The heat is on…
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The above headline is the theme song of a popular TV series. I was reminded of this when global experts this week warned of a ‘climate emergency’ saying the earth has hit a record heat level, with Sri Lankan experts also warning of extreme heat conditions.This along with the other ‘heat’ issue – the ongoing conflict in West Asia – places the world in an extremely vulnerable position largely due to man-made and natural disasters. One (man-made) – can certainly be avoided as Donald Trump, with one stroke of the pen, can end the war today! The other disaster is unavoidable.
It was this topic that Ruwanputha, the young economist, sought to discuss on Thursday during a morning call. “Why is Donald Trump causing so much misery in the world?” he asked. “That’s because it’s the agenda of the US, that is their priority,” I said. “I am told that the timing of the attacks and the various pronouncements of a ceasefire and then cancelling it may be linked to Trump’s involvement in the stock market and the oil markets,” he said. “Maybe,” I responded.
“I did some research on the cost of global wars and the figure is astounding. Global military spending is projected to reach US$4.7 to $6.6 trillion by 2035 while the economic impact reached $19.1 trillion in 2024, with GDP losses estimated at $462 billion. On the other hand, the cost to end extreme poverty worldwide by 2030 is estimated to be between $70 billion and $325 billion per year which means that if war spending is put to better use, it easily can put an end to extreme poverty,” he said.
“Absolutely…..but no one cares about poverty,” I said and added: “Maybe if there is a moratorium on fighting wars for one year, it would undoubtedly help to reduce global poverty.” “On the contrary, we are living in a fool’s paradise,” laughed Ruwanputha.
Jokes aside, the cost of global wars was brought into today’s discussion to illustrate how Sri Lanka and other countries are suffering today because of one man’s foolhardy adventure to bring the Iranians to their knees. So, while missiles are pounding Iran and Iran, in turn, fires a stream of rockets at Israel and neighbouring countries, smaller nations like Sri Lanka have to suffer the consequences with costly, unbearable fuel prices and doubts about the fuel supply if the war continues for several more months.
Aldoris, the choon-paan karaya, had arrived in the neighbourhood and I am positive Kussi Amma Sera would have bought some maalu-paans. Walking to the kitchen to fetch one, along with my second mug of tea for the morning, I couldn’t help overhearing the conversation of the trio under the margosa tree.
“Yuddey nisa elavalu wala mila ihalata gihin. Ahara milath ihalata gihin (Vegetable prices have gone up because of the war. Food prices have also risen),” said Serapina. “Aldoris-ge maalu paan wala milath wedi wela (Aldoris’s maalu paan has also become costlier),” said Kussi Amma Sera. “Meda peradiga inna apey sahodara sahodariyange rassawal nethi nowei kiyala mama balaporoththu wenawa (I hope our sisters and brothers in the Middle East don’t lose their jobs),” noted Mabel Rasthiyadu.
The global view that the Gulf nations were safe for travel, to reside in and attract foreign investments has been shattered and is no longer tenable. In an article in the Project Syndicate platform (www.project-syndicate.org), under the title ‘The Gulf Is Becoming Uninsurable’, Stephen Holmes writes – “It can take generations to build a reputation for reliability – and a matter of weeks to destroy it. That asymmetry is the most important strategic fact of the current US-Israeli war against Iran. This conflict’s most harmful consequence will figure in no damage assessment and no postwar reconstruction fund will be able to repair it. What is being degraded is the premise that the Gulf is a reliable place to conduct the world’s business.”
What this means to the Emirates airline and its Dubai hub, said to be the busiest airport in the world, is anybody’s guess.
In fact, Emirates, Qatar Airways and Etihad, are learnt to have approached Sri Lankan authorities for permission to use the Mattala Airport as a hub. Sri Lankan officials say that under discussion is the 8th freedom of the air which refers to the right for an airline to operate flights that originate in a foreign country, bypass its home country and deposit passengers at another international destination. One example is where Emirates carries passengers from London to Colombo, without transiting in the home base (Dubai) and vice versa.
This week the Central Bank chose not to change benchmark interest rates saying, so far, the economic fundamentals, notwithstanding the war, are sound.
But the banking regulator said in a statement that the sharp increase in global energy prices and trade disruptions amidst heightened uncertainty due to the escalation of geopolitical tensions necessitated a significant upward adjustment in domestic energy prices.
It said the external sector remained robust in the first two months of 2026, supported by stronger export earnings compared to imports, along with higher remittances and tourism earnings. Gross Official Reserves increased to $7.3 billion at end-February 2026 and the Central Bank purchased a substantial amount of foreign exchange from the market in the first two months of the year.
There was an interesting Al Jazeera report on March 20 which said that Switzerland has decided not to issue licences for companies to export weapons to the US due to the ongoing war on Iran, citing the country’s long-standing principle of neutrality.
“The export of war materiel to countries involved in the international armed conflict with Iran cannot be authorised for the duration of the conflict,” the Swiss government said in a statement, adding: “Exports of war materiel to the USA cannot currently be authorised.” This is a surprising development; the government allows export of arms and ammo but says it cannot be used in a war. So what is the purpose of having weapons of mass destruction: for ornamental purposes?
The UN Secretary General has been ‘shouting’ at the top of his voice to stop the war. No one listens. Unfortunately the UN has become a toothless tiger.
Coming to the end of this week’s column, I leave our readers with this thought: “If the world stops fighting for just one day (just one day), how many lives can be saved; how much destruction of property can be avoided; and how much resources could be channelled for more noble purposes?”
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