Features
The Tightrope Walk on Decentralised Finance and Cryptocurrencies

By Charith Gamage
Cryptocurrencies together with Decentralised Finance (DeFi), the finance ecosystem that extends cryptocurrencies into banking territory, can positively impact developing countries. But it is not quite so straightforward and is still a double-edged sword for developing markets like Sri Lanka. So, how should the country position itself to face the key challenges ahead?
Since its inception following the Global Financial Crisis in 2007-2008, as an alternate digital asset, cryptocurrency has always been a two-edged sword, abundantly subjected to scepticism.
Some of this scepticism has a rationale behind it. Cryptocurrencies do not have an underlying cash flow, such as that for stocks of firms, nor do they have an inherent material value, such as for assets like gold. Being located inches away from the regulatory radar, they can also be equally prone to criminal activities. If that is not enough, bitcoin mining, the process by which new transactions are validated on the network, consumes a lot of energy. So, despite being a crypto enthusiast, even billionaire Elon Musk once stated, it has an environmental impact, too [1].
In the face of these challenges, the recent cryptocurrency price surge with the Covid-19 Pandemic has taken many by surprise. What caused the market to embrace them, spearheaded by its most popular type, Bitcoin’s spiralling 600%+ rally? According to crypto proponents, the value stems primarily from its design that can self-sustain as an alternative decentralised system to the traditional systems. In other words, the market is ready to pay the price for its ability to function as an asset over which no centralised person or authority has control. So, the claim, as the pandemic engulfed global economies, is that investors may have lost faith in central bank policies and their pursuit for an alternate asset that has resulted in this price movement.
DeFi, on the other hand, extends this concept and allows cryptocurrencies to function in a decentralised banking environment that may even have immense benefits to developing countries. As the debate continues, it is worth finding out more on the recent emergence of DeFi; how could it unlock the potential of Emerging/Frontier markets, and at what cost? What are the key hurdles to pull the meat from the bone moving forward?
What is DeFi, and how does it work?
The idea of DeFi is more broad-based than one of its workhorses, cryptocurrencies, which most are familiar with as a medium of exchange or store of value, and it builds on a fundamental structure known as the blockchain. The system allows it to operate without the need for intermediaries, such as traditional financial institutions like conventional commercial banks, brokerages, and of course, authorities such as central banks. However, it has its own ecosystem that recreates the traditional financial system. So, it is logical to say that DeFi refers to the decentralised banking and financial system that the technology is based on and includes components such as lending and borrowing services for cryptocurrencies (and many more). To put it simply, it is an alternative banking system in the digital space with digital currencies that has no middlemen (such as commercial or central banks who have controlling power) and with rules that are already written into it. Today, it mostly runs on the Ethereum blockchain, the second most popular currency after Bitcoin. DeFi has rapidly evolved in recent years, and, for example, Aave, Marker, and Curve Finance are the biggest lending systems in this space, with the sum of all assets deposited in DeFi closer to 45 billion USD [2].
Without banks or lawyers, as in the traditional financial system, DeFi is built with smart contracts, a self-executing contract built on the blockchain when predetermined conditions are met, and allows economic agents such as the general public and firms to engage in banking activities.
Because this architecture differs fundamentally from bringing the same traditional banking into the digital space, as happens in online banking, many can see that it will benefit developing countries when traditional financial systems fall apart. Nevertheless, it comes at a cost, where the country needs to overcome challenges to harness its potential.
Why exploring DeFi is pronounced in emerging and developing markets
It is not a secret that the lack of financial intermediation in the developing world under the conventional system hinders their economic potential. Although Sri Lanka’s unbanked population (26%) is somewhat lower than the global average (31%), it is unclear how certain groups’ failure to conform to formal regulations and paperwork around these institutions distances them from the entire expected services they desire (Data Source Findex 2017). On the other hand, economic agents have fewer investment opportunities to invest their wealth for a better return in economies with underdeveloped markets. DeFi seems to have better answers to those questions.
For example, a UNICEF project shows that DeFi can uplift those lives [3]. The project, Satchel, a Blockchain-based DeFi service created by a research group from Berkeley, helps fulfil the financial needs of those underprivileged communities by allowing them to pool their funds together and earn interest. The concept could be extended to pool their money and lend it out to small businesses; in this way, the community can use the interest earned for their purposes while the local small businesses fulfil their funding needs. So, DeFi can thus give an alternative, if not more than that, to regular banking, for small businesses and communities in rural regions, even if they are unable to satisfy the criteria of traditional banking.
Apart from improving financial inclusion among rural communities, DeFi clearly has other benefits with proper education, such as an efficient cross-border fund transfer for businesses and remittances. Sending remittance through cryptocurrency can gain more attention in the future as a low-cost solution for ordinary remittance transfers and currency conversions that can eat up as much as 7% of those flows. Also, DeFi can be easily integrated with the Universal Basic Income (UBI) programmes discussed in a previous article that empower low-income communities to lead the economy[4].
Most importantly, decentralisation allows the market to gain alternative power over the ability of traditional institutions to control the market by devaluing or increasing the money supply or by imposing unhealthy regulations on certain sectors. This balance could be healthy for the economy as it brings competition to the market over the conventional institutions.
What are the key challenges to be solved?
Although DeFi has the potential to boost economic activities, proper integration with society needs much more effort, including the development of digital infrastructure and literacy. A recent Daily FT editorial highlighted this challenge, citing that digitisation efforts will not be fruitful unless the underlying foundation is strengthened [5].
In addition, the emergence of an alternate banking system via DeFi can cause unprecedented challenges to economies. Of course, it can create “systemic risks” and propagate instabilities in conventional financial systems, depending on how interlaced they are. Having dominated the conventional monetary system, they can also lessen the effectiveness of the monetary tools and power of the institutions such as central banks. Although these discussions are still rudimentary, given that economics related to DeFi have not been tested at scale, they will be more hot topics as the technology grows.
On the other hand, DeFi regulation is one of the most daunting tasks, as exemplified by the experiences of many countries that are currently trying to combat it. At the moment, bringing capital gain income from crypto assets under the tax net, regulating crypto exchanges to avoid the misuse of technology, and curbing phoney cryptocurrency schemes, are the most popular topics in this space. Meanwhile, a Forbes article, citing an expert report by Chainalysis, shows that crypto in criminal activities is not as large as commonly believed [6]. While this fraction was deficient, 2.1% in 2019 and 0.34% in 2020 out of the total transaction volume, the article shows that the traditional non-crypto methods may still facilitate illicit activities much more frequently than these methods. Although this is a positive indication for authorities to welcome the technology, there is no guarantee that they would be exacerbated in the developing nations with relatively weaker institutions once popularised. With that being said, the overregulation approach may not be the best answer, but the easiest and costliest approach that wipes out complete benefits in the dash for DeFi.
The Way Forward
Despite the debate around cryptocurrency, the decentralised currency together with DeFi, the alternate decentralised financial system, undoubtedly can cause a significant impact on the developing world to increase the productivity of those economies. In particular, it is more pronounced to allow financial intermediation for those who found refuge under the conventional system for various reasons. It has gone mainstream now on Wall Street while top-level universities and researchers are involved in the development, despite all chaos surrounding cryptocurrency. More importantly, the underlying technology, blockchain, is considered one of the most promising emerging technologies at the moment.
From the Sri Lankan perspective, now it seems the government insists on looking deeply at the crypto and blockchain space[7]. This initiative is a positive sign and, if successful, will be a good foundation for exploring the ecosystem, DeFi, more broadly and carefully for better policies.
Not to mention, diving down the rabbit hole of DeFi requires a cohesive approach strengthening the digital infrastructure, facilitating a healthy Conventional-DeFi integrated ecosystem, hunting for policy instruments to combat the knock-on effects, and establishing a healthy and supportive regulatory framework. So, it will help the country shape the landscape to stay on par with the peer trading partners trying to reap the full potential of the technology under a controlled environment, and, of course, without blindly embracing it nor throwing out the baby with the bathwater.
The writer, a former Senior Assistant Director of the Central Bank of Sri Lanka, is a PhD candidate attached to the Monash University, Australia. He pursued his undergraduate studies in Engineering from the University of Moratuwa and graduate studies in Finance/Economics from the University of California, Berkeley, USA and the University of New Mexico, USA. He would like to thank Abigayle Goldstein (Lobo Friends Program at UNM) for commenting on the article and helpful suggestions. The views and opinions expressed in this article are those of the writer, and he could be reached via charith.gamage@monash.edu
Features
US withdrawal from UNHRC, a boon to political repression and ultra-nationalism

The US’ reported withdrawal from the UNHRC and some other vital UN agencies could be seen as a fillip to anti-democratic and ultra-nationalistic forces worldwide. Besides, the stark message is being conveyed that the developing regions of the world would from now on suffer further impoverishment and powerlessness.
The UNHRC needs to be more effective and proactive in bringing to book those states that are lagging in upholding and implementing human rights standards. But thus far it has been notable in the main in only ‘naming and shaming’ periodically those countries that stand accused of human rights and associated violations. More states and their rulers who have proved notorious violators of International Law, for instance, need to be brought to justice.
Hopefully, the UNHRC would be more dynamic in carrying out its responsibilities going forward but it needs material, moral and financial sustenance in increasing measure as it goes about trying to implement its brief. By withdrawing its support for the UNHRC at this juncture the US has further weakened the body and thereby provided a stimulant to the forces of repression worldwide.
What ought to be equally disquieting for the ethically-conscious is the withdrawal of US support for the WHO, the UN agency for Palestinian refugees or the UNRWA and the Paris Climate Agreement. With these actions the US under President Donald Trump has forfeited all claims to being the world’s foremost democracy. It could no longer lead from the front, so to speak, in championing human rights and democratic development.
It is no coincidence that almost at the time of these decisions by the US, President Trump is meeting with Israeli Prime Minister Benjamin Netanyahu. At the time of writing what transpired at these talks is not known to the public but it is plain to see that under the ultra-rightist Israeli Prime Minister, there would be no easy closure to the Middle East conflict and the accompanying blood-letting.
This is in view of the fact that the hawkish Trump administration would be hand-in-glove with the Netanyahu regime right along. There would be no political solution in the foreseeable future nor could it be guaranteed by the main stakeholders to the Middle East question that the current ceasefire would continue.
As mentioned in this column before, Israel would need strong security guarantees from the Palestinian camp and its supporters before it sits earnestly at the negotiating table but a policy of repression by the Israeli state would in no way help in resolving the conflict and in ushering even a measure of peace in the region. With the staunch support of the Trump administration the Netanyahu regime could stave off Palestinian resistance for the time being and save face among its supporters but peace in the Middle East would continue to be a lost cause.
The issues in focus would only be further compounded by the US decision to cease support for the rehabilitation and material sustenance of Palestinian refugees. This policy decision would only result in the further alienation and estrangement of Palestinians from the Western world. Consequently, Intifada-type uprisings should only be expected in the future.
As should be obvious, the US decision to pull out of the WHO would further weaken this vital agency of the UN. A drop in material, medical and financial assistance for the WHO would translate into graver hardships for the suffering civilians in the world’s conflict and war zones. The end result could be the alienation of the communities concerned from the wider international community, resulting in escalating law and order and governance issues worldwide. Among other things, the world would be having on its hands aggravating identity politics consequent to civilian publics being radicalized.
Considering the foregoing, the inference is inescapable that the US is heading in the direction of increasing international isolation and a policy of disengaging from multilateral institutions and arrangements geared to worthy causes that could serve world peace. As matters stand, it would not be wrong to conclude that the Trump administration is quite content with the prevailing ‘international disorder’.
One of the most negative consequences of the US decision to pull out of the UNHRC is the encouragement the forces of repression and ultra-nationalism could gain by it. In almost all the states of South Asia, to consider one region that is notable from this viewpoint, the forces of ultra-nationalism and majoritarian chauvinism could be said to be predominant.
Unfortunately, such forces seem to be on the rise once again in even post-Hasina Bangladesh. In Sri Lanka these forces are somewhat dormant at present but they could erupt to the surface, depending on how diligently the present government guards against their rise.
However, the government of Sri Lanka could not be said to be going the extra mile currently to blunt the appeal of ultra-nationalism, whether it is of the Southern kind or of the Northern kind. Crunch time for the Sri Lankan state would come when it has to seriously cooperate with the UNHRC and help bring those accused of war crimes in Sri Lanka to justice. On whether it could cooperate in this exercise would depend the democratic credentials of the present regime.
The cumulative result of the Trump administration weakening the UN and its agencies would be the relentless rise of anti-democratic, fascistic and repressive regimes the world over. Given this backdrop, one could expect the war in the Ukraine and those wasting civil wars in Africa to rage on. In the case of the Ukraine, the possibility of the US and NATO not being of one mind on ways of ending the war there, could render closure of the conflict any time soon impossible.
However, waiting on the US with the expectation that it would be pulling itself together, so to speak, before long and addressing the issue of international law and order would be tantamount to handing over the world to a most uncertain future. It is highly unlikely that the Trump administration would prove equal to the challenge of bringing even a measure of order out of the current global chaos, given the primacy it would be attaching to what it sees as its national interest.
Rather than wait in suspense, democracy oriented sections the world over would do well to come together in a meeting of minds, with the UN playing a catalytic role in it, to figure out how they could pool all the resources at their command to bring about a world order that would be more respectful of International Law in word and spirit.
Features
‘The Onset: A Short Story’: A philosophical drama attempting to redefine perception and cinema

Debut filmmaker, Thevin Gamage, presents a bold challenge to the time-honoured conventions of cinema. Through his daring short film, Thevin invites audiences to reconsider ‘the truth’ of cinematic rules. The 180-degree rule is broken with seamless subtlety, and a fresh perspective is offered on breaking the fourth wall.
This 13+ minute dialogue-driven drama, ‘The Onset: A Short Story’ featuring two actors and created with the collaboration of a debut cinematographer, was shot entirely in his living room—a testament to ingenuity and creative audacity.
The film not only aims to redefine the language of cinema but also thematically contests one of Plato’s most renowned teachings—The Allegory of the Cave. Thevin offers a fresh lens to examine ‘truth’ blending bold cinematic innovation with a philosophical exploration of perception, arrogance, and enlightenment.
At its heart, this story reflects the universal tension between belief and truth, highlighting the cost of breaking free from illusions. His debut is both a defiant act of rebellion and a bold invitation to shape the evolution of future cinema, leaving audiences with as many questions as answers.
Born into a family of artists in Sri Lanka, Thevin, grew up surrounded by a legacy of creativity yet confined by the traditional expectations of society. His parents achieved success as actors and later as entrepreneurs.
For Thevin, questioning the rules was not rebellion for its own sake—it was a search for freedom, truth, and new perspectives. This drive began in childhood, where strict parental expectations collided with his innate creativity. Movies became his escape, a lens through which he experienced life, love, and possibility.
Yet it wasn’t until his late twenties, after years of academic success and professional detours that he finally embraced his calling as a filmmaker. His audacious short film bridges his personal journey with his artistic vision. By breaking the 180-degree rule and redefining the fourth wall, the film demonstrates that cinematic rules can evolve—not as acts of rebellion, but as purposeful explorations of storytelling.
In the spirit of art and its boundless novelty, Thevin Gamage seeks to induct exactly that: originality.
His debut film is a bold exploration of cinematic boundaries and philosophical inquiry, redefining two foundational principles of cinema. This film invites audiences to experience a narrative that subtly bends the historical rules of the 180-degree rule and the fourth wall—often without them even realizing it.
This debut dares you.
It’s a resolute challenge to tradition and a provocative reminder that “rules” are just a few letters that form a word.
****
About young filmmaker

Thevin Gamage
Thevin Gamage is a South Asian filmmaker whose journey reflects both a profound reverence for tradition and an unrelenting desire to transcend it.
Born into a family of artists in Sri Lanka, Thevin was shaped by a legacy of creativity and resilience. His grandfather, Sri Lanka’s first film makeup artist, pioneered his craft with remarkable dedication, laying the foundation for a family deeply rooted in the arts. Though Thevin never met him, his grandfather Regie de Silva’strailblazing work ethic and passion for storytelling helped shape the family ethos, inspiring Thevin’s mother and, in turn, Thevin himself. Reggie was the first Sri Lankan makeup artist. He went to India for his studies in makeup artistry and was active during the era when B.A.W. Jayamanne and Rukmani Devi pioneered the Sri Lankan film industry.
Thevin’s mother, Kumudumali De Silva, a celebrated Best Supporting Actress winner two decades ago and recent Lifetime Achievement Award honoree for her contributions to the wedding industry, met his father, Nihal Gamage, while on set. Together, they transitioned from the entertainment industry to entrepreneurial success, founding a wedding photography and bridal dressing business. Their ventures flourished, even leading to the publication of their own wedding magazine, providing a middle-class life of success and recognition.
Despite these creative roots, societal expectations in Sri Lanka compelled Thevin to pursue academics. After excelling at the University of Toronto with a degree in Political Science, Economics, and Psychology, Thevin still yearned for storytelling. In his late twenties, after years of professional detours, he enrolled in film school and committed fully to his craft.
Operating outside the framework of traditional film production companies, Thevin embraced the challenges of independence. From conceptualization to execution, his debut film is a testament to his determination, ingenuity, and unwavering commitment to his vision. His journey as an independent filmmaker exemplifies the power of creative freedom to challenge norms and shape unique perspectives.
Thevin’s work invites audiences to question, reimagine, and ultimately transform their understanding of storytelling. His journey is not just one of artistic pursuit but an act of defiance—an effort to inspire others to embrace the power of the arts and forge paths beyond traditional norms.
Features
Top three at 40th Mrs World pageant

While South African model Tshego Gaelae becomes the first Black woman to win the Mrs. World title in its 40-year history, we, too, were in the spotlight, at the finals.
Ishadi Amanda took the No. 02 slot, being the first runner-up at the prestigious pageant, held in Las Vegas, USA, from 29-30 January, 2025.
Thailand’s Ploy Panperm was placed third, as the second runner-up.
Sri Lanka’s Ishadi had support from the audience when her name was announced as one of the three finalists.
The Mrs World pageant winner, from South Africa, expressed her thanks on Instagram, saying, “To God be the glory. Thank you so much for the love and support, I am beyond grateful and elated! My beautiful South Africa, the crown is coming home,” she shared with her followers, encapsulating her elation and gratitude.
The Mrs World pageant, established in 1984, stands as the first international beauty contest solely for married women, providing a platform for married contestants to showcase not just their beauty, but also their intellect and community outreach efforts.
Before being picked as the winner, Mrs South Africa was asked: “What is the biggest challenge you have faced and achieved?” And her answer was brilliant:

Rosy Senanayake: Mrs World 1984
“I was so stressed on social media. Social media people should use it to share knowledge and good things. But it’s used to stress people out. But I stood up for myself without that social media pressure. I used the same social media that stressed me out to share good thoughts and hope to get to the victorious place I am today.”
Gaelae’s success is a testament to the ideals celebrated by the pageant, where diversity and empowerment take centre stage.
Gaelae balances her roles as a devoted mother, wife, labour relations manager, and model.
Being the first black woman to clinch the title at the Mrs World pageant has ignited a sense of pride and celebration among South Africans.
The Mrs South Africa Organisation, which played a crucial role in supporting Gaelae’s remarkable journey, also expressed their pride through a statement: “From Soweto to Vegas and now the World, @mrsworldpageant The Crown is Coming Home! Thank you to everyone who supported our queen on her incredible Journey.”
Gaelae returned home to a triumphant celebration fit for a queen.
At the airport to welcome her were her family, friends, church community, the Mrs South African team board and alumni, and the Executive Mayor of Johannesburg.

The crowning of the 40th Mrs World winner
And, guess what? Gaelae is now in touch with me!
Second Runner-up Mrs Thailand Ploy Panperm is quoted as having said: “I believe that modern married women have the potential to excel in multiple roles – as wives, mothers and even as beauty queens – embodying intelligence, talent and beauty.”
For the record, it was our very own Rosy Senanayake who brought Sri Lanka fame at this pageant … being crowned Mrs World at the very first Mrs World pageant, in 1984.
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