The Dangers of Civil Service Alignment with the Ruling Party: Lessons for Sri Lanka’s NPP Government

The National People’s Power (NPP) Party won Sri Lanka’s 2024 presidential election by securing 42% of the vote, marking a new political era for the country. The NPP, a left-wing party, came to power on the back of promises of structural reforms, anti-corruption measures, increased social welfare, and a reorientation of Sri Lanka’s economic policies. While this victory has inspired hope among many who have been disenfranchised by the country’s economic collapse and governance failures, the potential for the alignment between civil service and the ruling party—especially in a country like Sri Lanka that is navigating a precarious economic and geopolitical landscape—raises significant concerns. The risks posed by civil service loyalty to the ruling political faction could have devastating consequences on Sri Lanka's recovery efforts, further destabilizing the nation.

In this article, examine the dangers of civil service groups backing the ruling party, using historical examples from other countries, and how such alliances could undermine Sri Lanka’s recovery from bankruptcy, stifle democratic governance, and jeopardize the country’s future under the NPP government.

Sri Lanka’s Fragile Economic Situation;

Sri Lanka is currently facing an unprecedented economic crisis, having defaulted on its foreign debt in 2022 and entering into a bailout program with the International Monetary Fund (IMF). With the IMF's Debt Sustainability Agreement (DSA) in place, the country is required to reform its public sector, improve governance, and rebuild its fiscal capacity to meet debt repayments, which are due to resume in 2027. And NPP promised alternative DSA but with ISB restructuring and debt negotiations come to a end this will be not feasible anymore. In this context, the NPP government will face enormous pressure to implement reforms, attract foreign investment, and stabilize the country’s debt-ridden economy.

However, Sri Lanka’s civil service has long been bloated, politicized, and inefficient, often serving the interests of ruling elites rather than the general public. The NPP’s victory, along with its left-wing policies, raises concerns about the potential deepening of the relationship between the civil service and the ruling party, which could further hinder the country’s recovery efforts.

The governance sector employs over 1.4 million people who require restructuring. Restructuring state-owned enterprises (SOEs) will present numerous challenges for these employees, as well as for the NPP government. Failure to restructure the entire government and its economic system will lead to political instability.

The Dangers of Civil Service Politicization

A civil service that aligns itself with a ruling party risks becoming a partisan tool rather than an independent institution serving the public. In a nation like Sri Lanka, where economic collapse has already frayed institutional credibility, civil service alignment with the NPP ruling party could bring devastating consequences:

1. Erosion of Institutional Neutrality:

The civil service in Sri Lanka has a history of being influenced by political parties, a phenomenon that became especially problematic during the Rajapaksa regime. When civil servants start aligning with the ruling party, it erodes the neutrality necessary to implement fair and effective policies. If NPP starts using the civil service as a tool to further its political agenda, rather than focusing on reforms mandated by the IMF, the country’s fiscal management could fall into disarray. For a nation that is bankrupt, with little room for error, this could derail economic recovery efforts.

2. Increased Corruption and Cronyism:

When civil service appointments and promotions are based on political loyalty rather than competence, corruption becomes endemic. In Sri Lanka’s case, where the public sector is already underperforming, NPP’s potential use of the civil service to reward loyalists could lead to an even more dysfunctional state. With the IMF closely monitoring Sri Lanka's performance, any perception of cronyism or corruption could jeopardize future bailout installments, and further isolate Sri Lanka from international creditors and investors. For example, Venezuela, under the leftist regime of Hugo Chávez and his successor Nicolás Maduro, became notorious for civil service positions being distributed to political loyalists rather than qualified professionals. This exacerbated the collapse of the Venezuelan economy, where hyperinflation and food shortages became rampant due to the government’s mismanagement. The lessons from Venezuela serve as a stark warning for the NPP, whose left-wing policies echo some of the same populist sentiments.

3. Undermining Economic Reforms and Private Sector Growth:

Sri Lanka’s recovery will require a dynamic private sector and an effective partnership between the public and private sectors. The IMF has been clear that structural reforms, including privatization and reducing the dominance of state-owned enterprises (SOEs), are essential to unlocking foreign investment and stabilizing the economy.

However, the NPP's leftist ideology—rooted in state intervention and skepticism toward privatization—could lead to friction with these reforms. If civil service lobby groups loyal to the NPP resist the privatization of SOEs or refuse to implement necessary cost-cutting measures, this could lead to economic stagnation. Greece offers a cautionary tale: during its financial crisis, the public sector was resistant to IMF-mandated reforms, and the lack of political will to make tough choices led to prolonged economic suffering and social unrest.

Greece is the main example that NPP should look into why I say that because Greece Syriza party was the 3rd party in the Greece which had 5% margin but they won by 36% yet they failed miserable due to lack of innovative ideas and lack of understanding liberal market economics. That lead to a geopolitical tensions as well.

In any case, JVP Unions were the ones who made it difficult for governments to restructure or move towards privatization in the past. Often, by union strikes with it, they harmed progressive programs and prevented or postponed them. However, now that their government is in control, they can assist in implementing the necessary reforms without using political advantage as they did in the past.

4. Geopolitical Instability and Civil Service Influence:

Sri Lanka occupies a strategic position in the Indian Ocean, making it a key player in regional geopolitics, particularly in the context of the Indo-Pacific rivalry between China, India, and the United States. The NPP government will need to balance these competing powers, especially as Sri Lanka seeks foreign investments to revitalize its economy.

If the civil service becomes too closely aligned with the NPP’s ideology, it could lead to poor foreign policy decisions. For example, if Sri Lankan civil service officials—driven by political loyalty—push for closer ties with China at the expense of relations with India or the U.S., it could trigger geopolitical tensions. India's dominance in the region and its deep economic ties with Sri Lanka mean that any tilt toward China could result in trade restrictions, a loss of Indian investments, and strained diplomatic ties. Similarly, antagonizing the U.S. could lead to a loss of access to American markets and aid, further weakening Sri Lanka's economic outlook.

In any case, recent events have demonstrated that AKD is more inclined towards the United States and wants to normalize relations with India; as for China, well, we'll have to wait and see. Things become more interesting when the AKD government and India provide grants totaling 20 million USD, along with help from the USAID program and the World Bank.

Lessons from Left-Wing Regimes: A Global Perspective

Looking at other left-wing regimes, the dangers of civil service alignment with ruling parties become even more evident. In many cases, these regimes have started with promises of equity and social justice, only to fall into economic mismanagement and political authoritarianism.

Zimbabwe under Robert Mugabe: Mugabe’s leftist policies initially aimed to rectify historical injustices but ended up turning the civil service into a loyalist arm of the ruling ZANU-PF party. As a result, corruption flourished, and Zimbabwe’s once-thriving economy was reduced to ruin.

Argentina under Peronism: The civil service became a politicized institution during the various regimes that followed Peronist ideology. While aimed at empowering the working class, the alignment between the civil service and the political elite led to poor economic policies that resulted in a cycle of inflation, debt defaults, and economic stagnation, very similar to Sri Lanka's current predicament.

Venezuela under Chávez and Maduro: Venezuela’s civil service, bloated with loyalists to the socialist regime, failed to function as an independent institution, resulting in poor governance, economic mismanagement, and the collapse of the country's oil-dependent economy. Like Sri Lanka, Venezuela had significant potential due to its natural resources, but political mismanagement led to one of the worst economic collapses in modern history.

Moreover, both the Gotabaya Rajapaksa regime and the Yahapalana government rose to power by leveraging civil service movements. The Yahapalana government gained support through the Maduluwawe Sobitha Thero social movement, while Gotabaya Rajapaksa's administration was propelled by Viyathmaga (professionals advocating for a better future). However, both governments ultimately failed. The reason for their failures was that these groups were used as lobbying tools, with politicians making unrealistic promises to secure their support. Key elements of this populism included pledges of tax cuts and increased opportunities within the government.

?The Path Forward for Sri Lanka

The NPP’s ascent to power presents both opportunities and challenges for Sri Lanka. While the party has promised progressive social policies, the alignment between the civil service and the ruling party could present a serious threat to the country’s recovery efforts. As Sri Lanka works to meet its IMF obligations and build a foundation for future economic growth, it will be crucial for the NPP to avoid the mistakes made by other left-wing regimes and prevent the politicization of the civil service.

For Sri Lanka to emerge from its current economic crisis, it must maintain a professional, politically neutral civil service that can implement the necessary reforms and policies without becoming a tool for political gain. In a geopolitical environment where Sri Lanka’s strategic location makes it vulnerable to external pressures, neutrality and competency in governance will be essential for navigating these complexities. The 100 days following the NPP’s electoral victory will indeed be a critical test. The party must demonstrate its commitment to governance, rather than political patronage, if Sri Lanka is to have any chance of economic recovery and sustainable growth. The future of Sri Lanka hangs in the balance, and civil service reform will be key to shaping its path forward.