Features

Sri Lanka’s ancient hydraulic civilisation and birth of Sinhala Buddhist nationalism

Published

4 years ago

2022/03/4

by Satyajith Andradi

Sri Lanka continues to be in the grips of many high profile crises of recent origin such as the COVID–19 pandemic, chronic difficulties in servicing foreign debts, shortages of essential items such as food and fuel, skyrocketing cost of living, and crop failures due to the ban of chemical fertilisers, to name a few . However, the national question, which has tormented the country for decades, continues to be one of her biggest problems, if not the greatest.

Sinhala Buddhist nationalism features prominently in any discourse on Sri Lanka’s national question. Its detractors often derogatorily call it by terms such as Sinhala Buddhist imperialism, Sinhala Buddhist chauvinism, and Sinhala Buddhist racism, whilst its protagonists call it Sinhala Buddhist patriotism or simply patriotism. Meanwhile, somewhat esoteric and ephemeral terms such as Sinhala Buddhist majoritarianism, kinguistic nationalism, and ethnocracy are used for it in learned discourse. Further, Sinhala Buddhist nationalism is very often discussed with reference to personages of Sri Lanka’s ancient history such as Dutugemunu and Elara. Hence, it is useful to trace the genesis and early phases of development of Sinhala Buddhist nationalism during Sri Lanka’s ancient past, in order to enhance our understanding of the subject.

Sri Lanka’s ancient agrarian revolution powered by irrigation engineering

As in our own age, in the distant past too, various races migrated from one land to another for various reasons such as the search for greener pastures and the forced eviction by intruding tribes. From about the sixth century BC, Sri Lanka too, which until then was thinly populated by primitive hunter gatherers, experienced an influx of migrants from overseas. Some of them, who had a knack for agriculture, settled in the arid north central plains of the island, which were covered with wooded forests and shrub jungles, as those one could still see in places such as Wilpattu. As direct rain water was often inadequate and undependable for growing paddy, these pioneer settlers cultivated the art of conserving water by building small artificial reservoirs called tanks, and convert the hostile arid terrain into paddy fields with the water thus conserved. Thereby they were able to establish a firm foothold in pre-historic Sri Lanka. These rough, tough, and enterprising pioneer settlers came to be known as ‘Sihala’ or Sinhalese, whose founding fathers were, according to legends, Vijaya and his band of seven hundred followers, who came to Sri Lanka from northern India. Other migrant tribes, either perished in this hostile physical environment, like the traders devoured by Kuveni, or got suppressed and assimilated by the dominant Sinhalese. This was a social process, which had some affinity to the process of natural selection in the biological world – a case of social Darwinism, so to speak. The Sinhalese went on to build progressively bigger tanks, weirs, canals, and complex irrigation systems connecting all such innovative creations with rivers which flowed from the distant wet mountains. As a result, the erstwhile wild and hostile terrain of Sri Lanka’s north central plains were converted into a vast blue and green tapestry of thousands of artificial lakes and lush paddy fields studded with dagobas of immaculate white. The formidable physical challenges posed by the nature were surmounted with an audacious human response. This monumental transformation, which took place more than thousand years ago, inspired many people of modern times. A notable person amongst them was the British planter, archaeologist, and author John Still ( 1880 – 1941 ) of Jungle Tide fame, who in turn drew the insightful attention of Arnold Toynbee, the eminent scholar of comparative history and civilizations ( Arnold J Toynbee; A study of history ; abridgement by D C Somervell ). The agrarian revolution powered by advanced irrigation systems was the bedrock, the backbone, and the material basis of the fully-fledged hydraulic civilization of ancient Sri Lanka. The elaborate social, political, cultural and religious institutions of that civilisation constituted, as Marx would say, its superstructure.

The birth of the ancient agrarian revolution based on irrigation engineering pre-dates the arrival of Buddhism in the island in the third century BC. The medium sized tank ‘Abhaya Wewa’, which is also known as Basawak Kulama, in Anuradhapura, built in the fourth century BC by king Pandukabhaya, proves the point. The next important tank, Tissa Wewa, was built in Anuradhapura during the reign of Devanampiyatissa ( 250 BC – 210 BC ). Irrigation engineering witnessed a quantum leap during the reign of the great Vasabha ( 67 AD – 111 AD ). During his reign, in addition to many large tanks, the Elahera canal was built. This canal diverted the waters of the Ambanganga, a tributary of the Mahaweli river originating from the Matale hills, to the tanks in the arid north central plains. The next great period of tank building was the reign of Mahasena ( 274 AD – 301 AD ), during which many tanks including the giant Minneriya Wewa was constructed. Mahasena’s achievements were equaled or surpassed during the reign of Dhatusena ( 455 AD – 473 AD ), during which huge tanks such as the Kalawewa and the Yoda Wewa were constructed, damming the Kala Oya and the Malwathu Oya respectively. However, the greatest irrigation engineering feat during the reign of Dhatusena was the construction of the Yoda Ela, also known as Jayaganga, a fifty four mile long canal which carried water from the Kalawewa to the Tissawewa in Anuradhapura. Further significant additions to the irrigation infrastructure were made during the reigns of Moggallana II ( 531 AD – 551 AD ) and Aggabodhi II ( AD 604 – AD 614 ). The former constructed the huge Nachchaduwa Wewa near Anuradhapura, augmented the Nuwara Wewa in Anuradhapura ( History of Ceylon, University of Ceylon: editor; S. Paranavitana ) and built the Padaviya tank by damming the Ma Oya (K M De Silva; A History of Sri Lanka ), whist the latter constructed the Kantale, Giritale, and Kaudulla tanks. Thereafter, the expansion of the irrigation systems seems to have subsided for several centuries till the time of Parakramabahu the Great ( 1153 – 1186 ). This king is considered to be the greatest tank builder of Sri Lanka (ibid ). The massive Parakrama Samudraya in Polonnaruwa, which was created by combining three tanks including the Topawewa, is undoubtedly his finest achievement in the field of tank building. It has to be been noted no other king after him built major tanks.

The ancient agrarian revolution powered by irrigation engineering had many important economic, social, political, religious, and cultural implications and outcome. On the economic sphere, it phenomenally increased the extent of arable land by making it possible to bring vast swathes of erstwhile arid forest land under the plough through irrigation. Further, it would have, most probably, facilitated a significant migration from small scale peasant subsistence farming to more productive large scale farming. Anyway, the obvious economic outcome of the ancient agrarian revolution was the generation of ever increasing agricultural surpluses over and about what was needed to feed the peasants and other agricultural labourers. These massive economic surpluses enabled the kings and their ruling elites to invest enormous resources in the expansion of the irrigation infrastructure, in maintaining the irrigation technocracy and the royal bureaucracy, in building impressive Buddhist monuments such as the great stupas, in patronizing outstanding Buddhist scholarship of international repute, and in constructing awe inspiring secular monuments such as Kasyapa’s Sigiriya rock fortress and royal palace.

On the social and political spheres, the elaborate irrigation systems stretching across vast swathes of farmlands, inexorably led to centralized control of agriculture through irrigation management. The technocrat who controlled the spills and the sluices of the tanks and weirs came to dominate the peasant who ploughed the fields, sowed the seeds, and harvested the crops. This entailed the ascendency of the state bureaucracy including the irrigation engineering technocracy, which in turn called for a unified and highly centralized state.

Pandukabhaya and birth of Sinhala state

It was mentioned earlier that the first significant tank was built by Pandukabhaya in the fourth century BC. It is interesting to note that he was also the first ruler of the Anuradhapura kingdom. Prior to him, the main Sinhala presence in Sri Lanka constituted a conglomerate of Sinhala settlements situated between the Kala Oya and the Malvattu Oya, loosely connected by tribal and family ties. It is evident that Pandukabhaya forcefully subjugated these semi-autonomous settlements and united them under his leadership. Thus the first Sinhala state was born. No doubt, this was in response to a historical necessity of the agrarian revolution, which called for an efficient centralized state. Certainly, this nascent state had nothing to do with Sinhala Buddhist nationalism or patriotism. In the first place, Buddhism was yet to be introduced to Sri Lanka. Further, the Sinhala state was yet to perceive a real threat from non – Sinhalese. It was young, vibrant and self- confident. It was, in modern parlance, an absolute monarchy.

Devamanpiyatissa and the birth of the Sinhala- Buddhist state

Buddhism was introduced to Sri Lanka by the great Mauryan emperor Asoka during the reign of Devamanpiyatissa ( 250 – 210 ) at a time when the ancient agrarian revolution was in full swing. As already mentioned, it was during this period that the Tissa Wewa was built. The peaceful conversion of the country to Buddhism received unreserved royal patronage. The nascent Sinhala state became a Sinhala Buddhist state. Numerous lands and viharas were gifted to the Maha Sanga. These included the Thuparama dagoba, and the spacious Mahamegha park in Anuradhapura, in which the sacred Bodhi tree Sri Maha Bodhi was planted. This signaled the establishment of the Mahaviharaya, the centre of Theravada Buddhist Church in Sri Lanka. No doubt, the doctrine of the Buddha, which laid down a well –structured spiritual path to freedom from existential suffering through the taming of the senses, struck a chord with the well-structured thinking of the Sinhalese irrigation engineers, which provided a path to freedom from material want by taming wild and hostile nature, with technological innovations.

Like Pandukabhaya’s Sinhala state, the nascent Sinhala Buddhist state during Devanampiyatissa’s had nothing to do with Sinhala Buddhist nationalism or patriotism. It did not perceive a real threat from non – Sinhalese or non-Buddhists. Like Pandukabhaya’s state, it was young, vibrant and self- confident.

The Sinhala Buddhist state under siege

Devanampiyatissa’s Sinhala Buddhist kingdom was in state of blissful harmony, arguably unparalled in Sri Lanka’s long history. However, this state of affairs was to be dramatically disrupted after a short period of time due to game-changing external and internal interventions. The major external challenge came from Tamil adventurers from south India bent on plundering the growing wealth of Sri Lanka’s hydraulic civilization. The main internal challenge came from the growing Mahayana tendencies amongst sections Sri Lanka’s Maha Sangha, which had traditionally been the custodian and standard bearer of Theravada Buddhism in Sri Lanka and abroad. Sinhala Buddhist Nationalism was born as a response to these challenges from within and without.

The first major challenge to the young Sinhala Buddhist state emerged thirty years after the death of Devanampiyatissa. Sena and Guttika, two Tamil brothers engaged in horse trading, captured the Anuradhapura kingdom and reigned for twenty two years. A few years after the Sinhalese regained the kingdom, the second successful invasion from South India was launched. This was led by the Chola prince Elara, who reigned in Anuradhapura for forty four years. The Sinhalese under Dutugemunu vanquished Elara and regained the kingdom. Dutugemunu’s reign ( 161 BC – 137 BC ) was a watershed in the Sri Lanka’s history. The island, which hitherto consisted of several kingdoms, was unified under his leadership. The Sinhala Buddhist state became, in present day parlance, a unitary state. However, less than four decades after Dutugemunu’s death, Anuradhapura was captured and occupied again by south Indian Tamils from 103 BC to 89 BC. They were expelled by Vattagamini ( Valagamba ) , who reigned from 89 BC to 77 BC. Thereafter, for more than five hundred years, Sri Lanka was free from foreign occupation. It was during this period that her ancient irrigation witnessed its first great flowering. However, it was during this period that the serious internal threats to the Sinhala Buddhist state emerged. They came in the form of Mahayana challenges to the uncontested supremacy of the Mahavihara led Theravada Buddhist Church, which was a main pillar of the Sinhala Buddhist state. The initial threat came in the first century BC with the establishment of the rival Abhayagiri monastery by Valagamba, which harboured dissenters. The immediate response of the Theravada Buddhist Church to this was the writing down of the Tripitaka at Aluvihara during that king’s reign. The next threat, which was of a much greater magnitude, was the intrusion of Mahayana thinking in the form of Vaitulyavada in the third century AD, during the reign of Mahasena ( 274 AD – 301 AD ), with the fanatical support of that monarch. This was somewhat contemporaneous with the rise of Mahayana in south India under the guidance of great masters such as Nagarjuna. Anyway, the Theravada Buddhist Church eventually prevailed by winning back the king to its side with great difficulty.

The long peace of half a millennium, which commenced with the reign of Valagamba, ended with the invasion from south India in 429 AD. This resulted in the reign of six Tamils kings in Anuradhapura for twenty seven years, until Dhatusena liberated the country from the foreign yoke. Thereafter, the country did not experience invasions from abroad for about four centuries. Ancient Sri Lankan irrigation witnessed its second great flowering. However, during ninth and tenth centuries, Sri Lanka got caught up in the geo-political rivalries amongst south Indian Tamil kingdoms of Pallavas, Pandyas and Cholas. At that time the Hindu Tamil civilization of south India was in its ascendency, whilst the aging Sinhala Buddhist civilization was in a state of stagnation, if not decay. The end result was the conquest of Anuradhapura and the north central plains of Sri Lanka by the Cholas in the closing decade of the tenth century. This dealt a crippling blow to Sri Lanka’s ancient hydraulic civilization. The Sinhalese were, under Vijayabahu I, able to expel the Cholas from the Island in 1070, and under Parakramabahu the Great, revive the ancient hydraulic civilization. Sri Lanka’s ancient irrigation witnessed its third and last flowering. However, the revival was short lived. The invasion by the marauding Kerala army of Magha of Kalinga in 1215 dealt the death blow to the ancient hydraulic civilization. The Sinhalese, who had populated the north central plains since sixth century BC, migrated en masse to the south west and the central hills. The irrigation works were abandoned and went into disrepair. The hostile arid jungles, which were banished by Sinhalese pioneers, returned to the north central plains with a vengeance. The ancient hydraulic civilization of the Sinhalese, which had flourished for more than one thousand five hundred years, came to an end.

The ancient hydraulic civilization and Sinhala Buddhist Nationalism

Sinhala Buddhist Nationalism, like many other –isms, constitute an ideology; an outlook. As already mentioned, it was born as a response to the external and internal challenges to the ancient Sinhala Buddhist state, which was an integrate part of the ancient hydraulic civilization. But, how do we conceptualise this ideology of Sri Lanka’s distant past? Fortunately, the ancient chronicles – Dipavamsa, Mahavamsa, and Chulavamsa, and the last two chapters of the Pujavaliya, come to our assistance. However, it should be cautioned that the ideologies contained in these ancient documents represent , more likely, the views held by their respective authors and their contemporary societies than by the personages of their narratives.

It seems that the internal threat to the Theravada Buddhism by Mahasena’s aggressive promotion of Vaitulyavada prompted the writing of the two oldest exiting chronicles of Sri Lanka – the Dipavamsa, written in the fourth century AD, and the Mahavamsa, composed in the sixth century AD. The fact that the narratives of both works end with the death of Mahasena points in that direction. Anyway, both emphasize that the island was freed from the Yakkas by the Buddha to make way for the Sinhalese settlers and the establishment of the Buddhist doctrine. This amounts to an imprimatur for Sinhala Buddhist exclusivity in Sri Lanka, which goes back, at least, as far as the fourth and sixth centuries. However, the treatment of the Sinhala king Dutugemunu and the Tamil king Elara by the two authors differ significantly. For instance, whilst the Dipavamsa devotes a mere twelve verses to Dutugemunu, the Mahavansa devotes eleven out of its thirty two chapters to him. Clearly, Dutugemunu is the favourite king of the author of the Mahavamsa. Further, whilst both chronicles admire Elara as an incomparably just king, the Dipavamsa, unlike the Mahavamsa, takes note of his outstanding spiritual qualities. More strikingly, the Mahavamsa, in chapter twenty five seeks to lend a Buddhist imprimatur to Dutugemunu’s war with Elara. This is certainly inconsistent with the letter and spirit of the Metta Sutta, as much as the crusades of medieval Christendom authorized by the papacy was inconsistent with the letter and spirit of Jesus’ utterance ” Put your sword in its place, for all who take the sword will perish by the sword” ( Matthew 26; 52 ). In fact, the Mahavamsa’s stance on the Dutugemunu- Elara war is reminiscent of the ideas on ‘just war’ advocated by St. Augustine and the Bhagavad Gita. Most probably, the south Indian invasions of the fifth century prompted the sixth century author of Mahavamsa to take a more militant Sinhala Buddhist stance than the fourth century author of the Dipavamsa.

The first part of the Chulavamsa, which was most probably composed in the early part of the thirteenth century, provides useful information about the period from the death of Mahasena to the end of the ancient hydraulic civilization. The last two chapters ( chapters 33 and 34 ) of the Pujavaliya briefly covers this period in addition to history up to the death of Mahasena. The Pujavaliya was composed in the mid thirteenth century, shortly after the collapse of the hydraulic civilization. Whilst the three chronicles were composed in Pali, the Pujavaliya was written in Sinhala.

The Chulavamsa and the Pujavaliya, in comparison with the Dipavamsa and the Mahavamsa, take a more hostile approach towards non – Sinhala Buddhist actors. For instance, unlike the Dipavamsa and the Mahavamsa, the Pujavaliya perceives Elara merely as a malevolent personage bent on destroying the Buddhist Church. The more virulent Tamil invasions from the ninth century onwards, would have contributed towards this more aggressive Sinhala Buddhist nationalism.

We have seen how the dynamics of the ancient hydraulic civilization gave birth Sinhala Buddhist Nationalism. The hydraulic civilization itself perished as a result of the devastating invasion of Magha of Kalinga. However, Sinhala Buddhist Nationalism did not perish with that civilization. On the contrary, it has continued to live as a potent ideology of Sri Lanka, right up to the present day.

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Features

Sri Lankan Airlines Airbus Scandal and the Death of Kapila Chandrasena and my Brother Rajeewa

Published

23 mins ago

2026/05/17

Thilina Walpola

The death of Mr Kapila Chandrasena (KC), the former CEO of SriLankan Airlines, caused quite a stir in the country. A few politicians, particularly from the opposition, tried to take advantage of the confusion surrounding his death, whilst social media went into a frenzy, with everyone having a theory as to the cause of death.

Even Transparency International Sri Lanka (TISL), the independent anti-corruption watchdog, issued a public statement urging the Government to ensure a full, transparent, and credible investigation into the circumstances surrounding Kapila Chandrasena’s (KC’s) death. TISL further emphasized that the Government bears a responsibility to protect the integrity of the judicial process and to ensure that individuals connected to high-profile investigations are able to participate in proceedings in a safe and secure environment.

While such concerns are understandable, I strongly believe that it is necessary to await the findings of the magisterial inquiry before reaching conclusions regarding the cause of death. To speculate irresponsibly, particularly to fit pre-existing political beliefs, is unfair not only to the deceased but also to his grieving family and loved ones.

First and foremost, I wish to convey my sincere condolences to the family of KC. I understand personally the trauma and anguish associated with losing a loved one unexpectedly and under tragic circumstances.

My brother’s death

Unfortunately, the death of KC also resulted in renewed interest in the death of my brother, Rajeewa Jayaweera, in June 2020. Some individuals on social media attempted to link his death to the newspaper article he published on the Airbus scandal involving SriLankan Airlines, KC and his wife.

Some people even circulated photographs of my brother’s body at the site of the incident across social media platforms. This was deeply insensitive and extremely distressing to my sisters and me. The loss of a sibling under tragic circumstances is something from which one never fully recovers. It took our family years to come to terms with his passing, and to have those painful images resurfaced in connection with an entirely unrelated event reopened old wounds unnecessarily.

On behalf of my sisters and myself, I wish to state unequivocally that my brother, Rajeewa Jayaweera, took his own life in June 2020 due to personal circumstances. His death had absolutely no connection whatsoever to his writings regarding the Airbus scandal. Neither the Rajapaksas, nor any political actor, nor any state agency was involved in his death. The magisterial inquiry into the matter returned a verdict of suicide.

Those who know me personally are aware of my forthright and combative nature. Had there been even the slightest credible suspicion surrounding my brother’s death, I would never have rested until justice was pursued. Since this was clearly established as a case of suicide, I sincerely hope that those who continue to circulate unfounded theories will finally allow the matter to rest with dignity.

The Sri Lankan Airbus scandal

The alleged payment of a USD 2 million bribe by Airbus SE to a shell company established in Brunei by the wife of a senior SriLankan Airlines official came to light following the approval of a Deferred Prosecution Agreement (DPA) between the UK Serious Fraud Office (SFO) and Airbus SE.

The DPA was approved on January 31, 2020 by Dame Victoria Sharp, President of the Queen’s Bench Division, sitting at the Crown Court in Southwark. The award represented one of the largest global anti-corruption settlements in modern corporate history.

The Airbus investigation by the SFO extended far beyond Sri Lanka. It involved allegations of bribery and corrupt practices linked to aircraft purchases by AirAsia and AirAsia X in Malaysia, SriLankan Airlines, TransAsia Airways in Taiwan, PT Garuda Indonesia, Citilink Indonesia, and military aircraft transactions involving the Government of Ghana.

The approved judgment contained specific references to the SriLankan Airlines transaction (page 12, points 41 to 44). It alleged that Airbus employees, contrary to Section 7 of the UK Bribery Act 2010, failed to prevent bribery involving individuals connected to the airline’s aircraft procurement process between July 2011 and June 2015.

According to the Statement of Facts, Airbus engaged the wife of an individual connected to the aircraft acquisition process through a shell entity described as “Company Intermediary 1”. Airbus employees allegedly offered up to USD 16.84 million in commissions in relation to SriLankan Airlines’ purchase of ten Airbus aircraft and the lease of four additional aircraft. Ultimately, only USD 2 million was allegedly paid.

The judgment further stated that Airbus employees sought to disguise the identity of the beneficial owner behind the intermediary company and misled the United Kingdom Export Finance Agency (UKEF) regarding the intermediary’s qualifications, aviation experience, and role in the transaction.

The smoking gun from Sri Lanka that commenced the UK SFO investigation

The matter became particularly significant because it was the concerns raised by UKEF regarding the SriLankan Airlines intermediary that ultimately triggered the wider SFO investigation into Airbus. UKEF questioned why an individual with little aviation experience and who was domiciled outside Sri Lanka had been engaged as a business partner in such a major transaction.

Airbus reportedly provided misleading and inaccurate responses to those concerns in February 2015. Unsatisfied with the explanations provided, UKEF escalated the matter, which subsequently contributed to the formal investigation launched by the SFO in July 2016.

Ironically, what appears to have been a poorly concealed and amateurishly structured bribe involving SriLankan Airlines ultimately became one of the catalysts for a global corruption investigation that resulted in Airbus paying penalties approaching EUR 4 billion across the United Kingdom, France, and the United States.

Under the settlement approved in the UK, Airbus agreed to pay approximately EUR 991 million into the UK Consolidated Fund, including disgorgement of profits and financial penalties. Simultaneously, French and American authorities imposed additional penalties amounting to nearly EUR 3 billion.

Aircraft procurement and corruption

The Airbus matter once again highlighted a longstanding global reality: aircraft procurement has historically been highly vulnerable to corruption. The purchase of aircraft involves enormous financial values, complex financing arrangements, confidential negotiations, intermediaries, export credit agencies, and political influence. These factors create conditions for improper payments and abuse of authority.

Globally, there have been numerous allegations over several decades involving commissions, hidden intermediaries, and questionable consultancy agreements linked to aircraft purchases by both commercial airlines and governments. It is generally believed that the average commissions paid are between 3% to 5% of the order value.

The cost to Sri Lankan taxpayers

One of the most undesirable aspects of the Airbus affair is the financial burden ultimately borne by ordinary Sri Lankan taxpayers.

In 2015, the Government of Sri Lanka decided to cancel the order for four Airbus A350 aircraft as they were deemed unsuitable. As a consequence of that cancellation, SriLankan Airlines incurred penalties estimated at approximately USD 140 million, equivalent to roughly Rs. 19.2 billion at the time.

While Sri Lankan taxpayers absorbed these enormous losses, the United Kingdom taxpayers benefited financially from the Airbus settlement. The UK Consolidated Fund received almost EUR 1 billion arising from the penalties imposed on Airbus.

The contrast is stark. Sri Lanka suffered substantial financial losses as a result of a transaction tainted by allegations of corruption, while foreign governments received the benefit of the resulting fines and penalties.

The questions raised by my brother

My late brother, Rajeewa Jayaweera, wrote an article about the Airbus scandal in an article published in the Sunday Island on February 16, 2020, titled “SriLankan Airlines Airbus Deal”. In the article, he referred to a SriLankan Airlines Board meeting held on October 27, 2016.

According to his article, Board Minute 7.3 dealt specifically with reports that Airbus was under investigation in Europe for bribery-related offences. Rajan Brito, who was then a director of the airline, reportedly informed fellow board members about the investigations and tabled draft letters intended for Airbus, Rolls-Royce, and AerCap.

Those draft letters reportedly suggested that the aircraft transactions may not have been based solely on commercial considerations and sought information regarding the role of facilitators and intermediaries.

However, according to my brother’s article, Brito’s proposal to send those letters was reportedly ignored on the basis that the airline was negotiating favourable terms to cancel aircraft purchase commitments and that sending such letters might sour relations and disadvantage the airline.

However, my brother believed that the decision not to proceed with Brito’s letters was controversial and highly questionable, and that the airline could have sought the assistance of the PNF (Parquet National Financier) to investigate the deal and seek financial restitution, given that the order was allegedly tainted by corruption, particularly given the emerging evidence of corruption surrounding the transaction.

Even today, an important question remains unanswered: did the Government of Sri Lanka or any subsequent board of SriLankan Airlines seriously attempt to recover the USD 140 million cancellation penalty, along with any inflated amounts paid after the global corruption findings against Airbus became public?

The slow pace of Sri Lankan justice

Following the public release of the UK judgment on January 31, 2020, Sri Lankan authorities moved relatively quickly to initiate legal proceedings against KC and his wife.

On February 4, 2020, arrest warrants were reportedly sought. On February 6, 2020, KC and his wife surrendered to the Criminal Investigation Department (CID) and were remanded until March 4, 2020, when they were released on bail.

The allegations reportedly related to accepting a USD 2 million bribe and engaging in money laundering activities. Press reports also indicated that travel restrictions had been imposed.

However, six years later, the matter still appears unresolved. Based on publicly available information, indictments were reportedly filed before the Colombo High Court in 2022. Since then, several hearings dealing with procedural and preliminary issues have reportedly taken place, but the substantive trial itself has yet to properly commence. With KC now deceased and reports suggesting that his wife may have absconded, the prospects of successfully prosecuting the matter appear increasingly uncertain.

Many Sri Lankans understandably feel frustrated by the slow pace at which corruption-related cases proceed through the judicial system. This frustration is particularly acute where allegations involve politically connected individuals or transactions involving massive losses to the public.

The public perception is that investigations move slowly, prosecutions are delayed for years, and accountability is often ultimately avoided through procedural delays, political changes, or the passage of time.

To be fair, corruption cases involving international financial transactions are inherently complex. They require cooperation between multiple jurisdictions, access to banking records, mutual legal assistance processes, forensic accounting, and substantial documentary evidence. Nevertheless, the extraordinary delays contribute to growing public cynicism regarding the administration of justice.

It is also worth noting that the UK proceedings against Airbus did not publicly identify KC by name. Much of the public discussion in Sri Lanka has therefore relied on local investigations and media reporting rather than the UK judgment itself.

According to information available in the public domain, the alleged funds connected to the USD 2 million payment ultimately found their way into an Australian bank account linked to KC. Given the reputation of Australian authorities for cooperating with international law enforcement investigations, many members of the public expected a faster and more decisive legal process in Sri Lanka.

In that context, a detailed public explanation by the Attorney General’s Department regarding the legal and evidentiary challenges affecting the case may help improve public understanding and confidence.

SriLankan Airlines: A continuing national burden

The Airbus controversy cannot be viewed in isolation from the broader failures surrounding SriLankan Airlines over several decades.

The national carrier has accumulated debts estimated at approximately USD 1.2 billion, equivalent to nearly Rs. 350 billion. This translates to a burden of roughly Rs. 16,000 per Sri Lankan citizen, including millions who have never travelled on the airline.

Successive governments have interfered extensively in the airline’s operations. Political appointments, weak governance, lack of commercial discipline, and poor strategic decision-making have contributed significantly to the airline’s decline.

Far too often, individuals lacking meaningful aviation expertise have been appointed to key board and management positions. Political loyalty has frequently taken precedence over competence and experience.

The decision to terminate the management and ownership partnership with Emirates remains one of the most controversial episodes in the airline’s history. Many industry observers believe that decision alone cost Sri Lanka billions of rupees in lost opportunities and operational deterioration.

Despite repeated financial losses and mounting taxpayer burdens, very few individuals have ever been held accountable for the disastrous decisions that contributed to the airline’s decline.

The current Government faces an unavoidable reality. SriLankan Airlines cannot continue indefinitely as a financially unsustainable state enterprise funded by taxpayers already struggling under severe economic hardship. Decisions regarding the future of the airline must be guided by commercial reality rather than political ideology or emotional nationalism.

Ultimately, the Airbus scandal is not merely about one individual or one alleged bribe. It reflects deeper structural weaknesses involving governance, political interference, accountability, and institutional failure within Sri Lanka.

Sadly, a relatively young man has now lost his life amidst these events and controversies. Regardless of the allegations against him, that remains a human tragedy. At the same time, the country must continue to demand transparency, accountability, and institutional reform so that such scandals are never repeated.

(The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the policy or position of any organization or institution with which the author is affiliated).

By Sanjeewa Jayaweera

Features

High stakes and hidden hands: Navigating the maze of electronic financial fraud

Published

42 mins ago

2026/05/17

Thilina Walpola

Electronic or digital financial fraud is the current, extremely distasteful description of a blight that has hit the entire globe; a menace that is perpetrated through an unbelievable labyrinth of interconnected dishonourable and nasty manoeuvres. In an era where our financial lives are increasingly becoming digital, the “perfect financial crime” no longer requires a getaway car. It just needs a high-speed internet connection and stupendously brilliant, depraved and Machiavellian minds.

Modern scams have advanced far beyond the poorly spelt emails of the past. They are now extremely sophisticated operations exploiting psychological manipulation and deep-fake technology. Financial fraud has evolved from simple street-level deception into a complex, multi-billion-dollar industry. It has been manipulated through many different currencies in different parts of the world. In Sri Lanka, the landscape of scams has shifted from traditional “pyramid” schemes to sophisticated digital heists and institutional bond scandals that threaten the very fabric of our national economy. From an international outlook, financial fraud is becoming increasingly transnational. Sri Lanka is currently under intense scrutiny by the FATF (Financial Action Task Force). Sri Lanka falling onto the “Grey List” again would have severe repercussions, potentially causing international banks to suspend payments to the island, severely upsetting our exporters.

The financial fraud profile of Sri Lanka has gone from “Bonds” to “Glitches”. Our country has been rocked by high-profile financial irregularities that serve as a stark warning about institutional integrity. First was the Treasury Bond Scandal. Often cited as the largest financial scam in the nation’s history, the Central Bank bond issuance of 2015 highlighted the risks of Insider Trading and the manipulation of government securities. The fallout cost the public billions of rupees, demonstrating how high-level collusion can bypass traditional safeguards.

The recent problem where the Treasury remitted a very large amount of foreign currency to a different portal to which money should not have been sent is a special type of Financial Fraud problem that seems to have been instigated by a deceptive email. It is under investigation at present, and it appears that it is the money that had been earmarked for foreign debt reconciliation. It is the taxpayers’ money that has been allowed to be swindled by unscrupulous crooks.

Then there is the National Development Bank (NDB) “Glitch” Controversy.

The entire banking sector was shaken to its roots by reports of a massive multi-billion-rupee fraud at the NDB. This incident, often referred to in local circles as “The Glitch,” involved the alleged diversion of funds through a sophisticated manipulation of the bank’s internal accounting systems.

Then there are the perceived Guardians, who often serve as Whistleblowers. The fight against such deep-seated corruption rarely begins with a regulator; it often starts with an individual. It is just someone who smells a rat. Maya Senanayake, a forensic expert at NDB, has emerged as a symbol of integrity in this landscape by identifying anomalies that others chose to ignore. Whistleblowers like Senanayake face immense personal and professional risks. Their role is a “Herculean effort”, very often battling institutional stonewalling to bring the truth to light. Without such individuals, “Suspense Account” spikes and “shell-company diversions” would remain invisible to the public eye.

Having mentioned just two of the buzz phrases in circulation, given in Italics above, it is pertinent to provide definitions for some of these phrases that are being bandied about very frequently in articles on the main subject of this article.

· SCAM – It is a fraudulent scheme or deceptive act performed by an individual or group to trick a victim into giving up something of value, typically money, personal information, or assets. It is a blatant lie or a misrepresentation of the truth. Unlike theft (where something is taken by force), a scam usually involves the victim “willingly” handing over assets because they believe the fraudster’s story. Scams often rely on psychological manipulation, such as creating a sense of urgency, fear, or the promise of a “too good to be true” reward.

· HACKERS –

The term has evolved significantly and carries different meanings depending on the context. In the broadest sense, a hacker is someone who uses technical skills to overcome a problem or bypass a system’s limitations. The cybersecurity industry generally classifies hackers by their intent, often using a “hat” colour system.

The White Hat Hackers are an ethical group that is hired to detect vulnerabilities. They are legal and helpful as they improve security by reporting bugs.

The Black Hat Group are cybercriminals who break into systems illegally. They are malicious, steal data, plant malware, or disrupt services.

The Grey Hats Individuals who may break laws to access a system, but without malicious intent. They are individuals who might find a bug without permission and then offer to fix it for a fee.

· MONEY LAUNDERING – It is the process of “cleaning” illicitly-earned money by passing it through complex bank transfers or commercial transactions.

· TREASURY BOND –

A government debt security that provides a fixed interest rate. Manipulating these affects the nation’s debt and interest rates.

· WHISTLEBLOWER –

It is an “insider” who reports and even makes public, concealment of illegal or unethical activities within an organisation to the public or relevant authorities.

· SUSPENSE ACCOUNT –

A temporary account used to hold funds while their final destination is determined. These are frequently used in fraud to “hide” money during transfers.

· SHELL COMPANY –

No., NO…, it is not the Shell Company that deals with fuel. This terminology refers to a company that exists only on paper and has no active business operations. It is very frequently used to obscure the identity of those moving money. They become “Ghosts”.

· FORENSIC AUDIT –

An examination of financial records to find evidence that can be used in a court of law or for legal proceedings.

When one examines some of these frauds and scams, it becomes clear that at the bottom of the distasteful occurrences lie systemic inadequacies. Scrupulous attention to all details of financial transactions, trustworthy and fool-proof systems dealing with financial transactions, utmost vigilance and a very high degree of suspicion are the incontrovertible needs of the hour. The powers-that-be in all things that deal with financial transactions must consist of people with unblemished honesty, unbridled integrity and honour.

International best practices now emphasise a shift from “rules-based” to “risk-based” oversight, even going to the extent of utilising Artificial Intelligence (AI) to detect suspicious patterns in money laundering and financial fraud that a human eye might miss.

For individuals and the general public, the Three Golden Rules for Protection are as follows”

· Demand Transparency:

Whether you are an investor or a depositor, always ask for the audited financial statements of the institution.

· Verify the Chain:

In government securities, ensure you are dealing through registered primary dealers.

· Support Protections:

Advocate for stronger Whistleblower Protection Acts to ensure that those who speak the truth are not penalised by the system they seek to save.

The trick is to protect ourselves from the Invisible Thief by protecting ourselves from Modern Scams. Here is a breakdown of the most prevalent threats today and how to safeguard your assets.

A. The “Urgent Authority” Tactic

Scammers often impersonate trusted institutions such as banks, financial institutions, tax offices, or law enforcement. They create a sense of artificial urgency, claiming your account has been compromised or you owe an immediate fine.

· The Red Flag: Any request to move money to a “safe account” or pay via untraceable methods like gift cards or cryptocurrency.

· The Defence:

Hang up immediately or delete the message if it is on email. Contact the institution using a verified phone number from their official website or the back of your bank card to check the veracity of the request.

B. Investment and “Get Rich Quick” Schemes

With the rise of digital assets, “pig butchering” scams have become rampant. Fraudsters build a relationship with the victim over weeks (the “fattening”) before suggesting a “guaranteed” investment opportunity in crypto or forex (the “slaughter”).

· The Red Flag: Returns that consistently outperform the market with “zero risk.”

· The Defence:

If an investment opportunity sounds “too good to be true”, it almost always is. Professional financial advisors do not solicit clients via WhatsApp or dating apps.

C. Phishing and Smishing (SMS Phishing)

These are deceptive messages designed to steal login credentials. You might receive a text stating a package delivery failed, or your Netflix subscription has lapsed, followed by a link to a “login” page that looks identical to the real thing.

· The Red Flag: Unusual URLs (e.g., wellsfarg0.net instead of wellsfargo.com) and unexpected attachments.

· The Defence:

Never click links in unsolicited messages. Use Multi-Factor Authentication (MFA) on all sensitive accounts; even if a thief gets your password, they won’t get the secondary code.

4. The AI Impersonation (The Grandparent Scam)

Advancements in AI voice cloning allow scammers to mimic the voice of a loved one in distress. They may call claiming to be in a car accident or legal trouble, begging for immediate funds.

· The Red Flag: High emotional pressure and a demand for secrecy.

· The Defence:

Establish a “family password” – a unique word or phrase only your inner circle knows. If the caller cannot provide it, they are not who they say they are.

The Three Golden Rules for Financial Safety are

· Slow Down and Do Not Get Frightened:

Scammers rely on panic. Taking five minutes to think or consult a friend usually breaks the spell of the scam. It is also important to realise that some scammers try repeatedly.

· Verify the Source:

Never trust Caller ID, as numbers can be easily “spoofed” to look local or official.

· Protect Your Data:

Be wary of how much personal information you share on social media. Scammers use these details to make their impersonations more convincing.

Your bank will NEVER EVER ask for your Personal Identification Number (PIN), your Account Password, One-Time-Password (OTP) or request you to transfer money to an entirely new, unknown account. If any such request comes, do not fall for it and immediately contact the institution through their standard publicised telephone lines to check on the veracity of the request.

If you suspect you have been targeted, report it to the bank or financial institution, your local authorities and the legal investigative portals…, IMMEDIATELY.

(Some of the material presented

in this article was extracted with the help of AI.)

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 free-lance correspondent.

Features

In Memory of Professor M S M Mookiah

Published

42 mins ago

2026/05/17

Thilina Walpola

The passing of Professor M S M Mookiah is a great loss to the National Peace Council of Sri Lanka and to all who knew him. He was a steadfast supporter of our mission of peacebuilding and our commitment to inclusion and justice for all communities. Since 2006 he has served loyally as a member of the NPC Governing Council and Board, bringing to our work the benefit of his long experience in public life and academia. He believed deeply in the possibility of healing divisions through dialogue and understanding. What gave him satisfaction was participation, service, and the opportunity to contribute to a better future.

Professor Mookiah was an alumnus of the University Peradeniya, a Commonwealth Scholar at the University of Wales, Institute of Science and Technology, Cardiff and returned to Peradeniya and served and Head Geography at the University of Peradeniya. Subsequently he served as Vice Chancellor of Eastern University, Sri Lanka and later as a member of the Public Service Commission of Sri Lanka. He carried these responsibilities with dignity and humility. Even after retirement, there was nothing he enjoyed more than travelling to distant parts of the country to meet people and discuss the challenges of reconciliation and post war reconstruction. He believed strongly in dialogue, coexistence, and the possibility of building a more just society focusing on subjects such as Pluralism, Transitional Justice, Social Cohesion and Reconciliation.

His scholarly contributions were not merely academic but deeply rooted in social justice. He acted as a catalyst and inspiration for thousands of students, particularly helping students from Hill Country enter higher education. He mentored thousands of students and stood as a primary source of inspiration for students from Hill Country to break barriers and enter the sphere of higher education. He remained deeply loyal to the hill country where he was born and to the Malaiyaha Tamil community whose advancement he quietly supported throughout his life.

He understood the hardships faced by plantation families and the barriers confronting young people seeking higher education. One of his most meaningful contributions was the scholarship scheme he initiated in 2014 together with his brother Dr S. Kanapathyraja. Through the support of the Rotary Club of Carmarthen in Wales and later other well-wishers abroad, the scheme enabled university students from plantation communities to pursue higher education. It continues to this day and stands as a lasting part of his legacy.

Professor Mookiah was also a warm and gracious friend. He and his wife welcomed us into their home with generosity and kindness and shared the chocolates his sons brought when they visited from abroad. In later years he spent long periods with family in Switzerland, the United States, and India, where his ashes now lie. But his life’s work belongs to Sri Lanka, to its universities, to the students he inspired, to the communities he served, and to the cause of peace and reconciliation to which he remained committed throughout his life. His presence will remain with us at NPC in his work of peacebuilding, in the scholarship scheme he helped create, and in the memories of all who had the privilege of knowing him.

We offer our prayers for his soul to rest in peace and extend our heartfelt condolences to his family, friends, and the thousands of students grieving this great loss.

By National Peace Council of Sri Lanka