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Midweek Review

US funding for Colombo port project involving Adani group and JKH in the balance

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US International Development Finance Corporation (DFC) CEO Scott Nathan and US Ambassador to Sri Lanka Julie Chung at West Container Terminal site in early Nov. 2023. The visit took place in the wake of the US announcement of a $553 mn loan to Colombo West International Terminal Private Limited (CWIT). Adani group partly owns CWIT (pic courtesy US embassy)

Gautam Adani

In response to US indictment, Adani has declared that his conglomerate is committed to “world-class regulatory compliance.” The international media quoted one of the world’s richest as having said: “This is not the first time we have faced such challenges. What I can tell you is that every attack makes us stronger. And every obstacle becomes a stepping stone for a more resilient Adani Group.”

Adani said so at an awards ceremony in Jaipur.

By Shamindra Ferdinando

Dr. Ganeshan Wignarajah, in his capacity as an advisor to the Sri Lankan President, and member of the Geopolitical Cartographer board, as mentioned in the latest Indo-Pacific Defence Forum, dealt with the ongoing economic-political-social crisis here.

Dr. Wignarajah, who had served as the Executive Director of the Lakshman Kadirgamar Institute (LKI) during the Yahapalana administration, quite confidently asserted (i) economic mismanagement (ii) Chinese loans and (iii) Covid-19 and other external shocks caused the unprecedented crisis.

The quarterly, published by the Commander of the U.S. Indo-Pacific Command, is meant to promote their overall political-military and social strategy in the Indo-Pacific region.

The Sri Lankan-born academic, in his article titled ‘Partners for Progress: Sri Lanka works with India, U.S. to bolster economy, stability,’ examined the developing situation here against the backdrop of, what he called, Chinese debt trap diplomacy. China has strongly refuted such accusations over the years. We haven’t forgotten the verbal battle between Yahapalana Finance Minister Ravi Karunanayake and the then Chinese Ambassador Yi Xianliang over the former’s disparaging remarks on interest rates on loans provided by China. This was in late 2016, several months after the second mega Treasury bonds scam, perpetrated by the Premier Ranil Wickremesinghe-led government.

Dr. Wignarajah conveniently refrained from making reference to over USD 10,000 million in new International Sovereign Bonds that had been taken between 2015 and 2019, following the change of government. Former President Mahinda Rajapaksa is on record as having declared procurement of USD 10,000 million, by the Yahapalana leaders, broke the back of the Sri Lankan economy. Instead, the academic cleverly hid the Yahapalana borrowings. Dr. Wignarajah declared (in verbatim): “Sri Lanka’s default demonstrates the risk of imprudent foreign borrowing, with relying on sovereign bonds with high interest rates to finance development projects or high-interest, low return Chinese loans.’’

As the article had been formulated before the presidential election that was held on Sept. 21, 2024, the professorial fellow in economics and trade at Gateway House, Mumbai, missed an opportunity to examine post-national poll developments.

The unexpected emergence of the National People’s Power (NPP), as the dominant political power, at the expense of the Sri Lanka Podujana Peramuna (SLPP) and the United National Party (UNP), according to some, may change the dynamics of Sri Lanka’s relations with the US-led grouping that includes India. However, others assert that bankrupt Sri Lanka has no other option but to continue with the IMF agenda and an agreement on economic partnership, signed in July 2023, by Premier Narendra Modi and the then President Ranil Wickremesinghe.

Wickremesinghe, who suffered a humiliating defeat in the presidential poll on September 21, and then at the parliamentary elections on Nov. 14, 2024, emphasized the responsibility on the part of his successor Anura Kumara Dissanayake to fully implement, what he called, the ‘Vision document’ with India.

The Press Trust of India (PTI) quoted Wickremesinghe as having said so on the sidelines of an event he attended at the Sri Sathya Sai Vidya Vihar school recently.

The SLPP-led Parliament that elected Wickremesinghe as the President in July 2022 to complete the remainder of President Gotabaya Rajapaksa’s five-year term, owed the country an explanation whether the former received the approval of the Cabinet to finalize the so-called ‘vision document.’ The latest Indo-Lanka agreement dealt with strengthening maritime, air and energy ties, as well as land connectivity between the two countries. There hadn’t been a proper discourse, at any level, regarding the ‘Vision document,’ though various interested parties promoted the controversial ‘Vision document’ in the run-up to the presidential election.

On behalf of India, Pathfinder Foundation requested the leading candidates at the presidential election, namely Ranil Wickremesinghe, Sajith Premadasa and Anura Kumara Dissanayake, to go ahead with the ‘vision document.’

It would be pertinent to mention that Dr. Wignarajah has ceased to be an advisor to the Sri Lankan President in the wake of Wickremesinghe’s defeat. The advisor had been also involved with Pathfinder Foundation as a senior visiting fellow at the Foundation.

He has had the audacity to even deal in cavalier fashion with India’s intervention in 2022 to save Sri Lanka with reference to the Adani Group’s investments here as well as longstanding US projects, such as the Millennium Challenge Corporation that was rejected by President Gotabaya Rajapaksa’s government.

Essentially, the expert addressed the issues at hand from the point of view of the US-India response to the Sri Lanka crisis.

New developments

The killing of Canada-based Sikh separatist leader Hardeep Singh Nijjar outside his Vancouver temple in June 2023 has caused an unprecedented diplomatic row between New Delhi and Ottawa. The killing that Canada had blamed on India without whatsoever hesitation led to tit-for-tat expulsion of diplomatic staff. Among those who had been expelled were the top most Indian and Canadian intelligence officials based in the respective capitals.

But what really upset New Delhi was the US and the UK throwing their collective weight behind Canadian accusations, thereby undermining the Modi government’s international standing. Perhaps, the harm that had been caused to the relations between Canada and India can never be restored.

International news agencies in Oct, 2024 quoted the spokesperson of the UK’s Foreign Commonwealth and Development Office (FCDO) as having said: “We are in contact with our Canadian partners about the serious developments outlined in the independent investigations in Canada. The UK has full confidence in Canada’s judicial system. Respect for sovereignty and the rule of law is essential.”

“The Government of India’s cooperation with Canada’s legal process is the right next step,” the official added.

On top of the simmering diplomatic row with Ottawa, the US has filed charges against an Indian government employee over his alleged involvement in a failed plot to kill an American citizen of Indian origin. The Federal Bureau of Investigation has identified a New York-based targeted person as a prominent advocate for Sikh separatism.

The US Attorney’s Office for New York declared in Oct, 2024 that it filed “murder-for-hire and money laundering charges” against Vikash Yadav.

Another suspect in the case, Nikhil Gupta, was extradited to the US earlier, in 2024, to face charges, while Yadav remains at large. There hadn’t been such high profile previous cases involving Indian government agents conducting clandestine operations in the West.

Canadian and US investigations have placed India in an utterly embarrassing position. In spite of strong Indian denials, both Canada and the US have maintained that India is under investigation.

The possibility of Canada and the US trying to establish a connection between those who had been involved in operations in their respective territories cannot be ruled out.

The state of crisis of Indian foreign relations with the West has to be discussed, taking into consideration the shocking Canadian declaration that no less than Home Minister Amit Shah, widely believed to be the second most powerful person in the country, sanctioned the Vancouver hit.

Regardless of Indian denial, Canada has refused to change its stand with regards to Shah’s direct involvement in targeting those India considered as a threat. There seems to be no way forward for India on the matter, especially in the West as both Canada and the US pursued investigations.

How could the Canadian and US common stand in respect of clandestine operations undertaken by India undermine India’s once robust relations with the West? Can the West jeopardize their relations with India, at a time they are in conflict with China and Russia?

The Modi’s government obviously has ended up with egg on its face and is struggling to cope up with extremely harmful media coverage. Shah is the chief aide to Premier Modi.

Against the backdrop of Canadian accusations directed at Shah, the US is also likely to probe the possibility of the powerful Home Minister having a hand in the New York operation. Whatever the outcome of Canadian and US investigations, New Delhi will have to address the collective responsibility on the part of the Indian Cabinet in authorizing clandestine operations overseas.

The Adani factor

Dr. Ganeshan Wignarajah

When Wickremesinghe recently demanded that his successor President Dissanayake goes ahead with the ‘Vision document’ with India, he was probably turning a blind eye to the US indictment of Gautam Adani over high profile accusations regarding the USD 265 mn alleged bribery scam to benefit Indian government officials.

Perhaps, the US move against Adani, one of the closest associates of Modi, may destabilize Indo-US relations. Adani and seven others had been charged over, what the US called, the corrupt solar project. They have been accused of securities fraud, conspiracy to commit securities fraud, and wire fraud.

Dr. Wignarajah, in his piece to the US military magazine, praised the Adani projects here to the high heavens. Obviously, as the US indictment hadn’t been announced at the time the academic submitted his piece to the Indo-Pacific command, he couldn’t be faulted for the omission. However, the new Sri Lanka government shouldn’t try to side-step the issue by engaging in delaying tactics.

Unexpected bribery accusations that had been directed at the Indian conglomerate placed a major US funded project here under an extremely difficult situation, particularly because the US was to provide funding to the tune of over half a billion USD. The West Container Terminal at the Colombo port involved Sri Lankan blue chip John Keells and the Adani Group. Other participants are Special Economic Zone Limited and Sri Lanka Ports Authority in the USD 700 mn project.

The NPP government never expected the US to move legal action against the Adani group and may find it difficult to explain Sri Lanka’s continuing partnership with the Indian conglomerate. Unless of course, proper reassessment was made in respect of the Port project as well as other investments, particularly investment of U.S. 1.4 bn for wind power plants.

The US recently disclosed that though they promised over half a billion USD for the Colombo port project, the funding hadn’t been made available so far. Would denial of US funding undermine the implementation of the Port project. Construction began in Nov. 2022, five months after Parliament elected Wickremesinghe as the President.

The US stepped in during Ranil Wickremesinghe tenure as the President after previous plans for the East Container Terminal, involving Japan and India, had to be shelved due to protests. Sri Lanka had no other option but to offer the Colombo West Terminal project to appease New Delhi, furious about unilateral cancellation. The country paid a huge price for such cancellations, having announced mega projects without proper evaluation and consensus with stakeholders. There can be no better example than the idiotic cancellation of the Japanese-funded Colombo light rail project soon after the 2020 general election.

Japan reacted angrily to the unilateral announcement of the cancellation of USD 1.4 bn project funded by Japan through a soft loan.

What would be the fate of the West Container Terminal project in case Adani and JKH had to fund it in the absence of US financial backing? How could the US and India intend to maintain close links as desired by both powers against China in the backdrop of continuing bad press over attacks on Sikhs living overseas and the Adani fiasco.

The Congress-led Indian Opposition disrupted both Lower and Upper Houses of Parliament demanding a joint committee to investigate Adani’s companies in the agriculture, renewable energy, coal and infrastructure sectors. Unless India addresses accusations against Adani in a transparent manner, they can have long term repercussions, both domestically and internationally.

In the wake of the US indictment, Kenya cancelled multimillion-dollar deals with the Adani Group for airport modernization and energy projects. The mega company will also face scrutiny in Sri Lanka and Bangladesh.

The damage to US-India ties would be much more with legal action against Adani compelling India to play it safe. While the government remained silent on the issue at hand, Amit Malviya, the governing Bharatiya Janata Party’s IT head, declared in a post on the social media platform X that the US charges were “allegations and the defendants are presumed innocent unless and until proven guilty.” Critics asserted that this was nothing but a show of support by the Modi government for the Adani Group.

It would be interesting to see how the much weakened Opposition in Sri Lanka Parliament takes up the Adani issue. Parliament meets this week, though the issue is not on the agenda, an Opposition member may take the opportunity to comment on the politically sensitive matter.

Adani is the major Indian investor here. According to available data, Adani’s projects account for nearly 70% of overall Indian investments during the 2005-2019 period.

A story from the past

Undue Indian government intervention on behalf of Adani group was disclosed amidst unprecedented political turmoil here with President Gotabaya Rajapaksa under tremendous pressure in June 2022 with the country unable to finance basic needs with covert groups even having blocked worker remittances through official channels.

The revelation was made by then head of the Ceylon Electricity Board (CEB) M.C.C. Ferdinando during an open hearing of the Committee of Public Enterprises (COPE) that President Gotabaya Rajapaksa told him that Indian Prime Minister Narendra Modi had insisted that a 500-megawatt wind power project be directly given to the Adani group.

Embattled President Rajapaksa denied the disclosure. Within two days after the shocking declaration in Parliament, Ferdinando claimed that he lied after being overwhelmed by emotion. Of course no one took Ferdinando’s denial seriously for obvious reasons.

“On November 24, 2021, the President summoned me after a meeting and said, India’s Prime Minister Modi is pressuring him to hand over the project to the Adani group,” Ferdinando said, according to a video clip of his testimony made available by Parliament. According to the CEB head, he had received instructions from President Rajapaksa in this regard in Nov. 2021, just weeks after Adani visited Colombo.

Ferdinando was responding to questions posed by the then head of COPE Prof. Charitha Herath and another member about the circumstances the Adani group had chosen to construct a 500 MW wind power plant on the northern coast.

Ferdinando told the committee that he informed the President that the matter didn’t concern the CEB, but the Board of Investments. “The President insisted that I look into it. I then sent a letter mentioning that the President has instructed me and the Finance Secretary should do the needful. I pointed out that this is a government-to-government deal,” Ferdinando said.

During the heated hearings, Prof. Herath asked whether the wind power deal would be considered “unsolicited”. “Yes, this is a government-to-government deal, but the negotiations should take place according to the least cost policy mentioned in the act,” said Ferdinando.

On the following day, President Rajapaksa contradicted the CEB Chief. “Re a statement made by the #lka CEB Chairman at a COPE committee hearing regarding the award of a Wind Power Project in Mannar, I categorically deny authorization to award this project to any specific person or entity,” he tweeted.

“I have withdrawn that statement,” Ferdinando said. The media quoted the CEB Chief as having said that he only realized that he mistakenly made such a comment, when the Minister inquired from him about the matter on Saturday (June 11) morning.

Thereafter, Ferdinando issued a statement to Prof. Hearth on Saturday in which he tendered an apology, saying that due to “unexpected pressures and emotions”, he was compelled to name the Indian Prime Minister.

The public hearing took place on a Friday, a day after Parliament passed an amendment to the 1989 Electricity Act that removed competitive bidding. The main opposition, Samagi Jana Balawegaya (SJB), alleged that the primary reason for bringing forward the amendment was to accommodate the “unsolicited” Adani deal. The SJB demanded that projects beyond 10 MW capacity should go through a competitive bidding process.

The amendments to the Sri Lanka Electricity Act were passed with 120 votes in favour of the amendments with 36 voting against in the 225-member Parliament amid strong resistance from power sector trade unions in the state-run Ceylon Electricity Board (CEB). Thirteen MPs abstained in the voting.

The story should be examined taking into consideration Adani’s pow vows with President Gotabaya Rajapaksa and Premier Mahinda Rajapaksa in late Oct. 2021 in Colombo.



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Midweek Review

Dappula’s Easter Sunday ‘grand conspiracy’ claim demolished

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Easter Sunday mastermind Mohamed Ibrahim Mohamed Naufer, alias Naufer Moulavi, stepping out of prison bus on 22 September

Senior Additional Solicitor General Haripriya Jayasundera, PC, requested the Trial-at-Bar ahead of the declaration of its verdict that those found guilty should be dealt with in a manner that would serve as a deterrent to anyone of any religious and social environment who holds extremist views. Declaring that none of the accused had shown regret, Haripriya alleged that they were still holding on to their ideology. She painted an extremely dangerous picture of the religious mindset of a group of people who still remained a threat to society.

By Shamindra Ferdinando

Mohammadu Ibrahim Mohamad Naufer, aka Naufer Maulavi, 48, sentenced to 220 years of rigorous imprisonment by the High Court trial-at-Bar on 22 Sept. for his role in the 2019 Easter Sunday carnage, was taken into custody a few days after the incident. It was considered the principal case as there are other cases concluded and in progress.

At the time the police apprehended him, following a tip off received from the staff of a small hotel in Dambulla, where he was taking refuge, the Sainthamaruthu suicide blasts had taken place. Fifteen persons died in the suicide blasts, triggered by some of them, on 26 April 2019, after police, backed by the Army, surrounded their hideout.

Naufer Maulavi was initially cleared but an immediate subsequent check led to his arrest in the first week of May 2019. He was taken in at Dambulla, following consultations between Dambulla police and the Terrorist Investigation Division (TID). At the time of the multiple Easter Sunday blasts, Naufer Maulavi had been in Colombo and was on his way to the densely populated and predominantly Muslim Kattankudy, his home town on the eastern coast.

Naufer Maulavi was among 15 persons charged with plotting the Easter Sunday bomb attacks that killed 270 people and injured more than 500. The prosecution named him the mastermind in the unprecedented terrorist operation carried out by the now proscribed National Thowheeth Jamaath (NTJ). Nine other men were acquitted. Of the 25 accused, the 17th died in custody.

It would be pertinent to mention that the US Justice Department identified Naufer Maulavi, brother-in-law of Zahran Hashim, as one of the three persons, with Muhammed Riskan and Ahamed Milhan being the others, as conspirators in the ISIS plot. Let me stress that Naufer Maulawi and Zahran Hashim had been at the helm of the NTJ responsible for the carnage.

The US, too, identified Naufer Maulavi as the Easter Sunday architect, though some still considered Zahran Hashim as the mastermind. Colombo Trial-at-Bar found Naufer Maulavi, Muhammed Riskan and Ahamed Milhan guilty. The 15 accused were sentenced to 200 to 260 years in prison.

Now that Naufer Maulavi had been sentenced to life imprisonment for masterminding the Easter Sunday carnage, perhaps a controversial declaration made by Dappula de Livera, PC, on the eve of his retirement as the Attorney General, should be re-examined. Outspoken Livera alleged a grand conspiracy with regard to the 2019 April attacks but resorted to legal recourse to thwart the TID from questioning him. The Court of Appeal issued an interim order blocking his arrest or questioning him regarding the controversial statement. The Attorney General couldn’t have been referring to Naufer Maulavi.

Livera received appointment as Acting AG on 29 April, 2019, in the wake of the Sainthamaruthu blasts, and received confirmation on 10 May 2019, following approval by the Constitutional Council. He relinquished Office on 25 May, amidst the raging controversy over his grand conspiracy claims.

Dr. Wijeyadasa Rajapakshe, PC, in his capacity as the Justice Minister of the post-Aragalaya Wickremesinghe-Rajapaksa government, directed the TID to question Livera, in April 2023. Unfortunately, it was not to be. Sanjay Rajaratnam, PC, replaced Livera in May 2021. In July 2024, Parinda Ranasinghe (Jnr), PC, succeeded Rajaratnam.

The issue at hand is why Livera failed to file indictments or directed comprehensive police investigations while during his tenure as the AG. The undeniable truth is successive governments failed to pursue Livera’s claim that paved the way for unsubstantiated accusations pertaining to a wider conspiracy. Unfortunately, Livera’s claim remains uninvestigated to date.

None of those demanding justice for the Easter Sunday victims ever requested Livera to assist the investigation.

We refrain from speculating as to why Livera sought an extension, though President Rajapaksa offered him the golden opportunity to serve as our High Commissioner in Ottawa in his retirement. In fact, his then Coordinating Officer, State Counsel Nishara Jayaratne, offered the writer an opportunity to interview the outgoing AG and received a set of questions for him to respond, but at the eleventh hour, he cancelled it. With Livera’s retirement, Ms. Jayaratne, relinquished her position created especially for her. That position was abolished.

But, his explosive claim, as the outgoing AG, fuelled conspiracy theory that 2019 SLPP presidential election candidate Gotabaya Rajapaksa, through former head of Directorate of Military Intelligence (DMI), the then Brigadier Suresh Sallay, arranged the attacks to facilitate his victory.

Ibrahim family

Forty-five foreigners were among those who perished in the Easter Sunday massacre. Altogether, 279 persons, including suicide bombers, perished on that day. The dead included Fatima Ibrahim, the pregnant wife of suicide bomber Ilham Ibrahim, the Shangri-la bomber, and sister-in-la of Inshaf Ibrahim, who blasted himself at the Cinnamon Grand. Fatima blasted herself during a police raid on their Dematagoda mansion where law enforcement authorities apprehended her father-in-law, wealthy spice trader Mohamed Yusuf Ibrahim. The blast triggered by Fatima also claimed the lives of her two children and three policemen assigned to the search party.

The prominent spice tycoon was granted bail on 25 May 2022, during Gotabaya Rajapaksa’s presidency.

Ibrahim, who had been on the JVP’s National List at the 2015 parliamentary election, was not among those charged before the Trial-at-Bar. Was it a case of no limit to what money or influence can secure?

Another person, who had been arrested under the Prevention of Terrorism Act (PTA), in April 2020, but granted bail by the Court of Appeal, on 7 February 2022, is Hejaaz Hisbullah, who served as the lawyer for the Ibrahims. Hisbullah received bail several weeks before Mohamed Yusuf Ibrahim did.

In spite of being arrested over his alleged links to the Easter Sunday massacre, the lawyer was formally charged with the lesser offence of inciting communal disharmony/racial hatred, based on a speech allegedly given at an Islamic school. His arrest received international attention with even the Geneva-based United Nations Human Rights Council (UNHRC) taking it up. Amnesty International named the lawyer a prisoner of conscience. International organisations issued a spate of statements expressing serious concern over the lawyer’s arrest though no one challenged him for serving the Ibrahim family.

The investigation also targeted Colossus (Pvt.) Ltd, a copper factory located in Wellampitiya, managed by the Cinnamon Grand bomber. During the investigations, it transpired that the factory, obviously through connections, secured large stocks of non-ferrous metals and, in once instance, ex-lawmaker Shantha Bandara, who had been serving as the Director General of Public Relations at President Maithripala Sirisena’s Office, directed Industrial Development Board (IDB) to allocate 500 tonnes of brass/copper scrap to Colossus (Pvt.) Ltd. The IDB hadn’t been able to fulfill Bandara’s directive because it didn’t have such a large quantity at the time the request was made. Investigations revealed that the Wellampitiya factory, situated just five kms away from the Dematagoda mansion, was used to prepare explosives used in suicide jackets. Many an eyebrow was raised when a group of workers, arrested on 22 April, 2019, in connection with the investigation, was granted bail on 6 May, 2019. Although police headquarters announced an internal investigation, the country was never told what really happened in court on 6 May. The investigation, undertaken by the Special Investigation Unit (SIU), as far as this writer is aware of, was never made public.

The statements at that time made by AG Livera, and also attributed to him, made interesting reading. Livera made some thought-provoking statements regarding the Easter Sunday investigations but caused irrevocable damage before he retired.

Years later, former parliamentarian Wijeyadasa Rajapakshe disclosed, at a public meeting in Kandy, why Livera caused the Easter Sunday controversy. The former Minister alleged that the AG claimed what the media called a grand conspiracy after President Gotabaya Rajapakshe turned down his request for a one-year extension. The former AG never contested this claim.

By the time Livera retired, the investigation conducted by the CID had reached a crucial stage. In the second week of August, 2021, AG Rajaratnam forwarded indictments to the Chief Justice in respect of 25 suspects over conspiracy to stage the 2019 Easter Sunday terror attacks.

A total of 23,270 charges were filed, including conspiracy to murder, aiding and abetting, collecting arms and ammunition, and attempted murder under the PTA. Trials before the three-judge bench, consisting of Judges Navaratne Marasinghe, Ramanathan Kannan, and Sujeewa Nissanka, on November 22, 2021, and concluded evidence recordings on August 24, 2026.

During the high profile battle over the 22nd Amendment to the Constitution, President Anura Kumara Dissanayake attributed the delay in filling vacancies in the Court of Appeal due to the Easter Sunday Trial-at-Bar. Immediately after the declaration of the Easter Sunday verdict, Navaratne Marasinghe was referred to the Constitutional Council by President Dissanayake.

Easter probe under different govts.

The Easter Sunday probe began under the Sirisena-Wickremesinghe government. Gotabaya Rajapaksa’s administration took over the investigation in Nov. 2019, followed by the Wickremesinghe-Rajapaksa government in July 2022, and then by Anura Kumara Dissanayake’s government in Sept. 2024.

Having backed Gotabaya Rajapaksa’s candidature at the 2019 Nov. presidential election, the Catholic Church first sought an explanation from the President, in mid July 2021, regarding his failure to act on the PCoI recommendations. The Church released to the media its letter signed by the Archbishop of Colombo Malcolm Cardinal Ranjith and several auxiliary bishops. Altogether there were close to 30 signatories. The Church resorted to a warning letter in the wake of the slow progress in the overall process, in spite of President Gotabaya Rajapaksa receiving the PCoI recommendations on 1 Feb. 2021. Livera served as the AG.

The JVP/NPP, under any circumstances, cannot deny that Minister Dr. Nalinda Jayatissa, who served the Parliamentary Select Committee (PSC) that probed Easter Sunday carnage in Feb. 2021, alleged direct Indian involvement in the reprehensible act. Dr. Jayatissa explained to the BBC Sinhala Service why he reached that conclusion and a few years later former President Maithripala Sisisena, too, directed accusations against India.

SSP Shanie Abeysekera, who had been the Director, CID, at the time of the attacks, and was removed from that post, less than a week after Gotabaya Rajapaksa took Office as the President. Having campaigned for the JVP/NPP, Abeysekera who had been in retirement was reinstated to the Police Department in Oct. 2024 and named Director CID in June 2025. Ravi Seneviratne, who had been Abeysekera’s superior at the time of the Easter Sunday carnage, returned as Secretary to the Public Security Ministry.

The unexplainable failure on the part of the Gotabaya Rajapaksa administration to implement the PCoI recommendations was cleverly utilised by the NPP/JVP in line with its overall strategy that made the Catholic Church throw its weight behind the political movement to oust President Rajapaksa. Perhaps, the country at large still does not know that the Catholic Church, in its July 2021 letter to President Gotabaya Rajapaksa, specifically questioned the inordinate delay in taking punitive action against former President Sirisena.

Unfortunately, by then Sirisena had become a member of the SLPP parliamentary group and functioned as the leader of the SLFP, the second largest party in the ruling coalition. The SLPP parliamentary group consisted of 14 SLFPers in a 145-member government parliamentary group. Against that backdrop, the President had no option but to conveniently ignore the PCoI recommendations. By the time the President received the PCoI recommendations, the SLFP had consolidated its hold, via its unconditional support to enact the controversial 20th Amendment to the Constitution.

The SLPP enacted the 20th Amendment to the Constitution in late Oct. 2020, several weeks after the parliamentary polls. That enabled the President to bring a dual US, Sri Lankan citizen to Parliament and accommodate him in the Cabinet in early July 2021 after the economic crisis gripped the country. The SLPP didn’t know where it was heading.

The President’s decision to accommodate Suresh Sallay, who held the rank of Brigadier as the Director of State Intelligence Service (SIS), a position that had never been bestowed on an armed forces officer, obviously gave an opportunity for the interested parties to exploit the situation. Sallay received the appointment as Director SIS on 8 Dec. 2019 and was elevated to the rank of Maj. Gen. on 22 May 2020.

2019 and 2024 political platforms

The Easter Sunday attacks dominated the 2019, 2020 and 2024 national election platforms. The Easter Sunday fallout, without doubt, facilitated the overall SLPP strategy at the 2019 and 2020 presidential and parliamentary polls, respectively. There cannot be any dispute over that. The Catholic Church adopted a transparently hostile position vis a vis the UNP, following Sajith Premadasa’s heavy defeat at the presidential poll, and many of those who backed him felt the Archbishop of Colombo Malcolm Cardinal Ranjith ensured Gotabaya Rajapaksa’s triumph. But, former Yahapalana Minister Harin Fernando, whose bombshell revelation that his ailing father, receiving treatment at a private hospital, knew of the impending attacks, went public with the allegation. The outspoken politician alleged that the Archbishop’s partisan actions cost the SJB five percent of the Catholic vote and the election.

The Archdiocese of Colombo said that Fernando’s comments were unfounded and uncalled for and were made for cheap political gain. Now, the allegations have turned a full circle and the Church is being accused of targeting Gotabaya Rajapaksa.

At the 2024 national elections, the JVP/NPP exploited the Easter Sunday fallout to its full advantage. That exploitation should be examined taking into consideration the Catholic Church throwing its weight behind a US-India backed political operation that forced the President out of Office in July.

In spite of several high profile investigations, certain developments didn’t receive the attention they deserved. Efforts made by the NTJ to form an alliance to represent its interests in Parliament should have been thoroughly investigated. The NTJ sought to form that alliance on the lines of LTTE-TNA (Tamil National Alliance) partnership. Established in 2001, the LTTE-TNA alliance functioned until the very end of the LTTE’s collapse on the Vanni east front. At one-time, the TNA group, consisting of 22 lawmakers represented in Parliament (2004 to 2010). But, the NTJ couldn’t implement a successful strategy. Perhaps, its failure to establish an effective proxy at the 2015 parliamentary polls and the massive political turmoil caused by the Sirisena-Mahinda Rajapaksa alliance, formed in late Oct. 2018. at the expense of the UNP, may have influenced the Easter Sunday attacks. Or the NTJ may have advanced its plans in a bid to take advantage of the crisis situation.

The first indication of a small section of the Muslim community establishing contact with ISIS was disclosed in Nov 2016 by the then Justice Minister Wijeyadasa Rajapakshe. Instead of taking action, Wickremesinghe let loose his parliamentary group on Rajapakshe. Some MPs tore into Rajapakshe who caused himself further trouble when he openly criticised the leasing of strategic Hambantota port on a 99-year-lease to China.

During a hastily called media briefing at Sri Lanka Foundation, Rajapakshe warned that the US wouldn’t leave Sri Lanka alone as long the Hambantota port remained in the Chinese hands. That stunning declaration was made amidst tumult over the Easter Sunday attacks.

What really prompted the NTJ to seek political alliance with Muslim political groups aligned with the UNP. The writer had an opportunity to examine the NTJ’s relationship with the National Front for Good Governance (NFGG) when the political grouping called a media briefing at Mandarina Hotel, Galle Road, in late May 2019. NFGG leader Abdul Rahuman explained their dealings with Zahran Hashim in the run up to the 2015 parliamentary elections. Responding to The Island queries, Rahuman said that though NFGG received recognition only in 2017, he was able to contest the 2015 parliamentary election on the SLMC ticket.

According to Rahuman, he got the opportunity to contest the 2015 parliamentary polls thanks to a tripartite agreement among the UNP, SLMC and his NFGG involved with the NTJ in 2015 and 2016. However, the NFGG ended its contacts with the NTJ after the latter went underground in March 2017. But, by 2017, law enforcement authorities knew what NTJ was up to. In spite of the TID seeking instructions from the AG, that Department failed to respond for over a year. The PCoI, too, mentioned the AG’s department’s lapse in its recommendations.

The briefing provided by Brig. Chula Kodituwakku, the then head of the DMI, at the Janadhipathi Mandiraya, in the presence of President Sirisena and Army Commander Lt. Gen. Mahesh Senanayake, proved that the DMI knew the clandestine activities of the NTJ and Jamathei Millathu Ibrahim (JMI). The writer was among those present there.

Although various interested parties, including the Catholic Church, claimed that Sallay, arrested in February this year and named a suspect in another Easter Sunday case, had been the head of DMI at the time of the attacks, it was not so. Yahapalana Premier Wickremesinghe unceremoniously sacked Sallay and packed him off to our diplomatic mission in Kuala Lumpur, Malaysia. The investigation into Sallay’s alleged role had been initiated in response to Krishnan Guru-Murthy’s Channel 4 documentary aired in early Sept. 2023, a year ahead of the last presidential election. The documentary on Easter Sunday bombings became a major issue on JVP/NPP’s presidential and parliamentary polls platforms. The rest is history.

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Midweek Review

Economics is what economists do?

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Top row, from left: Amartya Sen, Jagdish Bhagwati and Rehman Sobhan. Bottom row, from left: Lal Jayawardena, Manmohan Singh and Mahbub ul Haq.

by Usvatte

What is economics is a question that many young people may ask. They may be making choices for university education; some more mature persons may be making career choices, and those vigilant about what goes on in the society around them and how their societies came to be may want to know what economists contribute to that effort. They may all want to know what economics is. Economics is what economists do. What some particular economist did may be found in his autobiography or biographies.

We have a good idea of what Karl Marx, John Maynard Keynes and some physiocrats thought and wrote about. Many economists also set up new organisations like the International Monetary Fund, the World Bank, OECD and UNCTAD. A large number of economists advise governments on economic policy and administer economic policy. A few run intergovernmental economic organisations, like the African Development Bank or the World Bank. A good many work in financial services, including financial assets markets. A large number of economists undertake research partly to understand how economies work, partly to report on how economies functioned so that policy makers and the general public may understand changes in an important part of their well-being. Many economists collect and analyse data for these purposes. A relatively few economists always work on ways and methods of conducting research and examine the limitations of the results derived from research using current techniques and look for new means of understanding how economies work. It is economists from among these, like Amartya Kumar Sen, that win the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, awarded annually. A large number of economists teach economics in universities and upper forms in schools. In that process, some set up research organisations. Someone, whom I knew well, who set up a highly successful research organisation was K. N. Raj. He set up the Institute of Development Studies in Trivandrum (then). Many economists, in their lifetime, combined many of these activities. Keynes was a Fellow and Bursar of King’s College, (but never a member of the Faculty and Politics in Cambridge or elsewhere) worked in the British Treasury, partook in the Paris Peace Conference, negotiated the setting up of the IMF and the World Bank, was a member of a Royal Commission and a patron of the arts and founded the Arts Theatre in Cambridge. Above all, he published two seminal books, one of which established a central part of modern economics: The General Theory of Employment, Interest and Money. Closer home K. N. Raj taught economics at Delhi University and was its vice-chancellor, set up the Kerala Institute of Development Studies, advised governments of Kerala and India and lent his services briefly to intergovernmental organisations. He published mostly on the Indian economy. He was the leader of the intellectual community in India and was universally respected. Many economists argue with one another because economists deal with economies, which are enormously complex variegated essentially social institutions. And we know that there is much disagreement among people on the nature and purpose of social organisations.

David Engerman, Professor of History and Global Affairs at Yale, has written a long book (534 pages) with the title Apostles of Development in which he discusses admirably the work of six economists from India, Pakistan (and Bangladesh) and Ceylon (Sri Lanka). They lived and worked mostly after the 1939-45 war. All of them were brilliant students in Cambridge University from about 1955 to 1963.

They were Manmohan Singh, Amartya Kumar Sen, and Jagdish Bhagwati from India, Mahbub ul Haq and Rehman Sobhan from Pakistan (later Bangladesh) and Lal Jayawardena from Ceylon (Sri Lanka). I knew most of them personally, Lal Jayawardena closely, Singh marginally and Bhagwati not at all, (in part, because of my poor understanding of international trade.) Engerman is a historian and has an interdisciplinary reach. He writes a lot of economics and that very well. The meticulous care with which he documents his account bears ample testimony to that training and accomplishments as a historian at Yale. The title of the book derives from two sources. The development of low-income countries had not been a major concern of economics teaching until about 1960, although the early economists Robert Malthus, David Ricado and Karl Marx had studied long term consequences of changes in economies that they observed. The physiocrats in Paris in the 18th century had explored the consequences of certain policies affecting economies. At Cambridge, economics emerged from Moral Sciences and both Sidgwick and Marshal taught there, first. Adam Smith at Glasgow in the 18th century had been a professor of Moral Sciences. Apostles was a nickname given to members of a Cambridge students’ society, all highly intelligent and particularly from privileged homes.

Of these six, the economist who contributed to the almost immediate betterment of living standards of millions of people was Manmohan Singh. Until Singh started policies of liberalizing the economy of India, it was notorious for slow growth, which was derisively named the ‘Hindu rate’ of growth. After Singh opened the economy of India to trade with the rest of the world and cut down barriers to trade in the internal market, India set upon a new path of development and the Indian economy has grown at rates well above 5 percent per year. Those high rates of growth and other policies raised some 500 million people from poverty while they also have enabled the emergence of persons of immense wealth, probably unprecedented in India. (There was the splendour of pre-British India.) Singh in India and Zu Rongji in China both deserved the Nobel Peace Prize for their contributions to reduce poverty.

Singh had worked on international trade with Ian Little at Oxford, where he earned a Ph. D. degree and also worked as a young economist who together with La Jayawardena, worked with enthusiasm to establish the United Nations Conference on Trade and Development (UNCTAD) led by Nicholas Kaldor, Sydney Dell and Hans Singer, all three distinguished Cambridge economists. They were senior to these six. Jagdish Bhagwati, who taught at Columbia explored the rationale for opening up economies for trade with the rest of the world. Gamani Corea, senior to them at both Cambridge and Oxford, Lal Jayawardena

Economics

and Manmohan Singh worked as pioneers setting up the South Centre in Geneva. Singh and Jayawardena took a great interest in the reform of the international financial structure. They worked indefatigably in committees set up for the purpose: as Deputies in the Committee of 20 set up by the IMF.

I came to know Rehman Sobhan long after he had left Cambridge and achieved much. We met several times in Delhi in a committee that examined proposals to set up a university for South Asia, which came into being later. We also met in a group, under the leadership of Isher Judge Ahluwalia, to examine the feasibility of coordinating the work of research institutions in South Asia. The initiative came from the World Bank.

Two stand out among economists having contributed to the expansion of the horizons of their discipline: Amartya Sen and Jagdish Bhagwati. They both removed some infelicities that had gone undetected until then and cleared up the way to see new realities. We understand better welfare economics, poverty and economic and social development, thanks to their successful intellectual exploits. One of them had deep insights into the economics of international trade. Three of them, in varying ways, taught us to understand the nature of the information on economic development and how to use them for better policy formation: Amartya Sen, Mahbub ul Haq and Lal Jayawardene dug up new information and handled them in ingenious ways to obtain insights into social formations.

The Human Development Report of UNDP, which had been mostly a dull report, became a lively theatre for debate on questions of economic and social policy thanks to the work of ul Haq, Amartya Sen together with another colleague from Cambridge, Richard Jolly, who regularly worked in the nearby UNICEF office in New York, right opposite mine on 44th Street. Manmohan Singh, Mahbub ul Haq, Lal Jayawardene and Rehman Sobhan contributed heavily to the formation of development plans in their respective countries. They built up new institutions that enriched the architecture for international economic relations: Lal Jayawardene, Manmohan Singh and Mahbub ul Haq. Most of them contributed heavily and directly to the formation of economic policies of their own countries. Of almost equal importance are the contributions most of them made to improve the administration of economic policies in their countries.

Sen taught at Delhi, Cambridge and Harvard, where he was latterly University Professor. He also had the high distinction of serving as the Master of Trinity College, Cambridge University. Singh taught for a short while at the University of Punjab and the Delhi School of Economics. Bhagwati Taught at Delhi, MIT and, for a long time, at Columbia. Jayawardena did not teach economics although his approach to economic problems was heavily academic. Jayawardena’s academic instincts blossomed when he ran the World Institute of Development Economics Research (WIDER) in Helsinki. Within a year of its establishment, WIDER became an essential meeting place for leading economists all over. WIDER published several useful reports, commonly added to college economics reading lists.

Of the six, three stand out: Singh, Sen and Bhagwati. Singh understood the power of markets and created them for India. Sen helped us mightily to understand welfare economics and also brought economics to the centre of popular imagination. Bhagwati championed the cause of free trade: open markets and globalization. He was a fierce debater and many suffered at his hands.

It is striking that six persons who first met as undergraduates in one university worked to change for the better economic policies, the world over. What brought them together? A great university teaching in a language commonly used, at least by the elte, in a number of countries made that concatenation feasible. The circumstance at that time, in both their countries and region and globally, called for their expertise and commitment. That not all their endeavours reached fruition, was a product of the power relations among countries. Nonetheless, the academic world and the material conditions millions of people are richer on account of their contributions.

This short note has taken a long time to write. I apologise to David Engerman for the delay.

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Midweek Review

World unites against unilateralism while Sri Lanka makes opposite choice

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By Sanja de Silva Jayatilleka

This September, on the sidelines of the 81st Session of the United Nations General Assembly, a number of countries from North to South and East to West, thought it necessary to come together in a new coalition of states to protect multilateralism against the recent acceleration of unilateralism which has negatively impacted most of the world.

The members of the new formation called ‘Partners for Multilateralism’ or P4M, established on the 21st of September 2026 in New York, aims to protect themselves against threats to global peace and security including through violent conflicts, disregard for international law, coercive measures such as sanctions and tariffs arbitrarily applied leading to disruptions of trade and supply chains, and to reaffirm their commitment to multilateralism based on the Charter of the United Nations.

The authentically global spread of the dissatisfaction with the subversion of the existing international order through unilateralism was evident from the initial co-sponsors of the initiative: Australia, Barbados, Brazil, Canada, the European Union, India and Kenya, covering all 5 continents.

Further signatories to this commitment were Albania, Bosnia and Herzegovina, the Council of Europe, Croatia, Cyprus, Finland, Guatemala, Liechtenstein, Luxembourg, Moldova, Norway, San Marino, Slovakia, Spain, Türkiye and Uruguay.

This initiative of a formal commitment through a network of countries offering a common platform for dialogue and collective action, specifically as a response to unbridled unilateralism, is a significant moment in current international relations.

Its significance lies in the fact that this coalition of states includes countries of the Global North allying with those of the Global South, in an act of resistance, of breaking traditional ranks, of the rejection of the imposition of the will of the United States. This is a rallying of individual attempts at asserting sovereign independence into the synergistic enhancement needed to contain the obvious risks to each one.

The Joint Declaration states that the members “recognise that economic interdependence is increasingly used as a source of leverage, disrupting trade, supply chains, investment and development finance…”

The Declaration also recognises emerging multipolarity and the importance of international law and the multilateral system. It also recommits to the principles of sovereign equality and territorial integrity, among other things:

“We reaffirm that the multilateral system founded on the United Nations Charter remains indispensable. It has helped provide a framework for peace, decolonization, prosperity, and human dignity. It must now respond to a world that is more interconnected and complex, more contested and more multipolar.

We affirm the need to uphold and enforce the rules, principles and commitments that remain essential to international order, while renewing and reforming the multilateral system so that it is more effective, representative, inclusive and fit for purpose.

We reaffirm our commitment to international law and to the principles of sovereign equality, territorial integrity, the peaceful settlement of disputes and the prohibition of the threat or use of force.”

The full statement can be found at

https://www.consilium.europa.eu/en/press/press-releases/2026/09/21/declaration-of-the-partners-for-multilateralism-p4m-summit-21-september-2026/

Got the T-Shirt

China and Russia have consistently reiterated their commitment to multilateralism, though they weren’t signatories to the 2026 declaration of the P4M summit. The Global South has been fighting multiple versions of unilateralism for many decades.

The final document and declaration adopted at the eighteenth Summit of meeting of the Heads of State and Government of the Movement of Non-Aligned Countries, held in Baku on 25th and 26th October 2019, condemns the “promulgation and application of unilateral coercive measures against countries of the Movement, which are in violation of the Charter and international law and undermine, among other things, the principles of sovereignty, territorial integrity, political independence, self-determination and non-interference”.

The UN Human Rights Council which appointed a Special Rapporteur on Unilateral Coercive Measures (UCM) many years ago in 2014, passed its latest resolution in 2023 reiterating that no state can use unilateral measures to “coerce another State in order to obtain from it the subordination of the exercise of its sovereign rights and to secure from it advantages of any kind…”

It also declared that secondary sanctions imposed on attempts to circumvent primary sanctions as contrary to international law and welcomes the launch of a ‘sanctions research platform’ and “uniform and universal tool for monitoring and assessing the impact of unilateral coercive measures and overcompliance on human rights“.

As per the Office of the High Commissioner for Human Rights, the Sanctions Research Platform is a “comprehensive online reference tool dedicated to collecting article, reports, videos and any research material and information on Unilateral Coercive Measures and their effect on human rights”. (OHCHR)

It further states that the tool for monitoring “offers the possibility to observe how humanitarian indicators have been changing yearly, comparative with the data before unilateral sanctions were imposed, with special attention to years when sanctions pressure has been increased or decreased.” (OHCHR)

The Special Rapporteur for Universal Coercive Measures described the tool for monitoring as follows: “The monitoring and impact assessment tool is unique…Due to the political discrepancy among states, adequacy of monitoring and assessment can only be achieved at the UN level through collecting information on specific indicators from all relevant sources, based on the principles of comprehensiveness, impartiality, transparency and verification.”

Submitted in 2023 at the UNHRC, this Resolution was voted against by several countries of the Global North with voting rights: Belgium, Czechia, Finland, France, Georgia, Germany, Lithuania, Luxembourg, Montenegro, Romania, Ukraine, United Kingdom of Great Britain and Northern Ireland and United States of America.

However, the Resolution passed with 32 votes which included China and voting members from South Asia, Bangladesh, Pakistan, and Nepal among others.

Canada and other European states have now found this particular scourge of UCM at their own doorstep as the current US administration declares its aspirations to annex sovereign territories to its own federation, to name their rivers to reflect US ownership, to impose crippling tariffs and involve itself in violent conflict overseas– affecting all countries of the world given the interdependency of trade.

Despite earlier unprincipled positions on the same issue, the new consensus on the negative effects of unilateralism and participation of the Global North in the P4M is of great value to the international efforts to minimize its consequences.

Safety in Numbers

Given Washington’s economic power and unassailable military superiority, only one country, China, can realistically resist without great cost, the unilateral coercive action by the United States. China has already proved it with successful counter sanctions. This is a privilege not available to any other state.

Iran has been threatened with annihilation already, with a shocking ultimatum announced by the President of the USA at the recent 81st Session of the UNGA, to make a deal, or be ‘quickly destroyed’. How long before the surreal transforms into the real? The premier multilateral institution, the UNGA, was platform for the most classically unilateral, coercive announcement conceivable.

It is in this context that P4M has been formed. Individually unable to prevent acts of coercion, coalitions of states on the other hand is a phenomenon that has the potential to effectively reinstate rationality in international relations, if the momentum grows as it should.

Underestimating Global Groupings

For small South Asian states like ours, groupings such as the Non-Aligned Movement and more recently BRICS, as well as the Shanghai Cooperation Organization are sources of strength and hope, even if we are only aspirant members or associates of some of them. When Sri Lanka was an active member of NAM, it gave us stature and influence far beyond our actual strength in global affairs. Formed at a particular point in history, it served its members beyond their expectations in the decades following its formation, and lasts to this day as the biggest collective at the United Nations.

Coalitions of like-minded states are necessary also to respond to other global realities that exert influence and enforce strategies on countries unfairly, such as the dominance of the reserve currency, especially in the context of sanctions. BRICS has attempted to minimise this disadvantage by agreeing to trade among its members where possible, in local currencies, to circumvent unilateral sanctions regimes. It has also addressed the critical issue of debt and development financing by establishing the New Development Bank. Such groupings and the alternatives being facilitated by those initiatives are relevant to all who discern the unpredictability and uncertainty introduced by unilateralism.

For the rest of the world watching, the Munich Security Conference 2026 at which the US Secretary of State urged a return to a time of Western hegemony was a wake-up call, especially as the conference burst into applause. It’s a relief that things have got clearer, at least for most countries of Europe and Canada since then, as they too became victims.

Cultivating relationships with the members of groupings that are making the effort to carve out a more equitable way of relating to each other in the world should be a priority for us. Seeking membership, partnerships, associate membership or whatever is immediately available to them of such coalitions, to be enhanced later, should be a natural course of action for countries like Sri Lanka. Even as partner countries or associate members, these are platforms to discuss problems affecting us and even to intervene to shape a more equitable global order as a collective. Recent events in Sri Lanka suggest that these developments haven’t filtered through to policy makers, as opportunities to do just that, were squandered.

Violating International Law?

Much more concerning than the acts of omission are the recent acts of commission in the opposite direction by Sri Lanka’s current administration.

As disclosed by Colombo newspapers and confirmed by a US Embassy website report, Sri Lanka has decided to be partners in an activity that the UN has specifically declared as contrary to international law. Sri Lankan state officials were recently trained to assist in detecting violators of sanctions, unilaterally and extraterritorially imposed by the United States.

Apparently several officials attended:

“… a three-day training September 9–11 in Colombo to strengthen Sri Lanka’s ability to detect and respond to maritime sanctions evasion that threatens U.S. security interests and legitimate global commerce… More than 40 officials from the Sri Lanka Atomic Energy Regulatory Council, Central Bank of Sri Lanka, Sri Lanka Coast Guard, Merchant Shipping Secretariat, Sri Lanka Ports Authority, Ministry of Defense, and Sri Lanka Navy built proficiency…”

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Now let’s check the preambular paragraph to Resolution 54/15 of the UNHRC on Human rights and unilateral coercive measures adopted on 11th October 2023 which refers specifically to secondary sanctions:

“Alarmed by the expanding use of secondary sanctions, civil and criminal penalties for alleged circumvention and the means of enforcement of primary sanctions regimes, which are contrary to international law, give rise to overcompliance strategies of States, businesses and civil society

and indiscriminately affect the whole population of targeted countries and impede humanitarian work and deliveries, including those made pursuant to Security Council resolutions”

Perhaps it is time to read the signs and read them clearly, as Sri Lanka’s external relations and foreign policy are being dramatically redesigned.

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