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Spending smarter to boost growth, lessons for Sri Lanka

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Sri Lanka stands at a critical juncture. After decades of ambitious infrastructure projects, expanding public sector employment, and rising debt burdens, the nation’s 2022 economic crisis exposed fundamental weaknesses in how public resources are managed. As the country implements IMF-supported reforms, a crucial question emerges: Can Sri Lanka achieve robust growth not by spending more, but by spending smarter? Recent International Monetary Fund research analysing 174 economies offers compelling insights.

The Efficiency Paradox: Rwanda’s Success Story

Rwanda’s remarkable transformation over two decades, achieving near-universal mobile phone access, doubling electricity coverage, and adding 20 years to life expectancy, was accomplished with relatively modest spending increases from $150 to $420 per person, still below the sub-Saharan African average. The critical factor was not the quantum of spending, but its efficiency.

This stands in stark contrast to Sri Lanka’s experience. Despite significantly higher per capita spending, Sri Lanka’s development outcomes have been inconsistent, with persistent inefficiencies in public investment and service delivery.

Sri Lanka’s Spending Dilemma: Contradictions and Consequences

The Asian Development Bank (2022) notes that Sri Lanka’s public sector employment as a percentage of total employment stands at approximately 13.5 percent, significantly higher than comparable economies like Vietnam (7 percent) or Malaysia (9 percent). This allocation crowds out productive spending on infrastructure and human capital development.

The Public Wage Bill Conundrum

Sri Lanka’s most glaring fiscal contradiction lies in its bloated public sector. While the IMF analysis shows that public wage bills account for about a quarter of total expenditure in most countries, Sri Lanka’s public wage bill has historically consumed nearly 30 percent of government revenue, far exceeding regional comparators.

Infrastructure Investment: Quantity Without Quality

The IMF research indicates that in most countries, public investment has declined by 2 percentage points of total expenditure over the past two decades. Sri Lanka has moved in the opposite direction, yet with troubling outcomes.

Between 2005 and 2019, Sri Lanka embarked on an infrastructure spending spree, with public investment averaging 6-7 percent of GDP. The Hambantota Port, Mattala Airport, and the Lotus Tower became symbols of this era, projects financed largely through commercial borrowing from China, with minimal economic returns.

While Sri Lanka’s infrastructure stock increased substantially, the productivity gains were negligible due to poor project selection, location inefficiencies, and limited integration with economic clusters. The public investment efficiency index, developed by the IMF, places Sri Lanka significantly below best-practice frontiers, suggesting that approximately 40 percent of potential infrastructure value is lost to inefficiencies (Figure 1).

Score Range

: 0–100, with concentric circles at 25-point intervals.

Figure 1: Multi-dimensional Efficiency Scorecard

The post-2022 reform period shows a sharp contraction in public investment, from 6.5 percent of GDP in 2019 to barely 2 percent in 2023, reflecting fiscal constraints rather than strategic reallocation. This reactionary approach risks undermining long-term growth prospects.

Education and Human Capital: Underinvestment in the Future

Education spending has remained modest at about 11 percent of total spending in most countries, and Sri Lanka follows this pattern, but with concerning qualitative outcomes. However, education spending as a percentage of GDP, Sri Lanka’s reported figure was about 1.83 percent in 2023, which is very low compared to the world average of around 4.4 percent, and well below the UNESCO-recommended 4-6 percent and significantly lower than regional leaders like Vietnam (5.7 percent) and Malaysia (4.8 percent).

Moreover, despite achieving impressive literacy rates (92 percent) and near-universal primary enrollment, Sri Lanka’s education system suffers from significant inefficiencies. More critically, learning outcomes have stagnated. The World Bank’s (2021) Human Capital Index reveals that a child born in Sri Lanka today will be only 60 percent as productive as they could be with complete education and full health, below Vietnam (69 percent) and Thailand (61 percent). This suggests that both the quantum and quality of education spending require urgent attention. The system suffers from misallocation.

Healthcare Efficiency: A Mixed Legacy

Sri Lanka’s healthcare system has historically been celebrated as a development success, achieving middle-income health outcomes with lower-middle-income resources. However, recent trends reveal emerging contradictions.

Public health expenditure remains around 1.7 percent of GDP, among the lowest in Asia. The system increasingly suffers from resource constraints, with frequent medicine shortages, deteriorating infrastructure, and so-called brain-drain of medical professionals. Meanwhile, out-of-pocket health expenditures have risen sharply, indicating declining efficiency and equity in service delivery.

The Path Forward: Evidence-Based Reform

Without reinventing the wheel, many frontier countries have already shown that smart spending hinges on three key strategies: merit-based recruitment, performance-linked compensation, and the strategic redeployment of public servants—from overstaffed administrative roles to critical service delivery functions in education, healthcare, and agricultural extension.

Rebalancing the Expenditure Mix

IMF analysis demonstrates that shifting 1 percent of GDP from lower-impact government consumption into infrastructure investment raises output by about 1.5 percent in advanced economies and 3.5 percent in emerging markets over approximately 25 years. Redirecting the same amount toward human capital investment can yield gains of around 3 to 6 percent, respectively.

For Sri Lanka, this implies a fundamental reorientation: gradually reducing the public sector wage bill while simultaneously increasing productive spending on physical and human capital. The political economy challenge is formidable, civil service reform threatens entrenched interests, but unavoidable for fiscal sustainability.

Improving Investment Efficiency

The research shows that improving investment efficiency by 10 percentage points can boost output gains by 1.4 percent, with faster closure of these gaps yielding greater and quicker payoffs. Sri Lanka requires comprehensive public investment management reforms, including:

Rigorous project appraisal

: Implementing cost-benefit analysis for all major projects, with independent technical reviews before approval. The current practice of approving mega-projects through Cabinet decisions, without transparent feasibility studies, must end.

Competitive procurement:

Strengthening procurement frameworks to ensure value for money. The prevalence of single-source, government-to-government contracts, particularly with Chinese state enterprises, has contributed to inflated costs and poor quality.

Effective project management

: Establishing dedicated project management units with technical expertise, clear accountability structures, and real-time monitoring systems. The recent Public Investment Management Assessment (PIMA) by the IMF identified critical weaknesses in project implementation capacity.

Strategic prioritisation

: Focusing on high-return investments in economic corridors, export-oriented infrastructure, and climate-resilient projects rather than politically motivated white elephants.

Enhancing Human Capital Investment

Complementary policies matter significantly, in emerging and developing economies, combining infrastructure spending with education spending balances near-term and longer-term gains, as physical capital boosts output quickly while human capital builds future productivity.

Therefore, Sri Lanka must urgently:

Increase education spending

to at least 4 percent of GDP, with particular focus on STEM (Science, Technology, Engineering and Mathematics) and education, vocational training aligned with labour market demands, and digital literacy. The Skills Sector Development Programme, supported by the World Bank, provides a useful framework.

Reform education quality:

Move beyond enrollment metrics to learning outcomes. This requires comprehensive curriculum reform, improved teacher training and retention (possibly through performance-based incentives), investment in educational technology, and strengthened school-industry linkages.

Expand healthcare financing:

Gradually increase public health expenditure toward 3 percent of GDP while simultaneously improving efficiency through digital health systems, preventive care strengthening, and strategic purchasing mechanisms.

Leverage technology:

Digital platforms can dramatically improve service delivery efficiency, from online education resources to telemedicine to e-government services. Estonia’s digital transformation, achieved despite limited resources, provides an instructive model.

Political Economy Realities

The technical solutions are well understood; implementation is where Sri Lanka consistently falters. The fundamental obstacle is political, short electoral cycles incentivise visible consumption spending over long-gestation investments in efficiency and human capital.

Breaking this cycle requires institutional reforms: strengthening fiscal rules, enhancing transparency in budget formulation, empowering independent fiscal councils, and building cross-party consensus on development. Appointments such as Duminda Hulangamuwa and Professor Anil Fernando as senior economic advisors on an honourary basis to assist on economic and financial matters by President Anura Kumara Dissanayake, in late 2024, represent a small step in this direction, but much stronger institutional safeguards are needed.

Additionally, Dr. Hans Wijayasuriya was appointed Chief Advisor to the President on Digital Economy, in October 2024, which is a specific advisory role within the presidential secretariat framework rather than a separate office.

Civil society engagement is equally crucial. Public expenditure tracking initiatives, community scorecards for service delivery, and transparent disclosure of project details can create accountability pressures that complement formal institutional reforms.

Conclusion: Efficiency as Economic Strategy

The nation can no longer afford the luxury of inefficient spending, neither fiscally nor economically. The evidence is clear: spending smarter, not necessarily more, is the pathway to sustainable growth and improved living standards. Importantly, smarter spending allocation can also reduce income inequality, a critical consideration for Sri Lanka, where rising inequality threatens social cohesion.

The question is whether Sri Lanka’s political leadership possesses the courage and the will to choose long-term national interest over short-term political expediency. The answer will determine whether the current crisis becomes a catalyst for transformation or merely another missed opportunity in the nation’s troubled economic history.

(The writer, a senior Chartered Accountant and professional banker, is Professor at SLIIT, Malabe. The views and opinions expressed in this article are personal.)



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Features

El Niño and Sri Lanka: Safeguarding food security in uncertain times

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El Niño

by Prof. Janaka Wijesinghe, Dr. Nishala Wedamulla and Gayathma Weerawanni

As climate variability becomes an increasing challenge for nations worldwide, Sri Lanka faces growing concerns over the impact of El Niño, a natural climate phenomenon that can disrupt rainfall patterns, increase temperatures, and place additional pressure on agricultural production. For a country where agriculture remains a vital part of the economy and rural livelihoods, preparing for climate uncertainty has become essential to safeguarding food security. Food security includes not only the availability of food but also access to nutritious and affordable food.

Climate-induced disruptions to agricultural production can affect all dimensions of food security. Vulnerable populations, including low-income households and rural communities, are often the most affected by fluctuations in food supply and market prices.

Cause of the phenomenon

El Niño occurs when sea surface temperatures in the central and eastern Pacific Ocean become unusually warmer than normal, influencing global weather patterns. Although the phenomenon originates thousands of kilometres away, its effects are felt across many regions, including South Asia. According to experts, in Sri Lanka, El Niño events can contribute to irregular rainfall, prolonged dry periods, higher temperatures, and changes in the timing and intensity of monsoon rains.

Sri Lanka’s agriculture sector is particularly vulnerable to these climate fluctuations and faces increasing challenges from climate variability, with the El Niño phenomenon emerging as one of the most significant threats to national food security. As global temperatures continue to rise, understanding and preparing for the impacts of El Niño has become essential for ensuring a stable food supply and protecting the livelihoods of millions of Sri Lankans. Mainly, rice, the staple food of Sri Lanka, depends heavily on reliable water availability.

Reduced rainfall during critical cultivation periods can lead to drought conditions, lower reservoir levels, and can affect paddy yields, while excessive rainfall at unexpected times can damage the crop through flooding, diseases, and poor field conditions. In addition, other crops, including vegetables, fruits, and plantation crops, may also experience productivity losses due to heat stress and water shortages. These impacts can result in food shortages, rising food prices, and reduced incomes for farming communities.

The consequences of climate-related agricultural disruptions extend beyond farmers. Reduced crop production can lead to increased food prices, greater dependence on imports, and challenges in maintaining a stable food supply. For vulnerable communities, especially small-scale farmers and low-income households, these impacts can significantly affect nutrition and livelihoods.

Need to reduce postharvest losses

In such circumstances, reducing postharvest losses becomes a critical component of national food security strategies. Food that is produced but lost after harvesting represents wasted land, water, energy, labour, and financial resources invested in the production. In Sri Lanka, significant quantities of fruits, vegetables, grains, and other agricultural commodities are lost due to inadequate harvesting practices, poor postharvest handling, unsuitable storage conditions, inefficient transportation, and limited processing facilities. During periods of climate stress, such as El Niño-induced droughts, these losses become even more serious because the available food supply is already under pressure. Minimising postharvest losses can, therefore, increase food availability without requiring additional land or agricultural inputs. Hence, strengthening postharvest management can make a major contribution to climate resilience. Improved harvesting techniques, better packaging, temperature-controlled storage, efficient transportation systems, and modern processing technologies can extend the shelf life of agricultural products and reduce wastage.

How to face challenges

Promoting small-scale processing and value addition can also help farmers preserve surplus production and maintain income during periods of market fluctuations. Achieving food security in an era of climate uncertainty requires a comprehensive approach that considers both production and preservation. Increasing agricultural productivity alone is not sufficient if a significant portion of harvested food is lost before reaching consumers. Reducing postharvest losses should be recognised as one of the most practical, cost-effective, and sustainable solutions for ensuring food availability.

Moreover, Sri Lanka has opportunities to strengthen its resilience against El Niño-related challenges. Improving climate forecasting systems and ensuring that farmers receive timely weather information can help communities make better decisions on planting dates, crop selection, and water management. Climate-smart agricultural practices, such as drought-tolerant crop varieties, efficient irrigation methods, soil conservation, and improved water storage, can reduce risks associated with changing weather patterns. Water management remains one of the most important strategies for climate resilience. Expanding rainwater harvesting, maintaining irrigation systems, and protecting watersheds can help communities manage water shortages during dry periods.

Importance of climate-smart agriculture

At the same time, Sri Lanka must continue to promote climate-smart agricultural practices. The use of drought-tolerant crop varieties, efficient irrigation systems, soil conservation methods, and improved weather forecasting services can help farmers adapt to changing climate conditions. Providing timely climate information enables farmers to make informed decisions regarding crop selection, planting schedules, and resource management.

Investment in research and innovation will also play a key role. Agricultural institutions and researchers can support farmers by developing technologies and practices suited to changing climatic conditions. Promoting crop diversification can further reduce dependence on a limited number of crops and provide alternative sources of income during periods of climatic stress.

Food security in the face of climate change requires cooperation among government agencies, farmers, researchers, private-sector stakeholders, and communities. Early warning systems, disaster preparedness plans, and supportive agricultural policies can help minimise the effects of extreme climate events. As climate uncertainty becomes the new normal, proactive measures are essential to protect Sri Lanka’s food future. While El Niño presents significant challenges, strategic planning, innovation, and collaboration can help the nation build resilience and ensure that every citizen has access to safe, nutritious, and affordable food. More importantly, policy support is crucial in building a resilient food system. Government agencies, research institutions, and the private sector must work together to develop sustainable agricultural practices and strengthen food supply chains. Diversifying food production and reducing post-harvest losses can also contribute to greater food security.

El Niño as a stark reminder

El Niño is a reminder that climate challenges do not respect geographical boundaries. While Sri Lanka cannot control global climate phenomena, it can strengthen its ability to adapt and respond. By combining scientific knowledge, sustainable farming practices, and effective planning, the nation can protect its food systems and ensure a more secure future in an era of increasing climate uncertainty.

As the climate continues to change, preparedness is no longer an option; it is a necessity for protecting Sri Lanka’s food security and the livelihoods of generations to come.

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Getting organised for the new arrival

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BY Dr B. J. C. Perera
MBBS(Cey), DCH(Cey), DCH(Eng), MD(Paediatrics), MRCP(UK), FRCP(Edin), FRCP(Lond),
FRCPCH(UK), FSLCPaed, FCCP, Hony. FRCPCH(UK), Hony. FCGP(SL)
Specialist Consultant Paediatrician and Honorary Senior Fellow,
Postgraduate Institute of Medicine, University of Colombo, Sri Lanka.

An independent freelance medical correspondent

KEY POINTS

=Being parents of a newborn baby is a tremendous responsibility.

=To attend to the necessary chores and duties at home, the home set-up must be well organised.

=The routine care of a baby, throughout 24 hours, is a demanding one. But if things are well looked after and prearranged, it would make the task that much easier.

=It is a joint responsibility of the mother, as well as the father, and all other inmates of the same household.

At long last, the baby has arrived, and the parents will be taking him or her home. Usually in uncomplicated deliveries, even after Caesarean operations, the baby is sent home in a couple of days. It is generally a hectic time, and if steps have not already been taken to get things organised at home, it can be quite difficult for new parents. Getting things in shape should have started well before the baby’s birth, but even if he or she arrives earlier and unexpectedly, getting organised at that stage is important to make life easier for both parents. This is perhaps easier said than done, especially for a young couple, but it is a process that would pay dividends. All that is required is plenty of common sense. Getting organised for the newborn baby well in time will make life that much easier in the subsequent months and years to come.

An important thing to do is to arrange everything in the bedroom so that the ‘baby things’ are easily accessible and you know where to find each item. As an example, it should not be necessary to look high and low for nappy pins once a nappy has been put on the baby. What is advocated today is to keep the baby in the same bed as the parents, and this means an extra cot may not always be necessary. It would also provide a little more space in the room, which would otherwise have been taken up by a cot. However, a small baby cot is sometimes useful to put the baby to sleep and provide some rest and relaxation to the mother.

If the baby is kept on the same bed as the mother, there is no danger of the mother rolling over the baby during sleep, as the natural in-built maternal instincts would wake her up at the slightest touch from the baby or the tiniest noise from the baby.

Clothes and nappies

The clothes and nappies of the baby should be easily accessible and available at all times. It is not necessary to buy a new almirah or a cupboard for the baby. A couple of shelves of a cupboard that is already in the bedroom would do nicely. Even a small separate wooden or cane rack with shelves too would be more than adequate for this purpose. The secret is to still have sufficient room in your own bedroom to move about even after getting the baby’s things organised. Sweeping and cleaning the bedroom should be done every day. Some people elect to wet-mop the floor, which is a really good thing. These tasks should not take too much time and could be quickly attended to when the baby is resting quietly after a feed.

Other people in the household and perhaps the father of the baby could help in this regard. Battery torch lights and emergency lights for power failures should be kept in places that are easily accessible, even in the dark. It is no joke to start looking for these things when there is a loss of electrical power. One needs to be prepared, as such unexpected power failures are so very frequent in certain areas of the country. Incidentally, there is nothing against the use of electric fans in the bedroom where the baby is.

During very warm days, it will only make the baby more comfortable. It will not cause any illness. The same applies to air conditioners, provided they are maintained well and serviced regularly. If there is a telephone in the house, it would be worthwhile getting a cordless extension so that the mother does not have to run around in circles to answer the phone while attending to the needs of the baby. This is of course minimised completely today with the use of modern mobile phones.

Feeding the baby should not cause any problems at all. The need of the hour is to exclusively breastfeed for the first six months. THERE IS NO OTHER MILK THAT COMES EVEN CLOSE TO THE GOODNESS OF MOTHER’S MILK – FULL STOP; NO ARGUMENTS AND NO BUTS. There is extremely convincing and overriding scientific evidence for breast milk being the very best form of nutrition for a new arrival. It is the golden elixir of life, and there is nothing else, absolutely nothing else, that is as good as mother’s milk for a baby. The infant milk-food companies can even shout from the rooftops but they have no chance, whatsoever, against proven scientific medical evidence. It is also important to stress that babies need to be fed on demand and very definitely NOT BY THE CLOCK. All babies will indicate by various actions when they are hungry and feel the need to be fed.

Breastfeeding obviates need for bottles, etc.,

Exclusive breastfeeding would obviate the need for bottles, teats, cups, spoons, formula milk powder, sterilising equipment, etc. There is no extra cost involved as well. Government legislation has provided working mothers with sufficient maternity leave to feed their babies with human milk for at least the first four months. If there are ways of getting a little bit more leave to stretch it to six months, this should be explored to the fullest, as the benefits of exclusive breastfeeding are worth a lot more than money could buy. There are added benefits of breastfeeding such as control of the mother’s weight and figure as she burns up a significant number of calories in producing her milk.

When it is time to give the baby a bath, arrange everything you need around the place where you are going to bathe the baby. Towels, soap, etc., should be at arm’s length. If there is help available at home in the form of members of the extended family or domestic aides, this is the time you could really make use of them. When the mother gets used to the procedure, bathing a baby is no big deal. In most instances, it is a thing that both mother and baby would enjoy. Get the baby used to bathing as early as possible. This will prevent him or her from making an almighty fuss at bath time later on. Almost all babies love to be in water provided they are introduced to bathing very early in their lives.

The mother must arrange her mealtimes and resting periods to coincide with the times when the baby is quiet or is sleeping. Mother’s meals just need to be nutritious, and everyday foods are more than adequate. It is not necessary to go out of the way to provide her with expensive supplementary foods or additional forms of nutrition. There is no scientific evidence to say that certain foods are not good for nursing mothers. The notions of “heaty” foods and “cooling” foods have no scientific rationale.

Most authorities believe that a nursing mother could and should eat anything and everything. The only thing necessary is to provide a nicely balanced and adequate diet. The mother needs to get a sufficient and acceptable amount of sleep, especially during the day. This is particularly important because she may have to get up several times during the night to feed and change clothes of the baby. Steps must be taken to provide her with these essential periods of rest. Organising a routine to help her with this aspect would be most desirable.

Father’s work schedule

It is also advantageous for the father to get his work schedules and duties rearranged as much as possible and in such a manner so as to provide sufficient time at home to help in caring for the baby. This, of course, depends on the exact type of work that he is involved in. In each and every case, a genuine effort should be made to have quality time with the mother and the baby. This is particularly useful for the first few months of the baby’s life. As far as possible, the father should be equally involved with the rearing practices of the baby. Looking after a baby should be a shared responsibility. This process also enhances the baby developing a very beneficial and desirable bond with both parents.

The arrival of a new baby should not lead to a complete social embargo for the family. One could travel outside the home with the baby, especially if the times of travel are carefully planned to suit the requirements of the baby, such as feeding times. Even then, if the baby is breastfed, he or she could be fed almost anywhere. Some babies are, however, prone to throwing up while travelling immediately after a feed. It is generally better to avoid intensely overcrowded social gatherings, but social visiting, attending weddings and parties, with the baby in tow, are quite in order, even when the baby is just a few weeks old.

If the parents own a car, it is a good idea to get a commercially available baby car seat that is fitted to the rear seat of the car. The sooner you get the baby used to travelling in this baby seat, the better it is for all around. It is the safest way to take the baby in the car. In some of the Western countries, newborn babies are not discharged from the hospital till a car seat is fitted to the car. Unfortunately, baby car seats are not that popular in this country, but it must be pointed out that they contribute a great deal towards the safety of a baby in the case of a traffic accident.

Unnecessary expenditure

Many parents spend unnecessary amounts of money on a baby. All kinds of expensive items, such as perfumes, colognes, powders, etc., are not quite essential for a baby. The natural milky smell of a baby is quite unique. The clothes that one buys for a baby should be simple, uncomplicated, light and preferably of cotton origin. Their design should be very safe for the baby. It is best to remember that babies grow up very fast, especially in the first two years of life and tend to outgrow clothes in next to no time. Even the toys for the baby should be appropriately selected and should be very safe and eminently affordable.

There is no reason whatsoever that the expenses for a little newborn baby should be more than what one would normally need to spend on an adult.

A newborn baby should be such a joy for the entire family, including the extended family. Grandparents would usually dote on the baby. If there are other children, it is important to provide the necessary attention to them as well so that they would not feel neglected. It would prevent sibling rivalry, and the other kids would go on to love the new arrival. All newborn babies are quite a delight and not a burden, and it is definitely their right to be treated as such.

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Shouldn’t foreign expert be appointed MD of SLP?

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by J. A. A. S.R anasinghe,
Productivity Specialist
rathula49@gmail.com

The recent appointment of Vipul Misra, an Indian national, as Acting Chief Executive Officer of Sri Lankan Airlines deserves to be viewed from a much broader perspective than simply as an appointment to a vacant position. In my view, it is a sensible and courageous decision by the Government.

Sri Lankan Airlines is a national asset operating in an intensely competitive international aviation industry. It requires specialised aviation knowledge, commercial acumen, operational discipline and international exposure. According to the report on his appointment, Misra brings more than two decades of aviation engineering and leadership experience, including experience with major Indian carriers such as Air India, Vistara, IndiGo, SpiceJet, Kingfisher Airlines and Air Deccan.

Dr. Sarath Obeysekera, a high-profile CEO and the former Managing Director of Colombo Dockyard PLC contends the appropriateness of filling senior corporate positions of the public sector from foreign nationals, when positions of high-calibre CEOs are not locally available. He says that Sri Lankan Airlines has previously benefited from expatriate professional leadership. During the Emirates management period from 1998 to 2008, British aviation professional Peter Hill led the airline through rebranding, fleet modernisation, network expansion and improvements in service standards.

The airline reported profits during several of those years, although later analysis showed that gains from aircraft sales and leaseback transactions contributed significantly to some results. Nevertheless, the airline was run with greater commercial discipline, clearer accountability and considerably less day-to-day political interference.

Following the end of Emirates management, due to direct intervention by the then President, Sri Lankan Airlines faced turbulent situations and passed through numerous chairmen, chief executives, restructuring proposals, procurement controversies and political interventions while taxpayers continued to carry its debts and losses.

It would be unfair to suggest that every Sri Lankan chairman or CEO was incompetent or corrupt. Sri Lanka has produced many outstanding aviation professionals. The deeper problem has been a governance system in which even capable executives can be weakened by political appointments, interference in commercial decisions, frequent leadership changes and the absence of measurable accountability. He says that the arrival of Indian professional leadership is not limited to aviation.

Colombo Dockyard presents another significant example. Following the acquisition of a controlling interest by India’s state-owned Mazagon Dock Shipbuilders, Capt. Jagmohan was appointed its non-executive chairman. He is a naval architect with extensive experience in warship design, naval dockyards, shipbuilding and major maritime projects. (Mazagon Dock leadership)⁠

This partnership could give Colombo Dockyard access to capital, technology, Indian and international orders, specialised naval work and a much larger supply chain. However, because the Dockyard is an important national maritime asset, success must be measured by the creation of skilled Sri Lankan employment, expansion into commercial and offshore engineering, growth in exports, transfer of technology and development of local managerial successors—not merely by a change of ownership or boardroom nationality.

The rise of Indian professionals should not surprise us. Sundar Pichai leads Alphabet and Google, while Indian-born executives have led several other globally important technology and industrial corporations. India has built an enormous pool of engineers, scientists, accountants and managers through technical education, English-language capability, exposure to large competitive markets and international professional mobility.

India’s formal national ambition is Viksit Bharat 2047—to become a developed nation by the centenary of its independence. The target is 2047 rather than 2040, and its vision specifically combines economic growth, skills, social progress, sustainability and good governance. (Government of India)

The important lesson is that nationality should not be the principal criterion for selecting the person to lead a strategically important State enterprise. Competence should be, according to Dr. Obeysekera. This principle should now be extended to another equally important national institution — the Sri Lanka Ports Authority (SLPA), as this post has fallen vacant and an advertisement has appeared in the newspapers calling for applications from suitable applicants.

The recent discussion surrounding the vacant substantive post of Managing Director of the SLPA, including Dr. Sarath Obeysekera’s call for the appointment of a “developer, not merely an administrator”, raises a fundamental question: Are we looking for someone merely to administer the existing machinery of the Ports Authority, or someone capable of transforming Sri Lanka’s ports into major engines of investment, industry, employment and foreign-exchange earnings?

The distinction is crucial. On the other hand, one should not be over excited for the manner in which foreign nationals are employed not in hundred perhaps in thousands in manual operational activities in heavy industries in Sri Lanka. In the case of Shipbuilding and Construction industries, the deployment of welders and skilled workers have now become a norm rather than an exception.

Sri Lanka possesses enormous maritime advantages. Colombo is strategically located on one of the world’s busiest shipping routes, while Hambantota and Trincomalee offer substantial possibilities for future development. Yet the challenge is no longer simply to operate ports efficiently. The country must develop the ecosystem around them — logistics, ship repair, shipbuilding, offshore services, maritime industries, warehousing, bunkering, technology, investment and related export-oriented activities.

This requires a different type of leadership. The government should therefore consider applying the same bold thinking demonstrated in the Sri Lankan Airlines appointment to the SLPA. If the best person to transform the Ports Authority is a Sri Lankan, appoint that person. If the best candidate is an internationally recognised professional from India, Singapore, Dubai, Europe, Japan or elsewhere, why should nationality become a barrier?

Indeed, the Sri Lanka Ports Authority Act itself provides that the Minister shall appoint a “competent and experienced person” as Managing Director, whose responsibility includes directing the business, exercising the Authority’s functions and controlling its employees. That statutory emphasis on competence and experience should guide the selection.

What Sri Lanka needs is not another appointment based primarily on seniority, institutional familiarity or traditional public-sector credentials. It needs a leader with a proven international track record in port development, maritime logistics, commercialisation, investment attraction and large-scale project execution. Such a person should be given clear targets and held accountable for delivering them.

The appointment of an international professional should not be regarded as an admission of failure on the part of Sri Lankan professionals. On the contrary, it would demonstrate confidence in the principle that Sri Lanka’s national assets deserve the best available talent, wherever that talent may be found.

The government has already demonstrated this new approach through the Sri Lankan Airlines appointment. I respectfully suggest that it should now have the courage to apply the same principle to the Sri Lanka Ports Authority.

Our national assets are too valuable to be confined to a search for talent within national boundaries. The best person for the job should be given the job irrespective of nationality.

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