• Loss of $ 2.5 m; Treasury shuns accountability
• SL’s sleeping Security State

Today (1), the May Day celebrations are being held in a subdued manner as Vesak Poya falls on this Day. However, it is an occasion to examine the workers’ rights and the changing role of trade unions (TUs) on this historic anniversary.

The relationship between a socialist Government and TUs in any country has always been both close and complex. Historically, TUs have been the backbone of leftist movements, giving rise to political parties that sought to represent the working class in governance. A socialist Government, therefore, is not only a political authority but also a product of the collective aspirations of organised labour. Yet, once in power, the dynamics between the two often evolve from solidarity to negotiation and often in the case of Sri Lanka, to tension and occasionally open confrontation.

Most leftist movements across the world grew out of the struggles of peasants and industrial workers seeking fair wages, better working conditions, and social security. To strengthen their influence beyond the factory floor, unions fostered the creation of labour-oriented political parties. In Britain, for example, the Labour Party emerged from the TU movement in the early 20th Century. Similar alliances were seen in other countries where workers sought political power to institutionalise social justice.

However, once a socialist Government assumes responsibility for managing the economy, its priorities expand beyond the immediate interests of the workers. It must balance productivity, inflation control, and fiscal responsibility. During economic crises or austerity measures, governments may need to restrain wage growth or reduce subsidies, leading to friction with unions. 

In the 21st Century, globalisation, automation, and informal employment have weakened the traditional base of TUs. Leftist Governments now face the challenge of redefining their relationship with a more fragmented workforce. The focus has shifted from factory-based unions to broader coalitions advocating for social justice, gender equality, and climate-friendly employment policies.

The emergence of the National People’s Power (NPP) as a governing force represents a major turning point in Sri Lanka’s political evolution. The NPP’s rise, built on the left-oriented ideology of the Janatha Vimukthi Peramuna (JVP), civic engagement, and youth-driven reform, brings renewed focus on social justice, equality, and workers’ empowerment. In this context, TUs, a strong pillar of Sri Lanka’s social fabric, is now faced with the need to redefine their role from mere defenders of workplace interests to active partners in national transformation.

Today, with the NPP Government promising a “new political culture”, unions are presented with a historic opportunity to regain relevance through constructive engagement.

The NPP, in order to realise its promises, expects TUs to shift from adversarial confrontation to strategic collaboration. Rather than viewing the State solely as an employer, they should see themselves as co-architects of policy and reform. Union leaders can contribute expertise in labour standards, social security, and workplace welfare to ensure that the transition to a productive economy remains humane and equitable.

TU rights must be balanced with the rights of the public, stating that the success of a union action is judged by the suffering that it causes to the masses, particularly when essential services are impacted. TU leaders have a responsibility to understand this connection and not prioritise their own group's interests over the public good. The public support is a critical protection for unions facing suppression. 

Most of the prominent TU leaders of JVP now hold responsible Ministries in the NPP Government. Now, they stress that when the Government undertakes economic restructuring, unions must act as advocates for fair transition. Constructive dialogue rather than blanket resistance will ensure that reforms strengthen both efficiency and social justice. The credibility of the reform agenda will depend greatly on how it treats labour in this process.

While collaboration with the Government is essential, unions must not lose their autonomy and critical voice. The history of socialist movements shows that excessive alignment with ruling parties can erode the unions’ independence and reduce their ability to represent genuine worker interests. Hence, constructive cooperation must coexist with accountability: unions should support Government reforms that benefit the workers, but also critique policies that risk inequality or exploitation. A democratic socialist system flourishes only when both the Government and the labour movement respect each other’s independence and moral responsibility.

However, there is a danger that when unions become closely tied to the ruling party or State apparatus, they may lose their independence. That can weaken their ability to represent genuine worker interests. Instead of acting as a check on State power, unions may become instruments of political control, leading to a decline in internal democracy and worker participation. A healthy socialist system, therefore, requires strong yet independent TUs that work with the Government and not under the Government.

Treasury Secy. shuns COPF 

The revelation that US $ 2.5 million earmarked for an official debt repayment to Australia was diverted to cyber criminals has exposed alarming weaknesses in the country’s financial control systems, Treasury safeguards, and institutional accountability. 

The shocking transfer of $ 2.5 million from Sri Lanka’s State coffers into accounts controlled by hackers is not merely a cybercrime story. It is a grave failure of governance, internal controls, and public accountability.

Four senior officers linked to the Public Debt Management Office were suspended after the breach. The Finance Ministry and its watchdog branch, the External Resources Department, has been entrusted with powers to regulate all foreign fund receipts and payments. And when the communication channels of those critical institutions compromise on financial approvals and authorise payments irresponsibly, the public deserves to know the answers to key questions such as if the payment instructions were independently verified. Any lapse in protecting public funds becomes politically and morally indefensible.

In these circumstances, in a shocking display of belligerence by the Finance Ministry-Treasury Secretary, Harshana Suriyapperuma refused to appear before the Parliamentary Committee on Public Finance (COPF). “It is essential that he briefs Parliament. This is a Parliamentary power under the Constitution,” COPF Chairperson Dr. Harsha de Silva said. “There is no reason for the Finance Ministry-Treasury Secretary not to appear before the COPF. This is a kick in the face of the promised ‘system change’ that the people of this country voted for. It is also a breakdown of the undertaking to the International Monetary Fund (IMF) on governance”. 

Legally, the transfer to hacker accounts constitutes an unauthorised and unlawful disbursement of State funds. Whether caused by deception, fraud, or negligence, it remains an illegal payment from the perspective of public finance law. That means that investigators must determine the criminal liability of external actors and possible negligence or misconduct by officials. 

Sri Lanka cannot restore international confidence through silence. The illegal payment impacts IMF reforms. The IMF has already conveyed its grave concern over the issue. Sri Lanka created new debt management mechanisms precisely to improve governance, transparency, and repayment discipline. A scandal of this nature undermines those reforms.

SL’s sleeping Security State

Sri Lanka finally proved that all the accusation of inefficiency and lethargy in Government is wrong. This will be verified by the hackers who enjoyed the fastest Government service in Sri Lankan history, a smooth $ 2.5 million transfer with no delays, no forms, and no inconvenient questions asked.

The Nation awoke this week to discover that while Ministers were busy opening ceremonies, cutting ribbons, and delivering speeches on “digital transformation”, actual digital operators had transformed public money into private wealth overseas. Efficiency, it seems, has finally arrived, unfortunately for the wrong side.

The hackers, grateful for the hospitality, may soon send a thank-you postcard: "Dear Sri Lanka, lovely beaches, kind people, and surprisingly cooperative banking channels. Will visit again."

The real tragedy is not only the missing millions. It is the missing urgency. When farmers need fertiliser, there is no money. When hospitals need medicine, budgets are tight. When schools need computers, austerity is preached. But, when hackers need $s, the system suddenly becomes lightning fast.

Citizens are told to be patient, pay taxes, and trust institutions. Yet, institutions seem to have trusted the hackers more than the taxpayers.

Sri Lanka does not merely need stronger firewalls. It needs awake walls, awake systems, and above all awake officials and politicians. Because, in this episode, the hackers were online and the Government was offline.