Features
Sri Lanka’s 2026 Budget: Fiscal balance meets economic progress
The government budget is the nation’s key economic policy document — the primary instrument through which a state translates its political priorities into concrete economic action. Sri Lanka’s 2026 Budget comes at a crucial juncture, following the severe macroeconomic crisis of 2022, the implementation of an IMF-supported stabilization programme, and the ongoing debt restructuring process. As the country enters a phase of gradual recovery, the government faces the delicate task of balancing fiscal discipline, social protection, and growth-oriented investment.
A government budget functions both as a financial plan and a policy document. It outlines projected revenues and planned expenditures for a fiscal year, sets tax and spending priorities, and articulates the government’s broader macroeconomic objectives — economic growth, price stability, social equity, and debt sustainability. Unlike a corporate budget focused purely on profits and losses, a national budget integrates non-financial policy objectives such as welfare, security, and the provision of public goods, while also reflecting political trade-offs and long-term commitments like pensions and public debt.
Why the budget matters:
= Macroeconomic stability: The budget shapes fiscal deficits, public debt paths, and influences inflation and interest rates. Sound fiscal management builds confidence among investors, international partners, and citizens alike.
= Resource allocation: Through its expenditure framework, the budget determines how resources are distributed among key sectors such as health, education, and infrastructure, directly affecting service delivery and development outcomes.
= Redistribution: Taxation and social transfer mechanisms embedded within the budget play a key role in determining income distribution and social equity.
= Signalling and governance: The budget serves as a policy signal to both markets and the public. A transparent and accountable budget process enhances trust, governance quality, and institutional credibility.
The Importance of the Government Budget
A national budget is more than a financial plan — it is the government’s main tool for turning policy goals into economic action. Its impact extends across all sectors of society, shaping stability, confidence, and development.
= For the Economy:
A credible budget anchors macroeconomic expectations, manages fiscal deficits, and supports investment by ensuring stability and predictability.
= For Investors:
It signals policy direction on taxation, spending, and fiscal priorities. Transparent and consistent budgeting reduces risk and builds investor confidence.
= For Households:
Budgets fund essential services such as health, education, and social protection, helping safeguard vulnerable groups and promote inclusive growth.
= For Public Institutions:
They guide operational priorities of ministries while ensuring transparency and accountability through parliamentary and civic oversight.
= For Creditors and Partners:
Budgets demonstrate fiscal discipline and reform commitment, strengthening credibility with international lenders and development agencies.
Characteristics of a “Best Practice” Government Budget
= Macroeconomic Consistency: Based on realistic, transparent assumptions for GDP, inflation, and interest rates, aligned with monetary policy.
= Fiscal Sustainability: Maintains credible deficit and debt targets within a medium-term fiscal framework.
= Strategic Focus: Links annual spending to medium-term policy goals and development priorities.
= Prioritization & Efficiency: Directs funds to high-impact investments and social protection while reducing wasteful spending.
= Transparency: Ensures public access to budget data, fostering accountability and investor trust.
= Realistic Revenue & Tax Design: Uses conservative revenue estimates and broad, fair, growth-friendly taxation.
= Strong Public Financial Management: Strengthens controls, procurement, and cash management to reduce leakages.
= Countercyclical Flexibility: Allows fiscal adjustment to respond effectively to economic shocks.
= Inclusivity: Protects vulnerable groups through funding for welfare, education, and healthcare.
= Monitoring & Evaluation: Uses measurable indicators and reviews to enhance performance and accountability.
Special Features of Sri Lanka’s 2026 Budget
Sri Lanka’s 2026 Budget marks a shift from crisis recovery to sustainable growth while staying aligned with IMF-supported fiscal frameworks. It emphasizes fiscal discipline, revenue mobilization, and investment-led growth.
Key Highlights:
= IMF Alignment: The budget follows IMF fiscal targets on deficit reduction, revenue growth, and achieving a primary surplus to restore debt sustainability.
· Revenue Mobilization: Focus on expanding the tax base, improving administration, and digitalizing systems to raise revenue-to-GDP ratios sustainably.
= Debt Management: Debt restructuring eased pressures but requires transparent reporting and credible medium-term plans to maintain stability.
= Capital Expenditure Push: Increased capital spending to close infrastructure gaps and stimulate private investment and productivity.
= Subsidy and Expenditure Reform: Rationalizing subsidies and recurrent costs while protecting key social sectors like health, education, and welfare.
= Transparency and PFM Reforms: Ongoing improvements in treasury operations, cash-flow forecasting, and procurement to enhance accountability.
Fiscal and Monetary Policy Coordination
Fiscal policy (spending and taxation) and monetary policy (interest rates and liquidity) must work together for stability.
= Debt & Interest Rates: Large deficits can raise interest rates and crowd out private credit; external borrowing raises currency risks.
= Inflation Control: Expansionary budgets can fuel inflation, prompting tighter monetary policy and higher borrowing costs.
= Policy Coordination: Fiscal discipline supports central bank independence and price stability.
Sri Lanka’s Central Bank has maintained a cautious stance ahead of the 2026 Budget — balancing growth support with inflation control.
Singapore – Fiscal Prudence & Institutional Strength
= Focuses on long-term stability, protected reserves, and efficient use of surpluses.
= Invests in competitiveness, human capital, and innovation.
= Strong institutions and transparent fiscal management ensure sustainable growth.
= Lesson: Strengthen PFM systems, build fiscal buffers, and focus on high-return investments.
India – Scale & Infrastructure-Led Growth
= Uses large infrastructure spending and social programs to drive employment and consumption.
= Leverages PPPs and incentives to attract private investment.
= Balances higher deficits with strong growth potential.
= Lesson: Invest in infrastructure, expand PPPs, and manage fiscal risks carefully.
Sri Lanka must balance Singapore’s fiscal discipline with India’s growth-driven investment — building a resilient, inclusive, and forward-looking fiscal framework aligned with its Vision 2048 goals.
Sri Lanka’s Appropriation Bill 2026
Sri Lanka’s Appropriation Bill 2026, which projects total government expenditure at Rs. 4,434.36 billion for the period from January 1 to December 31, 2026, marks a critical point in the nation’s post-crisis recovery path.
After several years of fiscal strain, mounting external debt obligations, and persistent inflationary pressures, the 2026 budget seeks to strike a delicate balance among three key objectives: macroeconomic stabilization, social welfare protection, and structural economic transformation. However, achieving this balance remains a significant challenge.
Expenditure Overview:
= Total Government Expenditure: Rs. 4,434.36 billion
=Recurrent Expenditure: Rs. 3,028.75 billion (68% of total)
= Capital Expenditure: Rs. 1,405.60 billion (32% of total)
This composition reflects Sri Lanka’s enduring fiscal structure, where recurrent spending—driven by public sector salaries, pensions, interest obligations, and subsidies—continues to dominate.
From an economic perspective, this 68:32 ratio highlights the country’s limited fiscal flexibility. For a more sustainable and growth-oriented fiscal path, economists often advocate for a 60:40 ratio, ensuring that a greater share of government expenditure supports capital formation, infrastructure development, and innovation-driven growth.
Fiscal Interpretation
= The recurrent-heavy composition signals fiscal rigidity — the inability of the government to reallocate spending efficiently due to structural commitments.
= Capital expenditure, though improved in nominal terms, still constrains the government’s ability to finance long-term infrastructure, technology, and competitiveness improvements.
= The dominance of consumption-oriented expenditure over investment spending implies that fiscal policy is still more focused on stability and social continuity than on transformation and growth. (See Figure 1)
High-Expenditure Ministries
These five ministries alone account for nearly 65% of the total national expenditure, reflecting the government’s concentration on administration, debt service, and essential social services.
Capital-Intensive Ministries
Some ministries stand out for their high proportion of capital investment, signaling their developmental role:
These allocations emphasize infrastructure development, urban expansion, and irrigation improvement — key pillars of physical and economic connectivity. However, the digital and renewable sectors, though strategically vital, still receive relatively modest allocations compared to traditional infrastructure.
Low-Allocation and Emerging Sectors
Several ministries receive less than 1% of total spending — including Environment (0.41%), Digital Economy (0.36%), Youth and Sports (0.30%), and Science and Technology (0.14%).
From an economist’s perspective, this signals a policy gap between stated national goals (e.g., digital transformation, climate resilience, innovation) and actual fiscal commitment. For a modern economy aspiring to transition toward a knowledge- and technology-driven model, such underfunding represents a missed opportunity.
Key Economic Insights and Structural Issues
The Weight of Recurrent Commitments
Public sector salaries, pensions, and debt servicing consume the majority of recurrent expenditure. This pattern leaves limited fiscal space for productivity-enhancing spending. In 2026, the Ministry of Finance alone accounts for Rs. 634.78 billion, largely reflecting interest and debt repayments, which absorb a significant share of GDP.
Economists caution that such fiscal patterns can lead to a “crowding out effect”, where public debt obligations limit the government’s capacity to invest in education, research, and entrepreneurship — areas critical for long-term economic competitiveness.
Defence and Administrative Overheads
Despite the absence of internal conflict, defence expenditure (Rs. 455 billion) remains over 10% of total expenditure, surpassing allocations for education, agriculture, or digital development. While national security is indispensable, reallocating even a small portion of defence spending toward research, innovation, and human capital could yield higher socio-economic returns.
Social Sector Balance
= Health (Rs. 555 billion) maintains a robust 12.5% share — a positive sign of post-pandemic resilience and continued investment in public healthcare.
= Education (Rs. 301 billion) receives only 6.8%, lower than the global average of 4–6% of GDP recommended by UNESCO for developing nations.
= The Women and Child Affairs (Rs. 16.4 billion) and Social Empowerment (Rs. 38.6 billion) ministries, though small in absolute terms, play crucial roles in human capital and inclusion, yet remain underfunded.
Capital Development and Growth Drivers
Infrastructure-related ministries — particularly Transport, Urban Development, and Agriculture — exhibit a more development-oriented focus. The Rs. 390 billion capital investment in transport aligns with the government’s ambition to modernize logistics, reduce bottlenecks, and attract investment in ports and civil aviation.
However, without parallel reforms in energy, industry, and entrepreneurship, the long-term multiplier effects of these capital projects may remain limited.
Comparative Economic Context
a) India and Singapore as Contrasts
= India’s Union Budget 2025–26 allocates around 37% for capital expenditure, emphasizing infrastructure, manufacturing, and renewable energy.
= Singapore, though smaller, channels over 45% of its annual spending into development projects, digital economy infrastructure, and R&D.
In comparison, Sri Lanka’s 32% capital ratio indicates a more conservative fiscal structure, constrained by debt obligations and revenue limitations.
b) Regional Benchmarking
Countries like Bangladesh and Vietnam have prioritized industrial policy and export competitiveness, leading to GDP growth rates exceeding 6%. Sri Lanka’s fiscal design, heavily skewed toward recurrent expenditure, risks prolonging stagnant productivity unless structural adjustments are made.
Fiscal Policy Implications
a) Fiscal Discipline vs. Growth Ambition
The 2026 Appropriation Bill shows clear signs of fiscal consolidation under IMF guidance — maintaining expenditure discipline while avoiding excessive borrowing. However, fiscal consolidation must be paired with growth-oriented fiscal policy, ensuring that expenditure quality improves, not just expenditure control.
b) Revenue and Deficit Management
= Tax administration efficiency and digital compliance systems.
= Widening of the tax base, especially through formalizing the informal economy.
= Reduction of tax exemptions that erode fiscal capacity.
Without improved revenue mobilization, dependence on domestic and external borrowing could perpetuate debt vulnerability and currency instability.
Monetary and Macro Linkages
Sri Lanka’s fiscal stance directly influences monetary stability. With recurrent expenditure at 68%, the government must rely on short-term borrowing and domestic credit expansion, which can pressure interest rates and exchange rates.
A prudent coordination between the Central Bank’s monetary tightening and the Treasury’s fiscal strategy is essential to prevent inflationary resurgence and maintain external credibility.
Investment Climate and Private Sector Response
From an investor’s perspective, the 2026 budget sends mixed signals.
= On one hand, infrastructure allocations (transport, urban development, irrigation) enhance long-term investment attractiveness and logistics efficiency.
= On the other, persistent fiscal rigidity, high administrative expenditure, and low innovation investment limit the country’s competitiveness in attracting FDI and technology ventures.
To strengthen investor confidence, future budgets must:
= Provide predictable fiscal policy.
= Enhance public-private partnership (PPP) frameworks.
= Support digital transformation, start-up ecosystems, and green industries.
Social and Human Development Dimensions
Economic recovery must be inclusive. With poverty and inequality still elevated post-crisis, social spending quality becomes crucial. The allocations to education, health, women, and youth are essential, yet insufficient to drive structural transformation.
A more effective approach would involve targeted social protection, skills development, and employment-linked welfare programs, particularly for rural and marginalized communities.
Recommendations
= Rebalancing Recurrent vs. Capital Spending
Shift gradually from 68:32 to 60:40, prioritizing productive investment in technology, transport, and renewable energy.
= Performance-Based Budgeting
· Introduce outcome-oriented metrics for ministries — measuring not only spending but impact (e.g., literacy, employment, exports).
= Fiscal Decentralization
· Strengthen provincial councils’ fiscal autonomy while ensuring transparent reporting and auditing.
= Innovation and R&D Investment
· Allocate at least 1% of GDP for science, research, and innovation — critical for productivity growth.
= Public Sector Reform
· Rationalize administrative structures and adopt digital systems to reduce recurrent overhead.
= Green and Digital Transformation
· Scale up investment in renewable energy, climate adaptation, and digital infrastructure, positioning Sri Lanka within the global sustainability agenda.
Conclusion
The Sri Lankan Appropriation Bill 2026 represents a budget of stabilization and continuity, rather than bold transformation. While it ensures essential services, administrative continuity, and gradual infrastructure recovery, it still reflects the weight of historical fiscal constraints.
The economic direction is cautiously positive — signaling discipline under IMF guidance and a slow shift toward investment-led growth. However, to truly unlock its economic potential, Sri Lanka must redefine its spending priorities — from consumption to creation, from protection to production.
A resilient and prosperous Sri Lankan economy will require not only balanced books but balanced vision — one that aligns fiscal responsibility with innovation, inclusivity, and sustainable growth.
Visvalingam Muralithas
is a researcher in the legislative sector, specializing in policy analysis and economic research. He is currently pursuing a PhD in Economics at the University of Colombo, with a research focus on governance, development, and sustainable growth.
He holds a Bachelor of Arts in Economics (Honours) from the University of Jaffna and a Master’s degree in Economics from the University of Colombo. His academic background is further strengthened by postgraduate diplomas in Education from the Open University of Sri Lanka and in Monitoring and Evaluation from the University of Sri Jayewardenepura.
In addition to his research work, Muralithas has contributed to academia by teaching economics at the University of Colombo and the Institute of Bankers of Sri Lanka (IBSL), and has also gained industry experience as an investment advisor at a stock brokerage firm affiliated with the Colombo Stock Exchange. Views are personal. He can be contacted at muralithas.v@gmail.com
by Visvalingam Muralithas
Features
The Great AI Schism: When the Titans of Tech tell us to slow down
by Prof. C. A. Saliya
Something extraordinary happened in September 2026. The very people who have spent the last decade pouring tens of billions of dollars into building artificial intelligence, the visionaries, the investors, the CEOs, suddenly started telling the world to hit the brakes. It’s a bit like the captain of a speeding train leaning out of the window and shouting, “Actually, maybe we should slow down a bit!” The public, understandably, is confused. We’ve been told AI will cure cancer, solve climate change, and give us all free time. Now we’re being told it might kill us all. Welcome to the great AI schism.
To understand what’s happening, you have to listen to the people in the room. These are not wild-eyed doomsayers on the internet. They are the titans of the industry. And they are starting to argue with each other.
Dario Amodei: The Insider Who Wants to Hit Pause
Dario Amodei, the CEO of Anthropic (Claude AI), is the man who kicked the hornet’s nest. In a 3,800-word essay, posted on his website in mid-September 2026, he didn’t just suggest caution, he demanded a slowdown. “We must slow the pace at which we improve the capabilities of AI models,” he wrote. His reasoning is simple and terrifying: the technology is moving faster than our ability to control it. He warned that AI could be misused for cyberattacks, bioterrorism, and serious economic disruption.
What makes Amodei’s warning so chilling is that it comes from a man whose company, Anthropic, builds one of the most powerful AI models in the world, Claude. He’s not a critic on the sidelines. He’s in the driver’s seat, and he’s telling us the car might not have brakes. In an interview with CNN’s Anderson Cooper, he said he agreed with a departing Anthropic researcher who claimed AI could “kill us all” by the end of the decade. That researcher, 27-year-old Jacob Coxon, resigned in protest, saying the people building AI “earnestly believe that it could kill us all”. When the people building the technology start resigning because they’re afraid of it, you should pay attention.
Bill Gates: The Elder Statesman with a Warning
Bill Gates has been around long enough to know a paradigm shift when he sees one. The Microsoft co-founder, who spent decades warning the world about pandemics and climate change, has now turned his attention to AI. And he’s not mincing words. In September 2026, Gates warned that AI is “powerful enough to drive events that, you know, cause a billion deaths”.
Gates is not worried about Terminator-style robots. He’s worried about people. “There’s never been a weapon as powerful as the combination of people with ill intent using the latest AI tools,” he said. His solution is simple: regulation. “No one thinks self-regulation is enough,” he told NBC’s Meet the Press. He even offered to be the man to convince President Trump to regulate AI. Gates is a pragmatist. He knows the technology is coming. He just wants to make sure it doesn’t get us first.
Sam Altman: The Showman with a Conscience (Maybe)
Sam Altman, the CEO of OpenAI (Chat GPT), has always been the industry’s greatest showman. He’s the man who told us AGI (Artificial General Intelligence) is “just around the corner” and that AI will soon be a “genie that can grant any wish”. But even Altman is now singing a different tune. In September 2026, he ruled out an OpenAI IPO in 2026, citing safety concerns. He called even a 10% risk of AI causing human extinction “unacceptable”.
“I agree with Dario that we need to pace the frontier,” Altman posted on X. This is a remarkable shift. Altman has spent years being criticised for moving too fast, for prioritising profit over safety. Now, facing mounting evidence that AI models can cause real harm, from cyberattacks to mental health crises, he’s suddenly the voice of caution. Is it genuine? Or is it a PR move? The cynics will tell you it’s the latter. But the fact remains: when Sam Altman says we need to slow down, the world listens.
Elon Musk: The Provocateur Who Saw It Coming
Elon Musk has been warning about AI for over a decade. He’s the man who called AI “more dangerous than nuclear weapons” long before it was fashionable. So it’s no surprise that he joined the chorus of slowdown calls in September 2026. But Musk being Musk, he couldn’t resist a bit of dark humour. When asked if we’re all going to die within 10 years, he replied, “I don’t want to disappoint you, but we’re all going to die someday anyway”.
But behind the joke is a serious point. Musk believes AI models could escape their constraints, take control of military systems, and even launch nuclear weapons. His solution is mutual oversight: leading AI companies should test each other’s systems for safety before release, and he even suggested a deal with China to make it happen. Musk is a provocateur, but he’s also a visionary. And his vision is one where AI is a weapon that we might not be able to control.

Satya Nadella: The Quiet Strategist
While the others are shouting about doom, Satya Nadella is quietly building an empire. The Microsoft CEO doesn’t talk about extinction risks. He talks about “agentic AI”, AI that can act autonomously, which he calls “a new paradigm”. Microsoft’s Azure cloud platform, which powers these AI agents, grew 43% in the last quarter, surpassing $100 billion in annual revenue.
Nadella’s view is simple: don’t compete to build the most powerful model; compete to control the “orchestration layer”, the systems that connect different AI models. He wants to build the infrastructure that everyone else relies on. It’s a smart play, and it’s making Microsoft a fortune. But Nadella’s silence on safety is deafening. While Amodei and Altman wrestle with their consciences, Nadella is counting the money. It’s not that he doesn’t care; it’s that his business model depends on AI being adopted, not regulated.
Jacob Coxon: The Whistleblower Who Lit the Fuse
You may not have heard of Jacob Coxon. He’s not a billionaire. He’s not a CEO. He’s a 27-year-old researcher who worked at both OpenAI and Anthropic. And in September 2026, he resigned from Anthropic with a warning that shook the industry. “Neither company is acting responsibly,” he wrote on X. “They are launching themselves directly toward a superintelligence capable of self-improvement, and gambling with our lives”.
Coxon’s warning was remarkable because it came from inside the machine. He said the people building AI “earnestly believe that it could kill us all by the end of the decade”. He called for a temporary freeze on advanced AI training. His resignation triggered a wave of concern, and even Dario Amodei admitted he agreed with Coxon more than he disagreed. Coxon is the canary in the coal mine. And the canary is not looking well.
Donald Trump: The Wildcard
And then there’s Donald Trump. The US President has consistently downplayed AI fears, calling them a “hoax” and a “sick conspiracy”. But even Trump is starting to change his tune, sort of. In September 2026, he announced plans to create an “AI Force” and appoint an AI “Czar”. He said the government would look for “bad” uses of AI through the existing criminal and civil justice systems.
But Trump’s priority is clear: winning the AI race against China. “We will not in any way hinder or stifle the growth of this incredible industry,” he said. He wants AI to account for 25% of US GDP. Trump is not a technologist. He’s a businessman and a nationalist. He sees AI as a tool for economic dominance, not an existential threat. Whether he’s right or wrong, his stance puts him at odds with almost every expert in the field.
The Bottom Line: A House Divided
So where does this leave us? We have the CEOs of the world’s leading AI companies, Amodei, Altman, and Musk, all calling for a slowdown. We have Bill Gates, the elder statesman of tech, warning of a billion deaths. We have a whistleblower who says the industry is gambling with our lives. And then we have Satya Nadella, quietly building the infrastructure that powers it all, and Donald Trump, who wants to speed up.
The irony is hard to miss. The people who built the AI train are now telling us to slow down. The people who profit from the AI economy are the ones building the tracks. And the public is caught in the middle, trying to figure out who to believe.
Maybe the most honest thing anyone said came from Jacob Coxon, the 27-year-old researcher who quit. “The people building AI earnestly believe that it could kill us all by the end of the decade,” he wrote. “This is not a marketing stunt”.
If the people building the technology believe it could kill us, perhaps we should listen. Before it’s too late.
(Prof. C. A. Saliya, is a charted accountant, academic, researcher and former banker. He is the author of SAMAJA GAVESHAKAYA and Springer Publication DOING SOCIAL RESEARCH. He can be contacted at saliya.ca@gmail.com. The views expressed in this article are his own and do not necessarily represent those of the organisations with which he is affiliated.)
Features
Preventing grievances from becoming communal
by Jehan Perera
The death sentence on Sivarasa Anojan, a Sri Lankan citizen convicted of blasphemy in Saudi Arabia has taken a central place in national consciousness for the past several weeks. It has been in the headline news since it was first reported last month. There have been many initiatives taken locally to get a more lenient sentencing by the Saudi authorities. There is also an undercurrent that is critical of both the culture and religion from which this sentencing emanates. This also sustains the widespread publicity being given nationally to the issue. By way of contrast, the controversy caused by the forcible removal of the Thileepan statue in Jaffna has not significantly impacted upon the national consciousness. There was only passing mention of the incident in the national media which has been overtaken by other events.
However, in the north and east of the country, and in the diaspora, the removal of the Thileepan statue has become a major issue. It has led to protest marches led by university students and widespread condemnation by civil society and political groups. The issues underlying the Thileepan statue have deep undercurrents in the Tamil consciousness particularly in the north and east which time is unlikely to dispel. The real test of harmony in a multi-ethnic, multi-religious society like Sri Lanka is not whether communities coexist peacefully when nothing controversial is at stake. Rather, the test is how they respond when an event touches their identities and grievances. The death sentence imposed on Anojan in Saudi Arabia and the removal of the Thileepan statue in Jaffna carry the risk of becoming grievances to entire communities.
In the case of Anojan, a young Tamil migrant worker, he was first sentenced to five years imprisonment and a fine of three million Saudi riyals over a Facebook comment. Both he and the Saudi prosecution appealed, with the appeal court raising the sentence to death. This has led to public sympathy for him in Sri Lanka.
Appeals for clemency have come from the President, government and opposition leaders, clergy of all faiths and Muslim political leaders. At the same time there is a need to reject attempts to turn the case into a source of anti-Muslim sentiment or collective blame. Peacebuilding therefore has to be within Sri Lanka as well as diplomatic. Religious leaders and civil society in the country should be ready to quell rumour, even as Muslim, Buddhist, Hindu and Christian leaders stand together publicly.
Thileepan Statue
The Thileepan controversy has had a different trajectory. Many Tamils admire Thileepan, the LTTE name of Rasaiah Parthipan, who died on 26 September 1987 after a twelve-day fast. His demands were addressed to India but included matters pertaining to the Sri Lankan government including the release of detainees held under the Prevention of Terrorism Act. The statue put up during this year’s commemoration was removed by police in the early hours of 27 September, a day after the commemoration ended. The government’s legal concern, as articulated by its spokesperson, was the LTTE remains a proscribed organisation and before removing the statue, police had presented facts to the court. But law and memory answer different questions and the depth of Tamil anguish cannot be disregarded.
For many Tamils, remembrance of Thileepan is connected to their sense of loss and historical memory. The memorial has been destroyed and rebuilt more than once, and each destruction has added to the meaning it carries. Many who mourn Thileepan are grieving a young man who died without violence and by his own fast. They also grieve an era of loss of the struggle for Tamil rights and self-determination for which Thileepan has become a symbol. The Office for Reparations Act, No. 34 of 2018, provides for collective reparations and gives the Office for Reparations a role in policies on memorialisation. This does not automatically permit any particular statue, nor does it override laws on public places or proscribed organisations. But it shows that memorialisation is recognised within Sri Lanka’s framework for reparations and reconciliation. There is also a wider question of equality.
The JVP that now leads the NPP government was itself once proscribed when it took up arms against the state in which tens of thousands died, later entered democratic politics, and now for many years has publicly commemorated its own fallen. The opportunity to remember those who died should not belong to one community alone.
A commitment to peacebuilding requires that the same trust that has been given to former militants of one community needs to be given to members of other communities if equal citizenship and equal rights are to have meaning. Further, the Office for Reparations Act provides for reparations through livelihood. It is today a fact that those former LTTE members who went through the government’s rehabilitation process find it difficult to get jobs in the private sector.
Private sector employers are reluctant to come under surveillance for employing former LTTE members. There needs to be equal access to employment and removal of unjustified barriers to reintegration, with targeted public programmes where necessary. Until this situation is realized on the ground, the government needs to consider employing those who went through the government’s rehabilitation process and still unable to find suitable employment.
Continuing Peace
The challenge that post-war Sri Lanka faces, a full 17 years after the end of war, is to strengthen the foundations of trust between communities rather than deepen existing suspicions. Anojan is an individual Sri Lankan citizen facing a severe sentence in another country. His case should not become a reason to blame Sri Lankan Muslims. Thileepan is remembered differently by different communities, but the dispute over his memorial should not become a reason to revive the communal divisions of the past. The cases are also mirror images in an important respect. In the Anojan case, the state is an advocate pleading before another government. In the Thileepan case, the state is the actor whose decision is being judged. The first calls for quiet diplomacy and restraint in public language. The second calls for fairness and explanation, and the burden on the state is heavier.
The common roots of the two cases lie in mistrust that does not belong to one community alone. It has been produced by experiences of discrimination, violence, insecurity and loss that have been interpreted differently by different communities. Grievances turn communal when an individual is seen as a representative of a community, when institutions seem to treat communities unequally, and when people feel their pain goes unacknowledged. Each of these can be addressed. The system change that the Sri Lankan people voted for in 2024 would need to include a government that rejects collective blame, acknowledges grief and explains its decisions openly. It also requires state institutions to act transparently and consistently, so that no citizen feels that the law protects some communities more than others.
This peacebuilding imperative requires enlightened leadership as much as legal authority. It requires leaders who will speak to their own communities against prejudice, even when this is politically inconvenient. It requires religious leaders who will demonstrate solidarity across religious boundaries. And it requires civil society to recognise that peacebuilding is not simply preventing violence after tensions have risen, but is addressing the mistrust and grievances that allow tensions to rise in the first place. Sri Lanka has learned, at great cost, that communal divisions can become much larger than the events that initially give rise to them. The Anojan and Thileepan cases give Sri Lanka an opportunity to demonstrate that it has learned from its past. The test of Sri Lanka’s continuing peace is whether we can address difficult grievances without turning them into communal ones.
Features
Sri Lanka Cricket Bill: Governance reform is not yet a cricket strategy – Part II
By Sarath S. Kodithuwakku
President, Institute of Management of Sri Lanka; Senior Professor, University of Peradeniya
(Continued from yesterday)
Representation, Independence and Decision-Making
The membership-based electoral structure should provide representation without becoming a substitute for executive management. The seven Elected Directors would bring the perspectives of the SLC membership into the Board, while the seven Independent Directors would provide additional professional expertise and independence. The model’s effectiveness will, therefore, depend on whether the Board can integrate these perspectives into coherent strategic decisions while maintaining a clear boundary between governance and day-to-day management.
The equal division between Elected and Independent Directors also raises a governance-design question. An even-numbered Board can create a tie. The Bill addresses this directly: in the event of equality, the Chairperson has a casting vote; in the Chairperson’s absence, the Deputy Chairperson has a casting vote; and if both are absent, an Independent Director, elected to preside, has the casting vote. The issue is, therefore, not whether a tie can be resolved, but how this mechanism affects the balance between representation, independence and accountability.
The leadership structure reinforces this balance: the Chairperson is elected from among the Independent Directors and the Deputy Chairperson from among the Elected Directors. The casting-vote arrangement makes the Chairperson’s role and perceived independence particularly important, especially when a major strategic decision divides the two components of the Board.
The Bill’s committee provisions could support a disciplined model of delegation, but implementation will depend heavily on the terms of reference adopted by the new Board. The framework could be strengthened by requiring a published cricket-development strategy, a clear division of powers among the Board, executives and selection committees, transparent principles for major development allocations, and periodic reporting on outcomes across men’s, women’s, schools and domestic cricket. These measures would strengthen accountability without legislating the details of team selection or tournament scheduling.
From Measurement to Strategic Accountability
If the Board is to hold management accountable for strategy rather than simply for short-term results, it needs a performance framework that captures both outcomes and the capabilities that produce them.
SLC should consider requiring an explicit multi-year cricket-development strategy, supported by measurable objectives and an annual strategy review. Such a strategy should identify the development pathway from schools and grassroots cricket through domestic competitions to high performance; define major capability priorities such as coaching, sports science, data and analytics; set resource-allocation principles; and establish indicators against which progress can be assessed.
The purpose would not be to turn cricket into a bureaucratic exercise. Strategic accountability simply creates a disciplined basis for asking whether the organisation is doing what it said it would do, whether its assumptions remain valid, and whether resources are producing the intended results.
From Measurement to Organisational Learning
SLC should, therefore, consider adopting a formal Balanced Scorecard. Rather than measuring success solely through international match results or annual financial audits, the framework could track four interdependent perspectives:
Financial Sustainability:
commercial growth, financial discipline and compliance.
Internal Processes:
domestic tournament quality, development pathways and selector-process integrity.
Stakeholder Value:
grassroots development, school cricket and women’s cricket expansion.
Strategic Capability:
coaching quality, sports science, talent development, data and analytics capability, and the organisation’s ability to convert investment into sustainable performance.
The purpose of such a framework would not be to reduce cricket development to a collection of numbers. Rather, it would create a disciplined process for asking four fundamental management questions:
What did we expect to achieve?
What actually happened?
Why was there a difference?
What should we change as a result?
Evaluating these dimensions periodically would help SLC move beyond performance reporting towards genuine organisational learning.
ICC as a Stakeholder in Governance Reform
The ICC is another important stakeholder whose interests should be recognised in the reform process. SLC’s governance arrangements do not operate solely within Sri Lankan law; they also have to be compatible with the governance obligations associated with ICC membership. The ICC’s Articles of Association require each Member to provide for free and democratic elections (or nominees from outside its members) and to manage its affairs autonomously, without government or other public-body interference in the governance, regulation or administration of cricket.
International experience demonstrates that ICC engagement in member governance restructuring is not unusual. In the United States, after the ICC expelled the old national association for chronic governance failures, the ICC directly oversaw a multi-year project to design a new governance model. The ICC Board formally approved the constitution for a replacement body (USA Cricket) before it was adopted. The resulting structure combined elected constituent directors with independent directors, showing that an ICC-backed framework can accommodate both forms of representation.
In Nepal, the ICC established a Nepal Advisory Group comprising stakeholders from across the game to recommend constitutional amendments, with adoption of the revised constitution and subsequent elections forming part of the conditions for reinstatement of ICC membership.[8] The ICC subsequently facilitated an independent panel that included ICC nominees together with representatives of Nepal’s National Sports Council and the existing cricket administration to map the election process, guidelines and timelines.[9] More recently, in 2026, an ICC delegation visited Bangladesh to engage with stakeholders on governance and electoral matters.[10] The ICC has also reported that its Deputy Chair and another ICC Board representative visited Sri Lanka and met relevant stakeholders to assess ongoing developments, while the ICC Board reiterated the need for elections to be held as soon as possible.
These precedents make the ICC a legitimate stakeholder in considering the governance implications of the proposed Bill. This does not mean that the ICC should determine Sri Lanka’s domestic legislation, nor that every feature of the Bill requires prior ICC approval. It does, however, suggest that early and formal engagement with the ICC would be prudent, particularly where the proposed arrangements concern Board independence, elections, government involvement and the transition to the new governance structure.
This is particularly relevant because the Bill creates two institutional arrangements that deserve careful scrutiny from an autonomy perspective. The Transformation Committee is responsible for managing the transition until the First Board is constituted, while the Nomination Committee, although structurally independent of the SLC Board, includes representatives connected with the Sports Ministry and the National Sports Council. Neither arrangement, by itself, establishes government interference. However, taken together, they make it important that the independence of the incoming Board is demonstrable through transparent procedures rather than assumed from the structure alone.
Given the professional calibre and international exposure of the members of the Transformation Committee, it would be reasonable to expect that the importance of ICC engagement would have been recognised. Although any such consultation has not been evident in the public domain, it is therefore reasonable to expect that the ICC has either already been consulted or will be consulted before the Bill is enacted. Such engagement would allow potential incompatibilities to be identified before the new structure is enacted and implemented, rather than after the fact.
The Transition Is Itself a Governance Challenge
The transition provisions introduce a significant organisational-change challenge. Replacing the existing club- and association-based governance structure with a new hybrid Board and governance architecture is not simply a legal exercise; it is an organisational change programme. The Sri Lanka Cricket Transformation Committee is required to manage the transition until the First Board is constituted and, during that period, to establish rules covering matters including tournament structure, domestic governance, selection committee appointments, committee terms of reference, the Nomination Committee process and the election of the Elected Directors.
Structural reform on paper can encounter resistance from established interests, institutional habits and existing routines. The implementation phase will therefore require a clear change-management framework, including stakeholder engagement, transparent onboarding for Independent Directors, clarification of decision rights, alignment of legacy committees, and careful transfer of information and responsibilities.
Without attention to these organisational factors, cultural friction could undermine the intended administrative improvements. The success of the reform will therefore depend not only on the text of the legislation but also on the quality of the rules, appointments, delegation arrangements and organisational behaviours that follow it.
From Governance Reform to a Cricket Strategy
The Bill deserves credit for addressing how SLC is constituted and for creating places for specialist advice. It should not be dismissed simply because it does not prescribe a batting order or a domestic fixture list. Those are not appropriate tasks for legislation.
Its limitation is more precise: the proposed governance arrangements do not, by themselves, assure the strategic capability of the Board or the quality, independence and accountability of the decisions made beneath it. They establish the architecture. The future Board and management must supply the strategy, capabilities, discipline and learning mechanisms that make the architecture work.
A stronger reform would connect four elements: a Board selected for collective strategic capability; professional cricket management with clear delegated authority; transparent but non-mechanical selection and investment processes; and systematic evaluation of development outcomes. Within the first of these, information technology and computer science should be recognised as distinct from the broader capability to understand and govern data science, analytics and emerging AI-enabled decision support.
Ultimately, the governing question is not only who gets a seat at the SLC Board table. It is whether that Board can build, fund, execute and learn from a credible strategy for Sri Lankan cricket.
References
1. Department of Government Printing, Sri Lanka. Sri Lanka Cricket Bill, Gazette Supplement, Part II of September 25, 2026, issued on 28 September 2026.
2. International Cricket Council. Media release, 15 July 2026, reporting the ICC Board discussion of Sri Lanka Cricket and the need for elections to be held as soon as possible.
3. Sport New Zealand – Ihi Aotearoa. Nine Steps to Effective Governance, particularly Step 1: Define and Agree the Board’s Role; Step 4: Provide Strategic Leadership; Step 5: Employ and Support a Chief Executive; and Step 8: Get the Right People on Board.
4. Cricket South Africa. Governance and management frameworks, including the delegation-of-authority framework, Board committees, Cricket Committee, Cricket Pipeline Committee and CEO accountability.
5. International Cricket Council. ICC Articles of Association, provisions requiring free and democratic elections and autonomous administration without government or other public-body interference. ICC. https://images.icc-cricket.com/image/upload/prd/f7vm88yw1933dc38cgtg.pdf
6. International Cricket Council. “ICC outlines proposed USACA constitution.” ICC, 2017. https://www.icc-cricket.com/news/icc-outlines-proposed-usaca-constitution
7. International Cricket Council. “Approved constitution marks historic landmark for cricket in USA.” ICC, 2017. https://www.icc-cricket.com/media-releases/approved-constitution-marks-historic-landmark-for-cricket-in-usa
8. International Cricket Council. “ICC welcomes Nepal Special General Meeting to adopt revised constitution.” ICC, 2018. https://www.icc-cricket.com/media-releases/icc-welcomes-nepal-special-general-meeting-to-adopt-revised-constitution
9. International Cricket Council. “Independent Panel meet to progress Nepal elections under revised constitution.” ICC, 2018. https://www.icc-cricket.com/media-releases/independent-panel-meet-to-progress-nepal-elections-under-revised-constitution
10. International Cricket Council. “ICC delegation visits Bangladesh to engage with stakeholders on governance and electoral matters.” ICC, 2026. https://www.icc-cricket.com/media-releases/icc-delegation-visits-bangladesh-to-engage-with-stakeholders-on-governance-and-electoral-matters
11. International Cricket Council. “ICC Board approves governance, membership and member support decisions.” ICC, 2026; see also “ICC Board Meeting,” 2026, reporting ICC representatives’ meetings with stakeholders in Sri Lanka. https://www.icc-cricket.com/media-releases/icc-board-approves-governance-membership-and-member-support-decisions
(Concluded)
-
News6 days agoUS-assisted ‘Ice’ detection: NPC to examine IGP’s move to transfer drug-busting team
-
Editorial5 days agoColombo Port drug bust: The plot thickens
-
Editorial6 days agoDrug busting, transfers and trust deficit
-
Features3 days agoThe first woman in the foreign service or Ceylon Overseas Service it was then called
-
Editorial4 days agoFuelling discontent and protest
-
News6 days agoSri Lankan facing death penalty in Saudi Arabia: Mano G appeals to Crown Prince
-
Latest News4 days agoTharindu Rathnayake, bowlers secure Asian Games Bronze for Sri Lanka
-
News5 days agoADB-backed virtual net metering project faces policy contradiction


