Features
The Milk Powder Formula – making of Anchor
by Sumi Moonesinghe narrated to Savitri Rodrigo
Now began the process of picking up the pieces (after the July 1983 riots). In 1984, Killi transferred the staff from Berec, the battery company, to Jones Overseas. We had already drawn up plans to begin the import and distribution of Anchor Milk Powder from New Zealand. Killi recruited an excellent marketing director from India, Jojo Kanjirath, who was a highly-experienced marketer and advertising whiz-kid from J Walter Thompson, and I recruited Metha Abeygunewardene, a well-trained sales manager from Unilever, to be my Sales Director.
I knew my team was powerful and had sufficient strength to compete against Nespray, which was produced by Nestle, the world’s largest Swiss-based company with very deep pockets, I might add. It was a well-established brand, having been in Sri Lanka for over 100 years and thus gaining not just brand loyalty but becoming a generic household name for powdered milk.
This entire idea was a very bold move. We were taking on the world’s largest dairy company and even the New Zealand Dairy Board heads were sceptical of our plans. I still recall the breakfast meeting I had with the Regional Managing Director of NZDB’s subsidiary in Singapore, Alistair Betts, and Global Marketing Director of NZDB in Wellington. “How are you going to take on Nestle?” they asked me and I could hear doubt in their voices. Never in any of the NZDB markets, had anyone been audacious enough to take Nestle head-on.
Then came the next question. “Where do you plan on packing the milk powder?” I had my answer at the ready, having anticipated their questions. I talked at length and finally convinced them that we could and we would take on Nespray. “Here’s my plan,” I said and laid it out on the table. By the end of that meeting, I had their fullest support. That breakfast meeting was the start of the Anchor journey in Sri Lanka and Alistair Betts betting on Sri Lanka.
When I met Alistair initially, I was struck not just by his enthusiasm and personality, but by his work ethic, talent and dynamism. He was always attuned to what was going on and willing to change with the times and it was undoubtedly these traits that saw him spearhead the expansion of NZDB’s markets in South-East Asia. I was saddened by his death in 2005 and it was fitting that he was honoured posthumously in the Queen’s New Year honours list, becoming a companion of the Queen’s Service Order.
In an appreciation written by the Chairman of NZDB Sir Dryden Spring when Alistair passed away, Sir Dryden called him a legend and the face of NZDB, and “the first to crack those (South-East Asian) markets and get New Zealand dairy industry brands into Sri Lanka, Malaysia and Taiwan. Many of those brands are still the strongest we have today.”
I negotiated with the Bank of Ceylon for a line of credit to meet our working capital requirements. We then set up a packing plant in an abandoned garment factory in Ratmalana, on the outskirts of Colombo city, owned by Killi’s dear friend Nari Sabnani. While the hardware was being established aligned with our plan, our biggest challenge emerged with the sales agents. Nespray remained No 1 in their minds, and persuading them to place even just 10 packs of Anchor on the shelves was an uphill task. They were fearful of losing the Nespray distribution rights, which was technically their bread and butter. They didn’t want to put their businesses on the line for this newcomer that no one had heard of.
But we had a trump card —our strong marketing team, picked from the best among the best. We rounded up that expert marketing knowledge and began to pull rabbits out of the hat. Our marketing strategies proved to be the winner. Our brand hyped the concept of Anchor Milk Powder being from New Zealand — the fact that the milk was imported was our first scoring point because the Sri Lankan mindset of ‘imported goods being superior’ was yet a strong thread.
Our packaging and marketing collateral evoked the clean pure air of New Zealand with cows grazing on green grass on pristine plains, adding the innuendo that the cows did not have artificial feed but only consumed natural grass. This subtle canvas was our second scoring point. Our third was reiterating that mothers trusted Anchor because Anchor was pure wholesome milk powder.
And we had more! The mother we espoused needed to have a face. We picked Rosy Senanayake as the face of Anchor. She was a young mother who, before getting married, had represented Sri Lanka at beauty pageants. She had just the right blend of beauty and that young motherly disposition which fitted in well with the pristinely pure marketing strategy we were portraying. In hindsight, Rosy was a great pick as she continued to be associated with Anchor throughout her career, even after she won the Mrs. World title.
Our strategies worked and our sales began growing exponentially. In just 12 years, my very dedicated team, whom I liked to call my Anchor A Team (named after the famous TV series, the A-Team) and were truly like my family, had gained more than 70% market share. Beating the world’s No. 1 food corporation into second place was one of the biggest highlights of my business career.
I could never have done all this without Maha and Killi, and of course Susil, who was always there with a strong shoulder to cry on after major arguments with principals and suppliers. While Killi and Maha were always positioned together as the brothers running the Maharaja Group, they were diametrically opposing personalities. I knew Killi from our days in Singapore when he would visit us, but my first meeting with Maha was in their office at Bankshall Street, when I had been appointed Managing Director of the newly incorporated Jones Overseas Limited.
Maha, the older of the two, possessed a calm and collected personality, while Killi was very visionary, daring, outgoing and equipped with the courage to be different. But they got on extremely well, sharing company responsibilities with Killi’s personality fitting in well to travel the world to rally business for the company and Maha, managing the finances and controlling expenses.
Now that we had beaten Nespray and we were well entrenched in the milk powder market, it was time for another challenge. I wanted to tackle the milk tea segment, which was dominated by Lakspray, a cheaper product with only 26% fat. NZDB refused to supply us an equivalent to Lakspray as their thought process was that it would affect Anchor’s positioning. But on the ground, we were very aware of the market sentiment and so I arranged a meeting with the Directors of the UK Milk Marketing Board at the Savoy in London. My friend Baba Vairasinghe, who was the local agent for the UK Milk Marketing Board, arranged the meeting and accompanied me to it.
Some tough negotiations later, I left London with a signed contract for the supply of milk powder and payment arranged via a Letter of Credit. Not long after, two container loads of milk powder from the UK Milk Marketing Board arrived in Colombo – one went to Lanka Milk Foods, the producers of Lakspray, and the other to Jones Overseas for our new brand. This was a tough call for me and in fact, put to test the relationship and trust that had been built with NZDB. I knew Anchor was strong and the new brand didn’t pose any competition to Anchor. Eventually I was proved right and that little smudge in our relationship was obliterated.
My very able marketing team, headed by Shehara de Silva who created the brand name Ratthi, which in the Sinhala language means calf, was working overtime literally to make sure we continued our winning streak. We went into the market with a real clarion call and Ratthi didn’t disappoint. The calf was on a winning streak.
But our victories were not without some pain. It goes without saying that the world of business is one of ups and downs, but the challenge we faced in 1986 felt like an abyss and I was falling right into it. It was alleged that I was responsible for a consignment of contaminated weevil-infested full cream milk powder, which had been shipped to a semi-government entity under the Ministry of Trade, from the New Zealand Dairy Board.
The story made headlines in major newspapers with my name splashed across the front pages, even though I was only an indenting agent. I was devastated as I had nothing to do with it. This entity then sent a Letter of Demand for USD 1 million to NZDB and blacklisted the world’s largest exporter of dairy products, from supplying to Sri Lanka. The entire episode was impacting my company’s business very badly.
With the situation in dire straits, NZDB sent a technical team to Sri Lanka for an investigation. It was finally confirmed that this consignment of milk powder had been unloaded into a go-down which previously held rice. The importer had not fumigated the go-down prior to the milk powder being unloaded into it. The technical team then spent months sorting out our bags of milk powder. Even with these findings, the ban remained and our business reputation was suffering badly.
Finally, I couldn’t take the stress anymore and decided to meet my friend Lalith Athulathmudali who was the Minister of Trade. The best time to meet Lalith was when he was at breakfast because we could sit and chat undisturbed. I dealt a lot with him as Minister of Trade, due to the nature of my business. I told him what had happened, the findings of the technical team, and asked him to intervene in lifting the blacklist as the fault was not ours. It had already been proven that we had nothing to do with the unclean go-down.
“I can’t deal with this man,” I told Lalith exasperated, referring to the head of the semi-government entity, and not without a touch of anger. Lalith took one look at me, smiled and said, “Sumi, there’s no man you can’t deal with!” but assured me that he will sort things out, which he did. Looking back, this has been a pattern in my life. Just when I seem to be thrown into challenges that have taken me to the end of my tether sometimes, I seem to find the right person to pull me away from the edge of that precipice.
When it came to the intricacies of business, I was fundamentally self-taught. I had been thrown into the deep end and learned the ropes of commerce and industry on the run, but inherent wisdom told me that some professional value addition in business management would be helpful if I was to conquer the heights I had set for the company. In 1988, I had taken a short course in portfolio management and financial analysis in Geneva. This was a very exciting trip for me as Susil and I had travelled many times to Switzerland and revisiting some of the sites he and I went to, like Mont Blanc and the Matterhorn, gave me much joy. My fellow students and I would study during the week, and on weekends, put our studies aside and take a break doing these tourist runs.
In my quest for upskilling my business acumen, in 1992, I attended a course for chief executives at Wharton Business School at the University of Pennsylvania. This was a great opportunity for me to benchmark my knowledge and business skills with the other course attendees who turned out to be a Who’s Who of global business. I remember the CEOs of ASEA Brown Boveri (ABB) – a Swedish-Swiss MNC, Hewlett-Packard, Procter & Gamble, and ATT being among the participants. Besides learning from an honour roll of erudite economists and financial gurus from the USA, one of the biggest advantages I gained at Wharton was being taught speed reading.
With all the success our milk powder business was having, it was time for us to expand to a new office and factory complex. We obtained a loan of Rs. 600 million from BOC (for the construction of a state-of-the-art milk packing plant, liquid milk processing plant and an office complex. The entire complex was in Biyagama and was designed by Architect Navin Gooneratne. The complex was constructed by Mitsui and Sanken Lanka, which was headed by Ranjith Gunathilake. It housed some of the best dairy processing equipment imported from Holland, Denmark and Germany.
I was completely involved in the project from its very genesis. Both Navin and Ranjith were used to me poring over the designs and asking hundreds of questions, so I could visualise what the end-complex would be like. I knew the measurement of every wall, every angle and every area. I would make frequent visits to the site to keep tabs on progress except when I went on a six-week holiday to Europe with Susil, Anarkali and Aushi. When I returned, my first stop was in Biyagama.
As I drove in I was horrified. There were 16 giant concrete columns running the entire height of the facade of this five storey tall building. I knew this was not a design feature I had approved and immediately called Navin. “What are these monstrous columns doing in the front of my building?” I asked. “I want to make this a green building,” explained Navin patiently. “Those concrete columns are pergolas where plants can be grown. No one will see the concrete building as a result, only green, which will be very pleasing.”
However, I was not pleased. I turned to Ranjith who was privy to this conversation and asked him to remove the 16 columns immediately. “I don’t want to see even a trace of it. You’ll have to saw it off from ground level,” I told him. Ranjith was appalled and Navin was upset. Both tried to talk me out of it but to no avail. I had made up my mind.
The 16 columns disappeared, I was happy and Navin named himself the draftsman of the complex and me, the architect. The rest of the construction period was uneventful and went according to plan.
As Managing Director of Jones Overseas, I had the task of making a speech at the inauguration of the complex. In my address, I said, “I am 51 years old and have worked in this company now for over two decades. The time has come for me to hand over the reins of Managing Director to a younger person.”
No one expected this announcement but in my heart, I knew it was time. We were doing exceptionally well and judging by Sri Lanka’s corporate results, we were only second to Ceylon Tobacco Company in turnover. It’s always good to quit, while at the top!
After the ceremony, while we were returning from Biyagama, the Managing Director of NZDB Warren Larsen who listened to my speech at the inauguration asked me, “Sumi, are you willing to sell the business?” I didn’t think twice and quipped, “If the price is right, we will, but the final decision lies with Killi.”
Warren was determined to pursue the conversation. I had apprised Killi of the inquiry and when Killi hosted the NZDB team to lunch at his home, the subject of the sale of the company came up for discussion. Killi, who was always astute when it came to business deals, gave Warren the sale price based on future earnings. Then began a spate of lengthy negotiations with the finance director of the Maharaja Group entrusted with the task of number crunching. An agreement was reached.
The sale was completed in September 1996 and the same year in December, I resigned as Managing Director. And that was how we sold Jones Overseas to the New Zealand Dairy Board. With the sale of the company, I was considerably ‘well off’ as they say in Sri Lanka, having made sufficient money to enjoy life without running the rat race I had been used to for so long. I looked inwards and said to myself, “It is time to retire, spend time with our girls and travel the world.” And that is exactly what I did.
But I did keep abreast of news of my milk powder baby and was very happy when I learned eventually that Ratthi had got into the No. 1 position in the milk powder market, beating even Anchor, although a little part of me was sad that Anchor had lost that premier spot which we had built quite painstakingly.
However, while everything was looking good at this moment, during the time of the construction of new factory and office complex, I suffered a setback in my health.
I had become very stressed at work with this construction, travelling to Biyagama and back nearly every day, while ensuring our daily operations were on track, and helping Susil with his political affairs as he was now Chief Minister of the Western Province. The pressure was taking its toll on me.
I had a nagging pain in my spine which became quite debilitating. I consulted Prof. Henry Nanayakkara who referred me to Dr. Wijenaike. I was immediately hospitalised at Nawaloka Hospital and an ECG plus a plethora of other tests done.
Every test result came back negative but the debilitating pain persisted. I then flew to London and got myself admitted to Cromwell Hospital. A battery of tests later, every result was negative once again. There was nothing physically wrong with me. However, the doctor at Cromwell Hospital went a step further and referred me to a psychiatrist. A few sessions later, I was told that the pain was induced by stress. I was on the verge of a breakdown.
Killi was continually in touch with me and when I told him the diagnosis, he read the gravity of the situation and checked me into the Givenchy Spa at Trianon Palace Hotel in Versailles. I was placed on a special diet, received daily treatments with injections to my neck, had an exercise regime, revelled in massages and cycled in the evenings on the luscious 250-acre gardens. It was a total ten days of complete R&R and absolute bliss. One of the rules though was having no contact with the outside world, not even with family. The treatment, which I found out later that Killi had paid for in its entirety, worked.
Through these ten days, Susil was tasked with looking after Anarkali and Aushi. They went off on holiday to Yala with our lifelong friend Navin Gooneratne and his family. Ten days later, I returned to Sri Lanka – with no back pain – refreshed, rejuvenated and having regained my strength. I was ready to complete one of the biggest projects I had taken on – the construction of the new factory and office complex.
Just like everything in my life, I needed to be in control, even when it came to my illness. Through my bouts in hospitals, tests and spa treatment, I would absorb the details of the medical information by listening to doctors, scouring the reports and conducting my own extensive research. Susil himself had various medical issues – from cardiac, to cataract to kidney stones to septicaemia and everything else in-between, and I learned early on that I needed to be as well informed as the medical professionals, to be able to ask the relevant questions. Now I had added to my medical information arsenal and was becoming quite adept at dishing out medical advice, acquiring the title of having an honorary MBBS!
While this was generally a subject that prompted some mirth at dinner conversations, the arsenal I had collated did come in handy. When Anarkali developed a spine ache similar to mine while she was at Merrill Lynch, I knew exactly what to do. Her job was stressful, had long hours and gave her no free time. I organised a treatment regimen for her, similar to what I had at the Givenchy Spa, but at her apartment at Kensington Green, which was a gated community and close to Cromwell Hospital. Ten days later, Anarkali’s back pain disappeared and she was free from pain.
(Extracted from Sumi Moonesinghe’s Memoirs)
Features
The NPP Government is more than a JVP offspring:
It is also different from all past governments as it faces new and different challenges
No one knows whether the already broken ceasefire between the US and Iran, with Israel as a reluctant adjunct, will last the full 10 days, or what will come thereafter. The world’s economic woes are not over and the markets are yo-yoing in response to Trump’s twitches and Iran’s gate keeping at the Strait of Hormuz. The gloomy expert foretelling is that full economic normalcy will not return until the year is over even if the war were to end with the ceasefire. That means continuing challenges for Sri Lanka and more of the tough learning in the art of governing for the NPP.
The NPP government has been doing what most governments in Asia have been doing to cope with the current global crisis, which is also an Asian crisis insofar as oil supplies and other supply chains are concerned. What the government can and must do additionally is to be totally candid with the people and keep them informed of everything that it is doing – from monitoring import prices to the timely arranging of supplies, all the details of tender, the tracking of arrivals, and keeping the distribution flow through the market without bottlenecks. That way the government can eliminate upstream tender rackets and downstream hoarding swindles. People do not expect miracles from their government, only honest, sincere and serious effort in difficult circumstances. Backed up by clear communication and constant public engagement.
But nothing is going to stop the flow of criticisms against the NPP government. That is a fact of Sri Lankan politics. Even though the opposition forces are weak and have little traction and even less credibility, there has not been any drought in the criticisms levelled against the still fledgling government. These criticisms can be categorized as ideological, institutional and oppositional criticisms, with each category having its own constituency and/or commentators. The three categories invariably overlap and there are instances of criticisms that excite only the pundits but have no political resonance.
April 5 anniversary nostalgia
There is also a new line of criticism that might be inspired by the April 5 anniversary nostalgia for the 1971 JVP insurrection. This new line traces the NPP government to the distant roots of the JVP – its April 1965 founding “in a working-class home in Akmeemana, Galle” by a 22-year old Rohana Wijeweera and seven others; the short lived 1971 insurrection that was easily defeated; and the much longer and more devastating second (1987 to 1989) insurrection that led to the elimination of the JVP’s frontline leaders including Wijeweera, and brought about a change in the JVP’s political direction with commitment to parliamentary democracy. So far, so good, as history goes.
But where the nostalgic narrative starts to bend is in attempting a straight line connection from the 1965 Akmeemana origins of the JVP to the national electoral victories of the NPP in 2024. And the bend gets broken in trying to bridge the gap between the “founding anti-imperialist economics” of the JVP and the practical imperatives of the NPP government in “governing a debt-laden small open economy.” Yet this line of criticism differs from the other lines of criticism that I have alluded to, but more so for its moral purpose than for its analytical clarity. The search for clarity could begin with question – why is the NPP government more than a JVP offspring? The answer is not so simple, but it is also not too complicated.
For starters, the JVP was a political response to the national and global conditions of the 1960s and 1970s, piggybacking socialism on the bandwagon of ethno-nationalism in a bi-polar world that was ideologically split between status quo capitalism and the alternative of socialism. The NPP government, on the other hand, is not only a response to, but is also a product of the conditions of the 2010s and 2020s. The twain cannot be more different. Nothing is the same between then and now, locally and globally.
A pragmatic way to look at the differences between the origins of the JVP and the circumstances of the NPP government is to look at the very range of criticisms that are levelled against the NPP government. What I categorize as ideological criticisms include criticisms of the government’s pro-IMF and allegedly neo-liberal economic policies, as well as the government’s foreign policy stances – on Israel, on the current US-Israel war against Iran, the geopolitics of the Indian Ocean, and the apparent closeness to the Modi government in India. These criticisms emanate from the non-JVP left and Sinhala Buddhist nationalists.
Strands of nationalism
To digress briefly, there are several strands in the overall bundle of Sri Lankan nationalism. There is the liberal inclusive strand, the left-progressive strand, the exclusive Sinhala Buddhist Nationalist (SBN) strand, and the defensive strands of minority nationalisms. Given Sri Lanka’s historical political formations and alliances, much overlapping goes on between the different strands. The overlapping gets selective on an issue by issue basis, which in itself is not unwelcome insofar as it promotes plurality in place of exclusivity.
Historically as well, and certainly after 1956, the SBN strand has been the dominant strand of nationalism in Sri Lanka and has had the most influential say in every government until now. Past versions of the JVP frequently straddled the dominant SBN space. Currently, however, the dominant SBN strand is in one of its more dormant phases and the NPP government could be a reason for the current dormancy. This is an obvious difference between the old JVP and the new NPP.
A second set of criticisms, or institutional criticisms, emanate from political liberals and human rights activists and these are about the NPP government’s actions or non-actions in regard to constitutional changes, the future of the elected executive presidency, the status of provincial devolution and the timing of provincial council elections, progress on human rights issues, the resolution of unfinished postwar businesses including the amnesia over mass graves. These criticisms and the issues they represent are also in varying ways the primary concerns of the island’s Tamils, Muslims and the Malaiyaka (planntationn) Tamils. As with the overlapping between the left and the non-minority nationalists, there is also overlapping between the liberal activists and minority representatives.
A third category includes what might be called oppositional criticisms and they counterpose the JVP’s past against the NPP’s present, call into question the JVP’s commitment to multi-party democracy and raise alarms about a creeping constitutional dictatorship. This category also includes criticisms of the NPP government’s lack of governmental experience and competence; alleged instances of abuse of power, mismanagement and even corruption; alleged harassment of past politicians; and the failure to find the alleged mastermind behind the 2019 Easter bombings. At a policy and implementational level, there have been criticisms of the government’s educational reforms and electricity reforms, the responses to cyclone Ditwah, and the current global oil and economic crises. The purveyors of oppositional criticisms are drawn from the general political class which includes political parties, current and past parliamentarians, as well as media pundits.
Criticisms as expectations
What is common to all three categories of criticisms is that they collectively represent what were understood to be promises by the NPP before the elections, and have become expectations of the NPP government after the elections. It is the range and nature of these criticisms and the corresponding expectations that make the NPP government a lot more than a mere JVP offspring, and significantly differentiate it from every previous government.
The deliverables that are expected of the NPP government were never a part of the vocabulary of the original JVP platform and programs. The very mode of parliamentary politics was ideologically anathema to the JVP of Akmeemana. And there was no mention of or concern for minority rights, or constitutional reforms. On foreign policy, it was all India phobia without Anglo mania – a halfway variation of Sri Lanka’s mainstream foreign policy of Anglo mania and India phobia. For a party of the rural proletariat, the JVP was virulently opposed to the plantation proletariat. The JVP’s version of anti-imperialist economics would hardly have excited the Sri Lankan electorate at any time, and certainly not at the present time.
At the same time, the NPP government is also the only government that has genealogical antecedents to a political movement or organization like the JVP. That in itself makes the NPP government unique among Sri Lanka’s other governments. The formation of the NPP is the culmination of the evolution of the JVP that began after the second insurrection with the shedding of political violence, acceptance of political plurality and commitment to electoral democracy.
But the evolution was not entirely a process of internal transformation. It was also a response to a rapidly and radically changing circumstances both within Sri Lanka and beyond. This evolution has not been a rejection of the founding socialist purposes of the JVP in 1968, but their adaptation in the endless political search, under constantly changing conditions, for a non-violent, socialist and democratic framework that would facilitate the full development of the human potential of all Sri Lankans.
The burden of expectations is unmistakable, but what is also remarkable is their comprehensiveness and the NPP’s formal commitment to all of them at the same time. No previous government shouldered such an extensive burden or showed such a willing commitment to each and every one of the expectations. In the brewing global economic crisis, the criticisms, expectations and the priorities of the government will invariably be focussed on keeping the economy alive and alleviating the day-to-day difficulties of millions of Sri Lankan families. While what the NPP government can and must do may not differ much from what other Asian governments – from Pakistan to Vietnam – are doing, it could and should do better than what any and all past Sri Lankan governments did when facing economic challenges.
by Rajan Philips
Features
A Fragile Ceasefire: Pakistan’s Glory and Israel’s Sabotage
After threatening to annihilate one of the planet’s oldest civilizations, TACO* Trump chickened out again by grasping the ceasefire lifeline that Pakistan had assiduously prepared. Trump needed the ceasefire badly to stem the mounting opposition to the war in America. Israeli Prime Minister Netanyahu wanted the war to continue because he needed it badly for his political survival. So, he contrived a fiction and convinced Trump that Lebanon is not included in the ceasefire. Trump as usual may not have noticed that Pakistan’s Prime Minister Shehbaz Shariff had clearly indicated Lebanon’s inclusion in his announcement of the ceasefire at 7:50 PM, Tuesday, on X. Ten minutes before Donald Trump’s fake deadline.
True to form on Wednesday, Israel unleashed the heaviest assault by far on Lebanon, reportedly killing over 300 people, the highest single-day death toll in the current war. Iran responded by re-closing the Strait of Hormuz and questioning the need for talks in Islamabad over the weekend. There were other incidents as well, with an oil refinery attacked in Iran, and Iranian drones and missiles slamming oil and gas infrastructure in UAE, Saudi Arabia, Bahrain and Qatar.
The US tried to insist that Lebanon is not part of the ceasefire, with the argumentative US Vice President JD Vance, who was in Budapest, Hungary, campaigning for Viktor Orban, calling the whole thing a matter of “bad faith negotiation” as well as “legitimate misunderstanding” on the part of Iran, and warning Iran that “it would be dumb to jeopardise its ceasefire with Washington over Israel’s attacks in Lebanon.”
But as the attack in Lebanon drew international condemnation – from Pope Leo to UN Secretary General António Guterres, and several world leaders, and amidst fears of Lebanon becoming another Gaza with 1,500 people including 130 children killed and more than a million people displaced, Washington got Israel to stop its “lawn mowing” in southern Lebanon.
Prime Minister Benjamin Netanyahu agreed to “open direct negotiations with Lebanon as soon as possible,”. Lebanese President Joeseph Aoun has also called for “a ceasefire between Israel and Lebanon, followed by direct negotiations between them.” Israel’s involvement in Lebanon remains a wild card that threatens the ceasefire and could scuttle the talks between the US and Iran scheduled for Saturday in Islamabad.
Losers and Winners
After the ceasefire, both the Trump Administration and Iran have claimed total victories while the Israeli government wants the war to continue. The truth is that after more than a month into nonstop bombing of Iran, America and Israel have won nothing. Only Iran has won something it did not have when Trump and Netanyahu started their war. Iran now has not only a say over but control of the Strait of Hormuz. The ceasefire acknowledges this. Both Trump and Netanyahu are under fire in their respective countries and have no allies in the world except one another.
The real diplomatic winner is Pakistan. Salman Rushdie’s palimpsest-country has emerged as a key player in global politics and an influential mediator in a volatile region. Pakistan’s Prime Minister Shehbaz Sharif and Chief of Defence Field Marshal Asim Munir have both been praised by President Trump and credited for achieving the current ceasefire. The Iranian regime has also been effusive in its praise of Pakistan’s efforts.
It is Pakistan that persisted with the effort after initial attempts at backdoor diplomacy by Egypt, Pakistan and Türkiye started floundering. Sharing a 900 km border and deep cultural history with Iran, and having a skirmish of its own on the eastern front with Afghanistan, Pakistan has all the reason to contain and potentially resolve the current conflict in Iran. Although a majority Sunni Muslim country, Pakistan is home to the second largest Shia Muslim population after Iran, and is the easterly terminus of the Shia Arc that stretches from Lebanon. The country also has a mutual defense pact with Saudi Arabia that includes Pakistan’s nuclear cover for the Kingdom. An open conflict between Iran and Saudi Arabia would have put Pakistan in a dangerously awkward position.
It is now known and Trump has acknowledged that China had a hand in helping Iran get to the diplomatic table. Pakistan used its connections well to get Chinese diplomatic reinforcement. Pakistani Foreign Minister Ishaq Dar flew to Beijing to brief his Chinese counterpart and secured China’s public support for the diplomatic efforts. The visit produced a Five-Point Plan that became a sequel to America’s 15-point proposal and the eventual ten-point offer by Iran.
There is no consensus between parties as to which points are where and who is agreeing to what. The chaos is par for the course the way Donald Trumps conducts global affairs. So, all kudos to Pakistan for quietly persisting with old school toing and froing and producing a semblance of an agreement on a tweet without a parchment.
It is also noteworthy that Israel has been excluded from all the diplomatic efforts so far. And it is remarkable, but should not be surprising, the way Trump has sidelined Isreal from the talks. Prime Minister Netanyahu has been enjoying overwhelming support of Israelis for starting the war of his life against Iran and getting the US to spearhead it. But now the country is getting confused and is exposed to Iranian missiles and drones far more than ever before. The Israeli opposition is finally coming alive realizing what little has Netanyahu’s wars have achieved and at what cost. Israel has alienated a majority of Americans and has no ally anywhere else.
It will be a busy Saturday in Islamabad, where the US and Iranian delegations are set to meet. Iran would seem to have insisted and secured the assurance that the US delegation will be led by Vice President Vance, while including Trump’s personal diplomats – Steve Witkoff and son-in-law Jared Kushner. Iran has not announced its team but it is expected to be led, for protocol parity, by Iran’s Speaker Mohammad Bagher Ghalibaf, and will likely include its suave Foreign Minister Abbas Araghchi. Vice President Vance’s attendance will be the most senior US engagement with Iran since Secretary of State John Kerry negotiated the 2015 nuclear deal under President Obama.
The physical arrangements for the talks are still not public although Islamabad has been turned into a security fortress given the stakes and risks involved. The talks are expected to be ‘indirect’, with the two delegations in separate rooms and Pakistani officials shuttling between them. The status of Iran’s enriched uranium and the reopening of the Strait of Hormuz will be the major points of contention. After Netanyahu’s overreach on Wednesday, Lebanon is also on the short list
The 2015 nuclear deal (the Joint Comprehensive Action Plan) took months of negotiations and involved multiple parties besides the US and Iran, including China, France, Germany, UK, Russia and the EU. That served the cause of regional and world peace well until Trump tore up the deal to spite Obama. It would be too much to expect anything similar after a weekend encounter in Islamabad. But if the talks could lead to at least a permanent ceasefire and the return to diplomacy that would be a huge achievement.
(*As of 2025–2026, Donald Trump is nicknamed “TACO Trump” by Wall Street traders and investors as an acronym for “”. This term highlights a perceived pattern of him making strong tariff threats that cause market panic, only to later retreat or weaken them, causing a rebound.)
by Rajan Philips
Features
CIA’s hidden weapon in Iran
We are passing through the ten-day interregnum called a ceasefire over the War on Iran. The world may breathe briefly, but this pause is not reassurance—it is a deliberate interlude, a vacuum in which every actor positions for the next escalation. Iran is far from secure. Behind the veneer of calm, external powers and local forces are preparing, arming, and coordinating. The United States is unlikely to deploy conventional ground troops; the next moves will be executed through proxies whose behaviour will defy expectation. These insurgents are shaped, guided, and amplified by intelligence and technology, capable of moving silently, striking precisely, and vanishing before retaliation. The ceasefire is not peace—it is the prelude to disruption.
The Kurds, historically instruments of Tehran against Baghdad, are now vectors for the next insurgency inside Iran. This movement is neither organic nor local. It is externally orchestrated, with the CIA as the principal architect. History provides the blueprint: under Mohammad-Reza Shah Pahlavi, Kurdish uprisings were manipulated, never supported out of sympathy. They were instruments of leverage against Iraq, a way to weaken a rival while projecting influence beyond Iran’s borders. Colonel Isa Pejman, Iranian military intelligence officer who played a role in Kurdish affairs, recalled proposing support for a military insurgency in Iraq, only for the Shah to respond coldly: “[Mustafa] Barzani killed my Army soldiers… please forget it. The zeitgeist and regional context have been completely transformed.” The Kurds were pawns, but pawns with strategic weight. Pejman later noted: “When the Shah wrote on the back of the letter ‘Accepted’ to General Pakravan, I felt I was the true leader of the Kurdish movement.” The seeds planted then are now being activated under new, technologically empowered auspices.
Iran’s geographic vulnerabilities make this possible. The Shah understood the trap: a vast territory with porous borders, squeezed by Soviet pressure from the north and radical Arab states from the west. “We are in a really terrible situation since Moscow’s twin pincers coming down through Kabul and Baghdad surround us,” he warned Asadollah Alam. From Soviet support for the Mahabad Republic to Barzani’s dream of a unified Kurdistan, Tehran knew an autonomous Kurdish bloc could destabilize both Iraq and Iran. “Since the formation of the Soviet-backed Mahabad Republic, the Shah had been considerably worried about the Kurdish threat,” a US assessment concluded.
Today, the Kurds’ significance is operational, not symbolic. The CIA’s recent rescue of a downed F-15 airman using Ghost Murmur, a quantum magnetometry system, demonstrated the reach of technology in intelligence operations. The airman survived two days on Iranian soil before extraction. This was not a simple rescue; it was proof that highly mobile, technologically augmented operations can penetrate Iranian territory with surgical precision. The same logic applies to insurgency preparation: when individuals can be tracked through electromagnetic signatures, AI-enhanced surveillance, and drones, proxy forces can be armed, guided, and coordinated with unprecedented efficiency. The Kurds are no longer pawns—they are a living network capable of fracturing Iranian cohesion while providing deniability to foreign powers.
Iran’s engagement with Iraqi Kurds was always containment, not empowerment. The Shah’s goal was never Kurdish independence. “We do not approve an independent [Iraqi] Kurdistan,” he stated explicitly. Yet their utility as instruments of regional strategy was undeniable. The CIA’s revival of these networks continues a long-standing pattern: insurgent groups integrated into the wider calculus of international power. Israel, Iran, and the Kurds formed a triangular strategic relationship that terrified Baghdad. “For Baghdad, an Iranian-Israeli-Kurdish triangular alliance was an existential threat,” contemporary reports noted. This is the template for modern manipulation: a networked insurgency, externally supported, capable of destabilizing regimes from within while giving foreign powers plausible deniability.
Iran today faces fragility. Years of sanctions, repression, and targeted strikes have weakened educational and scientific hubs; Sharif University in Tehran, one of the country’s leading scientific centres, was bombed. Leaders, scholars, and innovators have been eliminated. Military readiness is compromised. Generations-long setbacks leave Iran exposed. Against this backdrop, a Kurdish insurgency armed with drones, AI-supported surveillance, and precision munitions could do more than disrupt—it could fracture the state internally. The current ten-day ceasefire is a mirage; the next wave of revolt is already being orchestrated.
CIA involvement is deliberate. Operations are coordinated with allied intelligence agencies, leveraging Kurdish grievances, mobility, and ethnolinguistic networks. The Kurds’ spread across Iran, Iraq, Turkey, and Syria provides operational depth—allowing insurgents to strike, vanish, and regroup with impunity. Barzani understood leverage decades ago: “We could be useful to the United States… Look at our strategic location on the flank of any possible Soviet advance into the Middle East.” Today, the calculation is inverted: Kurds are no longer instruments against Baghdad; they are potential disruptors inside Tehran itself.
Technology is central. Ghost Murmur’s ability to detect a single heartbeat remotely exemplifies how intelligence can underpin insurgent networks. Drones, satellite communications, AI predictive modeling, and battlefield sensors create an infrastructure that can transform a dispersed Kurdish insurgency into a high-precision operation. Iran can no longer rely on fortifications or loyalty alone; the external environment has been recalibrated by technology.
History provides the roadmap. The Shah’s betrayal of Barzani after the 1975 Algiers Agreement demonstrated that external actors can manipulate both Iranian ambitions and Kurdish loyalties. “The Shah sold out the Kurds,” Yitzhak Rabin told Kissinger. “We could not station our troops there and keep fighting forever,” the Shah explained to Alam. The Kurds are a pivot, not a cause. Networks once acting under Tehran’s influence are now being repurposed against it.
The insurgency exploits societal fissures. Kurdish discontent in Iran, suppressed for decades, provides fertile ground. Historical betrayal fuels modern narratives: “Barzani claimed that ‘Isa Pejman sold us out to the Shah and the Shah sold us out to the US.’” Intelligence agencies weaponize these grievances, pairing them with training, technological augmentation, and covert support.
Geopolitically, the stakes are immense. The Shah’s defensive-offensive doctrine projected Iranian influence outward to neutralize threats. Today, the logic is inverted: the same networks used to contain Iraq are being readied to contain Iran. A technologically augmented Kurdish insurgency, covertly backed, could achieve in months what decades of sanctions, diplomacy, or repression have failed to accomplish.
The operation will be asymmetric, high-tech, and dispersed. UAVs, quantum-enhanced surveillance, encrypted communications, and AI-directed logistics will dominate. Conventional Iranian forces are vulnerable to this type of warfare. As Pejman reflected decades ago, “Our Army was fighting there, rather than the Kurds who were harshly defeated… How could we keep such a place?” Today, the challenge is magnified by intelligence superiority on the insurgents’ side.
This is not a temporary flare-up. The CIA and its allies are constructing a generational network of influence. Experience from Iraq, Syria, and Lebanon proves these networks endure once operationalised. The Shah recognized this: “Iran’s non-state foreign policy under the Shah’s reign left a lasting legacy for the post-Revolution era.” Today, those instruments are being remade as vectors of foreign influence inside Iran.
The future is stark. Iran faces not simply external threats, but a carefully engineered insurgency exploiting historical grievances, technological superiority, and precise intelligence. The Kurds are central. History, technology, and geopolitical calculation converge to create a transformative threat. Tehran’s miscalculations, betrayals, and suppressed grievances now form the lattice for this insurgency. The Kurds are positioned not just as an ethnic minority, but as a vector of international strategy—Tehran may be powerless to stop it.
Iran’s containment strategies have been weaponized, fused with technology, and inverted against it. The ghosts of Barzani’s Peshmerga, the shadows of Algiers, and the Shah’s strategic vision now converge with Ghost Murmur, drones, and AI. Tehran faces a paradox: the instruments it once controlled are now calibrated to undermine its authority. The next Kurdish revolt will not only fight in the mountains but in the electromagnetic shadows where intelligence operates, consequences are lethal, and visibility is scarce.
by Nilantha Ilangamuwa
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