Features
The need for an increase in the price of milk powder
By Sanjeewa Jayaweera
The steep price increase in essentials like milk powder and cooking gas has caused much debate and anger amongst consumers. The opposition politicians are milking the angst among the public to score some points. There is no doubt that any increase in food prices causes the greatest anger and frustration amongst those struggling to make ends meet. The inability to provide dependents three square meals a day is a failure that causes a great deal of mental anguish.
In the developed world, having three meals a day is taken for granted, whilst in many developing countries, this is still not possible for a particular segment of the population. Therefore, it is the responsibility of the governments that we elect to plan and develop the economy to create productive employment so that all non-disabled adult citizens are gainfully employed. Unfortunately, successive governments in Sri Lanka have miserably failed in this area. The reasons for such failure are too numerous to be discussed in this article.
The purpose of this article is to share certain information which hopefully will enable the readers to understand better the challenge of maintaining stable prices of imported commodities and how poor decision making by GOSL makes matters worse.
It must be understood that prices of imported commodities are not within the control of the importer, who in most instances are private enterprises and individuals. Commodity prices in the world market are governed by many factors ranging from droughts and floods that impact the harvest and, at times, export bans. Currently, post covid supply chain constraints are also contributing to a surge in prices the world over as demand exceeds supply. Prices are always a function of demand and supply, and when demand exceeds supply, it is natural for prices to up.
Milk powder is an essential item amongst families with children. Due to its nutritional value, despite some in the medical profession claiming otherwise, many parents ensure that it is included in the grocery list. Therefore, the inability of parents to procure this vital commodity due to either it being too expensive or because it is not readily available leaves many such parents seething in anger. A recent news telecast before the price increase showed a long queue of persons waiting to purchase a packet of milk powder, with many complaining that they have stood for more than three hours. Some were claiming that they had travelled a distance of more than 10 kilometres.
Unfortunately, the public is not fully aware of the reasons for either the need for a sharp increase in the retail price or the cause for the shortage. The Global Dairy Trade website (www.globaldairytrade.info) shows that a metric ton of full cream milk powder on November 20, 2020, cost US $ 3,037. This price excludes freight. The retail price of 1 kg milk powder in Sri Lanka was then Rs. 945/-.
The world price then increased to a high of US $ 4,364 per ton by March 02, 2021. It has since fallen to US $ 3,749 per ton by October 05, 2021.
In addition to the significant price increase in US Dollar terms, the Sri Lanka rupee, which stood at Rs. 184 per US Dollar in October 2020 has depreciated to Rs. 203 by October 2021.
In percentage terms, the increase within the 12 months is 35 per cent whilst in March 2021, it was 50% at its peak. In addition to the rise in world prices and the depreciating rupee, the importers also had to bear an increase in freight costs, which have doubled.
The unfortunate aspect of this saga is that GOSL, through the consumer protection authority, did not allow the retail price to increase from Rs. 945. As milk powder is considered an essential item, its retail price is mandated by the GOSL.

In such a scenario, the importers were bearing significant losses. The net result was that they either stopped importing milk powder or reduced the quantity imported significantly, thus causing a shortage of milk powder in the market. When an item is sold at a loss, the more you sell, the more you lose.
The fact that the GOSL did not grant a price increase is unfathomable. It is basic common sense that no private enterprise is able or willing to bear losses. Private business people are the favourite whipping boys for politicians, media, and the public in our country. No doubt some racketeers fleece the public. People need to understand that those who engage in business activities invest their funds, invariably savings in expectation of getting a reasonable return. It is no different to us as individuals investing our savings in fixed deposits. We rightfully expect a decent return which till recently was around 10 per cent for the year. Therefore, in my view, given the risk taken by those venturing into business, a return between 15 per cent to 20 per cent after tax is a fair return. Many don’t achieve such a return, and quite a lot fail in their business ventures and lose their savings.
The alternative is for the GOSL to be the importer. However, given the repeated scams that have been perpetrated by those working in the state sector, such as Sathosa, we know that government enterprises are ill-suited for such activities. In that case, the private importers should be allowed to operate in an environment where the objective of cost-plus profit is achieved, and it is for the GOSL to facilitate this.
Businesses are often accused of not bringing down prices once increases are granted despite world prices reducing, and the general belief is that business enterprises are making super-profits. In most instances, this is not the case. The actions of the GOSL, which many are unaware of, prevent the prices of such commodities from being reduced. I want to share an example of how the GOSL uses its power to levy duties and taxes on imports that prevent importers from passing on the benefit to the consumer.
The GOSL enforces customs duty at the point of import which is a cost that needs to be added before arriving at the retail price. It has been and is the policy of the GOSL to increase the duty component when world prices of essential items reduce and reduce such duty when world prices increase.
The example given below is based on records maintained by a former colleague of mine who was the purchasing director. The company that we worked for imported Skimmed Milk Powder (SMP) as a raw material.
It should be noted that the world price shown would have fluctuated during the period. Therefore, I have shown the world price on the date when the duty change was implemented.
I trust the above schedule explains why importers of milk powder are constrained from passing on the benefit of reducing prices to the consumer. Thus, it is evident that the GOSL is surreptitiously keeping the benefit to themselves and not allowing it to be passed on to the consumers.
The rationale of pricing imports that I have outlined above is equally applicable in determining the price of gas, petrol and diesel. Even state enterprises like the Ceylon Petroleum Corporation and Litro Gas should be allowed to trade on a formula of cost-plus profit. There is no alternative to this principle.
My contention and that of many who are familiar with Economics and Finance are that by not passing on the cost increase through a price formula based on cost plus profit, even those who can bear such price increases are subsidized. There will be some consumers for whom the increased cost of petrol, diesel, gas and milk powder will have no consequences; there will be some consumers for whom a certain degree of adjustments to their monthly expenditure will need to be made and a degree of belt-tightening to accommodate such price increases. Some of these adjustments might mean resorting to carpooling, travelling by train or bus. That is the choice that needs to be made. However, there will be a segment of the population who are unable to bear such price increases. Therefore, the GOSL should provide a monetary allowance to bear such price increases and make them responsible for allocating their funds. I say this as, at times, I am perplexed when I see some of the people who flock to the Liquor shops when they are opened after a period of closure.
Features
West Asian conflict undergoing manifold complications
Israeli Prime Minister Benjamin Netanyahu’s message to Israel’s enemies was blunt and stark.‘We’re going to win; we have no choice.’ He said so while the majority of attendees at a recent UN General Assembly session walked out of the conference hall when the Israeli Prime Minister took the podium; many of them booing in derision.
Those commentators who have been studying Israel’s handling of her enemy states over the decades are unlikely to dismiss the entirety of Netanyahu’s address as rhetoric. The general pattern has been for the Israeli state to stand up firmly against its enemies in the battle field. On most occasions, these adversaries have been beaten back.
It is also little realized in particularly the Southern hemisphere that Israel, for the most part, could defend herself without much US assistance. The history of the conflict bears this out.
However, from the viewpoint of working towards a just and equitable peace in the Middle East the Israeli hard line stance has proved and will prove incalculably detrimental. The sworn enemies of Israel are not going to be in any way deterred by Netanyahu’s stark warnings. On the other hand, they would be only further provoked into taking on Israel by conventional or unconventional military means and seek its destruction.
The recent aborted mid-air hijacking of a Flydubai flight, consisting mainly of Israeli passengers, by an Omani extremist drives home the point. Israel’s enemies are bound to redouble their efforts to annihilate Israel rather than be deterred by the latter’s warnings about standing firm against them. This too history has proved.
It would be in the fitness of things at this juncture to pay a tribute to the professionalism, courage and humanity of the relevant airline pilot, Captain Machchhar, whose timely action proved decisive in botching the hijack attempt. His intervention averted what could very well have been another 9/11 type tragedy. History is not going to forget his daring and resourcefulness.
Meanwhile, the ground realities in West Asia are undergoing further complications that portend increasing regional instability. For example at the time of writing Turkiye, Pakistan and Saudi Arabia have agreed under the recently established ‘Mecca Alliance for Defence’ to deploy ‘deterrence measures’ collectively in the event of any member of the alliance coming under military strikes from a non-member state.
The agreement is modeled on the NATO collective defence pact and should help in defusing any threat perceptions experienced by the alliance members in the short term. However, the group would need to be cognizant of the major and potentially divisive role Iran could play in the interstate politics of the Middle East region going forward.
Iran’s reported support, for example, for Yemen’s Houthi rebels, who are engaged in attacking Saudi national assets, could at some point in time compel the alliance, under the terms of the pact, to initiate deterrent military measures against Iran.
The implications for regional peace from such a turn of events hardly require elaboration. A full blown regional war emerges as a distinct possibility if Iran sees itself as being excessively antagonized by the alliance. A further complication is that antagonistic sectarian identities of an Islamic kind could come to play hugely divisive roles in it. Shiite Islamic states would be inclined to back Iran while those countries seen as Sunni Islamic in orientation are bound to support Saudi Arabia.
Accordingly, West Asia is a region rife with manifold aggravated insecurities. If the latter are not defused dexterously they could escalate into a conflict of extra regional dimensions. The latter development would render the world a collective loser.
Unfortunately, no constructive help could be expected from the US at this juncture by way of working towards regional and international peace even of short durance. Its war against Iran has only aggravated the world’s current insecurities.
For example, the world has been compelled to face the possibility of compounded economic woes as a consequence of the Hormuz crisis remaining unresolved. The world is currently experiencing what could be seen as a ‘winter of economic discontent’ of unprecedented proportions.
Unfortunately, the international community is to all intents and purposes helpless in the face of this multifaceted crisis. Substantial intervention is expected of the UN but since it has failed to reform itself over the years it is compelled to stand idly by while the world’s insecurities heighten and multiply.
Yet, it is the seemingly paralyzed UN system that has some potential to contain the current tide of international disorder to even a small measure. Given the persisting divergent and conflicting interests among the world’s principal power blocs, the G7 and BRICS for instance, it is mainly the UN and its principal agencies that could carry some credibility as peace brokers and mediators.
However, as an initial step towards bringing the principal protagonists to the negotiating table the UN would need to convince the principal powers of the UN Security Council of the need for a substantive broad-basing of the membership of the Council so as to reflect more accurately the current global political and economic realities. Such reforms would render the Council more representative and help in strengthening its credibility and effectiveness.
The above reforms call for years of dynamism, hard work and resourcefulness on the part of the international community, read the UN. Yet the aims are not impossible to achieve if strong leadership is brought to bear by the UN.
Meanwhile, the UN agencies and allied organizations need to pay stepped-up attention to the West Asian theatre and its wasting conflicts and wars. Here too there is immense hard work to be put in.
There is, for instance, identity politics and its issues that need to be managed urgently. While internal political matters of countries could not be addressed directly by UN agencies, awareness-raising programs and projects could be energetically carried out by them to blunt the appeal of identity-based slogans, relating to, for instance, religion and race.
Besides, values at the heart of democratic politics need to be freshly and enthusiastically propagated. Vast reserves of energy and resources are needed, to be sure, to consistently champion and implement these crucial projects but they need to be pursued single-mindedly if even a dent is to be made in the current runaway global disorder.
The aborted hijacking of the Flydubai flight pointed to the dehumanizing impact of identity politics on the human consciousness. It was also an indication that those sections endowed with humanity cannot stand idly by while identity politics continues to destroy civilizational values. The time to act is ‘now’.
Features
Future of Sri Lanka’s state university system: Should it be shut down and reopened?
by Professor Ranjith Bandara
Emeritus Professor of Economics, University of Colombo
My life has been closely connected with Sri Lanka’s state university system for more than four decades. Its doors opened to me first as a student and later as an academic. The system gave me knowledge, opportunities and a life. Therefore, when I speak about its future, I do so not as an outsider, but as someone who owes much to it and genuinely wishes to see it become better.
Over the years, our university system has expanded significantly. New institutions, faculties, degree programmes and opportunities for students have been created. For 2024, the government expected to admit 43,204 students to national universities. By the time the relevant report was prepared, 42,282 students had been admitted through the general admission process, which had not yet been completed. This is an achievement that should not be dismissed.
However, expanding the system does not necessarily mean that its quality has improved. The real question is not simply how many students we have allowed through the doors, but what kind of education they receive after entering. (Source: Ministry of Education Annual Performance Report 2024.)
We often proudly declare that “our university is number one.” Yet a university does not become number one through publicity. Its true standing depends on the quality of its teaching, the strength of its research and the contribution it makes to society. A vice-chancellor writing about the institution’s, or his or her own, achievements on Facebook does not improve the quality of a university. What matters is good teaching, an education that encourages students to think, credible research and new knowledge that benefits society. A reputation must be earned through meaningful work, not through self-promotion.
The fundamental purpose of a university is clear: to create knowledge, to teach it and to train students to examine and understand it critically. To fulfil this purpose, academics need freedom, responsibility and time. Students must be free to ask questions, disagree and develop their own views based on evidence. Without such an environment, a university may award degrees, but it cannot fulfil the true purpose of university education.
The most serious danger I see is the growing tendency for political activity to take precedence over the academic mission of universities. Over the past five decades, this problem has gradually become more serious. In some universities today, it has become difficult even to hold or express an opinion that differs from the dominant political view.
Members of a university community have every right to hold political views and express them peacefully. A university should not be a place inhabited by silent people. However, when political loyalties, power blocs and struggles for positions become more important than research, teaching and learning, the university moves away from its true purpose. When the political camp to which an academic belongs matters more than the value of that academic’s ideas, the respect that should belong to knowledge is transferred to power.
These criticisms are not ideas I have borrowed from books. They are based on experiences from my own professional life. One such experience was the manner in which I had to leave the university nearly twenty years ago. In my view, the improper exercise of political power within the administration of the University of Colombo at that time, and the strong desire to retain that power, had a serious effect on my professional life. Although this was a personal experience, I mention it with regret because it reveals a deeper institutional problem.
The lesson I learned from that experience is not merely about one person or one incident. When there are no strong institutional safeguards to ensure that power is exercised fairly and individuals are protected, even an academic may be forced to leave an institution he deeply loves.
To those who criticise my later decision to enter national politics, my answer is this: when the university’s institutional system failed to provide me with fairness and professional protection in the face of the injustice I experienced, I had to choose another path through which I could use my knowledge and experience in the service of the country.
This does not mean that all vice-chancellors, academics or students behave in the same way. I personally know many people who, despite difficult circumstances, have taught with dedication, undertaken meaningful research and transformed the lives of their students. Scholars such as Professor W. D. Lakshman, Professor Arjuna Aluwihare and Professor Lakshman Jayatilake may be recognised among the distinguished vice-chancellors in the history of Sri Lanka’s university system. Their service deserves our respect and appreciation.
Nevertheless, the presence of a few good and committed individuals cannot, by itself, strengthen a weak institutional system. We must also create an institutional environment in which such people can work independently, fairly and effectively.
First, university leaders must be selected through a process based on clearly defined qualifications, transparent evaluation and accountability. Once a vice-chancellor has been appointed, his or her performance should be assessed according to the support provided for research, the quality of teaching, student welfare, the institution’s financial discipline and the fairness of its decisions. Personal loyalties and publicity skills cannot replace these measures of performance.
Second, academics must be given the time and space required to carry out their core responsibilities. It is meaningless to demand “world-class universities” without providing adequate time, facilities and reasonable funding for research. Teaching, too, should not be treated merely as delivering lectures. Students must be trained to reason, write, investigate and apply their knowledge to real-world problems. The quality of a degree programme should be measured not by its title, but by the capabilities of the graduates it produces.
Third, universities must establish an honest connection with the needs of the country. The problems confronting our economy, schools, healthcare system, agriculture, environment and wider society are all legitimate subjects for research. Seeking answers to these problems does not diminish the dignity of a university; it increases its value to society.
At the same time, research must not be controlled by short-term political demands. Knowledge can serve the country only when researchers are free to communicate what they discover. Sri Lanka’s World Bank-supported AHEAD higher education programme similarly connected the expansion of enrolment in priority disciplines with improving the quality of degree programmes and promoting research and innovation. These goals were linked because meaningful expansion cannot be separated from educational quality. (Source: World Bank overview of the AHEAD programme.
Fourth, the responsibilities of students must be clearly emphasised. The duty to protect the academic environment of a university cannot be placed solely on administrators and academics. Every student has a fundamental responsibility to give priority to his or her education, respect the right of other students to learn and allow the free exchange of ideas.
Student activities, social debate and political engagement all have an important place in university life. However, none of them should be allowed to disrupt education or prevent other students from learning.
When students abandon their primary purpose of learning and create an environment that obstructs education, the university system cannot fulfil one of its most important functions: producing knowledgeable and responsible graduates. A university may continue to award degree certificates, but if lectures, research, open discussion and intellectual inquiry do not receive sufficient attention, it risks producing graduates who lack depth of knowledge, critical thinking and professional competence.
The result may be the emergence of a group of “half-educated” graduates, individuals who possess certificates but have not received a complete intellectual education. Therefore, just as we discuss student rights, we must also have an honest and open discussion about student responsibilities within the university system.
My position on the current professional struggle of university academics is also clear. If they are demanding fair conditions of employment, those demands should be discussed seriously. If their struggle is also intended to free universities from political interference and restore research, teaching and learning to the centre of university life, I stand with them.
The rights of academics and the educational rights of students should not be presented as opposing interests. Both can be protected and respected only within a well-functioning university.
When I say that “the state university system should be shut down and reopened,” I do not mean that we should close the door on the future of our students. I mean that we must close the door on systems in which power matters more than knowledge.
Students have the right to hold political views and participate actively in debates on national issues. A university needs a student community that thinks about the country’s problems and speaks out against injustice. However, student politics should not shut down the university, deprive other students of their education or become a means of displaying organisational power. The right to fight for one’s beliefs comes with the responsibility to respect another person’s right to an education.
Simply attempting to establish another 50 universities will not solve these problems. Sri Lanka needs a higher education system that brings together the contributions of state, state-affiliated and private institutions while applying clear standards and responsibilities to all of them.
Strict discipline within such a system should not mean suppressing freedom of thought. It should mean ensuring that everyone fulfils their responsibilities in relation to teaching, research, examinations, institutional governance and student welfare. A degree certificate will then have value not merely because of the name of the institution that issued it, but because the knowledge and capabilities of the person who earned it can be trusted.
We should learn from advanced higher education systems, but we should not simply copy them. We must develop institutional autonomy, reliable quality-assurance mechanisms and publicly accountable governance in ways that suit our own needs. What we owe future generations is not merely a country with a larger number of universities, but a country in which people can trust the education those universities provide.
What we must close down, therefore, is not the universities themselves, but the outdated system that closes the door on knowledge, freedom and responsibility. What we must reopen is a genuine university system devoted to learning, inquiry, research and the creation of new knowledge in the service of the country.
Features
The Sri Lankan who made Scottish history
From beauty pageants and medical science to challenging British immigration policy and making political history in Scotland, yes, that’s Sri Lankan Deena Tissera, born into privilege, in Chilaw, but exposed to poverty and the realities of war.
Now, after 15 years in British politics, she tells Ivan Alvis why she is no longer interested in fitting anyone else’s image of a leader.
She was educated at The British school in Colombo and her father was a doctor-entrepreneur-philanthropist, and mother a former beauty queen and movie star.
She studied Medical Science, moved into Global Health and began a PhD in Public Health, competed in Miss Sri Lanka for Miss World, and, in 2022, made history as the first woman of colour elected to Aberdeen City Council; the first politician of Sri Lankan descent elected in Scotland.
The moment that set it all in motion came during the worst period of her life. Her father had died. She was 24 and missed her university examinations to attend his funeral.
“My father’s greatest wish for me was that I completed my education. However, I was being told that my education would be delayed because I had missed examinations to attend his funeral.”
She refused to accept it. She challenged the university, protested, went before its board and represented herself — and won.
“I went from fighting for myself to realising there were thousands of students who sometimes needed somebody to fight with them.”
She was elected Students’ Union Vice President. Soon her campaigning grew larger. As an international student she had experienced Britain’s immigration system, first-hand, and helped build a UK-wide movement, campaigning for international student rights, and contributing to campaigns that helped achieve changes to immigration rules.
“That taught me one of the most important lessons of my life. Politics isn’t about having a title. Politics is understanding where power sits, organising the people who don’t have it and knowing how to make the people who do have it, listen.”

Deena: Beauty pageant
contestant
The instinct to challenge inequality began earlier. Though born to privilege, her father took her into communities affected by the war through his philanthropic work.
“I grew up with opportunities, but I was surrounded by poverty. That contradiction affected me enormously. My father taught me that privilege isn’t something you should feel guilty about. But you should understand the responsibility that comes with it.”
If her father gave her a sense of service, her mother gave her confidence. Inspired by her, Deena took to modelling … and the Miss Sri Lanka pageant.
“People sometimes expect serious women to edit the glamorous parts out of their history. I can, and have been in a beauty pageant, and still understand economic policy.”
Her academic background continues to shape her politics: “Medical science teaches you evidence. Global health teaches you systems. Public health teaches you that someone’s health can be determined by poverty, housing, education and employment long before they reach a hospital.”
While at the University of Aberdeen she joined Labour Students, later becoming Vice-Chair of her Constituency Labour Party. What followed was more than a decade of door-knocking, organising, strategising, winning and losing.
The overnight success took 15 years. In 2022 she won Hilton, Woodside and Stockethill in Aberdeen.
The historic label came with a complicated reality. She remembers entering rooms with qualifications, campaign experience and leadership credentials — and still sensing she was not the person others imagined as leader.
“There have been tables where I have looked around and known I may be the most accomplished person sitting there, but I wasn’t necessarily the person people saw as the leader. And that’s because I didn’t fit the look.”
Her answer was to work harder — another qualification, another campaign. Then she realised the flaw in that strategy.
“If you wait for everybody else to decide you’re good enough, you can spend your entire life auditioning for a position you’re already qualified to occupy. I owned my identity and started leading with the confidence of my competence.”
At 39, successful and unmarried, she speaks with unusual candour. “Being unmarried is a marital status. It isn’t a performance review.”
Her message to young Sri Lankan and migrant women is direct: “Do not shrink your ambition to make yourself easier for somebody else to digest.”
Her blog series ‘Taboo Tuesdays’ — with titles like “Politics Is a Blood Sport – And We Pretend It Isn’t” — examines ambition, envy, ego and power from inside the room.
Since her election, she has led on anti-poverty and inequality, served as Labour’s Energy Spokesperson for Aberdeen covering net zero, environment and transport, and served as Chief Whip of the Labour group.
She was adviser to former Prime Minister Gordon Brown on his Our Scottish Future commission, took part in the Jo Cox Women in Leadership programme, and served as Scottish executive representative for the northeast, Highlands and Islands at her party’s top table.
Recognition has followed — 35 Under 35 Scotland’s rising political stars, Exceptional Achiever of the Year, Politician of the Year nomination, and Outstanding Woman in Governance and Public Policy by Women in Management UK.
As Energy Spokesperson for Aberdeen, one of Europe’s key energy cities, she sits at the centre of Britain’s energy debate. She supports transition but warns: “A just transition cannot mean asking one community to carry the economic cost of everybody else’s environmental ambition.”
Ask her if she wants more power and her answer is simple: “Yes. I am ambitious. But power without purpose is just status.”
Perhaps her most personal answer is about representation: “The first Sri Lankan elected in Scotland means something to me because it means the next Sri Lankan isn’t the first.
“I didn’t have to become less Sri Lankan to become Scottish. I didn’t have to become less feminine to become politically serious. And I didn’t have to look like somebody else’s idea of leadership before I was allowed to lead.”
In conclusion, Deena Tissera had this to say: “There was a time when I wanted to prove I deserved a seat at the table. Now I walk in knowing I do.”
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