Opinion
An Economic Round Table – a farce in a fallen economy?
It is indeed amusing to read this debate published in The Island about an “economic roundtable towards a consensus”, presumably to help Sri Lanka’s politicians to get the country out of the abyss it has fallen into. Could these writers be practising a genre of writing bordering on farce, and understated amusement?
They realise that what is needed in the first instance is a tribunal and a guillotine set up in the Galle Face Green, to execute the crooks who have amassed personal fortunes by various scams and “jaavaram”? Scams could be at the august level of a Prime Minister and a Governor of the Central Bank working in collusion, with a Minister who did not know who paid the rent for his luxury flat, or at the ignominious level of a secretary to the President who exchanged sacks of money in a dark parking lot, or in the shadow of changing the price of sugar or of nano-nitrogen to fill desired pockets.
However, once the crooks are got rid of, and their ill-gotten wealth nationalised and repatriated, the economists could be called in to give consensual advice?
Hema Senanayake, who thinks that a round table of economists will square the circle, may have heard of Bernard Shaw’s remark that if you ask 10 economists to point to the North, they will point in 11 different directions and yet miss the North!
Hema Senanayake says, perhaps with unstated irony that “In chemistry, there is no middle path, just known truth prevails. So is physics. In brief all subjects of natural sciences there are scientific truths. Why not in economics?” The simple answer is that Economics is NOT a science. According to Dr. Nalin de Silva, even science is a chronic Western lie – only revealed truth is “truth”.
Senanayake may be secretly thinking of the address given by von Hayek on receiving the Nobel Prize for Economics, entitled “On pretence of knowledge”. https://www.nobelprize.org/prizes/economic-sciences/1974/hayek/lecture/
Von Hayek says that most economic advice is just pretence to knowledge, when no such knowledge exists. In regard to the analogy with the physical sciences, he says:
“Economic Science marks a significant step in the process by which, in the opinion of the general public, economics has conceded some of the dignity and prestige of the physical sciences. On the other hand, the economists are at this moment called upon to say how to extricate the free world from the serious threat of accelerating inflation which, it must be admitted, has been brought about by policies which the majority of economists recommended and even urged governments to pursue. We have indeed at the moment little cause for pride: as a profession we have made a mess of things.
It seems to me that this failure of the economists to guide policy more successfully is closely connected with their propensity to imitate as closely as possible the procedures of the brilliantly successful physical sciences – an attempt which in our field may lead to outright error.”
Senanayake is carrying his irony too far when he says “Therefore, I would unite with Dr. Dayan Jayatilleke to call for an Economic Round table and let’s begin with economic axioms. Our people would be relieved from economic suffering within months.”
In Months, WOW! After all, we have heard of Euclid’s axioms, or the axioms set down by Whitehead and Russell in their abortive bid to unify logic and mathematics. But what are these axioms of Economics? The pretence that there are such axioms has been expunged long ago by von Hayek in his Nobel-prize speech.
So what about Sri Lanka’s economy? Surely, if the old soldier had not shot himself in the foot by listening to the likes of Venerable Rathana, Dr. Padeniya, or Dr. Jayasumana to clean the country of toxins, he would not have banned agrochemicals last April. There would have been less of a crisis.
AGRICULTURE- the leading leg of the nation.
What we need now are not economic axioms, but rapid-result agriculture.
Mrs. Bandaranaike, having destroyed Dudley Senanayake’s gains in agriculture, realised in 1971-72 that a possible recourse was to grow Manioc, Millet etc., i.e., crops that need very little agrochemicals! Manioc leaves contain a form of cyanide, and even caterpillars or cattle avoid it. However, if the leaves are pounded and left for an hour, the cyanide is released and makes an excellent “Maellum” (cooked salad) rich in protein.
The government has not only shot one foot (agriculture), but also its other foot (energy sector), and is unable to stand erect. It is on its four limbs; its only capacity is to beg. But DISASTER CAPITALISM is here. The main question for the round-table economists is, who should buy up the disaster – the US, Chinese or Indian capitalists? But, even if the economists come to some agreement, they cannot achieve much, unless they can invite the likes of Goldman Sachs, Mukesh Ambani or Ma Huateng to the talks. That is the only valid axiom!
If the agricultural catastrophe can be weathered for a year by resorting to Manioc and other fallback foods (while the upper classes eat their organic food and drink Evian water), at least one leg of the economy becomes viable. How about the other leg – the power sector?
THE POWER SECTOR- the left leg of the nation
: Already, the local populace has re-discovered firewood. This is bio-energy. Quick growing plants requiring little or no fertiliser and resistant to pests, fit the bill. While exploiting quick-growing plants like Giricidia, my choice for a high-payoff plant for the power sector is Castor, “Erandu” in swabhasha. The oil can be used in a diesel engine without further treatment! It grows fast on the poorest of soils, untouched by even a very hungry goat or gnat. The whole plant, seeds, shells can be burnt to produce high-pressure steam and electric power.
Ipil Ipil, used in coconut plantations as it is a nitrogen-fixing plant, grows to 20-30 feet in a couple of years, and can also be used for firewood or for power generation.
Ifham Nizam’s report in The Island (1st January 2022) says that “Hydro Power capacity has dropped to 70 percent from nearly 95 percent during the recent rains.” When the rains stop, the water levels in the reservoirs fall as the water flows down the sluices, turbines and into irrigation canals. But what is not appreciated is that one third of this water (that could generate 95% during rains) gets lost by EVAPORATION occurring day and night, especially from water areas covered by Salvinia and other aquatic plants.
One might imagine that aquatic plants cover the water and prevent evaporation. Far from it. They act like wicks, and bring up water through their underwater roots and to the air more efficiently. So, REMOVE the aquatic plants, and put floating covers on the windswept part of the water. You immediately get 1/3 MORE electricity by extending the effect of the rains.
Putting floats on water surfaces to partially cover them is a locally available, rapidly deployable technology. However, these floats can carry solar panels. Then, a good additional amount of solar energy, besides the 1/3 extra electricity obtained by cutting evaporation, can be obtained. This solar electricity can be used during the day; a corresponding amount of water can be saved by shutting off a few turbines.
Deploying floating covers to prevent evaporation (with or without solar panels) cleans up the aquatic surfaces. The Salvinia, “Japan Jabara” (water hyacinth) etc., suck up the dissolved oxygen in the water and asphyxiate aquatic organisms, and create unhealthy aquatic bodies. The aquatic weeds thrive in excess phosphates carried down to reservoirs from agricultural areas. So, clearing up these aquatic surfaces, and covering them partially using solar panels will IMPROVE the aquatic ecosystem beyond measure.
In summary, falling back to fast-growing primordial diets based on manioc, millets and yams to weather over the immediate shock of the collapse of the conventional agriculture sector, can steady one leg of the economy. The other leg, i. e., the power sector, may have to fall back on fire wood, Gliricidia, Castor and such bio-energy sources, while taking steps to prevent loss of hydro-power due to water evaporation.
However, an efficient organisational structure is needed to achieve these objectives. The Ministry of Agriculture has had five secretaries in a short length of time. It is like a demoralised army languishing under a succession of mad men, who ordered firing even into its own ranks.
CHANDRE
DHARMAWARDANA
chandre.dharma@yahoo.ca
Opinion
Pot calling the kettle black?
Doctor Upul Wijayawardhana (eminent physician), posed a riddle for us. He wrote about that island Sri Lanka as ‘ this little dot in the ocean’ when deriding the remark of President Dissanayake who had said that Sri Lanka was a hunduva , a term that indicated a small volume: me hunduve inna puluvan da? (Can you live in this restricted space?) Most sensible people, even uneducated, judge that the volume of a little drop (of whatever) is smaller than that of a hunduva; so is weight. When the learned doctor emphatically maintains ‘….we are not a hunduva’ but ‘… a little dot in the ocean…’, is the pot calling the kettle black or worse?
Physically and population wise, Sri Lanka is neither ‘a little dot’ nor ‘a hunduva. This is all in the rich imaginations of Dissanayake and Wijayawardhana. I once counted that there were more than 50 members of the UN who were smaller than Sri Lanka in physical and population size. England was a sizeable island with a small population in the northwest corner of Europe in late 18th century when it began to become what China, with 1.3 billion people and jutting out to the Pacific, is now. From about 1850, when the population of Great Britain was about 20 million, less than that of Sri Lanka in 2026, it ruled more than half the world. Besides, do not forget Vanuatu, Kiribati, Cook Islands, Antigua and Barbuda, Barbados, Lesotho and New Zealand (who habitually beats us at cricket). New Zealand with 5 million population played against 1.5 billion population India (1:300) for the T20 cricket championship a few weeks ago. I quietly wished New Zealand would win; so much for crap about dots in the Indian Ocean or the south Pacific.
Dr. Wijayawardhana also wrote about history and about ‘The achievements of Hunduwa’. The massive reservoirs and extensive irrigation systems in rajarata and ruhuna as well as the stupa are indeed tremendous works of irrigation and bear witness to superior ingenuity and organising ability, for the time they were built. They compare very well among structures elsewhere in the ancient world. Terms like ‘granary of the East’ must be taken with more than a grain of salt. Facile use of such terms does not take account of whatever shreds of evidence there is of adversity in those times. Monsoon Asia over the ages has more or less regularly suffered from floods, droughts and consequent famines. The last dire famine was in Bengal in 1944. The irrigation works in Lanka were a magnificent response to those phenomena. The modern response has been scientific agriculture making India a major grain exporter, from near famine conditions in 1973-74. Recall Indira Gandhi’s garibi hatao (eliminate poverty) speech to the General Assembly of the UN, that year.
The bhikkhu who wrote down the tripitaka in aluvihara did so because there was the threat of a severe famine in the course of which learned bhikkhu might have come to harm. Buddhist thought over centuries had been passed from generation to generation vocally (saamici patipanno bhagavato savaka (listener) sangho) and the departure from that tradition must have required a major threat of famine. There are stories of bhikkhu from Lanka fleeing from dire straits. In the same vein, while the mahavamsa speaks of kings and their valiant deeds, there is little account of the large mass of little people who lived then. Sensible teaching of the history of a people must include the history of as much of the people as possible and some idea of the history of other peoples in comparable times to avoid feeling dangerously smug and arrogant, which we have seen many times over.
Usvatte-aratchi
Opinion
Ministerial resignation and new political culture
The resignation of Energy Minister Kumara Jayakody comes after several weeks of controversy over his ministerial role. The controversy sharpened when the minister was indicted by the Commission on Bribery and Corruption for a transaction he was involved in ten years ago as a government official in the Fertiliser Corporation. The other issue was the government’s purchase of substandard coal from a new supplier. Minister Jayakody’s resignation followed the appointment of a Special Presidential Commission of Inquiry to investigate coal and petroleum purchases. The minister who resigned, along with the Secretary to the Ministry of Energy, Udayanga Hemapala, stated that they did not wish to compromise the integrity of the investigation to be undertaken by the Commission of Inquiry.
The government’s initial resistance to holding the minister accountable for the costly purchase was based on the argument that the official procedure had been followed in ordering the coal. However, the fact that the procedure permitted a disadvantageous purchase which has come to light on this occasion suggests a weakness in the process. The government’s appointment of the Special Presidential Commission of Inquiry to examine purchases as far back as 2009 follows from this observation. In this time 450 purchases are reported to have been made, and if several of them were as disadvantageous as this one, the cost to the country can be imagined. The need to investigate transactions since 2009 also arises from the possibility that loopholes in official government procedures in the past would have permitted private enrichment at a high cost to the country.
Concerns have been expressed in the past that the purchase of coal and petroleum, often on an emergency basis, enabled the use of emergency procurement processes which do not require going through the full tender procedures. The government has pledged to eradicate corruption as its priority. As a result, the general population would expect it to do everything within its power to correct those systems that permitted such corruption. Accountability is not only forward looking to ensure non-corrupt practices in the present, it is also backward looking to ensure that corrupt practices of the past are discontinued. This would be a matter of concern to those who headed government ministries and departments in previous governments. Those who have misapplied the systems can be expected to do their utmost to resist any investigation into the past.
Politically Astute
One of the main reasons for the government’s continuing popularity among the general population, as reflected in February 2026 public opinion poll by Verité Research, has been its willingness to address the problem of corruption. Public opinion studies have consistently shown that corruption remains one of the top concerns of citizens in Sri Lanka. The arrests and indictments of members of former governments have been viewed with general satisfaction as paving the way to a less corrupt society. At the same time, the resignations of Minister Kumara Jayakody and Secretary Udayanga Hemapala are an indication that not even government members will be spared if they are found to have crossed red lines. This is an important signal, as public confidence depends not only on holding political opponents to account but also on demonstrating fairness and consistency within one’s own ranks.
There appears to be a strategy on the part of the opposition to target government leaders and allege corruption so that ministers will be forced to step down. Organised protests against other ministers, and demonstrations outside their homes, are on the rise. The government appears not to want to give in to this opposition strategy and therefore delayed the resignation of Minister Jayakody until it had itself established the Special Presidential Commission of Inquiry. It enabled the minister to step down without it seeming that the government was yielding to opposition pressure. In political terms, this was a calibrated response that sought to balance the need for accountability with the need to maintain authority and coherence in governance.
The demand by opposition parties to focus attention on the coal problem could also be seen as an attempt to shift the national debate from the corruption of the past to controversies in the present. The opposition’s endeavour would be to take the heat off themselves in regard to the corruption of the past and turn it onto the government by making it the focus of inquiries into corruption. The decision to set up a Special Presidential Commission of Inquiry accompanied by the resignation of the minister and the ministry secretary was a politically astute way of demonstrating that the government will have no tolerance for corruption. It will also help to remind the general public about the rampant corruption of past governments which prevents the opposition’s corruption accusations against the government from gaining traction amongst the people.
New Practice
The resignation of a government minister who faces allegations but has not been convicted is still a relatively new practice in Sri Lanka. The general practice in Sri Lanka up to the present time has been for those in government service, if found to be at fault, to be transferred rather than removed from office. This is commonly seen in the case of police officers who, if found to have used excessive force or engaged in abuse, are transferred to another station rather than subjected to more serious disciplinary action. A similar pattern was seen in the case of former minister Keheliya Rambukwella, who faced allegations of corruption in the health field but was reassigned to a different portfolio rather than removed from government.
Against this background, the present resignation assumes greater importance. It signals a willingness to break with past practices and to establish a higher standard of conduct in public office. However, a single instance does not in itself create a lasting change. What is required is the consistent application of the same principle across all cases, irrespective of political affiliation or convenience. This is where the government has an opportunity to strengthen its credibility. By ensuring that the same standards of accountability are applied to its own members as to those of previous governments, it can demonstrate that its commitment to good governance is not selective.
The establishment of the Special Presidential Commission of Inquiry, the willingness to accept ministerial resignation, and the recognition of systemic weaknesses in procurement are all steps in the right direction. The challenge now is to ensure that these steps are followed through with determination and consistency. If the investigations are conducted impartially and lead to meaningful reforms, the present controversy could mark a turning point. The resignation of the minister should not be seen as an isolated event but as the beginning of a new practice. If it becomes part of a broader pattern of accountability, it can contribute to a new political culture and to restoring public trust in government.
by Jehan Perera
Opinion
Shutting roof top solar panels – a crime
The Island newspaper’s lead news item on the 12th of April 2026 was on the CEB request to shut down rooftop solar power during the low demand periods. Their argument is that rooftop solar panels produce about 300 MW power during the day and there is no procedure to balance the grid with such a load.
We as well as a large academic and industrial consortium members have been trying to promote solar energy as a viable and sustainable power source since the early 1990’s. We formed the Solar Energy Society and made representations to Government politicians about the need to have solar power generation. This continuous promotional work contributed to the rapid increase in PV solar companies from three in the early 1990’s to over 650 active PV solar companies established today in the country. These companies have created tens of thousands of high-quality jobs, as well as moving in the right direction for sustainable development.
However, all these efforts appear to have been in vain since the CEB policy makers have continuously rejected solar energy as a viable alternative. Their power generation plans at that time did not include solar energy at all but only relied on imported coal power plants and diesel power generation. Even at the meetings where CEB senior staff were present, we emphasised the importance of installation of battery storage facilities and grid balancing for which they have done nothing at all over the past three decades. Now they have grudgingly accepted the need to include solar energy, which was an election promise of the present government. The government policy is that Sri Lanka should go for renewables to satisfy 70% of its energy needs by 2030 and soon move towards the green hydrogen technology by using solar and wind energy.
The question is why the diesel generators and hydropower stations cannot be shut off one by one to accommodate the solar power generated during the daytime. Unlike a coal-fired plant, diesel generators and hydro power plants can be shut off in a relatively shorter period of time. Norochchalai Lakvijaya power plant produces around 900 MW of power while the total country requirement is 2500 MW on a daily basis. The remainder is provided by diesel generators, hydro and other renewable energy sources.
The need for work to achieve this goal of grid balancing should be the primary responsibility of the CEB. Modern grid balancing systems are in operation in countries such as Germany where around 56% of its energy come from renewable sources. They also plan to increase this to reach 80% of the energy required through renewables by 2030. Our CEB is hell bent on diesel power plants. Who benefits from such emergency power purchases is anybody’s guess?
The Government and the CEB should realise that all roof top solar plants are privately financed through personal funds or bank loans with no financial burden on the Government. It is a crime to request them not to operate these solar panels and get the necessary credits for the power transmitted to the national grid. It appears that the results of CEB’s lack of grid balancing experience and unwillingness to learn over three decades have now passed to the privately-funded rooftop solar panel owners. It is unfortunate that the Government is not considering the contributions of ordinary individuals who provide clean power to the national grid at no cost to the Government. Over 150,000 rooftop solar panels owners are severely affected by these ruthless decisions by the CEB, and this will lead to the un-popularity of this new government in the end.
by Professors Oliver Ileperuma and I M Dharmadasa
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