BIA Customs nabs three Sri Lankans with 2,000 mobile phones

 Tuesday, December 19, 2017

The Bandaranaike International Airport (BIA) Customs nabbed three Sri Lankans who attempted to smuggle in 2,000 mobile phones, today.

These phones were smuggled in from China and Dubai, without prior approval from the Telecommunication Regulatory Commission.

The nabbed mobile phones are estimated to be worth Rs. 600,000.

Further investigations are underway.

How Rajapaksaism destroyed the SLFP

“The first method for estimating the intelligence of a ruler is to look at the men he has around him.”
~Nicco Machiavelli-

There was no Machiavellian nuanced statecraft. There was no Dudley Senanayakian transparency and honesty. There was no Jayewardenesque stoicism. There was not even lofty but empty rhetoric of the likes of SWRD Bandaranaike. There was no veiled brilliance of a shrewd leader; only undisguised greed for power and unremarkable exercise of it was visible and this unkind spectacle was being witnessed by a wretched citizenry of a nation tired of waiting for the manifestation of a messiah.

2017-12-20

The withering values of a community loosely bonded by the harsh and hostile powers of the British Raj and controlled by the alien Administrative and Financial Regulations (AR and FR) of Westminster rules guarded by the ‘Establishment Code’ of the same civil service, could not withstand the onslaught of an expanding culture that descended upon the unsophisticated majority. It is intellectually dishonest to classify this culture as novel or fresh; it has been there encompassing the collective body of Sri Lankans ever since Independence, yet its development as a dynamic social force was not all that visible and noticeable. Its accelerated alacrity, its concealed state of decay, its eager sense of being identified and categorized as the norm and not an exception and its eventual capture of the collective psyche of the general masses were all conducive to a society that is maddeningly oblivious of and insistent on self-mortification. 

With each passing year since the dawn of the 21st Century, Rajapaksaism that was the culture and ideology of the day kept brainwashing the trusting masses on their ideology, strangely estranged from the broadcast Bandaranaike policies of serving the interests of the ‘common man’. Bandaranaike’s SLFP was a unique political concoction, drawing its strength as well as weakness from the five pillars (Pancha Maha Balavégaya) upon which it was founded.

Its core-best was essentially made up of the Sinhalese-Buddhist elite in the backward areas of the country and the enormous appeal it had was translated by this Sinhalese elite as a political party determined to right the wrongs done by the successive colonial rulers, Portuguese, Dutch and the British, unto the majority Sinhalese-Buddhists in the country. This approach adopted by the rank and file of the SLFP paved the way for a new positive awakening amongst the majority on the one hand and an irreversible radicalization of the response by the Sinhalese-Buddhists in the rural regions to the English-speaking Sinhalese in Colombo and other big cities such as Jaffna, Kandy, Galle and Kurunegala. 

Consequently, ugly and unquestionable signs of polarization of a nation were showing their obnoxious countenances everywhere. An immeasurable dynamic of national divisions along ethnic streaks began taking over the average mindset of man who, a century ago knew no such visible partisanships whatsoever. The division between the Northern Tamils and Southern Sinhalese remained a subject of discussion, especially among the foreign-educated; various solutions and resolutions proposed and rejected among which were federalism, Tamil homeland, district councils, 50-50 demands and devolution of political and administrative powers were discussed and intense debates performed in English language by these very same Pukka Sahibs whose knowledge and empathetic feel were next to nothing.
 
Into such a vacuum of political thought and action entered a Sinhalese-Buddhist nationalistic streak that was more based on ethnic hatred and social envy. Introduction of Sinhala-stream education is indeed a highly commendable feat. Yet the negligence and oversight of its long-term ill-effects, its drastic measures of disregard of English as a tool of the upper-class of the land coupled with the haste with which the whole policy was put into action deprived the ‘children of the ’56 revolution’ of opportunities that were available to their preceding generations. Unavailability of facilities in the distant schools in Ceylon for English education contributed heavily towards the gulf between the city and rural students in the country to be further widened.
 
The Sri Lanka Freedom Party which began this revolution was not ready to handle this worsening situation and the eventual demise of its founding leader at the hands of a Buddhist monk personified the cruel irony of his ‘Swabhasha’ policy. Yet, SWRD could never be blamed for financial corruption or nepotism. In the three short years when he ruled the country, there was no identifiable relative of his occupying the seats of power; neither his wife, children, though they were relatively young, or any blood relative of Bandaranaike was dictating to government officials what or what not to do. But his departure spelled another kind of departure from the party, SLFP. When Sirimavo Bandaranaike became the leader of the party, the political dynamic changed, never to go back to a non-nepotism political entity.
Various cliques were found to be forming among the relatives of Sirimavo Bandaranaike. There was the Anura-clique, Sunethra-clique, Chandrika-clique, Felix-clique, Mackie Ratwatte-clique etc. Each of these cliques had its loyalties to its specific leader, yet when taken as a whole the collective loyalty was to the Party. Formation and development of a modern political party into one that is essentially and fundamentally a ‘family-oriented’ political body began in earnest. What MR inherited was this political party. 

The rank and file of the SLFP was so fed and nourished ever since the departure of its founder SWRD Bandaranaike in 1959 right up to 2005, on a regular dose of family-bandyism, they never saw a world without family rule. Its party hierarchy may have been reflecting a structure that was manned and womanned by non-family members, yet when in power, that power always revolved around the family and as a result the leadership was never ever available to the so-called ‘common man’ under whose name it came to power. The cliques were different but their collective subservience was to the family-collective. MR fitted into this convoluted mindset of the party and its rigid physical structure like a well-greased palm into a surgeon’s glove. 

The same parade of family members of the ruling leader continued in a more blatant and brazen fashion. Cliques began their gradual formation: Basil-clique, Shiranthi-clique, Gotabhaya-clique, Namal-clique, Chamal-clique, Yoshitha-clique and Rohitha-clique ruled the day. And the rank and file unashamedly accepted this tragi-comic spectacle. The same principle applied and the same principle was enthusiastically propagated. One after another, the loyal clique members paid their puja to their respective masters. But there was a marked difference between this exhibition of loyalty and one displayed before the Rajapaksas stumbled upon the treasures of the SLFP leadership. The Bandaranaikes played the same game with some finesse. The Rajapaksas, in the slang of the common man, were ‘yakkos’. 

Maithripala Sirisena is an anomaly. The political party that seemed to have lost its way among the members of this family or that family all of a sudden had to be loyal to its new leader who could boast of no family hegemony. But the Rajapaksas who were expelled from power at the elections could not come to terms with this non-family-dominance of their party. A significant part of the rank and file too seems to have found the new leader ‘unworthy’ of their veneration. The current conflict in the SLFP is essentially that, the absence of room for cliques to be formed and developed so that several, instead of one, route to the leader are available. 

• Expulsion of the Rajapaksas at the elections in 2015 did not seem enough for the Rajapaksas
• SLFP paved the way for a new positive awakening amongst the majority

The UNP on the other hand, with all its other weaknesses, could stand aloof of this self-destructive mechanism called nepotism. The one and only instance was when DS Senanayake, the founder of the UNP, had the intention of handing the party leadership to his son Dudley. But to the credit of Dudley Senanayake, he in turn did not seek any indulgences in nepotism and nor could any fair-mended person question his qualifications or credentials for the job. Corruption and nepotism were far from Dudley’s mind. 

The expulsion of the Rajapaksas at the elections in 2015 did not seem enough for the Rajapaksas. A misplaced and strong sense of ownership, not of the party, but of the country, seems to be their overpowering sentiment; an uncommon sense of avariciousness, accumulation of wealth and other comforts at the expense of the common good of the common man totally consumed them and the unjust and utterly ruthless manner in which they treated the then Commander of the Army and Chief Justice stand out as mindless exercise of power when they held that power. 

But the tragedy lies elsewhere. It resides in the fact that there are a sizeable number of gullible morons who still hang on to these brokers of greed and power hunger. Their support for these politicos who are a vile example of power-seekers has buttressed them to form a new party. The challenge before the SLFP leader whom also happens to be the President of the country, the man who had the daring to oust MR from power is to cleanse the party he seems to love so much. Or perhaps, it might be too late now. 

The writer can be contacted at vishwamithra1984@gmail.com

Doing business in Sri Lanka 2017

Wednesday, 20 December 2017

The other day I was at the Daily FT-Interbrand awards 2017 presentation and global expert from Holland was explaining how a country brand can be calculated and if the brand is strong then we can attract higher quality tourists, stronger FDI and find more attractive export markets.

After three years of a progressive government at play on all fronts, Sri Lanka has slipped. On tourist arrivals an all-time low of 0.2% growth was registered last month (November) with cumulative arrivals at a low ebb of 2.5%. Exports have declined from $11.3 billion to $10.5b whilst on FDIs Sri Lanka has been able to attract $ 0.6 billion from a $1 billion performance.

In simple words Sri Lanka’s performance is a disaster. Brand value has plummeted to register 5% growth to $78 billion when the country was at a 25-35% performance in the last six years.

Consumption drops to -3.6%

On the household end Sri Lanka has been on a bumpy road in 2017 with overall consumer consumption dropping for three quarters in a row between 2-4% and the latest insight been Q3 GDP tapering down to 3.3% as per the global research company Nielsen which does not augur well for an economy driven on a private sector agenda.

The mainly reason for the declining consumption is the steep escalation of prices. As the per Sri Lanka Consumer Price Index, in the graph we see in the last 11 months Sri Lanka has lost its grip on the cost structures and from an index point of 114 in January 2017, we have moved up to a 123.4 performance which explains the behaviour change at the consumer end.

GDP at 3.4% and price index 122.4

In the backdrop of the country losing its grip on inflation management, one option to ensure the typical lifestyle of an average Sri Lankan is maintained is by driving up income. But what we see is that there no quantum increase on GDP with Sri Lanka performance decline quarterly from 4% to a Q3 performance of 3.4%. The listed company performance on revenue has dropped by 2% which mirrors the poor macroeconomic indicators.

What is dangerous in this situation is that for a small economy like Sri Lanka which is around 80 billion dollars, if we do not grow by at least 6%, a typical consumer will not feel it. At the up and coming elections on 10 February will be interesting to see the people’s reaction as some politicians in the Government are highly critical on their own performance in the last three years.

The performance is compounded by the Central Bank bond scam where almost 10-15 Parliamentarians have been involved directly or indirectly, resulting in the Finance Minister and Central Bank Governor exiting the system, which has never happened in the history of Sri Lanka or for that matter in South Asia.

Neighbouring country India is registering GDP growth of 6-8% and estimating to average at 7.2% by end year whilst Bangladesh’s GDP growth is estimated to be 6.8% for 2017. Pakistan which is on an IMF program will touch a commanding 5.7% which intimates the aggressiveness of the South Asian economy and the reforms driving competitiveness.

Doing business in Sri Lanka 

In the above macroeconomic backdrop if we examine Sri Lanka’s doing business performance given that almost 75% of Sri Lanka’s GDP is generated by the private sector, the environment is not healthy.

Even though Sri Lanka has the highest number of politicians to direct the country with a bloated public sector, we see the overall doing business indicators once again at crossroads with inefficient Government bureaucracy becoming the key challenge in doing business.

We could have accepted this situation before 2015 but with the progressive Government that was voted in, we expected a stronger performance on policy but sadly this has not happened. If one does a deep dive we see that corruption yet looming high, defeating the very purpose for which this Government was voted in. It’s a very sad situation for Sri Lanka as we had a chance to make a difference on 8 January but as mentioned by the President, not even three months into the era the biggest fraud in this country was hatched and executed to near perfection but now as the private sector terms it, ‘the excreta has hit the fan’. It’s all over!

Private sector – 10 pick-ups 

In the above macro environment we see Sri Lanka’s private sector having to keep the fires burning just like war times. Their buzzword is ‘resilience’. When I decided to study for my doctorate way back in 2007, I decided to observe the country at national level economic policy, exports, tourism and retail trade and my single-minded research area was ‘how much can Sri Lanka’s private sector be resilient?’

Even once I graduated and went back to the private sector in 2017, I have not found the answer ‘when will the private sector snap?’ I guess a respected professional like Dr. Indrajit Coomaraswamy might have a better insight to this question. All I know is that as mentioned before the listed company revenue is at -2% in the last quarter and companies have started putting their shutters up on R&D and expansion ventures. Let me highlight 10 key pick-ups of the private sector in 2017.

1) Close to customers but stalk competitors

FMCG companies that are on track on numbers are companies which invested on consumer research so that behavioural nuances were identified whilst stalking competitors to grab market share. We saw the launch of smaller packs as consumption contracted, and aggressive discounting on price whilst regional brands sprouted across the country.

 2) Sensitive to change and ready to transform

Companies that operated in the leisure industry had to change strategy given the downturn in the traditional markets like China and moved to breakeven strategies whilst cutting costs. Some have even pondered salary cuts at the management level whilst others have taken decisions to divest their leisure portfolio. A new strategy seen by the large players is the movement to boutique tourism which is a drastic reform process away from the DNA grain that the companies possess.

3) Guarding your name and clear on who you are

Professionals who decided to serve the Government on the promise of Yahapalanaya when having to deal with challenges on implication moved out of the system and resorted to guarding the name and building one’s own identity. In fact many moved back to the private sector and focused on their grail that made them successful totally away from policy. There have been many invitations to the private sector people to be ambassadors in attractive markets and chairmen of key public sector entities but people have stayed clear. This is very unfortunate for Sri Lanka but it’s the reality we saw in 2017.

4) Customers are diverse, moved to the first

Whilst the typical profile of the target customers remains diverse in Sri Lanka, especially in the housing and real estate market we saw that rather than sticking to strategy, companies moved into grabbing the first customers that came their way. There are instances where traders from the outskirts were accommodated into the lifestyle property brands, just to boost the sales revenue that will help meet the month-end loan payment. So the focus was survival given that Central Bank cautions created a ripple in the market.

5) Good package at a fair price

The outbound tourism sector resorted to fair pricing at good packaging in the Budget. The logics was get critical mass whilst top businessman have queried why Sri Lanka does not attract budget airlines just like Malaysia and Thailand that attract 30-35% segment of business on these lines. Interesting argument when all of us talk of higher ARR visitors.

6) Private sector is available to spread good news

Amazing but true, Sri Lanka has the highest number of conferences, especially education-related conferences, than any other country in South Asia. In fact this supports the ‘Education Hub’ identity. One key trend seen in 2017 is that professionals are always obliged to spread the good news at staged events even when the macro economy is going the other way round.

7) Working closely with the Government

Let’s accept it, the Sri Lanka private sector relies heavily on Government policy for business. Hence the key companies remain very close to the Government at play to protect their business. A key area that emerged on media recently is on the liberalisation of the shipping industry and the backdoor interventions that allegedly took place. I have seen this across industries from apparel, tourism, tea, cinnamon and rubber, where working closely with the policymakers is mandatory.

8) Movement to apps

An interesting insight seen in a depressed market was everyone moved to the service business game using technology like apps. A local operator led the way and registered over 11,000 pick-ups from a suburb of Sri Lanka. In a country where many have two mobile phones with 100% penetration I guess this will be the way forward.

9) Hiring talent from the outskirts

In a country where unemployment is at below 5%, there is no option but having to move to talent hiring from the outskirts. We see it in reality in our own companies we resort to this option and are increasing looking for Bangladesh and Indian labour.

10) Information-driven but

 wisdom at play

Whilst we see that Sri Lanka is totally information-driven given the access to internet, the issue is reliability. Hence whilst there is an information overload, many business decisions are taken in wisdom, which is interesting. I guess when the SME sector is almost 70% of business, we will see this trend in the years to come.

Conclusion

I am going back to the area of focus. How much can the private sector be resilient in a market? When will it break?

(The author can be contacted via rohantha.athukorala1@gmail.com. He is a CEO/President of a global entity and thoughts expressed are strictly personal in nature.)

Daham Affirms ‘Pavulvādaya,’ Enters Politics

December 19 2017 

Daham Sirisena, son of President Maithripala Sirisena, participated in a programme organized by the Youth Front of the Sri Lanka Freedom Party (SLFP) held at the party’s headquarters yesterday (December 18).

The younger Sirisena, who has shown a fascination for the limelight that has led to his presidential father being accused of nepotism and promoting ‘family politics,’ has posted photographs on FB of himself on the stage at the above event.

The Facebook post mentions that the event was held to ‘create awareness about the local government elections.’

Daham Sirisena does not hold any position in the party or in it’s youth wing. However, as an adult, he had every right to join or support any party of his choice and to engage in politics. However, the matter of close relatives of politicians taking up politics was the subject of sharp criticism by the Sirisena camp during the run up to the January 2015 Presidential Election.

It is not clear what Daham Sirisena’s credentials are.

Read More

Begging in Colombo city prohibited from Jan.1st: Champika

2017-12-19

Begging will be prohibited along the roads or in public transport within Colombo city limits with effective from January 1, 2018, Megapolis and Western Development Minister Champika Ranawaka said today.

He said according to a survey conducted by his Ministry in partnership with the Charity Commissioner of the Public Assistance Department of the Colombo Municipal Council and the Social Empowerment and Welfare Ministry around 600 beggars operate within the Colombo city limits.

Minister Ranawaka said considering the inconvenience caused to the public and as a measure of Colombo city beautification, it has been decided to prohibit begging in and around Colombo from January 1st itself.

However he said it is also an intention of the ministry to rehabilitate those beggars from their miserable livelihood, and it had constructed a rehabilitation centre at a cost of Rs. 80 million at Rideegama, Ambalanthota for them.

“We will first deal with those helpless beggars with kindness. However those who doing this as a profession should immediately find other livelihood or we will take stern legal action against the latter using the provisions in the Municipal Council Ordinance,” Minister Ranawaka said.

Further he said the children who were begging would be provided with school education and the helpless and sick would be taken a good care for the rest of their life.

Minister also reminded that there are various categories of beggars in Colombo including drug addicts therefore the initiative would be carried out gradually.

He requested all the beggars to seek the assistance of the Commissioner of the Public Assistance Department at the Colombo Municipal Council if they find any livelihood difficulties and urged to refrain from begging. (Thilanka Kanakarathna)

Sri Lanka: A deathwatch beetle stridulating?

It is incumbent upon all those responsible for guaranteeing the quality of Ceylon tea to put their shoulders to the wheel and doubly ensure that all tea consignments are free from pests. Else, as for Sri Lanka’s struggling tea industry, Russian restrictions might be like a deathwatch beetle’s stridulation or tapping of wings, believed to presage death. Absit omen!

by Prabath Sahabandu- Dec 20, 2017

Dec 20, 2017

( December 20, 2017, Colombo, Sri Lanka Guardian) Beetles seem to be causing serious problems to the incumbent government. The German Beetle, which was expected to come here about three years ago, bringing loads and loads of forex, has let it down badly. (Volkswagen has since come to be dubbed ‘Hoaxwagen’.) Worse, another beetle, a real one at that, is likely to aggravate the country’s foreign exchange woes. A khapra beetle has caused Sri Lanka’s tea supplies to Russia to be restricted, we are told. (Speculation is rife in political circles that Russian action is not entirely due to the detection of the pesky pest in Ceylon tea, and Sri Lanka’s ban on asbestos, which comes from countries such as Russia, has something to do with it. But, we choose to base this comment on the official version of the issue.)

It never rains but it pours! There seems to be no end to Sri Lankan tea growers’ misfortunes. Having undergone serious difficulties and been reduced to near penury due to low prices and a sharp drop in production owing to inclement weather conditions, they are now faced with a double whammy. They are on tenterhooks, expecting news from Moscow and hoping for the best.

President Maithripala Sirisena has swung into action—for once. He seems to have realised the gravity of the situation. Having taken up the issue with Russia he is planning to send a special ministerial delegation to Moscow for talks. His prompt intervention is certainly welcome in that it will go a long way towards convincing Russia and other international buyers of Ceylon tea that Sri Lanka is making a serious effort, at the highest level of government, to tackle the pest problem. A claim being made in some quarters that the nasty, elusive beetle entered the tea consignment from a foreign port won’t help reassure the quality conscious international buyers.

Russia’s concerns about the khapra beetle should be appreciated. For, it is no ordinary pest. Two leading Sri Lankan scientists, in their article we publish, today, explain why the khapra beetle problem should be taken very seriously and action initiated to control it as a national priority. This particular insect, they point out, is ranked among the 100 most destructive invasive insect species in the world. They inform us that the danger of khapra beetle is accompanied by its rapid rate of population increase and high level of quantitative and qualitative loss in the infested stored products. It can survive without food for years, live with low moisture content and undergo adverse environmental conditions in diapauses and are resistant to many insecticides. This shows the magnitude of the problem we are faced with and why Russia is so concerned. All, however, is not lost or, at least, we hope so. The two scientists have suggested remedial measures, which the government had better seriously consider adopting urgently.

Blows that small pests deal to the economy can be really heavy. Rhinoceros beetles as well as various mites have inflicted extensive damage to the coconut industry over the years so much so that the country has had to import coconuts to meet a shortfall in the domestic supply. Many coconut palms have been felled due to the Weligama Coconut Leaf Wilt Disease, which is also caused by a pest. Drought conditions and lack of fertiliser have worsened the situation. The political cost of skyrocketing coconut prices has been enormous; it is bound to have a far worse impact on the government at the upcoming polls than all the coconut dashing by the useless Opposition.

Russia will certainly be fair by Sri Lanka, which, however, has to get its act together. Ensuring the quality of tea is not a task that can be left to the government. President Sirisena has done his part commendably well and a high level investigation is currently underway. He has promised stern action against the tea export company concerned if it is found guilty. Much more, however, remains to be done if disaster is to be averted. It is feared that Russian restrictions might have a domino effect across the world with other countries which import Sri Lankan tea following suit by way of a precautionary measure. This is a frightening proposition. While foreign reserves are rapidly dwindling the country needs a kidney punch to the tea industry, one of the main stays of the economy, like a hole in the head.

It is incumbent upon all those responsible for guaranteeing the quality of Ceylon tea to put their shoulders to the wheel and doubly ensure that all tea consignments are free from pests. Else, as for Sri Lanka’s struggling tea industry, Russian restrictions might be like a deathwatch beetle’s stridulation or tapping of wings, believed to presage death. Absit omen!

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The writer is the editor of The Island, a Colombo based daily newspaper, where this piece first appeared

FACT SHEET: SRI LANKA AND GSP +

19/12/2017

What is GSP +?

GSP+ stands for Generalised Scheme of Preferences Plus. It is part of the EU’s wider GSP regulation, which also includes the standard GSP and Everything But Arms (EBA). GSP+ allows eligible countries to pay no duties on a wide range of exports to the EU.
The countries currently benefiting from GSP+ are Armenia, Bolivia, Cabo Verde, Kyrgyzstan, Mongolia, Pakistan, Paraguay, the Philippines and Sri Lanka. GSP+ status is dependent upon the ratification and implementation of 27 international conventions on human and labour rights, environmental protection, and good governance. The scheme helps vulnerable countries “assume the special burdens and responsibilities resulting from the ratification of these conventions”.1

Does Sri Lanka Currently have GSP + status ?

Yes. In July 2016, the Sri Lankan government applied for GSP+ status. Its application was successful and it became a beneficiary of the programme on 19 May 2017.

Does Sri Lanka has previous experience with GSP +

Yes. Sri Lanka has benefitted from the standard GSP since the scheme’s inception, and it began to benefit from GSP+ on 15 July 2005. This occurred in the wake of the 2004 tsunami in Sri Lanka. However, on 15 August 2010, the EU suspended Sri Lanka’s GSP+ status. Thus, between 2010 and 2017, Sri Lanka only benefited from the standard GSP programme.1

Why did Sri Lanka lost GSP +?

The EU’s decision to withdraw GSP+ benefits from Sri Lanka was based on the findings of a European Commission investigation that identified shortcomings in the implementation of three UN human rights conventions:2
1. International Covenant on Civil and Political Rights (ICCPR);
2. Convention on the Rights of the Child (CRC);
3. Convention Against Torture (CAT).
For each convention, the EU noted significant issues. In regards to the CAT, for example, the EU noted that Sri Lanka had a strong record of adopting legislation to criminalise torture, but found that there remained “widespread” use of torture by the police and armed forces. 3
Before suspending Sri Lanka’s GSP+ status, the Commission notified the country of the shortcomings. It then set out a six-month time period for Sri Lanka to address the issues. However, Sri Lanka’s former government failed to respond to the Commission’s requests. No other GSP+ beneficiary has lost its status because of non-compliance.
However, two beneficiaries of the standard GSP programme have had their statuses temporarily withdrawn due to “serious and systematic violations of labour rights”. 4 The EU suspended Myanmar in 1997 and Belarus in 2006. Myanmar regained its GSP status in 2013 due to demonstrated reform efforts, but Belarus is yet to regain its status.

Why did Sri Lanka regain GSP+ status in 2017?

In January 2017, the European Commission recommended to the European Parliament that Sri Lanka regain its GSP+ status. In explaining its decision, the Commission highlighted the political transition that had begun following the 2015 presidential and parliamentary elections in Sri Lanka. The Commission stated that the key grounds for its decision were 1) the political will displayed by the current government and 2) the steps it had taken toward restoring democracy, good governance and respect for human rights.5

Does regaining GSP+ men Sri Lanka has fully satisfied GSP+ implementation requirements?

No. The EU is clear that entry into GSP+ does not mean that the country’s implementation of the 27 required conventions is fully satisfactory. Instead, the EU sees GSP+ status as a way to encourage further progress towards the full implementation of those conventions.6 GSP+ thus serves as a platform for the EU to engage with the countries on problematic areas.
“Granting GSP+ to Sri Lanka […] is a vote of confidence from the European Union that the Sri Lankan Government will maintain the progress it has made in implementing the international conventions. At the same time, no one is pretending that the situation is perfect”.
–EU Trade Commissioner Cecilia Malmström

How well has Sri Lanka performed since its re-entry into GSP+

A delegation of the European Parliament made an official visit to Sri Lanka in November 2017, where it expressed concern. The delegation noted that the “progress achieved has been slower than originally hoped, but that the foundations for that progress were now mostly in place”. 7 The delegation stated that a number of important issues still need to be addressed, in particular revisions of the Prevention of Terrorism Act were required.

How can Sri Lanka maintain GSP+ status?

To remain eligible for GSP+, Sri Lanka must continue to make clear progress towards the implementation of the required conventions. It must also carefully follow the  GSP+ monitoring process.  5
If Sri Lanka continues to make the necessary progress, it will be able to benefit from GSP+ until it achieves Upper Middle Income country status. Based on current development trends, the EU suggests that Sri Lanka will be eligible for GSP+ until at least 2021.8

How important is the GSP+ for Sri Lankan economy?

The EU is Sri Lanka’s largest export market. It accounts for almost a third of the country’s exports. In 2016, the total value of trade between the two countries amounted to almost €4 billion, and EU imports from Sri Lanka reached €2.6 billion.9 Textiles accounted for nearly 60% of EU imports that year. 10
The removal of import duties provided a total of immediate benefits worth more than €300 million a year. If Sri Lanka uses GSP+ effectively to diversify its economy, the economic importance of the scheme could be even greater.
Published December 2017

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1 European Commission, “The EU’s New Generalised Scheme of Preferences”, December 2012.
2 European Commission, “Report on the Findings of the Investigation with Respect to the Effective Implementation of Certain Human Rights Conventions in Sri Lanka”, 10 October 2009.
3 Ibid, para. 85.
4 European Commission, “The EU’s New Generalised Scheme of Preferences”.
5 European Commission, “COMMISSION STAFF WORKING DOCUMENT: Report on assessment of the application for GSP+ by Sri Lanka”, Brussels, 11 January 2017, pg. 10.
6 Delegation of the European Union to Sri Lanka and the Maldives, “The EU Grants Enhanced Market Access for Sri Lanka as a Reform Incentive”, Colombo, 16 May 2017.
7 European Union External Action, “Delegation of the European Parliament Pays Official Visit to Sri Lanka”, Colombo, 2 November 2017.
8 Delegation of the European Union to Sri Lanka and the Maldives, “The EU Grants Enhanced Market Access for Sri Lanka as a Reform Incentive”.
9 Ibid. 10European Commission, Directorate-General for Trade, “European Union, Trade in Goods with Sri Lanka”, 17 Nov. 2017, pg. 6.
(-Democracy Reporting International )

Factsheet-Monitoring-Process_2017-10-12.pdf by Thavam on Scribd

Khapra Beetle and Future of Sri Lankan Tea Export

December 19, 2017, 9:03 pm 

By Professor Rohan Rajapakse

Senior Professor of Agricultural Biology

University of Ruhuna and Member Technology Release Committee

TEA RESEARCH INSTITUTE

&

Dr. Wolly Wijayaratne

Senior Lecturer in Pest Management

Rajarata University of Sri Lanka

Tea consignments from Sri Lanka to Russia were found to have a Khapra beetle a few days ago. Consequently, Russia restricted the importation of agricultural products from Sri Lanka. Sri Lankan tea, which accounts for about 23% of the Russian tea market, has earned a substantial amount of foreign exchange this year. The current situation, therefore, has affected not only the country’s foreign exchange reserves but also its image as a tea exporter.

Khapra beetle, scientifically named as Trogoderma granarium Everts (Coleoptera: Dermestidae), is a beetle species and a serious pest of nearly 100 food materials. It prefers grain and cereal products but infestations are also reported in dried plant/animal matter, pulses, vegetable seeds, herbs, spices, nuts, copra, dried fruits, and dried products of animal origin (milk powder, skins, dried dog food, dried animal carcasses), certain oil seeds, cocoa. Finally, it has been found in processed tea.

Khapra beetle is ranked among the 100 most destructive invasive insect species in the world. Its danger as a pest is accompanied by its rapid rate of population increase; high level of quantitative and qualitative loss in the infested stored products; ability to survive without food for years, live with low moisture content and undergo adverse environmental conditions in diapause and resistance to many insecticides. Khapra beetle thrives at higher temperatures 32-36ºC and can tolerate heat, desiccation and cold (tolerate up to 50⁰C, 2% moisture content and 2-4⁰C for one year!).

The adult beetle is oblong-oval shaped, 1.6- 3.0 mm long and 0.9-1.7 mm wide. Males are brown to black with indistinct reddish brown markings on the front wings. Females are lighter in colour than males and slightly larger. The adults are covered with hairs. The larvae are about 1.6-1.8 mm long, more than half the body has a tail made of hairs. Larval body is yellowish white, and body hairs are brown. As the larva grows, more body hairs develop and the body colour changes to golden/reddish brown. Mature larva is about 6 mm long and 1.5 mm wide. Khapra beetle can complete up to ten generations in one year depending on the availability of food, favourable tropical (warm) temperature and humidity. A complete life cycle can be as short as 26 days (around 32-35ºC) or as long as 220 days under suboptimal environmental factors.

The detection of khapra beetle includes visual inspections, sampling, use of food baits and pheromone traps. However, the detection of adults is considered difficult as they seek out cracks and crevices in packing materials, conveyances and storage facilities. In contrast, the larva can comparatively be detected easily during inspections; the presence of accumulated cast larval skins makes it easy.

Khapra beetle is considered native to India and was first reported in 1894. By now it is present in more than 40 countries in the Asia, the Middle East, Africa and Europe, especially near the equator where dry and hot environment exists. Khapra beetle has been sighted on several occasions in Sri Lanka. Jonathan Banks (1977) has reported its presence in Sri Lanka. Vayssiere and Lepesme (1938), Cotton (1954, 1955), Erturk (1956), Kiritani and Utida (1956) have reported this species to be present in Sri Lanka whereas Fernando (1963) denies that. Hinton (1945) has reported the presence of this species in Ceylon. Currently, the US has listed Sri Lanka as a country which harbours khapra beetle. European and Mediterranean Plant Protection Organization (EPPO) also had declared Sri Lanka as a country affected by Khapra beetle Trogoderma granarium but no records have been found as updated in 2006 (http://pqr.eppo.org/datas/TROGGA/TROGGA.pdf). CABI Crop Protection Compendium (2007 edition) also revealed this species is present in Sri Lanka. However, there are no records of its exact presence in made tea in Sri Lanka except the fact that it could be present in packing materials or discarded tea more importantly, khapra beetle is present in our neighbourhood India, Pakistan and also in many African countries. This geographical distribution pattern coincides with the ability of this insect species to establish well under warm climatic conditions. The pest could thrive on the packing materials used as the larvae are known to diapause effectively until it finds a suitable host.

Digressing to the control methods, it is obvious that they need to be sought with care to prevent their unacceptable negative impacts on consumers. Residual chemical insecticides are not recommended for commodities such as tea due to the possibility of leaving insecticide residues in made tea. Surface treatments also have limited success as the diapausing larvae of khapra beetle hide in cracks and crevices, limiting its exposure to the mortality factors. Fumigation has been very successful against khapra beetle. Methyl bromide is very effective against stored-product insects but its use is now restricted due to ozone depleting effect. Phosphine has demonstrated mixed results as the resistance by khapra beetle to this fumigant is also reported despite its successful control. Sulfuryl fluoride is a new fumigant used in North America for the disinfestations of stored products against pests but unfortunately not yet registered in Sri Lanka. This fumigant has been very effective against khapra beetle. Also, exposure to a mixture of carbon dioxide and another fumigant increases the susceptibility of insects to a fumigant. In Sri Lanka, the use of botanical Neem powder has desirable effect of controlling the larvae

Insect growth regulators affect insects and have minimum effects on human and other vertebrates. Methoprene is very effective against many stored-product insects and is registered in North America for agricultural pest management.

Advanced technology is available and used in the developed world for the management of khapra beetle. Vacuum-hermetic technology is one of the latest methods which completely kill the eggs and thus a good quarantine method. Heat treatment is also a good alternative for the use of chemical but accompanies limitations such as infrastructure prerequisites, cost factor and experiments are needed to ascertain its full potential. In the past, khapra beetle was controlled when the infested commodity (grain) was pneumatically conveyed several times but this method has not been attempted recently.

Irradiation by gamma or other rays is also effective against khapra beetle and is used in certain developed countries in stored-product protection but its use is hindered by factors such as the consumer concerns.

It is very difficult and expensive to eradicate this pest. It is up to experienced entomologists to find workable solutions to exclude the presence of khapra beetle in tea so as to help preserve Sri Lanka’s image as an exporter of high quality tea. Unfortunately, there has been no systemic survey for the past 35 years or so, to detect the presence and possible entry of khapra beetle here. Lack of attention to this insect species in Sri Lanka has caused considerable damage to the Sri Lankan export market. Immediate action is called for to overcome this serious pest damage. Entomologists with experience on stored-product pests in the country along with TRI entomologists have to take the lead in handling this national issue.

Sri Lanka: Tea is our Pride

Tea is the most consumed drink of the mankind next to water. It is very healthy harmless and a natural drink which is consumed as a social drink which bonds families countries including Sri Lanka (Once Ceylon) which has now losing the position as the main exporter to the world.

by Sarath Wijesinghe- Dec 19, 2017

Dec 19, 2017

( December 19, 2017, Colombo, Sri Lanka Guardian) Tea is our pride, for which we can be proud of for the reason that it is the best tea on the Globe. It is the duty of every Sri Lankan- especially the Diplomatic Missions worldwide to defend and promote our silver inherited as much as the beauty of Sri Lanka which is no match to other. Sri Lanka Tea is unique due to unique flavour, colour and character which cannot be readily found elsewhere. The humidity, cool temperature, sunshine, and rainfall (two monsoons) in the country’s central and southern highlands are conducive to the manufacture of unique quality teas. Tea plantations are scenic and pristine. Tea is grown handpicked and processed in an artisanal process, unchanged over a century. Where else in the world one could find this combination in One Island?. Tea has been one of our main exports and a main source of income for decades as a leader in tea trade.

MOST CONSUMED DRINK NEXT TO WATER

Tea is the most consumed drink of the mankind next to water. It is very healthy harmless and a natural drink which is consumed as a social drink which bonds families countries including Sri Lanka (Once Ceylon) which has now losing the position as the main exporter to the world. Tea grown area is limited due to shortage of land, and the cost of production has become unbearable mainly due to the shortage and high wages of labour and maintained. Estate owners do not invest on replanting and new plantations due to excessive expenditure and the length of period for a return, though once the tea is properly grown the benefit will extend to few decades. But in an era citizens are looking for quick and large margins on profits, traditional investors on cultivation are rare. This is a sad and a disturbing situation. It is time the local investors and tea estate owners are encouraged for re plantation and/or use tea estates for Tea Tourism for which the environment is ideal due to landscape and beauty in addition to the availability. Tourists, especially those from Middle East are full of praise and love for Tea Estates for beauty, calm environment and greenery coupled with sceneries. It is time the tourist Board and the Tea Board engage in an exploratory expedition on this area to benefit the tourist industry as well as tea industry and both industries in return will be boosted with unexpected publicity for both areas. If no remedial steps are taken by the Governance and Tea Board the tea industry and our pride is bound to collapse! Our competitors are aggressively promote tea and tea industry with new plantations with the use of new technology when Sri Lanka is lagging behind miles away.

UNHEALTHY FAST FOOL AND BEVERAGES

It is a sorry affair that people have got used to unhealthy fast food and beverages with strong chemicals and poisonous materials. However the concerns are raised and advice given to discourage unhealthy breweries and encourage healthy and natural drinks, the billions spend on advertisements and attractions have overtaken the campaigners for natural drinks which are healthy, cheap and readily available. Sadly in Sri Lanka coffee with lot of sugar is available in parties and officers increasing diabetic population when tea is freely available in every corner. A young coconut is only 30 rupees whereas artificial beverage with lot of sugar and chemicals will cost over 50 rupees, which passes billion of rupees to multinational companies. Ironically average youngster and even an adult will go for the unhealthy artificial beverage in place of a natural young coconut or a healthy cup of tea. India is far above us. They have banned artificial beverages and multinational companies from the Indian soil. It is sad but true that the standard of tea and tea industry is fast fading away and it is difficult to find good and quality tea in the nation of tea. It is a pity Sri Lankans do not take the best use of tea grown here.

RUSSIA SRI LANKAN DISPUTE – MAIN CRISIS IN TEA MARKET TODAY

Sri Lankan tea is marketed and popular in Russia. The most important foreign markets for Sri Lankan tea are the former Soviet bloc countries of the CIS, The United Arab Emirates, Russia, Syria, Turkey, Iran, the United Kingdom, Egypt, Libya, and Japan. The political situation in some countries has a direct effect on Ceylon Tea and it is time for us to look for alternatives until the situation in the Middle East settles. Arab world and West considers Tea as a healthy smooth traditional social drink. The consumption patterns has changed due to fast life by adopting quicker methods such as tea bags instead of traditional pot of tea, or naturally made tea traditionally for quiet and smooth enjoyment. Still tea is synonymous with Ceylon with the brand and the trade mark for pure original and quality tea. Awareness and demand for Ceylon Tea among consumers in the Gulf Market is high. Loose tea consumption has dominated over consumption of tea bags. Consumers are gradually weaned away from loose quality tea due to aggressive media campaigns and fast life of consumers. Multinational brands increase their market share through heavy media/promotional spend and sophisticated packaging, despite using infer ere “multi origin teas” The brand becomes more significant than the origin. This trend is seen in former Ceylon strongholds such as Russia and former Soviet Republics. Russia has imported about 30 million kilograms of tea from Sri Lanka for the last 10 months of 2017 being2915million worth $23 million kilograms which is 12% of total exports from Sri Lanka, which is suddenly banned from 18th December 2017 for the presence of a beetle named “Troderma Granarium” which is a biggest blow on Sri Lankan economy in the country of a crisis situation. President Sirisena promptly sent a letter to President Putin requesting the ban and made public announcements of the request which one wonders whether it is premature without studying the ground situation and proper inquiry as communication and request between heads of two states should be carefully and diplomatically manure as the presence of one Beatle is so insignificant though the impact on our economy is a major blow. It is necessary to find out whether there are any other reasons behind including the asbestoses ban from Russia and the straining of international relations with the socialist block supporting Sri Lanka traditionally and throughout due to over affiliations with the west tracing back strained relations with USSR/Russia during Untied National party regimes from 1948.

WAY FORWARD TO SAVE PROTECT AND MAINTAIN OUR PRIDE

The statement by the controversial former Ambassador to Russia Udayanga Weeratunga, on the issue on tea trade and the alleged previous warnings by him on the crisis is of great importance and significance as he himself is alleged to be involved in tea trade successfully while maintaining good relations with traders during the previous regime. Our concern is our nation and economy and it is our duty and wishes are to prey and work towards a resolution of the issue as early as possible without aggravating it any longer. Obviously in this instance it is premature for the head of the state to make public statements without proper understanding and study the ground situation in diplomatic and international spheres of the areas of international relations and highest standards of statesmanship carefully taking minor incidents to the international arena. Let this be an eye opener to revisit our strategies in international relations and business dealings on tea and agriculture as the ban effects the entire agriculture exports to Russia being one of our main exporters. Kenya is our main competitor fast emerging to take our place as the world leader when we have no policy or a strategy to improve our tea industry with long and short policies on replanting, developments of tea factories, control unscrupulous packing in Sri Lanka and overseas including Dubai and UK which are claiming to be tea hubs using our tea as a base product, prevent adulterating our tea giving access to the tea traders poisoning and destroying our image and tea industry. We wish the representation by the Ministers visiting Russia will be a success, but the fact remains that it is temporary and long term strategy and concerted efforts are required long and short term to maintain the good will based on quality and image building in the country the Tea Board has not taken any steps for promotion and publicity for the last decade. Let us wait for the statesmanship, and goodwill of the ministers visiting Russia in the midst of Christmas when all government and business outlets are closed.

Socioeconomic challenges in the present era of technology and innovation

Tuesday, 19 December 2017

This is a summary of the keynote address delivered at the first Student Research Symposium of the Faculty of Humanities and Social Sciences, Open University

of Sri Lanka

It is a great pleasure to deliver this keynote address at this symposium which marks the launching of the annual Student Symposium of the Faculty of Humanities and Social Sciences of the Open University of Sri Lanka. The theme of this symposium is ‘Understanding the past, analysing the present, facing the future: Humanities and Social Sciences and shaping vibrant communities’.

While congratulating all students who take part in this conference, I would like to elaborate the role of social scientists in tackling the complex socioeconomic challenges emanating in the present era of technology and innovation.

Fourth industrial revolution

We are living in an age of unprecedented technological progress. Our ancestors would not have imagined the comforts that we are enjoying today with all kinds of high-tech equipment. They did not have electricity, refrigerators, televisions, radios, motor vehicles, computers, mobile phones or international flight facilities. They hardly went out of their villages as there were no transport facilities. In fact, there was no necessity for such travelling as they produced their necessities including food in the village itself and they did not have to look for jobs outside. Still, they lived happily with simple lifestyles.

In contrast, today we are living in the midst of a technological revolution that radically changes the way we think, live, work, travel and communicate. Very often, this is identified as the fourth industrial revolution. The first industrial revolution began in Britain in the late 18th century with the inventions of textile machinery, iron and steam engines. The second industrial revolution was in the 19th century which led to mass production of consumer durables and equipment. The computer revolution of the 1960s marked the third industrial revolution.

Today, the fourth industrial revolution has given rise to new technologies of artificial intelligence, robotics, internet products, mobile banking, e-commerce, auto-driven vehicles, 3D printing, blockchain, biotechnology and so on. The technological revolution has changed the landscapes in multiple spheres – society, culture, politics, business modes, legal structures, property rights, etc. For example, Uber, the world’s largest taxi company, owns no vehicles; Facebook, the most popular media owner, creates no content; Alibaba, the most valuable retailer, has no stocks; and Airbnb, the largest accommodation provider, owns no hotels. Mobile-banking has enabled customers to conduct their transactions without going to a bank.

Role of social scientists

The changes are so radical that, from the viewpoint of human history, there has never been a time of greater opportunities as well as perils. Undoubtedly, the technological advancements have helped to uplift the living conditions to unprecedented levels. At the same time, they have led to many social pitfalls in the form of income and wealth inequity, moral breakdowns, digital crimes and social disharmony. It is the utmost responsibility of the social scientists to keep abreast of these pros and cons of technological advancements and to facilitate optimum decision making in both public and private sectors with the ultimate objective improving people’s quality of life.

For example, the companies that do not own any property have to be regulated with new company laws. Internet banking too demands new regulatory frameworks and monetary management. The intellectual property right is another area that demands new business and legal modes. There are unprecedented social implications arising from technology such as Facebook-motivated suicides and other crimes. So, the social scientists engaged in their own disciplines and allied fields of sociology, anthropology, culture, languages, media, politics, economics, business management, legal profession have a major role to play in identifying the possible disasters in the modern high-tech society.

Knowledge economy

Unlike in the past, national production in the fast-fast growing economies are now driven by knowledge, rather than by factors of production – land, labour and capital. The underlying concept behind this new growth paradigm is ‘knowledge economy’ which is based on science, technology and innovation (STI). It consists of individuals, companies and sectors that create, develop and commercialise innovative products and export them across the world. The knowledge economy focuses on science-based industries and turning knowledge into profit.

Benefits of technological advancement

There is empirical evidence worldwide that knowledge economy has brought about many benefits to the society. Above all, it enables the countries to raise their economic growth at a much faster rate. The East Asian tigers – Hong Kong, Singapore, South Korea and Taiwan achieved high GDP growth of over 7% per annum for decades through science, innovation and technology. Many other countries in Asia including China and India are now enjoying faster economic growth using new technology.

Development of technology along with economic liberalisation and globalisation have enabled many countries to grow fast and to reduce unemployment and poverty to a considerable degree. The fourth industrial revolution empowers the economically excluded people with digital networks. The use of mobile phones for banking transactions in Kenya is a good example to understand how new technology can help the poor. The mobile phone-based microfinance system, which is known as M-pesa, was founded in 2007 by the service provider Vodafone. Over 70% of households in Kenya and more importantly 50 percent of the poor, who are unbanked in remote rural areas, use this mobile banking facility. Now Vodafone offers its service in 10 countries. M-Pesa served almost 29.5 million active customers through a network of more than 287,400 agents, as at end on 2016.

Downside of technological advancement

While observing the multitude of benefits of the modern technological revolution, we should not ignore its downside effects. It has given rise to unequal distribution of income and wealth, techno-led unemployment, erosion of global governance, potential abuse of robotics, genetic engineering, cyber weapons and business disruptions.

As regards businesses, the average lifespan of a corporation listed on the S&P index has already dropped from about 60 years to 18. New business management tools are needed to deal with this changing landscape of the business sector. The digital technology has paved the way to financial crimes by hacking the websites of banks. For example, some Sri Lankans were arrested recently over the hacking of a Taiwanese bank.

Status of Sri Lanka in the

global technological setup

Although Sri Lanka has acquired bits and pieces of new technological revolution, particularly in the field of information and communication technology (ICT), it has fallen behind many fast-growing countries in the region.

Sri Lanka’s position in the country ranking of knowledge economy is not very satisfactory. She is placed at the 101st position out of 142 countries in the global ranking of knowledge economy. In the performance score schedule ranging from 0 (=lowest) to 10 (=highest), the Knowledge Index (KI) for Sri Lanka is only 3.63 as against 8.52 for Hong Kong and 7.97 for South Korea. Meanwhile, the Knowledge Economy Index (KEI) score for Sri Lanka is only 3.49 whereas the scores for South Korea and Hong Kong are 8.65 and 8.17, respectively. These wide divergences imply that Sri Lanka has to make substantial progress to evolve a modern knowledge-based economy.

A major constraint to promote technology and innovation in Sri Lanka is the dearth of funding available for research and development (R&D). The total expenditure for R&D remains low at less than 0.2% of GDP in Sri Lanka in comparison with nearly 4 percent of GDP in South Korea, and over 2% in Singapore. These countries made substantial economic progress through R&D to achieve knowledge-driven growth, and graduated to high-income country status.

Sri Lanka is at a crossroads

While this year marking the completion of four decades of economic liberalisation in Sri Lanka, the 70th anniversary of Independence is to be celebrated next year. It is questionable whether, as a nation, we can be satisfied with what have been achieved as we are passing these key milestones. One could assess the performance by making some simple comparisons. In terms of social indicators such as life expectancy, healthcare, nutrition and education the country has made significant progress over the decades. But questions remain with regard to the quality of health care and education services.


The current plight of the economy is well known. While economic growth has been sluggish throughout the post-liberalisation period with the exception of a few short-lived economic booms, the country faces severe macroeconomic imbalances with regard to fiscal operations, balance of payments and heavy debts.

All this means that SL could not reap the benefits of economic liberalisation and technological revolution. There are many reasons for this predicament. One major negative factor was the 30-year long war which depressed GDP growth rate by around two percentage points each year.

Above all, the authorities have failed to foster science, technology and innovation to enhance the country’s production capacity. As a result, the country’s production and export structure is still confined to factor-driven products such as garments. High-tech products characterised by advanced computer electronics are lacking in the manufacturing structure.

Twin growth challenges

In the midst of the fourth industrial revolution, Sri Lanka faces two major challenges with regard to economic growth. First, GDP growth needs to be accelerated using new technology and innovation. Given the current factor-driven production modes, Sri Lanka’s potential GDP growth rate is only around 5%. In order to enhance growth, the country needs to graduate from the present ‘factor-driven growth’ mode to ‘technology and innovation-driven’ growth mode.

Second, it is important to ensure that the benefits of high economic growth are shared among all segments of the population by way of inclusive growth. Income disparities remain acute for the last several decades. The richest 20% of the households possess around 53% of total household income whereas the income share of the poorest 20% is only 4.5%. The average income levels also vary across income groups. The average monthly per capita income of the poorest 10% of the population is only around $ 200 representing only about 5% of the country’s overall per capita income level of around $ 4,000.

Digital divide

Disparities prevail with regard to Information Technology (IT) literacy as well. According to the latest data released by the Department of Census and Statistics, Sri Lanka’s IT literacy rate is around 38 percent, which is more or less in line with the developing country average.

However, there are significant disparities across different groups and geographical locations. The IT literacy rates of males and females are 43% and 35%, respectively. The digital literacy rate for the urban sector is 55% while for the rural and estate sectors are only 36% and 16%, respectively. Wide disparities are evident across districts as well.

Deteriorating global competitiveness

Urgent attention needs to be drawn to the rapid deterioration of the country’s global competitiveness. According to the latest Global Competitive Report (2017-2018) Sri Lanka has dropped 14 places from the 71st place to the 85th place. The report notes that most problematic factors for doing business in Sri Lanka is inefficient government bureaucracy, poor work ethic in labour force and policy instability.

Sri Lanka has fared poorly in all four basic requirements with regard to institutions, infrastructure, macroeconomic environment and health and education. The country’s performance is not satisfactory with regard to efficiency enhancement and innovation either, according to the report.

Challenges ahead

It is clear that Sri Lanka faces a multitude of socioeconomic challenges in the face of technological revolution and stiff global competitiveness. The country needs to adopt a new growth model to reap the benefits of new technology and also to remain competitive in the international trade environment of trade and capital flows and labour mobility.

The emerging growth through technology and innovation needs to be inclusive so as to share the growth benefits by all, particularly the bottom of the income pyramid. While the natural and physical scientists have been playing their role in fostering technology and innovation, it is left to the social scientists to check and ensure that such advancements are translated into betterment of the society.

(Prof. Sirimevan Colombage is Emeritus Professor, Open University of Sri Lanka.)