Category: Daily Financial Times

The resilience of Sri Lanka’s financial system can no longer be measured by capital, liquidity and profitability alone, with policymakers and financial institutions needing to adapt to an era where geopolitical tensions, climate risks, cyber threats and technological disruption have become permanent features of the operating environment, Central Bank of Sri Lanka (CBSL) Deputy Governor K.G.P. Sirikumara said.

Delivering the keynote address at the Sri Lanka Economic Association (SLEA) and Gamani Corea Foundation (GCF) Economic Forum on ‘Financial Sector Resilience Amidst External Shocks: Managing Policy Challenges for Financial Stability’, Sirikumara said the nature of resilience had fundamentally changed as external shocks had become more frequent, interconnected and complex.

‘The global economy today has entered an era in which shocks are no longer exceptional. They have become recurring and, in many ways, define the future economic landscape,’ he said, noting that Sri Lanka, as a small open economy, remained particularly vulnerable to geopolitical fragmentation, supply chain disruptions, volatile commodity prices, climate events and changing global financial conditions.

He said traditional indicators such as capital adequacy, liquidity and profitability remained important but were no longer sufficient to assess the true strength of financial institutions.

‘True resilience today extends beyond capital adequacy, profitability and liquidity. It reflects the ability of the financial system as a whole, including institutions, markets and infrastructure, to continue performing critical functions, absorb shocks, preserve confidence and adapt to structural changes in the risk environment,’ Sirikumara said.

Drawing lessons from recent crises, he said policymakers should no longer ask whether shocks would occur but whether financial systems possessed the capacity to absorb, adapt and recover while continuing to support economic activity.

He warned that external shocks increasingly interacted with domestic vulnerabilities, amplifying risks through weaker governance, concentrated exposures and operational weaknesses.

‘The objective is not to eliminate uncertainty, but to ensure policymakers and financial institutions possess the information, tools and capacity to absorb shocks, preserve confidence and continue supporting sustainable economic growth,’ he said.

Sirikumara also highlighted the increasingly difficult policy trade-offs confronting central banks, particularly when inflationary shocks require tighter monetary policy while higher interest rates simultaneously increase borrowing costs and weigh on financial intermediation.

Recent experience had demonstrated the importance of carefully balancing price stability and financial stability, he said, stressing that neither objective could be pursued in isolation.

He said this reinforced the need for stronger coordination between monetary policy and financial stability frameworks, particularly as uncertainty increasingly reduced the effectiveness of backward-looking policy approaches.

The Deputy Governor said Sri Lanka had responded to recent crises by significantly strengthening its institutional framework.

He pointed to the Central Bank of Sri Lanka Act No. 16 of 2023, which enhanced the Bank’s independence, governance and accountability while formally recognising its financial stability mandate. He also cited the Banking (Special Provisions) Act, amendments to the Banking Act, the establishment of the Coordination Council for Fiscal, Monetary and Financial Stability Policies and the Financial System Oversight Committee as key reforms that have improved crisis preparedness and policy coordination.

He said resilience required forward-looking supervision supported by stress testing, risk assessments, scenario analysis and stronger coordination across regulators rather than reliance on historical indicators alone.

‘Financial stability is a shared responsibility,’ Sirikumara said, adding that strong institutions, effective coordination and robust preparedness mechanisms were essential to preserve confidence during periods of stress.

The keynote address was followed by a panel discussion featuring University of Colombo Economics Professor Priyanga Dunusinghe, former CBSL Deputy Governor J.P.R. Karunaratne, HNB Managing Director/CEO Damith Pallewatte and Alliance Finance Company PLC Deputy Chairman/Managing Director Romani de Silva, and moderated by Daily FT Editor Nisthar Cassim.

Prof. Dunusinghe said maintaining financial stability alone would not be sufficient if financial institutions remained excessively risk-averse.

He said the financial sector must continue providing adequate funding to productive sectors of the economy, warning that excessive caution following the crisis risked slowing the recovery, particularly in rural and semi-urban areas.

‘We need to ensure the financial sector delivers the expected outcomes to the economy by providing the necessary financial resources to productive sectors,’ he said, adding that inclusive finance should remain a priority alongside resilience.

Karunaratne cautioned against relying solely on improving headline banking indicators, noting that rapid credit growth could temporarily improve non-performing loan ratios without necessarily reflecting underlying asset quality.

He said operational risks, cyber vulnerabilities, market risks and the economic impact of recent Middle East tensions had yet to be fully reflected in financial sector data and warranted close monitoring.

Pallewatte said banks now faced multiple overlapping risks rather than isolated shocks, identifying geopolitical developments, cyber security, climate change and talent shortages as the principal threats confronting the industry.

Despite these challenges, he expressed confidence in the sector’s resilience, pointing to strong capital, liquidity and recovery planning developed following Sri Lanka’s recent economic crisis.

‘The banking sector has the capacity to manage this,’ he said, describing the industry’s performance during the crisis as evidence of its resilience.

De Silva said resilience should also be measured by how effectively the financial sector serves the real economy.

He argued that greater coordination between policymakers, banks and the non-bank financial sector was needed to improve financial inclusion, noting that almost half of Sri Lanka’s economically active population still lacked access to formal finance despite the country’s extensive financial network.

De Silva also called for greater collaboration to mobilise climate finance, strengthen agricultural value chains and expand access to productive credit, particularly through institutions serving under-banked communities.

Rare Earths mining in coastal Sri Lanka lays bare capitalism at its most predatory form. Mining lobbies, both domestic and international, are capitalising on the country’s debt distress to push commercial extraction of heavy mineral sands (HMS) from public beaches. In doing so, they not only exploit the country’s vulnerability but also undermine the right to development that working people in the global south have been advocating for years. By instrumentalising the desperation of the Government, these private interests are advancing an extractive economic model at the cost of the ecological and economic well-being of local communities and future generations, while simultaneously jeopardising key sectors that generate foreign revenue, such as tourism, coconut and fisheries. Taking advantage of the bad-debt deal that has left a sizeable debt servicing burden, set to tighten after 2028, Sri Lanka is usurped within the global commodity chains that service the consumption and development interests of the global North. In other words, the Rare Earths rush consolidates Sri Lanka as a cheap destination not only for labour but also for commodities.

Walk, before you run

The National Mineral Policy that the Government of Sri Lanka unveiled in June 2026 articulates the ‘imperative to harness the potential of mineral wealth’, ensuring ‘equitable benefits’ while ‘safeguarding the environment’. The ‘holistic objective’ of the new policy highlights the significance of ‘maximising value addition to minerals, stimulating local processing and manufacturing industries to utilise mineral resources and reduce reliance on exports, and promoting research and development within the sector’ (page 01, National Mineral Policy).

A cost-benefit analysis that a Government would do before any investment project shows that heavy mineral sands mining is not an economically profitable industry for Sri Lanka to pursue. Taxes and royalties that the Government will earn are neither adequate to compensate for the costs on livelihoods, environment, coconut and tourism industries. Nor would these investments create backward linkages, contributing to the industrialisation of our economy

But Capital Metals PLC, joined by Ambeon Capital PLC as the major local partner, thinks differently. Their Taprobane Minerals project located along a 60 KM stretch of the Eastern coast from Komari to Oluvil, is built on extraction, not value addition. The Capital Metals Executive Chairman Greg Martyr, states, ‘In developing countries, often politicians talk about value addition. When they say, ‘We want you to go this far downstream and build a pigment plant or sludge plant’, we say, ‘Hey, hey, walk before you run. Start getting some cash flow in. The rest of the world has been doing it on a stage basis. Start with concentrate and work your way up.’

Martyr’s YouTube video (May 15, 2026) is intended to build investor confidence in the financial viability of the Taprobane Minerals Project in Sri Lanka. What it does is reveal how the extractive mining intent of transnational companies shapes public policy and institutions while disregarding the developmental interests of developing countries. Martyr boasts of active lobbying and influence not only over the Government, but also of ‘shak[ing] up’ the Geological Survey and Mining Bureau (GSMB), shifting GSMB from the Ministry of Environment to the Ministry of Industries. On top of these, the brutal and dirty track record of Capital Metals in its former avatar as the Equatorial Palm Oil PLC in Liberia in 2008 , as well as of individuals leading the company, GCM Resources, involved with the Phulbari massacre in Bangladesh in 2006 , illustrates the predatory nature of mining companies and the dangers of disasters to come. The midwifery role that the Ceylon Chamber of Commerce plays in this dirty business illustrates short-term profiteering interests of the local corporate élites to the detriment of the livelihoods, health of local people and the environment.

The scramble for rare earths

The green to advanced technologies, i.e., wind turbines, smartphones, Electric Vehicles (EVs), glass and ceramics, batteries, polishing agents, military hardware and weapons, rely on Rare Earths. It is a big business tipped to grow at a rate of 10.34% per year between 2026 and 2034, according to Fortune Business Insights. The dominance of China in isolating and refining 92% rare earth elements (REEs), has led to geopolitical tensions augmented by the spillovers from the US trade war on China. Apart from the US, Australia, the EU, Japan, South Korea and India are driving the mineral sands rush, articulating REEs as critical strategic reserves upon which they should acquire control and dominance. In May 2026, India and the US signed a critical minerals and rare earths cooperation framework to ‘engage in international efforts to protect sensitive supply chains from coercive market practices and reduce [their] collective vulnerability to single-source monopolies’ (U.S. Mission India Statement). In parallel, QUAD Critical Minerals Initiative Framework was announced, committing public and private sector financing up to $ 20 billion to consolidate critical mineral supply chains from mining, processing and recycling.

Reminiscing about erstwhile colonial resource grabs, developing countries endowed with Rare Earths are under geopolitical pressure and are forced to pay the price. The scramble for minerals in the Democratic Republic of Congo (DRC) has coincided with increased fighting, deaths and displacement of people. In Myanmar, REE mining has been aided by armed groups and has caused human rights violations, extensive damage to livelihoods and ecosystems. Quest for green energy in Mozambique has passed on toxic waste, leading to public health issues, groundwater pollution and land degradation. In Ganzhou in Jiangxi Province, China, reputed as the Rare Earths Kingdom, extractive mining has led to soil acidification and water contamination. Environmental degradation around the Bayan Obo mining sites in Inner Mongolia province, due to toxic chemicals used in processing, heavy metals and radioactive elements such as thorium, has contaminated groundwater, destroying agricultural and pastureland.

Sri Lanka, too, has been swallowed by the expanding rare earth commodity frontier. Heavy mineral sands, considered a strategic resource, have attracted foreign investors from India, Australia, and South Korea. In contrast to countries with scarcely populated, large land masses, for a small Island nation like Sri Lanka, with a high population density, and coastal areas already vulnerable to erosion and sea level rise, beach mining pose an existential threat.

The Balance Sheet of extractivism

Foreign direct investments in coastal mining in Sri Lanka reveal a larger logic – that capital preys on indebted countries to extract resources, not for local benefit, but to feed global supply chains – EVs, electronics and military hardware, controlled by the Multi-National Corporations (MNCs) of the Global North. Having failed to meaningfully reduce its debt burden, Sri Lanka continues on the edge, susceptible to crisis profiteers. Coastal mining is not development. It is pillage dressed in investor rhetoric.

Stage one of the Taprobane Minerals Project forecasts a $ 40 million return with $ 25 million initial capital expenditure ($ 18 million debt financed from local banks). The 1st stage – concentrate stage, involves extracting 125,000 tons of heavy mineral sands composite of Ilmenite, Garnet, Rutile and Zircon. Mining will be carried out along a 60 km stretch between Komari and Oluvil, from inland up to high tide. If the Government gives in to the persuasions of Capital Metals, there will be no value addition in Stage One. All-in costs for stage one for Capital Metals are $ 18 million

,which includes costs of production, taxes and royalties. As taxes and royalties, the Government of Sri Lanka will only be earning $ 2.8 million (7% of $ 40 million), leading to $ 93.9 million over the nine years that the project is expected to last. According to Capital Metals, drilling and mining work will create 300 jobs.

The income of $ 93.9 million over nine years will have a significant impact on the tourism, coconut and fisheries industries. While eastern beaches such as Arugam Bay are major attractions for tourists, Thirukkovil also hosts major coconut plantations. In addition, fisheries and agriculture provide livelihoods to people. Not only will mining take away communally held coastal land from the people, but excessive use of water and chemicals at the concentrate stage will also poison land, groundwater and destroy the marine ecosystem. To earn $ 93.9 million in 9 years, the Government is effectively damaging the coconut industry, which brings in $ 1.2 billion, and the tourism industry, which brings in $ 3.2 billion, annually. The social, health and environmental costs that will be shifted on the local people are incalculable in economic terms. 300 jobs that heavy mineral sands mining will create would mostly be low-paying, backbreaking jobs, with workers exposed to radioactive material such as thorium, not only from direct contact, but also from radon gas emitted during processing and respirable dust, hazardous to their health.

A cost-benefit analysis that a Government would do before any investment project shows that heavy mineral sands mining is not an economically profitable industry for Sri Lanka to pursue. Taxes and royalties that the Government will earn are neither adequate to compensate for the costs on livelihoods, environment, coconut and tourism industries. Nor would these investments create backward linkages, contributing to the industrialisation of our economy. Removing the black out of the beach will not only destroy the natural character of the beach, which attracts tourists, wildlife like sea turtles, but also remove the natural barrier against erosion.

No doubt that the green turn in production and consumption has created a profitable market for a few. Expeditious implementation of projects such as Taprobane Minerals also indicate possible cases of corruption profiting local bureaucrats and politicians. However, it only entrenches Sri Lanka and its people deeply in the unequal exchange that we have been located as a peripheral country – a destination for cheap labour and commodities, at the disposal of the growth and wealth generation interests of advanced economies. Developed countries like Australia, the US, China, Japan, South Korea, and even India manoeuvre commercial and geopolitical power through their private firms to capture labour and resources from countries like Sri Lanka. It is not a way out of debt distress but a way to getting further ensnared within the vicious cycle.

Rare Earths as commons

People on the island of Mannar have already demonstrated that mining for Rare Earths should not be a justification for denying people their homes. People in Thirukkovil and Panama are echoing these concerns. Thirukkovil and Pottuvil Pradeshiya Sabhas have proven to be more visionary and have halted mining projects. Rare Earths are the Commons, and it is for the people, not private investors, to decide what and how Rare Earths would be used for local needs. The Government and the private sector should recognise the legitimate demands of the people and steer away from green extractivism. As Ditwah points out, in the recent climate change-induced disaster, the Government and people would be better served by centring life and not profit in the form of US dollars at the heart of economic and development policymaking.

One of Sri Lanka’s oldest and most treasured schools rugby rivalries will once again take centre stage when Kingswood College host Wesley College in the 40th Blazé Trophy encounter at Nittawela Rugby Stadium today.

Kick-off is at 4 p.m.

The First XV encounter will be played for the Blazé Trophy, while the junior games will be worked off for the P.H. Nonis Trophy (Under-12), N.J. Mudanayake Trophy (Under-14), Shelton Wirasinghe Shield (Under-16) and the Kenneth de Lanerolle Trophy (Second XV).

The Blazé Trophy, first played in 1986, commemorates Louis Edmond Blazé, the visionary founder of Kingswood College and the man universally recognised as the Father of Sri Lanka Rugby.

Defending champions Wesley College will be chasing history by securing a fifth successive Blazé Trophy triumph. Under the guidance of current national forwards coach Terrence Henry, the Double Blues enjoyed another competitive season, finishing sixth in the Dialog Schools Rugby League before advancing to the semi-finals of the President’s Trophy Knockout Tournament.

Wesley will once again rely on the leadership of centre Kaizer Lye, whose attacking flair and defensive strength have made him one of the standout players this season. He will be supported by an experienced group that includes hard-working flanker Liam Onasis, powerful hooker Keshara Rahul and speedy winger Prarthana Rodrigo, giving the visitors quality in both the forwards and the three-quarter line.

Kingswood College, meanwhile, will be determined to reclaim the trophy in front of their passionate home supporters. The Randles Hill outfit will be captained by Sachithra Naveesha, while flankers Chanidu Adikari and Menusha Marasinghe are expected to spearhead the forward challenge. Familiarity with the Nittawela conditions could prove a significant advantage as the hosts attempt to halt Wesley’s remarkable winning streak.

Veteran referee Ishanka Abeykoon will officiate the main encounter.

The sixth edition of the Lanka Premier League (LPL) which began at the SSC grounds yesterday was hit by match fixing allegations even before a ball was bowled when Manjot Kalra, co-owner of Jaffna Kings was arrested by the Police over an alleged match-fixing approach made to a player.

The arrest was carried out by the Special Investigation Unit (SIU) for the Prevention of Offences Relating to Sports on Thursday night, just hours before the opening match of the 2026 LPL season.

According to Police, Kalra, a former India Under19 World Cup winning cricketer was arrested at a five-star hotel in Colombo while allegedly attempting to pay Rs. 9.5 million (approx. $28,700) to a player to influence the outcome of a match.

Police said the player had first reported the alleged approach around 10 days ago, prompting an investigation that led to the arrest. Kalra is expected to be produced before the Colombo Magistrate’s Court.

Kalra was part of India’s victorious squad at the 2018 ICC Under-19 Cricket World Cup that featured future international stars including captain Prithvi Shaw, Shubman Gill, Arshdeep Singh and Shivam Mavi.

Meanwhile, Sri Lanka Cricket in a media statement said:

Sri Lanka Cricket (SLC) has taken note of the media reports relating to the reported arrest of the owner of the Jaffna Kings franchise by the Special Investigations Unit (SIU) for the Prevention of Offences Relating to Sports.

Sri Lanka Cricket, together with the Lanka Premier League (LPL) 2026, will extend its fullest cooperation to the Special Investigations Unit (SIU) for the Prevention of Offences Relating to Sports should any assistance be sought in connection with any inquiry arising from the matter.

As the governing body of the Lanka Premier League 2026, Sri Lanka Cricket reiterates its unwavering commitment to protecting the integrity of the tournament and will not tolerate any form of corruption, misconduct, or foul play by any stakeholder associated with the league.

Sri Lanka Cricket also wishes to inform the public that the Lanka Premier League 2026, which commenced yesterday evening at the SSC Grounds, Colombo, will proceed as planned without any interruption.

Sri Lanka Cricket has taken all necessary measures to ensure that the Lanka Premier League 2026 is conducted in accordance with the highest ethical and integrity standards. In preparation for the tournament, Sri Lanka Cricket’s Anti-Corruption Unit has been working closely with the Government’s law enforcement agency, the Special Investigations Unit (SIU) for the Prevention of Offences Relating to Sports, to strengthen the league’s anti-corruption framework.

In addition, Sri Lanka Cricket has engaged Integrity Mentors, an independent anti-corruption and sports integrity organization to provide specialist integrity support and education throughout the tournament, ensuring that the Lanka Premier League 2026 is conducted in a fair, transparent, and corruption-free environment.

Sri Lanka Cricket has a zero-tolerance approach to corruption and unethical practices and will ensure that all necessary steps are taken to safeguard the integrity of the Lanka Premier League 2026 and ensure that the tournament is conducted with the utmost dignity and integrity.

Sri Lanka has welcomed 9,122 tourists in the first15 days of July, a 3.04% decline from the 92,951 visitors recorded during the corresponding period in 2025.

The first 15 days of July generated a daily average of 6,008 arrivals, with the month traditionally regarded as one of the stronger periods for tourism due to school holidays in key markets and Sri Lanka’s calendar of cultural and religious events.

In the first week of July, the country saw 40,821 tourists, followed by 43,387 in the second week, and 5,914 on 15 July. The highest daily arrival 6,636 was recorded on 11 July 2026.

The latest inflows pushed cumulative tourist arrivals for 2026 to over 1.23 million, although year-to-date (YTD) arrivals remained 2% below the corresponding period last year.

India maintained its dominance as Sri Lanka’s largest source market, contributing 20,480 visitors during the first 15 days of July, accounting for 23% of total arrivals. The UK ranked second with 9,277 tourists (10%), followed by China with 5,494 visitors (6%), Australia with 5,487 arrivals (6%), and the Netherlands with 4,744 tourists (5%).

On a cumulative basis, India continued to lead all source markets with 314,163 visitors, representing 25% of all tourist arrivals recorded so far this year. The UK remained the second-largest source market with 117,844 arrivals (10%) and China ranked third contributing 81,665 tourists or 7% of total arrivals.

Jaffna Kings hit by allegations of match fixing by one their co-owners began the defence of their Lanka Premier League title with a heavy defeat at the hands of Galle Gallants who romped home by 36 runs in the opening fixture played under lights at the SSC grounds yesterday.

The match was a repeat of the 2024 final when Jaffna emerged winners by nine wickets. But yesterday it was all Galle as they first batted with devastating effect to post an imposing total of 213-6 and then bowled Jaffna out for 177.

Jaffna took up the challenge of chasing down Galle’s big total, when their openers Avishka Fernando and Kamil Mishara gave them a flying start posting 63 off the first five overs.

But enter Eshan Malinga, following his exploits in the IPL with Sunrisers Hyderabad and the game simply took a nosedive. His double strike in the final over of the first power play to get rid of Avishka Fernando (34 off 21 balls and Ibrahim Zadran pushed Jaffna onto the back foot.

Jaffna soon found themselves with half the side out for 84 by the tenth over and Malinga picking up 3 for 5 in 2 overs. Dunith Wellalage tried to take the fight to the bowlers making a plucky 40 off 24 balls (4 fours, 2 sixes) and Chamindu Wickramasinghe (24 off 10 balls, 1 four, 3 sixes), but the odds were too great as Jaffna had lost too many wickets upfront to mount any kind of late challenge.

Jaffna bowlers took a bashing from the Galle Gallant batters to which none had an answer except for Wellalage who strangely did not bowl his quota despite giving away only 11 runs in his three overs.

Sam Harper’s rapid cameo (40 off 19 balls, 8 fours, 1 six) gave Galle the momentum they needed to launch their innings. Charith Asalanka (65 off 38 balls, 7 fours, 3 sixes) and Sahan Arachchige (35 off 24 balls, 3 fours, 2 sixes) carried on the momentum through the middle overs with Dasun Shanaka (31* off 9 balls, 2 fours, 3 sixes) and Mohammad Nawaz (21 off 9 balls, 3 sixes) putting the finishing touches to the innings in destructive fashion plundering 43 off the final two overs.

Charith Asalanka was Player of the Match.

Scores:

Galle Gallants 213-6 (20) (Sam Harper 40, Charith Asalanka 65, Sahan Arachchige 35, Dasun Shanaka 31*, Mohammad Nawaz 21, Lizaad Williams 2/28, Piyush Chawla 2/43)

Jaffna Kings 177 (19.4) (Avishka Fernando 34, Kamil Mishara 28, Dunith Wellalage 40, Chamindu Wickramasinghe 24, Akif Javed 2/31, Eshan Malinga 4/26)

Lanka Premier League (LPL) event rights holder IPG yesterday issued a statement on the reported arrest of the Jaffna Kings franchise owner, reaffirming its zero-tolerance policy on corruption while pledging full cooperation with Sri Lankan authorities investigating the matter.

The statement is as follows: IPG, the event rights holder of the Lanka Premier League (LPL), has taken note of reports published by sections of the Sri Lankan media regarding the reported arrest of the owner of the Jaffna Kings franchise by the Special Investigations Unit (SIU) for the Prevention of Offences Relating to Sports.

As the event rights holder of the Lanka Premier League, IPG fully supports Sri Lanka Cricket and the relevant authorities in ensuring that any investigation is conducted independently, fairly, and in accordance with due process. We will extend our full cooperation should any assistance be requested in connection with the matter.

IPG wishes to reiterate that all franchise owners participating in LPL have undergone the requisite ownership approval process, including integrity and due diligence assessments conducted by the Anti-Corruption Unit (ACU) of Sri Lanka Cricket (SLC) in consultation with the International Cricket Council (ICC), prior to their participation in the tournament.

The integrity, transparency and credibility of the LPL remain of paramount importance. IPG supports and maintains a zero-tolerance approach to corruption, unethical conduct, and any activity that may compromise the integrity of the tournament.

We wish to reassure all stakeholders, including fans, franchises, sponsors, broadcasters, and commercial partners, that LPL 2026 will proceed as scheduled. We remain fully committed to delivering a world-class tournament while upholding the highest standards of governance and sporting integrity.

IPG will continue to work closely with Sri Lanka Cricket, the tournament’s Anti-Corruption Unit, Integrity Mentors, and all relevant authorities to support robust integrity measures throughout the competition.

At this stage, it would be inappropriate to comment further while the matter remains under investigation. IPG will continue to monitor developments and will provide updates, where appropriate, in coordination with Sri Lanka Cricket.

The global power, might and super-power status the US experiences and enjoys today, since the end of the WW I in 1918, were not fortuitous nor serendipitous by any stretch of imagination. They were extremely and punctiliously strategised and crafted national and international courses of action executed and prosecuted with efficacy, sagacity and potency. As the US commemorated the momentous and iconic 250th year of Independence on the first week of July 2026, author wishes to place on record, unequivocally, that the ascendency and supremacy of US were political, economic, diplomatic, military, technological, cultural and innovative statecraft and not stagecraft.

It may be felicitous and pertinent to place on record that the US, relatively a young nation or probably an ‘infant’ compared to the civilisations of China, Egypt, Japan, Iran, Greece or India which have documented histories well over four to six millennia. Since the then Kingdom of England arrived in Jamestown, Virginia in 1607 and settled, thus recognising the immense potential in all spheres of the vast land of the US. Then they continued, the much-known sequence of British Empire, to explore, expand and exploit reaching 13 states till 1770s. In 1770s, the US Revolution took place and the Declaration of Independence, with the primary author Thomas Jefferson, was signed. This document is, arguably being considered as one of the greatest documents ever drafted, thus birthing a new nation known as the US.

The US was fundamentally a less developed nation compared to the other nations during that era. The US needed to acquire and expand its geographic and territorial dimension and was believed to be the objective of the Founding Fathers of the US. President Thomas Jefferson was instrumental in initiating the Louisiana Purchase Treaty with Napolean Bonaparte in 1803. This real estate purchase was often considered as one of the greatest purchases the world has ever known. The cost was $15 million consisting of land larger than Indonesia or 2/3 the geographic size of India. In today’s value, the cost per acre was $0.84 cents or $538 per square mile.

After the American-Mexican war of 1840s, US purchased the State of Texas for a total amount of $25 million, thus expanding the geography of the US. The scale of Texas was larger than France and UK combined. Then the US in 1867, purchased State of Alaska from Russia for $7.2 million or in today’s value, $0.37 per acre. This piece of real estate was equivalent to the combined geographic size of Pakistan, Thailand and Bangladesh. One could comprehend the manner in which the US leaders, approximately 200 years ago, purchased land for expansion and used it for agriculture, livestock, industry, manufacturing and infrastructure since the 19th Century. It is frequently being stated that the US is by far the greatest and the most ‘paragon’ piece of real-estate in the world. It has two major oceans i.e. Pacific and Atlantic, and in military terminology known as ‘moats’, where ground or any invasion becomes almost impossible. These acquisitions, indeed, enabled US to attain ‘Strategic Depth’ as no other nation.

Challenges, impediments and travails US were compelled to confront and opportunities

The US underwent one of the most diabolical and fiendish civil wars the world has ever witnessed from 1861 to 1865 between the Union and Confederate States. This was premised mostly on slavery, westward expansion of the new states and election of President Lincoln. The Civil War killed nearly a million soldiers and civilians and almost rived the Union.

In the beginning of the 1900s, the US was a highly indebted country, mostly to the European powers. In 1898, the Spanish-American war led to the decline of Spanish Empire, which had colonised nations for many centuries including Sri Lanka. According to historians, the Spanish-American war, which enabled US to defeat Spain, catapulted US as a potent military power to be reckoned.

With the break-out of the WW I in 1914, had many European Empires as Britain, France, Germany, Austria-Hungary and Ottoman enmeshed but the US was not involved. The US got involved only in 1917, marginally, since Germany convinced Mexico to join Germany in the war against the US, according to infamous ‘Zimmerman Telegram’. However, the WWI was opportune and providential to the US as it enabled US to shift from a debtor nation to a creditor nation.

Since European powers needed funds for the war, the US provided the funds. By 1920s, after WWI, US demanded the Europe to pay the debt in full whilst minimising imports to the US from Europe. Further, US raised tariffs, the highest ever known as ‘Smoot-Harley Tariff Act’. Eventually, this led to the Great Depression as global trade diminished by approximately 60%.

After the WW I, similar to many other nations, US was confronted with one of the deadliest pandemics known as ‘Spanish Flu’. This killed nearly 700,00 Americans. It is strongly presumed that the Great Depression, which transcended to the entire world mostly to Europe, led to the WW II. Again, during the WW II the US got embroiled only after the attack on Pearl Harbor in 1941. But yet again, this too was a uniquely fortuitous to the US, which enabled the US to supply armament and material in scale to Europe and USSR. It is being stated that this, particular, event fueled unprecedented industrial revolution and evolution of the US industrial base as never before.

On a separate note, the unparalleled rise of US was neither linear nor reposeful as US had to address, shape and fashion the global order and re-build the war devastated economies with iconic Marshal Plan, prevent and stymie the spread of Communism and Socialism in many parts of the world with engrossment on Korean War in 1950s and Vietnam War in 1960s/1970s, address the convolutions of Cold War, amongst others.

How US became the dominant power

It should be stated that regardless of the sentiments of the global community, the US, today, is an unmatched, unrivaled and unparalleled economic, political, and philanthropic power-house with unchallenged global soft power and reach. Most may not be aware that the Mississippi River Basin played a seminal and transformative role in the economic and commercial metamorphosing of the US from a developing economy to a dynamic economy with its 14,500-mile navigable waterways for purposes of most efficacious transportation within the country.

By the end of WWII, the US had already emerged as the predominant power replacing the UK, France and Germany. Also, the US Dollar had replaced the British Sterling as the most transacted currency, thus it had emerged as the Global Reserve Currency. By the 1920s, the US share of global GDP was hovering between 15% to 20%. After WWII, US share of global GDP soared to over 40% since all other major economies were devastated i.e. UK, France, Germany, Russia and Japan, and also had the largest Navy, amongst others.

Whilst in 1944, as the world was in the midst of WWII, in Bretton Woods in the US, top most bankers and technocrats were in the midst to establish a feasible global monetary order. The US position was that since the US possessed over 80% of reserve gold, the US Dollar would be backed by gold, or each ounce of gold would be priced at $35. Instantaneously, the US Dollar became the Official Reserve Currency of the world. All other currencies had to be pegged to the USD. This gave the US gargantuan and unparalleled stature in international commerce and finance.

Many economists used to argue that the standing of reserve currency would last 80 to 100 years, only, since the beginning of the year 1400 AD. In 1450 AD, it was Portugal, then Spain, Netherlands, France and Britain, which ended its reserve currency status in 1920. Today, $has surpassed over 100 years and still maintains 58% of all official reserves. It is unlikely the $would be replaced by the Euro, which consists of 20% of reserves, in the foreseeable future. None of the BRICS currencies, known as 5-R, is convertible. They are Real (Brazil), Ruble (Russia), Rupee (India), Renminbi (China) and Rand (South Africa). The BRICS currencies may transact bilaterally but cannot replace the USD, whatsoever.

On 15 August 1971, the Nixon Administration, arbitrarily, dismantled the Bretton Wood System by suspending the $convertibility into gold. This was known as ‘Nixon Shock’. The $became a fiat currency and backed by ‘full faith and credit’ of the US Government. Since energy and oil prices spiked dramatically and eroded the value of $with Yom Kippur war of 1973 coupled with stagflation and Vietnam War, the US succeeded in securing an agreement with Saudi Arabia to price oil exclusively in USD, thus buttressing global demand for the US Dollar. Since Saudi Arabia was the largest producer and exporter of oil as well as the anchor of OPEC, other oil producing countries followed suit. These were ingenious economic and political statecraft executed and acquitted in the most efficacious manner by the US in order to maintain the global supremacy.

Global predominance of US economy and polity

In the 1950s, the global population was around 2.5 billion and the US population was around 150 million. The US share of global GDP was hovering around 40% while the US share of global population was only 6%. Today, the global population is around 8.2 billion whilst the US is around 350 million. The global GDP is $126 trillion and the US is around $32 trillion. Author wishes to expatiate that with a US share of global population of only 4.2%, the US share of global GDP is around 25%, if one does simple math. The US has been maintaining, consistently and unwaveringly, the share of global GDP of 25% or higher since the end of WWII. These records, manifestly, validate the omnipotence and dexterity of the US economy in all spheres.

In order to make comparisons with some of the leading economies such as China, which is the second largest economy, the share of global GDP of China is around 15% with a share of a global population of 17%. With regard to Germany, the share of global GDP is around 4.2% with a share of global population of around 1% and with regard to India, share of global GDP is around 3.3% with share of global population of 17.8% respectively. These figures of three of the largest economies i.e. China, Germany and India, would reflect the unparalleled lead or vantage the US has in the economic dimension.

The US is the largest importer of goods and services in the world accounting for around 13% and second largest exporter, behind China, with around 10%, with an estimated global trade of $36 trillion in 2025. The US is well-endowed with coal, iron, oil and gas and other natural resources as well as the largest arable land in the world. The US is the largest producer of crude oil in the world today, surpassing both Russia and Saudi Arabia, accounting for over 13 million bpd, which is around 15% of global oil production. Its defense spending is over $one trillion whilst the next largest is China, which is around $370 billion according to the World Bank. The global spending of defense is around $2.9 trillion and the US spends over 1/3. The US operates an estimated 750 to 800 overseas military bases in around 75 countries. In comparison, the overseas military bases of all other countries combined in the world would not be less than 50 bases. These establish the unmatched and supreme military métier and might of the US.

Corporates and influence of US on global scale

In the beginning of the 1900s, nobody paid much heed to the US equity market index known world over as Dow Jones Industrial Average (DJIA). Today, the global equity markets, either directly or indirectly, correlate to the US equity market, which is over 60% of the global market cap. of equity markets. The market cap of US equity is around $78 trillion or 225% of its GDP. The so-called ‘Magnificent-7’ corporates have a total market cap. of $23 trillion and are highly focused on AI, ML, Quantum Computing and most advanced technologies, thus embracing the 5th Industrial Revolution. This figure is still greater than the entire GDP of China or the country with the second largest stock market cap., which is also China, around $17.5 trillion. Here the author is focusing on just seven trillion-dollar market cap. corporates ranging from NVDIA to Tesla. The NVIDIA too recorded the highest ever market cap. of $five trillion in June 2026, exceeding the annual GDP of Japan, India or UK. Of course, the market cap. and GDPs of nations cannot be compared since the sources are disparate but readers would get a perspective of the depth and breadth of the equity market and strategic depth economy of the US.

In 1901, US chronicled the first ever billion-dollar corporate i.e. US Steel, and in 2017 chronicled the first ever trillion-dollar corporate i.e. Apple. Also, the US produced the first billionaire in 1916 and the first trillionaire in 2026 respectively. With a share of global population of merely 4.2%, the US consistently boasts and dominates the top most universities and largest corporates in the world as no other nation.

The impact of the US financial and banking realm is a force to be reckoned with. When the Federal Reserve Bank (Fed) appointed Kevin Warsh in May 2026 as the new Chair of Fed, the entire world was fixated on his monetary policy whether its hawkish or dovish. All electronic and print media extended coverage of this crucial appointment. Similarly, when the Central Bank of China, PBOC, appointed the Governor Pan Gongsheng in July 2023 and Reserve Bank of India (RBI) appointed the Governor Sanjay Malhotra in December 2024, the world as well as Asia did not pay much attention.

As the 41st President George H. W. Bush quote ‘If anyone tells you that America’s best days are behind her, they’re looking the wrong way’ unquote. These were echoed well over three decades ago. The author wishes to enunciate that this article was drafted not to determine or assess whether the domestic or foreign policy of America were moral, ethical or justifiable but to, unequivocally, establish the uninterrupted and unprecedented trajectory of prowess, impact and influence of the US since the beginning of 20th Century.

I like to conclude with the sapient words of President Dwight Eisenhower quote ‘America is best described by one word, Freedom.’

Sir Garfield Sobers, the great West Indies cricketer widely regarded as the finest all-rounder in the sport’s history, has died aged 89. His passing at his home in Barbados only 11 days shy of his 90th birthday was announced by Cricket West Indies on Friday, with the simple line: ‘A great innings has come to an end. In our hearts, now and forever, Sir Garfield Sobers.’

Sobers was the first batter to hit six sixes in an over when playing for Nottinghamshire at Glamorgan’s St Helen’s ground in Swansea in 1968. But it was just one of many feats in an illustrious career that saw him play 93 Test matches for West Indies – including 39 as captain – from 1954 to 1974.

From a humble background, Sobers made his Test debut for West Indies aged 17 in 1954 against Len Hutton’s England at Sabina Park in Jamaica.

His maiden Test century against Pakistan at the same ground in 1958 secured his place in history early: an unbeaten 365 that set the record for the highest individual Test score. It stood for 36 years until Brian Lara’s 375 against England in Antigua broke it in 1994, with Sobers at the ground to congratulate him.

Overall, the left-handed Sobers scored 8,032 Test runs at an average of 57.78 – the fourth-highest average in history among players with over 5,000 runs – and took 235 wickets at 34.03. In 383 first-class matches, he scored more than 28,000 runs and took more than 1,000 wickets, including time with South Australia and Nottinghamshire.

The George Keyt Foundation in partnership with the British High Commission in Colombo will present ’19th Century Views of Ceylon,’ a landmark exhibition showcasing a rare collection of historic artworks by renowned British artists. The exhibition will be held from 30 July to 1 August, 2026, at Westminster House, the residence of the British High Commissioner to Sri Lanka. The event marks the first time that Westminster House will host a public art exhibition.

The exhibition will provide visitors with a unique opportunity to view important works sourced from several private collections, many of which have never previously been displayed publicly. The carefully curated collection will present landscapes, architectural scenes and historical perspectives that offer a compelling visual record of 19th-century Ceylon.

Featured artists include:

Edward Lear, the celebrated English artist, illustrator, and author.

Andrew Nicholl, the famed landscape painter known for his watercolour depictions of the island.

Constance Gordon Cummings, the famed female writer and artist whose book ‘Two Happy Years in Ceylon’ described her time in Ceylon. She was a friend of Marianne North and Isabella Bird.

Together, the artworks provide a rare insight into how the island was observed and interpreted by visiting British artists during the 19th century.

British Airways joins the exhibition as its primary partner. The partnership coincides with the airline’s planned resumption of direct services to Colombo in October 2026, strengthening air connectivity between Sri Lanka and the United Kingdom.

The exhibition is also supported by Lynear Wealth, the Juniper Group and Nations Trust Bank, whose contributions have helped make this significant cultural event possible. News1st will serve as the official electronic media partner for the exhibition.

Through this collaboration, the George Keyt Foundation and the British High Commission aim to create greater public appreciation of Sri Lanka’s artistic and cultural heritage while strengthening the longstanding historical and cultural relationship between Sri Lanka and the United Kingdom.

Event Registration: Admission to the exhibition is free of charge, but attendance requires mandatory pre-booked passes due to limited capacity at the venue. Interested visitors can reserve their passes online by visiting the official registration portal: https://forms.gle/qAVW3Rd11aDdyNMr5