Editorial
The way the papadam crumbles
When the five days long stretch of holidays ended last week and the Colombo bourse reopened for trading on Tuesday, the market surged 6.71 percent (633.69 points up) on the broad All Share Price Index (ASPI) while the Standard and Poor SL 20 index covering the 20 largest and more liquid companies quoted on the Colombo Stock Exchange (CSE) leaped 10.29 percent (279.57 points). The ASPI surge was the second highest single day gain since the civil war ended in 2009. Furthermore, the ASPI crossed what market analysts call the 10,000 point “resistance level” for the first time since September 15, 2022, with the day’s market turnover at Rs. 7.42 billion being the highest daily turnover for the year.
President Ranil Wickremesinghe had good reason to celebrate the market reaction to the ongoing debt restructuring and optimization efforts, both foreign and domestic, which had comfortably cleared the parliamentary hurdle the previous Saturday. This was the first time the House had ever sat on a Saturday. A run on the banks, feared by some was attributed to June 30 being declared a special bank holiday to neatly slot into the weekend and two public holidays as a precautionary measure against such an eventuality. This may have been unnecessary, analysts opined after the event. However that be, the performance of financial market including bills and bonds once the total picture was unveiled leaves room for satisfaction. Fears of members of the Employees Provident Fund (EPF), long a captive lender to government, taking a blow in the short to medium term have also receded.
While the country situation has improved immeasurably since last year when both President Gotabaya and Prime Minister Mahinda Rajapaksa vacated office – the president can take most of the credit for that – acute hardship especially on the cost of living front is very much with us. Even the middle class is in a tight bind and the plight of the poor, among them daily wage earners, is almost unimaginable. True, there are occasional favourable newsbytes like a decline in inflation promised to recede further during the course of this year. But anybody shopping for essential groceries are all too aware of prevailing reality.
The rupee strengthened against the dollar and other hard currencies but inevitable market fluctuations remain a fact of life. Cooking gas prices were lowered a few days ago, motor vehicle fuel prices were lowered but since adjusted upward at least where the high demand 92 octane product was concerned. The lower end of the spectrum of electricity consumers will get some much needed relief this month. Taxes have been doubled and prices of some previously unavailable goods have doubled and tripled but the worst fears have not materialized.
We run today a news story about Sri Lankan’s “jumping ship,” leaving the country in droves in a process that began to accelerate in the middle of last year. According to data maintained at the Sri Lanka Foreign Employment Bureau (SLFEB), 122,000 Lankans left the country for work in 2021. This jumped to 311,000 last year. In the first five months of 2023, as many as 122,000 foreign job seekers – same as in the whole of 2021 – had left. Officials admit that these figures may be under-stating reality as many people leaving for Middle Eastern jobs and employment elsewhere in Asia leave on tourist visas and are not registered at the SLFEB. The losses include skilled workers and professionals.
As Central Bank Governor Nandalal Weerasinghe, recalled from retirement in Australia, has said in an interview we run today on the macro-economic picture (see page 11) that the more difficult part of salvaging Sri Lanka’s economy will be the restructure of domestic debt while navigating a political minefield. He is quoted saying: “This is the most challenging part of debt restructuring. It is very politically sensitive, socially sensitive and also there is some impact on domestic (bond) holders,” The process of doing this difficult job has already begun and it must be unequivocally said that Sri Lanka is fortunate that an apolitical professional central banker is at the helm of driving it forward. Undoubtedly it will be no smooth ride and obstacles will surely surface along the way. How well this process will be navigated is an open question with President Wickremesinghe now making fairly clear that he is looking for a second term, this time elected by the people, come November 2024. This would entail sometimes taking decisions aimed at winning votes subordinating the national interest. Depending entirely on what the situation was at the height of the aragalaya, and what it is when people next go to the polls will not be enough.
Whether the government will press on with last week’s attempt via an SLPP Private Member to reconvene local bodies whose tenure has ended remains to be seen. This has revolted most Lankans already seething at their being denied these elections after nominations closed on the excuse there was no money to run them. It must be said in fairness to the president that he may have nothing whatever to do with this attempt to reconvene local bodies which may be a wholly an SLPP affair, allegedly directed by Basil Rajapaksa, that party’s national organizer. Members of local bodies are useful storm troops at election time and this most likely is what’s behind that move. But is the SLPP thinking of running its own candidate at the next presidential election rather than backing RW who its MP’s elected to the presidency in July 2022? However several SLPP MPs have already pledged allegiance to Wickremesinghe.
Editorial
Colombo Port facing strategic neglect
Wednesday 17th December, 2025
The Colombo Port is always in the news for the wrong reasons. More than 300 container trucks loaded with cargo are waiting within its premises due to a clearance delay, according to a report we published yesterday. The Container Transport Vehicle Owners’ Association has urged the government to take action to eliminate the port delays forthwith. It has warned that there will be a shortage of essential commodities soon if delays persist. Additional expenditure incurred by the truck operators due to port delays will be passed on to the public, the association has said. One of the reasons for these delays is said to be the inflow of disaster relief materials that need to be cleared on a priority basis. However, the Colombo Port experiences delays even when there is no influx of disaster relief.
Port delays take a heavy toll on exports as well. As we have pointed out in a previous comment, quoting a former Navy officer, the Coast Guard personnel are qualified to handle Customs operations and they can be called in to help ease port congestion. The government should seriously consider doing so.
In January 2025, protracted delays in the Colombo Port jolted the government into purportedly devising ways and means of doing away with them. But the problem is far from over. The government made use of the delays to have 323 red-flagged containers released via the green channel without Customs checks. The possibility of racketeers making the most of the current situation to have containers carrying contraband green-channelled cannot be ruled out. The Opposition, the media, trade unions and port workers must remain vigilant to thwart such a move.
Delays drive away major shipping lines. It has been reported that several international shipping lines have opted to bypass the Colombo Port, which is facing escalating congestion due to various factors related mainly to capacity and efficiency.
What the NPP government and the top port officials must realise is that the Colombo Port is not the only girl on the beach, as it were. India’s newly built Vizhinjam port is becoming a major attraction for international shippers who are averse to delays. In global logistics, shipping lines place very high value on on-time delivery, reliability and efficient operations.
Vizhinjam poses numerous challenges to the Colombo Port. The government must take cognisance of this reality and make a serious effort to enhance the efficiency and capacity of the Colombo Port to retain the transhipment traffic historically routed via Colombo. There is a strong possibility of shipping lines rerouting feeder services away from Colombo to Vizhinjam, adversely impacting Colombo’s network role, as shipping experts have warned.
Vizhinjam has several key advantages over Colombo. It advertises itself as a deep-water port with a 24 m natural draft, which enables it to accommodate ultra-large container vessels without dredging; its proximity to the main east–west shipping route helps vessels to call without significant deviation, reducing voyage time and costs. Automation, modern cranes, faster turnaround times, enhanced operational efficiency and attractiveness to shipping lines are other advantages India’s new port has over Colombo.
Experts have urged Sri Lanka to adopt a viable mitigation strategy to face competition from Vizhinjam effectively. The Colombo Port has to enhance its efficiency, cost proposition, capacity, and service differentiation, while strengthening its role as a comprehensive logistics and maritime hub rather than a pure transshipment stop, they have pointed out. Sadly, successive governments have ignored expert opinion and done precious little to retain the Colombo Port’s competitiveness, much less prepare it to face future challenges. They have only adopted piecemeal remedies and, worse, turned the premier port into a playground for rival global powers.
The incumbent government has failed to make a difference despite its rhetoric. If strategic modernisation and operational improvements are not effected to the Colombo Port urgently to enable it to eliminate delays and enhance its efficiency and the quality of its service significantly-à-vis the emerging rival facilities in the region, it will run the risk of diminishing its relevance.
Editorial
Bondi Beach and Arugam Bay
Tuesday 16th December, 2025
It was with shock and dismay that the world received the news about Sunday’s cowardly terror attack on a group of Israelis in Australia. Sixteen lives were lost and about 40 others injured in the Bondi Beach mass shooting, which followed an increase in anti-Jewish incidents in Australia after Israel’s invasion of Gaza, where 70,000 Palestinians have perished at the hands of the Israeli military.
Israel has doubtlessly made Hamas regret its 2023 incursion, indiscriminate killings and mass hostage-taking. But the Netanyahu government has incurred much international opprobrium by unleashing disproportionate violence and carrying out attacks on civilian targets. Worse, the Bondi Beach attack has demonstrated the growing vulnerability of Israeli citizens overseas.
Hamas has had to agree to a ceasefire, and faces the prospect of having to disarm. Israel may obliterate Gaza, but victory will still elude it. Hamas may carry out more attacks on Israel, and its sympathisers may target Israeli civilians, but Palestinians will not benefit from such acts of violence. Only peace will benefit the warring sides and civilians. The problem is best tackled at source.
The need of the hour is for the world to strengthen the Gaza ceasefire and make it work by ensuring that both sides refrain from violating it. That is what US President Donald Trump was expected to do. Last month, the United Nations Security Council adopted a US-sponsored resolution that enshrined Trump’s 20-point plan, including the mandate to set up a multinational force for Gaza, but not a single nation has formally committed troops to it yet, according to media reports.
Unfortunately, instead of intensifying his focus on resolving the Gaza conflict and other disputes in keeping with his pre-election pledges, President Trump appears to be busy enacting scenes from Pirates of the Caribbean, hijacking ships and sinking boats off Venezuela, while eying the Nobel Peace Prize, of all things.
Meanwhile, Sri Lanka must keep its guard up. There are Israeli tourists here. In October 2024, the US embassy, followed up by Sri Lankan police and Israel’s National security council, warned of serious terrorist threats to Israelis holidaying in the Arugam Bay area. Thankfully, what was feared did not come to pass, but no room must be left for complacency.
Sri Lanka must take the Bondi Beach attack as a warning and brace itself for any eventuality. A terror attack on its soil is something it needs like a hole in the head while struggling to manage the impact of a natural disaster and keep the economy on track.
The economic cost of the Ditwah disaster has not yet been calculated, but Commissioner General of Essential Services Prabath Chandrakeerthi has given a ballpark figure—USD 6 -7 billion or about 3 – 5 percent of GDP. This is a staggering amount. The economic crisis is far from over. The government has its work cut out to allocate funds for rebuilding programmes and is therefore seeking assistance from other nations. But whether foreign aid will be sufficient for the post-disaster reconstruction projects in all 25 districts, affected by Ditwah, remains to be seen, as we argued in a previous comment. The country is therefore heavily dependent on tourism to shore up its foreign currency reserves. One may recall that the 2019 Easter Terror attacks crippled the tourism sector, and contributed to the forex crisis by depriving the economy of billions of dollars a year.
Sri Lanka cannot take any more shocks, and everything possible must be done to neutralise threats to its national security and prevent it from suffering the same fate as the proverbial man who was gored by a bull after falling from a tree.
Editorial
“Smell of Power”
Monday 15th December, 2025
The government hurriedly launched a social media campaign on Friday to gain political mileage out of the arrest of NPP MP Asoka Ranwala involved in a road accident. Its propagandists boasted that the rule of law had been restored, and everyone was now equal before the law. But they were left red-faced when Ranwala was granted bail soon afterwards. Worse, it was revealed that the police had not made Ranwala undergo an alcohol test immediately after the accident on Thursday night and waited until Friday noon to do so.
An otherwise articulate Police Spokesman ASP F.U. Wootler cut a pathetic figure when journalists asked him why no alcohol test had been conducted on former Speaker Ranwala immediately after the accident to determine whether he was drunk. The police have trotted out some lame excuses for dragging their feet. Thanks to their subservience to the ruling party, the police always have to defend the indefensible whenever a government politician commits a transgression.
An infant, his mother and grandmother were injured in Thursday’s crash. While the police are drawing heavy fire for the despicable delay in arresting Ranwala and making him take a blood alcohol test, the victims’ family members are demanding justice. JVP/NPP politicians are making various statements and pledges in a bid to obfuscate the issue and mislead the public, but to no avail.
The unfolding Ranwala drama, as it were, reminds us of an accident involving a JVP heavyweight during the Yahapalana government in 2016. JVP MP Vijitha Herath was arrested over a road accident where his vehicle went out of control and crashed into a wayside telephone post. He was subsequently released on police bail. The Judicial Medical Officer reportedly mentioned in his report that Herath had been smelling of liquor at the time of examination. However, the Colombo Additional Magistrate acquitted Herath of the drunk-driving charge in keeping with a legal precedent, but ordered him to pay Rs. 1,500 as state costs. Herath was also ordered to pay Rs. 17,400 for the damaged telephone post. Herath vehemently denied that he had consumed alcohol. The JVP was a partner of the Yahapalana government, in all but name.
Is it that the politicians in power and their kith and kin never drive under the influence of liquor and they only drive while ‘smelling of liquor’! The police ignore that smell. They take alcohol tests, if at all, hours after causing accidents! There are allegations of blood and urine samples being swapped to help the politically-connected suspects evade drunk-driving charges.
The JVP-led NPP has demonstrated that it has no qualms about interfering with the legal process to let its members off the hook in spite of its moral grandstanding and pledges to restore the rule of law. Head of the Retired Police Collective of the JVP/NPP, former Senior DIG Ravi Seneviratne, arrested for causing a multiple vehicle collision under the influence of alcohol in Colombo in 2023, had the drunk driving charge against him dropped after his elevation to the current position. The Police Department is currently under him; a fish is said to rot from the head down.
President Anura Kumara Dissanayake has taken upon himself the unenviable task of mitigating the adverse political impacts of his MPs’ endless blunders and transgressions. It has become a Sisyphean ordeal for him. Now, he will have to rush to Parliament again and try to control the political damage the controversy over Ranwala’s accident has caused to the government. He has to make damage-control speeches at such a rate that while sprinting into Parliament for that purpose, he might collide with himself coming out, as in a cartoon.
Upon witnessing the blatant manipulation of the legal process and the subversion of the ideals of equality and justice under the current dispensation, one wonders why JVP/NPP does not adopt the credo of the pigs in Orwell’s Animal Farm and declare that all Sri Lankans are equal, but those who are JVP/NPP members are more equal than others.
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