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The flip side of achieving Primary Surplus

Following its sovereign default, Sri Lanka has taken a significant step towards restoring macroeconomic stability through the achievement of a primary budget surplus. Fiscal consolidation should be viewed not as an end in itself but as a means of strengthening the economy’s long-term capacity to generate investment, productivity, and growth. The next phase of Sri Lanka’s recovery will depend not on fiscal arithmetic alone but on rebuilding domestic savings, strengthening capital formation, improving competitiveness, and enhancing institutional capability.

Sri Lanka’s achievement of a positive primary budget surplus marks a significant milestone in its recovery from the unprecedented 2022 economic crisis. For the first time in many years, Government revenue has exceeded non-interest expenditure, signaling that the state can finance day-to-day operations without additional borrowing. Together with declining inflation and progress in debt restructuring, these developments have restored macroeconomic credibility.

In the aftermath of the economic collapse, fiscal consolidation became an economic necessity to restore confidence among creditors and international financial institutions. Yet every major economic achievement involves trade-offs. The more important question is whether the policies that restored fiscal stability have also weakened some of the foundations of long-term economic growth.”

This distinction is fundamental: a primary surplus measures the Government’s fiscal position, not the nation’s capacity to generate future wealth. Macroeconomic stability is a prerequisite; however, it cannot independently yield enduring enhancements in productivity, investment, or living standards. Restoring fiscal discipline was merely the first stage; converting that stability into sustainable growth requires rebuilding the productive foundations of the economy.

Looking beyond fiscal arithmetic

Public discussion has understandably focused on improving fiscal indicators. However, successful development requires looking beyond the Government’s balance sheet.

Sri Lanka’s recovery should be viewed through two complementary balance sheets. The first is the Government’s, reflected in revenue, expenditure, deficits, and public debt. The second is the nation’s, comprising its financial, physical, human, technological, and institutional capital. While the first measures fiscal health, the second ultimately determines long-term prosperity.

Lasting prosperity will depend on rebuilding the nation’s productive capacity through higher domestic savings, stronger capital formation, enhanced competitiveness and more capable institutions

A Government may improve its fiscal position while the country’s productive capacity remains weak. If domestic savings decline, productive investment stagnates, and skilled people leave, fiscal improvement alone cannot sustain growth. The national conversation must move toward rebuilding the productive economy.

The flip side of fiscal consolidation

Sri Lanka’s fiscal adjustment program has concentrated on revenue mobilisation and expenditure restraint. At the same time, the process has coincided with a significant increase in the cost of living, higher utility tariffs, and reduced disposable incomes. While stronger revenue mobilisation has driven the primary surplus, a substantial proportion has come from indirect taxation, placing a heavy burden on consumption.

Fiscal policy should not merely restore budgetary balance. Its broader purpose should be to strengthen the economy’s capacity to generate future growth. Compared with successful Asian economies, Sri Lanka continues to depend heavily on indirect taxation while facing challenges in attracting investment and expanding exports. Revenue adequacy is essential, but the structure of revenue mobilisation must support entrepreneurship and the future expansion of the tax base itself.

The question, therefore, becomes:” Where will the capital required for Sri Lanka’s next phase of development come from?”

Domestic savings: The missing strategic variable

One consequence of fiscal adjustment has received remarkably little attention: the condition of domestic savings. For years, Sri Lanka relied on a combination of Government investment, domestic savings, and foreign capital. Today, each faces constraints: fiscal consolidation limits public capital expenditure, access to international capital markets remains constrained, and foreign direct investment falls short of regional peers. Savings finance investment; investment raises productivity; productivity strengthens competitiveness.

When external capital is limited and public investment is constrained, domestic savings assume strategic importance. They become the principal source for financing future investment and capital formation. As nations like Singapore, South Korea, and Vietnam have demonstrated, sustained transformation depends upon high levels of investment driven by a country’s capacity to generate its savings.

The broken savings-investment cycle

The relationship between household savings and national development is profound. Higher household savings strengthen the financial system, expanding long-term investment finance for businesses to upgrade technology and skills. This improves productivity, expands exports, and raises incomes, creating a virtuous cycle.

Conversely, when real disposable incomes decline over an extended period, households reduce savings. Lower savings weaken the domestic pool of investment capital, slowing capital formation and productivity growth.

This is the flip side of fiscal stabilisation. In Sri Lanka, the middle class has historically been a principal source of savings and entrepreneurship. Prolonged financial pressure on this segment impacts future innovation and labour productivity. For vulnerable households, persistent reductions in income affect nutrition, education, and healthcare, with long-term implications for human capital.

Capital formation and competitiveness

Capital formation is the bridge between stability and prosperity. Fiscal stability creates confidence; capital formation creates growth. Without adequate investment, productivity cannot rise, leaving enterprises struggling to compete internationally.

Sri Lanka’s structural challenges-insufficient domestic savings, modest foreign direct investment, and slow export diversification-long predate the 2022 crisis. Because fiscal space remains limited, the Government cannot finance the scale of investment required alone. The private sector must assume a larger role, supported by policies that encourage long-term productive investment over short-term commercial activity.

Human capital and stronger institutions

Physical capital alone cannot transform an economy; investment in people is equally vital. Sri Lanka, known for its strong human development indicators, faces challenges due to skilled professionals migrating abroad and ongoing skills mismatches. These issues jeopardise the country’s historical advantages in human development. To bolster future competitiveness, it is essential to treat expenditures on education, research, and digital capabilities as strategic investments.

Ultimately, sustainable development depends upon institutions capable of converting sound policies into measurable outcomes. Sri Lanka has rarely suffered from a shortage of policy ideas but rather a gap between formulation and implementation. Institutional capability-the practical ability of the state to design sound policies and maintain continuity across political cycles-is a critical competitive advantage that remains to be fully developed.

The Government should aim to transition towards growth by reducing tax reliance and fostering investment through structural reforms. Thus, the country’s Primary Budget Surplus should be viewed not as the culmination of economic recovery but as the starting point of a more demanding journey towards sustainable, inclusive and investment-led growth

The Budget as a strategic instrument

Forthcoming national budgets assume significance extending well beyond annual fiscal arithmetic. Their success should be judged by whether they begin to strengthen the productive foundations of the economy. Their success should be judged by whether they strengthen the productive foundations of the economy through protecting productive public investment, encouraging domestic savings, stimulating private investment through policy certainty, and investing in education, technology, and human capital.

Fiscal discipline and economic development are complementary. Fiscal credibility creates confidence, which encourages investment, raises productivity, expands exports, and generates rising incomes-thereby reinforcing the fiscal position itself.

Conclusion

Sri Lanka has made significant progress since the 2022 crisis, with fiscal stabilisation laying an essential foundation for future growth. However, Sri Lanka’s goal for a primary surplus-mandated by the IMF Extended Fund Facility-largely relies on arduous indirect taxation, which stabilises debt but negatively impacts domestic consumption and savings, thereby jeopardising economic growth. The article highlights the limitations of financial engineering, the need for long-term fiscal policies, and the dangers of complacency within fragile economies. Concerns arise regarding the sustainability of tax-based revenue, with calls for reforms to modernise tax administration and enhance compliance without hindering growth. Lasting prosperity will depend on rebuilding the nation’s productive capacity through higher domestic savings, stronger capital formation, enhanced competitiveness and more capable institutions.

The Government should aim to transition towards growth by reducing tax reliance and fostering investment through structural reforms. Thus, the country’s primary budget surplus should be viewed not as the culmination of economic recovery but as the starting point of a more demanding journey towards sustainable, inclusive and investment-led growth.

(The author is the former Chairman of the Finance Commission of Sri Lanka with expertise in financial management across various sectors. Having served as an investment banker and a Financial Management Specialist at the Commonwealth Secretariat, his career spans over five decades of dual-sector experience, focusing on institutional governance, fiscal policy, and structural reform in a comparative context)

Bank customers left empty-handed after 22-year fight for refunds

For more than two decades, close to 200 bank customers believed the courts would one day order banks to refund millions of shillings they say were unlawfully charged on their loans.

Many had taken mortgages and business loans years earlier, only to watch their debts balloon after banks increased interest rates and other charges.

They insisted that the increases were illegal because they had not received the Minister for Finance’s approval, as required by the Banking Act then in force.

Some lost property. Others spent years repaying loans they believed had been inflated by unlawful charges. Together, they turned to the courts in what became one of Kenya’s longest-running banking disputes.

The case was initially filed by Rose Florence Wanjiru in 2003 before other parties were allowed to join the matter in a class action suit.

Ms Wanjiru was seeking a refund from Standard Chartered Bank, which she said was levied illegally, arguing that the bank had not obtained approval from the Minister of Finance to levy the charges as required by the law.

But 22 years later, their fight ended in heartbreak.

Last month, the High Court dismissed the suit, extinguishing the hopes of the depositors who had waited for years hoping for a refund and damages for the suffering they underwent.

The court ruled that the Central Bank of Kenya (CBK) had been wrongly sued because it had no legal mandate to approve interest rates under the Banking Act.

‘I therefore find that the 3rd Defendant (CBK) acted within the law in undertaking the transactions under Section 44 of the Banking Act as mandated and delegated by Legal Notice No. 35 of 20th April 2006 in its capacity as the donee of delegated authority. It did not, and could not, however, retain responsibility for the outcome of its actions or decisions made in such capacity. That responsibility remained with the Minister,’ said the court.

The judge also struck out claims by some of the later plaintiffs after finding they had joined the proceedings long after the statutory deadline had expired.

The petitioners accused the banks of unlawful and fraudulent increases in bank charges, ledger fees, commissions and other banking-related charges imposed by the lenders.

They contended that such increases were implemented without the prior approval of the Minister for Finance as required under section 44 of the Banking Act.

They argued that these charges had been imposed on depositors, account holders, mortgagors and borrowers over several years, resulting in unlawful enrichment for the banks at their customers’ expense.

One of the petitioners said that he had been forced to sell his property in order to pay off his debt, and he sought a refund of the ‘illegal’ interest charged. However, the court rejected the claim on the basis that the petition was filed too late, in 2016, despite the alleged wrongdoing having occurred in 1988.

The court ruled that the claim was barred by the Limitation of Actions Act.

“The orders permitting joinder of additional plaintiffs did not revive claims already extinguished by statute,” the court held.

On CBK’s role, the judge held that its role under Section 45 is limited to consultation and transmission of applications.

The judge said the statute does not confer upon the Central Bank the primary approval mandate contemplated under Section 44.

The court found that the Finance Minister has the mandate to approve changes in bank charges, even after some of those powers were delegated to the CBK Governor in 2006.

‘The Governor of the CBK carried out a delegated function, lawfully delegated, but did so on behalf of the Cabinet Secretary, who retained ministerial accountability. Responsibility therefore remains with the delegating authority,’ said the judge.

The court said it was not satisfied that the petitioners proved breach of statutory duty, negligence, unlawful conduct or recoverable loss as pleaded against the banks.

The case began in 2003 when Ms Wanjiru sued Standard Chartered Bank seeking a refund of Sh38,960, which she claimed had been unlawfully levied after the bank increased charges without the Finance Minister’s approval.

In March this year, she settled her case with the bank through a consent signed in court.

Her case soon grew into a class action after the Court of Appeal allowed dozens of other customers with similar complaints to join the proceedings.

The plaintiffs accused more than 40 banks, represented by the Kenya Bankers Association (KBA), of unlawfully increasing interest rates, ledger fees, commissions and other banking charges over several years without obtaining the statutory approvals required under Section 44 of the Banking Act.

They argued that the banks had enriched themselves at the expense of borrowers, depositors and account holders through charges imposed contrary to the law.

Standard Chartered Bank, the KBA and CBK maintained that the claims lacked merit. They also argued that many of the cases had been filed too late, while others were legally defective or had already been determined by previous court decisions.

The High Court initially dismissed Ms Wanjiru’s case, but the Court of Appeal later revived it after finding that the trial judge had erred.

The banks then fought attempts to allow more customers to join the suit, arguing that the class action had not complied with court procedures. The dispute reached both the Court of Appeal and even an attempt to escalate it to the Supreme Court.

In 2016, the Supreme Court declined to hear KBA’s appeal after it sought to challenge the proceedings on grounds that the matter raised issues of general public importance.

Beyond blame games: Exposing the rot in prisons and drug policies

The powerful testimony of retired Major Ajith Prasanna on WANESA TV has laid bare the scandalous state of Sri Lanka’s prisons. A war hero, lawyer, and former parliamentarian who endured nearly four years of rigorous imprisonment, Prasanna described abysmal food rations, chronic shortages of basic hygiene items, degrading body searches, woefully inadequate medical care, and, most damningly, systemic corruption in which some prison officers allegedly profit from smuggling drugs, mobile phones, and other contraband (YouTube).

These revelations landed with explosive force in the aftermath of the deadly July 2026 violence at Negombo Prison, where clashes left dozens dead and injured, followed by credible reports of reprisals against transferred inmates. Yet this is no isolated scandal. It is the predictable outcome of decades of neglect, myopic policy, and a political culture addicted to blame games that shield the powerful while ordinary citizens, especially the poor, pay the ultimate price in broken families, wasted lives, and eroded national security.

Prisons in Sri Lanka have degenerated from institutions of correction into overcrowded warehouses of human misery. With over 44,000 inmates, many held on minor drug-related charges or in prolonged pre-trial detention, facilities like Welikada have become pressure cookers where minor offenders mix with hardened criminals, rehabilitation is virtually non-existent, and basic human dignity is routinely violated. Prasanna’s account of forced nudity during searches, beatings despite his status, and denial of essential medical checks is not mere anecdote, it is evidence of a system that has abandoned its rehabilitative mandate.

This image of overcrowded prison conditions captures the reality too many endure: mass confinement without hope, hygiene, or humanity. When the state locks people away in such environments and then releases them without skills, support, or a pathway out of stigma, it manufactures recidivism rather than redemption. Labelling former inmates as RC or IRC and placing them under nominal police supervision without genuine reintegration programs is not justice, it is a recipe for repeated failure.

The vicious cycle: Poverty, drugs, and systemic neglect

The rot does not begin at the prison gate. It festers in the socio-economic conditions that propel people into crime in the first place. Through direct work with the Save the Pearls organisation in vulnerable communities north of Colombo, our teams documented the grim mechanics of this cycle. Families crammed into single-room dwellings without proper sanitation, encircled by drug dealers and addicts. Fathers repeatedly imprisoned on drug offences, leaving mothers and children economically destitute. Children recruited, knowingly or not, as couriers. In one devastating case, a girl of 13 or 14 stood guard while her mother engaged in survival sex work inside the home, already being groomed into the same destructive pattern.

Housing schemes meant to uplift the poor have sometimes concentrated vulnerability, creating dense networks that provide early warnings to criminal elements ahead of law enforcement raids. Poverty, absent positive role models, exposure to “villainy,” and a complete lack of viable alternatives push individuals into offending, some willingly, many through circumstance or coercion. Once inside the system, the lack of meaningful rehabilitation ensures they emerge worse off, labelled and marginalised, only to be sucked back into the vortex.

This infographic on breaking the cycle of poverty illustrates exactly what is missing: sustained investment in education, early childhood development, skills training, and social mobility. Instead of such upstream interventions, successive governments have relied on downstream enforcement that treats symptoms while the disease spreads. The result is a self-perpetuating machine that consumes human potential and public resources alike.

Anti-drug operations: A double-edged sword wielded without strategy

Sri Lanka’s intensified anti-drug campaigns have been necessary and, in many respects, overdue. The narcotics trade undermines communities, fuels violence, and threatens national security. However, when success is measured primarily by arrest numbers and headline-grabbing seizures, enforcement becomes blunt and counterproductive.

Pressure to meet targets leads to the sweeping up of users, addicts, and low-level couriers alongside major dealers and traffickers. The prisons swell with individuals who require treatment and support far more than incarceration. Minor offenders are hardened by exposure to serious criminals. Families are shattered. And the underlying drivers, poverty, unemployment, family breakdown, and easy availability of drugs, remain largely unaddressed.

This is the double-edged sword in action.

Short-term optics satisfy political narratives and social media outrage cycles, but they create long-term congestion, human suffering, and diminished public trust. Law enforcement officers, forced to deliver visible results, become part of a system that prioritises quantity over quality of outcomes. The judiciary, meanwhile, hands down punishments intended to promote future well-being, yet without parallel rehabilitation and prevention architecture, those sentences often become revolving doors.

Ending the blame game: From political theatre to national responsibility

The endless cycle of blame, governments accusing predecessors, opposition parties scoring political points, institutions pointing fingers at each other, serves only one constituency: those who benefit from inertia. Ordinary Sri Lankans, particularly the most vulnerable, become the victims twice over, first through the failures that lead to crime and incarceration, and again through the absence of meaningful reform. This political theatre distracts from accountability and delays the hard work of systemic change.

It is time to declare an end to blame-game politics on issues of national security and public safety. Whether the domain is prisons, drugs, radicalisation, maritime threats, or social cohesion, reactive posturing must give way to proactive intelligence. My decades of experience in counter-terrorism and intelligence operations taught a fundamental lesson: prevention through timely, accurate intelligence is far more effective, and far less costly in human and financial terms, than managing the consequences of failure after the fact.

Proactive intelligence as the foundation of prevention

Intelligence-led approaches transformed our fight against terrorism by enabling foresight, targeted disruption, inter-agency coordination, and operations that respected both effectiveness and human rights. The same methodology must now be applied rigorously to the drugs-prisons nexus and broader

We can continue managing symptoms with ever-more-crowded prisons and reactive crackdowns, or we can invest in the upstream interventions and systemic reforms that turn potential offenders into productive citizens and patriots. The latter path honours the sacrifices of those who defended this nation and serves the well-being of all its people

domestic security challenges. This means:

Robust intelligence gathering on prison corruption networks and drug supply chains inside and outside facilities.

Early identification of at-risk individuals and families through community intelligence and social data.

Diversion programs that route users and minor offenders toward treatment and support rather than automatic incarceration.

Sustained investment in rehabilitation inside prisons, education, vocational training, counselling, and mental health services, paired with credible post-release reintegration that removes barriers to employment and social acceptance.

n Whole-of-society prevention: economic opportunities in high-risk areas, family strengthening programs, youth mentorship, and community policing that builds trust rather than fear.

Intelligence-led policing, as depicted in this framework, integrates data from multiple sources to drive proactive prevention rather than perpetual reaction. Applying this discipline across national security domains, not just prisons and drugs, offers the only credible path out of recurring crises.

A roadmap for genuine reform

Immediate measures must include independent oversight access to all detention facilities, urgent improvements to basic conditions (food, sanitation, healthcare), and decisive action against corrupt elements within the prison system. Medium-term priorities should encompass treatment-oriented diversion for substance users, separation of vulnerable inmates from predatory networks, and structured rehabilitation programs with measurable outcomes. Long-term transformation requires embedding proactive intelligence into policy design, addressing root socio-economic drivers through targeted development, and building political consensus that survives electoral cycles.

These are not soft options. They demand resources, political will, and a willingness to measure success by reduced recidivism, healthier communities, and enhanced national resilience, not merely arrest statistics or prison populations. The cost of continued inaction is measured in lost lives, fractured families, and a society that increasingly normalises human warehousing over human development.

Creating patriots, not predators nor prisoners

Sri Lanka’s prisons should once again become places where human beings are given a genuine chance at resurrection and contribution. By rejecting blame-game politics and embracing proactive, intelligence-driven prevention across all national security challenges, we can interrupt destructive cycles at their source.

The choice is stark but clear. We can continue managing symptoms with ever-more-crowded prisons and reactive crackdowns, or we can invest in the upstream interventions and systemic reforms that turn potential offenders into productive citizens and patriots. The latter path honours the sacrifices of those who defended this nation and serves the well-being of all its people.

It is time to begin, decisively, intelligently, and without further delay, the work of creating patriots, not prisoners nor predators.

(The author is a retired Senior Superintendent of Police, former Deputy Director (Counter Terrorism), State Intelligence Service and former Director, Police Special Branch. This analysis is offered in the interest of national security, institutional reform, and public safety)

Resilience is the real flex

Business autobiographies often follow a familiar pattern. They recount the milestones, the setbacks and inevitably, the success that followed. Made in Nepal certainly does all of these things. Yet what surprised this reader most was that it is not really a book about becoming Nepal’s first dollar billionaire. Instead, it is a reflection on what it means to build something enduring from a place the world has too often overlooked.

The book begins, as many family businesses do, with family itself. Chaudhary reflects on his family’s early years with a refreshing honesty, painting a picture of a Nepal that feels worlds away from today’s increasingly global economy. These opening chapters are among the book’s most engaging. They are personal, grounded, nostalgic and offer a glimpse into the values that would later shape one of South Asia’s most successful business groups.

From there, the story gathers momentum, demonstrating remarkable commercial foresight. Readers follow the evolution of a local enterprise into a global conglomerate, with Wai Wai noodles becoming the catalyst for a much larger journey across industries, borders and generations. Chaudhary refused to believe that geography should define ambition. The title Made in Nepal ultimately becomes more than a reference to place; it becomes a statement of confidence.

Gen Z’s have come of age in an era defined by rapid technological change, start-up culture and the pursuit of disruption. We are conditioned to measure success by speed and admire businesses that scale overnight and founders who redefine industries before the age of thirty. Made in Nepal presents a compelling alternative. It reminds us that some of the most meaningful businesses are built patiently, through decades of disciplined decision-making, calculated risk-taking and an unwavering commitment to the long term, irrelevant of political instability, economic uncertainty and changing markets. There is a quiet confidence throughout the book that success rarely follows a linear path. Instead, it is built incrementally, often through consistency rather than spectacle. For Gen Z readers accustomed to carefully curated stories of instant achievement, this perspective serves as both a refreshing reminder and an important reality check.

What stood out throughout the book was Chaudhary’s deep belief in family-not only as the foundation of his success, but also the future of the business itself. Chaudhary writes openly about the trust he places in each of his three sons, giving them the autonomy to lead their respective verticals while remaining their anchor. Chaudhry demonstrates succession planning that feels both timeless and progressive, reminding us that preserving a legacy is not about holding on too tightly, but about giving each generation the confidence, responsibility and space to leave its own mark.

The book focuses more on business philosophy rather than solely on the author’s personal life. Similarly, those expecting a step-by-step entrepreneurial guide may discover that the lessons are presented more through reflection than instruction. However, this is entirely consistent with the book’s purpose. It seeks less to provide formulas for success and more to encourage readers to think differently about building institutions that endure

Another theme that runs consistently throughout the book is identity. In an increasingly globalised world, businesses often feel pressure to distance themselves from their origins in pursuit of international relevance. Chaudhary takes the opposite approach. Rather than seeing Nepal as a limitation, he positions it as an integral part of the company’s identity. Through his own journey, Binod Chaudhary presents a narrative that extends beyond personal success, inviting readers to consider how resilience, ambition and identity can coexist in the making of a global enterprise. The message conveyed is that opportunity today is less about where one begins and more about the mindset with which one approaches the world.

Another noteworthy aspect of the memoir is its treatment of leadership. Rather than portraying leadership as authority or visibility, Chaudhary presents it as responsibility. Throughout the memoir there is a recurring emphasis on relationships, trust, adaptability and reliability-qualities that cannot be measured on a balance sheet and rarely dominate headlines but often determine whether businesses endure across generations. His reflections suggest that the true measure of leadership lies not simply in growing an organisation, but in creating one capable of outlasting its founder. To a generation that values authenticity, these lessons feel particularly relevant at a time when leadership is often measured by curated visibility rather than substance.

Cover of Nepalese billionaire and Chaudhary Group Chairman Binod Chaudhary’s latest book ‘Made in Nepal’

For Gen Z’s, many of whom increasingly aspire to lead organisations with both commercial and social impact, Chaudhry’s approach feels particularly relevant. The book subtly argues that profitability, sustainability and purpose can exist in unison. Long-term success emerges when businesses contribute meaningfully to the communities, employees and economies that support them.

If there is one observation to make, it is that the narrative occasionally moves too quickly through some of the Group’s defining milestones, leaving the reader wanting deeper insight into the strategic thinking behind its decision making. The book focuses more on business philosophy rather than solely on the author’s personal life. Similarly, those expecting a step-by-step entrepreneurial guide may discover that the lessons are presented more through reflection than instruction. However, this is entirely consistent with the book’s purpose. It seeks less to provide formulas for success and more to encourage readers to think differently about building institutions that endure.

Ultimately, Made in Nepal succeeds because it is not simply a memoir about one entrepreneur’s success. It is a thoughtful reflection on ambition, resilience and the quiet discipline required to build institutions that stand the test of time. Long after the financial milestones have faded from memory, what remains is a philosophy of building-one rooted in patience, integrity and an unwavering belief that world-class businesses can emerge from anywhere.

For a generation often encouraged to chase the next big thing, Made in Nepal is a timely reminder that there is equal value in building something that will still matter fifty years from now.

Binod Chaudhary will be a featured speaker and panellist at the Colombo Literary Festival 2026 on the 24 and 25 July 2026.

(The reviewer is a Director of the Galle Face Hotel and Galle Face Group Hospitality. She focuses on strategy, brand development and the long-term positioning of the Group’s hospitality portfolio. As part of a third-generation family business, she has a particular interest in leadership, legacy and institutional stewardship)

Why dead cat strategy is bad for Kenya

Friends are usually surprised by my distaste for political banter. True, I have been an MP and a governor, but I prefer ideas that can transform society, to political gossip.

This frustrates a group of young leaders with whom I interact. My insistence that good politics must have standards, and that the end does not always justify the means, seems lofty to them. My conviction that politics must go beyond name-calling, solve problems and improve living standards seems unattainable.

They quote Machiavelli, who argued that a politician cannot be judged with the same morality as a commoner. I’m a leader not a politician, I protest, as they point to a growing trend.

Using outlandish and controversial topics, Kenyan politicians push the public and media to debate the shock factor, rather than focusing on key issues such as unemployment and the cost of living.

This tactic is called the dead cat strategy.

Popularised by former British Prime Minister Boris Johnson and his Australian political strategist Lynton Crosby, the dead cat strategy is a political communications manoeuvre that introduces a sensational, controversial topic to divert public attention away from a more critical or damaging issue.

If you are losing an argument, or the facts are against you, throw a dead cat onto the dining table mate, Crosby famously advised Johnson. Everyone will immediately recoil, and start talking about the cat, instantly making them forget about the previous, uncomfortable conversation.

The point is distraction. The injected topic must be outrageous or highly emotional, to guarantee immediate media coverage and public outrage. The goal is to flood the news cycle with the new, controllable controversy so that the original issue-such as a policy failure or ethical lapse-slips by, unnoticed.

Coming into prominent view in the early 2010s, the concept is not new. Sample this: From the 19th century practice of using smelly smoked fish to throw hunting hounds off a scent trail, the ‘red herring’ became the definitive literary and political term for introducing an irrelevant topic, to divert attention from the real issue. The trick and word, are now in common usage.

‘Wag the Dog’, made popular by a 1997 movie of the same title, is a political term for creating a diversion such as an international military crisis, or foreign policy spectacle, to shift domestic media attention away from a severe political scandal at home. This is common in US and European politics.

Politicians know that public attention span is limited, and thus have, since Roman emperors, provided everything from free food to entertainment, to distract the populace from vexing political issues. They manufacture consent, Noam Chomsky argued in 1989, by staging unmissable spectacles that quietly push unfavorable policies off-stage.

Kenya’s politics is similar. It is structured around ethnic mobilisation rather than ideological or policy differences. Instead of competing on economic, healthcare, or education platforms, politicians build tribal coalitions to win elections. Ethnicity is a dead cat.

In a game of chameleon politics, parties change names and alliances every election cycle, based on tribal math, not shared ideology or policy goals. As voters, we prioritise representation over pressing issues, supporting co-ethnics out of fear of exclusion from government programs. This ‘our turn to eat’ thinking is common political speak.

There are, however, signs of a transition to issue-based politics. Kenya’s urbanised, tech-savvy youth are moving away from traditional ethnic patterns, using social media to organise around governance issues.

The 2024 youth-led revolt, and shifting economic pressures, demonstrate a growing public demand for accountability over tribal loyalty. Voters are beginning to unite around economic issues rather than tribal identity.

As late president Mwai Kibaki says in a viral clip, economic hardships like stagnant real incomes, unemployment, and high cost of living, have no tribal dimension.

Further, county-level debates are forcing gubernatorial and county legislative politicians to address specific local issues including jobs, healthcare, agriculture, and water access. Citizens are making comparisons.

While ‘dog bites man’ is a poor headline, the media should aide the transition by shifting coverage from sensational political elite melodramas, to rigorous, data-driven debates analysing the feasibility of candidate promises.

And buyer beware. As the 2027 elections beckon, dead cats are everywhere. Goonism and calls for a tourism and investment boycott are but two examples!

LASWA moves to cut boat fares, expand fuel supply

The Lagos State Waterways Authority (LASWA) has unveiled measures aimed at reducing the rising cost of water transportation, following concerns by boat operators and passengers over escalating fares driven by high fuel prices.

Speaking to The Nation, LASWA Head of Operations, Oladayo Ibrahim, said the Authority was expanding its fuel distribution network while accelerating the transition to Compressed Natural Gas (CNG) and electric powered boats to lower operating costs and make ferry services more affordable.

He said the intervention followed complaints by operators that the sustained increase in the cost of Premium Motor Spirit (PMS) had eroded profit margins and forced many to increase fares, placing additional financial pressure on commuters.

Ibrahim acknowledged that the global rise in crude oil prices had directly affected the cost of Premium Motor Spirit, with implications for every mode of transportation, including water transport. ‘However, despite the prevailing economic realities, the Lagos State Government has continued to subsidise ferry services through Lagos Ferry Services (LAGFERRY) to cushion the impact on commuters.’

According to him, LASWA has expanded its fuel dump infrastructure through Ibile Oil and Gas to four strategic locations across the state namely Falomo, Badagry, Ikorodu and Ijegun Egba. The expansion is designed to eliminate the hazardous practice of purchasing fuel in jerry cans while making fuel more accessible to boat operators.

‘The initiative is expected to reduce operational bottlenecks, lower operating costs and ultimately help moderate transport fares for passengers,’ Ibrahim said.

On clean energy transition, Ibrahim said the Authority is implementing longer term measures centred on cleaner and more cost effective energy sources. ‘LASWA is partnering Ril Hydro Kraft Limited to introduce Compressed Natural Gas powered boats into commercial operations. This initiative would significantly reduce fuel costs for operators, enabling them to sustain their businesses without passing rising operating costs to commuters.

‘LASWA has commenced the pilot phase of electric powered ferries in partnership with Carverton Marine. The electric boats form part of the Authority’s long term strategy to deploy cleaner, safer and more environmentally sustainable vessels on Lagos waterways while reducing dependence on conventional fuel.’

He said the combination of expanded fuel infrastructure and the adoption of alternative energy technologies was expected to reduce the financial burden on operators and passengers, improve operational efficiency and strengthen confidence in water transportation.

Ibrahim reaffirmed LASWA’s commitment to the development of the state’s waterways, saying the Authority would continue to work with operators and other stakeholders to ensure that water transportation remains safe, reliable, accessible and affordable for all Lagos residents.

BASL urges consultative committee on judicial retirement age proposal

The Bar Association of Sri Lanka (BASL) has urged Justice Minister Harshana Nanayakkara to halt any unilateral progress on the proposed constitutional amendment to raise the retirement age of Supreme Court and Court of Appeal judges.

In a letter dated 16 July, the BASL argued that the measure has far-reaching constitutional implications and should instead be subjected to structured consultation through a committee comprising representatives of the Ministry, Judiciary, BASL, and other key stakeholders before any further action is taken.

The BASL statement is as follows:

“At the outset, we have become aware that you have not been well, and wish to convey our wishes for your speedy recovery.

We write this letter with reference to the above matter, which concerns a proposal of considerable constitutional significance and one that has profound implications to the independence of the Judiciary, the administration of justice and the Rule of Law.

At the outset, we respectfully request that you give due consideration to the serious concerns expressed regarding this proposal by the BASL, the wider legal profession, members of the Judiciary, and several eminent Jurists and leading Lawyers’ Organisations both within Sri Lanka and internationally.

You would recall that by our letter dated 30 March 2026, we sought clarification from you to confirm whether the Government was contemplating a constitutional amendment to increase the retirement ages of Judges of the Supreme Court and the Court of Appeal. A copy of that letter is annexed hereto marked “A” for ease of reference.

As no response was received, the BASL subsequently addressed the letter dated 25 May 2026 to His Excellency the President setting out the considered position of the Bar in opposition to any such proposal. A copy of that letter is annexed hereto marked “B”.

In the said communication dated 25 May 2026, the BASL explained that the existing retirement ages of Judges of the Court of Appeal and the Supreme Court have remained unchanged since the promulgation of the Constitution in 1978 and that no compelling institutional necessity has been demonstrated to justify altering those constitutional provisions. It was further pointed out that the recent increase in the approved cadre of both Courts substantially addresses any concerns relating to judicial capacity and workload.

More fundamentally, the BASL expressed the view that any constitutional amendment directed solely at extending the tenure of sitting Judges of the superior courts would inevitably give rise to questions concerning its purpose and motivation and that such a measure would undermine public confidence in the independence of the Judiciary, such perception being built upon both the fact of actual independence, and the public perception that the Judiciary remains entirely free from influence, favour or accommodation.

The BASL also observed that constitutional amendments affecting the superior Judiciary should never be undertaken in an ad hoc manner or in response to temporary circumstances. Amendments of such constitutional importance should only be introduced where there exists a demonstrable institutional necessity, transparent public justification and broad and defensible stakeholder consultation. Public confidence in constitutional governance depends upon the process adopted as much as the substance of the amendment itself.

Regrettably, we have not received any response or official observations in respect of either of the above letters.

In the meantime, this proposal has become a matter of significant public discussion and constitutional concern. It is fair to observe that the proposal has attracted unprecedented opposition from almost every sector connected with the administration of justice. The concerns expressed extend well beyond the Bar Association of Sri Lanka and include members of the Judiciary, former Judges, senior members of the profession, eminent academics, and respected international legal organisations.

The concerns expressed by the above stakeholders were perhaps best encapsulated by Senior Advocate of India, Immediate Past President of LAWASIA and Vice-President of the Indian Bar Association Shyam Divan, who recently observed:

“May I suggest a third factor which I will call the ‘Smell Test’. The Bar Association, comprising so many experienced and venerable practitioners, has a keen and well-developed instinct refined over decades. When something ‘smells wrong’, as it does at this constitutional moment, citizens have a reliable guide in the BASL. The Bar Association knows something is amiss, something that compromises the independence of the Judiciary and the Rule of Law. The move to amend the Constitution by extending the retirement age of superior court Judges fails the Smell Test.”

We also note that according to a statement made by the Cabinet Spokesperson following the Cabinet Meeting held on 14 July 2026, the Ministry of Justice has been requested to submit its report and observations before Cabinet reaches a final decision on this proposal.

This development presents an important opportunity to ensure that any report ultimately placed before Cabinet reflects the views of the principal stakeholders in the justice sector who have the experience and insight to objectively provide feedback and response in this matter and all others who would be interested.

You would no doubt appreciate that, over many decades and under successive Governments, it has been the established practice of the Ministry of Justice to consult the BASL on legislative and policy initiatives affecting the administration of justice. This longstanding practice reflects the important constitutional role performed by the BASL as the representative body of the legal profession and its continuing responsibility to uphold and safeguard the Rule of Law, the Independence of the Judiciary, and the proper Administration of Justice.

In fact, you are aware that the BASL is represented even presently in all other justice sector initiatives.

In our respectful view, the present proposal, involving as it does a constitutional amendment directly affecting the superior Judiciary and attracting serious concerns from both the Bench and the Bar, is a matter of exceptional constitutional importance. It ought not to be considered solely through the ordinary administrative process but should instead be informed by structured consultation with all principal stakeholders.

In those circumstances, we respectfully request that you be pleased to constitute an appropriate committee comprising representatives of the Ministry, the Judiciary, the BASL, and such other stakeholders as may be considered appropriate, for the purpose of studying the proposal comprehensively and submitting an objective report before any further steps are taken.

We further request that a delegation comprising members of the Executive Committee of the BASL together with Senior President’s Counsel and Senior Members of the profession be afforded an opportunity to meet with you at your earliest convenience so that these matters may be discussed fully.

The BASL remains ready and willing to assist the Ministry in any consultative process that may be established. We sincerely hope that no further steps will be taken in relation to this proposal until meaningful consultation has taken place with the principal stakeholders of the justice sector.

We look forward to your favourable response.”

2027: Nigerians’ll vote Tinubu unconditionally – North Central agenda

A prominent political and advocacy pressure group in North Central Nigeria, North Central Agenda (NCA), has declared its unconditional support for President Bola Ahmed Tinubu ahead of the 2027 presidential election, describing his victory in the region as a ‘done deal.’

The development is coming as the Secretary to the Government of the Federation, Senator George Akume, explained how the current administration is laying solid foundation for Nigeria’s long-term prosperity through critical reforms and infrastructure development.

Speaking at a one-day conference on North-Central region’s development, under the Renewed Hope Agenda, the Convener of the North Central Agenda, (NCA), Dr. Ene Lilian Ogbole, said the President’s policy choices have brought visible transformation to a zone long plagued by socio-economic neglect.

The conference had in attendance delegates from all the six states of the North Central and the Federal Capital Territory (FCT).

Addressing a large crowd of stakeholders from the region in Abuja, Dr. Ogbole said prior to the current administration, North Central Nigeria had been plunged into an ‘abyss of huge infrastructural deficit and major security crisis.’

‘However, since assuming office on the 29th of May, 2023, President Tinubu has demonstrated courage in making difficult decisions aimed at securing the region’s long-term all-round prosperity,’ Ogbole stated. ‘For the people of the North Central region, these efforts have brought renewed hope and visible progress.’

Ogbole highlighted extensive investments spanning agriculture, security, education, and road transport infrastructure across the zone.

Among the landmark road and superhighway projects cited by Ogbole include, the Calabar-Ebonyi-Benue-Kogi-Nasarawa-Abuja Super Highway; Sokoto-Badagry Super Highway (Niger and Kwara sections); Akwanga-Jos-Bauchi-Gombe-Maiduguri Highway; Suleja-Minna Dual Carriageway and the Lokoja-Okene Dualisation and Makurdi-Aliade-Otukpo Road

Ogbole praised the administration’s interventions in education, pointing to expanded investments through the Tertiary Education Trust Fund (TETFund) and stipend support for students via the Nigerian Education Loan Fund (NELFUND). She noted that the Renewed Hope administration had successfully ‘halted the ‘strike regime’ which previously disrupted academic activities.’

On agriculture and security-critical issues for the nation’s primary food basket-the group noted that intensified military operations against banditry and kidnapping have enabled farmers to return to their fields and businesses to reopen.

Emphasizing the North Central zone’s historical position as an ‘electoral determinant factor in every presidential election since 1999,’ Ogbole declared that the administration’s spread of capital projects had fundamentally altered the region’s political alignment.

‘The fair and judicious spread of capital projects to all the geopolitical zones by the administration of President Bola Ahmed Tinubu has changed the narratives from negative to positive, from neglect to recognition… and now to socio-economic structural and infrastructural transformation of the entire North Central zone,’ she remarked.

Ogbole committed the organization to an aggressive voter mobilization campaign across every state in the region to guarantee the President’s reelection.

‘Consequently, we are pledging to mobilise massively like never before across the entire North Central states to support the reelection of the President that has brought us from doom to the dawn of a new era,’ Ogbole said.

‘For us as the mouthpiece of the North Central people, this reelection is a done deal as we will stop at nothing within the confines of the law to ensure that his victory is secured.’

Secretary to the Government of the Federation (SGF), Senator George Akume, who was represented at the occasion by his Senior Assistant, Technical, Prof. Babatunde Bolaji Benard said his confidence in Tinubu dated back many years, adding that President Tinubu has placed Nigeria firmly on the path of recovery through bold and sometimes difficult policy decisions.

He likened the country’s current economic reforms to cooking beans, noting that while the process takes time and patience, the end result is worthwhile.

‘The President is a trailblazer. He is taking decisions that may not produce instant results, but they are the kind of reforms that will secure Nigeria’s future,’ he said.

Prof Benard cited the Student Loan Scheme as one of the administration’s landmark achievements, arguing that while children of political leaders in previous administrations benefited from student loans abroad, Tinubu has made similar opportunities available to ordinary Nigerian students at home.

He also praised the administration’s massive investment in infrastructure, particularly the ongoing road projects across the country.

Referring to the Calabar to Abuja highway corridor, he said the route had been conceived as far back as 1958 but had remained largely unrealised until the current administration.

‘How do you develop a country without critical infrastructure?’ he asked. ‘What President Tinubu is doing today is laying the foundation for economic growth.’

Benard further highlighted the Sokoto to Badagry Super Highway project, noting that it incorporates 32 dams that would significantly boost agriculture, irrigation, water supply and economic activities along the corridor.

‘Think about what we can do with those dams. They are not just roads; they are economic assets that will transform communities and create wealth,’ he said.

He urged Nigerians to support leaders focused on building lasting infrastructure rather than seeking short-term handouts.

‘We should leave those who give us peanuts and keep us in poverty. We should support the man who is digging up the ground and creating the conditions for Nigeria to blossom,’ he said.

In his goodwill message, a chieftain of the ruling All Progressives Congress (APC) from Benue State, Comrade Okpokwu Ogenyi, confirmed that President Tinubu had deployed massive security to Benue, embarked on several projects which are beneficial to the people of the state and working hand in hand with the incumbent Governor Alia Hyacinth to deliver dividends of democracy in the state.