Interim report from forensic auditors raises NDB fraud to Rs. 13.58 b

National Development Bank PLC (NDB) yesterday said that the preliminary forensic review conducted by Deloitte Touche Tohmatsu India LLP has identified suspicious transactions amounting to Rs. 13.58 billion. Earlier disclosures by the bank had estimated the fraud at Rs. 13.2 billion.

The bank said it had received an interim report from Deloitte on the forensic review and that the observations contained in the interim report are preliminary and indicative, adding that the report remains confidential under the terms of the engagement.

However, based on the examination completed thus far, Deloitte has identified the value of the suspicious transactions at Rs. 13,579,664,684. The bank said it will make further disclosures as appropriate.

The slow train to the more sustainable fast track is back

There are railways. And then there are railways that carry the spirit and the imagination of a nation. For months after Cyclone Ditwah tore through Sri Lanka’s hill country, our world-famous upcountry line was not merely out of service. It was out of sight, it was out of reach, and it was perilously close to being out of mind.

Last weekend, however, after months of absence – and a silence imposed by a tropical storm’s fury on the clickety-clack, chuff-chuff and cheerful toot – our island-nation’s iconic upcountry line roared back to life.

The return of railway services (including, potentially, the popular Ella Odyssey train) along the Badulla line is more than a transport and logistics success story. It is the resurrection of arguably Sri Lanka’s most photographed tourism product after Sigiriya.

It is the journey that travel writers routinely rank as being amongst the greatest railway adventures. It is also the route that traverses tea-clad slopes, skirts dizzying precipices, crosses the celebrated Nine Arches Bridge, loops eponymously around Demodara’s engineering marvel, and appears daily on literally millions of social-media feeds. And it promotes Sri Lanka far more effectively than any or many marketing campaigns could ever hope to do.

So when Ditwah struck with the full force of a tropical cyclone, it did not merely interrupt train services. It also disrupted a long-running epic saga of intrepid adventure.

TML

The ensuing damage was immense. Note myriad landslides, embankment failures, soil erosion, damaged culverts – leaving bridges, and track segments including lengthy segments of The Main Line (TML), utterly unusable.

When railway authorities reported nearly a hundred major damage sites between Maradana and Peradeniya (on the lower runs of The Main Line), rail fans and tourism buffs alike knew that it was an unprecedented disaster.

And it was merely common knowledge, not news later, when it transpired that the Nanu-Oya to Ambewela sector (on the upper slopes of the Main Line) suffered extensive destruction at multiple locations, demanding months of painstaking engineering interventions.

Still the Nine Arches Bridge stood, as well as the track remained largely intact around the Demodara Loop.

But in the aftermath of the worst natural disaster to sunder our tropical paradise was the seed of the railway’s future recovery.

And although what followed took many months to bear fruit, what ensued was a remarkable exercise in national resilience.

All

Railway workers, engineers, technical officers, transport officials, geologists from the National Building Research Institute, contractors, suppliers and policymakers laboured long and hard under extraordinarily difficult conditions.

In many places, access to damaged stations, bridges and culverts existed only along the disappeared railway line itself. Materials had to be transported by special service trains or manually conveyed to remote mountainside locations.

Internationally reputed and experienced engineering firms joined local expertise. Politicians supplied policy support and State funding.

Taxpayers ultimately underwrote the reconstruction effort. Commuters had endured much inconvenience with remarkable fortitude and patience. Meanwhile, entire hillside communities and remote villages had waited in hope…

And that sterling hope, on top of the stalwart efforts of the Sri Lanka Railway (SLR) and its stakeholders, has realised rich dividends for a land often languishing under lamentable natural and man-made disasters.

That railway line, which many feared would remain crippled and out of commission well into a bleak future, is once more carrying passengers aboard the Podi Menike and Udarata Menike through the deep heart of our hill country again.

Heart

And what a heart it is. Travel publications routinely rank the Kandy-Ella-Badulla railway line as being among the world’s most scenic train rides.

Tea estates drape emerald hillsides. Waterfalls tumble through the sylvan glades. The famed Demodara Loop remains one of railway engineering’s most jaw-dropping marvels. The Nine Arches Bridge continues to draw gobsmacked visitors from every continent.

Engineers. Inspectors of Permanent Ways (IPWs). Track gangs. Signal technicians. Geological specialists. Building research experts. Locomotive crews. Ordinary labourers. Ornery politicos! And public servants of all ilks. Not forgetting entire communities

________________________________________

Social media has turned the route into Sri Lanka’s unofficial ambassador, generating multiple millions of views annually and inspiring countless travel itineraries.

So when trains stopped perforce, the losses extended beyond mere passenger and cargo revenue, negligible though the latter may be, despite the line’s colonial provenance of being built to haul tea and other commodities.

Hotels, guesthouses, tuk-tuk operators, cafes, restaurants, guides, photographers, artisans and small businesses throughout the central highlands felt the impact. International travellers postponed journeys and some altered their itineraries altogether.

SLR

It soon became evident to even the most agnostic policymakers that a railway line built by Victorian engineers more than a century and a half ago had become a critical artery of the modern tourism industry and the national economy it supported.

The cyclone exposed the vulnerability of a network that had long suffered from deferred maintenance, chronic under-investment, and the institutional paradox of being simultaneously indispensable and underfunded.

In 2023, Sri Lanka Railways transported more than 109 million passengers and almost two million tonnes of freight. Yet, against revenues of Rs. 16 billion stood expenditures approaching 39 billion rupees. The gap between aspiration and affordability was already wider than Sensation Gap at Kadugannawa before the first embankment collapsed.

30%

Enter Ditwah. At the nadir of the disaster, only about 30% of the national network – mostly along the western coast line – remained operational. More than 90 locations suffered major track damage. Some 75 bridges were rendered impassable. Landslides buried long sections of the line. Embankments vanished. Cuttings failed. Culverts were inundated. Mother Nature, having patiently audited decades of neglect, submitted her stern invoice.

And what an invoice it was. Railway reconstruction estimates have ranged from $ 320-400 million. Across the wider economy, Ditwah inflicted damage that was estimated at over four billion dollars.

Yet, the numbers tell only part of the story. The real achievement lies in the overwhelming departmental and national response.

Engineers. Inspectors of Permanent Ways (IPWs). Track gangs. Signal technicians. Geological specialists. Building research experts. Locomotive crews. Ordinary labourers. Ornery politicos! And public servants of all ilks. Not forgetting entire communities.

Together they undertook a restoration effort of extraordinary complexity. Materials had to be hauled to difficult-to-access locations over rough ruined terrain. In some places, one damaged section had to be repaired before access to the next could even be contemplated.

Crews had to repair one sector to reach the next, and then repair a next before moving on to restore another segment. And then later repeat the process dozens of times across hundreds of kilometres of mountain country.

Nth

This was not merely reconstruction. It was a gargantuan effort oriented towards national perseverance. All those railway engineers, IPWs, locomotive crews, signal technicians, construction personnel, geologists, planners, administrators and parliamentarians found themselves engaged in a project that was simultaneously technical, logistical, financial and political.

The reopening of the upcountry line therefore carries significance beyond railway enthusiasts delighted to hear steel singing on steel once again. It signals renewed confidence to travellers who postponed visits to paradise lost.

It restores livelihoods to all those previously affected hoteliers, guides, cafe owners, drivers, artisans and small entrepreneurs from Nanu Oya to the nth station along the line.

It revives a tourism icon at a time when Sri Lanka is ambitiously targeting three million arrivals and hopes to build on last year’s record earnings of $ 3.2 billion.

Can/will

There is also something more intangible at play. After months of headlines dominated by disaster, loss and recovery, the much anticipated return of the Ella Odyssey and its sister services offers a rarer commodity: encouragement.

For if a colonial relict of a railway line blasted through rocky mountains by Victorian engineers, neglected by generations of politico-legislators, battered by unprecedented weather and buried under the muddy tonnage of landslides can find its way back into service, surely a slowly recovering nation can do so too.

The truth be told, the most important thing returning to the upcountry line last week was not the train alone. It was momentum along another track also… now, the shrill whistle blows again. And the horns of elfland – haunting klaxons on a triple air horn of a Class M2, I would like to say – peal through the gorges again. But the stalwart reconstruction effort offers a lot more than restored connectivity.

It sends a message: Sri Lanka can recover; Sri Lanka will recover.

More

Be that as it may, there remains work to do. Some sections of the broader network continue under repair. Slope protection, drainage improvements, and climate-resilient infrastructure must become priorities in an era of increasingly extreme weather. With the impending El Niño, something wicked this way comes?

The truth be told again though, the most encouraging thing about steel singing in the mountains again is not that it celebrates a journey completed. It hints at one that is just beginning.

Sri Lanka hopes to attract three million visitors this year after tourism earnings exceeded $ 3.2 billion last year. For many of those visitors the upcountry railroad is not a side excursion. It is the main destination.

It is the image they saw online. It is the memory they intend to take home. Every compartment seat filled represents not merely tourism revenue, but hotel occupancy, restaurant receipts, guide fees, handicraft purchases, transport services and foreign exchange.

LKR

In short, the railway multiplies value far beyond the ticket price. It is also why the reopening of this much celebrated stretch of railway invites a larger question. Have we merely restored what existed before Ditwah? Or have we learned enough from the cataclysm to build back better what comes next?

Climate resilience. Modern signalling. Better drainage. Slope monitoring. Smarter maintenance. Greater integration between tourism policy and transport planning. A railway fit not only for picture postcards but a profitable future ahead.

But for now, perhaps we should simply celebrate! A train emerging from the mist near Ella may seem an ordinary sight again. And today, a week after the Menike wound its way along the mountain passes once more, it feels more like a special symbol.

Steel rails repaired. Communities reconnected. Tourists returning. Spirits uplifted. After Ditwah’s devastation the upcountry line reminds us that nations too, like railways, are not defined by where they break – but by how well and determinedly they rebuild.

The truth be told for the final time then, that whistle sounds a lot like hope. And so it is that a funny thing happened on the way to despair: the train returned. But better, as strong as before, on the fast track to a national dream.

India’s Zydus and Sunshine Healthcare in $ 20 m pharmaceutical manufacturing JV in Sri Lanka

Zydus Lifesciences and Sunshine Healthcare yesterday announced the setting up of a strategic joint venture company, Zydus Sunshine Lifesciences Ltd., with an investment commitment of over $ 20 million to establish a pharmaceutical manufacturing facility in Sri Lanka, strengthening local production and reducing import dependence.

The facility, to be located at the Board of Investment zone in Horana, will be developed on nearly four acres of land. The foundation stone was laid yesterday, marking the formal commencement of the project. The plant will focus on manufacturing pharmaceutical products for Sri Lanka’s retail market, improving access to high-quality medicines while supporting national supply chain resilience.

The joint venture combines Zydus’ global expertise in pharmaceutical manufacturing and technical know-how with Sunshine’s strong local market presence and healthcare distribution capabilities. The partnership will support technology transfer, build local manufacturing capability, and create employment, contributing to the long-term development of Sri Lanka’s healthcare ecosystem.

The initiative comes at a critical time as Sri Lanka prioritises domestic production in essential sectors. By strengthening local pharmaceutical manufacturing capacity, the venture is expected to enhance supply security, reduce reliance on imports, and improve the affordability and availability of medicines.

Zydus Lifesciences brings extensive capabilities across formulations, APIs, medical technology, diagnostics, animal healthcare and consumer wellness. Its global healthcare expertise and manufacturing excellence will play a key role in establishing and scaling the facility.

Zydus Lifesciences Managing Director Dr. Sharvil P. Patel said: ‘We have always believed that strong local capabilities are key to resilient healthcare ecosystems. By combining Zydus’ global experience and manufacturing excellence with Sunshine Holdings’ local expertise, this collaboration marks an important step in strengthening Sri Lanka’s healthcare ecosystem and building sustainable pharmaceutical capabilities for the future.’

Sunshine Holdings PLC Group CEO Shyam Sathasivam said: ‘This partnership is a strategic investment in Sri Lanka’s healthcare security and industrial growth. Together with Zydus, we aim to enhance local pharmaceutical manufacturing, create skilled employment, and improve access to essential medicines for Sri Lankan consumers.’

The project will operate under the oversight of the Board of Investment, with the Ministry of Health and the National Medicines Regulatory Authority as key stakeholders. All products will comply with NMRA regulations and applicable pricing frameworks.

Rakhitha Rajapakshe arrest: BASL denies making court representations for arrested lawyer

The Bar Association of Sri Lanka (BASL) yesterday clarified that it did not make any representations on behalf of Rakhitha Rajapakshe, an Attorney-at-Law arrested by the Commission to Investigate Allegations of Bribery or Corruption, stating that its role was limited to observing the proceedings and reporting the matter to the Association for any further action.

The BASL said: There have been certain media reports that the Bar Association of Sri Lanka (BASL) made representations during the Court Proceedings at the Chief Magistrate’s Court of Colombo (Thursday) evening pertaining to an Attorney-at-Law who had been arrested and produced before Court by the Commission to Investigate Allegations of Bribery or Corruption.

The BASL wishes to clarify that the role of the BASL in matters of this nature that pertain to members has been limited to observing the relevant proceedings pertaining to an Attorney-at-Law and reporting the same to the association for further steps.

The Executive Committee of the BASL has not authorised any Attorney-at-Law to make submissions on its behalf during these proceedings, nor has the BASL taken any decision to make any representation on behalf of the said Attorney-at-Law.

Indonesia’s Golden Vision 2045 and lessons for Sri Lanka’s development journey

The Pathfinder Foundation held its latest Ambassadors’ Roundtable at the Colombo Club, Taj Samudra, featuring Indonesian Ambassador and Diplomatic Corps Dean Dewi Gustina Tobing, who presented on Indonesia’s long-term national development strategy, Indonesia’s Golden Vision 2045.

She said that reflecting on the relevance of Indonesia’s experience for Sri Lanka, she observed that while the two countries have distinct development trajectories, they share common aspirations in strengthening human capital, improving food security, attracting investment, and building resilience against emerging challenges.

The Ambassador highlighted that Indonesia, with a population exceeding 280 million and a GDP of approximately $ 1.4 trillion, continues to remain the largest economy in Southeast Asia. Despite global uncertainties, the country has maintained resilient economic growth of around 5% in recent years, supported by industrial development and infrastructure investment.

In her address, Ambassador Tobing outlined Indonesia’s vision of becoming a developed, prosperous, and globally influential nation by 2045. She explained that the vision is being pursued under the leadership of President Prabowo Subianto, building upon successive administrations’ long-term development agenda.

The Ambassador outlined four foundational pillars underpinning Indonesia’s Golden Vision 2045:

A key component of Indonesia’s strategy is downstream industrialisation, which encourages domestic processing and value addition to natural resources rather than exporting raw materials. Ambassador Tobing cited the country’s nickel industry as a notable example, highlighting its transformation into an integrated ecosystem that includes smelting, battery production, and electric vehicle supply chains. Indonesia’s abundant reserves of nickel, palm oil, coal, and gold are being leveraged to attract foreign investment, support industrialisation, and create higher-value economic opportunities.

Looking ahead, Indonesia aims to become the world’s fifth largest economies by 2045, with projected GDP reaching between $ 9.1 trillion and $9.8 trillion and GDP per capita ranging from $ 23,000 to $ 30,000. Ambassador Tobing stressed that the components of Vision 2045 are currently being implemented are integral building blocks towards achieving these objectives.

Reflecting on the relevance of Indonesia’s experience for Sri Lanka, she observed that while the two countries have distinct development trajectories, they share common aspirations in strengthening human capital, improving food security, attracting investment, and building resilience against emerging challenges. As Indian Ocean States, both countries also share an interest in enhancing connectivity, expanding trade and investment, and promoting regional stability and prosperity, while creating mutually beneficial opportunities for deeper bilateral cooperation.

The presentation was followed by an interactive discussion on ASEAN’s role in regional affairs, Indonesia’s independent foreign policy, governance and anti-corruption efforts, social cohesion, the Regional Comprehensive Economic Partnership (RCEP) and opportunities for Sri Lanka, Papua’s development, and Indonesia’s democratic and economic transformation.

In her final remarks, Ambassador Tobing reaffirmed Indonesia’s commitment to strengthening cooperation with Sri Lanka.

‘Sri Lanka is a good partner of Indonesia,’ she stated. ‘We would like the progress and opportunities that Indonesia has achieved to be shared through collaboration. Our partnership is very important, and we look forward to strengthening it further in the years ahead.’

Opening the session, Pathfinder Foundation Executive Director Dr. Dayaratna Silva highlighted the significance of Indonesia’s remarkable development journey and the valuable lessons it offers countries across the Global South. He noted that Indonesia’s rise as a G20 member and its growing influence in regional and global affairs demonstrate the success of its long-term development planning. He further emphasised Indonesia’s leadership role within ASEAN and its contribution to establishing the RCEP, the world’s largest free trade agreement.

SAARC SG Sarwar calls for renewed engagement to reignite SAARC

SAARC Secretary General Ambassador Md. Golam Sarwar has appealed to SAARC member states to engage more proactively with each other to overcome the present difficulties facing the regional body and to reignite SAARC.

Noting that ‘there remains great opportunity for regional unity to take centre stage,’ he said: ‘While immediate bilateral priorities often demand close attention, an inspiring momentum is emerging as visionary leadership across the region works to keep broader cooperation at the heart of the conversation. When member nations champion this collective vision together, they can successfully elevate the dialogue around shared progress, ensuring that deep, meaningful regional integration remains a vibrant and lasting priority for all.’

SG Sarwar, who was on a visit to Sri Lanka, made these observations when he addressed the ‘5th RCSS Strategic Dialogue’ hosted by the Regional Centre for Strategic Studies (RCSS) in Colombo on 24 June 2026 on the theme, ‘Reigniting SAARC: Achievements, Challenges and Way Forward.’

Moderated by RCSS Executive Director Amb. Ravinatha Aryasinha, the event sought to examine the current state and future potential of SAARC and regional cooperation within South Asia.

During his address, SG Sarwar detailed the significant contributions of SAARC over nearly four decades, reflecting on its role as an ‘irreplaceable beacon of hope’ for the region’s two billion people. He provided an update on the ongoing activities of specialised regional centres, specifically highlighting the SAARC Cultural Centre in Sri Lanka as a vital node of technical expertise driving a practical, bottom-up approach to regional problem-solving.

Highlighting the organisation’s commitment to academic integration, the Secretary General stated that nothing epitomises the spirit of ‘knowledge without borders’ more powerfully than the establishment of the South Asian University (SAU).

He described the university as a ‘visionary investment in our collective intellectual capital’ that fosters a shared regional consciousness by building a ‘living bridge of mutual trust and academic collaboration’ that transcends political boundaries. SG Sarwar further pointed to active cooperation currently taking place among states at the functional level, such as the recent ministerial conference in Colombo, which focused on ending violence against children.

In a powerful conclusion, SG Sarwar reframed the current dialogue around the organisation’s future, inviting the audience to appreciate the irreplaceable foundation built over the last four decades. Rather than looking at it with pessimism, he championed SAARC as the region’s premier vehicle for cooperation. He concluded with a call to action, asserting that the true path forward lies in uniting efforts to build a ‘much stronger, more empowered, and thoroughly revitalised SAARC.’

The subsequent dialogue included the participation of former SAARC Secretary General and RCSS Board Member Amb. Esala Weerakoon; former Executive Director of RCSS Prof. Gamani Keerawella; SAARC Secretariat Director Amb. Waruna Wilpatha; Ministry of Foreign Affairs Director General (South Asia) and former SAARC Secretariat Director Varuni Muthukumarana; and SAARC Cultural Centre (SCC) Director Dr. Kaushalya Kumarasinghe, alongside a distinguished group of diplomats, academics, policy experts and media personalities.

The discussion explored the fundamental concept of a ‘South Asian identity,’ questioning whether the region should be defined as a purely geographical, cultural or historical entity. It was argued that for regionalism to truly flourish, the association must evolve from being state-centred to embracing a ‘People’s SAARC’ approach, fostering a shared ideology that takes the grand philosophy of integration out of conference halls and directly into the hearts of the rural landscape.

This vision is being actively promoted through ‘decolonising’ standard academic frameworks, as practised at the South Asian University, to view regional challenges through a South Asian lens rather than through external conceptual models.

On the economic front, the dialogue addressed the challenge of intra-regional trade, noting that member states often produce similar goods, which can lead to competition.

To overcome this, it was suggested that SAARC serve as a platform for new collaborative frontiers, such as a ‘SAARC Mineral Policy’ to address critical minerals and regional green technologies.

The discussion further emphasised the need for mutual recognition agreements, particularly in pharmaceutical manufacturing, and the necessity of a sustainable ‘Blue Economy’ to protect regional natural resources for future generations. Participants highlighted that the region should be viewed as a collective destination for investment, leveraging its massive market to attract global capital.

To navigate the current geopolitical impasse, the dialogue highlighted the urgent need for a collective shift from ‘political exceptionalism to functional regionalism’. This strategy advocates the purposeful insulation of core sectors, including climate action, disaster response and energy, to ensure they remain ‘immune from diplomatic turbulence’.

It was observed that SAARC remains an ‘indispensable institutional anchor’, providing a neutral platform for policymakers and experts to maintain engagement through informal diplomacy even during periods of bilateral tension. It was emphasised that SAARC, rather than being seen as an ‘engine’ for regional cooperation and integration, which would require the sustained political will of all member states, could more meaningfully serve as a ‘catalyst’, drawing inspiration from the institutional foundations of similar regional organisations.

Further, misconceptions regarding the cost of the association were addressed. It was noted that the investment required to maintain SAARC is minimal compared to its strategic value, with its entire annual budget being less than the operating costs of some individual diplomatic missions in the region.

UN Peacebuilding Week highlights role of inclusive public service in building peace

Public sector officials, community members and development partners recently came together for Stories that Connect, an interactive dialogue event organised by the United Nations in Sri Lanka to mark United Nations Public Service Day.

Held as part of United Nations Peacebuilding Week, the event highlighted how sustainable peace is built not only through formal agreements and policies, but also through everyday interactions that foster trust, understanding and a sense of belonging. In Sri Lanka, where efforts to strengthen reconciliation and social cohesion continue, creating opportunities for people to listen to one another, engage across differences and participate in decisions that affect their lives can help strengthen relationships between communities and institutions.

Inspired by the Human Library concept, the event created a space for participants to engage directly with stories of lived experience, personal journeys and reflections on public service and inclusion. Through open conversations and diverse perspectives, participants explored how empathy and dialogue can help bridge divides, challenge assumptions and deepen understanding and respect.

The event featured public servants, community leaders and civil society representatives from across Sri Lanka, including Chaminda Hettiarachchi of the Department of Pensions, Chameesha De Silva of the Department of Posts, Samali Wathsala Kulathunga of the Grama Niladhari Service, Kithsiri from the Gampaha District Administration, Rubadharshan from the Ministry of Plantation and Community Infrastructure, community representatives Niojini Vinayagam, Anne Subadara Peries and Shiroma Namali, and V. Anthones of the Uva Workers Development Foundation. Through their stories and experiences, they offered unique perspectives on the challenges and opportunities of building more inclusive and connected communities.

Stories that Connect forms part of the Social Dialogue for Peace and Crisis Prevention Project, implemented in partnership with the Ministry of Public Administration, Provincial Councils and Local Government through ILO, UNESCO and UNFPA. The project supports efforts to strengthen dialogue and participation, helping create stronger connections between communities and institutions as a foundation for lasting peace. The project is supported by the UN Sri Lanka SDG Fund, with contributions from Canada, the United Kingdom, the European Union, the Joint SDG Fund and the United Nations Peacebuilding Fund.

Sri Lanka is one of many countries participating in the first-ever United Nations Peacebuilding Week, a global initiative marking 20 years since the establishment of the UN Peacebuilding architecture. The week celebrates progress made in supporting countries to prevent conflict and sustain peace, while highlighting the role of dialogue, participation and trust in building more peaceful, inclusive and resilient societies.

CSE up 0.21% during week

The Colombo stock market ended yesterday in green with the ASPI gaining 0.21% and the S and P SL20 up 0.51% during a week characterised by cautious investor sentiment.

Despite losing counters outpacing winners 115 to 95 yesterday, the ASPI closed marginally up by 0.01% or 2.77 points to 22,409.81 and the S and P SL20 ended up 0.07% or 4.67% at 6,247.42.

Market turnover was over Rs. 1.9 billion on nearly 64 million shares traded. Foreign investors were net buyers on a net inflow of Rs, 9.3 million.

Asia Securities Research said HAYC, SINS, HAYL, and PKME recorded noteworthy gains during the session. Turnover was supported by COCR with Rs. 197 million, PKME Rs. 172 million, and SIL Rs. 152 million. DIAL, JKH, and HAYL contributed the most to the index.

NDB Securities said the ASPI edged up as a result of price gains in counters such as DFCC Bank, Melstacorp and Central Finance Company. A similar trend was witnessed in the S and P SL20.

High net worth and institutional investor participation was noted in ACL Cables, Hayleys and HNB Finance. Mixed interest was observed in Lanka Realty Investments, CIC Holdings non-voting and HNB Finance, whilst retail interest was noted in SMB Leasing, UB Finance Company and Industrial Asphalts. Foreign participation in market activity remained at subdued levels, with foreigners closing as net buyers.

The capital goods sector was the top contributor to market turnover due to ACL Cables and Hayleys, whilst the sector index edged down by 0.07%. The share price of ACL Cables decreased by 50 cents to close at Rs. 100.25 and Hayleys gained 50 cents to Rs. 240.

The diversified financials sector was the second-highest contributor to market turnover due to HNB Finance, whilst the sector index increased by 0.57%. HNB Finance appreciated 50 cents to Rs. 9.60.

Lanka Realty Investments and CIC Holdings non-voting were also among the top turnover contributors. Lanka Realty Investments moved up by Re. 1 to Rs. 59.50 and CIC Holdings non-voting recorded a gain of 10 cents to close at Rs. 26.50.

Iran prevails, Trump concedes and Israel fumes

‘Deposuit potentes de sede et exaltavit humiles’ (He has put down the mighty from their seat and exalted them of low degree). These words of W. H. Longfellow ring a bell when one looks at the turn of events surrounding the US-Israel war against Iran.

Never in the history of US military adventures in the Middle East has it experienced such an embarrassing setback as against Iran in the aftermath of 28 February.

In Libya, Iraq, Yemen and Afghanistan, the US virtually faced no credible resistance against its military might and walked away with incredible arrogance after causing maximum destruction and bloodshed.

In fact, something along that scale was the original intention of Donald Trump and his Israeli partner Benjamin Netanyahu, who planned to walk away in two weeks’ time after destroying the so-called mullah regime with its non-existent nuclear arsenal and replacing that regime with that of the Pahlavi Dynasty. At one point, Trump even trumpeted that he would destroy Iran’s entire civilisation.

But after spending an expected $ 1 trillion, according to Linda Bilmes, a public policy expert from Harvard Kennedy School, it is Iran, not the US, that appears to be setting the agenda for possible regime changes in both the US and Israel.

The fourteen-point memorandum signed between the US and Iran a few days ago in Switzerland is expected to ‘turn over a new leaf’ in US-Iran relations, according to US Vice President J. D. Vance. However, until that memorandum is ratified in sixty days’ time, it remains a fragile ceasefire, like Trump’s other ceasefires.

Unless Trump intervenes directly to keep Israel out of South Lebanon, this ceasefire cannot last long. In the meantime, Iran’s blockade of the Strait of Hormuz and the US counter-blockade will be removed, oil and gas transportation through the strait will resume, and nations across the continents could breathe a sigh of relief, expecting their economic pain to ease, at least for now.

Among those fourteen points are five crucial ones, which really show that Iran is negotiating from a position of strength and not weakness.

Mutual respect for each other’s sovereignty, $ 300 billion for Iran’s reconstruction from as yet unknown sources, termination of all US sanctions against Iran, release of Iranian frozen assets, and negotiations over Iran’s nuclear and uranium enrichment program under the supervision of the International Atomic Energy Agency are vital issues on which Iran would not yield, and the fate of the memorandum lies in the US ratifying them. (That Iran has no nuclear weapons at present and that the late Ayatollah Ali Khamenei banned their production are open secrets.)

However, Iran has proved itself capable not only of defending its territory against any foreign threat but also of attacking US bases anywhere in the Gulf region and the Middle East. The main reason why Israel revolted against this memorandum is that it wanted Iran’s nuclear and uranium enrichment programs to be destroyed completely or transferred elsewhere so that Israel could remain the only nuclear power in the Middle East.

The chief loser in this development is Israel.

It was Israel and the Zionist lobby in Washington that pressed Trump to bomb Iran in the first place. Now, having lost that gamble and allowed Iran to gain the upper hand in negotiations, Netanyahu’s own future, personally, and that of his Likud Party, politically, are in jeopardy. That is why, in sheer desperation, Israel insists on occupying South Lebanon in the name of fighting Hezbollah’s so-called terrorism. But Iran insists on Israeli withdrawal. Trump is in a dilemma. Is there a way out of this predicament?

The absence of any mention of the future of Gaza and the West Bank in the memorandum indicates that Israel might be compensated by being allowed to annex these two territories permanently into Eretz Israel. Already, Trump and Israel are actively working to strip Jordan of its historic custodianship over Al-Aqsa, with a plan to convert it into a multifaith centre so that its Islamic identity would be destroyed forever.

Trump’s son-in-law Jared Kushner and US Ambassador to Israel Mike Huckabee are reported to be championing this sinister design. That is why the omission of Gaza and the West Bank from the memorandum gives room to suspect that Iran is ready to sacrifice the cause of Palestine in exchange for its own national benefits. Are the Qatari and Pakistani negotiators also party to this devil’s bargain?

Revenge of history

The Middle East tragedy since 7 October 2023 originated in 1948 when that Zionist entity called Israel was planted at the heart of the Arab world. None of the Arab leaders since then realised that this entity would remain an existential threat to all their kingdoms and governments and that they should either individually or collectively build their own defence capabilities against the new enemy. Instead, what they did was surrender that vital sector at the feet of the dominant Western powers, starting with Britain and then switching to the US.

The American bases in the Gulf region speak volumes about this surrender. Even after the 1970s, when petrodollars started flooding the national coffers of a few of them to such an extent that they could have, as *The Economist* commented at the time, ‘paved their deserts with gold’, they chose instead to invest that wealth in the West and tried to recreate at home the image of those legendary Arabian Nights.

When the struggle for an independent Palestine led by the PLO became an irritant to them after the 1970s, they went along with the Western powers to endorse whatever solutions were offered by those powers.

The so-called Oslo Accord was virtually a blueprint for the eventual absorption of Palestine by Israel. To make the situation worse, one or two Arab regimes, such as the UAE and Saudi Arabia, were already normalising their relations with Israel behind the scenes. When Libya and Iraq tried to challenge the US-made Middle East order and were militarily destroyed by the US as a result, the other Arab regimes remained spectators because of their historic disunity.

Trump’s Abraham Accord in 2020 was an open invitation to these regimes to formalise their relations with Israel. The UAE and Bahrain did so immediately, and the others were almost ready to join in when Trump was defeated in the midterm elections. Iran, however, remained an outsider to these developments and, after 1979, chose to reject US leadership altogether and Israel’s claim to military dominance over the Middle East. The rest is history.

In short, the Israeli genocide in and physical desertification of Gaza, the killings and forced eviction of Palestinians by Israeli settlers, all designed and endorsed by the Israeli Government in the West Bank, the killings, destruction and occupation of Southern Lebanon under the pretext of fighting Hezbollah terrorism, and the bombing of Iran by the US are all history’s revenge on a disunited Arab world. Its natural allies are in the East and not in the West.

Even the Prophet looked to China as a repository of knowledge and wanted his followers to seek that knowledge from that quarter. When will the Arab intelligentsia wake up to this truth?