truth regarding missing persons, return of land, language use and reduction of military involvement. They are also asking for jobs after graduation, local economic opportunity, protection of property rights, and tangible improvements that allow them to remain in Jaffna rather than migrate.

If solutions are to be lasting they cannot be unilaterally imposed by one party on the others. Lasting solutions cannot be unilateral solutions. They must emerge from a shared diagnosis of the country’s deepest problems and from a willingness to address the negative sentiments that persist beneath the surface of cautious optimism. Only then can progress be secured against reversal and anchored in the consent of the wider polity. Engaging with the opposition can help mitigate the hyper-confrontational and divisive political culture of the past. This means that the ruling party needs to consider not only how to protect its existing members by cloistering them from those who think differently but also expand its vision and membership by convincing others to join them in problem solving at multiple levels. This requires engagement and not avoidance or withdrawal.

 

by Jehan Perera

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Unpacking public responses to educational reforms

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A pro-government demonstration calling for the implementation of the education reforms. (A file photo)

As the debate on educational reforms rages, I find it useful to pay as much attention to the reactions they have excited as we do to the content of the reforms. Such reactions are a reflection of how education is understood in our society, and this understanding – along with the priorities it gives rise to – must necessarily be taken into account in education policy, including and especially reform. My aim in this piece, however, is to couple this public engagement with critical reflection on the historical-structural realities that structure our possibilities in the global market, and briefly discuss the role of academics in this endeavour.

Two broad reactions

The reactions to the proposed reforms can be broadly categorised into ‘pro’ and ‘anti’. I will discuss the latter first. Most of the backlash against the reforms seems to be directed at the issue of a gay dating site, accidentally being linked to the Grade 6 English module. While the importance of rigour cannot be overstated in such a process, the sheer volume of the energies concentrated on this is also indicative of how hopelessly homophobic our society is, especially its educators, including those in trade unions. These dispositions are a crucial part of the reason why educational reforms are needed in the first place. If only there was a fraction of the interest in ‘keeping up with the rest of the world’ in terms of IT, skills, and so on, in this area as well!

Then there is the opposition mounted by teachers’ trade unions and others about the process of the reforms not being very democratic, which I (and many others in higher education, as evidenced by a recent statement, available at https://island.lk/general-educational-reforms-to-what-purpose-a-statement-by-state-university-teachers/ ) fully agree with. But I earnestly hope the conversation is not usurped by those wanting to promote heteronormativity, further entrenching bigotry only education itself can save us from. With this important qualification, I, too, believe the government should open up the reform process to the public, rather than just ‘informing’ them of it.

It is unclear both as to why the process had to be behind closed doors, as well as why the government seems to be in a hurry to push the reforms through. Considering other recent developments, like the continued extension of emergency rule, tabling of the Protection of the State from Terrorism Act (PSTA), and proposing a new Authority for the protection of the Central Highlands (as is famously known, Authorities directly come under the Executive, and, therefore, further strengthen the Presidency; a reasonable question would be as to why the existing apparatus cannot be strengthened for this purpose), this appears especially suspect.

Further, according to the Secretary to the MOE Nalaka Kaluwewa: “The full framework for the [education] reforms was already in place [when the Dissanayake government took office]” (https://www.wsws.org/en/articles/2025/08/12/wxua-a12.html, citing The Morning, July 29). Given the ideological inclinations of the former Wickremesinghe government and the IMF negotiations taking place at the time, the continuation of education reforms, initiated in such a context with very little modification, leaves little doubt as to their intent: to facilitate the churning out of cheap labour for the global market (with very little cushioning from external shocks and reproducing global inequalities), while raising enough revenue in the process to service debt.

This process privileges STEM subjects, which are “considered to contribute to higher levels of ‘employability’ among their graduates … With their emphasis on transferable skills and demonstrable competency levels, STEM subjects provide tools that are well suited for the abstraction of labour required by capitalism, particularly at the global level where comparability across a wide array of labour markets matters more than ever before” (my own previous piece in this column on 29 October 2024). Humanities and Social Sciences (HSS) subjects are deprioritised as a result. However, the wisdom of an education policy that is solely focused on responding to the global market has been questioned in this column and elsewhere, both because the global market has no reason to prioritise our needs as well as because such an orientation comes at the cost of a strategy for improving the conditions within Sri Lanka, in all sectors. This is why we need a more emancipatory vision for education geared towards building a fairer society domestically where the fruits of prosperity are enjoyed by all.

The second broad reaction to the reforms is to earnestly embrace them. The reasons behind this need to be taken seriously, although it echoes the mantra of the global market. According to one parent participating in a protest against the halting of the reform process: “The world is moving forward with new inventions and technology, but here in Sri Lanka, our children are still burdened with outdated methods. Opposition politicians send their children to international schools or abroad, while ours depend on free education. Stopping these reforms is the lowest act I’ve seen as a mother” (https://www.newsfirst.lk/2026/01/17/pro-educational-reforms-protests-spread-across-sri-lanka). While it is worth mentioning that it is not only the opposition, nor in fact only politicians, who send their children to international schools and abroad, the point holds. Updating the curriculum to reflect the changing needs of a society will invariably strengthen the case for free education. However, as mentioned before, if not combined with a vision for harnessing education’s emancipatory potential for the country, such a move would simply translate into one of integrating Sri Lanka to the world market to produce cheap labour for the colonial and neocolonial masters.

According to another parent in a similar protest: “Our children were excited about lighter schoolbags and a better future. Now they are left in despair” (https://www.newsfirst.lk/2026/01/17/pro-educational-reforms-protests-spread-across-sri-lanka). Again, a valid concern, but one that seems to be completely buying into the rhetoric of the government. As many pieces in this column have already shown, even though the structure of assessments will shift from exam-heavy to more interim forms of assessment (which is very welcome), the number of modules/subjects will actually increase, pushing a greater, not lesser, workload on students.

A file photo of a satyagraha against education reforms

What kind of education?

The ‘pro’ reactions outlined above stem from valid concerns, and, therefore, need to be taken seriously. Relatedly, we have to keep in mind that opening the process up to public engagement will not necessarily result in some of the outcomes, those particularly in the HSS academic community, would like to see, such as increasing the HSS component in the syllabus, changing weightages assigned to such subjects, reintroducing them to the basket of mandatory subjects, etc., because of the increasing traction of STEM subjects as a surer way to lock in a good future income.

Academics do have a role to play here, though: 1) actively engage with various groups of people to understand their rationales behind supporting or opposing the reforms; 2) reflect on how such preferences are constituted, and what they in turn contribute towards constituting (including the global and local patterns of accumulation and structures of oppression they perpetuate); 3) bring these reflections back into further conversations, enabling a mutually conditioning exchange; 4) collectively work out a plan for reforming education based on the above, preferably in an arrangement that directly informs policy. A reform process informed by such a dialectical exchange, and a system of education based on the results of these reflections, will have greater substantive value while also responding to the changing times.

Two important prerequisites for this kind of endeavour to succeed are that first, academics participate, irrespective of whether they publicly endorsed this government or not, and second, that the government responds with humility and accountability, without denial and shifting the blame on to individuals. While we cannot help the second, we can start with the first.

Conclusion

For a government that came into power riding the wave of ‘system change’, it is perhaps more important than for any other government that these reforms are done for the right reasons, not to mention following the right methods (of consultation and deliberation). For instance, developing soft skills or incorporating vocational education to the curriculum could be done either in a way that reproduces Sri Lanka’s marginality in the global economic order (which is ‘system preservation’), or lays the groundwork to develop a workforce first and foremost for the country, limited as this approach may be. An inextricable concern is what is denoted by ‘the country’ here: a few affluent groups, a majority ethno-religious category, or everyone living here? How we define ‘the country’ will centrally influence how education policy (among others) will be formulated, just as much as the quality of education influences how we – students, teachers, parents, policymakers, bureaucrats, ‘experts’ – think about such categories. That is precisely why more thought should go to education policymaking than perhaps any other sector.

(Hasini Lecamwasam is attached to the Department of Political Science, University of Peradeniya).

Kuppi is a politics and pedagogy happening on the margins of the lecture hall that parodies, subverts, and simultaneously reaffirms social hierarchies.

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Chef’s daughter cooking up a storm…

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Emma being congratulated on her debut Sinhala single // Emma Shanaya: At the launch of ‘Sanasum Mawana

Don Sherman was quite a popular figure in the entertainment scene but now he is better known as the Singing Chef and that’s because he turns out some yummy dishes at his restaurant, in Rajagiriya.

However, now the spotlight is gradually focusing on his daughter Emma Shanaya who has turned out to be a very talented singer.

In fact, we have spotlighted her in The Island a couple of times and she is in the limelight, once gain.

When Emma released her debut music video, titled ‘You Made Me Feel,’ the feedback was very encouraging and at that point in time she said “I only want to keep doing bigger and greater things and ‘You Made Me Feel’ is the very first step to a long journey.”

Emma, who resides in Melbourne, Australia, is in Sri Lanka, at the moment, and has released her very first Sinhala single.

“I’m back in Sri Lanka with a brand new single and this time it’s a Sinhalese song … yes, my debut Sinhala song ‘Sanasum Mawana’ (Bloom like a Flower).

“This song is very special to me as I wrote the lyrics in English and then got it translated and re-written by my mother, and my amazing and very talented producer Thilina Boralessa. Thilina also composed the music, and mix and master of the track.”

Emma went on to say that instead of a love song, or a young romance, she wanted to give the Sri Lankan audience a debut song with some meaning and substance that will portray her, not only as an artiste, but as the person she is.

Says Emma: “‘Sanasum Mawana’ is about life, love and the essence of a woman. This song is for the special woman in your life, whether it be your mother, sister, friend, daughter or partner. I personally dedicate this song to my mother. I wouldn’t be where I am right now if it weren’t for her.”

On Friday, 30th January, ‘Sanasum Mawana’ went live on YouTube and all streaming platforms, and just before it went live, she went on to say, they had a wonderful and intimate launch event at her father’s institute/ restaurant, the ‘Don Sherman Institute’ in Rajagiriya.

It was an evening of celebration, good food and great vibes and the event was also an introduction to Emma Shanaya the person and artiste.

Emma also mentioned that she is Sri Lanka for an extended period – a “work holiday”.

“I would like to expand my creativity in Sri Lanka and see the opportunities the island has in store for me. I look forward to singing, modelling, and acting opportunities, and to work with some wonderful people.

“Thank you to everyone that is by my side, supporting me on this new and exciting journey. I can’t wait to bring you more and continue to bloom like a flower.”

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