Midweek Review

The Order of the Rising Sun conferred on former Governor of Central Bank, Sri Lanka

Published

4 years ago

2022/09/7

Governor, CBSL, Dr. Nandalal Weerasinghe, responding to lawmakers. (From left:) Speaker Mahinda Yapa Abeywardena, Dr. Weerasinghe, SLFP MP Angajan Ramanathan and Deputy Secretary General of Parliament, Kushani Rohanadeera, who introduced the Governor, while acknowledging the parliamentary accountability for finance (pic courtsy Parliament)

For the first time in parliamentary history, the Central Bank of Sri Lanka has issued a dire warning to Parliament and political parties therein over the responsibility on their part to ensure financial stability and discipline. Their failure to do so would trigger public protests again, they were told. There hadn’t been such a public warning. The warning was issued by no less a person than Dr. Nandalal Weerasinghe, Governor of the Central Bank, when he dealt with ‘Sri Lanka’s current economic situation and way forward’ on Aug 31.

By Shamindra Ferdinando

The Government of Japan, on August 22, conferred ‘The Order of the Rising Sun,’ Gold Rays with Neck Ribbon’ on Deshamanya Prof. Weligamage Don Lakshman, former Governor of the Central Bank (Dec 2019-Sept – 2021). Prof. W.D. Lakshman received the Japanese honour at a ceremony held at the residence of Japanese Ambassador Mizukoshi Hideaki. Kalyani Siriseeli Lakshman, the spouse of the emeritus professor, was conferred ‘The Order of the Rising Sun, Gold Rays with Rosette.’

The Japanese Embassy declared they were honoured for their distinguished contribution in promoting mutual understanding and friendship between Japan and Sri Lanka, through education.

‘The Order of the Rising Sun’ is awarded by the Emperor of Japan to foreign nationals who have made a distinguished contribution to enhancing friendly relations with Japan. The Japanese Embassy statement, dated August 22, also made reference to his tenure as the Governor of the Central Bank.

Before The Island dealt with Prof. Lakshman’s CBSL leadership, it would be pertinent to mention that Sri Lanka’s diplomatic relations with Japan suffered irreparable damage during this tenure when the former unilaterally cancelled the Tokyo-funded Light Rail Transit (LRT) project, after much groundwork had been completed. Dr. P.B. Jayasundera, the then Secretary to President Gotabaya Rajapaksa, in September 2020, just weeks after the UPFA scored a landslide victory at the last general election, issued instructions to terminate the Japan International Cooperation Agency-funded LRT on the grounds that it was ‘very costly and not the appropriate cost-effective transport solution for the urban Colombo transportation infrastructure.’

Recently, the former Chairman of the Committee on Public Enterprises (COPE) Prof. Charitha Herath, MP, asserted, in Parliament, that the cancellation of the LRT project still remained a mystery. The SLPP rebel alleged that even the person (Dr. PBJ) who issued instructions, in that regard, is silent over the circumstances leading to the cancellation of the project. Did President Gotabaya Rajapaksa, the Cabinet-of-Ministers, the Finance Ministry, or Dr. PBJ, who functioned as the President’s chief advisor on economic affairs, consult Prof. Lakshman and then Attorney General Dappula de Livera, PC, before rushing to that decision?

The Governor of the Central Bank heads the five-member Monetary Board. At the time Dr. PBJ issued instructions, as regards the termination of the project, the Monetary Board consisted of Governor Prof. W.D. Lakshman, S.R. Attygalle (both ex-officio), Sanjiva Jayawardena, PC, Dr. Ranee Jayamaha and Samantha Kumarasinghe.

During the COPE proceedings, in May this year, chaired by Prof. Herath, the parliamentary watchdog committee established failure as well as the responsibility on the part of the Monetary Board, Prime Minister Mahinda Rajapaksa (he held the finance portfolio at that time), the Cabinet-of-Ministers, and Dr. PBJ, for the current crisis. The incumbent Governor, CBSL didn’t mince his words when he, in response to questions posed by Prof. Herath and opposition SJB lawmakers, Patali Champika Ranawaka and Dr. Harsha de Silva, named those responsible. Soft spoken Dr. Weerasinghe didn’t hesitate at all when he identified Dr. PBJ as the one who blocked an early agreement between the government and the International Monetary Fund (IMF).

Of course reform medicines, that the Fund prescribes, are very bitter to swallow for those seeking its assistance and it is not short of critics around the world. And many of its patients, especially in Latin America and Africa, are yet in dire straits after swallowing its medicines for years, if not decades. Many of those countries have got some glimmer of hope only after countries like China came forth with generous aid projects, especially in the form of massive infrastructure developments, like railways, housing, etc., often criticized by the West.

Playing politics with a bankrupt economy

Recently some members of Parliament demanded an inquiry into the failure on the part of Dr. Weerasinghe to inform Parliament of the status of the economy. They found fault with him for declaring Sri Lanka’s inability to service foreign debt before bringing it to the notice of the House.

A section of the media reported that Dr. Weerasinghe is in a soup for not duly informing Parliament about the ground situation. Perhaps, the lawmakers had conveniently forgotten that the then President Gotabaya Rajapaksa had requested Dr. Weerasinghe to take over the leadership of the CBSL after the country became virtually insolvent, even unable to pay for basics from abroad. At the time Dr. Weerasinghe retired, in January 2021, he held the post of Senior Deputy Governor and received the top post on April 08, about a month before a humiliated Mahinda Rajapaksa quit the premiership. Just 72 hours later, the UNP leader succeeded Rajapaksa. Less than two weeks later, Wickremesinghe secured the finance portfolio, too.

In fact, by the time Prof. Lakshman quit, in September 2021, to pave the way for Ajith Nivard Cabraal, who previously served as the Governor CBSL from 2006 to 2015, to return to the same top post, the economy was in tatters. Cabraal’s much publicized six-month roadmap didn’t change a thing. The ruling SLPP continued to engage in silly propaganda as the situation deteriorated, rapidly; by the time President Rajapaksa’s government approached Dr. Weerasinghe in Australia, the crisis was beyond control.

The retired political appointee Prof. Lakshman cannot absolve himself of causing unprecedented destruction and current turmoil though he simply succumbed to political pressure. What Prof. Lakshman actually did was the overseeing of the destruction of the economy in his capacity as the Governor and head of the Monetary Board.

Of course matters were exacerbated by some unforeseen events, beginning with the unprecedented terror attacks by Islamic terrorists here on Easter Sunday 2019, supposedly in retaliation for terror attacks on Muslims, in places like Christchurch, New Zealand, that delivered a body blow to the vital tourism industry here. Then before we could recover from that, there came the pandemic fear from the beginning of the following year with resultant lockdowns that also crippled the entire economy. To the credit of our rulers, we did weather the pandemic storm better than most countries, including India, where unknown numbers perished. We were also hit, like every other country, by the war in Ukraine, which could have been easily defused, like the 1962 Cuban missile crisis involving the then two super powers as now. But in our opinion what reduced us to being international beggars was the almost successful shutting down of our last lucrative foreign exchange earner, the remittances of our expatriate workers by illegal underground money transfer schemes, known as Hawala and Undiyal.

It was also the fault of the authorities, going back to possibly the 1990s, for allowing private foreign exchange traders to operate with hardly any controls that led to the bleeding of vital foreign currencies from the country. It has been a known fact that proceeds from the lucrative drug trade had been easily repatriated abroad by drug dealers, thanks to the free availability of foreign currency with those dealers, where no questions are asked. We wonder whether such anti-national decisions were taken at the behest of economic hitmen at the IMF and the World Bank.

Combination of these situations led to the country being reduced to an international beggar.

Hell-bent on appeasing his political masters, Prof. Lakshman, well past his prime, merely followed instructions. Those who remained as Monetary Board members, under Prof. Lakshman’s leadership, cannot absolve themselves of the responsibility for the current crisis. Had Jayawardena, a highly successful lawyer, and Jayamaha, a retired top Central Banker, and even headed private banks, were so concerned and opposed the conduct of Prof. Lakshman and Treasury Secretary Attygalle, they should have quit the outfit. Instead, they remained. And they continued to do so. Their declarations at the COPE proceedings of their failed bids to influence Prof. Lakshman cannot justify their failure.

Of course, the Japanese Embassy, in Colombo, shouldn’t be faulted for recommending the Order of the Rising Sun for Prof. Lakshman in the evening of his life for services rendered during better days. However, the Japanese Embassy caused quite a stir when Senior Professor Sampath Amaratunga, Chairman of the University Grants Commission (UGC) was conferred ‘The Order of the Rising Sun’ twice.

The academic received the award on 14 October 2021 from the then Japanese Ambassador in Colombo, Akira Sugiyama, at his official residence. For the second time, the UGC Chief received the same at Dharmavijayaloka Vihara in Rukmale in Pannipitiya at an event organized on January 22, 2022. The incumbent Japanese Ambassador Mizukoshi Hideaki and the then President Gotabaya Rajapaksa were present on the occasion.

Ali Sabry, PC, had the guts to defend Dr. Weerasinghe in Parliament. In fact, both Dr. Weerasinghe as well as Sabry, in his capacity as the Finance Minister squarely blamed those who had advised President Gotabaya Rajapaksa for the economic meltdown. Having held talks in Washington with the IMF and the World Bank in late May, Sabry, in an exclusive interview with Swarnavahini in early June disclosed how the advisors (Dr.PBJ, Governors of the CBSL, Treasury Secretary et al) deceived the President and the Cabinet-of-Ministers until it was too late.

No one challenged Sabry over his shocking declarations. Actually, Sabry basically repeated what Dr. Weerasinghe told the COPE.

Formidable challenge

Dr. Weerasinghe, obviously has earned the wrath of some lawmakers/political parties for taking an uncompromising stand against irresponsible governance. Addressing the Mps, on the invitation of Speaker Mahinda Yapa Abeywardena, in Parliament, the day after President Wickremesinghe, in his capacity as the Finance Minister presented an interim budget, Dr. Weerasinghe warned that the whole exercise, involving the IMF, could collapse if political parties didn’t change their strategies. Dr. Weerasinghe demanded a genuine acceptance of the agreement or warned political parties to prepare to face the consequences. Had the Parliament met its two primary obligations, namely financial responsibility and enactment of laws, the Speaker wouldn’t have found any justifiable reason to invite the Governor who indicated he would not stand any nonsense under any circumstances.

Whatever some unscrupulous politicians say, the vast majority of the public appreciated senior officials taking such a stand. It would be pertinent to mention the circumstances Dr. Weerasinghe received a six-year term on June 30 as the Governor, CBSL. Dr. Indrajith Coomaraswamy, who succeeded Arjuna Mahendran in June 2016, in the wake of the second far bigger Treasury bond scam, was unceremoniously asked to leave after Gotabaya Rajapaksa’s triumph at the Nov 2019 presidential election. Those who managed the President’s diary almost succeeded in depriving Dr. Coomaraswamy an opportunity to pay a courtesy call on the President before his retirement. Dr. Coomaraswamy’s six-year term was shared by Prof. Lakshman, Cabraal and Dr. Weerasinghe. Now that Dr. Weerasinghe has received a fresh six-year term, the government is not in a position to remove him, unless he left voluntarily.

At last a Governor of the CBSL has dared to take a principled stand vis-a-vis political interference. An utterly corrupt and reckless and irresponsible lot had been told in no uncertain terms that a bankrupt country couldn’t continue the way, those who represented the legislature wanted to exploit the electorate at the expense of the national economy.

The culpability of Cabraal, who represented Finance Minister Mahinda Rajapaksa cannot be disregarded. As the State Finance Minister for Money and Capital Markets and State Enterprise Reform (Aug 2020 to Sept 2021) Cabraal played a significant role in the overall financial management. Dr. Harsha de Silva has repeatedly raised Cabraal’s culpability as regards the current financial turmoil.

Reappraisal of perks and privileges

As the country struggles to come to terms with the growing difficulties, the government in consultation with all political parties represented in Parliament and trade unions representing key sectors should review the national economy. The need to reexamine and take tangible corrective measures cannot be delayed any further. Perks, privileges granted to all sectors, should be reviewed. If they are genuine, the issuance of much abused duty free vehicle permits can be examined as part of the overall measures to save foreign exchange. Thanks to anti-corruption campaigner, controversial Attorney-at-Law Nagananda Kodituwakku, the country got to know how our lawmakers brazenly abused the duty free permits. They had an absolutely wonderful scheme (wonderful to them and their associates) which allowed them to sell the ownership of the duty free vehicles imported by them to those not entitled to that facility the same day the vehicles were registered in their names.

Nagananda Kodituwakku has not been successful in his attempts to move Court against those lawmakers engaged in a lucrative trade/massive scam with the blessings of Parliament whoever won the general election. Only a few declined the offer to obtain a duty free permit for the sole purpose of financially benefiting at the expense of the national economy.

At the onset of the financial crisis in 2020, the Finance Ministry submitted a Cabinet paper to import duty free vehicles for all MPs. The move was later shelved amidst growing public resentment. Over the years, successive governments mercilessly exploited the country until the national economy deteriorated to such an extent, violent public protests erupted on March 31.

Incumbent CBSL Governor warned political parties represented in Parliament that public protests could erupt again if they repeated their habitual political strategies meant to win elections at any cost.

Dr. Weerasinghe quite cleverly used his speech to highlight how all political parties shamelessly undermined the national economy by promising relief in spite of the government whoever was in power lacking the financial strength to do so. The lawmakers were warned against undermining the economy by electioneering based on promises. There had never been such a fiery speech delivered by an outsider to members of Parliament since the shifting of Parliament, from Galle Face to Sri Jayewardenepura, 40 years ago. Members of Parliament, past and present would have been humiliated and ashamed of the way they managed the national economy, especially since 1977.

The Parliament released the link that gave access to Dr. Weerasinghe’s full speech. President Ranil Wickremesinghe, Prime Minister Dinesh Gunawardena, the Cabinet-of-Ministers, leaders of political parties represented in Parliament, the media and the civil society should pay attention to the Governor’s talk. The Executive, the Legislature and the Judiciary should heed the concerns raised by the Governor. There had never been such a straightforward criticism of an utterly corrupt system that thrived at the expense of the public.

Dr. Weerasinghe response to reckless, corrupt and irresponsible system can be examined against the backdrop of advice given by Dr. Coomaraswamy several years ago. In Nov 2018, Coomaraswamy advised the electorate as regards parliamentary elections. Dr. Coomaraswamy made the appeal before the Presidential Commission of Inquiry (PCol) on irregularities at SriLankan Airlines, SriLankan Catering and Mihin Lanka.

Dr. Coomaraswamy told the PCol almost prophetically that the country was facing a non-virtuous cycle of debt and it was a very fragile situation which could even lead to a debt crisis. “Of course my colleagues in the debt department have plans and capability to manage it. But it’s the duty of every citizen to act responsibly as regards the government policy”, he told the PCol. Dr. Coomaraswamy emphasized that people should elect MPs who were prudent enough to handle fiscal and monetary matters of the country. “I am not referring to any government, but it’s been the case ever since Independence”.

Obviously, the electorate didn’t heed Dr. Coomaraswamy’s call. Those who won the next general election in Aug 2020 simply allowed things to slip out of control. They couldn’t have done so without the support of those who managed the economy. Two of Dr. Coomaraswamy’s successors, Prof. Lakshman and Cabraal are under fire for their role in the current crisis. The Court has been moved against Cabraal.

Dr. Coomaraswamy is on record as having said that the failure on the part of successive governments to manage expenditure since the country gained Independence has caused the current economic instability.

Months later, in response to The Island query, Dr. Coomaraswamy declared Sri Lanka had been plagued by a toxic combination of populist politics and an entrenched entitlement culture among the people.

“Time and again, the electoral calendar has undermined fiscal discipline,” Dr. Coomaraswamy asserted.

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Midweek Review

2019 Easter Sunday carnage in retrospect

Published

7 days ago

2026/04/8

Sahan Weerasooriya

November 21, 2019: President Gotabaya Rajapaksa meets Archbishop of Colombo, His Eminence Malcolm Cardinal Ranjith at the Bishop House where he requested the Church to nominate a representative for the Presidential Commission of Inquiry (PCoI) probing the Easter Sunday carnage.

Coordinated suicide attacks targeted three churches—St. Anthony’s in Colombo, St. Sebastian’s at Katuwapitiya and Zion Church in Batticaloa—along with popular tourist hotels Shangri-La, Kingsbury, and Cinnamon Grand. No less a person than His Eminence Archbishop of Colombo Rt. Rev. Malcolm Cardinal Ranjith is on record as having said that the carnage could have been averted if the Yahapalana government shared the available Indian intelligence warning with him. Yahapalana Minister Harin Fernando publicly admitted that his family was aware of the impending attack and the warning issued to senior police officers in charge of VVIP/VIP security is evidence that all those who represented Parliament at the time knew of the mass murder plot. Against the backdrop of Indian intelligence warning and our collective failure to act on it, it would be pertinent to ask the Indians whether they knew the Easter Sunday operation was to facilitate Gotabaya Rajapaksa’s victory at the 2019 presidential poll. Perhaps, a key to the Easter Sunday conspiracy is enigma Sara Jasmin (Tamil girl from Batticaloa converted to Islam) whose husband Atchchi Muhammadu Hasthun carried out the attack on St. Sebastian’s Church, Katuwapitiya

By Shamindra Ferdinando

Pivithuru Hela Urumaya (PHU) leader Udaya Gammanpila’s Pasku Praharaye Mahamolakaru Soya Yema (Searching for the mastermind behind the Easter Sunday attacks) inquired into the 2019 April 21 Easter Sunday carnage. The former Minister and Attorney-at-Law quite confidently argued that the mastermind of the only major post-war attack was Zahran Hashim, one of the two suicide bombers who targeted Shangri-la, Colombo.

Gammanpila launched his painstaking work recently at the Sambuddhathva Jayanthi Mandiraya at Thummulla, with the participation of former Presidents Gotabaya Rajapaksa, who had been accused of being the beneficiary of the Easter Sunday carnage at the November 2019 presidential election, and Maithripala Sirisena faulted by the Presidential Commission of Inquiry (PCoI) that probed the heinous crime. Rajapaksa and Sirisena sat next to each other, in the first row, and were among those who received copies of the controversial book.

PCoI, appointed by Sirisena in September, 2019, in the run-up to the presidential election, in its report submitted to President Gotabaya Rajapaksa, in February, 2020, declared that Sirisena’s failure as the President to act on ‘actionable intelligence’ exceeded mere civil negligence. Having declared criminal liability on the part of Sirisena, the PCoI recommended that the Attorney General consider criminal proceedings against former President Sirisena under any suitable provision in the Penal Code.

PCoI’s Chairman Supreme Court Judge Janak de Silva handed over the final report to President Rajapaksa on February 1, 2021 at the Presidential Secretariat. Gotabaya Rajapaksa received the first and second interim reports on 20 December and on 2 March, 2020, respectively.

The Commission consists of the following commissioners: Justice Janak De Silva (Judge of the Supreme Court and Chairman of the Commission), Justice Nissanka Bandula Karunarathna (Judge of the Court of Appeal), Justice Nihal Sunil Rajapakse (Retired Judge of the Court of Appeal), Bandula Kumara Atapattu (Retired Judge of the High Court) and Ms W.M.M.R. Adikari (Retired Ministry Secretary).

H.M.P. Buwaneka Herath functioned as the Secretary to the PCoI.

It would be pertinent to mention that the Archbishop of Colombo Malcolm Cardinal Ranjith, declined an opportunity offered by President Rajapaksa to nominate a person for the PCoI. The Church leader asserted such a move would be misconstrued by various interested parties. Both the former President and Archbishop of Colombo confirmed that development soon after the presidential election.

Having declared its faith in the PCoI and received assurance of the new government’s intention to implement its recommendations, the Church was taken aback when the government announced the appointment of a six-member committee, chaired by Minister Chamal Rajapaksa, to examine the PCoI and recommend how to proceed. That Committee included Ministers Johnston Fernando, Udaya Gammanpila, Ramesh Pathirana, Prasanna Ranatunga and Rohitha Abeygunawardena.

The Church cannot deny that their position in respect of the Yahapalana government’s pathetic failure to thwart the Easter Sunday carnage greatly influenced the electorate, and the SLPP presidential candidate Gotabaya Rajapaksa directly benefited. Alleging that the Archbishop of Colombo played politics with the Easter Sunday carnage, SJB parliamentarian Harin Fernando, in June 2020, didn’t mince his words when he accused the Church of influencing a decisive 5% of voters to back Gotabaya Rajapaksa. At the time that accusation was made about nine months before the PCoI handed over its report, President Rajapaksa and the Archbishop of Colombo enjoyed a close relationship.

The Church raised the failure on the part of the government to implement the PCoI’s recommendations six months after President Rajapaksa received the final report.

The National Catholic Committee for Justice to Eastern Sunday Attack Victims, in a lengthy letter dated 12 July 2021, demanded the government deal with the following persons for their failure to thwart the attacks. The Committee warned that unless the President addressed their concerns alternative measures would be taken. The government ignored the warning. Instead, the SLPP adopted delaying tactics much to their disappointment and the irate Church finally declared unconditional support for the US-India backed regime change project.

Sirisena and others

On the basis of the 19th Chapter, titled ‘Accountability’ of the final report, the Committee drew President Rajapaksa’s attention to the following persons as listed by the PCoI: (1) President Maithripala Sirisena (2) PM Ranil Wickremesinghe (3) Defence Secretary Hemasiri Fernando (4) Chief of National Intelligence Sisira Mendis (5) Director State Intelligence Service Nilantha Jayawardena.

The 20th Chapter, titled ‘Failures on the part of law enforcement authorities’ in the Final report (First Volume), identified the following culprits ,namely IGP Pujith Jayasundera, SDIG Nandana Munasinghe (WP), Deshabandu Tennakoon (DIG, Colombo, North), SP Sanjeewa Bandara (Colombo North), SSP Chandana Atukorale, B.E.I. Prasanna (SP, Director, Western province, Intelligence), ASP Sisira Kumara, Chief Inspector R.M. Sarath Kumarasinghe (Acting OIC, Fort), Chief Inspector Sagara Wilegoda Liyanage (OIC, Fort)., Chaminda Nawaratne (OIC, Katana), State Counsel Malik Azeez and Deputy Solicitor General Azad Navaavi.

The PCoI named former Minister and leader of All Ceylon Makkal Congress Rishad Bathiudeen, his brother Riyaj, Dr Muhamad Zulyan Muhamad Zafras and Ahamad Lukman Thalib as persons who facilitated the Easter Sunday conspiracy, while former Minister M.L.A.M. Hisbullah was faulted for spreading extremism in Kattankudy.

Major General (retd) Suresh Sallay, who is now in remand custody, under the CID, for a period of 90 days, in terms of the prevention of Terrorism Act (PTA) ,was not among those named by the PCoI. Sallay, who served as the head of the Directorate of Military Intelligence (DMI/from 2012 to 2016) was taken into custody on 25 February and named as the third suspect in the high profile investigation. (Interested parties propagated that Sallay was apprehended on the basis of UK’s Channel 4 claim that the officer got in touch with would-be Easter Sunday bombers, including Zahran Hashim, with the help of Sivanesathurai Chandrakanthan, alias Pilleyan. However, Pilleyan who had been arrested in early April 2025 under PTA was recently remanded by the Mount Lavinia Magistrate’s Court, pending the Attorney General’s recommendations in connection with investigations into the disappearance of a Vice Chancellor in the Eastern Province in 2006. There was absolutely no reference to the Easter Sunday case)

The Church also emphasised the need to investigate the then Attorney General Dappula de Livera’s declaration of a ‘grand conspiracy’ behind the Easter Sunday carnage. The Church sought answers from President Rajapaksa as to the nature of the grand conspiracy claimed by the then AG on the eve of his retirement.

Sallay was taken into custody six years after the PCoI handed over its recommendations to President Rajapaksa and the appointment of a six-member parliamentary committee that examined the recommendations. The author of Pasku Praharaye Mahamolakaru Soya Yema, Gammanpila, the only lawyer in the six-member PCoI, should be able to reveal the circumstances that committee came into being.

Against the backdrop of the PCoI making specific recommendations in respect of the disgraced politicians, civilian officials and law enforcement authorities over accountability and security failures, the SLPP owed an explanation regarding the appointment of a six-member committee of SLPPers. Actually, the SLPP owed an explanation to Sallay whose arrest under the PTA eight years after Easter Sunday carnage has to be discussed taking into consideration the failure to implement the recommendations.

Let me briefly mention PCoI’s recommendations pertaining to two senior police officers. PCoI recommended that the AG consider criminal proceedings against SDIG Nandana Munasinghe under any suitable provision in the Penal Code or Section 82 of the Police Ordinance (Final report, Vol 1, page 312). The PCoI recommended a disciplinary inquiry in respect of DIG Deshabandu Tennakoon. The SLPP simply sat on the PCoI recommendations.

Following the overthrow of President Rajapaksa by a well-organised Aragalaya mob in July 2022, the SLPP and President Ranil Wickremesinghe paved the way for Deshabandu Tennakoon to become the Acting IGP in November 2023. Wickremesinghe went out of his way to secure the Constitutional Council’s approval to confirm the controversial police officer Tennakoon’s status as the IGP.

Some have misconstrued the Supreme Court ruling, given in January 2023, as action taken by the State against those named in the PCoI report. It was not the case. The SC bench, comprising seven judges, ordered Sirisena to pay Rs 100 mn into a compensation fund in response to 12 fundamental rights cases filed by families of the Easter Sunday victims, Catholic clergy and the Bar Association of Sri Lanka. The SC also ordered ex-IGP Pujith Jayasundara and former SIS head Nilantha Jayawardene to pay Rs. 75m rupees each, former Defence Secretary Hemasiri Fernando Rs. 50 million and former CNI Sisira Mendis Rs. 10 million from their personal money. All of them have been named in the PCoI report. As previously mentioned, Maj. Gen. Sallay, who headed the SIS at the time of the SC ruling that created the largest ever single compensation fund, was not among those faulted by the sitting and former justices.

Initial assertion

The Archbishop of Colombo, in mid-May 2019, declared the Easter Sunday carnage was caused by local youth at the behest of a foreign group. The leader of the Catholic Church said so in response to a query raised by the writer regarding a controversial statement made by TNA MP M. A. Sumanthiran. The Archbishop was joined by Most Ven Ittapane Dhammalankara Nayaka Thera of Kotte Sri Kalyani Samagri Dharma Maha Sangha Sabha of Siyam Maha Nikaya. They responded to media queries at the Bishop’s House, Borella.

The Archbishop contradicted Sumanthiran’s claim that the failure on the part of successive governments to address the grievances of minorities over the past several decades led to the 2019 Easter Sunday massacre.

Sumanthiran made the unsubstantiated claim at an event organised to celebrate the first anniversary of the Sinhala political weekly ‘Annidda,’ edited by Attorney-at-Law K.W. Janaranjana at the BMICH.

The Archbishop alleged that a foreign group used misguided loyal youth to mount the Easter Sunday attacks (‘Cardinal rejects TNA’s interpretation’, with strap line ‘foreign group used misguided local youth’, The Island, May 15, 2019 edition).

Interested parties interpreted the Easter Sunday carnage in line with their thinking. The writer was present at a special media briefing called by President Sirisena on 30 April, 2019 at the President’s House where the then Northern Province Governor Dr. Suren Raghavan called for direct talks with those responsible for the Easter Sunday massacre. One-time Director of the President’s Media Division (PMD) Dr. Raghavan emphasised that direct dialogue was necessary in the absence of an acceptable mechanism to deal with such a situation. Don’t forget Sisisena had no qualms in leaving the country a few days before the attacks and was away in Singapore when extremists struck. Sirisena arrived in Singapore from India.

The NP Governor made the declaration though none of the journalists present sought his views on the post-Easter Sunday developments.

During that briefing, in response to another query raised by the writer, Army Commander Lt. Gen. Mahesh Senanayake disclosed that the CNI refrained from sharing intelligence alerts received by the CNI with the DMI. Brigadier Chula Kodituwakku, who served as Director, DMI, had been present at Sirisena’s briefing and was the first to brief the media with regard to the extremist build-up leading to the Easter Sunday attacks.

The collapse of the Yahapalana arrangement caused a security nightmare. Frequent feuds between Yahapalana partners, the UNP and the SLFP, facilitated the extremists’ project. The top UNP leadership feared to step in, even after Justice Minister Dr. Wijeyadasa Rajapaksha issued a warning in Parliament, in late 2016, regarding extremist activities and some Muslim families securing refuge in countries dominated by ISIS. Instead of taking tangible measures to address the growing threat, a section of the UNP parliamentary group pounced on the Minister.

The UNP felt that police/military action against extremists may undermine their voter base. The UNP remained passive even after extremists made an abortive bid to kill Thasleem, Coordinating Secretary to Minister Kabir Hashim, on 8 March 2019. Thasleem earned the wrath of the extremists as he accompanied the CID team that raided the extremists’ facility at Wanathawilluwa. The 16 January 2019 raid indicated the deadly intentions of the extremists but PM Wickremesinghe was unmoved, while President Sirisena appeared clueless as to what was going on.

Let me reproduce the PCoI assessment of PM Wickremesinghe in the run-up to the Easter Sunday massacre. “Upon consideration of evidence, it is the view of the PCoI that the lax approach of Mr. Wickremesinghe towards Islamic extremists as the Prime Minister was one of the primary reasons for the failure on the part of the then government to take proactive steps towards tackling growing extremism. This facilitated the build-up of Islam extremists to the point of the Easter Sunday attack.” (Final report, Vol 1, pages 276 and 277).

The National Catholic Committee for Justice to Easter Sunday Attack Victims, in its letter dated 12 July, 2021, addressed to President Rajapaksa, questioned the failure on the part of the PCoI to make any specific recommendations as regards Wickremesinghe. Accusing Wickremesinghe of a serious act of irresponsibility and neglect of duty, the Church emphasised that there should have been further investigations regarding the UNP leader’s conduct.

SLPP’s shocking failure

The SLPP never made a serious bid to examine all available information as part of an overall effort to counter accusations. If widely propagated lie that the Easter Sunday massacre had been engineered by Sallay to help Gotabaya Rajapaksa win the 2019 presidential poll is accepted, then not only Sirisena and Wickremesinghe but all law enforcement officers and others mentioned in the PCoI must have contributed to that despicable strategy. It would be interesting to see how the conspirators convinced a group of Muslims to sacrifice their lives to help Sinhala Buddhist hardliner Gotabaya Rajapaksa to become the President.

Amidst claims, counter claims and unsubstantiated propaganda all forgotten that a senior member of the JVP/NPP government, in February 2021, when he was in the Opposition directly claimed Indian involvement. The accusation seems unfair as all know that India alerted Sri Lanka on 4 April , 2019, regarding the conspiracy. However, Asanga Abeygoonasekera, in his latest work ‘Winds of Change’ questioned the conduct of the top Indian defence delegation that was in Colombo exactly two weeks before the Easter Sunday carnage. Abeygoonasekera, who had been a member of the Sri Lanka delegation, expressed suspicions over the visiting delegation’s failure to make reference to the warning given on 4 April 2019 regarding the plot.

The SLPP never had or developed a strategy to counter stepped up attacks. The party was overwhelmed by a spate of accusations meant to undermine them, both in and outside Parliament. The JVP/NPP, in spite of accommodating Mohamed Yusuf Ibrahim, father of two Easter Sunday suicide bombers Ilham Ahmed Ibrahim (Shangila-la) and Imsath Ahmed Ibrahim (Cinnamon Grand), in its 2015 National List was never really targeted by the SLPP. The SLPP never effectively raised the possibility of the wealthy spice trader funding the JVP to receive a National List slot.

The Catholic Church, too, was strangely silent on this particular issue. The issue is whether Mohamed Yusuf Ibrahim had been aware of the conspiracy that involved his sons. Another fact that cannot be ignored is Attorney-at-Law Hejaaz Hizbullah who had been arrested in April 2020 in connection with the Easter Sunday carnage but granted bail in February 2022 had been the Ibrahim family lawyer.

Hejaaz Hizbullah’s arrest received international attention and various interested parties raised the issue.

The father of the two brothers, who detonated suicide bombs, was granted bail in May 2022.

Eric Solheim, who had been involved in the Norwegian-led disastrous peace process here, commented on the Easter Sunday attacks. In spite of the international media naming the suicide bombers responsible for the worst such atrocity Solheim tweeted: “When we watch the horrific pictures from Sri Lanka, it is important to remember that Muslims and Christians are small minorities. Muslims historically were moderate and peaceful. They have been victims of violence in Sri Lanka, not orchestrating it.”

That ill-conceived tweet exposed the mindset of a man who unashamedly pursued a despicable agenda that threatened the country’s unitary status with the connivance of the UNP. Had they succeeded, the LTTE would have emerged as the dominant political-military power in the Northern and Eastern Provinces and a direct threat to the rest of the country.

Midweek Review

War with Iran and unravelling of the global order – I

Published

7 days ago

2026/04/8

Sahan Weerasooriya

At present, the world stands in the midst of a transitional and turbulent phase, characterised by heightened uncertainty and systemic flux, reflecting an ongoing transformation of the modern global order. The existing global order, rooted in the US hegemony, shows unmistakable signs of decay, while a new and uncertain global system struggles to be born. In such moments of profound transformation, as Antonio Gramsci observed, morbid symptoms proliferate across the body politic. From a geopolitical perspective, the intensifying coordinated aggression of the United States and Israel against Iran is not merely a regional crisis, but an acceleration of a deeper structural transformation in the international order. In this context, the conduct of Donald Trump appears less as an aberration and more as a morbid symptom of a declining US-led global order. As Amitav Acharya argues in The Once and Future World Order (2025), the emerging global order may well move beyond Western dominance. However, the pathway to that future is proving anything but orderly, shaped instead by disruption, unilateralism, and the unsettling symptoms of a system in transition.

Origins of the Conflict

To begin with, the origins and objectives of the parties to the present armed confrontation require unpacking. In a sense, the current Persian Gulf crisis reflects a convergence of long-standing geopolitical rivalries and evolving security dynamics in the Middle East. The roots of tension between the West and the Middle East can be traced back to earlier historical encounters, from the Persian Wars of classical antiquity to the Crusades of the medieval period. A new phase in the region’s political trajectory commenced in 1948 with the establishment of Israel—widely perceived as a Western enclave within the Arab world—and the concurrent displacement of approximately 700,000 Palestinians from their homeland. Since then, Israel has steadily consolidated and expanded its territory, a process that has remained a persistent source of regional instability. The Iranian Revolution introduced a further layer of complexity, fundamentally reshaping regional alignments and ideological contestations. In recent years, tensions between Israel and the United States on one side and Iran on the other have steadily intensified. The current phase of the conflict, however, was directly triggered by coordinated U.S.–Israeli airstrikes on both civilian and military targets on 28 February 2026, which, as noted in a 2 April 2026 statement by 100 international law experts from leading U.S. universities, constituted a clear violation of the UN Charter and International Humanitarian Law (IHL).

Objectives and Strategic Aims

Israel’s strategic objective appears to be directed toward the systematic and total destruction of Iran’s military, nuclear, and economic capabilities, driven by the perception that Iran remains the principal obstacle to its security and its pursuit of regional primacy. Israel was aware that Iran did not possess a nuclear weapon at the time; however, its nuclear programme remained a subject of international contention, with competing assessments regarding its ultimate intent and potential for weaponisation.

The United States, for its part, appears to be pursuing more targeted political and strategic objectives, including eventual transformation of Iran’s current political regime. Washington has long regarded the Iranian leadership as fundamentally antagonistic to U.S. interests in the Middle East. In this context, the United States may seek to enhance its strategic leverage over Iran, including in relation to its substantial oil and gas resources, a point underscored in recent statements by Donald Trump. It must be noted, however, successive U.S. administrations since 1979 have avoided direct large-scale military confrontation with Iran, preferring instead a combination of sanctions, diplomatic pressure, and indirect military engagement.

The positions of other Arab states in the Persian Gulf are shaped by a combination of security calculations, sectarian considerations, and broader geopolitical alignments. While several Gulf Cooperation Council (GCC) members, notably Saudi Arabia and United Arab Emirates, have expressed tacit support for measures that counter Iranian regional influence, their involvement remains calibrated to avoid direct military confrontation. Their position is informed by the belief that Iran provides backing to militant non-state actors, including Hezbollahs in the West Bank and the Houthis in Southern Yemen, which they view as destabilising forces in the region. These states are balancing competing priorities: the desire to curb Iran’s power projection, maintain strong security and economic ties with the United States, and preserve domestic stability. At the same time, countries such as Oman and Qatar have adopted more neutral or mediating stances, emphasizing diplomatic engagement and conflict de-escalation.

Militarily, Iran is not positioned to match the combined military capabilities of U.S.–Israeli forces. Nevertheless, it retains significant asymmetric leverage, particularly through its capacity to influence global energy flows. Control over critical maritime chokepoints, most notably the Strait of Hormuz, provides Tehran with a potent strategic instrument to disrupt global oil supply. Iranian leadership appears to view this leverage as a key pressure point, designed to compel global economic actors to push Washington and Tel Aviv toward a cessation of hostilities and a negotiated settlement. In this context, attacks on oil and gas infrastructure, shipping routes, and supply lines constitute central components of Iran’s survival strategy. As long as the conflict persists and energy flows through the Strait of Hormuz remain disrupted, the resulting instability is likely to generate severe repercussions across the global economy, increasing pressure on the United States to halt military operations against Iran.

Now entering its fifth week, the conflict continues to flare intensely, characterised by sustained and intensive aerial operations. Joint U.S.–Israeli strikes have reportedly destroyed substantial elements of Iran’s air and naval capabilities, as well as critical military and economic infrastructure. Nevertheless, Iran has retained the capacity to conduct guided missile strikes within Israel and against selected U.S. economic, diplomatic, and military assets across the Middle East, including reported long-range attacks on the U.S. facility at Diego Garcia in the Indian Ocean, approximately 4,000 kilometers from Iranian territory. Initial U.S. and Israeli strategic calculations—anticipating that a decisive initial strike and the targeted killing of Iranian Supreme Leader Ali Khamenei would precipitate regime collapse and popular uprising—have not materialized. On the contrary, the destruction of civilian facilities has strengthened anti-American sentiment and reinforced domestic support for the Iranian leadership. While Iran faced initial setbacks on the battlefield, it has achieved notable success in the international media front, effectively shaping global perceptions and advancing its propaganda objectives. By the fifth week, Tehran’s asymmetric strategy has yielded tangible results, including the downing of two U.S. military aircraft, F15E Strike Eagle fighter jet and A10 Thunderbolt II (“Warthog”) ground-attack aircraft , signaling the resilience and operational efficacy of Iran’s military power.

The Military Industrial Complexes and ProIsrael Lobby

Why did the United States initiate military action against Iran at this particular juncture? Joe Kent, who resigned in protest over the war, stated that available intelligence did not indicate an imminent Iranian capability to produce a nuclear weapon or pose an immediate threat to the United States. This assessment raises important questions about the stated objective of dismantling Iran’s nuclear programme, suggesting that it may have served to obscure broader strategic and economic considerations underpinning the intervention. To understand the timing and rationale of the U.S. intervention in the Persian Gulf, it is therefore necessary to examine the influence of two powerful domestic pressure groups: the military–industrial complex and the pro-Israel lobby.

The influence of the U.S. military–industrial complex on American foreign policy is most clearly manifested through the institutionalized “revolving door” between defense corporations and senior positions within the U.S. administration. Over the past two decades, key figures such as Lloyd Austin (Secretary of Defence, 2021–2025), a former board member of Raytheon Technologies, Mark Esper (Secretary of Defence 2019–2020), who previously served as a senior executive at the same firm, and Patrick Shanahan (2019) from Boeing exemplify the direct movement of personnel from industry into the highest levels of strategic decision-making. This circulation is complemented by influential policy actors such as Michèle Flournoy (Under Secretary of Defence Under President Obama) and Antony Blinken (Secretary of State 2021 to 2025, Deputy Secretary of State 2015 to 2017), whose engagement with consultancies like WestExec Advisors further blurs the boundary between public policy and private defense interests. This pattern appears to persist under the present Trump administration, where the interplay between defense industry interests and strategic policymaking continues to shape procurement priorities and threat perceptions. Consequently, the military–industrial complex operates not merely as an external pressure group but as an internalized component of the policy process, shaping U.S. foreign policy in ways that align strategic objectives with the structural and commercial interests of the defense sector. Armed conflicts may also generate substantial commercial opportunities, as increased military spending often translates into expanded profits for defense contractors.

The influence of the pro-Israel lobby on U.S. foreign policy is best understood as a dense network of advocacy organisations, donors, policy institutes, and political actors that shape both elite consensus and decision-making within successive administrations. At the center of this network is the American Israel Public Affairs Committee, widely regarded as one of the most effective lobbying organisations in Washington, which works alongside a broader constellation of groups and donors to sustain bipartisan support for Israel. This influence is reinforced through the presence of senior policymakers and advisors with strong ideological or institutional affinities toward Israel, including Donald Trump and Benjamin Netanyahu, whose close political alignment has translated into consistent diplomatic and strategic backing. Policy decisions—ranging from the recognition of Jerusalem as Israel’s capital to continued military assistance—reflect not only geopolitical calculations but also the domestic political salience of pro-Israel advocacy within the United States. Consequently, the pro-Israel lobby operates not merely as an external pressure group but as an embedded force within the policy ecosystem, shaping U.S. foreign policy in ways that sustain a strong and often unconditional commitment to Israeli security and strategic interests. A fuller explanation of U.S. policy toward Iran emerges when the influence of both the military–industrial complex and the pro-Israel lobby is considered together. These two forces, while distinct in composition and motivation, converge in reinforcing a strategic outlook that prioritises the identification of Iran as a central threat and legitimizes the use of coercive military instruments.

Global Economic Fallout

After five weeks of sustained conflict, the trajectory of the war suggests that Iran’s strategy of resilience and asymmetric resistance is yielding tangible effects. While the United States, alongside Israel, has inflicted significant damage on Iran’s economic and military infrastructure, it has not succeeded in eroding Tehran’s capacity—or resolve—to continue the conflict through unconventional means. At the same time, Washington appears to be encountering increasing difficulty in bringing the war to a decisive conclusion, even as signs of strain emerge in its relations with key European allies. Most importantly, the repercussions of the conflict are no longer confined to the battlefield: the unfolding crisis has generated a widening economic shock that is reverberating across global markets and supply chains. It is this broader international economic impact of the war that now warrants closer examination.

The Persian Gulf conflict is rapidly sending shockwaves through the global economy. At the forefront is the energy sector: even partial disruptions to oil and gas exports from the region are driving prices sharply higher, placing severe pressure on energy-importing economies in Europe and Asia and fueling inflation worldwide. Maritime trade is also under strain, as heightened risk prompts longer shipping routes, increased freight rates, and rising war-risk premiums. These disruptions ripple through global supply chains, pushing up the cost of goods far beyond the energy sector.

Insurance costs for shipping and aviation are soaring as large zones are designated high-risk or even excluded from coverage, further elevating transport costs and pricing out smaller operators. Together, these pressures constitute a systemic economic shock: industrial production costs rise, supply chains fragment, and trade volumes contract, stressing manufacturing, logistics, and consumption simultaneously.

The cumulative effect is already slowing global growth. Major economies such as the EU, China, and India face slower expansion, while import-dependent states risk recession. Trade-driven sectors are contracting, reinforcing a scenario of high inflation and stagnating growth. Air travel is also impacted, with restricted airspace, higher fuel prices, and elevated insurance premiums driving up ticket costs and lengthening travel routes. Rising energy prices, logistics bottlenecks, and increased production costs are pushing up food prices and cost-of-living pressures, potentially forcing central banks into tighter monetary policy and slowing growth further.

Finally, global manufacturing—from chemicals and plastics to agriculture—is experiencing ripple effects as supply chain disruptions intensify shortages and price increases. The conflict in the Persian Gulf is thus not only a regional security crisis but also a catalyst for broad, interconnected economic disruptions that are reverberating across markets, trade networks, and everyday life worldwide.

(To be continued)