By Dr Matara Gunapala During the reign of King Parakramabahu (1153-1186), Sri Lanka earned the distinguished title of the ‘granary of the Orient,’ reflecting its unparalleled agricultural abundance. The island’s breathtaking landscapes, fertile soil, and bountiful resources—including precious stones, renowned tea, rubber, and coconut—alongside its strategic deep harbours, made it a crucial hub in maritime trade. These resources drew foreign powers’ attention, and Sri Lanka experienced successive periods of colonial dominance under the Portuguese, Dutch, and eventually the British from 1815 to 1948.
British rule shifted Sri Lanka’s focus to export-oriented plantations and infrastructure primarily to benefit colonial interests. By independence in 1948, the Sri Lankan rupee was valued at approximately Rs 3.33 to the US dollar.
However, economic mismanagement in the 75 years, following independence, has led to unprecedented economic crises and currency depreciation. As of February 2024, the rupee has plummeted to around Rs 310 against the US dollar, with only a slight improvement to Rs 300 by August 2024, plunging Sri Lanka into the ranks of the world’s 22 most heavily indebted nations. Since Sri Lanka adopted an executive presidency, a cascade of constitutional amendments has fostered an environment where corruption and misconduct flourish, compromising democratic governance, destabilising the economy, and undermining the rule of law.
The urgency of the situation.