By Nalinda Indatissa

In a world increasingly consumed by conflict, the ancient truth that “hatred does not cease by hatred” has found renewed relevance. As the war between Iran and Israel intensifies—drawing in global powers such as the United States—Sri Lanka’s decision to remain steadfastly neutral stands not merely as a diplomatic strategy, but as a principled moral position.

A War Beyond Borders
The conflict, triggered by coordinated military strikes in February 2026, has rapidly escalated into a wider regional war, disrupting global energy supplies and international stability.

Wikipedia
Its consequences are no longer confined to the Middle East. Even distant nations like Sri Lanka are feeling the shockwaves—through fuel shortages, economic strain, and maritime insecurity.

Reuters
Indeed, Sri Lanka has been forced to introduce fuel rationing and even a four-day work week to cope with supply disruptions linked to the war.

The Guardian
Neutrality in Action, Not Just Words
Sri Lanka’s neutrality is not passive—it is active, deliberate, and consistent.
The government has refused military access to foreign powers, declining requests from both sides in order to avoid partiality.

Reuters
It has refused to allow its territory, airspace, or waters to be used for hostile purposes.

Daily Mirror
At the same time, it has extended humanitarian assistance—rescuing sailors, treating the wounded, and offering safe harbour where required.

Daily Mirror
This dual approach—firm neutrality coupled with humanitarian duty—reflects a mature understanding of international law and moral responsibility.
The Strategic Necessity of Neutrality
Sri Lanka’s position is not merely ethical; it is also pragmatic.
The country maintains vital economic relationships with multiple sides of the conflict. The United States remains a key export market, while Iran is an important trading partner, particularly for tea.

Reuters
To align with one would risk alienating the other—an outcome Sri Lanka, still recovering from economic crisis, cannot afford.
Moreover, situated along critical Indian Ocean shipping routes, Sri Lanka’s geographic reality demands caution. Any perceived alignment could transform it from an observer into a theatre of conflict.
Breaking the Cycle of Hatred
At its core, Sri Lanka’s stance reflects a deeper philosophical truth—one long articulated by Gautama Buddha: hatred cannot extinguish hatred.
To take sides in a conflict driven by retaliation is to perpetuate that cycle. Even indirect support—whether political, logistical, or symbolic—risks fuelling further escalation.

By refusing to endorse either side militarily, Sri Lanka rejects the logic of vengeance. Instead, it affirms a different path:
Restraint over reaction
Humanity over hostility
Balance over bias
A Model for Small States

Sri Lanka’s approach offers an important lesson for smaller nations navigating great-power rivalries. Neutrality, when grounded in principle and consistency, is not weakness—it is strength.
It requires discipline to resist pressure, clarity to maintain balance, and courage to prioritise long-term stability over short-term alignment.

Conclusion
Sri Lanka’s neutrality in the Iran–Israel war is more than a foreign policy decision. It is a statement of values.
In choosing not to participate in hatred—nor to encourage it—the nation aligns itself with a timeless principle: peace cannot be built on the foundations of conflict.
In an age where nations are often compelled to choose sides, Sri Lanka has chosen something far more difficult—and far more meaningful: to stand apart, and to stand for peace.

Roger Srivasan

March 2026

When nations are confronted with crisis, the instinct to do more often overwhelms the wisdom to do differently. Yet history suggests that resilience is seldom forged through excess; rather, it emerges from the capacity to recalibrate, to conserve, and to adapt.

The proposal of a four-day working week, advanced in response to mounting energy pressures and the looming shadow of prolonged geopolitical instability, is best understood in this light. It is not a retreat from productivity, but a redefinition of it — an attempt to align national effort with the realities of constraint.
At its core, this policy embodies what Aristotle described as entelechy — the fulfilment of potential into purposeful form. It is the quiet recognition that within present limitations lies the possibility of transformation. Like the acorn that already contains the blueprint of the oak, this measure signals not diminution, but evolution.

The human dimension offers perhaps the most immediate insight into its value. A shortened working week alleviates the daily burdens of commuting, reduces congestion, and restores to individuals that most finite of resources — time. In an era marked by uncertainty and strain, such restoration is not indulgence, but necessity. A workforce that is rested, balanced, and less encumbered by fatigue is not merely more content; it is, in the final analysis, more effective.

This human benefit, however, is inseparable from economic prudence. Sri Lanka, as an economy heavily reliant on energy imports, operates within a delicate equilibrium. Every unit of energy conserved strengthens fiscal resilience; every reduction in peak demand eases pressure on already strained systems. A calibrated adjustment to the working week offers tangible gains — from reduced fuel consumption in transportation to lower electricity demand across commercial sectors. In this sense, the policy transcends administrative convenience; it becomes an instrument of economic discipline.

Beyond national boundaries, comparable patterns emerge. Across Europe, periods of energy constraint have repeatedly prompted adaptive responses. Nations such as Germany and the Netherlands have, at various junctures, embraced demand-management strategies — moderating industrial consumption, encouraging behavioural change, and rethinking conventional work patterns. More recently, the disruptions associated with global tensions have accelerated experimentation with flexible schedules, remote work, and compressed working weeks.

The lesson underlying these experiences is both simple and profound: resilience is not achieved through rigid adherence to established routines, but through the willingness to reimagine them. Efficiency, in such contexts, is not preserved by repetition, but by reinvention.
It is instructive, too, to recall that such recalibrations are not without precedent. In 1974, under the premiership of Edward Heath, the United Kingdom confronted a severe energy crisis that necessitated the introduction of the now-noted Three-Day Week. By compressing industrial activity and curbing electricity usage, the government demonstrated that even advanced economies must, when pressed, adjust their tempo to safeguard continuity.

Yet the present moment differs in one crucial respect: the technological transformation that has redefined the very nature of work. Where productivity was once tethered to physical presence and rigid schedules, it is now amplified by digital connectivity, remote access, and an ecosystem of tools that render distance increasingly irrelevant. The modern workplace is no longer confined by the boundaries that shaped earlier responses to crisis.
Within this transformed landscape, the four-day working week emerges not as a constraint, but as a refinement — a recalibration that reflects the capabilities of the present rather than the limitations of the past.

Predictably, such proposals invite scepticism. Concerns are raised about diminished output, disrupted services, and potential economic drag. Yet these objections often rest upon an antiquated premise: that productivity is measured by time expended rather than value created. Increasingly, evidence suggests the opposite. Where work is structured intelligently and supported by modern systems, efficiency is driven not by duration, but by focus and clarity.

Moreover, transitional mechanisms can be carefully designed to ensure continuity in essential sectors. The real question is not whether adaptation introduces complexity — it invariably does — but whether the cost of inaction, in the face of mounting constraint, is greater still. Viewed in this light, the four-day working week is not an experiment in uncertainty, but a measured response to changing realities.
What emerges, therefore, is not merely a policy, but a principle. Efficiency is not the child of excess; it is the discipline of restraint. Nations that recognise this are better positioned to navigate periods of turbulence with composure rather than haste.

For this reason, the proposed adjustment should be seen as an interim stratagem — a carefully calibrated measure designed to endure only as long as circumstances demand. Yet within such interim measures lies the seed of longer-term transformation. Policies born of necessity have a habit of maturing into norms; temporary adjustments often evolve into enduring practices.
The acorn, once planted, does not remain an acorn.

In embracing this course, the government signals more than responsiveness. It reflects a broader understanding that resilience in the modern age is not a function of rigidity, but of adaptability — the capacity to adjust without surrendering purpose.
All in all, this is not an improvised concession to crisis, but a considered and forward-looking strategy. It balances necessity with innovation, discipline with flexibility, and immediate pressures with longer-term possibilities.

And if nurtured with clarity and resolve, this modest policy may yet grow into something more enduring — a new rhythm of national life, attuned not to excess, but to sustainability.
Those who persist in equating longer hours with greater endeavour may, in time, find that such assumptions no longer hold. Efficiency, after all, has little patience for antiquated indulgences.

Eid-ul-Fitr, celebrated upon the sighting of the new moon following a month of fasting observed by Muslims across the world, is one of the most significant occasions in the Islamic religious calendar.

Fasting during Ramadan, which constitutes one of the five pillars of Islam, reflects the importance of distancing oneself from worldly desires and embracing a virtuous way of life founded on sacrifice and self-restraint.

The observance of Ramadan conveys a number of profound humanitarian and social messages to the global community. At its core, Ramadan instils compassion within the hearts of the faithful. It nurtures individuals who are willing to empathise with others, understand the pain of hunger as their own, and embrace fellow human beings with compassion and a spirit of brotherhood. During this period, the noble values of peace, equality and coexistence further enrich the conduct of believers. For an entire month, they observe the disciplines of fasting, a time devoted to spiritual nourishment. Therefore, I believe that the season of Ramadan serves as a powerful lesson to the world in humanity and brotherhood through lived example.

This year’s Eid-ul-Fitr is being observed at a time when the entire world is facing difficult and challenging circumstances. I sincerely pray that, through the blessings of the observances and prayers of this Ramadan, these challenges will soon subside, giving rise to a world that all aspire to, one in which the rights and freedoms of all are safeguarded, and where peace, prosperity and harmonious coexistence prevail.

As we have successfully overcome challenges in the past, we remain firmly committed, as a government, to confronting this challenge with courage, managing it effectively, and ensuring that the country’s economy and the lives of its people continue to progress without hardship or disruption.
Setting aside differences, I call upon everyone to unite with this national effort and extend their steadfast support. I convey my heartfelt wishes to the Muslim community in Sri Lanka and around the world for a peaceful and harmonious Eid-ul-Fitr.
Eid Mubarak!

Sri Lanka’s national carrier, SriLankan Airlines, has reached a critical milestone in its long-running financial crisis, finalising the restructuring of a $175 million International Sovereign Bond (ISB). The deal, concluded with near-unanimous investor backing, marks one of the last major steps in untangling the airline’s legacy debt burden tied to the State.

The restructuring agreement includes a 16% reduction or “haircut” on the outstanding debt, alongside a swap of defaulted bonds for a combination of cash and newly issued government securities. These new instruments, known as amortising bonds maturing in 2028, carry a relatively low interest rate and extend repayment timelines, easing immediate pressure on both the airline and the Government.

Investor response has been overwhelmingly positive. More than 99% of bondholders participated in the exchange, with over 97% voting in favour. Such high acceptance signals renewed confidence in Sri Lanka’s broader debt recovery efforts following its economic crisis. Importantly, the deal also removes a lingering contingent liability from the Government’s balance sheet, strengthening fiscal stability.

For Sri Lanka, the implications extend beyond the airline itself. The restructuring aligns with the country’s wider sovereign debt reorganisation programme, which has now addressed nearly all external obligations. Officials argue this progress will support improvements in sovereign credit ratings and restore access to international financial markets.

However, while the bond restructuring offers breathing space, it does not resolve deeper structural challenges facing the airline. SriLankan Airlines has accumulated years of operational losses, high operating costs, and governance inefficiencies. Its reliance on government guarantees has historically blurred the line between commercial viability and public financial support.

The current administration has opted to retain state control of the airline, stepping back from earlier privatisation discussions. This raises critical questions about the carrier’s long-term sustainability. Without significant reforms ranging from route optimisation to cost restructuring the airline risks slipping back into financial distress despite its reduced debt load.

Industry analysts note that global aviation remains highly competitive, with rising fuel costs and volatile demand adding further uncertainty. For a relatively small carrier like SriLankan Airlines, achieving profitability under government management will require disciplined financial oversight and strategic clarity.

Looking ahead, the success of this restructuring will ultimately be measured not just by reduced debt, but by whether the airline can transition into a commercially viable entity. The immediate crisis may have been contained, but the challenge now is to ensure that history does not repeat itself.

At first glance, Sri Lanka’s tourism sector in early 2026 appears resilient, with visitor numbers showing a slight year-on-year increase. However beneath the surface, the industry is grappling with a more complex and troubling reality: declining revenue, shifting market dynamics, and growing exposure to global geopolitical risks.

By the end of March 2026, tourist arrivals are estimated to have reached around 650,000, surpassing the roughly 620,000 recorded during the same period in 2025. However, earnings tell a different story. Tourism revenue for the first quarter is projected at approximately $950 million, marking a noticeable drop from last year’s $1.05 billion.

This disconnect stems largely from a change in visitor profiles. High-value tourists, particularly from Europe, have reduced travel plans due to the ongoing Middle East crisis. In March alone, European arrivals are estimated to have declined by up to 40%, significantly impacting overall revenue. These travellers are being replaced by regional tourists who, while sustaining arrival numbers, contribute less in terms of spending.

The timing of this downturn could not be worse. The first quarter represents the peak earning window for Sri Lanka’s tourism industry, making any disruption during this period especially costly. Industry stakeholders estimate monthly revenue losses of up to $100 million as cancellations and reduced bookings take effect.

Looking forward, the outlook remains uncertain. Advance bookings for mid-2026 are weak, particularly from long-haul markets. The surge in global oil prices linked to the Middle East conflict is pushing up airfares and travel costs, discouraging discretionary travel. Potential visitors are increasingly adopting a wait-and-see approach, delaying trips until conditions stabilise.

Moreover, logistical concerns and travel advisories are amplifying the problem. Perceptions of fuel shortages or transport disruptions within Sri Lanka have created hesitation among tourists, even if such issues are not widespread. In an industry heavily influenced by sentiment, perception can be as damaging as reality.

The broader economic context adds another layer of vulnerability. Key sectors such as apparel, tea, and rubber are also experiencing cost pressures and market uncertainty due to the same geopolitical tensions. This interconnected impact could further strain Sri Lanka’s overall economic recovery, indirectly affecting tourism demand and investment.

If the Middle East crisis extends into the latter half of 2026, Sri Lanka’s tourism industry could face a prolonged period of subdued earnings despite stable or even rising arrivals. The challenge ahead will be not just attracting visitors, but restoring high-value tourism and rebuilding confidence in a volatile global environment.