Why didn’t Premadasa queue up when Saddam was killed?
‘All this is because of Trump…’
‘He managed the country beautifully…’
‘Oh… what can the government do?’
‘During Gota’s time, oil was lost because of the whites. Now oil is lost because of the war…’
‘There is no point in blaming others. Trump should be held responsible for this crisis…’
These are the popular themes of the JVP’s social media campaign these days.
But no one talks about how President Premadasa managed the global oil crisis that occurred when Iraq invaded Kuwait in August 1990, and the resulting global economic crisis.
Premadasa became president in December 1988.
‘I was not handed a country, but a burning bush…’
Premadasa did not say that for nothing. At the time, the JVP had imposed curfews with T56 guns across Sri Lanka, locked people in their homes, set oil tankers and buses on fire, and turned the country into a vast battleground. Meanwhile, the Indian peacekeeping force was wreaking havoc in the North-East. In the midst of all this, the LTTE was preparing for war by killing Tamil politicians in Colombo. The Chief Minister of the North-East, Varadaraja Perumal, had declared an Eelam state and fled to India in an Indian helicopter.
Premadasa untangled this complex situation step by step, first expelling the Indian army, which he had earlier vowed he would not allow to remain. Second, he brought an end to the JVP insurgency. By November 1989, the JVP politburo, including Wijeweera, had been eliminated. He barely had time to recover before 1990 began.
It didn’t take long. In August 1990, Iraq invaded Kuwait. By then, there were about 100,000 Sri Lankan workers in Kuwait and Iraq. With Iraq’s invasion, the Gulf War began. Oil prices skyrocketed, and supplies were disrupted.
Premadasa faced yet another crisis. While he was planning to rebuild an economy devastated by the JVP insurgency, the Middle East war erupted. His first action was to rescue Sri Lankan workers trapped in Kuwait, who were living in fear. He immediately contacted the Saudi embassy, which bordered Kuwait, and ordered the establishment of centers to care for Sri Lankans in Kuwait and Iraq until they could be brought home. He also ordered the immediate evacuation of the families of embassy officials. He then spoke to the Saudi leadership and requested aircraft to bring back Sri Lankan workers.
By this time, Premadasa had gained the goodwill of Arab countries by closing the Israeli embassy in Sri Lanka and expelling its officials. This decision followed revelations—reportedly from a book written by a former Israeli Mossad officer—that Israeli intelligence had provided weapons and training to both the Sri Lankan army and the LTTE. Premadasa appointed a commission to investigate, and based on its recommendations, closed the Israeli office and expelled Israeli personnel.
This move made him popular among Arab nations. He had also developed strong relationships with Arab leaders, enabling Sri Lanka to secure oil at concessionary rates. When the war broke out, he maintained these ties and ensured that oil supplies continued despite the Kuwait-Iraq conflict, preventing severe shortages and price spikes.
Furthermore, he engaged with Kuwait to address the economic difficulties faced by returning Sri Lankan workers. Through the United Nations, a compensation mechanism—known as the Kuwait Fund—was established to support affected foreign workers. This helped Sri Lanka retain valuable foreign exchange and avoid a sharp decline in remittances.
‘We never saw oil queues in Sri Lanka during the Iraq-Kuwait war…’
‘Oil prices did not skyrocket in Sri Lanka…’
Even today, many Sri Lankans recall this period. Premadasa also promoted the garment industry to earn foreign exchange and supported tourism development, including hotel projects such as Kandalama. Alongside this, he introduced welfare programs such as the Model Village Housing Scheme, Janasaviya for the poor, and the Foster Parent Scheme.
Not only Premadasa, but also Ranil’s UNP government later faced a Middle Eastern conflict—the U.S.-led invasion of Iraq in March 2003. This war, involving the United States, Britain, Australia, Denmark, Poland, and the Netherlands, had global repercussions. At the time, Ranil’s government was engaged in peace talks with the LTTE, supported by Western countries, including the United States, along with substantial aid commitments. As a result, the government was cautious about antagonizing the U.S.
Meanwhile, opposition parties, including the SLFP and JVP, organized protests, accusing the government of supporting the invasion. Many Muslim groups also opposed the war, and the JVP launched campaigns to boycott American goods.
Despite this, the government managed to maintain oil supplies without major shortages. Although global oil prices were rising rapidly, domestic prices were subsidized and kept relatively low. Oil queues were not a common sight.
‘Why is oil rationing now visible in Sri Lanka, when it was not seen during two Middle Eastern wars…?’
The government must answer this question.
