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Editorial

Soft punches thrown at heavyweights

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Saturday 11th January, 2025

The government has announced a concessionary loan scheme for small and medium-scale (SMS) rice millers and cooperative societies to purchase paddy during the current Maha season. The Treasury has set aside Rs. 10 bn for that purpose, we are told. Successive governments have provided such loans to SMS millers.

One may recall that in February 2024, the Treasury announced that the SMS millers and warehouse owners could obtain loans ranging from Rs. 25 million to Rs. 50 million each under a concessionary pledge loan scheme for paddy purchase during the 2023-2024 Maha season. It was reported that the loans would have to be repaid in six months, and Rs. 9 billion would be disbursed. But that loan scheme did not help make a dent on the problem of powerful millers dominating the paddy market. Such measures could therefore be considered soft punches thrown at heavyweights.

It is doubtful whether the loan amounts to be made available to the SMS millers and cooperative societies will be adequate vis-à-vis the financial prowess of the big-time millers they have to vie with against tremendous odds in purchasing paddy. Most of all, they do not receive funds in time for the commencement of harvesting. The state machinery and lending institutions are geared towards serving the interests of the wealthy millers, who also have politicians on a string.

Worse, large millers double as loan sharks in the rural sector. Many paddy farmers obtain loans from them before the commencement of cultivation seasons on the strict condition that they do not sell their paddy to anyone else. Thus, the Millers’ Mafia keeps the farmers in bondage to all intents and purposes and buys their paddy at unconscionably low prices. Some agricultural experts have pointed out that these millers also keep part of their paddy stocks with the farmers who are beholden to them, and hence it is difficult to trace the hoarded paddy.

Interestingly, the rich millers have taken on the heartless microfinance companies that provide loans to farmers at exorbitant interest rates, and employ draconian recovery methods. They accuse the latter of exploiting farmers! There is hardly any difference between the Millers’ Mafia and the ruthless microfinance companies, where the exploitation of the farming community is concerned. No government has made any serious effort to liberate the hapless farmers from the clutches of the unscrupulous millers and other Shylocks.

President Anura Kumara Dissanayake declared in his New Year message that his government had, inter alia, the goal of eliminating rural poverty high on its agenda. Economically empowering farmers will be half the battle in tackling rural poverty. This ambitious goal however will remain elusive as long as politicians and political parties benefit from the largesse of the big-time millers and baulk at doing what needs to be done to protect the farming community against exploitative practices.

Let the government be urged to make funds available to the SMS millers and cooperative societies expeditiously in sufficient amounts if it is genuinely desirous of making the paddy and rice markets really competitive to safeguard the interests of farmers and consumers. Usually, by the time the government reaches the starting block, the big-time millers are already halfway down the track, sprinting.

The provision of soft loans for paddy purchase is welcome, but much more needs to be done to prevent paddy/rice market manipulations and the exploitation of farmers and consumers. The need for a pro-people government capable of dealing with the exploiters in the garb of millers and wholesalers, with a firm hand, cannot be overstated.



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Editorial

Ubiquitous scams

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Wednesday 14th January, 2026

The police have warned of an escalation in online financial scams. There have been numerous complaints of such frauds, and fraudsters often offer online employment opportunities, investment schemes or other financial benefits, luring victims into transferring money to their accounts, the police have said.

The commonest online scams in Sri Lanka, according to cybersecurity warnings during the past two years, are deceptive loan schemes, phishing links, fake job offers, work-from-home frauds, love traps, pyramid schemes, investment and crypto frauds, lottery prize and shopping rackets, and duping people into sharing their banking details with unknown parties. Common precautions against these scams are said to include ignoring suspicious links, never sharing passwords or OTPs with others, and being sceptical of lottery wins and unsolicited employment or investment offers.

Scams are as old as the hills; they have proliferated during the past couple of decades due to the phenomenal expansion of social media. Humans have a penchant for trust and leaps of faith. One of the earliest known scams occurred in 300 BC, when two Greek sailors sank their cargo ship to cheat money lenders. Historians inform us that some members of the Praetorian Guard ‘sold’ the Roman Empire, of all things, after murdering their master. Sir Isaac Newton struggled to outwit forgers following his appointment as the Warden of the Royal Mint. A con-artist sold the Eiffel Tower to an unsuspecting buyer about 100 years ago. Such instances abound in world history.

Scams mushroom at all levels of society in this country, and it is not possible for the police and other state institutions to crack down on all of them. There’s said to be a sucker born every minute. The same is true of scammers. Most Sri Lankans do not heed warnings and invest money and even their nest eggs in fraudulent schemes only to regret. The scam victims, except those who invest their black money, deserve sympathy and help, and everything possible must be done to bring the scammers to justice. Various factors drive the ordinary people to take such risks and fall prey to scammers, one being low banking returns, but it is debatable whether taxpayers’ money should be used to compensate those who lose their clandestine investments.

Besides online scammers, loan sharks operating in the guise of microfinance companies have become a curse. They exploit the poor, especially those in the rural sector, with impunity. Many borrowers end up losing their belongings, including agricultural equipment put up as collateral. They have no one to turn to. On Monday (12), the Sectoral Oversight Committee on Economic Development and International Relations approved the proposed Microfinance and Credit Regulatory Authority Bill, subject to amendments. It is hoped that we are not going to witness another false dawn, and the laws this vital Bill seeks to make will help liberate the poor from the clutches of the microfinance Shylocks.

Perhaps, the biggest scams in this country are not in the financial sector but in politics, and they are taken for granted. Remember the much-advertised political promises that helped politicians hoodwink the public and savour power—‘rice from the moon’, ‘eight pounds of grain plus a righteous society’, ‘a country free from corruption and violence’, ‘a prosperous future’, ‘good governance’ and ‘a beautiful life’? The best way to deal with those who are responsible for such politico-social scams is to make election manifestos and campaign promises legally binding, and change the existing electoral system to introduce the recall mechanism so that it will be possible to unseat the crafty politicians who secure state power by making umpteen Machiavellian promises and betray people’s trust. But the question is whether the politicians who alone can make such laws will ever legislate for the politico-social scams in question to be brought to an end. We are reminded of a question Juvenal famously asked about two millennia ago: “Who guards the guards?”

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Editorial

A dirty political war

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Tuesday 13th January, 2026

What began as a debate on the government’s education reforms has descended into a dirty political war, with the propaganda brigades of both the JVP/NPP and the Opposition carrying out vilification campaigns against the key figures in the rival camps. Prime Minister Dr. Harini Amarasuriya, who is also the Minister of Education, has become a victim of a savage character assassination campaign, which no reasonable person will hesitate to condemn unreservedly. Shame on those who have stooped so low as to carry out personal attacks on her!

What has led to the current dispute in the education sector is basically the government’s intransigence. While claiming to be willing to consider dissenting views, it is all out to shove its reform package down the throats of other key stakeholders who unfortunately want the baby also thrown out with the bathwater, so to speak. A prerequisite for resolving the current conflict, which has the potential to cripple the education sector, is for both warring parties to soften their stands and negotiate.

President Anura Kumara Dissanayake is scheduled to meet the representatives of the trade unions representing teachers and principals shortly, we are told. One can only hope that two sides will move towards a rapprochement, which is the need of the hour.

The government ought to stop cherishing the delusion that its mandate is carte blanche for it to do as it pleases with no heed for dissent. It is only wishful thinking that the government will be able to ensure the implementation of its education reforms without the fullest cooperation of the frontline stakeholders—school teachers and principals.

Even the staunchest opponents of the education reforms at issue agree that the education system has to be reformed. What they are opposing tooth and nail is the manner in which the government has set about the task of introducing education reforms and its attempts to impose a fait accompli on other key stakeholders. The Opposition is not without a political agenda where its campaign against the education reforms is concerned; it will go to any extent to gain political mileage.

The government has erred by compressing the process of formulating education reforms into a year or so and proceeding at a pell-mell pace to implement them. Teachers’ and principals’ trade unions are of the view that some modules were prepared in just three months.

By rushing to reform the education sector, the government has provided the Opposition with a fresh rallying point and the latter is making the most of it. Various associations have sprung up overnight purportedly to ‘save free education’, and some Opposition politicians are planning to launch fasts against the education reforms.

A collective of Opposition parties held a protest in Matugama, the other day, claiming to safeguard free education. A group of NPP supporters staged a demonstration in the same township against the malicious propaganda attacks on Prime Minister Amarasuriya. They vehemently condemned the Opposition for insulting women. Their message must have struck a responsive chord with the public regardless what the Opposition politicians and their propaganda hitmen may say about them. Worryingly, the female JVP/NPP supporters have remained silent on scurrilous attacks the pro-government propagandists carry out on women in the Opposition; they have launched a vilification campaign against a young woman who spoke at a joint Opposition rally at Nugegoda recently. Politicians and propagandists in both the government and the Opposition must do unto others as they would have others do unto them.

Since all stakeholders agree that the education system needs reform, the government should put its controversial reform package on hold immediately and invite teachers, principals, the Opposition and others to a serious discussion.

The government would do well to refrain from crossing the Rubicon and be flexible enough to listen to the other stakeholders and make a course correction. It is hoped that the focus of the talks to be held between the government and the opponents of the education reforms will be on how to retain the baby while throwing away the bathwater.

 

 

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Editorial

Coal and crooks

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Monday 12th January, 2026

Corruption has eaten into the vitals of Sri Lanka’s power and energy sectors to such an extent that one wonders whether ‘C’ in the initialisms of the Ceylon Electricity Board (CEB) and the Ceylon Petroleum Corporation (CPC) stands for ‘Corrupt’. Pressure is mounting on the government to cancel a questionable coal tender which is causing staggering losses to the state.

We reported on the coal scam at issue about three months ago, turning the spotlight on the fraudulent procurement of substandard coal. Following our report, the Opposition and the anti-corruption outfits did their own investigations and unearthed more information about the questionable deal. It has been revealed that the government extended the closing date for bidding and changed the eligibility criteria for the bidders in favour of a company of its choice. The company that won the tender has a history of supplying low-quality goods to Sathosa, and its owner and local agent are reportedly under a cloud. A complaint has been lodged with the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) against Minister of Energy Kumara Jayakody over alleged misappropriation of state funds when he was in the Fertiliser Corporation. It is against this backdrop that the coal scam in question should be viewed.

The Opposition took up the issue of substandard coal imports, in Parliament, last week, accusing the NPP government of trying to cover up the scam. SLPP MP D.V. Chanaka told the House that only 107 metric tonnes of coal were usually required per hour to generate 300 megawatts of electricity but now 120 metric tonnes of newly imported coal had to be burnt to produce the same amount of power. About 13 extra tonnes of coal are required per hour due to the scam, according to Chanaka, who also said tests conducted at the Lakvijaya Coal Power Plant had revealed that the calorific value of the first two newly imported coal shipments ranged from 5,600 and 5,800 kilocalories per kilogram (kcal/kg). But under the coal tender guidelines, the minimum required calorific value was 5,900 kcal/kg. Energy Minister Kumar Jayakody is reported to have said the Lakvijaya laboratory is not an accredited facility, and therefore its test results are not acceptable; action will be taken when the test report from an accredited laboratory is received.

Curiously, the government has questioned the integrity of tests conducted by a Sri Lankan laboratory that has tested coal shipments all these years to ascertain their quality. How come the NPP government has suddenly refused to accept the accuracy of the tests conducted by this lab? Is it trying to go on testing the substandard coal until it gets the result it wants so that it can continue to import low-quality coal and help its members line their pockets? In fact, there is no need for any laboratory testing to prove that there is something terribly wrong with the coal procured under the current dispensation; that is clearly borne out by the fact that it takes 120 tonnes of newly imported coal to produce a particular amount of electricity previously generated with only 107 tonnes of standard of coal.

The NPP government seems to have taken a leaf out of the book of the previous administration, which became a metaphor for corruption. It too resorts to dilatory tactics and obfuscation to cover up scams. It has succeeded in diverting the public’s attention from the Ondansetron scam by claiming that more tests need to be conducted; the Opposition, the media, and civil society organisations have forgotten that pharmaceutical racket for all intents and purposes. It is using the same modus operandi in the case of the coal scam. Anti-corruption campaigners must remain intensely focused on all questionable deals and monitor the progress in investigations into them. It was their vigilance and relentless campaigning that led to the arrest and prosecution of Minister Keheliya Rambukwella and some panjandrums over the procurement of a fake cancer drug.

Given the sheer number of corrupt deals and shameful attempts to cover them up, under the incumbent government, which came to power, vowing to eliminate corruption and usher in good governance, one may say, with apologies to Immanuel Kant, out of such crooked wood as that which politicians and officials are made of, nothing straight can be fashioned.

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