Dinesh Gunawardena (MP) Prime Minister Democratic Socialist Republic of Sri Lanka
Hon Keir Starmer Prime Minister of the United Kingdom of Great Britain and Northern Ireland
It is with great pleasure that I offer you my heartiest congratulations on the landslide victory as Leader of the Labour Party at the British Parliamentary elections and your assumption of office as the Prime Minister.
Whilst welcoming as Prime Minister forming a strong stable Government under your leadership to deliver wishes of the people, Sri Lanka is committed to further strengthening deep bilateral friendly relations with Britain.
Please accept honorable Prime Minister, the assuarance of my highest consideration.
In a recent interview, Governor of the Central Bank of Sri Lanka Dr Nandalal Weerasinghe addressed misconceptions regarding Sri Lanka’s total debt, clarifying that the increase from USD 96 billion in December 2023 to a projected USD 100 billion by March 2024 is largely due to exchange rate fluctuations rather than new borrowing.
Joining an interview held at the Presidential Media Centre on Friday (05), the CBSL Governor said that despite a detailed explanation of this made by President Ranil Wickremesinghe in Parliament recently, some have mistakenly interpreted the rise as an increase from USD 70 billion to USD 100 billion.
Commenting in this regard, Dr. Weerasinghe added: The status of the debt as of March 2024 was outlined in the Debt Bulletin you referenced. The entire loan amount is denominated in US dollars, totaling USD 100 billion. As you know, our country manages both domestic and foreign debts, with foreign loans typically in dollars.
When including domestic debt in the table, it is converted into dollars. Previously, our exchange rate was 324, but it is now 301. Consequently, the foreign exchange position has strengthened, which is favorable. However, the higher exchange rate increases the dollar value of our debt in rupees. Thus, despite no additional borrowing, the debt appears higher due to the exchange rate fluctuation”, he expressed.
Meanwhile, the CBSL Governor also expressed: additionally, is it beneficial or detrimental to defer debt repayment? When a country progresses, a budget deficit inevitably arises if expenditure exceeds income. This deficit necessitates borrowing. We are not alone in this; other countries also borrow. This on-going process leads to automatic increases in loans.”
Furthermore, he highlighted that the challenge lies in maintaining debt at a sustainable level.
Can borrowing continue, and if so, from where? Should loans come from the central bank? As you know, the central bank prints money, and we understand the implications of excessive money printing. Should we continue this to cover budget deficits? Should we increase or reduce our credit?”, he questioned.
Dr. Weerasinghe, who stated that achieving debt sustainability entails managing debt at a level sustainable for the country, mentioned that strengthening public financial management is essential alongside debt restructuring.
The CBSL Chief pointed out that Sri Lanka must manage our finances prudently, emphasizing revenue growth and maintaining manageable expenses.
By striking this balance, we can sustain a manageable budget deficit and progress forward”, he added.
I do not agree with those who argue against borrowing. As long as our country faces a budget deficit, borrowing is necessary. This has been a historical reality and will persist in the future, similar to other countries’ practices”, said the CBSL Governor.
Moreover, expenditure must align with income. For instance, approximately 80% of our income goes toward loan interest, leaving 20% for other expenditures. This proportion represents 19-20% of gross production costs, yet our income was only 8% in 2022, resulting in a 12% budget deficit. We have since increased income to around 11%, reducing the deficit to 8%, which is progress. Our expenditure is not the primary concern; rather, income must be bolstered. Despite this improvement, satisfaction remains elusive. Under the IMF program, we aim to raise income to 15%, while capping costs at approximately 5%.”
My message to the country is clear: I disagree with claims that a country can function without borrowing. However, loans must be utilized for productive purposes and non-consumptive economic activities. By channeling loans into investments that stimulate economic growth, we can enhance debt repayment capabilities. Debt accrues through a complex process, and comparisons should consider the financial context in which loans are secured”, Dr. Weerasinghe said.
President Ranil Wickremesinghe recently emphasized that as the country builds a new economy, it is crucial to establish a new political system. This system must foster individuals who can take responsibility and speak the truth fearlessly.
He made these remarks during the bankers’ forum organized by the National Bankers Association at Galle Face Hotel, Colombo, yesterday (05).
The President stated that he has openly communicated the economic challenges facing the country to the people and has outlined a clear program to lead the nation out of the crisis.
The President emphasized that there is no alternative program for the country and that it is everyone’s responsibility to identify and support the necessary program for the country’s economy, rather than living in dream worlds.
He pointed out that while some have cited Argentina’s Martin Guzman as an example, he considers Guzman a failure.
Additionally, although some have suggested that he ask for money from world leaders, the President stressed that the Sinhalese nation is not a beggar nation but one that rises through self-reliance.
The President stated that his goal is to steer the country towards rapid development through an export-based economy. He mentioned that the necessary legal framework for creating an export economy has been presented to Parliament and highlighted the banking system’s significant responsibility in advancing this program.
The National Bankers Association also presented a special commemorative gift to the President at the occasion.
Subsequently, a discussion was held featuring President Ranil Wickremesinghe, former Minister of Finance Minister Ravi Karunanayake, and Senior Adviser to the President on Economic Affairs Dr. R.H.S. Samaratunga.
The President further elaborated;
Today, we have made significant economic progress. I need not remind you of what happened from the Jetwing Hotel to the Galle Face Hotel in those days. During that journey, my house was also burned down. Despite these challenges, we have moved forward, but there is still a long way to go. I made it clear back then that if we do not protect our banking system, we cannot safeguard our economy. A collapse in the banking system would lead to an economic collapse.
At that time, I had to take charge of the country. Together, we initiated efforts to uplift the country’s economy, and today, we are seeing the results. Progress does not happen overnight.
Efforts have been made to reduce the loan repayment by USD 8 billion over a period of four years. The economy is once again developing. Now, we have reached a crucial turning point as a country. With the USD 8 billion in debt relief, we are now free to pursue a new economy. We have submitted the necessary legal framework to Parliament to create an export-oriented economy.
We need to progress from this point forward, and the banking system plays a crucial role here. How do we secure funding? Foreign investment is essential for the banks to thrive. We have not yet achieved this objective.
While we have repaired the fractured economic system and made strides, the broken political system remains unresolved.
Former leaders fled in fear during that time. What does this say about political leadership in our country? Can such leaders propel the nation forward without solutions? They fled in fear that day because they lacked answers.
Following the former president’s resignation, the country’s peace and stability began to deteriorate. Some urged me to resign as Prime Minister. Can a country progress under such a political system?
When we introduced the Economic Transformation Bill, Mr.Sunil Handunnetti filed a case advocating for an import-based economy. Today, our economic challenges stem from operating within an import-oriented economy.
Regarding Argentina’s Martin Guzman, some consider him a failure, while others suggest traveling the world to seek financial aid from leaders. I’ve stated firmly that neither I nor the Sinhalese nation is beggars. Despite this, some still advocate for change. Does this imply advocating for an import-based economy?
Once, I questioned former President Gotabaya Rajapaksa about his decision to lower taxes against the advice of the International Monetary Fund during an economic crisis. He explained that businessmen had urged for tax reductions, which is true. I am aware of this. People also questioned why I hadn’t reduced taxes. President Gotabaya Rajapaksa acted, but today, few support his decision. Today Mr. Gotabaya Rajapaksa has isolated.
We must choose wisely and advance with the program that our country truly needs, avoiding the lure of unrealistic ideals.
It’s crucial to grasp the truth and take decisive action. The decisions we make today will shape our future. As we rebuild the nation’s economy, we must also reform our political system. This entails cultivating individuals who can shoulder responsibility and progress, and who bravely speak the truth without fear. Without this foundation, our country lacks a viable future.
Honesty has always been our policy. In politics, there should be no fear of speaking the truth, irrespective of one’s stance towards the government. I united people from various political factions to lead this government forward. While party discipline was lacking, governmental discipline prevailed. Despite challenges, we garnered support, including from young MPs of Podujana Peramuna, who joined us without regard for their political futures. Our political system has yet to match the economic groundwork we’ve laid today. This must be our focus moving forward.
Senior Adviser to the President on National Security and Chief of Presidential Staff Sagala Ratnayaka;
When Mr. Asela Fernando convened the association meeting on April 22, 2022, our country was amidst a severe crisis, nearing its peak. At that time, Mr. Ranil Wickramasinghe was a Member of Parliament, the sole representative of our party. Everyone urged him to attend and address the bankers gathered there. I vividly recall the questions posed to him on that day and the guidance he imparted.
During the meeting, he stressed the importance of engaging directly with the International Monetary Fund (IMF). He had already raised this issue in Parliament and with government leaders. Upon assuming the presidency shortly afterward, he swiftly began addressing each of these challenges step by step, implementing the advice he had advocated.
Initially, we prioritized law and order, implementing numerous reforms to shape the current state of our country. This included efforts to manage tax policies and public expenditures effectively. Sri Lanka achieved a significant milestone as the first country in the region to receive a Governance Assessment Report from the International Monetary Fund. Based on this report, we initiated measures to address 15 key issues, including combating fraud and corruption.
As a result, we have attained a degree of stability today. Our on-going debt restructuring program is progressing successfully. We seek the support of the banking sector to bolster the country’s economy. With your collaboration, we can accelerate the country’s development significantly.
The event was attended by Advisor to the President on Parliamentary Affairs Ashu Marasinghe, Director-General of Presidential Trade Unions Saman Rathnapriya, Colombo Port City Economic Commission’s Chief Operating Officer, Revan Wickramasuriya, Chairmen of both public and private banks, Secretary of the National Bankers’ Association Asela Fernando, bank officers, executives, and various individuals from the banking sector.
President Ranil Wickremesinghe emphasized the necessity of an advanced education system combined with modern technology to move the country forward with a new economy. He noted that educational reforms are currently underway to achieve this goal.
President Rani Wickremesinghe made these remarks today (06) during a ceremony at Hall De Galle in Galle. The event marked a significant step towards educational modernization, with the provision of 200 Smart Classrooms and 2000 Tabs to 200 schools in the Southern Province.
Following a request by the Minister of Health and Industry, Dr. Ramesh Pathirana, the Government of India allocated RS. 300 million to the Southern Provincial Council for this project.
Of the 200 schools selected schools, 150 are in the Galle district, while the remaining 50 schools are in the Hambantota and Matara districts.
Additionally, 2000 Tabs were distributed, with each of the 200 classrooms receiving 10 tabs.
Symbolizing this occasion President Ranil Wickremesinghe presented a commemorative gift to the Indian High Commissioner, Mr. Santosh Jha.
In his further remarks, President Wickremesinghe stated:
Currently, the world is advancing rapidly with modern technology. Consequently, our country’s education system must also progress in tandem with these technological advancements. The Ministry of Education has already initiated necessary educational reforms to achieve this goal.
In the past, we introduced several educational policies that were appropriate for their time. However, given the current technological advancements of today, there is a pressing need for new reforms in the education sector to ensure our education system remains relevant and effective.
Thus far, we have launched the establishment of Artificial Intelligence (AI) clubs in schools. Countries such as England and America began integrating AI technology years ago. To ensure the sustainability of our newly launched AI program this year, it is essential for teachers to undergo comprehensive training. The government is actively developing training programs and infrastructure to bolster this initiative. There is also a plan to elevate existing Central Colleges and National Schools into specialized institutions focusing on artificial intelligence.
We deeply appreciate the support extended by neighbouring India in advancing modern technology. Prime Minister Narendra Modi has expressed interest in establishing an Indian Institute of Technology (IIT) campus in Sri Lanka, which is highly appreciated.
Additionally, negotiations to enhance cooperation in the energy sector with India are progressing successfully. I had discussions with Mr. Elon Musk in Malaysia, and his internet technology is anticipated to be introduced in Sri Lanka following Parliamentary approval.
This development will facilitate the provision of technical education to students in remote areas. Presently, the Southern Province has emerged as a region showcasing exceptional educational talent. Today, the first Dutch school in the Southern Province has evolved into Baddegama National School.
By leveraging modern technology to nurture future-ready generations, we aim to position our country as a global leader.
Minister of Education Dr. Susil Premajayantha:
The Free Education Act has brought about a transformative change in Sri Lanka, significantly increasing the literacy rate from 46% to 93%. In today’s technological age, the integration of Artificial Intelligence and modern classrooms is crucial. We appreciate India’s assistance in this endeavour.
Today, 200 schools in the Southern Province have been equipped with comfortable classrooms and 2000 Tabs. Moving forward, the schools will undergo digitization, with selected 1250 schools already being connected. Over the next three years, we aim to digitize 10,026 schools and provide necessary teacher training. Graduates with technical expertise from our universities enjoy a 93% employment opportunities in the job market. We must seize the opportunity to lead globally through modern technology”.
Minister of Health and Industry Dr. Ramesh Pathirana:
We deeply appreciate the Government of India for their support in this endeavour. We are currently experiencing one of the greatest periods of this century. The Free Education Act introduced by a former Minister of Education Mr. C. W. W. Kannangara, a native of Galle, significantly increased school enrolment from 52% to 99%.
The numbers of schools expanded from 3000 to 10,000, and instead of a single government university, 13 universities were established. Annual university admissions surged from 250 to 45,000 students. This transformation has propelled Sri Lanka from lagging behind in the global industrial revolutions to progressing alongside the world.
In the next century, leveraging Artificial Intelligence, computer knowledge and modern technology presents an opportunity to advance in parallel with the global community. A Smart educational framework must be established to achieve this goal. President Ranil Wickremesinghe is currently spearheading educational reforms with a visionary approach.
Indian High Commissioner to Sri Lanka, Mr. Santosh Jha:
As India’s neighbour, we consistently extends support to Sri Lanka. Sri Lanka holds a crucial position in our foreign policy. India remains steadfast in its commitment to providing essential infrastructure and technical knowledge support to Sri Lanka.
The event was attended by Deputy Speaker Ajith Rajapaksa, State Minister Mohan Priyadarshana, Member of Parliament Sampath Athukorala, along with a delegation of education officials, principals, and students from the Southern Province.
State Minister of Higher Education Dr. Suren Raghavan, urged non-academic staff across all universities to resume work promptly, emphasizing the importance of minimizing disruptions for the youth who are the future leaders of the nation.
Speaking at the press briefing titled Collective Path to a Stable Country” held at the Presidential Media Centre yesterday (05), he committed to prioritizing the demands of university non-academic staff, including addressing overtime allowances for April.
These concerns will be forwarded to the Udaya Seneviratne Committee and proposed for inclusion in the 2025 budget, he added.
State Minister Raghavan further explained,
Fourteen thousand six hundred (14,600) non-academic employees from 17 universities and 19 joint post-graduate institutions have been on strike for 65 days, severely disrupting the higher education sector. This has adversely affected the lives of 250,000 young individuals, who are crucial to the future of the nation, by causing confusion and wasting their time.
These youths, who have already faced significant mental strain from the Covid-19 pandemic in 2019, economic crises in 2020, and various challenges in 2021, represent the 18% selected to enter universities despite these hardships. It is a national tragedy that their lives have been further complicated by this strike.
As someone deeply committed to education, I am profoundly saddened that universities in our country remain closed during my tenure, knowing first-hand the value of education. While the Treasury did not approve their requested salary increase, citing similar demands from other sectors, they have assured that these requests will be considered for inclusion in the 2025 budget.
It has been revealed that, the Federation of University Teachers Association (FUTA) is behind this situation. Since 2010, they have continuously increased their salaries and are now attempting to raise the salaries of non-academic employees while imposing various conditions. In their latest letter, they stated that university funds should not be used to resolve this issue. How can they impose such conditions? Universities are funded by public tax money, not their private asset. They cannot be allowed to fall under the control of a professors’ mafia. Their professional goal should be to advance education and secure the future of our children.
The demands of non-academic employees are reasonable. I promise that their requests will be forwarded to the Udaya Seneviratne Committee and included in the 2025 budget through President Ranil Wickremesinghe. Additionally, we are working to pay their two months’ salary and overtime for April. Days not reported to work will be treated as holidays, allowing them to return without any penalties. I urge the non-academic staff of all universities to resume work promptly to avoid further disrupting the lives of the youth who are the future of our country.
[As a typographical error appeared in sub-heading 1, paragraphs 1 and 2 of Part IV (posted onJune 20, 2024) of this series, the error 1989 is being corrected as 1994. Para 2, line 5 should be read as: Janith Priyantha Vidyatilaka Vipulaguna who obtained the highest number of preferential votes under Sri Lanka Progressive Front (SLPF) ticket, took oaths in the Parliament and resigned. In Parliament if an elected MP wants to resign, he should first take oaths and then resign. Then only the party can appoint the next person in the list. All 10 in the SLPF (in other words JVP) list took oaths and resigned paving the way for Nihal Galappaththy, who was not in the list to be appointed as JVP’s first MP.]
1. For What Reasons People Give Anura Kumara and NPP a Chance?
For what reasons people give Anura Kumara and NPP a chance is the million-dollar question. In our previous articles we have clearly stated that JVP/NPP is not new to governance that it has formed political alliances with center- left (CBK and MR), militarists (Fonseka and Fonseka led DNA) and ultra-right (MS-RW-TNA) yahapalanists respectively. JVP showed its incapability in managing the four ministries entrusted to them by CBK in 2004 (Please refer part IV of this series).
Has the JVP/NPP shown any maturity and ideological soundness to take up themantle of powerby itself, without aligning itself with any other political party or group or forming a coalition? We have stated in part II of this series the favourable conditions that existed for SWRD in 1956, Sirimavo in 1970, JRJ in 1977, CBK in 1994, MR in 2005 and 2010, GR in 2019 and Anura Kumara or NPP do not have such favourable economic, political and socio-cultural factors that contribute to an electoral victory. Furthermore, we have expressed that personal attributes, leadership qualities and knowledge and expertise of Anura Kumara (Please refer part III) do not pave the way for him to lead in the race to the Presidential House.
What are NPP’s policies? What are its policies related to national economy, politics and governance, international affairs, education, health and culture? Here we left aside many government affairs for the sake of brevity.
New voters or first-time votersaccording to the Election Commission will be in the range of 200,000; if all of them vote for NPP can it win?
Anura Kumara and his fellow travelers dream; all are over confident and over optimistic; Anura Kumara behaves like as he has won already; he declares what he is going to do; already he has selected his Cabinet of Ministers; what will happen to him if he does not win? In our article posted on 14, December 2023, we saw him as a modern-dayIcarus. Icarus was warned not to fly too low nor too high, lest the sea’s dampness clogs his wings or the sun’s heat melt them. He ignored instructions not to fly close to the sun causing beeswax in his wings to melt. He felt from the sky, plunged into the sea, was drowned and doomed.
What solutions he has, to make the prevailing temporary stability to a permanent and sustainable stability, pay foreign debts, reduce cost of living, alleviate the economic burdens majority of the population encounter? He only seeks power; give us power. For what? Anura Kumara lacks ingenuity and resourcefulness, in short, a vision; he only promises;his catchy slogans need to be theorized. How he is going to achieve what he promises? He has limited his action only to lecturing people.
Has the NPP really understood the present crisis which is not only economic or financial? It is a combination of political, geopolitical, social and cultural crises; some time ago addressing a meeting at Udadumbara, Anura Kumara said that there are no Sinhala films in Netflix. Is that our cultural problem?
What guarantee he can give, the country will not face a similar crisis as in 2022?
What is the power base of NPP? Men and women of affiliated organizations? Blood sucking lawyers? Alienated and vainglorious academics or artists? Retired tri- forces personnel or retired corrupt policemen? (a columnist who identified himself as OneWho Knows” referred to a Deputy Commander of the Sri Lankan troops in the UN Stabilization Mission in Haiti in which about 114 Sri Lankan troops including 3 officers were involved in the sex exploitation of hundreds of children”; it is said that the person who is alleged to have shot Nandasiri Wijeweera at the crematorium at Kanatta is in the NPP ranks; a person who knocked down a pedestrian after drunk driving has become the spokesperson of retired police brigade; who knowswhether the retired army men involved in recruiting mercenaries to Russia/Ukraine are among the NPP ranks?).
It is not surprising that Anura Kumara when he worked closely with yahapalanists, saying that Shani Abeysekera was the best officer in the entire police force and he shed copious tears about the disciplinary action taken against him. We will not be astonished if the NPP lays a red carpet to the most hated and most feared police officer by the JVP/DJV during 1988-1989 Udugampola, if he was alive today!
Everyone knew howRanjan Ramanayakabehaved during yahapalana regime releasing his infamous tapes; telephoning judges, bribery chiefs and law enforcement officers including Shani Abeysekera unduly influencing their investigations and judgments; a man who said that he was ready to wash pots and pans of Ramanayaka Sir, now has joined the NPP; we don’t know for what purpose; it cannot be to wash pots and pans.
NPP has become a political salad; only thing they do is picking people and building partnerships with individuals; still they have not enlisted LGBTIQ+ community; very soon they will open a wing for them also as they have supported RW’s Gender Equality Bill. Its ideological positioning is questionable. It mobilizes all excluding the working class. More than the working class and peasantry, today NPP work closely with the capitalists, upper middle class and diaspora, cooperating with the Indians and the Western Block.
Why does NPP mobilize ex-servicemen? Isn’t it a strange paradox, a party that paid lip service to Marxism/Socialism some time ago, enlisting former army and police personnel who were a part of chief instruments of state power, an organ for the oppression of the oppressed class? Isn’t it an attempt to convert them into harmless icons, to canonize them, so to say, to surround their names with a certain halo” as Lenin said in The State and Revolution” (1917)? They held privileged positions as officials of organs of state power.
Anura Kumara addressing a meeting at Batticaloa recently said that he is going to disarm paramilitary forces. How he is going to do it? Entrusting that work to ex-servicemen? This again demonstrated how naïve he was; State Minister Sivanesathurai Chandrakanth (Pillaiyan), shot back immediately, recalling how JVP sought arms and ammunition from the Tamil Tigers. How did JVP/DJV get the technology to detonate claymore mines in the South?
Those who are in glass houses should not throw stones at others is mild enough to describe Anura Kumara’s naivety.
Or else, does NPP mobilize ex-servicemen to engage with Sri Lankan armed forces after an election, to train and command storm troopers?
NPP leaders demonstrate their lack of knowledge of political history when they make noisy utterances at public meetings.
At Mannar, Anura Kumara said that the Tamils (read as secessionists) decided to have a separate government because the government in the South burned down the Jaffna library; at the same time, he named some living and dead top UNP politicians alleging that they had masterminded it; sadly, he did not mention the names of the police officers who were with those politicians. Is he aware that certain retired police officers who joined the ranks of NPP, in their newspaper articles written in English had cleared the names of those politicians named by Anura Kumara as masterminds of that heinous crime? What is the most heinous crime? Burning Jaffna library is equal to burning of tea factories, bus depots, railway stations, transformers and agricultural service centers. Anura Kumara should study that the Tamil separatist movement began several decades ago before the burning of Jaffna library.
Anura Kumara is very smart in copying what other contenders say. He also says to increase production, but falls short of how he is going to do it. Addressing a meeting Youth Api” at Kekirawa he began talking about entrepreneurship, copying what Dilith Jayaweera says.
Anura Kumara showed again that he has short memories or total ignorance when he declared that when he comes into power, he will set up a new Development Bank which will provide initial capital without collateral. W. D. Luxman, the former Governor of the Central Bank dared promise a DevelopmentBank which resulted in his removal. In the late 1950s Philip Gunewardena for the same reason was expelled from the Cabinet of Ministers and SWRD received a bullet.
Has Anura Kumara studied why Development Finance Corporation of Ceylon (DFCC) was set up in 1955 as Sri Lanka’s pioneer development finance institution on the recommendations of the World Bank and the National Development Bank (NDB) which begun its operations in 1979; both institutions became two more licensed commercial banks, the latter listed in the Colombo stock Exchange (CSE).
Anura Kumara does not know what he says at different occasions; addressing a meeting at Batticaloa he said that Sri Lanka is not a big industrialised country; that our country is not endowed with rich commercial resources; but NPP organised a meeting of technologists importing a lecturer from the US.
He does not have the capacity to address different audiences; to address diverse audiences to suit their needs; saying specifics to suit varied listeners; he utters the same muck at every meeting; the above meeting was not different.
On 29 June JVP/NPP hosted a meeting called Quantum Leap” importing a US based Sri Lankan Professor to lecture on innovation; at that forum it was announced that the NPP had formulated its Research and Development Policy”. First a word on Quantum Leap”. It is a hackneyed term in vogue since 1956 originated as quantum jump in Physics denoting a sudden change, later transferred to other important advances; many use it in different discourses as they use the most hackneyed term Paradigm Shift”. Our politicians and theoreticians see everything as a paradigm shift. For the educated” Sri Lankan politician even a fellow politician jumping from one group to another becomes a paradigm shift!
Have Anura Kumara and NPP studied the work of our own institutions such as Industrial Technology Institute (ITI: successor to former Ceylon Institute for Scientific and Industrial Research (CISIR; established in 1955), National Institute of Fundamental Studies (NIFS: former IFS, established in 1981), National Science Foundation of Sri Lanka (NSF: successor to Natural Resources, Energy and Science Authority of Sri Lanka (NARESA) established in 1981), and former Ministry of Science and Technology, before embarking on formulating a Research and Development Policy”? Anura Kumara and NPP are lagging few decades behind and at the same time attempting to reinvent the wheel! What he and his fellow travelers must do is harnessing expertise available in these institutions and streamlining their activities.
The writer guesses that the above-mentioned lecture was nothing more than repeatingMariana Mazzucato’sconcept of Entrepreneurial State (The Entrepreneurial State: Debunking Public vs Private Sector Myths” (2013)). The author argues that US economic success is a result of public and state funded investments in innovation and technology. Entrepreneurial State is the primary risk taker in innovation-based investments; state influences on innovation and technological development within the private sector, which popularizes the government created technologies. Apple (iPhone, iPad devises), GPS navigation, touch screen technologies, voice recognition, smartphones are examples. She argues that the private sector undertakes the least risky part of technological innovation and entrepreneurship. She introduces the concept of Entrepreneurial State, where the state is actively takes risks by investing in innovation-based projects.
There are many more state led innovations. Defense Advanced Research Projects Agency (DARPA) of US Department of Defense is responsible for the development of many emerging technologies.
It is a fashionable trope, sounding hip (stylish/trendy/ fashionable); for the JVP/NPP it is better than saying that they are going to establish an industrial/ socialist/ or proletarian state; a synonym for saying that we will not oppose bourgeois individualism.
Problem is how we can create a production culture that will produce forces of production (labour, capital etc.).
How does Anura Kumara go for innovations, new technologies and innovation-based investments having a hand to mouth economy in Sri Lanka, although the JVP/DJV had mastered galkatas” technology? It’s only a pipedream.
So, Anura Kumara has gone far ahead than Xi Jinping! With all those industrial progress and innovations Xi Jinping admitted that China is relatively weak” in innovation and needs more talent to dominate the tech battlefield” at a National Conference held in Beijing on 25 June and urged to innovate in the tech sector. While praising China’s progress he highlighted several shortcomings. Only a few days ago China’s Chang’e 6 robotic lunar lander came back with lunar samples exploring the far side (dark side) of the moon!
Recently Handunnetti, NPP’s self-proclaimed economic wizard” addressing a meeting at Badulla, branded Bill Gates, Elon Musk et al as economic assassins” ; he compared Musk to casino owner James Packer; but apologized a day later; is it with these people Anura Kumara going to have a Quantum Leap in innovations, technology and investment?
Any reason to justify why people give Anura Kumara and NPP a chance?
2. RW/SP/AKD -Whom to Select?
In many occasions and about many issues RW, Sajith Premadasa and Anura Kumara say the same thing portraying themselves as a three-headed monster. So, the people are flabbergasted which head to keep turning the monster into a normal human being. Or are the people looking for a hero to slay this monster as in Greek mythology without allowing it to ravage the country anymore? We cannot keep chaining the maiden to the cliff to feed the monster anymore.
Do we see any difference between Ranil Wickremasinghe’s, Sajith Premadasa’s and Anura Kumara’s policies? Nothing. It is like selecting a bride from among three women, each of them suffering from three different incurable diseases.
Both Anura Kumara and Sajith Premadasa do not give alternative solutions to the pressing problems Sri Lanka is engrossed with. Both bellow rhetoric full of populist fantasy to get votes rather than offering realistic alternatives about economy, corruption and how to deal with the IMF, all restricted to platform oratory. None of them say how they will increase state revenue. People are fed up with catchy slogans such as Horu allanawa”, fighting corruption, recovering stolen assets, bringing back stolen money parked abroad and many more.
Both are not concerned about the draft law RW and Wijedasa jointly presented to the Cabinet that allows forfeiture of the proceeds of ill-gotten money, after the IMF insisted on the promised legislation be enacted before it releases its 3rd tranche of US $ 337 million.
According to rhetoric and fantasies of both Anura Kumara and Sajith Premadasa and their hurrah boys, it seems that already both have won the Presidential Elections even before signing their nomination papers. Both instill in the minds of voters that there are two Presidential posts in Sri Lanka! Only King Pandukabhaya in our history had created a title called Re Rajaya” (administrator after nightfall?) which he bestowed upon his uncle Abhaya. OnlyJVP/DJV has any experience in such an arrangement as it was running a punchi anduwa” during 1988/1989!
At an ITN Thulawa” talk show Anura Kumara said that he has to carry forward the IMF programme, reduce the number of government officers and restructure loss making enterprises; at a Derana 360” discussion he said that if the debt restructuring has not occurred by the time they assume office, they must step into ensure a fair restructuring process. He accepted that he cannot do without restructuring; that they must proceed in this direction to address the crisis that has emerged in the financial sector.
Both SJB and NPP have vowed to renegotiate IMF agreement in case they come into power; in June Central Bank Assistant Governor said there is no solution other than IMF; how NPP is going to make use of CBSL expertise if it comes into power? Why NPP was silent about the unrealistic and unethical pay hike given to all employees in the Central Bank? This again demonstrated its dubious nature.
Governor of the Central Bank at a press conference held in December 2023 said, that Extended Fund Facility (EFF) agreement with the IMF should continue for the next 4 years under any government, in order to get the debt relief and international financial support required; he warned that unilateral withdrawal from the IMF-EFF agreement will result in severe implications; any deviation from this path would bring detrimental and irreversible consequences to the financial system and the economy, he reiterated.
Mahinda Siriwardena, Secretary Finance, said even if Sri Lanka achieves the goal of zero corruption, tax revenue still has to be increased to bridge the budget deficit and lessen the country’s debt burden, delivering the Prof. K. Dharmasena memorial lecture at the Kelaniya University on 30 January 2024. He added that home grown” solutions are not the remedy; asset recovery, collection of taxes in arrears, elimination of waste, while all being essential actions do not serve as an alternative to the macroeconomics reforms.
IMF expressed about the continuity of its programme in view of the next Presidential Elections; IMF Chief of Mission for Sri Lanka, Peter Breuer has revealed that IMF was willing to listen to different views on how those objectives are being achieved and alternative proposals needed to be realistic and achievable within the timeframe of the programme; continuity of its programme whoever comes into power, alternative proposals needed to be realistic and achievable within the timeframe of the programme are the key words of his statement. Do SJB and NPP have such realistic and achievable alternative proposals is the biggest question. What was inferred was whoever comes into power he must adhere to the IMF programme which requires Sri Lanka to do basically two things; expediting external debt restructuring and increasing state revenue substantially. What are NPP’s plans for that? How does it achieve revenue targets? IMF has set the guidelines; even a future government will have to meet these specified revenue goals as taxes.
NPP is free to say anything about the economy. But who will spearhead the economy without the assistance of the Central Bank?Is NPP going to retain Nandalal Weerasinghe as the Governor, a former IMF employee, who represents American interests, always photographed with Julie Chung US Viceroy in Sri Lanka, brought by GR, notwithstanding political rivalries between Rajapaksas and Weerasinghes? Is it the reason the NPP was silent about the unrealistic and unethical pay hike given to all employees in the Central Bank? If so, NPP should tender an apology to him for gunning down his uncle, former UNP MP for Tangalle callously called by a name of a sleep-inducing indigenous plant?
How both Anura Kumara and Sajith Premadasa would reach a deal with the International Sovereign Bonds (ISB), the private commercial creditors, settling their loans by their future governments? They are afraid of telling the truth or rather discussing these critical issues. Criticizing is the easiest way.
3. Reenactment of an ancient Svayamwara”
The three-headed monster like in an ancient Svayamwara” (self-choice) ceremony are wooing the Sinhala, Tamil and Muslim voters. The only difference is, in an ancient Svayamwara” ceremony, the woman chose a man as her husband from a group of suitors who demonstrated their skills on an appointed day.
UNP, SJB and NPP leaders and their followers are busy promoting themselves and their candidates in view of the Presidential Election.
The three suitorsare engaged in a competitionto secure the support of TNA and other Tamil parties and to woo Tamil voters in the North and the Vanni seeking their endorsement at the Presidential Election than any other group. Sajith Premadasa visiting Kilinochchi on 16 June, declared his intention to implement the 13th Amendment in full; Abraham Sumanthitharan was in attendance.
On the following day Anura Kumara was in Jaffna; he had a private meeting with Sumanthitharan; Sumanthitharan said afterwards that during his discussions Anura Kumara had admitted that the Tamils should have the right to decide on their requirements and admitted that Provincial Councils had failed to provide solutions to the problems of the Tamil people; later in London Anura Kumara said that they will continue with the Provincial Councils. He said that it is in the law. We do not intend to repeat again and again the atrocities committed by the JVP/DJV during 1988/1989 opposing the 13th Amendment and Provincial Councils.
Thus TNA received assurances from all three contenders as regards to full implementation of the 13th Amendment; all three promise going beyond it to solve the ethnic crisis”, all trying to win North and East votes; but RW is having an advantage over the other two because he was the person who signed the Norwegian crafted 2002 Ceasefire Agreement (CFA) acting above the President at the time CBK ; recently Sumanthitharan regretted the LTTE- TNA joint decision to boycott 2005 Presidential Elections which caused as some say RW’s defeat, giving an advantage to MR.
After Sajith Premadasa ’s visit, G.L. Pieris visited Jaffna to promote Premadasa’s candidature; he said that he would not give empty promises; Pieris who supported CBK, RW, MR, GR and Dulles in his earlier political avatars is the ideal person to woo Tamils. Tamil separatists have a rapport with him as RW’s chief negotiator with Tigers. These are the games academic- politicians play aiming a National List slot that will culminate with the coziest seat at the Ministry of Foreign Affairs whoever at the helm.
But S. Sritharan, the newly elected leader of TNA rejects the 13th Amendment as inadequate to meet aspirations” of the Tamils. All others also reject it. What do Premadasa and Anura Kumara going to do? Are they going to have a referendum as in South Sudan, Timor etc. and create a separate state amalgamating the North and the East?
All three contenders promise to hold Provincial Councils elections; but people have not forgotten who supported the postponement of Provincial Councils elections; RW, SP, AKD and TNA together passed an amendment to the Provincial Councils Elections Act to put off Provincial Councils elections indefinitely.
Sajith Premadasa visiting Jaffna in mid-June said he is going to develop North, then the North could contribute more to the GDP; now lowest province compared to Western, Central and North Western provinces he said. He promised to establish international cricket stadia, one in Jaffna and another in Batticaloa. They were the people who criticized Suriyawewa as an international stadium where cricket matches are not being played, Hambantota as a port where ships never call at, Mattala as an airstrip where no planes land.
But RW has won the support of Douglas Devananda, Karuna Amman. Pillaiyan, Thondaman and many other Tamil and Muslim politicians. This will be discussed under Ranil’s StrategicManeuvers in the next part of this series.
On 2 July 2024, RW after his special address in the Parliament paid a tribute to Sampanthan the late leader of the TNA; Sajith Premadasa replying to RW also wanted to pay his condolences and a verbal battle followed with the Speaker, despite Speaker’s assurance that a special day will be allotted for parliamentarians to pay their respects to the dead leader of the TNA; anyway like a kid who grabbed a balloon Premadasa succeeded.
Both speakers said Sampanthan worked for territorial integrity and sovereignty of Sri Lanka, forgetting how TNA under his leadership acted as the mouthpiece of LTTE, condoning all atrocities committed by it.
On 3 July 2024, when the body of Sampanthan was brought to the Parliament Anura Kumara was seen meekly escorting the coffin as if he was the cross-bearer in a Christian funeral procession rather than a pallbearer!
RW and SP both provide handouts; RW misuses public funds and state machinery; SJB promises a mid-day meal to all school children; distributing busses and smart class rooms” he has become a joke, writingcat sat on a mat”, something in Tamil, drawing diagrams ondigital boards, asking the children whether they know Japanese. The school children especially primary school children cannot stomach what Premadasa lectures; he does not have any knowledge of the audience he addresses; he does not understand that the macro level politics and economics he preaches are not suitable to his audience; the most harmful aspect of his lectures is the weightage he gives to English and IT, creating confusion, ambiguity, anxiety, discontent, frustration, maladjustment and alienation among rural and semi- urban children. His utterances about knowledge-based economy, human capital are not novel concepts although he dramatizes them in front of empty receptacles. Why the government and the Ministry of Education allow him to play political games with school children, teachers and parents? Does RW think that he has given Premadasa an opportunity to dig his own grave? Fonseka, the SJB Chairman alleged what Premadasa uses is casino money.
Both SJB and NPP promise to tackle corruption, waste and mismanagement and to punish wrongdoers; all these promises are populist and unrealistic; both do not address the real economic issues. Both promise to investigate Easter Sunday carnage; Premadasa has forgotten that he was in the Yahapalana government when Easter Sunday massacre took place; Anura Kumara has forgotten that the NPP had accommodated Mohammad Yusuf Ibrahim, one of the country’s richest spice exporters in its 2015 national list, that his two sons Iham Ahmad Ibrahim and Imsath Ahmad denotated their explosives at the Shangri-La and Cinnamon Grand Hotel respectively and daughter- in- law denotated a bomb at Dematagoda.
Both SJB and NPP support RW’s Gender Equality Bill. Harini Amarasuriya the neo-liberal voice of NPP has become the spokesperson of LGBTIQ+ community, both in and outside the Parliament.
Recently at Ada Derana, At Hyde Park Corner” discussion, Nandalal Weerasinghe said, salaries must increase when overcoming a crisis”. Increasing only for Central Bank officials? During the crisis or after overcoming the crisis? He further said that the manufacturing economy is a myth”. If it is so how RW, Sajith and Anura Kumara going to increase export economy, as all of them want to make Sri Lanka an export economy? For what purposes FDIs sought after? With what exports they create an export economy? Soya beans and peanuts?
NEXT: JVP/NPP behavior during the crisis in 2022; Internal Contradictions within NPP; JVP/NPP volte-face;Ranil’s strategic maneuvers;Political dynamics and unpredictable nature of voters;Entrepreneurial State;Future of Sri Lanka as an independent sovereign state under US and Indian hegemonic influence.
I agree totally with my Senior colleague at Arunachalam Hall who on 24 February pointed out on the LBN the dangers of unbridled power enjoyed and abused by the Central Bank (CBSL). They relished this privilege even before the recent IMF inspired independence. It was the mandarins of the CBSL who controlled both the monetary policy and the fiscal policy of the country by hogging the top positions of both the Monetary Board and the Ministry of Finance. It is this unholy alliance that resorted to profligate borrowing, which stifled development and bankrupted the country.
At present the Central Bank has been provided with an ‘autonomy’ by the new Central Bank Act which says that the:
1) The Central Bank shall have administrative and financial autonomy.
(2) The Central Bank shall be autonomous and accountable.
The Act fails to specify the ‘accountability ‘ requirement leaving the CBSL to interpret it to their advantage like on policy on salaries.
CBSL has nearly 1000 professionals under one roof. Even before the present pay hike they enjoyed the best of salaries in the public service. The CBSL raised the salaries of its staff by between 29.53% (most junior office assistants) and 76.97% for its highest grade of Deputy Governor. With the revision an office assistant (KKS) gets a monthly salary of 198,000 while a Deputy Governor collects a cool Rs 1.7 million. This lavish pay hike will result in CBSL’s monthly salary bill rise by 50 percent. This is done while making substantial losses. CBSL staff are entitled to foreign training, mostly leading to a PhD. Their posts are pensionable and are also covered with a provident fund where the CBSL contribution is a high 29 %. On top of all these they wallow in other perks like loans at interest rates as low as 1%. The public wishes to know whether the contribution of the CBSL to the nation is commensurate with these superlative rewards.
The recent history of this expensive so-called professional body has not been above board and blameless. Public is aware of the Greek Bond scandal and the the outragous Arjuna Mahendran bond scam. The issue of 12 billion dollars of ISBs at high rates of interest during the Yahapalana regime cannot be swept under the carpet.It has now become the bone of contention.
State Minister of Finance tried to exculpate the CBSL on the astronomical pay hike, stating that the move targeted positions facing scarcity of replacements, to retain qualified personnel and insisted the necessity of competitive salaries to prevent talent drain from the Central Bank.
CBSL is staffed by economists specializing in banking, accounts, statistics etc. There is a surfeit of economists employed in the universities, as school teachers and in the public service and the private sector who would be happy to join the CBSL with the superlative salaries and perks. It is also a myth that a PhD is essential to serve in the CBSL. Mr.A.S. Jayawardhana who served the Bank with distinction as a Deputy Governor and Governor did not have a doctorate. He is credited with the successful restoration of the CBSL to normalcy after the disastrous LTTE bomb attack.
The departments of the Bank are grouped into four key business clusters, namely – Economic & Price Stability Cluster, Financial System Stability Cluster, Agency Functions & Corporate Services Cluster and Legal & Enforcement Cluster. A department is headed by a Director (or equivalent). By 2014 there were 27 Departments. Among the responsibilities of these Departments is the orderly and smooth functioning of the domestic foreign exchange market. This consist of activities such as;
*Continuous monitoring of the foreign exchange operations of licensed commercial banks and National Savings Bank and Authorized Money Brokers Bank Supervision is a major function for which there is a separate department which is responsible for -the regulation and supervision of licensed banks by;
Licensing of commercial banks and specialized banks in Sri Lanka and
Conducting continuous supervision of licensed banks and
Formulating and issuing prudential regulations to licensed banks.
Reviewing and amending the relevant Acts and regulations in line with current market developments, international standards and best practices.
On bank supervision the Foreign Exchange Act of 2017 provides the responsibility of the commercial banks to make prompt reports on foreign exchange transactions.At Article 80. (1) Every commercial bank shall, as soon as may be after the close of business at the end of such period as may be prescribed by the Monetary Board, make a report to the Central Bank setting out the volume and composition of its purchases and sales of foreign exchange during that period, and shall furnish such additional information as the Central Bank may require with reference to such purchases and sales and to the movements of its accounts in foreign currency.
Regulations have been made under Section 29 read with Section 7 of the Foreign Exchange Act, No. 12 of 2017 specifying requirements related to Repatriation of Export Proceeds to Sri Lanka by Exporters of Goods.( Gazette 2145/49 – THURSDAY, OCTOBER 17, 2019) where every exporter of goods is required to repatriate to Sri Lanka payments received for the exportation of goods within 180 days from the date of exportation.
1. Every exporter of goods shall repatriate to Sri Lanka payments received for the exportation of goods within 180 days from the date of exportation.
2. Every exporter of goods shall submit related documentary evidence on each exportation to the respective authorized dealer or restricted dealer that receives the payment.
3. Central Bank shall have the right to introduce an appropriate mechanism to monitor compliance of exporters of goods with this requirement and also to institute actions against any non-compliance with the aforesaid requirements of this Heading.
Subsequently the Monetary Board issued Rules published in the Gazette Extraordinary No. 2215/39 dated 18.02.2021 on repatriation of export proceeds.These rules stipulate that:
1. Every exporter of goods shall: (i) receive the export proceeds in Sri Lanka in respect of all goods exported within hundred and eighty (180) days from the date of shipment, and (ii) forthwith submit all related documentary evidence on each and every receipt of export proceeds in respect of every export of goods made, to the respective Licensed Commercial Bank or the Licensed Specialized Bank (hereinafter referred to as Licensed bank”) that receives such proceeds in Sri Lanka.
2. Every exporter of goods shall, immediately upon the receipt of such export proceeds into Sri Lanka as required under this Rule, convert twenty five per centum (25%) from and out of the total of the said exports proceeds received in Sri Lanka into Sri Lanka Rupees, through a licensed bank.
3. The requirement of converting the aforesaid twenty five per centum (25%) from and out of the export proceeds received in Sri Lanka, shall continue, until any other percentage as may be determined by the Monetary Board, from time to time.
4. All licensed banks shall be required to mandatorily monitor, strictly, the receipts of exports proceeds in Sri Lanka within the period as stipulated and the conversion of such proceeds as required in this Rule, and shall maintain all documentary evidence relating or in connection thereto.
5. All licensed banks shall submit reports to the Director of the Foreign Exchange Department of the Central Bank of Sri Lanka as may be required from time to time and provide unencumbered access to the officers of the Central Bank of Sri Lanka as may be authorized by the Governor or the Deputy Governor, as the case may be, to inspect or examine the records maintained under the Rule, and to examine and review all actions taken by such licensed banks in securing full and strict compliance with these Rules.
6. This Rule shall apply in respect of all goods exported and where the hundred and eightieth (180th) date from the date of the shipment and exports proceeds received to Sri Lanka on any date after 18 February 2021.
The Central Bank has failed miserably to supevise the commercial banks and implement these regulations. The dereliction of this primary duty has been disastrous and led to the bankruptcy of the country. It is a 50 billion dollar felony.
In an interview with the Aruna News Paper in December 2022, Dr. Wijeyadasa Rajapakshe, Minister of Justice has said inter alia that අපනයන ව්යාපාරිකයෝ බොහෝ ගණනක් මේ රටේ සල්ලි ඉතාමත් භයානක ලෙස පිටරට රඳවාගෙන එහෙ ව්යාපාර කරනවා කියලා. අපේ මිනිස්සු දුක්විඳලා ලේ දහඩිය හෙළලා හම්බකරගත්ත දේපළ පිටරට යවලා පවුල් කීපයක් දෙතුන්දෙනෙක්ගේ සුඛ විහරණය වෙනුවෙන් ඒ සල්ලි එහෙ පාර්ක් කරගෙන ඉන්නවා.සංඛ්යා ලේඛන ඇතුව ඉදිරිපත් කළේ ඩොලර් මිලියන පනස්තුනකට වැඩි ප්රමාණයක් වංචනිකව රඳවා තබා ගැනීම නිසා තමයි අපේ රටේ විදේශ විනිමය අර්බුදය ආවේ. මුළු විදේශ ණය ගත්තත් ඩොලර් බිලියන පනස්දෙකයිනෙ තියෙන්නෙ. ඊට වැඩි මුදලක් මේ අවුරුදු දොළහෙ රඳවා ගෙන තියෙනවා ඒ අය. මේ අපිට සොයාගත හැකි මුදල පමණයි. නමුත් මගේ තක්සේරුව ඊට වැඩිය දෙගුණයක්. අපේ රටේ අපනයන නීති ඉතාමත් ලිහිල් කර තිබුණා. ඒ වගේම කියන්න ඕන මහ බැංකුව කියන එක අර පිටකොටුවෙ දුම්කොළ කඩයක් තරමටවත් පාලනයක් තිබුණ තැනක් නෙමෙයි.
This scam was the focus of the debate in Parliament on 23.8.23 where Dr. Wijeyadasa Rajapakshe, Minister of Justice repeated that according to a Global Integrity Report d during the last 22 years export proceed that should have been repatriated back to the country but not sent back was USD 53.5 billion. The Central Bank and the Ministry of Finance have been evasive on why no action is being taken to ensure that this vast sum which is more than the total amount of our foreign debt of 37 billion USD. The State Minister of Finance merely stated that the Central Bank Governor has given an assurance that the funds that should be brought back to Sri Lanka will be brought back. He added that the government can look into later what happened in the past but what is important now is to stabilize the economy.
The real reason why it will not happen is with the covenant the government has agreed with the IMF. These conditions are in the Attachment I. to the Letter of Intent dated March 6,2023 signed by both President Wickremesinghe and the Governor of the Central Bank Nandalal Weerasinghe in the Memorandum of Economic and Financial Policies. AT Page 98 of the IMF Staff Report 23/116, it is stipulated in Article 21:
21. We will phase out the administrative measures imposed to support the balance of payments, including those introduced on an emergency basis, once conditions allow. These measures include import restrictions, exchange restrictions, multiple currency practices (MCPs), and capital flow management (CFM) measures. (ref footnote 36)
While the mentioned import restrictions, exchange restrictions, MCPs and CFMs could help mitigate FX shortages in the near term, we believe they should not be a substitute for the comprehensive policy package and ongoing macroeconomic adjustment. We are committed to phasing these measures out as the balance of payments stabilizes. To this end, by June 2023, we will prepare a plan for the phased removal of these measures during the program period as we make progress with achieving macroeconomic stability, particularly with respect to the exchange rate, debt sustainability, and financial stability, improved market access.
Reference foot note 36 the main CFM measures introduced or tightened in 2020-2022 and currently in force include:
(i) a repatriation requirement for exports of goods and services; (ii) a surrender requirement for exporters on proceeds from exports of goods;
(iii) a surrender requirement for banks on purchases of export proceeds;
(iv) a surrender requirement for banks on purchases of inward worker remittances;
(v) suspension of outward remittances on capital transactions;
(vi) restrictions on purchases of Sri Lankan ISBs by local bank”.
The restriction on repatriation was self imposed by the government by the **Letter of Intent dated March 6,2023. There is no explanation why the regulations were not imposed earlier. The only explanation is that exporters, Commercial Banks and the CBSL are complicit in this swindle. It is too big to have escaped the clutches of politicians.
**(The letter of intent should have been signed by the President and the Prime Minister who is the head of the Parliament which has plenary power over finance. Governor Central Bank is only a functionary.)
The tragedy is that opposition parties have not shown any concern on this scam and the NGOs which rush to the Supreme Court with fundamental rights of individuals do not seem to be interested in a fundamental right of the nation. The 50 billion dollar figure is the historical loss to the nation. It is estimated that around 4 billion dollars is the annual loss. The IMF facility is only 3.9 billion dollars. The total foreign debt of the country is 37 Billion dollars.
The legislation on the establishment of the CBSL envisaged that in addtion to its routine functions as a central bank it would contribute to the development of the country.
In CAP 422] -monetary law (8th Rev.) on the establishment and objectives of Central Bank, at chapter (ii) it is stipulated that inter alia that the-
Central Bank is charged with the duty of securing, so far as possible by action authorised by this Act, the following objectives, namely: –
economic and price stability; and financial system stability, with a view to encouraging and promoting the development of the productive resources of Sri Lanka. It is clear that the ultimate objective is the development the productive resources of the country.
In the new CBSL Act, No. 16 of 2023 it is further confirmed at article 6 (3) on the Objects (3) Without prejudice to the attainment of its objects and subject to the provisions of this Act, the Central Bank shall support the general economic policy framework of the Government as provided for in any law.” It is in this broad context that the performance of this 1000 strong professional body has to be evaluated.
Today there is no function or department to ensure promoting the development of the productive resources of Sri Lanka” as envisaged in the Monetary Law. In 1979 the CBSL had a Development Finance Department which was headed by V.K. Wickremesinghe. At that time the Export Promotion Secretariat had a close rapport with V.K and worked together tin the establishment of the Sri Lanka Export Credit Corporation (SLECIC).V.K had a vision on development and was familiar with the radical and rapid development in the Far East. I recollect him saying that the island of Sri Lanka should follow the developments taking place in the Chinese Republic island of Taiwan which was similar in size and population and of economic background. Of course it was an unofficial comment. Since 2005 the Development function has been placed under the Ministry of Finance.
In recent times the banking sector in the country has faced serious problems. Non perfoming loans have increased. The only solution the Banks have is to invoke Pareto Execution. Banks have no system of intervening in failing investments. Bank officials do not have the competence to detect early signs of delinquency. The problems are more acute in the micro finance sector. It is the responsibility of the Central Bank to devise preventive systems and even train the Bank staff in their implementation.
The Chairman of the Ways and Means committee of the Parliament Patali Champika Ranawaka has stated that the annual loss to the country by misinvoicing is over 4 billion US dollars. The Central Bank has not shown much interest in reducing misinvoicing which is widely prevalent and is said to be carried out with the connivance of the customs and the commercial banks.
I cannot but mention my disappointment with the Central Bank in my dealing with them in my capacity as the Director General of the Export Development Board. At the very inception the EDB had selected the Gems and Jewellery sector to be given high priority in export development. The EDB resuscitated the Blue Diamonds Ltd giving a boost to the diamond cutting industry. Heat treating machines were imported to support the value addtion to geuda stones. A gem cutting center was established to improve the gem cutting technology. There were two critical problems that the gems and jewelry industry faced at the time.
One was the severe competition that the local industrialists had from Thai nationals who had established themselves strongly in the gem mining centers and buying up the uncut gems and specially geuda. These were then exported legally and more illegally to Thailand where uncut stones were cut and geudas burned and converted to sapphires. The Thais had the financial strength to buy up massive stocks of geuda and uncut gems. The local industrialist did not have the financial strength to stock the raw material. At a meeting where the Governor of the Central Bank was present I explained this problem and proposed that the Central Bank should establish a special refinance scheme of Rs 500 million to meet this need. The Governor said that will increase the money supply in the country leading to inflation and other problems. I replied that the EDB will freeze that amount of funds which was held by the EDB in Bank deposits to prevent an increas of money supply. The Governor rejected the proposal. The outcome was that Sri Lanka lost the opportunity to become a gems and jewelry center and our gems helped Thailand to become a premier center for gems and jewelry.
The second problem with our industry was the restrictions on gold import for manufacture of jewelry. Sometime in 1985 at my request the Acting Minister of Trade Mahendra Wijeratne took up with the Cabinet the problem of securing gold for the Jewellery Industry, at which the President JR had directed the Acting Minister to undertake a study of the Gold Trade in a few East Asian countries. The Acting Minister instructed me to do this study and he wanted a report submitted to the President at the following cabinet meeting. I told him my knowledge of gold was limited to what was said about the metal, in James Bond novel GoldFinger by Ian Fleming. Acting Minister who too was a 007 fan said that was more than enough and asked me to go ahead.
The Hong Kong Chinese are reputed to be very conservative investors. They do not trust very much paper currency which have had many fluctuations in value. But gold is a solid investment, and the Chinese were willing to forgo the interest on Bank deposits, which was very small, and preferred to hold their investment in gold in the banks which were prepared to hold the gold on behalf of the investors. The investor had the right to get the gold back at any time. It was a win-win situation. It was the safest investment. Gold did not depreciate but appreciated against paper currencies. As proof of the gold deposit the investor was given a paper certificate and hence the gold in the Bank was called “Paper Gold”. The paper was also transferrable. Under this system gold was freely available in the country for the Jewellery industry.
It was also mentioned that it was encouraged by the government as paper gold mops up excess currency in the economy and reduces inflation. It was an efficient and transparent system.
I was told that the President JR liked the idea of paper gold, but the Central Bank had objected to the idea on the grounds that gold is bullion and cannot be made a subject of any other agency. In fact, the US had restrictions on the ownership of gold until 1975.
EDB had from its inception been debating with the Central Bank to make import of gold free for the jewelry industry. Other than this irrelevant statutory restriction the Central Bank had an obnoxious objection which was not openly disclosed, that India will not like it as it will encourage smuggling of gold to India. My answer was that if gold smuggling to India is done on a fair scale there would be less terrorism in the North.
It is a tragedy that the Central Bank with its 1000 professional staff has not contributed in proportion of their numbers and cost to the development of the country. It is conceded that a few individuals like Gamini Corea have excelled in the international arena. His valiant effort to introduce a New Economic Order was a failure and not even spoken about now. The collective contribution of the Central Bank for the development of the country does not match the individual contribution of economists like G.V.S. De Silva and SBD.de Silva. In their retirement Dr.Sandaratne and Dr.Wijewardhana are making a contribution than most of the staff of the present Central Bank. An organization which should have been the Think Tank of the country has turned out to be a den of lotus eaters. In recent years they have been responsible for several massive scams. It is they who borrowed on ISBs at high rates of interest which resulted in the crown achievement of the Bank to declare that Sri Lanka is bankrupt.
One has to agree with the Minister of Justice Wijedasa Rajapakse that මහ බැංකුව කියන එක අර පිටකොටුවෙ දුම්කොළ කඩයක් තරමටවත් පාලනයක් තිබුණ තැනක් නෙමෙයි.
This series titled BUDDHIST VIHARAS AND EELAM ends with a discussion on the Hindu Ramayana viharas” sprouting in Sri Lanka. The Ramayana is one of the two great epics of India, the other being the Mahabharata. Ramayana is a part of the Hindu mythology of India and is an important part of the Hindu canon. The two best known versions of the Ramayana are the Valmiki version and the Ramacharitamanas by Tulsidas. There may have been earlier Ramayanas before the one written by Valmiki, said Romila Thapar.
Critics say that Valmiki’s Ramayana is a literary epic and has no historical value. It is a poem and not a historical document. Historian H.D. Sankalia dates the work to the 4 century BC . Romila Thapar dates it to 8th century BC. A.L. Basham says Rama may have been a minor chief who lived in the 8th or the 7th century BC. T. Paramecia Ayer said that Ravana was a Gond chief. The Dhur-Gonds are known as Ravana-Vamshis in Central India.
In the Ramayana story, Rama is an incarnation of the god Vishnu. Ravana, a rakshasa, is the king of Lanka. He is portrayed as a powerful demon king. Vishnu incarnates as the human Rama to defeat him.
According to the Ramayana, Rama was the son and heir of King Dasaratha of Kosala. He married Sita and together with his brother Lakshmana went to live in the Dandaka forests in exile. At Dandaka he killed several demons that were harassing the villagers. This angered the demon king, Ravana, who, in retaliation, captured Sita and took her to his kingdom in Lanka, in his aerial car.
The monkey king Hanuman discovered her there. Having received Hanuman’s report on Sita, Rama and Lakshmana proceed with their allies towards the shore of the southern sea. There they are joined by Ravana’s brother Vibhishana. The monkeys named “Naal” and “Neel” constructs a floating bridge (known as Rama Setu) across the ocean, and the princes and their army cross over to Lanka. A lengthy battle ensues and Rama kills Ravana. Rama then installs Vibhishana on the throne of Lanka. At the expiration of his term of exile, Rama returns to Ayodhya with Sita and Lakshmana.
Historian Romila Thapar said that the Ramayana by Valmiki was not a sacred book. It was a narrative cast in epic style. It contains the usual heroics, kidnapping, rescue, battles, flying monkeys, demons and an aerial chariot. Unlike the Vedas which are confined to Brahmin priests and are meticulously memorized, the Valmiki Ramayana was recited the way it was freely remembered, at rituals, feasts and the Raja’s court.
There are many versions of the Ramayana. Oral epics tend to have multiple versions. The Ramayana in North India differs from that found in South India and the rest of South-East Asia, said Thapar. There were regional versions in Tamil, Telegu, Kannada, Bengali, and Marathi. The Tamil poem draws on the Bhakthi tradition.
The Ramayana story is contained in the Dasaratha Jataka of the Buddhist literature. There were also a series of Jain versions. There is the Rama katha which is a collection of bardic stories in variant versions. The multiple versions of the Ramayana are more interesting historically, said Thapar. There were plays and poems also written on this story.
The Hindu religion and the Ramayana were exported to South East Asia. Hinduism did not take root, but the Ramayana did. There is an extensive tradition of oral storytelling based on the Ramayana in Indonesia, Cambodia, Thailand, Malaysia and Laos.
There are several versions of the Ramayana in Indonesia. Bhattikavya or the Ravanavadham of Bhatti is the most influential. There is the Ramakavaca of Bali. Kakawin Ramayana is an old Javanese version. Yogesvara Ramayana is in a mixture of Sanskrit and Archaic Javanese language .The Javanese Ramayana differs markedly from the original Hindu version .
The Cambodian version of Ramayana, the Reamker, holds an important position in Khmer literature. Its Hindu concepts are adapted to Buddhist themes. The Reamker has several differences from the original Ramayana, including scenes not included in the original and emphasis on Hanuman. Reamker, has influenced the Thai and Lao versions. Reamker is seen in all Cambodian art forms, sculpture, Khmer classical dance, theatre ,poetry and the mural and bas reliefs seen at the Silver Pagoda and Angkor Wat.
Thailand’s popular national epic Ramakien is derived from the Hindu epic. In Ramakien, Sita is the daughter of Ravana. Astrologers said that Sita would bring calamity, So Ravana has her thrown into water to drown, but she is rescued. It has an expanded role for Hanuman and he is portrayed as a lascivious character. While the main story is identical to that of the Ramayana, many other aspects were given a Thai look, such as the clothes, weapons, topography. Ramakien can be seen in elaborate illustration at the Wat Phra Kaew temple in Bangkok. Analysts also observe that all the Thai kings are named Rama.
Indian Law courts are careful where the Ramayana gods are concerned, said the media. In India temples are owned by the gods, not the trustees. In 2007, Indian Supreme Court summoned the two Hindu gods, Ram and Hanuman to appear in court in order to settle a land dispute in eastern state of Jharkhand. The temple priest said the land belonged to him, given to his ancestors by the king. The locals said it belonged to the two deities. Dispute had been going on for 20 years. It was settled in favor of the locals but the priest is contesting this, reported the media.
IN 2007, the Indian government decided to cut through the Adams Bridge which exists between Tamilnadu and Sri Lanka to create an 83-km-long deepwater channel that will link Mannar with Palk Strait.
This Sethusamundran project” called for extensive dredging and removal of the limestone shoals that constitute the Ram Sethu. Ram Sethu, also known as Adam’s Bridge, is a continuous stretch of limestone shoals that runs from Pamban Island near Rameshwaram in South India to Mannar Island off the northern coast of Sri Lanka. Geological evidence suggests that in the Ice Age, the stretch used to be a land connection between India and Sri Lanka, explained the media.
In response to the Indian government decision, the Bharatiya Janata Party (BJP) filed a petition in court against Sethusamudran. The petition said Hindus objected to the Sethusamudran project on the grounds that it will damage the Ram Sethu Bridge which is mentioned in the Ramayana. This bridge is sacred and should not be destroyed. It was built by Rama and his army of monkeys.
The media announced, The Sethusamudran canal has brought the Ramayana to the attention of the Supreme Court of India.”Court took note of the objection and called for a response from the Government. The Government of India stated that there is no scientific evidence to indicate that the events described in the Ramayana ever took place or that its characters were real.
The Archaeological Survey of India had stated that there is to date no evidence to conclusively prove that Rama actually existed. Further, the Setu was not mentioned in some versions of the Ramayana. If at all, the Ram Setu of the Ramayana was more likely located in a small stretch of water in Central India and not in the Palk Strait.
The Hindus declared, ‘The controversy whether the formation is nature-made or man-made is not relevant. The important thing is that millions of Hindus believe that it is the bridge built by Rama.’
The government bowed to the strong BJP opposition and government backed off. In 2008, Instead of providing ‘yet another affidavit’ against Valmiki’s Ramayana, the Indian Government withdrew the affidavit, and stated that they would try to find an alternative route. In 2012,Janata Party chief Subramaniam Swamy filed a petition in Supreme Court asking Court to order the government to declare Ram Sethu a national monument as a matter of faith.
Ram Setu had come under the microscope some time before. Geological Survey of India did a three year study of the area between Rameshwaram in India and Mannar in Sri Lanka 2003-2005 . The Survey said that the bridge was not a man made (or monkey made) construction. The sequence of clay, limestone and sandstone which emerged could not have been manmade.
Geologists suggest that the formation was due to circular wind driven ocean currents. Sediment may have converged in the sea to create this formation. This line of islets may also be due to tidal movements which pushed the sand into place and retreated. This sand over time formed sandstones.
The Space Applications Centre, Ahamedabad, looked through satellite in 2003 and said that the ‘bridge’ is not man made. They thought the formation was associated with a previous shore line. There are similar reefs in other parts of India, such as Lakshadweep. . NASA satellite pictures, (2002 , 2007) also indicated that the bridge was formed through the sedimentation of clay and lime stone. NASA said the bridge was about 1.75 million years old.
In 2017 USA’sDiscovery Communications-owned ‘Science Channel’ aired a video providing scientific evidence that Ram Setu was a man-made bridge, using satellite imagery from NASA and other evidence. The rocks connecting India and Sri Lanka are sitting on a sandbar, also known as a shoal and the investigators believe that the sandbar is natural, but the stones sitting on top of that sandbar, are not. Stones that have been brought from afar and set on top of sand bar island chain” said a geologist.
Geological Survey of India pointed out that studies of sea level showed that the area between Rameshwaram and Sri Lanka was exposed, not submerged under the sea, in the period between 18,000 years and 7000 years ago. About 6000 years ago, the sea level was a mere 17 meters below its present level and the sea bed was partially exposed. There was no need for a bridge. There was also the technical issue of building a bridge across a wide stretch of water, in ancient times. (Continued)
The location of Valmiki’s ‘Lanka’ had been keenly discussed by Indian scholars. Indian academics cannot agree on the location of the ‘Lanka’ in the Ramayana. Romila Thapar says the matter has been disputed by Indian scholars for centuries and Lanka remains unidentified. The term Lanka is some Indian languages means island and Sagara means a lake, not an ocean.
Writers have pointed out that the Lanka mentioned in the Ramayana is not Sri Lanka. To start with, Sri Lanka was not known as Lanka in ancient times. It was known as Simhala. Mishra points out that all the Indian chronicles, such as the Puranas, and the writings of Varamihira, all stated that the Simhala Island differed from the island of Lanka.’
Mahabaratha refers to two distinct islands called Lanka and Simhala. The Virhatsamhita of Varamihira recorded Lanka and Sinhala as two different places. Rajasekera in his play Balaramayana also showed that Simhala was not Lanka. In this play, Ravana addresses a king who comes from Simhala”. Ravana would not have addressed another king in this manner if he, Ravana, had been the king of Simhala.
T. Paramasiva Iyer in his 1940 book Ramayana and Lanka said that Ravana’s Lanka, if there ever was one, was located in Madhya Pradesh near Jabalpur. It is very likely that Ravana’s Lanka, under the name of Trikuta, was the capital of today’s Kalachari Haihayas, known as Trikutakas till 900 AD. It is quite probable that in the olden days, the Hiran river , which hugs the Indrana Hill on three sides, spread out as a shallow lake all round the hill.
Archaeologist H.D. Sankalia (1971) said that Chotanagpur (Jharkhand State, India) was the Lanka of Ramayana . He said that the present day Sri Lanka” cannot be the Ramayana Lanka. Sri Lanka was known to Indians of the olden days as Simhala or Tamraparni, and not as Lanka. According to Sankalia Lanka is a Mundari word which means an ‘island’ and people of Sonpur on the Madhya Pradesh-Andhra-Orissa border traditionally regard Sonpur as ‘Pashchim Lanka’ western Lanka). The name Lanka came into use only a thousand years ago. Adams Bridge and Rameshwaram are not the Setu and Shiva temple of Rama’s era etiher.
Hiralal Shukla’s book ‘Lanka ki khoj’ (1977) provides information on the places identified. Lanka had been located in various places in India, in Assam, in Rekanpalli, (between the Godavari and Krishna rivers), near Maheshwar on the Narmada river near Jabalpur, in Chota Nagpur in the Mahanadi delta , in the Vindhya mountains at Amarakantaka , near Pendra, ( Bilaspur district, Madhya Pradesh) and in the Godavari delta. Outside India, Lanka has been located in Lakshadweep, Maldives, Sri Lanka, Sumatra, Australia (via the Sunda Islands) and the Lingga Island on the equator.
R.L. Gupta ( 1982) says Lanka was an island in Narmada lake, now Bagra hill. The Ramayana says that Lanka was located on Trikuti Parvata, close to Dhawlagiri surrounded by the hundred yojana sea and in an area where Sal trees grew. Bagra hill, a little west of Pachmarhi Hill, district Hoshangabad, Madhya Pradesh was known as Dhawlagiri earlier. Gupta had also looked at the time Lord Rama took to travel between the places he visited.
D.P. Mishra (1985) says that the evidence points to the triangular delta of the mouth of the river Godavari in Andhra Pradesh. The Godavari has a stretch of alluvial islands, called the Trikuta islands. These are known as the Lankas even today. However, the first meridian of Hindu astronomers is taken to have passed through Ujjain and Lanka. Ujjain is in Madhya Pradesh close to the west coast of India.
Critics also say that Adams bridge near Sri Lanka ,cannot be Ram setu since Rama’s bridge is either eleven and a half miles or 450 miles, runs north- south and ends at a hill. Adams bridge is 30 miles, runs east-west and does not end in a hill..
T. Paramasiva Iyer, observed that In the Ramayana, Lanka was surrounded by sea, Rama built a bridge which was 100 yojanas long and ran due north and south from the foot of Mahendragiri in the north to Suvelagiri (a hill adjoining Trikuta) on whose slopes Rama marshalled his vanara hosts.
According to Iyer’s calculations, 100 yojanas would either mean eleven and a half miles or 450 miles. The existing bridge is neither. Moreover, there is no hill in Rameshwaram or anywhere near Mandapam. There is no hill in Mannar Island and none in the northern halfof Sri Lanka.Therefore, it is obvious that Sri Lanka has nothing to do with Ravana’s Lanka. Further, If Ravana was dragging Sita, Lanka could not have been as far away as Sri Lanka. It has to be nearby. If at all, the Ram Setu of the Ramayana was more likely located in a small stretch of water in Central India and not in the Palk Strait.
For India’s geography to match the Ramayana, particularly the ‘hundred yojana sea’, the Ramayana era must have been in the period when there was such a lake near the Vindhya mountains. Fossil finds indicate that there was a big lake or sea in the Narmada valley. The lake has black basalt. Mahendra Parvata was north of the Bagra hill and almost at the edge of the Narmada lake. However, the phrase “hundred yojana sea” only meant ‘large ‘ said one analyst. ( continued)
July 4, 2024 In his years in power, Joe Biden and his top foreign policy officials have come up with a distinctly more aggressive and militarized approach to a rising China and, in particular, its claims to areas of the South China Sea or the island of Taiwan. As an old Cold Warrior who lived through the era of “containing” Soviet power, the president has taken a strikingly similar approach toward China, even if he’s repeatedly denied that it’s a policy of “containment.” Typically, American Green Berets have recently been stationed on the Taiwanese island of Kinmen, just a few miles off the coast of the People’s Republic (though the head of the United States Indo-Pacific Command insists that it’s not a permanent change). Four new military posts are also being established in the Philippines, all of them strategically closer to China than the other U.S. bases there. Meanwhile, last year the U.S. Marines opened their first new base in 70 years on the Pacific island of Guam as a “strategic hub” for the region, even as the American military command in Japan was also being strengthened. (Imagine for a moment, how this country would react if China were challenging America’s “aggressive” behavior by establishing military bases throughout, say, the Caribbean or off the Mexican coast. Truly beyond belief, right?) And then, of course, there’s Australia, where the U.S. is now stockpiling military supplies (and conducting joint war games) for a possible future conflict with China over Taiwan and, as TomDispatch regular Michael Klare makes strikingly clear today, that’s just the beginning when it comes to future military connections with that country. (Think nuclear submarines!) And all of this is happening, as Klare points out, while American power globally is actually on the wane and its crucial alliances (in a world where the Global South is finally rising), increasingly… well, let’s not say “white” but, as Klare makes clear today, distinctly Anglo-Saxonified. Tom
Trusting the Five Eyes” Only
The Anglo-Saxonization of American Foreign Policy and Its Perverse Consequences
By Michael Klare
Wherever he travels globally, President Biden has sought to project the United States as the rejuvenated leader of a broad coalition of democratic nations seeking to defend the rules-based international order” against encroachments by hostile autocratic powers, especially China, Russia, and North Korea. We established NATO, the greatest military alliance in the history of the world,” he told veterans of D-Day while at Normandy, France on June 6th. Today… NATO is more united than ever and even more prepared to keep the peace, deter aggression, defend freedom all around the world.”
In other venues, Biden has repeatedly highlighted Washington’s efforts to incorporate the Global South” — the developing nations of Africa, Asia, Latin America, and the Middle East — into just such a broad-based U.S.-led coalition. At the recent G7 summit of leading Western powers in southern Italy, for example, he backed measures supposedly designed to engage those countries in a spirit of equitable and strategic partnership.”Click here to read more of this dispatch.
July 2, 2024 Though I was never in the U.S. military, my life experience has been American wars, wars, wars, and more wars. I was born during World War II. I was in grade school when the Korean War took place. I still have a faint memory of a photo of a gleaming American soldier’s face from that unsettled conflict. (It might have been on the cover of LIFE magazine.) I was a protesting youth in the disastrous Vietnam War years. And that was just the beginning. Skipping over events like the invasions of Panama and Grenada and the first Gulf War of the 1990s, in my years running TomDispatch, I’ve dealt with a seemingly never-ending series of all-American wars (which, by the way, never — no, never — turn out “successfully”). From Afghanistan and Iraq to Africa, America’s post-9/11 war on terror proved to be a genuine hell on Earth. If you don’t believe me, just check out the figures on deaths, direct and indirect, from those decades of horror that the invaluable Costs of War Project has put together. And what lessons have been drawn from all of that? Only that this country should pour ever more staggering sums into a Pentagon budget that’s already larger than those of the next nine countries combined and still rising, support military bases across the planet, and… well, you get the idea, right? And it never really ends, does it? In fact, as Tomdispatch regular Juan Cole, creator of the must-read Informed Comment website, points out today, this country could well be on the verge of — yes! — yet another conflict from hell, this one in — would you even believe it? — the Red Sea area. After all, almost unnoticed here, American planes have been unsuccessfully striking at the Houthi rebels in Yemen for months now, while American naval ships continue to patrol that sea (as the disaster in Gaza only grows ever worse). As retired Air Force lieutenant colonel and historian Bill Astore wrote recently at his Bracing Views substack, “How would I feel as a Navy officer covering the flanks of Israel so that the IDF [the Israeli military] can concentrate its forces in murderous assaults on Gaza?” How, indeed? It’s possible that, if things go as they so often have in these years, all too many American naval officers will indeed find out. Now, let Cole take you into another world about which most Americans know next to nothing where, in the months to come, we might indeed find ourselves at war. Tom
Turning the Red Sea Redder Will America’s Backing for Israel’s War in Gaza Torch the Red Sea Region Too?
By Juan Cole
In mid-June, the Associated Press announced that the U.S. Navy had been engaged in the most intense naval combat since the end of World War II, which surely would come as a surprise to most Americans. This time, the fighting isn’t taking place in the Atlantic or Pacific Oceans but in the Red Sea and the adversary is Yemen’s — yes, Yemen’s! — Shiite party-militia, the Helpers of God (Ansar Allah), often known, thanks to their leading clan, as the Houthis. They are supporting the Palestinians of Gaza against the Israeli campaign of total war on that small enclave, while, in recent months, they have faced repeated air strikes from American planes and have responded by, among other things, attacking an American aircraft carrier and other ships off their coast. Their weapons of choice are rockets, drones, small boats rigged with explosives, and — a first! — anti-ship ballistic missiles with which they have targeted Red Sea shipping. The Houthis see the U.S. Navy as part of the Israeli war effort. Click here to read more of this dispatch.
The procession, carrying the sacred relics and treasures in the Deegawapi Stupa and Neelagiri Stupa commenced its journey from the Sri Sambodhi Vihara, Colombo 07 on this morning (July 05) amidst the chanting of Seth Pirith by the Maha Sangha.
The procession carrying the sacred relics will pass through Kiribathgoda, Ambepussa, Kurunegala and reach the Siri Sugatapalarama Piriven Temple in Malsiripura this evening. Arrangements have been made for devotees to worship these sacred objects in all the major cities along this route.
Chief Prelate of Sri Sambodhi Vihara and Chairman of the Buddhist Media Network Ven. Boralande Vajiragnana Thero, Author and First Trustee of Deegawapiya Aruna Trust and Defence Secretary General Kamal Gunaratne, members of the Temple Board of Trustees and Board of Directors of the Buddhist Channel also joined the occasion.
The procession will resume its journey tomorrow morning and reach Giritale Sri Isurusumana Temple passing Galewela, Dambulla and Minneriya. It will pass through Polonnaruwa, Dehiattakandiya, Girandurukotte to reach Mahiyangana Rajamaha Viharaya on July 07 and travel through Padiyathalawa, Mahaoya, Ampara to Deegawapi Rajamaha Viharaya on July 08.
The enshrinement ceremony of sacred relics and treasures in the Deegawapi Stupa and the declare opening of the ‘Most Venerable Daranagama Kusaladhamma Memorial Pilgrims’, Shrine Room and alms offering hall will be held on 14 July.
Devotees can contribute to this great cause by crediting the donations given for the restoration work of Deegawapiya Stupa to the “Deegawapiya Aruna” account number 86860000 of the Bank of Ceylon Taprobane Branch.
Sri Lanka has received a US $ 5 million aid package from the Global Environment Facility (GEF VII) to better manage the issues with chemical imports and disposal. The aid was granted to the Environment Ministry and United Nations Development Programme (UNDP) to implement a project aimed at supporting the transformation of waste management systems, especially in the agriculture and healthcare sectors in the country. The project titled ‘Integrated Management and Environmentally Sound Disposal of POPs Pesticides and Mercury Waste in Sri Lanka’ aims to improve regulatory implementation, strengthen national chemical management systems and transform waste management practices. The inception workshop to launch the project was held on July 3, in Colombo.
This project contributes to fulfilling the national commitments towards Stockholm, Minamata, Basel and Rotterdam Conventions while addressing other issues related to the management of chemicals and waste. This is a good financial and technical assistance opportunity for Sri Lanka to improve the regulatory framework and support the transformation of healthcare waste management systems,” Environment Ministry Secretary Prabath Chandrakeerthi commented on the project. Sri Lanka does not manufacture products that contain POPs or mercury. However, many products containing these substances are imported to the country for various uses every year. Despite the stringent regulations, the lack of capacity in their application results in the continued incompetence in managing chemical imports, according to the UNDP. Accordingly, the Environment Ministry, in collaboration with the UNDP, will implement the project in Sri Lanka over five years, with an expected end date of October 2029. This project is particularly noteworthy, due to its integrated approach, spanning both the health and agriculture sectors, offering a holistic strategy for chemical and healthcare waste management to address complex environmental and social challenges effectively. It is only through a coordinated approach that we can meet the ambition of saving both people and planet,” the UNDP Resident Representative stated on the collaboration. The results and benefits of the project will help Sri Lanka navigate towards achieving Sustainable Development Goal 3, 5, 8, 9, 12 and greenhouse gas emission reduction targets for the country.
UK Labour’s biggest spending commitment, on top of existing departmental budgets, is the £23.7bn for green measures during the next parliament. That’s more than the additional spend on health or education. That is because green policies are at the heart of the party’s plans for growth and prosperity, as well as climate.
The £1.7bn a year for its much-vaunted Great British Energy company is intended to massively accelerate the roll-out of renewables and nuclear power.The aim is to create 650,000 jobs by 2030 as well as drive industrial renewal, lower bills and create secure supplies of clean energy.
There is a further £1.1bn a year to help improve the energy efficiency of the UK’s rickety homes. Once again, the idea is to create jobs as well as lower bills and cut emissions.
But it won’t all be plain sailing. Governments have long struggled to persuade people to upgrade their homes, even with generous cash offers. It is likely there will also be local resistance to solar farms and new onshore wind turbines, which are both essential parts of the green energy strategy.
President Ranil Wickremesinghe has announced that the debt restructuring process will include USD 5 billion in loan interest relief from bilateral creditors and a USD 3 billion debt write-off from commercial creditors providing the country with a total relief of USD 8 billion.
Wickremesinghe revealed this while addressing the ‘Urumaya’ Freehold Land Deed Ceremony held in Kurunegala today (05), the President’s Media Division (PMD) said.
President Ranil Wickremesinghe emphasized that true socialism lies in granting free land rights to the people, dismissing mere talk about socialism.
He highlighted that his government, credited with rescuing the country from bankruptcy, is actively addressing public issues. He pointed out that an additional 200,000 individuals will benefit from the Urumaya” freehold land title initiative.
The President underscored these initiatives, speaking at a ceremony held at the North Western Provincial Council Auditorium in Kurunegala, where symbolic deeds were presented to 463 recipients out of 73,143 eligible in the district under the Urumaya” national program.
Addressing the gathering, he noted that he assumed leadership during a period of governmental uncertainty. He emphasized that the nation is now recovering from economic turmoil due to effective economic management. He highlighted plans for inclusive development in Kurunegala district as part of advancing the country’s new economy.
President Ranil Wickremesinghe further elaborated;
In the Kurunegala district, our farmers, who are vital to our rice supply, have lacked rightful ownership of their lands for too long. Today, hundreds of thousands of people across our country face the challenge of living without legal rights to their homes. We launched the Urumaya” program to ensure they receive the rights they deserve.
When I took office, it was a time of great uncertainty. Leaders were scarce, but I stepped up to lead. We formed a government by uniting different parties, and together, we’ve made significant strides in addressing the people’s concerns.
When our country’s economy collapsed, many lost hope. Today, I must express my gratitude to the residents of this area. Despite facing personal challenges akin to a house on fire, they prioritized community welfare and worked tirelessly to provide relief. Now, our country has emerged from bankruptcy. We have a four-year plan to repay our loans, offering reduced burdens and interest cuts that will yield USD 5 billion in savings.
We are currently in negotiations with private contractors. As a result, approximately USD 3 billion has been withdrawn. In total, USD 8 billion has been allocated for our use. Additionally, we have been granted USD 2 billion under relaxed terms. This does not account for funds expected from China or assistance from India. As a result, we have saved USD 8 billion over the past two years.
Before assuming office, during President Gotabaya Rajapaksa’s tenure, India provided USD 3.5 billion on favourable loan terms. Bangladesh also contributed USD 200 million. Despite economic challenges, we managed to repay USD 200 million.
I’ve had to make tough decisions to rebuild our economy. Raising VAT wasn’t easy, but it was necessary to stabilize our economy. Some leaders urged people to protest and even burn houses, urging them not to support the government. Farmers were told to come to Colombo, but without fuel and fertilizers, they couldn’t come. We provided essential fuel and fertilizers to support them. Eventually, they were asked to come to Colombo without planting crops.
Thanks to the harvest in 2022-2023, the country’s production increased, and tourism thrived. As a result, we’ve achieved an USD 8 billion relief and paved the way to debt relief. When the economy collapses, it affects ordinary people the most. When it recovers, its benefits reach another segment. We launched the Urumaya” freehold land deeds program to benefit ordinary people. Today, these individuals have full ownership rights to the land they’ve lived on for generations. This is indeed a government’s record.
Others talk about socialism, but this is real socialism where land is given directly to the people. Only two countries in the world, Japan and South Korea, have implemented similar programs, but they charged some fee for the land. Here, we provide land for free, resulting in an additional 2 million beneficiaries under this program.
Furthermore, the Aswesuma” program has tripled the benefits of the Samurdhi” program for the people. These initiatives were implemented despite the country being bankrupt. Government employees were granted a stipend of Rs.10, 000. Attention will also be given to increasing salaries in the coming year, along with wage hikes in the private sector. Income from tourism has increased, supporting a modern tourism industry that has raised people’s earnings.
During the last Poson Poya, numerous dansal were held across the country. Before that people were suffering with food shortages. Thanks to your hard work in agriculture, we experienced an unprecedented number of dansals in Sri Lanka’s history. Foreign ambassadors expressed their surprise to me; this showcases our strength. We are committed to providing relief and developing the country in every possible way.
Today, the Kurunegala district is rapidly developing. After Gampaha and Colombo, it houses one of the largest populations in the country. Our goal is to strategically develop this province. To this end, we have allocated approximately 1,000 acres for a trade zone in the Bingiriya area, along with the Iranawila Tourist Zone.
The Bingiriya and Madampe areas are set to experience significant development. Additionally, plans are underway for a major industrial initiative in Kuliyapitiya. The largest program under the Agriculture Modernization Program is also being implemented in Kurunegala district. With new aid coming in, highway construction has commenced, complementing other road systems. Moreover, this province will soon host a new university, marking a period of substantial growth for Kurunegala in the coming years.
Kurunegala District Coordination Committee Chairman, Kurunegala District MP Samanpriya Herath;
The Urumaya program, aligned with the 2024 budget proposal, represents a significant initiative spearheaded by President Ranil Wickremesinghe.
In ancient times, land use was problem-free for the people. However, after independence, many individuals in Sri Lanka found themselves with land licenses issued under various names but lacking actual ownership rights. Government intervention became necessary to resolve these land issues.
Today, President Wickremesinghe has taken decisive actions to address these longstanding land problems. I am grateful to him for resolving the land issues faced by the people of the North-West Province.
North-Western Province Governor Nazeer Ahamed;
We are pleased that today, the Urumaya” program, inspired by President Ranil Wickremesinghe’s noble vision, is being implemented in the North-West Province. The primary aim of this initiative is to grant legal ownership of land to the people.
Many individuals in our country currently possess only licensed land, which can be revoked by the government at any time and holds little value. Since independence, President Wickremesinghe is the first leader to launch a program granting two million free land deeds to our citizens. The Urumaya” program is, without a doubt, an investment in our future.
Additionally, the Agricultural Modernization Program, based on the President’s vision, has reached the villages. Our country has faced significant challenges in the past, but President Ranil Wickremesinghe stands out as the leader who rescued both our country and its people from economic crisis. He has brought about substantial positive changes in a remarkably short span of time.
Some politicians oppose your right to Urumaya”. We must not tolerate their disruptive actions. It is crucial for the President to retain power. Let us not forget that President Ranil Wickremesinghe was the leader who revitalized our nation. We must continue progressing under his leadership for the future development of our country.
State Ministers Shantha Bandara and D.B. Herath, along with MPs Johnston Fernando, Akila Viraj Kariyawasam, Anura Priyadharshana Yapa, Asanka Navarathna, Manjula Dissanayake, Sumith Udukumbura, Kurunegala District Secretary R.M.R. Rathnayake, North-Western Provincial Council Chairman Tikiri Adhikari, Secretary to the President Saman Ekanayake, Senior Additional Secretary to the President Chandra Herath, Mahaweli Authority Director General Mahendra Abeywardana, and several other guests were present at the event.
Qatar Airways will be increasing its Sri Lanka-Doha flights from the current five-daily flights schedule to six-daily flights, starting 10 July 2024.
“The increase in flights further demonstrate the award-winning airline’s dedication to providing more choices and better connectivity for all passengers flying to and from Sri Lanka”, a statement added.
The additional flights will be served by the Boeing 787 aircraft, featuring 30 Business Class seats and 281 Economy Class seats. With this network enhancement, Qatar Airways will operate a total of 42 weekly flights to and from Sri Lanka, connecting passengers to nearly 170 global destinations worldwide.
Jonathan Fernando, Qatar Airways Country Manager Sri Lanka & Maldives, said: We are thrilled to be increasing our flights to and from Sri Lanka to provide even better connectivity to our passengers. This flight increase is a testament to our commitment in providing our passengers with the best travel experience possible, onboard the World’s Best Airline. With more flights to and from Sri Lanka via our home hub, Hamad International Airport, we hope to make it easier for more travellers to discover their dream destination within our robust network.”
The newly added flights will provide passengers with more options to connect to major destinations in the Middle East, Europe, Africa and more, via Skytrax World’s Best Airport, Hamad International Airport.
Flight Schedule: (all local time)
Sri Lanka (CMB) – Doha (DOH): (daily flights)
QR 663 CMB – DOH Departure at 03:35, Arrival at 06:05
QR 659 CMB – DOH Departure at 04:55, Arrival at 07:25
QR 665 CMB – DOH Departure at 10:30, Arrival at 13:00
QR 661 CMB – DOH Departure at 12:00, Arrival at 14:30
QR 655 CMB – DOH Departure at 20:20, Arrival at 22:50
QR 657 CMB – DOH Departure at 21:15, Arrival at 23:45 (Beginning 10 July 2024)
Doha (DOH) – Sri Lanka (CMB): (daily flights)
QR 664 DOH – CMB Departure at 01:25, Arrival at 09:00
QR 660 DOH – CMB Departure at 02:55, Arrival at 10:30
QR 654 DOH – CMB Departure at 08:45, Arrival at 16:20
QR 662 DOH – CMB Departure at 18:30, Arrival at 02:05+1
QR 658 DOH – CMB Departure at 19:50, Arrival at 03:25+1
QR 656 DOH – CMB Departure at 07:20 Arrival at 14:55 (Beginning 10 July 2024)
Sri Lanka‘s private creditors have accepted a 28 percent haircut on $12.5 billion in sovereign bonds, the government announced on Thursday, meeting a key condition of an IMF bailout.
After two days of talks in Paris with most international sovereign bond (ISB) holders, Colombo clinched the final step in restructuring private, bilateral and domestic debt.
The country defaulted on its external debt in April 2022 after running out of foreign exchange, and the unprecedented economic crisis forced then-president Gotabaya Rajapaksa to step down.
Last week, Sri Lanka announced rescheduling loans from its key bilateral creditor China and other nations, covering up to $10 billion in official loans.
The latest deal with private creditors was announced at the London Stock Exchange, where $4.4 billion out of $12.5 billion of the ISBs were listed.
Under the agreement announced yesterday, the Sri Lankan government said it would pay $225 million upfront to bond holders.
The nominal haircut of 28 percent could go up to almost 40 percent should the South Asian nation’s economy contract over the next few years and dip below agreed targets.
Sri Lanka owes $2.18 billion to the China Development Bank, and it was not immediately clear if that debt has also been restructured in line with the ISB deal.
The agreement with bond holders must now be presented to official creditors to ensure “comparability of treatment.”
Official creditors are not taking a haircut on the principal, but have agreed to reduce interest rates to an average of 2.1 percent and extend the term of the loans by a further eight years, giving the country more time to repay.
A five-judge bench of the Supreme Court, headed by the Chief Justice, is set to hear the Fundamental Rights (FR) petition filed by businessman C.D. Lenawa, seeking to delay the announcement of the presidential election, on Monday (08).
The petition requests that an interim order be issued to prevent the calling of the presidential election within the currently scheduled period, until the Supreme Court provides its interpretation on the date of the poll.
The convoy carrying treasures leaves Colombo on July 5.
All arrangements are in place for the ceremony of the enshrinement of the sacred Omniscient Relics and treasures in the hemispherical dome of the historic Deegawapi Stupa on July 14. This event is part of the reconstruction process to restore the former glory of Deegawapi Stupa, which was damaged due to various invasions.
In conjunction with the enshrinement ceremony, the newly constructed Shrine Room, දාන ශාලාව (alms offering hall) and the Most Venerable Daranagama Kusaladhamma Memorial Pilgrims Rest which facilitates visiting devotees, will also be opened on this day.
With the aim of invoking blessings on all the citizens of the country, a week-long pirith chanting will also be held from July 7 to 14 at the Deegawapiya premises. The Stupa is being reconstructed under the supervision and guidance of the Defence Secretary and Author of the Deegawapiya Aruna Trust and First Trustee, General Kamal Gunaratne, with labour support and financial contributions from the members of the Tri Forces and Civil Security Department and the devotees.
The convoy, including vehicles carrying the sacred treasures and the caskets to be enshrined in the Deegawapi Stupa and the Neelgiri Stupa, is scheduled to depart from Colombo 07, Sri Sambodhi Viharaya, on the morning of July 05 and will reach Malsiripura Siri Sugathapalarama Piriven Temple on that day evening travelling via Kiribathgoda, Ambepussa and Kurunegala. It will reach Girithale Sri Isurusumana Vihara on July 06 evening travelling via Galewela, Dambulla and Minneriya. On July 07, the convoy will travel via Polonnaruwa, Dehiattakandiya and Giradurukotte, reaching Mahiyangana Rajamaha Vihara and on July 08, it will reach Deegawapi Rajamaha Vihara via Padiyathalawa, Mahaoya and Ampara. Arrangements have also been made for devotees in all major cities along this route to pay homage to the sacred treasures.
Hon. Prime Minister Dinesh Gunawardena, Minister of Buddhashasana, Religious and Cultural Affairs Hon. Vidura Wickramanayake, State Minister of Defence Hon. Premitha Bandara Tennakoon, Governor of Eastern Province Hon. Senthil Thondaman, Senior Advisor to the President on National Security and Chief of Staff to the President Mr. Sagala Ratnayake, senior military officers including Tri Forces Commanders, government officials as well as thousands of devotees are expected to participate in the event graced by the President Ranil Wickramasinghe as the Chief Guest.
Deegawapiya, a place visited by Lord Buddha is regarded as one of the sacred ancient religious sites among the sixteen places of worship of Buddhists.
Arrangements have also been made for devotees to contribute to this noble cause by obtaining Sacred treasures at Sri Sambodhi Viharaya, Colombo 7 where ‘ the Buddhist Channel’, the main media sponsor for the noble cause, is located, at Ampara Deegawapi Rajamaha Vihara and at Malsiripura Na Uyana Aranya Senasanaya.
The restoration work of the Deegawapiya Stupa is funded by the ‘Deegawapiya Aruna’ Fund which is generously supported by philanthropists and devotees who are eager to witness the former glory of Deegawapiya Stupa. Generous donations of the devotees can also be credited to the ‘Deegawapiya Aruna’ account at Bank of Ceylon, Taprobane Branch as mentioned below:
Account No : 86860000
Bank Code : 7010
Branch Code : 747
Shift Code : BCEYLKLX
All Buddhists in the country and around the world are invited to participate in the treasures enshrinement ceremony at the Deegawapi sacred site and contribute to restoring the former glory of Deegawapiya.
NEW YORK, July 3, 2024 /PRNewswire/ — The global cinnamon market size is estimated to grow by USD 412.9 million from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of about 7.97% during the forecast period. Rising awareness about health benefits of cinnamon is driving market growth, with a trend towards growing application of cinnamon in pharmaceuticals. However, compliance constraints with international food standards and export regulations poses a challenge. Key market players include Biofoods Pvt. Ltd., Cell Foods, Ceylon Spice Co., Cinnamon Exports Pvt Ltd., EHL Ltd., Elite Spice Inc., EOAS Organics Pvt Ltd., First Spice Mixing Co., Goya Foods Inc., HDDES Group, McCormick and Co. Inc., Organic Spices Inc., Ozone Naturals, Sauer Brands Inc., SDS Spices, Taj Agro International, The Bart Ingredients Co., The Great American Spice Co., True Ceylon Spices, and Vijaya Enterprises.
Technavio has announced its latest market research report titled Global Cinnamon market 2024-2028
Product (Cassia cinnamon and Ceylon cinnamon), Application (Residential and Commercial), and Geography (APAC, North America, Europe, South America, and Middle East and Africa)
Region Covered
APAC, North America, Europe, South America, and Middle East and Africa
Key companies profiled
Biofoods Pvt. Ltd., Cell Foods, Ceylon Spice Co., Cinnamon Exports Pvt Ltd., EHL Ltd., Elite Spice Inc., EOAS Organics Pvt Ltd., First Spice Mixing Co., Goya Foods Inc., HDDES Group, McCormick and Co. Inc., Organic Spices Inc., Ozone Naturals, Sauer Brands Inc., SDS Spices, Taj Agro International, The Bart Ingredients Co., The Great American Spice Co., True Ceylon Spices, and Vijaya Enterprises
Key Market Trends Fueling Growth
The global cinnamon market is experiencing growth due to the increasing use of cinnamon and cinnamon oil in medicine and pharmaceuticals. Their antimicrobial properties, particularly the ability of cinnamaldehyde to break up bacterial biofilms, make them a potential replacement for antibiotics in treating infections. This development is significant given the rising number of bacterial species resistant to antibiotics. Cinnamon’s role in the medical sector is expected to continue expanding.
The Cinnamon market is currently experiencing significant growth in demand for its unique and versatile flavors. Minerals, nuts, and almonds are popular ingredients used in cinnamon-based products. These include aromatics, casseis, and condiments. Diabetes and health-conscious consumers are particularly interested in cinnamon’s benefits. Cinnamon is used in various forms, such as sticks, powder, and essential oils. Cosmetics and spice blends also utilize cinnamon. Brands are focusing on sustainable farming practices and organic production to cater to consumer preferences. The future looks bright for the cinnamon industry, with a strong focus on innovation and product development.
Research report provides comprehensive data on impact of trend. For more details- Download a Sample Report
Market Challenges
The global cinnamon market has faced challenges due to exporting countries like Sri Lanka not meeting buyer specifications. Strict regulations in importing countries, such as Western European nations, require compliance with the European Spice Association’s Quality Minima Document and the General Food Law. Intergovernmental organizations are working to enhance product quality standards in Sri Lanka, but these regulations may initially restrict market growth and increase production costs for key exporters.
The Cinnamon market faces several challenges in the production and procurement process. Condiments like cinnamon are essential in food production, but obtaining high-quality cinnamon consistently can be difficult. The supply chain involves various countries, including China, Indonesia, and Sri Lanka. Producers in these countries must contend with factors such as weather conditions, labor availability, and regulatory compliance. Additionally, the price of cinnamon can be volatile due to market fluctuations and production issues. To address these challenges, companies must build strong relationships with suppliers and implement effective supply chain management strategies. Furthermore, investing in research and development to improve production methods and quality control can help mitigate risks and ensure a consistent supply of cinnamon.
This cinnamon market report extensively covers market segmentation by
Product
1.1 Cassia cinnamon
1.2 Ceylon cinnamon
Application
2.1 Residential
2.2 Commercial
Geography
3.1 APAC
3.2 North America
3.3 Europe
3.4 South America
3.5 Middle East and Africa
1.1 Cassia cinnamon- The Cassia cinnamon segment, led by Indonesian and Indian varieties, dominates the global cinnamon market due to their affordability and widespread use as flavoring agents in baked goods and beverages. However, concerns over health risks from coumarin and production challenges may lead to a decline in market share and slower growth compared to the Ceylon cinnamon segment. Saigon cinnamon, with its unique spiciness and applications in food and medicine, also contributes to the market. Regulations and quality standards are expected to impact Cassia cinnamon’s growth in the US and Europe.
For more information on market segmentation with geographical analysis including forecast (2024-2028) and historic data (2018 – 2022) – Download a Sample Report
Research Analysis
The global Cinnamon market is experiencing significant growth due to its numerous health benefits and versatile applications in various food products and savory cuisines. Cinnamon, a popular spice and culinary ingredient, is rich in minerals, nutrients, and antioxidants. It is known to help regulate blood glucose levels, making it beneficial for individuals with diabetes. Additionally, cinnamon has anti-inflammatory properties and is believed to aid in the prevention and relief of medical conditions such as Alzheimer’s disease, infections, common cold, stomach spasms, muscular spasms, nausea, vomiting, gas, and diarrhea. Cinnamon consumption can be found in poultry industry, antibiotic growth promotors, beverages, bakeries, confectionery, and organic foods. Healthy eating trends and the desire for natural flavor enhancers continue to drive the demand for this savory spice.
Market Research Overview
The Cinnamon Market encompasses a diverse range of products and services, primarily centered around the versatile and aromatic spice, cinnamon. This market includes the production, processing, and distribution of cinnamon in its various forms, such as sticks, powder, and essential oil. Consumers utilize cinnamon in numerous applications, including culinary uses, traditional medicines, and industrial processes. The market spans across multiple regions, with significant production in countries like Sri Lanka, Indonesia, and China. Producers and suppliers employ various methods to ensure the quality and consistency of their cinnamon offerings. Additionally, the market experiences fluctuations in demand due to seasonal trends and consumer preferences. Overall, the Cinnamon Market is a dynamic and intriguing sector that caters to a wide array of industries and applications.
7 Customer Landscape 8 Geographic Landscape 9 Drivers, Challenges, and Trends 10 Company Landscape 11 Company Analysis 12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
It was through the Danish TV and the news. It was revealed that my uncle’s family was dead. But after that, I think two weeks later, we had a phone call. I think this call was from Malaysia or somewhere else and the informant said that my uncle is alive. And then we got a phone call from Singapore saying that he is no more. So it’s quite confusing
Certain sections of the Diaspora have a brand that’s called Prabhakaran
The government has to take some steps and the people creating trouble for Tamil people have to be punished
They don’t want any Tamil people here in Denmark to talk to us
They have only one chance to collect money and that’s my sister
I think they even asked money from my parents and they supported
If my uncle was alive and with them, would he permit these people to do the things they are doing?
What my uncle wished for the Tamil people was for them to live a happy life and be safe
Fifteen years after the death of the entire family of Velupillai Prabhakaran, the leader of the Liberation Tigers of Tamil Eelam (LTTE), the elder brother of Prabakaran and the family relations of the deceased rebel leader have urged the Tamil people in the world not to be deceived by fraudsters belonging to sections of the Tamil diaspora who are said to be minting money by selling the ‘brand name’ Velupillai Prabhakaran and the names of his family members. This urgent plea is made by Velupillai Manoharan, the elder brother of LTTE Leader Prabhakaran and his family memebrs from the Tamil Diaspora, various Tamil political leaders from India and Sri Lanka.
Casting aside all possible attempts to resurrect Dwaraka, the only daughter of Prabhakaran, the family relations of the late LTTE leader have made a request from the Tamil diaspora to give due respect to the dead. These family relations have also urged people not to make contributions to campaigns raised in the name of Prabhkaran or in the names of deceased family members of the late rebel leader. Following are excerpts of an interview done with Karthic Manoharan, the eldest son of Veluppillai Manoharan. Karthic reaffirms the death of his uncle’s entire family; including his cousins. During the interview he recalled his own family’s journey since they left Sri Lanka in 1983. Born in 1980 in Northern Sri Lanka, Karthic is now living in Denmark and works as an English teacher. In 1983, with the commencing of the war, Karthic’s father Velupillai Manoharan, moved to India together with his family and his parents. Later in 2003 his parents had returned to the North. In 1998 Manoharan along with his family left for Denmark, where they have lived for the past 26 years. While Manoharan settled in the Nordic country one of his two sisters and their families settled in India while the other immigrated to Canada. According to Karthic, neither he nor his family members can meet each other due to distance and visa issues. They have not seen each other since they left Sri Lanka. Karthic, who was in constant touch with his uncle Velupillai Prabhakaran till 2008 (one year before the latter died) maintains that the LTTE Leader never had issues with Sri Lankan people. Prabhakaran’s problems had been with the government. In fact he always said that Sri Lanka was his country and went to the extent of supporting the Sri Lankan cricket team whenever there were matches against rival teams like India.
Excerpts.
Q: So your families journey from Sri Lanka, to India and Denmark in itself shows that your family too are a kind of a victim of the war because your movement has been restricted. How do you feel about it?
True that. We have to live like that. We don’t have any choice because we will be watched. We didn’t have any peaceful life. In India we always have to obtain a resident permit or something like that. Every year we had to get that and we had to live our lives there. My Dad could not stay in India as it was hard to start his own business. He had to move to another country to work and earn for us. He worked in Singapore. He worked in ships as a sailor. He was only able to visit us so many years afterwards. It was not a quiet life for us. Since 1998 we all have lived together peacefully in Denmark.
Q: When did you decide to speak to the public regarding this?
In 2023-after the war ended in 2009- there was a girl posing in society as my uncle’s daughter, Dwaraka. She claimed that she is Prabhakaran’s daughter. After that I appeared on social media and I aired my voice out. I maintained that she is not from my family and she is a fake. After that so many Tamil people have understood us by now. They had the perspective that we are also some bad guys or people with similar traits.
Q: So you imply that not only in India, but initially in Denmark you had an isolated life?
Yes it was an isolated life because I don’t have any friends here in Denmark. I don’t want to create any problems in their families. For example, if they develop a friendship with our family, they could be avoided by others because they don’t want these Tamil Tigers here in Denmark.
And after 1998 we moved here in Denmark and here we have so many Sri Lankan Tamil people and the Sri Lankan people here but we were always treated like OK so you are Prabhakaran’s family. Here we were treated in different way because the TCC that is Tamil Tigers in Denmark they didn’t want my Dad to come and interfere in their office.
They don’t want us to inform or to tell about them and what they are doing here in Denmark, against Tamil people or what they are doing with the money. They don’t want all this information to be carried to my uncle. So that’s why they don’t want any Tamil people here in Denmark to talk to us.
When, for example, India and Sri Lanka were playing my uncle used to support the Sri Lankan team. He always told, that’s my country, Sri Lanka is my country, so if they win, we all will win. So it’s like that. So he only opposed the government and not Sinhalese people
Q:Was there any point in your life where your family was given a special place by your community because you are related to Prabhakaran?
By the community, no. It’s not like that, but people who loved my uncle, respected us and respected my family, so that’s quite true. But those who are acting here avoided us. They don’t want another person from my family to come to the forefront. We didn’t even like to sit in the front row. We didn’t expect anything from them, but we expected a little respect.
Manoharan’s Wedding – 1979
Q: After 2009, there must have been some commemorations regarding the war, but did you ever get an invitation or were you part of any of these commemorations?
No, they didn’t do anything here in Denmark. I even questioned my parents. They don’t want to tell my uncle or my aunt or sister about Dwaraka’s death. They wanted to hide it from the Tamil people because they used my uncle as a brand and wanted to raise money in his name. They don’t want to announce that Prabhakaran is dead. But I asked my Dad why they are not even respecting my brothers (cousins) because they both died in Sri Lanka. So, that’s not a hidden fact. Each and everyone knows that, so why are they not even respecting them. For example, they do it on Maaveerar Day on November 27. So, I always question my parents why their photos are not available there. It’s like 15 years after his death.
Q: How did you reliably come to know that all members in your uncle’s family are no more?
We always had a question like that, but in 2009 we were informed. It was through the Danish TV and the news. It was revealed that my uncle’s family was dead. But after that, I think two weeks later, we had a phone call. I think this call was from Malaysia or somewhere else and the informant said that my uncle is alive. And then we got a phone call from Singapore saying that he is no more. So it’s quite confusing. They confused us.
And even after one year, we found that my grandparents (both) are there in Sri Lanka. After the war we were under the impression that both my grandparents were dead.
But it was in 2010 that my grandpa passed away. And then we got the news from Sri Lanka that he is dead in a camp and he died there and my grandma was still alive. And then we contacted my grandma. My grandma told that my uncle’s family is no more. So we came to know through her.
In 2010 that my grandpa passed away. And then we got the news from Sri Lanka that he is dead in a camp and he died there and my grandma is still alive. And then we contacted my grandma. My grandma told that my uncle’s family is no more. So we came to know through her
Q: So other than from your grandma was there any other way in which you confirmed that this entire family was dead?
Yeah, because from 1998 we had telephone conversations with my uncle’s family.
My aunt used to call my mom and we all talked together. Even after 2003, my grandparents moved to Sri Lanka from India. So we had more conversations with them because they lived with them. My uncle is not that type. He always used to take care for his family.
He used to call and talk to my dad about their parents and he always cared about his family. So many people think that he was away from his family, but wasn’t like that. Because of the situation he was in he wanted us to live a safe life. If they know that he was in contact with us, someone would encounter problems. So, that’s why he avoided meeting us. It was not that he hated us.
So, he was continuously caring for his family. He was caring for his parents. After my grandpa passed away he would have called us if he was alive.
So many people are claiming now that he (Prabhakaran) is talking with them for 3 hours, 4 hours and spearing rumours. If he is alive, he would speak with my dad; at least for 5 minutes.
Q: So, what’s the purpose behind these people who want to maintain that your uncle is alive?
Because in 2009, they collected money for the war and I know that they didn’t send any of these monies to Sri Lanka; to the Tamils or to fund the war. They used it. They dumped the monies here in Denmark. I think they started using these monies from 2012 onwards. So, it’s 15 years now after the war and they have used all the money. So, they need money now. So, they have a brand that’s called Prabhakaran.
So, he will be 70 years old by November 26 this year. And they cannot lie to the Tamil people anymore that he is going to come back and he is going to start a rebellion. This is because of his age. So, they want to and quite obviously, we all know that my brothers, both of them, are dead.
So, they have only one chance to collect money and that’s my sister. So, they have just planned it in a way that if we tell that my sister is alive they can raise funds in her name.
We have asked for a DNA test. If that’s my real sister, what’s the big issue to just take a DNA and prove identity? That’s simple. Okay. On 27 November a woman who claimed Dwaraka appeared on TV.
Within a week she could have come and do the DNA and she could prove who she really is. She can then continue with her fundraising and everything. But what’s the reason for even not contacting us?
Yeah, and all the money collected in 2009, they didn’t send to Sri Lanka. They had it here. And they waited for a few years. And after that, they started spending it on their own families. We could even see a tremendous difference in their own lives. They struggled before 2009 and immediately they bought houses. They eventually had their luxurious cars and everything
Q:And what’s the last time you made contact with your cousin brothers and sister and also your uncle and the family?
I am quite unsure about that. I don’t remember so much because it was in 2008 end or it was in 2009 that we had a new year or something like followed by our conversations. And after that they had some problem there and they had to move from place to another and we didn’t have any union thereafter. So, before that we had some appointments like that.
We would call within 14 days or we would call within 21 days.
After this period, they had some problem there.
We would always wait for the telephone to ring and my parents used to avoid all the visits and outings here in Denmark during such moments. They would sit at home and wait for the phone call because they were both worried about my grandparents because my grandma was paralysed.
She was paralysed and she couldn’t move without help. So, that’s why they were both worried and even my uncle called for the very last time and talked to my dad. He said, we have a very bad situation here in Sri Lanka and I don’t know what to do with the parents. This is because of their ages. It’s quite unthinkable to send them to India; given this situation”. My dad was very worried about them, but he maintained that they had to decide because they wouldn’t be given special treatment.
Manoharan’s family with his parents. Karthic (Second from Left) and his younger brother, parents and grandparents
Q: How did your family, especially your dad endure this really difficult period?
Especially on that day, my dad went to work and he was at work when we heard all these news. So, we were quite worried because he has high blood pressure and, yeah, it’s a very tough situation. We couldn’t even inform him. So, we had to just wait at home until he returned. He doesn’t have a driving licence.
So, they had to both come back home. So we waited until he returned and we even prayed to God that nobody should tell him before he comes home. Okay. Five of them were dead and we didn’t know anything about our grandparents.
And yeah, so many of them died and we didn’t know how to console him. But anyhow, he returned from work and we informed him. We told that we would wait for some news. So, we were just waiting, but to no avail. We have to accept the truth.
Q:Your father with your family was forced to leave Sri Lanka as far back as 1983 and completely disconnected from Sri Lanka. Does he misses his birth country?
A: Yeah, because of my uncle, my dad, had to leave Sri Lanka. He didn’t get a chance to live his own life in Sri Lanka because he has to go away from that country. Otherwise he would have been punished. He would will be caught. He was always taken to the police station and harass because they couldn’t get my uncle. So like that, he always had problem, that’s why he decided to leave for India in 1983. But in India too he couldn’t live with us and he went abroad to work as a sailor. Finally he decided to start his life in India but then Rajiv Gandhi’s problem came and my uncle was the suspect. So my dad was asked to leave India because of my uncle, so that’s why we approached the UNHCR and we told our situation that we couldn’t live together because of our family situation. Then we applied to migrate. We had an idea to move to Canada or to United Kingdom because of the language but Denmark is the first country to accept us and so we said yes and we came to Denmark.
My Dad is 76 years now. He left Sri Lanka in 1983. And his wish is to visit Sri Lanka before his death. And he knows that is quite impossible. He’s afraid to come there and visit because, he thinks it’s not safe for him.So I think this situation has to move on.
Q: And there were also photos of your youngest cousin, Balachandran. First he was alive and then he was no more. Your comments?
Yeah, that’s right. It was a quite hard story to stomach. All four had died and only one was left. He was only 12 or 13 years old. He came to surrender. But anyhow, they weren’t given a chance and he was shot dead. We didn’t expect that. We thought that since he was a child he would be excused and be given a chance to live. We couldn’t see what exactly happened.
Q: But other than what you hear about them, was there any specific information you received related to him? Did you get information from any other reliable source?
My aunt passed away. My sister passed away. And they were all dead and only my youngest cousin was left alone there.
So, somebody was taking care of him. He was taken along with them just to be left in a safe place. I don’t know what would have happened to him.
They could have protected him and taken him somewhere else and I think they would have let us known about him. We could have taken care of him. Anyhow they found out that he is Prabhakaran’s son and he was shot dead. So, that’s what we heard from the source.
He was only 12 years old, so they took him along with them like their own child to protect him. So, when you say them I am refereeing to the people (public) who moved from there.
Q:So, if I may come back to these people who are collecting money this ‘programme’ was started immediately after the war. I suppose it was in 2009.
They were doing this, for example, here in foreign countries.
So, they were supporting the war by giving money to Tamil Tigers. That’s quite normal. But when I came to Denmark, I came to know all these things because in India, I didn’t encounter anything like this.
I think they even asked money from my parents and they supported. And yeah, it’s quite normal here because they have to have food and they have to even help people in Sri Lanka.
So, it’s fundraising was like that. But anyhow, in 2009 they collected a lot of money. It’s like a very big amount they collected here from each family.
Q: And the money collected after the war, I mean, what were they supposed to and where were they supposed to go?
Yeah, and all the money collected in 2009, they didn’t send to Sri Lanka. They had it here. And they waited for a few years. And after that, they started spending it on their own families. We could even see a tremendous difference in their own lives. They struggled before 2009 and immediately they bought houses. They eventually had their luxurious cars and everything. So, we thought, okay, how is that possible for them to get all these money from? Then we realized.
So, they want someone to be there to show them, like okay, he is alive.
We pay tax and we get all those things like education free from government. So, if my uncle’s family, for example, if they live here in a European country, so why collect money? They will even get all these benefits from the government. So, they don’t have to collect money and live here in this foreign country.
So, I don’t have any point in collecting money in their name. That’s why we wanted to put an end to this. And we did this on May 18, 2024.
My father respected my uncle’s family. He wanted to stop all this nonsense. Hence no more collecting money in the name of my uncle’s family. If they need money they can go and beg for money.
Otherwise, they can state that their family is suffering and ask for help instead of stating that my uncle is suffering. I say this because he is no more.
My uncle didn’t have a single thing. He didn’t buy anything.
He didn’t ask for anything. You know how he lived in Sri Lanka, in the forest and everywhere like that. So, he doesn’t need money.
So, they don’t understand that. And if he is still alive, he won’t even live using this type of money. And if that is my own sister, she will not do such things. So, it’s not in our blood.
Q: Then who are these people? I mean, there are so many diaspora organisations. Do you know who these people are and can you name them?
Yeah, he is a joker. I hope so. His name is Sriskantharaja, the one who is always representing this fake girl. And for example, he will talk for 45 minutes in his YouTube video and he will have a sentence. My uncle is alive and he will talk for 45 minutes; focusing on a single sentence.
So, he is talented. Even he said in the SRF TV documentary or interview, that I believe” that they are alive. So, if he is quite sure and if he is in touch with them, he has to say, I know they are alive because I talked to them. I have a source, he should have told like that. But he tells like, I believe that they are alive. So, nobody has seen them. I think they are hallucinating.
Q: But the only issue is with people like Nedumaran and the Indian Tamil leaders. So, he too continued with the same story?
For example, in India, one Danish kroner is equal to, I think 11 or 12 Indian rupees. So, if you send money to Nedumaran, he will talk for you. So, he is not speaking; it is the money.
If my sister was alive, he should have told us and he should have spoken to my father. He made an announcement this February 13, 2023. His birthday was on March 10, so I called him and he didn’t tell anything. He didn’t say a single word about my uncle. If it is true he would have told me. So I told my parents that this is not real and he is doing something fishy there because if that is true he would have told me Karthic tell your Dad that your uncle is alive and your sister is alive and they are living in Europe. That was March 10, 2023. He announced on February 13, 2023. So he didn’t tell anything on March 10 and so I got the news that that it is fake news.
Q: We all have a place in our heart which we call our home and that’s our country. For you and your family, where is that?
Yeah, that’s a big question because I was just three years old when I left the country. And I’m 44 now. So I have never been there since 1983. So I would be really happy if I can come to Sri Lanka and have a normal passage to Sri Lanka.
But that’s quite unthinkable. I say so because of the situation I’m in. So I’m quite afraid because what happened to my younger brother, could happen to me. So that’s the reason I’m not coming back. So I don’t have a home. So I lived in India and now I live in Denmark.
Q: Do you associate with any other Sri Lankans like Sinhalese, Muslims in Denmark? Oh no, not quite here, We have some Sinhalese friends or Sinhalese people who live in Copenhagen and we used to conduct some dance classes for them. I met a couple of families there, such nice people and yeah, so here we don’t have any discrimination between people. We all are together here.
Q:What do you want to tell the people who are willing to give money to these fraudsters?
So many people say that my uncle is their God. They have a huge respect for my uncle. So I appreciate that and I respect that and everything is fine. But we have to accept a person’s death. So my uncle died along with his own family.
All five, they were all dead. So we have to move on. So we have to live our own life. So nobody is going to come and take care of everyone. So we have to take care of ourselves. So what my uncle wished for the Tamil people was for them to live a happy life and be safe. People living here can help people suffering in Sri Lanka.
Q: So now that it has been proved that the girl who appeared online posing as your cousin sister or Prabhakaran’s daughter Dwaraka and made a speech on the LTTE’s Maaveerar Naal” or Great Heroes Day on November 27 2023 was a fake and a duplicate. Who is behind this scam?
Yes it is fake and they proved that there was fundraising and there was a video right? It’s the same person 95.3% of the time.
My uncle fought for the Tamil people right? And now he is afraid of the Tamil people. Why he is not showing his face to Tamil people?
For example, these fundraisers, this is a mafia gang. But if my uncle was alive and with them, would he permit these people to do the things they are doing?
So, my uncle will be 70 years old on November 26 this year if he lived. So, they cannot lie to the Tamil people anymore that he is going to come back and he is going to start a fight. I say this because of his age.
So, they have only one chance and that’s my sister. So, they’ll say that my sister is alive and they can fundraise in her name and then they can get back to our luxurious way of life.
Velupillai Manoharan
Q: But there are well-known people from India and Sri Lanka with a political background who say that they are in contact with your uncle and his family members?
These people, those who say that they are in contact with my uncle. So how is that possible? How would he appreciate all those things? So that’s the main question. So the single thing can say is that he is no more.
If he is alive, he would have questioned them. And he would not travel with them. And the sad thing is, Nedumaran and Kasi Anandan.
Sivajilingam is in Sri Lanka. I don’t know how that’s possible for him to travel. For example, what Sri Lankan Government has to do is, they have to punish Sivajilingam because he knows, if they catch him, he would show my uncle, because he saw him, right? He has spoken to my sister.
And how is that possible for him to travel from Sri Lanka to India, from India to England and then back to base. He is telling that he spoke to my uncle, he is going to meet him, and that he has contacts. Is he engaged in human trafficking? Because he even told in an interview that he is the one who helped my aunt’s mom and even my grandma. He helped them to travel from Sri Lanka to Malaysia.
Another thing is, my aunt, my uncle’s wife, she has an elder brother, elder sister and a younger brother. The younger brother is already dead. But Sivajilingam told that along with her mother, he had taken my brother’s family and he left all of them in The Maldives.
Is he engaged in human trafficking?
Yeah, but I don’t know how he took her along with him. I don’t know the family because my elder brother and elder sister are living in Denmark.
The younger brother is dead. But Sivajilingam told that he even helped my aunt’s brother to leave with his family. So, I don’t know.
The Sri Lankan government has to take some steps. I think these people are creating the trouble for Tamil people. They have to be punished.
Q: What was your uncle’s view on other communities in Sri Lanka?
He didn’t hate the Sinhalese people. For example, I have even heard from so many people that he used to see cricket matches. When, for example, India and Sri Lanka were playing my uncle used to support the Sri Lankan team. He always told, that’s my country, Sri Lanka is my country, so if they win, we all will win. So it’s like that. So he only opposed the government and not Sinhalese people.
He wanted all to live together. He even told me, I think they had some problem at that time, that if Tamil people move to Colombo or somewhere else, they would be ill-treated or something like that.
My uncle used to say that living in harmony didn’t happen during his period, but in my period things would change and not to have fear. He maintained that I, during my time, could travel the whole country without having any fear that I am a Tamil.
And he even said that the Sinhalese should have the same feeling when they visit us. So if they come here, they will have a safe journey here and they can visit Tamil areas and go back safely. So that’s what he needed.
Q: What are the dangers that the Tamil people can be exposed to if the news that Prabhakaran is alive is true?
It is quite obviously that Tamil people living in Sri Lanka will face a lot of trouble if this news is true. If the war is concluded and if my uncle is not anymore they will live peacefully in Sri Lanka. But if my uncle is alive then the Indian Government will impose a ban on Tamil Tigers and they will do something, so that the Tamil people living in Sri Lanka and India are going to suffer because of these kind of false statements that are made.
So we live here in foreign countries and we don’t face such problems here, so it’s only Tamil people in Sri Lanka who are going to suffer a lot because of these things. So they have to realize what they are doing, so if they don’t want to help them, just leave them to have a peaceful life.
Q: On behalf of the family, what do you have to tell the Tamil people who are sending money to various groups?
Yes, my special message to the Tamil people living all around the world is if they want to help the people suffering in Sri Lanka, visit the island on a vacation and help the people in need. So help them directly, instead of wasting your money. Don’t give any money to people operating in our family’s name. If my uncle is alive, we will take care of him. My dad is there. He has two elder sisters here and we have so many people here. We will take care of them, so you don’t have to believe all these people abroad.
So you don’t have to believe what all these people here in abroad say. They are all cheating you. Instead of wasting your money here, use that for yourself. Instead of giving it to other people, just use for your own family, have a vacation or go and enjoy yourself. Let the others earn their own money and enjoy their money, instead of getting money from you. That’s what our message is.
මහචාර්ය ගෝමික උඩුගමසූරිය කණ්ඩායම ජාතික ජන බලවේගයේ ආරාධනයෙන් ඔවුන්ගේ “රිසර්ච් සහ ඩිවලප්මන්ට් පොලිසිය” සාදා ඇති බවත් එය ජනගත කිරීම ඊට සුදුසු ප්රචාරයක් දී සිදුකිරීම ඉතා නිවැරදි බවත් එසේම වඩා නිවැරදිව කිරීමේ “ක්වොන්ටම් පොටෙන්ෂල්” එකක්ද පවතින බවත් යසස් ධර්මදාස මහතා පවසයි. 
It was through the Danish TV and the news. It was revealed that my uncle’s family was dead. But after that, I think two weeks later, we had a phone call. I think this call was from Malaysia or somewhere else and the informant said that my uncle is alive. And then we got a phone call from Singapore saying that he is no more. So it’s quite confusing
