Connect with us

Features

The 1977 election and the J R Jayewardene Presidency

Published

on

Evolving ethnic conflict and emerging Indian factor

The general elections of 1977, which Sirimavo Bandaranaike had called, on July 21 saw another of those dramatic swings of the political pendulum, which had characterized Sri Lanka’s political history since independence. It saw the governing party, the SLFP, reduced from 91 to eight seats. The UNP, which while in opposition between 1970-77 had only 17 seats, won 140 seats in this election. It secured a 5/6th majority in the House, at the time a record for any parliamentary democracy in the world.

The result of the 1977 polls, was interpreted by J R and most people as an indictment of the electorate’s disenchantment at the ‘statist’ policies of the United Front government. Moreover, the extension of the life of Parliament by two years, from 1975 to 1977, and the more or less continuous emergency under which the country had been ruled, had turned the majority of people against the United Front government. The left partners, the LSSP and the CP, had moved out of government at the closing stages.

Many urgent tasks awaited J R Jayewardene. Foremost in his thinking was the economy which had to be freed of the controls which had constrained it. Space had to be found for the private sector to revive and grow. The infrastructure of roads, ports, irrigation and power, on which future development was to rest had to be rehabilitated. J R planned and launched some massive development works, the centerpiece of which was the Mahaweli ganga accelerated programme of integrated irrigation and power development.

It literally changed the face of central Sri Lanka. His principal colleagues in this surge of development were Gamini Dissanayake and Lalith Athulathmudali in irrigation and port development respectively, and Premadasa to whom he entrusted a wide programme of rural housing and urban renewal and rehabilitation.

But the infusion of a new dynamism in directing this major policy shift from a controlled to an open economy needed, in J R’s view, the reform of the 1972 Constitution. The huge majority which the government had secured, guaranteed that these far-reaching structural changes could be effected. A series of amendments to the existing Constitution, pushed through in 1977 and 1978 itself (with the help of the more than 2/3rd parliamentary majority J R had secured), saw the Westminster system of prime ministerial government radically altered. The president’s role became preeminent with the executive being endowed with enormous power.

The critics called it Bonapartism’ looking at the concentration of power in the hands of the president. The president was henceforth to be head of state and head of government combining both the `dignified’ and ‘efficient’ aspects of state leadership. The prime minister’s role was henceforth to be no more than that of a minister. Executive power was to be exercised by the president. He could choose his Cabinet from among the members of parliament.

The reforms also brought in proportional representation in the election of members of parliament, in place of the first-past-the-post system which had prevailed since independence. Proportional representation not only eliminated the possibility of massive swings at the elections, but also locked in the 1978 constitution into an almost impossible-to-change situation because of the difficulty of ever again obtaining a two-third majority in Parliament.

Attempts at Resolving the Ethnic Question – The District Development Councils of 1980

J R soon came up with a proposal for limited decision making at the level of the district based on the experience of the District Political Authority and the District Minister System. This was the development councils’ idea which was more an attempt at democratizing decentralized power rather than the devolution of power. The final form of the Act which came out of the work of a commission headed by Victor Tennekoon, a former Chief Justice gave limited powers to the councils approximating those carried out by village councils and town councils. So it was not much but at least provided members of parliament with some local means of funding and power in local development.

J R chose me along with a few secretaries to assist in the work of identifying work which could be assigned to the development councils. I was amazed at how little of their vast powers the ministers of the government were prepared to ‘surrender’ to the councils. And much of what was given could of course be yet taken back because the councils would be chaired by the district minister who were all government members of parliament.

Although the council’s powers were extremely limited the TULF was prepared to make it work. However the experience of the DDC elections in Jaffna scheduled to be held in June 1981 but extensively flawed as a result of the exertions of some prominent UNP ministers, and the subsequent burning of the Jaffna Library by reportedly the police, did not augur well for the success of this initiative.The moderates in the TULF had to give in to the young extremist militants in the wings and the downward spiral of events which culminated in the violence of 1983 became unstoppable.

The Indian Factor and the Response of J R Jayewardene

India’s involvement especially between 1980 and 1989 in the Sri Lankan ethnic issue was precipitated, I think, directly by the 1983 happenings. Although I was not in the country at the time and was in London for five years, from 1984 to 1989, I always had the feeling that India would involve itself more and more in Sri Lankan affairs as the conflict with the Tamil militant groups intensified. During the violence of 1983 itself, while I was handling Essential Services, there was constant concern being expressed by both the Indian High Commission in Colombo, and the official visitors from India on the state of affairs relating to the Tamil community.

The refugee camps and welfare centers were under my charge, and I recall in particular in 1983, the visit of G Parathasarathy – one of Indira Gandhi’s closest advisors – who wanted to see me in regard to the conditions of the Welfare Centers. I spent two days with him going around the camps and listening with him to the tirade of complaints of their sufferings during the July riots and their lack of hope about the future. At a meeting with the Indian High Commissioner, Parathasarathy expressed his deep concern at the unsatisfactory situation and referred to India needing to concern itself of the plight of Tamil people in Sri Lanka.

This led the Indira Gandhi administration to deliberately build up the strength of the Tamil militants by training and supplying arms in order that they, the militants, could withstand any more attacks against them by either odd, lawless groups like in 1993 or by agencies of the state itself. References made from time to time in books on India’s involvement in Sri Lanka by Indian authors or in the Indian media would make us believe that many of these efforts were orchestrated by RAW – the Research and Analysis Wing of the Indian intelligence services, which apparently operated close to the prime minister’s office.

Looked at from the Tamil side one could come to the conclusion that the strategy paid off. It is indeed curious that, although since 1983 there had been several incidents where the loss on the government side has been far greater than the 13 soldiers ambushed at Thinnaveli in July 1983 (which precipitated the riots), there have been virtually no retaliatory attacks on Tamil civilians in Colombo or in the other Sinhala majority areas since then.

Colombo was attacked several times by the LTTE since 1995, in particular – the bombing of the Galadari Hotel, the attack on the Central Bank, the armed incursion into the Oil Installations at Kolonnawa, and even the attempt at ramming a lorry into the Dalada Maligawa in Kandy and there was never a backlash by the Sinhalese against the Tamil civilian population in Colombo. The popular explanation to this is that those who may have perpetuated such action have now become older and wiser and therefore desisted from carrying out such tit-for-tat operations. Of course another explanation would be that the existence of a potentially effective `from the Tamil point of view’ further counter-strike by LTTE forces might also be a reason for deterring such vigilante groups from contemplating any such action.

The Monarchical Tradition

J R Jayewardene liked to trace his origins back 300 years to a family known as the Tudugala’s. To the name Tudugala was added the name Wijewardene on the conferment of a British honour, at the beginning of the 20th century. J R’s interest in history and lineage was pervasive. When he became the first executive president of Sri Lanka in 1978, he used to take pride in saying that he was the last in the line of rulers of the island in an unbroken succession dating back over 2500 years!

When J R was minister of state in the Dudley Senanayake Government of 1965-70, a former Government Archivist, H O Paulusz was requested to publish a book on the Tudugala family’. This contains an interesting history of J R’s mother’s ancestors.

The Tudugala saga goes back to the 17th century when two brothers, Tennekoon Mudiyanse and Tennekoon Madummaralla, both great-grandsons of Prince Vidiya Bandara distinguished themselves as generals in King Rajasinghe II’s army. But that success also led, as in many other instances in Rajasinghe’s time, to their downfall.

Tennekoon Mudiyanse was driven into exile and his brother imprisoned and probably executed. Madummaralla’s son, Tennekoon Appuhamy, who was the Disawa of Sabaragamuwa, was also executed by the King in 1766. However, his wife and children, who were residing then in the Dutch Provinces, prospered and the family history was traced through the Dutch records and land tombus, a register containing particulars regarding land ownership established during Dutch rule.

There are records of Don Philip Tudugala who was born in 1804 in the village of Tudugala near Kalutara. Don Philip, who was the founder of the modern branch of the family came to live in Colombo in the village of Sedawatte on the banks of the Kelani ganga. He soon became one of the richest Sinhalese merchants of the time.

It was building boom time in the city of Colombo, after the construction of the harbour breakwater and Don Peter Tudugala prospered from the city’s development, supplying timber, sand and bricks which came down the Kelani ganga to Sedawatte. He invested his income in real estate and took on the name of Wijewardene, when conferred with an honour by the British government.

Don Philip left seven sons and two daughters. Among these were DC and DR; DC, the author of the Revolt in the Temple, DR (Don Richard), the founder of the Associated Newspapers of Ceylon Ltd. (Lake House).The others achieved distinction in commerce and other professions.

His eldest daughter married a Jayewardene, who became a Justice. J R ( Junius Richard) was his son. Helena Dep Weerasinghe, the widow of Don Philip Tudugala and J R’s grandmother, was the benefactor of the ancient vihare, the Rajamaha Vihare of Kelaniya. The influence of the family was paramount in the area, and when J R got interested in politics, it was only natural that he chose Kelaniya as his constituency.

(Excerpted from Rendering Unto Caesar by Bradman Weerakoon)



Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Features

A visa for bringing in expertise and expanding tourism

Published

on

In this article, I introduce an idea which is simple to implement but is powerful and helps with building technical skills, strengthening the country brand and creating international opportunities for Sri Lankans. Furthermore, it can diversify and extend the country’s tourism revenue streams.

The simple idea is to introduce a hassle-free visa for Internships, Volunteering, Expert Exchange Programs and Short-term Studies. For brevity, let me call it a Knowledge Transfer Visa or KTV. There are three important clarifications to make up-front. Firstly, this visa is not for those seeking paid employment in Sri Lanka. Secondly, the local partner needs to ensure that if any local permits or permissions are applicable, these are in place and cover any KTV holders. Thirdly, it is not a resident’s visa and tourist rates will have to be paid by KTV holders for their sightseeing.

It is also important to spell out up-front a critical requirement for success. This is that an applicant from a country who is entitled to obtain an online tourist visa quickly and easily should be able to obtain a KTV with the same ease and convenience. It would be reasonable for the Department of Immigration to have an additional information box in the visa application to ask for the name and contact details of the local partner (corporate or individual). But it should not be the role of the visa issuing officer in a Sri Lankan foreign mission or the Department of Immigration to examine paperwork to assess the credentials of the visitor and the local partner. This should be left to the applicant and local partner to assess each other. By analogy, a tourist is not asked to demonstrate that the hotel they have booked into is validly registered as a tourism business. Nor does the visa issuing process ask the hotel if they have vetted the tourist’s ability to pay. If the KTV is kept as simple as an online tourist visa, it will succeed, otherwise it will fail to deliver the potential benefits.

A reader may ask why this sort of visa is needed. The answer is that Sri Lanka is well positioned to benefit from activities covered in a knowledge transfer visa. However, such visits will only materialise if foreign nationals are reassured that they can arrive for such purposes with a visa where the purpose of their visit is explicitly recognised and they are confident that their visit is welcomed. Visitors on a KTV will bring in hard currency revenues in much the same way as ordinary tourists but importantly lead to other benefits such as the import of expertise, building international networks for local corporates and individuals and being potential repeat visitors. Let me explain by running through the various strands.

Internships

With the first strand, Internships, there is an overt intention that people want to work in a very structured manner and obtain useful work experience to help obtain paid employment back in their home country. Sri Lanka for various reasons, wishes to have tight controls over foreign workers and to limit foreign nationals on work visas. It is important to point out that facilitating internships need not conflict with this thinking. Incoming foreign interns are different to full-time foreign workers and caters to a younger demographic looking for a short period of work experience. If Sri Lanka restricts foreign internships to unpaid internships, this will limit the candidate pool to those interns who have parental financial support. Nevertheless, this is still a start and better than not opening the door at all.

In many sectors, Sri Lanka can offer meaningful summer internships of up to 3 months or longer. Two obvious examples are Tourism and Information Technology (IT). Sri Lankan companies cannot run viable business models by relying on a supply of foreign interns. Therefore, foreign interns do not in any way threaten the prospects for locals for employment. On the contrary, foreign interns from developed economies can benefit locals working with them in various ways. These could include improving language skills, and locals gaining exposure to skills such as time-management and project planning. Internships can also be used for foreign students to engage in undergraduate and postgraduate university projects with local academics.

To explain how foreign interns can be very useful, let me construct an example. It is a fact that Sri Lankan companies are writing the software for some of the most technologically advanced companies in the world. Imagine Sri Lankan IT companies actively pitch this to foreign universities in advanced economies and foreign undergraduates take up internships in Sri Lanka. Not only do they gain work experience of an equivalent standard to working in London or New York, but they will have a more exciting time in a tropical country. When they graduate, they will take up jobs in London, New York or wherever. When their employers are looking to outsource work, they may recommend the companies they worked with in Sri Lanka. Some of these foreign interns may even start their own companies in the future and look to outsource work to the Sri Lankan companies they worked with. If the new start-ups do well, there may be frequent business visits. When their former interns start families, they will visit Sri Lanka on visits which combine business meetings with a family holiday. Their children in turn will grow up with Sri Lanka being a place that was a regular holiday destination and, in the future, bring their own children on holiday. Internships in Sri Lanka to foreign students can grow future business revenues and also create a multi-generation chain of tourists.

Some foreign interns can also work in a three-way collaboration between their university, a local university and a private sector company. Take for example, a hotel that has placed camera traps on its property to study wildlife. If they do it on their own, it may simply be for marketing the hotel. If they can partner with a local academic or conservation NGO, it could be elevated into a formal study, perhaps even a long-term study. For both the local academic and the hotel, it would be useful if any work they do is part of a long-term study with a foreign university. International collaborations like this are also more useful to the hotel in their efforts for international publicity. For the local academic or conservation NGO, the international collaboration could also open opportunities for funding and recognition and invitations to present in international conferences. A win for all.

If Sri Lanka companies open up to foreign interns, it may result in them realising the value of well-structured internship programs and the dialogue with overseas interns and their academic supervisors may lead to good internship programs being set up for both local and foreign applicants. This can only help young resident Sri Lankans who at present are frustrated by the paucity of structured internship programs even amongst Sri Lanka’s leading companies.

Before I continue to the next two strands, it is useful to reiterate why a knowledge transfer visa is important. The above-mentioned benefits can only arise if potential foreign interns and volunteers have a mechanism of a special visa to reassure them that the purpose of their visit is properly disclosed and that their activity in Sri Lanka is welcomed and completely above-board within the stated purpose of the visa.

The same will apply, with voluntourism, which is a form of commercial tourism activity. Overseas companies that have a business model of arranging voluntourism abroad are more likely to add Sri Lanka as a destination if a KTV existed.

Volunteering

The second strand is Volunteering and here I define it narrowly to cases where a volunteer is not volunteering to build out their CV to help them gain paid employment in their home country. If they are doing so, it is covered under the Internship category. Under this definition, volunteers are people who fall into two broad categories. They may be volunteering for recreational purposes, coupled with wanting to do something that is societally useful. Or they may be people who are retired and on a comfortable retirement income who now have time and money to give something back to society. For example, a person in a highly paid job may come and volunteer for two weeks on a science (e.g. biodiversity surveys) or an arts project (e.g. cataloguing temple art). They may do this because they enjoy doing something different from their day job which is related to their personal interests and societally useful. This type of volunteering has become a significant form of tourism, known as voluntourism.

For the second type of volunteering an example would be a retired wildlife reserve manager from overseas who is happy to work for free with a Sri Lankan hotel or game lodge to train guides and provide practical help in rewilding the grounds of the property. They may enjoy mentoring and want to share their experience with others who are happy to learn from them. To take another example, it could be a retired museum curator who is happy to volunteer at a government museum to train local staff and inject fresh thinking into how exhibitions are curated.

The host country receives free expertise and valuable time from such volunteers. The volunteers are also paying tourists.

In G20 countries, volunteering is highly organised and has resulted in businesses that provide on-line platforms to match volunteers with recipient organisations. Sri Lanka can benefit from making it easy for people to volunteer and to come over, whether it is to paint hospital wards, help in beach clean-ups, or to help at a literary, music or cultural festival or to train local wildlife guides. Many volunteers will also look to add on a holiday extension to their volunteering stay. It is not just free people-hours of work and spending as foreign visitors: Carefully chosen good volunteers also bring in ideas, know-how, enthusiasm and energy.

Expert Exchange

The third strand in the knowledge transfer visa is for Expert Exchange. This is for people who are established in their discipline and looking to diversify their experience and build an international network by engaging in short term unpaid assignments overseas. For example, let’s assume a senior academic would like to spend a month working with local counterparts. Perhaps it is someone from a Management Science faculty who is interested in South Asian trade and wishes to work with local counterparts in a Sri Lankan professional institution or the Management Science faculty of a university. Or, perhaps it is an academic with an interest in contemporary Asian art. In such situations, a mutually useful arrangement between the foreign visitor and any local counterparts would be for the visitor to be provided a desk and some working space in the local faculty. Perhaps the visiting academic or professional can even undertake to give a certain number of lectures to Sri Lankan students. Relationships established in this way could lead to reciprocal invitations for Sri Lankan academics to attend foreign conferences and workshops and possibly help with Sri Lankan students receiving guidance and support with doing a PhD overseas. The visiting academic or expert is not being paid by the local partners in Sri Lanka and will continue to be on the payroll of their employer in their home country. Again, such visitors need to be reassured that what they are doing is deemed above -board and welcomed. They would not wish to come to Sri Lanka on a standard tourist visa for an engagement of this kind.

Short-term Study

The final strand of the knowledge transfer visa is for Short-term Study. Sri Lanka already has the skilled teachers and education infrastructure to offer undergraduate degrees from several foreign universities. It also runs accredited courses for professional qualifications from organisations that are based in G20 countries, whether it is in Accountancy or Marketing or IT. This capability can be expanded to provide ‘summer schools’ where foreign students arrive for a combination of classroom and field teaching. Local educational institutions can use their business initiative to develop curricula in consultation with foreign universities to meet the coursework credit requirements. If it is simple and easy to obtain a visa to attend such a course in Sri Lanka, this becomes a tempting offer for foreign students. In areas spanning from medicine, tourism, and the biological sciences, Sri Lanka can become an exciting destination for classroom and field work.

Conclusion

The results won’t be seen immediately as it takes years for local counterparts and foreign counterparts to respond and adapt to the benefits of such a visa. But slowly and steadily, we will see benefits accruing to the country. We also need to keep in mind that with anything that involves people, sometimes things don’t work out. A few foreign visitors or the Sri Lankan partners may not fulfil their obligations properly. We should not allow misguided fears of a few bad apples to block the massive potential for Sri Lanka to benefit from a simple but powerful idea that is easy to implement. It would benefit the private sector, state institutions, the universities, and many other sectors to encourage the government to introduce such a visa.

To conclude, if a knowledge transfer visa (KTV) is created which is as simple and quick to obtain as an online tourist visa, it will create a comforting and reassuring environment to encourage foreign visitors who are looking for something more than a short holiday. This will result in hard currency revenues in multiple ways as with ordinary tourism. However, there are potentially significant additional benefits from the bringing in of know-how, skilled people-hours of work, the scope for new types of businesses to develop, and allow Sri Lankan individuals, corporates and institutions to have doors opened for them for international business and academic opportunities. Furthermore, there is a huge Sri Lankan diaspora out there whose children and grandchildren do not have dual nationality but could be encouraged to bring their money and know-how for a longer length of time in Sri Lanka through a knowledge transfer visa.

by Gehan de Silva Wijeyeratne

Continue Reading

Features

Corruption outed; Stirrings in the West

Published

on

Former President Mahinda Rajapaksa and wartime Defence Secretary and former President Gotabaya Rajapaksa paid floral tributes at the war heroes' memorial near Parliament on 20 May.

TV news showed Keheliya Rambukwella with a walking aid and grizzled unshaven, attending courts and leaving in a prison van. His son Ramith is implicated in a corruption case being heard against his father. So it’s a case of like father, like son. We recall this cricketer son was no gentleman. He supposedly broke into an office in his college – Royal, Colombo 7 – to interfere with a marks sheet or whatever.  More notoriously, returning from Australia as a member of a cricket team, he attempted opening a door of the Sri Lankan plane they were in. Doors in planes are extra strong and difficult to open; otherwise if he had succeeded, there would have been a fierce rush of air and he surely would have been dragged out to fall to the ocean or land and sure death. More seriously, havoc would have been created within the plane accompanied by dire danger to passengers.  He is supposed to be unemployed but living in a very expensive, luxurious flat.

Wages of sin

Not many like to see others suffering, particularly mothers of sons. But there was no sorrow, not a twinge, on seeing Keheliya limping and getting into a prison van; so different from the suave man he was. The reason is that one has to pay for sins and transgressions including the procurement of substandard and fake medicinal drugs for government hospitals.

There is no sympathy in Cass’ heart, even for Rambukwella Jr. since he developed within himself his father’s nature. The uppermost thought in her is that retribution is inevitable. Most people think it passes to manifest itself in the sinner’s next and future births. Not always. They suffer in this life too. Here is a solid example to prove this point.

When we women talk about corruption in this beautiful island some note that entire families are corrupt to the core and have collected vast amounts of illicit money, safely stashed away. They seem to be fine; the younger ones grinning from ear to ear, cock sure of themselves. But what about their minds, their nightly dreams? Are they afraid? Do nightmares torment them? Sure the older thieves suffer thus.

“Retribution often means that we eventually do to ourselves what we have done unto others.”

Qatar’s gift to President Trump

Why two remembrances?

Politicians particularly, often prove that Sri Lanka is a land like no other – negatively – Cass adds. The Medamulana Rajapaksa family proved this point on Tuesday 20 May.

The War Heroes Commemorative ceremony, which is Remembrance Day in Sri Lanka, is observed on May 19, when the end of the civil war in 2009 is marked. Those who died in the 28 year war, both armed forces personnel and civilians, are remembered on this day. A solemn ceremony was held in Battaramulla in the grounds of the stately National War Memorial, with the President, and army, navy and air force heads of that time present.  Also the nearest kin of those who gave their lives to save the country, mostly mothers and wives, laid red roses at the foot of the memorial.

Then surprise, surprise, another ceremony was held the following day at the same venue and most prominent were Mahinda and Gotabaya Rajapaksa. The news reporter of the channel Cass watched announced it was a memorial service for war heroes. But the war heroes had already been duly remembered the previous day by the entire nation. Pohottu members would have been present but it was not an SLPP ceremony. What was it then? A public remembrance by private persons since both brothers are out of politics and out of job now.

It is only in Sri Lanka that such a ‘circus’ can be staged. IWere the dead being used to shore waning popularity? Perfectly true, the two brothers did much to bring peace to the country; they went to war against severe objections and obstacles placed by local persons in secondary power, and foreign nations. But that does not justify a separate remembrance.

Maybe they do not know how such ceremonies are conducted in civilized foreign countries. They would not have watched the anniversary of VE Day (May 8) held in London and the respect and homage paid to WWII veterans and the remembrance of those who died in battle. Such an impressive, dignified late morning ceremony with King Charles III, Queen Camilla and other Royals present.  The country and its leaders unified in remembrance and gratitude. No politics whatsoever. In this country politics rears its Medusa head in all public occasions and even very private ones like weddings. Next year we may have two separate celebratory events for National Day – February 4.

Lies and subterfuges

As usual a mega Trump deal is surrounded by lies, denials, drawing the wool over the public eye and subterfuges which last means “deceit used in order to achieve one’s goal.”  The goal was getting a replacement for the presidential airplane which certainly is old – 40 years – and its interior not up to Trump’s garishly lavish standards. The Trump administration first approached Qatar to acquire a redundant Boeing 747 with a price around USD 400m to replace Air Force One. The other story is that Qatar reached out and offered the jet as a gift to Trump. The 747 flew to Florida in March so Trump could inspect it, which he did. A circulated report is that Qatar gifts the 747 to Trump personally to be used as his presidential jet and once he leaves the White House, it is his private possession. This tale one could well believe knowing the sort of a person Trump is and how wily Middle East potentates are: no giving without getting in return.

Cancer stalks American VVIP

Trump’s immediate predecessor has had another trauma.  President Joe Biden announced he had been diagnosed with aggressive prostate cancer, which means his days are numbered. He was the oldest US Prez but much admired and polled to be the 14th best president in the history of the US. His first wife and one-year daughter died in a car accident on December 18, 1972, just four years after marriage. He was a devoted father to his two sons aged 2 and 3 years then. At age 46, in 2015, his elder son Beau died of brain cancer, which Biden maintained was due to his service in the Kosovo war where dangerous gases were used. And now this illness at 82.  A good man given more than his fair share of tribulations.

Cruelty beyond measure

Deaths in the Gaza strip increase by the day as Israel bombards it with air missiles and debars food aid getting in. Children are dying by the hundreds and doctors in large numbers as hospitals are targeted for attack. Netanyahu has pronounced he wants the entire Gaza strip as part of Israel. How can he possibly expect this? However, at the rate the war is proceeding he will soon overcome Hamas and ride into Gaza as a vanquisher and acquirer. No nation seems to be ready to help the Palestinians.

Continue Reading

Features

Trump’s trade tariffs pose hidden threats to Sri Lankan economy

Published

on

President Trump

Colombo, Sri Lanka – While U.S. President Donald Trump’s trade war primarily targeted global economic heavyweights like China and the European Union, its ripple effects are being felt across smaller economies including Sri Lanka. Experts warn that Trump’s protectionist trade policies, particularly the imposition of tariffs and the “America First” doctrine, could significantly impact Sri Lanka’s export-driven growth model.

Global Supply Chains Under Pressure

One of the most immediate threats stems from the disruption of global supply chains. Sri Lanka’s key industries, including textiles, apparel, and electronics components, are heavily reliant on imported raw materials. The U.S. tariffs on Chinese and other foreign goods increased global production costs, leading to delays and price hikes that affect Sri Lankan exporters.

“These disruptions trickle down,” says an economist at the Central Bank of Sri Lanka. “Higher input costs and reduced access to affordable materials can hurt the competitiveness of our exports.”

Falling Global Demand Hits Exports

Trump’s tariffs contributed to broader economic uncertainty, weakening global trade and slowing growth. This downturn has lowered demand for Sri Lankan goods, particularly in Western markets. Apparel exports, which account for over 40% of Sri Lanka’s total exports and rely heavily on U.S. consumers, are especially vulnerable.

“As American retailers reevaluate their sourcing strategies, Sri Lankan garment manufacturers face increased competition from countries like Vietnam and Bangladesh, some of which benefit from more favourable trade agreements,” notes a trade policy analyst in Colombo.

Foreign Investment and Tourism at Risk

The trade tensions also made investors more cautious, leading to a decline in foreign direct investment (FDI) in emerging markets. Sri Lanka, already grappling with high debt levels and political instability, may find it increasingly difficult to attract investment in its export-oriented industries and infrastructure projects.

Tourism a vital source of foreign exchange could also see knock-on effects. Global economic instability tends to reduce travel spending, which directly impacts Sri Lanka’s tourism sector.

Regional Spillovers from China and India

China, a key trading partner and infrastructure investor in Sri Lanka, was one of the main targets of Trump’s tariffs. As Chinese economic growth slows due to reduced U.S. trade, its demand for Sri Lankan commodities and its ability to invest abroad could also decline. Similarly, any reduction in India’s economic engagement due to trade tensions with the U.S. may impact regional cooperation and investment flows.

Out of the Trade Bloc Loop

Perhaps, more concerning in the long term is the global realignment of trade alliances. As the U.S. withdrew from multilateral trade deals and others like the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) gained momentum, Sri Lanka risks being left behind.

A Wake-Up Call for Trade Policy Reform

The indirect but significant threats posed by Trump-era tariffs underline the urgent need for Sri Lanka to diversify its markets, join new trade alliances, and upgrade its export infrastructure.

While the Trump administration, the shift towards economic nationalism and trade protectionism continues to influence global policy. Sri Lanka, as a small and open economy, must adapt quickly or risk falling further behind.

By M. I. D Perera,
Economist

Continue Reading

Trending