Category: Daily Financial Times

Following an indifferent first innings batting performance where they conceded a lead of 18 runs to Chilaw Marians CC, CCC displayed their full colours in the second innings when they chased down a winning target of 196 to win outright by nine wickets their Major Club 3-day League match concluded at the Colts grounds yesterday. CCC were joined by NCC, Panadura SC and Ace Capital CC in securing full points.

Lasith Croospulle led the run chase for CCC with his 11th first-class hundred – an 81-ball knock for 128 that comprised 12 fours and 8 sixes sharing an opening partnership of 184 with Nishan Madushka (54* off 69 balls, 6 fours). It was Croospulle’s second hundred in successive matches having scored 155 against Colts last weekend. CCC snapped up the remaining two Chilaw Marians CC wickets for the addition of 22 runs to bowl their opponents out for 177 leaving themselves plenty of time to get the runs. Sri Lanka Test pacie Asitha Fernando captured the two wickets to end with figures of 4/40 and a match bag of 8/71.

NCC went to the top of Group B with an innings and 74 runs win over Badureliya SC at Mahinda Rajapaksa Cricket Stadium, Sooriyawewa. Replying to NCC’s total of 387, Badureliya SC were put out twice for 147 and 166 being forced to follow-on. The chief destroyer of their innings on both occasions was debutant Shakthi Udara, the left-arm spinner with a slingy action. The former Rajasinghe Central College, Hanwella and Ananda College, Colombo cricketer took a match bag of 8/119 (4/58 and 4/61).

Defending champions Bloomfield suffered a severe setback to their chances of qualifying for the Super Eights when they were beaten outright by 58 runs by Panadura SC at Surrey Village grounds, Maggona. Bloomfield, who trailed Panadura SC by 99 runs in the first innings did well to bowl their opponents out a second time for 126, which left them with a target of 226 to chase. But their batting faltered badly for the second time and they were bowled out for 167 with left-arm seamer Mohamed Dilshad making inroads into their batting ending with a match bag of 7/112. Only Ravindu Fernando put up any kind of resistance scoring 69* off 72 balls (11 fours) to follow his 5/39 in the Panadura SC second innings.

Ace Capital Capital CC came up with a much improved batting display in their second innings to beat BRC outright by 6 wickets at the P Sara Oval. Having conceded a first innings lead of 91, Ace Capital CC did well to dismiss BRC for 194 in their second innings leaving themselves with a target of 286 to chase. Spearheaded by a superb century from opener Pawantha Weerasinghe (121 off 128 balls, 15 fours, 2 sixes) and contributions of 59* (off 105 balls, 6 fours) and 49 from Kavindu Kulasekera and Ranesh Silva respectively, Ace Capital CC reached their target comfortably for the loss of four wickets. Spinners Roshan Jayatissa (match bag of 8/123) and Wanuja Sahan (7/89) took the wickets for Ace Capital CC.

Defiant centuries from Sharujan Shanmuganathan (122* off 263 balls, 21 fours) and skipper Minod Bhanuka (173 off 202 balls, 22 fours, 1 six) and their partnership of 285 for the fourth wicket enabled Tamil Union to hit up their highest total of the season – 358/6 declared after being asked to follow-on and draw their match against Kurunegala YCC at the NCC grounds. Kurunegala YCC who used nine bowlers in the Tamil Union innings were 72-5 in their second innings after being set 122 to win. They took first innings points.

Police SC continued to head Group A widening the gap to 18 points with a first innings win against Nugegoda SWC at the Galle Cricket Stadium. Nugegoda SWC were dismissed for 229 in their first innings giving Police SC a lead of 119 which they stretched to 303 by declaring their second innings at 184-4. Left with a target of 304, Nugegoda SWC held out at 113-6. Left-arm spinner Dilum Sudeera was the pick of the Police SC bowlers with a match bag of 9/124 (5/66 and 4/58). Dulash Udayanga scored 58* for Police SC in their second innings.

TMC Colombo and TMC Mount Lavinia recently completed a joint flood relief initiative on 21 December 2025 to assist families affected by severe flooding in the Wellampitiya, Gothatuwa and Angoda areas.

The programme was launched in response to widespread flooding that caused significant disruption to daily life, particularly impacting low-income households that lost essential household items and faced difficulties in meeting basic needs. Recognising the urgency of the situation, the two TMC chapters collaborated to deliver targeted assistance aimed at restoring dignity, safety and stability to affected families.

A structured needs assessment was conducted prior to the distribution process to ensure that assistance reached the most vulnerable households. Beneficiaries were selected based on verified ground information, with supporting documentation reviewed to maintain transparency and accountability throughout the initiative. Special attention was given to families with children and infants.

The relief support focused on providing essential household items, grocery assistance, electrical appliances and educational materials for children. All funds utilised for the project were donated by TMC members, with a total collection of Rs. 140,000. By tailoring support to individual household requirements, the initiative addressed immediate practical needs while supporting continuity in daily life and children’s education during the recovery period.

The project was jointly coordinated by TMC Mount Lavinia Chairman Shalutha Samarathunge, and TMC Colombo Chairperson Duneeshya Bogoda. Their leadership enabled effective coordination between the two chapters, ensuring timely implementation and appropriate oversight of the relief activities.

President Donald Trump’s address on 3 January announcing the ‘arrest’ of Venezuelan President Nicolás Maduro marks one of the most consequential and controversial assertions of power in contemporary international relations. Whether framed as law enforcement, counter-narcotics action, or geopolitical signalling, the declaration has sent shockwaves through diplomatic and legal circles worldwide. Beyond Venezuela, the episode raises fundamental questions about head-of-state immunity, unilateral use of force, selective accountability, and the increasingly fragile foundations of the rules-based international order.

This is not merely a dispute between Washington and Caracas. It is a test case for how international law functions-or fails-when confronted by overwhelming power.

Trump’s address: Law, force, and political messaging

In his address, President Trump claimed that U.S. forces had captured President Nicolás Maduro and transported him to the United States to face charges relating to narcotics trafficking and terrorism. He justified the operation as a necessary act to protect American security, dismantle what he described as a ‘narco-state,’ and deliver justice where international mechanisms had allegedly failed.

Trump went further, signalling that the United States would assume a temporary supervisory role in Venezuela during a political transition and indicated that American companies would play a role in rehabilitating Venezuela’s oil sector. The speech blended legal rhetoric with strategic messaging, presenting military action as both lawful and morally justified, while offering few references to multilateral authorisation or international legal processes.

The address was also unmistakably political. The language of arrest, justice, and strength echoed domestic campaign themes, reinforcing a long-standing narrative of decisive action against perceived adversaries. In doing so, it blurred the line between international law enforcement and unilateral coercion.

International law and the arrest of a sitting Head of State

At the core of the controversy lies a well-established principle of international law: immunity ratione personae (personal immunity while in office). Sitting heads of state enjoy absolute immunity from arrest and prosecution by foreign national courts while in office. This immunity is functional rather than personal, designed to uphold sovereign equality and ensure the orderly conduct of international relations.

The International Court of Justice, in its 2002 Arrest Warrant judgment, affirmed that even allegations of serious international crimes do not nullify such immunity before domestic courts of another state. The only recognised exception arises in proceedings before competent international tribunals.

The International Criminal Court may issue arrest warrants against sitting leaders for genocide, crimes against humanity, or war crimes, but only within the strict confines of its jurisdiction and subject to state cooperation. Venezuela is not a party to the Rome Statute, and no ICC warrant existed against Maduro at the time of Trump’s announcement.

In this context, a unilateral declaration of arrest by a foreign leader lacks standing under international law. Without Security Council authorisation or an international judicial mandate, such action sits uneasily with the UN Charter’s prohibition on the use of force.

Why Maduro? Selective accountability and strategic interests

The allegations against Maduro-ranging from narcotics trafficking to human rights abuses-are not new. The United States has pursued domestic indictments and imposed extensive sanctions on Venezuela’s leadership for years. However, domestic legal processes do not confer international enforcement authority.

The decision to act against Maduro must therefore be understood not only through a legal lens but also a geopolitical one. Venezuela’s strategic location, vast oil reserves, and long-standing defiance of U.S. influence have made it a persistent target of pressure. The framing of military action as law enforcement reflects a broader trend in which legal language is used to legitimise strategic objectives.

This selectivity has consequences. When accountability appears to be pursued primarily against adversaries, rather than through consistent multilateral processes, it undermines confidence in international justice.

Global reactions: A fractured international response

The international response to Trump’s announcement has been sharply divided, exposing deep fissures in global attitudes toward sovereignty and intervention.

China condemned the action as a violation of Venezuela’s sovereignty and international law, warning that unilateral military interventions threaten global stability. Russia described the move as armed aggression and called for urgent deliberation at the UN Security Council.

The European Union expressed deep concern, urging restraint and emphasising that any resolution of Venezuela’s crisis must be grounded in diplomacy and respect for the UN Charter. The United Kingdom distanced itself from the operation, stressing that it was not involved and reaffirming the primacy of international legal norms.

India, reflecting its long-standing emphasis on sovereignty and non-intervention, called for de-escalation, protection of civilians, and resolution through dialogue. Across Latin America, reactions ranged from outright condemnation to cautious endorsement, underscoring regional divisions.

The United Nations and the question of precedent

The United Nations Secretary-General António Guterres warned that the action set a ‘dangerous precedent,’ reiterating that the use of force is permissible only in self-defence or with Security Council authorisation. Calls for an emergency Security Council meeting reflected widespread unease that unilateral enforcement actions risk eroding the foundations of international order.

The UN’s response highlighted a central dilemma: accountability is essential, but it must be pursued through institutions that command legitimacy across regions and power blocs. When states bypass those institutions, the authority of international law itself is weakened.

Comparative cases: Putin and Netanyahu

The Maduro episode gains sharper clarity when viewed alongside other contemporary cases.

In 2023, the ICC issued an arrest warrant for Russian President Vladimir Putin over alleged war crimes in Ukraine. While legally significant, the warrant has had limited practical effect due to Russia’s geopolitical weight and non-membership in the ICC. Law exists, but enforcement remains constrained by power.

Similarly, debates surrounding potential ICC scrutiny of Israeli leaders, including Prime Minister Benjamin Netanyahu, have exposed discomfort among Western states when legal accountability approaches their allies. These contrasting reactions reinforce perceptions of selective justice, particularly in the Global South.

Universal jurisdiction and the Sri Lankan experience

Sri Lanka has, at various times, seen individual former officials become the subject of attempted legal actions or civil complaints in foreign jurisdictions invoking universal jurisdiction, particularly in parts of Europe and the United States-though none have resulted in criminal convictions. These episodes, which included preliminary inquiries, arrest applications, and civil liability suits, were ultimately constrained by diplomatic immunity, prosecutorial discretion, or jurisdictional limits.

Nevertheless, they triggered intense domestic debate over sovereignty, legal asymmetry, and the perceived selectivity with which international justice mechanisms are applied to states outside major power blocs. If powerful countries can wield their military might while simultaneously claiming legal mandates, the spectre of legal overreach looms larger for all-making the protection of multilateral legal norms all the more urgent for countries like Sri Lanka, which depend on predictable rules rather than discretionary power for their security and international standing.

From rules to power: Implications for the global order

The Trump-Maduro episode illustrates a broader drift from rules-based multilateralism toward power-centred unilateralism. When arrest rhetoric replaces judicial process and forces substitutes for consensus, international law risks becoming a language of convenience rather than a binding framework.

For small and middle powers, this shift is particularly unsettling. International law, however imperfect, provides predictability and restraint. Its erosion leaves weaker states more vulnerable to coercion and

instability.

Conclusion: Accountability without anarchy

The issue at stake is not whether leaders accused of grave crimes should be held accountable-they should. The real question is how that accountability is pursued. Justice that bypasses multilateral processes may deliver short-term political satisfaction, but it weakens the very legal order needed to sustain long-term global stability.

If arrest warrants become political instruments rather than legal outcomes, the world risks sliding from an imperfect rules-based system into one governed by raw power. For the Global South, and for countries like Sri Lanka, that is a future worth resisting.

(The author is a Retired Ambassador)

References

International Court of Justice, Arrest Warrant of 11 April 2000 (Democratic Republic of the Congo v. Belgium), Judgment, 14 February 2002.

United Nations Charter, Article 2(4); Statement by UN Secretary-General António Guterres on Venezuela, January 2026.

Rome Statute of the International Criminal Court, 1998.

International Criminal Court, Situation in Ukraine, Arrest Warrant against Vladimir Putin, 2023.

Amnesty International, Universal Jurisdiction: The Duty of States to Enact and Implement Legislation (London: Amnesty International, 2001).

Healthguard Distribution, the fully-fledged pharmacy distribution arm of Sunshine Holdings PLC, recently obtained both the ISO 9001:2015 and Good Distribution Practices (GDP) certifications for all seven of its regional distribution centers across Sri Lanka.

These certifications, awarded by Bureau Veritas Sri Lanka, is a testament to Healthguard Distribution’s unwavering commitment to the quality management standards across its importation, warehousing, and distribution operations.

ISO 9001:2015, granted by the United Kingdom Accreditation Service (UKAS), is a globally recognised quality management standard developed and published by the International Organisation for Standardisation (ISO). The certification provides a model for companies of all types and sizes to use in building an effective quality management system.

Additionally, the GDP certificate symbolises Healthguard Distribution’s dedication to upholding quality standards in the pharmaceuticals supply chain. Bureau Veritas Lanka, accredited by the United Kingdom Accreditation Services (UKAS), has closely assessed and verified Healthguard Distribution’s processes, infrastructure, and practices to ensure compliance with industry best practices and regulatory requirements.

Healthguard Distribution CEO Shantha Bandara said: ‘Achieving ISO 9001:2015 and GDP certification across all our regional centers is a testament to our dedication to quality, safety, and customer satisfaction. These global accreditations reinforce our mission to deliver pharmaceutical products that meet the highest global standards while maintaining integrity and trust throughout the distribution process.’

The Integrated Quality Management System implemented by Healthguard Distriution ensures that its operations are customer-focused, meeting all client requirements as well as national and international statutory and regulatory standards. It also guarantees that pharmaceutical handling is conducted safely and in alignment with World Health Organisation (WHO) Good Distribution Practices guidelines, ensuring quality and compliance at every stage of the supply chain.

This achievement also underscores Healthguard Distribution’s commitment to the safety, efficacy, and integrity of every pharmaceutical product it handles. The company’s unwavering focus on quality management ensures that pharmaceuticals are stored and distributed with the utmost care, maintaining their potency and safeguarding patient well-being.

Leveraging on the strength of its diversified parent company, Sunshine Holdings, Healthguard Distribution is the first Distribution-as-a-Service (DaaS) pharmaceutical model to be rolled out by a Sri Lankan healthcare company. It serves as a regulatory-compliant island-wide distributor for all health and wellness products, meeting the requirements of relevant regulatory authorities and pharmaceutical manufacturers. The company provides a service that would eliminate complexity and help pharmaceutical and consumer brand companies focus on their core competence, thus ensuring the industry’s overall prosperity.

Looking ahead, Healthguard Distribution said it remains focused on expanding its sales and distribution capabilities and looks forward to partnering with both local and international pharmaceutical companies. With its extended capacities, island-wide reach, and enhanced service levels, the company is well positioned to support manufacturers seeking a reliable, compliant, and scalable distribution partner in Sri Lanka.

As we welcome the New Year, The Management Club conveys its heartfelt wishes to our members, their families, sponsor organizations, and the public. May the year ahead bring good health, renewed optimism, and continued success. We look forward to strengthening leadership, collaboration, and positive impact together in the year ahead. Wishing you a prosperous and fulfilling New Year.

Nature seems to be at war with a market-driven investment pattern slowly decaying the means of survival for the masses. In many ways, this ecological pushback expressed through Cyclone Ditwah, mirrors the 2022 people’s uprising, which sought to overthrow an entrenched political establishment. Just as that quest remains incomplete, nature is waging its own campaign against an economy dictated by self-interest. As the climate breaks, more decisive acts of defiance from the natural world appear inevitable, mirroring the political and economic struggles that lie ahead for the masses.

The scale of devastation to crops

The immediate scale of this conflict is now finally clear. Initial estimates from the Food and Agriculture Organisation of the United Nations (FAO UN) following the Cyclone Ditwah, combined with ongoing monsoon rains, paint a harrowing picture. Over 1,200 landslides have been triggered in the hills while severe flooding in the low-lying areas affecting over 10% of the total population.

The National Building Research Organisation reports that 30% of Sri Lanka’s total land mass -home for 34% of the population- is under the risk of landslides. Flood waters have submerged 20% of the total land mass of the country, destroying roughly 380,000 acres of cultivated land. Out of this, 330,000 acres were paddy lands accounting for 86% of the destruction (FAO UN). Depending on the degree of destruction the machine rents may also rise in the absence of state intervention to restore the supply. International Food Policy Research Institute finds that 32.8% of households experience moderate to severe food insecurity while this figure is as high as 54.5% in the estates by November 2025, even before the cyclone’s devastation. Given that agricultural losses directly threaten food availability, inflation, employment and livelihood of millions, Government must prioritise the recovery and restructure of the affected agricultural land and industrial employment creation.

The trap of agricultural overextension

The current state of agriculture in Sri Lanka serves as an important catalyst to climate disasters. The graph below shows the extreme over-extension of agricultural land use in Sri Lanka, particularly since 2004. According to World Bank data, land under agriculture in Sri Lanka has surged from nearly 36% in 2004 to over 48% by 2023, which is significantly higher than the average for low and middle-income countries. This is further reflected by total paddy lands under cultivation increasing to over 700,000 hectares in 2024/25 Maha season from nearly 500,000 in 2004 (Department of Census and Statistics data). It is also important to note that agricultural land only constitutes 29% of the total in high income economies which has been on the decline over the years, indicating that developed capitalist centres have moved away from extensively exploiting the land compared to the periphery. This highlights mainly a dual problem: first, agricultural overextension increases the severity and vulnerability of average Sri Lankans to climate disasters. Secondly, a serious lack of qualitatively acceptable employment in the non-agricultural sector, is forcing people more and more to retreat into land-based incomes despite its many dangers and threats as the only means of survival, which in turn accelerates environmental destruction. This overreliance on land, ironically, has now become a serious threat to long-term survival.

By adopting Direct Seeded Rice (DSR) using small-scale machinery, which drills seeds directly into the soil rather than using traditional broadcasting or transplanting, farmers have reduced the water consumption by 15% to 20%, reduce methane emissions, and simultaneously freeing labour from the cultivation process. The Punjab government, for instance, actively plans to expand this technique to cover 700,000 acres across the state. Furthermore, paddy farmers in India use small-scale weeding machines instead of weedicides, made possible by the DSR method

Source: World Bank data

Sri Lanka urgently needs to uncover ways of reducing its landmass and workforce under agriculture, without stoking inflation, a drop in food availability and foreign reserves, while at the same time generating qualitatively acceptable employment outside agriculture. If we fail to do so, the requirement for emergency assistance and reconstruction due to climate disasters will become a permanent feature, given the high possibility of such future disasters.

Restructuring of Sri Lanka’s paddy economy is a significant priority in addressing environmental destruction and economic development. Given that over 86% of the cyclone-related damage to cultivated land is concentrated within paddy sector, the Government must establish ways of restructuring the paddy economy within the parameters set above.

The need to raise national savings through state control

It is critical to keep in mind the vulnerability of the external sector. Despite the sharp increase in labour remittances and moderate rise in exports, foreign reserves declined particularly in November 2025 to $6,090 million. This compromise makes a large-scale agricultural and industrial transformation difficult, without increasing national savings through restricting luxury imports, particularly personal vehicles, and reducing the foreign debt burden through creditor renegotiation, a strategy advocated by a group of 121 eminent economists, including Joseph Stiglitz, Jayati Gosh and Thomas Piketty. Rather than relying on luxury import taxes that deplete reserves to generate revenue, these savings should be channelled into a dedicated Treasury foreign exchange account through Central Bank (CBSL) market purchases. CBSL balance sheet should be integrated with this special account, preventing its liabilities outstripping assets. This can secure the capital required to launch a transformation in agriculture and industry that this discussion seeks to address.

Use of agrochemicals and yield

Two interconnected issues are crucial when understanding the structure of paddy agriculture in Sri Lanka and its overextension. Firstly, Sri Lanka’s agriculture as a whole is using over 50% more fertiliser per acre compared to India while yielding less per acre. The average fertiliser use in India and high-income economies is approximately 210kg and 114kg per hectare respectively, while Sri Lanka surged to nearly 300kg/hectare by 2020 from nearly 150kg/hectare in 1980 (see graph below). This massive increase in chemical input has not translated into better yields. Since 1980, while fertiliser use per hectare surged 100%, aggregate cereal yields shown by the FAO UN increased significantly less from 3 to 3.8 tons per hectare (see graphs below). This coupled with the rise in the share of total land under agriculture emphasised earlier shows that Sri Lankan farmers were moving into less fertile, marginal lands -areas that require more chemicals just to maintain baseline yields.

Source: World Bank data (XD – high income economies)

Source: World Bank data The same pattern holds for pesticides. Sri Lanka uses 1.08kg/acre compared to India’s 0.24kg/acre, which is well over four times (see graph below). This environmentally and biologically hazardous level of chemicals application likely contributes to the high prevalence of Chronic Kidney Disease of Unknown Etiology (CKDu) among Sri Lankan farmers, while per hectare yield of cereals and paddy remains low compared to India’s approximately six to seven tons per hectare in some high yielding paddy lands. It is important to note that aggregate data for cereal yields may not fully reflect India’s higher paddy yields due to the aggregation effect with other, low-yielding grains. In spite of the low fertiliser use in India the incidence of CKDu among farmers has been on the rise recently while remaining below Sri Lanka’s percentage. The significant increase in the application of fertiliser since 2000 could potentially explain this trend. Source: FAO UN

Hazardous application of agrochemicals hand in hand with lower yields escalate unit production cost and the cost of food of the domestic workforce in the absence of cheaper food imports from the region. Sri Lanka in this context needs to release at least 20% of its paddy land (around 350,000 acres) -specifically the low-yielding, flood-prone areas encroached upon in recent decades- without a serious drop in output and transition the workforce into higher-quality non-agrarian employment.

Historical misconceptions and soil realities

This issue of higher agrochemicals application in Sri Lanka, insufficient yields and the resulting higher food costs is further compounded by the unfavourable climatic and soil conditions in the North Central Province (NCP) which supplies nearly 40% of country’s paddy output. As the late Dr S. B. D. De Silva often noted, unlike in the riverbeds of India or Bangladesh where paddy cultivation is carried out which are naturally replenished by slow overflowing rivers, Sri Lanka’s dry zone lands are subjected to flash floods and torrential monsoonal rains preceded by long spells of scorching dry weather, which tend to leach out the nutrients of the less cohesive soil. Reiterating this position, R. L. Brohier, Chairman of the Gal Oya Development Board, in 1941 noted that ‘[NCP] receives from 50 to 75 inches of rain during the year, but, instead of being distributed, the great bulk of it falls during the periodicity of one monsoon. Long and severe droughts are by no means unknown. No combination of physical conditions could have offered greater natural disadvantages for irrigation’ (History of Irrigation and Agricultural Colonization in Ceylon, 1941).

Sri Lanka urgently needs to uncover ways of reducing its landmass and workforce under agriculture, without stoking inflation, a drop in food availability and foreign reserves, while at the same time generating qualitatively acceptable employment outside agriculture. If we fail to do so, the requirement for emergency assistance and reconstruction due to climate disasters will become a permanent feature, given the high possibility of such future disasters

Following the 1935 soil chemistry findings of the Thopawewa and Parakarama Samudra Development Scheme, Brohier warned that the dry zone soil structure is not entirely suited to carry out large-scale resettlements centred on paddy cultivation. He noted that the ‘luxuriant tropical forest’ of the dry zone was a mirage of fertility caused by perennial plant foliage, and not by the soil itself. This vibrant plant growth in the uninhibited land in the dry zone misled the ancient settlers to believe that the soil itself was fertile. Once cleared for seasonal paddy, the soil exposed its inherent deficiencies. Historically, this weakness may have likely left the civilisation vulnerable to invasions due to the difficulty of sustaining a large standing army on a fragile food base. Brohier noted this paradox: ‘the growth of the trees led one to infer that the soil should surely be the richest, the analysis disclosed quite the reverse. in these circumstances, the soil reconnaissance of the Topawewa and the Parakrama Samudra Scheme confirms, and the report emphasizes, that in the event of the secondary soil [lower grade soil] being developed in paddy, it will follow that crop yields must necessarily be poor. Apparently the soil composition in these areas is more congenial for growing fruit trees such as coconut or citrus’. Emphasising the comparative disadvantage in the soil structure of the NCP he further states that ‘the secondary paddy soil in the Topawewa area from the same comparative standard can be placed only in the third class of Malayan paddy soil’ (page 46-47). The market mechanism and the ambitions of the political elites failed to account for these geological disadvantages, incentivising an expansion of paddy farming that now threatens both the national economy and the environment.

Some lessons from Indian agriculture: small-scale mechanisation and new techniques

Secondly, the seasonality of agriculture and its intricate relationship with the broader environment do not warrant the simplistic market led determination of its flow of resources based on individual profitability. The lower application of agrochemicals specifically in India’s paddy agriculture is an ongoing process, orchestrated by the Indian state Governments, and is not an outcome of free interaction of market forces. By adopting Direct Seeded Rice (DSR) using small-scale machinery, which drills seeds directly into the soil rather than using traditional broadcasting or transplanting, farmers have reduced the water consumption by 15% to 20%, reduce methane emissions, and simultaneously freeing labour from the cultivation process. The Punjab Government, for instance, actively plans to expand this technique to cover 700,000 acres across the state. Furthermore, paddy farmers in India use small-scale weeding machines instead of weedicides, made possible by the DSR method. Unlike the broadcasting method predominantly practiced in Sri Lanka, the use of a seed driller ensures uniform spacing between the rice plants. This allows greater sunlight absorption, which enhances the yields and reduce the duration required for the crops to mature. Additionally, this uniform spacing between the plants facilitates mechanical weeding, a process that uproots weeds and integrates them back into the earth, thereby converting them into organic matter.

These streamlined techniques hand in hand with alternate wet dry method of water use (which is now promoted by UNDP in Sri Lanka) have contributed to the increase in India’s paddy yield. This shift effectively converts working capital previously spent on agrochemicals, water and labour (wages), into fixed capital in the form of small machinery. Consequently, Indian farmers have successfully replaced the use of agrochemicals with a combination of mechanical tools and a more sophisticated understanding of cultivation and environmental factors. This structural shift reduces the production costs and the cost of food for the non-agricultural workforce. Simultaneously, the labour freed by introducing new machinery into agriculture is reabsorbed within the industrial sector.

This is an effective mechanism in reducing the marginal paddy lands by 20% without critically reducing the output, stoking inflation or increasing unemployment. To support this transition, compensation must be provided for farmers who will relinquish their less fertile marginal lands for reforestation. Another possible option would be to reduce or eliminate seafood exports to prioritise domestic consumption. This will reduce the nation’s dependence on staple grains while increasing the nutrition profile of the general population and reducing agricultural land. If Sri Lanka fails to adopt such State-led restructuring, the need for emergency assistance due to environmental disasters will become a permanent agonising feature of the national economy.

Export Development Board (EDB) Chairman Mangala Wijesinghe said Sri Lanka is projecting total export earnings of $ 20 billion in 2026, reflecting a year-on-year (YoY) growth of 10%, whilst expressing confidence in the country’s steady recovery and medium-term export expansion strategy.

‘Merchandise exports are forecast to exceed $ 15.7 billion in 2026, while services exports are expected to rise to $ 4.3 billion, supported by growth in key sectors and improving global demand conditions,’ he told the Daily FT.

The 2026 forecasts form part of a broader five-year roadmap aimed at strengthening Sri Lanka’s export competitiveness and diversifying its earnings base.

According to Wijesinghe, the projections are aligned with the national objective of increasing total export earnings to $ 36 billion by 2030, comprising $ 25 billion from merchandise exports and $ 11 billion from services exports.

He said this strategy is focused on scaling up value-added exports, improving market access, and strengthening services-led growth alongside traditional goods exports.

Commenting on near-term performance, Wijesinghe said Sri Lanka has already achieved 87% of its annual export target of $ 18.2 billion for 2025 within the first 11 months of the year. Export earnings from goods and services reached $ 15.77 billion during the January-November period, registering a 5.8% YoY growth and underscoring a consistent upward trend in export performance.

Merchandise exports showed particularly strong momentum, with total earnings amounting to $ 12.41 billion during the first 11 months of 2025, reflecting a robust 6.41% YoY increase. This growth was driven by improved performance in several key export categories despite ongoing global economic uncertainties.

Services exports also recorded positive growth, with cumulative earnings rising by 3.62% YoY to reach $ 3.35 billion during the January-November period.

Wijesinghe also noted that the continued expansion of services exports remains a critical pillar of Sri Lanka’s long-term export strategy, especially in areas such as ICT, logistics, and tourism-related services.

He said the strong performance in 2025 and the ambitious targets set for 2026 reflect growing confidence in Sri Lanka’s export sector, while adding the need for sustained policy support, market diversification, and private sector engagement to achieve the $ 36 billion export goal by the end of the decade.

Electronic card-based fare payments were introduced on Sri Lanka Transport Board (SLTB) buses yesterday, marking another step in the Government’s broader digitalisation drive within public transport.

The system was launched at the Makumbura Multimodal Centre (MMC) in Kottawa, with the initiative implemented under the direction of the Transport, Highways and Urban Development Ministry, in coordination with the Digital Economy Ministry. SLTB Chairman Sajeewa Kanakaratne was present at the launch.

Under the new arrangement, passengers are able to settle bus fares using electronic cards at no additional cost, ensuring that only the approved fare is charged. Authorities say the system is intended to make fare payments more convenient while reducing reliance on cash transactions.

The card payment facility will initially be available on selected routes, including Makumbura-Galle and Makumbura-Embilipitiya. Officials said the pilot phase will be reviewed, with further refinements planned based on operational feedback before wider rollout.

The Sports Ministry yesterday issued the following clarification over the situation that has arisen concerning the use of the Sugathadasa Stadium for a musical concert.

‘The outdoor stadium was agreed to be provided for a musical concert scheduled to be held on 28 December. The current running track at the Sugathadasa Stadium is in a dilapidated condition, making it unsuitable for athletic competitions. Consequently, the process of calling for tenders to remove the existing track and reconstruct a new one has already commenced.

Due to the presence of potholes and significant wear, the track is currently not utilised for any sporting events. Since the stadium will remain inactive for sports during the upcoming reconstruction period, the management authority agreed to lease the premises for the concert subject to relevant charges.

The responsibility for the event lies with the organisers. Furthermore, the concert will not cause any additional significant damage to the track, as the current surface is already slated for complete removal.

We strongly condemn the distorted statements made by certain individuals and the unethical, false reporting by some media outlets that portray this event as a major blow to sports and the stadium infrastructure.’

Oil prices recorded their steepest annual decline since the COVID-19 pandemic in 2025, with markets facing continued pressure from excess supply as producers pump more crude than the global economy requires.

Crude prices fell by nearly 20% over the year, marking the largest annual drop since 2020 and the first instance of three consecutive years of yearly declines for the oil market.

The persistent weakness came despite ongoing geopolitical tensions in key energy-producing regions, as analysts pointed to a heavily oversupplied market overwhelming any risk premium.

Oil posts…

Prices slipped below $ 60 a barrel for the first time in almost five years last month, as expectations grew around a potential Russia-Ukraine peace agreement, which could add to global supply if Western sanctions on Russian exports are eased.

The International Energy Agency forecasts that oil supply will exceed demand by about 3.8 million barrels per day this year, even after OPEC decided recently to postpone any production increases until after the first quarter.

OPEC typically seeks to manage output to keep prices within a ‘Goldilocks’ range-high enough to sustain producer revenues, but not so elevated that consumers shift more rapidly to alternatives such as electric vehicles and heat pumps.

Brent crude settled at $ 60.85 a barrel on the final trading day of 2025, down sharply from nearly $ 74 at the end of 2024. US crude also slid around 20% over the year, closing at $ 57.42 on Wednesday, compared with about $ 74 a year earlier.